90-351 Workers' Compensation Board

Chapter 1 Payment of Benefits

Code Me. R. 90-351 Ch. 1 Payment of Benefits {#sec-90-351-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 1}

§ 1. Claims for Incapacity and Death Benefits

1. Within 14 days of notice or knowledge of a claim for incapacity or death benefits for a work-related injury, the employer or insurer will:

A. Accept the claim and file a Memorandum of Payment checking "Accepted"; or

B. Pay without prejudice and file a Memorandum of Payment checking "Voluntary Payment without Prejudice"; or

C. Deny the claim and file a Notice of Controversy.

2. Notice of the claim must be provided consistent with 39-A M.R.S.A. §301, or to the employer’s insurance carrier at the address registered with the Bureau of Insurance.

3. If the employer fails to comply with subsection 1 of this section, the employee must be paid total benefits, with credit for earnings and other statutory offsets, from the date the claim is made in accordance with 39-A M.R.S.A. §205(2) and in compliance with 39-A M.R.S.A. §204. The employer may discontinue benefits under this subsection when both of the following requirements are met:

A. The employer files a Notice of Controversy; and

B. The employer pays benefits from the date the claim is made. If it is later determined that the average weekly wage/compensation rate used to compute the payment due was incorrect, and the amount paid was reasonable and based on the information gathered at the time, the violation of subsection 1 of this section is deemed to be cured.

4. Payment under subsection 3 of this section requires the filing of a Memorandum of Payment.

5. Benefits paid under this section are indemnity payments and are credited toward future benefits in the event that benefits are ordered or paid.

6. Failure to comply with the provisions of subsection 1 of this section may also result in the imposition of penalties pursuant to 39-A M.R.S.A. §§ 205(3), 359, and 360.

7. This rule applies to all dates of injury and all pending claims.

§ 2. Payment without Prejudice

1. Payment without prejudice does not constitute a payment scheme.

2. If no payment scheme exists, the employer may reduce or suspend the payment of benefits pursuant to 39-A M.R.S.A. §205(9)(B)(1). The provisions of 39-A M.R.S.A. §214 do not apply to compensation payments that are made without prejudice.

3. Failure to file a Memorandum of Payment or a Notice of Controversy within 14 days from the date of incapacity does not create a compensation payment scheme under 39-A M.R.S.A. §102(7).

§ 3. Provisional Orders

Mediation need not be held prior to issuance of an order under 39-A M.R.S.A. §205(9)(D). All orders under 39-A M.R.S.A. §205(9)(D) shall be issued only by Administrative Law Judges.

§ 4. [Reserved]

§ 5. Fringe Benefits

1. Fringe or other benefits shall be defined as anything of value to an employee and dependents paid by the employer which is not included in the average weekly wage. When the employer has paid the employee a sum to cover any special expense incurred by the employee by the nature of the employee’s employment, that sum shall not be considered a fringe benefit. For those companies which self­fund health and dental coverage, the value of such health and dental coverage shall be equal to the cost to the employee for maintaining such coverage pursuant to the federal C.O.B.R.A. provisions less the employee’s pre-injury contributions.

A. A "fringe or other benefit" pursuant to §102(4)(H) shall include, but is not limited to, the following:

(1) For those who do not self-fund, the employer’s cost to provide health, dental and disability insurance benefits less the employee’s contribution;

(2) For those who self-fund disability, the employer’s cost to provide disability benefits less the employee’s contribution;

(3) The employer’s cost to provide pension benefits, including 401(k), 403(b), or equivalent plan matching funds that cease being paid because the employee is not working. The employer’s obligation to include 401(k), 403(b), or equivalent plan matching funds ends when the employee returns to work for the employer;

(4) The fair market value of employer-provided meals and/or housing;

(5) The employer’s cost of providing utilities and other costs associated with the provision of housing; and

(6) The value of using a company vehicle for personal purposes; and

(7) The employer’s cost to provide life insurance benefits less the employee’s contribution.

B. The following generally shall not be considered a "fringe or other benefit" pursuant to §102(4)(H):

(1) The cost of uniforms provided by the employer for use in the employment;

(2) Employer contribution to Social Security, unemployment insurance or workers’ compensation insurance;

(3) A company vehicle for which the employee must reimburse the employer for personal use;

(4) Charitable contributions and/or matching gifts;

(5) Company sponsored picnics and other social activities; and

(6) Reimbursements for travel, parking, etc.

2. Average Weekly Wage Calculation

A. In all cases of more than seven (7) days lost time, the employer/ insurer shall calculate the employee’s average weekly wage as of the date of the injury and file form WCB­2.

B. The employer/insurer shall determine the value of all fringe benefits on the date of injury and shall file form WCB-2B within the timeframe established in 39-A M.R.S.A. §303. The employer/insurer shall recalculate the employee’s average weekly wage when fringe benefits cease being paid by the employer. The employer must notify the insurer and the employee within seven (7) days when fringe benefits cease. The insurer or self-insured employer shall file form WCB-4 if the inclusion of fringe benefits results in increased compensation to the employee.

C. The employer/insurer may adjust the average weekly wage one time using form WCB-4 within 90 days after making the first lost time payment on a claim to correct an error or miscalculation. The employee may invoke dispute resolution if this adjustment results in decreased compensation. If greater than 90 days, the employer/insurer shall use form WCB-8.

3. Calculating benefits

The fringe benefit package of any subsequent employers must be included in the computation of the employee’s post-injury earnings to the same extent that it is included in the employee’s pre-injury average weekly wage. The fringes included in the employee’s post-injury earnings shall be computed by using the employer’s cost of the fringe benefits on the date benefits commence.

§ 6. Notices of Controversy

All Notices of Controversy shall initially be referred to the Office of Troubleshooters where an attempt shall be made to informally resolve the dispute. If the Office of Troubleshooters is unable to resolve the dispute, the Notice of Controversy shall be scheduled for mediation.

§ 7. The Wage Statement (WCB-2), Schedule of Dependent(s) and Filing Status Statement (WCB-2A), Memorandum of Payment (WCB-3), Discontinuance or Modification of Compensation (WCB-4), Certificate of Discontinuance or Reduction of Compensation (WCB-8), Lump Sum Settlement (WCB-10), Statement of Compensation Paid (WCB-11), and the Employee’s Return to Work Report (WCB-231) shall be filed with the Board’s Central Office in Augusta, State House Station #27, Augusta, Maine 04333-0027. These forms shall be distributed as follows: (1) Workers’ Compensation Board, (2) Employee, (3) Insurer, and (4) Employer.

The Notice of Controversy (WCB-9) and the Employer’s First Report of Occupational Injury or Disease (WCB-1) shall be filed and distributed as set forth in W.C.B. Rule Ch. 3, §4.

§ 8. The Employment Status Report (WCB-230) shall be distributed as follows: (1) Employee, (2) Insurer, and (3) Employer.

§ 9. The Request for Expedited Proceeding (WCB-250) shall be attached to the front of the appropriate petition and supporting documents.

§ 10. Cancer Presumption for Firefighters

This rule applies to all cases now pending before the Workers’ Compensation Board in which the evidence has not closed and in which the statute applies. For all dates of injury occurring before the effective date of these rules, sub-section 1 applies. For all dates of injury occurring on and after the effective date of these rules, sub-section 2 applies.

1. If a firefighter claims that he has contracted a cancer defined in §328-B(1)(A), the firefighter shall be considered to have undergone a standard, medically acceptable test for evidence of the cancer for which the presumption is sought or evidence of the medical conditions derived from the disease, which test failed to indicate the presence or condition of the cancer for which the presumption is sought, if, during the time of employment as a firefighter, the firefighter underwent a standard physical exam with blood work and the examination and the blood work were not positive for the cancer for which the presumption is sought, or if the examination or blood work were positive for the cancer for which the presumption is sought, follow up tests ordered by the physician conducting the physical were determined to be negative for the cancer for which the presumption is sought.

2. If a firefighter claims that he has contracted a cancer defined in §328-B(1)(A), the firefighter shall be considered to have undergone a standard, medically acceptable test for evidence of the cancer for which the presumption is sought or evidence of the medical conditions derived from the disease, which test failed to indicate the presence or condition of the cancer for which the presumption is sought, if, during the time of employment as a firefighter, the firefighter underwent a physical examination which included a complete history and physical examination, which included a history of malignancies regarding the firefighter’s blood-related parents, grandparents or siblings, and a history of the firefighter’s previous malignancies. The physical examination shall be considered complete if it included a lymph node and neurologic exam, a breast examination, and a testicular examination if a male. To be considered complete, an examination shall include blood count testing (CBC), metastolic profile (CMP) testing, and urinalysis testing. If a female firefighter is 40 years or older, the examination should include a mammography, and if a female firefighter is 50 years or older, a colonoscopy. If a male firefighter is 50 years or older, the examination shall include prostate examination and a colonoscopy. If any abnormality is disclosed during the examination or blood work for the cancer for which the presumption is sought and further testing reveals that the cancer for which the presumption is sought is not present, the examination shall be considered adequate for purpose of the application of the presumption. For the purpose of determining the completeness of an exam or testing for application of the presumption, the firefighter’s age at the time of the exam is determinative.

3. If an examination or blood work is determined to be incomplete or positive for one or more cancers but not for the cancer for which the presumption is sought and the examination and blood work were complete and not positive for the cancer for which the presumption is sought, the firefighter is entitled to the presumption provided the remaining requirements of §328-B have been met.

§ 11. Post-Insolvency Meeting between the Board and the Maine Insurance Guaranty Association

1. Within 180 days of notice of insolvency to the Board or its designee and the Maine Insurance Guaranty Association (“MIGA”), the Executive Director or the Executive Director’s designee shall schedule a meeting with MIGA.

2. During the meeting, MIGA shall provide the Board with a report detailing:

A. When it obtained the claim records of the insolvent insurer;

B. The number of claim records it received from the insolvent insurer broken down by:

i. Active claims;

ii. Claims that are not active but still within the statute of limitations; and

iii. Claims that are beyond the statute of limitations;

C. A description of the condition of the claim records of the insolvent insurer; and

D. The steps MIGA has taken to ensure the claims are being adjusted in a timely manner.

3. During the meeting the Executive Director or the Executive Director’s designee shall provide MIGA with a report detailing the number of claim records it has broken down by:

i. Active claims;

ii. Claims that are not active but still within the statute of limitations; and

iii. Claims that are beyond the statute of limitations.

4. At the conclusion of the meeting, the Board or its designee shall determine whether a follow-up report from MIGA or an additional meeting is required to ensure claims are being adjusted in a timely and accurate manner.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: January 8, 1993 (EMERGENCY)
• EFFECTIVE DATE OF PERMANENT RULE: April 7, 1993
• AMENDED: March 1, 1995
• AMENDED: March 12, 1995
• AMENDED: June 20, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• AMENDED: July 7, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 - minor spelling and formatting
• AMENDED: November 29, 1997 - Section 5
• AMENDED: May 23, 1999 - Section 10 added
• NON-SUBSTANTIVE CORRECTIONS: October 26, 1999 - minor punctuation
• AMENDED: September 24, 2002 - filing 2002-349 affecting Section 7
• AMENDED: NON-SUBSTANTIVE CORRECTIONS
• AMENDED: January 8, 2003 - character spacing only
• AMENDED: June 24, 2007 – filing 2007-250 affecting Section 7
• AMENDED: August 22, 2009 – filing 2009-442, removed Section 10
• AMENDED: April 2, 2012 – filing 2012-94, Section 1 only
• AMENDED: August 15, 2012 – filing 2012-227, Section 10 only
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-168
• AMENDED: September 1, 2018 – filing 2018-122
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 2 Section 213 Compensation for Partial Incapacity

Code Me. R. 90-351 Ch. 2 Section 213 Compensation for Partial Incapacity {#sec-90-351-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 2}

§ 1. Permanent Impairment Threshold

1. The permanent impairment threshold for cases with dates of injury on or after January 1, 1993 and before January 1, 2002 is in excess of 11.8%.

2. The permanent impairment threshold for cases with dates of injury on or after January 1, 2002 and before January 1, 2004 is in excess of 13.2%.

3. The permanent impairment threshold for cases with dates of injury on or after January 1, 2004 and before January 1, 2006 is in excess of 13.4%.

4. The permanent impairment threshold for cases with dates of injury on or after January 1, 2006 and before January 1, 2013 is in excess of 12%.

§ 2. Extension of 260­week limitation in §213

The 260-week benefit limitation in §213 was extended to:

1. 312 weeks on January 1, 1999;

2. 364 weeks on January 1, 2000;

3. 416 weeks on January 1, 2007;

4. 468 weeks on January 1, 2008; and

5. 520 weeks on January 1, 2009.

§ 3. Collection of permanent impairment data

1. A case involves “permanent injury” if any qualified health care provider has indicated that the employee’s limitations are likely permanent. Once this determination has been made the employee may seek a permanent impairment assessment.

2. Permanent impairment ratings shall be calculated by a specialist in a field applicable to the employee’s injury who is qualified by training and/or experience to perform permanent impairment assessments.

3. The specialist’s fee for calculating the permanent impairment rating must be paid by the employer/insurer. The impairment rating may be done in conjunction with a regularly scheduled appointment so long as subsection 4 of this rule is complied with.

4. Determination of the employee’s right to receipt of payment for permanent impairment benefits shall be governed by the law in effect at the time of the employee’s injury.

5. Permanent impairment shall be determined after the effective date of this rule by use of the American Medical Association’s "Guides to the Evaluation of Permanent Impairment," 4th edition, copyright 1993.

§ 4. [ Reserved]

§ 5. Requests for Extension of Benefits Pursuant to 39-A M.R.S.A. §213(1)

1. Cessation of benefits pursuant to 39-A M.R.S.A. §213(1) if no order or award of compensation or compensation scheme has been entered.

A. Prior to cessation of benefits pursuant to 39-A M.R.S.A. §213(1), the employer must notify the employee that the employee’s lost time benefits are due to expire. The notice must be sent at least 21 days in advance of the expiration date, and must include the date the lost time benefits are due to expire and the following paragraph:

If you are experiencing extreme financial hardship due to inability to return to gainful employment, you may be eligible for an extension of your weekly benefits. To request such an extension, you must file a Petition for Extension of Benefits within 30 calendar days of the date that benefits expire, or, in cases where the expiration date is contested, within 30 calendar days of a final decree as to the expiration date.

B. Failure to send the required notice will automatically extend the employee’s entitlement to lost time benefits for the period that the notice was not sent.

C. Notice shall be considered “sent” if it is mailed to the last address to which a compensation check was sent.

1-A. Cessation of benefits pursuant to 39-A M.R.S.A. §213(1) if an order or award of compensation or compensation scheme has been entered.

A. The employer must file a Petition to Terminate Benefit Entitlement which shall contain notice to the employee regarding the process for requesting an extension of benefits.

B. If the Petition to Terminate Benefit Entitlement is granted, the decree shall contain the following language:

If you are experiencing extreme financial hardship due to inability to return to gainful employment, you may be eligible for an extension of your weekly benefits. To request such an extension, you must file a Petition for Extension of Benefits within 30 calendar days of the date of this decree or, if an appeal is filed, within 30 calendar days after the appeal is final.

2. An employee must file a Petition for Extension of Benefits within 30 calendar days of the date that benefits expire, or, in cases where the expiration date is contested, within 30 calendar days of a final decree as to the expiration date. The petition must be served by certified mail, return receipt requested, to the other parties named in the petition.

3. No response to a petition filed under subsection 2 is required. It will be presumed that all allegations are denied.

4. The employee must file responses to the questions contained in Appendix I attached to this rule within 30 days of the date the employee’s petition is filed. The responses must be sent to the employer/insurer. Failure to provide the required responses may result in dismissal with prejudice of the petition, exclusion of evidence, or other sanction that the Board deems just.

5. The employer must turn over any documentary evidence it intends to introduce at hearing at least 15 days prior to the hearing. The information must be sent to the employee. Failure to provide the required evidence may result in exclusion of evidence or other sanction that the Board deems just.

6. Hearings will be held expeditiously in all cases. Hearings will take place before the Board of Directors. A majority vote of the membership of the Board will be required to extend benefits under this rule. Either the General Counsel or the Assistant General Counsel will be present to assist the Board with legal issues.

7. Parties will be allowed to present relevant evidence along with closing arguments on the date of the hearing. Unless extraordinary circumstances warrant, evidence submitted after the hearing will not be accepted.

8. In cases where benefits have been extended, a Petition for Reconsideration of Extended Benefits may be filed by the employer responsible for payment of the additional benefits. The employer must establish a material change in circumstances since the previous order. Orders extending benefits beyond 520 weeks are not subject to review more often than every two years from the date of the board order allowing an extension.

Appendix I

(Employees must provide the following information to the employer/insurer within 30 days of filing the Petition for Extension of Benefits.)

1. State what your present financial condition is (i.e. present monthly income vs. present monthly expenses).

2. State when and where you have looked for work in at least the last 3 months.

3. Provide a copy of your most recent tax return, if one was filed.

4. Please provide any other information that may be relevant to your present financial condition that you plan to rely on at hearing.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: February 22, 1998 - Sections 1 and 2
• AMENDED: August 30, 1998 - Sections 3 and 4 added
• AMENDED: December 14, 1998 - Section 5 and Appendix I added
• AMENDED: May 8, 1999 - Subsections 2(2) and 4(2) added
• AMENDED: July 24, 2000 - amendments to Section 2(3) added
• AMENDED: March 28, 2001 - amendments to Section 4 (repeal & replace) & Section 5(4)
• AMENDED: September 29, 2002 - Section 4 repealed, filing 2002-359
• NON-SUBSTANTIVE CORRECTIONS: January 8, 2003 - character spacing only.
• AMENDED: March 11, 2006 – Sections 1(2) & (3) and 2(4) & (5) added, filing 2006-104
• AMENDED: December 4, 2007 – Section 2(6) and (7) added – 2007 Extension of Benefits, filing 2007-506
• AMENDED: April 12, 2008 - Section 3(2) and (3), regarding PI collection, filing 2008-160
• AMENDED: June 17, 2008 - Section 1(3) and (4), Section 2(6), added 2006 PI adjustment, Section 2(6) added – 2006 Non-Ext of Benefits, filing 2008-256
• AMENDED: February 2, 2009 - Section 2(8) added, filing 2009-43
• AMENDED: August 17, 2009 - Section 2(9) added, filing 2009-434
• REPEALED AND REPLACED: August 18, 2014 - filing 2014-169
• AMENDED: September 1, 2018 – filing 2018-123

Chapter 3 Form FilingAppendix 1 - Introduction and Instructions (PDF) (in Adobe .pdf format)Appendices 2 to 4 (Excel) SROI Conditional Requirements (in Microsoft Excel .xls format)Appendix 5 (RTF) Claims Release 3.0 Standards Data Dictionary (in .rtf format)Appendix 6 (Excel) Element Requirements (in Microsoft Excel .xlsx format)Appendix 7 (RTF) Issuance Conditions (in .rtf format)Appendix 8 (Word) Proof of Coverage Release 2.1 Standards Data Dictionary

Code Me. R. 90-351 Ch. 3 Form Filing {#sec-90-351-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 3}

§ 1. Lost Time: Employer’s First Report of Occupational Injury or Disease (WCB-1)

1. The definition of a day for purposes of filing a First Report of Occupational Injury or Illness (WCB-1) under § 303 is the wages in an employee’s regular workday.

2. Except as provided in paragraph (4) of this section, a First Report of Occupational Injury or Illness (WCB-1) shall be filed within 7 days after an employee has actually lost wages in an amount equivalent to that sum which would have been earned in a regular workday.

3. For purposes of this section, “wages in an employee’s regular workday” is the amount equivalent to a day’s wages for those who earn the same amount each workday, regardless of the duration of such person’s employment. For all others, “wages in an employee’s regular workday” is determined by dividing the pre-tax wages earned by the employee during the four (4) full work week period immediately preceding the date of injury by the number of days worked during the same four (4) full work week period. In the event that an employee has worked for less than the four (4) full work week period preceding the date of injury, “wages in an employee’s regular workday” is determined by dividing the pre-tax wages earned by the number of days worked.

A. The employer/insurer shall record lost wages so that a First Report of Occupational Injury or Illness (WCB-1) can be timely filed pursuant to this rule and §303.

B. In cases involving lost wages from a concurrent employer, the employee shall report to the insurer lost wages from the concurrent employer so that a First Report of Occupational Injury or Illness (WCB-1) can be timely filed pursuant to this rule and §303.

4. If the employee has physical limitations due to the injury and loses consecutive hours equal to a regular work day because the employer cannot accommodate those restrictions, a First Report of Occupational Injury or Illness (WCB-1) shall be filed within 7 days after an employee has actually lost hours equal to a regular work day regardless of actual wage loss.

§ 1-A. Medical Only: Employer’s First Report of Occupational Injury or Disease (WCB-1)

An employer shall complete a First Report of Occupational Injury or Illness (WCB-1) within 7 days after the employer receives notice or has knowledge of an injury that has required the services of a health care provider but has not caused the employee to lose a day’s work. A copy of the First Report of Occupational Injury or Illness (WCB-1) shall be sent to the employee and, unless the employer is self-insured, the employer’s insurer within 24 hours after the First Report of Occupational Injury or Illness (WCB-1) has been completed.

§ 2. Filing Requirements

1. Except as specifically provided in 39-A M.R.S.A. §101 et seq. or in these rules, all forms and correspondence, including, but not limited to petitions, shall be filed in the Central Office of the Workers’ Compensation Board.

2. Except as specifically provided in 39-A M.R.S.A. §101 et seq . or in these rules, forms and correspondence required to be filed in the Central Office of the Workers’ Compensation Board are filed when the Board receives the form by mail, in-hand delivery, fax, or other form of electronic transfer.

3. Duplicate paper copies of forms that are filed by fax or other form of electronic transfer will not be accepted.

§ 3. Formal Hearing Correspondence

1. Except as specifically provided in 39-A M.R.S.A. §101 et seq . or in these rules, formal hearing correspondence on a proceeding in progress before an Administrative Law Judge, including, but not limited to, motions to continue, motions for findings of fact and conclusions of law, applications for additional discovery, stipulations, and position papers shall be filed in the regional office to which the case has been assigned.

2. Formal hearing correspondence on a proceeding in progress before an Administrative Law Judge shall be filed by mail, in-hand delivery, fax, or other form of electronic transfer, including e-mail, provided that signatures be included when required. Formal hearing correspondence is filed when the Board receives the correspondence in the regional office to which the case has been assigned.

§ 4. Electronic Data Interchange Filing

1. General

A. First Reports of Injury. Unless a waiver has been granted pursuant to subsection (1)(D)(1) or (2) of this section, all First Reports of Injury and all changes or corrections to First Reports of Injury shall be filed by using the International Association of Industrial Accident Boards and Commissions (IAIABC) Claims Release 3 format.

B. Notices of Controversy. Except as otherwise provided in this paragraph, effective July 1, 2006, unless a waiver has been granted pursuant to subsection (1)(D) (1) or (2) of this section, all Notices of Controversy and all corrections to Notices of Controversy shall be filed using the International Association of Industrial Accident Boards and Commissions (IAIABC) Claims Release 3 format. Changes to Notices of Controversy that have been filed electronically must be made by filing WCB-9 (1/12/06) (Notice of Controversy). Changes to Notices of Controversy filed prior to July 1, 2006 using WCB-9 (10/98) (Notice of Controversy) must be made by filing an amended WCB-9 (10/98) (Notice of Controversy).

C. Waivers

(1) Waivers due to hardship. The Board, at its discretion by majority vote of its membership, may grant an employer, insurer or third-party administrator a waiver of the filing requirements of this section if the employer, insurer or third-party administrator establishes to the satisfaction of the Board that compliance with these requirements would cause undue hardship. For purposes of this section, undue hardship means significant difficulty or expense. Requests for waivers should be submitted in writing and addressed to the Chair of the Workers’ Compensation Board, 27 State House Station, Augusta, Maine 04333‑0027.

(2) Waiver in an individual case. A First Report of Injury or a Notice of Controversy can be filed by paper or fax in an individual case if the Executive Director or the Executive Director’s designee finds that the employer or claim administrator was prevented from complying with this section because of circumstances beyond the control of the employer or claim administrator. A decision by the Executive Director or the Executive Director’s designee may be appealed to the Board of Directors. The appeal must be in writing; must set forth the reasons why the appealing party believes the decision should be reversed; and must be filed within 7 (seven) days of the date of the decision appealed from.

D. Board file. The Board file shall include all accepted electronic transactions regardless of whether a paper copy is physically in the file.

2. Definitions for filing using IAIABC Claims Release 3

A. Application acknowledgement code. A code used to identify whether or not a transaction has been accepted by the Board. A sender will receive one of the following codes after submitting a transaction:

(1) TA (Transaction accepted). The transaction was accepted and the First Report of Injury or Subsequent Report of Injury is filed.

(2) TE (Transaction accepted with errors). The transaction was accepted with errors and the First Report of Injury or Subsequent Report of Injury is filed. The error or errors will be identified in the acknowledgement transmission that is sent by the Board. All identified errors must be corrected within 14 days after the date the acknowledgement transmission was sent by the Board or prior to any subsequent submission for the same claim, whichever is sooner.

(3) TR (Transaction rejected). The entire transaction has been rejected and the First Report of Injury or Subsequent Report of Injury is not filed.

B. Claim administrator. An insurer, self-insured employer, group self-insurer, third-party administrator or guaranty association.

C. Data element. A single piece of information (for example, date of injury). Each data element is assigned a name and a number. Except as modified in this rule, data element names and numbers are as defined in IAIABC Claims Release 3.0 Standards, Data Dictionary January 1, 2010 Edition (Appendix V).

D. Data element requirement code. A code used to designate whether or not a data element has to be included in a transaction. Each data element is assigned one of the following data element requirement codes:

(1) M (Mandatory). The data element must be present and must be in a valid format or the transaction will be rejected.

(2) MC (Mandatory/Conditional). The data element is mandatory if the conditions defined in the Maine Workers’ Compensation Board Claims Release 3 First Report Conditional Requirement Table (Appendix II) or the Maine Workers’ Compensation Board Claims Release 3 Subsequent Report of Injury Conditional Requirement Table (Appendix IV) exist.

(3) E (Expected). The data element is expected when a transaction is submitted. The transaction will be accepted without the data element and the First Report of Injury or Subsequent Report of Injury is filed but is incomplete. The entity submitting the transaction will receive a message indicating the transaction was accepted with errors and identifying the missing or incorrect data element or elements. The First Report of Injury or Subsequent Report of Injury must be completed by submitting the missing or corrected data element or elements within 14 days after the error message is sent by the Board or prior to any subsequent submission for the same claim, whichever is sooner.

(4) EC (Expected/Conditional). The data element is expected if the conditions defined in the Maine Workers’ Compensation Board Claims Release 3 First Report Conditional Requirement Table (Appendix II) or the Maine Workers’ Compensation Board Claims Release 3 Subsequent Report of Injury Conditional Requirement Table (Appendix IV) exist. The transaction will be accepted without the data element and the First Report of Injury or Subsequent Report of Injury is filed but is incomplete. The entity submitting the transaction will receive a message indicating the transaction was accepted with errors and identifying the missing or incorrect data element or elements. The First Report of Injury or Subsequent Report of Injury must be completed by submitting the missing or corrected data element or elements within 14 days after the error message is sent by the Board or prior to any subsequent submission for the same claim, whichever is sooner.

(5) IA (If Available). The data element should be sent if available. If the data element is sent, the Workers’ Compensation Board may edit the data to ensure valid value and format. A filing will not be rejected if the only error is a missing data element designated IA.

(6) NA (Not Applicable). The data element does not apply to the maintenance type code and does not have to be sent. The Board will not edit these data elements.

(7) F (Fatal Technical). Data elements that must be sent. If a data element designated F is not present and in a valid format, the filing will be rejected.

(8) X (Exclude). The data element does not apply to the maintenance type code and does not have to be sent. The Board will not edit these data elements.

(9) FY (Fatal Yes Change). If a data element designated FY changes after a First Report of Injury or Subsequent Report of Injury has been filed, the claim administrator must report the change to the Board within 14 days after the data element changes.

(10) N (No Change). This data element cannot be changed, but it must be reported, if applicable.

(11) Y (Yes Change). Data elements designated Y may be changed.

(12) FC (Fatal/Conditional). This data element must be populated with previously reported values if the segment has previously been reported on the claim.

(13) YC (Yes Change/Conditional). The data element must be changed if the conditions defined in the Maine Workers’ Compensation Board Claims Release 3 First Report of Injury Conditional Requirement Table (Appendix II) or the Maine Workers’ Compensation Board Claims Release 3 Subsequent Report of Injury Conditional Requirement Table (Appendix IV) exist.

E. Maintenance type code. Maintenance type codes define the specific purpose of individual records within the transaction being transmitted.

F. Record. A defined group of data elements that is identified by the transaction set identifier.

G. Report. A report is equivalent to a transaction.

H. Transaction. The communication of data that represents a single business event. A transaction consists of one or more records.

I. Transaction set identifier. A code that identifies the transaction being sent.

(1) 148 – First Report of Injury

(2) R21 – First Report Companion Record

(3) A49 – Subsequent Report

(4) R22 – Subsequent Report Companion Record

(5) AKC – Claims Acknowledgement Detail Record

(6) HD1 – Transmission Header Record

(7) TR2 – Transmission Trailer Record

J. Transmission. One or more sets of records sent to the Board.

3. Requirements for filing using IAIABC Claims Release 3.

A. Maintenance type codes for First Reports of Injury. One of the following maintenance type codes shall be used when transmitting a First Report of Injury:

(1) 00 (Original): Used to file an original First Report of Injury or to re-transmit a First Report of Injury that was previously rejected or cancelled.

(2) 01 (Cancel): Used to cancel an original First Report of Injury that was sent in error.

(3) 02 (Change): Used to change a data element.

(4) 04 First Report Of Injury (First Report of Injury/Full Denial): Used to file an original First Report of Injury and simultaneously deny a claim in its entirety.

(5) CO (Correction): Used to correct a data element or elements when a filing is accepted with errors (“TE”).

(6) AQ (Acquired Claim): Used to report that a new claim administrator has acquired the claim.

(7) AU (Acquired/Unallocated): Used to file an initial First Report of Injury by a new claim administrator when an AQ transaction has been rejected because the claim was not previously reported, or when the acquiring claim administrator is reopening a claim that was previously cancelled.

(8) UR (Upon Request): Submitted in response to a request from the Board. Responses must be filed no later than 14 days after the request is made by the Board.

B. Maintenance type codes for Subsequent Reports of Injury. One of the following maintenance type codes shall be used when transmitting a Subsequent Report of Injury.

(1) 04 (Notice of Controversy – Full Denial): Used when a claim is being denied in its entirety after any First Report of Injury or Subsequent Report of Injury has been filed.

(2) PD (Notice of Controversy -- Partial Denial): Used to file a Notice of Controversy denying a specific benefit or benefits. A Notice of Controversy -- Partial Denial may not be filed unless a First Report of Injury has been filed.

(3) CO (Correction): Used to correct a data element or elements when a Subsequent Report of Injury has been accepted with errors (“TE”).

C. Data element requirements and modifications.

(1) Data element requirements are as set forth in the Maine Workers’ Compensation Board, Claims Release 3 First Report of Injury Element Requirements Table contained in Appendix I of this rule, and the Maine Workers’ Compensation Board, Claims Release 3 Subsequent Report of Injury Element Requirements Table contained in Appendix III of this rule.

(2) Modifications.

(a) Data number 270, Employee ID Type Qualifier. When submitting a First Report of Injury, data number 270 is mandatory conditional. However, if the claim administrator is unable to obtain an employee identification number from an employer prior to transmitting a First Report of Injury, the claim administrator must obtain an employee ID assigned by jurisdiction number from the Board. The claim administrator shall file the First Report of Injury using the employee ID assigned by jurisdiction number obtained from the Board. A First Report of Injury submitted with an employee identification number obtained from the Board is filed but is incomplete. The claim administrator must either establish that it is unable to obtain an employee identification number from the employer or complete the First Report of Injury by submitting an employee identification number obtained from the employer within 14 days after the First Report of Injury was filed or prior to any subsequent submission for the same claim, whichever is sooner. Unless the claim administrator obtains and submits an employee identification number obtained from the employer, the employee ID assigned by jurisdiction number obtained from the Board must be used on all future filings regarding the same claim.

(b) Data number 200, Claim Administrator Alternative Postal Code. Data number 200, Claim Administrator Alternative Postal Code shall be M (Mandatory) effective April 1, 2007.

4. Paper distribution of forms filed electronically

A. First Report of Injury

(1) Form WCB-1 (First Report of Injury) shall be used when a copy of the First Report of Injury is mailed pursuant to this subsection.

(2) Form WCB-1 shall be mailed to the employee and the employer within 24 hours after the First Report of Injury is transmitted to the Board.

(3) Unless a waiver has been granted pursuant to subsection (1)(D) of this section, a First Report of Injury sent to the Board in a paper as opposed to electronic format shall not be considered filed.

B. Notices of Controversy

(1) Form WCB-9 (1/12/06) (Notice of Controversy) shall be used when a copy of the Notice of Controversy is mailed pursuant to this subsection.

(2) Form WCB-9 (1/12/06) (Notice of Controversy) shall be mailed to the employee, the employer and, if required by W.C.B. Rules Ch. 5 §7 (2) or Ch. 8 §2, the health care provider, within 24 hours after the Notice of Controversy is transmitted to the Board.

(3) Except as provided in subsection (1)(B) of this section, unless a waiver has been granted pursuant to subsection (1)(D) of this section, a Notice of Controversy sent to the Board in a paper as opposed to electronic format shall not be considered filed.

§ 5. Electronic filing of proof of coverage

1. General

A. (1) Unless a waiver has been granted pursuant to subsection (1)(B) of this section, insurance companies shall file with the Board notice of the new, renewal, or endorsement of any workers’ compensation policy to an employer using International Association of Industrial Accident Boards and Commissions (“IAIABC”) Proof of Coverage Release 2.1.

(2) The required notice must be filed with the Board no later than 30 days after issuance, renewal or policy initiating endorsement.

B.(1) The Board, at its discretion by majority vote of its membership, may grant an insurer a waiver of the filing requirements of this section if the insurer establishes to the satisfaction of the Board that compliance with these requirements would cause undue hardship. For purposes of this section, undue hardship means significant difficulty or expense. Requests for waivers must be submitted in writing and addressed to the Chair of the Workers’ Compensation Board, 27 State House Station, Augusta, Maine 04333‑0027.

(2) Individual waiver. An individual notice of Proof of Coverage can be filed by paper or fax if the Executive Director or the Executive Director’s designee finds that the insurer was prevented from complying with this section because of circumstances beyond the control of the insurer. A decision by the Executive Director or the Executive Director’s designee may be appealed to the Board of Directors. The appeal must be in writing; must set forth the reasons why the appealing party believes the decision should be reversed; and must be filed within 7 (seven) days of the date of the decision appealed from.

2. Definitions

A.Application acknowledgement codes. A code used to identify whether or not a transaction has been accepted by the Board. A sender will receive one of the following codes after submitting a transaction:

(1) HD. The transmission was rejected and the Proof of Coverage is not filed.

(2) TA (Transaction accepted). The transaction was accepted and the Proof of Coverage is filed.

(3) TE (Transaction accepted with errors). The transaction was accepted with errors and the Proof of Coverage is filed. The error or errors will be identified in the acknowledgement transmission that is sent by the Board. All identified errors must be corrected within 14 days after the date the acknowledgement transmission was sent by the Board.

(4) TR (Transaction rejected). The entire transaction has been rejected and the Proof of Coverage is not filed.

(5) TW and TN. These application acknowledgement codes are not used.

B. Data element. A single piece of information (for example, policy effective date). Each data element is assigned a name and a number. Except as modified in this rule, data element names and numbers are as defined in IAIABC Proof of Coverage Release 2.1, Data Dictionary June 1, 2007 Edition (Appendix XI).

C. Data element requirement code. A code used to designate whether or not a data element has to be included in a transaction. Each data element is assigned one of the following data element requirement codes:

(1) M (Mandatory). The data element must be present and must be in a valid format or the transaction will be rejected.

(2) MC (Mandatory/Conditional). The data element is mandatory if the conditions defined in the Maine Workers’ Compensation Board Proof of Coverage Release 2.1 Conditional Requirement Table (Appendix X) exist.

(3) E (Expected). The data element is expected when a transaction is submitted. The transaction will be accepted without the data element and the notice of Proof of Coverage is filed but is incomplete. The entity submitting the transaction will receive a message indicating the transaction was accepted with errors and identifying the missing or incorrect data element or elements. The notice of Proof of Coverage must be completed by submitting the missing or corrected data element or elements within 14 days after the error message is sent by the Board or prior to any subsequent submission for the same policy, whichever is sooner.

(4) EC (Expected/Conditional). The data element is expected if the conditions defined in the Maine Workers’ Compensation Board Proof of Coverage Release 2.1 Conditional Requirement Table (Appendix X) exist. The transaction will be accepted without the data element and the notice of Proof of Coverage is filed but is incomplete. The entity submitting the transaction will receive a message indicating the transaction was accepted with errors and identifying the missing or incorrect data element or elements. The notice of Proof of Coverage must be completed by submitting the missing or corrected data element or elements within 14 days after the error message is sent by the Board or prior to any subsequent submission for the same policy, whichever is sooner.

(5) IA (If Available). The data element should be sent if available. If the data element is sent, the Workers’ Compensation Board may edit the data to ensure valid value and format. A filing will not be rejected if the only error is a missing data element designated IA.

(6) NA (Not Applicable). The data element does not apply to the triplicate code and does not have to be sent. The Board will not edit these data elements.

(7) R (Restricted).

(8) F or FT (Fatal Technical). Data elements that must be sent. If a data element designated F is not present and in a valid format, the filing will be rejected.

(9) X (Exclude). The data element does not apply to the triplicate code and does not have to be sent. The Board will not edit these data elements.

D. Record. A defined group of data elements that is identified by the transaction set identifier.

E. Report. A report is equivalent to a transaction.

F. Transaction. The communication of data that represents a single business event. A transaction consists of one or more records.

G. Triplicate code. The triplicate code defines the specific purpose for which the transaction is being sent. It is a combination of the Transaction Set Purpose Code (DN0300), Transaction Set Type Code (DN0334) and Transaction Reason Code (DN0303).

3. Requirements for filing using IAIABC Proof of Coverage Release 2.1

A. Triplicate code. One of the triplicate codes contained in the MWCB Proof of Coverage Element Requirement Table shall be used when transmitting Proof of Coverage.

B. Data element requirements. Data element requirements are as set forth in the Maine Workers’ Compensation Board IAIABC Proof of Coverage Release 2.1 Element Requirement Table contained in Appendix IX of this rule.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §101 et seq.
• EFFECTIVE DATE: March 4, 2001
• AMENDED: September 29, 2002 - Sections 2 and 3 added, filing 2002-359
• NON-SUBSTANTIVE CORRECTIONS: January 8, 2003 - character spacing only
• AMENDED: June 1, 2004 - filing 2004-176, §4 added
• AMENDED: June 24, 2007 - §4 (repeal and replace), and addition of appendices, filing 2007-252
• AMENDED: August 22, 2009 - §5 and addition of appendices IX - XI; filing 2009-442
• AMENDED: August 7, 2010 - §4 amended, appendices repealed, amended or renumbered; filing 2010-320
• AMENDED: December 27, 2010 - §1 amended; filing 2010-639
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-170
• AMENDED: September 1, 2018 – filing 2018-124
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• AMENDED: 90-351
• AMENDED: Maine Workers' Compensation Board
• AMENDED: Rule Chapter 3 Electronic Filing
• AMENDED: List of Appendices
• AMENDED: I. Instructions and
• AMENDED: Maine Workers' Compensation Board (MWCB)
• AMENDED: Claims Release 3 (CR 3), First Report of Injury (FROI),
• AMENDED: Element Requirement Table
• AMENDED: II. MWCB CR 3, FROI, Conditional Requirement Table
• AMENDED: III. MWCB CR 3, Subsequent Report of Injury (SROI),
• AMENDED: Element Requirement Table
• AMENDED: IV. MWCB CR 3, SROI, Conditional Requirement Table
• AMENDED: V. IAIABC CR 3, Data Dictionary, 01/01/2010 Edition
• AMENDED: VI. MWCB Proof of Coverage Element Requirement Table
• AMENDED: VII. MWCB Proof of Coverage Conditional Requirement Table
• AMENDED: VIII. IAIABC Proof of Coverage Release 2.1 Data Dictionary, 06/01/07 Edition
• AMENDED: Copies of the Appendices may be requested by contacting the Workers’ Compensation Board:
• AMENDED: Workers' Compensation Board
• AMENDED: 27 State House Station
• AMENDED: Augusta ME 04333-0027
• AMENDED: Tel: 207-287-3818
• AMENDED: or online at:
• AMENDED: http://www.maine.gov/sos/cec/rules/90/chaps90-.htm

Chapter 4 Independent Medical Examiner

Code Me. R. 90-351 Ch. 4 Independent Medical Examiner {#sec-90-351-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 4}

§ 1. Creation of Independent Medical Examiner System Pursuant to 39-A M.R.S.A. §312

1. To be eligible to participate in the Board appointed independent medical examiner program, health care providers must meet the criteria of this subsection.

A. The provider must be licensed/certified by the State of Maine.

B. (1) The provider must have an active, treating practice, or have had an active treating practice within the twenty-four (24) months period preceding appointment as an examiner in an individual case;

(2) Be Board certified; and

(3) Demonstrate experience in the treatment of work-related injuries.

For purposes of this chapter, “active, treating practice” means the provider has direct involvement in evaluation, diagnosis and treatment of patients on a frequent and regular basis in their specific field of expertise.

C. The provider must demonstrate superior qualifications and experience in their particular fields of expertise.

2. Participation of health care providers in the independent medical examiner system is limited to those providers practicing in health care specialties most commonly used by injured employees. The Executive Director or the Executive Director’s designee may submit for the Board’s review and approval a breakdown of specialists within the 50 slots. Geography may also be a consideration for initial appointment.

3. All health care providers interested in participating in the independent medical examiner system must file an updated curriculum vitae with the Office of Medical/Rehabilitation Services, Workers’ Compensation Board, 27 State House Station, Augusta, Maine 04333. Examiner candidate applications are public information. The Board may request additional information from applicants.

4. The Executive Director or the Executive Director’s designee will annually review the performance of independent medical examiners for compliance with the criteria contained in this subsection and forward any concerns in a report to the Board. Failure by the examiner to adhere to the following criteria may result in their removal at any time from the independent medical examiner list. Affirmative action of the Board is necessary to remove an independent medical examiner from the panel.

A. Reports must be submitted in a timely manner.

B. Reports must contain the examiner’s findings on the medical issues raised by the case.

C. Reports must provide a description of findings sufficient to explain the medical basis of those findings.

D. Examiners must consider all of the medical evidence submitted by the parties.

E. Examiners must act in compliance with the requirements of the law and these regulations.

F. Examiners must provide independent, impartial, and objective medical findings in cases assigned to them.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: January 13, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 -- header added, minor spelling and formatting
• AMENDED: November 1, 2001
• NON-SUBSTANTIVE CORRECTIONS: January 8, 2003 - character spacing only
• NON-SUBSTANTIVE CORRECTIONS: March 17, 2004 - numbering and punctuation only
• AMENDED: October 11, 2009 – filing 2009-535
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-171
• AMENDED: September 1, 2018 – filing 2018-125
• AMENDED: December 16, 2023 – filing 2023-248

Chapter 5 Medical Fees; Reimbursement Levels; Reporting Requirements (includes Form M-1)

Code Me. R. 90-351 Ch. 5 Medical Fees; Reimbursement Levels; Reporting Requirements {#sec-90-351-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 5}

The Medical Fee Schedule is available online at http://www.maine.gov/wcb/Departments/omrs/medfeesched.html.

This chapter outlines billing procedures and reimbursement levels for health care providers who treat injured employees. It also describes the dispute resolution process when there is a dispute regarding reimbursement and/or appropriateness of care. Finally, this chapter sets standards for health care reporting.

SECTION 1. GENERAL PROVISIONS

1. APPLICATION 1. This chapter is promulgated pursuant to 39-A M.R.S.A. §§ 208 and 209-A. It applies to all medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids provided for treatment of a claimed work-related injury or disease on or after the effective date of this chapter, regardless of the employee’s date of injury or illness. Treatment does not include expenses related to managed care services such as utilization review, case management, and bill review or to examinations performed pursuant to 39-A

M.R.S.A. §§ 207 and 312.

PAYMENT CALCULATION

• 1. Pursuant to Title 39-A M.R.S.A. § 209-A, the Board has adopted this medical fee schedule which reflects the payment methodology developed by the federal Centers for Medicare and Medicaid Services. The Board has not adopted all components used by the federal Centers for Medicare and Medicaid

Services. Application of any fee schedule, payment system, claims processing rule, edit or other method of determining the reimbursement level for a service(s) not expressly adopted in this chapter is prohibited.

• 1. Payment is based on the fees in effect on the date of service.

DEFINITIONS

• 1. Acute Care Hospital: A health care facility with a General Acute Care Hospital Primary Taxonomy in the NPI Registry. 2. Ambulatory Payment Classification System (APC): Centers for Medicare & Medicaid Services’ list of procedure codes, status indicators, ambulatory payment classifications, and relative weighting factors. 3. Ambulatory Surgical Center (ASC): A health care facility with an Ambulatory Surgical Clinic/Center Primary Taxonomy in the NPI Registry. 4. Bill: A request by a health care provider that is submitted to an employer/insurer for payment of medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids provided for treatment of a work- related injury or disease. 5. Board: The Maine Workers’ Compensation Board pursuant to 39-A M.R.S.A. § 151. 6. Critical Access Hospital: A health care facility with a Critical Access Hospital Primary Taxonomy in the NPI Registry. 7. Global Days: The number of days of care following a surgical procedure that are included in the procedure’s maximum allowable payment but does not include care for complications, exacerbations, recurrence, or other diseases or injuries. 8. Health Care Provider: An individual, group of individuals, or facility licensed, registered, or certified and practicing within the scope of the health care provider’s license, registration or certification. This paragraph shall not be construed as enlarging the scope and/or limitations of practice of any health care provider. 9. Health Care Records: includes office notes, surgical/operative notes, progress notes, diagnostic test results and any other information necessary to support the services rendered. 10. Implantable: An object or device that is made to replace and act as a missing biological structure that is surgically implanted, embedded, inserted, or otherwise applied. The term also includes any related equipment necessary to operate, program, and recharge the implantable. 11. Incidental supplies: Supplies and materials usually included with the office visit or other services rendered. 12. Incidental Surgery: A surgery which is performed on the same patient, on the same day, by the same health care provider but is not related to the diagnosis. 13. Inpatient Services: Services rendered to a person who is formally admitted to a hospital and whose length of stay exceeds 23 hours or is expected to have a length of stay exceeding 23 hours, even though it later develops that the patient dies, is discharged, or is transferred to another facility and does not actually stay in the institution for more than 23 hours. 14. Maximum Allowable Payment (MAP): The sum of all fees for medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids established by the Board pursuant to this chapter. 15. Modifier: A code adopted by the Centers for Medicare & Medicaid Services that provides the means to report or indicate that a service or procedure that has been performed has been altered by some specific circumstance but not changed in its definition or code. 16. Outpatient Services: Services provided to a patient who is not admitted for inpatient or residential care (includes observation services). 17. Procedure Code: A code adopted by the Centers for Medicare & Medicaid Services that is divided into two principal subsystems, referred to as level I and level II of the Healthcare Common Procedure Coding System (HCPCS). Level I is comprised of Current Procedural Terminology (CPT®), a numeric coding system maintained by the American Medical Association (AMA). Level II is a standardized coding system that is used primarily to identify products, supplies, and services not included in the CPT® codes. The CPT® manual is published by and may be purchased from the AMA, PO Box 930876, Atlanta, GA 31193-0876. 18. Resource-Based Relative Value Scale (RBRVS): Centers for Medicare & Medicaid Services’ list of procedure codes, modifiers, relative weighting factors, global surgery days, and global surgery package percentages. 19. Severity-Diagnosis Related Group System (MS-DRG): Centers for Medicare & Medicaid Services’ list of Medicare severity diagnosis-related groups, relative weighting factors, and geometric mean length of stay days. 20. Usual and Customary Charge: The charge on the price list for the medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids that is maintained by the health care provider.

LEGAL DISCLAIMERS

• 1. This chapter includes data that is proprietary to the AMA, therefore, certain restrictions apply. These restrictions are established by the AMA and are set out below: 1. The five character codes included in this chapter are obtained from the Current Procedural Terminology (CPT®), Copyright by the AMA. CPT® is developed by the AMA as a listing of descriptive terms and five character identifying codes and modifiers for reporting medical services and procedures. 2. The responsibility for the content of this chapter is with the Board and no endorsement by the AMA is intended or should be implied. The AMA disclaims responsibility for any consequences or liability attributable or related to any use, nonuse or interpretation of information contained in this chapter. 3. No fee schedules, basic unit values, relative value guides, conversion factors or scales are included in any part of CPT®. Any use of CPT® outside of this chapter should refer to the most current CPT® which contains the complete and most current listing of codes and descriptive terms.

AUTHORIZATION

• 1. Nothing in the Act or these rules requires the authorization of medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids provided pursuant to 39-A M.R.S.A. § 206. 2. An employer/insurer is not permitted to require pre-authorization of medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids provided pursuant to 39-A M.R.S.A. § 206 as a condition of payment.

BILLING PROCEDURES

• 1. Bills must specify the billing entity’s tax identification number; the license number, registration number, certificate number, or National Provider Identifier of the health care provider; the employer’s name and address; the employee’s name and address; the date of injury/occurrence; the date of service; the work-related injury or disease treated; the appropriate procedure code(s) for the work-related injury or disease treated; and the charges for each procedure code. Bills properly submitted on standardized claim forms prescribed by the Centers for Medicare &

Medicaid are sufficient to comply with this requirement.

• 1. Within 30 days after receipt of a bill that is missing one or more of the required elements set forth in paragraph 1 of this sub-section, an employer/insurer may pay the bill; return the bill for proper coding; or, file a Notice of Controversy as set forth in subsection 1.07. The employer/insurer must specify which element(s) are missing in the Notice of Controversy or communication requesting that the bill be properly coded. 2. Bills for insured employers must be submitted directly to the insurer of record on the date of injury/occurrence. Health care providers shall attempt to verify the name of the insurer that wrote the workers’ compensation policy for the specific employer on the date of injury/illness prior to the submission of a bill to an insurer. 3. In the event a patient fails to keep a scheduled appointment, health care providers are not to bill for any services that would have been provided nor will there be any reimbursement for such scheduled services. 4. A bill must be accompanied by health care records to substantiate the services rendered. Fees for copies of health care records are outlined below.

REIMBURSEMENT

• 1. The injured employee is not liable for payment of any medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids provided pursuant to 39-A M.R.S.A. § 206. Except as provided by 39-A M.R.S.A.

§ 206(2)(B), health care providers may charge the patient directly only for the treatment of conditions that are unrelated to the compensable injury or disease. See 39-A M.R.S.A. § 206(13).

• 1. Changes to bills by employers/insurers are not allowed. The employer/insurer must pay the health care provider’s usual and customary charge or the maximum allowable payment under this chapter, whichever is less, within 30 days of receipt of a bill that complies with subsection 1.06 unless the bill or previous bills from the same health care provider or the underlying injury has been controverted or denied. If a procedure code currently in use is not included in Appendix II, III or IV, the employer/insurer must pay the health care provider’s usual and customary charge. 1. When there is a dispute whether the provision of medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids is reasonable and proper under § 206 of the Act, the employer/insurer shall pay the undisputed amounts, if any, and file a notice of controversy within 30 days of receipt. A copy of the notice of controversy must be sent to the health care provider from whom the bill originated in accordance with Chapter 3. 2. In cases where the underlying injury has been controverted or denied, a copy of the notice of controversy must be sent to each health care provider that submits or has submitted a request for payment within 30 days of receipt. 3. A health care provider, employee or other interested party is entitled to file a petition for payment of medical and related services for determination of any dispute regarding the provision of medical, surgical and hospital services, nursing, medicines, and mechanical surgical aids. 2. When there is a dispute whether a request for future medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids is reasonable and proper under § 206 of the Act, the employer/insurer must file a notice of controversy within 30 days of receipt of the request. A copy of the notice of controversy must be sent to the originator of the request. A health care provider, employee, or other interested party is entitled to file a petition for payment of medical and related services for determination of any dispute regarding the request for medical, surgical and hospital services, nursing, medicines, and mechanical, surgical aids. 3. Payment of a medical bill is not an admission by the employer/insurer as to the reasonableness of subsequent medical bills. 4. Nothing in this chapter precludes payment agreements to promote the quality of care and/or the reduction of health care costs. 1. A written payment agreement directly between a health care provider and an employer/insurer supersedes the maximum allowable payment otherwise available under this chapter. 2. A written payment agreement between a health care provider and an entity other than the employer/insurer seeking to invoke its terms supersedes the maximum allowable payment otherwise available under this chapter only if the employer/insurer is a contractual beneficiary of the payment agreement on the date of service. 3. An employee retains the right to select health care providers for the treatment of an injury or disease for which compensation is claimed regardless of any such payment agreement. 4. An employer/insurer that invokes a payment agreement to pay an amount that is different from the maximum allowable payment otherwise available under this chapter shall specifically identify the payment agreement in the employer/insurer’s explanation of payment or benefit. 5. In the event of a dispute as to whether there is a payment agreement that supersedes the maximum allowable payment otherwise payable, the burden is on the party invoking the payment agreement to provide a written contract between the provider and the entity other than the employer/insurer within 30 days of a provider’s request. This contract must establish the party’s right to pay an amount different than provided in this chapter. Failure to produce the contract within 30 days of a request will result in the bill being subject to the maximum allowable payment established in this chapter. 5. Payment to out-of-state health care providers who treat injured employees pursuant to 39-A M.R.S.A. § 206 are subject to this chapter. 6. Modifiers which affect reimbursement are as follows:

-22 Increased Procedural Services: pay 150% of the maximum allowable payment under this chapter.

-50 Bilateral Procedure: pay 150% of the maximum allowable payment under this chapter for both procedures combined.

-51 Multiple Procedures: pay the highest weighted procedure at 100% of the maximum allowable payment under this chapter and all additional procedures at 50% of the maximum allowable payment under this chapter. Add-on codes are not subject to discounting.

-52 Reduced Services: pay 50% of the maximum allowable payment under this chapter if the procedure was discontinued after 1) the employee was prepared for the procedure and 2) the employee was taken to the room where the procedure was to be performed. Pay 100% of the maximum allowable payment if the procedure was discontinued after 1) the employee received anesthesia or 2) the procedure was started (e.g. scope inserted, intubation started, incision made).

-53 Discontinued Procedure: pay 25% of the maximum allowable payment under this chapter.

-54 Surgical Care Only: pay the intra-operative percentage of the maximum allowable payment under this chapter.

-55 Post-operative Management Only: pay the post-operative percentage of the maximum allowable payment under this chapter.

-56 Pre-operative Management Only: pay the pre-operative percentage of the maximum allowable payment under this chapter.

-59 Distinct Procedural Service: pay 100% of the maximum allowable payment under this chapter (not subject to multiple procedure discounting).

-62 Two Surgeons: pay each surgeon 75% of the maximum allowable payment under this chapter.

-66 Surgical Team: pay 100% of the maximum allowable payment under this chapter for the surgical procedure and 25% of the maximum allowable payment under this chapter for the surgical procedure for each additional surgeon in the same specialty as the primary surgeon. If the surgeons are of two different specialties, each surgeon must be paid 100% of the maximum allowable payment under this chapter.

-73 Discontinued Out-Patient Hospital/Ambulatory Surgery Center (ASC) Procedure Prior to the Administration of Anesthesia: pay 50% of the maximum allowable payment under this chapter.

-80 Assistant Surgeon: pay 25% of the maximum allowable payment under this chapter.

-81 Minimum Assistant Surgeon: pay 10% of the maximum allowable payment under this chapter.

-82 Assistant Surgeon (when qualified resident surgeon not available): pay 25% of the maximum allowable payment under this chapter.

-AS Assistant Surgeon (physician assistant, nurse practitioner, or clinical nurse specialist): pay 25% of the maximum allowable payment under this chapter.

-AD Surgical Anesthesia: Physician medically supervised more than 2 to 4 concurrent procedures: pay 50% of the maximum allowable payment under this chapter.

-QK Surgical Anesthesia: Physician medically directed 2, 3, or 4 concurrent procedures: pay 50% of the maximum allowable payment under this chapter.

-QX Surgical Anesthesia: CRNA was medically directed by a physician (2, 3, or 4 concurrent procedures): pay 50% of the maximum allowable payment under this chapter.

-QY Surgical Anesthesia: Physician medically directed a CRNA in a single case: pay 50% of the maximum allowable payment under this chapter.

-XE Separate Encounter: pay 100% of the maximum allowable payment under this chapter (not subject to multiple procedure discounting).

-XP Separate Practitioner: pay 100% of the maximum allowable payment under this chapter (not subject to multiple procedure discounting).

-XS Separate Structure: pay 100% of the maximum allowable payment under this chapter (not subject to multiple procedure discounting).

-XU Unusual Non-Overlapping Service: pay 100% of the maximum allowable payment under this chapter (not subject to multiple procedure discounting).

FEES FOR REPORTS/COPIES

• 1. Health care providers may charge for completing an initial diagnostic medical report (Form M-1) or other supplemental report. The charge is to be identified by billing CPT^® Code 99080. 2. The maximum fee for completing an initial M-1 form or other supplemental report is: Each 10 minutes: $30.00 3. Health care providers may charge for copies of the health care records required to accompany the bill. The charge must be identified on the bill using CPT^® Code S9981 (units equal total number of pages). The maximum fee for copies is $5 for the first page and 45¢ for each additional page, up to a maximum of $250.00. 4. For copies of health care records or other written information, including, but not limited to, billing records furnished in paper form, the maximum fee is $5 for the first page and 45¢ for each additional page, up to a maximum of $250.00. The copying charge must be paid by the requesting party. Health care providers shall not require payment prior to responding to the request unless the requesting party has an unpaid balance for previously requested information from the health care provider. In this event, a health care provider may require payment of the past due balance in addition to pre-payment of the current request prior to responding to the request. Health care providers shall not charge a fee for postage/shipping, sales tax, or a fee for researching a request that results in no records. 5. If the requested information exists in a digital or electronic format, the health care provider shall provide an electronic copy of the requested information, if an electronic copy is requested and it is reasonably possible to provide it. The health care provider may charge reasonable actual costs of staff time to create the electronic information and the costs of necessary supplies, up to a maximum of

$150.00. The copying charge must be paid by the requesting party. Health care

providers shall not require payment prior to responding to the request unless the requesting party has an unpaid balance for previously requested information from the health care provider. In this event, a health care provider may require payment of the past due balance in addition to pre-payment of the current request prior to responding to the request. Health care providers shall not charge a fee for postage/shipping, sales tax, or a fee for researching a request that results in no records.

FEES FOR MEDICAL TESTIMONY

• 1. Health care providers may charge for preparing to testify at depositions and hearings and for attendance at depositions and hearings for the purpose of giving testimony. 2. The maximum fee for preparing to testify at depositions and hearings is: First 30 minutes: $250.00

Each additional 15 minutes: $125.00

• 1. The maximum fee for attendance at depositions and hearings for the purpose of giving testimony is:

First hour or any fraction thereof: $500.00

Each subsequent 15 minutes: $125.00

• 1. Travel time for attendance at depositions and hearings for the purpose of giving testimony is paid on a portal to portal basis when a deposition or hearing is more than ten miles from the health care provider’s home base. The maximum fee for portal-to-portal travel for the purpose of giving testimony is:

Each 60 minutes: $400.00

• 1. Health care providers may request advance payment of not more than $400.00 in order to schedule attendance at depositions and hearings. The advance payment will be applied against the total fees for medical testimony (preparation, travel, and attendance). 2. Health care providers will receive a maximum of $350.00 per canceled deposition when the cancellation occurs less than 24 hours prior to the scheduled start of the deposition. Health care providers will receive a maximum of $300.00 per canceled deposition when the cancellation takes place less than 48 but more than 24 hours

prior to the scheduled start of the deposition. The party canceling the deposition is responsible for the fee.

EXPENSES

The employer/insurer must pay the employee’s travel-related expenses incurred for treatment (includes travel to the pharmacy) related to the claimed injury in accordance with Board Rules and Regulations Chapter 17.

The employer/insurer must pay the employee’s travel-related expenses within 30 days of receipt of a request for reimbursement.

The employer/insurer must reimburse the employee’s out-of-pocket costs for medicines and other non-travel-related expenses within 30 days of a request for reimbursement accompanied by receipts.

MEDICAL INFORMATION

• 1. A. Pursuant to 39-A M.R.S.A. § 208(1), authorization from the employee for release of medical information by health care providers to the employee or the employee’s representative, employer or the employer’s representative, or insurer or insurer’s representative is not required if the information pertains to treatment of an injury or disease that is claimed to be compensable under this Act regardless of whether the claimed injury or disease is denied by the employer/insurer.

B. Pursuant to 39-A M.R.S.A. § 208(1), health care providers must, at the written request of the employer/insurer representative, furnish copies of health care records or other written information, including, but not limited to, billing records to the employer/insurer representative and to the employee representative (if none, to the employee) pertaining to a claimed workers’ compensation injury or disease, regardless of whether the claimed injury or disease is denied by the employer/insurer. Written requests must be on company letterhead, must clearly state the information being requested, and must include the following: (1) the requestor’s full name; (2) the requestor’s mailing address, telephone number, and e-mail address; (3) the first and last name of the employee; (4) the requestor’s relationship to the employee whose records are sought; (5) the date of injury: (6) the body part(s) or conditions pertaining to the date of injury; and, (7) either the specific date(s) of service or the date range within which the requested services were provided. Copies must be furnished within 10 business days from receipt of the written request. An itemized invoice must accompany the copies sent to the requestor.

C. Pursuant to 39-A M.R.S.A. § 208(1), health care providers must, at the written request of the employee or the employee’s representative, furnish copies of health care records or other written information, including, but not limited to, billing records to the employee or the employee’s representative pertaining to a claimed workers’ compensation injury or disease, regardless of whether the claimed injury or disease is denied by the employer/insurer. Written requests must be on company letterhead (if applicable), must clearly state the information being requested, and must include the following: (1) the requestor’s full name; (2) the requestor’s mailing address, telephone number, and e-mail address; (3) the first and last name of the employee; (4) the requestor’s relationship to the employee whose records are sought; (5) the date of injury: (6) the body part(s) or conditions pertaining to the date of injury; and, (7) either the specific date(s) of service or the date range within which the requested services were provided. Copies must be furnished within 10 business days from receipt of the written request. An itemized invoice must accompany the copies sent to the requestor.

• 1. A. Except as provided in subsection 3 of this section, if the employer/insurer or employee representative contends that medical information pre-existing and subsequent to the workplace injury for which claim is being made is relevant to issues in the workers’ compensation case, it shall use Form WCB-220, set forth in Appendix V. Within 14 calendar days the employee or the employee’s authorized representative, as defined in paragraph C of this section, shall sign the release and return it to the requesting party.

Except as provided in this paragraph, all parties, including health care providers, shall only use Form WCB-220 set forth in Appendix V. The use of forms other than the ones set forth in Appendix V is prohibited except that the employee may also sign a medical authorization form acceptable to the health care provider whose records are sought subject to the following requirements:

1. the health care provider is responsible for obtaining the employee’s signature on the form;
2. the completed release must be sent to the requesting party with the copies of the health care records; and
3. the requested records must be furnished within the 30-day time period set forth in paragraph D of this subsection.
4. Within 14 calendar days of receiving the form release set forth in Appendix V from the employer or insurer, the employee or the employee’s authorized representative as defined in paragraph C of this section shall sign the health

care provider’s release and return it to the requesting party.

For purposes of this section, “authorized representative” has the same definition as set forth in 22 M.R.S.A § 1711-C(1)(A).

Health care providers must furnish copies of the health care records within 30 calendar days from receipt of a properly completed Form WCB-220.

Form WCB-220 may be revoked using Form WCB-220R.

• 1. A. In the event that the employer/insurer or employee representative contends that testing, treatment or counseling records related to psychological matters, HIV/AIDS, substance use disorder, or sexually transmitted diseases are relevant to issues in the workers’ compensation case, it may obtain such specific information as agreed upon by the parties. If the parties agree, the parties shall use Form WCB-220A, WCB-220B, or WCB-220C, set forth in Appendix V, as appropriate. Within 14 calendar days after agreement the employee or the employee’s authorized representative, as defined in paragraph D of this section, shall sign the release and return it to the requesting party

Except as provided in this paragraph, all parties, including health care providers parties, including health care providers, shall only use Form WCB- 220A, WCB-220B, or WCB-220C set forth in Appendix V. The use of forms other than the ones set forth in Appendix V is prohibited except that the employee may also sign a medical authorization form acceptable to the health care provider whose records are sought subject to the following requirements:

1. the health care provider is responsible for obtaining the employee’s signature on the form;
2. the completed release must be sent to the requesting party with the copies of the health care records; and
3. the requested records must be furnished within the time period set forth in paragraph E of this subsection.
4. Within 14 calendar days of receiving the form release set forth in Appendix V from the employer or insurer, the employee or the employee’s authorized representative as defined in paragraph E of this section shall sign the health care provider’s release and return it to the requesting party.

In all other cases such information shall be requested on written motion to the Administrative Law Judge showing the need for the information. The Administrative Law Judge may authorize the release of this information subject to appropriate terms and conditions as to reasonable protection of confidentiality.

For purposes of this section, “authorized representative” has the same definition as set forth in 22 M.R.S.A § 1711-C(1)(A)E.

Health care providers must furnish copies of the health care records within 30 calendar days from receipt of a legible and properly completed Form WCB-220A, WCB-220B, or WCB-220C or within 30 calendar days from receipt of an order of an Administrative Law Judge.

Form WCB-220A, WCB-220B, or WCB-220C may be revoked using Form WCB-220R.

A. If an employee who is being paid pursuant to a compensation payment scheme revokes a medical release using Form WCB-220R, the employer/insurer may file a Motion to Compel with the Administrative Law Judge assigned to the case.

B. The Motion must include, at a minimum:

1. A copy of the medical release form that was revoked;
2. The relevant Form WCB-220R;
3. Proof that the revocation was sent to the relevant health care provider(s);
4. An explanation of why continued receipt of the medial records is necessary to adjust the employee’s claim; and
5. Notice that the employee has 21 days to respond to the Motion.

C. The employee may reply within 21 days after receipt of the Motion. The reply must explain why continued receipt of the medical records is not necessary to adjust the employee’s claim.

D. The Administrative Law Judge may grant the Motion to Compel if continued receipt of the medical records is necessary to adjust the employee’s claim.

Nothing in the Act or these rules requires any personal or telephonic contact between any health care provider and a representative of the employer/insurer.

Health care providers must complete the M-1 form set forth in Appendix I in accordance with 39 ­ A M.R.S.A. § 208. The use of a form other than the one set forth in Appendix I is prohibited and may subject the health care provider to penalty under 39-A M.R.S.A. § 360.

Pursuant to 39-A M.R.S.A. § 208, in the event that an employee changes or is referred to a different health care provider or facility, any health care provider or facility having health care records regarding the employee, including x rays, must forward all health care records relating to an injury or disease for which compensation is claimed to the next health care provider. When an employee is scheduled to be treated by a different health care provider or in a different facility, the employee must request to have the records transferred.

Fees for copies of medical information are as set forth in § 1.08 of this chapter.

PERMANENT IMPAIRMENT RATINGS

• 1. Permanent impairment will be determined by the use of the American Medical Association’s Guides to the Evaluation of Permanent Impairment, 4th edition, copyright 1993. 2. Permanent impairment examinations performed by the employee’s treating health care provider will have a maximum charge of $450.00.

SECTION 2. PROFESSIONAL SERVICES

• • 1. PAYMENT CALCULATION 1. Pursuant to 39-A M.R.S.A. § 209-A, the medical fee schedule for services rendered by individual health care providers must reflect the methodology underlying the federal Centers for Medicare and Medicaid Services resource- based relative value scale. 2. Fees for anesthesia services are calculated for procedure codes by multiplying the applicable conversion factor times the sum of the base unit (relative value unit (RVU) of the procedure code plus any modifying units) and time unit. The definition of the unit components are as outlined below. The conversion factor for anesthesia services is $60.00. 3. Fees for all other professional services are calculated for procedure codes by multiplying the applicable conversion factor times the non-facility total RVU. The conversion factor for all other professional services is $60.00. 4. Fees for professional services (excluding anesthesia) are as outlined in Appendix

II. In the event of a dispute regarding the fee listed in Appendix II, the listed relative weight times the base rate controls. For time-based medicine services, one time unit is allowed for each 15 minute interval or significant fraction thereof (7.5 minutes or more) of time. Documentation of actual time spent rendering the service must accompany the bill for services.

EVALUATION AND MANAGEMENT GUIDELINES

• • • 1. Definition of New Patient

A new patient is one who has not received any professional services from the health care provider (or another health care provider of the exact same specialty and subspecialty who belongs to the same group practice) within the past three years, or

A new patient is one who is being evaluated for a new injury/illness to determine work relatedness/causality, or

A new patient is one who is being seen for a new episode of care for an existing injury/illness.

• • • 1. Payments for New Patient Visits

Only one new patient visit is reimbursable to a health care provider (or another health care provider of the exact same specialty and subspecialty who belongs to the same group practice) for the same patient relating to the same episode of care.

• • • 1. For purposes of this section, “episode of care” includes all the professional services provided by the health care provider (or another health care provider of the exact same specialty and subspecialty who belongs to the same group practice) for the same patient for the same injury/illness from date of initial examination to date of discharge from care.

ANESTHESIA GUIDELINES

• • • 1. Definition of the Unit Components

Base Unit: RVU of the five digit anesthesia procedure code (00100-01999) listed in Appendix II plus the unit value of the physical status modifier plus the unit values for any qualifying circumstances.

Physical Status Modifiers. Physical Status modifiers are represented by the initial letter ‘P’ followed by a single digit from 1 to 6 as defined in the following list:

UNIT VALUE

P1:

A normal healthy patient

0

P2:

A patient with mild systemic disease

0

P3:

A patient with severe systemic disease

1

P4:

A patient with severe systemic disease that is

a constant threat to life

2

P5:

A moribund patient who is not expected to survive

without the operation

3

P6:

A declared brain-dead patient whose organs are being

removed for donor purposes

0

Qualifying Circumstances. More than one qualifying circumstance may be selected. Many anesthesia services are provided under particularly difficult circumstances, depending on factors such as the extraordinary condition of patient, notable operative conditions, and/or unusual risk factors. This section includes a list of important qualifying circumstances that significantly affect the character of the anesthesia service provided. These procedures would not be reported alone, but would be reported as additional procedure numbers qualifying as an anesthesia procedure or service.

UNIT VALUE

99100:

Anesthesia for patient of extreme age, under

one year and over seventy

1

99116:

Anesthesia complicated by utilization of total

body hypothermia

5

99135:

Anesthesia complicated by utilization of

controlled hypotension

5

99140:

Anesthesia complicated by emergency conditions

(an emergency is defined as existing when delay

in treatment of the patient would lead to a signifi-

cant increase in the threat to life or body part)

2

Time Unit: Health care providers must bill the number of minutes of anesthesia time. One time unit is allowed for each 15 minute time interval, or significant fraction thereof (7.5 minutes or more) of anesthesia time. If anesthesia time extends beyond three hours, one time unit for each 10 minute time interval, or significant fraction thereof (5 minutes or more) is allowed after the first three hours. Documentation of actual anesthesia time is required, such as a copy of the anesthesia record.

• • • 1. Calculation Examples

In a procedure with a RVU of 3 (no modifiers) requiring one hour of anesthesia time, the total units are determined as follows:

Base Unit 3.0 units

Time Unit + 4.0 units

Total Units = 7.0 units

In a procedure with a RVU of 10, modifying units of 1 and qualifying circumstances of 2, requiring four hours and thirty minutes of anesthesia time, the total units are determined as follows:

Base Unit 13.0 units

Time Unit (First three hours) + 12.0 units Time Unit (Subsequent 90 minutes) + 9.0 units Total Units = 34.0 units

In both cases, the maximum allowable payment is determined by multiplying the total units by the conversion factor.

Total Units X Conversion Factor = Maximum Allowable Payment

SURGICAL GUIDELINES

• • • 1. For surgical procedures that usually mandate a variety of attendant services, the reimbursement allowances are based on a global reimbursement concept. Global reimbursement covers the performance of the basic service and the normal range of care required before and after surgery. The normal range of post-surgical care is indicated under “Global Days” in Appendix II. The maximum allowable payment for a surgical procedure includes all of the following:

Any visit that has as its principal function the determination that the surgical procedure is needed.

All visits which occur after the need for surgery is determined and are related to or preparatory to the surgery.

Surgery.

All post-surgical care services, which are routinely performed by the surgeon or by members of the same group within the same specialty as the surgeon, including removal of sutures.

• • • 1. The following four exceptions to the global reimbursement policy may warrant additional reimbursement for services provided before surgery:

When a pre-operative visit is the initial visit and prolonged detention or evaluation is necessary to prepare the patient or to establish the need for a particular type of surgery.

When the pre-operative visit is a consultation.

When pre-operative services are provided that are usually not part of the preparation for a particular surgical procedure. For example, bronchoscopy prior to chest surgery.

When a procedure would normally be performed in the office, but circumstances mandate hospitalization.

• • • 1. Additional charges and reimbursement may be warranted for additional services rendered to treat complications, exacerbation, recurrence, or other diseases and injuries. Under such circumstances, additional reimbursement may be requested. 2. An incidental surgery will not be paid under the Workers’ Compensation system. 3. When two or more surgical procedures are performed at the same session by the same individual, the highest weighted surgical code is paid at 100% of the fee listed in Appendix II and additional surgical procedures are paid at 50% of the fee listed in Appendix II. Add-on codes are not subject to discounting.

DURABLE MEDICAL EQUIPMENT, PROSTHETICS, ORTHOTICS, AND SUPPLIES

• • • 1. There is no reimbursement for incidental supplies. Supplies and materials that exceed incidental supplies can be billed separately. Code 99070 can only be billed when there is no specific supply code available. 2. The employer/insurer must pay for all durable medical equipment, prosthetics, orthotics, and supplies that are ordered and approved by the treating health care provider. 3. Fees for durable medical equipment, prosthetics, orthotics, and supplies are as outlined in Appendix II. Invoices need not be requested by the employer/insurer.

SECTION 3. INPATIENT FACILITY FEES

BILLING

Bills for inpatient services must be submitted on a CMS Uniform Billing (UB-04) form. Health care providers are not required to provide the MS-DRG. Inpatient bills without the MS-DRG do not constitute uncoded bills.

ACUTE CARE HOSPITALS

The base rate for inpatient services at acute care hospitals is $11,121.68.

CRITICAL ACCESS HOSPITALS

The base rate for inpatient services at critical access hospitals is $11,788.98.

[Reserved]

PAYMENT CALCULATION

Pursuant to 39-A M.R.S.A. § 209-A, the medical fee schedule for services rendered by health care facilities must reflect the methodology and categories set forth in the federal Centers for Medicare and Medicaid Services severity-diagnosis related group system for inpatient services. Inpatient fees are calculated by multiplying the base rate times the MS- DRG weight. In the event of a dispute regarding the fee listed in Appendix III, the listed relative weight times the base rate controls. For inpatient services that take place during two different calendar years, payment is calculated based on the fees in effect on the discharge date.

OUTLIER PAYMENTS

The threshold for outlier payments is $75,000.00 plus the fee established in Appendix III. If the outlier threshold is met, the outlier payment is the charges above the threshold multiplied by 75%.

IMPLANTABLES

Where an implantable exceeds $10,000.00 in cost, an acute care or critical access hospital may seek additional reimbursement by submitting a copy of the invoice(s) along with the bill. Invoices need not be requested by the employer/insurer. Reimbursement is set at the actual amount paid plus $500.00. Handling and freight charges must be included in the hospital’s invoiced cost and are not to be reimbursed separately. When a hospital seeks additional reimbursement for an implantable, the implantable charge is excluded from any payment calculation.

SERVICES INCLUDED

All services provided during an uninterrupted patient encounter leading to an inpatient admission must be included in the inpatient stay. Services do not include costs related to transportation of a patient to obtain medical care. Costs related to transportation are payable separately.

FACILITY TRANSFERS

The following applies to facility transfers when a patient is transferred for continuation of medical treatment between two hospitals:

A hospital transferring a patient is paid as follows: The MS-DRG reimbursement amount is divided by the number of days duration listed for the DRG; the resultant per diem amount is then multiplied by two for the first day of stay at the transferring hospital; the per diem amount is multiplied by one for each subsequent day of stay at the transferring hospital; and the amounts for each day of stay at the transferring hospital are totaled. If the result is greater than the MS- DRG reimbursement amount, the transferring hospital is paid the MS-DRG reimbursement amount. Associated outliers and add-ons are then added to the payment.

A hospital discharging a patient is paid the full MS-DRG payment plus any appropriate outliers and add-ons.

Facility transfers do not include costs related to transportation of a patient to obtain medical care. Costs related to transportation are payable separately.

OTHER INPATIENT FACILITY FEES

Inpatient services provided by institutional health care providers other than acute care or critical access hospitals must be paid at 75% of the provider’s usual and customary charge.

PROFESSIONAL SERVICES

Individual health care providers who furnish professional services in an inpatient setting must be reimbursed using the fees set forth in Appendix II. The individual health care provider’s charges are excluded from any calculation of inpatient facility fees.

SECTION 4. OUTPATIENT FACILITY FEES

1. BILLING

Bills for hospital outpatient and ambulatory surgical services must be submitted on a UB-04 form. Outpatient hospital facility services performed on the same day for the same patient must be reported on a single UB-04 form.

ACUTE CARE HOSPITALS

The base rate for outpatient services at acute care hospitals is $150.05.

CRITICAL ACCESS HOSPITALS

The base rate for outpatient services at critical access hospitals is $174.00.

AMBULATORY SURGICAL CENTERS

The base rate for surgical services at ambulatory surgical centers is $113.39.

PAYMENT CALCULATION

Pursuant to 39-A M.R.S.A. § 209-A, the medical fee schedule for services rendered by health care facilities must reflect the methodology and categories set forth in the federal Centers for Medicare and Medicaid Services ambulatory payment classification system for outpatient services. Fees for procedure codes are calculated by multiplying the base rate times the APC weight. In the event of a dispute regarding the fee listed in Appendix IV, the listed relative weight times the base rate controls.

• 1. For procedure codes with no CPT^®/HCPCS code or for procedure codes with a status indicator of N, there is no separate payment. 2. If the ACH Fee, CAH Fee or ASC Fee listed in Appendix IV is $0.00 for a procedure code with a status indicator other than N, then payment must be calculated at 75% of the health care provider’s usual and customary charge. 3. When two or more procedure codes with a status indicator of T are billed on the same date of service, the highest weighted code is paid at 100% of the fee listed in Appendix IV and additional T status code procedures are paid at 50% of the fee listed in Appendix IV. Add-on codes are not subject to discounting. 4. If application of this subsection results in a $0.00 fee, payment must be calculated at 75% of the provider’s usual and customary charge.

OUTLIER PAYMENTS

The threshold for outlier payments is $2,500.00 per procedure code plus the fee listed in Appendix IV. If the outlier threshold is met, the outlier payment is the charges above the threshold multiplied by 75%. If a bill has more than one surgical procedure with a status indicator of J, S or T and one or more of those procedures has less than a $1.01 charge, charges for all status J, S and T lines are summed and the charges are then divided across the J, S and T lines in proportion to their APC payment rate. The new charge amount is used in place of the submitted charge amount in the outlier calculation.

IMPLANTABLES

Where an implantable exceeds $250.00 in cost, hospitals or ambulatory surgical centers may seek additional reimbursement (regardless of the status indicator) by submitting a copy of the invoice(s) along with the bill. Invoices need not be requested by the employer/insurer. Reimbursement is set at the actual amount paid plus 20% or the actual amount paid plus $500.00, whichever is less. Handling and freight charges must be included in the facility’s invoiced cost and are not to be reimbursed separately. When a hospital seeks additional reimbursement for an implantable, the implantable charge is excluded from any payment calculation.

SERVICES INCLUDED

Outpatient services include observation in an outpatient status.

TRANSFERS

The following applies to facility transfers when a patient is transferred for continuation of medical treatment between two facilities:

• 1. A hospital or ambulatory surgical center transferring a patient is paid the maximum allowable payment established in this section. 2. A hospital discharging a patient is paid the full MS-DRG payment plus any appropriate outliers and add-ons per section 3. 3. Facility transfers do not include costs related to transportation of a patient to obtain medical care. Costs related to transportation are payable separately.

OTHER OUTPATIENT FACILITY FEES

Outpatient services provided by institutional health care providers other than acute care or critical access hospitals and ambulatory surgical centers (e.g., clinical medical laboratories, free standing outpatient facilities, etc.) must be paid at 75% of the provider’s usual and customary charge.

PROFESSIONAL SERVICES

Individual health care providers who furnish professional services in an outpatient setting must be reimbursed using the maximum fees set forth in Appendix II. The individual health care provider’s charges are excluded from any calculation of outpatient facility fees.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 152(2) and 209A
• EFFECTIVE DATE: January 15, 1993 (EMERGENCY)
• EFFECTIVE DATE OF PERMANENT RULE: April 17, 1993
• REPEALED AND REPLACED: April 4, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• AMENDED: January 1, 1997 - agency asserts § 16 as effective retroactively to April 4, 1994.
• AMENDED: July 1, 1997 - changed address in § 9 (4), replaced Appendix III.
• AMENDED: May 1, 1999 - updated CPT® copyright year, replaced Appendices I, II, & III.
• NON-SUBSTANTIVE CORRECTIONS: October 25, 1999 - minor formatting; date corrections from paper filing in 4.1 - 4.4.
• AMENDED: July 1, 2001
• AMENDED: July 1, 2002 - refiled June 13, 2002 to include some codes missing from the previous
• AMENDED: filing.
• AMENDED: September 24, 2002 - filing 2002-349 affecting § 7 sub-§ 2.
• NON-SUBSTANTIVE CORRECTIONS: January 8, 2003 - character spacing only in §§ 1-19.
• AMENDED: November 5, 2006 - filing 2006-458
• AMENDED: December 11, 2011 - filing 2011 - (repeal Rule and Apps. I-III and replace with new Rule and Apps. I-V)
• AMENDED: October 1, 2015 – filing 2015-173
• AMENDED: September 1, 2018 - filing 2018-122 - 136 AMENDED:
• AMENDED: January 1, 2019 - filing 2018-268
• AMENDED: September 4, 2023 – filing 2023-147
• AMENDED: CHAPTER 5
• AMENDED: APPENDIX I
• AMENDED: PRACTITIONER’S REPORT (FORM M­1)
• AMENDED: M-1 DIAGNOSTIC MEDICAL REPORT MAINE WORKERS' COMPENSATION BOARDEMPLOYEE NAME:EMPLOYEE DOB:EMPLOYEE SSN (last 4 digits only):XXX-XX-EMPLOYEE EMAIL:EMPLOYEE PHONE:EMPLOYEE ADDRESS:EMPLOYER NAME:EMPLOYER ADDRESS:EMPLOYER CONTACT NAME:EMPLOYER CONTACT PHONE:EMPLOYER FAX/EMAIL:DATE OF INJURY:TIME OF INJURY:DID INJURY OCCUR ON EMPLOYER PREMISES? YES NO IF NO, LIST PLACE OF INJURYCAUSE AND NATURE OF THE INJURY/ILLNESS (EXAMPLE – CUT FINGER; THE KNIFE SLIPPED WHILE CUTTING LEMONS.)DATE OF THIS EXAMINATION: INITIAL PROGRESS FINALDIAGNOSIS: IN MY OPINION, THE INJURY DESCRIBED ABOVE IS A CAUSE OF THE DIAGNOSIS? YES NO UNCLEARTREATMENT: IS TREATMENT TO CONTINUE: NO YESIF YES, DATE OF NEXT APPOINTMENT: IF YES, EST. LENGTH OF TREATMENT: TREATMENT PLAN:WORK CAPACITY:REGULAR DUTY NO WORK CAPACITY IF CHECKED, ESTIMATED RETURN TO WORK DATE: MODIFIED WORK (LIST BELOW OR DETAIL ON REVERSE) IF CHECKED, EST. LENGTH OF RESTRICTIONS: BODY REGION(S) THAT RESTRICTIONS APPLY TO: RESTRICTIONS RECOMMENDED: List Below (PLEASE BE AS SPECIFIC AS POSSIBLE)Restrictions are provided at the professional recommendation of the provider; actual functional testing may not have been performed.
• SIGNATURE OF HEALTH CARE PROVIDER: DATE:
• PRINT NAME: PHONE:
• PROVIDER ADDRESS: DUTIES OF HEALTH CARE PROVIDERS
• PROVIDER ADDRESS: Pursuant to 39-A M.R.S.A. § 208(2), duties of health care providers are as follows:
• PROVIDER ADDRESS: Except for claims for medical benefits only, within 5 business days from the completion of a medical examination or within 5 business days from the date notice of injury is given to the employer, whichever is later, the health care provider treating the employee shall forward to the employer and the employee a diagnostic medical report, on forms prescribed by the board, for the injury for which compensation is being claimed. The report must include the employee's work capacity, likely duration of incapacity, return to work suitability and treatment required. The board may assess penalties up to $500 per violation on health care providers who fail to comply with the 5-day requirement of this subsection.If ongoing medical treatment is being provided, every 30 days the employee's health care provider shall forward to the employer and the employee a diagnostic medical report on forms prescribed by the board. An employer may request, at any time, medical information concerning the condition of the employee for which compensation is sought. The health care provider shall respond within 10 business days from receipt of the request.A health care provider shall submit to the employer and the employee a final report of treatment within 5 working days of the termination of treatment, except that only an initial report must be submitted if the provider treated the employee on a single occasion.Upon the request of the employee and in the event that an employee changes or is referred to a different health care provider or facility, any health care provider or facility having medical records regarding the employee, including x rays, shall forward all medical records relating to an injury or disease for which compensation is claimed to the next health care provider. When an employee is scheduled to be treated by a different health care provider or in a different facility, the employee shall request to have the records transferred.A health care provider may not charge the insurer or self-insurer an amount in excess of the fees prescribed in §209-A for the submission of reports prescribed by this section and for the submission of any additional records.An insurer or self-insurer may withhold payment of fees for the submission of any required reports of treatment to any provider who fails to submit the reports on the forms prescribed by the board and within the time limits provided. The insurer or self-insurer is not required to file a notice of controversy under these circumstances, but must notify the provider that payment is being withheld due to the failure to use prescribed forms or to submit the reports in a timely fashion. In the case of dispute, any interested party may petition the board to resolve the dispute.
• PROVIDER ADDRESS: Other reminders:
• PROVIDER ADDRESS: Except for the header information, the remainder of the M-1 form must be completed by the health care provider. This information is vital to the administration of the claim and the employee’s return to work.The M-1 form is not submitted to the board.Pursuant to Board Rules Chapter 5, a health care provider may charge a fee for completing the initial M-1.Except as set forth in § 1.06(5) of this rule, the attachment of narratives is optional; however, an employer/insurer may request, at any time (for a fee), medical information concerning the condition of the employee for which compensation is sought. The health care provider shall respond within 10 business days from receipt of the request. Pursuant to 39-A M.R.S.A. § 208(1) a medical release is not necessary if the information pertains to an injury claimed to be compensable under the Act (whether or not the claim is controverted/denied).
• PROVIDER ADDRESS: M-1 (Effective xx/xx/2023)
• PROVIDER ADDRESS: CHAPTER 5
• PROVIDER ADDRESS: APPENDIX II
• NOTE: FOR A COMPLETE COPY OF THE MEDICAL FEE SCHEDULE,
• NOTE: INCLUDING THE APPENDICES, PLEASE SEE THE SEPARATE PUBLICATION ENTITLED:
• NOTE: "MEDICAL FEE SCHEDULE" LOCATED ON THE BOARD’S
• WEBSITE HERE: http://www.maine.gov/wcb/departments/omrs/medfeesched.html
• WEBSITE HERE: CHAPTER 5
• WEBSITE HERE: APPENDIX III
• NOTE: FOR A COMPLETE COPY OF THE MEDICAL FEE SCHEDULE,
• NOTE: INCLUDING THE APPENDICES, PLEASE SEE THE SEPARATE PUBLICATION ENTITLED:
• NOTE: "MEDICAL FEE SCHEDULE" LOCATED ON THE BOARD’S
• WEBSITE HERE: http://www.maine.gov/wcb/departments/omrs/medfeesched.html
• WEBSITE HERE: CHAPTER 5
• WEBSITE HERE: APPENDIX IV
• NOTE: FOR A COMPLETE COPY OF THE MEDICAL FEE SCHEDULE,
• NOTE: INCLUDING THE APPENDICES, PLEASE SEE THE SEPARATE PUBLICATION ENTITLED:
• NOTE: "MEDICAL FEE SCHEDULE" LOCATED ON THE BOARD’S
• WEBSITE HERE: http://www.maine.gov/wcb/departments/omrs/medfeesched.html
• WEBSITE HERE: CHAPTER 5 APPENDIX V
• WEBSITE HERE: MEDICAL RELEASE FORMS
• WEBSITE HERE: (FORMS WCB­220, WCB­220A, WCB­220B,
• WEBSITE HERE: WCB­220C, AND WCB­ 220R)

Chapter 6 Rehabilitation

Code Me. R. 90-351 Ch. 6 Rehabilitation {#sec-90-351-ch.-6 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 6}

SUBCHAPTER I

PROVIDER PROVISIONS

§ 1. Board-Approved Employment Rehabilitation Providers/Facilities

1. Minimum Qualifications

An employment rehabilitation provider/facility (“provider”) must have at least five years of experience in employment rehabilitation services, and:

A. Certification as a Certified Rehabilitation Counselor (CRC);

B. A Bachelor’s degree in rehabilitation counseling or a closely related field; and/or

C. A Master’s degree in rehabilitation counseling or a closely related field.

2. Application

To become board-approved, a provider must file an application with the Executive Director or the Executive Director’s designee at the Office of Employment Rehabilitation Services. The provider must include the following with the application:

A. An up-to-date résumé;

B. Copies of any active certifications and degrees; and

C. At least one rehabilitation report written by the provider. All confidential information must be redacted, or the entire application will be rejected and returned.

The Executive Director or the Executive Director’s designee may require applicants to provide additional information.

3. Approval

Only the Board of Directors, in its sole discretion, may decide whether to add an applicant to the list of board-approved providers. The decision must be based upon the provider’s application, location, and the Board’s need for additional providers.

4. Appointment

Appointments are for two years. A provider may apply for reappointment at, or near, the end of the appointment.

A. The provider must finish work on any referral that was received prior to expiration of appointment.

B. A provider may be removed from the approved list by the Executive Director or the Executive Director’s designee if the provider does not comply with the requirements of the Workers’ Compensation Act and these rules.

§ 2. Provider Requirements

1. Evaluation and Plan

A. A provider must consider medical evidence and information received with a referral for evaluation.

B. If a provider finds the employee is not suitable for employment rehabilitation services, the provider must clearly articulate the reason(s) in the evaluation.

C. If a provider finds an employee is suitable for employment rehabilitation services, the provider must include in the evaluation, at a minimum, the following:

i. Clearly articulated reasons the provider believes employment rehabilitation services are warranted;

ii. A concise summary of medical records reviewed;

iii. The source, date, and description of the employee’s current work capacity, including restrictions;

iv. Clearly defined vocational goals for the employee; and

v. A detailed employment rehabilitation plan, including a clear plan for workforce re-entry, an outline of expected costs, and the estimated length of the plan.

D. A provider must submit the evaluation of the employee to the Executive Director or the Executive Director’s designee no later than sixty days after the referral from the Board, unless the provider has received an extension of time from the Executive Director or the Executive Director’s designee.

2. Plan Implementation

A. If a plan is implemented, the provider shall submit monthly reports to the Executive Director or the Executive Director’s designee and all interested parties.

B. The provider shall communicate in a timely and responsive manner with the Executive Director or the Executive Director’s designee after selection and during plan implementation.

C. Except in cases that lump sum settle, no later than thirty days after the conclusion of the plan, the provider must submit a final report that indicates whether the employee has returned to work.

i. If the employee has returned to work, the report must indicate where the employee is working, and how the plan resulted in that particular employment.

ii. If the employee does not return to work, the report must indicate why the plan was unsuccessful.

D. The Employment Rehabilitation Fund is not responsible for costs incurred after a case is lump sum settled. If the provider was not notified of the date of the lump sum settlement, then any costs incurred after the settlement date shall be paid by the employer/insurer.

3. Extension and Modification Requests; Provider

The provider may request an extension or modification of a previously approved plan. A request must include the information required in §2(1)(C). The provider must submit a request for an extension of time or modification to the Executive Director or the Executive Director’s designee within 30 days of the date the plan is scheduled to end.

4. Conflict of Interest

The provider must decline any referral to conduct an evaluation on a case for which the provider has a conflict of interest and must notify the Executive Director or the Executive Director’s designee immediately of such conflict.

5. Billing

A. A provider must submit a completed Vendor Activation/Change form or other form approved by the State Controller to receive payment for services provided to the Board.

B. A provider must submit monthly invoices for payment of costs and services. Invoices must include, at a minimum, dates of service, invoice number, and provider name and address.

C. Payment for costs and services included in a plan must be made directly to providers, unless the payor and the provider agree otherwise.

SUBCHAPTER II

APPLICATION AND PLAN

§ 3. Evaluation for Suitability

1. A party seeking rehabilitation services must file an Application for Evaluation for Employment Rehabilitation Services (WCB-320) pursuant to 39-A M.R.S.A. §217(1) with the Executive Director or the Executive Director’s designee.

A. The application must be complete, include copies of relevant medical records, and indicate whether the employee is receiving benefits or has received benefits;

B. The applicant must provide a copy of the application and an attachment index to the parties; and

C. Proposed rehabilitation plans will not be accepted with the application.

2. A party opposing the application shall file an objection no later than 10 business days after receipt of the application.

3. If a timely objection is not received, the Executive Director or the Executive Director’s designee, after review of the application, may refer the employee to an approved provider.

4. If a timely objection is received, the matter will be forwarded to a Hearing Officer or Administrative Law Judge (ALJ) for review.

A. The Hearing Officer or ALJ shall require all interested parties to submit written evidence and arguments pursuant to a schedule established by the Hearing Officer or ALJ. At the discretion of the Hearing Officer or ALJ, a testimonial hearing may be scheduled for the parties to present relevant testimony; and

B. The Hearing Officer or ALJ’s decision will be limited to whether employment rehabilitation services have been voluntarily offered and accepted.

C. The Hearing Officer or ALJ’s decision is final, but without prejudice to a future application, and is not subject to any appeal.

5. The Employment Rehabilitation Fund is responsible for the costs associated with the evaluation.

§ 4. Proposed Employment Rehabilitation Plan

1. Upon receipt of a proposed plan, the Executive Director or the Executive Director’s designee shall forward the plan to all interested parties.

2. No later than 10 business days after receipt of the plan:

A. The Executive Director or the Executive Director’s designee, or an interested party may request clarification of the plan.

i. Requests for clarification must include specific, written questions to the provider, with copies provided to the Executive Director or the Executive Director’s designee, and interested parties; and

ii. The provider shall respond to the request in writing and amend the report as needed, or request a conference, with copies provided to the Executive Director or the Executive Director’s designee, and interested parties, no later than 10 business days after receipt of the request for clarification.

B. The employer/insurer must notify the Board if the employer/insurer intends to voluntarily pay for the plan. If clarification has been requested, the employer/insurer must notify the Board if it intends to voluntarily pay for the plan no later than 10 days after receipt of clarification; and

C. The employer/insurer may file a written objection to the plan. If clarification has been requested, the employer/insurer may object to the plan no later than 10 days after receipt of the clarification.

3. If a timely objection is received, the matter will be forwarded to a Hearing Officer or ALJ for review.

A. The Hearing Officer or ALJ shall require all interested parties to submit written evidence and arguments pursuant to a schedule established by the Hearing Officer or ALJ. At the discretion of the Hearing Officer or ALJ, a testimonial hearing may be scheduled for the parties to present relevant testimony; and

B. The Hearing Officer or ALJ’s decision will be limited to whether the proposed plan is likely to return the injured employee to suitable employment at a reasonable cost.

C. The Hearing Officer or ALJ’s decision is final and not subject to any appeal unless the request to implement the plan is denied.

4. If a timely objection is not received, the Executive Director or the Executive Director’s designee:

A. Shall order implementation of the proposed plan if the employer/insurer has agreed to voluntarily pay for the plan; or

B. May, after review of the plan, order implementation of the proposed plan, with costs to be paid from the Employment Rehabilitation Fund, if the employer/insurer has not agreed to voluntarily pay for the plan.

§ 5. Extension and Modification Requests; Parties

1. If a provider requests an extension or modification of a previously approved plan, the provisions of §4 subsections 1 through 4 apply.

§ 6. Plan Termination

An employment rehabilitation plan may end in the following ways:

1. The provider notifies the parties and the Executive Director or the Executive Director’s designee, through a closure report, that services outlined in the plan have been completed.

2. The duration allowed under §217(5) has expired.

3. A provider’s request for an extension of time is denied by the Executive Director or the Executive Director’s designee, or, if there is an objection to the request, by the Hearing Officer or ALJ.

4. The provider terminates the plan because the applicant is unwilling or unable to continue, or is otherwise uncooperative.

5. The parties enter into an agreement to end the plan.

6. A Hearing Officer or ALJ orders the plan to end.

7. The applicant’s workers’ compensation claim lump sum settles. The Employment Rehabilitation Fund is not responsible for costs incurred after a case is lump sum settled. If the provider was not notified of the date of the lump sum settlement, then any costs incurred after the settlement date shall be paid by the employer/insurer.

§ 7. Recovery of Costs

1. If an injured employee returns to suitable employment after completing a rehabilitation plan to which the employer/insurer did not agree to pay, the Executive Director or the Executive Director’s designee shall order the employer/insurer to pay an amount equal to 180% of the costs paid, except the cost of the evaluation, from the Employment Rehabilitation Fund.

2. The employer/insurer shall, no later than 14 days after receipt of the Board’s order, either pay the amount ordered by the Board or file a petition in the Central Office of the Workers’ Compensation Board objecting to the order.

3. If a timely petition is received, the Board shall refer the matter to mediation.

4. If the matter is not resolved during mediation, the matter will be forwarded to a Hearing Officer or ALJ for hearing.

A. The provisions of Chapter 12, §§ 3- 6, 9, and 12-19 apply to hearings conducted under this section.

B. The employer/insurer may raise all issues and defenses that were, or could have been raised, in any prior proceeding conducted under this chapter or §217.

C. The Hearing Officer or ALJ’s decision is subject to appeal as set forth in 39-A M.R.S.A. §321-B.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: January 15, 1993 (EMERGENCY)
• EFFECTIVE DATE OF PERMANENT RULE: April 7, 1993
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 -- addition of header, changed “Sec.” to §, minor spelling.
• REPEALED AND REPLACED: July 4, 2001
• NON-SUBSTANTIVE CORRECTIONS: January 8, 2003 - character spacing only.
• NON-SUBSTANTIVE CORRECTIONS: March 17, 2004 - apostrophe in title only.
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-172
• AMENDED: September 1, 2018 – filing 2018-127
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 7 Utilization Review, Treatment Guidelines, Permanent Impairment

Code Me. R. 90-351 Ch. 7 Utilization Review, Treatment Guidelines, Permanent Impairment {#sec-90-351-ch.-7 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 7}

This rule establishes the appropriate use of Treatment Guidelines for determining the extent and duration of treatment provided to injured workers. It outlines the process for Board certification of entities to perform utilization review activities, sets forth Utilization Review procedures, and designates the Board’s appeal process. Additionally, this rule includes the requirements for determining permanent impairment.

§ 1. Certification

1. An entity may conduct utilization review only if that entity is certified by the Board.

2. An Insurer, Self‑Insurer or Group Self‑Insurer which contracts with another entity to perform utilization review activities, maintains full responsibility for compliance with Maine Workers’ Compensation law and Board Rules.

3. To become certified by the Board, the entity shall show proof of one the following by attaching the appropriate documentation:

A. Unconditional Certification: Accreditation by the Utilization Review Accreditation Commission (URAC) under URAC’s National Workers’ Compensation Utilization Management Standards by providing a copy of the Certificate of Accreditation and any other documents/information as requested by the Board; or

B. Conditional Certification: Verification that an Application for Accreditation under URAC’s National Workers’ Compensation Utilization Management Standards has been submitted to URAC by providing a copy of the URAC confirmation letter indicating the application is under review and any other documents/information as requested by the Board.

(1) The entity requesting Board certification shall advise the Board if the URAC application is withdrawn or denied. Withdrawal or denial of the URAC application shall result in immediate revocation of Board certification.

(2) Within six months of applying for a Conditional Certification, an entity must submit proof of accreditation as outlined in A above and achieve Unconditional Certification. If proof of accreditation is not provided, immediate revocation of Board certification will result. Entities may re‑apply for Board certification as outlined in this Chapter at any time.

4. An Unconditional Board certification shall expire for entities upon the date of their URAC certification expiration date unless proof that URAC certification has been renewed and the new expiration date is provided.

5. The Board may at any time revoke certification to perform Utilization Review upon findings that an entity is not in compliance with any portion of 39‑A M.R.S.A. §210 or Workers’ Compensation Board Rule Chapter 7.

6. The Board may at any time request case records for purposes of investigating Insurers/Utilization Review Agents compliance with 39‑A M.R.S.A. §210 and Board Rules.

7. The Board shall make available the list of entities certified by the Board to perform utilization review activities.

§ 2. [Reserved]

§ 3. Utilization Review; Procedures

1. When an employer/insurer requests Utilization Review, the employer/ insurer must notify the injured employee that it intends to initiate Utilization Review.

2. Notice to the employee must, at a minimum, contain:

A. An explanation of the reason(s) Utilization Review is being requested;

B. Identification of the Utilization Review Agent that has been selected; and

C. Notice that the injured employee can send a letter to the Utilization Review Agent, within 10 days, explaining why the contested treatment is appropriate.

3. If the employer/insurer fails to send the required notice to the injured worker, the employer/insurer will be precluded from entering the Utilization Review determination into evidence in any subsequent Board proceeding.

4. If the Insurer/Utilization Review Agent makes a request for records, the health care provider may insist the request be submitted in writing. The provider shall in turn provide the requested information within ten (10) business days. A fee for medical records or narratives shall be paid in accordance with Workers’ Compensation Board Rule Chapter 5.

5. After each level of Utilization Review, the Utilization Review Agent shall provide notice to the injured employee, the affected health care provider(s), and the employer/insurer of the Utilization Review Agent’s determination. This notice must include an explanation of each party’s appeal rights.

6. Within one business day of the completion of the final level of Utilization Review, the Utilization Review Agent shall send a report to the injured employee, the affected health care provider, and the employer/insurer. This report must include, at a minimum, the Utilization Review Agent’s determination, and the reasons therefore.

7. If the Insurer/Utilization Review Agent determines that the provider of record has made any excessive charges or required unjustified treatment, hospitalization or visits, the health facility or health care provider may not receive payment for those health care services from the Insurer and is liable to return to the Insurer any such fees or charges already collected.

8. Except as ordered pursuant to 39‑A M.R.S.A. §206(2)(B), the injured employee is not liable for any portion of the cost of any provided medical or health care services.

§ 4. Board Appeals

1. Once a health care provider or an employee has received final notification that health care services will not be certified by the UR Agent, the health care provider, employee or their representative may initiate a Board Appeal by submitting a copy of the notification not to certify to the Board. This submission shall be referred to the appropriate Claims Resolution Specialist. If the Claims Resolution Specialist is unable to informally resolve the dispute, it shall be scheduled for mediation.

2. Once a provider receives notification that they are liable for the return of any fees, the provider may submit a copy of the notification to the Board. This submission shall be referred to the appropriate Claims Resolution Specialist. If the Claims Resolution Specialist is unable to informally resolve the dispute, it shall be scheduled for mediation.

3. If the mediator is unable to informally resolve the dispute, the matter shall, upon appropriate petition, be scheduled for a formal hearing.

4. Except as provided in Section 3.3, a Utilization Review report is admissible as evidence of the appropriateness in terms of both the level and quality of health care and health care services provided an injured employee, but is not binding on these issues.

§ 5. Definitions

1. Board Appeal: If a health care provider or injured employee disagrees with the determination rendered in the utilization review process, that party may appeal to the Board by submitting a copy of the notification not to certify.

2. Conditional Certification: Certification by the Board of an entity to perform utilization review activities that requires proof of application for accreditation with the Utilization Review Accreditation Commission (URAC) under URAC’s National Workers’ Compensation Utilization Management Standards.

3. Insurer: An insurance carrier, self‑insurer or group self‑insurer.

4. Treatment Guidelines: Standards of care and clinical pathways approved by the Workers’ Compensation Board.

5. Unconditional Certification: Certification by the Board of an entity to perform utilization review activities that requires proof of accreditation by the Utilization Review Accreditation Commission (URAC) under URAC’s National Workers’ Compensation Utilization Management Standards.

6. Utilization Review (UR): The initial prospective, concurrent or retrospective evaluation of the appropriateness in terms of both the level and the quality of health care and health services provided an injured employee, based on the appropriate Maine Workers’ Compensation Board Treatment Guidelines.

7. Utilization Review Accreditation Commission (URAC): a non‑profit organization established to encourage efficient and effective utilization management processes and to develop and provide a method of evaluation and accreditation of utilization management programs.

8. Utilization Review Agent: Any person or entity, including insurance carriers, self‑insurers, and group self‑insurers, certified by the Board, to perform utilization review activities.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: April 2, 1997
• AMENDED: July 28, 1998 - Guidelines appended
• NON-SUBSTANTIVE CORRECTIONS: August 18, 1998 - added missing chart page at end
• AMENDED: February 23, 1999
• NON-SUBSTANTIVE CORRECTIONS: January 8, 2003 - character spacing, fonts only
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-173
• REPEALED AND REPLACED: May 23, 2016 – corrected (attachments removed)
• AMENDED: September 1, 2018 – filing 2018-128

Chapter 8 Procedures for Payment

Code Me. R. 90-351 Ch. 8 Procedures for Payment {#sec-90-351-ch.-8 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 8}

Summary: This rule clarifies the procedures for payment of compensation required by the Act.

§ 1. The initial Statement of Compensation Paid, Interim Report (WCB-11) shall be filed with the Board within 195 days of the date of an injury where indemnity payments have been made, and as a Final Report when no further payments are anticipated. Subsequent Statements of Compensation Paid (WCB-11) shall thereafter be filed with the Board within fifteen (15) days of each anniversary date of an injury when payments of any type have been made since the previous Statement of Compensation Paid (WCB-11). The Statement of Compensation Paid (WCB-11) is required when only medical payments are made subsequent to the filing of a Final Report. There is no requirement to file the Statement of Compensation Paid on claims when payments are made for medical only services and no indemnity was ever paid on the claim.

§ 2. In cases in which the employee’s claim is only for medical expenses, the employer may file a single Notice of Controversy for purposes of contesting all present and future claims for medical expenses accrued until the Board enters an order resolving the Notice of Controversy. A copy of this Notice of Controversy must be sent to health care provider if the reasonableness of the health care provider’s bill is being contested. Except as provided in W.C.B. Rule Ch. 5, the employer is not required to file a Notice of Controversy contesting a claim for medical expenses if there is already a pending Notice of Controversy indicating a dispute on the employee’s claim for compensation for the same date of injury.

§ 3. When an employee is paid 1/2 day or more wages on the date of injury, the date of injury will not be considered a day of incapacity.

§ 4. Incapacity compensation benefit payments shall be paid weekly and directly to the employee entitled to that compensation at that employee’s last known mailing address, or at any place that employee designates.

§ 5. If the employee’s date of injury is on or after January 1, 2013, the employee’s incapacity benefits must be calculated by multiplying the employee’s gross average weekly wage by two (2) and then dividing that amount by three (3).

§ 6. The employer is obligated to make all payments of benefits ordered by an Administrative Law Judge of the Workers’ Compensation Board pending the issuance of further findings of fact and conclusions of law requested pursuant to 39‑A M.R.S.A. §318 and pending any appellate process.

§ 7. Interest on awards of compensation must be calculated by the employer and paid to the employee pursuant to 39‑A M.R.S.A. §205(6). Interest must be paid to the employee even if there is no express language in the decision of the mediator or Administrative Law Judge ordering such payment. Interest must be calculated using the formulae and table contained in Appendix I.

§ 8. A. If the injured employee’s date of injury is prior to January 1, 2013, partial benefits are calculated at a rate of 80% of the difference between the employee’s after-tax average weekly wage before the injury and the after-tax average weekly wage that the employee is able to earn after the injury, but not more than the maximum benefit under section 211. To calculate partial benefits:

1. Determine the 80% rate for the employee’s pre-injury average weekly wage using the Weekly Benefit Table in effect at the time of the employee’s injury.

2. Determine the 80% rate for the employee’s post-injury weekly earnings using the Benefit Table used in step 1 above.

3. The difference between the post-injury rate and the pre-injury rate is the partial benefit amount.

B. If the injured employee’s date of injury is on or after January 1, 2013, partial benefits are equal to 2/3 of the difference due to the injury, between the employee’s average gross weekly wages, earnings or salary before the injury and the average gross weekly wages, earnings or salary that the employee is able to earn after the injury, but not more than the maximum benefits under section 211. To calculate partial benefits:

Determine 2/3 of the employee’s gross average weekly wages, earnings or salary in effect at the time of the employee’s injury.

Determine 2/3 of the employee’s post-injury weekly earnings.

The difference between the post-injury rate and the pre-injury rate is the partial benefit amount.

§ 9. For dates of injury prior to January 1, 2013, form WCB‑2A shall be completed based on the employee’s federal tax return filed for the calendar year prior to the employee’s date of injury, unless the employee demonstrates a change in marital status or number of dependents since the calendar year for which the tax return was filed.

§ 10. If an employee is released to return to work without restrictions or limitations due to the injury before exhausting the seven day waiting period, a Notice of Controversy is not required to be filed regarding incapacity benefits unless the employee makes a specific claim for benefits.

§ 11. Reductions or discontinuances pursuant to 39-A M.R.S.A. §205(9)(A) are governed by this section.

1. Except as provided in paragraph (2) of this sub-section, reductions and discontinuances pursuant to 39-A M.R.S.A. §205(9)(A) must be based on the employee’s actual earnings.

2. An employer may discontinue benefits regardless of the employee’s actual earnings if:

A. The employee returns to work without restrictions or limitations, due to the injury for which benefits are being paid, according to the employee’s treating health care providers; and

B. There are no conflicting medical records with respect to the lack of restrictions or limitations due to the injury for which benefits are being paid.

C. For purposes of this subsection, return to work includes periods where:

(1) The employee is released to return to work without restrictions or limitations due to the injury for which benefits are being paid by the employee’s treating health care providers;

(2) There are no conflicting medical records with respect to the lack of restrictions or limitations due to the injury for which benefits are being paid; and

(3) The employee, instead of returning to work, receives vacation pay, “paid time off” or its equivalent, or holiday pay instead of regular wages.

3. The Discontinuance or Modification of Compensation (WCB‑4) shall be filed by the employer or insurer within 14 days after the employee returns to work or receives an increase in pay discontinuance or reduction pursuant to 39‑A M.R.S.A. §205(9)(A).

§ 12. When an employer or insurer makes payments of compensation pursuant to an agreement by the parties or a decision of the Board, the employer or insurer shall document such payments by completing the appropriate sections of Form WCB‑3, Form WCB‑4, and/or Form WCB‑11.

§ 13. If the employer or insurer disputes a medical bill on a claim for which a First Report was never filed, the employer or insurer shall file a First Report with the Notice of Controversy as set forth in W.C.B. Rule Ch. 3, §4.

§ 14. All parties shall utilize forms and instructions prescribed by the Board.

§ 15. Pursuant to P.L. 2009, c. 280, reductions and/or discontinuances based on earnings when an employee returns to work with a different employer and an employer/insurer has filed a 21-day certificate of discontinuance or a Petition for Review are governed by this section.

1. Actual documented earnings must be provided by the employee or the employee’s representative to the employer/insurer within 7 days of the employee’s return to work as required by 39-A M.R.S.A. §308(1). Actual documented earnings must be received by the employer/insurer from the employee or the employee’s representative in writing. The documentation may be pay stubs or other suitable written evidence to substantiate the discontinuance or reduction.

2. Reduction or discontinuance pursuant to §205(9)(B)(1)

A. When benefits are discontinued or reduced pursuant to §205(9)(B)(1), actual documented earnings means the written documentation relied upon by the employer/insurer to justify the reduction or discontinuance indicated in the 21‑day certificate of discontinuance.

B. The employer/insurer must include, with the 21-day certificate of discontinuance, form WCB-231A (Employee’s Return to Work Report) along with the following statement:

NOTICE

Your weekly benefits will be reduced or discontinued each week to the amount shown on the 21-day certificate of discontinuance. You are required to provide documentation to the insurer of your weekly earnings for the 21-day period by completing the enclosed “Employee’s Return to Work Report.” If you fail to provide documentation, the reduction or discontinuance shown on the 21-day certificate of discontinuance shall remain in effect and your benefits will not be adjusted.

C. Within 14 calendar days after the expiration of the 21-day period, or within 14 days after receipt of documentation from the employee if the documentation is received after the expiration of the 21-day period, the employer/insurer shall file with the Board the documentation it has received along with an amended form WCB-8 which shall also include any necessary adjustments based on the documentation received by the employer/insurer.

3. Reduction or discontinuance pursuant to §205(9)(B)(2)

A. When benefits are discontinued or reduced pursuant to §205(9)(B)(2), actual documented earnings means the written documentation relied upon by the employer/insurer to justify the reduction or discontinuance requested in the Petition for Review.

B. In addition to the Petition for Review, the employer/insurer shall send to the employee form WCB-231A (Employee’s Return to Work Report) along with the following statement:

NOTICE

Your weekly benefits will be reduced or discontinued each week to the amount shown on the Petition for Review. You are required to provide documentation to the insurer of your weekly earnings while the Petition for Review is pending before the Workers’ Compensation Board by completing the enclosed form “Employee’s Return to Work Report.” If you fail to provide documentation, the reduction or discontinuance shown on the Petition for Review shall remain in effect and your benefits will not be adjusted.

C. The employer/insurer shall file the actual documented earnings referenced in sub‑§(1) of this section and form WCB-4 showing the adjustment that was made with the Board at the same time it files the Petition for Review. Thereafter, the employer/insurer shall, within 30 days after receipt of actual documented earnings, file with the Board the actual documentation it has received along with form WCB-4 showing the adjustment that was made.

§ 16. When an employee loses a day or more from work that does not result in the filing of a Memorandum of Payment or a Notice of Controversy, the employer/insurer shall notify the Board of the employee’s return to work date, if the date was not included on the original First Report, by filing an 02 First Report using the IAIABC Claims Release 3 format. The employee’s return to work date shall be filed within seven (7) days of the employee’s return to work.

§ 17. The employer/insurer shall send the Employee’s Return to Work Report (WCB‑231) to the employee when filing the Memorandum of Payment pursuant to 39‑A M.R.S.A. §205(7).

§ 18. 1. The Consent Between Employer and Employee (WCB‑4A) may be used when the parties have agreed to a voluntary payment of a retroactive closed-end period of incapacity, or a modification, reduction or discontinuance in ongoing weekly incapacity benefits. The Consent Between Employer and Employee (WCB‑4A) may be used when the parties agree to discontinue or reduce benefits during the 21-day period following the filing of a Certificate of Discontinuance or Reduction of Compensation (WCB-8). The Consent Between Employer and Employee (WCB‑4A) cannot be used to reduce or discontinue benefits on a date that is subsequent to the date the parties sign the WCB-4A.

2. The WCB-4A shall be signed by the employee or a representative of the employee, and a representative of the insurer.

3. The parties may agree to the pre-injury average weekly wage or may agree to pay benefits based upon a provisional wage and reserve the issue of the pre-injury average weekly wage for later determination by the Board. In either event, the form shall also indicate whether the employee is receiving 100% of the benefits at issue for the designated period. If the employee is receiving less than 100% of the benefits at issue for the designated period, the form shall indicate the percentage of benefits that the employee is receiving.

4. The employer or insurance carrier shall make compensation payments within 10 calendar days after the WCB‑4A is signed by the parties.

5. Signing the WCB-4A does not by itself create a compensation payment scheme.

6. The WCB‑4A shall be distributed as follows: (1) Workers’ Compensation Board; (2) Employee; (3) Insurer; (4) Employer.

7. Upon request by any of the parties, the Consent Between Employer and Employee, WCB‑4A, shall be reviewed within 14 calendar days by an agent at the Board’s regional offices in order to answer any relevant questions prior to the employer and employee signing this form.

8. The Consent Between Employer and Employee, WCB‑4A, shall not be used when an ongoing order, award of compensation, or a compensation payment scheme is entered under §205(9)(B)(2).

9. The Payments Division will review the filed Consent Between Employer and Employee, WCB‑4A, in order to verify that the agreed upon benefits were correctly determined.

10. The Deputy Director of Benefits Administration will refer abuses of the Consent Between Employer and Employee, WCB‑4A, to the Workers’ Compensation Abuse Investigation Unit.

CHAPTER 8, SECTION 7

APPENDIX I

The following formulae only apply to continuous compensation payments where the weekly benefit amount remains constant. If the weekly benefit amount changes, and/or there is a break in the period of compensation, the formulae must be applied to each continuous period of equal payments. The interest due from each period must then be added to determine the total interest due.

FORMULAE

(A) To calculate interest when payment is made during the period of entitlement to benefits, the following formula shall be used:

(Weekly compensation x weeks of benefits) x Factor from Table A = Interest due.

For example: A decree dated September 4, 1998 awards compensation at a rate of $300.00 per week from February 2, 1997 to the present and continuing. On September 5, 1998, compensation is paid for incapacity from February 2, 1997 through September 5, 1998. Calculate interest due as follows:

($300.00 x 83) x 0.079084 = $1,969.19

(B) To calculate interest due between the date last payment was due, and the date of payment, the following formula shall be used:

First, determine the amount of interest due for the period of incapacity using formula (A) above. Then apply the following formula:

Amount of interest due between date last payment due and date of payment =

((Weekly compensation x weeks of benefits) + Interest due) x days x 10%

365

The total amount of interest due will equal the sum of formula (A) and formula (B).

For example: A decree dated September 4, 1998 awards compensation at a rate of $300.00 per week from February 2, 1997 through July 26, 1997. On September 9, 1998, compensation is paid for incapacity from February 2, 1997 through July 26, 1997. Calculate interest as follows:

First calculate the interest due for the period of incapacity:

($300.00 x 25) x 0.022328 = $167.46 (The interest due through July 26, 1997.)

Then, calculate the interest due between the date the last payment was due and the payment date:

(($300.00 x 25) + $167.46) x 405 x 10%

365 = $850.77 (The interest due from August 1, 1997 through September 9, 1998)

Last, calculate the total amount of interest due:

$167.46 + $850.77 = $1,018.23

TABLE A

WKS

Factor

WKS

Factor

WKS

Factor

1

0.000000

53

0.049221

105

0.101698

2

0.000917

54

0.050199

106

0.102741

3

0.001836

55

0.051178

107

0.103785

4

0.002755

56

0.052158

108

0.104830

5

0.003676

57

0.053139

109

0.105877

6

0.004598

58

0.054122

110

0.106924

7

0.005521

59

0.055106

111

0.107974

8

0.006445

60

0.056091

112

0.109024

9

0.007370

61

0.057077

113

0.110076

10

0.008296

62

0.058064

114

0.111129

11

0.009224

63

0.059053

115

0.112183

12

0.010152

64

0.060043

116

0.113239

13

0.011082

65

0.061034

117

0.114296

14

0.012013

66

0.062026

118

0.115354

15

0.012945

67

0.063020

119

0.116414

16

0.013878

68

0.064014

120

0.117475

17

0.014812

69

0.065010

121

0.118537

18

0.015747

70

0.066007

122

0.119601

19

0.016684

71

0.067006

123

0.120666

20

0.017622

72

0.068006

124

0.121732

21

0.018561

73

0.069006

125

0.122800

22

0.019501

74

0.070009

126

0.123868

23

0.020442

75

0.071012

127

0.124939

24

0.021384

76

0.072017

128

0.126010

25

0.022328

77

0.073022

129

0.127083

26

0.023272

78

0.074030

130

0.128157

27

0.024218

79

0.075038

131

0.129233

28

0.025165

80

0.076048

132

0.130310

29

0.026113

81

0.077058

133

0.131388

30

0.027062

82

0.078070

134

0.132468

31

0.028013

83

0.079084

135

0.133549

32

0.028965

84

0.080098

136

0.134631

33

0.029917

85

0.081114

137

0.135715

34

0.030871

86

0.082131

138

0.136800

35

0.031826

87

0.083150

139

0.137886

36

0.032783

88

0.084169

140

0.138974

37

0.033740

89

0.085190

141

0.140063

38

0.034699

90

0.086213

142

0.141153

39

0.035659

91

0.087236

143

0.142245

40

0.036620

92

0.088261

144

0.143338

41

0.037582

93

0.089287

145

0.144433

42

0.038545

94

0.090314

146

0.145529

43

0.039510

95

0.091342

147

0.146626

44

0.040476

96

0.092372

148

0.147725

45

0.041443

97

0.093403

149

0.148825

46

0.042411

98

0.094436

150

0.149926

47

0.043380

99

0.095469

151

0.151029

48

0.044351

100

0.096504

152

0.152133

49

0.045322

101

0.097541

153

0.153238

50

0.046295

102

0.098578

154

0.154345

51

0.047269

103

0.099617

155

0.155454

52

0.048245

104

0.100657

156

0.156563

TABLE A

WKS

Factor

WKS

Factor

WKS

Factor

157

0.157674

209

0.217412

261

0.281194

158

0.158787

210

0.218599

262

0.282462

159

0.159901

211

0.219788

263

0.283732

160

0.161016

212

0.220979

264

0.285004

161

0.162132

213

0.222171

265

0.286277

162

0.163251

214

0.223364

266

0.287551

163

0.164370

215

0.224559

267

0.288828

164

0.165491

216

0.225756

268

0.290106

165

0.166613

217

0.226954

269

0.291385

166

0.167737

218

0.228153

270

0.292666

167

0.168862

219

0.229354

271

0.293949

168

0.169988

220

0.230557

272

0.295233

169

0.171116

221

0.231761

273

0.296520

170

0.172245

222

0.232967

274

0.297807

171

0.173376

223

0.234174

275

0.299097

172

0.174508

224

0.235382

276

0.300388

173

0.175642

225

0.236593

277

0.301680

174

0.176777

226

0.237804

278

0.302974

175

0.177913

227

0.239018

279

0.304270

176

0.179051

228

0.240232

280

0.305568

177

0.180190

229

0.241449

281

0.306867

178

0.181331

230

0.242666

282

0.308168

179

0.182473

231

0.243886

283

0.309470

180

0.183616

232

0.245107

284

0.310775

181

0.184761

233

0.246329

285

0.312080

182

0.185908

234

0.247553

286

0.313388

183

0.187056

235

0.248779

287

0.314697

184

0.188205

236

0.250006

288

0.316008

185

0.189356

237

0.251235

289

0.317320

186

0.190508

238

0.252465

290

0.318635

187

0.191662

239

0.253697

291

0.319950

188

0.192817

240

0.254930

292

0.321268

189

0.193973

241

0.256165

293

0.322587

190

0.195131

242

0.257401

294

0.323908

191

0.196291

243

0.258639

295

0.325231

192

0.197451

244

0.259879

296

0.326555

193

0.198614

245

0.261120

297

0.327881

194

0.199778

246

0.262363

298

0.329208

195

0.200943

247

0.263607

299

0.330538

196

0.202110

248

0.264853

300

0.331869

197

0.203278

249

0.266101

301

0.333202

198

0.204448

250

0.267350

302

0.334536

199

0.205619

251

0.268600

303

0.335872

200

0.206791

252

0.269852

304

0.337210

201

0.207966

253

0.271106

305

0.338550

202

0.209141

254

0.272362

306

0.339891

203

0.210318

255

0.273619

307

0.341234

204

0.211497

256

0.274877

308

0.342578

205

0.212677

257

0.276137

309

0.343925

206

0.213858

258

0.277399

310

0.345273

207

0.215041

259

0.278663

311

0.346623

208

0.216226

260

0.279928

312

0.347974

History

• STATUTORY AUTHORITY: 39-A MRS §101 et seq.
• EFFECTIVE DATE: January 15, 1993 (Emergency)
• EFFECTIVE DATE OF PERMANENT RULE: April 7, 1993
• AMENDED: March 1, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 - header added, minor formatting.
• AMENDED: April 2, 1997 - Section 18
• AMENDED: May 23, 1999 - Section 7 (Calculation of Interest), Appendix I, and Table A added.
• NON-SUBSTANTIVE CORRECTIONS: October 26, 1999 - minor formatting
• AMENDED: March 4, 2001 - Sections 1, 8, 16
• AMENDED: December 27, 2010 - Sections 11, 15 & 18; filing 2010-640
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-174
• AMENDED: September 1, 2018 – filing 2018-129
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 9 Procedures for Coordination of Benefits

Code Me. R. 90-351 Ch. 9 Procedure for Coordination of Benefits {#sec-90-351-ch.-9 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 9}

This rule describes the procedures to be followed in calculating and performing the coordination of benefits required under 39-A M.R.S.A. §221.

§ 1. Any reduction in weekly workers’ compensation benefits which results from the coordination of benefits described in Title 39-A shall be indicated on the Discontinuance or Modification of Compensation (WCB-4). The employer or insurer shall indicate which type of benefit is the subject of coordination and the mathematical calculations used in determining the new level of weekly compensation benefits.

§ 2. Coordination of Benefits Pursuant to §221(3)

1. Calculation of reduction to employee’s weekly benefits

Except as provided in paragraph (B) of this section, when an employee receives payments pursuant to a plan or policy subject to §221(1)(B) or (C), the amount of the reduction to the employee’s weekly benefits is calculated by converting the weekly payment into an after-tax amount using the tables of average weekly wage and 80% of the after tax average weekly wage published by the Board pursuant to 39-A M.R.S. §102(1) and then multiplying the applicable 80% of the after-tax amount by 1.25.

When an employee receives a benefit that is intended to be paid over the employee’s lifetime in a lump sum or a periodic payment for a permanent or lifetime condition paid over a period less than the employee’s life expectancy pursuant to a plan or policy subject to §221(1)(B) or (C), the amount of the reduction to the employee’s weekly benefits is calculated by:

(1) Determining the employee’s life expectancy based on standard actuarial tables in weeks;

(2) Determining a weekly benefit amount by dividing the lump sum amount by the number of weeks of life expectancy determined pursuant to sub-section B paragraph (1) of this section;

(3) Converting the weekly benefit amount determined pursuant to sub-section B paragraph (2) of this section into an after-tax amount using the tables of average weekly wage and 80% of the after tax average weekly wage published by the Board pursuant to 39-A M.R.S. §102(1); and,

(4) Multiplying the applicable 80% of the after-tax amount by 1.25.

This regulation applies retroactively to all pending cases including those on appeal.

2. Coordination of benefits paid pursuant to “paid time off” or equivalent plans

A. Paid time off or equivalent plan means an employer-paid benefit that covers both sick leave and vacation leave.

B. If a paid time off or equivalent plan designates a specific portion of the benefit as sick leave, an employer/insurer may reduce benefits, as set forth in 39-A M.R.S.A. §221(3)(A)(2).

C. If a paid time off or equivalent plan does not designate a specific portion of the benefit as sick leave, an employer/insurer may reduce benefits, as set forth in 39-A M.R.S.A. §221(3)(A)(2), when the benefit taken is used for the equivalent of sick leave rather than vacation leave.

§ 3. Notification and Release of Social Security Benefit Information Pursuant to §221(4)

(1) When an employee is receiving either weekly or lump sum payments pursuant to §212 or §213 the employer/insurer shall mail a notice, in a form prescribed by the Board, to the employee of possible eligibility for Social Security benefits and the requirements for establishing proof of those benefits.

(2) Notice must be promptly mailed to the employee after the date the employee reaches his or her full retirement age as defined by the Social Security Administration.

(3) The notice must be mailed to the Workers’ Compensation Board at the same time it is sent to the employee.

The notice shall include the following language:

NOTICE

(1) Because you have reached your full retirement age as defined by the Social Security Administration, you must, within 30 days after receipt of this notice:

Apply for Social Security old-age insurance benefits. (You cannot be compelled to apply for early federal old-age insurance benefits.)

• You may apply at a local Social Security office; or
• Online at: http://www.ssa.gov/pgm/retirement.htm .
• To understand your rights and responsibilities with respect to your application for and receipt of Social Security benefits, and the Workers’ Compensation Act, you should consider seeking advice from an attorney or other expert in Social Security and Workers’ Compensation laws.

You must provide proof to us that you have applied for benefits.

• Proof of application must be mailed to us within 14 days after you submit your application to the Social Security Administration at the following address:

[INSERT EMPLOYER/INSURER ADDRESS]

• Proof of application includes:

A letter from you, or your attorney or advocate establishing you filed the required application;

You must complete, sign and return the enclosed authorization form, approved by the Social Security Administration, to release benefit information. Please note, your employer/insurer can only use this form to determine if you are entitled to receive Social Security benefits and, if so, the amount of the benefit you are receiving and the period of time you are or have been receiving Social Security benefits.

(2) Pursuant to 39-A M.R.S.A. §221 your benefits will be reduced by up to 50% of the amount of old-age insurance benefits your employer is entitled to offset and you receive under the Social Security Act.

(3) If you fail to provide proof of application or sign and return the enclosed form, we may, with the approval of the Workers’ Compensation Board, discontinue your compensation benefits until the proof of application and/or the authority for release of information is provided. Compensation benefits withheld must be reimbursed to you when the required proof of application, or the authority for release of information, or both, has been provided.

If a new authority for release of benefit information is required, the employer/insurer must send the following notice along with the appropriate Social Security form.

NOTICE

The enclosed release previously signed by you has expired. Pursuant to 39-A M.R.S.A. §221(6), you are required to sign and return the enclosed release within 30 days after receipt of this notice.

If you fail to provide proof of application or sign and return the enclosed form we may, with the approval of the Workers’ Compensation Board, discontinue your compensation benefits until the proof of application and/or the authority for release of information is provided. Compensation benefits withheld must be reimbursed to you when the required proof of application, or the authority for release of information, or both, has been provided.

D. The employer/insurer may notify an employee receiving incapacity benefits, who is near the age of 62, of his or her obligation to inform the employer/insurer of application for and receipt of old age Social Security benefits, the date those benefits begin and the amount of those benefits, so that the appropriate offset can be taken.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: January 15, 1993 (Emergency)
• EFFECTIVE DATE OF PERMANENT RULE: April 7, 1993
• AMENDED: March 1, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 -- header added, minor formatting
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2003 - character spacing only
• AMENDED: September 16, 2009 – Section 2 added, filing 2009-451
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-175
• AMENDED: September 1, 2018 – filing 2018-130

Chapter 10 Attorney's Fees

Code Me. R. 90-351 Ch. 10 Attorney’s Fees {#sec-90-351-ch.-10 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 10}

§ 1. Attorney’s Fees

1. An attorney may charge an employee a fee for services, capped at 30% of benefits accrued.

2. If an attorney wishes to collect more than 30% of benefits accrued, he or she may do so only with pre-approval of a hearing officer.

3. “Benefits accrued” includes benefits past due, benefits paid without prejudice acquired and/or retained through the services of an attorney and unpaid medical bills. In no case, shall the employer/insurer be required to pay an amount for medical services in excess of the medical fee schedule regulations or the provider's charges, whichever is less.

4. If a case is in litigation and is lump sum settled prior to decree, attorney’s fees may be collected from the employee as follows, subject to the approval of the hearing officer: the attorney’s fee capped at 30% of benefits accrued in addition to the designated percentage set forth in 39-A M.R.S.A. §325(4)(B).

§ 2. Disputed Fees

1. If attorney’s fees are charged in accordance with 39-A M.R.S.A. §325 and the provisions of this rule and there is no dispute with respect to payment of the fee, then board approval of the fee is not necessary.

2. If a dispute arises between an employee and his or her attorney regarding the payment of attorney’s fees, either the employee or his or her counsel may file a motion with a hearing officer. The motion must be served on the opposing party and must be filed in the appropriate regional office. Within 30 days following the receipt of this motion, the opposing party shall submit a written statement of objections to the fee for which payment is sought. In issuing an order, the hearing officer shall consider the following factors: (1) the complexity of the issues presented; (2) the novelty of the questions raised; (3) the quality of the representation; (4) the time and labor required; (5) the skills and experience of the attorney; and (6) the benefits to the employee.

3. Hearings will be held on fee motions only at the discretion of the hearing officer.

§ 3. Multiple Dates of Injury

1. If there are multiple dates of injury and at least one date of injury pre-dates and at least one date of injury post-dates January 1, 1993, the provisions of this subsection apply. Attorney’s fees must be allocated in proportion to one or more of the following factors: (1) the role each date of injury played in the litigation; (2) the extent to which each party precipitated the need for litigation; and (3) the ultimate success of the petition(s) alleging a particular date of injury. This analysis must be performed on a case-by-case basis.

2. Once the allocation has been made, the employer/insurer must pay attorney’s fees for any injuries that pre-date January 1, 1993 in accordance with 39 M.R.S.A. §110. For injuries that post-date January 1, 1993, the attorney may charge the employee a fee in accordance with section 1 of this rule.

3. Disputes regarding the appropriate allocation of fees must be resolved by motion pursuant to subsection 2 of this rule.

§ 4. Other Matters

1. The employee may designate his or her attorney’s office as the location where checks are to be sent in accordance with 39-A M.R.S.A. §205(1).

EFFECTIVE DATE:

April 14, 1998

NON-SUBSTANTIVE CORRECTIONS:

January 9, 2003 - character spacing only

REPEALED AND REPLACED:

August 18, 2014 – filing 2014-176

90-351 Chapter 10 page 2

Chapter 11 Mediation

Code Me. R. 90-351 Ch. 11 Mediation {#sec-90-351-ch.-11 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 11}

This chapter sets forth the procedure of the parties in preparation for and attendance at mediation and protects the confidentiality of information discussed at mediation.

§ 1.

Assignment of Cases - Except as provided in 39-A M.R.S.A. §205(9)(D), upon receipt of a Notice of Controversy which was unable to be resolved by the Office of Troubleshooters, or other indication of controversy, the Board shall refer the matter to a mediator who shall mediate the dispute in an expeditious manner. The initial referral and assignment of such disputes shall be based on the residence of the employee as indicated on the Notice of Controversy. The Board will keep a list of towns indicating which areas shall be assigned to the respective regional offices.

In cases where the convenience of the parties or the interest of justice require, a party may make a written request to the Board for the matter to be reassigned or transferred to a different mediator and regional office. Such reassignments and transfers shall be made by the Executive Director. If the written request is not by stipulation of all the parties involved in the proceeding, the Executive Director shall give any party opposing the reassignment or transfer of the case 10 days in which to respond to the moving party's request.

§ 2. Confidentiality of Mediation

Mediation is most successful when the parties are free to speak candidly and openly about their interests, needs, and desires. Confidentiality also protects unrepresented parties from exploitation by individuals who use mediation for discovery.

1. All statements made during the course of mediation are made without prejudice to any party's legal position in the dispute being mediated.

2. No aspect of a mediation, other than the Record of Mediation, shall be discoverable or admissible in any proceeding, other than a Penalty referral, governed by the Workers' Compensation Act. Limitations on admissibility and discoverability include, but are not limited to, the following:

A. The mediator shall not be called as a witness, nor shall discovery be taken from the mediator, nor shall a mediator be compelled to produce notes or other evidence of what transpired at mediation.

B. Views expressed or suggestions made by a party with respect to a possible resolution of the dispute, admissions made during mediation, proposals made or views expressed by the mediator, or the response of any party to the mediator's proposals are not discoverable or admissible.

3. Mediators shall not disclose any information provided to them by one party in private to any other party in the mediation without authorization from the disclosing party, except to the extent that such disclosure is required by law.

4. The mediator may restrict attendance at mediation and participation by individuals who are not parties to the dispute.

5. Mediation sessions shall not be recorded or transcribed.

6. Information discussed during mediation may be disclosed if required by superseding state or federal law or codes of professional conduct.

History

• STATUTORY AUTHORITY: 39-A M.R.S.A. Sections 152, 153
• EFFECTIVE DATE: January 15, 1993 (EMERGENCY)
• EFFECTIVE DATE OF PERMANENT RULE: April 2, 1993
• AMENDED: March 11, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 -- header added, “Sec.” changed to "§", minor formatting.
• AMENDED: November 20, 1999 - Section 1
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2003 - changed "SECTION" to "§"
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-177
• REPEALED AND REPLACED: 90-351 Chapter 11 page 2

Chapter 12 Formal Hearings

Code Me. R. 90-351 Ch. 12 Formal Hearings {#sec-90-351-ch.-12 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 12}

§ 1. Filings

1. Petitions and other notifications of disputes shall be filed with the Board’s Central Office in Augusta, Maine.

2. Except as specifically provided in the Maine Workers’ Compensation Act of 1992 or in these rules, any party opposing a motion or wishing to respond to another party’s submission must file a response not later than 21 days after the filing of the motion.

§ 2. Medical Bills

Itemized bills, liens, co-pays, and out of pocket expenses must be filed with petitions for payment of medical and related expenses. This rule does not prohibit a party from seeking a prospective order for payment of medical treatment if payment for that treatment or treatments, or related expenses, has been denied by the opposing party.

Petitions for payment of medical and related expenses can be amended up to the date of the last scheduled hearing.

Payment of medical and related expenses must be made within 10 days after a decree is issued or the date the information required in Chapter 5 is received, whichever is later.

§ 3. Dismissals

1. Parties shall be prepared and ready for hearing. If the petitioning party is unprepared or fails to appear, the Administrative Law Judge shall dismiss the matter unless good cause is shown within 30 days.

2. The Board, by its own motion, after notice to the parties and in the absence of a showing of good cause to the contrary, may dismiss an action for want of prosecution at any time more than two years after the last docket entry showing any action taken by the petitioning party. That dismissal operates as an adjudication upon the merits.

3. Unless otherwise indicated, the dismissal of any petition is without prejudice.

§ 4. Interpreters

An Administrative Law Judge may appoint an interpreter, including an interpreter for the deaf. Interpreters must be appropriately sworn.

§ 5. Continuances

1. A request for a continuance must:

A. Be in writing and can be submitted by mail, fax, or other form of electronic transfer;

B. Be filed no later than 7 days before the hearing or conference;

C. Indicate the reason(s) for the request;

D. Indicate whether there is any objection to the request;

E. Indicate whether the employee is working;

F. Indicate whether weekly benefits are being paid; and,

G. Indicate whether medical treatment is being denied.

2. Parties should not assume that a continuance has been granted. A continuance requires the Administrative Law Judge’s approval. An Administrative Law Judge shall deny a request for continuance that does not comply with the requirements in subsection 1, absent a showing of good cause.

3. If a party who has already requested one continuance requests an additional continuance for the same proceeding, that party must affirm that the party’s client approves the request.

§ 6. Conferences

1. When one or more parties is unrepresented, the Board shall schedule a conference before a hearing is set. The parties are not required to fill out the Joint Scheduling Memo as provided in §9 before the conference. The Joint Scheduling Memo may be filled out at the conference with the Administrative Law Judge.

2. Except as provided in this section, when all parties are represented, the Board will not schedule a conference. The parties shall complete a Joint Scheduling Memo as provided in §9.

3. The Administrative Law Judge may set a case for conference if one or more parties requests a conference or at the Administrative Law Judge’s initiative. If the petitioning party objects to the request, the Administrative Law Judge shall consider the impact of further delay on the petitioning party.

§ 7. [Reserved]

§ 8. Exchange of Information; Discovery

1. The parties shall complete the exchange of information form found in Appendix II, and provide it to the opposing party or parties no later than 30 days after mediation or the filing of a petition, whichever is later, and then on a continuing basis. The information must be sworn to by the party. If a party is represented by counsel, the signature of counsel constitutes that party’s representation that after due inquiry, that party believes the information to be accurate and complete. If a party, in good faith, needs relevant information not covered in the questions contained in the exchange of information form, that party may ask up to three additional, non-complex questions of reasonable length, subject to objection by the opposing party or parties and review by the Administrative Law Judge. Subject to the limitations set forth in this rule, other information may be exchanged by agreement.

The employee shall provide to the employer any report generated by a physician, surgeon, or chiropractor who attended an examination under 39-A M.R.S.A. §207.

2. Discovery motions must be filed in the appropriate regional office. Objections to discovery motions must be filed within 21 days of their receipt. The Administrative Law Judge may decide the motion without a hearing or conference, but may schedule a hearing or conference, at the judge’s discretion or upon request of one or more parties.

3. Witnesses may only be deposed by agreement of the parties or by order of the Administrative Law Judge pursuant to subsection 2. Unrepresented employees may not be deposed.

4. Except as provided in section 10, depositions of experts must be scheduled before the testimonial hearing and completed no later than 45 days after the hearing. Additional time may be allowed upon motion to the Administrative Law Judge. At the hearing, the parties shall provide the Administrative Law Judge with the dates of depositions that have been scheduled but are not yet completed.

§ 9. Joint Scheduling Memorandum

1. The parties or their representatives shall confer and complete fully and accurately a Joint Scheduling Memorandum. The petitioning party shall file the Joint Scheduling Memo with the appropriate regional office no later than 45 days after mediation or the filing of a petition, whichever is later. If the Joint Scheduling Memo is not received in a timely fashion, the Administrative Law Judge may dismiss the pending petitions if the Joint Scheduling Memo is not filed within 21 days after notice from the Board that the petitions will be dismissed. An objection to the Joint Scheduling Memo must be filed no later than 21 days after its submission.

2. A hearing will not be scheduled on a petition until the parties file a Joint Scheduling Memo as provided in this section.

3. The Administrative Law Judge may deem waived legal issues not raised in the Joint Scheduling Memo.

4. A Joint Scheduling Memo template is included in Appendix I.

§ 10. Independent Medical Examination

1. Requests

A. (1) If a §312 examination has been requested prior to the filing of the Joint Scheduling Memo, the parties shall state on the memo the date of the request, whether the request has been approved by the Board’s Office of Medical and Rehabilitation Services, and, if approved, the name of the examiner and the date of the examination.

(2) If a §207 examination has been requested prior to the filing of the Joint Scheduling Memo, the parties shall state on the memo the date of the request, the name of the examiner, and the date of the examination.

B. (1) If a §312 examination has not been requested prior to the filing of the Joint Scheduling Memo, a request must be made no later than 30 days from the date of filing.

(2) If a §207 examination has not been requested prior to the filing of the Joint Scheduling Memo, a request must be made no later than 30 days from the date of filing.

C. A request for an extension of the 30-day period must be made in writing to the Administrative Law Judge no later than 30 days after a party receives significant medical evidence. The 30-day period may be extended by order of the Administrative Law Judge if the moving party demonstrates good cause. Good cause includes, but is not limited to, generation of significant medical evidence since the filing of the Joint Scheduling Memo. Good cause does not include failure to have exchanged relevant medical information in a timely manner pursuant to Board Rule Chapter 4, section 3.

2. Depositions

An independent medical examiner may be deposed only by agreement of the parties or order of the Administrative Law Judge. If the Administrative Law Judge orders a deposition, it must be scheduled within 45 days after entry of the order permitting the deposition.

§ 11. Work Search, Labor Market, and Surveillance Evidence

The following rules apply to cases involving work search, labor market or surveillance evidence.

1. No later than 30 days after mediation or the filing of a petition, whichever is later, the employee shall provide the employer with the work search or labor market evidence that the employee intends to introduce into evidence. It is recommended the employee use a standardized Workers’ Compensation Board work search log and shall include, at a minimum, names of prospective employers, dates of application, responses to the application, if any, and whether the application was submitted in person, by mail, electronically, or by some other means.

2. No later than 21 days after receipt of information provided pursuant to subsection 1, the employer shall provide the employee with the labor market evidence that the employer intends to introduce into evidence.

3. Work search and labor market evidence developed or obtained after the deadlines set forth in subsections 1 and 2 of this section shall be exchanged no later than 7 days before the hearing.

4. Except as provided in subsection 5 of this section, regardless of whether the employer intends to offer the surveillance information into evidence, the employer shall provide the surveillance information to the employee as follows:

A. The employer shall provide all surveillance information to the employee developed since the date of injury, or since the last decree, whichever period is shorter, in connection with the claim and provide an affirmation that all surveillance information has been provided. The employer shall provide the surveillance to the employee within 14 days after the employer receives the information from the employee under subsection 8(1) of this chapter or Appendix II, and in no event later than 7 days before the hearing.

B. For surveillance information obtained by the employer before the submission of the Joint Scheduling Memo, the employer shall provide that information to the employee within 14 days after the employer receives information from the employee under subsection 8(1) of this chapter or Appendix II.

C. For surveillance information obtained by the employer after the submission of the Joint Scheduling Memo, the employer shall provide surveillance information to the employee no later than 14 days after the employer receives that information, and, in no event, later than 7 days before the hearing.

5. The employer may file a motion to stay production of surveillance information with the Executive Director prior to the production deadlines established in subsection 3 of this section. The motion must include all surveillance information. The employer shall file a cover letter with the motion, a copy of which the employer shall timely provide to the employee and the Administrative Law Judge. The employer is not required to provide a copy of the motion or the surveillance information to the employee or the Administrative Law Judge. The Executive Director, or the Executive Director’s designee, may, if there are significant inconsistencies with information provided by the employee pursuant to these Rules, allow the employer to defer providing the surveillance information to the employee until immediately after the employee’s sworn testimony. The Executive Director, or the Executive Director’s designee, shall act upon motions filed under this subsection no later than 14 days after their receipt.

§ 12. Exhibits

1. The parties may mark exhibits submitted into the evidentiary record by number and submission date. Absent agreement of the parties to the contrary, the Administrative Law Judge may exclude an exhibit offered at hearing that was not exchanged by the parties at least 7 days before the final hearing in the matter.

2. The parties may jointly submit relevant medical records and reports as a single, indexed, and tabbed exhibit. The reports and records must be in chronological order and grouped together by health care provider, unless otherwise specified. Exhibits to which there is an objection must be marked separately. The Administrative Law Judge may exclude an exhibit that does not comply with this subsection.

§ 13. Formal Hearings

1. The Board shall schedule a case for a formal hearing as soon as practicable for the duration identified in the Joint Scheduling Memo or otherwise requested. If the parties do not indicate a duration, the case will be set for 60 minutes for receipt of all testimony and evidence. The Administrative Law Judge, at the judge’s discretion, may adjust the length of a hearing or strictly enforce the time allotted.

2. An Administrative Law Judge may allow an additional hearing if necessary. When determining whether to schedule an additional hearing, the Administrative Law Judge shall consider whether weekly benefits are being paid. If weekly benefits are not being paid, the Administrative Law Judge may order payment of benefits without prejudice if an additional hearing is ordered.

§ 14. Position Papers

The Administrative Law Judge shall establish a due date for position papers. A request for additional time to file position papers must be made in writing and must indicate whether the opposing party objects to the request. In lieu of position papers, the parties may request oral argument at the close of the final hearing.

§ 15. Proposed Findings of Fact

Proposed findings of fact and conclusions of law shall be filed no later than 15 days after the filing of a motion for additional findings filed pursuant to 39-A M.R.S.A. §318. If the moving party fails to timely file proposed findings and conclusions, the Administrative Law Judge may dismiss the motion.

§ 16. Alternative Procedures or Timeframes

Upon notice to the parties and for good cause, an Administrative Law Judge may alter the requirements and timeframes in this chapter. In determining whether there is good cause to order alternative procedures or time frames, the Administrative Law Judge may consider the relative efficiency of alternative procedures, fairness to the parties, and the needs of unrepresented parties.

§ 17. Sanctions

An Administrative Law Judge may impose sanctions on a party who violates these rules, following reasonable opportunity to be heard. The Administrative Law Judge may dismiss pending petitions; grant relief requested in the petitions; exclude evidence; award payment of attorney’s fees; or order other temporary relief, including payment or discontinuance of weekly benefits without prejudice until the violating party complies or a final decision is issued.

§ 18. Lump Sum Settlements; Record of Proceedings

1. The Board shall record hearings on proposed settlements pursuant to 39-A M.R.S.A. §352 and include those recordings in the official record of the case.

2. A. An Administrative Law Judge may conduct hearings and issue decisions on lump sum settlements pursuant to 39-A M.R.S.A. §352.

B. When making findings pursuant to 39-A M.R.S.A. §352 (3)(A) relating to the release of an employer’s liability for future medical expenses, an Administrative Law Judge shall determine expected future medical costs related to the injury.

§ 19. Disposition of Evidence

1. If a decision of an Administrative Law Judge, the Appellate Division, or the Board has not been timely appealed, all evidence submitted by the parties and transcripts of proceedings in the matter may be destroyed by the Board after 60 days from the expiration of the time for appeal set forth in 39-A M.R.S.A. §321-B or §322. Prior to that time, parties may file a written request for return of evidence or transcripts and either enclose a postage pre-paid envelope or schedule a time to pick up the file materials. Evidence and transcripts in cases that are appealed to the Law Court may be destroyed no earlier than 60 days after the Law Court denies appellate review or issues an opinion. This rule must be executed in accordance with 5 M.R.S.A. §95(9).

2. The Board shall clearly note the anticipated time of file destruction on all decrees, findings of fact and conclusions of law, and Appellate Division decisions issued after the effective date of this rule.

3. The Board shall preserve audio tapes and electronic recordings of hearings for 6 years from the date on which the testimony was presented, except that the Board shall preserve audio tapes and electronic recordings of lump sum settlement conferences for 10 years from the date the lump sum settlement was approved.

§ 20. Title of “Administrative Law Judge”

Pursuant to PL 2015 c. 297, the title of “Hearing Officer” was changed to “Administrative Law Judge.” The Board’s amendments to its rules concerning these titles are intended to adopt this change.

Appendix I: Joint Scheduling Memorandum

Appendix II: Exchange of Information Form

Chapter 12

Appendix I

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Administrative Law Judge

STATE OF MAINE

WORKERS’ COMPENSATION BOARD

---

DOI

v.

---

WCB#

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JOINT SCHEDULING MEMORANDUM

1. Name of each witness to be called to testify and the amount of time required for each witness’ testimony:

Employee: Employer:

2. Total amount of time required for hearing: _____________.

3. Relief requested, including nature and period of incapacity:

4. Issues, including affirmative defenses:

5. Section 312 examination requested?: Yes No When:

With whom:________________________

6. Section 207 examination requested?: Yes No When:

With whom:________________________

I represent that I have conferred with opposing parties or their representatives in preparation of this Joint Scheduling Memo and they agree with the contents except as follows:

I affirm that the parties have exchanged information as provided in this chapter.

Dated: ________________________________

Petitioner or Petitioner’s Representative

Chapter 12

APPENDIX II

EXCHANGE OF INFORMATION FORM

Information the Employee Must Supply to the Employer

(Please respond to all questions that are relevant to the pending proceeding.)

Write on separate sheets of paper the following information in your own words. Make your answers as complete as you can and send them to the employer/insurance carrier.

1. Your full name, age, and level of education/training.

2. Describe the injury: the nature of the injury, how and when it happened, when you realized that the injury resulted from your work, who at work you told about the injury, and when you told that person.

3. Have you worked since the injury? If so, when, where, and how much did you earn? Have you received unemployment benefits since the injury? If so, state the period of time you received benefits, state whether the benefits are ongoing, and state how much is or was the weekly amount received.

4. What medical treatment have you received as a result of your work injury? Include the names and addresses of doctors, hospitals, and other health care providers you have seen because of this injury.

5. Have you ever injured the same body part before?

Do you have any pre-existing medical conditions related to that body part? If so, describe any medical treatment you have received for those injuries or conditions and include the names of doctors, hospitals, and other health care providers that treated you for those injuries or conditions.

6. Please indicate with a yes or no whether your employer pays for all or part of any fringe benefits such as health, life, disability, dental insurance, or contributions to a 401(k) or pension plan.

7. Please state whether you are asking to be reinstated to the job you were working in when you were injured or to another job for the same employer.

8. List all the jobs you have had over the past 10 years, when you had each job, and what your duties were in each job.

9. List all of your witnesses, other than yourself and your medical providers, and give a short summary of their testimony.

10. Have you suffered any other injuries since you were injured at work? If you have, describe when and how each injury happened and provide the names and addresses of doctors, hospitals, and any other health care providers that you saw because of those injuries.

11. Please provide a description of your current daily activities.

12. Please tell whether you have engaged in any sports, recreational, or home maintenance activities after your date of injury.

13. Are there activities you can no longer do as a result of your injury? If so, describe those activities.

14. Please state whether you have received Old Age Social Security benefits since the date of your injury.

EXCHANGE OF INFORMATION FORM

Information Employer/Insurance Carrier

Must Supply to the Employee

(Please respond to all questions that are

relevant to the pending proceeding.)

1. If the employee has requested reinstatement, please list all positions available from the date of that request through the present that are within the employee’s limitations and within a reasonable distance from the employee’s residence. State whether you have offered the employee his or her old position back or whether you have offered reinstatement to another position. If so, describe the position.

2. Supply all relevant wage information including a wage statement and complete fringe benefits information. State what the employee’s average weekly wage was at the time of the injury and supply wage statements for comparable employees if the petitioning employee was employed by you for less than six months.

3. Except as provided in section 11, subsections 3 and 4 of this chapter, state whether the employer has any evidence that the employee’s reports of limitations or other history given to any person in this case are inaccurate and state the basis for that contention. Provide relevant documentary and written information.

4. Supply a copy of the employee’s personnel file consistent with Harding v. Walmart Stores, Inc ., 2001 ME 13, 765 A.2d 73.

5. State the legal name of your business, the number of employees it employs, and the nature of your operation.

6. List your witnesses and give a summary of their testimony.

7. Give the name(s) and the position(s) of the person(s) supplying this information.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: January 15, 1993 (EMERGENCY)
• EFFECTIVE DATE OF PERMANENT RULE: April 7, 1993
• AMENDED: November 27, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12 and October 9, 1996 - header added, “Sec.” changed to §, spelling corrections, minor formatting.
• AMENDED: October 6, 1997 - Section 19.
• AMENDED: May 23, 1999 - changes to Sections 4, 11, 14, Joint Scheduling Memorandum.
• NON-SUBSTANTIVE CORRECTIONS: October 26, 1999 - minor punctuation and formatting.
• AMENDED: November 20, 1999 - Sections 8 and 9(2).
• AMENDED: September 29, 2002 - Section 1, filing 2002-359
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2003 - character spacing, capitalization only.
• AMENDED: December 26, 2007 – Sec. 6(2)(B) added, filing 2007-531
• AMENDED: October 11, 2009 – Section 1, filing 2009-536
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-178
• AMENDED: October 1, 2015 – Section 18 and Appendix III - filing 2015-174
• AMENDED: September 1, 2018 – filing 2018-131

Chapter 13 Rules of Appellate Division

Code Me. R. 90-351 Ch. 13 Rules of Appellate Division {#sec-90-351-ch.-13 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 13}

§ 1. Scope of Rules

This chapter governs the procedure of the Maine Workers’ Compensation Board Appellate Division (“the division”). It is promulgated pursuant to 39-A M.R.S.A. §321-A (3) and must be construed to secure the prompt and inexpensive review of board decisions.

§ 1-A. Submissions to Appellate Division

Submissions to the Appellate Division are filed when received at the Appellate Division or at any of the Board’s regional offices. A party filing a submission at a regional office is responsible for the cost of transferring the submission to the division.

§ 2. Composition of Appellate Panels; Sessions

Composition of Panels

Pursuant to 39-A M.R.S.A. §321-A, the Executive Director of the Workers’ Compensation Board or, upon designation by the Executive Director, the clerk of the division, shall appoint a panel of at least three full-time Administrative Law Judges from those then serving as Administrative Law Judges of the Workers’ Compensation Board. An Administrative Law Judge may not be a member of a panel that reviews that Administrative Law Judge’s decision. An Administrative Law Judge may be a member of more than one panel at the Executive Director’s discretion.

The Executive Director or, upon designation by the Executive Director, the clerk of the division, shall select a presiding judge for each panel.

The Executive Director may expand the panel if the Executive Director determines that the issue(s) presented on appeal warrant consideration by more than three Administrative Law Judges or by the division en banc .

Sessions

The Executive Director shall determine when and where the division holds sessions.

Notice

After an appeal is assigned to a panel and a session, the clerk of the division shall notify the parties of the composition of the panel and the date the session will occur.

§ 3. Appeal to the Appellate Division

Time for Filing

A party shall file a Notice of Intent to Appeal (WCB-240) an Administrative Law Judge’s decision with the clerk of the division within 20 days after the latest of:

Receipt of notice of the Administrative Law Judge decision;

If an Administrative Law Judge amends a decision and that amendment materially affects the issue(s) on appeal, receipt of notice of an amended Administrative Law Judge decision; or

If a motion for findings of fact and conclusions of law has been filed pursuant to 39-A M.R.S.A. §318, receipt of notice of the Administrative Law Judge’s ruling on the motion.

If, after a party files a Notice of Intent to Appeal under this section, a different party seeks review of a different issue than the issue(s) identified for appeal in the first notice, that party may file a Notice of Intent to Appeal within the 20-day period provided in paragraphs A-C, or within 14 days after the date the first notice was filed, whichever is later.

If both a Notice of Intent to Appeal and a motion for findings of fact and conclusions of law are filed within 20 days after receipt of notice of a decision by an Administrative Law Judge pursuant to 39-A M.R.S.A. §318, the division shall stay action on the Notice of Intent to Appeal until the Administrative Law Judge rules on the motion. The appellant shall notify the division no later than 10 days after receipt of notice of the ruling on the motion whether the appellant will pursue the appeal.

For purposes of this chapter, “decision” means a final decision issued by an Administrative Law Judge that fully disposes of the matters pending before the Administrative Law Judge. “Decision” does not include interlocutory or non-final decisions including, but not limited to, provisional orders.

Filing

A party shall file a Notice of Intent to Appeal with the division and identify the issue(s) being appealed. The filing date is the date the Notice of Intent to Appeal is received at the appellate division or at any of the Board’s Regional Offices. Receipt may include receipt by e-mail, provided the original is sent by U.S. mail or other carrier on or before the due date. The appealing party shall include a copy of the decision being appealed, and shall indicate on form WCB-240 that the transcript of the relevant hearing(s) will be ordered or has already been prepared.

Service

A party that files a Notice of Intent to Appeal shall serve a copy of the notice to the attorney or advocate of record of each party, or if a party is unrepresented, to the party at that party’s last known address.

Multiple Appeals

Unless otherwise agreed upon by the parties, when more than one party has appealed, the party who appeals first is deemed the appellant for the purposes of this chapter.

Dismissal of Appeals

Withdrawal of appeal

Upon receipt of a written stipulation of the parties withdrawing an appeal, the clerk of the division shall dismiss the appeal. If the parties do not agree to withdraw an appeal, an appeal may be withdrawn only by permission of thepanel acting through the presiding judge.

Failure to perfect appeal

Dismissals for failure to perfect appeal are as follows:

Upon a motion of a party and a showing of substantial prejudice, the panel acting through the presiding judge may dismiss a timely filed appeal if the appellant fails to:

1. Provide a copy of the decision; or
2. Serve the parties as provided in §3.3;

Upon a motion of a party or at the initiative of the panel acting through the presiding judge, the division may dismiss an appeal if an appellant fails to comply with §4.1; or

Upon a motion of a party or at the initiative of the panel acting through the presiding judge, the division may dismiss an appeal if an appellant fails to comply with §5.

Settlement

If the parties agree to settle a case pending before the division, the appellant shall notify the division, which shall stay action on the appeal. The appellant shall notify the division within 10 days after the board approves the settlement and the clerk of the division shall dismiss the appeal.

Failure to guarantee payment

If, after 60 days’ notice to the appellant that a guarantee of payment for preparation of the transcript is required, the appellant fails to guarantee payment or request a waiver of payment of costs pursuant to §4(1-A), the panel acting through the presiding judge may dismiss the appeal.

§ 4. The Record on Appeal

Preparation

The appellant shall prepare the record on appeal. Upon filing the Notice of Intent to Appeal, the appellant shall request the appropriate regional office to order necessary transcripts for the appeal. The appellant shall pay the cost of producing the record, including the transcript(s). Within 45 days after the filing date of the Notice of Intent to Appeal, the appellant shall deliver one copy of the record to the clerk of the division and one copy of the record to each party involved in the appeal. The clerk may grant an extension of time if there is a delay in the preparation of the transcript.

1-A. Waiver of Payment of Costs

An appellant seeking to appeal to the division may file an application for leave to proceed without payment of costs. The application should be filed within ten days of the Notice of Intent to Appeal, and in no event later than the date the record is due.

The application shall be accompanied by an affidavit of the appellant stating (i) the person’s monthly income and necessary monthly expenses; (ii) whether the person is receiving public assistance income and, if so, identifying the government program and the nature and the duration of the assistance; (iii) that the appeal is filed in good faith; and (iv) the appellant agrees to repay the Board for any costs that have been waived or paid, if at any time during the pendency of the appeal, the appellant becomes or is discovered to be financially able to repay those costs.

The affidavit shall be kept separate from the other papers in the case and kept confidential.

The panel acting through the presiding judge may enter such orders, including but not limited to limiting the record on appeal, as it deems appropriate.

The record on appeal consists of copies of the pleadings; transcripts of proceedings; exhibits; exhibit list; position papers; the Administrative Law Judge decision(s) being appealed; the Notice of Intent to Appeal; proposed findings submitted to the board; further findings of fact and conclusions of law issued by the Administrative Law Judge; and petitions, decisions or other matters of which the Administrative Law Judge took administrative notice. The parties may agree to exclude from the record any items that are unnecessary for deciding the appeal.

Format

The pages of the record must be clearly numbered and be printed on both sides. Each volume of the record on appeal may contain no more than 150 double-sided sheets of paper and must be securely bound. The cover of the record on appeal must be of heavy grade paper and indicate the case name, the date of injury/injuries, the board file number, the Appellate Division case number, and names of the attorneys or advocates representing each of the parties and the names of the parties they represent. The panel may request an electronic copy of the record, but the parties may not otherwise submit an electronic copy without the panel’s permission.

Correction or Modification of the Record

If a party claims that the transcript does not accurately reflect what occurred before the board or that something material is missing from the record on appeal, the party may file a motion to modify the record with the appellate division. The clerk of the appellate division may refer the motion to the Administrative Law Judge who issued the decision. The Administrative Law Judge may, in response to that motion, or by request of the panel acting through the presiding judge, order preparation of a supplemental record to be filed with the clerk of the division and made part of the record on appeal.

§ 5. Time for Briefs

Time for Filing Briefs

When the record on appeal has been prepared pursuant to §4 and filed with the clerk of the division, the clerk of the division shall notify each party in writing of the briefing schedule. The appellant has 30 days after the date the record is filed to file a brief. The appellee has until the date designated by the division in the briefing schedule, or 20 days after receipt of the appellant’s brief, whichever is later, to file a brief. The appellant has 15 days after the due date for the appellee’s brief to file a reply brief. A brief is considered filed when received by the division. Receipt may include receipt by e-mail, provided the original and all required copies are sent by U.S. mail or other carrier on or before the due date.

1-A. Cross-Appeals

When a cross-appeal has been filed, the briefing schedule is as follows:

The appellant has 30 days after the record is filed to file a brief. The appellee/cross-appellant shall consolidate the appellee’s brief and the cross-appellant’s brief in a single brief to be filed on or before the date designated by the division in the briefing schedule, or 20 days after receipt of the appellant’s brief, whichever is later. The cross-appellee has 20 days after the due date of the appellee/cross/appellant’s brief to file a response. The appellant/cross-appellee shall consolidate the reply brief and response to the cross-appellant’s brief in a single brief. The appellee/cross-appellant has 15 days after the due date for the cross-appellee’s brief to file a reply brief. A brief is considered filed when received by the division.

Extensions

A party may file a written motion to extend the time to file a brief before the date the brief is due. The clerk shall grant motions for extensions of 14 or fewer days if the moving party represents that there is no objection to the motion. Additional unopposed requests for extensions may be granted for good cause. The panel acting through the presiding judge may grant motions for extensions to which a party objects, after reviewing the circumstances of the appeal. The clerk or the panel acting through the presiding judge may not grant a motion to extend filed after the due date of the brief for which the motion is filed.

Number of Copies to be Filed and Served

Unless otherwise ordered by thepanel acting through the presiding judge, five copies of each brief must be filed with the clerk of the division and one copy of each brief must be served on the counsel or advocate for each of the other parties separately represented. If a party is unrepresented, a copy of each brief must be sent to that party at the party’s last-known address. The panel acting through the presiding judge may reject a brief that is not accompanied by acknowledgement or certificate of service that shows compliance with this subsection.

Failure to File Briefs

If an appellant fails to comply with this rule, the appeal may be dismissed under §3.5. If an appellee fails to comply with this rule, the panel may decide the appeal without considering submissions of the appellee, including oral argument in an appeal in which oral argument is otherwise allowed.

§ 6. Contents of Briefs

Appellant’s Brief

The appellant’s brief must include the following, under appropriate headings and in the order provided:

A table of contents with page references;

A table of cases, statutes, and other authorities cited;

A statement of the facts of the case;

A statement of the issues presented for review; and

The appellant’s argument(s), which may include a summary. This section must include the appellant’s contentions regarding the issue(s) presented and the legal analysis of those issue(s), with citations to authorities and page references from the appendix or the record, only if the referenced document is not in the appendix. Except for good reason, all documents referenced in the briefs should be included in the appendix.

Appellee’s Brief

The appellee shall comply with the requirements of subsection 1, except that the appellee may exclude a statement of the facts or the issues if the appellee is satisfied with the appellant’s statements.

Reply Brief

The appellant/cross-appellee may file a reply brief only on new matters raised in the appellee/cross-appellant’s brief. If a cross-appeal is filed, the appellant/cross-appellee shall include the appellant/cross-appellee’s answer to the cross-appellant’s issues within any reply brief that is filed. The cross-appellant may file a reply to the cross-appellee’s brief. Further briefs may only be filed with the permission of the panel acting through the presiding judge.

Cross-appellant’s Briefs

If a cross-appeal is filed, the cross-appellant shall include the cross-appellant’s issues and arguments within the appellee’s brief.

Amicus Curiae’s Brief

An amicus curiae may file a brief only with the written consent of all parties or with the permission of the panel acting through the presiding judge. A motion for permission to file must identify the interest of the applicant and state the reasons an amicus curiae brief is warranted. Except by agreement of the parties, any amicus curiae proceeding under this subsection shall file its brief no later than 14 days after the date the appellee’s brief is filed, unless the panel acting through the presiding judge allows later filing for good cause shown. A party may file a brief in reply to the amicus brief only with the permission of the panel acting through the presiding judge.

Brief Format

Without prior approval of thepanel acting through the presiding judge, briefs may not exceed 20 single-sided printed pages. Briefs may be reproduced by standard printing or by any duplicating process capable of producing a clear black image on white paper. All printed material must appear in at least 12 point font on white, opaque, unglazed paper. The cover of the appellant’s brief must be blue; the appellee’s, red; an amicus curiae’s, green; and any reply brief, gray.

Briefs must be bound in volumes with pages 8½ x 11 inches and type matter not exceeding 6½ x 9½ inches, double-spaced, except quotations. The front cover of the brief must include:

The name of the Workers’ Compensation Board Appellate Division;

The Appellate Division case docket number;

The title of the case;

The nature of the proceeding before the division (e.g., Appeal);

The title of the document (e.g. Brief for Appellant); and

The name and address of the attorney or advocate filing the document and the name of the party on whose behalf the document is filed; or if a party is unrepresented, the name and address of the party.

The panel or the clerk may request electronic copies of briefs.

Historical Appendices

If the appeal involves provisions of the current or former Act or rules no longer in effect, the parties shall include copies of applicable statutory sections or rules as an appendix to their briefs.

§ 7. Appendices to Briefs

Filing

The appellant shall file five copies of an appendix to the appellant’s brief with the clerk of the division no later than the date the appellant’s brief is due. The panel acting through the presiding judge may require the appellant to file additional copies as needed. The appellant shall serve a copy of the appendix on each party on the same date the appellant files the appendix with the division.

2. Contents

The appendix must contain those documents from the record necessary for the review of the issue(s) on appeal, and must contain a table of contents. The parties shall confer and attempt to agree on the contents of the appendix. If the parties do not agree, no later than 14 days before the appendix is due under §7.1, the appellant shall provide the appellee with a list of the documents the appellant proposes to include in the appendix. If the appellee wishes to add documents to the appendix, within seven days the appellee shall designate the additional documents to include, and the appellant shall include those documents unless otherwise ordered by thepanel acting through the presiding judge. The appendix may not include any documents that are not part of the board file or the record on appeal other than a supplement of legal authorities. The parties shall not include a document in the appendix more than once. Except for good reason, all documents referenced in the briefs should be included in the appendix.

3. Cost

Unless the parties otherwise agree or leave to proceed without payment of costs has been granted pursuant to §4(1-A) of this rule, the appellant shall pay the costs of producing the appendix. If the appellee includes documents the appellant believes are unnecessary for the review of the issue(s) on appeal, the appellee shall advance the additional cost of producing the documents. At the conclusion of proceedings, the panel’s presiding judge may assign responsibility for disputed costs to either or both parties.

4. Format

Without prior approval of the clerk, the appendix may not exceed 150 double-sided sheets of paper that are clearly paginated. The appendix must be reproduced by standard printing or by a duplicating process capable of producing a clear black image on white paper. To the extent possible, pages must be printed on both sides, on 8 1/2” x 11” white, opaque, unglazed paper. The appendix must have a white cover that conforms with cover requirements for a brief as provided in §6.6(A)-(F).

§ 8. Decision on Record

The division shall decide appeals based exclusively on the written submissions of the parties as provided in this chapter, except as provided in §9.

§ 9. Oral Argument

Request for Oral Argument

A panel may schedule a case for oral argument or a party may request in writing the opportunity to present oral argument. The writing must be under separate cover from any other board filing. The requesting party shall indicate the reason oral argument is necessary for the understanding and disposition of the appeal. The panel acting through the presiding judge may grant a motion of an amicus curiae to participate in an oral argument only for extraordinary reasons. If a party fails to request oral argument within 7 days after the later of the due date of the appellant’s reply brief or the cross-appellant’s reply brief, if a cross appeal is filed, oral argument is waived.

Scheduling

If the panel schedules oral argument, the clerk of the division shall notify the parties in writing at least 21 days in advance of the time and place the oral argument will be held.

Postponement

A written motion for postponement of oral argument must be filed with the clerk of the division at least 14 days before the scheduled hearing date. The panel acting through the presiding judge may allow shorter notice for emergencies or other exceptional circumstances, but the motion for postponement must be made as soon as reasonably possible.

Time Allowed for Argument

The appellant and appellee have 20 minutes each for presentation of oral argument. If an employee and one or more employers/insurers are appellees, the employee shall have 20 minutes for presentation or oral argument and the employers/insurers may allocate a total of 20 minutes for oral argument. The panel may allow additional time for oral argument if a party files a motion showing good cause on or before the date appellant’s reply brief is due under §5.1.

Order of Argument

The appellant may open and conclude the argument. The panel may allow the appellant to reserve up to five minutes for concluding remarks and rebuttal if the appellant requests the reservation before beginning the appellant’s presentation.

Cross and Separate Appeals

A cross or related separate appeal must be argued with the initial appeal at a single hearing unless the division directs otherwise. If separate parties support the same argument, the parties shall avoid duplication of argument.

Failure to Appear

If the attorney or advocate for a party, or an unrepresented party, fails to appear to present argument, the panel may hear argument from any attorney, advocate, or unrepresented party present, and the panel shall decide the case on the record of appeal, the briefs, and the argument. If no one appears to present argument, the panel shall decide the case on the record of appeal and briefs, unless the panel directs otherwise.

§ 10. Action

Pursuant to 39-A M.R.S.A. §321-B(3), the panel, after due consideration, shall issue a written decision affirming, modifying, vacating, or remanding an Administrative Law Judge’s decision. The written decision of the panel must be filed with the board and mailed to the attorney or advocate for each party, or if a party is unrepresented, to that party at the party’s last known address.

§ 11. Disposition of Evidence

Disposition of Evidence

Workers’ Compensation Board Rule Chapter 12, §19 applies to the disposition of evidence when no party appeals from a division decision to the Supreme Judicial Court.

Recordings

The board shall preserve recordings of division oral arguments for six years from the date of the argument.

§ 12. Application

This chapter applies to all appeals filed on or after the original effective date of this chapter.

History

• STATUTORY AUTHORITY: 39-A MRS §§ 101 et seq.
• EFFECTIVE DATE: February 9, 2013 – 2013-035
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-179
• AMENDED: September 1, 2018 – filing 2018-132
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 14 Review by Full Board

Code Me. R. 90-351 Ch. 14 Review by Full Board {#sec-90-351-ch.-14 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 14}

SUMMARY: The rules of this chapter shall govern the procedures for obtaining a review of an Administrative Law Judge’s decision by the Board pursuant to 39-A M.R.S.A. §320.

§ 1. Request for Board Review

An Administrative Law Judge may request the Board to review a decision of that Administrative Law Judge pursuant to 39-A M.R.S.A. §320 by filing with the Board form WCB-300 and a copy of the decision for which review is sought. Except when a motion is filed to find the facts specially and state separately the conclusions of law, the request must be made within 25 days of the issuance of a decision. If a motion is filed to find the facts specially and state separately the conclusions of law, the request must be made within 5 days of the issuance of a decision on the motion. The Board will distribute copies of the decision attached to form WCB-300 to all Board members within 5 working days of receipt of form WCB-300. The Board shall also distribute notice of the request for review to the Law Court.

If a request for review is filed prior to a timely motion to find the facts specially and state separately the conclusions of law, the Administrative Law Judge shall, within 5 days of the issuance of a decision on the motion, notify the Board whether or not the request for review is valid or should be withdrawn.

§ 2. Board Action

1. Except as provided in paragraph 2 of this section, the Board shall vote to grant or deny a Request for Review Pursuant to 39-A M.R.S.A. §320 within 60 days after receipt of form WCB-300.

2. If a Motion for Findings of Fact and Conclusions of Law is filed after an Administrative Law Judge has requested review pursuant to 39-A M.R.S.A. §320, the Board shall vote to grant or deny a request for review pursuant to 39-A M.R.S.A. §320 within 60 days after receipt of the Administrative Law Judge’s decision on the Motion for Findings of Fact and Conclusions of Law.

3. The vote shall be conducted during a public meeting of the Board. In voting to grant or deny a Request for Review pursuant to 39-A M.R.S.A. §320, the Board shall consider only the decision from which review is sought, including a decision on a Motion for Findings of Fact, form WCB-300, and, if requested by the Board, a summary provided by the Legal Division.

4. Notice that the Board will vote on a request for review pursuant to §320 shall be accomplished as follows: The name of the case, along with an indication that the case is being reviewed pursuant to §320, shall be placed on the Board’s agenda under the heading “General Counsel’s report.”

5. The Board shall notify the Administrative Law Judge, parties, and the Law Court of the outcome of the vote of the Board.

6. If a majority of the members of the Board vote to grant the review of the decision, the Chair of the Board shall order the preparation of the record.

§ 3. Record

Responsibility for preparing the record shall be with the Board. The record shall consist of all evidence considered by the Administrative Law Judge in making the decision which is being reviewed by the Board. The record shall be prepared within 60 days of notice of the vote of the Board granting review of the decision. Copies of the record shall be distributed to the parties and to the panel members assigned by the Chair to review the decision. Upon completion of the record the Board shall issue a briefing schedule to the parties.

§ 4. Briefs

1. Time for Filing Briefs

The party or parties who received an unfavorable decision from the Administrative Law Judge shall be treated as the appellants. The other party or parties shall be treated as appellee(s). The appellant shall be given 30 days to file a brief. The appellee shall be given 20 days from receipt of the appellant’s brief in which to file its brief. The appellant may file a reply brief within 15 days from receipt of the appellee’s brief.

2. Additional Time to File Briefs

Motions for extensions of time in which to file a brief shall be made in writing and filed with the Board. The motion shall be directed to the panel assigned to review the decision. Extensions for filing briefs shall only be granted in extraordinary circumstances.

3. Number of Copies to be Filed and Served

Ten copies of each brief shall be filed with the Board and one copy of each brief shall be served on counsel for each of the other parties separately represented. The Board will not accept a brief for filing unless it is accompanied by acknowledgment or certificate of service upon counsel for the other parties.

4. Form of Briefs

A. Brief of Appellant

The brief of the appellant shall contain under appropriate headings and in the order here indicated:

(1) A table of contents, with page references, and a table of cases, statutes and other authorities cited.

(2) A statement of the facts of the case.

(3) A statement of the issues presented for review.

(4) An argument. The argument may be preceded by a summary. The argument shall contain the contentions of the appellant with respect to the issues presented, and the reasons therefore, with citations to the authorities and particular pages of the record relied on.

B. Brief of the Appellee

The brief of the appellee shall conform to the requirements of paragraph (A), except that a statement of the issues, or of the facts of the case, need not be made unless the appellee is dissatisfied with the statement of the appellant.

C. Reply Brief

Any reply brief filed by the appellant must be strictly confined to replying to new matter raised in the brief of the appellee. No further briefs may be filed except by leave of the Board.

D. Format of Briefs

Briefs may be reproduced by standard printing or by any duplicating or copying process capable of producing a clear black image on white paper. All printed matter must appear in at least 11 point type on opaque, unglazed paper. Briefs shall be bound in volumes having pages 8 1/2 X 11 inches and type matter not exceeding 6 1/6 X 9 1/2 inches, with double spacing between each line of text except for quotations. The front cover of the brief shall contain: (1) the docket number of the case as assigned by the Board; (2) the title of the case; (3) the title of the document (e.g., brief of appellant); and (4) the names and addresses of counsel representing the party on whose behalf the document is filed. The covers of the brief of the appellant shall be blue; that of the appellee, red; and that of any reply brief, gray.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: January 15, 1993
• EFFECTIVE DATE OF PERMANENT RULE: April 2, 1993
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12, 1996 - header added, “Sec.” changed to §, minor formatting.
• AMENDED: August 22, 1998
• NON-SUBSTANTIVE CORRECTIONS: November 23, 1998 - “39A” changed to “39-A”; minor spelling and formatting.
• AMENDED: July 24, 2000 - Section 2 Amendments
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2003 - character spacing only
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-180
• AMENDED: September 1, 2018 – filing 2018-133

Chapter 15 Penalties

Code Me. R. 90-351 Ch. 15 Penalties {#sec-90-351-ch.-15 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 15}

This chapter sets forth the delegation of authority to assess penalties under Title 39-A and specifies the procedures for assessing penalties.

§ 1. Place of Filing

Unless otherwise directed, all filings, responses to filings, position papers and correspondence relating to penalties and forfeitures under this chapter must be addressed to and filed with the Abuse Investigation Unit, Maine Workers’ Compensation Board, 27 State House Station, Augusta, Maine, 04333-0027.

§ 2. [Reserved]

§ 3. Assessment of Penalties under 39-A M.R.S.A. §205

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Executive Director or the Executive Director’s designee the authority to assess penalties pursuant to §§ 205(3) and 205(4). Complaints under §205(3) may be filed by the Deputy Director of Benefits Administration or other interested party. Any interested party may file a complaint pursuant to §205(4).

2. For complaints involving §205(3), the Abuse Investigation Unit will obtain documentation of payments made pursuant to §§ 205(1) and 205(2). Parties will be given the opportunity to address, in writing, any issues regarding factual disputes prior to the imposition of a penalty.

3. After completion of the investigation, if it is determined that a violation has occurred, the Executive Director or the Executive Director’s designee will issue an order assessing penalties as outlined in §205(3). The order will specify the factual findings upon which the penalty is based.

4. For complaints involving §205(4), the complaint must specify that there is no ongoing dispute regarding the claim for benefits and must include proof of service upon the insurance carrier, by certified mail, of notice of nonpayment of the medical bill in question. Parties will be given the opportunity to address, in writing, any issues regarding factual disputes prior to the imposition of a penalty.

5. After completion of the investigation, if it is determined that a violation has occurred, the Executive Director or the Executive Director’s designee will issue an order assessing penalties as outlined in §205(4). The order will specify the factual findings upon which the penalty is based.

§ 4. [Reserved]

§ 5. Assessment of Sanctions and Forfeitures under 39-A M.R.S.A. §313

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Executive Director or the Executive Director’s designee the authority to assess sanctions and forfeitures pursuant to §313.

2. The mediators will refer all recommendations for sanctions and forfeitures under §313 to the Executive Director or the Executive Director’s designee. Referrals for sanctions and forfeitures must be in writing, must state the grounds for the referral, including the factual basis on which the referral is made, and must be served upon the party against whom the sanction or forfeiture is sought by certified mail, return receipt requested.

3. The Executive Director or the Executive Director’s designee will process all requests for penalties under §313(5) and is empowered to assess a forfeiture of $100 against any employer or representative of the employee, employer, or insurer for failure to be familiar with the claim or have full authority to make decisions regarding the claim. The Assistant Director is also empowered to impose a sanction against any party of up to $100 under §313(4) for failure to attend a scheduled mediation.

4. All other §313(4) sanctions and any other forfeiture or sanction referral not falling within these prescribed categories will be referred for action by the Executive Director or the Executive Director’s designee.

5. The Executive Director or the Executive Director’s designee is empowered to impose sanctions under §313(4) which include assessment of costs and attorney’s fees; reductions in attorney’s fees; or suspension of proceedings until the moving party cooperates or produces the requested material. Where the facts warrant it, a hearing will be held prior to imposition of sanctions under §313(4).

6. Sanctions and forfeitures under both §§ 313(4) and 313(5) will be imposed by written order. The order will specify the factual findings upon which the forfeiture or sanction is based.

§ 6. Assessment of Forfeitures under 39-A M.R.S.A. §324(2)

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Executive Director or the Executive Director’s designee the authority to assess forfeitures pursuant to §324(2).

2. Procedures for Assessment of Forfeitures

A. Any party in interest may file a Petition for Forfeiture with the Abuse Investigation Unit pursuant to 39-A M.R.S.A. §324(2)(A). A copy of the petition must be served by certified mail, return receipt requested, to the other parties named in the petition. A copy of the petition must be served upon the employer, employers’ insurer, or group self-insurer.

B. No response to a petition filed under subsection A is required. It will be presumed by the Abuse Investigation Unit that all allegations are denied.

C. The Abuse Investigation Unit will investigate the allegations contained in the Petition for Forfeiture. As part of its investigation, the Abuse Investigation Unit shall require any and all interested parties to submit written evidence concerning the petition, including but not limited to position papers, depositions, and affidavits. The Abuse Investigation Unit will set forth a schedule for the submission of such evidence by the parties. Absent extraordinary circumstances, no testimonial hearing will be held.

D. The moving party’s failure to file requested documentation by the date specified by the Abuse Investigation Unit or to request and receive an extension in a timely fashion, shall result in the dismissal of the petition. Failure by the defending party to file requested documentation by the date specified, or to request and receive an extension in a timely fashion, shall result in the allegations submitted in the petition being accepted as true and a forfeiture being assessed based on these accepted facts. Absent extraordinary circumstances, no more than one extension of time will be granted.

E. Voluntary dismissal of a Petition for Forfeiture at the moving party’s request or by settlement agreement will not preclude the Abuse Investigation Unit from recommending the assessment of a forfeiture payable to the Workers’ Compensation Board Administrative Fund pursuant to §324(2)(A)(1).

F. Upon completion of its investigation, the Abuse Investigation Unit will provide the Executive Director or the Executive Director’s designee with a recommended disposition of the case, which may include a suggested forfeiture amount. The Executive Director or the Executive Director’s designee will review the recommendation as well as the parties’ contentions and will issue an order either granting, denying or dismissing the petition.

G. Orders assessing forfeitures will be based upon the results of the investigation and the written submissions of the parties. For purposes of determining whether a forfeiture will be assessed, circumstances beyond a party’s control normally will not include turnovers in staff or problems with data processing systems which are of a short duration. In determining the amount of an assessed forfeiture, consideration will be given to prior forfeiture orders issued against the same party for similar offenses.

H. If a petition is granted, the employer or insurance carrier shall pay reasonable costs and attorney’s fees related to the fine as determined by the Executive Director or the Executive Director’s designee.

§ 7. Assessment of Penalties under 39-A M.R.S.A. §324(3)

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Workers’ Compensation Board Abuse Investigation Unit the authority to recommend the imposition of penalties pursuant to §324(3) and delegates to the Executive Director or the Executive Director’s designee the authority to assess civil penalties, after hearing, pursuant to §324(3).

2. The Deputy Director of Benefits Administration will report all instances of noncompliance with §§ 401 and 403 of the Act to the Abuse Investigation Unit, which will investigate the report of noncompliance.

3. Upon completion of the investigation, the Abuse Investigation Unit may refer the matter to the Executive Director or the Executive Director’s designee for hearing and will notify the subject of the investigation of the referral. Hearings will be held in accordance with the provisions of Section 10.4 of these rules.

4. In addition to referral to the Executive Director or the Executive Director’s designee for hearing, the Abuse Investigation Unit may pursue any of the sanctions contained in §324(3) where appropriate.

§ 8. Assessment of Penalties under 39-A M.R.S.A. §359(2)

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Workers’ Compensation Board Abuse Investigation Unit the authority to recommend the imposition of penalties pursuant to §359(2). The Board designates the Executive Director, or the Executive Director’s designee, to be the Presiding Officer for hearings conducted pursuant to this rule. The Presiding Officer shall have the authority to assess civil penalties, after hearing, pursuant to §359(2).

2. Any party in interest may file a §359(2) complaint with the Abuse Investigation Unit. The Abuse Investigation Unit may also initiate action, either on its own, or on referral from the Monitoring, Audit, and Enforcement (MAE) Program. The Abuse Investigation Unit will investigate all complaints and, as part of the investigation, may require the parties to submit written evidence concerning the complaint or complaints, including position papers.

3. Upon completion of the investigation, the Abuse Investigation Unit will determine whether the allegations, if true, demonstrate that an employer, insurer, or 3rd-party administrator for an employer has engaged in a pattern of questionable claims-handling techniques or repeated, unreasonably-contested claims. For purposes of this rule, a claim is unreasonably contested if there is no articulable basis for contesting the claim, or the claim is contested upon a basis that is contrary to law or rule.

4. If so, the subject of the investigation will be notified that the matter is being referred for hearing and possible imposition of civil penalties. If not, further investigation under §359(2) will be denied.

5. The Presiding Officer will schedule and hold a hearing in referred cases. The Presiding Officer will issue a hearing order to the parties concerning the procedure to be followed before and during the hearing, including the submission of additional evidence and the filing of motions. In cases where a party is alleging that an employer, insurer, or 3rd-party administrator for an employer has engaged in a pattern of questionable claims-handling techniques or repeated, unreasonably-contested claims, the burden will be upon the complaining party to prove its contentions. In cases where there is no specific complaining party, the Abuse Investigation Unit will present evidence acquired during, or as a result of the investigation. In all cases, the Presiding Officer will actively participate to ensure that all relevant information is considered prior to issuing findings. If necessary, the Presiding Officer may request further investigation by the Abuse Investigation Unit if circumstances warrant.

6. To prevail, the moving party must show by a preponderance of the evidence that an employer, insurer, or 3rd-party administrator for an employer has engaged in a pattern of questionable claims-handling techniques or repeated, unreasonably-contested claims.

7. In cases where there is a finding that an employer, insurer, or 3rd-party administrator for an employer has engaged in a pattern of questionable claims-handling techniques or repeated, unreasonably-contested claims, the Presiding Officer, in determining the amount of penalty to be assessed, shall consider the severity of the offense, and any previous adverse determinations under §359(2) against the employer, insurer, or 3rd-party administrator for an employer.

8. All findings and conclusions shall issue in a written order. Decisions rendered by the Presiding Officer shall be appealable to the Law Court as provided in 39-A M.R.S.A. §322.

9. All decisions rendered by the Presiding Officer shall be presented to the Board. The Board shall certify its findings to the Superintendent of Insurance. This certification by the Board is exempt from the provisions of the Maine Administrative Procedure Act.

§ 9. Assessment of Penalties under 39-A M.R.S.A. §360(1)

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Executive Director or the Executive Director’s designee the authority to assess penalties pursuant to §360(1).

2. Any party in interest, including the Deputy Director of Benefits Administration or other interested party, may file a complaint under §360(1) with the Abuse Investigation Unit. The complaint must be in writing, must state the grounds for assessment of the penalty, including the factual basis on which the complaint is based, and must be served upon the party against whom the penalty is sought.

3. The party against whom the penalty is sought may respond to the complaint within 10 days of receipt of the complaint. Responses should be limited to addressing the factual issues invoked, and may include relevant exhibits.

4. After review of the submissions and the results of any investigation, the Executive Director or the Executive Director’s designee will issue an order either assessing a penalty or dismissing the complaint.

§ 10. Assessment of Penalties under 39-A M.R.S.A. §360(2)

1. Pursuant to 39-A M.R.S.A. §152(7), the Maine Workers’ Compensation Board delegates to the Workers’ Compensation Board Abuse Investigation Unit the authority to recommend the imposition of penalties pursuant to §360(2) and delegates to the Executive Director, or the Executive Director’s designee, the authority to be the Presiding Officer for hearings conducted pursuant to this rule. The Presiding Officer shall have the authority to assess civil penalties, after hearing, pursuant to §360(2).

2. Any party in interest, including any deputy director or assistant director of the Workers’ Compensation Board, may file a §360(2) complaint with the Abuse Investigation Unit. The Abuse Investigation Unit will investigate all complaints and, as part of the investigation, may require parties to submit written evidence concerning the complaint, including position papers.

3. Upon completion of the investigation, the Abuse Investigation Unit will determine whether the allegations, if true, rise to the level of willful violation, fraud, or intentional misrepresentation. If so, the subject of the investigation will be notified that the matter is being referred for hearing and possible imposition of civil penalties. If not, further investigation under §360(2) will be denied.

4. The Presiding Officer will schedule and hold a hearing in referred cases. The Presiding Officer will issue a hearing order to the parties concerning the procedure to be followed before and during the hearing, including the submission of additional evidence and the filing of motions. In cases where there are opposing parties, the burden will be upon the complaining party to prove its contentions; however, the Presiding Officer will actively participate to ensure that all relevant information is considered prior to issuing findings. In cases where there is no specific complaining party, the Abuse Investigation Unit will present evidence acquired during, or as a result of the investigation. If necessary, the Presiding Officer may request further investigation by the Abuse Investigation Unit in a case of circumstances warrant it.

5. The standard for determining whether a willful violation of the Act or intentional misrepresentation has occurred is by preponderance of the evidence. In the case of fraud, the standard is one of clear and convincing evidence.

6. In determining whether to assess a penalty or the amount to be assessed, the Presiding Officer will consider the severity of the offense, whether it is a repeated offense, and the amount of money at issue. The lack of a prior offense will not be a mitigating factor in determining the amount of the penalty assessed. Penalty amounts are limited to 50% of the monies at issue up to the statutory cap.

7. In considering whether to order the repayment of benefits wrongfully received, the Presiding Officer will consider the severity of the offense and will accept and consider evidence of financial ability to repay.

8. All findings and conclusions will issue in a written order. This order will constitute final agency action which is appealable in Superior Court.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: June 29, 1995 (EMERGENCY)
• EFFECTIVE DATE: October 29, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12, 1996 -- header added, “Sec.” changed to §, minor spelling and formatting
• AMENDED: May 23, 1999 - Section 8 added, § reverted to Sec.
• NON-SUBSTANTIVE CORRECTIONS: October 26, 1999 - minor punctuation and formatting
• AMENDED: October 25, 2000 - Amendments to Sections 5, 7, & 10 (DDDR references changed)
• NON-SUBSTANTIVE CHANGES: January 9, 2003 - character spacing only
• AMENDED: September 30, 2007 – Amendments to Sections 3, 6, &9 (Executive Director designee), filing 2007-418
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-181
• AMENDED: September 1, 2018 – filing 2018-134
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 16 Confidentiality of Files

Code Me. R. 90-351 Ch. 16 Confidentiality of Files {#sec-90-351-ch.-16 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 16}

Pursuant to 39-A M.R.S.A. §152(2), these rules establish procedures to safeguard the confidentiality of the records of the former Workers' Compensation Commission and the Workers' Compensation Board pertaining to individual injured employees.

§ 1. Records

Records of the former Workers’ Compensation Commission and Workers’ Compensation Board providing a basis for identification of injured employees through name, address, Social Security number or like means of identification are confidential and available on a need-to-know basis.

§ 2. Need-to-Know

For purposes of this rule, "need-to-know basis" shall include, but is not limited to, the following:

1. An injured person gives written authorization for disclosure;

2. An injured person asserts a claim and an employer or insurer potentially subject to liability for the claim requests disclosure directly or through an attorney or other agent;

3. A person asserts a workers’ compensation claim, or asserts a claim through civil or other litigation and any other person or insurer potentially subject to liability for the claim requests disclosure directly or through an attorney or other agent;

4. A person, insurer, employer, or other involved party is the subject of a public agency investigation or prosecution for fraud or other impropriety, whether civil or criminal;

5. An Administrative Law Judge, mediator, arbitrator, an appointed or agreed upon §312 independent medical examiner with proper notification, or other employee of the Board requests records for the purpose of administering and decision-making under the Act;

6. An Administrative Law Judge, mediator, or arbitrator, or the General Counsel upon request, rules that disclosure is appropriate for any other reason, including the potential relevance of such records to a claim or proceeding, or the likelihood that such records may reasonably be expected to lead to relevant evidence. Any such ruling may limit further disclosure by a recipient as appropriate; or

7. Access is required by Maine or Federal statute, regulations, or court order.

§ 3. Methods for Requesting Information

The Workers’ Compensation Board will release no individual identification information contained in individual injured workers files to individuals that do not meet the need-to-know standard in Section 2. Individual identifying information includes name, Social Security number, claim, or employee number. If the request is made in person or over the telephone, and the individual is unknown to staff or the need-to-know is not established, a written request will be required. The written request shall state the relationship of the requesting party to the case, the specific information requested, and any other information the party believes helpful in establishing "need-to-know" as defined by these regulations. The written request shall become part of the individual file.

§ 4. Legitimate Research Purposes

1. Records of the former Workers’ Compensation Commission and the Workers’ Compensation Board which do not require the identification of individual injured employees are available for legitimate research purposes. For purposes of these rules, legitimate research purposes are defined as a study undertaken for academic purposes or by a bona fide organization or representative of an organization to discover facts, establish principles, review processes or evaluate outcomes regarding the administration and operations of activities relating to the workers’ compensation system.

2. Public Access for Legitimate Research Purposes

A. Request to access the Workers’ Compensation Board database for legitimate research purposes will be made in writing to the General Counsel who will review the request with appropriate staff to determine if:

(1) The request complies with applicable statutes and Workers’ Compensation Board regulations;

(2) The request is technically feasible;

(3) The Workers’ Compensation Board resources needed to comply with such a request are available without jeopardizing ongoing operations.

B. If the request seeks access to individual injured employee files, the need-to-know standard must also be met.

C. For requests needing technical assistance and support from Board staff, the General Counsel may prioritize or deny staff support and assistance for legitimate research proposals based on limited agency resources, higher Workers’ Compensation Board data priorities, duplicative efforts, or other reasonable and stated reasons. This standard does not apply to requests based on a need-to-know basis, which will be complied with in all instances where the need-to-know standard is met.

D. Individuals who are denied access may appeal the General Counsel’s decision to the Workers’ Compensation Board who must respond within 30 days.

E. The Executive Director may enter into agreements with the Bureau of Insurance, Maine Department of Labor, and other appropriate state governmental agencies which allow access to the Workers’ Compensation Board database for research purposes as long as the Board’s requirements for confidentiality of individual files are maintained. Failure to maintain the standard may result in the revocation of access.

§ 5. Sensitive Records

Absent a ruling pursuant to Section 2, subsection 6 or a written authorization by an employee, "need-to-know" does not include the following:

1. Information designated confidential by any other State or Federal statute or regulation;

2. Medical records including but not limited to medical records admitted into evidence; and

3. Information sealed during the dispute resolution process by an Administrative Law Judge on his or her own motion or at the request of a party. Such information may include records relating to: abortion, AIDS or HIV test results and treatment, mental deficiency, or disease, substance abuse test results and treatment or sexually transmitted diseases.

§ 6. All Workers’ Compensation Board and former Workers’ Compensation Commission records not declared confidential or sensitive pursuant to §5 of this chapter are public records. Public records include, but are not limited to, Board decisions, transcripts of testimony, and exhibits admitted into evidence.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 101 et seq.
• EFFECTIVE DATE: June 20, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: September 12, 1996 - header added
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2003 - character spacing only
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-182
• AMENDED: September 1, 2018 – filing 2018-135

Chapter 17 Procedures for Coordination of Benefits, Expenses and Fees

Code Me. R. 90-351 Ch. 17 Procedures for Coordination of Benefits {#sec-90-351-ch.-17 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 17}

§ 1. Expenses Related to Independent Medical Examinations under 39­A M.R.S.A. §312

Expenses incurred by the employee attending an independent medical examination are to be paid for by the employer. The following rates of reimbursement shall apply for travel:

$.46 per mile for mileage reimbursements.

Actual costs or a maximum of $120.00 per evening for overnight lodging. Reimbursement for overnight lodging is allowed only when the employee has traveled 100 miles or more, one way, from the employee's place of residence.

$6.00 for breakfast, $6.00 for lunch, and $16.00 for dinner. Reimbursement for meals is allowed only when the employee has traveled 50 miles or more, one way, from the employee's place of residence.

Actual charges for tolls, accompanied by a receipt.

§ 2. Expenses Related to Medical Treatment

The employer/insurer must pay the employee’s travel-related expenses incurred for medical treatment related to the claimed injury as follows:

$.46 per mile for mileage reimbursements.

Actual costs accompanied by a receipt or a maximum of $120.00 per evening for overnight lodging. Reimbursement for overnight lodging is allowed only when the employee has traveled 100 miles or more, one way, from the employee's place of residence.

$6.00 for breakfast, $6.00 for lunch, and $16.00 for dinner. Reimbursement for meals is allowed only when the employee has traveled 50 miles or more, one way, from the employee’s place of residence.

Actual charges for parking, tolls, and public transportation accompanied by a receipt.

§ 3. Mileage Reimbursement Pursuant to 39­A M.R.S.A. § 315

Reasonable mileage expense reimbursement pursuant to 39-A M.R.S.A. § 315 shall be $.46 per mile.

§ 4. Expenses for Employees Attending a Board Appointed Examination Pursuant to 39­ A M.R.S.A. § 611

Expenses incurred by the employee attending a Board appointed examination pursuant to Section 611 are to be paid for by the employer. The following rates of reimbursement shall apply for travel:

$.46 per mile for mileage reimbursements.

Actual costs or a maximum of $120.00 per evening for overnight lodging. Reimbursement for overnight lodging is allowed only when the employee has traveled 150 miles or more, one way, from the employee's place of residence.

$6.00 for breakfast, $6.00 for lunch, and $16.00 for dinner. Reimbursement for meals is allowed only when the employee has traveled 50 miles or more, one way, from the employee's place of residence.

Actual charges for tolls, accompanied by a receipt.

Employees may be advanced funds to cover the expenses of travel by making a request to the employer. The employer shall make every effort to honor such requests in a timely manner.

EFFECTIVE DATE:

August 2, 1986

REPEALED AND REPLACED: May 10, 1988

AMENDED:

October 9, 1989

December 1, 1990 - Section3

February 11, 1992 - Section3

EFFECTIVE DATE (ELECTRONIC CONVERSION):

April 28, 1996

NON-SUBSTANTIVE CORRECTIONS:

September 12 and October 9, 1996 -- header added, “Sec.” changed to §, minor spelling. January 9, 2003 - character spacing only.

REPEAL AND REPLACE:

August 18, 2014 - filing 2014-167 – 186

AMENDED:

October 1, 2015 – filing 2015-1

AMENDED:

September 4, 2023 – filing 2023-148

Chapter 18 Examinations by Impartial Physician(s) Pursuant to 39-A MRSA Section 611

Code Me. R. 90-351 Ch. 18 Examinations by Impartial Physician(s) Pursuant to 39-a M.r.s.a. §611 {#sec-90-351-ch.-18 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 18}

§ 1. Administration

The Workers’ Compensation Board delegates authority for administration of 39­A M.R.S.A. §611 to the Deputy Director of Medical/Rehabilitation Services.

§ 2. Date of Injury

This Chapter is promulgated pursuant to 39-A M.R.S.A. §611. It shall apply to all requests for appointment of an impartial physician under §611 on or after the effective date of this Chapter, regardless of the employee’s date of injury.

§ 3. Assignment of Impartial Physician

1. Any party, including Administrative Law Judges, may request an examination by an impartial physician in a case involving occupational disease.

2. The request shall be submitted to the Deputy Director of Medical/Rehabilitation Services.

3. The Deputy Director of Medical/Rehabilitation Services shall verify that the claim involves occupational disease as defined by 39-A M.R.S.A. §603 and determine the applicability under 39-A M.R.S.A. §611.

4. If the Deputy Director of Medical/Rehabilitation Services determines that the claim does not conform to the definition of occupational disease according to 39-A M.R.S.A. §603, the request shall be denied and the parties notified.

5. If the disease is deemed to conform to the definition in §603, the Deputy Director of Medical/Rehabilitation Services may consult with an expert in occupational diseases to determine an appropriate physician or physicians with the expertise to perform the examination depending on the particular occupational disease involved in the request.

6. The Deputy Director of Medical/Rehabilitation Services shall have the authority to schedule the appointment with an out-of-state physician whenever appropriate.

7. The parties shall submit any medical records or other pertinent information to the examiner a minimum of seven (7) days prior to a scheduled examination. The medical records shall be organized in chronological order, or chronologically by provider and accompanied by an index.

8. The appointed physician shall examine the employee, inspect the industrial conditions under which the employee has worked, and review submitted medical records to properly determine the nature, extent, and probable duration of the occupational disease. In the medical findings, the physician shall include the likelihood of the origin of the disease in the employee’s work place and the date of incapacity.

9. Upon completion of the final examination, the examiner shall submit a written report to the employee, employer, and the Office of Medical/Rehabilitation Services no later than fourteen (14) days after completion of the examination.

10. The fee for the examination shall be submitted to the Deputy Director of the Office of Medical/Rehabilitation Services for review and determination of reasonableness. After review, the bill shall be forwarded to the employer and payment shall be made within 30 days of receipt.

11. The Deputy Director of Medical/Rehabilitation Services may order an autopsy be performed when a claim is made for death due to occupational disease, taking into consideration the sensitivities of the family, religious attitudes, and normal human feeling against exhumation of remains when making the decision.

History

• STATUTORY AUTHORITY: 39-A M.R.S. §§ 102 et seq.
• EFFECTIVE DATE: July 14, 1996
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2003 - character spacing only
• AMENDED: October 11, 2009 – filing 2009-537
• REPEALED AND REPLACED: August 18, 2014 – filing 2014-184
• AMENDED: September 1, 2018 – filing 2018-136

Chapter 19 Worker Advocates

Code Me. R. 90-351 Ch. 19 Worker Advocates {#sec-90-351-ch.-19 omnilex-key=us-me-regs-official--dept-independent-agencies--90-351 Ch. 19}

§ 1. Declining or ceasing assistance

An advocate or advocate attorney requesting permission to decline a case or cease representation of an employee pursuant to 39-A M.R.S.A. §153-A(6) or this rule shall send a copy of the written request to decline or cease assistance to the employee at the same time the advocate or advocate attorney sends the written request to the staff attorney.

In addition to the case management authority established in 39-A M.R.S.A. §153-A(6), an advocate or advocate attorney may, with the written approval of the staff attorney, decline cases or cease assistance to an employee when the advocate or advocate attorney finds:

withdrawal can be accomplished without material adverse effect on

the interests of the employee;

the employee persists in a course of action involving the advocate’s or advocate attorney’s services that the advocate or advocate attorney reasonably believes is criminal or fraudulent;

the employee has used the advocate’s or advocate attorney’s services to perpetrate a crime or fraud; or,

the employee fails substantially to fulfill an obligation to the advocate or advocate attorney regarding the advocate’s or advocate attorney’s services and has been given reasonable warning that the advocate or advocate attorney will withdraw unless the obligation is fulfilled.

Upon termination of representation, an advocate or advocate attorney shall take steps to the extent reasonably practicable to protect an employee’s interests, including giving reasonable notice to the employee, allowing time to find alternate representation and returning the employee’s file.

EFFECTIVE DATE:

August 14, 2014 – filing 2014-185

90-429 Board of Licensure of Water System Operators (under the jurisdiction the Department of Health and Human Services)

Chapter 1 Water System Operators Licensing Rule

Code Me. R. 90-429 Ch. 1 Water System Operators Licensing Rule {#sec-90-429-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--90-429 Ch. 1}

State of Maine

WATER SYSTEM OPERATORS LICENSING RULE

90-429 CODE OF MAINE RULES Chapter 1

Board of Licensure of Water System Operators

Last Amended: July 1, 2018

STATE OF MAINE

WATER SYSTEM OPERATORS LICENSING RULE

SUMMARY STATEMENT

This rule is designed to regulate the licensing of operators of water treatment systems and water distribution systems serving the public.

AUTHORITY

22 M.R.S.§2628

Last Amended: July 1, 2018

Section Page

1. ADMINISTRATION 1

A. Rule 1

B. Constitutionality Clause. 1

C. Applicability 1

2. DEFINITIONS 2

3. WATER SYSTEM CLASSIFICATION 4

A. Classification 4

B. Public Water System Classes 4

4. OPERATOR LICENSE CLASSIFICATION and STATUS 5

A. License Classification 5

B. License Status 5

5. LICENSING REQUIREMENTS 7

A. Application Requirements 7

B. Licensure After Revocation 7

C. Educational Requirements 7

D. Examination Requirements 7

E. Experience Requirements 7

6. LICENSING PROCEDURE 9

A. Application for Initial, Upgrade, OIT Licenses 9

B. Reciprocity 9

C. License Period 9

D. Renewal of Licenses 9

E. Training Contact Hours 10

F. Fees 11

7. ENFORCEMENT............................................................................................................ 12

A. Violations 12

B. Suspension or Revocation 12

C. Determination of Action 12

D. Formal Complaint Procedure 12

8. ADMINISTRATIVE APPEALS 13

APPENDIX A a

SECTION 1

ADMINISTRATION

A. RULE - The Board, in accordance with 22 M.R.S. §2628 and any other State laws, shall make such rules that are reasonably necessary to carry out the intent of the law.

B. CONSTITUTIONALITY CLAUSE - If any section, subsection, sentence, clause, phrase or portion of this rule is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this rule.

C. APPLICABILITY

1. The Board shall license persons to serve as operators of public water systems. The types of public water systems which are required to retain licensed operators are identified in the Department of Health and Human Services Rules Relating To Drinking Water , 10‑144 C.M.R. Chapter 231. It shall be unlawful for any supplier of water so designated to operate a public water system, unless the operator is duly licensed by the Board.

2. Pursuant to 22 M.R.S. §2623, it shall be unlawful for any person to perform the duties of an operator without being duly licensed as required under this rule.

SECTION 2

DEFINITIONS

AERATION - The process of adding air to water.

BOARD - Maine Board of Licensure of Water System Operators.

COMMISSIONER - The Commissioner of the Maine Department of Health and Human Services or the Commissioner’s designee.

DEPARTMENT - Maine Department of Health and Human Services.

DIATOMACEOUS EARTH FILTERS - A process resulting in substantial particulate removal in which a precoat cake of diatomaceous earth filter media is deposited on a support membrane septum, and while the water is filtered by passing through the cake on the septum, additional filter media known as body feed is continuously added to the feed water to maintain the permeability of the filter cake.

DISTRIBUTION SYSTEM - A system of pipes and appurtenances by which a potable water supply is distributed to customers.

DIRECT FILTRATION - A series of processes including coagulation and filtration, but excluding sedimentation, resulting in substantial particulate removal.

DISSOLVED AIR FLOTATION - Process of solids removal wherein dissolved air is added to the clarifier from the bottom of the basin, causing suspended particles to rise to the surface and be removed by skimming.

HORIZONTAL FLOW - Flow of water in a horizontal direction through a rectangular or round sedimentation/clarification basin.

INJECTION MIXERS - Use of perforated tubes or nozzles to disperse a chemical into the water being treated.

IN-LINE BLENDER MIXER - Stationary blender used for coagulant mixing.

MECHANICAL DEWATERING - The use of mechanical devices such as belt filter presses, plate filter presses, centrifuges or other rotational mechanisms to force the separation of solids (sludge) from liquids (water).

MECHANICAL MIXERS - Paddles, turbines, and propellers used in coagulation facilities.

OPERATOR - An individual either employed or retained by a public water system, who, as part of his or her job duties, is assigned the responsibilities for operational activities that will directly impact the quality and/or quantity of water provided to consumers.

PUBLIC WATER SYSTEM - Is hereby incorporated by reference as defined in Title 22, Chapter 601, Section 2601 (8) of the Maine Revised Statutes.

pH ADJUSTMENT - The alteration of the pH of the raw water, or pre-finished filtered water or for corrosion control by mechanical or chemical procedures, to enhance the performance of the treatment process.

RECIPROCITY - Licensing of a person who has passed a written examination in another state and meets the experience and education requirements of this rule.

RENEWAL PERIOD - The period of time between license issue date and the submitted date for renewal or reinstatement of a license.

REVERSE OSMOSIS - Passage of water from a concentrated solution through a semi-permeable membrane to fresh water by the application of pressure.

SCADA INSTRUMENTATION - Supervisory control and data acquisition system used to monitor and control remote water facility sites.

SOLID-CONTACT SEDIMENTATION - Unit which combines the coagulation, flocculation, and sedimentation processes in a single basin which is either rectangular or circular in shape. This process may be either gravity, upflow or pressurized. Flow is through a solids blanket of flocculated, suspended solids or buoyant medium.

SOLIDS COMPOSTING - Mixing of sludge with decaying organic material for eventual use as a soil amendment.

STABILITY OR CORROSION CONTROL - The removal of dissolved gases or addition of chemicals to render finished water non-corrosive or the addition of chemicals to form a protective coating inside pipes.

TUBE SEDIMENTATION - Tubes or inclined plates placed in rectangular or circular sedimentation basins to improve settling efficiency.

TRAINING CONTACT HOUR (TCH) - One clock hour of contact: Contact is defined as interaction between a learner and instructor, or between a learner and materials, which have been prepared to facilitate learning. Contact implies two-way communication, in order for the learner to receive feedback, to monitor and assess learning.

TREATMENT PROCESS AND/OR IN-LINE TREATMENT - Portion of the drinking water system containing various chemical additions and/or filtration processes, exclusive of transmission or distribution, which alters the physical, chemical, radiological or microbiological quality.

SECTION 3

WATER SYSTEM CLASSIFICATION

A. CLASSIFICATION

1. Public water systems shall be classified according to two disciplines – Treatment and Distribution.

2. Public water systems shall be classified as set forth in this rule, based on system capacity, source, complexity of treatment, and other physical conditions affecting public water systems.

3. Systems shall retain an operator or operators duly licensed for Treatment System and Distribution System at the class level designated for the system.

4. The Board shall assign classification value points to treatment technologies not listed in the point rating schedule on a case-by-case basis.

5. If a treatment system or distribution system will be upgraded in class as a result of changes being made to the system, and the operator of that system does not hold the appropriate license for the upgraded class, the operator must upgrade the license by passing the appropriate level(s) of examination within 90 days of the system upgrade. Failure to pass the appropriate examination will make the operator ineligible to continue to operate the system. The system must then employ a licensed operator or enter into a contractual agreement with a licensed operator of proper classification.

B. PUBLIC WATER SYSTEM CLASSES

1.Treatment classification is determined by a point system, as outlined in Appendix A and Table 1 below:

Table 1. Treatment Classification

Classification

Total Points (From App. A.)

Very Small Water System (VSWS)

19 or less and serving <500 Pop.

Class I

19 or less

Class II

20 to 34

Class III

35 to 47

Class IV

48 or more

2. Distribution classification is based on population served as outlined in Table 2 below.

Table 2. Distribution Classification

Classification

Population Served

Class I

1,500 and less

Class II

1,501 to 15,000

Class III

15,001 to 50,000

Class IV

50,001 and over

SECTION 4

OPERATOR LICENSE CLASSIFICATION AND STATUS

A. LICENSE CLASSIFICATION

1. There shall be five classifications and two disciplines of operators to parallel the classifications of public water systems.

2. The classifications and disciplines of operators are:

(a) Very Small Water System (VSWS) licensed operators shall be considered qualified to supervise and operate a Very Small Water System.

(b) Class I-IV licensed operators may hold licenses in either or both disciplines: Water treatment system and Water distribution system. (See Table 1 and Table 2 of this rule).

(c) The classification and discipline of licenses indicate the types of systems they may operate.

(d) Operators in responsible charge must hold a license of the proper classification and discipline for which they are responsible.

(e) Operators may be in responsible charge of systems in a lower classification than the operator’s license.

3. The two types of each classification are:

Full licensure: a person has met all education, examination and experience requirements and is considered qualified to be in responsible charge of a public water system equal to or less than the classification of the license.

Operator-in-Training: a person has met the education and examination requirements, but does not meet the experience requirements for the license.

(i) An operator with an Operator-in-Training license is not authorized to be in responsible charge of a classified public water system.

(ii) Upon completion of the required experience, an Operator-in-Training may apply to the Board for the full licensure.

B. LICENSE STATUS

1. Active: Operators in an “active” status are in good standing and have maintained their license through training contact hours and payment of fees.

2. Expired: Operators in an “expired” status have not renewed their license. Operators with expired licenses may not be in responsible charge of a water system. An operator whose license has expired for more than two years will be required to retest to be an active licensee.

3. Restricted: A restricted license is issued to a Very Small Water System licensed operator who qualified for the education waiver approved by the Department in 2007, 2008, 2009, 2010, or 2011. Restricted licenses shall be site specific and non-transferable.

SECTION 5

LICENSING REQUIREMENTS

A. LICENSURE CRITERIA. License applicants must meet education, examination and experience criteria for full licensure. Operator-in-Training status may be granted before work-related experience is achieved. The Board shall grant licenses to persons based upon education, examination, and relevant experience.

B. LICENSURE AFTER REVOCATION. An operator whose license has been revoked for disciplinary purposes will not be allowed to sit for an examination for three years from the effective date of revocation.

C. EDUCATIONAL REQUIREMENTS. All applicants must submit satisfactory evidence of graduation from high school or an equivalency certificate, except as otherwise provided in Section 5, subsection (E)(4) below.

D. EXAMINATION REQUIREMENTS

1. Applicants must pass an examination for the class and discipline for which licensure is sought. The Board may choose to accept examinations in sequential or direct-entry format.

2. Exam results will be accepted to apply to license application for one year after the date of the examination.

3. Examinations will be reviewed by the Board to assure adequate subject matter content to cover the fundamentals of operation of a water system relating to the source, pumping, distribution, disinfection, water treatment, public health, administration and appropriate rules applicable to water systems.

4. The Board may enter into contracts with third parties for the development, scoring and proctoring of exams. Examination results will be reported to the examinee and the Board. All partners in these contracts must meet the requirements of the Board and other partners.

(a) The Board will assure the availability of examinations annually.

(b) The Board will provide notice of examination application procedures.

5. Applicants for licensure must submit proof of satisfactory completion of a Board- approved examination.

E. EXPERIENCE REQUIREMENTS

1. Applicants must detail experience in public water systems or detail related experience.

2. Work operator experience in a public water system is defined as that gained in actual performance of operational activities within any public water system.

3. Related experience may include, but is not limited to, wastewater treatment plant operations, pilot studies, design, planning, construction and other related technical disciplines.

4. Each applicant shall satisfy the experience requirements for the class of license requested. Education may be substituted for experience as set forth below. Transcripts or other proof of completion must be provided to the Board.

Post high school education in approved areas of engineering, science, or related fields: 60 semester hours or equivalent equals one year of experience.

Specialized training courses will be evaluated on an individual basis.

All experience and/or education credentials submitted in support of applications that are not specified in this section shall be evaluated on an individual basis.

5. Full License Requirements:

(a) VSWS Operator: Six months of operating experience in a VSWS or higher water system or one year of related experience.

(b) Class I Operator: One year of operating experience in a Class I or higher water system or two years of related experience.

(c) Class II Operator: Two years of operating experience in a Class I or higher water system or four years of related experience.

(d) Class III Operator: Three years of operating experience at a Class I or higher water system or six years of related experience.

(e) Class IV Operator: Four years of operating experience in a Class I or higher water system or eight years of related experience.

6. Operator-in-Training Requirements: Persons with less than the required experience will be granted a license status of Operator-in-Training.

SECTION 6

LICENSING PROCEDURE

A. APPLICATION FOR INITIAL, UPGRADE AND OPERATOR-IN-TRAINING LICENSES

1. Application forms for licensure are available at the Board’s website at http://www.maine.gov/dhhs/mecdc/environmental-health/dwp/professionals/waterOperators.shtml. Applications must be accompanied by materials supporting education and examination information (see Section 5, subsections (C)-(E) above) and include payment of fee. Incomplete or illegible applications will be returned to the applicant.

2. Application must be made for initial licensure; to upgrade to a higher class of the same discipline; to add a discipline to an existing license or to upgrade from Operator-in-Training to full license status.

3. Applicant Review: Upon review of the applicant’s education, examination and experience, the Board shall issue biennial licenses to individuals to perform the duties of operators. The license shall indicate the classification level of the systems or parts of systems for which the individual is qualified to act as an operator and if the licensee is an Operator-in-Training.

B . RECIPROCITY

The Board may issue a license, upon application, without examination in a comparable classification to any person who holds a license or certificate issued by any state, territory or possession of the United States, or another country, if, in the judgment of the Board, the requirements for licensure of operators of public water systems in that jurisdiction are equal or greater than those outlined in this rule.

C. LICENSE PERIOD:

1. The initial license period shall not exceed two years and shall be based upon the biennial licensing period, as defined by 22 M.R.S. §2625.

2. Upgrading a license within a license period does not extend the renewal date.

3. The cycle of renewal does not change with late or reinstated licenses.

4. Renewals are for a two-year period. All licenses expire on December 31 of each biennial period.

D. RENEWAL OF LICENSES. This sectionapplies to full, Operator-in-Training and restricted licenses.

1. The Board shall notify licensed water operators of the date of expiration of that person’s license and the fee required for renewal for a two-year period. The notice shall be mailed to the person’s last-known address at least 60 days in advance of the expiration date of the license.

2. Licensees are responsible for updating license contact information with any changes within the renewal period.

3. Applications for license renewal will not be processed before 60 days in advance of the expiration date of the license.

4. The licensee shall be responsible for providing proof of completion of the required Training Contact Hours (TCH) for their classification of license at the time of renewal. The Board will, at its discretion, verify submitted material for accuracy, applicability and acceptability.

5. License holders who allow their licenses to expire shall be reinstated upon payment of the reinstatement and renewal fees and upon proof the applicant has completed the required TCH provision pursuant to Section 6(E)(2) of this rule.

6. Licenses that remain expired for two years or longer will not be renewed. Persons with expired licenses shall be required to submit an application for initial licensure.

E. TRAINING CONTACT HOURS

1. TCH must be earned for the highest license held. Operators holding both a Treatment System and Distribution System license shall be required to complete Training Contact Hours for only one category.

2. Prior to licensure renewal, the applicant, including holders of restricted VSWS and Operator-in-Training licenses, shall provide proof of completion of the following requirements during the last renewal period:

VSWS 6 Training Contact Hours

Class I

12 Training Contact Hours

Class II

18 Training Contact Hours

Class III

24 Training Contact Hours

Class IV

24 Training Contact Hours

3. TCH may be earned as follows:

(a) One continuing education unit (CEU) equals 10 TCH.

(b) One college level credit in chemistry, mathematics, biology, engineering or environmental sciences shall be equal to 10 TCH.

(c) Technical meetings, workshops, seminars, courses and classes as approved by the Board, shall be equal to the amount of hours attended with the maximum credit being 6 TCH per technical meeting per day. A description of the course, material covered, institution offering the course and instructor credentials must be submitted to the Board for approval.

(d) Successful completion of self-study educational courses offered by a technical school, university, or correspondence school.

(e) Other waterworks seminars and education courses. A description of the course, material covered, institution offering the course and instructor credentials must be submitted to the Board.

4. Training shall be relevant. One hour of relevant training equals one TCH. In order for training to be approved by the Board and count as Training Contact Hours, it must comply with the following criteria:

The training shows a direct link to water quality, water supply, or protection of public health; and

The training is relevant to managing the operation or maintenance of public water systems; or

The training is relevant to the operation or maintenance of public water systems.

5. Excess TCH cannot be carried from one renewal period to the next period.

F. FEES

1. Payment. Fees shall accompany all applications for licensure or examination.

2. Fees for Licensure.

(a) Fees are applied per individual, not per discipline held.

(b) The fee structure for licensure is:

(i) Initial Licensure $75

(ii) Initial Licensure by Reciprocity $75

(iii) Upgrade to License $20

(iv) Biennial Renewal of License $75

(v) Reinstatement of License $50

In addition to past renewal fees

(vi) Status upgrade from Operator-In-Training to Full $20

(c) Reinstatement of Licensure: The licensee must pay a $50 late fee in addition to the biennial renewal fee to reinstate an expired license.

3. Fees For Examinations.

Fees are applied per examination (class and discipline). The fee for each examination is $95.

(b) Fees for non-Board proctored examinations will be established by the proctor and paid directly to the proctor.

SECTION 7

ENFORCEMENT

A. VIOLATIONS: The Board may take action, including issuing letters of reprimand, should an operator violate this rule. Violations providing a basis for enforcement action include, but are not limited to, the following:

1. Falsification of records and or credentials;

2. Selective sampling or sample tampering;

3. Dangerous acts or failure to report environmental damage;

4. False or misleading statements;

5. Failure to utilize proper process control;

6. Lack of maintenance;

7. Non-compliance with a federal, State or local statute or regulation relating to a public water system;

8. Commission of a crime, which may affect the public water system; or

9. Coercion, bribery, or extortion, which relates to the operation or management of the water system.

B. REVOCATION AND SUSPENSION. The Board may suspend or revoke the license of an operator, in accordance with 22 M.R.S. §2625 or 5 M.R.S. §§5301-5304.

C. Determination of action. The Board will consider the extent of deviation and potential for harm when deciding to take enforcement action.

D. Formal complaint procedure. Pursuant to 5 M.R.S., Chapter 375, Subchapter 5, the Board may establish a procedure by which formal complaints against water operator licensees are accepted and processed.

SECTION 8

ADMINISTRATIVE APPEALS

A. The Board shall provide written notice to operators or applicants for licensure of a decision to suspend, revoke or deny a license. The notice shall be sent by regular mail and shall include notice of opportunity for appeal in accordance with this section.

B. An operator or applicant for licensure who is aggrieved by a decision of the Board may appeal by filing a written request. The request shall be filed with the chair of the Board within thirty days of the postmarked date of the written notice of decision from the Board. The request shall specify all issues being raised on appeal. Failure to raise any issue shall be deemed a waiver.

C. The Board shall notify the appellant of the time, place and date of the appeal hearing within thirty days of receipt of the written request for appeal.

D. All hearings and appeals shall be conducted in accordance with the Maine Administrative Procedure Act , 5 M.R.S, Ch. 375, §§ 9051-9064.

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 2622 and 2628
• EFFECTIVE DATE: November 17, 1983
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• AMENDED: January 1, 2000
• AMENDED: September 30, 2000
• AMENDED: February 5, 2003 - filing 2003-34
• NON-SUBSTANTIVE CORRECTIONS: March 4, 2003 - cover page address, effective date
• AMENDED: June 19, 2004 - filing 2004-214
• AMENDED: June 5, 2007 – filing 2007-231
• AMENDED: December 27, 2011 – filing 2011-476
• AMENDED: July 1, 2018 – filing 2018-080
• AMENDED: Appendix ATreatment System Classification Point ValuesItemPointsSize ( 2 point minimum to 10 point maximum)Maximum population (1 point minimum to 5 points maximum)1 point per 10,000Design flow average (1 point minimum to 5 points maximum)1 point per MGDWater Supply SourcesGroundwater3Groundwater under the influence of surface water5Surface Water5Chemical Treatment / Addition ProcessesFluoridation5Disinfection:Chlorination5Chloramination10Chlorine dioxide5Ultraviolet light5Ozonation10pH adjustment (calcium carbonate, carbon dioxide, hydrochloric acid, calcium oxide, calcium hydroxide, sodium hydroxide, sulfuric acid, other)5Stability or corrosion control (calcium oxide, calcium hydroxide, sodium or potassium carbonate, sodium hexametaphosphate, other)5Coagulation & Flocculation ProcessChemical addition (aluminum sulfate, bauxite, ferrous sulfate, ferric sulfate, calcium oxide, bentonite, calcium carbonate, carbon dioxide, sodium silicate, other)1 point per chemical coagulant added(5 points max.)Rapid mix units:Mechanical mixers3Injection mixers2In-line blender mixers2Flocculation tanks:Hydraulic flocculators2Mechanical flocculators3Clarification / Sedimentation ProcessHorizontal Flow (rectangular basins)5Horizontal Flow (round basins)7Solid-contact 15Inclined-plate, tube 10Dissolved air flotation30Filtration ProcessSingle media filtration3Dual or mixed media filtration5Microscreens5Diatomaceous earth filters5Cartridge filters As pre-filter to another process As microbiological removal 25Slow sand filters5ItemPointsDirect filtration5Pressure or greensand filtration5Other Treatment ProcessesAeration3Packed tower aeration5Ion exchange / softening (Cation, Anion, Adsorptive) To control Primary MCL contaminant To control secondary MCL contaminant52Adsorptive media5Lime - soda ash softening5Membrane filtration- reverse osmosis, micro,ultra,nano10Powdered activated carbon5Other Processes0 to 15Residuals DisposalDischarge to lagoons5Discharge to lagoons and then raw water source8Discharge to raw water10Disposal to sanitary sewer3Mechanical dewatering5On-site disposal5Land application5Solids composting5Facility CharacteristicsInstrumentation:The use of SCADA or similar instrumentation to provide data with no process operation0The use of SCADA or similar instrumentation to provide data with limited process operation2The use of SCADA or similar instrumentation to provide data with moderate process operation4The use of SCADA or similar instrumentation to provide data with extensive or total process operation6Gravity Fed Systems Total atmospheric storage less than average day design flow5

90-564 Clean-Up and Response Fund Review Board (formerly Fund Insurance Review Board)

Chapter 3 Appeals Procedure

Code Me. R. 90-564 Ch. 3 Appeals Procedure {#sec-90-564-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--90-564 Ch. 3}

SUMMARY: This chapter outlines the procedures governing the review of appeals filed with Clean-up and Response Fund Review Board of insurance claims-related decisions of the Commissioner of the Department of Environmental Protection and the State Fire Marshal as set forth in the Oil Storage Facilities and Ground Water Protection Act , 38 M.R.S. §568-B.

1. Appeals Panel

Pursuant to 38 M.R.S. §568-B, the Appeals Panel of the Clean-up and Response Fund Review Board (“Appeals Panel” or “Panel”) shall hear and decide appeals of insurance claims-related decisions of the Commissioner of the Department of Environmental Protection (“Commissioner”) and the State Fire Marshal including but not limited to decisions on eligibility for coverage, eligibility for costs and waiver and amount of deductible. The Appeals Panel shall consist of the four public members of the Board as designated pursuant to 38 M.R.S. §568-B(1)(B) and (2-C).

2. Filing of Submissions and Computation of Time

Filing of Submissions: Whenever this rule requires or allows the filing or delivery of any submission, that filing or delivery is complete:

Upon the Appeals Panel, when the Appeals Panel receives the submission by the close of business on the due date by:

first-class mail or comparable commercial delivery;

in-hand delivery; or

fax or electronic communication confirmed by a delivery receipt.

The risk of a submission not being received by the Appeals Panel in a timely manner is on the sender, regardless of the method used.

Upon the Commissioner, State Fire Marshal, appellant or other party, when the submission is sent to the recipient by:

first-class mail or comparable commercial delivery;

in-hand delivery; or

fax or electronic communication confirmed by a delivery receipt.

B. Computation of Time: For the purpose of this rule, “days” are calendar days unless otherwise specified. In computing any period of time prescribed or allowed by this rule, the day of the act or event that starts the period is not included. The last day of the period so computed is included unless it is not a business day (or the state office at which the filing must be made is partially or fully closed for business), in which event the period runs until the close of business the next full business day. “Business day” excludes Saturdays, Sundays, state holidays and any other day state offices are closed for business.

3. Notice of Appeal

A. Filing of Notice of Appeal: Pursuant to 38 M.R.S. §568-B(2-C), an appeal of the Commissioner’s or State Fire Marshal’s decision must be filed with the Appeals Panel within 30 days after the applicant receives the decision. A copy of the notice of appeal, and all other information submitted by the appellant, shall be simultaneously delivered to the Commissioner or State Fire Marshal, whichever agency issued the order, . Unless an exception to the filing deadline applies as set forth in sections 3(B) and 3(C) of this rule, a decision of the Commissioner or State Fire Marshal becomes final if no appeal is filed within the 30-day period.

B. Extension of Appeal Period When Request Made Before Appeal Period Expires. If the request for an extension is received by the Appeals Panel before the original appeal deadline expires, for good cause shown, the Chair of the Panel or designee may, in the Chair’s or designee’s discretion, extend the time for filing an appeal by no more than 30 days from the expiration of the original appeal period. The Chair’s or designee’s refusal to extend the filing deadline is not appealable to the full Appeals Panel.

C. Extension of Appeal Period When Request Made After Appeal Period Expires. If the request for an extension is received by the Appeals Panel after the original appeal deadline expires, for good cause shown, the Appeals Panel may in its discretion extend the time for filing an appeal by no more than 30 days from the expiration of the original appeal period,.

D. Contents of the Notice of Appeal: The notice of appeal shall include, but not be limited to the following:

1. A copy of the Commissioner’s or State Fire Marshal’s decision;

2. The specific grounds for the appeal and a brief statement of the appellant’s position;

3. The remedy sought; and

4. If any new evidence is to be offered, the information required in section 5(B) below.

E. Motion to Request a Complete Notice of Appeal: If any party believes a notice of appeal does not meet the requirements of section 3(D), within 15 days of receipt of the notice a party may file a motion with the Appeals Panel requesting a complete notice of appeal. The appellant shall file a reply or an amended notice of appeal within 15 days of receipt of the motion. If the issues raised by the motion remain unresolved, the motion will be considered by the Panel at its next regularly scheduled meeting, at which time the Appeals Panel may, by majority vote, dismiss the appeal. The filing dates specified in the remainder of this rule are stayed pending the Panel’s determination that a complete notice of appeal has been filed.

4. Parties

A. Parties as a Matter of Right: The parties to the appeals proceeding shall consist of the appellant and the Commissioner or State Fire Marshal, as applicable. Upon application received by the Appeals Panel at least 10 days prior to the scheduled hearing, the Panel shall allow any person showing that he or she is or may be, or is a member of a class which is or may be, substantially and directly affected by the proceeding, or any other agency of federal, state or local government, to intervene as a party to the proceeding.

B. Participation of Interested Persons as Parties: At its discretion, the Appeals Panel may allow any other interested person to intervene and participate as a full or limited party. A request for permission to participate as a party and the reasons for the request must be received by the Panel at least 10 days before the hearing.

C. Statement of Interested Persons: At its discretion, the Appeals Panel may allow statements by members of the public at a hearing, even if those individuals are not formally parties to the proceeding.

5. Record

A. Record Before the Commissioner and State Fire Marshal: The record before the Appeals Panel shall consist of the notice of appeal and the entire record that was developed before the Commissioner and the State Fire Marshal at the time the decision which is being appealed was made. However, the Appeals Panel will review only those parts of the record which have been forwarded to the Panel by the parties. Therefore, within 15 days of the Commissioner’s or State Fire Marshal’s receipt of a complete notice of appeal, the Commissioner or State Fire Marshal shall file with the Appeals Panel those parts of the record which the Commissioner or State Fire Marshal deems pertinent to the issues presented in the notice of appeal, hereinafter referred to as the appellate record. The Commissioner or State Fire Marshal shall simultaneously deliver a copy of the appellate record to the appellant.

Instead of filing the record within 15 days of receipt of a complete notice of appeal, the Commissioner or State Fire Marshal may file a request for an extension of time in which to file the record so long as the extension does not seek permission to file the record less than 30 days prior to the anticipated hearing date, which is the next scheduled meeting of the Appeals Panel. The request shall indicate whether any parties object to the request. Requests shall be ruled upon by the Chair of the Panel or the Chair’s designee, who shall notify the parties of the decision.

Within 10 days of receiving the appellate record from the Commissioner or State Fire Marshal, the appellant shall file with the Appeals Panel those documents from the record that was developed before the Commissioner and/or State Fire Marshal which the appellant deems necessary to supplement the appellate record as provided by the Commissioner or State Fire Marshal. The appellant shall simultaneously deliver a copy of the supplemental documents filed to the Commissioner or State Fire Marshal.. Upon filing of the record pursuant to this paragraph, or expiration of these time periods, whichever first occurs, the appeal shall be deemed complete and ready for action by the Appeals Panel.

B. New Evidence: The Appeals Panel will not accept any new evidence unless it finds that it is relevant and that such evidence could not have been submitted to the Commissioner or State Fire Marshal as part of the application process. If the appellant seeks to introduce new evidence in support of its appeal, the appellant shall provide an offer of proof as part of the notice of appeal which shall contain the following information: (1) a summary of what the evidence is expected to show and why it is relevant to the appeal; (2) the nature or form of such evidence, i.e., whether the evidence is documentary or testimonial or both; (3) the reason(s) why such evidence could not have been presented to the Commissioner or State Fire Marshal; and (4) copies of any documents which the appellant proposes to offer as new evidence. At the hearing, the Appeals Panel shall determine, by majority vote, whether it will accept the new evidence or remand the proceeding to the Commissioner or State Fire Marshal for consideration of such evidence. Written testimonial evidence shall not be admitted into the record unless the author of such testimony is available for cross-examination or subject to subpoena, except for good cause.

C. Statement of Position: Any party may file a statement of position on the appeal for inclusion in the record. The statement of position must be received by the Appeals Panel and all parties to the proceeding at least 10 days before the hearing.

D. Documents prepared by Staff: Summary documents that are prepared by the staff of the Appeals Panel and that are submitted to the Appeals Panel shall be included in the record and served upon all parties.

E. Post-hearing Submissions: The Appeals Panel may, by majority vote taken at the hearing, agree to accept additional material for consideration after the close of the hearing. The date by which any such submission must be received by the Panel will be established at the hearing.

F. Consequences of Failure to Meet Filing Deadline: Except for documents referred to in subsection D and E, if any submissions for the record have not been received by the Appeals Panel or other parties to the proceeding within the applicable time period set forth in these rules, the Appeals Panel may refuse to accept and consider such submissions or the Chair of the Panel or designee may postpone the hearing until a later date.

6. Scope of Review

Except for issues which by law may be raised at any time, such as jurisdictional issues, or issues raised by new evidence accepted by the Appeals Panel, the review by the Appeals Panel shall be limited to issues raised in the notice of appeal. The review of the record on such issues shall be de novo. When assignment of deductibles is appealed, the burden of proof is on the Commissioner or State Fire Marshal as to which deductibles apply. For all other appeals, the burden of proof is on the appellant.

7. Alternative Dispute Resolution

If the appellant and Commissioner or State Fire Marshal agree to use mediation or another form of alternative dispute resolution in an attempt to resolve an appeal and so notify the Appeals Panel, the Appeals Panel will not hear the matter until the conclusion of that effort, provided the effort at resolution does not extend beyond six months from the date of filing of the appeal. If the appellant and Commissioner or State Fire Marshal wish to request additional time beyond six months, they shall file a request with the Appeals Panel, which request shall be ruled upon by the Chair of the Panel or designee. The Appeals Panel may accept, reject or modify any mediated settlement that does not include withdrawal of the appeal.

8. Hearing

A. Date of Hearing: An appeal shall be scheduled for hearing at the next meeting of the Appeals Panel following the filing of a complete record pursuant to section 5(A), unless the appeal is filed less than 30 days before the meeting, the Appeals Panel and the appellant agree to a continuance, or the Panel has been notified that the parties have agreed to use alternative dispute resolution.

B. Continuances: A request by the appellant for a continuance must be received by the Appeals Panel at least 3 days prior to the hearing. Requests received less than 3 days prior to the hearing may be granted only for sudden emergencies or other exceptional circumstances. Requests shall be ruled upon by the Chair of the Panel or designee. If a continuance is granted, the hearing shall be rescheduled for the next meeting of the Panel at which time is available.

C. Witnesses: All witnesses shall be sworn.

D. New Evidence: Directly after the commencement of the hearing, if there has been a request to consider new evidence, the Appeals Panel shall determine, by majority vote, whether to accept such evidence pursuant to section 5(B).

E. Format of the Hearing: Unless a different format is warranted by the circumstances, the hearing shall be structured as follows. After consideration of whether new evidence may be presented as set forth in subsection D, the appellant shall be present and make a statement, either personally or through counsel, explaining the appeal. Witnesses or new evidence shall be presented at this time, if permitted by the Panel. The Commissioner or State Fire Marshal or their designees, the Appeals Panel, staff and counsel may ask questions of the appellant and any witness. At the conclusion of the presentation of the appellant’s case, the Commissioner or State Fire Marshal or their designees shall present the Commissioner’s or State Fire Marshal’s position. The appellant or counsel for the appellant, the Appeals Panel, staff and counsel may ask questions of the Commissioner or State Fire Marshal and any witness. All hearings shall be recorded.

9. Decision

A. Voting: A quorum consisting of a majority of the members currently serving on the Appeals Panel shall be necessary for action by the Panel. A tie vote constitutes denial of the appeal unless a majority of the Appeals Panel members subsequently vote at that meeting for another action on the appeal or to table the appeal until another meeting. In the case of a tie vote, the findings and reasoning of the Appeals Panel members voting to deny the appeal constitute the findings and reasoning for denial of the appeal.

B. Participation by Panel Members: No member of the Appeals Panel may participate in review of an appeal if the member has a direct or indirect pecuniary interest in the outcome of the appeal, or if the member represents, or is member of a firm or association which represents, the interest of any of the parties before the Panel in the appeal under consideration. Where a Panel member does not voluntarily abstain in such situations, the remaining members of the Appeals Panel may determine, by majority vote, whether abstention is required.

C. Action of the Panel: After consideration of the appeal, the Appeals Panel may take the following action by majority vote:

1. Grant the appeal in whole or in part;

2. Deny the appeal in whole or in part;

3. Remand the appeal back to the Commissioner or State Fire Marshal; or

4. Continue the appeal to a later date.

D. Effective Date of Decision: The decision of the Appeals Panel is not final until the Chair or the Chair’s designee signs the written decision.

E. Judicial Review: Decisions of the Appeals Panel are subject to judicial review pursuant to Title 5, Chapter 375, subchapter VII.

10. Motion for Reconsideration

A. Basis for Motion: A motion for reconsideration will not be considered by the Appeals Panel unless it is based upon one or both of the following grounds:

1. New or additional evidence exists that was not considered during the appeal and that could not have been presented to the Panel at the time of the appeal; or

2. The Panel’s decision contains an error of law or relies on facts contrary to those in the record.

B. Filing of Motion: A motion for reconsideration must be filed with the Appeals Panel within 30 days of receipt of the written decision of the Appeals Panel. A copy of any motion must be simultaneously delivered to the other parties to the proceeding.

C. Response to the Motion: Any party wishing to respond to a motion for reconsideration shall file its response within 20 days of the date the motion was filed with the Panel. A copy of any response filed must be simultaneously delivered to the other parties to the proceeding.

D. Hearing of the Motion: The parties shall be notified when the Appeals Panel will consider the motion for reconsideration. At the hearing, the Panel may, at its discretion, permit oral arguments by the parties or consider the motion based only upon the written submission. If the Appeals Panel votes to grant the motion to reconsider its decision, the Panel will reconsider the appeal on its merits at the same meeting, unless an evidentiary hearing is required.

E. Decision on the Motion: The decision of the Appeals Panel denying the motion for reconsideration will be reflected in the minutes of the meeting and no separate order will be issued. If the Panel votes to grant the motion, after further hearing if necessary, a new decision will be issued as set forth in section 9.

F. Effect of Filing a Motion: If a motion for reconsideration is filed, the Panel’s decision shall not be considered final and the period within which an appeal of the Panel’s decision must be filed in Superior Court does not begin to run. If the Panel denies the motion, the appellant has 30 days from receipt of notice of the Panel’s decision within which to appeal the decision to Superior Court.

11. Costs and Attorney Fees

Pursuant to 38 M.R.S. §568-B(2-C), if the Appeals Panel overturns the Commissioner’s or State Fire Marshal’s decision, reasonable costs, including reasonable attorney fees incurred from the time of a claims-related decision forward, will be paid by the fund for costs incurred in pursuing the appeal to the Appeals Panel. In order to receive payment, the prevailing party must submit documentation substantiating its costs and fees to the Appeals Panel for approval, with a copy to the Commissioner or State Fire Marshal, within 30 days of receipt of the Panel’s decision. Parties will be notified of the date of the meeting when the submission will be considered by the Panel. At such time, the Panel shall consider comments by the Commissioner or State Fire Marshal or their designees and the Panel’s staff regarding the reasonableness of the amount that has been submitted for approval. An hourly rate for “reasonable attorney fees” is the established hourly rate of the attorney, but may not exceed $200.00 per hour. However, the Panel has the right to approve less than the amount of the costs or fees requested based upon its determination of what is reasonable under the circumstances of a particular case. The decision of the Appeals Panel regarding attorney fees will be stated in the minutes of the meeting and no separate order will be issued.

History

• STATUTORY AUTHORITY: 38 M.R.S. §§ 568-A(3-A) and 568-B(1)
• STATUTORY AUTHORITY: As “Fund Insurance Review Board”:
• EFFECTIVE DATE: May 28, 1994
• REPEALED AND REPLACED: December 4, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: August 19, 1997 - minor spelling and punctuation.
• REPEALED AND REPLACED: April 22, 2003 - filing 2003-105
• AMENDED: June 16, 2013 – filing 2013-131
• AMENDED: Renamed as “Clean-Up and Response Fund Review Board”:
• AMENDED: May 20, 2017 – minor edits including new agency name, filing 2017-074
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 4 Oil Import Fees

Code Me. R. 90-564 Ch. 4 Oil Import Fees {#sec-90-564-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--90-564 Ch. 4}

SUMMARY: This rule increases oil import fees when the balance of the Maine Ground and Surface Waters Clean-up and Response Fund is $6,000,000 or less.

SECTION 1. LEGAL AUTHORITY

This rule is authorized under 38 M.R.S. §§ 568-B(2)(D) and 551(4).

SECTION 2. DEFINITIONS

The following terms as used in this rule shall have the following meaning:

Board. “Board” means the Clean-up and Response Fund Review Board created under 38 M.R.S. §568-B.

Commissioner. “Commissioner” means the commissioner of the Maine Department of Environmental Protection.

Fund. “Fund” means the Maine Ground and Surface Waters Clean-up and Response Fund established under 38 M.R.S. §551.

Gasoline. “Gasoline” means a volatile, highly flammable liquid with a flashpoint of less than 100° Fahrenheit obtained from the fractional distillation of petroleum.

Oil terminal facility. “Oil terminal facility” means any facility of any kind and related appurtenances, located in, or under the surface of any land or water, including submerged lands, which is used or capable of being used for the purpose of transferring, processing or refining oil, or for the purpose of storing the same, but does not include any facility used or capable of being used to store no more than 1500 barrels or 63,000 gallons, nor any facility not engaged in the transfer of oil to or from waters of the State of Maine. A vessel is considered an oil terminal facility only in the event of ship-to-ship transfer of oil, but only that vessel going to or coming from the place of ship-to-ship transfer and a permanent or fixed oil terminal facility. The term does not include vessels engaged in oil spill response activities.

SECTION 3. NOTICE OF IMPENDING SHORTFALL

Whenever the fund balance is reduced to $ 6 million or less, the commissioner shall notify persons subject to the fees under 38 M.R.S. §551(4).

Upon receipt of notice under section 3 of this rule, the following fees are assessed in addition to the fees assessed under 38 M.R.S. §551(4): 20¢ per barrel of gasoline; and 10¢ per barrel of other petroleum products except unrefined crude oil, liquid asphalt, and number 6 fuel oil.

The additional fee is assessed on oil terminal facility licensees who first transfer a product subject to the fee, and on persons required to register under §545-B who first transport a product subject to the fee into the State of Maine by rail or highway. The additional fee may be refunded on petroleum products exported from the State of Maine or on waste oil.

The additional fee shall become due and payable beginning the first day of the month following receipt of the section 3 notice provided the notice was received 15 days in advance. If not, the additional fees must be paid monthly thereafter at the same time and in the same manner as the fees assessed under 38 M.R.S. §551(4).

SECTION 5. DURATION OF INCREASE; NOTICE OF FUND RECOVERY

Payment of the additional fees shall continue until the commissioner issues written notice that the fund has recovered. The commissioner shall send such notice to persons subject to the fee increase under section 4 of this rule when the fund balance averages $ 10 million or more for

3 consecutive months.

History

• STATUTORY AUTHORITY: 38 M.R.S. §§ 568-B(2)(D) and 551(4)
• STATUTORY AUTHORITY: As “Fund Insurance Review Board”:
• EFFECTIVE DATE: May 28, 1994
• REPEALED AND REPLACED: December 4, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 28, 1996
• NON-SUBSTANTIVE CORRECTIONS: August 19, 1997 - minor spelling and punctuation.
• REPEALED AND REPLACED: April 22, 2003 - filing 2003-105
• AMENDED: February 10, 2013 – filing 2013-037
• AMENDED: Renamed as “Clean-Up and Response Fund Review Board”:
• AMENDED: May 20, 2017 – filing 2017-075
• APAO ACCESSIBILITY CHECK: October 14, 2025 (no issues detected)
• AMENDED: October 19, 2025 – filing 2025-195

Chapter 5 Documentation Requirements for Applications to the State Fire Marshal for Coverage by the Maine Ground and Surface Water Clean-Up and Response Fund at Above Ground Oil Storage Facilities

Code Me. R. 90-564 Ch. 5 DOCUMENTATION REQUIREMENTS FOR APPLICATIONS TO THE STATE FIRE MARSHAL FOR COVERAGE BY THE Maine Ground and Surface WaterS Clean-up and Response Fund AT ABOVE GROUND OIL STORAGE FACILITIES {#sec-90-564-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--90-564 Ch. 5}

Summary: This chapter lists the documents required to be supplied by owners/operators of above ground oil storage facilities as part of the application to the State Fire Marshal for coverage by the Maine Ground and Surface Waters Clean-up and Response Fund.

1. Documents Required

The documents required to be submitted to the State Fire Marshal by an applicant as part of an application for coverage by the Maine Ground and Surface Waters Clean-up and Response Fund are as follows:

A. A completed application form as issued by the Office of the State Fire Marshal.

B. The spill prevention control and countermeasure (SPCC) plan applicable to the facility, if the facility is required to have such a plan. When a plan is submitted, the applicant must indicate the name of the Maine licensed professional or other qualified professional who certified the SPCC plan, when the plan was certified and the date when the plan was last updated. Alternatively, the applicant must indicate if the plan met the criteria for being self-certified pursuant to 40 CFR Part 112 and the date the self-certified SPCC plan was last updated.

C. The State Fire Marshal may ask for additional documents. The applicant is required to comply with the request as long as it is reasonable, or explain why it is not possible to provide the requested documents.

2. Other Documents Relied Upon

When making a determination on the application, the State Fire Marshal may also rely on documents and photographs contained in the files of the Office of the State Fire Marshal and the Department of Environmental Protection.

3. Other Documents May Be Submitted

The applicant is encouraged to supply other documents, including photographs, which the applicant believes will assist the State Fire Marshal in making a determination on eligibility for fund coverage and the assignment of deductibles.

History

• STATUTORY AUTHORITY: 38 M.R.S. §568-A(1)(H)
• STATUTORY AUTHORITY: As “Fund Insurance Review Board”:
• EFFECTIVE DATE: June 7, 1998
• AMENDED: June 16, 2013 – filing 2013-133
• AMENDED: Renamed as “Clean-Up and Response Fund Review Board”:
• AMENDED: May 20, 2017 – minor edits including new agency name, filing 2017-076

90-590 Maine Health Data Organization

Chapter 10 Determination of Assessments

Code Me. R. 90-590 Ch. 10 Determination of Assessments {#sec-90-590-ch.-10 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 10}

SUMMARY: This Chapter identifies those health care providers, health insurance entities, carriers that provide only administrative services for a plan sponsor, third-party administrators, manufacturers, wholesale drug distributors and pharmacy benefits managers required to pay annual assessments for the operational costs, which include staff salaries, administrative expenses, data system expenses, and consulting fees of the Maine Health Data Organization. This Chapter also establishes the process for determining the individual assessments for each entity and the time frame for payment.

1. Definitions

A. Carrier. "Carrier" means an insurance company licensed in accordance with 24-A M.R.S., including a health maintenance organization, a multiple employer welfare arrangement licensed pursuant to 24-A M.R.S., chapter 81, a preferred provider organization, a fraternal benefit society, or a nonprofit hospital or medical service organization or health plan licensed pursuant to 24 M.R.S. An employer exempted from the applicability of 24-A M.R.S., chapter 56-A under the federal Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 1001 to 1461 (1988) is not considered a carrier.

B. Health Care Claims Processed or Paid. "Health care claims processed or paid” by third-party administrators or carriers that provide administrative services only do not include claims for specified disease, accident, injury, hospital indemnity, long term care, disability income, or other limited benefits.

C. Health Care Premiums. "Health care premiums" means the dollar amount charged for any policies offered by health insurance entities which partially or fully cover the cost of health care services but do not include policies issued for specified disease, accident, injury, hospital indemnity, long term care, disability income, or other limited benefit health insurance policies.

D. Health Care Provider. "Health care provider" is a hospital or a non-hospital health care facility. Riverview Psychiatric Center and Dorothea Dix Psychiatric Center are excluded.

E. Health Insurance Entity. "Health insurance entity" means a health insurance company, a health maintenance organization, or a nonprofit hospital or medical services organization with greater than $ 500,000 of premiums written per year in Maine that is licensed by the Maine Bureau of Insurance under 24-A M.R.S. All preferred payor organizations licensed by the Maine Bureau of Insurance under 24-A M.R.S. are excluded.

F. Hospital. “Hospital” means any acute care institution required to be licensed pursuant to 22 M.R.S., chapter 405.

G. Manufacturer. “Manufacturer” means an entity that manufactures, and sets the wholesale acquisition cost for, prescription drugs that are distributed in the State.

H. MHDO. "MHDO" means the Maine Health Data Organization.

I. M.R.S. " M.R.S." means Maine Revised Statutes.

J. Non-Hospital Health Care Facility. "Non-hospital health care facility" means a public or private, proprietary or not-for-profit entity or institution providing health services licensed or certified under 22 M.R.S., including, but not limited to, a radiological facility licensed under chapter 160, a health care facility licensed under chapter 405, an independent radiological service center, a federally qualified health center certified by the United States Department of Health and Human Services, Health Resources Service Administration, a rural health clinic, or rehabilitative agency, certified, or otherwise approved by the Division of Licensing within the Department of Health and Human Services, a home health care provider licensed under chapter 419, a residential care facility licensed under chapter 1663, a hospice provider licensed under chapter 1681, a state institution as defined under 34-B M.R.S., chapter 1 and a mental health facility licensed under 34-B M.R.S., chapter 1, and a retail store drug outlet licensed under 32 M.R.S., chapter 117.

K. Pharmacy Benefits Manager (PBM). "Pharmacy benefits manager (PBM)" means an entity that performs pharmacy benefits management as defined in 24-A M.R.S. §1913.

L. Plan Sponsor. "Plan sponsor" means any person, other than an insurer, who establishes or maintains a plan covering residents of this State, including, but not limited to, plans established or maintained by 2 or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees or other similar group of representatives of the parties that establish or maintain the plan.

M. Retail Store Drug Outlet. "Retail store drug outlet" means any pharmacy located in a retail store in this state which is engaged in dispensing, delivering, or distributing prescription drugs.

N. Third-Party Administrator. "Third-party administrator" means any person licensed by the Maine Bureau of Insurance under 24-A M.R.S., chapter 18 and who, on behalf of a plan sponsor, health care service plan, nonprofit hospital or medical service organization, health maintenance organization or insurer, receives or collects charges, contributions or premiums for, or adjusts or settles claims on residents of this State that in aggregate exceeds $500,000 per year in Maine.

O. Total Net Patient Service Revenue. "Total net patient service revenue" means gross charges for patient services less contractual adjustments, charity care and bad debt costs as provided in the standardized accounting templates submitted in accordance the requirements of 90-590 CMR, Chapter 300: Uniform Reporting System for Hospital Financial Data.

P. Wholesale drug distributor. “Wholesale drug distributor” means an entity licensed by the State to engage in the sale of prescription drugs, of which it is not the manufacturer, to persons and/or entities other than a consumer or patient.

2. Assessments

A. Determination. Total annual assessments shall be based upon the total annual allocation authorized by the Maine State Legislature for the operational costs of the MHDO as indicated in the biennial budget. The amount to be assessed shall be reduced by the difference between the total annual authorized allocation for the next fiscal year and the beginning fund balance in the account established pursuant to 22 M.R.S. §8706, sub-§6 for the prior fiscal year. Any assessment reduction shall be applied proportionately to the categorical groups assessed and shall be based upon the maximum percentages of the total assessment as described in this section.

Non-hospital health care facilities shall be assessed an aggregate amount that is 11.5% of the total annual authorized allocation and shall be individually assessed in the manner described in subsection B. Third-party administrators and carriers that provide only administrative services for a plan sponsor shall also be assessed an aggregate amount that is 11.5% of the total annual authorized allocation and shall be individually assessed in the manner described in subsection D. The remaining assessment balance shall be divided equally between hospitals and health insurance entities. The assessment share for hospitals and the assessment share for health insurance entities shall each not exceed 38.5% of the total annual authorized allocation. Individual hospitals and health insurance entities shall be assessed in the manner described in subsections C and E, respectively. Annual assessments shall be at least $100 for each individual entity required to pay an assessment under this Chapter.

B. Non-Hospital Health Care Facilities. The maximum assessment for each non-hospital health care facility by category is listed below. The specific dollar amount to be assessed for each non-hospital health care facility shall be established from the determination of the relative percentage reduction as described in subsection A. If an individual non-hospital health care facility is licensed or certified under multiple categories, only one assessment shall be imposed and it shall be the per facility assessment with the highest dollar amount.

Non-Hospital Health Care Facility Category Maximum Per Facility

Assessment

End-Stage Renal Disease $2,500

Federally Qualified Health Center $150

Freestanding Ambulatory Surgical Center $2,500

Independent Radiological Service Center $2,500

Home Health Agency $150

Mental Health Agency $150

Portable X-Ray Units $150

Rehabilitation Agencies $150

Rural Health Clinic $150

C. Hospitals. Hospitals shall be assessed by establishing the total net patient service revenue for each as a percentage of the total net patient service revenue for all. The individual total net patient service revenue numbers are to be established from the most recently completed fiscal year standardized accounting template for each hospital. The specific dollar amount to be assessed shall be determined by multiplying each percentage by the hospital assessment share as determined in subsection A.

D. Third-Party Administrators and Carriers that Provide Administrative Services Only for a Plan Sponsor. Third-party administrators, carriers that provide administrative services only for a plan sponsor, and PBMs that process and pay claims shall be assessed by establishing the total dollar amount of health care claims processed or paid for each as a percentage of the total dollar amount of health care claims processed or paid for all. The total dollar amounts of health care claims processed or paid shall be derived from the most recent annual numbers for all covered individuals in the State compiled by the Maine Bureau of Insurance with direct verification from the third-party administrators and carriers that provide administrative services only for a plan sponsor and from the MHDO claims database. The specific dollar amount to be assessed shall be determined by multiplying each percentage by the third-party administrators, carriers that provide administrative services only for a plan sponsor, and PBMs that process and pay claims assessment share as determined in subsection A.

E. Health Insurance Entities. Health insurance entities shall be assessed by establishing the total dollar amount of health care premiums written for each as a percentage of the total dollar amount of health care premiums written for all. The total dollar amounts of health care premiums written shall be derived from the most recent annual numbers compiled by the Maine Bureau of Insurance with direct verification from the health insurance entities. The specific dollar amount to be assessed shall be determined by multiplying each percentage by the health insurance entity assessment share as determined in subsection A.

F. Manufacturers, wholesale drug distributors and PBMs. Each of these entities shall be assessed $500 annually.

3. Submittals and Time Frames

A. Health Insurance Entities, Third-Party Administrators, Carriers that Provide Administrative Services Only for a Plan Sponsor, PBMs. The MHDO shall provide an annual survey for the purpose of determining assessments to all health insurance entities, third-party administrators, carriers that provide administrative services only for a plan sponsor, and PBMs that process and pay claims. These entities shall within 30 days submit completed surveys indicating the volumes of exempted health care premiums or claims processed or paid during the last complete calendar year.

B. Requests For Payment. The MHDO shall send annually requests for payments and invoices to all entities identified in Subsections 2B-F.

C. Assessments Due. All assessments shall be due to the MHDO within 30 days of receipt of the requests for payment and invoices.

4. Compliance

Failure to pay an assessment in accordance with the provisions of this Chapter may be considered a violation under 22 M.R.S. §8705-A.

History

• STATUTORY AUTHORITY: 22 MRS §8704 sub-§4, and §8706 sub-§2
• EFFECTIVE DATE: May 13, 1998
• AMENDED: May 15, 2002
• AMENDED: July 26, 2003 - filing 2003-249
• AMENDED: July 4, 2007 – filing 2007-276
• AMENDED: February 17, 2008 – filing 2008-75
• AMENDED: April 23, 2014 – filing 2014-072
• AMENDED: February 4, 2020 – filing 2020-018

Chapter 50 Prices for Data Sets, Fees for Programming and Report Generation, Duplication Rates

Code Me. R. 90-590 Ch. 50 Prices for Data Sets, Fees for Programming and Report Generation, Duplication Rates {#sec-90-590-ch.-50 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 50}

SUMMARY: This Chapter lists the prices for data sets available to the public from the Maine Health Data Organization, the fees for programming and report generation, and duplicating charges.

SECTION 1. DEFINITIONS

A. Assessed Entity. An "assessed entity" means a health care provider, health insurance entity, third-party administrator, or retail store drug outlet, as defined by the Maine Health Data Organization Determination of Assessments Rule (90-590 C.M.R. Chapter 10) in effect at the time of the data request that has paid assessments to the MHDO for a minimum of two consecutive fiscal years.

B. Clinical Data. “Clinical data” mean health care claims data, hospital data, non-hospital health care facility data, quality data, and all other data as described in 22 M.R.S.A. Sections 8708, 8708-A, and 8711.

C. Commercial Entity. A "commercial entity" means a for-profit business or organization that purchases MHDO data or information for resale in any form.

D. Educational Entity. An "educational entity" means any public or private elementary or secondary school, and any public or private post-secondary institution.

E. Financial Data. “Financial data” means information consisting of or derived directly from data providers pursuant to 90-590 CMR Chapter 300 Maine Health Data Organization Uniform Reporting System for Hospital Financial Data. “Financial data” do not include analysis, reports, or studies if those analyses, reports, or studies have already been released as part of a general distribution of public information by the MHDO.

F. Health Care Claims Data. “Health care claims data” means information consisting of or derived directly from member eligibility, medical claims, pharmacy claims, and/or dental claims files submitted by health care claims processors pursuant to the Maine Health Data Organization Uniform Reporting System for Health Care Claims Data Sets Rule (90-590 C.M.R. Chapter 243) in effect at the time of the data request. “Health care claims data” do not include analysis, reports, or studies containing information from health care claims data sets, if those analyses, reports, or studies have already been released in response to another request for information or as part of a general distribution of public information by the MHDO.

G. Hospital Data. "Hospital data" means information consisting of or derived directly from hospital inpatient, outpatient, emergency department, or any other derived data sets filed or maintained pursuant to the Maine Health Data Organization Uniform Reporting System for Hospital Inpatient Data Sets and Hospital Outpatient Data Sets Rule (90-590 C.M.R. Chapter 241) in effect at the time of the data request. "Hospital data" do not include analysis, reports, or studies containing information from hospital data sets, if those analyses, reports, or studies have already been released in response to another request for information or as part of a general distribution of public information by the MHDO.

H. MHDO. “MHDO” means the Maine Health Data Organization or its predecessor agencies.

I. Non-Hospital Health Care Facility Data. “Non-hospital health care facility data” means information or data consisting of or derived directly from data sets filed or maintained pursuant to the Maine Health Data Organization Uniform Reporting System for Non-Hospital Ambulatory Service Data Sets Rule (90-590 C.M.R. Chapter 245) in effect at the time of the data request. “Non-hospital health care facility data” do not include analysis, reports, or studies containing information from non-hospital health care facility data sets, if those analyses, reports, or studies have already been released in response to another request for information or as part of a general distribution of public information by the MHDO.

J. Non-Profit Entity. A "non-profit entity" means a governmental agency or public or private organization that has been determined to be exempt from taxation under the United States Internal Revenue Code, Section 501 (c).

K. Quality Data. “Quality data” means information consisting of or derived directly from data providers pursuant to 90-590 CMR Ch. 270 Maine Health Data Organization Uniform Reporting System for Quality Data Sets. "Quality data" do not include analysis, reports, or studies if those analyses, reports, or studies have already been released as part of a general distribution of public information by the MHDO.

L. Redistributor. A "redistributor" means any commercial entity, assessed entity, or non-profit entity that purchases MHDO data for inclusion in a larger composite database that is publicly released.

M. Restricted Data Set. "Restricted data set" means data or information containing data elements as described in subsections 9(A) (2), (3), and (4) of the Maine Health Data Organization Release of Data to the Public Rule (90-590 C.M.R. Chapter 120) in effect at the time of the data request.

N. Unrestricted Data Set. "Unrestricted data set" means data or information containing none of the data elements as described in subsections 9(A) (2), (3), and (4) of the Maine Health Data Organization Release of Data to the Public Rule (90-590 C.M.R. Chapter 120) in effect at the time of the data request.

SECTION 2. PROCESSING FEE

A non-refundable processing fee of $25 is to be paid with all requests for data sets, files, reports, or tables as set forth in sections 3 and 4 of these rules.

SECTION 3. CLINICAL DATA SET PRICES

A. Maine Hospital Data Sets. The price schedules and data availability for individual record level data sets derived from data submitted by all Maine-licensed hospitals are as follows:

1. Unrestricted Data Sets.

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

First Year

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Inpatient

1980

$375

$1,300

$202

$697

$185

$650

$1,250

$4,325

Outpatient

1998

$750

$2,600

$337

$1,170

$310

$1,100

$2,065

$7,140

Emergency Dept.

2000

$750

$2,600

$337

$1,170

$310

$1,100

$2,065

$7,140

2. Restricted Data Sets.

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

First Year

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Inpatient

1980

$430

$1,500

$234

$810

$215

$750

$1,445

$5,000

Outpatient

1998

$860

$3,000

$387

$1,350

$360

$1,250

$2,385

$8,250

Emergency Dept.

2000

$860

$3,000

$387

$1,350

$360

$1,250

$2,385

$8,250

Practitioner Identifiers

2000

$1,500

$675

$625

$4,125

B. Health Care Claims Data Set. The price schedules and data availability for individual record level data files derived from data submitted by all Maine-licensed commercial and major governmental payers related to claims paid for Maine residents are as follows:

1. Unrestricted Data Set.

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

First Year

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Member Eligibility

2003

$1,450

$5,000

$652

$2,250

$575

$2,000

$2,400

$8,280

Medical Claims

2003

$2,300

$8,000

$1,035

$3,600

$1,000

$3,500

$3,750

$12,975

Pharmacy Claims

2003

$1,000

$3,500

$450

$1,575

$360

$1,250

$1,600

$5,515

Dental Claims

2003

$1,000

$3,500

$450

$1,575

$360

$1,250

$1,600

$5,515

2. Restricted Data Set.

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

First Year

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Member Eligibility

2003

$1,870

$6,500

$841

$2,925

$720

$2,500

$2,820

$9,750

Medical Claims

2003

$2,875

$10,000

$1,296

$4,500

$1,150

$4,000

$4,335

$15,000

Pharmacy Claims

2003

$1,220

$4,250

$549

$1,912

$500

$1,750

$1,850

$6,375

Dental Claims

2003

$1,220

$4,250

$549

$1,912

$500

$1,750

$1,850

$6,375

Practitioner Identifiers

2003

$3,500

$1,530

$1,400

$5,000

C. Non-Hospital Ambulatory Services Data Set. The price schedules and data availability for individual record level data sets derived from data submitted by Maine-licensed non-hospital health care facilities performing specific ambulatory services:

1. Unrestricted Data Set.

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

Years

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Non-Hosp. Ambul.

1990-2002

$285

$1,000

$126

$450

$115

$400

$430

$1,500

2. Restricted Data Set.

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

Years

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Non-Hosp. Ambul.

1990-2002

$360

$1,250

$162

$562

$140

$500

$540

$1,825

D. Quality Data Sets. The price schedule and data availability for data sets derived from data submitted by all Maine-licensed hospitals are as follows:

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

First Year

Per

Per

Per

Per

Per

Per

Per

Per

Data Set

Available

Quarter

Year

Quarter

Year

Quarter

Year

Quarter

Year

Hospital Healthcare Quality Data (CMS Measures)

3rd Qtr 2005

$100

$200

$54

$108

$50

$100

$150

$300

Nursing Sensitive Indicator Data

2006

$150

$300

$81

$135

$75

$125

$225

$450

Healthcare Associated Infection Data

2007

$120

$240

$54

$108

$50

$100

$180

$360

Care Transition Measure Data

2008

$120

$240

$54

$108

$50

$100

$180

$360

E. Financial Data Sets. The price schedule and data availability for data sets derived from data submitted by all Maine-licensed hospitals are as follows:

Entity Requesting Data

Commercial

Assessed

Non-Profit/Educational

Redistributor

First Year

Per

Per

Per

Per

Data Set

Available

Year

Year

Year

Year

Hospital Standardized Template

2004-2005

$1950

$877

$819

$6435

F. Price Limitations. An entity receiving any of the listed clinical data sets shall be charged the appropriate price for the data set requested. If the same entity submits an amended or new request utilizing a data set identical to a data set previously provided the entity by the MHDO within a twelve month period of time, the requesting entity shall not be required to repurchase the data set.

SECTION 4. REQUESTS FOR OTHER DATA FILES, REPORTS, OR TABLES

Data files, reports, or tables not listed under section 3 shall be generated at a cost of $80 / hour, with a one hour minimum charge applied. Those entities requesting the data or information shall be provided a written estimate of the total cost prior to the request being fulfilled by the MHDO staff.

SECTION 5. DUPLICATE RATES

The price for copying or duplicating existing hard copy material is $0.15 per page.

SECTION 6. PAYMENTS

Payments are due in full from the requesting party within thirty days of receipt of MHDO data sets, files, reports, or tables. If, after thirty days have elapsed, the MHDO does not receive full payment from the requesting party, the provisions of 22 M.R.S.A. Section 8705-A and the Maine Health Data Organization Enforcement Rule (90-590 C.M.R. Chapter 100) shall be invoked.

SECTION 7. WAIVER PROVISIONS

The Maine Health Data Organization Board may reduce or waive the fees established in sections 3 and 4 in the event it determines that the entity requesting data has demonstrated either or both of the following:

A. Inability to pay. An inability to pay for data due to extenuating circumstances; or

B. Information/analysis publicly accessible. The requested data are to be used to improve the health of Maine residents and the resulting information, reports, and/or analytical products are to be in the public domain without charge and can be easily accessed within the time frame approved by the Maine Health Data Organization Board.

History

• STATUTORY AUTHORITY: 22 MRSA, Chapter 1683, §8704, sub-§4, and §8706, sub-§2(A) and 2(B)
• EFFECTIVE DATE: September 11, 1997
• AMENDED: May 2, 2004
• AMENDED: February 28, 2006 – filing 2006-87
• AMENDED: October 9, 2006 – filing 2006-435
• AMENDED: May 28, 2008 – filing 2008-226
• AMENDED: October 3, 2010 – filing 2010-446
• AMENDED: 90-590 Chapter 50 Page 5

Chapter 100 Enforcement Procedures

Code Me. R. 90-590 Ch. 100 Enforcement Procedures {#sec-90-590-ch.-100 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 100}

SUMMARY: As required under 22 M.R.S. §§8705-A and 8735, this Chapter establishes a schedule of fines and other enforcement actions for failure to file clinical, quality, financial, organizational information, health care claims and prescription drug price data; failure to pay the annual assessment; and for intentional or knowing failure to protect the disclosure of confidential or privileged data.

1. Applicability. This rule is applicable to all activities and processes described under 22 M.R.S. Chapter 1683 including but not limited to the activities required of health care providers, payors, other persons and/or data users in the filing, acquisition, and use of Maine Health Data Organization data.

2. Definitions.

A. Carrier. "Carrier" means an insurance company licensed in accordance with 24‑A M.R.S., including a health maintenance organization, a multiple employer welfare arrangement licensed pursuant to Title 24-A, chapter 81, a preferred provider organization, a fraternal benefit society, or a nonprofit hospital or medical service organization or health plan licensed pursuant to 24 M.R.S. An employer exempted from the applicability of 24-A M.R.S., chapter 56-A under the federal Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 1001 to 1461 (1988) is not considered a carrier.

B. Entity. "Entity" means an assessed, commercial, educational, or non-profit entity as defined by the MHDO Prices for Data Sets, Fees for Programming and Report Generation, and Duplication Rates Rule (90-590 C.M.R. Chapter 50).

C. Health care facility. "Health care facility" means a public or private, proprietary or not-for-profit entity or institution providing health services including, but not limited to an independent radiological services center licensed under 22 M.R.S., chapter 160, a health care facility licensed under 22 M.R.S., chapter 405 or certified under chapter 405-D, a rural health clinic certified by the Division of Licensing and Certification within the Department of Human Services, a home health care provider licensed under 22 M.R.S., chapter 419, a hospice provider licensed under 22 M.R.S., chapter 1681, a community rehabilitation program licensed under 20-A M.R.S., chapter 701, a state institution as defined under 34-B M.R.S., chapter 1 and a mental health facility licensed under 34-B M.R.S., chapter 1.

D. Health care practitioner. "Health care practitioner" means physicians and all others certified, registered or licensed in the healing arts, including but not limited to, nurses, podiatrists, optometrists, chiropractors, physical therapists, dentists, psychologists and physicians’ assistants as defined in 24 M.R.S., chapter 21. "Health care practitioner" also includes licensed clinical social workers as defined in 32 M.R.S., chapter 83 and marriage and family therapists and licensed clinical professional counselors as defined in 32 M.R.S., chapter 119.

E. Health care provider. "Health care provider" means a health care facility, health care practitioner, health product manufacturer, health product vendor or pharmacy.

F. Hospital. "Hospital" means any type of hospital institution required to be licensed pursuant to 22 M.R.S., chapter 405, §1811.

G. Manufacturer. “Manufacturer” means an entity that manufactures or repackages, and sets the wholesale acquisition cost for, prescription drugs that are distributed in the State.

H. MHDO. "MHDO" means the Maine Health Data Organization.

I. M.R.S. "M.R.S." means Maine Revised Statutes .

J. Parent entity. "Parent entity" means the organization or corporation that has control, directly or indirectly through majority ownership, affiliation, contract or membership of a hospital and/or any affiliated health care facility. A parent entity may be an individual hospital or, as a parent of a health care facility, considered a health care facility.

K. Payor. "Payor" means a third-party payor or third-party administrator.

L. Person. "Person" means an individual, trust, estate, partnership, corporation including associations, joint stock companies and insurance companies, the State or any political subdivision or instrumentality, including a municipal corporation of the State, or any other legal entity recognized by State law.

M. Pharmacy Benefits Manager (PBM). "Pharmacy benefits manager (PBM)" means an entity that performs pharmacy benefits management, as defined in 24-A M.R.S. §4347, sub-section 17.

N. Third-party administrator. “Third-party administrator” means any person who, on behalf of a plan sponsor, health care service plan, nonprofit hospital or medical service organization, health maintenance organization or insurer, receives or collects charges, contributions or premiums for, or adjusts or settles claims on residents of this State.

O. Third-party payor. "Third-party payor" means a health insurance carrier, nonprofit hospital, medical services organization, or managed care organization licensed in the State of Maine. "Third-party payor" does not include carriers licensed to issue limited benefit health policies or accident, specified disease, vision, disability, long-term care or nursing home care policies.

P. Wholesale drug distributor. “Wholesale drug distributor” means an entity that

• 1. is licensed by the State to engage in the sale of prescription drugs to persons and/or entities other than a consumer or patient; and 2. distributes prescription drugs, of which it is not the manufacturer, to persons and /or entities other than a consumer or patient in the State.

3. Penalties; fines.

The MHDO Board may assess fines pursuant to 22 M.R.S. § 8705-A in accordance with the following schedules:

A health care facility, payor, prescription drug manufacturer, wholesale drug distributor or PBM that fails to pay the annual assessment levied for the operational costs of the MHDO as set forth in 90-590 C.M.R Chapter 10, is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged at $1,000 per day of non-compliance, not to exceed a maximum of $25,000 per any one occurrence.

Any person or entity, as defined under section 2, that receives data or information pursuant to 90-590 C.M.R Chapter 120, and intentionally or knowingly uses, sells or transfers the data in violation of the rules for commercial advantage, pecuniary gain, personal gain or malicious harm is considered in civil violation under 22 M.R.S., §8705-A for which a fine not to exceed $500,000 may be adjudged.

A hospital that fails to file inpatient and outpatient service data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 241 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A payor that fails to file health care claims data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 243 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A payor that fails to file supplemental health care data sets and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 247 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

4. $1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A payor or health care provider, excluding health care practitioners, that fails to file quality data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 270 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A health care practitioner that fails to file quality data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 270 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$50 per day for the first week of non-compliance;

$75 per day for the second week of non-compliance;

$100 per day for the third week of non-compliance; and each week thereafter, not to exceed a maximum of $2,500 per any one occurrence.

A parent entity, health care facility, and/or hospital that fails to file financial data, organizational information, and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 300, is considered in civil violation under 22 M.R.S. Sec. 8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A hospital participating in the 340B Drug Program that fails to file a 340B Drug Program data set and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 340, is considered in civil violation under 22 M.R.S. Sec. 8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A prescription drug manufacturer, wholesale drug distributor or PBM that fails to file prescription drug price data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 570 Section 2 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

4. $1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A prescription drug manufacturer, wholesale drug distributor or PBM that fails to file prescription drug price data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 570 Section 4 is considered in civil violation under 22 M.R.S. §8735 for which a fine of $30,000 may be adjudged for each day of the violation.

Certification of Accuracy. A notification or report to the MHDO by a reporting entity shall include a signed, written certification of the notification or report’s accuracy.

Audit. With a 30-day notice, the MHDO may audit the finalized data submitted by a reporting entity, and that entity shall pay for the costs of the audit.

Corrective Action Plan. The MHDO may require a reporting entity to develop a corrective action plan to correct any deficiencies in compliance discovered during an audit.

A prescription drug manufacturer that fails to file wholesale acquisition costs for insulin and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 800 Section 2 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

A prescription drug manufacturer that fails to file wholesale acquisition costs for insulin and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 800 Section 4 is considered in civil violation under 22 M.R.S. §8735 for which a fine of $30,000 may be adjudged for each day of the violation.

Certification of Accuracy. A notification or report to the MHDO by a reporting entity shall include a signed, written certification of the notification or report’s accuracy.

Audit. With a 30-day notice, the MHDO may audit the finalized data submitted by a reporting entity, and that entity shall pay for the costs of the audit.

Corrective Action Plan. The MHDO may require a reporting entity to develop a corrective action plan to correct any deficiencies in compliance discovered during an audit.

A hospital that fails to file price transparency data and/or to meet the standards for data and the provisions for compliance as set forth in 90-590 C.M.R Chapter 841 is considered in civil violation under 22 M.R.S. §8705-A for which fines may be adjudged as follows:

$100 per day for the first week of non-compliance;

$250 per day for the second week of non-compliance;

$500 per day for the third week of non-compliance; and

$1,000 per day for the fourth week of non-compliance and each week thereafter, not to exceed a maximum of $25,000 per any one occurrence.

The MHDO Board may, in its discretion, suspend, in whole or in part, any of the above-mentioned fines.

4. Additional disciplinary action.

Upon a finding that a person or entity has failed to comply with the requirements of 22 M.R.S., Chapter 1683 and any rules adopted by the MHDO Board, the Board may undertake any or all of the following:

A. Refer the matter to the department or board that issued a license to the provider for such action as the department or board considers appropriate.

B. Refer the matter to the Department of Professional and Financial Regulation, Bureau of Insurance for such action against the payor as the bureau considers appropriate.

C. File a complaint with the Superior Court in the county in which the person resides or the entity is located, or in Kennebec County, seeking an order to require that person or entity in non-compliance to comply with the requirements for which adjudication is being sought, and for the enforcement of any fine determined by the Board or for other relief from the court.

5. Injunctive relief.

In the event of any violation of 22 M.R.S., Chapter 1683 and any rules adopted by the MHDO Board, the Attorney General may seek to enjoin a further violation and seek any other appropriate remedy provided by this Chapter.

6. Petition for review; fair hearing; judicial review.

Any person affected by any determination made under this rule by the MHDO may petition the MHDO Board for review of the decision. The petition must be filed within fifteen business days, in accordance with 5 M.R.S. Chapter 375.

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 1718-I, 1728, 8705-A, §8735, and 24-A M.R.S. §6951
• EFFECTIVE DATE: May 1, 2000
• NON-SUBSTANTIVE CORRECTIONS: November 26, 2000 - Sections 5 and 6 renumbered to 4 and 5
• AMENDED: August 6, 2005 – filing 2005-277
• AMENDED: July 29, 2007 - filing 2007-277, (Major substantive)
• AMENDED: July 3, 2020 – filing 2020-134 (Major substantive)
• AMENDED: October 14, 2023 – filing 2023-171 (Major substantive)
• AMENDED: May 15, 2025 – filing 2025-086 (Major substantive)
• AMENDED: June 25, 2026 – filing 2026-123 (Major substantive)

Chapter 120 Release of Data to the Public

Code Me. R. 90-590 Ch. 120 Release of Data to the Public {#sec-90-590-ch.-120 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 120}

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90-590 MAINE HEALTH DATA ORGANIZATION

Chapter 120: RELEASE OF DATA TO THE PUBLIC

GENERAL PURPOSE

The Maine Health Data Organization (MHDO) is charged with collecting health care data. This Chapter governs the release of data submitted to the MHDO. The purpose of this rule is to specify the permissible uses of the data; Level I, II, and III Data file types; the process for which data requests will be reviewed and data released; public notice of data requests; the MHDO Data Use Agreement (MHDO DUA), MHDO internal use of the data, and the security and protection of the MHDO Data.

Authority and Purpose

MHDO Data are obtained to fulfill MHDO’s legislative mandate to create and maintain a useful, objective, reliable and comprehensive health information database that is used to improve the health of Maine citizens and to issue reports promoting public transparency of health care quality, outcomes, and costs. The MHDO will make data publicly available and accessible to the broadest extent consistent with the laws protecting individual privacy, and proprietary information.

The primary use of the MHDO Data is to produce meaningful analysis in pursuit of improved health, health equity, and health care quality for Maine people. Acceptable uses of MHDO Data include, but are not limited to, study of health care disparities, health care costs, utilization, and outcomes; benchmarking; quality analysis; longitudinal research; other research; and administrative or planning purposes.

Transition

Data released under the prior rule Chapter 120 shall continue to be subject to those rules and agreements signed pursuant to those rules. Those agreements regarding use of MHDO Data shall remain effective until they end, are terminated by the MHDO Executive Director, or are replaced with updated MHDO DUA’s. MHDO data released under prior rule chapter 120 shall remain the property of MHDO.

Constitutionality Clause

Should any section, paragraph, sentence, clause, or phrase of these rules be declared unconstitutional or invalid for any reason, the remainder of said rule will not be affected thereby.

DEFINITIONS

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

APCD. “APCD” means the All Payer Claims Database.

APCD Data. “APCD Data is Health Care Claims Data consisting of, or derived directly from, member eligibility, medical claims which includes identifiable practitioner data elements, pharmacy claims, and/or dental claims files submitted by health care claims processors pursuant to Chapter 243 of the MHDO’s rules, Uniform Reporting System for Health Care Claims Data Sets.

Applicant. An “Applicant” is an individual or organization that requests Data in accordance with this rule.

Breach. A “Breach” is an impermissible use or disclosure under this rule that compromises the security or privacy of Protected Health Information (PHI). An impermissible use or disclosure of PHI is presumed to be a breach unless the MHDO demonstrates that there is a low probability that the PHI has been compromised based on a risk assessment of at least the following factors:

The nature and extent of the PHI involved, including the types of identifiers and the likelihood of re-identification;

The unauthorized person who used the PHI or to whom the disclosure was made;

Whether the PHI was actually acquired or viewed; and

The extent to which the risk to the PHI has been mitigated.

Business Associate. "Business Associate" has the same meaning as under 45 Code of Federal Regulations, Section 160.103 (2015). Generally, a business associate is a person or organization, other than a member of a covered entity's workforce, that performs certain functions or activities on behalf of, or provides certain services to, a covered entity that involve the use or disclosure of individually identifiable health information. Business associate functions or activities on behalf of a covered entity include claims processing, data analysis, utilization review, and billing.

Cancer-Incidence Registry Data. “Cancer-Incidence Registry Data” means information collected from the Maine Department of Health and Human Services, Office of Data Research and Vital Statistics pursuant to Chapter 730 of the MHDO rules, Interagency Reporting of Cancer-Incidence Registry and Vital Statistics Data.

Carrier. “Carrier” means an insurance company as defined in Title 22, Chapter 1683, section 8702 (1-A).

Choice Regarding Disclosure of Information. “Choice Regarding Disclosure of Information” means a mechanism that allows an individual to choose to not allow the MHDO to disclose their directly identifiable health care information for certain requests.

Commercial Redistribution. ‘Commercial redistribution” is when a for-profit or not-for-profit business or organization purchases MHDO data or information for inclusion in a larger composite database for resale in any form.

Covered Entity. "Covered Entity" has the same meaning as 45 Code of Federal Regulations , Section 160.103 (2015). “Covered Entities are health plans, health care clearinghouses, and any health care provider who transmits health information in electronic form in connection with transactions for which the Secretary of HHS has adopted standards under HIPAA (the “covered entities”).

Data Provider. A “Data Provider” is an entity or person that provides data to the MHDO pursuant to 22 M.R.S.A. Sections 8708, 8708-A, 8709, 8710 or 8711 and is a health care facility, health care practitioner, health care claims processor or carrier. For the purposes of this rule, “Data Provider” incudes the DRVS for date submitted pursuant to Chapter 730.

Data Recipient. A “Data Recipient” is any entity or person that receives data pursuant to this rule.

Data Release Subcommittee. “Data Release Subcommittee” is a subcommittee of the MHDO Board of Directors established to review applications for data release as specified in these Rules.

Data Suppression. “Data Suppression” means the masking of certain data fields in situations where the small number of records in a subgroup might otherwise allow for the identification of individuals.

Direct Identifiers. Direct Identifiers” are personal information as outlined in Chapter 125, such as name, social security number, and date of birth, that uniquely identifies an individual or that can be combined with other readily available information to uniquely identify an individual. A MHDO assigned replacement number or code (used to create anonymous data indices or linkage) is not a direct identifier. MHDO Level III Data includes MHDO Direct Identifiers.

DRVS.“DRVS” means the Data, Research, and Vital Statistics office within the Department of Health and Human Services.

Encryption. “Encryption” means the process of converting data to an unrecognizable form, in order to protect sensitive information including protected health information so that only authorized parties can view it. This includes data files and storage devices, as well as data transferred over wireless networks.

Executive Director. “Executive Director” means the Executive Director of MHDO or the Acting Executive Director of MHDO.

Federal Information Processing Standards (FIPS). “Federal Information Processing Standards” are public standards developed by the United States federal government for use in computer systems by all non-military government agencies and by government contractors. The purpose of FIPS is to ensure that all federal government and agencies adhere to the same guidelines regarding security and communication.

Financial Data. “Financial data” means information collected from data providers pursuant to Chapter 300 of the MHDO rules, Uniform Reporting System for Hospital Financial Data, that include, but are not limited to, costs of operation, revenues, assets, liabilities, fund balances, other income, rates, charges and units of services.

Health Care Claims Processor. “Health Care Claims Processor” means a third-party payer, third-party administrator, Medicare health plan sponsor, or pharmacy benefits manager.

Health Care Improvement Studies. “Health Care Improvement Studies” means studies of health care utilization, improvements, cost, or quality with a specified purpose for improving the health of Maine people.

Health Care Operations. “Health Care Operations” means activities as defined in HIPAA 45 CFR 164.501 (2015), such as quality assessment and improvement activities, population-based activities relating to improving health or reducing health care costs, and planning analyses related to managing and operating entities providing health care or that provide planned coverage for health care payment.

HIPAA. “HIPAA” means the federal Health Insurance Portability and Accountability Act of 1996. HIPAA regulations are in 45 CFR Parts 160, 162 and 164. Any reference of citation to 45 CFR is to the 2015 version. The cited sections of the CFR are available online at www.hhs.gov.

Hospital Encounter Data. “Hospital Encounter Data” means information consisting of or derived directly from hospital inpatient and outpatient data, which includes identifiable practitioner data elements, or any other derived data sets filed or maintained pursuant to Chapter 241 of the MHDO’s rules, Uniform Reporting System for Hospital Inpatient and Hospital Outpatient and Emergency Department Data Sets.

Longitudinal Research. “Longitudinal Research” is a research method in which data is gathered for the same subjects repeatedly over a period of time. Longitudinal research projects can extend over years. Data Recipients authorized to conduct longitudinal research may integrate the MHDO source data into their internal composite database for the purposes of internal longitudinal research.

MHDO Assigned Member ID. “MHDO Assigned Member ID” is a MHDO assigned replacement Member ID which is unique for a given member within a given payer contract to the extent possible given the identifiers received from data submitters. The MHDO Assigned Member ID is not a direct identifier. MHDO assigned codes or numbers are owned by the MHDO and may only be used pursuant to MHDO DUA’s and for no other purpose. MHDO Level II APCD Data includes this deidentified Member ID.

MHDO Assigned Person ID. “MHDO Assigned Person ID” is a MHDO-assigned replacement Person ID which is unique for a given person regardless of payer, contract, or hospital to the extent possible given the identifiers received from data submitters. The MHDO Assigned Person ID is not a direct identifier. MHDO assigned codes or numbers are owned by the MHDO and may only be used pursuant to MHDO DUA’s and for no other purpose. MHDO Level II APCD, Hospital Data, Cancer-Incidence Registration, Vital Statistics Birth Data, and Vital Statistics Death data includes this deidentified Person ID.

MHDO Assigned Replacement Number or Code. A “MHDO Assigned Replacement Number or Code” is a MHDO created number or code that is used to create anonymous or encrypted data indices. The MHDO Assigned Replacement Number or Code is not a direct identifier. MHDO assigned codes or numbers are owned by the MHDO and may only be used pursuant to MHDO DUA’s and for no other purposes.

MHDO Data. “MHDO Data” means all data submitted to or collected by MHDO. MHDO includes but is not limited to APCD Data (Health Care Claims Data), Hospital Encounter Data, Hospital Financial Data, as defined in MHDO law. All information submitted to or collected by MHDO in accordance with law shall be considered confidential data and protected by privacy and security measures consistent with health care industry standards.

MHDO Data Use Agreement (MHDO DUA). “MHDO Data Use Agreement” is a MHDO document detailing a Data Recipient’s commitment to data privacy and security, as well as restrictions on the disclosure and use of data.

MHDO De-Identified Data. “MHDO De-Identified Data” means information that does not directly or indirectly identify an individual patient and for which there is no reasonable basis to believe the data can be used to identify an individual patient. MHDO Level I Data is considered MHDO De-Identified Data. Level I Data sets may only be used in ways that maintain patient anonymity and for acceptable MHDO uses.

MHDO Limited Data Set. A “MHDO Limited Data Set” includes limited identifiable patient information specified in HIPAA regulations. A MHDO Limited Data Set may be disclosed to a data recipient without a patient’s authorization in certain conditions: (1) the purpose of the disclosure must be limited to research, public health, health care operations; (2) the purpose of the disclosure must be consistent with the purposes of the MHDO and (3) the Data Recipient must sign a MHDO DUA. The identifiable patient information that may remain in a MHDO limited data set includes:

dates such as admission, discharge, service, Date of Birth (DOB), and Date of Death (DOD);

city, state, five-or-more-digit zip code, and

age in years, months or days or hours.

MHDO Level II Data releases are a limited data set. Limited data sets may only be used in ways that maintain patient anonymity.

MHDO Provider Database. “MHDO’s Provider Database” is a directory of healthcare providers in Maine, including identity information for facility providers and individual providers, as well as the relationships between providers and health systems. The information is classified by provider type, specialties, credentials, demographics, and service locations. The database also provides hierarchical structure to allow users to associate service locations within provider groups and health systems.

Minimum Necessary. “Minimum Necessary” is the principle requiring data applicants and recipients to make reasonable efforts to request and use only the minimum amount of data needed to accomplish the intended purpose of the data request for which MHDO approval was granted and for no other purpose.

National Institute of Standards and Technology (NIST). “The National Institute of Standards and Technology” is a measurement standards laboratory. NIST is a non-regulatory agency of the United States Department of Commerce. The institute’s official mission is to promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life.

37. Non-Claims Based Payments. “Non-claims-based” means payments that are for something other than a fee-for-service claim. These payments include but are not limited to Capitation Payments, Care Management/Care Coordination/Population Health Payments, Electronic Health Records/Health Information Technology Infrastructure/Other Data Analytics Payments, Global Budget Payments, Patient-centered Medical Home Payments, Pay-for-performance Payments, Pay-for-reporting Payments, Primary Care and Behavioral Health Integration Payments, Prospective Case Rate Payments, Prospective Episode-based Payments, Provider Salary Payments, Retrospective/Prospective Incentive Payments, Risk-based Payments, Shared-risk Recoupments, and Shared-savings Distributions.

Non-Commercial Redistribution. ‘Non-commercial redistribution” is when an entity purchases MHDO data for inclusion in a larger composite database that is publicly released and available at no cost.

Pharmacy Benefits Manager. "Pharmacy Benefits Manager" means an entity that performs pharmacy benefits management as defined by 24-A MRS §1913.

Proprietary Data. “Proprietary Data” is data that is submitted to the MHDO by a Data Provider which has not been made available to the public and is information that if made available to the public will directly result in the data provider being placed in a competitive economic disadvantage.

Protected Health Information (PHI). “Protected Health Information” includes any individually identifiable health information (including any combination of data elements) that relates to the past, present, or future physical or mental health or condition of an individual; or the past, present or future payment for the provision of health care to an individual; and (a) identifies an individual, or (b) with respect to which there is a reasonable basis to believe that the information can be used to identify an individual patient. It includes direct identifiers such as those in MHDO Chapter 125. PHI also includes individually identifiable registrant information.

Public Data. “Public Data” is data that is published on the MHDO publicly accessible website as required by Title 22, Chapter 1683. Public data includes those parts of hospital Financial Data, described in Chapter 300, and Quality Data, described in Chapter 270 which are available on the MHDO publicly accessible website.

Public Health Authority. “Public Health Authority” means a state or federal agency or authority that is responsible for public health matters as part of its mandate, such as those legally authorized to collect and or receive information for the purposes of preventing or controlling disease, injury or disability. For example, the Maine Center for Disease Control and Prevention, and the federal Centers for Disease Control and Prevention are Public Health Authorities.

Quality Data. “Quality Data” means information consisting of or derived directly from data providers pursuant to Chapter 270 of the MHDO’s rules, Uniform Reporting System for Quality Data Sets. "Quality data" do not include analysis, reports, or studies if those analyses, reports, or studies have already been released as part of a general distribution of public information by the MHDO.

Research. “Research” is any systematic investigation designed to develop or contribute to generalizable knowledge, meaning knowledge that can be applied to populations outside of the population studied.

Researchers. Academic researchers, including those affiliated with public and private universities and medical schools, as well as other organizations and researchers undertaking health care research or health-care related projects.

Registrant. “Registrant” means the individual(s) to whom the record pertains: the child named on a birth certificate, the decedent named on a death certificate, and the subject of cancer registry data.

Staff Delegate. “Staff Delegate” means a member of the MHDO staff to whom the Executive Director delegates specific responsibilities under this Chapter.

Supplemental Data. “Supplemental Data” consists of data elements that are derived directly from the APCD Data and the Hospital Encounter Data and can be requested as supplements to data requests. Specifically, Supplemental Data includes the Group ID Elements and Practitioner Identifiable Data Elements as listed in Appendix C.

Treatment, Payment and Health Care Operations (TPO). “Treatment, Payment and Health Care Operations” has the same meaning as in HIPAA regulations at 45 CFR 164.506(2015). The MHDO may release and disclose PHI to a covered entity for the covered entity’s own treatment, payment, and health care operations activities, in accordance with these rules.

Unauthorized Disclosure. “Unauthorized Disclosure” means to communicate PHI and any other MHDO Data to a person not already in possession of that information or to use information for a purpose not originally authorized. For example, to inform a person of the identity of a previously unnamed patient is to "disclose" unauthorized information not already in that person's possession with respect to the patient.

Vital Statistics Data. “Vital Statistics Data” means information collected from the Maine Department of Health and Human Services, Office of Data Research and Vital Statistics pursuant to Chapter 730 of the MHDO rules, Interagency Reporting of Cancer-Incidence Registry and Vital Statistics Data.

GENERAL PROVISIONS APPLICABLE TO ALL MHDO DATA

Confidentiality of Data

MHDO data may be released only in accordance with this chapter and rules. MHDO may designate certain reports or data as open to public inspection by publishing them on the MHDO public website (Public Data).

MHDO Data and records or documents containing PHI are confidential, may not be open to public inspection, are not public records for purposes of any state or federal freedom of access laws and may not be examined in any judicial, executive, legislative, administrative or other proceeding as to the existence or content of any individual's identifying health information , except that an individual's identifying health information may be used to the extent necessary to prosecute civil or criminal violations regarding information in the MHDO database.

Decisions of the MHDO or employees and subcommittees of MHDO denying or limiting data release are not reviewable externally.

Data elements related to health care facility or practitioner charges(total charges, line-item charges, charge amount) for services rendered shall only be released by MHDO in the average or aggregate in a manner which will prevent a charge/paid ratio to be computed for each type of service rendered for any individual health care claims processor, health care facility, or health care practitioner. All other data related to payment of claims contained in the appendices is publicly available contingent upon MHDO approval of the data request.

Any data that directly identifies or would lead to the indirect identification of practitioners performing abortions as defined by 22 M.R.S. §1596, including a practitioner’s tax identification number, or a practitioner’s Drug Enforcement Administration (DEA) registration number, or National Provider Identifier (NPI) are deemed to be confidential and shall not be released.

HIV Tests and status. Level III Data shall not be released, nor shall any data released by MHDO be used, to individually identify any person’s HIV status, including the results of an HIV test, except to the Maine Center for Disease Control on appropriate application and with a MHDO DUA, to fulfill its statutory duties under 22 M.R.S.A. Chapters 250 and 251. 5 M.R.S. §§ 19203 & 19203-D.

Psychiatric treatment records. Level III Data shall not be released, nor shall any MHDO Data be used to individually identify any patient receiving mental health services including treatment from licensed psychiatric in-patient treatment facilities. 34-B M.R.S. §1207.

Substance abuse treatment. Level III Data shall not be released, nor shall any MHDO Data be used to individually identify any patient regarding receipt of substance abuse treatment by a licensed substance abuse treatment provider. 42 CFR §2.13 (2015).

All data, which are not public data, must be requested by application made to the MHDO, by completing application forms prescribed by MHDO. Data applications shall at a minimum:

Identify the name and address of the person and/or company requesting the data, and identify professional qualifications and affiliations;

identify the specific level of data requested;

describe how any Level II or Level III Data requested meets the standard of “minimum necessary”;

the purpose for which the data will be used;

whether or not an Institutional review board is to be utilized;

the ultimate recipient or user of the data;

specify security and privacy measures that will be taken in order to safeguard patient privacy; and

describe how, or if, the results of the Applicant’s analysis will be published and made publicly accessible.

All uses of released data are governed by the following principles of release:

Level I and Level II Data releases may include MHDO replacement numbers to distinguish individual subjects so long as those individuals remain unidentified and anonymous to the data recipient and anyone obtaining information or reports from the data recipient.

Level III Data requests shall be reviewed and must be approved by the MHDO Data Release Subcommittee before release. Level III Data may be linked and identified only as specified in the MHDO DUA.

All data releases shall be limited to information that is necessary for the stated purpose of the release (minimum necessary).

Supplemental data may only be requested with Level I, Level II, or Level III Data, and is subject to the same limitations and requirements that are associated with the level of data it supplements. In addition, supplemental data element “Payer Assigned Group ID Number” shall be subject to the following conditions:

1. In order for the MHDO to consider releasing a payer assigned group ID number the affected employer must have at least 500 covered employees on their health plan. The` Data Applicant must obtain written authorization from the affected health plan and employer and/ or plan sponsor.

2. Written authorization must include a detailed description of the use of this level of information. The written authorization must also include a statement from the employer certifying that the data will not be used to identify employees and/or dependents.

3. Written authorization must be included with the submission of the data request to the MHDO.

4. Before the release of data including the payer assigned group ID can occur the data applicant will provide the MHDO with the affected payer assigned Group ID Numbers.

All data releases will be governed by a MHDO DUA that provides adequate privacy and security measures including accountability and breach notification requirements similar to those required in business associate agreements under HIPAA. Standard MHDO DUA’s shall be published on the MHDO Public Website.

The MHDO Executive Director and the Data Release Subcommittee have the authority to deny any request for data. A decision to deny or limit a request for data is not reviewable outside the MHDO.

MHDO Data recipients must demonstrate levels of security and privacy practices commensurate with health industry standards for PHI, and with data encrypted at rest and in transit. Data recipients must be able to demonstrate their ability to meet privacy and security requirements. Data releases may be made available to authorized users via an encrypted secure download process.

Data elements related to payment may be arrayed or displayed publicly in a way that shows payments for specific health care services by individual health care claims processors and health care facilities or practitioners only by MHDO. Data recipients may not publicly array or display MHDO Data in this way.

A data recipient may not sell, re-package or in any way make MHDO Data available at the individual element level, unless the ultimate viewers of that data have applied to MHDO for this data, been approved for such access and signed an MHDO DUA.

Data Ownership. MHDO shall maintain ownership of all data elements and sets it releases including any MHDO generated numbers or identifiers therein. MHDO ownership of the data and the laws controlling MHDO Data survive the expiration of any DUA or Agreement regarding MHDO Data. MHDO reserves the authority to stop access to MHDO Data without notice, and demand the return or destruction of MHDO Data. MHDO Data recipients acquire no enforceable property rights to MHDO Data or access to MHDO Data. Data Recipients must submit a written certification to the MHDO verifying destruction of the MHDO data within five business days of the completion of the data recipients stated purpose of the data use, or demand by the MHDO Executive Director.

The Executive Director reserves the right to stop access to Data even after approval; and/or demand and secure the destruction or return of all MHDO Data, when the Executive Director concludes that is necessary to protect the privacy, integrity or security of MHDO Data.

Data Recipients are prohibited from computing or trying to compute any charge/paid ratio for a type of service rendered for any individual health care claims processor, health care facility, or health care practitioner.

MHDO DATA USE AGREEMENT (MHDO DUA)

All Data Recipients must sign a MHDO DUA. Only MHDO may use the MHDO DUA. The MHDO DUA is the document that details the data Recipient’s commitments to data privacy and security, as well as the restrictions on the disclosure and use of the MHDO Data. The MHDO DUA shall provide adequate privacy and security measures that include appropriate accountability and breach notification requirements as required of business associates under HIPAA. Standard MHDO DUA’s shall be published on the MHDO public website.

Data Recipients must sign the MHDO DUA before the MHDO will release data at any level. MHDO DUA’s shall include, but not be limited to the key provisions listed below:

The Data Recipient will only use the MHDO released data for the approved purposes that were specified in the data request application.

The Data Recipient will not release, furnish, disclose, publish or otherwise disseminate MHDO released data to any person unless authorized in writing by the MHDO.

The MHDO shall retain all ownership rights to the data.

The Data Recipient will reference the MHDO as the source of the data in all reports, publications, tables, graphs, or other products produced from the data.

Unless authorized in writing by the MHDO, the Data Recipient will not use the MHDO Data, or link these data to other records or data bases, if the result allows for identifying individuals.

MHDO Data may not be used to take legal, administrative, or other actions against individual subjects of data or to contact or assist others to contact any individual patients and/or physicians.

Maine law controls the confidentiality, release, and use of MHDO Data.

Data recipients shall be responsible for reporting any potential or actual data breaches to the MHDO. Data recipients shall indemnify MHDO for any damages resulting from a data recipient’s data breach or other violation of law, and mitigate to the extent practicable, all harmful effects resulting from misuse of MHDO data.

MHDO shall retain rights to track any person’s use of or access to MHDO Data, and to deny access to data, when in the opinion of the MHDO Executive Director that is necessary to protect the privacy, security, or integrity of the data.

At least twenty (20) business days prior to releasing any manuscript, report, or any other type of document or data compilation intended for dissemination or publication beyond the data recipient and that contains and/or uses MHDO Data, the Data Recipient agrees to provide the MHDO with a copy of such document. If the MHDO Data includes Cancer-Incidence Registry Data, the MHDO will forward a copy of the document to the Maine Cancer Registry. If the document contains/uses Cancer-Incidence Registry Data, that shall be sourced as follows: The Cancer-Incidence Registry Data was collected by the Maine Cancer Registry which participates in the National Program of Cancer Registries (NPCR) of the Centers for Disease Control and Prevention. If the MHDO determines that the manuscript, report, or any other type of document violates the MHDO DUA or does not provide adequate data suppression, the Data Recipient will be notified and must modify the report prior to its release.

The MHDO DUA will specify the term of use, and identify the individual responsible for ensuring compliance with the DUA and specify the people who will have access to the data.

MHDO DUA’s shall make appropriate provision for the destruction of MHDO Data when use is complete, or when directed to by the MHDO Executive Director.

Data Recipients shall immediately inform the MHDO of any legal process by which third parties try to obtain access to MHDO data held by entities authorized through an approved MHDO DUA and shall not turn over any data except as permitted by MHDO.

MHDO may develop a memorandum of understanding and MHDO DUA with the Maine Center for Disease Control and Prevention (Maine CDC) for the ongoing release of Level I and Level II data to the Maine CDC for their purposes of conducting investigations as described in its MHDO application or evaluating the completeness or quality of data submitted to the Department of Health and Human Services disease surveillance programs.

MHDO DATA Sets AND DATA RELEASE TYPES

MHDO Data Sets available for Public Access:

APCD Data-Available in three Levels: Level I, Level II and Level III Data sets

Hospital Encounter Data- Available in three Levels: Level I, Level II and Level III Data sets

Hospital Financial Data- Considered Level II Data

Provider Database - Considered Level I Data

Hospital Quality Data-Considered Level I Data

Supplemental Data-Available with any of the three Levels: Level I, Level II and Level III Data Sets

Cancer-Incidence Registry Data – Available in Level II and Level III Data Sets

Vital Statistics Birth Data – Available in Level II and Level III Data Sets

Vital Statistics Death Data – Available in Level II and Level III Data Sets

Non-Claims-Based Payments Data – Available in Level I

2. MHDO Data Sets include data elements listed in the appendices so long as the MHDO collects the data elements. If a data elements code, version, name and or usage are changed the updated data element shall be released.

DATA REQUESTS FOR LEVEL I DATA

MHDO Level I Data Elements

The data elements available in the MHDO Level I Data Sets are listed in Appendices A and C.

Process for Requesting Level I Data

Requests for Level I Data shall be made in writing by filing an application with the MHDO in a form specified by the MHDO as provided on the MHDO Public Website. Data in APPENDIX C must be specifically requested.

Data requests for purposes of commercial redistribution that are aggregate level reporting, including online tools, are only eligible for Level I data elements.

The MHDO shall fulfill requests for Level I Data based upon an application that establishes to the MHDO’s satisfaction that the purpose of the data request is consistent with the permissible use of the MHDO Level I De-Identified data.

MHDO Level I Data requests require review and approval by the Executive Director or staff delegate.

The Executive Director may take Level I Data requests to the MHDO Data Release Subcommittee for advice.

The Executive Director or designee has discretion to deny a request for Level I Data if they determine that the use of the data is not consistent with the permissible uses and/or that applicant does not meet requirements regarding security and privacy protections.

The Executive Director may add any restrictions to the MHDO DUA.

The data applicant and or the data provider may request a review of the decision(s) made by the MHDO Executive Director as described in Section 11.

Prior to releasing the MHDO Data the authorized entity or individual must enter into a MHDO DUA.

DATA REQUESTS FOR LEVEL II DATA

MHDO Level II Data Elements:

The data elements available in the MHDO Level II Data include those available at Level I and those listed in Appendix B.

Process for Requesting Level II Data

Requests for Level II Data shall be made in writing by filing an application with the MHDO in a form specified by the MHDO as provided on the MHDO Public Website. Data in APPENDIX C must be specifically requested.

The Executive Director shall fulfill requests for Level II Data based upon an application that establishes to their satisfaction that the data request and use of the data meets the defined purposes and permissible uses of the MHDO Level II Limited Data Sets.

MHDO Level II Data requests will be reviewed by the Executive Director or staff delegate.

The Executive Director may take Level II Data requests to the MHDO Data Release Subcommittee for advice.

The Executive Director may deny a request for Level II Data if it is determined the use of the data is not consistent with the permissible uses and or requirements regarding security and privacy protections.

The Executive Director may add any restrictions to the MHDO DUA.

The data applicant and or the data provider may request a review of the decision(s) made by the MHDO Executive Director as described in Section 11.

Prior to releasing the MHDO Data the authorized entity or individual must enter into a MHDO DUA.

DATA REQUESTS FROM COVERED ENTITIES WHO ARE DATA PROVIDERS FOR LEVEL III DATA

MHDO Level III Data Elements:

The data elements available in the MHDO Level III Data include elements available at Level I Data and Level II Data, and additional elements in APPENDIX D. Data in APPENDIX C must be specifically requested.

Process for Requesting Level III Data

Requests for Level III Data shall be made in writing by filing an application with the MHDO in a form specified by the MHDO as provided on its Website.

Level III Data may be requested by a covered entity that is a Data Provider or the Covered Entity’s Business Associate for the purposes of Treatment, Payment and Health Plan Operations and which meet the permissible uses for MHDO Data releases.

Level III Data may also be used for Health Care Improvement Studies involving patients with whom the study entity has a treatment or payor relationship.

MHDO may release Level III Data to a covered entity’s data applicant or to the covered entity's business associates, provided the business associates are listed on, and bound by, the MHDO DUA.

The Executive Director shall convene the MHDO Data Release Subcommittee to review and consider all Level III applications as provided for in Section 12.

The Executive Director shall bring to the MHDO Data Release Subcommittee all comments received regarding the data release, including any claims of proprietary data.

An applicant receiving Level III Data may use the data only to the minimum extent necessary to accomplish the purposes stated in the application for which approval was granted and for no other purpose. The MHDO Data Release Subcommittee may add any restrictions to the MHDO DUA.

The decision of the MHDO Data Release Subcommittee to release Level III Data is final, unless a timely appeal to the Board of Directors is filed in accordance with Section 11 and 12.

Prior to releasing the MHDO Data the applicant must enter into a MHDO DUA.

PUBLIC HEALTH AUTHORITIES PERMITTED USE AND RELEASE of Level iii data

The MHDO may release Level III Data to a Public Health Authority for public health purposes authorized or mandated by state and or federal law.

The public health authority shall complete an MHDO application. The application shall include descriptions of the public health investigation or research; professional qualifications and affiliations of the staff; background of the study; research questions; research design or specify other permissible use.

After receipt of a data request from a Public Health Authority, the MHDO shall publish the request and notify each affected data provider. The notice will include a copy of the proposed protocol and will summarize the nature of the proposed investigation or research.

Data providers or other interested parties may submit comments to the Executive Director related to Level III Data requests.

The Executive Director shall convene the MHDO Data Release Subcommittee to review and consider all Level III applications as provided for in Section 12.

An applicant receiving Level III Data may use the data only to the minimum extent necessary to accomplish the purposes stated in the application for which approval was granted and for no other purpose. The MHDO Data Release Subcommittee may add any restrictions to the MHDO DUA.

The decision of the MHDO Data Release Subcommittee to release Level III Data is reviewable as provided in Sections 11 and 12.

Prior to releasing the MHDO Data the applicant must enter into a MHDO DUA.

PUBLIC NOTICE OF ALL DATA REQUESTS INCLUDING NOTICE TO DATA PROVIDERS AND COMMENT PERIODS

The MHDO shall create a page on its web site that lists the identity and address of all parties requesting MHDO Data. The MHDO will include the level of data requested and the purpose of the request.

MHDO shall add new data requests to the public site on the first business day of every week.

MHDO will send an electronic notification to the data providers that are responsible for the submission of the data to the MHDO, and other interested parties notifying them of new data requests on the first business day of the week.

For all data requests the data providers or other interested parties may submit to the Executive Director comments related to the data request. To be considered, comments must be received by the Executive Director in writing or electronic notification no later than thirty business days after the initial posting of the data request on the MHDO web site. If the Executive Director determines that (a) the comments received are of significant enough importance to delay the release of Data and/or (b) additional information is required from the requesting party to address the comments; then the data shall not be released until the additional information has been received from the requesting party and an additional review is conducted by the Executive Director or the MHDO Data Release Subcommittee, as applicable, to ensure that the requesting party conforms to all applicable requirements of this chapter.

The Executive Director will bring all comments received from the data providers and or other interested parties for the release of Level III Data to the MHDO Data Release Subcommittee for consideration.

MHDO will publish notice of the Level III Data requests in, at a minimum, three major news publications.

Decisions of the Executive director and the data release subcommittee and the mhdo board of directors

Decisions of the Executive Director which either allow or deny a data applicant’s data request for Level I or Level II data, or any elements of a data request for Level I or Level II data, or that add additional requirements to a related MHDO Data Use MOU, may be appealed by either the data applicant or data provider to the Data Release Subcommittee, and then to the MHDO Board of Directors pursuant to Section 11 and 12.

Decisions of the Data Release Subcommittee regarding release of Level III Data that deny or allow a data applicant’s data request or any elements of a data request, or that add additional requirements to a MHDO DUA, are reviewable. The data applicant or data provider may appeal the decision(s) of the Data Release Subcommittee to the MHDO Board of Directors.

A. Decisions of the Executive Director or Data Release Subcommittee or MHDO Board of Directors shall be provided by electronic notification to data providers who submitted comment to the Executive Director and to data applicants.

B. The data shall be released as approved no less than ten business days after the electronic notification and provided that the data applicant meets the requirements of these rules.

C. Level I and Level II Data approved by the MHDO Executive Director, and Level III Data approved by Data Release Subcommittee, shall be released as approved unless a data provider or data applicant takes action within ten business days of the electronic notification by submitting in writing to the attention of the MHDO Executive Director a request for review to the next higher authority. The request shall clearly state the basis for the review or requested action.

D. There shall be no further review, administrative or judicial, from a decision of the MHDO Board of Directors regarding release of MHDO Data.

The Executive Director or Data Release Subcommittee or the MHDO Board of Directors may deny release of any data requested or any data element requested for any reason, including but not limited to protecting the privacy, integrity or security of MHDO data. The Data Applicant will be informed of any such decisions and the reasons for the decision. Such decisions are not reviewable, except as stated above in Subsection 11(1)(2).

ROLE AND RESPONSIBILITIES OF THE MHDO DATA RELEASE SUBCOMMITTEE and the MHDo board of directors

The MHDO Board of Directors shall establish a Data Release Subcommittee. This committee will review and consider all data applications that include the request for Level III Data. This subcommittee will review and consider all data applicant and or data providers’ requests for review of the decisions of the MHDO executive director regarding Level I and Level II data as described above in Section 11(1).

This subcommittee may also provide advisory reviews of other data applications and or requests at the discretion of the Executive Director.

The Data Release Subcommittee shall include 6 members of the MHDO Board of Directors. The Chair and Vice Chair of the board shall appoint the members of the subcommittee with the approval of the board. The composition of the committee is: one member representing health care plans, one member representing health care providers, one member representing hospitals, one member representing employers, one member representing consumers and one member representing government. The Executive Director shall staff the Data Release Subcommittee meetings.

The Data Release Subcommittee requires four votes in the affirmative to take action.

The Executive Director shall convene the Data Release Subcommittee no later than sixty business days after the initial posting of the data request on the MHDO web site to review and consider Level III applications for data.

If a review is requested, the Executive Director shall convene the Data Release Subcommittee no later than sixty business days after the initial decision made by the executive director to allow or deny a data release as described in Section 11(1).

The Data Release Subcommittee shall review applications for Data as provided for in these rules and will determine whether the data applicant has met the MHDO criteria for release and may take any other action provided for in these rules.

The MHDO Board of Directors requires a majority vote in the affirmative to take action.

The Data Release Subcommittee may meet via electronic means, as long as a record is made of the meetings, and they provide for public participation.

The MHDO will post information about the Data Release Subcommittee’s membership, scheduled meetings, and agendas on its Website.

Individual Choice, Process to File Complaints

Individual Choice

Choice regarding disclosure of information: The MHDO shall provide the opportunity for any person to choose to opt out and have their direct identifiers excluded from all subsequent Level III Data releases.

An individual that decides to opt out or opt back in is responsible for completing the MHDO Choice Disclosure Form available on the MHDO Public Website or by calling the MHDO and filling the form out telephonically. Individuals who opt out of a specific study will remain opted out of Level III Data releases unless they opt back in.

The MHDO will post all Level III Data requests on its publicly accessible website. Individuals who want to opt out of a specific Level III Data release may do so by completing the MHDO Choice Disclosure Form no later than thirty business days after the initial posting of the data request on the MHDO web site. Individuals that do this will remain opted out of all subsequent Level III Data releases by MHDO unless they choose to opt back in.

A person who has chosen to have their direct identifiers excluded from Level III Data releases may choose to opt back in at any time.

Process to File a Written Complaint

If an individual believes that his or her direct identifiers have been released by the MHDO, the board, or an employee of the organization, in violation of laws applicable to the MHDO, that individual may file a written complaint with the MHDO’s Executive Director.

Instructions on how and where to submit the written complaint are provided on the MHDO public website.

The MHDO Executive Director or Staff Delegate shall respond in writing to the individual regarding whether the complaint alleges a violation of applicable law; if so, whether any violation of the rules has occurred; and any measures that have been taken as a result of the complaint.

If the individual is not satisfied with the response of MHDO, the complainant will be advised of how to make a complaint to the Joint Committee on Health and Human Services of the Maine Legislature.

Any complaint received by MHDO shall be reported by the Executive Director to the MHDO Executive Committee within fifteen business days of the receipt of the written complaint, and to the MHDO Board at the next public meeting.

The Executive Director may take any steps necessary protect the privacy, security and integrity of MHDO Data.

DATA BREACH

Breach of PHI. An impermissible use or disclosure of PHI is presumed to be a breach unless the MHDO concludes based on demonstrable evidence that there is a low probability that the PHI has been compromised.

Any person may report, and employees, vendors, board and subcommittee members shall report, to the Executive Director of MHDO when they believe a potential breach of PHI has occurred or may occur. When a potential breach of PHI is reported or made known to the MHDO Executive Director, a risk assessment shall be conducted by the Executive Director or the Staff Delegate immediately and shall consider at least the following factors:

The nature and extent of the PHI involved, including the types of identifiers and the likelihood of re-identification;

the unauthorized person who used the PHI or to whom the disclosure was made;

whether the PHI was actually acquired or viewed; and,

the extent to which the risk to the PHI has been mitigated.

Whether and how the data was secured, including encryption.

The Executive Director shall keep a report of any such investigations and make the results known to the MHDO Executive Committee within twenty-four hours of the determination.

If the Executive Director determines the data were encrypted or that there was a low probability of compromise to any PHI involved or that one of the exceptions to breach notification exists (unintentional or inadvertent disclosures to employees held to same security and privacy standards and not further disclosed or good faith reason to believe unauthorized person to whom a disclosure was made could not reasonably retain the PHI), there shall be no individual notification made.

If there is a breach of unencrypted data including PHI that would require notice to affected individuals if the breach occurred at a covered entity, MHDO will provide individual notification similar to notification requirements of the HIPAA Privacy Rule and HIPAA Breach Notification Rule.

In the event that the MHDO Executive Director determines a data breach was caused by the MHDO requiring notification to affected individuals, the Executive Director and the Executive Committee of the MHDO Board shall notify the Joint Standing Committee of the Legislature having jurisdiction over Health and Human Services matters, and the membership of the MHDO Board within 30 business days of the breach.

The notification to the Health and Human Services Committee and the MHDO Board regarding the breach will maintain the confidentiality of all individuals affected by the breach. The notification to the committee and board will include the types of information provided to individuals.

Any potential breaches of PHI by MHDO vendors, State employees, or recipients of MHDO Data shall be reported to the Executive Director, reviewed by the Executive Director, and results reported to the MHDO Board.

DATA GOVERNANCE, DATA USE AND STEWARDSHIP BY MHDO

Internal MHDO Use of Data: The MHDO will use the data it collects as described in 90-590 C.M.R. Chapters 241, 243, 270, 300 and 630 to:

Fulfill its responsibilities as described in Title 22 Chapter 1683;

Link APCD data with hospital encounter data or other MHDO data; and, if authorized in the data application, link external data sets to the MHDO Data set provided that the data are released to the Data Recipient de-identified;

Produce customized reports as requested by the Governor’s office, other government agencies, the Maine State Legislature and other external parties;

Authenticate and ensure the integrity of data filed with MHDO;

Produce MHDO generated numbers to allow for the distinguishing of and longitudinal tracing of individuals, without individually identifying the individuals; and

Identify and exclude data entitled to special confidentiality protections as provided in this rule.

Safeguards. The MHDO will maintain reasonable and appropriate administrative, technical, and physical safeguards for protecting of MHDO data, records and documents as follows:

MHDO administrative safeguards will ensure the confidentiality, integrity, and availability of all data MHDO creates, receives, maintains or transmits, and ensure compliance by our workforce and vendor(s).

The MHDO will use security management processes, and its security and privacy officer to identify and analyze potential risks to confidential data and implement security measures that reduce risks and vulnerabilities to a reasonable and appropriate level.

Information Access Management. The MHDO will continue to implement policies and procedures for authorizing access to confidential data only when such access is appropriate based on the user or recipient's role (role-based access).

Workforce Training and Management. The MHDO will provide appropriate authorization and supervision of workforce members who work with confidential data. The MHDO will train all workforce members regarding its security policies and procedures and must have and apply appropriate sanctions against workforce members who violate its policies and procedures. Sanctions shall be disciplinary actions that follow principles of progressive discipline similar to those outlined in the State’s bargaining contract applicable to the Professional and Technical Services Bargaining Unit agreement. Sanctions may include any of the following depending on the severity of the action for which they are given: oral or written reprimand, suspension, demotion, and dismissal.

Evaluation. The MHDO will perform an annual assessment of its security policies and procedures to ensure that they are functioning appropriately and report the results to the MHDO Board.

MHDO will apply health care industry standards to provide physical safeguards and technical safeguards to protect PHI and data. These safeguards will be specified in an MHDO policy.

MHDO vendors shall be held by contract to high PHI security standards including federal standards such as the Federal Information Security Management Act, provisions of mandatory Federal Information Processing Standards (FIPS), and shall meet all of NIST’s IT, data, system and physical security requirements. By contract, the MHDO Data warehouse vendor must maintain appropriate insurance coverage for MHDO’s data.

ENFORCEMENT AND PENALTY PROVISIONS

In addition to other applicable civil and criminal provisions, the following provisions apply to violations of the laws and these rules for the safeguarding of the identification of individual patients and confidential information.

Any person or entity that receives data or information pursuant to this Chapter or who has access to MHDO data as an employee or a vendor of MHDO and who uses, sells or transfers the data in violation of the board’s rules for commercial advantage, pecuniary gain, personal gain or malicious harm is considered to have committed a civil violation under 22 M.R.S. §8705-A for which a fine not to exceed $500,000 may be levied by the MHDO, as set forth in 90-590 C.M.R. Chapter 100.

Reports or knowledge of any such activity shall be referred to the MHDO Board by the Executive Director and the Board shall investigate such reports, make findings, determine and levy an appropriate fine.

The MHDO shall consider criteria such as the amount of data misused, whether the data misused involved any PHI, amount of any gain involved, extent of harm to any individual whose data was misused, and any other criteria MHDO deems pertinent to such a fine.

Any person or entity that receives data or information pursuant to this Chapter, and who does not fall within Subsection 2, but who violates a provision of a MHDO DUA or these rules, does not return or destroy MHDO Data when directed to by the Executive Director, or who does not modify a document that contains or uses MHDO Data, in accordance with directives of the Executive Director, commits a violation of these rules for which a fine of up to $2500 may be levied by the MHDO, in accordance with procedures set forth in Chapter 100. Each day that any such violation exists may be considered a separate occurrence.

Petition for Review; Fair Hearing; Judicial Review. Unless otherwise provided for by statute a person adversely affected by any determination made under this Section by the MHDO may petition the MHDO Board for review of the decision. The petition must be filed within fifteen business days, in accordance with 5 M.R.S. Chapter 375. If such petition is denied in whole or part, that decision shall be Final Agency Action and shall be appealable to Superior Court in accordance with the provisions of 5 M.R.S. Chapter 375 and M.R.Civ.P. 80C.

Upon a finding that a person or entity has failed to comply with the requirements of 22 M.R.S., Chapter 1683, any rules adopted by the MHDO Board, or pay a fine levied by the MHDO Board, the MHDO Board may undertake any or all of the following:

Refer the matter to the Department of Health and Human Services or board that issued a license to the provider for such action as the Department or board considers appropriate.

Refer the matter to the Department of Professional and Financial Regulation, Bureau of Insurance for such action against the payer as the Bureau considers appropriate.

Injunctive Relief. File a complaint with the Superior Court in the county in which the person resides or the entity is located, or in Kennebec County, seeking an order to require that person or entity in non-compliance to comply with the requirements for which adjudication is being sought, and for the enforcement of any fine determined by the Board or for other relief from the court.

History

• STATUTORY AUTHORITY: 22 MRS §8704(4) and PL 2013, Chapter 528
• EFFECTIVE DATE: June 27, 1984
• AMENDED: October 5, 1987
• AMENDED: April 24, 1991
• AMENDED: November 5, 1991
• AMENDED: July 6, 1994
• AMENDED: January 1, 1995
• AMENDED: February 17, 1998
• AMENDED: February 13, 2000 – filing 2000-69
• AMENDED: August 9, 2003 - filing 2003-244, major substantive
• AMENDED: August 6, 2005 – filing 2005-278, major substantive
• AMENDED: January 1, 2007 – filing 2006-209, major substantive
• AMENDED: June 22, 2008 – filing 2008-227, major substantive
• AMENDED: August 15, 2009 – filing 2009-366, major substantive
• REPEALED AND REPLACED: July 28, 2016 – filing 2016-108, major substantive
• AMENDED: May 28, 2022 – filing 2022-074, major substantive
• AMENDED: DATA ELEMENTS RELEASED IN LEVEL I FILE- DE-IDENTIFIED DATA
• AMENDED: APCD Data includes: eligibility, claims, pharmacy and dental files (A.1)
• AMENDED: Hospital Encounter Data includes Inpatient and Outpatient data files (A.2)
• AMENDED: Level I Data sets also include Provider Database (APPENDIX A.3), Hospital Quality Data (APPENDIX A.4) and Non-Claims-Based Payments Data (APPENDIX A.5).
• AMENDED: APPENDIX A.1 APCD Data Elements
• AMENDED: Medical Eligibility File Data Elements:
• AMENDED: MHDO assigned Submitter ID Number/NameMHDO assigned Payer ID Number/NamePayer NAICYearMonthCoverage Level CodeMember GenderMember State or ProvinceMedical CoveragePrescription Drug CoverageDental CoveragePrimary Insurance IndicatorCoverage TypeMarket Category CodeRecord TypeMember Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)MHDO assigned Record ID NumberMedicare CoverageFile IDStandardized Insurance Individual Relationship CodeStandardized Insurance Type/Product CodeDuplicate IndicatorCoverage Period (Year + Month)
• AMENDED: Medical Claims File Data Elements:
• AMENDED: MHDO assigned Submitter ID Number/NameMHDO assigned Payer ID Number/NamePayer NAICClaim Line NumberClaim Version NumberIndividual Relationship CodeMember GenderMember State or ProvincePriority (Type) of Admission or VisitPoint of Origin for Admission or VisitPatient Discharge StatusType of Bill - InstitutionalPlace of Service - ProfessionalClaim StatusRevenue CodeProcedure CodesProcedure ModifiersQuantityPaid AmountPrepaid AmountCopay AmountCoinsurance AmountDeductible AmountDiagnosis-Related Group (DRG)DRG VersionAmbulatory Payment Classification (APC)APC VersionNational Drug Code (NDC)Billing Provider NumberDiagnoses (Principal, Admitting, Reason for Visit, External Cause of Injury, Other)Present on Admission IndicatorsMHDO assigned Record TypeMember Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)MHDO assigned Record ID NumberMedicare CoverageFile IDMHDO assigned Provider ID NumberStandardized Insurance Type/Product CodeYear PaidYear IncurredQuarter PaidQuarter IncurredRendering Provider Specialty Rendering Provider City Name Rendering Provider State or Province Rendering Provider Zip Code Data Processing Center Code Rendering Provider Taxonomy Code Rendering Provider Country Service Facility Location Name Service Facility NPI Service Facility Location Address Service Facility Location City Service Facility Location State or Province Service Facility Location Zip Code Service Facility NumberAttending Provider Specialty Attending Provider City Name Attending Provider State or Province Attending Provider Zip Code Operating Provider City Name Operating Provider State or Province Referring Provider Zip Code Referring Provider City Name Referring Provider State or Province Referring Provider Zip Code In-Plan Network Flag
• AMENDED: Pharmacy Eligibility File Data Elements:
• AMENDED: MHDO assigned Submitter ID Number/NameMHDO assigned Payer ID Number/NamePayer NAICYearMonthCoverage Level CodeMember GenderMember State or ProvinceMedical CoveragePrescription Drug CoverageDental CoveragePrimary Insurance IndicatorCoverage TypeMarket Category CodeRecord TypeMember Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)MHDO assigned Record ID NumberMedicare CoverageFile IDStandardized Insurance Individual Relationship CodeStandardized Insurance Type/Product CodeDuplicate IndicatorCoverage Period (Year + Month)
• AMENDED: Pharmacy Claims File Data Elements:
• AMENDED: MHDO assigned Submitter ID Number/NameMHDO assigned Payer ID Number/NamePayer NAICClaim Line NumberIndividual Relationship CodeMember GenderMember State or ProvinceClaim StatusDrug CodeDrug NameNew Prescription or RefillGeneric Drug IndicatorDispense as Written CodeCompound Drug IndicatorQuantity DispensedDays’ SupplyPaid AmountIngredient Cost/List PricePostage Amount ClaimedDispensing FeeCopay AmountCoinsurance AmountDeductible AmountPatient Pay AmountRecord TypeMember Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)Record ID NumberFile IDStandardized Member GenderStandardized Insurance Type/Product CodeMHDO Assigned Pharmacy ID NumberYear PaidYear IncurredQuarter PaidQuarter IncurredPrescribing Physician ID NumberSubmitter CodeMHDO Assigned DPC CodePharmacy NumberPharmacy NameNational Pharmacy ID NumberPharmacy Location CityPharmacy Location StatePharmacy ZIP CodePharmacy Country Name In-Plan Network Flag
• AMENDED: Dental Eligibility File Data Elements:
• AMENDED: MHDO assigned Submitter ID Number/NameMHDO assigned Payer ID Number/NamePayer NAICYearMonthCoverage Level CodeMember GenderMember State or ProvinceMedical CoveragePrescription Drug CoverageDental CoveragePrimary Insurance IndicatorCoverage TypeMarket Category CodeRecord TypeMember Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)MHDO assigned Record ID NumberMedicare CoverageFile IDStandardized Insurance Individual Relationship CodeStandardized Insurance Type/Product CodeDuplicate IndicatorCoverage Period (Year + Month)
• AMENDED: Dental Claims File Data Elements:
• AMENDED: MHDO assigned Submitter ID Number/NameMHDO assigned Payer ID Number/NamePayer NAICIndividual Relationship CodeMember GenderMember State or ProvinceFacility Type – ProfessionalClaims StatusCDT CodeProcedure ModifiersPaid AmountCopay AmountCoinsurance AmountDeductible AmountBilling Provider NumberRecord TypeMember Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)MHDO assigned Record ID NumberMHDO assigned Provider ID NumberFile IDStandardized Insurance Type/Product CodeYear PaidYear IncurredQuarter PaidQuarter IncurredRendering Provider Specialty MHDO Assigned DPC Code Service Provider Taxonomy Code Service Provider Country Service Facility Location Name Service Facility NPI Service Facility Location Address Service Facility Location City Service Facility Location State or Province Service Facility Location Zip Code Service Facility Number In-Plan Network Flag
• AMENDED: APPENDIX A.2 Hospital Encounter Data Elements
• AMENDED: Hospital Inpatient Data Elements:
• AMENDED: MHDO Assigned Record IDMHDO Assigned Record Sequence NumberMHDO assigned Payer ID Number/NamePayer NAICHospital CodePatient GenderPatient Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)Priority of Visit (Type)Point of Origin of Admission (Source)Admitting DiagnosisPatient Hospital Service Area Patient Health Planning Area Patient StateAdmission YearAdmission QuarterDischarge YearDischarge QuarterPatient Discharge StatusMHDO Assigned Payer Code(s) Diagnosis Code(s)Procedure Code(s)MHDO-assigned Attending Provider Specialty CodeMHDO-assigned Operating Provider Specialty CodeAccommodations Revenue Code(s)Accommodations UnitsDRG and MDC Code(s)Length of StayEstimated Birth Weight (< 30 Days Old)Ancillary Revenue Code(s)Total Number of Ancillary Revenue Code(s)MHDO assigned Attending Physician CodeMHDO assigned Operating Provider CodeAttending Physician TaxonomySurgeon/Other Provider Taxonomy
• AMENDED: Hospital Outpatient and Emergency Department Data Elements:
• AMENDED: MHDO Assigned Record IDMHDO Assigned Record Sequence NumberMHDO assigned Payer ID Number/NamePayer NAICHospital CodeLocation of ServicePatient GenderPatient Age (Calculated age for individuals 90 or over will be displayed as “90 or over”.)Patient StateHospital Service Area of PatientHealth Planning Area of PatientDate of Service From (Year and Quarter)Date of Service Thru (Year and Quarter)Bill TypePatient Discharge StatusPoint of OriginDiagnosis Code(s)Procedure Code(s) Service Date(s) (Year and Quarter)MHDO-assigned Attending Provider Specialty CodeMHDO-assigned Operating Provider Specialty CodeMHDO assigned Payer Code(s)Revenue Code(s)Modifier(s)Number of Detail RecordsUnitsMHDO Assigned Emergency Department IndicatorMHDO assigned Attending Physician CodeMHDO assigned Operating Provider CodeAttending Physician TaxonomySurgeon/Other Provider Taxonomy
• AMENDED: APPENDIX A.3 Provider DATABASE
• AMENDED: The MHDO Provider Database includes relational and organizational information on health systems and facilities in Maine, including but not limited to hospitals, physician practices, specialty care practices, primary care practices, behavioral health service providers, chiropractors and MaineCare providers. These data can be accessed as standalone data files or can be joined to other MHDO data files that include provider information.
• AMENDED: Data elements are:
• AMENDED: Entity NameEntity IDEntity TypeFacility National Provider Identifier (NPI)Facility On CompareMaineEntity Physical AddressEntity Phone NumberEntity Fax NumberEntity WebsiteEntity Hospital Service AreaEntity CountyEntity Latitude Entity LongitudeEntity RelationshipEntity Last Updated DateProvider National Provider IdentifierProvider IDProvider PrefixProvider First NameProvider Middle Name or InitialProvider Last NameProvider SuffixProvider CredentialProvider Office Street AddressProvider CountyProvider Phone NumberProvider Fax NumberProvider WebsiteProvider NPI Last Update DateNPI Provider Enumeration DateNPI Provider Deactivation DateNPI Provider Deactivation Reason CodeNPI Provider Certification DateNPI Provider GenderProvider SpecialtiesProvider Employment Start DateProvider Employment End Date
• AMENDED: APPENDIX A.4 Hospital Quality Data
• AMENDED: Hospital Quality Data includes the following data elements:
• AMENDED: Healthcare Associated Infections (HAI)
• AMENDED: MeasureMeasure OverviewNumeratorDenominatorHAI-1Central line catheter associated blood stream infection rate for intensive care unit patientsNumber of infectionsNumber of central line daysHAI-2Central line catheter associated blood stream infection rate for high-risk nursery patientsAll birth weight categoriesNumber of infectionsNumber of catheter daysHAI-6Catheter-associated urinary tract infection ratesNumber of infectionsNumber of catheter daysHAI-7Surgical Site Infection rate for patients undergoing inpatient knee prosthesis (arthroplasty of knee) surgical proceduresNumber of infectionsNumber of operative proceduresHAI-8Surgical Site Infection rate for patients undergoing inpatient hip prosthesis (arthroplasty of hip) surgical proceduresLabID EventsMRSAHealthcare-associated Methicillin-Resistant Staphylococcus aureus (MRSA) bloodstream events (a MRSA event is a laboratory discovery of MRSA bacteria in a patient's blood sample) Number of LabID eventsNumber of patient daysC.diff.Healthcare-associated Clostridioides difficile (C.diff.) LabID events (a laboratory discovery of C.diff. bacteria in a patient's loose stool)Number of LabID eventsNumber of patient days
• AMENDED: Nursing Sensitive Indicators (NSI)
• AMENDED: MeasureMeasure OverviewNumeratorDenominatorNSPC1Percentage of inpatients who have a hospital-acquired Stage 1 or greater pressure ulcerNumber of inpatients w/ Stage 2 or higher hospital acquired pressure ulcerNumber of inpatients in the prevalence studyNSPC2Number of inpatient falls per inpatient dayNumber of fallsNumber of inpatient daysNSPC3Number of inpatient falls with injuries per inpatient dayNumber of falls with injury
• AMENDED: APPENDIX A.5 Non-Claims-Based Payments Data
• AMENDED: Non-claims-based payments data includes the following aggregated data elements:
• AMENDED: Insurance Type/Product CodeTotal Number of MembersTotal Member MonthsTotal Dollars Non-Claims-Based PaymentsTotal Dollars Non-Claims-Based Payments (Primary Care Only/Portion)
• AMENDED: DATA ELEMENTS RELEASED IN LEVEL II FILE- LIMITED DATA
• AMENDED: Level II Limited Data includes the data listed in Appendix A, plus the data elements in Appendix B.
• AMENDED: APCD Data includes: eligibility, claims, pharmacy and dental files (B.1)
• AMENDED: Hospital Encounter Data includes Inpatient and Outpatient and Emergency Department data files (B.2)
• AMENDED: Level II Data sets also include Hospital Financial Data (B.3), Cancer-Incidence Registry Data (B.4), Vital Statistics Birth Data (B.5), and Vital Statistics Death Data (B.6)
• AMENDED: APPENDIX B.1 APCD DATA ELEMENTS
• AMENDED: Medical Eligibility File Data Elements:
• AMENDED: Member CountyMHDO assigned replacement for subscriber's Social Security NumberMHDO assigned replacement for member's contract numberMHDO assigned replacement for member's Social Security NumberMHDO assigned Member IDMHDO assigned Person IDMember Date of BirthMember RaceMember EthnicityMember CityMember Zip CodeMember FIPS Code
• AMENDED: Medical Claims File Data Elements:
• AMENDED: Member CountyDate Service Approved (AP Date)Admission DateAdmission HourDischarge HourDate of Service From (Year/Month/Day)Date of Service Thru (Year/Month/Day)Discharge DateMonth PaidMonth IncurredMHDO Assigned Replacement for Payer’s Claim IDMHDO assigned replacement for subscriber's Social Security NumberMHDO assigned replacement for member's contract numberMHDO assigned replacement for member's Social Security NumberMHDO assigned Member IDMHDO assigned Person IDMember Date of BirthMember RaceMember EthnicityMember CityMember Zip CodeMember FIPS Code
• AMENDED: Pharmacy Eligibility File:
• AMENDED: Member CountyMHDO assigned replacement for subscriber's Social Security NumberMHDO assigned replacement for member's contract numberMHDO assigned replacement for member's Social Security NumberMHDO assigned Member IDMHDO assigned Person IDMember Date of BirthMember RaceMember EthnicityMember CityMember Zip CodeMember FIPS Code
• AMENDED: Pharmacy Claims File Data Elements:
• AMENDED: Member CountyDate Service Approved (AP Date)Date Prescription FilledMonth PaidMonth IncurredMHDO Assigned Replacement for Payer’s Claim IDMHDO assigned replacement for subscriber's Social Security NumberMHDO assigned replacement for member's contract numberMHDO assigned replacement for member's Social Security NumberMHDO assigned Member IDMHDO assigned Person IDMember Date of BirthPatient RacePatient EthnicityMember CityMember Zip CodeMember FIPS Code
• AMENDED: Dental Eligibility File Data Elements:
• AMENDED: Member CountyMHDO assigned replacement for subscriber's Social Security NumberMHDO assigned replacement for member's contract numberMHDO assigned replacement for member's Social Security NumberMHDO assigned Member IDMHDO assigned Person IDMember Date of BirthMember RaceMember EthnicityMember CityMember Zip CodeMember FIPS Code
• AMENDED: Dental Claims File Data Elements:
• AMENDED: Member CountyDate Service Approved (AP Date)Date of Service From (Year/Month/Day)Date of Service Thru (Year/Month/Day)Month PaidMonth IncurredMHDO Assigned Replacement for Payer’s Claim IDMHDO assigned replacement for subscriber's Social Security NumberMHDO assigned replacement for member's contract numberMHDO assigned replacement for member's Social Security NumberMHDO assigned Member IDMHDO assigned Person IDMember Date of BirthMember RaceMember EthnicityMember CityMember Zip CodeMember FIPS Code
• AMENDED: APPENDIX B.2 HOSPTIAL ENCOUNTER DATA ELEMENTS
• AMENDED: Hospital Inpatient Data Elements:
• AMENDED: MHDO assigned replacement for Medical Record NumberMHDO assigned Person IDPatient CountyAdmission DateAdmission HourDischarge DateDischarge HourProcedure Code Date(s)Patient Date of BirthPatient RacePatient EthnicityPatient CityPatient Zip CodePatient FIPS Code
• AMENDED: Hospital Outpatient and Emergency Department Data Elements:
• AMENDED: MHDO assigned replacement for Medical Record NumberMHDO assigned Person IDPatient CountyDate of Service From Date of Service ThruProcedure Code Date(s)Patient Date of BirthPatient RacePatient EthnicityPatient CityPatient Zip CodePatient FIPS Code
• AMENDED: APPENDIX B.3 HOSPITAL financial data
• AMENDED: Hospital financial data includes audited financial statements from the hospital and parent entity (if applicable). These financial statements include a balance sheet, income statement, statement of changes in net assets, and cash flow statements in PDF format.
• AMENDED: APPENDIX B.4 Cancer-Incidence Registry Data Elements
• AMENDED: These data can be released once integrated with MHDO’s claims or hospital data sets.
• AMENDED: MHDO Assigned Person IDDate of BirthAddress at Diagnosis; includingCity or Town of ResidenceCounty of ResidenceState of ResidenceZip CodeRegistrant’s FIPS CodeSex/GenderRaceAttending PhysicianReferring PhysicianDate of DiagnosisTopography of Cancer (ICD)Morphology of Cancer (ICD)Usual OccupationUsual IndustryStage of Disease at Diagnosis (AJCC coding system)Date of AdmissionLateralityGradeSpanish/Hispanic OriginDiagnostic ConfirmationSummary StageDate of First Course of Treatment (when available in the medical record)Type of First Course of Treatment (when available in the medical record)
• AMENDED: Appendix B.5 Vital Statistics Birth Data Elements
• AMENDED: These data can be released once integrated with MHDO’s claims or hospital data sets.
• AMENDED: MHDO Assigned Person IDDate of BirthSex/GenderRaceHispanic IndicatorEvent LocationCity or TownCountyStateZip CodeFIPS CodeRegistrant’s Parent’s(s’)Date of BirthSex/GenderRaceHispanic IndicatorResidence City or TownResidence CountyResidence StateResidence Zip CodeResidence FIPS Code
• AMENDED: Appendix B.6 Vital Statistics Death Data Elements
• AMENDED: These data can be released once integrated with MHDO’s claims or hospital data sets.
• AMENDED: MHDO Assigned Person IDDate of BirthSex/GenderRaceHispanic IndicatorResidence City or TownResidence CountyResidence StateResidence Zip CodeResidence FIPS CodeEvent LocationCity or TownCountyStateZip CodeFIPS CodeCause of death ICD 10 code
• AMENDED: SUPPLEMENTAL DATA ELEMENTS FOR LEVEL I, II AND III DATA REQUESTS
• AMENDED: C. 1. Group ID Data Elements - Level I, II and III APCD data requests may include the following additional Group ID Data Element:
• AMENDED: Payer Assigned Group ID Number
• AMENDED: C. 2. Practitioner Identifiable Data Elements
• AMENDED: Level I, II and III APCD data requests may include the following additional Practitioner Identifiable Data Elements:
• AMENDED: Provider First NameProvider Middle Initial or NameProvider Last NameService Provider SuffixProvider NPIBilling Provider Last/Organization NameBilling Provider NPI
• AMENDED: Level I, II and III Inpatient, Outpatient and Emergency Department Hospital Encounter data requests may include the following additional Practitioner Identifiable Data Elements:
• AMENDED: Attending Practitioner First NameAttending Practitioner Middle InitialAttending Practitioner Last NameAttending Provider NPIOperating Practitioner First NameOperating Practitioner Middle InitialOperating Practitioner Last NameOperating Practitioner NPI
• AMENDED: DATA ELEMENTS RELEASED IN LEVEL III FILE- DIRECT IDENTIFIERS
• AMENDED: Level III Limited Data includes the data listed in APPENDIX A and B, including Supplemental Data if requested, plus the following direct identifiers:
• AMENDED: Patient/Member/Registrant: First Name, Middle initial, and Last NameSelf-Pay Name (Individuals who are payers in the hospital data)

Chapter 125 Health Care Information that Directly Identifies an Individual

Code Me. R. 90-590 Ch. 125 Health Care Information That Directly Identifies an Individual {#sec-90-590-ch.-125 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 125}

SUMMARY: This chapter defines health care information that directly identifies an individual.

1. Applicability. This rule is applicable to all activities and processes described under 22 M.R.S.A. §1711-C, Confidentiality of health care information.

2. Definitions

A. Address. “Address” includes street addresses, post office box numbers, apartment numbers, E-911 addresses, E-mail addresses, web universal resource locator (URL) and Internet protocol (IP) address number.

B. Bank Account. “Bank account” means any checking, savings, certificate of deposit, or any account utilized for the payment of third parties.

C. Direct Identifier. “Direct identifier” means any information that discloses the identity of an individual. A case or code number used to create anonymous or encrypted medical data for research purposes is not a direct identifier.

D. Family. “Family” means spouse, children, parents, siblings, and legal guardian.

E. Insured. “Insured” means an individual in whose name an insurance policy is carried.

F. Operator. “Operator” means an individual who uses a vehicle.

G. Vehicle. “Vehicle” means a piece of mechanized equipment for transporting passengers or goods including, but not limited to: automobiles, trucks, motorcycles, all-terrain-vehicles, snowmobiles, aircraft, and water craft.

3. Identifying Information

Data elements determined to be direct identifiers of individuals include the following:

A. Patient’s Name;

B. Names of Patient’s Family Members;

C. Insured’s Name;

D. Patient’s or Insured’s Address;

E. Patient’s or Insured’s Telephone or FAX Numbers. Includes both home and work numbers;

F. Patient Control Number. A unique alphanumeric number assigned by a health care provider to facilitate retrieval of individual financial records and posting of payment;

G. Medical Record Number. A number assigned to the patient’s medical/health record by the provider;

H. Patient’s Account Number. A unique number used by a health care provider or supplier to identify an individual’s case records and for posting payment;

I. Patient’s or Insured’s Social Security Number;

J. Insured’s Unique Health Insurance Identification Number;

K. Insured’s Unique Health Insurance Certificate Number;

L. Patient’s Medicare/Medicaid Health Insurance Identification Number;

M. Patient’s Federal Employees Compensation Act Number;

N. Patient’s or Insured’s Credit Card Number;

O. Patient’s or Insured’s Bank Account Number;

P. Patient’s or Insured’s Operator’s License Number;

Q. Patient’s or Insured’s Vehicle Registration Number;

R. Patient’s or Insured’s Vehicle License Plate Number;

S. Patient’s or Insured’s Vehicle Identification Number;

T. Patient’s or Insured’s Finger or Voice Prints;

U. Patient’s or Insured’s Photographic Images;

V. Patient’s Pilot Medical Certificate Number;

W. Patient’s Maine Department of Corrections Inmate Identification Number;

X. Patient’s or Insured’s Medical Device Identifiers and Serial Numbers; and

Y. Any other unique number, characteristic, code or information that is a direct identifier.

History

• STATUTORY AUTHORITY: 22 M.R.S.A. Section 1711-C, subsection 1-E.
• EFFECTIVE DATE: January 1, 1999 (EMERGENCY, a Major Substantive Rule, legislative review pending)
• EFFECTIVE DATE: February 5, 2000
• NON-SUBSTANTIVE CORRECTION: March 13, 2000 - removed an underline
• AMENDED: March 31, 2003 - Section 3.Y and 3.Z, filing 2003-80
• AMENDED: February 17, 2009 – filing 2009-66
• AMENDED: 90-590 Chapter 125 page 2
• AMENDED: 11/18/2009

Chapter 241 Uniform Reporting System for Hospital Inpatient Data Sets and Hospital Outpatient Data Sets

Code Me. R. 90-590 Ch. 241 Uniform Reporting System for Hospital Inpatient Data Sets and Hospital Outpatient Data Sets {#sec-90-590-ch.-241 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 241}

SUMMARY: This Chapter contains the provisions for filing hospital inpatient data sets and hospital outpatient service data sets.

The provisions include:

Identification of the organizations required to report;

Establishment of requirements for the content, format, method, and time frame for filing hospital inpatient data and hospital outpatient service data;

Establishment of standards for the data reported; and Compliance provisions.

Definitions.

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

Attending Provider. Attending Provider is the individual who has overall responsibility for the patient’s medical care and treatment reported in this claim.

Billing Provider. Provider submitting the bill.

Carrier. Carrier means an insurance company licensed in accordance with 24-A M.R.S.A., including a health maintenance organization, a multiple employer welfare arrangement licensed pursuant to Title 24-A, chapter 81, a preferred provider organization, a fraternal benefit society, or a nonprofit hospital or medical service organization or health plan licensed pursuant to 24 M.R.S.A.. An employer exempted from the applicability of 24-A M.R.S.A., chapter 56-A under the federal Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 1001 to 1461 (1988) is not considered a carrier.

Charity Care. Charity Care is free or discounted medically necessary care for patients unable to pay, required for non-profit hospitals to maintain tax-exempt status, with eligibility based on income/assets as defined by hospital policies and state law.

Designee. Designee means an entity with which the MHDO has entered into an arrangement under which the entity performs data collection, validation and management functions for the MHDO and is strictly prohibited from releasing information obtained in such a capacity if the information is not authorized for release by the MHDO.

External Causes Codes. “External causes codes” in ICD-10 are codes designed to provide data for injury research and evaluation of injury prevention strategies. These codes capture how the injury or health condition occurred (cause), the intent (unintentional or accidental; or intentional, such as suicide or assault), the place where the event occurred, the activity of the patient at the time of the event and the person’s status (e.g. civilian, military).

Hospital. “Hospital” means any type of institution required to be licensed pursuant to 22 M.R.S.A., chapter 405, §1811.

Hospital Inpatient Data. “Hospital inpatient data” pertains to the information generated at the time of discharge which is associated with patients who are provided with room, board, and continuous nursing service based on a physician’s written order in an area of the hospital where patients generally stay more than twenty-four hours.

Hospital Outpatient Data. “Hospital outpatient data” pertains to the data generated for any patient visit that is not considered an inpatient admission, at any department of the hospital, regardless of its physical location. Hospital Outpatient Data also includes services provided by specialty groups or primary care practices when the hospital owns the data.

MHDO. “MHDO” means the Maine Health Data Organization.

M.R.S.A. “M.R.S.A.” means Maine Revised Statutes Annotated.

National Provider Identifier (NPI). The unique identification number assigned to the provider

Operating Physician. Operating Physician is the individual with the primary responsibility for performing the surgical procedures(s).

Rendering Provider. The Rendering Provider is the person or company (laboratory or other facility) who rendered the care.

Self-Pay. “Self-pay” is payment from a patient who pays for medical services directly from personal funds, either because they lack insurance or opt out of using it.

Third-party Administrator. “Third-party administrator” means any person licensed by the Maine Bureau of Insurance under 24-A M.R.S.A., chapter 18 who, on behalf of a plan sponsor, health care service plan, nonprofit hospital or medical service organization, health maintenance organization or insurer, receives or collects charges, contributions or premiums for, or adjusts or settles claims on residents of this State.

Hospital Inpatient and Outpatient Service Data Sets Filing Description.

Each hospital shall file with the MHDO or its designee a completed hospital inpatient data set and a completed hospital outpatient data set for every service provided to each patient. A completed hospital data set includes professional and facility services as defined in the appendices.

1. General Requirements. 1. Codes. 1. Code Sources. The code sources listed and described in Appendix A are to be utilized with the inpatient and outpatient data file submissions. 2. Specific and Unique Coding. Except for location of service codes and MHDO assigned hospital ID, specific or unique coding systems shall not be permitted as part of the inpatient and outpatient data submissions. 3. External Cause Codes. External Cause Codes shall be assigned for all initial treatments of an injury, poisoning, or adverse effect of drugs. If a patient is transferred to another facility for continued treatment, this facility shall also assign the appropriate External Cause Code. 2. Definitions for Required Data Elements. Unless otherwise specified, the definitions for the required data elements described in Appendix B-1 and Appendix C-1 are the same as those provided in the recent form CMS-1500 developed and maintained by the National Uniform Claim Committee (NUCC) and as those provided in the recent form UB-04 developed and maintained by the National Uniform Billing Committee. 3. Inpatient Data Filing. Data for all inpatient services of the hospital must be submitted based on the discharge date and filed under the MHDO ID assigned to that hospital. 4. Outpatient Data Filing. Data for all outpatient services of the hospital and all services provided by specialty groups or primary care practices must be filed in one or more outpatient data streams under the MHDO ID assigned to that hospital. Every encounter that is populated with a designated subset of Place of Service codes must include a Location of Service code, internally created by the Hospital. Also, each hospital shall submit annually an updated Location of Service crosswalk, which includes unique location of service code, full location name, address, city, state, zip code, start date and end date for those locations only. 5. Adjustment Charges. Adjustment charges and negative values are not to be reported in inpatient and outpatient data sets. The adjustment charges are reconciled to the individual line item for which the adjustment applies.
2. Detailed File Specifications. 1. Filled Fields. All fields shall be filled where applicable. Non- applicable text fields shall be space filled. Non-applicable numeric fields shall be zero filled and shall not include decimal points. 2. Position. All text fields are to be left justified. All numeric fields are to be right justified. 3. Individual Elements and Mapping. Individual data elements, data types, field lengths, and mapping locators (UB-04, CMS 1500, ANSI X12N 837) for each file type are presented in the following appendices: 1. (i) Inpatient Data Specifications - Appendix B-1 1. Inpatient Data Mapping to National Standards Formats - Appendix B-2 2. (i) Outpatient Data Specifications - Appendix C-1 1. Outpatient Data Mapping to National Standards Formats - Appendix C-2

Submission Requirements.

1. File Format. The inpatient file and the outpatient file(s) are to be submitted to the MHDO or its designee as separate ASCII files with fixed length records. Each record shall be terminated with a carriage return line feed (ASCII 13, ASCII 10).
2. Filing Method. All data files must be encrypted using 256-bit AES (AES- 256) encryption, prior to submission/uploading. This can be accomplished using various commercially available software packages. Data files shall be submitted via electronic transmission using the Secure Hypertext Transfer Protocol (HTTPS). E-mail attachments shall not be accepted.
3. File Editing. All data files must be processed through the MHDO designee’s system and reach a status of “Passed”.
4. Filing Specifications. Each hospital shall file all applicable data sets to the MHDO in accordance with the electronic specifications for submission of claims to Maine’s designated Medicare intermediary.
5. Filing Periods. Each inpatient discharge or outpatient service record must be filed no later than 90 days following the calendar quarter in which the discharge or service occurred.
6. Replacement of Data Files. No hospital may amend its data submission more than one year after the end of the quarter in which the discharge or outpatient service occurred unless it can be established by the hospital that exceptional circumstances occurred. Any resubmission of data after the elapse of the one year period must be approved by the MHDO.
7. Rejection of Files. Failure to conform to the requirements of subsections A, B, C or D of this section shall result in the rejection of the data file(s). Rejected files must be resubmitted in the appropriate corrected form to the MHDO within 15 days of notification.

Standards for Data; Notification; Response.

1. Standards. The MHDO shall evaluate each inpatient file and each outpatient file submission in accordance with the following standards: 1. The code for each data element identified in Appendices B-1 and C-1 shall be included within eligible values for the field; 2. Coding values indicating "data not available" "data unknown" or the equivalent shall not be used for individual data elements unless specified as an eligible value for the field; 3. Outpatient data sets shall have Current Procedural Terminology (CPT) Codes and Health Care Common Procedural Coding System (HCPCS) codes reported for specific revenue centers, and 4. CPT and HCPCS codes shall be assigned to the correct revenue centers.
2. Notification. Upon completion of the evaluation, the MHDO or its designee shall promptly notify each hospital whose data sets do not satisfy the standards for any filing period. This notification shall identify the specific file and the data fields and elements that do not satisfy the standards.
3. Response. Each hospital notified under Subsection B shall respond within 32 days of the notification by making the required changes and resubmitting, if necessary, to satisfy the standards.

Public Access.

Information collected, processed and/or analyzed under this rule shall be subject to release to the public or retained as confidential information in accordance with 22 M.R.S.A. Sec. 8707 and Code of Maine Rules 90-590, Chapter 120: Release of Information to the Public, unless prohibited by state or federal law.

Extension or Waiver to Data Submission Requirements.

If a hospital, due to circumstances beyond its control, is temporarily unable to meet the terms and conditions of this Chapter, a written request must be made to the Compliance Officer of the MHDO as soon as it is practicable after the hospital has determined that an extension or waiver is required. The written request shall include: the specific requirement to be extended or waived; an explanation of the cause; the methodology proposed to eliminate the necessity of the extension or waiver; and the time frame required to come into compliance. If the Compliance Officer does not approve the requested extension or waiver, the hospital making the request may submit a written request appealing the decision to the MHDO Board. The appeal shall be heard by the MHDO Board at the next regularly scheduled meeting following receipt of the request at the MHDO.

Compliance.

Failure to file, report, or correct in accordance with the provisions of this Chapter may be considered a violation under 22 M.R.S.A. Sec. 8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures.

AUTHORITY: 22 M.R.S.A., Sections 8704 (4) and 8708.

EFFECTIVE DATE: May 2, 1990

AMENDED: May 14, 1991

February 10, 1993

July 6, 1994

April 19, 1995

July 1, 1999

February 28, 2006

March 18, 2007

April 15, 2009

February 7, 2010

May 21, 2011

November 26, 2013

November 22, 2015

October 31, 2017

December 22, 2019

November 15, 2021

July 19, 2026 – filing 2026-172

Accredited Standards Committee (ASC)

ASC X12N Electronic Data Interchange Transaction Set Implementation Guide Health Care Claim: Institutional and Professional (837)

(Used for all Mapping of HIPAA Reference – Transaction Set/Loop/Segment Qualifier/Data Elements)

SOURCE: Complete ASC X12N 005010 Standard. NOTE: While the initial mapping in this document is based on the 005010 standard, list values from equivalent mappings from later versions of this standard may be used.

AVAILABLE FROM:

Https://x12.org/products

X12 (chartered by the American National Standards Institute)

1405 S Fern St #92957

Arlington, Virginia 22202

ABSTRACT: The X12 data implementation guide provides standardized data requirements and content for all users of the ANSI ASC X12N 837 Health Care Claims transaction. The MHDO uses the current version of ASC X12N 005010 as a baseline upon which to base validation lists, and accepts newer codes added to the ASC X12N validation lists over time.

American Medical Association

Current Procedural Terminology (CPT) Codes

(MHDO Data Elements: OP6105, OP6106, OP6107, OP6112, OP6113, OP6114, OP6119, OP6120, OP6121)

SOURCE: Physicians' Current Procedural Terminology (CPT) Manual AVAILABLE FROM:

https://www.ama-assn.org/

American Medical Association

519 North State St.

Chicago, IL 60654

ABSTRACT: A listing of descriptive terms and identifying codes for reporting medical services and procedures performed by physicians in an outpatient setting.

International Country Codes

(MHDO Data Elements: IP2021, OP2018)

SOURCE: www.nationsonline.org/oneworld/country_code_list.htm

ABSTRACT: The ISO country codes are internationally recognized codes that designate each country and most of the dependent areas with a two- or three-letter combination or a numeric code.

National Uniform Billing Committee (NUBC)

National Uniform Billing Data Element Specifications as Developed by NUBC. (All MHDO Data Elements except for the following: Diagnosis Codes, Procedure Codes, Payer Identification Number, Social Security Number, HCPCS Procedure Codes, HCPCS Procedure Modifiers, Race/Ethnicity, Present on Admission Indicator, Place of Service, Filler)

SOURCE: UB-04 Data Specifications Manual. AVAILABLE FROM:

https://www.nubc.org/ub-04-products

National Uniform Billing Committee American Hospital Association

155 N Wacker Drive Chicago, IL 60606

ABSTRACT: This serves as the official source of information for institutional health care billing. It contains all billing conventions and codes, including form locators, data element descriptions, definitions, reporting requirements, field attributes, approval and effective dates, and revenue, condition, occurrence, and value codes.

U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services

Ambulance Modifiers

(MHDO Data Element: OP6106, OP6107, OP6113, OP6114, OP6120, OP6121)

SOURCE: Medicare Claims Processing Manual AVAILABLE FROM:

https://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/Internet-Only-

Manuals-IOMs-Items/CMS018912.html

ABSTRACT: Ambulance Modifiers are HCPCS modifier codes available for use with Ambulance services.

Health Care Common Procedural Coding System

(MHDO Data Elements: OP6105, OP6106, OP6107, OP6112, OP6113, OP6114, OP6119, OP6120, OP6121)

SOURCE: Health Care Common Procedural Coding System AVAILABLE FROM:

https://www.cms.gov/medicare/regulations-guidance/physician-self-referral/list-cpt-hcpcs-codes

ABSTRACT: HCPCS is the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) coding scheme to group procedures performed for payment to providers.

National Provider Identifier (NPI)

(MHDO Data Elements: OP6126, OP6128, OP6130, OP8004, OP8005, OP8012, IP8004, IP8005, IP8012)

SOURCE: National Plan and Provider Enumeration System (NPPES)

AVAILABLE FROM:

https://npiregistry.cms.hhs.gov/search

ABSTRACT: The Centers for Medicare and Medicaid Services developed the National Provider Identifier (NPI) as the standard, unique identifier for each health care provider under the Health Insurance Portability and Accountability Act of 1996 and the NPI Final Rule was implemented May 23, 2008.

Place of Service Codes for Professional Claims

(MHDO Data Element: OP4006, OP6125, OP6127, OP6129)

SOURCE: Place of Service Codes for Professional Claims

AVAILABLE FROM :

https://www.cms.gov/Medicare/Coding/place-of-service-codes/Place_of_Service_Code_Set

Centers for Medicare and Medicaid Services

7500 Security Boulevard

Baltimore, MD 21244‑1850

ABSTRACT: The place of service code identifies the location where the healthcare service was rendered.

United States Postal Service

States and Outlying Areas and Zip Codes of the U.S.

(MHDO Data Elements: IP0106, IP2009, OP0106, OP2009, IP0107, IP2010, OP0107, OP2010)

SOURCE: United States Postal Service

AVAILABLE FROM:

USPS.Com PostalPro™

ZIP + 4® Product

U.S. Postal Service

Email: incsc@usps.gov

Telephone: 1-800-238-3150

Address Information Systems Products

National Customer Support Center

U.S. Postal Service

225 N. Humphreys Blvd., Ste. 501

Memphis, TN 38188-1001

USPS® (and Canada Post) abbreviations for Canadian Provinces and territories

AB - Alberta

BC - British Columbia MB - Manitoba

NB - New Brunswick

NL – Newfoundland and Labrador

NS - Nova Scotia

NT - North West Territories

NU - Nunvat

ON - Ontario

PE - Prince Edward Island QC- Quebec

SK - Saskatchewan YT – Yukon

ABSTRACT: Provides names, abbreviations, and codes for the 50 states, the District of Columbia, and the outlying areas of the U.S.

The ZIP Code is a geographic identifier of areas within the United States and its territories for purposes of expediting mail distribution by the U.S. Postal Service. It is five or nine numeric digits. The ZIP Code structure divides the U.S. into ten large groups

of states. The leftmost digit identifies one of these groups. The next two digits identify a smaller geographic area within the large group. The two right-most digits identify a local delivery area. In the nine-digit ZIP Code, the four digits that follow the hyphen further subdivide the delivery area. The two leftmost digits identify a sector which may consist of several large buildings, blocks or groups of streets. The rightmost digits divide the sector into segments such as a street, a block, a floor of a building, or a cluster of mailboxes. The USPS Domestics Mail Manual includes information on the use of the new 11-digit zip code.

World Health Organization (WHO)

International Classification of Diseases Clinical Modification (ICD-10-CM/PCS) (MHDO Data Elements: IP7104, IP7106 IP7110, IP7204, IP7206, IP7208, IP7210, IP7212, IP7214, IP7216, IP7218, IP7304, IP7306, IP7308, IP7310, IP7312, IP7314, IP7316, IP7318, IP7320, IP7322, IP7324, IP7326, IP7404, IP7406, IP7408, IP7410, IP7412, IP7414, IP7416, IP7418, IP7420, IP7422, IP7424, IP7426, OP7104, OP7107, OP7108, OP7109, OP7110, OP7204, OP7206, OP7208, OP7210, OP7212, OP7214, OP7216, OP7218, OP7304, OP7306, OP7308, OP7310, OP7312, OP7314, OP7316, OP7318, OP7320, OP7322, OP7324, OP7326, OP7404, OP7406, OP7408, OP7410, OP7412, OP7414, OP7416, OP7418, OP7420, OP7422, OP7424, OP7426)

SOURCE: International Classification of Diseases, 10th Revision, Clinical Modification (ICD-10-CM/PCS)

AVAILABLE FROM:

https://www.cms.gov/medicare/coding-billing/icd-10-codes

WHO Publications Center AUS

49 Sheridan Avenue

Albany, NY 12210

ABSTRACT: The International Classification of Diseases, 10th Revision, is used to report medical diagnosis and inpatient procedures. ICD-10-CM is for use in all U.S. health care settings. Diagnosis coding under ICD-10-CM uses 3 to 7 digits instead of the 3 to 5 digits used with ICD-9-CM, but the format of the code sets is similar. ICD-10- PCS is for use in U.S. inpatient hospital settings only. ICD-10PCS uses 7 alphanumeric digits instead of the 3 or 4 numeric digits used under ICD-9-CM procedure coding.

Coding under ICD-10-PCS is much more specific and substantially different from ICD-9- CM procedure coding. The transition to ICD-10 is occurring because ICD-9 produces limited data about patients’ medical conditions and hospital inpatient procedures. ICD-9 is 30 years old, has outdated terms, and is inconsistent with current medical practice.

Also, the structure of ICD-9 limits the number of new codes that can be created, and many ICD-9 categories are full.

The record types in the file must be in the following order: Record Type 01 - Processor Data

Record Type 20 - Sequence 01 - Patient Data

Record Type 30 - Sequence 01 - Third Party Payer Data Primary Payer

Record Type 30 - Sequence 02-99 - Third Party Payer Additional Payer(s) Required for payer(s) other than primary. Record Type 40 - Claim Data

Record Type 50 - IP Accommodations Data Record Type 60 - IP Ancillary Services

Record Type 71 - ICD-10 CM Principal and Admitting Diagnosis Codes, ICD-10 PCS Principal Procedure Code Record Type 72 - ICD-10 PCS Other Procedure Codes

Record Type 73 - ICD-10 CM External Cause of Injury Diagnosis Codes Record Type 74 - ICD-10 CM Other Diagnosis Information

Record Type 80 - Provider Data Record Type 90 - Claim Control Screen Record Type 99 - File Control

The individual claim begins with Record Type 20 and ends with Record Type 90.

The patient control number must be the same on each record type generated for a single patient record. The medical record number should not be substituted for the patient control number.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP0101

Record Type

T

2

01

IP0102

MHDO-Assigned Hospital ID

T

6

Must be the MHDO-assigned, 6-digit hospital code, left justified

IP0198

Filler

T

38

IP0103

Hospital Name

T

21

IP0104

Address

T

18

IP0105

City

T

15

IP0106

State

T

2

IP0107

Zip Code

T

9

IP0199

Filler

T

78

IP0108

Version

T

3

leave blank

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP2001

Record Type

T

2

20

IP2002

Filler (National Use)

T

2

IP2003

Patient Control Number

T

20

Assigned by the facility

IP2095

Filler

T

30

Space filled

IP2004

Patient Sex

T

1

M = Male

F = Female U = Unknown

IP2005

Patient Birth Date

T

8

CCYYMMDD

IP2096

Filler

T

1

IP2006

Priority (Type) of Admission or Visit

T

1

IP2007

Point of Origin for Admission or Visit

T

1

IP2097

Filler

T

30

IP2008

Patient City

T

15

IP2009

Patient State

T

2

IP2010

Patient Zip Code

T

9

As defined by US Postal Service Do not include dashes

IP2011

Admission/Start of Care Date

T

8

CCYYMMDD

IP2012

Admission Hour

T

2

Military Time - Range 00-23

IP2098

Filler

T

8

IP2013

Statement Covers Period - Thru

T

8

CCYYMMDD

IP2014

Patient Discharge Status

T

2

IP2015

Discharge Hour

T

2

Military Time - Range 00-23

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP2099

Filler

T

20

IP2016

Medical/Health Record Number

T

17

Assigned by the facility

IP2017

Race

March 1, 2007

T

1

1 = American Indian or Alaska Native

2 = Asian

3 = Black or African American

4 = Native Hawaiian or Other Pacific Islander

5 = White

6 = Other Race

7 = Patient Elected not to Answer

8 = Unknown

The code value “8” (Unknown), should be used ONLY when patient answers unknown. Report only collected data. If not available, leave blank.

IP2018

Ethnicity

March 1, 2007

T

1

1 = Hispanic or Latino

2 = Non-Hispanic or Non-Latino

7 = Patient Elected not to Answer

8 = Unknown

The code value “8” (Unknown), should be used ONLY when patient answers unknown. Report only collected data. If not available, leave blank.

IP2019

Filler

T

1

IP2020

Statement Covers Period – From

January 1, 2018

T

8

CCYYMMDD

IP2021

Patient Country Code

January 1, 2018

T

2

Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.

IP2022

Patient Last Name

January 1, 2018

T

60

IP2023

Patient First Name

January 1, 2018

T

35

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP2024

Patient Middle Name or Initial

January 1, 2018

T

25

IP2025

Patient Name Suffix

January 1, 2018

T

10

IP2026

Patient Address Line 1

January 1, 2018

T

55

IP2027

Patient Address Line 2

January 1, 2018

T

55

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP3001

Record Type

T

2

30

IP3002

Sequence Number

T

2

1. Primary Payer
2. • 99 Secondary Payer

IP3003

Patient Control Number

T

20

Assigned by the facility

IP3095

Filler

January 1, 2018

T

10

IP3005

Social Security Number

April 1, 2006

T

19

Do not include the dashes

For internal use only – Required if collected

IP3097

Filler

January 1, 2018

T

26

IP3007

Insured’s Group Number

April 1, 2006

T

17

For internal use only – Required if collected

IP3008

Insured’s Unique Identifier

T

20

Insurance policy or certificate ID

IP3099

Filler

T

1

IP3009

Payer Name

January 1, 2018

T

100

Full or unabbreviated payer name, not plan name

IP3010

Plan Name

January 1, 2027

T

100

Full or unabbreviated plan name

IP3011

Filing Indicator

January 1, 2027

T

2

Values from ASC X12N 005010

837/2320/SBR/09 and 837/2000B/SBR/09

and MHDO assigned codes for the following:

07 - Charity Care

08 - Self-Pay

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP4001

Record Type

T

2

40

IP4002

Sequence Number

T

2

01

IP4003

Patient Control Number

T

20

Assigned by the facility

IP4004

Type of Bill

T

3

Code indicating the specific type of institutional bill

IP4099

Filler

T

165

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP5001

Record Type

T

2

50

IP5002

Sequence Number

T

3

001-999

IP5003

Patient Control Number

T

20

Assigned by the facility

IP5091

Filler

T

3

IP5004

Accommodations Revenue Code #1

T

4

Include leading zeros

IP5092

Filler

T

9

IP5005

Accommodations Service Units #1

N

4

Right Justified, leading zeros

IP5006

Accommodations Total Charges #1

T

10

Two decimal places implied

IP5093

Filler

T

14

IP5007

Accommodations Revenue Code #2

T

4

Include leading zeros

IP5094

Filler

T

9

IP5008

Accommodations Service Units #2

N

4

Right Justified, leading zeros

IP5009

Accommodations Total Charges #2

N

10

Two decimal places implied

IP5095

Filler

T

14

IP5010

Accommodations Revenue Code #3

T

4

Include leading zeros

IP5096

Filler

T

9

IP5011

Accommodations Service Units #3

N

4

Right Justified, leading zeros

IP5012

Accommodations Total Charges #3

N

10

Two decimal places implied

IP5097

Filler

T

14

IP5013

Accommodations Revenue Code #4

T

4

Include leading zeros

IP5098

Filler

T

9

IP5014

Accommodations Service Units #4

N

4

Right Justified, leading zeros

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP5015

Accommodations Total Charges #4

N

10

Two decimal places implied

IP5099

Filler

T

14

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP6001

Record Type

T

2

60

IP6002

Sequence Number

T

3

001 to 999

IP6003

Patient Control Number

T

20

Assigned by the facility

IP6093

Filler

T

2

IP6004

Inpatient Ancillary Revenue Code #1

T

4

Include leading zeros

IP6094

Filler

T

16

IP6005

Inpatient Ancillary Total Charges #1

N

10

Two decimal places implied

IP6095

Filler

T

25

IP6006

Inpatient Ancillary Revenue Code #2

T

4

Include leading zeros

IP6096

Filler

T

16

IP6007

Inpatient Ancillary Total Charges #2

N

10

Two decimal places implied

IP6097

Filler

T

25

IP6008

Inpatient Ancillary Revenue Code #3

T

4

Include leading zeros

IP6098

Filler

T

16

IP6009

Inpatient Ancillary Total Charge #3

N

10

Two decimal places implied

IP6099

Filler

T

25

Data Element #

Data Element

Implementation Date For New Data Elements

Type

Length

Description

IP7101

Record Type

10/1/2014

T

2

71

IP7102

Sequence Number

10/1/2014

T

2

01

IP7103

Patient Control Number

10/1/2014

T

20

Assigned by facility

IP7104

Principal Diagnosis

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7105

Present On Admission Indicator

10/1/2014

T

3

Standard POA code set - Left Justified

IP7106

Admitting Diagnosis

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7107

Filler

T

10

IP7108

Filler

T

10

IP7109

Filler

T

10

IP7110

Principal Procedure Code

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7111

Principal Procedure Date

10/1/2014

T

8

CCYYMMDD

Data Element #

Data Element Name

Implementation Date For New Data Elements

Type

Length

Description

IP7201

Record Type

10/1/2014

T

2

72

IP7202

Sequence Number

10/1/2014

T

2

01 - 03

IP7203

Patient Control Number

10/1/2014

T

20

Assigned by facility

IP7204

Other Procedure Code - 1

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7205

Other Procedure Date - 1

10/1/2014

T

8

CCYYMMDD

IP7206

Other Procedure Code - 2

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7207

Other Procedure Date - 2

10/1/2014

T

8

CCYYMMDD

IP7208

Other Procedure Code - 3

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7209

Other Procedure Date - 3

10/1/2014

T

8

CCYYMMDD

IP7210

Other Procedure Code - 4

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7211

Other Procedure Date - 4

10/1/2014

T

8

CCYYMMDD

IP7212

Other Procedure Code - 5

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7213

Other Procedure Date - 5

10/1/2014

T

8

CCYYMMDD

IP7214

Other Procedure Code - 6

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7215

Other Procedure Date - 6

10/1/2014

T

8

CCYYMMDD

IP7216

Other Procedure Code - 7

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7217

Other Procedure Date - 7

10/1/2014

T

8

CCYYMMDD

IP7218

Other Procedure Code - 8

10/1/2014

T

10

ICD-10 PCS - do not code decimal point - Left Justified

IP7219

Other Procedure Date - 8

10/1/2014

T

8

CCYYMMDD

Data Element #

Data Element Name

Implementation Date For New Data Elements

Type

Length

Description

IP7301

Record Type

10/1/2014

T

2

73

IP7302

Sequence Number

10/1/2014

T

2

01 - 02

IP7303

Patient Control Number

10/1/2014

T

20

Assigned by facility

IP7304

External Cause of Injury Code - 1

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7305

Present On Admission Indicator - 1

10/1/2014

T

3

Standard POA code set - Left Justified

IP7306

External Cause of Injury Code - 2

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7307

Present On Admission Indicator - 2

10/1/2014

T

3

Standard POA code set - Left Justified

IP7308

External Cause of Injury Code - 3

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7309

Present On Admission Indicator - 3

10/1/2014

T

3

Standard POA code set - Left Justified

IP7310

External Cause of Injury Code - 4

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7311

Present On Admission Indicator - 4

10/1/2014

T

3

Standard POA code set - Left Justified

IP7312

External Cause of Injury Code - 5

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7313

Present On Admission Indicator - 5

10/1/2014

T

3

Standard POA code set - Left Justified

IP7314

External Cause of Injury Code - 6

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7315

Present On Admission Indicator - 6

10/1/2014

T

3

Standard POA code set - Left Justified

IP7316

External Cause of Injury Code - 7

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7317

Present On Admission Indicator - 7

10/1/2014

T

3

Standard POA code set - Left Justified

IP7318

External Cause of Injury Code - 8

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7319

Present On Admission Indicator - 8

10/1/2014

T

3

Standard POA code set - Left Justified

IP7320

External Cause of Injury Code - 9

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7321

Present On Admission Indicator - 9

10/1/2014

T

3

Standard POA code set - Left Justified

IP7322

External Cause of Injury Code - 10

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7323

Present On Admission Indicator - 10

10/1/2014

T

3

Standard POA code set - Left Justified

IP7324

External Cause of Injury Code - 11

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7325

Present On Admission Indicator - 11

10/1/2014

T

3

Standard POA code set - Left Justified

IP7326

External Cause of Injury Code - 12

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7327

Present On Admission Indicator - 12

10/1/2014

T

3

Standard POA code set - Left Justified

Data Element #

Data Element Name

Implementation Date For New Data Elements

Type

Length

Description

IP7401

Record Type

10/1/2014

T

2

74

IP7402

Sequence Number

10/1/2014

T

2

01 - 02

IP7403

Patient Control Number

10/1/2014

T

20

Assigned by facility

IP7404

Other Diagnosis Code - 1

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7405

Present On Admission Indicator - 1

10/1/2014

T

3

Standard POA code set - Left Justified

IP7406

Other Diagnosis Code - 2

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7407

Present On Admission Indicator - 2

10/1/2014

T

3

Standard POA code set - Left Justified

IP7408

Other Diagnosis Code - 3

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7409

Present On Admission Indicator - 3

10/1/2014

T

3

Standard POA code set - Left Justified

IP7410

Other Diagnosis Code - 4

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7411

Present On Admission Indicator - 4

10/1/2014

T

3

Standard POA code set - Left Justified

IP7412

Other Diagnosis Code - 5

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7413

Present On Admission Indicator – 5

10/1/2014

T

3

Standard POA code set - Left Justified

IP7414

Other Diagnosis Code - 6

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7415

Present On Admission Indicator - 6

10/1/2014

T

3

Standard POA code set - Left Justified

IP7416

Other Diagnosis Code - 7

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7417

Present On Admission Indicator - 7

10/1/2014

T

3

Standard POA code set - Left Justified

IP7418

Other Diagnosis Code - 8

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7419

Present On Admission Indicator - 8

10/1/2014

T

3

Standard POA code set - Left Justified

IP7420

Other Diagnosis Code - 9

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7421

Present On Admission Indicator - 9

10/1/2014

T

3

Standard POA code set - Left Justified

IP7422

Other Diagnosis Code - 10

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7423

Present On Admission Indicator - 10

10/1/2014

T

3

Standard POA code set - Left Justified

IP7424

Other Diagnosis Code - 11

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7425

Present On Admission Indicator - 11

10/1/2014

T

3

Standard POA code set - Left Justified

IP7426

Other Diagnosis Code - 12

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

IP7427

Present On Admission Indicator - 12

10/1/2014

T

3

Standard POA code set - Left Justified

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP8001

Record Type

T

2

80

IP8002

Sequence

T

2

01

IP8003

Patient Control Number

T

20

Assigned by the facility

IP8097

Filler

T

2

IP8004

Attending Provider NPI

April 1, 2009

T

16

NPI of Attending Provider

IP8005

Operating Physician NPI

April 1, 2009

T

16

NPI of Operating Physician

IP8098

Filler

T

32

IP8006

Attending Provider Last Name

T

16

Cannot be blank

IP8007

Attending Provider First Name

T

8

Cannot be blank

IP8008

Attending Provider Middle Initial

T

1

IP8009

Operating Physician Last Name

T

16

Must be populated when IP8005 is populated.

IP8010

Operating Physician First Name

T

8

Cannot be blank if IP8005 is populated.

IP8011

Operating Physician Middle Initial

T

1

IP8099

Filler

T

52

IP8012

Billing Provider NPI

T

16

National Provider Identifier assigned to the provider submitting the bill.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP9001

Record Type

T

2

90

IP9002

Filler (National Use)

T

2

IP9003

Patient Control Number

T

20

Assigned by the facility

IP9097

Filler

T

20

IP9004

Total Accommodation Charges – Revenue Centers

N

10

Must equal the sum of record type 50 revenue code data Two decimal places implied

IP9098

Filler

T

10

IP9005

Total Ancillary Charges – Revenue Centers

N

10

Must equal the sum of record type 60 revenue code data Two decimal places implied

IP9099

Filler

T

118

Record Type 99 - File Control

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

IP9901

Record Type

T

2

99

IP9999

Filler

T

190

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010 Transaction Set/Loop/ Segment ID/Code Value/

Reference Designator

IP0101

Record Type

NA

NA

IP0102

MHDO-Assigned Hospital ID

NA

NA

IP0103

Hospital Name

1

837/2010AA/NM1/85/2/03

IP0104

Address

1

837/2010AA/N3/01

IP0105

City

1

837/2010AA/N4/01

IP0106

State

1

837/2010AA/N4/02

IP0107

Zip Code

1

837/2010AA/N4/03

IP0108

Version

NA

NA

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP2001

Record Type

NA

NA

IP2003

Patient Control Number

3A

837/2300/CLM/01

IP2004

Patient Sex

11

837/2010CA/DMG/03

837/2010BA/DMG/03

IP2005

Patient Birth Date

10

837/2010CA/DMG/D8/02

837/2010BA/DMG/D8/02

IP2006

Priority (Type) of Admission or Visit

14

837/2300/CL1/01

IP2007

Point of Origin for Admission or Visit

15

837/2300/CL1/02

IP2008

Patient City

9B

837/2010CA/N4/01

837/2010BA/N4/01

IP2009

Patient State

9C

837/2010CA/N4/02

837/2010BA/N4/02

IP2010

Patient Zip Code

9D

837/2010CA/N4/03

837/2010BA/N4/03

IP2011

Admission/Start of Care Date

12

837/2300/DTP/435/DT/03

IP2012

Admission Hour

13

837/2300/DTP/435/DT/03

IP2013

Statement Covers Period Thru

6

837/2300/DTP/434/RD8/03

IP2014

Patient Discharge Status

17

837/2300/CL1/03

IP2015

Discharge Hour

16

837/2300/DTP/096/TM/03

IP2016

Medical/Health Record Number

3B

837/2300/REF/EA/02

IP2017

Race

NA

837/2010CA/DMG/05

837/2010BA/DMG/05

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP2018

Ethnicity

NA

837/2010CA/DMG/05

837/2010BA/DMG/05

IP2020

Statement Covers Period – From

6

837/2300/DTP/434/RD8/03

IP2021

Patient Country Code

9E

837/2010CA/N4/04

837/2010BA/N4/04

IP2022

Patient Last Name

8B

837/2010CA/NM1/QC/1/03

837/2010BA/NM1/IL/1/03

IP2023

Patient First Name

8B

837/2010CA/NM1/QC/1/04

837/2010BA/NM1/IL/1/04

IP2024

Patient Middle Name or Initial

8B

837/2010CA/NM1/QC/1/05

837/2010BA/NM1/IL/1/05

IP2025

Patient Name Suffix

8B

837/2010CA/NM1/QC/1/07

837/2010BA/NM1/IL/1/07

IP2026

Patient Address Line 1

9A

837/2010CA/N3/01

837/2010BA/N3/01

IP2027

Patient Address Line 2

9A

837/2010CA/N3/02

837/2010BA/N3/02

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010 Transaction Set/Loop/ Segment ID/Code Value/

Reference Designator

IP3001

Record Type

NA

NA

IP3002

Sequence Number

NA

837/2000B/SBR/01

IP3003

Patient Control Number

3A

837/2300/CLM/01

IP3005

Social Security Number

NA

NA

IP3007

Insured’s Group Number (Primary)

62A

837/2000B/SBR/P/03

Insured’s Group Number (Secondary)

62B

837/2320A/SBR/S/03

IP3008

Insured’s Unique Identifier (Primary)

60A

837/2010BA/NM1/MI/09

Insured’s Unique Identifier (Secondary)

60B

837/2330A/NM1/MI/09

IP3009

Payer Name (Primary)

50A

837/2010BB/NM1/PR/2/03

Payer Name (Secondary)

50B

837/2330B/NM1/PR/2/03

IP3010

Plan Name (Primary)

61A

837/2000B/SBR/04

837/2320/SBR/04

Plan Name (Secondary)

61B

837/2000B/SBR/04

837/2320/SBR/04

IP3011

Filing Indicator

NA

837/2000B/SBR/09

837/2320/SBR/09

MHDO codes:

07 - Charity Care

08 - Self-Pay

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASCX12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP4001

Record Type

NA

NA

IP4002

Sequence Number

NA

NA

IP4003

Patient Control Number

3A

837/2300/CLM/01

IP4004

Type of Bill

4

837/2300/CLM/05-1

837/2300/CLM/05-3

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP5001

Record Type

NA

NA

IP5002

Sequence Number

NA

NA

IP5003

Patient Control Number

3A

837/2300/CLM/01

IP5004

Accommodations Revenue Code - 1

42

837/2400/SV2/01

IP5005

Accommodations Service Units - 1

46

837/2400/SV2/DA/05

IP5006

Accommodations Total Charges - 1

47

837/2400/SV2/03

IP5007

Accommodations Revenue Code - 2

42

837/2400/SV2/01

IP5008

Accommodations Service Units - 2

46

837/2400/SV2/DA/05

IP5009

Accommodations Total Charges - 2

47

837/2400/SV2/03

IP5010

Accommodations Revenue Code - 3

42

837/2400/SV2/01

IP5011

Accommodations Service Units - 3

46

837/2400/SV2/DA/05

IP5012

Accommodations Total Charges - 3

47

837/2400/SV2/03

IP5013

Accommodations Revenue Code - 4

42

837/2400/SV2/01

IP5014

Accommodations Service Units - 4

46

837/2400/SV2/DA/05

IP5015

Accommodations Total Charges - 4

47

837/2400/SV2/03

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP6001

Record Type

NA

NA

IP6002

Sequence Number

NA

NA

IP6003

Patient Control Number

3A

837/2300/CLM/01

IP6004

Inpatient Ancillary Revenue Code - 1

42

837/2400/SV2/01

IP6005

Inpatient Ancillary Total Charges - 1

47

837/2400/SV2/03

IP6006

Inpatient Ancillary Revenue Code - 2

42

837/2400/SV2/01

IP6007

Inpatient Ancillary Total Charges - 2

47

837/2400/SV2/03

IP6008

Inpatient Ancillary Revenue Code - 3

42

837/2400/SV2/01

IP6009

Inpatient Ancillary Total Charges - 3

47

837/2400/SV2/03

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP7101

Record Type

NA

NA

IP7102

Sequence Number

NA

NA

IP7103

Patient Control Number

3A

837/2300/CLM/01

IP7104

Principal Diagnosis

67

837/2300/HI/ABK/01-2

IP7105

Present On Admission Indicator

67 (pos 8)

837/2300/HI/01-9

IP7106

Admitting Diagnosis

69

837/2300/HI/ABJ/01-2

IP7110

Principal Procedure Code

74

837/2300/HI/BBR/01-2

IP7111

Principal Procedure Date

74

837/2300/HI/D8/01-4

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP7201

Record Type

NA

NA

IP7202

Sequence Number

NA

NA

IP7203

Patient Control Number

3A

837/2300/CLM/01

IP7204

Other Procedure Code - 1

74A

837/2300/HI/BBQ/01-2

IP7205

Other Procedure Date - 1

74A

837/2300/HI/D8/01-4

IP7206

Other Procedure Code - 2

74B

837/2300/HI/BBQ/02-2

IP7207

Other Procedure Date - 2

74B

837/2300/HI/D8/02-4

IP7208

Other Procedure Code - 3

74C

837/2300/HI/BBQ/03-2

IP7209

Other Procedure Date - 3

74C

837/2300/HI/D8/03-4

IP7210

Other Procedure Code - 4

74D

837/2300/HI/BBQ/04-2

IP7211

Other Procedure Date - 4

74D

837/2300/HI/D8/04-4

IP7212

Other Procedure Code - 5

74E

837/2300/HI/BBQ/05-2

IP7213

Other Procedure Date - 5

74E

837/2300/HI/D8/05-4

IP7214

Other Procedure Code - 6

NA

837/2300/HI/BBQ/06-2

IP7215

Other Procedure Date - 6

NA

837/2300/HI/D8/06-4

IP7216

Other Procedure Code - 7

NA

837/2300/HI/BBQ/07-2

IP7217

Other Procedure Date - 7

NA

837/2300/HI/D8/07-4

IP7218

Other Procedure Code - 8

NA

837/2300/HI/BBQ/08-2

IP7219

Other Procedure Date - 8

NA

837/2300/HI/D8/08-4

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASCX12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP7301

Record Type

NA

NA

IP7302

Sequence Number

NA

NA

IP7303

Patient Control Number

3A

837/2300/CLM/01

IP7304

External Cause of Injury Code - 1

72A

837/2300/HI/ABN/01-2

IP7305

Present On Admission Indicator - 1

72A (pos 8)

837/2300/HI/01-9

IP7306

External Cause of Injury Code - 2

72B

837/2300/HI/ABN/02-2

IP7307

Present On Admission Indicator - 2

72B (pos 8)

837/2300/HI/02-9

IP7308

External Cause of Injury Code - 3

72C

837/2300/HI/ABN/03-2

IP7309

Present On Admission Indicator - 3

72C (pos 8)

837/2300/HI/03-9

IP7310

External Cause of Injury Code - 4

NA

837/2300/HI/ABN/04-2

IP7311

Present On Admission Indicator - 4

NA

837/2300/HI/04-9

IP7312

External Cause of Injury Code - 5

NA

837/2300/HI/ABN/05-2

IP7313

Present On Admission Indicator - 5

NA

837/2300/HI/05-9

IP7314

External Cause of Injury Code - 6

NA

837/2300/HI/ABN/06-2

IP7315

Present On Admission Indicator - 6

NA

837/2300/HI/06-9

IP7316

External Cause of Injury Code - 7

NA

837/2300/HI/ABN/07-2

IP7317

Present On Admission Indicator - 7

NA

837/2300/HI/07-9

IP7318

External Cause of Injury Code - 8

NA

837/2300/HI/ABN/08-2

IP7319

Present On Admission Indicator - 8

NA

837/2300/HI/08-9

IP7320

External Cause of Injury Code - 9

NA

837/2300/HI/ABN/09-2

IP7321

Present On Admission Indicator - 9

NA

837/2300/HI/09-9

IP7322

External Cause of Injury Code - 10

NA

837/2300/HI/ABN/10-2

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP7323

Present On Admission Indicator - 10

NA

837/2300/HI/10-9

IP7324

External Cause of Injury Code - 11

NA

837/2300/HI/ABN/11-2

IP7325

Present On Admission Indicator - 11

NA

837/2300/HI/11-9

IP7326

External Cause of Injury Code - 12

NA

837/2300/HI/ABN/12-2

IP7327

Present On Admission Indicator - 12

NA

837/2300/HI/12-9

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP7401

Record Type

NA

NA

IP7402

Sequence Number

NA

NA

IP7403

Patient Control Number

3A

837/2300/CLM/01

IP7404

Other Diagnosis Code - 1

67A

837/2300/HI/ABF/01-2

IP7405

Present On Admission Indicator - 1

67A (pos 8)

837/2300/HI/01-9

IP7406

Other Diagnosis Code - 2

67B

837/2300/HI/ABF/02-2

IP7407

Present On Admission Indicator - 2

67B (pos 8)

837/2300/HI/02-9

IP7408

Other Diagnosis Code - 3

67C

837/2300/HI/ABF/03-2

IP7409

Present On Admission Indicator - 3

67C (pos 8)

837/2300/HI/03-9

IP7410

Other Diagnosis Code - 4

67D

837/2300/HI/ABF/04-2

IP7411

Present On Admission Indicator - 4

67D (pos 8)

837/2300/HI/04-9

IP7412

Other Diagnosis Code - 5

67E

837/2300/HI/ABF/05-2

IP7413

Present On Admission Indicator - 5

67E (pos 8)

837/2300/HI/05-9

IP7414

Other Diagnosis Code - 6

67F

837/2300/HI/ABF/06-2

IP7415

Present On Admission Indicator - 6

67F (pos 8)

837/2300/HI/06-9

IP7416

Other Diagnosis Code - 7

67G

837/2300/HI/ABF/07-2

IP7417

Present On Admission Indicator - 7

67G (pos 8)

837/2300/HI/07-9

IP7418

Other Diagnosis Code - 8

67H

837/2300/HI/ABF/08-2

IP7419

Present On Admission Indicator - 8

67H (pos 8)

837/2300/HI/08-9

IP7420

Other Diagnosis Code - 9

67I

837/2300/HI/ABF/09-2

IP7421

Present On Admission Indicator - 9

67I (pos 8)

837/2300/HI/09-9

IP7422

Other Diagnosis Code - 10

67J

837/2300/HI/ABF/10-2

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP7423

Present On Admission Indicator - 10

67J (pos 8)

837/2300/HI/10-9

IP7424

Other Diagnosis Code - 11

67K

837/2300/HI/ABF/11-2

IP7425

Present On Admission Indicator - 11

67K (pos 8)

837/2300/HI/11-9

IP7426

Other Diagnosis Code - 12

67L

837/2300/HI/ABF/12-2

IP7427

Present On Admission Indicator - 12

67L (pos 8)

837/2300/HI/12-9

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP8001

Record Type

NA

NA

IP8002

Sequence

NA

NA

IP8003

Patient Control Number

3A

837/2300/CLM/01

IP8004

Attending Provider NPI

76

837/2310A/NM1/71/1/XX/09

IP8005

Operating Physician NPI

77

837/2310B/NM1/72/1/XX/09

IP8006

Attending Provider Last Name

76

837/2310A/NM1/71/1/03

IP8007

Attending Provider First Name

76

837/2310A/NM1/71/1/04

IP8008

Attending Provider Middle Initial

76

837/2310A/NM1/71/1/05

IP8009

Operating Physician Last Name

77

837/2310B/NM1/72/1/03

IP8010

Operating Physician First Name

77

837/2310B/NM1/72/1/04

IP8011

Operating Physician Middle Initial

77

837/2310B/NM1/72/1/05

IP8012

Billing Provider NPI

56

837/2010AA/NM1/XX/09

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP9001

Record Type

NA

NA

IP9003

Patient Control Number

3A

837/2300/CLM/01

IP9004

Total Accommodation Charges - Revenue Centers

NA

This is the total of the SV2 segments except for Revenue Code 0001

IP9005

Total Ancillary Charges - Revenue Centers

NA

This is the total of the SV2 segments except for Revenue Code 0001

Data Element #

Data Element Name

UB-04

Form Locator

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/

Segment ID/Code Value/

Reference Designator

IP9901

Record Type

NA

NA

The record types in the file must be in the following order: Record Type 01 – Processor Data

Record Type 20 Sequence 01 – Patient Data

Record Type 30 Sequence 01 – Third Party Payer Data Primary Payer

Record Type 30 Sequence 02-99 - Third Party Payer Additional Payer(s) Required for payer(s) other than primary. Record Type 40 – Claim Data

Record Type 61 – Services

Record Type 71 – ICD-10 CM Principal and Reason for Visit Diagnosis Codes, ICD-10 PCS Principal Procedure Code Record Type 72 – ICD-10 PCS Other Procedure Codes

Record Type 73 – ICD-10 CM External Cause of Injury Diagnosis Codes Record Type 74 – ICD-10 CM Other Diagnosis Information

Record Type 80 – Provider Data Record Type 90 – Claim Control Screen Record Type 99 – File Control

The individual claim begins with Record Type 20 and ends with Record Type 90.

The patient control number must be the same on each record type generated for a single patient record. The medical record number should not be substituted for the patient control number.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP0101

Record Type

T

2

01

OP0102

MHDO-Assigned Hospital ID

T

6

Must be the MHDO-assigned, 6-digit hospital code, left justified

OP0198

Filler

T

38

OP0103

Hospital Name

T

21

OP0104

Address

T

18

OP0105

City

T

15

OP0106

State

T

2

OP0107

Zip Code

T

9

OP0199

Filler

T

78

OP0108

Version

T

3

Leave blank

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP2001

Record Type

T

2

20

OP2002

Filler (National Use)

T

2

OP2003

Patient Control Number

T

20

Assigned by the facility

OP2094

Filler

T

30

OP2004

Patient Sex

T

1

M = Male

F = Female U = Unknown

OP2005

Patient Birth Date

T

8

CCYYMMDD

OP2095

Filler

T

2

OP2007

Point of Origin for Admission or Visit

T

1

OP2096

Filler

T

30

OP2008

Patient City

T

15

OP2009

Patient State

T

2

OP2010

Patient Zip Code

T

9

As defined by US Postal Service Do not include dashes

OP2011

Admission/Start of Care Date

T

8

CCYYMMDD

OP2097

Filler

T

2

OP2012

Statement Covers Period – From

T

8

The beginning service date for the period covered on the record CCYYMMDD

OP2013

Statement Covers Period – Thru

T

8

The ending service date for the period covered on the record CCYYMMDD

OP2014

Patient Discharge Status

T

2

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP2098

Filler

T

22

OP2015

Medical/Health Record Number

T

17

Assigned by the facility

OP2016

Race

March 1, 2007

T

1

1 = American Indian or Alaska Native

2 = Asian

3 = Black or African American

4 = Native Hawaiian or Other Pacific Islander

5 = White

6 = Other Race

7 = Patient Elected Not to Answer

8 = Unknown

The code value “8” (Unknown), should be used ONLY when patient answers unknown. Report only collected data. If not available, leave blank.

OP2017

Ethnicity

March 1, 2007

T

1

1 = Hispanic or Latino

2 = Non-Hispanic or Non-Latino

7 = Patient Elected Not to Answer

8 = Unknown

The code value “8” (Unknown), should be used ONLY when patient answers unknown. Report only collected data. If not available, leave blank.

OP2099

Filler

T

1

OP2018

Patient Country Code

January 1, 2018

T

2

Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.

OP2019

Patient Last Name

January 1, 2018

T

60

OP2020

Patient First Name

January 1, 2018

T

35

OP2021

Patient Middle Name or Initial

January 1, 2018

T

25

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP2022

Patient Name Suffix

January 1, 2018

T

10

OP2023

Patient Address Line 1

January 1, 2018

T

55

OP2024

Patient Address Line 2

January 1, 2018

T

55

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP3001

Record Type

T

2

30

OP3002

Sequence Number

T

2

1. Primary Payer
2. • 99 Secondary Payer

OP3003

Patient Control Number

T

20

Assigned by the facility

OP3095

Filler

January 1, 2018

T

10

OP3005

Social Security Number

April 1, 2006

T

19

Do not include dashes

For internal use only – Required if collected

OP3097

Filler

January 1, 2018

T

26

OP3007

Insured’s Group Number

April 1, 2006

T

17

For internal use only – Required if collected

OP3008

Insured’s Unique Identifier

T

20

For internal use only – Required if collected

OP3099

Filler

T

1

OP3009

Payer Name

January 1, 2018

T

100

Full or unabbreviated payer name, not plan name

OP3010

Plan Name

January 1, 2027

T

100

Full or unabbreviated Plan name

OP3011

Filing Indicator

January 1, 2027

T

2

Values from ASC X12N 005010:

837/2320/SBR/09 and 837/2000B/SBR/09

and MHDO assigned codes for the following:

07 - Charity Care

08 - Self-Pay

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP4001

Record Type

T

2

40

OP4002

Sequence Number

T

2

01

OP4003

Patient Control Number

T

20

Assigned by the facility

OP4004

Type of Bill

T

3

Code indicating the specific type of institutional bill.

OP4005

Location of Service

T

10

When Place of Service field OP4006 contains the values 11, 17, 20, 22, 49, 50, 71, or 72 an encounter shall contain a Location of Service code. The Location of Service code is internally created by the Hospital and primarily for physician practices (primary care, specialty care and clinics).

OP4099

Filler

T

155

OP4006

Place of Service

January 1, 2018

T

2

CMS code identifying the entity/location where professional service(s) were rendered.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP6101

Record Type

T

2

61

OP6102

Sequence Number

T

3

001 to 999

OP6103

Patient Control Number

T

20

Assigned by the facility

OP6190

Filler

T

2

OP6104

Revenue Center Code - 1

T

4

Code which identifies a specific ancillary service, supplies, professional fees on billing calculation. Include leading zeros.

OP6105

HCPCS Procedure Code - 1

T

5

Health Care Common Procedural Coding System (HCPCS) This includes the CPT code of the American Medical Association

OP6106

Modifier – 1 (HCPCS & CPT-4) - 1

T

2

Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code

OP6107

Modifier – 2 (HCPCS & CPT-4) - 1

T

2

Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code

OP6108

Service Units - 1

N

7

A quantitative measure of services rendered by the Revenue Center

OP6191

Filler

T

6

OP6109

Outpatient Total Charges - 1

N

10

Negative charges not accepted Two decimal places implied

OP6192

Filler

T

10

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP6110

Service Date - 1

T

8

The date that the indicated outpatient service, supplies, etc. were provided.

Must be equal to or greater than statement covers date “from” and less than or equal to statement covers date “thru”.

CCYYMMDD

OP6193

Filler

T

1

OP6111

Revenue Center Code - 2

T

4

Code which identifies a specific ancillary service, supplies, professional fees on billing calculation. Include leading zeros.

OP6112

HCPCS Procedure Code - 2

T

5

Health Care Common Procedural Coding System (HCPCS) This includes the CPT code of the American Medical Association

OP6113

Modifier – 1 (HCPCS & CPT-4) - 2

T

2

Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code

OP6114

Modifier – 2 (HCPCS & CPT-4) - 2

T

2

Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code

OP6115

Service Units - 2

N

7

A quantitative measure of services rendered by the Revenue Center

OP6194

Filler

T

6

OP6116

Outpatient Total Charges - 2

N

10

Negative charges not accepted Two decimal places implied

OP6195

Filler

T

10

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP6117

Service Date - 2

T

8

The date that the indicated outpatient service, supplies, etc. were provided.

Must be equal to or greater than statement covers date “from” and less than or equal to statement covers date “thru” CCYYMMDD

OP6196

Filler

T

1

OP6118

Revenue Center Code - 3

T

4

Code which identifies a specific ancillary service, supplies, professional fees on billing calculation. Include leading zeros.

OP6119

HCPCS Procedure Code - 3

T

5

Health Care Common Procedural Coding System (HCPCS) This includes the CPT code of the American Medical Association

OP6120

Modifier – 1 (HCPCS & CPT-4) - 3

T

2

Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code

OP6121

Modifier – 2 (HCPCS & CPT-4) - 3

T

2

Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code

OP6122

Service Units - 3

N

7

A quantitative measure of services rendered by the Revenue Center

OP6197

Filler

T

6

OP6123

Outpatient Total Charges - 3

N

10

Negative charges not accepted Two decimal places implied

OP6198

Filler

T

10

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP6124

Service Date - 3

T

8

The date that the indicated outpatient service, supplies, etc. were provided.

Must be equal to or greater than statement covers date “from” and less than or equal to statement covers date “thru” CCYYMMDD

OP6199

Filler

T

1

OP6125

Place of Service - 1

January 1, 2020

T

2

CMS code identifying the entity/location where professional service(s) were rendered, if different from POS code indicated in OP4006

OP6126

Rendering Provider NPI – 1

January 1, 2020

T

16

National Provider Identifier for Rendering Provider, the individual providing the service.

OP6127

Place of Service - 2

January 1, 2020

T

2

CMS code identifying the entity/location where professional service(s) were rendered, if different from POS code indicated in OP4006

OP6128

Rendering Provider NPI - 2

January 1, 2020

T

16

National Provider Identifier for Rendering Provider, the individual providing the service.

OP6129

Place of Service - 3

January 1, 2020

T

2

CMS code identifying the entity/location where professional service(s) were rendered, if different from POS code indicated in OP4006

OP6130

Rendering Provider NPI - 3

January 1, 2020

T

16

National Provider Identifier for Rendering Provider, the individual providing the service.

OP6131

Service Facility NPI

January 1, 2027

T

16

National Provider Identifier (NPI) of the facility where the service was provided.

OP6132

Service Facility Name

January 1, 2027

T

100

Full unabbreviated name of the facility where the service was provided.

OP6133

Service Facility Address Line 1

January 1, 2027

T

55

Address of the facility where the service was provided.

OP6134

Service Facility Address Line 2

January 1, 2027

T

55

Address of the facility where the service was provided.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP6135

Service Facility City

January 1, 2027

T

15

City name.

OP6136

Service Facility State

January 1, 2027

T

2

Two-digit state code as defined by the US Postal Service

OP6137

Service Facility Zip Code

January 1, 2027

T

9

Zip code as defined by US Postal Service. Do not include dashes.

Sequence numbers go from 001 to 999 with 3 revenue centers on each physical record makes it possible to have 2,997 revenue centers on a single logical record. If revenue center code “0001” is utilized to report the total of all the line item charges, it must be entered on the last revenue center field. The value for revenue code 0001 must equal the total ancillary charges reported on record type 90 and must equal the summation of all line item charges reported on the logical record.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP7101

Record Type

10/1/2014

T

2

71

OP7102

Sequence Number

10/1/2014

T

2

01

OP7103

Patient Control Number

10/1/2014

T

20

Assigned by facility

OP7104

Principal Diagnosis

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7105

Filler

T

3

OP7106

Filler

T

10

OP7107

Reason for Visit Diagnosis - 1

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7108

Reason for Visit Diagnosis - 2

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7109

Reason for Visit Diagnosis - 3

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7110

Principal Procedure Code

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7111

Principal Procedure Date

10/1/2014

T

8

CCYYMMDD

Data Element #

Data Element Name

Implementation Date For New Data Elements

Type

Length

Description

OP7201

Record Type

10/1/2014

T

2

72

OP7202

Sequence Number

10/1/2014

T

2

01 - 03

OP7203

Patient Control Number

10/1/2014

T

20

Assigned by facility

OP7204

Other Procedure Code - 1

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7205

Other Procedure Date - 1

10/1/2014

T

8

CCYYMMDD

OP7206

Other Procedure Code - 2

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7207

Other Procedure Date - 2

10/1/2014

T

8

CCYYMMDD

OP7208

Other Procedure Code - 3

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7209

Other Procedure Date - 3

10/1/2014

T

8

CCYYMMDD

OP7210

Other Procedure Code - 4

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7211

Other Procedure Date - 4

10/1/2014

T

8

CCYYMMDD

OP7212

Other Procedure Code - 5

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7213

Other Procedure Date - 5

10/1/2014

T

8

CCYYMMDD

OP7214

Other Procedure Code - 6

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7215

Other Procedure Date - 6

10/1/2014

T

8

CCYYMMDD

OP7216

Other Procedure Code - 7

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7217

Other Procedure Date - 7

10/1/2014

T

8

CCYYMMDD

OP7218

Other Procedure Code - 8

10/1/2014

T

10

If an organization or entity is using ICD-10- PCS for outpatient claims, and only if applicable, please report here.

ICD-10 PCS - do not code decimal point - Left Justified

OP7219

Other Procedure Date - 8

10/1/2014

T

8

CCYYMMDD

Data Element #

Data Element Name

Implementation Date For New Data Elements

Type

Length

Description

OP7301

Record Type

10/1/2014

T

2

73

OP7302

Sequence Number

10/1/2014

T

2

01 - 02

OP7303

Patient Control Number

10/1/2014

T

20

Assigned by facility

OP7304

External Cause of Injury - 1

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7305

Filler

T

3

OP7306

External Cause of Injury - 2

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7307

Filler

T

3

OP7308

External Cause of Injury - 3

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7309

Filler

T

3

OP7310

External Cause of Injury - 4

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7311

Filler

T

3

OP7312

External Cause of Injury - 5

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7313

Filler

T

3

OP7314

External Cause of Injury - 6

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7315

Filler

T

3

OP7316

External Cause of Injury - 7

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7317

Filler

T

3

OP7318

External Cause of Injury - 8

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7319

Filler

T

3

OP7320

External Cause of Injury - 9

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7321

Filler

T

3

OP7322

External Cause of Injury - 10

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7323

Filler

T

3

OP7324

External Cause of Injury - 11

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7325

Filler

T

3

OP7326

External Cause of Injury - 12

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7327

Filler

T

3

Data Element #

Data Element Name

Implementation Date For New Data Elements

Type

Length

Description

OP7401

Record Type

10/1/2014

T

2

74

OP7402

Sequence Number

10/1/2014

T

2

01 - 02

OP7403

Patient Control Number

10/1/2014

T

20

Assigned by facility

OP7404

Other Diagnosis Code - 1

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7405

Filler

T

3

OP7406

Other Diagnosis Code - 2

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7407

Filler

T

3

OP7408

Other Diagnosis Code - 3

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7409

Filler

T

3

OP7410

Other Diagnosis Code - 4

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7411

Filler

T

3

OP7412

Other Diagnosis Code - 5

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7413

Filler

T

3

OP7414

Other Diagnosis Code - 6

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7415

Filler

T

3

OP7416

Other Diagnosis Code - 7

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7417

Filler

T

3

OP7418

Other Diagnosis Code - 8

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7419

Filler

T

3

OP7420

Other Diagnosis Code - 9

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7421

Filler

T

3

OP7422

Other Diagnosis Code - 10

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7423

Filler

T

3

OP7424

Other Diagnosis Code - 11

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7425

Filler

T

3

OP7426

Other Diagnosis Code - 12

10/1/2014

T

10

ICD-10 CM - do not code decimal point - Left Justified

OP7427

Filler

T

3

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP8001

Record Type

T

2

80

OP8002

Sequence

T

2

01

OP8003

Patient Control Number

T

20

Assigned by the facility

OP8097

Filler

T

2

OP8004

Attending Provider NPI

T

16

NPI of Attending Provider; Attending provider is located on UB-04

OP8005

Operating Physician NPI

T

16

NPI of Operating Physician; Operating physician is located on UB-04.

OP8098

Filler

T

32

OP8006

Attending Provider Last Name

T

16

Cannot be blank if OP8004 is present on a facility/institutional claim.

OP8007

Attending Provider First Name

T

8

Cannot be blank if OP8004 is present on a facility/institutional claim.

OP8008

Attending Provider Middle Initial

T

1

OP8009

Operating Physician Last Name

T

16

Must be populated when OP8005 is populated.

OP8010

Operating Physician First Name

T

8

Cannot be blank if OP8005 is populated.

OP8011

Operating Physician Middle Initial

T

1

OP8099

Filler

T

52

OP8012

Billing Provider NPI

T

16

National Provider Identifier assigned to the provider submitting the bill.

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP9001

Record Type

T

2

90

OP9002

Filler (National Use)

T

2

OP9003

Patient Control Number

T

20

Assigned by the facility

OP9098

Filler

T

40

OP9004

Total Ancillary Charges - Revenue Centers

N

10

Must equal the sum of line item charges excluding revenue center code 0001 if present.

Two decimal positions implied

OP9099

Filler

T

118

Record Type 99 File Control

Data Element #

Data Element

Implementation Date for New Data Elements

Type

Length

Description/Codes/Sources

OP9901

Record Type

T

2

99

OP9998

Filler

T

190

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP0101

Record Type

NA

NA

NA

OP0102

MHDO-Assigned Hospital ID

NA

NA

NA

OP0103

Hospital Name

1

33

837/2010AA/NM1/85/2/03

OP0104

Address

1

33

837/2010AA/N3/01

OP0105

City

1

33

837/2010AA/N4/01

OP0106

State

1

33

837/2010AA/N4/02

OP0107

Zip Code

1

33

837/2010AA/N4/03

OP0108

Version

NA

NA

NA

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP2001

Record Type

NA

NA

NA

OP2003

Patient Control Number

3A

26

837/2300/CLM/01

OP2004

Patient Sex

11

3

837/2010CA/DMG/03 or

837/2010BA/DMG/03

OP2005

Patient Birth Date

10

3

837/2010CA/DMG/D8/02 or

837/2010BA/DMG/D8/02

OP2007

Point of Origin for Admission or Visit

15

NA

837/2300/CL1/02

OP2008

Patient City

9B

5

837/2010CA/N4/01 or

837/2010BA/N4/01

OP2009

Patient State

9C

5

837/2010CA/N4/02

837/2010BA/N4/02

OP2010

Patient Zip Code

9D

5

837/2010CA/N4/03

837/2010BA/N4/03

OP2011

Admission/Start of Care Date

12

NA

837/2300/DTP/435/D8/03

OP2012

Statement Covers Period

• From

6

24A

837I/2300/DTP/434/RD8/03

837P/2400/DTP/472/RD8/03

OP2013

Statement Covers Period

• Thru

6

24A

837I/2300/DTP/434/RD8/03

837P/2400/DTP/472/RD8/03

OP2014

Patient Discharge Status

17

NA

837/2300/CL1/03

OP2015

Medical/Health Record Number

3B

NA

837/2300/REF/EA/02

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP2016

Race

NA

NA

837/2010CA/DMG/05

OP2017

Ethnicity

NA

NA

837/2010CA/DMG/05

OP2018

Patient Country Code

9E

NA

837/2010CA/N4/04

837/2010BA/N4/04

OP2019

Patient Last Name

8B

2

837/2010CA/NM1/QC/1/03

837/2010BA/NM1/IL/1/03

OP2020

Patient First Name

8B

2

837/2010CA/NM1/QC/1/04

837/2010BA/NM1/IL/1/04

OP2021

Patient Middle Name or Initial

8B

2

837/2010CA/NM1/QC/1/05

837/2010BA/NM1/IL/1/05

OP2022

Patient Name Suffix

8B

2

837/2010CA/NM1/QC/1/07

837/2010BA/NM1/IL/1/07

OP2023

Patient Address Line 1

9A

5

837/2010CA/N3/01

837/2010BA/N3/01

OP2024

Patient Address Line 2

9A

5

837/2010CA/N3/02

837/2010BA/N3/02

Data Element #

Data Element Name

UB-04

Form Locator

CMS-1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP3001

Record Type

NA

NA

NA

OP3002

Sequence Number

NA

NA

837/2000B/SBR/01

OP3003

Patient Control Number

3A

26

837/2300/CLM/01

OP3005

Social Security Number

NA

NA

NA

OP3007

Insured’s Group Number (Primary)

62A

11

837/2000B/SBR/P/03

Insured’s Group Number (Secondary)

62B

9A

837/2320/SBR/S/03

OP3008

Insured’s Unique Identifier (Primary)

60A

1A

837/2010BA/NM1/MI/09

Insured’s Unique Identifier (Secondary)

60B

NA

837/2330A/NM1/MI/09

OP3009

Payer Name (Primary)

50A

Header/ Carrier Block

837/2010BB/NM1/PR/2/03

Payer Name (Secondary)

50B

Header/ Carrier Block

837/2330B/NM1/PR/2/03

OP3010

Plan Name (Primary)

61A

11c

837/2000B/SBR/04

837/2320/SBR/04

Plan Name (Secondary)

61B

NA

837/2000B/SBR/04

837/2320/SBR/04

OP3011

Filing Indicator

NA

NA

837/2000B/SBR/09

837/2320/SBR/09

MHDO codes:

07 - Charity Care

08 - Self-Pay

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP4001

Record Type

NA

NA

NA

OP4002

Sequence Number

NA

NA

NA

OP4003

Patient Control Number

3A

26

837/2300/CLM/01

OP4004

Type of Bill

4

NA

837/2300/CLM/A/05-1

837/2300/CLM/05-3

OP4005

Location of Service

NA

NA

Hospital designated code when Place of Service field OP4006 is 11, 17, 20,

22, 49, 50, 71 or 72. Primarily for physician practices (primary care, specialty care and clinics).

OP4006

Place of Service

NA

24B

837/2300/CLM/05-1

HIPAA Reference ASC

X12N/005010

UB-04

Transaction Set/Loop/

Data

Form

CMS-

Segment ID/Code Value/

Element #

Data Element Name

Locator

1500

Reference Designator

OP6101

Record Type

NA

NA

NA

OP6102

Sequence Number

NA

NA

NA

OP6103

Patient Control Number

3A

26

837/2300/CLM/01

OP6104

Revenue Center Code - 1

42

NA

837/2400/SV2/01

OP6105

HCPCS Procedure Code - 1

44

24D-1

837I/2400/SV2/HC/02-2

837P/2400/SV1/HC/01-2

OP6106

Modifier - 1 (HCPCS & CPT-4)

44

24D-1

837I/2400/SV2/HC/02-3

• 1

837P/2400/SV1/HC/01-3

OP6107

Modifier - 2 (HCPCS & CPT-4)

44

24D-1

837I/2400/SV2/HC/02-4

• 1

837P/2400/SV1/HC/01-4

OP6108

Service Units - 1

46

24G-1

837I/2400/SV2/DA/05

837I/2400/SV2/UN/05

837P/2400/SV1/UN/04

OP6109

Outpatient Total Charges - 1

47

24F-1

837I/2400/SV2/03

837P/2400/SV1/02

OP6110

Service Date - 1

45

24A-1

837/2400/DTP/472/D8/03

OP6111

Revenue Center Code - 2

42

NA

837/2400/SV2/01

OP6112

HCPCS Procedure Code - 2

44

24D-2

837I/2400/SV2/HC/02-2

837P/2400/SV1/HC/01-2

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP6113

Modifier - 1 (HCPCS & CPT-4)

• 2

44

24D-2

837I/2400/SV2/HC/02-3

837P/2400/SV1/HC/01-3

OP6114

Modifier - 2 (HCPCS & CPT-4)

• 2

44

24D-2

837I/2400/SV2/HC/02-4

837P/2400/SV1/HC/01-4

OP6115

Service Units - 2

46

24G-2

837I/2400/SV2/DA/05

837I/2400/SV2/UN/05

837P/2400/SV1/UN/04

OP6116

Outpatient Total Charges - 2

47

24F-2

837I/2400/SV2/03

837P/2400/SV1/02

OP6117

Service Date - 2

45

24A-2

837/2400/DTP/472/D8/03

OP6118

Revenue Center Code - 3

42

NA

837/2400/SV2/01

OP6119

HCPCS Procedure Code - 3

44

24D-3

837I/2400/SV2/HC/02-2

837P/2400/SV1/HC/01-2

OP6120

Modifier - 1 (HCPCS & CPT-4)

44

24D-3

837I/2400/SV2/HC/02-3

• 3

837P/2400/SV1/HC/01-3

OP6121

Modifier - 2 (HCPCS & CPT-4)

44

24D-3

837I/2400/SV2/HC/02-4

• 3

837P/2400/SV1/HC/01-4

OP6122

Service Units - 3

46

24G-3

837I/2400/SV2/DA/05

837I/2400/SV2/UN/05

837P/2400/SV1/UN/04

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP6123

Outpatient Total Charges - 3

47

24F-3

837I/2400/SV2/03

837P/2400/SV1/02

OP6124

Service Date - 3

45

24A-3

837/2400/DTP/472/D8/03

OP6125

Place of Service - 1

NA

24B

837/2400/SV1/05

OP6126

Rendering Provider NPI - 1

NA

24J

837/2420A/NM1/XX/09;

837/2310B/NM1/XX/09

OP6127

Place of Service - 2

NA

24B

837/2400/SV1/05

OP6128

Rendering Provider NPI - 2

NA

24J

837/2420A/NM1/XX/09;

837/2310B/NM1/XX/09

OP6129

Place of Service - 3

NA

24B

837/2400/SV1/05

OP6130

Rendering Provider NPI - 3

NA

24J

837/2420A/NM1/XX/09;

837/2310B/NM1/XX/09

OP6131

Service Facility NPI

NA

32a

837P/2310C/NM1/77/2/09;

837P/2420C/NM1/77/2/09;

837I/2310E/NM1/09

OP6132

Service Facility Name

NA

32

837P/2310C/NM1/77/2/03;

837P/2420C/NM1/77/2/03;

837I/2310E/NM1/77/2/03

OP6133

Service Facility Address Line 1

NA

32

837P/2310C/N3/01;

837P/2420C/N3/01;

837I/2310E/N3/01

OP6134

Service Facility Address Line 2

NA

32

837P/2310C/N3/02;

837P/2420C/N3/02;

837I/2310E/N3/02

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP6135

Service Facility City

NA

32

837P/2310C/N4/01;

837P/2420C/N4/01;

837I/2310E/N4/01

OP6136

Service Facility State

NA

32

837P/2310C/N4/02;

837P/2420C/N4/02;

837I/2310E/N4/02

OP6137

Service Facility Zip Code

NA

32

837P/2310C/N4/03;

837P/2420C/N4/03;

837I/2310E/N4/03

HIPAA Reference ASC

X12N/005010

Transaction Set/Loop/

Data

UB-04 Form

Segment ID/Code Value/

Element #

Data Element Name

Locator

CMS-1500

Reference Designator

OP7101

Record Type

NA

NA

NA

OP7102

Sequence Number

NA

NA

NA

OP7103

Patient Control Number

3A

26

837/2300/CLM/01

OP7104

Principal Diagnosis

67

21A

837/2300/HI/ABK/01-2

OP7107

Reason for Visit Diagnosis - 1

70A

NA

837/2300/HI/APR/01-2

OP7108

Reason for Visit Diagnosis - 2

70B

NA

837/2300/HI/APR/02-2

OP7109

Reason for Visit Diagnosis - 3

70C

NA

837/2300/HI/APR/03-2

OP7110

Principal Procedure Code

74

NA

837/2300/HI/BBR/01-2

OP7111

Principal Procedure Date

74

NA

837/2300/HI/D8/01-4

HIPAA Reference ASC

X12N/005010

Transaction Set/Loop/

Data

UB-04 Form

Segment ID/Code Value/

Element #

Data Element Name

Locator

CMS-1500

Reference Designator

OP7201

Record Type

NA

NA

NA

OP7202

Sequence Number

NA

NA

NA

OP7203

Patient Control Number

3A

26

837/2300/CLM/01

OP7204

Other Procedure Code - 1

74A

NA

837/2300/HI/BBQ/01-2

OP7205

Other Procedure Date - 1

74A

NA

837/2300/HI/D8/01-4

OP7206

Other Procedure Code - 2

74B

NA

837/2300/HI/BBQ/02-2

OP7207

Other Procedure Date - 2

74B

NA

837/2300/HI/D8/02-4

OP7208

Other Procedure Code - 3

74C

NA

837/2300/HI/BBQ/03-2

OP7209

Other Procedure Date - 3

74C

NA

837/2300/HI/D8/03-4

OP7210

Other Procedure Code - 4

74D

NA

837/2300/HI/BBQ/04-2

OP7211

Other Procedure Date - 4

74D

NA

837/2300/HI/D8/04-4

OP7212

Other Procedure Code - 5

74E

NA

837/2300/HI/BBQ/05-2

OP7213

Other Procedure Date - 5

74E

NA

837/2300/HI/D8/05-4

OP7214

Other Procedure Code - 6

NA

NA

837/2300/HI/BBQ/06-2

OP7215

Other Procedure Date - 6

NA

NA

837/2300/HI/D8/06-4

OP7216

Other Procedure Code - 7

NA

NA

837/2300/HI/BBQ/07-2

OP7217

Other Procedure Date - 7

NA

NA

837/2300/HI/D8/07-4

OP7218

Other Procedure Code - 8

NA

NA

837/2300/HI/BBQ/08-2

OP7219

Other Procedure Date - 8

NA

NA

837/2300/HI/D8/08-4

HIPAA Reference ASC

X12N/005010

UB-04

Transaction Set/Loop/

Data

Form

Segment ID/Code Value/

Element #

Data Element Name

Locator

CMS-1500

Reference Designator

OP7301

Record Type

NA

NA

NA

OP7302

Sequence Number

NA

NA

NA

OP7303

Patient Control Number

3A

26

837/2300/CLM/01

OP7304

External Cause of Injury - 1

72A

NA

837/2300/HI/ABN/01-2

OP7306

External Cause of Injury - 2

72B

NA

837/2300/HI/ABN/02-2

OP7308

External Cause of Injury - 3

72C

NA

837/2300/HI/ABN/03-2

OP7310

External Cause of Injury - 4

NA

NA

837/2300/HI/ABN/04-2

OP7312

External Cause of Injury - 5

NA

NA

837/2300/HI/ABN/05-2

OP7314

External Cause of Injury - 6

NA

NA

837/2300/HI/ABN/06-2

OP7316

External Cause of Injury - 7

NA

NA

837/2300/HI/ABN/07-2

OP7318

External Cause of Injury - 8

NA

NA

837/2300/HI/ABN/08-2

OP7320

External Cause of Injury - 9

NA

NA

837/2300/HI/ABN/09-2

OP7322

External Cause of Injury - 10

NA

NA

837/2300/HI/ABN/10-2

OP7324

External Cause of Injury - 11

NA

NA

837/2300/HI/ABN/11-2

OP7326

External Cause of Injury - 12

NA

NA

837/2300/HI/ABN/12-2

HIPAA Reference ASC

X12N/005010

Transaction Set/Loop/

Data

UB-04 Form

Segment ID/Code Value/

Element #

Data Element Name

Locator

CMS-1500

Reference Designator

OP7401

Record Type

NA

NA

NA

OP7402

Sequence Number

NA

NA

NA

OP7403

Patient Control Number

3A

26

837/2300/CLM/01

OP7404

Other Diagnosis Code - 1

67A

21B

837I/2300/HI/ABF/01-2

837P/2300/HI/ABF/02-2

OP7406

Other Diagnosis Code - 2

67B

21C

837I/2300/HI/ABF/02-2

837P/2300/HI/ABF/03-2

OP7408

Other Diagnosis Code - 3

67C

21D

837I/2300/HI/ABF/03-2

837P/2300/HI/ABF/04-2

OP7410

Other Diagnosis Code - 4

67D

21E

837I/2300/HI/ABF/04-2

837P/2300/HI/ABF/05-2

OP7412

Other Diagnosis Code - 5

67E

21F

837I/2300/HI/ABF/05-2

837P/2300/HI/ABF/06-2

OP7414

Other Diagnosis Code - 6

67F

21G

837I/2300/HI/ABF/06-2

837P/2300/HI/ABF/07-2

OP7416

Other Diagnosis Code - 7

67G

21H

837I/2300/HI/ABF/07-2

837P/2300/HI/ABF/08-2

OP7418

Other Diagnosis Code - 8

67H

21I

837I/2300/HI/ABF/08-2

837P/2300/HI/ABF/09-2

OP7420

Other Diagnosis Code - 9

67I

21J

837I/2300/HI/ABF/09-2

837P/2300/HI/ABF/10-2

OP7422

Other Diagnosis Code - 10

67J

21K

837I/2300/HI/ABF/10-2

837P/2300/HI/ABF/11-2

OP7424

Other Diagnosis Code - 11

67K

21L

837I/2300/HI/ABF/11-2

837P/2300/HI/ABF/12-2

OP7426

Other Diagnosis Code - 12

67L

NA

837I/2300/HI/ABF/12-2

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP8001

Record Type

NA

NA

NA

OP8002

Sequence

NA

NA

NA

OP8003

Patient Control Number

3A

26

837/2300/CLM/01

OP8004

Attending Provider NPI

76

NA

837/2310A/NM1/71/1/XX/09

OP8005

Operating Physician NPI

77

NA

837/2310B/NM1/72/1/XX/09

OP8006

Attending Provider Last Name

76

NA

837/2310A/NM1/71/1/03

OP8007

Attending Provider First Name

76

NA

837/2310A/NM1/71/1/04

OP8008

Attending Provider Middle Initial

76

NA

837/2310A/NM1/71/1/05

OP8009

Operating Physician Last Name

77

NA

837/2310B/NM1/72/1/03

OP8010

Operating Physician First Name

77

NA

837/2310B/NM1/72/1/04

OP8011

Operating Physician Middle Initial

77

NA

837/2310B/NM1/72/1/05

OP8012

Billing Provider NPI

56

NA

837/2010AA/NM1/XX/09

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP9001

Record Type

NA

NA

NA

OP9003

Patient Control Number

3A

26

837/2300/CLM/01

OP9004

Total Ancillary Charges - Revenue Centers

NA

28

This is the total of the

SV2 segments with the exception of Revenue Code 0001

Data Element #

Data Element Name

UB-04

Form Locator

CMS- 1500

HIPAA Reference ASC X12N/005010

Transaction Set/Loop/ Segment ID/Code Value/ Reference Designator

OP9901

Record Type

NA

NA

NA

Chapter 243 Uniform Reporting System for Health Care Claims Data Sets

Code Me. R. 90-590 Ch. 243 Uniform Reporting System for Health Care Claims Data Sets {#sec-90-590-ch.-243 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 243}

SUMMARY: This Chapter contains the provisions for filing health care claims data sets from all third-party payors, third-party administrators, Medicare health plan sponsors and pharmacy benefits managers.

The provisions include:

Identification of the organizations required to report;

Establishment of requirements for the content, format, method, and time frame for filing health care claims data;

Establishment of standards for the data reported; and

Compliance provisions.

1. Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

Affiliated Pharmacy. “Affiliated pharmacy” meansa pharmacy that is owned, controlled, or partnered with a Pharmacy Benefit Manager (PBM) or a larger health entity.

Billing Provider. “Billing provider” means a provider or other entity that submits claims to health care claims processors for health care services directly performed or provided to a subscriber or member by a service provider.

Capitated Services. “Capitated services” means services rendered by a provider through a contract where payments are based upon a fixed dollar amount for each member monthly.

Carrier. "Carrier" means an insurance company licensed in accordance with 24-A M.R.S., including a health maintenance organization, a multiple employer welfare arrangement licensed pursuant to Title 24-A, Chapter 81, a preferred provider organization, a fraternal benefit society, or a nonprofit hospital or medical service organization or health plan licensed pursuant to 24 M.R.S. An employer exempted from the applicability of 24-A M.R.S., Chapter 56-A under the federal Employee Retirement Income Security Act of 1974 , 29 United States Code , Sections 1001 to 1461 (1988) (“ERISA”) is not considered a carrier.

Co-Insurance. “Co-insurance” means the dollar amount a member pays as a pre-determined percentage of the cost of a covered service after the deductible has been paid.

Co-Payment. “Co-payment” means the fixed dollar amount a member pays to a health care provider at the time a covered service is provided or the full cost of a service when that is less than the fixed dollar amount.

Deductible. "Deductible" means the total dollar amount a member pays towards the cost of covered services over an established period before any payments are made by the contracted third-party payor.

Dental Claims File. “Dental claims file” means a data file composed of service level remittance information including, but not limited to, member demographics, provider information, charge/payment information, and current dental terminology codes from all non-denied adjudicated claims for each billed service.

Designee. "Designee" means an entity with which the MHDO has entered into an arrangement under which the entity performs data collection, validation and management functions for the MHDO and is strictly prohibited from releasing information obtained in such a capacity.

Health Care Claims Processor. “Health care claims processor” means a third-party payor, third-party administrator, Medicare health plan sponsor, or pharmacy benefits manager.

Hospital. "Hospital" means any acute care institution required to be licensed pursuant to 22 M.R.S., Chapter 405.

MBI. “MBI” means the Center for Medicare and Medicaid Services Medicare Beneficiary Identifier.

Medical Claims File. “Medical claims file” means a data file composed of service level remittance information including, but not limited to, member demographics, provider information, charge/payment information, and clinical diagnosis/procedure codes from all non-denied adjudicated claims for each billed service.

Medicare Health Plan Sponsor. “Medicare health plan sponsor” means a health insurance carrier or other private company authorized by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services to administer Medicare Part C and Part D benefits under a health plan or prescription drug plan.

Member. “Member” includes the subscriber and any spouse or dependent who is covered by the subscriber’s policy.

Member Eligibility File. “Member eligibility file” means a data file composed of demographic information for each individual member eligible for medical, pharmacy, or dental insurance benefits for one or more days of coverage any time during the reporting month.

MHDO. "MHDO" means the Maine Health Data Organization.

M.R.S. “M.R.S.” means Maine Revised Statutes .

Non-Affiliated Pharmacy. “Non-affiliated pharmacy” means a pharmacy that is a locally owned, independent businesses. It is not owned, controlled, or partnered with a Pharmacy Benefit Manager (PBM) or a larger health entity.

Non-hospital Provider. "Non-hospital provider" means any provider of health care services other than a hospital.

Pharmacy. “Pharmacy” means a drug outlet licensed under 32 M.R.S., Chapter 117.

Pharmacy Benefits Manager. "Pharmacy benefits manager" means an entity that performs pharmacy benefits management as defined in 24-A M.R.S. §4347, sub-section 17.

Pharmacy Benefits Manager Compensation. “Pharmacy benefits manager compensation” means the difference between:

1. the value of payments made by a carrier to its pharmacy benefits manager; and
2. the value of payments made by the pharmacy benefits manager to dispensing pharmacies for the provision of prescription drugs or pharmacy services with regard to pharmacy benefits covered by the carrier.

Pharmacy Claims File. “Pharmacy claims file” means a data file composed of service level remittance information including, but not limited to, member demographics, provider information, charge/payment information, and national drug codes from all non-denied adjudicated claims for each prescription filled.

Plan Sponsor. “Plan sponsor” means any person, other than an insurer, who establishes or maintains a plan covering residents of the State of Maine, including, but not limited to, plans established or maintained by two or more employers or jointly by one or more employers and one or more employee organizations, or the association, committee, joint board of trustees or other similar group of representatives of the parties that establish or maintain the plan.

POS. “POS” means point of sale.

AA. Provider. "Provider" means a health care facility, health care practitioner, health product manufacturer, health product vendor or pharmacy.

BB. Rebate. “Rebate” means a discount, chargeback, or other price concession that affects the price

of a prescription drug product, regardless of whether conferred through regular aggregate payments, on a claim-by-claim basis at the point-of-sale, as part of retrospective financial reconciliations (including reconciliations that also reflect other contractual arrangements), or by any other method. “Rebate” does not mean a “bona fide service fee”, as such term is defined in Section 447.502 of Title 42 of the Code of Federal Regulations, published October 1, 2019.

CC . Service Provider. “Service provider” means the provider who directly performed or provided a

health care service to a subscriber or member.

DD . Subscriber. “Subscriber” is the insured individual.

EE . Substance Use Disorder (SUD). “SUD” means a cluster of cognitive, behavioral, and physiological symptoms indicating that the individual continues using the substance despite significant substance-related problems such as impaired control, social impairment, risky use, and pharmacological tolerance and withdrawal, excluding tobacco/nicotine or caffeine use.

FF. SUD Claims File: “SUD Claims File” means a data file composed of service level remittance information, de-identified in accordance with HIPPA regulations, including member demographics, provider information, charge/payment information, and clinical diagnosis/procedure codes from all non-denied, adjudicated claims and claim lines for each billed service for SUD or SUD related parts of medical and pharmacy claims.

GG. Third-party Administrator. “Third-party administrator” means any person licensed by the Maine Bureau of Insurance under 24-A M.R.S., Chapter 18 who, on behalf of a plan sponsor, health care service plan, nonprofit hospital or medical service organization, health maintenance organization or insurer, receives or collects charges, contributions or premiums for, or adjusts or settles claims on residents of this State.

HH. Third-party Payor. "Third-party payor" means a state agency that pays for health care services or a health insurer, carrier, including a carrier that provides only administrative services for plan sponsors, nonprofit hospital, medical services organization, or managed care organization licensed in the State.

2. Health Care Claims Data Set Filing Description

Health care claims processors shall submit to the MHDO or its designee a completed health care claims data set for all members who are Maine residents in accordance with the requirements of this section. Each health care claims processor is also responsible for the submission of all health care claims processed by any sub-contractor on its behalf. The health care claims data set shall include, where applicable, a member eligibility file containing records associated with each of the claims files reported: a medical claims file, a pharmacy claims file, and/or a dental claims file. The data set shall also include supporting definition files for payor specific provider specialty codes. Third-party administrators and carriers acting as third-party administrators for self-funded employee benefit plans regulated by ERISA are not required to submit data for members in such plans.

A. General Requirements

(1) Adjustment Records. Adjustment records shall be reported with the appropriate positive or negative fields with the medical, pharmacy, and dental claims file submissions. Negative values shall contain the negative sign before the value. No sign shall appear before a positive value.

(2) Capitated Payment Arrangements. A capitated payment record shall be reported for every month that a member is covered under a particular payment arrangement. In addition, capitated service records shall be included in the medical claims file, if any services were provided to the member in a given month. Specific instructions for reporting capitated payments and services are provided below.

• 1. Payment Record. The purpose of a capitation payment record is to indicate payments made to providers each month for a member covered by a capitated service contract, regardless of whether any services were provided to the member in a given month. If a member is covered for capitated services with multiple providers, or if a payor makes adjustments or reversals, more than one payment record or line may be associated with a member in any given month. Please note all adjustments and reversals must add up to the final, total payment that a payor made to any provider on behalf of a given member. All dollar amounts on reversals shall be preceded with a negative sign. Payment records are reported in the capitated payments file, as specified in Appendix G-1. 2. Service Record. Separate service lines for each service provided under a capitated service contract shall be reported in the medical claims file, Appendix D-1, and flagged as capitated services. If no services were provided to a member on a capitated service contract in a given month, then no service lines are reported. All data fields should be treated as on any other claim, except for the following ones, which are populated or left blank as specified: Paid Amount (MC063) is ‘0’; Payment Arrangement Type Indicator field (MC331) is ‘09’; the Procedure Code (MC055) for the specific procedure or service; Service Line Dates (MC334 and MC335) for the specific procedure or service; and the appropriate Quantity (MC061) greater than or equal to ‘1’.

(3) Claims Records. Records for the medical, pharmacy, and dental claims file submissions shall be reported at the visit, service, or prescription level. The submission of the medical, pharmacy, and dental claims is based upon the paid dates and not upon the dates of service associated with the claims.

(4) Codes

(a) Code Sources. Unless otherwise specified, the code sources listed and described in Appendix A are to be utilized in association with the member eligibility file and medical, pharmacy, and dental claims file submissions.

(b) Specific/Unique Coding. Except for provider, provider specialty, and individual, non-bundled procedure/diagnosis codes, specific or unique coding systems shall not be permitted as part of the health care claims data set submission.

(5) Co-Insurance/Co-Payment. Co-insurance and co-payment are to be reported in two separate fields in the medical, pharmacy, and dental claims file submissions.

(6) Coordination of Benefits Claims. Claims where multiple parties have financial responsibility shall be included with all medical, pharmacy, and dental claims file submissions.

(7) Denied Claims. Denied claims shall be excluded from all medical, pharmacy, and dental claims file submissions. When a claim contains both approved and denied service lines, only the approved service lines shall be included as part of the health care claims data set submittal.

(8) Eligibility Records. Records for the member eligibility file submission shall be reported at the individual member level with one record submitted for each claim type if the product codes are different. If a member is covered as both a subscriber and a dependent on two different policies during the same month, two records must be submitted.

(9) Exclusions

(a) Filing. Health care claims processors that have less than $2,000,000 per calendar year of adjusted premiums or claims processed, for premiums or claims subject to required reporting, are excluded from filing health care claim data sets and from the annual registration requirements of Section 3(A).

(b) Medical Claims File Exclusions. All claims related to health care policies issued for specific disease, accident, injury, hospital indemnity, disability, long-term care, student comprehensive health, or vision coverage of durable medical equipment are to be excluded from the medical claims file submission. Claims related to Medicare supplemental, Tricare supplemental, or other supplemental health insurance policies are to be excluded if the claims are not considered to be primary. If the policies cover health care services entirely excluded by the Medicare, Tricare, or other program, the claims must be submitted. Claims for dental services containing current dental terminology codes are to be excluded from the medical claims file.

(c) Member Eligibility File Exclusions. Members without medical, pharmacy, and/or dental coverage during the month reported shall be excluded.

(d) Pharmacy Claims File Exclusions. Pharmacy services claims generated from non-retail pharmacies that do not contain national drug codes are part of the medical claims file and not the pharmacy claims file.

(10) File Format. Each data file submission shall be an encrypted (AES-256) ASCII file, variable field length, and asterisk delimited.

(11) Header and Trailer Records. Each member eligibility file and each medical, pharmacy, and dental claims file submission shall contain a header record and a trailer record. The header record is the first record of each separate file submission, and the trailer record is the last. The header and trailer record formats are described in Appendices B-1 and B-2.

(12) Non-Duplicated Claims. A carrier or health care claims processor and any contracted entity acting on its behalf shall use best efforts to ensure that duplicate claims are not submitted to the MHDO or its designee.

(13) Subscriber or Member Identification

(a) Social Security Numbers. Health care claims processors shall assign to each of their members a unique identification code that is the member’s social security number. If a health care claims processor does not collect the social security numbers for all members, the health care claims processor shall use the number of the subscriber and then assign a discrete two-digit suffix for each member under the subscriber’s contract.

(b) Contract Numbers. If the subscriber’s social security number is not collected by the health care claims processor, the subscriber’s certificate or contract number shall be used in its place. The discrete two-digit suffix shall also be used with the certificate or contract number.

The unique member identification code assigned by each health care claims processor shall remain with each subscriber or member for the entire period of coverage for that individual.

(c) Names. Health care claims processors shall submit the complete names of all subscribers and members.

(d) Consistent, Inter-file Identifiers. A carrier or health care claims processor and any contracted entity acting on its behalf shall ensure that member and subscriber identifiers for the same individuals are unique and consistent across all eligibility and claims files.

(e) Carrier Specific Unique Member (CSUM) Number. All SUD related records for a de-identified person in the medical claims file shall share the same CSUM Number; all other identifying information shall be removed as outlined in Appendix D-1. For fully identifiable data, the CSUM Number shall be left blank, and other inter-file identifiers shall be populated, when available.

B. Detailed File Specifications

(1) Filled Fields. All required fields shall be filled where applicable. Non-required text and number fields shall be left blank when unavailable.

(2) Position. All text fields are to be left justified. All numeric fields are to be right justified.

(3) Signs. Positive values are assumed and need not be indicated as such. Negative values must be indicated with a minus sign and must appear in the left-most position of all numeric fields. Signed over punch characters are not to be utilized.

(4) Individual Elements and Mapping. Individual data elements, data types, field lengths, field description/code assignments, and mapping locators (UB-04, CMS 1500, ANSI X12N 270/271, 835, 837) for each file type are presented in the following appendices:

(a) (i) Member Eligibility File Specifications – Appendix C-1

(ii) Member Eligibility File Mapping to National Standard Formats – Appendix C-2

(b) (i) Medical Claims File Specifications – Appendix D-1

(ii) Medical Claims File Mapping to National Standard Formats – Appendix D-2

(c) (i) Pharmacy Claims File Specifications – Appendix E-1

(ii) Pharmacy Claims File Mapping to National Standard Formats – Appendix E-2

(d) (i) Dental Claims File Specifications – Appendix F-1

(ii) Dental Claims File Mapping to National Standard Formats – Appendix F-2

(e) (i) Capitated Payments File Specifications – Appendix G-1

(ii) Capitated Payments File Mapping to National Standard Formats – Appendix G-2

3. Submission Requirements

A. Registration/Contact and Enrollment Update. Each health care claims processor not excluded from submitting claims data under Section 2(A)(9)(a) shall complete a registration survey or update an existing one at https://mhdo.maine.gov/portal by February 28^thof each year. It is the responsibility of the health care claims processor to amend, as needed, all company, contact and enrollment information.

B. File Organization. The member eligibility file, medical claims file, pharmacy claims file, and the dental claims file are to be submitted to the MHDO or its designee as separate ASCII files. Each record shall be terminated with a carriage return (ASCII 13) or a carriage return line feed (ASCII 13, ASCII 10).

C. Filing Method. Data files must be submitted to the MHDO’s Data Warehouse Portal via secure FTP or secure web upload interface. E-mail attachments shall not be accepted.

D. Testing of Files. Within one hundred and eighty days of the adoption of any changes to the data element content of the files as described in Section 2 and at least sixty days prior to the initial submission of the files or whenever the data element content of the files as described in Section 2 is subsequently altered, each health care claims processor shall submit to the MHDO or its designee a data set for comparison to the standards listed in Section 4. Based upon a calendar period of one month or one quarter, the size of the data files submitted shall correspond to the filing period established for each health care claims processor under subsection F of this Section.

E. Rejection of Files. Failure to conform to the requirements subsections A, B, or C of this Section shall result in the rejection of the applicable data file(s). All rejected files must be resubmitted in the appropriate, corrected form to the MHDO or its designee within 15 days.

F. Filing Periods. The filing period for each applicable claims data file listed in Section 2 shall be determined by the minimum monthly total of Maine-resident members for whom claims are being paid by each health care claims processor. The data files are to be submitted in accordance with the following schedule:

Total # of Members

Filing Period

Filing Schedule

≥ 2,000

monthly

prior to the end of the month following the month in which claims were paid

< 2,000

quarterly

prior to April 30, July 31, October 31, January 31 for each preceding calendar quarter in which claims were paid

If the data files submitted by an individual health care claims processor support or are related to the files submitted by another health care claims processor, the MHDO shall determine a filing period that is consistent for all parties involved.

G. Replacement of Data Files. No health care claims processor may replace a complete data file submission more than one year after the end of the month in which the file was submitted unless it can establish exceptional circumstances for the replacement. Any replacements after this period must be approved by the MHDO. Individual adjustment records may be submitted with any monthly data file submission.

H. Run-Out Period. Health care claims processors shall submit medical, pharmacy, and/or dental claims files for a six-month period following the termination of coverage date for all members who are Maine residents.

4. Standards for Data; Notification; Response

A. Standards. The MHDO or its designee shall evaluate each member eligibility file, medical claims file, pharmacy claims file, and dental claims file submission in accordance with the following standards:

(1) The applicable code for each data element identified in Appendices C-1, D-1, E-1, and F-1 shall be included within eligible values for the element;

(2) Coding values indicating “data not available”, “data unknown”, or the equivalent shall not be used for individual data elements unless specified as an eligible value for the element;

(3) Member sex, diagnosis and procedure codes, and date of birth and all other date fields shall be consistent within an individual record; and

(4) Member identifiers shall be consistent across files.

B. Notification. Upon completion of this evaluation, the MHDO or its designee will promptly notify each health care claims processor whose data submissions do not satisfy the standards for any filing period. This notification will identify the specific file and the data elements within them that do not satisfy the standards.

C. Response. Each health care claims processor notified under subsection 4(B) will respond within 60 days of the notification by making the changes necessary in order to satisfy the standards.

5. Voluntary File Submissions

Any self-funded employee benefit plan regulated by ERISA may voluntarily submit completed healthcare data sets for Maine residents. The MHDO shall collect such data sets in accordance with the provisions of this chapter for uniform reporting system for health care claims data sets. Any such data shall be subject to the same laws and regulations as other MHDO data.

6. Public Access

Information collected, processed and/or analyzed under this rule shall be subject to release to the public or retained as confidential information in accordance with 22 M.R.S. Chapter 1683 and Code of Maine Rules 90-590, Chapter 120, unless prohibited by state or federal law.

7. Extensions or Waivers to Data Submission Requirements

If a health care claims processor due to circumstances beyond its control is temporarily unable to meet the terms and conditions of this rule, a written request must be made to the Compliance Officer of the MHDO as soon as it is practicable after the health care claims processor has determined that an extension or waiver is required. The written request shall include: the specific requirement to be extended or waived; an explanation of the cause; the methodology proposed to eliminate the necessity of the extension or waiver; and the time frame required to come into compliance. If the Compliance Officer does not approve the requested extension or waiver, the health claims processor making the request may submit a written request appealing the decision to the MHDO Board. The appeal shall be heard by the MHDO Board at the next regularly scheduled meeting following receipt of the request at the MHDO.

8. Compliance

The failure to file, report, or correct health care claims data sets when required in accordance with the provisions of this rule may be considered a violation under 22 M.R.S. Sec. 8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures .

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 8703(1), 8704(4), 8708(6-A) and 8712(2)
• EFFECTIVE DATE: July 29, 2002
• AMENDED: June 2, 2003 – filing 2003-173
• NON-SUBSTANTIVE CORRECTIONS: September 8, 2003 – formatting only
• AMENDED: February 28, 2006 – filing 2006-89
• CORRECTION: May 24, 2006 – restored item in Appendix C-1 under ME012, “34 Other Adult”
• AMENDED: April 15, 2009 – filing 2009-157
• AMENDED: October 31, 2012 – filing 2012-295
• AMENDED: May 27, 2014 – filing 2014-100
• AMENDED: October 6, 2015 – filing 2015-183
• AMENDED: March 13, 2017 – filing 2017-045
• AMENDED: June 27, 2018 – filing 2018-111
• AMENDED: December 22, 2019 – filing 2019-246
• AMENDED: October 12, 2020 – filing 2020-217
• AMENDED: November 15, 2021 – filing 2021-230
• AMENDED: June 25, 2024 – filing 2024-145
• AMENDED: July 19, 2026 – filing 2026-173
• AMENDED: NONSUBSTANTIVE CORRECTION (update of the rule history section):
• AMENDED: July 30, 2026
• AMENDED: (with references to specific MHDO data elements by file type)
• AMENDED: General Note: The MHDO leverages a wide range of source lists. Many of these lists come from standards development organizations, a few are homegrown (MHDO-created) lists, and a small number of lists combine list values across sources. In addition, where noted, we adopt the standard recommended by the APCD Common Data Layout (APCD-CDL™), which seeks to harmonize data collection efforts across states by advancing recommended lists for common data elements. In situations where the CDL references a field from the ASC X12, values from versions later than 005010 may be used even if the CDL specifies an earlier version.
• AMENDED: APCD Common Data Layout (APCD-CDL™)
• AMENDED: APCD Council, National Association of Health Data Organizations, The University of New Hampshire
• AMENDED: (MHDO Data Element: DC003, ME003, MC003, PC003, PC117)
• SOURCE: APCD Common Data Layout, Version 4.0.1
• AVAILABLE FROM: https://www.apcdcouncil.org/common-data-layout
• AVAILABLE FROM: APCD Council
• AVAILABLE FROM: 965 E Center St
• AVAILABLE FROM: Provo, UT 84606
• ABSTRACT: The purpose of the All-Payer Claims Databases (APCD) Common Data Layout (CDL) is to standardize member eligibility and healthcare payment data across states. As part of these efforts, the CDL also advances recommendations for validation source lists to further harmonize data collection. Where indicated above, MHDO data elements will utilize the CDL source list, which leverages codes from the ASC X12 and other sources.
• ABSTRACT: American Dental Association
• ABSTRACT: Current Dental Terminology (CDT) Codes
• ABSTRACT: (MHDO Data Element: DC032, MC055)
• SOURCE: Current Dental Terminology (CDT) Manual
• AVAILABLE FROM: https://www.ada.org/
• AVAILABLE FROM: American Dental Association
• AVAILABLE FROM: 211 East Chicago Avenue
• AVAILABLE FROM: Chicago, IL 60611‑2678
• ABSTRACT: The CDT contains the American Dental Association’s codes for dental procedures and nomenclature and is the nationally accepted set of numeric codes and descriptive terms for reporting dental treatments.
• ABSTRACT: American Medical Association
• ABSTRACT: Current Procedural Terminology (CPT) Codes
• ABSTRACT: (MHDO Data Element: MC055)
• SOURCE: Physicians’ Current Procedural Terminology (CPT) Manual
• AVAILABLE FROM: https://www.ama-assn.org/
• AVAILABLE FROM: American Medical Association
• AVAILABLE FROM: 515 North State Street
• AVAILABLE FROM: Chicago, IL 60654
• ABSTRACT: A listing of descriptive terms and identifying codes for reporting medical services and procedures performed by physicians.
• ABSTRACT: Accredited Standards Committee (ASC)
• ABSTRACT: ASC X12 Directories
• ABSTRACT: (MHDO Data Elements: CF003, CF015, DC003, DC011, DC012, DC021, DC031, MC003, MC011, MC012, MC027, MC038, ME003, ME007, ME012, ME013, PC003, PC025)
• SOURCE: Complete ASC X12 005010 Standard. NOTE: While the initial mapping in this document is based on the 005010 standard, list values from equivalent mappings from later versions of this standard may be used.
• AVAILABLE FROM: Https://x12.org/products
• AVAILABLE FROM: Data Interchange Standards Association, Inc. (DISA)
• AVAILABLE FROM: 7600 Leesburg Pike Ste 430
• AVAILABLE FROM: Falls Church, VA 22043
• ABSTRACT: The complete standard includes design rules and guidelines, control standards, transaction set tables, data element dictionary, segment directory and code sources. The data element dictionary contains the format and descriptions of data ele­ments used to construct X12 segments. It also contains code lists associated with these data elements. The segment directory contains the format and definitions of the data segments used to construct X12 transaction sets.
• ABSTRACT: Canada Post
• ABSTRACT: Canadian Provinces
• ABSTRACT: (MHDO Data Elements: CF033, DC015, DC028, DC049, DC056, MC015, MC083, MC090, ME016, PC015, PC023)
• ABSTRACT: Cities and ZIP Code
• ABSTRACT: (MHDO Data Elements: CF032, CF034, DC014, DC016, DC027, DC029, DC048, DC050, DC055, DC057, MC014, MC016, MC082, MC084, MC089, MC091, ME015, ME017, PC014, PC016, PC022, PC024)
• SOURCE: Canada Post
• AVAILABLE FROM: http://www.canadapost.ca/
• AVAILABLE FROM: Centers for Disease Control and Prevention
• AVAILABLE FROM: HL7/CDC Race and Ethnicity Code Set
• AVAILABLE FROM: (MHDO Data Element: ME021, ME022, ME023, ME024, ME025, ME026, ME027)
• SOURCE: Race and Ethnicity Code Set
• AVAILABLE FROM: https://phinvads.cdc.gov/vads/ViewValueSet.action?id=66D34BBC-617F-DD11-B38D-00188B398520
• AVAILABLE FROM: Centers for Disease Control and Prevention
• AVAILABLE FROM: 1600 Clifton Road
• AVAILABLE FROM: Atlanta, GA 30329-4027
• ABSTRACT: The race and ethnicity code set to be used for coding the race and ethnicity of members.
• ABSTRACT: Centers for Medicare and Medicaid Services
• ABSTRACT: Health Care Common Procedural Coding System
• ABSTRACT: (MHDO Data Element: MC055)
• SOURCE: Health Care Common Procedural Coding System
• AVAILABLE FROM: https://www.cms.gov/medicare/coding-billing/healthcare-common-procedure-system/quarterly-update
• AVAILABLE FROM: Centers for Medicare and Medicaid Services
• AVAILABLE FROM: 7500 Security Boulevard
• AVAILABLE FROM: Baltimore, MD 21244‑1850
• ABSTRACT: HCPCS is the Centers for Medicare and Medicaid Services (CMS) coding scheme to group procedures performed for payment to providers.
• ABSTRACT: Health Insurance Prospective Payment System (HIPPS)
• ABSTRACT: (MHDO Data Element: MC055, MC056, MC057, MC057A, MC057B)
• SOURCE: Center for Medicare & Medicaid Services
• AVAILABLE FROM: http://www.cms.gov/Medicare/Medicare-fee-for-Service-Payment/ProspMedicareFeeSvcPmtGen/HIPPSCodes.html
• AVAILABLE FROM: Center for Medicare and Medicaid Services
• AVAILABLE FROM: 7500 Security Boulevard
• AVAILABLE FROM: Baltimore, MD 21244
• ABSTRACT: Health Insurance Prospective Payment System (HIPPS) rate codes represent specific sets of patient characteristics (or case-mix groups) on which payment determinations are made under several prospective payment systems. Case-mix groups are developed based on research into utilization patterns among various provider types. For the payment systems that use HIPPS codes, clinical assessment data is the basic input used to determine which case-mix group applies to a particular patient. A standard patient assessment instrument is interpreted by case-mix grouping software algorithms, which assign the case mix group. For payment purposes, at least one HIPPS code is defined to represent each case-mix group. These HIPPS codes are reported on claims to insurers.
• ABSTRACT: National Provider Identifier
• ABSTRACT: (MHDO Data Elements: CF020, CF025, DC020, DC043, MC026, MC077, MC086, MC108, MC115, MC121, PC021, PC048)
• SOURCE: National Provider System
• AVAILABLE FROM: https://npiregistry.cms.hhs.gov/search
• AVAILABLE FROM: Centers for Medicare and Medicaid Services
• AVAILABLE FROM: 7500 Security Boulevard
• AVAILABLE FROM: Baltimore, MD 21244-1850
• ABSTRACT: The Centers for Medicare and Medicaid Services developed the National Provider Identifier as the standard, unique identifier for each health care provider under the Health Insurance Portability and Accountability Act of 1996.
• ABSTRACT: Place of Service Codes for Professional Claims
• ABSTRACT: (MHDO Data Element: DC030, MC037)
• SOURCE: Place of Service Codes for Professional Claims
• AVAILABLE FROM: https://www.cms.gov/Medicare/Coding/place-of-service-codes/Place_of_Service_Code_Set
• AVAILABLE FROM: Centers for Medicare and Medicaid Services
• AVAILABLE FROM: 7500 Security Boulevard
• AVAILABLE FROM: Baltimore, MD 21244‑1850
• ABSTRACT: The place of service code identifies the location where the healthcare service was rendered.
• ABSTRACT: International Country Codes
• ABSTRACT: (MHDO Data Elements: ME109, MC093, MC094, MC329, PC024A, PC109, DC109)
• SOURCE: www.nationsonline.org/oneworld/country_code_list.htm
• ABSTRACT: The ISO country codes are internationally recognized codes that designate each country and most of the dependent areas with a two- or three-letter combination or a numeric code.
• ABSTRACT: National Council for Prescription Drug Programs
• ABSTRACT: National Association of Boards of Pharmacy Number
• ABSTRACT: (MHDO Data Element: PC018)
• SOURCE: National Association of Boards of Pharmacy Database and Listings
• AVAILABLE FROM: www.ncpdp.org
• AVAILABLE FROM: National Council for Prescription Drug Programs
• AVAILABLE FROM: 9240 East Raintree Drive
• AVAILABLE FROM: Scottsdale, AZ 85260-7518
• ABSTRACT: A unique number assigned in the U.S. and its territories to individual clinic, hospi­tal, chain, and independent pharmacy locations that conduct business at retail by billing third‑party drug benefit payors. The National Council for Prescription Drug Programs (NCPDP) maintains this database under contract from the National As­sociation of Boards of Pharmacy. The National Association of Boards of Phar­macy is a seven-digit numeric number with the following format SSNNNNC, where SS=NCPDP assigned state code number, NNNN=NCPDP assigned phar­macy location number, and C=check digit calculated by algorithm from previous six digits.
• ABSTRACT: Uniform Healthcare Payor Data
• ABSTRACT: (MHDO Data Elements: PC011, PC012, PC030)
• SOURCE: NCPDP Uniform Healthcare Payor Data Standard Implementation Guide
• AVAILABLE FROM: www.ncpdp.org
• AVAILABLE FROM: National Council for Prescription Drug Programs
• AVAILABLE FROM: 9240 East Raintree Drive
• AVAILABLE FROM: Scottsdale, AZ 85260
• ABSTRACT: This standard is intended to meet an industry need to supply detailed drug or utilization claim information from adjudicated claims that processors/payors or their clients report to States or their Agents.
• ABSTRACT: National Uniform Billing Committee (NUBC)
• ABSTRACT: NUBC Codes
• ABSTRACT: (MHDO Data Elements: MC020, MC021, MC023, MC036, MC054, MC201, MC207, MC209, MC211, MC213, MC215, MC217, MC219, MC221, MC223, MC225, MC227, MC229, MC231, MC233, MC235, MC237, MC239, MC241, MC243, MC245, MC247, MC249, MC251, MC255, MC257, MC259, MC261, MC263, MC265, MC267, MC269, MC271, MC273, MC275, MC277, MC279, MC281, MC283, MC285, MC287, MC289, MC291, MC293, MC295, MC297, MC299, MC301)
• SOURCE: National Uniform Billing Committee Official Data Specifications Manual
• AVAILABLE FROM: https://www.nubc.org/
• AVAILABLE FROM: National Uniform Billing Committee
• AVAILABLE FROM: American Hospital Association
• AVAILABLE FROM: 155 N Wacker Drive
• AVAILABLE FROM: Chicago, IL 60606
• ABSTRACT: This serves as the official source of information for institutional health care billing. It contains all billing conventions and codes, including form locators, data element descriptions, definitions, reporting requirements, field attributes, approval and effective dates, and revenue, condition, occurrence, and value codes.
• ABSTRACT: National Uniform Claim Committee
• ABSTRACT: Healthcare Provider Taxonomy Code Set
• ABSTRACT: (MHDO Data Element: CF017, DC026, MC032, MC113)
• SOURCE: Washington Publishing Company
• MAINTAINED BY: National Uniform Claim Committee
• MAINTAINED BY: https://www.nucc.org/index.php/code-sets-mainmenu-41/provider-taxonomy-mainmenu-40/csv-mainmenu-57
• ABSTRACT: The Healthcare Provider Taxonomy Code Set is a hierarchical code set that consists of codes, descriptions, and definitions. Healthcare Provider Taxonomy Codes are designed to categorize the type, classification, and/or specialization of health care providers. The Code Set consists of two sections: Individuals and Groups of Individuals, and Non-Individual.
• ABSTRACT: United States Food and Drug Administration
• ABSTRACT: National Drug Codes
• ABSTRACT: (MHDO Data Element: PC026, MC075)
• SOURCE: National Drug Data File
• AVAILABLE FROM: www.fda.gov or http://www.accessdata.fda.gov/scripts/cder/ndc/default.cfm
• AVAILABLE FROM: U.S. Food and Drug Administration
• AVAILABLE FROM: Center for Drug Evaluation and Research
• AVAILABLE FROM: Division of Data Management and Services
• AVAILABLE FROM: 10903 New Hampshire Avenue
• AVAILABLE FROM: Silver Spring, MD 20993
• ABSTRACT: The National Drug Code is a coding convention established by the Food and Drug Administration to identify the labeler, product number, and package sizes of FDA-approved prescription drugs. There are over 170,000 National Drug Codes on file.
• ABSTRACT: United States Postal Service
• ABSTRACT: States and Outlying Areas of the U.S.
• ABSTRACT: (MHDO Data Elements: CF033, DC015, DC028, DC049, DC056, MC015, MC083, MC090, ME016, PC015, PC023)
• ABSTRACT: ZIP Code
• ABSTRACT: (MHDO Data Elements: CF032, CF034, DC014, DC016, DC027, DC029, DC048, DC050, DC055, DC057, MC014, MC016, MC082, MC084, MC089, MC091, ME015, ME017, PC014, PC016, PC022, PC024)
• SOURCE: United States Postal Service
• AVAILABLE FROM: https://www.usps.com
• AVAILABLE FROM: U.S. Postal Service
• AVAILABLE FROM: National Information Data Center
• AVAILABLE FROM: P.O. Box 9408
• AVAILABLE FROM: Gaithersburg, MD 20898-9408
• AVAILABLE FROM: Or
• AVAILABLE FROM: https://ribbs.usps.gov/index.cfm?page=address_manage_quality
• AVAILABLE FROM: Address Information Systems Products
• AVAILABLE FROM: National Customer Support Center
• AVAILABLE FROM: U.S. Postal Service
• AVAILABLE FROM: 6060 Primacy Pkwy Ste 231
• AVAILABLE FROM: Memphis, TN 38119-5772
• ABSTRACT: Provides names, abbreviations, and codes for the 50 states, the District of Columbia, and the outlying areas of the U.S. The ZIP Code is a geographic identifier of areas within the United States and its territories for purposes of expediting mail distribution by the U.S. Postal Service. It is five or nine numeric digits. The ZIP Code structure divides the U.S. into ten large groups of states. The leftmost digit identifies one of these groups. The next two digits identify a smaller geographic area within the large group. The two right-most digits identify a local delivery area. In the 9-digit ZIP Code, the four digits that follow the hyphen further subdivide the delivery area. The two leftmost digits identify a sector which may consist of several large buildings, blocks or groups of streets. The rightmost digits divide the sector into segments such as a street, a block, a floor of a building, or a cluster of mailboxes.
• ABSTRACT: World Health Organization (WHO)
• ABSTRACT: International Classification of Diseases, 10th Edition, Clinical Modification/Procedure Coding System (ICD-10-CM/PCS)
• ABSTRACT: (MHDO Data Elements: MC200, MC202, MC203, MC204, MC205, MC206, MC208, MC210, MC212, MC214, MC216, MC218, MC220, MC222, MC224, MC226, MC228, MC230, MC232, MC234, MC236, MC238, MC240, MC242, MC244. MC246, MC248, MC250, MC252, MC254, MC256, MC258, MC260, MC262, MC264, MC266, MC268, MC270, MC272, MC274, MC276, MC278, MC280, MC282, MC284, MC286, MC288, MC290, MC292, MC294, MC296, MC298, MC300, MC302, MC303, MC304, MC305, MC306, MC307, MC308, MC309, MC310, MC311, MC312, MC313, MC314, MC315, MC316, MC317, MC318, MC319, MC320, MC321, MC322, MC323, MC324, MC325, MC326)
• SOURCE: International Classification of Diseases, 10th Revision, (ICD‑10-CM/PCS)
• AVAILABLE FROM: https://www.cms.gov/medicare/coding-billing/icd-10-codes
• AVAILABLE FROM: WHO Publications Center AUS
• AVAILABLE FROM: 49 Sheridan Avenue
• AVAILABLE FROM: Albany, NY 12210
• ABSTRACT: The International Classification of Diseases, 10th Revision, is used to report medical diagnosis and inpatient procedures. ICD-10-CM is for use in all U.S. health care settings. Diagnosis coding under ICD-10-CM uses 3 to 7 digits instead of the 3 to 5 digits used with ICD-9-CM, but the format of the code sets is similar. ICD-10-PCS is for use in U.S. inpatient hospital settings only. ICD-10­PCS uses 7 alphanumeric digits instead of the 3 or 4 numeric digits used under ICD-9-CM procedure coding. Coding under ICD-10-PCS is much more specific and substantially different from ICD-9-CM procedure coding. The transition to ICD-10 is occurring because ICD-9 produces limited data about patients’ medical conditions and hospital inpatient procedures. ICD-9 is 30 years old, has outdated terms, and is inconsistent with current medical practice. Also, the structure of ICD-9 limits the number of new codes that can be created, and many ICD-9 categories are full.
• ABSTRACT: Data ElementDateMaximum#Data Element NameEffectiveTypeLengthDescription/Codes/SourcesHD001Record Type1/1/2003Text2HDHD002Submitter1/1/2003Text8MHDO-assigned identifier of payor submitting claims data. Do not leave blank.HD003Payor7/1/2012Text8MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverageHD004Type of File1/1/2003Text2CF Capitated Payments FileDC Dental ClaimsMC Medical ClaimsME Member EligibilityPC Pharmacy ClaimsHD005Period Beginning Date1/1/2003Text6CCYYMMBeginning of paid period for ClaimsBeginning of month covered for EligibilityBeginning of performance period for Capitated PaymentsHD006Period Ending Date1/1/2003Text6CCYYMMEnd of paid period for ClaimsEnd of month covered for EligibilityEnd of performance period for Capitated PaymentsHD007Record Count1/1/2003Number10Total number of records submitted in this fileExclude header and trailer record in countHD008Comments1/1/2003Text80Submitter may use to document this submission by assigning a filename, system source, etc.
• ABSTRACT: Data ElementDateMaximum#Data Element NameEffectiveTypeLengthDescription/Codes/SourcesTR001Record Type1/1/2003Text2TRTR002Submitter1/1/2003Text8MHDO-assigned identifier of payor submitting claims data. Do not leave blank.TR003Payor7/1/2012Text8MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverageTR004Type of File1/1/2003Text2CF Capitated Payments FileDC Dental ClaimsMC Medical ClaimsME Member EligibilityPC Pharmacy Claims TR005Period Beginning Date1/1/2003Text6CCYYMMBeginning of paid period for ClaimsBeginning of month covered for EligibilityBeginning of performance period for Capitated PaymentsTR006Period Ending Date1/1/2003Text6CCYYMMEnd of paid period for ClaimsEnd of month covered for EligibilityEnd of performance period for Capitated PaymentsTR007Date Processed1/1/2003Text8CCYYMMDDDate file was created
• ABSTRACT: Data ElementDateMaximum#Data Element NameEffectiveTypeLengthDescription/Codes/SourcesME001Submitter1/1/2003Text8MHDO-assigned identifier of payor submitting claims data. Do not leave blank.ME002Payor7/1/2012Text8MHDO-assigned code of the insurer/underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage. Do not leave blank.ME003Insurance Type/Product Code1/1/2003Text2Code identifying the type of insurance policy within a specific insurance program. Refer to Appendix AHN Medicare Part CMD Medicare Part DME004Year1/1/2003Number4Year for which eligibility is reported in this submissionME005Month1/1/2003Text2Month for which eligibility is reported in this submissionME006Insured Group or Policy Number1/1/2003Text30Group or policy number – not the number that uniquely identifies the subscriberME007Coverage Level Code1/1/2003Text3Benefit coverage levelRefer to Appendix AME008Subscriber Social Security Number1/1/2003Text9Subscriber’s social security numberLeave blank if unavailableME009Plan Specific Contract Number1/1/2003Text80Plan-assigned subscriber’s contract number Leave blank if contract number = subscriber’s social security numberME010Member Suffix or Sequence Number1/1/2003Text20Unique number of the member within the contractME011Member Identification Code1/1/2003Text50Member’s social security numberLeave blank if unavailableME012Individual Relationship Code1/1/2003Text2Member’s relationship to insuredRefer to Appendix A ME013Member Gender1/1/2003Text1Refer to Appendix AME014Member Date of Birth1/1/2003Text8CCYYMMDDME015Member City Name 4/1/2004Text30The city name where the member lives.Refer to Appendix AME016Member State or Province4/1/2004Text2The state name where the member lives, as defined by the US Postal Service and Canada PostRefer to Appendix AME017Member ZIP Code1/1/2003Text11The ZIP Code where the member lives – may include non-US codes. Do not include dashRefer to Appendix AME018Medical Coverage1/1/2003Text1N NoY YesME019Prescription Drug Coverage1/1/2003Text1N NoY YesME020Dental Coverage1/1/2003Text1N NoY YesME021Race 11/1/2021Text2Report the Member-identified race using the first two characters of the CDC Hierarchical Code. The code value “UN” (Unknown/not specified) should be used ONLY when Member answers unknown or refuses to answer. Report only collected data. If not available, leave blank. Refer to Appendix A.For quick reference, the two-character subset of the CDC race list is:R1 American Indian/Alaska NativeR2 AsianR3 Black/African AmericanR4 Native Hawaiian or Other Pacific IslanderR5 WhiteR9 Other RaceUN Unknown/Not SpecifiedME022Race 21/1/2021Text2Report the Member-identified race using the first two characters of the CDC Hierarchical Code. The code value “UN” (Unknown/not specified) should be used ONLY when Member answers unknown or refuses to answer. Report only collected data. If not available, leave blank. Refer to Appendix A.ME023Race 31/1/2021Text2Report the Member-identified race using the first two characters of the CDC Hierarchical Code. The code value “UN” (Unknown/not specified) should be used ONLY when Member answers unknown or refuses to answer. Report only collected data. If not available, leave blank. Refer to Appendix A.ME024Hispanic Indicator1/1/2021Text1Report the value that defines the element. The code value “U” for unknown should be used ONLY when member answers unknown or refuses to answer. Report only collected data. If not available, leave blank.Y Member is Hispanic/Latino/SpanishN Member is not Hispanic/Latino/SpanishU Unknown/not specified.ME025Ethnicity 11/1/2021Text6Report the Member-identified ethnicity from the External Code Source that best describes the information obtained from the Member / Subscriber. The value “UNKNOW” should be used ONLY when the Member answers unknown or refuses to answer. Report only collected data. If not available, leave blank. Refer to Appendix A. Report the CDC Unique Identifiers (format NNNN-N; 6 characters).ME026Ethnicity 21/1/2021Text6Report the Member-identified ethnicity from the External Code Source that best describes the information obtained from the Member / Subscriber. The value “UNKNOW” should be used ONLY when the Member answers unknown or refuses to answer. Report only collected data. If not available, leave blank. Refer to Appendix A. Report the CDC Unique Identifiers (format NNNN-N; 6 characters).ME027Ethnicity 31/1/2021Text6Report the Member-identified ethnicity from the External Code Source that best describes the information obtained from the Member / Subscriber. The value “UNKNOW” should be used ONLY when the Member answers unknown or refuses to answer. Report only collected data. If not available, leave blank. Refer to Appendix A. Report the CDC Unique Identifiers (format NNNN-N; 6 characters).ME028Primary Insurance Indicator1/1/2010Number11 Yes – primary insurance2 No – secondary, or tertiary insuranceME029Coverage Type1/1/2010Text3ASO – self-funded plans that are administered by a third-party administrator, where the employer has not purchased stop-loss, or group excess, insurance coverageASW – self-funded plans that are administered by a third-party administrator, where the employer has purchased stop-loss, or group excess, insurance coverageOTH – any other plan. Insurers using this code shall obtain prior approval.STN – short-term, non-renewable health insuranceUND – plans underwritten by the insurerME030Market Category Code1/1/2010Text4IND – coverage sold and issued directly to individuals (non-group)FCH – coverage sold and issued directly to individuals on a franchise basisGCV – coverage sold and issued directly to individuals as group conversion policiesGS1 – coverage sold and issued directly to employers having exactly one employeeGS2 – coverage sold and issued directly to employers having between two and nine employeesGS3 – coverage sold and issued directly to employers having between 10 and 25 employeesGS4 – coverage sold and issued directly to employers having between 26 and 50 employeesGLG1 – coverage sold and issued directly to employers having between 51 and 99 employeesGLG2 – coverage sold and issued directly to employers having 100 or more employeesGSA – coverage sold and issued directly to small employers through a qualified association trustOTH – coverage sold to other types of entities. Insurers using this market code shall obtain prior approval.ME031Special CoverageN/ANumber3State-specific assignment. Default value for Maine is “0”.ME032Group Name1/1/2010Text128Group name or IND for individual policies, and BLANK if datais not availableME101Subscriber Last Name1/1/2010Text60The subscriber last nameME102Subscriber First Name1/1/2010Text35The subscriber first nameME103Subscriber Middle Name1/1/2010Text25The subscriber middle name or initialME104Member Last Name1/1/2010Text60The member last nameME105Member First Name1/1/2010Text35The member first nameME106Member Middle Name1/1/2010Text25The member middle name or initialME107Member Address Line 12/1/2019Text55The street address where the member lives. Do not submit post office (P.O.) boxes.ME108Member Address Line 22/1/2019Text55The apartment, unit, building, or floor number, if applicable, where the member lives.ME109Member Country Code2/1/2019Text2Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.ME110Placeholder2/1/2021N/A0Leave blank. Subscriber’s Health Insurance Claim Number retired.ME111Subscriber MBI2/1/2019Text11Subscriber’s Medicare Beneficiary Identifier. May be populated starting February 1, 2019 or as soon as MBI is available for reporting. Required starting January 1, 2020 or if ME110 is not present.ME112Placeholder2/1/2021N/A0Leave blank. Member’s Health Insurance Claim Number retired.ME113Member MBI2/1/2019Text11Member’s Medicare Beneficiary Identifier. Required only for Medicare Supplemental/Companion Plans for which 1) the subscriber and the member are not the same person, 2) the payor is primary and 3) ME112 is not present. Otherwise, leave blank. If not the same as ME111, may be populated starting February 1, 2019; however, only required starting January 1, 2020.ME114Plan Begin Date(Member Effective Date)2/1/2020Text8CCYYMMDD. Effective date of coverage. Date eligibility started for this member under this plan type.ME115Plan End Date(Member Cancellation Date)2/1/2020Text8CCYYMMDD. Last continuous day of coverage (date eligibility ended) for this member under this plan. For open contracts, leave blank.ME116Grandfathered Plan Indicator 2/1/2025Text1Indicates if a plan qualifies as a “Grandfathered” or “Transitional Plan” under the Affordable Care Act (ACA). Please see definition for “grandfathered” and “transitional” in HHS rules 45-CFR-147.140: https://www.federalregister.gov/select- citation/2013/06/03/45-CFR-147. The values of the indicator are as follows: 1=Grandfathered; 2=Non-Grandfathered; 3=Transitional; 4=Not Applicable. ME117Metal Tier2/1/2025Text1For Non-Grandfathered health plans for the Individual and Small Group markets (under ACA) ONLY. Health benefit plan metal tier for qualified health plans (QHPs) and catastrophic plans as defined in the Patient Protection and Affordable Care Act, Public Law 111-148, Section 1302: Essential Health Benefits Requirements:0=Not a QHP or catastrophic plan;1=Catastrophic;2=Bronze;3=Silver;4=Gold;5=Platinum.If not applicable, leave blank.ME118Enrolled Through a Public Health Insurance Exchange2/1/2025Text1For Non-Grandfathered health plans for the Individual and Small Group markets (under ACA) ONLY. Use this field to report whether the policy for this eligibility record was enrolled through a Public Health Insurance Exchange. Valid codes include:1=Yes;2=No;3=Unknown/not applicable.ME119Cost-Sharing Reduction Indicator2/1/2025Text1For Non-Grandfathered health plans for the Individual and Small Group markets (under ACA) ONLY. Indicates cost-sharing reduction under the Affordable Care Act (ACA). This is a person- level indicator in which enrollees who qualify for cost-sharing reduction are assigned cost- sharing indicator values of 1-8. Non-Cost-Sharing recipients are assigned a cost-sharing indicator value of zero. Valid codes include: 1=Enrollees in 94% Actuarial Value (AV) Silver Plan Variation; 2=Enrollees in 87% AV Silver Plan Variation; 3=Enrollees in 73% AV Silver Plan Variation; 4=Enrollees in Zero Cost Sharing Plan Variation of Platinum Level QHP (Qualified Health Plan); 5=Enrollee in Zero Cost Sharing Plan Variation of Gold Level QHP; 6=Enrollee in Zero Cost Sharing Plan Variation of Silver Level QHP; 7=Enrollee in Zero Cost Sharing Plan Variation of Bronze Level QHP; 8=Enrollee in Limited Cost Sharing Plan Variation; 0=Non-CSR recipient, and enrollees with unknown CSR. If not applicable, leave blank.ME899Record Type1/1/2003Text2ME
• ABSTRACT: HIPAA Reference ASC X12N/005010DataTransaction Set/Loop/ElementSegment ID/Code Value/#Data Element NameReference DesignatorME001SubmitterN/AME002PayorN/AME003Insurance Type/Product Code271/2110C/EB/04, 271/2110D/EB/04ME004YearN/AME005MonthN/AME006Insured Group or Policy Number271/2100C/REF/1L/02, 271/2100C/REF/IG/02, 271/2100C/REF/6P/02, 271/2100D/REF/1L/02, 271/2100D/REF/IG/02, 271/2100D/REF/6P/02,ME007Coverage Level Code271/2110C/EB/02, 271/2110D/EB/02ME008Subscriber Social Security Number271/2100C/REF/SY/02ME009Plan Specific Contract Number271/2100C/NM1/MI/09ME010Member Suffix or Sequence Number271/2100C/REF/49/02, 271/2100D/REF/49/02ME011Member Identification Code271/2100C/REF/SY/02, 271/2100D/REF/SY/02ME012Individual Relationship Code271/2100C/INS/Y/02, 271/2100D/INS/N/02ME013Member Gender271/2100C/DMG/03, 271/2100D/DMG/03ME014Member Date of Birth271/2100C/DMG/D8/02, 271/2100D/DMG/D8/02ME015Member City Name 271/2100C/N4/01, 271/2100D/N4/01ME016Member State or Province271/2100C/N4/02, 271/2100D/N4/02ME017Member ZIP Code271/2100C/N4/03, 271/2100D/N4/03ME018Medical CoverageN/AME019Prescription Drug CoverageN/AME020Dental CoverageN/AME021Race 1N/AME022Race 2N/AME023Race 3N/AME024Hispanic IndicatorN/AME025Ethnicity 1N/AME026Ethnicity 2N/AME027Ethnicity 3N/AME028Primary Insurance IndicatorN/AME029Coverage TypeN/AME030Market Category CodeN/AME031Special Coverage N/AME032Group Name271/2100C/REF/18/03, 271/2100D/REF/28/03, 271/2100C/REF/6P/03, 271/2100D/REF/6P/03, 271/2100C/REF/N6/03, 271/2100D/REF/N6/03ME101Subscriber Last Name271/2100C/NM1/ /03ME102Subscriber First Name271/2100C/NM1/ /04ME103Subscriber Middle Name271/2100C/NM1/ /05ME104Member Last Name271/2100C/NM1/ /03, 271/2100D/NM1/ /03ME105Member First Name271/2100C/NM1/ /04, 271/2100D/NM1/ /04ME106Member Middle Name271/2100C/NM1/ /05, 271/2100D/NM1/ /05ME107Member Address Line 1271/2100C/N3/01, 271/2100D/N3/01ME108Member Address Line 2271/2100C/N3/02, 271/2100D/N3/02ME109Member Country Code271/2100C/N4/04, 271/2100D/N4/04ME110PlaceholderN/AME111Subscriber MBI271/2100C/NM1/MI/09ME112PlaceholderN/AME113Member MBI271/2100D/NM1/MI/09, 271/2100D/REF/F6/02ME114Plan Begin Date(Member Effective Date)271/2100C/DTP/346/D8, 271/2100D/DTP/346/D8ME115Plan End Date(Member Cancellation Date)271/2100C/DTP/347/D8, 271/2100D/DTP/347/D8ME116Grandfathered Plan IndicatorN/AME117Metal TierN/AME118Enrolled Through a Public Health Insurance ExchangeN/AME119Cost-Sharing Reduction IndicatorN/AME899Record TypeN/A
• ABSTRACT: Data Element#Data Element NameDateEffectiveTypeMaximumLengthDescription/Codes/SourcesMC001Submitter1/1/2003Text8MHDO-assigned identifier of payor submitting claims data. Do notleave blank.MC002Payor7/1/2012Text8MHDO-assigned code of the insurer/underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage. Do not leave blank.MC003Insurance Type/Product Code1/1/2003Text2Code identifying the type of insurance policy within a specific insurance program. Refer to Appendix A16 Medicare Part CMD Medicare Part DSP Supplemental PolicyMC004Payor Claim Control Number1/1/2003Text35Must apply to the entire claim and be unique within the payor’s system.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC005Line Counter4/1/2004Number4Line number for this serviceThe line counter begins with 1 and is incremented by 1 for each additional service line of a claim.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC005AVersion Number1/1/2010Number4The version number of this claim service line.The original claim will have a version number of 0, with the next version being assigned a 1, and each subsequent version being incremented by 1 for that service line.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC006Insured Group or Policy Number1/1/2003Text30Group or policy number – not the number that uniquely identifies the subscriber.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC007Subscriber Social Security Number1/1/2003Text9Subscriber’s social security numberLeave blank if unavailable.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC008Plan Specific Contract Number1/1/2003Text80Plan-assigned contract numberLeave blank if contract number = subscriber’s social security number.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC009Member Suffix or Sequence Number1/1/2003Text20Uniquely numbers the member within the contract.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC010Member Identification Code1/1/2003Text50Member’s social security numberLeave blank if unavailable.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC011Individual Relationship Code1/1/2003Text2Member’s relationship to insuredRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC012Member Gender1/1/2003Text1Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC013Member Date of Birth1/1/2003Text8CCYYMMDDShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC014Member City Name 4/1/2004Text30The city name where the member lives.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC015Member State or Province4/1/2004Text2The state name where the member lives, as defined by the US Postal Service and Canada PostRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC016Member ZIP Code1/1/2003Text11The ZIP Code where the member lives– may include non-US codesRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC017Date Service Approved (AP Date)1/1/2003Text8CCYYMMDDThe value ‘CCYY0101’, where CCYY is the year in which the service was approved, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC018Admission Date 1/1/2003Text8Required for all inpatient claimsCCYYMMDDThe value ‘CCYY0101’, where CCYY is the year in which the admission occurred, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC019Admission Hour4/1/2004Text2Required for all inpatient claimsTime is expressed in military time – HHMC020Priority (Type) of Admission or Visit4/1/2004Number1Required for all inpatient claimsRefer to Appendix AMC021Point of Origin for Admission or Visit4/1/2004Text1Required for all inpatient claimsRefer to Appendix AMC022Discharge Hour4/1/2004Text2Time expressed in military time – HHMC023Patient Discharge Status1/1/2003Text2Required for all inpatient claimsRefer to Appendix AMC024Rendering Provider Number1/1/2003Text30Payor-assigned rendering provider numberMC025Rendering Provider Tax ID Number1/1/2003Text10Federal taxpayer’s identification numberMC026National Provider ID – Rendering Provider4/1/2004Text20National Provider ID for Rendering ProviderThis data element pertains to the entity or individual directly providing the service.Refer to Appendix AMC027Rendering Provider Entity Type Qualifier4/1/2004Number1HIPAA provider taxonomy classifies provider groups (clinicians who bill as a group practice or under a corporate name, even if that group is composed of one provider) as a “person”, and these shall be coded as a person. Refer to Appendix A. Valid codes are:1 – Person;2 – Non-Person EntityMC028Rendering Provider First Name1/1/2003Text40Individual first nameLeave blank if provider is a facility or organization.MC029Rendering Provider Middle Name1/1/2003Text25Individual middle name or initialLeave blank if provider is a facility or organization.MC030Rendering Provider Last Name or Organization Name1/1/2003Text60Full name of provider organization or last name of individual providerMC031Rendering Provider Suffix1/1/2003Text10Suffix to individual nameLeave blank if provider is a facility or organization.The service provider suffix shall be used to capture the generation of the individual clinician (e.g., Jr., Sr., III), if applicable, rather than the clinician’s degree (e.g., MD, LCSW).MC032Rendering Provider Specialty1/1/2003Text10Refer to Appendix AIf defined by payor, then dictionary for specialty code values must be supplied during testing. MC033Placeholder10/1/2014N/A0Leave blankService Provider City Name retired; refer to MC089 – Service Facility Location City NameMC034Placeholder10/1/2014N/A0Leave blankService Provider State or Province retired; refer to MC090 – Service Facility Location Address State or ProvinceMC035Placeholder10/1/2014N/A0Leave blankService Provider ZIP Code retired; refer to MC091 – Service Facility Location Address State or ProvinceMC036Type of Bill – Institutional4/1/2004Text3Required for institutional claimsNot to be used for professional claimsExclude leading zero, but include frequency indicator, if presentRefer to Appendix AMC037Place of Service – Professional4/1/2004Text2Required for professional claimsNot to be used for institutional claimsRefer to Appendix AMC038Claim Status1/1/2003Text2Refer to Appendix AMC039Placeholder2/1/2025N/A0Leave blank. ICD-9 Admitting Diagnosis retired. See MC202 for ICD-10 Admitting Diagnosis.MC040Placeholder2/1/2025N/A0Leave blank. ICD-9 E-Code retired.See MC206 and following fields for ICD-10 External Cause of Injury codes.MC041Placeholder2/1/2025N/A0Leave blank. ICD-9 Principal Diagnosis retired. See MC200 for ICD-10 Principal Diagnosis.MC042Placeholder2/1/2025N/A0Leave blank. Other ICD-9 Diagnosis – 1 retired. See MC254 and following fields for ICD-10 secondary, etc. diagnoses.MC043Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 2 retiredMC044Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 3 retired MC045Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 4 retired MC046Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 5 retired MC047Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 6 retired MC048Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 7 retired MC049Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 8 retired MC050Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 9 retired MC051Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 10 retired MC052Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 11 retired MC053Placeholder2/1/2025N/A0Leave blank. Other Diagnosis – 12 retired MC054Revenue Code1/1/2003Text4National Uniform Billing Committee CodesCode using leading zeroes, left justified, and four digits.Refer to Appendix AMC055Procedure Code1/1/2003Text10Health Care Common Procedural Coding System (HCPCS), the CPT codes of the American Medical Association, the CDT from the American Dental Association, and the HIPPS codes from the Health Insurance Prospective Payment System.Specify the procedure or service on a capitated service record and set the Payment Arrangement Type Indicator (MC331) = ‘09’.Refer to Appendix AMC056Procedure Modifier – 11/1/2003Text2Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code.MC057Procedure Modifier – 21/1/2003Text2Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code.MC057AProcedure Modifier – 310/1/2014Text2Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code.MC057BMC058Procedure Modifier – 4Placeholder10/1/2014,2/1/2025TextN/A20Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code.Leave blank. ICD-9-CM Procedure Code retiredSee MC302 and following fields for ICD-10 procedure codes.MC059Claim Date – From1/1/2003Text8First date of service for this claim. See mapping to form locators and the 005010 in Appendix D-2. See MC334 for line-level service from date.CCYYMMDDThe Payment Arrangement Type Indicator (MC331) = ‘09’ for all capitated service records.The value ‘CCYY0101’, where CCYY is year of the first date of service for the claim, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC060Claim Date – Thru1/1/2003Text8Last date of service for this claim. See mapping to form locators and the 005010 in Appendix D-2. See MC335 for line-level service through date.CCYYMMDDThe Payment Arrangement Type Indicator (MC331) = ‘09’ for all capitated service records.The value ‘CCYY0101’, where CCYY is year of the last date of service for the claim, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC061Quantity1/1/2003Number10Count of services performed, which shall be set equal to one on all observation bed service lines and should be set equal to zero on all other room and board service lines, regardless of the length of stay. Code decimal point. On a capitated service record, the value of this field is greater than or equal to 1. The Payment Arrangement Type Indicator (MC331) = ‘09’ for all capitated service records.MC062Charge Amount1/1/2003Number10Do not code decimal point. Two decimal places implied.MC063Paid Amount1/1/2003Number10Includes any withhold amounts. On a capitated service record, set the value of this field = ‘0’. The Payment Arrangement Type Indicator (MC331) = ‘09’ for all capitated service records.Do not code decimal point. Two decimal places implied.MC064Placeholder2/1/2025N/A0Leave blank. Prepaid amount retired.MC065Co-pay Amount1/1/2003Number10The preset, fixed dollar amount for which the individual is responsible.Do not code decimal point. Two decimal places implied.MC066Coinsurance Amount1/1/2003Number10The dollar amount an individual is responsible for – not the percentage.Do not code decimal point. Two decimal places implied.MC067Deductible Amount1/1/2003Number10Do not code decimal point. Two decimal places implied.MC068Patient Account/Control Number7/1/2006Text20Identifier assigned by hospitalShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC069Discharge Date7/1/2006Text8Date patient discharged. Required for all inpatient claims.CCYYMMDDThe value ‘CCYY0101’, where CCYY is the year in which discharge occurred, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC070Placeholder2/1/2016N/A0Leave blank. Service Provider Country Name retiredMC071Placeholder2/1/2025N/A0Leave blank. DRG retired MC072Placeholder2/1/2025N/A0Leave blank. DRG Version retired MC073Placeholder2/1/2025N/A0Leave blank. APC retired MC074Placeholder2/1/2025N/A0Leave blank. APC Version retired MC075Drug Code1/1/2010Text11An NDC code used only when a medication is paid for as part of a medical claim.Refer to Appendix AMC076Billing Provider Number1/1/2010Text30Payor-assigned billing provider number. This number should be the identifier used by the payor for internal identification purposes, anddoes not routinely change.MC077National Provider ID – Billing Provider1/1/2010Text20National Provider ID for billing providerRefer to Appendix AMC078Billing Provider Last Name or Organization Name1/1/2010Text60Full name of provider billing organization or last name of individual billing provider.MC079Billing Provider Tax ID10/1/2014Text10Federal taxpayer's identification numberMC080Billing Provider Address Line 110/1/2014Text55Address information for billing providerMC081Billing Provider Address Line 210/1/2014Text55The suite, unit, building, or floor number, if applicable, of the billing provider. MC082Billing Provider City Name10/1/2014Text30The city name of billing providerRefer to Appendix AMC083Billing Provider State or Province10/1/2014Text2The state name of the billing provider, as defined by the US Postal Service and Canada PostRefer to Appendix AMC084Billing Provider Zip Code10/1/2014Text11The ZIP Code of the billing provider - may include non-US codesDo not include dashRefer to Appendix AMC085Service Facility Location Name10/1/2014Text60Laboratory or service facility nameIf not available or not specified, do not populate.MC086National Provider ID – Service Facility10/1/2014Text20National Provider ID for laboratory or service facilityIf not available or not specified, do not populate.Refer to Appendix AMC087Service Facility Location Address Line 110/1/2014Text55The street address where the service was provided or where the specimen was collected. Do not submit post office (P.O.) boxes.MC088Service Facility Location Address Line 210/1/2014Text55The suite, unit, building, or floor number, if applicable, where the service was provided or where the specimen was collected. MC089Service Facility Location City Name10/1/2014Text30The city name where the service was provided or where the specimen was collected. Refer to Appendix AMC090Service Facility Location State or Province10/1/2014Text2The state name where the service was provided or where the specimen was collected, as defined by the US Postal Service and Canada Post.Refer to Appendix AMC091Service Facility Location Zip Code10/1/2014Text11The Zip Code where the service was provided or where the specimen was collected – may include non-US codesDo not include dashRefer to Appendix AMC092Service Facility Number2/1/2016Text30Payor-assigned service facility number. This number should be the identifier used by the payor for internal identification purposes and does not routinely change.If not available or not specified, do not populate.MC093Service Facility Location Country Code2/1/2016Text2Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A. If not available or not specified, do not populate.MC094Billing Provider Country Code2/1/2016Text2Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.MC101Subscriber Last Name1/1/2010Text60The subscriber last nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC102Subscriber First Name1/1/2010Text35The subscriber first nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC103Subscriber Middle Name1/1/2010Text25The subscriber middle name or initialShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC104Member Last Name1/1/2010Text60The member last nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC105Member First Name1/1/2010Text35The member first nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC106Member Middle Name1/1/2010Text25The member middle name or initialShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC107Attending Provider Number2/1/2016Text30Payor-assigned attending provider number. This number should be the identifier used by the payor for internal identification purposes and does not routinely change.MC108National Provider ID – Attending Provider2/1/2016Text20National Provider ID for attending providerRefer to Appendix AMC109Attending Provider First Name2/1/2016Text40Individual first nameMC110Attending Provider Middle Name2/1/2016Text25Individual middle name or initialMC111Attending Provider Last Name2/1/2016Text60Individual last nameMC112Attending Provider Suffix2/1/2016Text10Individual name suffixThe attending provider suffix shall be used to capture the generation of the individual clinician (e.g., Jr., Sr., III), if applicable, rather than the clinician’s degree (e.g., MD, LCSW).MC113Attending Provider Specialty2/1/2016Text10Refer to Appendix AIf defined by payor, then dictionary for specialty code values must be supplied during testing. MC114Operating Provider Number2/1/2016Text30Payor-assigned operating provider number. This number should be the identifier used by the payor for internal identification purposes and does not routinely change.MC115National Provider ID – Operating Provider2/1/2016Text20National Provider ID for operating providerRefer to Appendix AMC116Operating Provider First Name2/1/2016Text40Individual first nameMC117Operating Provider Middle Name2/1/2016Text25Individual middle name or initialMC118Operating Provider Last Name2/1/2016Text60Individual last nameMC119Operating Provider Suffix2/1/2016Text10Individual name suffixThe operating provider suffix shall be used to capture the generation of the individual clinician (e.g., Jr., Sr., III), if applicable, rather than the clinician’s degree (e.g., MD, LCSW).MC120Referring Provider Number2/1/2016Text30Payor-assigned referring provider number. This number should be the identifier used by the payor for internal identification purposes and does not routinely change.MC121National Provider ID – Referring Provider2/1/2016Text20National Provider ID for referring providerRefer to Appendix AMC122Referring Provider First Name2/1/2016Text40Individual first nameMC123Referring Provider Middle Name2/1/2016Text25Individual middle name or initialMC124Referring Provider Last Name2/1/2016Text60Individual last nameMC125Referring Provider Suffix2/1/2016Text10Individual name suffixThe referring provider suffix shall be used to capture the generation of the individual clinician (e.g., Jr., Sr., III), if applicable, rather than the clinician’s degree (e.g., MD, LCSW).MC200Principal Diagnosis10/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC201Present On Admission Indicator10/1/2014Text1Standard POA code setRefer to Appendix AMC202Admitting Diagnosis10/1/2004Text7Required on all inpatient admission claims and encountersICD-10-CM Do not code decimal point.Refer to Appendix AMC203Reason for Visit Diagnosis - 110/1/2014Text7ICD-10 CM Do not code decimal point.Refer to Appendix AMC204Reason for Visit Diagnosis - 210/1/2014Text7ICD-10 CM Do not code decimal point.Refer to Appendix AMC205Reason for Visit Diagnosis - 310/1/2014Text7ICD-10 CM Do not code decimal point.Refer to Appendix AMC206External Cause of Injury - 110/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC207Present On Admission Indicator - 110/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC208External Cause of Injury - 210/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC209Present On Admission Indicator - 210/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC210External Cause of Injury - 310/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC211Present On Admission Indicator - 310/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC212External Cause of Injury - 410/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC213Present On Admission Indicator - 410/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC214External Cause of Injury - 510/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC215Present On Admission Indicator - 510/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC216External Cause of Injury - 610/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC217Present On Admission Indicator - 610/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC218External Cause of Injury - 710/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC219Present On Admission Indicator - 710/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC220External Cause of Injury - 810/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC221Present On Admission Indicator - 810/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC222External Cause of Injury - 910/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC223Present On Admission Indicator - 910/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC224External Cause of Injury - 1010/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC225Present On Admission Indicator - 1010/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC226External Cause of Injury - 1110/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC227Present On Admission Indicator - 1110/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC228External Cause of Injury - 1210/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC229Present On Admission Indicator - 1210/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC230External Cause of Injury - 1310/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC231Present On Admission Indicator - 1310/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC232External Cause of Injury - 1410/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC233Present On Admission Indicator - 1410/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC234External Cause of Injury - 1510/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC235Present On Admission Indicator - 1510/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC236External Cause of Injury - 1610/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC237Present On Admission Indicator - 1610/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC238External Cause of Injury - 1710/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC239Present On Admission Indicator - 1710/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC240External Cause of Injury - 1810/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC241Present On Admission Indicator - 1810/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC242External Cause of Injury - 1910/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC243Present On Admission Indicator - 1910/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC244External Cause of Injury - 2010/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC245Present On Admission Indicator - 2010/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC246External Cause of Injury - 2110/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC247Present On Admission Indicator - 2110/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC248External Cause of Injury - 2210/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC249Present On Admission Indicator - 2210/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC250External Cause of Injury - 2310/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC251Present On Admission Indicator - 2310/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC252External Cause of Injury - 2410/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC253Present On Admission Indicator - 2410/1/2014Text1Standard POA code setRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC254Other Diagnosis – 110/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC255Present On Admission Indicator – 110/1/2014Text1Standard POA code setRefer to Appendix AMC256Other Diagnosis – 210/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC257Present On Admission Indicator – 210/1/2014Text1Standard POA code setRefer to Appendix AMC258Other Diagnosis – 310/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC259Present On Admission Indicator – 310/1/2014Text1Standard POA code setRefer to Appendix AMC260Other Diagnosis – 410/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC261Present On Admission Indicator – 410/1/2014Text1Standard POA code setRefer to Appendix AMC262Other Diagnosis – 510/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC263Present On Admission Indicator – 510/1/2014Text1Standard POA code setRefer to Appendix AMC264Other Diagnosis – 610/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC265Present On Admission Indicator – 610/1/2014Text1Standard POA code setRefer to Appendix AMC266Other Diagnosis – 710/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC267Present On Admission Indicator – 710/1/2014Text1Standard POA code setRefer to Appendix AMC268Other Diagnosis – 810/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC269Present On Admission Indicator – 810/1/2014Text1Standard POA code setRefer to Appendix AMC270Other Diagnosis – 910/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC271Present On Admission Indicator – 910/1/2014Text1Standard POA code setRefer to Appendix AMC272Other Diagnosis – 1010/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC273Present On Admission Indicator – 1010/1/2014Text1Standard POA code setRefer to Appendix AMC274Other Diagnosis – 1110/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC275Present On Admission Indicator – 1110/1/2014Text1Standard POA code setRefer to Appendix AMC276Other Diagnosis – 1210/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC277Present On Admission Indicator – 1210/1/2014Text1Standard POA code setRefer to Appendix AMC278Other Diagnosis – 1310/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC279Present On Admission Indicator – 1310/1/2014Text1Standard POA code setRefer to Appendix AMC280Other Diagnosis – 1410/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC281Present On Admission Indicator – 1410/1/2014Text1Standard POA code setRefer to Appendix AMC282Other Diagnosis – 1510/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC283Present On Admission Indicator – 1510/1/2014Text1Standard POA code setRefer to Appendix AMC284Other Diagnosis – 1610/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC285Present On Admission Indicator – 1610/1/2014Text1Standard POA code setRefer to Appendix AMC286Other Diagnosis – 1710/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC287Present On Admission Indicator – 1710/1/2014Text1Standard POA code setRefer to Appendix AMC288Other Diagnosis – 1810/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC289Present On Admission Indicator – 1810/1/2014Text1Standard POA code setRefer to Appendix AMC290Other Diagnosis – 1910/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC291Present On Admission Indicator – 1910/1/2014Text1Standard POA code setRefer to Appendix AMC292Other Diagnosis – 2010/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC293Present On Admission Indicator – 2010/1/2014Text1Standard POA code setRefer to Appendix AMC294Other Diagnosis – 2110/1/2004Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC295Present On Admission Indicator – 2110/1/2014Text1Standard POA code setRefer to Appendix AMC296Other Diagnosis – 2210/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC297Present On Admission Indicator – 2210/1/2014Text1Standard POA code setRefer to Appendix AMC298Other Diagnosis – 2310/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC299Present On Admission Indicator – 2310/1/2014Text1Standard POA code setRefer to Appendix AMC300Other Diagnosis – 2410/1/2014Text7ICD-10-CM Do not code decimal point.Refer to Appendix AMC301Present On Admission Indicator – 2410/1/2014Text1Standard POA code setRefer to Appendix AMC302Principal Procedure Code10/1/2014Text7IDC-10-PCS Primary procedure code for this line of serviceDo not code decimal point.Refer to Appendix AMC303Other Procedure Code - 110/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC304Other Procedure Code - 210/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC305Other Procedure Code - 310/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC306Other Procedure Code - 410/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC307Other Procedure Code - 510/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC308Other Procedure Code - 610/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC309Other Procedure Code - 710/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC310Other Procedure Code - 810/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC311Other Procedure Code - 910/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC312Other Procedure Code - 1010/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC313Other Procedure Code - 1110/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC314Other Procedure Code - 1210/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC315Other Procedure Code - 1310/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC316Other Procedure Code - 1410/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC317Other Procedure Code - 1510/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC318Other Procedure Code - 1610/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC319Other Procedure Code - 1710/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC320Other Procedure Code - 1810/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC321Other Procedure Code - 1910/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC322Other Procedure Code - 2010/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC323Other Procedure Code - 2110/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC324Other Procedure Code - 2210/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC325Other Procedure Code - 2310/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC326Other Procedure Code - 2410/1/2014Text7ICD-10 PCS Do not code decimal point.Refer to Appendix AMC327Member Address Line 12/1/2019Text55The street address where the member lives. Do not submit post office (P.O.) boxes.. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC328Member Address Line 22/1/2019Text55The apartment, unit, building, or floor number, if applicable, where the member lives. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC329Member Country Code2/1/2019Text2Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC330In-Plan Network Indicator2/1/2021Text1A yes/no indicator that specifies if the Billing Provider (not the benefit) is within the health plan network. Valid codes are: N=No; Y=Yes. MC331Payment Arrangement Type Indicator2/1/2022Text2Indicates the payment methodology. Valid codes are: 01=Unused/Retired02=Fee for Service 03=Percent of Charges 04=DRG05=Pay for Performance 06=Global Payment07=APC08=Other Claims-based Payment09= Capitation contract per member per month (PMPM)MC332Member Age2/1/2025Text2Member’s calculated age as of the service date. Round to the nearest integer. For ages ≥ 90, indicate ‘90’.MC333Substance Use Disorder (SUD) Indicator2/1/2025Text1Indicates whether a record contains 42 CFR Part 2 SUD-related data or not. Valid values are:N = Record does not contain 42 CFR Part 2 SUD-related data. Send all available values of all requested fields.Y = Record contains 42 CFR Part 2 SUD-related data. The following fields shall be left blank:MC004-MC016; MC068; MC101-MC106; MC206 – MC253; and MC327-MC329. Fields MC017, MC018, MC059, MC060, MC069, MC334 and MC335 shall be recoded to CCYY0101, where CCYY is the year of the date. NOTE: only 42 CFR Part 2 SUD-related claim lines shall be marked with ‘Y’; other claim lines in the claim that are not 42 CFR Part 2 SUD-related shall be marked with ‘N’.MC334Service Line Date – From2/1/2025Text8First date of service for this service line. Indicate the date of service at the line level, not the claim level. See mapping to form locators and the 005010 in Appendix D-2.CCYYMMDDOn a capitated service record, this is the first day of service. The Payment Arrangement Type Indicator (MC331) = ‘09’ for all capitated service records. The value ‘CCYY0101’, where CCYY is year of the first date of service for the claim, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC335Service Line Date – Thru2/1/2025Text8Last date of service for this service line. Indicate the date of service at the line level, not the claim level. See mapping to form locators and the 005010 in Appendix D-2.CCYYMMDDOn a capitated service record, this is the last day of service. The Payment Arrangement Type Indicator (MC331) = ‘09’ for all capitated service records. The value ‘CCYY0101’, where CCYY is year of the last date of service for the claim, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of MC333 = ‘Y’.MC336Carrier Specific Unique Member (CSUM) Number 2/1/2025Text50This Number should uniquely and consistently classify a member in the medical claims payments files that contain 42 CFR Part 2-related data (MC333 = ‘Y’), and other inter-file identifiers shall be left blank. For fully identified data records that do not contain 42 CFR Part 2-related data (MC333 = ‘N’), the CSUM Number shall be left blank, and all other inter-file identifiers shall be populated, when available. This Number must differ from any of the other identifiers on the record and may not be derived from any of these in a manner that the original values could be determined.MC899Record Type1/1/2003Text2Value = MC
• ABSTRACT: HIPAA Reference ASC X12N/005010A1 DataUB-04 CMSTransaction Set/Loop/ElementForm1500Segment ID/Code Value/#Data Element NameLocator#Reference DesignatorMC001SubmitterN/AN/AN/AMC002PayorN/AN/AN/AMC003Insurance Type/Product CodeN/AN/A835/2100/CLP/06MC004Payor Claim Control NumberN/AN/A835/2100/CLP/07MC005Line CounterN/AN/A837/2400/LX/01MC005AVersion NumberN/AN/AN/AMC006Insured Group or Policy Number62 (A-C)11837/2000B/SBR/03MC007Subscriber Social Security NumberN/AN/A835/2100/NM1/MI/09MC008Plan Specific Contract Number60 (A-C)1a835/2100/NM1/MI/09MC009Member Suffix or Sequence NumberN/AN/AN/AMC010Member Identification CodeN/AN/A835/2100/NM1/34/09MC011Individual Relationship Code59 (A-C)6837/2000B/SBR/02, 837/2000C/PAT/01MC012Member Gender113837/2010BA/DMG/03, 837/2010CA/DMG/03MC013Member Date of Birth103837/2010BA/DMG/D8/02, 837/2010CA/DMG/D8/02MC014Member City Name9b5837/2010BA/N4/01, 837/2010CA/N4/01MC015Member State or Province9c5837/2010BA/N4/02, 837/2010CA/N4/02MC016Member ZIP Code9d5837/2010BA/N4/03, 837/2010CA/N4/03MC017Date Service ApprovedN/AN/A835/Header Financial Information/BPR/16MC018Admission Date 1218837/2300/DTP/435/03MC019Admission Hour13N/A837/2300/DTP/435/03MC020Priority (Type) of Admission or Visit14N/A837/2300/CL1/01MC021Point of Origin for Admission or Visit15N/A837/2300/CL1/02MC022Discharge Hour16N/A837/2300/DTP/096/03MC023Patient Discharge Status17N/A837/2300/CL1/03MC024Rendering Provider Number57N/A835/2100/REF/1A/02, 835/2100/REF/1B/02, 835/2100/REF/1C/02, 835/2100/REF/1D/02, 835/2100/REF/G2/02, 835/2100/NM1/BD/09, 835/2100/NM1/BS/09, 835/2100/NM1/MC/09, 835/2100/NM1/PC/09MC025Rendering Provider Tax ID Number525 (only if EIN)835/2100/NM1/FI/09MC026National Provider ID – Rendering Provider5624Jprofessional:837/2420A/NM1/XX/09; 837/2310B/NM1/XX/09;institutional:837/2010AA/NM1/XX/09MC027Rendering Provider Entity Type QualifierN/AN/Aprofessional:837/2420A/NM1/82/02; 837/2310B/NM1/82/02;institutional:837/2010AA/NM1/85/02MC028Rendering Provider First Name N/A31professional:837/2420A/NM1/82/04; 837/2310B/NM1/82/04;institutional:N/AMC029Rendering Provider Middle Name N/A31professional:837/2420A/NM1/82/05; 837/2310B/NM1/82/05;institutional:N/AMC030Rendering Provider Last Name or Organization Name 131professional:837/2420A/NM1/82/1/03; 837/2310B/NM1/82/1/03;institutional:837/2010AA/NM1/85/2/03MC031Rendering Provider SuffixN/A31professional:837/2420A/NM1/82/07; 837/2310B/NM1/82/07;institutional:N/AMC032Rendering Provider SpecialtyN/AN/Aprofessional:837/2420A/PRV/PXC/03;837/2310B/PRV/PXC/03;institutional:837/2000A/PRV/PXC/03MC033Placeholder N/A N/AN/AMC034 Placeholder N/A N/AN/AMC035Placeholder N/A N/A N/AMC036Type of Bill – Institutional4N/A837/2300/CLM/05-1MC037Place of Service - ProfessionalN/A24B837/2300/CLM/05-1MC038Claim StatusN/AN/A835/2100/CLP/02MC039PlaceholderN/AN/A N/AMC040Placeholder N/AN/A N/AMC041Placeholder N/A N/A N/AMC042Placeholder N/A N/A N/AMC043Placeholder N/A N/A N/AMC044Placeholder N/A N/A N/AMC045Placeholder N/AN/A N/AMC046Placeholder N/AN/A N/AMC047Placeholder N/AN/AN/AMC048Placeholder N/AN/A N/AMC049Placeholder N/AN/A N/AMC050Placeholder N/AN/A N/AMC051Placeholder N/AN/A N/AMC052Placeholder N/AN/A N/AMC053Placeholder N/AN/A N/AMC054Revenue Code42N/A835/2110/SVC/NU/01-2, 835/2110/SVC/04MC055Procedure Code4424D835/2110/SVC/HC/01-2, 835/2110/SVC/HP/01-2MC056Procedure Modifier - 14424D835/2110/SVC/HC/01-3MC057Procedure Modifier - 24424D835/2110/SVC/HC/01-4MC057AProcedure Modifier - 34424D835/2110/SVC/HC/01-5MC057BProcedure Modifier - 44424D835/2110/SVC/HC/01-6MC058Placeholder N/AN/A N/AMC059Claim Date – From6N/A837/2300/DTP/434/D8MC060Claim Date – Thru6N/A837/2300/DTP/434/D8MC061Quantity4624G835/2110/SVC/05MC062Charge Amount4724F835/2110/SVC/02MC063Paid AmountN/AN/A835/2110/SVC/03MC064PlaceholderN/AN/AN/AMC065Co-pay AmountN/AN/A835/2110/CAS/PR/3-03MC066Coinsurance AmountN/AN/A835/2110/CAS/PR/2-03MC067Deductible AmountN/AN/A835/2110/CAS/PR/1-03MC068Patient Account/Control Number3a26837/2300/CLM/01MC069Discharge Date618837/2300/DTP/434/03MC070PlaceholderN/AN/AN/AMC071PlaceholderN/AN/AN/AMC072PlaceholderN/AN/AN/AMC073PlaceholderN/AN/AN/AMC074PlaceholderN/AN/AN/AMC075Drug CodeN/AN/A837/2410/LIN/N4/03MC076Billing Provider Number5733b837/2010BB/REF/G2/02MC077National Provider ID – Billing Provider5633a837/2010AA/NM1/85/ /XX/09MC078Billing Provider Last Name133837/2010AA/NM1/85/ /03MC079Billing Provider Tax ID NumberNANA837/2010AA/REF/EI/02MC080Billing Provider Address Line 1133837/2010AA/N3/01MC081Billing Provider Address Line 2133837/2010AA/N3/02MC082Billing Provider City Name133837/2010AA/N4/01MC083Billing Provider State or Province133837/2010AA/N4/02MC084Billing Provider Zip Code133837/2010AA/N4/03MC085Service Facility Location Name132professional:837/2310C/NM1/77/2/03;institutional:837/2310E/NM1/77/2/03MC086National Provider ID – Service Facility5632aprofessional:837/2310C/NM1/77/2/XX/09;institutional:837/2310E/NM1/77/2/XX/09MC087Service Facility Location Address Line 1132professional:837/2310C/N3/01;institutional: 837/2310E/N3/01MC088Service Facility Location Address Line 2132professional:837/2310C/N3/02;institutional:837/2310E/N3/02MC089Service Facility Location City Name132professional:837/2310C/N4/01;institutional:837/2310E/N4/01MC090Service Facility Location Address State or Province132professional:837/2310C/N4/02;institutional:837/2310E/N4/02MC091Service Facility Location Address Zip Code132professional:837/2310C/N4/03;institutional:837/2310E/N4/03MC092Service Facility Number5732bprofessional:837/2310C/REF/G2/02;institutional:837/2310E /REF/G2/02MC093Service Facility Location Country Code(1)(32)professional:837/2310C/N4/04;institutional:837/2310E/N4/04MC094Billing Provider Country Code(1)(33)837/2010AA/N4/04MC101Subscriber Last Name58(A-C)4837/2010BA/NM1/ /03MC102Subscriber First Name58(A-C)4837/2010BA/NM1/ /04MC103Subscriber Middle NameN/A4837/2010BA/NM1/ /05MC104Member Last Name8b2837/2010CA/NM1/ /03, 837/2010BA/NM1/ /03MC105Member First Name8b2837/2010CA/NM1/ /04, 837/2010BA/NM1/ /04MC106Member Middle Name8b2837/2010CA/NM1/ /05, 837/2010BA/NM1/ /05MC107Attending Provider NumberN/AN/Aprofessional: N/Ainstitutional: 837/2310A/REF/G2/02MC108National Provider ID – Attending Provider76N/A837/2310A/NM1/71/1/XX/09MC109Attending Provider First Name76N/A837/2310A/NM1/71/1/04MC110Attending Provider Middle NameN/AN/A837/2310A/NM1/71/1/05MC111Attending Provider Last Name76N/A837/2310A/NM1/71/1/03MC112Attending Provider SuffixN/AN/A837/2310A/NM1/71/1/07MC113Attending Provider SpecialtyN/AN/A837/2310A/PRV/AT/PXC/03MC114Operating Provider NumberN/AN/Aprofessional: N/Ainstitutional:837/2310B/REF/G2/02; 837/2420A/REF/G2/02MC115 National Provider ID – Operating Provider77N/Aprofessional: N/Ainstitutional:837/2420A/NM1/72/1/XX/09; 837/2420A/NM1/72/1/XX/09MC116Operating Provider First Name77N/Aprofessional: N/Ainstitutional:837/2420A/NM1/72/1/04; 837/2420A/NM1/72/1/04MC117Operating Provider Middle NameN/AN/Aprofessional: N/Ainstitutional:837/2420A/NM1/72/1/05; 837/2420A/NM1/72/1/05MC118Operating Provider Last Name77N/Aprofessional: N/Ainstitutional:837/2420A/NM1/72/1/03; 837/2420A/NM1/72/1/03MC119Operating Provider SuffixN/AN/Aprofessional: N/Ainstitutional:837/2420A/NM1/72/1/07; 837/2420A/NM1/72/1/07MC120Referring Provider NumberN/AN/Aprofessional:837/2310A/REF/G2/02; 837/2420F/REF/G2/02institutional:837/2310F/REF/G2/02; 837/2420D/REF/G2/02MC121National Provider ID – Referring Provider78 or 7917bprofessional:837/2310A/NM1/DN/1/XX/09; 837/2420F/NM1/DN/1/XX/09institutional:837/2310F/NM1/DN/1/XX/09; 837/2420D/NM1/DN/1/XX/09MC122Referring Provider First Name78 or 7917professional:837/2310A/NM1/DN/1/04; 837/2420F/NM1/DN/1/04institutional:837/2310F/NM1/DN/1/04; 837/2420D/NM1/DN/1/04MC123Referring Provider Middle NameN/A17professional:837/2310A/NM1/DN/1/05; 837/2420F/NM1/DN/1/05institutional:837/2310F/NM1/DN/1/05; 837/2420D/NM1/DN/1/05MC124Referring Provider Last Name78 or 7917professional:837/2310A/NM1/DN/1/03; 837/2420F/NM1/DN/1/03institutional:837/2310F/NM1/DN/1/03; 837/2420D/NM1/DN/1/03MC125Referring Provider SuffixN/A17professional:837/2310A/NM1/DN/1/07; 837/2420F/NM1/DN/1/07institutional:837/2310F/NM1/DN/1/07; 837/2420D/NM1/DN/1/07MC200Principal Diagnosis67N/A837/2300/HI/ABK/01-2MC201Present On Admission Indicator67 (pos 8)N/A837/2300/HI/01-9MC202Admitting Diagnosis69N/A837/2300/HI/ABJ/01-2MC203Reason for Visit Diagnosis - 170AN/A837/2300/HI/APR/01-2MC204Reason for Visit Diagnosis - 270BN/A837/2300/HI/APR/02-2MC205Reason for Visit Diagnosis - 370CN/A837/2300/HI/APR/03-2MC206External Cause of Injury - 172AN/A837/2300/HI/ABN/01-2MC207Present On Admission Indicator - 172A (pos 8)N/A837/2300/HI/01-9MC208External Cause of Injury - 272BN/A837/2300/HI/ABN/02-2MC209Present On Admission Indicator - 272B (pos 8)N/A837/2300/HI/02-9MC210External Cause of Injury - 372CN/A837/2300/HI/ABN/03-2MC211Present On Admission Indicator - 372C (pos 8)N/A837/2300/HI/03-9MC212External Cause of Injury - 4N/AN/A837/2300/HI/ABN/04-2MC213Present On Admission Indicator - 4N/AN/A837/2300/HI/04-9MC214External Cause of Injury - 5N/AN/A837/2300/HI/ABN/05-2MC215Present On Admission Indicator - 5N/AN/A837/2300/HI/05-9MC216External Cause of Injury - 6N/AN/A837/2300/HI/ABN/06-2MC217Present On Admission Indicator - 6N/AN/A837/2300/HI/06-9MC218External Cause of Injury - 7N/AN/A837/2300/HI/ABN/07-2MC219Present On Admission Indicator - 7N/AN/A837/2300/HI/07-9MC220External Cause of Injury - 8N/AN/A837/2300/HI/ABN/08-2MC221Present On Admission Indicator - 8N/AN/A837/2300/HI/08-9MC222External Cause of Injury - 9N/AN/A837/2300/HI/ABN/09-2MC223Present On Admission Indicator - 9N/AN/A837/2300/HI/09-9MC224External Cause of Injury - 10N/AN/A837/2300/HI/ABN/10-2MC225Present On Admission Indicator - 10N/AN/A837/2300/HI/10-9MC226External Cause of Injury - 11N/AN/A837/2300/HI/ABN/11-2MC227Present On Admission Indicator - 11N/AN/A837/2300/HI/11-9MC228External Cause of Injury - 12N/AN/A837/2300/HI/ABN/12-2MC229Present On Admission Indicator - 12N/AN/A837/2300/HI/12-9MC230External Cause of Injury - 13N/AN/A837/2300/HI/ABN/01-2MC231Present On Admission Indicator - 13N/AN/A837/2300/HI/01-9MC232External Cause of Injury - 14N/AN/A837/2300/HI/ABN/02-2MC233Present On Admission Indicator - 14N/AN/A837/2300/HI/02-9MC234External Cause of Injury - 15N/AN/A837/2300/HI/ABN/03-2MC235Present On Admission Indicator - 15N/AN/A837/2300/HI/03-9MC236External Cause of Injury - 16N/AN/A837/2300/HI/ABN/04-2MC237Present On Admission Indicator - 16N/AN/A837/2300/HI/04-9MC238External Cause of Injury - 17N/AN/A837/2300/HI/ABN/05-2MC239Present On Admission Indicator - 17N/AN/A837/2300/HI/05-9MC240External Cause of Injury - 18N/AN/A837/2300/HI/ABN/06-2MC241Present On Admission Indicator - 18N/AN/A837/2300/HI/06-9MC242External Cause of Injury - 19N/AN/A837/2300/HI/ABN/07-2MC243Present On Admission Indicator - 19N/AN/A837/2300/HI/07-9MC244External Cause of Injury - 20N/AN/A837/2300/HI/ABN/08-2MC245Present On Admission Indicator - 20N/AN/A837/2300/HI/08-9MC246External Cause of Injury - 21N/AN/A837/2300/HI/ABN/09-2MC247Present On Admission Indicator - 21N/AN/A837/2300/HI/09-9MC248External Cause of Injury - 22N/AN/A837/2300/HI/ABN/10-2MC249Present On Admission Indicator - 22N/AN/A837/2300/HI/10-9MC250External Cause of Injury - 23N/AN/A837/2300/HI/ABN/11-2MC251Present On Admission Indicator - 23N/AN/A837/2300/HI/11-9MC252External Cause of Injury - 24N/AN/A837/2300/HI/ABN/12-2MC253Present On Admission Indicator - 24N/AN/A837/2300/HI/12-9MC254Other Diagnosis – 167A21A837/2300/HI/ABF/01-2MC255Present On Admission Indicator – 167A (pos 8)N/A837/2300/HI/01-9MC256Other Diagnosis – 267B21B837/2300/HI/ABF/02-2MC257Present On Admission Indicator – 267B (pos 8)N/A837/2300/HI/02-9MC258Other Diagnosis – 367C21C837/2300/HI/ABF/03-2MC259Present On Admission Indicator – 367C (pos 8)N/A837/2300/HI/03-9MC260Other Diagnosis – 467D21D837/2300/HI/ABF/04-2MC261Present On Admission Indicator – 467D (pos 8)N/A837/2300/HI/04-9MC262Other Diagnosis – 567E21E837/2300/HI/ABF/05-2MC263Present On Admission Indicator – 567E (pos 8)N/A837/2300/HI/05-9MC264Other Diagnosis – 667F21F837/2300/HI/ABF/06-2MC265Present On Admission Indicator – 667F (pos 8)N/A837/2300/HI/06-9MC266Other Diagnosis – 767G21G837/2300/HI/ABF/07-2MC267Present On Admission Indicator – 767G (pos 8)N/A837/2300/HI/07-9MC268Other Diagnosis – 867H21H837/2300/HI/ABF/08-2MC269Present On Admission Indicator – 867H (pos 8)N/A837/2300/HI/08-9MC270Other Diagnosis – 967I21I837/2300/HI/ABF/09-2MC271Present On Admission Indicator – 967I (pos 8)N/A837/2300/HI/09-9MC272Other Diagnosis – 1067J21J837/2300/HI/ABF/10-2MC273Present On Admission Indicator – 1067J (pos 8)N/A837/2300/HI/10-9MC274Other Diagnosis – 1167K21K837/2300/HI/ABF/11-2MC275Present On Admission Indicator – 1167K (pos 8)N/A837/2300/HI/11-9MC276Other Diagnosis – 1267L21L837/2300/HI/ABF/12-2MC277Present On Admission Indicator – 1267L (pos 8)N/A837/2300/HI/12-9MC278Other Diagnosis – 13N/AN/A837/2300/HI/ABF/01-2MC279Present On Admission Indicator – 13N/AN/A837/2300/HI/01-9MC280Other Diagnosis – 14N/AN/A837/2300/HI/ABF/02-2MC281Present On Admission Indicator – 14N/AN/A837/2300/HI/02-9MC282Other Diagnosis – 15N/AN/A837/2300/HI/ABF/03-2MC283Present On Admission Indicator – 15N/AN/A837/2300/HI/03-9MC284Other Diagnosis – 16N/AN/A837/2300/HI/ABF/04-2MC285Present On Admission Indicator – 16N/AN/A837/2300/HI/04-9MC286Other Diagnosis – 17N/AN/A837/2300/HI/ABF/05-2MC287Present On Admission Indicator – 17N/AN/A837/2300/HI/05-9MC288Other Diagnosis – 18N/AN/A837/2300/HI/ABF/06-2MC289Present On Admission Indicator – 18N/AN/A837/2300/HI/06-9MC290Other Diagnosis – 19N/AN/A837/2300/HI/ABF/07-2MC291Present On Admission Indicator – 19N/AN/A837/2300/HI/07-9MC292Other Diagnosis – 20N/AN/A837/2300/HI/ABF/08-2MC293Present On Admission Indicator – 20N/AN/A837/2300/HI/08-9MC294Other Diagnosis – 21N/AN/A837/2300/HI/ABF/09-2MC295Present On Admission Indicator – 21N/AN/A837/2300/HI/09-9MC296Other Diagnosis – 22N/AN/A837/2300/HI/ABF/10-2MC297Present On Admission Indicator – 22N/AN/A837/2300/HI/10-9MC298Other Diagnosis – 23N/AN/A837/2300/HI/ABF/11-2MC299Present On Admission Indicator – 23N/AN/A837/2300/HI/11-9MC300Other Diagnosis – 24N/AN/A837/2300/HI/ABF/12-2MC301Present On Admission Indicator – 24N/AN/A837/2300/HI/12-9MC302Principal Procedure Code74N/A837/2300/HI/BBR/01-2MC303Other Procedure Code - 174AN/A837/2300/HI/BBQ/01-2MC304Other Procedure Code - 274BN/A837/2300/HI/BBQ/02-2MC305Other Procedure Code - 374CN/A837/2300/HI/BBQ/03-2MC306Other Procedure Code - 474DN/A837/2300/HI/BBQ/04-2MC307Other Procedure Code - 574EN/A837/2300/HI/BBQ/05-2MC308Other Procedure Code - 6N/AN/A837/2300/HI/BBQ/06-2MC309Other Procedure Code - 7N/AN/A837/2300/HI/BBQ/07-2MC310Other Procedure Code - 8N/AN/A837/2300/HI/BBQ/08-2MC311Other Procedure Code - 9N/AN/A837/2300/HI/BBQ/09-2MC312Other Procedure Code - 10N/AN/A837/2300/HI/BBQ/10-2MC313Other Procedure Code - 11N/AN/A837/2300/HI/BBQ/11-2MC314Other Procedure Code - 12N/AN/A837/2300/HI/BBQ/12-2MC315Other Procedure Code - 13N/AN/A837/2300/HI/BBQ/01-2MC316Other Procedure Code - 14N/AN/A837/2300/HI/BBQ/02-2MC317Other Procedure Code - 15N/AN/A837/2300/HI/BBQ/03-2MC318Other Procedure Code - 16N/AN/A837/2300/HI/BBQ/04-2MC319Other Procedure Code - 17N/AN/A837/2300/HI/BBQ/05-2MC320Other Procedure Code - 18N/AN/A837/2300/HI/BBQ/06-2MC321Other Procedure Code - 19N/AN/A837/2300/HI/BBQ/07-2MC322Other Procedure Code - 20N/AN/A837/2300/HI/BBQ/08-2MC323Other Procedure Code - 21N/AN/A837/2300/HI/BBQ/09-2MC324Other Procedure Code - 22N/AN/A837/2300/HI/BBQ/10-2MC325Other Procedure Code - 23N/AN/A837/2300/HI/BBQ/11-2MC326Other Procedure Code - 24N/AN/A837/2300/HI/BBQ/12-2MC327Member Address Line 19a5837/2010BA/N3/01, 837/2010CA/N3/01MC328Member Address Line 29a5837/2010BA/N3/02, 837/2010CA/N3/02MC329Member Country Code9eN/A837/2010BA/N4/04, 837/2010CA/N4/04MC330In-Plan Network IndicatorN/AN/AN/AMC331Payment Arrangement Type IndicatorN/AN/AN/AMC332Member AgeN/AN/AN/AMC333Substance Use Disorder (SUD) IndicatorN/AN/AN/AMC334Service Line Date – FromFL4524A837/2400/DTP/472/D8MC335Service Line Date – ThruFL4524A837/2400/DTP/472/D8MC336Carrier Specific Unique Member (CSUM) IDN/AN/AN/AMC899Record TypeN/AN/AN/A
• ABSTRACT: Data Element#Data Element NameDateEffectiveTypeMaximum LengthDescription/Codes/SourcesPC001Submitter1/1/2003Text8MHDO-assigned identifier of payor submitting claimsdata. Do not leave blank.PC002Payor7/1/2012Text8MHDO-assigned code of the insurer/underwriter in thecase of premiums-based coverage, or of the administrator in the caseof self-funded coverage. Do not leave blank.PC003Insurance Type/Product Code1/1/2003Text2Code identifying the type of insurance policy within a specific insurance program. Refer to Appendix A16 Medicare Part CMD Medicare Part DSP Supplemental PolicyPC004Payor Claim Control Number1/1/2003Text35Must apply to the entire claim and be unique within the payor's system.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC005Line Counter4/1/2004Number4Line number for this serviceThe line counter begins with 1 and is incremented by 1 for eachadditional service line of a claim.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC006Insured Group or Policy Number1/1/2003Text30Group or policy number - not the number that uniquely identifies the SubscriberShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC007Subscriber Social Security Number 1/1/2003Text9Subscriber’s social security numberLeave blank if unavailable.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC008Plan Specific Contract Number1/1/2003Text80Plan-assigned contract numberLeave blank if contract number = subscriber’s social security number.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC009Member Suffix or Sequence Number1/1/2003Text20Uniquely numbers the member within the contractShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC010Member Identification Code1/1/2003Text50Member’s social security numberLeave blank if unavailableShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC011Individual Relationship Code1/1/2003Text2Member's relationship to insuredRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC012Member Gender1/1/2003Number1Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC013Member Date of Birth1/1/2003Text8CCYYMMDDShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC014Member City Name4/1/2004Text30The city name where the member lives.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC015Member State or Province4/1/2004Text2The state name where the member lives, as defined by the US Postal Service and Canada PostRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC016Member ZIP Code1/1/2003Text11The ZIP Code where the member lives- may include non-US codesDo not include dashRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC017Date Service Approved (AP Date)1/1/2003Text8CCYYMMDDThe value ‘CCYY0101’, where CCYY is the year in which the service was approved, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC018Pharmacy Number1/1/2003Text30Payor-assigned pharmacy numberNot required if PC021 is populated.PC019Pharmacy Tax ID Number1/1/2003Text10Federal taxpayer’s identification numberPC020Pharmacy Name1/1/2003Text100Name of pharmacyPC021National Provider ID – Pharmacy Provider 4/1/2004Text20National Provider ID for PharmacyThis data element pertains to the entity or individual directly providingthe service.Refer to Appendix APC022Pharmacy Location City4/1/2004Text30The city name where the pharmacy is located.Refer to Appendix APC023Pharmacy Location State4/1/2004Text2The state name where the pharmacy is located, as defined by the US Postal Service and Canada PostRefer to Appendix APC024Pharmacy ZIP Code1/1/2003Text11The ZIP Code where the pharmacy is located – may include non-US codesDo not include dash.Refer to Appendix APC024APharmacy Country Code1/1/2010Text30Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.PC025Claim Status1/1/2003Text2Refer to Appendix APC026Drug Code1/1/2003Text11NDC CodeRefer to Appendix APC027Drug Name1/1/2003Text80Text name of drugPC028New Prescription or Refill1/1/2003Text200 New prescription01-99 Number of refillPC029Generic Drug Indicator1/1/2003Text1N No, branded drugY Yes, generic drugPC030Dispense as Written Code1/1/2003Text1Refer to Appendix APC031Compound Drug Indicator 4/1/2004Text1N Non-compound drugU Non-specified drug compoundY Compound drugPC032Date Prescription Filled1/1/2003Text8CCYYMMDDThe value ‘CCYY0101’, where CCYY is the year in which the service was approved, shall be used when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC033Quantity Dispensed1/1/2003Number10Number of metric units of medication dispensed. Code decimal point.PC034Days’ Supply1/1/2003Number3Estimated number of days the prescription will lastPC035Charge Amount1/1/2003Number10Do not code decimal point. Two decimal places implied.PC036Paid Amount1/1/2003Number10Includes all health plan payments and excludes all member payments. Do not deduct POS rebate amount, if applicable. Do not include Pharmacy Benefits Manager Compensation.Do not code decimal point. Two decimal places implied.PC037Ingredient Cost/List Price1/1/2003Number10Cost of the drug dispensedDo not code decimal point. Two decimal places implied.PC038Postage Amount Claimed4/1/2004Number10Do not code decimal point. Two decimal places implied.PC039Dispensing Fee1/1/2003Number10Do not code decimal point. Two decimal places implied.PC040Co-pay Amount1/1/2003Number10The preset, fixed dollar amount for which the individual is responsible. Do not deduct POS rebate amount, if applicable.Do not code decimal point. Two decimal places implied.PC041Coinsurance Amount1/1/2003Number10The dollar amount an individual is responsible for – not the percentage. Do not deduct POS rebate amount, if applicable.Do not code decimal point. Two decimal places implied.PC042Deductible Amount1/1/2003Number10Do not deduct POS rebate amount, if applicable. Do not code decimal point. Two decimal places implied.PC043Patient Pay Amount1/1/2013Number10Amount that is calculated by the payor and returned to the pharmacy asthe total amount to be paid by the patient to the pharmacy. $0 isacceptable; if “data not available” leave blank.Do not include decimal point. Two decimal places implied.PC044Prescribing Physician First Name7/1/2006Text40Physician first nameOptional if PC047 is filled.PC045Prescribing Physician Middle Name7/1/2006Text25Physician middle name or initialOptional if PC047 is filled.PC046Prescribing Physician Last Name7/1/2006Text60Physician last name. Optional if PC047 is filled.PC047Prescribing Physician DEA7/1/2006Text20DEA for prescribing physicianPC048Prescribing Physician NPI10/1/2014Text20NPI for prescribing physicianRefer to Appendix APC101Subscriber Last Name1/1/2010Text60The subscriber last nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC102Subscriber First Name1/1/2010Text35The subscriber first nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC103Subscriber Middle Name1/1/2010Text25The subscriber middle name or initialShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC104Member Last Name1/1/2010Text60The member last nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC105Member First Name1/1/2010Text35The member first nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC106Member Middle Name1/1/2010Text25The member middle name or initialShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC107Member Address Line 12/1/2019Text55The street address where the member lives. Do not submit post office (P.O.) boxes. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC108Member Address Line 22/1/2019Text55The apartment, unit, building, or floor number, if applicable, where the member lives. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC109Member Country Code2/1/2019Text2Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data by setting the value of PC113 = ‘Y’.PC110In-Plan Network Indicator2/1/2021Text1Use this field to specify if services from the requested Pharmacy Provider were provided within the health plan network. Valid values are: N=No; Y=Yes. PC111Placeholder2/1/2025N/A0Leave blank. Payment Arrangement Type Indicator retiredPC112Member Age2/1/2025Text3Member’s calculated age as of the service date. Round to the nearest integer. For ages ≥ 90, indicate ‘90’.PC113Substance Use Disorder (SUD) Indicator2/1/2025Text1Indicates whether a record contains 42 CFR Part 2 SUD-related data or not. Valid values are:N = Record does not contain 42 CFR Part 2 SUD-related data. Send all available values of all requested fields.Y = Record contains 42 CFR Part 2 SUD-related data. The following fields shall be left blank: PC004-PC016; and PC101-PC109.PC114Total POS Rebate Amount2/1/2025Number10The total dollar amount of all reductions to amounts paid by the health plan or an individual member resulting from POS (point-of-sale) rebates. The total POS rebate amount should be reported in full and should not be deducted from either plan paid or member copay, deductible, or coinsurance amounts. Do not code decimal point. Two decimal places implied.PC115Member POS Rebate Amount2/1/2025Number10The dollar amount of all reductions to amounts paid by an individual member resulting from POS rebates. The member POS rebate amount should not be deducted from member copay, deductible, or coinsurance amounts. Do not code decimal point. Two decimal places implied.PC116PBM Compensation Amount2/1/2025Number10The value of payments made by the payor to its pharmacy benefits manager that is not paid to the pharmacy The pharmacy benefits manager compensation amount should not be included in the plan paid amount. PBM compensation does not include any compensation paid by a manufacturer, developer, or labeler for the performance of services.Do not code decimal point. Two decimal places implied.PC117Mail-Order Pharmacy Indicator2/1/2027Number1Use this field to report if the pharmacy was a mail-order pharmacy. Valid codes include: 1 = Yes, mail order pharmacy; 2 = No, not a mail order pharmacy; 3 = Unknown; 4 = Other; 5 = Not applicable.PC118Pharmacy Affiliation2/1/2027Number1Indicates whether the pharmacy where the prescription was filled is an affiliated pharmacy or a non-affiliated (independent) pharmacy.1 = Affiliated pharmacy2 = Non-affiliated or independent pharmacyPC899Record Type1/1/2003Text2PC
• ABSTRACT: DataElement #Data Element NameNational Council for PrescriptionDrug Programs Field #PC001Submitter879-N2PC002Payor569-J8PC003Insurance Type/Product CodeA90PC004Payor Claim Control Number993-A7PC005Line CounterA91PC006Insured Group or Policy Number246PC007Subscriber Social Security NumberA89PC008Plan Specific Contract Number302-C2PC009Member Suffix or Sequence Number303-C3PC010Member Identification Code332-CYPC011Individual Relationship Code247PC012Member Gender305-C5PC013Member Date of Birth304-C4PC014Member City Name728-SUPC015Member State or Province729-TAPC016Member ZIP Code730-TCPC017Date Service Approved (AP Date)578PC018Pharmacy Number201-B1PC019Pharmacy Tax ID NumberN/APC020Pharmacy Name833-5PPC021National Provider ID – Pharmacy Provider 201-B1PC022Pharmacy Location City728-SUPC023Pharmacy Location State729-TAPC024Pharmacy ZIP Code730-TCPC024APharmacy Country CodeA93-1TPC025Claim StatusA88PC026Drug Code407-D7PC027Drug Name397PC028New Prescription254DataElement #Data Element NameNational Council for PrescriptionDrug Programs Field #PC029Generic Drug Indicator425-DPPC030Dispense as Written Code408-D8PC031Compound Drug Indicator 406-D6PC032Date Prescription Filled401-D1PC033Quantity Dispensed442-E7PC034Days’ Supply405-D5PC035Charge Amount430-DUPC036Paid Amount281PC037Ingredient Cost/List Price506-F6PC038Postage Amount ClaimedN/APC039Dispensing Fee507-F7PC040Co-pay Amount518-FIPC041Coinsurance Amount572-4UPC042Deductible Amount517-FHPC043Patient Pay Amount505-F5PC044Prescribing Physician First Name717PC045Prescribing Physician Middle NameA92PC046Prescribing Physician Last Name716PC047Prescribing Physician DEA411-DBPC048Prescribing Physician NPI411-DBPC101Subscriber Last Name716PC102Subscriber First Name717PC103Subscriber Middle Name718PC104Member Last Name716PC105Member First Name717PC106Member Middle Name718PC107Member Address Line 1B08-7APC108Member Address Line 2B09-7BPC109Member Country CodeA43-1KPC110In-Plan Network IndicatorN/APC111PlaceholderN/ADataElement #Data Element NameNational Council for PrescriptionDrug Programs Field #PC112Member AgeN/APC113Substance Use Disorder (SUD) IndicatorN/APC114Total POS Rebate AmountN/APC115Member POS Rebate AmountN/APC116Pharmacy Benefits Manager Compensation AmountN/APC117Mail-Order Pharmacy IndicatorN/A (CDLPC062)PC118Pharmacy AffiliationN/APC899Record TypeA94
• ABSTRACT: Data ElementDateMaximum#Data Element NameEffectiveTypeLengthDescription/Codes/SourcesDC001Submitter1/1/2003Text8MHDO-assigned identifier of payor submittingclaims data. Do not leave blank.DC002Payor7/1/2012Text8MHDO-assigned code of the insurer/underwriter in the case of premiums-based coverage, or ofthe administrator in the case of self-funded coverage.Do not leave blank.DC003Insurance Type/Product Code1/1/2003Text2Code identifying the type of insurance policy within a specific insurance program. Refer to Appendix ADC004Payor Claim Control Number1/1/2003Text35Must apply to entire claim and be unique within the payor'ssystemDC005Line Counter4/1/2004Number4Line number for this serviceThe line counter begins with 1 and is incremented by 1 for each additional service line of a claim.DC006Insured Group or Policy Number1/1/2003Text30Group or policy number - not the number that uniquelyidentifies the subscriberDC007Subscriber Social Security Number1/1/2003Text9Subscriber’s social security numberLeave blank if unavailable.DC008Plan Specific Contract Number1/1/2003Text80Plan-assigned contract numberLeave blank if contract number = subscriber’s social security number.DC009Member Suffix or Sequence Number1/1/2003Text20Uniquely numbers the member within the contractDC010Member Identification Code1/1/2003Text50Member’s social security numberLeave blank if unavailable.DC011Individual Relationship Code1/1/2003Text2Member's relationship to insuredRefer to Appendix ADC012Member Gender1/1/2003Text1Refer to Appendix ADC013Member Date of Birth1/1/2003Text8CCYYMMDDDC014Member City Name4/1/2004Text30The city name where the member lives.Refer to Appendix ADC015Member State or Province4/1/2004Text2The state name where the member lives, as defined by the US Postal Service and Canada Post Refer to Appendix A DC016Member ZIP Code1/1/2003Text11The ZIP Code where the member lives- may include non-US codes Do not include dash.Refer to Appendix ADC017Date Service Approved (AP Date)1/1/2003Text8CCYYMMDDDC018Rendering Provider Number1/1/2003Text30Payor-assigned provider numberDC019Rendering Provider Tax ID Number1/1/2003Text10Federal taxpayer's identification numberDC020National Provider ID – Rendering Provider4/1/2004Text20National Provider IDThis data element pertains to the entity or individual directlyproviding the service.Refer to Appendix ADC021Rendering Provider Entity Type Qualifier4/1/2004Number1HIPAA provider taxonomy classifies provider groups (clinicians who bill as a group practice or under a corporate name, even if that group is composed of one provider) as a “person”, andthese shall be coded as a person. Refer to Appendix A1 – Person;2 – Non-Person EntityDC022Rendering Provider First Name1/1/2003Text40Individual first nameLeave blank if provider is a facility or organization.DC023Rendering Provider Middle Name1/1/2003Text25Individual middle name or initialLeave blank if provider is a facility or organization.DC024Rendering Provider Last Name or Organization Name1/1/2003Text60Full name of provider organization or last name of individualproviderDC025Rendering Provider Suffix1/1/2003Text10Suffix to individual nameLeave blank if provider is a facility or organization.The service provider suffix shall be used to capture thegeneration of the individual clinician (e.g., Jr., Sr., III), ifapplicable, rather than the clinician’s degree (e.g., MD, LCSW).DC026Rendering Provider Specialty1/1/2003Text10Refer to Appendix AIf defined by payor, then dictionary for specialty code valuesmust be supplied during testing.DC027Placeholder2/1/2016N/A0Leave blankService Provider City Name retired; refer to DC055 – Service Facility Location City NameDC028Placeholder2/1/2016N/A0Leave blankService Provider State or Province retired; refer to DC056 – Service Facility Location Address State or ProvinceDC029Placeholder2/1/2016N/A0Leave blankService Provider ZIP Code retired; refer to DC057 – Service Facility Location Address State or Province DC030Place of Service - Professional4/1/2004Text2Refer to Appendix ADC031Claim Status1/1/2003Text2Refer to Appendix ADC032CDT Code1/1/2003Text5Common Dental Terminology codeRefer to Appendix ADC033Procedure Modifier - 11/1/2003Text2Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure code DC034Procedure Modifier - 21/1/2003Text2Procedure modifier required when a modifier clarifies/improves the reporting accuracy of the associated procedure codeDC035Date of Service - From1/1/2003Text8First date of service for this service lineCCYYMMDDDC036Date of Service - Thru1/1/2003Text8Last date of service for this service lineCCYYMMDDDC037Charge Amount1/1/2003Number10Do not code decimal point. Two decimal places implied.DC038Paid Amount1/1/2003Number10Do not code decimal point. Two decimal places implied.DC039Co-pay Amount1/1/2003Number10The preset, fixed dollar amount for which the individualis responsibleDo not code decimal point. Two decimal places implied.DC040Coinsurance Amount1/1/2003Number10The dollar amount an individual is responsible for – not the percentageDo not code decimal point. Two decimal places implied.DC041Deductible Amount1/1/2003Number10Do not code decimal point. Two decimal places implied.DC042Billing Provider Number1/1/2010Text30Payor-assigned billing provider number. This number shouldbe the identifier used by the payor for internal identificationpurposes, and does not routinely change.DC043National Provider ID – Billing Provider1/1/2010Text20National Provider ID for billing providerRefer to Appendix ADC044Billing Provider Last Name or Organization Name1/1/2010Text60Full name of provider billing organization or last name ofindividual billing provider.DC045Billing Provider Tax ID2/1/2016Text10Federal taxpayer’s identification numberDC046Billing Provider Address Line 12/1/2016Text55The street address for the billing provider. Do not submit post office (P.O.) boxes.DC047Billing Provider Address Line 22/1/2016Text55The suite, unit, building, or floor number, if applicable, for the billing provider. DC048Billing Provider City Name2/1/2016Text30The city name of the billing providerRefer to Appendix ADC049Billing Provider State or Province2/1/2016Text2The state name for the billing provider, as defined by the US Postal Service and Canada PostRefer to Appendix ADC050Billing Provider Zip Code2/1/2016Text11The Zip Code of the billing provider – may include non-US codesDo not include dashRefer to Appendix ADC051Service Facility Location Name2/1/2016Text60Laboratory or service facility nameIf not available or not specified, do not populate.DC052National Provider ID – Service Facility2/1/2016Text20National Provider ID for laboratory or service facilityIf not available or not specified, do not populate. Refer to Appendix ADC053Service Facility Location Address Line 12/1/2016Text55The street address where the service was provided or where the specimen was collected. Do not submit post office (P.O.) boxes. Address information for laboratory or service facilityIf not available or not specified, do not populate.DC054Service Facility Location Address Line 22/1/2016Text55The suite, unit, building, or floor number, if applicable, where the service was provided or where the specimen was collected. DC055Service Facility Location City Name2/1/2016Text30The city name where the service was provided or where the specimen was collected. Refer to Appendix ADC056Service Facility Location State or Province2/1/2016Text2The state name where the service was provided or where the specimen was collected, as defined by the US Postal Service and Canada Post.Refer to Appendix ADC057Service Facility Location Zip Code2/1/2016Text11The Zip Code where the service was provided or where the specimen was collected – may include non-US codesDo not include dashRefer to Appendix ADC058Service Facility Number2/1/2016Text30Payor-assigned service facility number. This number should be the identifier used by the payor for internal identification purposes and does not routinely change.If not available or not specified, do not populate.DC101Subscriber Last Name1/1/2010Text60The subscriber last nameDC102Subscriber First Name1/1/2010Text35The subscriber first nameDC103Subscriber Middle Name1/1/2010Text25The subscriber middle name or initialDC104Member Last Name1/1/2010Text60The member last nameDC105Member First Name1/1/2010Text35The member first nameDC106Member Middle Name1/1/2010Text25The member middle name or initialDC107Member Address Line 12/1/2019Text55The street address where the member lives. Do not submit post office (P.O.) boxes.DC108Member Address Line 22/1/2019Text55The apartment, unit, building, or floor number, if applicable, where the member lives.DC109Member Country Code2/1/2019Text2Use ISO 3166-1 alpha-2 country codes. Refer to Appendix A.DC110In-Plan Network Indicator2/1/2021Text1A yes/no indicator that specifies if the Billing Provider (not the benefit) is within the health plan network. Valid codes are: N=No; Y=Yes. DC111Placeholder2/1/2025N/A0Leave blank. Payment Arrangement Type Indicator retiredDC112Oral Cavity 12/1/2025Text2Always report the area of the oral cavity when the procedure reported in field DC032 (CDT Code) refers to a quadrant orarch and the area of the oral cavity is not uniquely defined by the procedure’s nomenclature. Area of the oral cavity is designated by a two-digit code, selected from the following code list: 00=entire oral cavity; 01=maxillary arch; 02=mandibular arch; 10=upper right quadrant; 20=upper left quadrant; 30=lower left quadrant; 40=lower right quadrant.DC113Oral Cavity 22/1/2025Text2Always report the area of the oral cavity when the procedure reported in field DC032 (CDT Code) refers to a quadrant or arch and the area of the oral cavity is not uniquely defined by the procedure’s nomenclature. Area of the oral cavity is designated by a two-digit code, selected from the following code list:00=entire oral cavity; 01=maxillary arch; 02=mandibular arch; 10=upper right quadrant; 20=upper left quadrant; 30=lower left quadrant; 40=lower right quadrant.DC114Oral Cavity 32/1/2025Text2Always report the area of the oral cavity when the procedure reported in field DC032 (CDT Code) refers to a quadrant or arch and the area of the oral cavity is not uniquely defined by the procedure’s nomenclature. Area of the oral cavity is designated by a two-digit code, selected from the following code list:00=entire oral cavity; 01=maxillary arch; 02=mandibular arch; 10=upper right quadrant; 20=upper left quadrant; 30=lower left quadrant; 40=lower right quadrant.DC115Oral Cavity 42/1/2025Text2Always report the area of the oral cavity when the procedure reported in field DC032 (CDT Code) refers to a quadrant or arch and the area of the oral cavity is not uniquely defined by the procedure’s nomenclature.Area of the oral cavity is designated by a two-digit code, selected from the following code list:00=entire oral cavity; 01=maxillary arch; 02=mandibular arch; 10=upper right quadrant; 20=upper left quadrant; 30=lower left quadrant; 40=lower right quadrant.DC116Oral Cavity 52/1/2025Text2Always report the area of the oral cavity when the procedure reported in field DC032 (CDT Code) refers to a quadrant or arch and the area of the oral cavity is not uniquely defined by the procedure’s nomenclature.Area of the oral cavity is designated by a two-digit code, selected from the following code list:00=entire oral cavity; 01=maxillary arch; 02=mandibular arch; 10=upper right quadrant; 20=upper left quadrant; 30=lower left quadrant; 40=lower right quadrant.DC117Tooth Number or Letter (1)2/1/2025Text2Required when DC032 = D2000 thru D2999. Enter the appropriate tooth number or letter when the procedure directly involves a tooth or range of teeth. If not available, leave blank. Tooth Number codes are maintained by the American Dental Association. See Appendix ADC118Tooth – 1 Surface – 12/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). Required when Tooth Number/ Letter DC117 is populated.DC119Tooth – 1 Surface – 22/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC120Tooth – 1 Surface – 32/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC121Tooth – 1 Surface – 42/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC122Tooth – 1 Surface – 52/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC123Tooth Number or Letter (2)2/1/2025Text2Report the tooth identifier(s) when DC032 is within the given range if a second tooth is involved in the procedure. Required when DC032 = D2000 thru D2999. See Appendix A.DC124Tooth – 2 Surface – 12/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). Required when Tooth Number/ Letter DC123 is populated.DC125Tooth – 2 Surface – 22/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC126Tooth – 2 Surface – 32/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC127Tooth – 2 Surface – 42/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC128Tooth – 2 Surface – 52/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC129Tooth Number or Letter (3)2/1/2025Text2Report the tooth identifier(s) when DC032 is within the given range if a third tooth is involved in the procedure. Required when DC032 = D2000 thru D2999. See Appendix A.DC130Tooth – 3 Surface – 12/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). Required when Tooth Number/ Letter DC129 is populated.DC131Tooth – 3 Surface – 22/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC132Tooth – 3 Surface – 32/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC133Tooth – 3 Surface – 42/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC134Tooth – 3 Surface – 52/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC135Tooth Number or Letter (4)2/1/2025Text2Report the tooth identifier(s) when DC032 is within the given range if a fourth tooth is involved in the procedure. Required when DC032 = D2000 thru D2999. See Appendix A.DC136Tooth – 4 Surface – 12/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). Required when Tooth Number/ Letter DC135 is populated.DC137Tooth – 4 Surface – 22/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC138Tooth – 4 Surface – 32/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC139Tooth – 4 Surface – 42/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC140Tooth – 4 Surface – 52/1/2025Text1Report the tooth surface(s) on which this service was performed. Provides further detail on procedure(s). If not required to report an additional tooth surface, leave blank.DC899Record Type1/1/2003Text2DC
• ABSTRACT: HIPAA Reference ASC X12N/005010A1Data ADA J400Transaction Set/Loop/ElementSegment ID/Code Value/#Data Element NameForm LocatorReference DesignatorDC001SubmitterN/AN/ADC002PayorN/AN/ADC003Insurance Type/Product CodeN/A835/2100/CLP/06DC004Payor Claim Control NumberN/A835/2100/CLP/07DC005Line CounterN/A837/2400/LX/01DC006Insured Group or Policy Number16837/2000B/SBR/03DC007Subscriber Social Security Number15837/2010BA/REF/SY/02DC008Plan Specific Contract NumberN/A835/2100/NM1/MI/08DC009Member Suffix or Sequence NumberN/AN/ADC010Member Identification CodeN/A835/2100/NM1/34/09DC011Individual Relationship Code18837/2000B/SBR/02, 837/2000C/PAT/01DC012Member Gender22837/2010BA/DMG/03, 837/2010CA/DMG/03DC013Member Date of Birth21837/2010BA/DMG/D8/02, 837/2010CA/DMG/D8/02DC014Member City Name20837/2010BA/N4/01, 837/2010CA/N4/01DC015Member State or Province20837/2010BA/N4/02, 837/2010CA/N4/02DC016Member ZIP Code of Residence20837/2010BA/N4/03, 837/2010CA/N4/03DC017Date Service ApprovedN/A835/Header Financial Information/BPR/16DC018Rendering Provider Number58835/2100/REF/1A/02, 835/2100/REF/1B/02, 835/2100/REF/1C/02, 835/2100/REF/1D/02, 835/2100/REF/G2/02,835/2100/NM1/BD/09, 835/2100/NM1/BS/09, 835/2100/NM1/MC/09, 835/2100/NM1/PC/09DC019Rendering Provider Tax ID Number51835/2100/NM1/FI/09DC020National Provider ID – Rendering Provider54837/2310B/NM1/XX/09DC021Rendering Provider Entity Type QualifierN/A837/2310B/NM1/82/02DC022Rendering Provider First NameN/A837/2310B/NM1/82/04DC023Rendering Provider Middle NameN/A837/2310B/NM1/82/05DC024Rendering Provider Last Name or Organization NameN/A837/2310B/NM1/82/03DC025Rendering Provider SuffixN/A837/2310B/NM1/82/07DC026Rendering Provider Specialty56A837/2310B/PRV/PXC/03DC027PlaceholderN/AN/ADC028PlaceholderN/AN/ADC029PlaceholderN/AN/ADC030Place of Service - Professional38837/2300/CLM/05-1DC031Claim StatusN/A835/2100/CLP/02DC032CDT Code29837/2400/SV3/AD/01-2DC033Procedure Modifier - 1N/A837/2400/SV3/AD/01-3DC034Procedure Modifier - 2N/A837/2400/SV3/AD/01-4DC035Date of Service - From24837/2400/DTP/472/D8/03, 837/2300/DTP/472/D8/03DC036Date of Service - Thru24837/2400/DTP/472/D8/03, 837/2300/DTP/472/D8/03 DC037Charge Amount31837/2400/SV3/02DC038Paid AmountN/A835/2110/SVC/03DC039Co-pay AmountN/A835/2110/CAS/PR/3-03DC040Coinsurance AmountN/A835/2110/CAS/PR/2-03DC041Deductible AmountN/A835/2110/CAS/PR/1-03DC042Billing Provider Number52A837/2010BB/REF/G2/02DC043National Provider ID – Billing Provider49837/2010AA/NM1/XX/09DC044Billing Provider Last Name48837/2010AA/NM1/ /03DC045Billing Provider Tax ID51837/2010AA/REF/EI/02DC046Billing Provider Address Line 148837/2010AA/N3/01DC047Billing Provider Address Line 248837/2010AA/N3/02DC048Billing Provider City Name48837/2010AA/N4/01DC049Billing Provider State or Province48837/2010AA/N4/02DC050Billing Provider Zip Code48837/2010AA/N4/03DC051Service Facility Location NameN/A837/2310C/NM1/77/2/03DC052National Provider ID – Service FacilityN/A837/2310C/NM1/77/2/XX/09DC053Service Facility Location Address Line 156837/2310C/N3/01DC054Service Facility Location Address Line 256837/2310C/N3/02DC055Service Facility Location City Name56837/2310C/N4/01DC056Service Facility Location State or Province56837/2310C/N4/02DC057Service Facility Location Zip Code56837/2310C/N4/03DC058Service Facility NumberN/A837/2310C/REF/G2/02DC101Subscriber Last Name12837/2010BA/NM1/ /03DC102Subscriber First Name12837/2010BA/NM1/ /04DC103Subscriber Middle Name12837/2010BA/NM1/ /05DC104Member Last Name20837/2010BA/NM1/ /03, 837/2010CA/NM1/ /03DC105Member First Name20837/2010BA/NM1/ /04, 837/2010CA/NM1/ /04DC106Member Middle Name20837/2010BA/NM1/ /05, 837/2010CA/NM1/ /05DC107Member Address Line 120837/2010BA/N3/01, 837/2010CA/N3/01DC108Member Address Line 220837/2010BA/N3/02, 837/2010CA/N3/02DC109Member Country Code837/2010BA/N4/04, 837/2010CA/N4/04DC110In-Plan Network IndicatorN/AN/ADC111PlaceholderN/AN/ADC112Oral Cavity 125837/2400/SV304-01DC113Oral Cavity 225837/2400/SV304-02DC114Oral Cavity 325837/2400/SV304-03DC115Oral Cavity 425837/2400/SV304-04DC116Oral Cavity 525837/2400/SV304-05DC117Tooth Number or Letter (1)27837/2400/TOO/JP/02DC118Tooth – 1 Surface – 128837/2400/TOO03-01DC119Tooth – 1 Surface – 228837/2400/TOO03-02DC120Tooth – 1 Surface – 328837/2400/TOO03-03DC121Tooth – 1 Surface – 428837/2400/TOO03-04DC122Tooth – 1 Surface – 128837/2400/TOO03-05DC123Tooth Number or Letter (2)27837/2400/TOO/JP/02DC124Tooth – 2 Surface – 128837/2400/TOO03-01DC125Tooth – 2 Surface – 228837/2400/TOO03-02DC126Tooth – 2 Surface – 328837/2400/TOO03-03DC127Tooth – 2 Surface – 428837/2400/TOO03-04DC128Tooth – 2 Surface – 528837/2400/TOO03-05DC129Tooth Number or Letter (3)27837/2400/TOO/JP/02DC130Tooth – 3 Surface – 128837/2400/TOO03-01DC131Tooth – 3 Surface – 228837/2400/TOO03-02DC132Tooth – 3 Surface – 328837/2400/TOO03-03DC133Tooth – 3 Surface – 428837/2400/TOO03-04DC134Tooth – 3 Surface – 528837/2400/TOO03-04DC135Tooth Number or Letter (4)27837/2400/TOO/JP/02DC136Tooth – 4 Surface – 128837/2400/TOO03-01DC137Tooth – 4 Surface – 228837/2400/TOO03-02DC138Tooth – 4 Surface – 328837/2400/TOO03-03DC139Tooth – 4 Surface – 428837/2400/TOO03-04DC140Tooth – 4 Surface – 528837/2400/TOO03-05DC899Record TypeN/AN/A
• ABSTRACT: Data ElementDateMaximum#Data Element NameEffectiveTypeLengthDescription/Codes/SourcesCF001Submitter2/1/2025Text8MHDO-assigned identifier of payor submittingpayment data. Do not leave blank.CF002Payor2/1/2025Text8MHDO-assigned code of the insurer/underwriter in the case of premiums-based coverage, or ofthe administrator in the case of self-funded coverage.Do not leave blank.CF003Insurance Type/Product Code2/1/2025Text2Code identifying the type of insurance policy within a specific insurance program. Refer to Appendix ACF004Subscriber Social Security Number2/1/2025Text9Subscriber’s social security numberLeave blank if unavailable.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF005Member Identification Code2/1/2025Text10Member’s social security numberLeave blank if unavailable.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF006Plan Specific Contract Number2/1/2025Text80Plan-assigned contract numberLeave blank if contract number = subscriber’s social security number.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF007Member Suffix or Sequence Number2/1/2025Text20Uniquely numbers the member within the contract.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF008PlaceholderN/AN/A0Leave blank. Carrier Specific Unique Member (CSUM) ID retired.CF009Insured Group or Policy Number2/1/2025Text30Group or policy number – not the number that uniquelyIdentifies the subscriber.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF010Monetary Amount/Provider Adjustment Amount2/1/2025Number10This is the per member per month amount paid to theprovider. Excludes any withhold amounts. Do not code decimal point. Two decimal places implied.CF011Payment Subcategory2/1/2025Text2D1 = Primary care capitationD2 = Professional capitationD3 = Facility CapitationD4 = Behavioral health capitationD5 = Global capitationD6 = Payment to integrated, comprehensive payment and delivery systemsCF012Performance Period Year2/1/2025Number4Year of the performance period covered by the payment on this record.CF013Performance Period Month2/1/2025Text2Month of the performance period covered by the payment on This record.CF014Withhold Amount2/1/2025Number10The amount that is deducted from the payment to the physician group/physician that may or may not be returned depending on specific predetermined factors. This could be an amount being withheld until an agreed upon quality goal is met. This may be part of an ACO agreement.Do not code decimal point. Two decimal places implied.CF015Member Gender2/1/2025Text1Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF016Member Date of Birth2/1/2025Text8CCYYMMDDShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF017Rendering Provider Specialty2/1/2025Text10Refer to Appendix AIf defined by payor, then dictionary for specialty code values must be supplied during testing. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF018Rendering Provider Number2/1/2025Text30Payor-assigned rendering provider numberShall be left blank when the payor indicates the recordcontains 42 CFR Part 2 SUD-related data. CF019Rendering Provider Tax ID2/1/2025Text10Federal taxpayer’s identification numberShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF020National Provider ID – Rendering Provider2/1/2025Text20National Provider ID for Rendering ProviderThis data element pertains to the entity or individual directly providing the service.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF021Rendering Provider Last Name or Organization Name2/1/2025Text60Full name of provider organization or last name of individual ProviderShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF022Rendering Provider First Name2/1/2025Text40Individual first nameLeave blank if provider is a facility or organization.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF023Billing Provider Number2/1/2025Text30Payor-assigned billing provider number. This number should be the identifier used by the payor for internalidentification purposes, and does not routinely change.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF024Billing Provider Tax ID2/1/2025Text10Federal taxpayer's identification numberShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF025National Provider ID – Billing Provider2/1/2025Text20National Provider ID for billing providerRefer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF026Billing Provider Last Name or Organization Name2/1/2025Text60Full name of provider billing organization or last nameof individual billing provider.Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF027Member First Name2/1/2025Text35The member first nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF028Member Middle Name2/1/2025Text25The member middle name or initialShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF029Member Last Name2/1/2025Text60The member last nameShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF030Member Address Line 12/1/2025Text55The street address where the member lives. Do not submitpost office (P.O.) boxes. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF031Member Address Line 22/1/2025Text55The apartment, unit, building, or floor number, if applicable, where the member lives. Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF032Member City Name2/1/2025Text30The city name where the member lives.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data.CF033Member State or Province2/1/2025Text2The state name where the member lives, as defined by the US Postal Service and Canada Post.Refer to Appendix AShall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF034Member ZIP Code2/1/2025Text11The ZIP Code where the member lives - – may include non-US codesRefer to Appendix A Shall be left blank when the payor indicates the record contains 42 CFR Part 2 SUD-related data. CF035PlaceholderN/AN/A0Leave blank. Substance Use Disorder (SUD) Indicator retired.CF899Record Type2/1/2025Text2Value = CF
• ABSTRACT: HIPAA Reference ASC X12N/005010A1 DataUB-04 CMSTransaction Set/Loop/ElementForm1500Segment ID/Code Value/#Data Element NameLocator#Reference DesignatorCF001SubmitterN/AN/AN/ACF002PayorN/AN/AN/ACF003Insurance Type/Product CodeN/AN/A835/2100/CLP/06CF004Subscriber Social Security NumberN/AN/A835/2100/NM1/MI/09CF005Member Identification CodeN/AN/A835/2100/NM1/34/09CF006Plan Specific Contract Number60 (A-C)1a835/2100/NM1/MI/09CF007Member Suffix or Sequence NumberN/AN/AN/ACF008PlaceholderN/AN/AN/ACF009Insured Group or Policy Number62 (A-C)11837/2000B/SBR/03CF010Monetary Amount/Provider Adjustment AmountN/AN/A835/PLB/CT/04CF011Payment SubcategoryN/AN/AN/ACF012Performance Period YearN/AN/AN/ACF013Performance Period MonthN/AN/AN/ACF014Withhold AmountN/AN/A835/PLB/E3/04CF015Member Gender113837/2010BA/DMG/03, 837/2010CA/DMG/03CF016Member Date of Birth103837/2010BA/DMG/D8/02, 837/2010CA/DMG/D8/02CF017Rendering Provider SpecialtyN/AN/Aprofessional:837/2420A/PRV/PXC/03;837/2310B/PRV/PXC/03;institutional:837/2000A/PRV/PXC/03CF018Rendering Provider Number57N/A835/2100/REF/1A/02, 835/2100/REF/1B/02, 835/2100/REF/1C/02, 835/2100/REF/1D/02, 835/2100/REF/G2/02, 835/2100/NM1/BD/09, 835/2100/NM1/BS/09, 835/2100/NM1/MC/09, 835/2100/NM1/PC/09CF019Rendering Provider Tax ID525 (only if EIN)835/2100/NM1/FI/09CF020National Provider ID – Rendering Provider5624J835/PLB/01;professional:837/2420A/NM1/XX/09; 837/2310B/NM1/XX/09;institutional:837/2010AA/NM1/XX/09CF021Rendering Provider Last Name or Organization Name 131professional:837/2420A/NM1/82/1/03; 837/2310B/NM1/82/1/03;institutional:837/2010AA/NM1/85/2/03CF022Rendering Provider First Name N/A31professional:837/2420A/NM1/82/04; 837/2310B/NM1/82/04;institutional:N/ACF023Billing Provider Number5733b837/2010BB/REF/G2/02CF024Billing Provider Tax IDNANA837/2010AA/REF/EI/02CF025National Provider ID – Billing Provider5633a837/2010AA/NM1/85/ /XX/09CF026Billing Provider Last Name or Organization Name133837/2010AA/NM1/85/ /03CF027Member First Name8b2837/2010CA/NM1/ /04, 837/2010BA/NM1/ /04CF028Member Middle Name8b2837/2010CA/NM1/ /05, 837/2010BA/NM1/ /05CF029Member Last Name8b2837/2010CA/NM1/ /03, 837/2010BA/NM1/ /03CF030Member Address Line 19a5837/2010BA/N3/01, 837/2010CA/N3/01CF031Member Address Line 29a5837/2010BA/N3/02, 837/2010CA/N3/02CF032Member City Name9b5837/2010BA/N4/01, 837/2010CA/N4/01CF033Member State or Province9c5837/2010BA/N4/02, 837/2010CA/N4/02CF034Member ZIP Code9d5837/2010BA/N4/03, 837/2010CA/N4/03CF035PlaceholderN/AN/AN/ACF899Record TypeN/AN/AN/A

Chapter 247 Uniform Reporting System for Non-Claims-Based Payments and Other Supplemental Health Care Data Sets

Code Me. R. 90-590 Ch. 247 Uniform Reporting System for Non-Claims-Based Payments and Other Supplemental Health Care Data Sets {#sec-90-590-ch.-247 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 247}

SUMMARY: This Chapter contains the provisions for filing supplemental health care data sets, including non-claims-based payments; aggregated, claims-based payments; and prescription drug rebate data.

1. Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

1. Behavioral Health Care. "Behavioral health care (BH)" means services to address mental health and substance use conditions. 24-A MRSA §6903, sub-§1-A. For examples of BH providers see Appendix C.
2. Capitation Payments. “Capitation payments” means per capita payments to providers to provide services needed by designated patients over a defined period.
3. Care Management/Care Coordination/Population Health Payments. “Care management/care coordination/population health payments” means payments to fund a care manager, care coordinator, or other traditionally non-billing practice team members (e.g., practice coaches, patient educators, patient navigators, or nurse care managers) who help providers organize clinics to function better and help patients take charge of their health.
4. Carrier. "Carrier" means an insurance company licensed in accordance with 24-A M.R.S., including a health maintenance organization, a multiple employer welfare arrangement licensed pursuant to 24-A M.R.S., chapter 81, a preferred provider organization, a fraternal benefit society, or a nonprofit hospital or medical service organization or health plan licensed pursuant to 24 M.R.S. An employer exempted from the applicability of 24-A M.R.S., chapter 56-A under the federal Employee Retirement Income Security Act of 1974 , 29 United States Code , Sections 1001 to 1461 (1988) (“ERISA”) is not considered a carrier.
5. Designee. "Designee" means an entity with which the MHDO has entered into an agreement under which the entity performs data collection, validation and management functions for the MHDO and is strictly prohibited from releasing information obtained in such a capacity.
6. Electronic Health Records/Health Information Technology Infrastructure/Other Data Analytics Payments. “Electronic health records/health information technology infrastructure and other data analytics payments” means payments to help providers adopt and utilize health information technology, such as electronic medical records and health information exchanges, software that enables practices to analyze quality and/or costs outside of the electronic health records and/or the cost of a data analyst to support practices.
7. Global Budget Payments. “Global budget payments” means payments made to providers for either a comprehensive set of services for a designated patient population or a more narrowly defined set of services where certain services such as behavioral health or pharmacy are carved out. Services typically include primary care clinician services, specialty care physician services, inpatient hospital services, and outpatient hospital services, at a minimum. Hospitals and health systems are typically the provider types that would operate under a global budget, though this is not widespread.
8. Medicare Health Plan Sponsor. “Medicare health plan sponsor” means a health insurance carrier or other private company authorized by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services to administer Medicare Part C and Part D benefits under a health plan or prescription drug plan.
9. Medication Reconciliation. “Medication reconciliation” means payments to fund the cost of a pharmacist to help practices with medication reconciliation for poly-pharmacy patients.
10. MHDO. "MHDO" means the Maine Health Data Organization.
11. M.R.S. “M.R.S.” means Maine Revised Statutes .
12. Non-Claims Based Payments. “Non-claims-based” means payments that are for something other than a fee-for-service claim. These payments include but are not limited to Capitation Payments, Care Management/Care Coordination/Population Health Payments, Electronic Health Records/Health Information Technology Infrastructure/Other Data Analytics Payments, Global Budget Payments, Patient-centered Medical Home Payments, Pay-for-performance Payments, Pay-for-reporting Payments, Primary Care and Behavioral Health Integration Payments, Prospective Case Rate Payments, Prospective Episode-based Payments, Provider Salary Payments, Retrospective/Prospective Incentive Payments, Risk-based Payments, Shared-risk Recoupments, Shared-savings Distributions.
13. Patient-centered Medical Home Payments. “Patient-centered medical home payments” means Practice-level payments such as payments to Patient-Centered Medical Homes (PCMH), Health Homes for provision of comprehensive services; payments based upon PCMH recognition; or payments for participation in proprietary or other multi-payor medical -home or specialty care practice initiative.
14. Pay-for-performance Payments. “Pay-for-performance payments” means payments to reward providers for achieving a set target (absolute, relative, or improvement-based) for quality or efficiency metrics. Payments could include the return of a withhold if not attached to a claim payment.
15. Pay-for-reporting Payments. “Pay-for-reporting payments” means payments to providers for reporting on a set of quality or efficiency metrics, usually to build capacity for future pay-for-performance incentives.
16. Payor. "Payor" means a carrier, third-party payor, third-party administrator, Medicare health plan sponsor or Medicaid.
17. Pharmacy Benefits Manager. "Pharmacy benefits manager" means an entity that performs pharmacy benefits management as defined in 24-A M.R.S. §4347, sub-section 17.

Pharmacy Benefits Manager Compensation. “Pharmacy benefits manager compensation” means the difference between:

1. the value of payments made by a carrier to its pharmacy benefits manager; and
2. the value of payments made by the pharmacy benefits manager to dispensing pharmacies for the provision of prescription drugs or pharmacy services with regard to pharmacy benefits covered by the carrier.

Primary Care. "Primary care" means regular check-ups, wellness and general health care provided by a provider (see Appendix A) with whom a patient has initial contact for a health issue, not including an urgent care or emergency health issue, and by whom the patient may be referred to a specialist.

Primary Care and Behavioral Health Integration Payments: “Primary care and behavioral health integration payments” means payments that promote the appropriate integration of primary care and behavioral health care that are not reimbursable through claims (e.g., funding behavioral health services not traditionally covered with a discrete payment when provided in a primary care setting), such as: a) substance abuse or depression screening; b) performing assessment, referral, and warm hand-off to a behavioral health clinician; and/or c) supporting health behavior change, such as diet and exercise for managing prediabetes risk). This excludes payments for mental health or substance use counseling.

Prospective Case Rate Payments. “Prospective case rate payments” means payments received by providers in a given provider organization for a patient receiving a defined set of services for a specific period.

Prospective Episode-based Payments. “Prospective episode-based payments” means payments received by providers (which can span multiple provider organizations) for a patient receiving a defined set of services for a specific condition across a continuum of care by multiple providers, including providers, or care for a specific condition over a specific time.

Provider. "Provider" means a health care facility, health care practitioner, health product manufacturer or health product vendor but does not include a retail pharmacy.

Provider Salary Payments. “Provider salary payments” means payments for salaries of providers who provide care. This category may only be applicable for closed health systems.

Rebate. “Rebate” means a discount, chargeback, or other price concession that affects the price of a prescription drug product, regardless of whether conferred through regular aggregate payments, on a claim-by-claim basis at the point-of-sale, as part of retrospective financial reconciliations (including reconciliations that also reflect other contractual arrangements), or by any other method. “Rebate” does not mean a “bona fide service fee”, as such term is defined in Section 447.502 of Title 42 of the Code of Federal Regulations, published October 1, 2019.

Recoveries. “Recoveries” means payments received by a provider from a payor and then later recouped due to a review, audit, or investigation. Recoveries not reported in claims payments should be netted out of the total non-claims-based payments reported.

Retrospective/Prospective Incentive Payments. “Retrospective/prospective incentive payments” means payments to reward providers for achieving quality and/or efficiency goals. The two main subcategories of incentive payments are pay-for-performance and pay-for-reporting.

Risk-based Payments. “Risk-based payments” means payments received by providers (or recouped from providers) based on performance relative to a defined spending target. Risk-based payment methodologies can be applied to different types of budgets, including but not limited to episode of care and total cost of care. The two main subcategories of risk-based payments are shared savings and shared risk.

Shared-risk Recoupments. “Shared-risk recoupments” means payments payors recoup from providers if costs of services are above a predetermined, risk-adjusted target. Shared-risk arrangements are typically calculated on a total cost of care basis and typically exclude high-cost outliers. Recoupment should be netted out of the total non-claims-based payments reported.

Shared-savings Distributions. “Shared-savings distributions” means payments received by providers if costs of services are below a predetermined and risk-adjusted target. The amount of savings the provider can receive is often linked to performance on quality measures.

Substance Use Disorder (SUD). “SUD means a cluster of cognitive, behavioral, and physiological symptoms indicating that the individual continues using the substance despite significant substance-related problems such as impaired control, social impairment, risky use, and pharmacological tolerance and withdrawal, excluding tobacco/nicotine or caffeine use.

Supplemental Health Care Data Sets. “Supplemental health care data sets” means data files specific to payments for primary care, behavioral health, or other health care services. Supplemental health care data sets may include aggregated, non-claims-based payment information, or aggregated or non-aggregated, SUD claims-based payment information.

Third-party Administrator. “Third-party administrator” means any person licensed by the Maine Bureau of Insurance under 24-A M.R.S., chapter 18 who, on behalf of a plan sponsor, health care service plan, nonprofit hospital or medical service organization, health maintenance organization or insurer, receives or collects charges, contributions or premiums for, or adjusts or settles claims on residents of this State.

Third-party Payor. "Third-party payor" means a state agency that pays for health care services or a health insurer, carrier, including a carrier that provides only administrative services for plan sponsors, nonprofit hospital, medical services organization, or managed care organization licensed in the State.

2. Non-Claims-Based Payments and Other Supplemental Health Care Data Set Filing Description

General Requirements

Payors that: i) provide medical and pharmacy benefits to Maine residents; and ii) are not excluded from submitting health care claims data sets under 90-590 C.M.R. Chapter 243 Sec 2(A)(9)(a-b); and iii) reimburse providers by means other than a Fee-for-Service model shall submit to the MHDO or its designee the following complete data sets, if applicable.

Types and descriptions of data sets and supporting information files

1. Non-claims-based (NC) data sets consist of aggregated NC payment information regarding payments from payors to providers for the prior calendar year, which is defined as the performance period. NC files must contain the most recent information available at the time of file generation with a minimum of 3 months of run-out. Payors shall report NC payments for Medicare and non-Medicare Advantage (commercially insured) populations separately, combining plans as needed within those populations. It may be necessary to estimate portions of NC payments by population if amounts are paid to provider systems for plans that include both populations. Population counts encompass all eligible members, not just those associated with providers who received NC payments.
2. Aggregated, SUD claims-based (AC) data sets consist of AC payment information regarding payments from payors to providers. The performance period is retrospective and defined to include claims incurred during the prior calendar year (no limitation on paid date). AC files must contain the most recent information available at the time of file generation with a minimum of 3 months of run-out. Payors shall aggregate SUD claims payments by the product codes identified in Section 2(B), data element AC003 and report totals for each product code. The total members and total member months in the AC file include all members eligible for the product code in the performance period, not just those with SUD claims.
3. Prescription drug rebate (DR) data sets consist of aggregated prescription drug payment and rebate information. The performance period is retrospective and defined to include claims incurred during the prior calendar year with no limitation on paid date or rebate received date. DR files must contain the most recent information available at the time of file generation with a minimum of 3 months of run-out.
4. All data set types shall be accompanied by appropriate supporting information files (NS and AS). Samples are found at https://mhdo.maine.gov/portal. 1. NS the supporting information file for an NC payment data set must describe the methods used to reimburse behavioral health care providers. 2. AS, the supporting information file for an AC payment data set must detail the methods used to identify the substance use disorder claims, the specific code lists that are used for procedure codes, revenue codes and diagnosis codes, provider types and any other detail on the claim that is required to select the substance use disorder claim.

The payors specified in section (1) shall indicate the data set types that are applicable to all plans or certify that these are not applicable via the annual registration update at https://mhdo.maine.gov/portal by February 28^thof each year. It is the responsibility of the payor to amend the information, as needed, and to have an authorized user electronically sign to confirm/attest that the information provided is complete and accurate.

The payor(s) that administer(s) health insurance for State of Maine employees and the Maine Education Association Benefits Trust to pay for behavioral health care shall also submit separate data sets and supporting information for these two groups.

Each payor is responsible for the submission of all applicable data sets and supporting information made by any sub-contractor on its behalf.

Any self-funded employee benefit plan regulated by ERISA that submits claims data under 90-590 C.M.R. Chapter 243 Section 5 shall submit completed, applicable data sets for Maine residents and supporting information in accordance with the provisions of this rule. Any such data shall be subject to the same laws and regulations as other MHDO data.

Data Elements and Attributes by Header Record, Trailer Record and File Type

Header Record (for All File Types)

Data

Element

#

Data

Element

Name

Type

Maximum

Length

Definition/Description

HD001

Record Type

Text

2

HD

HD002

Submitter

Text

8

MHDO-assigned identifier of payor submitting data. Do not leave blank.

HD003

Payor

Text

8

MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage

HD004

Type of File

Text

2

AC Aggregated, SUD Claims-Based Payments

DR Prescription Drug Rebates

NC Non-Claims-Based Payments

HD005

Period Beginning Date

Text

6

CCYYMM

Beginning of paid period for payments

HD006

Period Ending Date

Text

6

CCYYMM

End of paid period

HD007

Record Count

Number

10

Total number of records submitted in this file

Exclude header record in count

HD008

Comments

Text

80

Submitter may use to document this submission by assigning a filename,

system source, etc.

Trailer Record (for All File Types)

Data

Element

#

Data

Element

Name

Type

Maximum

Length

Definition/Description

TR001

Record Type

Text

2

TR

TR002

Submitter

Text

8

MHDO-assigned identifier of payor submitting data. Do not leave blank.

TR003

Payor

Text

8

MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage

TR004

Type of File

Text

2

AC Aggregated, SUD Claims-Based Payments

DR Prescription Drug Rebates

NC Non-Claims-Based Payments

TR005

Period Beginning Date

Text

6

CCYYMM

Beginning of paid period for payments

TR006

Period Ending Date

Text

6

CCYYMM

End of paid period

TR007

Date Processed

Text

8

CCYYMMDD

Date file was created

File Type NC – Non-Claims-Based Payments

Data

Element

#

Data

Element

Name

Type

Maximum

Length

Definition/Description

NC001

Submitter

Text

8

MHDO-assigned identifier of payor submitting data. Do not leave blank.

NC002

Payor

Text

8

MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage

NC003

Placeholder

N/A

0

Leave blank.

NC004

Performance Period Start Date

Text

6

CCYYMM

Effective date of performance period. Performance period refers to payment date.

NC005

Performance Period End Date

Text

6

CCYYMM

End date of performance period. Performance period refers to payment date.

NC006

Total Number of Members

Number

10

The count of individual members with any eligibility in the performance period in the population identified in NC012.

No decimal places; round to nearest integer. Example: 12345

NC007

Total Member Months

Number

10

The total number of member months of eligibility in the performance period in the population identified in NC012.

No decimal places; round to nearest integer. Example: 12345

NC008

Total Dollars Non-Claims-Based Payments

Number

10

No decimal places; round to nearest integer. Example: 12345

NC009

Total Dollars Non-Claims-Based Payments (Primary Care Only Portion)

Number

10

No decimal places; round to nearest integer. Example: 12345 See definition of Primary Care above (1Q) for reporting Primary Care Only.

NC010

Total Dollars Non-Claims-Based Payments (BH/SUD Only Portion)

Number

10

No decimal places; round to nearest integer. Example: 12345 See definition of Behavioral Health/Substance Use Disorder above (1A) and Appendix C for examples for reporting BH/SUD Only.

NC011

Total Dollars Non-Claims-Based Payments (non-PC/non-BH/SUD)

Number

10

No decimal places; round to nearest integer. Example: 12345

NC012

Population

Text

2

Population to which the payments apply.

CI Commercially Insured (non-Medicare Advantage)

MA Medicare Advantage

MC MaineCare

NC013

Payor Notes

Text

320

Clarification about the population to which the payments apply, limitations in ability to report the measure, and/or explanation of why the data is not reported.

File Type AC – Aggregated SUD Claims-Based Payments

Data

Element

#

Data

Element

Name

Type

Maximum

Length

Definition/Description

AC001

Submitter

Text

8

MHDO-assigned identifier of payor submitting data. Do not leave blank.

AC002

Payor

Text

8

MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage

AC003

Insurance Type/Product Code

Text

2

Code identifying the type of insurance policy within a specific insurance program. Refer to Appendix B for standard code list. Coding should match MHDO Rule Chapter 243 Data Element ME003.

AC004

Performance Period Start Date

Text

6

CCYYMM

Effective date of performance period for reported Insurance Type/Product Code. Performance period refers to incurred date on redacted claims.

AC005

Performance Period End Date

Text

6

CCYYMM

End date of performance period for reported Insurance Type/Product Code. Performance period refers to incurred date on redacted claims.

AC006

Total Number of Members

Number

10

The count of individual members with any eligibility in the performance period in the product code identified in AC003.

No decimal places; round to nearest integer Example: 12345

AC007

Total Member Months

Number

10

The total number of member months of eligibility in the performance period in the product code identified in AC003.

No decimal places; round to nearest integer Example: 12345

AC008

Total Plan-Paid Dollars SUD Claims-Based Payments Not Reported to MHDO

Number

10

The amount on claims that were not submitted to the MHDO under MHDO Rule Chapter 243. No decimal places; round to nearest integer. Example: 12345

AC009

Total Plan-Paid Dollars on Claims/Claim Lines Sent to MHDO where SUD Codes Were Removed

Number

10

Indicates the amount paid on claims where SUD codes were removed before the claims were submitted to MHDO under MHDO Rule Chapter 243. No decimal places; round to nearest integer. Example: 12345

AC010

Coverage Type

Text

2

Type of coverage with which payments are associated.

01 Medical

02 Pharmacy

AC011

Payor Notes

Text

320

Clarification about the population to which the payments apply, limitations in ability to report the measure, and/or explanation of why the data is not reported.

AC012

Total Plan-Paid Dollars SUD Claims-Based Payments Related to Primary Care

Number

10

No decimal places; round to nearest integer. See Appendix A for PC provider definition.

Example: 12345

File Type DR – Prescription Drug Rebates

Data

Element

#

Data

Element

Name

Type

Maximum

Length

Definition/Description

DR001

Submitter

Text

8

MHDO-assigned identifier of payor submitting data. Do not leave blank.

DR002

Payor

Text

8

MHDO-assigned code of the insurer/ underwriter in the case of premiums-based coverage, or of the administrator in the case of self-funded coverage

DR003

Placeholder

N/A

0

Leave blank.

DR004A

Performance Period Start Date

Text

6

CCYYMM

Effective date of performance period. Performance period refers to date of fill.

DR004B

Performance Period End Date

Text

6

CCYYMM

Effective date of performance period. Performance period refers to date of fill.

DR005

Drug Code

Text

11

NDC Code

DR006

Drug Name

Text

80

Text name of drug

DR007

Generic Drug Indicator

Text

1

N No, branded drug

Y Yes, generic drug

DR008

Specialty Drug Indicator

Text

1

Drug defined as a specialty drug under the terms of a payor’s contract with its PBM.

N No

Y Yes

DR009

Total Count of Prescriptions Filled

Number

15

Total count of all prescriptions filled by members.

No decimal places; round to nearest integer Example: 12345

DR010

Total Quantity Dispensed

Number

15

Total Number of metric units of medication dispensed.

No decimal places; round to nearest integer Example: 12345

DR011

Total Pharmacy Expenditure Amount

Number

15

The sum of all incurred claim allowed payment amounts to pharmacies for the drug as defined by the payor’s prescription drug benefit. This amount shall include member cost sharing amounts. This shall also include all incurred claims for individuals included in the member population regardless of where the prescription drugs are dispensed (i.e., includes claims from in-state and out-of-state providers).

(Allowed amount should include direct drug costs and exclude non-claim costs. This amount will not reflect prescription drug rebates or pharmacy benefit manager compensation in any way).

No decimal places; round to nearest integer Example: 12345

DR012

Total Manufacturer Prescription Drug Rebates

Number

15

Total prescription drug rebates remitted by or on behalf of a pharmaceutical manufacturer, directly or indirectly, to a payor, or to a pharmacy benefits manager under contract with a payor. The total manufacturer prescription drug rebate amount should not be included in the total pharmacy expenditure amount.

No decimal places; round to nearest integer Example: 12345

DR013

Total Pharmacy Prescription Drug Rebates

Number

15

Total prescription drug rebates (including direct or indirect remuneration) remitted by or on behalf of a pharmacy, directly or indirectly, to a payor, or to a pharmacy benefits manager under contract with a payor. The total pharmacy prescription drug rebate amount should not be included in the total pharmacy expenditure amount.

No decimal places; round to nearest integer Example: 12345

DR014

Percent Rebate Retained by PBM

Number

5

The percent of total prescription drug rebates retained by a pharmacy benefits manager under contract with a payor.

Do not code decimal point. Two decimal places implied.

DR015

Total PBM Compensation Amount

Number

15

The total value of payments made by the payor to its pharmacy benefits manager that is not paid to the pharmacy. The pharmacy benefits manager compensation amount should not be included in the total pharmacy expenditure amount. PBM compensation does not include any compensation paid by a manufacturer, developer, or labeler for the performance of services.

No decimal places; round to nearest integer. Example: 12345

DR016

Payor Notes

Text

1000

Additional information related to the data submitted for this drug product.

File-Level Specifications

File Formats.

• • 1. Each data file submission shall be an encrypted (AES-256) ASCII file, variable field length, and asterisk delimited. It shall contain a header record and a trailer record. The header record is the first record of each separate file submission, and the trailer record is the last. Each record shall be terminated with a carriage return (ASCII 13), or a carriage return line feed (ASCII 13, ASCII 10). 2. Each supporting information file shall be a Microsoft Excel^®-compatible spreadsheet.

Filled Fields. All required fields shall be filled where applicable. Non-required text and number fields shall be left blank when unavailable.

Position. All text fields are to be left justified. All numeric fields are to be right justified.

Signs. Positive values are assumed and need not be indicated as such. Negative values must be indicated with a minus sign and must appear in the left-most position of all numeric fields.

3. Submission Requirements

File Organization. Each file shall be submitted to the MHDO or its designee separately.

Filing Method. Data files and supporting information must be submitted to the MHDO’s Payor Data Portal via secure FTP or secure web upload interface at https://mhdo.maine.gov/portal. E-mail attachments shall not be accepted.

Testing of Files. File testing shall be completed within one hundred and eighty days of the adoption of any changes to the data element content or format of the files described in Section 2(B) or at least sixty days prior to the initial submission of production files.

Rejection of Files. Failure to conform to the requirements subsections A, B, or C of this Section shall result in the rejection of the applicable data file(s). All rejected files must be resubmitted in the appropriate, corrected form to the MHDO or its designee within 15 days.

Filing Period. The annual filing for each submission shall cover the previous completed calendar year and shall be due by August 31.

Update/Replacement of Data. A payor may update or replace a data file submission up to one year after its original due date. Any updates or replacements after this period must be approved by the MHDO.

4. Data Validation; Notification; Response

Attestation. The MHDO or its designee shall require an authorized user for each payor to electronically sign an attestation that the payor is compliant with the requirements outlined in this rule. The annual attestation shall be due by August 31.

Notification. Within 15 days, the MHDO or its designee will complete the evaluation of any data file submissions and notify any payors whose data submissions for any filing period do not satisfy the requirements of Section 2(B). This notification will identify the specific file(s) and the data elements within the file(s) that do not satisfy the requirements.

Response. Each payor notified under subsection 4(B) shall respond in writing within 15 days of notification and make the necessary changes within 30 days to satisfy the requirements.

5. Public Access

Information collected, processed and/or analyzed under this rule shall be subject to release to the public or retained as confidential information in accordance with 22 M.R.S. Chapter 1683 and Code of Maine Rules 90-590, Chapter 120, unless prohibited by state or federal law.

6. Extensions or Waivers to Data Submission Requirements

If a payor, due to circumstances beyond its control, is temporarily unable to meet the terms and conditions of this rule, a written request must be made within 30 days of the filing deadline of August 31 to the Compliance Officer of the MHDO. The written request shall include: the specific requirement to be extended or waived; an explanation of the cause; the methodology proposed to eliminate the necessity of the extension or waiver; and the time frame required to come into compliance. If the Compliance Officer does not approve the requested extension or waiver, the payor may submit a written request appealing the decision to the MHDO Board. The appeal shall be heard by the MHDO Board at the next regularly scheduled meeting following receipt of the request at the MHDO.

7. Compliance

The failure to file, report, or correct non-claims-based payment data sets when required under the provisions of this rule may be considered a violation under 22 M.R.S. Sec. 8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures .

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 8703(1); 8704(1) & (4); and 24-A M.R.S, §6951
• EFFECTIVE DATE: December 12, 2021
• AMENDED: December 20, 2022
• AMENDED: December 17, 2023 – 2023-250
• AMENDED: May 31, 2026 – filing 2026-122
• AMENDED: Appendix A
• AMENDED: Primary Care Provider Type Taxonomy Codes and Description
• AMENDED: Primary Care261QF0400XFederally Qualified Health Center261QP2300XPrimary Care Clinic261QR1300XRural Health Clinic207Q00000XPhysician, Family Medicine207R00000XPhysician, General Internal Medicine175F00000XNaturopathic Medicine208000000XPhysician, Pediatrics208D00000XPhysician, General Practice363L00000XNurse Practitioner363LA2200XNurse Practitioner, Adult Health363LF0000XNurse Practitioner, Family363LP0200XNurse Practitioner, Pediatrics363LP2300XNurse Practitioner, Primary Care363A00000XPhysician Assistants363AM0700XPhysician Assistants, Medical207RG0300XPhysician, Geriatric Medicine207QG0300XFamily Practice Geriatrics207QA0505XFamily Practice Adult207QA0000XFamily Practice Adolescent175L00000XHomeopathic Medicine2083P0500XPhysician, Preventive Medicine364S00000XCertified Clinical Nurse Specialist163W00000XRegistered Nurse, Non-PractitionerOB/GYN Codes207V00000XPhysician, Obstetrics and Gynecology207VG0400XPhysician, Gynecology363LW0102XNurse Practitioner, Women’s Health363LX0001XNurse Practitioner, Obstetrics and Gynecology
• AMENDED: Appendix B
• AMENDED: Maine Health Data Organization
• AMENDED: Source Codes
• AMENDED: General Note: The MHDO leverages a wide range of source lists. Many of these lists come from standards development organizations, a few are homegrown (MHDO-created) lists, and a small number of lists combine list values across sources. In addition, where noted, we adopt the standard recommended by the APCD Common Data Layout (APCD-CDL™), which seeks to harmonize data collection efforts across states by advancing recommended lists for common data elements. In situations where the CDL references a field from the ASC X12, values from versions later than 005010 may be used even if the CDL specifies an earlier version.
• AMENDED: APCD Common Data Layout (APCD-CDL™)
• AMENDED: APCD Council, National Association of Health Data Organizations, The University of New Hampshire
• AMENDED: (MHDO Data Element: AC003)
• SOURCE: APCD Common Data Layout, Version 4.0.1
• AVAILABLE FROM: https://www.apcdcouncil.org/common-data-layout
• AVAILABLE FROM: APCD Council
• AVAILABLE FROM: 965 E Center St
• AVAILABLE FROM: Provo, UT 84606
• ABSTRACT: The purpose of the All-Payer Claims Databases (APCD) Common Data Layout (CDL) is to standardize member eligibility and healthcare payment data across states. As part of these efforts, the CDL also advances recommendations for validation source lists to further harmonize data collection. Where indicated above, MHDO data elements will utilize the CDL source list, which leverages codes from the ASC X12 and other sources.
• ABSTRACT: Accredited Standards Committee (ASC)ASC X12 Directories
• ABSTRACT: (MHDO Data Element: AC003 )
• SOURCE: Complete ASC X12 005010 Standard. NOTE: while the initial mapping in this document is based on the 005010 standard, list values from equivalent mappings from later versions of this standard may be used.
• AVAILABLE FROM: https://www.nex12.org/
• AVAILABLE FROM: Data Interchange Standards Association, Inc. (DISA)
• AVAILABLE FROM: 7600 Leesburg Pike Ste 430
• AVAILABLE FROM: Falls Church, VA 22043
• ABSTRACT: The complete standard includes design rules and guidelines, control standards, transaction set tables, data element dictionary, segment directory and code sources. The data element dictionary contains the format and descriptions of data ele­ments used to construct X12 segments. It also contains code lists associated with these data elements. The segment directory contains the format and definitions of the data segments used to construct X12 transaction sets.
• ABSTRACT: Several Definitions are adapted from the Milbank Memorial Fund Report, available from:
• ABSTRACT: https://www.milbank.org/wp-content/uploads/2021/04/Measuring_Non-Claims_7-1.pdf
• ABSTRACT: National Uniform Claim Committee
• ABSTRACT: Healthcare Provider Taxonomy Code Set
• ABSTRACT: (MHDO Data Element: NC010; Tables in Appendices A and C)
• SOURCE: https://taxonomy.nucc.org/
• ABSTRACT: The Healthcare Provider Taxonomy Code Set is a hierarchical code set that consists of codes, descriptions, and definitions. Healthcare Provider Taxonomy Codes are designed to categorize the type, classification, and/or specialization of health care providers. The Code Set consists of two sections: Individuals and Groups of Individuals, and Non-Individual.
• ABSTRACT: Appendix C
• ABSTRACT: Examples of Behavioral Health Provider Type Taxonomy Codes and Descriptions
• ABSTRACT: Taxonomy CodeTaxonomy DescriptionClassificationSpecialization101Y00000XBehavioral Health & Social Service ProvidersCounselor101YA0400XBehavioral Health & Social Service ProvidersAddiction (Substance Use Disorder)101YM0800XBehavioral Health & Social Service ProvidersMental Health101YP1600XBehavioral Health & Social Service ProvidersPastoral Behavioral Health & Social Service Providers101YP2500XBehavioral Health & Social Service ProvidersProfessional101YS0200XBehavioral Health & Social Service ProvidersBH & Social Service Providers, School103T00000XPsychologist, ClinicalAssistant Behavior Analyst103TA0400XPsychologist, ClinicalBehavior Technician103TA0700XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Adult Development & Aging103TB0200XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Cognitive & Behavioral103TC0700XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Clinical103TC1900XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Counseling103TF0000XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Family103TH0100Psychologist Health Service103TP0016XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Prescribing (Medical)103TP0814XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Psychoanalysis103TP2701XPsychologist, ClinicalBehavioral Health & Social Service Providers/Psychologist, Group Psychotherapy104100000XBehavioral Health & Social Service ProvidersSocial Worker1041C0700XBehavioral Health & Social Service ProvidersBehavioral Health & Social Service Providers1041S0200XBehavioral Health & Social Service ProvidersSchool106E00000XAssistant Behavior AnalystBehavior-analytic services106H00000XBehavioral Health & Social Service ProvidersMarriage and Family Therapist133VN1006XRegistered Dietitian or Nutrition ProfessionalDietary & Nutritional Service Providers/Dietician, Registered, Nutrition, Metabolic163WA0400XRegistered NurseAddiction (Substance Use Disorder)163WP0807XRegistered NursePsychiatric/Mental Health, Child & Adolescent163WP0808XRegistered NursePsychiatric/Mental Health163WP0809XRegistered NursePsychiatric/Mental Health, Adult172V00000XCommunity Health WorkerPatient Navigator, Health Educator, or Promoter175T00000XPeer SpecialistPeer Specialist207PP0204XEmergency MedicinePediatric Emergency Medicine207QA0401XPhysician/Addiction MedicineAllopathic & Osteopathic Physicians/Family Medicine, Addiction Medicine2083A0300XPreventive MedicineAddiction Medicine 2084A0401XPhysician/Addiction MedicineAllopathic & Osteopathic Physicians/Psychiatry & Neurology, Addiction Medicine2084F0202XPhysician/NeuropsychiatryAllopathic & Osteopathic Physicians/ Psychiatry & Neurology, Forensic Psychiatry2084P0015XPhysician/NeuropsychiatryAllopathic & Osteopathic Physicians/ Psychiatry & Neurology, Psychosomatic Medicine2084P0800XPhysician/PsychiatryAllopathic & Osteopathic Physicians/Psychiatry2084P0802XPhysician/NeuropsychiatryAllopathic & Osteopathic Physicians/ Psychiatry & Neurology, Addiction Psychiatry2084P0804XPhysician/NeuropsychiatryAllopathic & Osteopathic Physicians/ Psychiatry & Neurology, Child & Adolescent Psychiatry2084P0805XPhysician/NeuropsychiatryAllopathic & Osteopathic Physicians/ Psychiatry & Neurology, Geriatric Psychiatry221700000XArt TherapistTrauma, Oncology, Addiction, Autism, or Expressive Arts 222Q00000XDevelopmental TherapistDevelopmental Therapist225500000XSpecialist/TechnologistRespiratory, Developmental, Rehabilitative and Restorative Specialist225600000XDance TherapistDance Therapist225700000XMassage TherapistChronic Pain251K00000XPublic Health or WelfareSocial & Behavioral Sciences251S00000XAgenciesCommunity/Behavioral Health251V00000XVoluntary Health or Charitable AgencyAgencies/Voluntary or Charitable261QC1500XClinic/CenterCommunity Health261QM0801XCommunity Mental Health CenterAmbulatory Health Care Facilities/Clinic/Center, Mental Health261QM0850XAmbulatory Health Care FacilitiesAdult Mental Health261QM0855XAmbulatory Health Care FacilitiesAdolescent And Children Mental Health Care Facilities261QM2800XClinic/CenterMethadone261QR0405XClinic/CenterRehabilitation, Substance Use Disorder273R00000XPsychiatric UnitAddiction, Forensic, Neuropsychiatry276400000XHospital UnitsRehabilitation, Substance Use Disorder Unit283Q00000XHospital-Psychiatric (PPS excluded)Hospitals/Psychiatric Hospital3104A0625XAssisted Living FacilityAssisted Living, Mental Illness310500000XNursing & Custodial Care FacilitiesIntermediate Care Facility, Mental Illness311Z00000XCustodial Care FacilityCustodial Care Facility320600000XResidential Treatment FacilitiesResidential Treatment Facility, Mental Retardation And/Or Developmental Disabilities320800000XResidential Treatment FacilitiesCommunity Based Mental Illness322D00000XResidential Treatment FacilitiesResidential Treatment Facility, Emotionally Disturbed Children323P00000XResidential Treatment FacilitiesPsychiatric Residential Treatment Facility324500000XResidential Treatment FacilitiesSubstance Abuse Rehabilitation Facility3245S0500XResidential Treatment FacilitiesSubstance Abuse Treatment, Children363LP0808XNurse PractitionerPhysician Assistants & Advanced Practice Nursing Providers/Nurse Practitioner, Psychiatric/Mental Health364S00000XCertified Clinical Nurse SpecialistPhysician Assistants & Advanced Practice NursingProviders/Clinical Nurse Specialist364SP0807XCertified Clinical Nurse SpecialistPhysician Assistants & Advanced Practice Nursing Providers/Clinical Nurse Specialist, Psychiatric/Mental Health, Child & Adolescent364SP0808XCertified Clinical Nurse SpecialistPhysician Assistants & Advanced Practice NursingProviders/Clinical Nurse Specialist, Psychiatric/Mental Health364SC1501XClinical Nurse Specialist Community Health/Public Health364SF0001XClinical Nurse SpecialistFamily Health364SP0809XCertified Clinical Nurse SpecialistPhysician Assistants & Advanced Practice Nursing Providers/Clinical Nurse Specialist, Psychiatric/Mental Health, Adult405300000XPrevention ProfessionalPrevention Professional

Chapter 270 Uniform Reporting System for Quality Data Sets

Code Me. R. 90-590 Ch. 270 Uniform Reporting System for Quality Data Sets {#sec-90-590-ch.-270 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 270}

SUMMARY: This Chapter defines health care quality data sets and the provisions for filing the data sets by health care providers to the Maine Health Data Organization.

The provisions include:

Identification of the organizations required to report;

Establishment of requirements for the content, form, medium, and time for filing health care quality metrics data;

Establishment of standards for the data reported; and

Compliance provisions.

Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

A. Clostridium difficile. In addition to its other definitions established in medical literature, the term “Clostridium difficile” shall mean a spore-forming, gram-positive anaerobic bacillus that is one of the causes of infection of the large bowel. Clostridium difficile associated infection ranges from mild antibiotic associated diarrhea to severe life-threatening inflammation of the colon.

B. Central line catheter-associated blood stream infection. A serious infection that enters the bloodstream due to a special type of catheter used to access a major vein close to the heart. For reporting purposes, hospitals are bound by or subject to the definition of “central line catheter-associated blood stream infection” as specified in the current version of the CDC NHSN Patient Safety Component Manual.

C. CMS. “CMS” means the Centers for Medicare & Medicaid Services.

Direct Identifiers. “Direct Identifiers” are personal information as outlined in Chapter 125, such as name, social security number, and date of birth, that uniquely identifies an individual or that can be combined with other readily available information to uniquely identify an individual. A MHDO assigned replacement number or code (used to create anonymous data indices or linkage) is not a direct identifier.

E. Executive Director. “Executive Director” means the Executive Director of the MHDO or his/her successors.

F. External validation. “External validation” means an audit process by an external agency to assure the accuracy and quality of healthcare associated infection data submitted to the NHSN and that the data meets the NHSN’s pre-determined specifications.

G. Health care facility. “Health care facility” means any hospital, mental health facility, State institution, ambulatory surgical facility, nursing home, residential care facility, rest home, sanatorium, convalescent home, federally qualified health center, or rural health clinic, as defined by 22 M.R.S.A. Chapter 1683 §8702(4), renal dialysis facility as defined by 22 M.R.S.A. Chapter 412 §2041(8), or intermediate care facility for persons with intellectual disabilities as defined by 22 M.R.S.A. Chapter 405 §1812-K.

H. Hospital. "Hospital" has the same meaning as in 22 M.R.S.A. §328(14). ‘Hospital’ includes but is not limited to, acute care hospitals, Critical Access Hospitals, and rehabilitation hospitals.

I. IHI. “IHI” means the Institute for Healthcare Improvement.

J. Measure Steward. The identified responsible entity having a process to maintain and update the measure on a schedule that is commensurate with the rate of clinical innovation.

K. ME CDC. “ME CDC” means the Maine Department of Health and Human Services, Maine Center for Disease Control and Prevention.

L. Methicillin-resistant Staphylococcus Aureus (MRSA). “Methicillin-resistant Staphylococcus Aureus" are bacteria that can cause infections and are resistant to one or more classes of antibiotics.

M. MHDO. "MHDO" means the Maine Health Data Organization or its designee.

N. MQF. “MQF” means the Maine Quality Forum as defined in Title 24-A, Chapter 87, §6951.

O. M.R.S.A. “M.R.S.A.” means Maine Revised Statutes Annotated.

P. National Healthcare Safety Network. “National Healthcare Safety Network” (NHSN) means the US CDC’s secure internet-based data collection system managed by the Division of Healthcare Quality Promotion.

Q. NQF. “NQF” means the National Quality Forum.

R. Nursing Facility. “Nursing Facility” means a facility as defined in 22 MRS §1812-A.

S. Surgical Site Infection (SSI). An infection occurring after surgery in the same part of the patient’s body where the surgery was performed. For reporting purposes, hospitals are bound by or subject to the definition of “surgical site infection” as specified by the current version of the CDC NHSN Patient Safety Component Manual.

T. US CDC. “US CDC” means the United States Department of Health and Human Services, Centers for Disease Control and Prevention.

Healthcare Associated Infection Quality Data Set Filing Description

For all measures in this section, data submitted to the US CDC’s NHSN shall be in accordance with NHSN specifications. In addition, a subset of NHSN’s non-required fields for each measure are required by the MHDO, if the data is available at the time of reporting beginning July 1, 2024. (See table in Section 10)

For all patients identified as eligible cases in the specific denominator and numerator categories (minus exclusions) specified by NHSN, each hospital or their agent shall report data to the US CDC’s NHSN for the following healthcare associated infection (HAI) quality metrics in accordance with NHSN specifications:

HAI-1 Central line catheter-associated blood stream infection rate for adult and pediatric patients in intensive care units, medical units, surgical units, medical/surgical units, and mixed acuity units (Measure steward – NHSN).

HAI-2 Central line catheter-associated blood stream infection rate for high-risk nursery patients (Measure steward – NHSN).

HAI-3 through HAI-5 have been purposefully deleted.

HAI-6 Catheter-associated urinary tract infection rates for adult and pediatric patients in intensive care units, medical units, surgical units, medical/surgical units, mixed acuity units and rehabilitation units beginning January 1, 2020. (Measure steward – NHSN).

B. For all patients identified as eligible cases in the specific denominator and numerator categories specified by NHSN, each hospital, or their agent, shall submit to the US CDC’s National Healthcare Safety Network (NHSN), data for the following healthcare associated infection (HAI) quality metrics in accordance with NHSN specifications, beginning with all qualifying surgical procedures performed on or after January 1, 2020:

HAI-7 Surgical Site Infection rate for patients undergoing inpatient knee prosthesis (arthroplasty of knee) surgical procedures (KPRO) (Measure steward – NHSN); and

HAI-8 Surgical Site Infection rate for patients undergoing inpatient hip prosthesis (arthroplasty of hip) surgical procedures (HPRO) (Measure steward – NHSN).

C. Each hospital shall submit to the US CDC’s National Healthcare Safety Network (NHSN) MRSA blood specimen Lab ID Event data, for all facility-wide inpatients (FacWideIN) in accordance with NHSN specifications and this rule. (Measure steward - NHSN).

D. Each hospital shall submit to the US CDC’s NHSN data for Clostridium difficile Lab ID Events for all facility-wide inpatients (FacWideIN) in accordance with NHSN specifications. (Measure steward - NHSN).

E. Each nursing facility shall submit to the US CDC’s National Healthcare Safety Network quarterly submission of data, separated by month, for Clostridium difficile Lab ID Events for all facility-wide residents (FacWideIN) in accordance with NHSN specifications beginning July 1, 2020. (Measure steward - NHSN).

Each nursing facility shall submit to the US CDC’s National Healthcare Safety Network a quarterly submission of data, separated by month, for Urinary Tract Infections (UTIs) for all locations within facility scope of service in accordance with NHSN specifications beginning July 1, 2024. (Measure steward – NHSN).

Each hospital shall submit to the US CDC’s NHSN data a quarterly submission of data, separated by month, for Antimicrobial Use and Resistance (AUR) for all inpatient, emergency department, and 24-hour observation locations in accordance with NHSN specifications beginning July 1, 2024. (Measure steward – NHSN).

H. The Maine CDC shall have access to any healthcare associated infection measure data submitted under state mandate directly to MHDO in lieu of NHSN, and the Maine CDC shall be authorized to use this data for data validation, public health surveillance and performance improvement purposes.

I. In lieu of reporting data directly to MHDO, each health care facility shall authorize Maine CDC to have access to the NHSN for facility-specific reports of data, including all patient identifiers, submitted for any measure under a state or federal mandate, and shall authorize the Maine CDC to use this data for data validation, public health surveillance and performance improvement purposes. Such data accessed and used by Maine CDC is not considered MHDO data but is protected by 22 M.R.S.A. §42(5) to the extent it is individually identifiable.

J. Each health care facility shall authorize the MHDO to have access to the NHSN for facility-specific reports of data, including all patient identifiers, submitted for any measure under a state or federal mandate. For the purpose of public reporting, all patient identifiers will be protected by MHDO and remain confidential.

K. The MQF and Maine CDC shall develop and implement an external validation process to assure the accuracy of healthcare associated infection data submitted to the NHSN. Each hospital selected to participate in a State external validation study shall cooperate with the State’s third-party external validation contractor and provide any hospital medical records or data required to complete the study.

L. Any hospital selected for a federal validation study is exempt from state-level validation for that year and measure(s) with the understanding that the hospital must submit a copy of the federal validation report summary to the MQF within 14 days of their receipt of the final federal report. The MQF is authorized to use information from the federal validation report summary for the purpose of public reporting.

Nursing-Sensitive Patient-Centered Health Care Quality Data Set Filing Description.

American Nurses Association (ANA) measures (NSPC-2 & NSPC-3): Each hospital or their agent shall report data to the MHDO for NSPC-2 and NSPC-3 as defined by NDNQI, National Database for Nursing Quality Indicators, Guidelines for Data Collection on the American Nurses Association’s National Quality Forum Endorsed Measures, May 2010 or as updated by the ANA.

The Joint Commission measures (NSPC-1): Each hospital or their agent shall report data to the MHDO for NSPC-1 as currently defined by the Joint Commission, Implementation Guide for the NQF Endorsed Nursing Sensitive Care Measure Set.

For each nursing-sensitive patient-centered (NSPC) health care outcome measure, the NSPC metrics are:

NSPC – 1 Percentage of inpatients who have a hospital-acquired Stage 1 or greater pressure ulcer (Measure steward – The Joint Commission);

NSPC – 2 Number of patient falls per patient days (Measure steward: ANA); and

NSPC – 3 Number of patient falls with injuries per patient days (Measure steward- ANA)

Submission Requirements.

A. File submission. With the exception of data submitted via NHSN, each hospital and nursing facility or their agent shall file all applicable data sets by using the current version of the electronic forms provided by the MHDO at its website at <mhdo.maine.gov/quality_data.htm>. Data files must be submitted to the MHDO Hospital Data Portal via the secure web upload interface. E-mail attachments shall not be accepted. File naming conventions are specified in the Portal User Manual.

B. Filing Periods. Data generated in accordance with the provisions of Sections 2 and 3 shall be submitted no later than the date of the 15th of the 5th month following the end of each calendar quarter in which the service occurred. The filing periods are as follows:

1^st Quarter January, February, March August 15th

2nd Quarter April, May, June November 15th

3rd Quarter July, August, September February 15^th

4^th Quarter October, November, December May 15^th

Standards for Data; Notification; Response

Standards. The MHDO or its designee shall evaluate each file submission in accordance with the following standards:

1. When more than one licensed health care facility is operated by the reporting organization, the information required by this Chapter must be reported for each health care facility separately. When a provider of health care operates in more than one location, the MHDO may require that information be reported separately for each location.

2. Coding values indicating “data not available”, “data unknown”, or the equivalent will not be accepted. However, those health care facilities that do not have relevant patient populations for any section of metrics may submit a letter to the MHDO stating there are no appropriate data available and therefore they will not be submitting data for that section of metrics. This will be an annual requirement for those health care facilities not submitting data.

Notification. Upon completion of this evaluation, the MHDO will notify each health care facility whose data submissions do not satisfy the standards for any filing period within 90 days of the quarterly submission deadline. This notification will identify the specific file and the data elements within them that do not satisfy the standards.

Resubmission. Each health care facility notified under subsection 5.B. will resubmit the data within 30 days of the notification by making the necessary changes to satisfy the standards.

Replacement of Data Files. No health care facility may amend its data submission more than one year after the end of the quarter in which the discharge or service occurred unless it can be established by the health care facility that exceptional circumstances occurred. Any resubmission of data after the elapse of the one year period must be approved by the MHDO Board.

Public Access

Information collected, processed and/or analyzed under this rule shall be subject to release to the public or retained as confidential information in accordance with 22 M.R.S.A. §8707 (or §8714 when effective) and Code of Maine Rules 90-590, Chapter 120: Release of Information to the Public, unless prohibited by state or federal law.

Waivers to Data Submission Requirements

If a health care facility due to circumstances beyond its control is temporarily unable to meet the terms and conditions of this Chapter, a written request must be made to the Executive Director of the MHDO as soon as it is practicable after the health care facility has determined that an extension is required. The written request shall include: the specific requirement to be waived; an explanation of the cause; the methodology proposed to eliminate the necessity of the waiver; and the time frame required to come into compliance. The Executive Director shall present the request to the MHDO Board at its next regularly scheduled meeting where the request shall be approved or denied.

Compliance

The failure to file, report, or correct quality data in accordance with the provisions of this Chapter may be considered a violation under 22 M.R.S.A. §8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures .

In the event that a measure steward announces a modification to a measure required under Chapter 270, health care facilities must continue to collect data based on specifications of the existing version of the measure up until the date that the measure steward requires reporting based on the modified version.

Summary Tables of Reporting Requirements by Facility Unit Type

Healthcare Associated Infection Measures

Measures

Hospitals

Nursing Facilities

Adult and Pediatric Units

Neonatal NICU

ICU

Medical

Surgical

Medical/ Surgical

Mixed Acuity

Rehab

HAI-1 CLABSI

√

√

√

√

√

HAI-2 CLABSI

√

HAI-6 CAUTI

√

√

√

√

√

√

HAI-7 KPRO SSI

Applies to all KPRO surgical patients

HAI-8 HPRO SSI

Applies to all HPRO surgical patients

MRSA

Facility-wide inpatients (FacWideIN)

C. difficile.

Facility-wide inpatients (FacWideIN), excluding any nursery or NICU

√

UTI

All locations within facility scope of service, which include Hospice, Dementia, Psychiatric, Rehab, General Nursing, Ventilator Dependent, and Bariatric.

√

AUR

All inpatient, emergency department, and 24-hour observation locations

Nursing Sensitive Indicator Measures

All three Nursing Sensitive Indicators apply to the following list of units:

Critical Access Hospitals

• All units

Adult and pediatric hospital units

• Critical care
• Step-down
• Medical
• Surgical
• Medical/Surgical
• Mixed Acuity

Rehabilitation units

• Adult

Summary Table of the Subset of NHSN Fields Required Under this Rule by Measure and Facility

Social Security #

Patient/Resident Name (Last, First, Middle)

Ethnicity

Race

Hospital Measures

HAI -1 CLABSI

√

√

√

√

HAI-2 CLABSI

√

√

√

√

HAI -6 CAUTI

√

√

√

√

HAI-7

√

√

√

√

HAI-8

√

√

√

√

MRSA

√

√

√

√

CDI

√

√

√

√

Nursing Facilities Measures

CDI

√

UTI

√

Note: NHSN already requires fields for Nursing Facilities that include SSN#, Ethnicity and Race

History

• STATUTORY AUTHORITY: 22 MRS §§ 8704 sub-§4, §8708-A, §8712, §8761, 24-A MRS §6951(2), (3)
• STATUTORY AUTHORITY: EFFECTIVE DATE (filing 2005-279, major substantive):
• STATUTORY AUTHORITY: August 6, 2005 – Sections 1, 2, 5-10
• STATUTORY AUTHORITY: October 1, 2005 – Sections 3, 4
• STATUTORY AUTHORITY: AMENDED (filing 2006-210, major substantive):
• STATUTORY AUTHORITY: May 24, 2006 – Sections 1, 2, 4-10
• STATUTORY AUTHORITY: January 1, 2007 – Section 3
• STATUTORY AUTHORITY: AMENDED (filing 2007-325, major substantive):
• STATUTORY AUTHORITY: September 8, 2007 - Sections 1-5, 7-11
• STATUTORY AUTHORITY: January 1, 2008 - Section 6
• STATUTORY AUTHORITY: AMENDED (filing 2008-228, major substantive):
• STATUTORY AUTHORITY: June 22, 2008 – Sections 1-6, 8-12
• STATUTORY AUTHORITY: January 1, 2009 – Section 7
• AMENDED: November 5, 2009 – filing 2009-581 (EMERGENCY, major substantive)
• AMENDED: July 2, 2010 – filing 2010-217, major substantive
• AMENDED: May 23, 2012 – filing 2012-106, major substantive
• AMENDED: August 17, 2013 – filing 2013-176, major substantive
• AMENDED: June 1, 2016 – filing 2016-072, major substantive
• AMENDED: (filing 2019-081, major substantive):
• AMENDED: June 22, 2019 – Sections 1-2(A) (HAI 1-5), 2(C)-2(D), 2(F)-9
• AMENDED: January 1, 2020 – Sections 2(A) (HAI 6), 2(B)
• AMENDED: July 1, 2020 – Section 2(E)
• AMENDED: May 23, 2024 – filing 2024-098

Chapter 300 Uniform Reporting System for Hospital Financial Data

Code Me. R. 90-590 Ch. 300 Uniform Reporting System for Financial Data from Parent Entities, Health Care Facilities, and Health Care Provider Entities {#sec-90-590-ch.-300 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 300}

SUMMARY: This Chapter contains the provisions for: the identification of those entities required to file financial data; data content, format, medium; submission schedule; reporting standards and compliance.

Definitions.

Affiliate of or affiliated with. "Affiliate of or affiliated with" refers to a person, organization or entity who directly or indirectly controls or is controlled by, or is under common control with, the person specified.

Audited financial statement. "Audited financial statement" means the fiscal report issued annually by a parent entity or hospital that has received an independent audit of its financial statements by an independent public accountant in accordance with generally accepted accounting principles.

Consolidated Functions. “Consolidated functions” mean those functions which represent the sum total of the parent entity and/or hospital and all of its subsidiaries when presented in accordance with generally accepted accounting principles.

Employed. “Employed” means the health care practitioner is on the entity’s payroll system.

Generally accepted accounting principles. "Generally accepted accounting principles" means accounting principles and financial statement presentation using standards adopted by the Financial Accounting Standards Board in a format approved by the American Institute of Certified Public Accountants.

Health care facility."Health care facility" means a public or private, proprietary or not-for-profit entity or institution providing health services as defined in 22 M.R.S.A., §8702 (4). The health care facilities required to file information under this rule are the following:

1. an ambulatory surgical facility licensed under 22 M.R.S.A., chapter 405, §1812-E,

2. an urgent care facility licensed under 22 M.R.S.A., chapter 405, §1812-M,

3. a health care provider entity which provide health care services as prescribed by or performed under the general direction of a health care practitioner and that employes at least 50 health care practitioners,

4. a hospital licensed under 22 M.R.S.A., chapter 405, §1811,

5. a federally qualified health center or rural health clinic certified by the Division of Licensing and Certification with the Department of Health and Human Services or a community behavioral health clinic (CCBHC) certified by the Office of MaineCare Services within the Department of Health and Human Services.

G. Health care practitioner. “Health care practitioner” means physicians and physician associates licensed under 32 MRS Chapters 36 and 48, and 153 as well as advanced practice nurses licensed and approved under 32 MRS Chapter 31.

H. MHDO. "MHDO" means the Maine Health Data Organization.

I. M.R.S.A. "M.R.S.A." means Maine Revised Statutes Annotated.

J. NPI. “NPI” means the National Provider Identification Number.

K. Net Patient Service Revenue (NPSR). "Net patient service revenue (NPSR)” means gross charges for patient services less contractual adjustments, charity care and bad debt costs as provided in the standardized accounting templates submitted in accordance with the requirements of this chapter.

L. Non-affiliated or unaffiliated. “Non-affiliated or unaffiliated” means that the entity or individual operates independently without financial ties to a Maine hospital or a Maine healthcare system.

M. Operating expenses. "Operating expenses" mean costs incurred in the day-to-day operations of the parent entity or hospital.

N. Parent entity. A "parent entity" means the organization or corporation that has control, directly or indirectly through majority ownership, affiliation, contract or membership of a hospital and/or any affiliated health care facility.

O. Payor. "Payor" means any person, entity, facility, insurer or government agency that reimburses a hospital for all or part of a patient's incurred charges.

P. Revenue. "Revenue" means the standard charges, or the regular rates established by the hospital for services rendered to its patients. Charges should be uniformly applied to all patients for similar services irrespective of the payor.

Q. Subsidiary. "Subsidiary" means a corporation, partnership, association, or similar organization in which the parent entity owns or controls either directly or indirectly the majority of the activities, management, assets, and/or stock.

R. Unconsolidated functions. “Unconsolidated functions” mean those functions undertaken by the parent and hospital entity, including all departments and units regardless of geographic location, which are under the direct control and management of the parent entity or hospital when presented in accordance with generally accepted accounting principles.

Format and content of financial data to be filed with the MHDO.

Every parent entity and hospital shall file as applicable with the MHDO the following:

An electronic copy of its annual audited consolidated financial statements that include a balance sheet, income statement, statement of changes in net assets, and cash flow statements with accompanying supplemental information in PDF format and submitted via the MHDO Financial Data Portal.

An electronic copy of its consolidating schedules for all entities to include a consolidating balance sheet, income statement, changes of net assets, and cash flow statements in PDF format and submitted via the MHDO Financial Data Portal.

An electronic copy of its individual hospital(s) audited financial statements with additional accompanying supplemental information including details/schedule of revenue by inpatient and outpatient charges; and the deductions from revenue in PDF format and submitted via the MHDO Financial Data Portal.

An electronic copy of its individual hospital(s) Federal IRS Form 990 in PDF format and submitted via the MHDO Financial Data Portal.

Every parent entity and hospital shall annually complete a MHDO Standardized Accounting Template (Appendix A), for its unconsolidated and consolidated functions. The data contained in the electronic standardized accounting template shall be derived from the parent entity or hospital's most recently completed fiscal year. The templates shall be available for completion via an online form on the MHDO's web site Hospital Financial Data Portal (https://mhdo.maine.gov/hospital_portal). Access to the template portal shall be restricted via a user name and password assigned to the person designated for certification under Section 5.

Each non-affiliated Ambulatory Surgical Facility (ASF) shall submit an electronic copy of its audited financial statements with additional accompanying supplemental information including details/schedules in pdf format and submitted via the MHDO Financial Data Portal.

Each non-affiliated Certified Community Behavioral Health Clinic (CCBHC) shall submit an electronic copy of their most recently submitted annual CCBHC Cost Report as required under “Protecting Access to Medicare Act of 2014 (PAMA, P.L. 113-93), Section 223 and described in the Substance Abuse and Mental Health Services Administration (SAMHSA) CCBHC Certification Criteria.” The report must be uploaded to the MHDO Financial Data Portal following the filing schedule as outlined in section 3 of this rule.

Each non-affiliated Federally Qualified Health Center (FQHC) shall submit an electronic copy of their annual CMS-224-14 cost report as required by the Centers for Medicare and Medicaid Program. The report must be uploaded to the MHDO Financial Data Portal following the filing schedule as outlined in section 3 of this rule.

Each non-affiliated Health Care Provider Entity shall submit an electronic copy of its audited financial statements with additional accompanying supplemental information including details/schedules in pdf format and submitted via the MHDO Financial Data Portal.

Each non-affiliated Rural Health Center (RHC) shall submit an electronic copy of their annual CMS-222-17 cost report as required by the Centers for Medicare and Medicaid Program. The report must be uploaded to the MHDO Financial Data Portal following the filing schedule as outlined in section 3 of this rule.

Each non-affiliated Urgent Care Facility (UCF) shall submit an electronic copy of its audited financial statements with additional accompanying supplemental information including details/schedules in pdf format and submitted via the MHDO Financial Data Portal.

Format and content of payor mix data to be filed with the MHDO.

Health Care Facilities listed in section 1.F regardless of affiliation, shall complete a template based on their fiscal year schedules of the entity’s payor and NPSR mix as follows. The template will be available for completion in the MHDO Financial Data Portal on the MHDO website.

Primary Payor Mix

Total Patients Covered under each category

NPSR by Mix

Commercial

✓

✓

Dual Eligibles (Medicare & MaineCare

✓

✓

MaineCare (State Medicaid Program

✓

✓

Medicare Advantage

✓

✓

Original Medicare

✓

✓

Self Pay/Private Pay

✓

✓

Other Government Payors

✓

✓

Workers Comp

✓

✓

Unknown

✓

✓

Bad Debt

✓

✓

Charity Care/Free Care

✓

Amount of costs attributed to charity care

TOTALS

Schedule for filing.

Parent Entities and Health Care Facilities, required to file data with the MHDO in accordance with 22 M.R.S.A. §8709, shall file with the MHDO all required financial and supplemental data annually, not later than six months after its most recent fiscal year end in accordance with the following schedule:

Fiscal Year End Date

Filing Deadline

January 31

July 31

February 28

August 31

March 31

September 30

April 30

October 31

May 31

November 30

June 30

December 31

July 31

January 31

August 31

February 28

September 30

March 31

October 31

April 30

November 30

May 31

December 31

June 30

Standards for data submission; notification; response.

Upon submission, each parent entity or hospital’s electronic file(s) of the MHDO Standardized Accounting Template(s) shall be reviewed by the MHDO for comparison to the submitted audited financial statements and other supplemental documents provided.

1.Upon completion of the review, the MHDO will promptly notify each parent entity or hospital if discrepancies are found in the submitted data. The notification will specify the data fields and lines in the template which appear to be in conflict with financial data submitted.

Upon receipt of the notification, each parent entity or hospital shall respond to the MHDO within 30 days with corrected data or with information clarifying the discrepancies.

MHDO will promptly notify each health care facility if discrepancies are found in the submitted data. Upon receipt of the notification, the health care facility shall respond to the MHDO within 30 days with corrected data or with information clarifying the discrepancies.

Certification.

The Chief Financial Officer or appropriate responsible official of the Parent Entity and Health Care Facility shall attest to the correctness and accuracy of all data and documents submitted to the MHDO as required by this chapter.

Public access.

Information collected, processed and/or analyzed under this rule shall be released to the public in accordance with 22 M.R.S.A. §8707, sub-§§1 and 4 and Code of Maine Rules 90-590, Chapter 120: Release of Data to the Public. The MHDO may initiate studies and/or analyses of financial data submitted and merge it with clinical data as defined in 22 M.R.S.A. §8708.

Compliance.

The failure to file financial data in accordance with the provisions of this Chapter may be considered a violation under 22 M.R.S.A. §8705-A.

History

• STATUTORY AUTHORITY: 22 M.R.S.A., Sections 8704 (4) and 8709
• EFFECTIVE DATE: May 17, 2000
• AMENDED: February 28, 2006
• AMENDED: October 3, 2010
• AMENDED: October 31, 2012
• AMENDED: March 16, 2020
• AMENDED: August 16, 2026 – filing 2026-185
• AMENDED: Appendix A
• AMENDED: MHDO Standardized Accounting Template
• AMENDED: LineField NameDefinition1Responsible IndividualName of individual completing the template.2Parent or Hospital NameName of parent entity or hospital.3Parent or Hospital LocationCity/town location of parent entity or hospital.4YearCurrent fiscal year end date of parent entity or hospital.5BALANCE SHEET, UNRESTRICTED FUNDSHeading.6CURRENT ASSETSHeading. Short-term resources (i.e., those expected to be converted to cash or used within one year).7Cash and InvestmentCash, cash equivalents (money market funds) and short-term investments (marketable securities) listed under current assets and not restricted by external (donor or grantor) or internal (board or trustee) designations.8Current Assets Whose Use Is LimitedCash, cash equivalents (money market funds) and short-term investments (marketable securities) limited internally without clear distinction between being board-designated or trustee-held, listed under current assets.9RECEIVABLESHeading.10Net Patient Accounts ReceivablePatient accounts receivable, reported net of provisions for bad debt/uncollectible accounts, discounts for charity care, and contractual allowances.11Due from AffiliatesCurrent portion of receivables due from affiliated entities. Includes also notes receivable from/loans or advances to affiliated entities. Amounts greater than or equal to +/- $100,000, individually or in aggregate must be identified by entity name and amount.12Third Party Settlements ReceivableCurrent portion of final settlements from third-party payors due to the hospital.13Other Accounts ReceivableIncludes other receivables not related to patient services, third party receivables or amounts due from affiliates. Includes amounts due from restricted funds. Does not include grants or pledges receivable if their purpose is restricted by external stipulations (by donors or grantors).14InventorySupplies used to run the organization and provide services.15Other Current AssetsAll other current assets not listed above, including prepaid expenses and deposits.16Total Current AssetsSum of all short-term resources (lines 7 through 15).17NON-CURRENT ASSETSHeading. Long-term resources (i.e., those not expected to be converted to cash or used within one year).18Line intentionally left blank19Trustee-held InvestmentsNon-current portion of assets whose use is limited designated as trustee held. Includes investments or assets held under a contractual arrangement with an outside party other than a donor/grantor; these include funds held by a trustee, debt service reserve funds, bond and mortgage sinking funds. Trustee-held investments are contractually obligated for the purpose specified and are not available to fulfill other obligations of the hospital.20Board-Designated and Undesignated InvestmentsNon-current portion of assets whose use is limited by the Board of Trustees (i.e., internally designated) and any undesignated long-term investments. Includes assets set aside for capital improvements/acquisitions, funded depreciation and assets functioning as endowments. These fund designations can be revoked by Board decree and used to meet other obligations of the parent entity or hospital if necessary (these funds are discretionary). Include in here “beneficial interest in net assets of parent” unless the amounts are clearly donor restricted.21Due From AffiliatesNon-current portion of receivables due from affiliated entities, reported as notes receivable from/loans or advances to affiliated entities. Amounts greater than or equal to +/- $100,000, individually or in aggregate must be identified by entity name and amount.22Investment in AffiliatesAmounts recorded as equity investments (i.e., less than 50% share). Includes amount listed as goodwill/intangible assets for the purchase of another entity (e.g., a physician practice). Amounts greater than or equal to +/- $100,000, individually or in aggregate must be identified by entity name and amount. 23Other Non-current AssetsAll other non-current assets not listed above, including amounts due from restricted funds; deposits; other non-current unrestricted receivables; deferred financing costs (e.g., bond issuance costs) and deferred charges; pension and insurance obligations or retirement programs; cash surrender value of life insurance; organization costs, etc.24Gross Property, Plant & Equipment (PP & E)Gross value of land, buildings, equipment, construction in progress, and capitalized leases.25Accumulated DepreciationIncludes depreciation of plant, property & equipment and amortization of capitalized leases.26Net Property, Plant & EquipmentGross plant, property & equipment minus accumulated depreciation (line 24 minus line 25).27Total Non-current AssetsAll long-term assets (lines 19 through 23, plus line 26).28Total Unrestricted AssetsAll current and non-current assets not restricted externally by donors or grantors (line 16 plus 27).29CURRENT LIABILITIESHeading. Short-term obligations (i.e., those expected to be due within one year).30Current Long Term Debt (LTD)Current portion of long-term debt/bonds payable and capital leases; does not include notes payable, lines of credit or other short-term obligations. 31Accounts Payable + Accrued ExpensesIncludes accounts payable, accrued salaries, wages, payroll taxes, interest, vacation (earned time) and other accrued liabilities.32Estimated Third-Party SettlementsCurrent portion of amounts received from third party payors which the hospital expects to be due back to third parties in the current year (i.e., amounts received from third parties in the past may be in excess of allowable amounts and may therefore be paid back to third parties or else resolved favorably and recognized as revenue in the future).33Due to AffiliateCurrent amounts owed to related entities. Amounts greater than or equal to +/- $100,000, individually or in aggregate must be identified by entity name and amount.34Other Current LiabilitiesAll other current liabilities, including amounts due to restricted funds; notes payable (unless owed to affiliated entity); lines of credit; deferred gift annuities; construction payable; current portion of self insurance funds, pension costs and post-retirement health benefits; current portion of deferred revenue, etc.35Total Current LiabilitiesAll short-term obligations (lines 30 through 34).36NON-CURRENT LIABILITIESHeading. Long-term obligations (i.e., those not due within one year).37Long-term debtNon-current portion of long-term debt, capital leases and mortgage notes payable.38Estimated Third Party SettlementsNon-current portion of amounts received from third party payors which the hospital expects to be due back to third parties (i.e., amounts received from third parties in the past may be in excess of allowable amounts and may therefore be paid back to third parties or else resolved favorably and recognized as revenue in the future).39Due to AffiliateNon-current amounts owed to related entities. Amounts greater than or equal to +/- $100,000, individually or in aggregate must be identified by entity name and amount.40Self-Insurance FundIncludes self-insurance, reserve for professional liability or workers' compensation.41Accrued Pension & Post-Retiree Health BenefitsNon-current amounts of accrued pension and post-retirement health benefits.42Other Non-current LiabilitiesAll other non-current liabilities including amounts due to restricted funds, notes payable (unless owed to affiliated entity), deferred gift annuities, construction payable, deferred revenue, etc.43Total Non-current LiabilitiesSum of all long-term obligations (lines 37 through 42).44Fund Balance-UnrestrictedIncludes all net assets that are not temporarily or permanently restricted by donor or grantor stipulations. Also includes funded depreciation.45Total Liabilities and EquitySum of all liabilities and net assets (fund balance) not restricted externally by donors or grantors (lines 35 plus 43 plus 44).46RESTRICTED FUNDSHeading. Includes accounts with external (donor or grantor) stipulations. 47Cash and InvestmentsIncludes cash and investments restricted by donor or grantor.48ReceivablesPledges and grants receivable restricted by donor or grantor and amounts due from general (unrestricted) fund.49Other AssetsAssets other than cash, investments and receivables restricted by donor or grantor.50Total Restricted AssetsSum of all restricted assets (lines 47 through 49). Check that restricted assets equal restricted liabilities and net assets (line 50 equals line 56).51LIABILITIES AND EQUITYHeading.52Total LiabilitiesAmounts due to the general fund and any liabilities whose purpose is restricted. If temporarily and permanently restricted liabilities and net assets are less than restricted assets, remove the amount necessary to balance restricted assets from unrestricted current liabilities (from other current liabilities if enough, otherwise from accrued expenses).53Temporarily Restricted Net AssetsFunds temporarily restricted by donor or grantor stipulations. Includes funds called specific purpose; property, plant and replacement; or term endowment funds.54Permanently Restricted Net AssetsFunds permanently restricted by donor or grantor stipulations, also called permanent endowment funds.55Total Restricted Fund BalanceSum of temporarily and permanently restricted net assets (lines 53 through 54).56Total Restricted Liabilities and EquitySum of restricted liabilities and temporarily and permanently restricted net assets (line 52 plus 55). Restricted assets equal restricted liabilities and net assets (line 50 equals line 55).57INCOME STATEMENTHeading.58Gross Inpatient Service RevenueTotal Inpatient Revenues before deductions.59Gross Outpatient Service RevenueTotal Outpatient Revenues before deductions.60Gross Patient Service Revenue (GPSR) Total inpatient and outpatient revenues before deductions.61DEDUCTIONSHeading.62Free Care (Charity Care)Amount of charges provided for charity care.63Bad Debt (Provision for Bad Debts)The estimate of Patient Accounts Receivable that will not be collected.64ContractualsIncludes discounts to third parties (Medicare, Medicaid, Blue Cross, commercial insurers, etc.) and employees. Record this net of changes in estimated settlements from prior years, which goes on the next line. The total of 64 plus 65 should equal total contractual adjustments.65Changes in prior year estimated/final settlementsIf impact on Net Patient Service Revenue is favorable, record this as a negative number (reduction in revenue deduction); if unfavorable, record a positive number.66Net Patient Service RevenueGross patient service revenue minus deductions for free care, bad debt and contractuals (line 60 minus 62+63+64+65).67Other Operating RevenueInclude any other operating revenue from non-patient sources (e.g., garage revenue, cafeteria revenue, rental income), usually reported as other operating revenue and assets released from restriction for operations.68Total Operating RevenueSum of net patient service revenue and other operating revenue (line 66 plus 67).69OPERATING EXPENSESHeading.70Depreciation and AmortizationIncludes amounts listed as depreciation and amortization.71InterestIncludes all interest expense. If the hospital has no long-term debt, enter zero.72Advertising ExpensesTotal advertising expenses, including allowable and unallowable costs using the definitions as specified in the most current version of the Centers for Medicare & Medicaid Services, Provider Reimbursement Manual and found at the MHDO website at https://mhdo.maine.gov/hospital_financials.htm (line 73 plus line 74).73Allowed Advertising ExpensesAllowable advertising costs using the definitions as specified in the most current version of the Centers for Medicare & Medicaid Services, Provider Reimbursement Manual and found at the MHDO website at https://mhdo.maine.gov/hospital_financials.htm.74Non-allowed Advertising ExpensesUnallowable advertising costs using the definitions as specified in the most current version of the Centers for Medicare & Medicaid Services, Provider Reimbursement Manual and found at the MHDO website at https://mhdo.maine.gov/hospital_financials.htm.75Salaries and BenefitsTotal salaries and benefits paid for personnel services, including full-time, part-time, local tenums, contracted, permanent, and temporary personnel; including professional direct patient care and management and administrative care76Other Operating ExpensesIncludes all other general and administrative operating expenses; including rent, utilities, insurance, medical supplies and drugs, contracted services, etc. not already identified. 77Total Operating ExpensesIncludes depreciation, interest, advertising, salaries & benefits, and all other operating expenses. (Note: Amount will be less than reported on income statement by amount of bad debt.)78Net Operating IncomeTotal operating revenue minus total operating expense (line 68 minus 77).79NONOPERATING REVENUEHeading. Includes all gains/losses due to activities relating to the mission of the hospital.80Interest and DividendsIncludes dividend income; interest income from and realized gains/losses on sale of unrestricted investments; and unrestricted income on restricted assets.81Realized Gains/losses on sales of securitiesIncludes realized gains and losses on investments which accrue to the unrestricted fund; omit realized gains and losses accruing to restricted funds (see changes in net assets).82Permanently impaired security write downsIncludes unrealized losses deemed other than temporary by management, and taken out of income.83Total investment incomeSum of lines 80 through 82.84Gains/losses on joint ventures/equity investmentsIncludes gains or losses on the sale of fixed assets and gains/losses from equity investments and joint ventures.85Permanently impaired write-downs of other assetIncludes write-downs of assets deemed not worth their historical cost value, other than marketable securities.86Other Non-Operating Revenues (gifts, bequests, etc.)Mostly contributions, gifts, bequest, although may include the "other" category.87Total Non-Operating RevenueSum of lines 83 through 86.88Excess of Revenue Over ExpensesNet operating income plus non-operating revenue (line 78 plus 87).89Extraordinary Gains (Losses)Generally related to extraordinary gains/losses from advance extinguishment of debt.90Total Surplus/DeficitLine 88 plus line 89.91CHANGES OF NET ASSETSHeading.92Net assets released for restrictions - capitalIncludes transfers from restricted funds for capital and direct capital donations.93Unrealized Gains (Losses) on InvestmentsUse the number in the statement of changes in unrestricted net assets; avoid using a total unrealized gain/loss that would include those accruing to restricted funds.94Minimum Pension Liability AdjustmentOccurs when market value of pension assets drops below a minimum level relative to the value of benefits.95Transfers from (to) AffiliatesGenerally disclosed in statement of changes in net assets; may be reported as non-operating expenses. Amounts greater than or equal to +/- $100,000, individually or in aggregate must be identified by entity name and amount.96MergersCash impact of mergers.97Consolidations with Support OrganizationsValue of assets held on hospitals behalf by other organizations.98Other Changes Include accounting policy changes and other non-income transactions not specifically identified above, that affect unrestricted net assets.99Total Change in Unrestricted Net AssetsSum of lines 90 through 98.100STATEMENT OF CASH FLOWS Heading.101CASH GENERATED FROM OPERATING ACTIVITIESHeading.102Total Surplus/DeficitLine 90.103Non-cash Expenses (Revenues)Includes non-cash items affecting the total surplus number, such as depreciation and amortization expenses, gains/losses on equity investments, gain/loss on sale of assets, realized gain on sale of investments, and gains/losses associated with extraordinary items. Do not include any adjustments for restricted accounts or for items not included in the total surplus number (e.g., unrealized gains, accounting policy changes, etc.).104Funds from OperationsLines 102 plus 103.105Decrease/Increase Current Assets Limited UsePrior year minus current year current portion of assets whose use is limited (Change in line 8).106Decrease/Increase Accounts ReceivablePrior year minus current year current portion of patient accounts and other receivables excluding 3rd party and affiliate receivables (Change in lines 10 and 13).107Decrease/Increase Affiliate ReceivablePrior year minus current year current portion of affiliate receivable (Change in line 11).108Decrease/Increase 3rd Party ReceivablePrior year minus current year current portion of 3rd party receivables (Change in line 12).109Decrease/Increase InventoryPrior year minus current year current portion of inventories (Change in line 14).110Decrease/Increase Other Current AssetsPrior year minus current year of other current assets (Change in line 15).111Increase/Decrease Accounts Payable/Accrued ExpensesCurrent year minus prior year current portion of Accounts Payable and Accrued Expenses (Change in line 31).112Increase/Decrease 3rd Party SettlementCurrent year minus prior year current portion of 3rd party receivables (Change in line 32).113Increase/Decrease Due to AffiliatesCurrent year minus prior year current portion of due to affiliates (Change in line 33).114Increase/Decrease Other Current Liabilities (except Long Term Debt)Current year minus prior year of other current liabilities (Change in line 34).115Other Non-cash Expenses (Revenues)Includes non-cash items affecting the total surplus number not already identified. Completion of this field requires an explanation.116Cash from Working CapitalSum of lines 105 through 115.117Cash from Operating ActivitiesSum of funds from operations and cash from working capital (line 104 plus 116).118CASH FROM INVESTING ACTIVITIESHeading. Investing activities include changes in non-current assets.119Decrease/Increase Board Designated InvestmentPrior year minus current year balance of board designated and undesignated investments plus Unrealized Gains (Losses) on Investments. (Change in line 20).120Decrease/Increase Trustee Held InvestmentPrior year minus current year balance in trustee-held investments (Change in line 19). All unrealized gains and losses go into line 119.121Decrease/Increase Due From AffiliatesPrior year minus current year non-current portion of due from affiliates (Change in line 21).122Decrease/Increase Affiliate InvestmentsPrior year minus current year non-current portion of investment in affiliates (Change in line 22). Gains/losses in equity of affiliate should be added/subtracted. Also, if amortization amount is available for any goodwill/intangible assets included in "affiliate investments," subtract amortization amount and report on line 126.123Decrease/Increase Other Non-Current AssetsPrior year minus current year of other non-current assets (Change in line 23). If amortization amounts available for assets included in "other non-current assets, "subtract amortization amounts and report on line 126.124Decrease/Increase Gross Plant Property & Equipment (PP&E)Insert amount reported on cash flow statement, reported as purchase of additions to PP&E or capital expenditures.125Sale of Fixed AssetsProceeds from the sale of fixed assets/plant, property & equipment.126Other Cash Provided (Used) in Investing ActivitiesIncludes other cash or non-cash items affecting the total investing activities not already identified. Completion of this field requires an explanation.127Cash Provided (Used) In Investing ActivitiesSum of lines 119 through 126.128Cash Position Before Outside Financing ActivitiesSum of lines 117 and 127.129CASH FROM FINANCING ACTIVITIESHeading. Includes changes in long-term debt (include current portion) and non-current liabilities and amounts transferred to/from restricted funds and other entities.130Issue Long Term Debt (include leases for equipment even if reported as non cash; be sure to add the amount added to PP&E)Insert amount reported on cash flow statement, reported as proceeds from/issue of long-term debt/bonds payable and capital lease obligations. Do not insert reported proceeds from short-term obligations/notes payable/lines of credit, captured in line 114 (change in other current liabilities).131Repay Long Term Debt (include Current Long Term Debt)Insert amount reported on cash flow statement, reported as payment of long-term debt/bonds payable and capital lease obligations (Amount reported should include change in current portion of long-term debt). Do not insert amounts reported for payment of financing costs/bond issuance costs, which are captured in line 123 (change in other non current assets), or any payment of short-term obligations/notes payable/line of credit, which are captured in line 114 (change in other current liabilities).132Increase/Decrease Third Party SettlementCurrent year minus prior year non-current portion of 3rd party settlements (Change in line 38).133Increase/Decrease Due to AffiliatesCurrent year minus prior year non-current portion of due to affiliates (Change in line 39).134Increase/Decrease Pension, Self InsuranceCurrent year minus prior year non-current portion of accrued pension, self insurance reserves (Change in lines 40 and 41).135Increase/Decrease other Non-Current LiabilitiesCurrent year minus prior year of other non-current liabilities (Change in line 42).136Transfers From (To) Restricted FundsTransfers to/from restricted funds from/to general (unrestricted) fund for capital, as reported on line 92.137Transfers From (To) Other EntitiesEquity transfers from/to other entities, line 95. 138Other Cash Provided (Used) in Financing ActivitiesIncludes other cash or non-cash items affecting financing activities not already identified. Completion of this field requires an explanation.139Cash Provided (Used) Financing ActivitiesSum of lines 130 through 138.140Net Change in CashSum of lines 128 and 139.

Chapter 340 Uniform Reporting System for Reporting 340B Drug Program Data Sets

Code Me. R. 90-590 Ch. 340 Uniform Reporting System for Reporting 340b Drug Program Data Sets {#sec-90-590-ch.-340 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 340}

SUMMARY: This Chapter contains the provisions for filing 340B Drug Program data sets from participating Maine hospitals.

The provisions include:

Identification of the organizations required to register and report;

Establishment of requirements for the content, format, method, and time frame for filing 340B Drug Program data;

Establishment of standards for the data reported; and Compliance provisions.

Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

340B Acquisition Cost. “340B Acquisition Cost” means the cost to the hospital and, where applicable, its 340B Contract Pharmacies and 340B Third Party Administrators, to purchase a prescription drug product with a unique NDC under the 340B Drug Program.

340B Child Facilities. “340B Child Facilities” means outpatient facilities under the 340B program based on their inclusion in a hospital’s Medicare cost report and registration with the 340B Office of Pharmacy Affairs (OPA). These facilities can participate in the 340B program and purchase/provide discounted drugs to their patients, provided they meet specific eligibility criteria.

340B Contract Pharmacy. “340B Contract Pharmacy” means a pharmacy contracted by a Hospital to dispense 340B drugs to patients, that is registered for the 340B Drug Program, and listed as active on the 340B Office of Pharmacy Affairs Information System (OPAIS), whether or not such pharmacy is located in the State.

340B Drug. “340B Drug” means a drug that is purchased or eligible for purchase under Section 340B of the federal public Service Act, 42 United States Code, Section 256b(a)(3).

340B Drug Program. “340B Drug Program” means Section 340B of the Public Health Service Act that requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations that care for many uninsured and low-income patients. These organizations include federal grantee organizations and several types of hospitals, including critical access hospitals (CAHs), sole community hospitals (SCHs), rural referral centers (RRCs), and public and nonprofit disproportionate share hospitals (DSHs) that serve low-income and indigent populations.

340B Entity. “340B Entity” means an entity participating or authorized to participate in the federal 340B drug discount program, as described in 42 United States Code, Section 256b, including its pharmacy, or any pharmacy contracted with the participating entity to dispense drugs purchased through the federal 340B drug discount program.

340B Rebate Model Pilot Program. “340B Rebate Model Pilot Program” means a rebate program introduced by the Health Resources and Services Administration (HRSA) under which 340B Entities purchase specific 340B Drugs through their current 340B wholesaler account based on the WAC price provided by the manufacturer and are later provided a manufacturer rebate after the drug is dispensed or administered to an eligible 340B patient.

340B Third Party Administrator. “340B Third Party Administrator” means an entity contracted by a Hospital to administer tasks related to purchasing, inventory management, reporting, billing, or other administration for its 340B Drug Program.

Hospital. “Hospital” means (i) an acute care institution licensed and operating in this State as a hospital under section 1811 or the parent of such institution; or a (ii) hospital subsidiary or hospital affiliate in the State that provides medical services or medically related diagnostic and laboratory services or engages in ancillary activities supporting those services

MHDO. "MHDO" means the Maine Health Data Organization

M.R.S. “M.R.S.” means Maine Revised Statutes.

National Drug Code (NDC). “National Drug Code” means the three-segment code maintained by the federal Food and Drug Administration that includes a labeler code, a product code, and a package code for a drug product and that has been converted to an 11-digit format consisting of five digits in the first segment, four digits in the second segment, and two digits in the third segment. A three-segment code shall be considered converted to an 11-digit format when, as necessary, at least one “0” has been added to the front of each segment containing less than the specified number of digits such that each segment contains the specified number of digits.

Payable. “Payable” means a payment amount accrued to be paid to another party.

Pricing Unit. “Pricing Unit” means the smallest dispensable amount of a prescription drug that can be dispensed or administered.

Receivable. “Receivable” means a payment amount accrued to be received from another party.

Registration and Submission Requirements

Hospitals participating in the 340B Drug Program shall submit to the MHDO or its designee complete 340B Drug Program data sets in accordance with the requirements of this section.

Registration. Each Hospital participating in the 340B Drug Program shall complete an online registration form, or update an existing one, via the MHDO Rx Data Portal web interface by December 1^st of each year. It is the responsibility of the reporting entity to update, as needed, all company and contact information.

Submission Method. Each Hospital participating in the 340B Drug Program shall annually submit data to the MHDO using the MHDO Rx Data Portal by entering each required data field directly into the data portal.

Data that is required to be reported by payor type and/or NDC may also be submitted by unloading an MHDO provided Excel (xlsx) template that includes all required information in the format specified below, as applicable. Blank templates should be downloaded from the data portal. E-mail attachments shall not be accepted.

Submission Deadline. The annual submission of 340B data shall cover the previous fiscal year and shall be due no later than six months after its most recent fiscal year end in accordance with the following schedule:

Fiscal Year End Date

Filing Deadline

January 31

July 31

February 28

August 31

March 31

September 30

April 30

October 31

May 31

November 30

June 30

December 31

July 31

January 31

August 31

February 28

September 30

March 31

October 31

April 30

November 30

May 31

December 31

June 30

Rejection of Submissions. Failure to conform to the requirements of subsections B of this Section shall result in the rejection of the data submissions. All rejected data must be corrected and resubmitted in the MHDO Rx Data Portal within 30 days of the rejection.

Replacement of Data Files. A Hospital may replace data submitted to the MHDO with updated data within 90 days of the updated information becoming available if that date does not occur more than 18 months after the hospital’s fiscal year end.

Reporting Specifications. Each Hospital must report the following data.

• 1. Part 1

For the top three drugs with a unique NDC having the highest acquisition costs and the top three drugs that were dispensed most often, and acquired by the Hospital (or its 340B Contract Pharmacies and 340B Third Party Administrators) under the 340B Drug Program during the fiscal year, the following data elements:

Data Element Name

Description/Codes/Sources

NDC

The national drug code maintained by the FDA for the drug product that includes the labeler code, product code, and package code. A drug’s NDC is typically expressed using 11 digits in a 5- 4-2 format (xxxxx-yyyy-zz). The first five digits identify the manufacturer, the second four digits identify the product and strength, and the last two digits identify the package size and type.

Drug Name

A description of the drug including the product name, dosage form, strength, and package size.

Total 340B Drug Acquisition Cost (NDC)

The cost in whole dollars to the hospital and, where applicable, its 340B Contract Pharmacies and 340B Third Party Administrators, to purchase the drug under the 340B Drug Program.

340B Estimated Savings

The cost that would have otherwise been paid to acquire the drug had a 340B discount not been applied (based on the average actual acquisition cost paid for the same drug outside the 340B Drug Program on a per unit basis), reduced by the 340B Acquisition Cost.

For all drugs acquired by the hospital (or its 340B Contract Pharmacies and 340B Third Party Administrators) participating in the 340B Drug Program during the fiscal year, the aggregated total across all drugs for the following data elements:

Data Element Name

Description/Codes/Sources

Total 340B Drug Acquisition Cost (All 340B Drugs)

The sum total in whole dollars of all drugs under the 340B Drug Program, purchased by a Hospital, and where applicable, its 340B Contract Pharmacies and 340B Third Party Administrators.

Total Drug Expenditures (All Drugs)

The sum total in whole dollars of all drugs purchased by a Hospital, and where applicable, its 340B Contract Pharmacies and 340B Third Party Administrators.

Total 340B Drug Program Estimated Savings (All 340B Drugs)

The cost that would have otherwise been paid to acquire drugs purchased under the 340B Drug Program had a 340B discount not been applied (based on the average acquisition cost paid for the same drugs outside the 340B program on a per unit basis), reduced by:

1. the 340B Acquisition Cost; and
2. the total amount of payments made to 340B Contract Pharmacies, including any share of 340B savings retained by 340 B Contract Pharmacies, for dispensing drugs obtained under the 340B program; and
3. the total amount of payments made to 340B Third Party Administrators, including any share of 340B savings retained by 340B Third Party Administrators, for 340B program administration tasks; and
4. any additional administrative costs associated with the 340B program.

Program or Service Name / Category

The name of any program or service which is funded in whole or in part from Estimated Savings from the 340B Drug Program and provide community benefits.

Description of Program or Service

A description of any program or service which is funded in whole or in part from Estimated Savings from the 340B Drug Program and provide community benefits.

Hospital Internal Review and Oversight

A description of the Hospital's internal review and oversight of

the 340B Drug Program, which meets the federal DHHS, HRSA's program rules and guidance for compliance.

Part 2

This section is separated into seven defined reporting categories, identified as a.-g. Data submitted for each of the sections below must include prescription drugs dispensed or administered by the hospitals outpatient facilities that are identified as child facilities under the 340B Drug Program based on their inclusion in the Hospital’s Medicare cost report.

Hospital Totals: Data elements the Hospital must manually enter to report on totals for the entire Hospital.

Data Element Name

Description/Codes/Sources

Total 340B Acquisition Cost

The aggregated 340B Acquisition Cost for all prescription drugs obtained by, or on behalf of, the Hospital under the 340B Drug Program during the previous fiscal year.

Total 340B Contract Pharmacy Claims

The aggregated number of claims for prescriptions filled by 340B Contract Pharmacies during the previous fiscal year for drugs obtained under the 340B Drug Program.

Total 340B Contract Pharmacy Cost

The aggregated payments made to 340B Contract Pharmacies to dispense drugs during the previous fiscal year for drugs obtained under the 340B Drug Program.

Total 340B Outside Entity Cost

The aggregated payments made to any other entity that is not the Hospital, and is not a 340B Contract Pharmacy, for managing any aspect of the Hospital’s 340B Drug Program during the previous fiscal year.

Total Other 340B Expenses

Theaggregated payments made for all other expenses related to administering the 340B Drug Program during the previous fiscal year, including any contract fees, staffing, operational, and administrative expenses.

Total 340B Rebate Receivable Amount

The aggregated rebate receivable amount accrued by the Hospital during the previous fiscal year related to the dispensing or administration of 340B drugs.

Total 340B Rebate Payable Amount

The aggregated rebate payable amount accrued by the Hospital during the previous fiscal year related to the dispensing or administration of 340B drugs.

Hospital Totals by Primary Payor Type: Data elements the Hospital must manually enter or provide by uploading an MHDO provided Excel (.xlsx) template to report on totals for the Hospital by primary payor type.

Data Element Name

Description/Codes/Sources

Payor Type

When using an MHDO provided Excel Template, enter value:

1 – Commercial

2 – Medicare

3 – MaineCare

4 – Medical Assistance

5 – Other/Specify in General Comments

Total 340B Pricing Units – Dispensed Drugs

The total number of Pricing Units dispensed to patients during the previous fiscal year for all drugs obtained under the 340B Drug Program.

Total 340B Payment Received – Dispensed Drugs

The aggregated payment receivable amount accrued for all drugs obtained under the 340B Drug Program and dispensed to patients during the previous fiscal year.

Total 340B Pricing Units – Administered Drugs

The total number of Pricing Units administered to patients during the previous fiscal year for all drugs obtained under the 340B Drug Program.

Total 340B Payment Received – Administered Drugs

The aggregated payment receivable amount accrued for all drugs obtained under the 340B Drug Program and administered to patients during the previous fiscal year.

Hospital Top 50 Dispensed Drugs: Data elements the Hospital must manually enter or provide by uploading an MHDO provided Excel (.xlsx) template to report on totals for the Hospital’s top 50 drugs with a unique NDC that were dispensed most often, and acquired by, or on behalf of, the Hospital under the 340B Drug Program during the fiscal year.

Data Element Name

Description/Codes/Sources

NDC

The NDC of the drug.

Drug Name

A description of the drug including the product name, dosage form, strength, and package size.

Total 340B Acquisition Cost

The aggregated 340B Acquisition Cost for the NDC obtained by, or on behalf of, the Hospital under the 340B Drug Program during the previous fiscal year.

Total 340B Rebate Receivable Amount

The aggregated rebate receivable amount accrued by the Hospital during the previous fiscal year related to the dispensing of the NDC under the 340B drug program.

Total 340B Rebate Payable Amount

The aggregated rebate payable amount accrued by the Hospital during the previous fiscal year related to the dispensing of the NDC under the 340B drug program.

Hospital top 50 Dispensed Drugs by Primary Payor Type: Data elements the Hospital must manually enter or provide by uploading an MHDO provided Excel (.xlsx) template to report on totals for the Hospital’s top 50 drugs with a unique NDC that were dispensed most often, and acquired by, or on behalf of, the Hospital under the 340B Drug Program during the fiscal year by primary payor type.

Data Element Name

Description/Codes/Sources

NDC

The NDC of the drug.

Drug Name

A description of the drug including the product name, dosage form, strength, and package size.

Payor Type

When using an MHDO provided Excel Template, enter value:

1 – Commercial

2 – Medicare

3 – MaineCare

4 – Medical Assistance

5 – Other/Specify in General Comments

Total 340B Pricing Units – Dispensed Drugs

The total number of Pricing Units dispensed to patients during the previous fiscal year for all drugs obtained under the 340B Drug Program.

Total 340B Payment Received – Dispensed Drugs

The aggregated payment receivable amount accrued for all drugs obtained under the 340B Drug Program and dispensed to patients during the previous fiscal year.

Hospital Top 50 Administered Drugs: Data elements the Hospital must manually enter or provide by uploading an MHDO provided Excel (.xlsx) template to report on totals for the Hospital’s top 50 drugs with a unique NDC that were administered most often, and acquired by, or on behalf of, the Hospital under the 340B Drug Program during the fiscal year.

Data Element Name

Description/Codes/Sources

NDC

The NDC of the drug.

Drug Name

A description of the drug including the product name, dosage form, strength, and package size.

Total 340B Acquisition Cost

The aggregated 340B Acquisition Cost for the NDC obtained by, or on behalf of, the Hospital under the 340B Drug Program during the previous fiscal year.

Total 340B Rebate Receivable Amount

The aggregated rebate receivable amount accrued by the Hospital during the previous fiscal year related to the administering of the NDC under the 340B drug program.

Total 340B Rebate Payable Amount

The aggregated rebate payable amount accrued by the Hospital during the previous fiscal year related to the administering of the NDC under the 340B drug program.

Hospital Top 50 Administered Drugs by Primary Payor Type: Data elements the Hospital must manually enter or provide by uploading an MHDO provided Excel (.xlsx) template to report on totals for the Hospital’s top 50 drugs with a unique NDC that were administered most often, and acquired by, or on behalf of, the Hospital under the 340B Drug Program during the fiscal year by primary payor type.

Data Element Name

Description/Codes/Sources

NDC

The NDC of the drug.

Drug Name

A description of the drug including the product name, dosage form, strength, and package size.

Payor Type

When using an MHDO provided Excel Template, enter value:

1 – Commercial

2 – Medicare

3 – MaineCare

4 – Medical Assistance

5 – Other/Specify in General Comments

Total 340B Pricing Units – Administered Drugs

The total number of Pricing Units administered to patients during the previous fiscal year for all drugs obtained under the 340B Drug Program.

Total 340B Payment Received – Administered Drugs

The aggregated payment receivable amount accrued for all drugs obtained under the 340B Drug Program and administered to patients during the previous fiscal year.

Hospital Community Benefits: Data elements the Hospital must manually enter to report on Hospital programs or services that provide community benefits and are funded in whole or in part from 340B drug program savings.

Data Element Name

Description/Codes/Sources

Program or Service Name / Category

The name of any program or service which is funded in whole or in part from estimated savings from the 340B Drug Program and provide community benefits.

Description of Program or Service

A description of any program or service which is funded in whole or in part from estimated savings from the 340B Drug Program and provide community benefits.

Evaluation; Notification; Response

A. Evaluation. The MHDO or its vendor shall evaluate each file in accordance with the following standards:

When applicable, only an eligible code value for a specified data element shall be accepted;

Coding values indicating “data not available”, “data unknown”, or the equivalent shall not be used for individual data elements unless specified as an eligible value for the element.

B. Notification. Upon completion of the data evaluation, the MHDO or its designee will promptly notify each Hospital whose data submissions do not satisfy the standards for any filing period. This notification will identify the specific file and the data elements within them that do not satisfy the standards.

C. Response. Each Hospital notified under subsection 3(B) will respond within 30 days of the notification by making and reporting the changes necessary to satisfy the standards.

Compliance

Certification of accuracy. Hospitals will be required to attest to the accuracy of their data submissions through the MHDO Rx Data Portal web interface.

Enforcement. The failure to file, report, or correct 340B Drug Program data sets when required in accordance with the provisions of this Chapter may be considered a civil violation under 22 M.R.S. § 8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures .

Extensions to Data Submission Requirements

If a Hospital, due to circumstances beyond its control, is temporarily unable to meet the terms and conditions of this Chapter, a written request must be made to the Compliance Officer of the MHDO as soon as it is practicable after the reporting entity has determined that an extension is required.

Annual Report Requirement

Information provided to the MHDO as required by this rule shall be used by the MHDO to:

Produce and post on MHDO’s publicly accessible website, a report that includes a summary of the aggregate information received from Hospitals required to report under 22 M.R.S. § 1728 subsection 2 , and

Submit the reports required by this subsection to the Office of Affordable Health Care, as established in Title 5, section 3122, the Maine Prescription Drug Affordability Board, as established in Title 5, section 12004-G, subsection 14-I, and the joint standing committee of the Legislature having jurisdiction over health data reporting and prescription drug matters.

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 1728, 8703(1), and 8704(1) & (4)
• EFFECTIVE (NEW): September 17, 2024
• APAO ACCESSIBILITY CHECK (Word): March 3, 2026
• AMENDED: March 8, 2026 – filing 2026-058

Chapter 570 Uniform Reporting System for Prescription Drug Price Data Sets

Code Me. R. 90-590 Ch. 570 Uniform Reporting System for Prescription Drug Price Data Sets {#sec-90-590-ch.-570 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 570}

SUMMARY: This chapter contains the provisions for filing pharmaceutical pricing data sets from prescription drug manufacturers, wholesale drug distributors and pharmacy benefits managers.

The provisions include:

Identification of the organizations required to register and report;

Establishment of requirements for the content, format, method, and time frame for filing prescription drug price data;

Establishment of standards for the data reported; and

Compliance provisions.

Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

1. Acquisition date. “Acquisition date” means the date that the manufacturer registered with the FDA as the labeler for the drug product.
2. Brand-name drug. “Brand-name drug” means a prescription drug, having a unique NDC, marketed under a proprietary name or registered trademark name, including a biological product, and approved under a New Drug Application or Biologics License Application.
3. Dosage Form. “Dosage Form” means the physical form in which a prescription drug is produced and dispensed, such as a tablet, a capsule, or an injectable.
4. Drug product family. “Drug product family” means a group of one or more prescription drugs that share a unique non-proprietary name and dosage form.
5. Generic drug. “Generic drug” means a prescription drug, having a unique NDC, whether identified by its chemical, proprietary or nonproprietary name, that is not a brand-name drug, is therapeutically equivalent to a brand-name drug in dosage, strength, method of consumption, performance and intended use, and approved under an Abbreviated New Drug Application. "Generic drug" includes a biosimilar product.
6. Introduced to Market. “Introduced to Market” means made available for purchase in the United States.
7. Manufacturer. “Manufacturer” means an entity that manufactures or repackages, and sets the wholesale acquisition cost for, prescription drugs that are distributed in the State.
8. MHDO. "MHDO" means the Maine Health Data Organization.
9. M.R.S. “M.R.S.” means Maine Revised Statutes .
10. National Drug Code (NDC). “National Drug Code (NDC)” means the three-segment code maintained by the federal Food and Drug Administration that includes a labeler code, a product code, and a package code for a drug product and that has been converted to an 11-digit format consisting of five digits in the first segment, four digits in the second segment, and two digits in the third segment. A three-segment code shall be considered converted to an 11-digit format when, as necessary, at least one “0” has been added to the front of each segment containing less than the specified number of digits such that each segment contains the specified number of digits.
11. New Prescription Drug. “New prescription drug” means a drug receiving initial approval under an original new drug application under 21 United States Code, Section 355(b), under an abbreviated new drug application under 21 United States Code, Section 355(j), or under a biologics license application under 42 United States Code, Section 262. Each product listed on the application shall be considered a new prescription drug.
12. Nonproprietary name. “Nonproprietary name” means the generic name assigned by the United States Adopted Names (USAN) Council.
13. Pharmacy Benefits Manager (PBM). “Pharmacy Benefits Manager (PBM)” means an entity that performs pharmacy benefits management, as defined in 24-A M.R.S. §4347, sub-section 17.
14. Prescription drug. “Prescription drug” means a drug, as defined in 21 United States Code, Section 321(g) or a biological product as defined in 42 United States Code, Section 262(i)(1) that: 1. Is intended for human use; 2. Is not a device within the meaning of 21 United States Code, Section 321(h); and 3. By federal or state law, can be lawfully dispensed or administered only on prescription by a licensed health care professional.
15. Pricing component data. “Pricing component data” means data unique to each reporting entity subject to this rule that evidences the cost to each reporting entity to make a prescription drug product available to consumers and the payments received by each reporting entity to make a prescription drug product available to consumers, taking into account any price concessions, and that is measured uniformly among and between the entities, as detailed by this rule adopted by the organization pursuant to 22 M.R.S. §8737.
16. Pricing unit. “Pricing unit” means the smallest dispensable amount of a prescription drug product that could be dispensed.
17. Proprietary name. “Proprietary name” means the brand or trademark name of the drug reported to the FDA.
18. Rebate. “Rebate” means a discount, chargeback, or other price concession that affects the price of a prescription drug product, regardless of whether conferred through regular aggregate payments, on a claim-by-claim basis at the point-of-sale, as part of retrospective financial reconciliations (including reconciliations that also reflect other contractual arrangements), or by any other method. “Rebate” does not mean a “bona fide service fee”, as such term is defined in 42 Code of Federal Regulations, Section 447.502, published October 1, 2019.
19. Reporting entity. “Reporting entity” means any manufacturer, pharmacy benefits manager, wholesale drug distributor, or any other entity required to register and/or submit data pursuant to 22 M.R.S. §§ 8732, 8734, 8735 and this rule.
20. Specialty Drug Under Medicare Part D Program. “ Specialty Drug Under Medicare Part D Program” means a prescription drug product having a wholesale acquisition cost that exceeds the threshold set for a specialty drug by the Centers for Medicare and Medicaid Services under the Medicare Part D.
21. Tax identification number (TIN). “Tax identification number (TIN)” means the 9-digit Taxpayer Identification Number used by the Internal Revenue Service (IRS).
22. Wholesale acquisition cost (WAC). “Wholesale acquisition cost (WAC)” means a manufacturer’s published list price for sale of a prescription drug product with a unique NDC to any wholesale drug distributor or other entity that purchases a prescription drug directly from the manufacturer, not including any price concessions.
23. Wholesale drug distributor. “Wholesale drug distributor” means an entity that 1. is licensed by the State to engage in the sale of prescription drugs to persons and/or entities other than a consumer or patient; and 2. distributes prescription drugs, of which it is not the manufacturer, to persons and /or entities other than a consumer or patient in the State.

Registration and Submission Requirements

Reporting entities shall submit to the MHDO or its designee complete prescription drug price data sets in accordance with the requirements of this section. Data may be submitted by corporate entities or their subsidiaries. Reporting entities that engage subcontractors or other third parties to submit information on their behalf warrant the completeness and accuracy of all data submitted.

1. Registration. Each entity required to report shall complete an online registration form, or update an existing one, via the MHDO Prescription Drug Price Data Portal web interface (https://mhdo.maine.gov/pharma_portal/) by January 30^thof each year. It is the responsibility of the reporting entity to complete, as needed, all company and contact information.
2. Public Notice of Substantial Drug Price Change or Introduction. No later than January 30th of each year, the MHDO shall produce and post on its publicly accessible website a list of prescription drugs for which the manufacturer has during the prior calendar year: - 1. Increased the wholesale acquisition cost of a brand-name drug by more than 20% per pricing unit; 2. Increased the wholesale acquisition cost of a generic drug that costs at least $10 per pricing unit by more than 20% per pricing unit; or 3. Introduced a new prescription drug for distribution in this State when the wholesale acquisition cost is greater than the amount that would cause the drug to be considered a specialty drug under the Medicare Part D program (hereinafter “new drug”). For the purposes of this paragraph, “Medicare Part D” has the same meaning as in 22 M.R.S. §254-D(1)(F).
3. Disclosures by manufacturers, wholesale drug distributors and pharmacy benefits managers. The following disclosures apply to manufacturers, wholesale drug distributors and pharmacy benefits managers. 1. On or before February 15th of each year, the MHDO shall produce and post on its publicly accessible website a list of drug product families for which it intends to request pricing component data from manufacturers, wholesale drug distributors and pharmacy benefits managers. The MHDO will base its inclusion of drug product families on any information the MHDO determines is relevant to providing greater consumer awareness of the factors contributing to the cost of prescription drugs in the State, and the MHDO will consider drug product families of prescription drugs: - 1. Included in the public notice of substantial drug price change or introduction under subsection 2(B); and; 2. For which the MHDO is required to produce an annual report pursuant to 22 M.R.S. §8712(5), including, but not limited to, the 25 costliest drugs (determined by the total amount spent in the State), the 25 most frequently prescribed drugs in the State, and the 25 drugs with the highest year-over-year cost increases (determined by the total amount spent in the State). 2. Not sooner than 30 days after publicly posting the list of drug product families pursuant to subsection C(1), the MHDO will notify, via e-mail: 1. manufacturers that are required to report pricing component data as detailed in section 2(J)(1); 2. wholesale drug distributors that are required to report pricing component data as detailed in section 2(J)(2); and 3. pharmacy benefits managers that are required to report pricing component data as detailed in section 2(J)(3). 3. Each reporting entity receiving such a notification shall submit their pricing component data to the MHDO for each NDC in each drug product family included in the notice in accordance with the requirements below.
4. Submission Method. Data files must be submitted via the MHDO Prescription Drug Price Data Portal web interface (https://mhdo.maine.gov/pharma_portal/). E-mail attachments shall not be accepted.
5. File Format. The file format will be an MHDO-provided Excel template for each dataset submitted via a secure web upload interface. Submitters must use the current version of the appropriate template. The file format will contain the data elements found in the Reporting Specifications described in subsection 2(J). File naming conventions will be specified in the instructions included with each template.
6. Codes. Unless otherwise specified, only the code sources listed and described in the templated reports are to be utilized. Specific or unique coding systems shall not be permitted.
7. Submission Deadline. Prescription drug manufacturers, wholesale drug distributors and pharmacy benefits managers shall report no later than 60 days after notification from the MHDO, as described in subsection 2(C)(2).
8. Rejection of Submissions. Failure to conform to the requirements of subsections D, E or F of this Section shall result in the rejection of the data file(s). All rejected files must be corrected and resubmitted to the MHDO or its designee within 30 days.
9. Replacement of Data Files. A reporting entity may replace data submitted to the MHDO with updated data within 90 days of the updated information becoming available. Any replacements after this period must be approved by the MHDO.
10. Reporting Specifications. For each drug product NDC indicated in the MHDO notice, the reporting entity must report the following data. Data related to sales volume, acquisition volume, revenue, acquisition amount, and rebates should be provided net of returns.

Manufacturer Report

Data Element Name

Description/Codes/Sources

NDC

The national drug code maintained by the FDA for the drug product that includes the labeler code, product code, and package code. A drug’s NDC is typically expressed using 11 digits in a 5-4-2 format (xxxxx-yyyy-zz). The first five digits identify the manufacturer, the second four digits identify the product and strength, and the last two digits identify the package size and type. Do not leave blank.

Drug Indicator

1 = Brand Name; 2 = Generic

Estimated Number of Patients

Estimated annual patient volume in the United States for this drug product during the current calendar year.

Baseline WAC Amount

The wholesale acquisition cost of the drug product on the later of the day prior to the first day of the prior calendar year, the introduced to market date, or the acquisition date.

Total WAC Change Amount

The total amount of wholesale acquisition cost change for the drug product during the last calendar year. Indicate $0 if no change.

WAC After Change

The wholesale acquisition cost resulting from the reported wholesale acquisition cost change for the drug product. That is, the wholesale acquisition cost on the last day of the calendar year. If no change, this amount should be the same as the Baseline WAC Amount.

Unit Sales Volume in US

The number of units of the drug product sold in the United States during the prior calendar year.

Revenue in US

Gross revenue from sales in the United States for this drug product during the prior calendar year.

Total Rebate Payable

Amount in US

Total rebate payable amount accrued for the drug product in the United States during the prior calendar year.

Cost Change Factors

Reasons for WAC change

0 – No change/not applicable

1 – Change in administrative expenses

2 – Scheduled price change

3 – Change in ingredient costs

4 – Change in manufacturing

5 – Change in marketing & advertising costs

6 – Change in financial assistance

7 – Change in R&D costs

8 – Change in rebates to PBMs/wholesalers

9 – Other rebate change

10 – Change in supply (shortage or surplus)

11 – Change in sales costs

12 – Change in state and federal taxes

13 – Change in profit targets

14 – Change in supplier price (repackaged NDC)

15 – Other/Specify

Acquisition Date

If the drug product was acquired by the manufacturer within the previous five years, the date of acquisition. If not, leave blank.

Company Acquired from

Name

If the drug product was acquired by the manufacturer within the previous five years, the name of the company from which the drug was acquired. If not, leave blank.

Company Acquired from

Tax ID Number

If the drug product was acquired by the manufacturer within the previous five years, the TIN of the company from which the drug was acquired. If not, leave blank.

Acquisition Price

If the drug product was acquired by the manufacturer within the previous five years, the purchase price of acquisition. If not, leave blank.

WAC at Acquisition

If the drug product was acquired by the manufacturer within the previous five years, and the acquisition date falls after the introduced to market date, the wholesale acquisition cost of the drug product at the time of acquisition. If not, leave blank.

WAC One Year Prior to

Acquisition

If the drug product was acquired by the manufacturer within the previous five years, and the acquisition date falls more than 365 days after the introduced to market date, the wholesale acquisition cost of the drug product one year prior to the date of acquisition. If not, leave blank.

Introduced to Market Date

If the drug product was introduced to market within the previous calendar year or acquired by the manufacturer within the previous five years, the date the drug product was introduced to market. If not, leave blank.

WAC at

Market Introduction

If the drug product was introduced to market within the previous calendar year or acquired by the manufacturer within the previous five years, the wholesale acquisition cost of the drug product when it was introduced to market. If not, leave blank.

Acquisition Comments

Additional information related to the acquisition information provided, if applicable.

General Comments

Additional information related to the data submitted for this drug product, if applicable.

Wholesale Drug Distributor Report

Data Element Name

Description/Codes/Sources

NDC

The national drug code maintained by the FDA for the drug product that includes the labeler code, product code, and package code. A drug’s NDC is typically expressed using 11 digits in a 5-4-2 format (xxxxx-yyyy-zz). The first five digits identify the manufacturer, the second four digits identify the product and strength, and the last two digits identify the package size and type. Do not leave blank.

Unit Acquisition Volume

in US

The number of units of the drug product acquired in the United States by the wholesale drug distributor during the prior calendar year.

Total Acquisition Amount

in US

Total spent before rebates by the wholesale drug distributor to acquire the drug product in the United States during the prior calendar year.

Total Rebate Receivable Amount in US

Total rebate receivable amount accrued by the wholesale drug distributor for the drug product in the United States during the prior calendar year.

Unit Sales Volume in US

Number of units of the drug product sold by the wholesale drug distributor in the United States during the prior calendar year.

Revenue in US

Gross revenue from sales in the United States generated by the wholesale drug distributor for this drug product during the prior calendar year.

Total Rebate Payable Amount

in US

Total rebate payable amount accrued by the wholesale drug distributor for the drug product in the United States during the prior calendar year.

General Comments

Additional information related to the data submitted for this drug product, if applicable.

Pharmacy Benefits Manager Report

Data Element Name

Description/Codes/Sources

NDC

The national drug code maintained by the FDA for the drug product that includes the labeler code, product code, and package code. A drug’s NDC is typically expressed using 11 digits in a 5-4-2 format (xxxxx-yyyy-zz). The first five digits identify the manufacturer, the second four digits identify the product and strength, and the last two digits identify the package size and type. Do not leave blank.

Pricing Units Administered

in Maine

The number of pricing units of the drug product filled in Maine for which the PBM administered claims during the prior calendar year.

Total Pharmacy Reimbursement in Maine

Total reimbursement amount accrued and payable to pharmacies for pricing units of the drug product filled in Maine for which the PBM administered claims during the prior calendar year.

Total Payment Received

in Maine

Total reimbursement and/or administrative fee amount accrued and receivable from payers for pricing units of the drug product filled in Maine for which the PBM administered claims during the prior calendar year.

Total Rebate Receivable Amount in Maine

Total rebate receivable amount accrued by the PBM for the drug product in Maine during the prior calendar year.

Total Rebate Payable Amount

in Maine

Total rebate payable amount accrued by the PBM for the drug product in Maine during the prior calendar year.

General Comments

Additional information related to the data submitted for this drug product, if applicable.

Evaluation; Notification; Response

1. Evaluation. The MHDO or its vendor shall evaluate each file in accordance with the following standards: 1. When applicable, only an eligible code value for a specified data element shall be accepted; 2. Coding values indicating “data not available”, “data unknown”, or the equivalent shall not be used for individual data elements unless specified as an eligible value for the element.
2. Notification. Upon completion of the data evaluation, the MHDO or its designee will promptly notify each reporting entity whose data submissions do not satisfy the standards for any filing period. This notification will identify the specific file and the data elements within them that do not satisfy the standards.
3. Response. Each reporting entity notified under subsection 3(B) will respond within 30 days of the notification by making and reporting the changes necessary to satisfy the standards.

Compliance

Certification of accuracy. A notification or report to the MHDO by a reporting entity shall include a signed, written certification of the notification or report’s accuracy. Reporting entities will be allowed to attest to the accuracy of their notification or report through the MHDO Prescription Drug Price Data Portal web interface. Confirmation will be documented electronically and will count as the written certification.

Audit. With a 30-day notice, the MHDO may audit the finalized data submitted by a reporting entity, and that entity shall pay for the costs of the audit. The MHDO will consider recommendations from the reporting entity as to the scope of the audit and the selection of the independent auditor.

Corrective action plan. The MHDO may require a reporting entity to develop a corrective action plan to correct any deficiencies in compliance discovered during an audit. The corrective action plan shall include, in writing: the specific requirement to be extended; an explanation of the cause; the methodology proposed to eliminate the necessity of the extension; and the time frame required to come into compliance.

Enforcement. The failure to file, report, or correct prescription drug price data sets when required in accordance with the provisions of this chapter may be considered a civil violation under 22 M.R.S. §8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures .

Extensions to Data Submission Requirements

If a reporting entity, due to circumstances beyond its control, is temporarily unable to meet the terms and conditions of this chapter, a written request must be made to the Compliance Officer of the MHDO as soon as it is practicable after the reporting entity has determined that an extension is required. The written extension request shall include the same elements as the corrective action plan in Section 4(C).

Confidentiality

Information provided to the MHDO as required by this chapter by a manufacturer, wholesale drug distributor or pharmacy benefits manager is confidential and not a public record under Title 1, Chapter 13, except that the MHDO may share information:

Bureau of Insurance. With the Department of Professional and Financial Regulation, Bureau of Insurance, to the extent necessary for the bureau to enforce the provisions of Title 24-A, as long as prior notice is provided to reporting entities that information will be shared, and any information shared is kept confidential;

Aggregate. In the aggregate, as long as it is not released in a manner that allows the determination of individual prescription drug pricing contract terms covering a manufacturer, wholesale drug distributor or pharmacy benefits manager; and

Publicly Available. That is available, for purchase or otherwise, to the public.

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 8703(1), 8704(1), 8705-A and 8705-A(3), 8731, 8732, 8733, 8734, 8735 and 8737.
• EFFECTIVE DATE: February 4, 2020 – filing 2020-019
• EFFECTIVE DATE: December 10, 2021 – filing 2021-231
• EFFECTIVE DATE: July 8, 2023 – filing 2023-083
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 630 Uniform System for Reporting Baseline Information and Restructuring Occurrences for Maine Hospitals and Parent Entities

Code Me. R. 90-590 Ch. 630 Uniform System for Reporting Baseline Information and Restructuring Occurrences for Maine Hospitals and Parent Entities {#sec-90-590-ch.-630 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 630}

Summary: This Chapter contains the provisions for filing and specifies the information to be submitted to the Maine Health Data Organization regarding baseline information and major structural changes relevant to the restructuring of hospitals and their parent entities in Maine.

The provisions include:

Identifying those persons required to file baseline and restructuring information;

Establishing requirements for the format, content and schedule for filing baseline and restructuring information reports; and

Specifying compliance provisions.

1. Definitions.

For purposes of this chapter, the following terms shall have the following meanings:

Affiliate of or affiliated with. "Affiliate of or affiliated with" refers to a person or entity who directly or indirectly controls or is controlled by, or is under common control with, the person specified.

Affiliated company. "Affiliated company" means any health care provider or health care facility that is or will be effectively controlled by, or merged into, any of the following: the party initiating the restructuring, any subsidiary of said party, or any entity that will be created by or in conjunction with the restructuring.

Baseline information. "Baseline information" means corporate organizational information including locations of affiliate or subsidiary entities as of a specified date.

D. Health care facility. "Health care facility" means a public or private, proprietary or not-for-profit entity or institution providing health services including but not limited to, a radiological facility licensed under 22 M.R.S.A., chapter 160, a health care facility licensed under 22 M.R.S.A., chapter 405 or certified under chapter 405-D, an independent radiological service center, a federally qualified health center, a rural health clinic, or a rehabilitation agency certified or otherwise approved by the Division of Licensing and Certification within the Department of Health and Human Services, a home health care provider licensed under 22 M.R.S.A., chapter 419, a residential care facility licensed under 22 M.R.S.A., chapter 1665, a hospice provider licensed under 22 M.R.S.A., chapter 1681, a retail store drug outlet licensed under 32 M.R.S.A., chapter 117, a state institution and mental health facility as defined under 34-B M.R.S.A., chapter 1.

E. Hospital. "Hospital" means any acute care institution required to be licensed pursuant to 22 M.R.S.A., chapter 405.

F. MHDO. "MHDO" means the Maine Health Data Organization.

G. M.R.S.A. "M.R.S.A." means Maine Revised Statutes Annotated.

H. Parent entity. A "parent entity" means the person, organization or corporation that has control, directly or indirectly through majority ownership, affiliation, contract or membership of a hospital and/or any affiliated health care facility. A parent entity may be an individual hospital or, as a parent of a health care facility, considered a health care facility.

I. Person. "Person" means any individual, partnership, group practice, trust, estate, corporation, including associations, joint stock companies, cooperative, government or governmental subdivision or agency or other legal entity recognized by state law that is providing health care services.

J. Subsidiary. "Subsidiary" means a health care facility corporation, partnership, group practice, association or similar organization that is majority controlled or owned either directly or indirectly by a parent company.

2. Schedule and format for filing baseline information.

Every hospital and parent entity must file baseline information no later than ninety days from the effective date of these rules, as follows:

A current organizational chart or charts depicting the organizational structure and relationships, in terms of ownership, control, and membership, and the individual corporate tax status, tax identification number, and functional description, among the persons and health care facilities owned by or affiliated with the hospital and parent entity.

B. Hospitals must file, in addition to the chart described in section 2 (A):

1. A chart depicting the organizational structure, location and relationship of separate health service delivery sites or treatment centers that are not located in the same municipality as the hospital; and

2. For all physicians employed or owned by the hospital, the physician's name and, where applicable, the department of the hospital or the name of the group practice with which the physician is associated.

3. Restructuring.

The occurrences of structural or organizational changes that must be reported to the MHDO are the following:

Acquisitions. The buy out or takeover of one person, health care facility, hospital, and/or parent entity by another hospital or parent entity.

Consolidation. The dissolution of two or more hospitals or parent entities followed by the creation of a totally new entity.

Mergers. The joinder of two or more hospitals or the absorption of one hospital or parent entity by another.

Reorganization. The change in the operations of a hospital or parent entity or an addition to or increase in the types of health care services offered.

4. Content of the concise restructuring information narrative to be filed with the MHDO.

A. A cover sheet showing the names and addresses of the entities involved in the restructuring, the type of restructuring activity, and the name of a representative from the facility authorized to disclose and sign the restructuring documents.

B. An organizational chart or charts depicting the organizational structure and relationships, in terms of ownership, control, corporate status and membership, among the persons, health care facilities, hospitals, and/or parent entities included in the restructuring; and

C. For hospitals, in addition to information required in this section (A and B):

A chart depicting the organizational structure, location, tax status, tax identification number, functional description, and relationship of separate health service delivery sites or treatment centers; and,

A statement ensuring that the clinical and quality data submitted to the MHDO, as required under 22 M.R.S.A. sections 8704 (4), 8708, and 8708-A, will be filed separately, either coded or by batch, for every inpatient/acute care institution regardless of its location or licensure and for each separate outpatient site that is not located in the same municipality as the parent hospital.

5. Schedule and requirements for filing the concise restructuring information narrative.

Every hospital or parent entity must file with the MHDO the restructuring information for the preceding six month period as described in section 4 on January 1st and July 1st of each calendar year. If structural or organizational changes do not occur during the preceding sixth month period, the hospital or parent entity shall notify the MHDO via e-mail that restructuring information will not be filed.

6. Public access.

Information collected, processed and/or analyzed under this rule shall be subject to public release in accordance with Code of Maine Rules, 90-590, Chapter 120: Release of Data to the Public. The MHDO may initiate studies and/or analyses of restructuring information submitted and merge it with clinical and financial data as defined in 22 M.R.S.A. §8708, sub-§6.

7. Compliance.

The failure to file baseline and/or restructuring information in accordance with the provisions of this Chapter may be considered a violation under 22 M.R.S.A. §8705-A.

History

• STATUTORY AUTHORITY: 22 M.R.S.A. §§ 8701, 8704, 8705-A, 8708, 8708-A, and 8710.
• EFFECTIVE DATE: January 27, 1987 as "Review and Approval of Hospital Restructuring"
• REPEALED AND REPLACED: May 17, 2000 as "Uniform System for Reporting Baseline Information and Restructuring Occurrences Relevant to the Delivery and Financing of Health Care in Maine"
• NON-SUBSTANTIVE CORRECTIONS: November 26, 2000 - punctuation and spelling only
• AMENDED: October 9, 2006 – as “Uniform System for Reporting Baseline Information and Restructuring Occurrences for Maine Hospitals and Parent Entities,” filing 2006-436
• AMENDED: 90-590 Chapter 630 page 4

Chapter 632 Uniform Reporting System for Organizational Data from Parent Entities, Health Care Facilities, and Health Care Provider Entities

Code Me. R. 90-590 Ch. 632 Uniform Reporting System for Organizational Data from Parent Entities, Health Care Facilities, and Health Care Provider Entities. {#sec-90-590-ch.-632 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 632}

SUMMARY: This Chapter contains the provisions for: the identification of those entities required to file organizational data; data content, format, medium; submission schedule; reporting standards; and compliance.

Definitions.

Acquisitions. “Acquisitions” means the by-out or takeover of one person, health care facility, hospital, and/or parent entity by another hospital or parent entity.

Affiliate of or affiliated with. “Affiliate of or affiliated with” refers to a person, organization or entity who directly or indirectly controls or is controlled by, or is under common control with, the person specified.

Billing NPI. “Billing NPI” means the National Provider Identifier (NPI) of the entity or individual responsible for receiving payments from payers for the services provided. This can include a healthcare practitioner, a group practice, a hospital, or other legal entity that owns or is credentialed with insurance companies.

Consolidation. “Consolidation” means the dissolution of two or more hospitals or parent entities followed by the creation of a totally new entity.

Employed. “Employed” means a person is a licensed health care practitioner and is on the health care facilities or health care provider entity’s payroll system.

Employment Status. “Employment Status” means an “other” type of employment arrangement. This includes contracted, per-diem, outsource, etc.

End Date. “End Date” means the date a physician, nurse practitioner, or physician assistant employment/affiliation ended with the health system, hospital or practice.

Health care facility."Health care facility" means a public or private or proprietary or not-for-profit entity or institution providing health services as defined in 22 M.R.S.A., §8702 (4). The health care facilities required to file information under this rule are the following:

an ambulatory surgical facility licensed under 22 M.R.S.A., chapter 405, §1812-E,

an urgent care facility licensed under 22 M.R.S.A., chapter 405, § 1812-M,

a health care provider entity which provides health care services as prescribed by or performed under the general direction of a health care practitioner and that employs at least 50 health care practitioners,

a hospital licensed under 22 M.R.S.A., chapter 405, §1811,

a federally qualified health center or rural health clinic certified by the Division of Licensing and Certification within the Department of Health and Human Services or a certified community behavioral health clinic (CCBHC) certified by the Office of MaineCare Services within the Department of Health and Human Services.

Health care practitioner. “Health care practitioner” means physicians and physician associates licensed under 32 MRS Chapters 36 and 48, and 153 as well as advanced practice nurses licensed and approved under 32 MRS Chapter 31.

J. Mergers. “Mergers” mean the joinder of two or more hospitals or the absorption of one hospital or parent entity by another.

K. MHDO. “MHDO” means the Maine Health Data Organization.

M.R.S.A. “M.R.S.A.” means Maine Revised Statutes Annotated.

NPI. “NPI” means the National Provider Identification Number.

Non-affiliated or unaffiliated. “Non-affiliated or unaffiliated” means that the entity or individual operates independently without financial ties to a Maine hospital or a Maine healthcare system.

Organizational information. “Organizational information” means the information available in the MHDO Organizational Data Portal that health care facilities, hospital parent entities and health care provider entities must validate and update annually. The information includes but is not limited to the organizational structure and relationships, in terms of ownership, control, and membership. See Appendix A for the listing of data elements.

Outsourced Health Care Services. “Outsourced Health Services” means health care services that are provided by a third party, for example, pathology, radiology, and emergency department services.

Parent entity. A “parent entity” means the organization or corporation that has control, directly or indirectly through majority ownership, affiliation, contract or membership of a hospital and/or any affiliated health care facility.

Rendering NPI. “Rendering NPI” means the National Provider Identifier (NPI) of the individual who directly provides the medical care or service to the patient.

Reorganization. “Reorganization” means the change in the operations of a hospital or parent entity or an addition to or increase in the types of health care services offered.

Service Facility NPI. “Service Facility NPI” means the location of the service provided.

Start Date. “Start Date” means the date a physician, nurse practitioner, or physician assistant began the employment/affiliation with the health system, hospital or practice.

Subsidiary. “Subsidiary” means a corporation, partnership, association, or similar organization in which the parent entity owns or controls either directly or indirectly the majority of the activities, management, assets and/or stock.

Tax Identification Number. “Tax Identification Number” means the 9-digit Taxpayer Identification Number used by the Internal Revenue Service (IRS).

Registration, format and content of organizational data to be validated with the MHDO.

Each Parent Entity and Health Care Facility must identify and register contact information in the MHDO Organizational Data Portal for the official responsible for reviewing, editing, validating and attesting to the accuracy of the organizational information.

Annually, each Parent Entity and Health Care Facility shall review, edit as necessary, and validate the organizational information as detailed in Appendix A in the MHDO’s Organizational Data Portal at https://mhdo.maine.gov/hospital_portal.

C. For the first year of reporting, the MHDO will prepopulate the organizational data in the MHDO organizational data portal using existing data from other MHDO data streams. Each Parent Entity and Health Care Facility are responsible for reviewing, editing and validating the accuracy of the data.

Schedule for review, updating and validation of organizational data.

Parent Entities and Health Care Facilities are required to review, update, and validate organizational data with the MHDO by April 30 of each year.

4. Standards for data; notification; response.

Once the Parent Entity and Health Care Facility submit their attestation, the MHDO will review the organizational data.

After completion of the review, the MHDO will notify each Parent Entity and Health Care Facility within 30 days of the due date if discrepancies are found in the submitted data. The notification will specify the information that is missing or inaccurate.

Upon receipt of the notification, each Parent Entity and Health Care Facility shall respond to the MHDO within 30 days with corrected data or with information clarifying the discrepancies.

6. Public access.

Information collected, processed and/or analyzed under this rule shall be released to the public in accordance with 22 M.R.S.A. §8707, sub-§§1 and Code of Maine Rules 90-590, Chapter 120: Release of Data to the Public.

7. Compliance.

The failure to file organizational data in accordance with the provisions of this Chapter may be considered a violation under 22 M.R.S.A. §8705-A.

History

• STATUTORY AUTHORITY: 22 M.R.S.A., Sections 8704 (4) 8710, and 8719
• EFFECTIVE DATE (NEW): August 18, 2026 – filing 2026-186
• EFFECTIVE DATE (NEW): Appendix A
• EFFECTIVE DATE (NEW): MHDO Organizational Data Elements
• EFFECTIVE DATE (NEW): Data Element Names
• EFFECTIVE DATE (NEW): Parent Entities, Hospitals and Affiliations (includes both on and off campus locations, departments, clinics, and practices)
• EFFECTIVE DATE (NEW): Entity Name (Parent Entity, Hospital(s)Tax Identification NumberBilling NPIPrimary Taxonomy CodePhysical Location AddressPhoneFaxWebsite AddressAffiliated Entities Name (examples include, but are not limited to Physician/Specialty Care, ASF, FQHC, RHC,CCBHC,UCF)Tax Identification NumberBilling NPI Service Facility NPIPrimary Taxonomy CodePhysical Location AddressPhoneFaxWebsite AddressPhysician NamePhysician’s Credentials (MD’s D.O.s)Rendering NPIPrimary Taxonomy CodeEmployment Status Average # of hours worked weekly Start Date End Date Physician Assistant Name (P.A.)Rendering NPIPrimary Taxonomy CodeEmployment StatusAverage # of hours worked weekly Start Date End Date
• EFFECTIVE DATE (NEW): GG. Nurse Practitioner Name (N.P.)
• EFFECTIVE DATE (NEW): HH. Rendering NPI
• EFFECTIVE DATE (NEW): II. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): JJ. Employment Status
• EFFECTIVE DATE (NEW): KK. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): LL. Start Date
• EFFECTIVE DATE (NEW): MM. End Date
• EFFECTIVE DATE (NEW): Non-Affiliated Health Care Entities
• EFFECTIVE DATE (NEW): NN. Ownership Entity Name
• EFFECTIVE DATE (NEW): OO. Tax Identification Number
• EFFECTIVE DATE (NEW): PP. Billing NPI
• EFFECTIVE DATE (NEW): QQ. Service Facility NPI
• EFFECTIVE DATE (NEW): RR. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): SS. Physical Location Address
• EFFECTIVE DATE (NEW): TT. Phone
• EFFECTIVE DATE (NEW): UU. Fax
• EFFECTIVE DATE (NEW): VV. Website Address
• EFFECTIVE DATE (NEW): WW. Non-Affiliated Entity Name (examples include, but not limited to Physician/Specialty Care, ASF, FQHC, RHC, CCBHC, UCF )
• EFFECTIVE DATE (NEW): XX. Tax Identification Number
• EFFECTIVE DATE (NEW): YY. Billing NPI
• EFFECTIVE DATE (NEW): ZZ. Service Facility NPI
• EFFECTIVE DATE (NEW): AAA. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): BBB. Physical Location Address
• EFFECTIVE DATE (NEW): CCC. Phone
• EFFECTIVE DATE (NEW): DDD. Fax
• EFFECTIVE DATE (NEW): EEE. Website Address
• EFFECTIVE DATE (NEW): FFF. Physician Name
• EFFECTIVE DATE (NEW): GGG. Physician’s Credentials (MD’s D.O.s)
• EFFECTIVE DATE (NEW): HHH. Rendering NPI
• EFFECTIVE DATE (NEW): III. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): JJJ. Employment Status
• EFFECTIVE DATE (NEW): KKK. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): LLL. Start Date
• EFFECTIVE DATE (NEW): MMM. End Date
• EFFECTIVE DATE (NEW): NNN. Physician Assistant Name (P.A.)
• EFFECTIVE DATE (NEW): OOO. Rendering NPI
• EFFECTIVE DATE (NEW): PPP. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): QQQ Employment Status
• EFFECTIVE DATE (NEW): RRR. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): SSS. Start Date
• EFFECTIVE DATE (NEW): TTT. End Date
• EFFECTIVE DATE (NEW): UUU. Nurse Practitioner Name (N.P.)
• EFFECTIVE DATE (NEW): VVV. Rendering NPI
• EFFECTIVE DATE (NEW): WWW.Primary Taxonomy Code
• EFFECTIVE DATE (NEW): XXX. Employment Status
• EFFECTIVE DATE (NEW): YYY. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): ZZZ. Start Date
• EFFECTIVE DATE (NEW): AAAA. End Date
• EFFECTIVE DATE (NEW): Outsourced Health Care Services
• EFFECTIVE DATE (NEW): BBBB. Entity Name
• EFFECTIVE DATE (NEW): CCCC. Tax Identification Number
• EFFECTIVE DATE (NEW): DDDD. Billing NPI
• EFFECTIVE DATE (NEW): EEEE. Service Facility NPI
• EFFECTIVE DATE (NEW): FFFF. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): GGGG. Primary Location Address
• EFFECTIVE DATE (NEW): HHHH. Phone
• EFFECTIVE DATE (NEW): IIII. Fax
• EFFECTIVE DATE (NEW): JJJJ. Website Address
• EFFECTIVE DATE (NEW): KKKK. Physician Name
• EFFECTIVE DATE (NEW): LLLL. Physician’s Credentials (MD’s D.O.s)
• EFFECTIVE DATE (NEW): MMMM. Rendering NPI
• EFFECTIVE DATE (NEW): NNNN. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): OOOO. Employment Status
• EFFECTIVE DATE (NEW): PPPP. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): QQQQ. Start Date
• EFFECTIVE DATE (NEW): RRRR. End Date
• EFFECTIVE DATE (NEW): SSSS. Physician Assistant Name (P.A.)
• EFFECTIVE DATE (NEW): TTTT. Rendering NPI
• EFFECTIVE DATE (NEW): UUUU. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): VVVV. Employment Status
• EFFECTIVE DATE (NEW): WWWW. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): XXXX. Start Date
• EFFECTIVE DATE (NEW): YYYY. End Date
• EFFECTIVE DATE (NEW): ZZZZ. Nurse Practitioner Name (N.P.)
• EFFECTIVE DATE (NEW): AAAAA. Rendering NPI
• EFFECTIVE DATE (NEW): BBBBB. Primary Taxonomy Code
• EFFECTIVE DATE (NEW): CCCCC. Employment Status
• EFFECTIVE DATE (NEW): DDDDD. Average # of hours worked weekly
• EFFECTIVE DATE (NEW): EEEEE. Start Date
• EFFECTIVE DATE (NEW): FFFFF. End Date

Chapter 730 Interagency Reporting of Cancer Registry and Vital Statistics Data

Code Me. R. 90-590 Ch. 730 Interagency Reporting of Cancer-Incidence Registry and Vital Statistics Data {#sec-90-590-ch.-730 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 730}

A joint rule with

10-144 DEPARTMENT OF HEALTH AND HUMAN SERVICES

MAINE CENTER FOR DISEASE CONTROL AND PREVENTION - DATA, RESEARCH AND VITAL STATISTICS

Chapter 730: INTERAGENCY REPORTING OF CANCER-INCIDENCE REGISTRY AND VITAL STATISTICS DATA

SUMMARY: This joint rule provides for the reporting of cancer data and vital statistics data by the Department of Health and Human Services, Maine Center for Disease Control and Prevention; Data, Research, and Vital Statistics to the Maine Health Data Organization, pursuant to Public Law 2021, chapter 423.

The provisions include:

Identification of the agencies involved and their reporting requirements;

Establishment of requirements for the content, format, method, and reporting periods for the data;

Data integration; and

Confidentiality.

Definitions

Unless the context indicates otherwise, the following expressions shall have the following meanings:

1. Department. “Department”means the State of Maine, Department of Health and Human Services, Maine Center for Disease Control and Prevention.
2. DRVS. “DRVS” means the Data, Research, and Vital Statistics office within the Department.
3. Encryption. “Encryption” means the process of converting data to an unrecognizable form, in order to protect protected health information so that only authorized parties can view it. This includes data files and storage devices, as well as data transferred over wireless networks.
4. Event. “Event”means a birth, death, fetal death, marriage, divorce, annulment, or domestic partnership registration or termination.
5. Identifying data. “Identifying data” means the names and street addresses of the registrant(s) and other individuals named on or the subject of a report or record registered by the State Registrar, including the date of birth and the month and day of the event. The year that an event occurred is not identifying data.

F. Interstate data exchange. “Interstate data exchange”means a process whereby registration areas agree to exchange vital statistics data, reports and records or cancer diagnosis data with the state registrars of other states, territories, and neighboring countries where the individual resides.

Interstate exchange cancer cases. “Interstate exchange cancer cases” means a cancer case in the Maine Cancer Registry where the only information on the cancer was received through interstate data exchange. There is no other report of the case submitted by any other institution.

MHDO. “MHDO”means the Maine Health Data Organization.

Protected Health Information (PHI). “Protected Health Information” includes identifying data and any individually identifiable health information (including any combination of data elements) that relates to the past, present, or future physical or mental health or condition of an individual; or the past, present or future payment for the provision of health care to an individual; and (a) identifies, directly or indirectly, an individual, or (b) with respect to which there is a reasonable basis to believe that the information can be used to identify an individual patient. PHI also includes individually identifiable registrant information.

Registrant. “Registrant” means the individual(s) to whom the record pertains: the child named on a birth certificate, the decedent named on a death certificate, and the subject of cancer registry data.

Vital Records. “Vital records” means reports of live birth, death, fetal death, marriage, and data related thereto which have been accepted for registration and incorporated into the official records from the system of vital statistics.

Vital Statistics Data. “Vital statistics data” means the data derived from paper based or electronic vital records and reports.

Data Requirements and Exclusions

DRVS shall report Maine Cancer Registry data and data related to the registration of vital statistics, including identifying data or protected health information (PHI), to the MHDO, in accordance with this rule.

1. Cancer Registry Data Elements: - 1. Reporting Facility/Physician 2. Registrant’s Name (first name, middle initial, last name, and, if applicable, maiden name) 3. Date of Birth 4. Address at Diagnosis; including 1. City or Town of Residence 2. County of Residence 3. State of Residence 4. Zip Code 5. Sex/Gender 6. Social Security Number, if available 7. Race 8. Attending Physician 9. Referring Physician 10. Date of Diagnosis 11. Topography of Cancer (ICD) 12. Morphology of Cancer (ICD) 13. Usual Occupation 14. Usual Industry 15. Stage of Disease at Diagnosis (AJCC coding system) 16. Patient's Mailing Address 17. Date of Admission 18. Laterality 19. Grade 20. Spanish/Hispanic Origin 21. Diagnostic Confirmation 22. Summary Stage 23. Date of First Course of Treatment (when available in the medical record) 24. Type of First Course of Treatment (when available in the medical record)
2. Vital Statistics Birth Data Elements: - 1. Registrant’s Name (first name, middle initial, last name, suffix and, if applicable, maiden name) 2. Date of Birth 3. Sex/Gender 4. Race 5. Hispanic Indicator 6. Event Location

City or Town

County

State

Zip Code

• • 1. Registrant’s Parent(s)

Last Name (including maiden name, if applicable/available)

First Name and Middle Initial

Date of Birth

Sex/Gender

Race

Hispanic Indicator

Residence City or Town

Residence County

Residence State

Residence Zip Code

Vital Statistics Death Data Elements:

• • 1. Registrant’s Name (first name, middle initial, last name, suffix and, if applicable, maiden name) 2. Date of Birth 3. Sex/Gender 4. Social Security Number 5. Race 6. Hispanic Indicator 7. Residence City or Town 8. Residence County 9. Residence State 10. Residence zip 11. Event Location

City or Town

County

State

Zip Code

• • 1. Cause of death ICD-10 code

Interstate Data Exchange Exclusions. The Maine Cancer Registry is a signatory to the North American Association of Central Cancer Registries’ National Interstate Data Exchange Agreement which prohibits re-release of interstate exchange only cases. Data which is from interstate exchange only cases will be excluded and not transferred to MHDO.

Filing Requirements

File Format. The file format will be an MHDO-provided template for each dataset. DRVS will use the current version of the appropriate template. The file format for DRVS will contain the data elements listed and described in subsections 2(A), 2(B), 2(C) and not excluded by 2(D). File naming conventions will be specified in the instructions included with each template.

Filing Method. Data files must be submitted via Secure File Transfer Protocol (SFTP). Files are required to be compressed and encrypted before uploading. This file-level encryption will ensure the confidentiality of all data that are submitted to the MHDO portal, not just individual fields.

Filing Period. DRVS will submit data sets to MHDO based on the following schedule:

• 1. Historic data from January 2015 to December 2021 will be submitted for births by April 30, 2022 and deaths by June 30, 2022 in yearly incremental files. 2. Annually, birth files will be submitted by April 30^th following the end of the calendar year and death files by June 30^th. 3. Annually, cancer incidence data will be submitted by April 30^th for the diagnosis year that was submitted to the National Program on Cancer Registries in November of the prior year (e.g., by April 30, 2022 MHDO will receive diagnosis year 2019 data from MCR).

Other Requirements. The data reported will be assigned an MHDO identifier and becomes MHDO data.

Confidentiality

Information collected, processed and/or analyzed under this rule shall be subject to release to the public or retained as confidential information in accordance with 22 M.R.S. Chapter 1683 and 90-590 CMR Chapter 120 and this rule, unless prohibited by state or federal law.

History

• STATUTORY AUTHORITY: 22 M.R.S. §§ 1406-A, 2706 sub-§2-A, and 8715-A; PL 2021 ch. 423
• EFFECTIVE DATE: December 14, 2021 – filing 2021-246, 247

Chapter 800 Uniform Reporting of Wholesale Acquisition Costs for Insulin

Code Me. R. 90-590 Ch. 800 Uniform Reporting of Wholesale Acquisition Costs for Insulin. {#sec-90-590-ch.-800 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 800}

SUMMARY: This Chapter provides for the reporting of acquisition costs of insulin from manufacturers of insulin to the Maine Health Data Organization, pursuant to Public Law 2023, Chapter 610.

The provisions include:

Identification of the manufacturers required to report;

Establishment of requirements for the content, format, method, and time frame for filing insulin wholesale acquisition cost data;

Establishment of standards for the data reported; and

Compliance provisions.

Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

1. Category of Insulin. “Category of Insulin” means rapid-acting, short-acting, immediate- acting, long-acting and premixed insulin for which at least 2 licenses have been issued by the federal Food and Drug Administration and are actively marketed pursuant to such licensure in a category.
2. Insulin. “Insulin” has the same meaning as in Title 32, section 13786-D, subsection 1, paragraph A and includes insulin or an insulin pen that is licensed under the federal Public Health Service Act, 42 United States Code, Section 262(a) or 262(k).
3. Manufacturer. “Manufacturer” means an entity that manufactures or repackages, and sets the wholesale acquisition cost for, prescription drugs that are distributed in the State.
4. MHDO. “MHDO” means the Maine Health Data Organization.
5. M.R.S. “M.R.S.” means Maine Revised Statutes .
6. National Drug Code (NDC). “National Drug Code (NDC)” means the three-segment code maintained by the federal Food and Drug Administration that includes a labeler code, a product code, and a package code for a drug product and that has been converted to an 11-digit format consisting of five digits in the first segment, four digits in the second segment, and two digits in the third segment. A three-segment code shall be considered converted to an 11-digit format when, as necessary, at least one “0” has been added to the front of each segment containing less than the specified number of digits such that each segment contains the specified number of digits.
7. Pricing unit. “Pricing unit” means the smallest dispensable amount of a prescription drug product that could be dispensed or administered.

Wholesale acquisition cost (WAC). “Wholesale acquisition cost (WAC)” means a manufacturer’s published list price for sale of a prescription drug product with a unique NDC to any wholesale drug distributor or other entity that purchases a prescription drug directly from the manufacturer, not including any price concessions.

Submission Requirements

Manufacturers shall submit to the MHDO or its designee complete wholesale acquisition costs of insulin data sets in accordance with the requirements of this section. Data may be submitted by corporate entities or their subsidiaries. Manufacturers that engage subcontractors or other third parties to submit information on their behalf warrant the completeness and accuracy of all data submitted.

1. Submission. Each manufacturer required to report shall complete an online form, or update an existing one, via the MHDO Prescription Drug Price Data Portal web interface (https://mhdo.maine.gov/pharma_portal/) by February 15^th of each year. It is the responsibility of the manufacturer to complete, as needed, all company and contact information.
2. Submission Method. Data files must be submitted via the MHDO Prescription Drug Price Data Portal web interface (https://mhdo.maine.gov/pharma_portal/). E-mail attachments shall not be accepted.
3. File Format. The file format will be an MHDO standardized template submitted via an online form in the MHDO Prescription Drug Price Portal web interface. Submitters must use the current version of the appropriate template. The online form format will contain the data elements found in the Reporting Specifications described in subsection 2(H) .
4. Codes. Unless otherwise specified, only the code sources listed and described in the templated form are to be utilized. Specific or unique coding systems shall not be permitted.
5. Submission Deadline. Manufacturers of Insulin, shall report by February 15^th of each year, as described in subsection 2(A).
6. Rejection of Submissions. Failure to conform to the requirements of subsections B, C, or D of this Section shall result in the rejection of the data file(s). All rejected files must be corrected and resubmitted to the MHDO or its designee within 30 days.
7. Replacement of Data Files. A manufacturer may replace data submitted to the MHDO with updated data within 90 days of the updated information becoming available. Any replacements after this period must be approved by the MHDO.
8. Reporting Specifications. For each insulin drug product NDC produced by the manufacturer in each category of insulin, the manufacturer must report the following data. If an insulin product does not meet one of the defined categories it is not subject to reporting.

Wholesale Acquisition Costs of Insulin Data

Data Element Name

Description/Codes/Sources

NDC

The national drug code maintained by the FDA for the drug product that includes the labeler code, product code, and package code. A drug’s NDC is typically expressed using 11 digits in a 5-4-2 format (xxxxx-yyyy-zz). The first five digits identify the manufacturer, the second four digits identify the product and strength, and the last two digits identify the package size and type. Do not leave blank.

Category of Insulin

Category of Insulin Codes:

1 – Rapid-acting

2 – Short-acting

3 – Intermediate-acting

4 – Long-acting

5 – Premixed

WAC Amount per NDC

The wholesale acquisition cost of the drug product per NDC on the first day of the calendar year for which data is reported.

WAC Amount per Pricing Unit

The wholesale acquisition cost of the drug product per pricing unit on the first day of the calendar year for which data is reported.

Evaluation; Notification; Response

1. Evaluation. The MHDO or its vendor shall evaluate each submission in accordance with the following standards: 1. When applicable, only an eligible code value for a specified data element shall be accepted; 2. Coding values indicating “data not available”, “data unknown”, or the equivalent shall not be used for individual data elements unless specified as an eligible value for the element.
2. Notification. Upon completion of the data evaluation, the MHDO or its designee will promptly notify each manufacturer whose data submissions do not satisfy the standards for any filing period. This notification will identify the specific file and the data elements within them that do not satisfy the standards.
3. Response. Each manufacturer notified under subsection 3(B) will respond within 30 days of the notification by making and reporting the changes necessary to satisfy the standards.

Compliance

Certification of accuracy. A notification or report to the MHDO by a manufacturer shall include a signed, written certification of the notification or report’s accuracy. Reporting entities will be allowed to attest to the accuracy of their notification or report through the MHDO Prescription Drug Price Data Portal web interface. Confirmation will be documented electronically and will count as the written certification.

Audit. With a 30-day notice, the MHDO may audit the finalized data submitted by a manufacturer, and that entity shall pay for the costs of the audit. The MHDO will consider recommendations from the manufacturer as to the scope of the audit and the selection of the independent auditor.

Corrective action plan. The MHDO may require a manufacturer to develop a corrective action plan to correct any deficiencies in compliance discovered during an audit. The corrective action plan shall include, in writing: the specific requirement to be extended; an explanation of the cause; the methodology proposed to eliminate the necessity of the extension; and the time frame required to come into compliance.

Enforcement. The failure to file, report, or correct wholesale acquisition costs of insulin data sets when required in accordance with the provisions of this Chapter may be considered a civil violation under 22 M.R.S. §§8705-A, 8735, and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures .

Extensions to Data Submission Requirements

If a manufacturer, due to circumstances beyond its control, is temporarily unable to meet the terms and conditions of this Chapter, a written request must be made to the Compliance Officer of the MHDO as soon as it is practicable after the manufacturer has determined that an extension is required. The written extension request shall include the same elements as the corrective action plan in Section 4(C).

Confidentiality

Information provided to the MHDO as required by this rule by a manufacturer is confidential and not a public record under Title 1, chapter 13, except that the MHDO may share information:

1. Bureau of Insurance. With the Department of Professional and Financial Regulation, Bureau of Insurance, to the extent necessary for the Bureau to enforce the provisions of Title 24-A, as long as prior notice is provided to reporting entities that information will be shared, and any information shared is kept confidential;
2. Aggregate. In the aggregate as long as it is not released in a manner that allows the determination of individual prescription drug pricing contract terms covering a manufacturer, wholesale drug distributor or pharmacy benefits manager; and
3. Publicly Available. That is available, for purchase or otherwise, to the public.

History

• STATUTORY AUTHORITY: 22 M.R.S. §§8703(1), 8704(1),8705-A, 8731, 8732, 8733, 8734, 8735 and 8737.
• EFFECTIVE DATE (NEW): May 15, 2025 – filing 2025-087 (Major Substantive)

Chapter 841 Uniform Reporting System for Hospital Price Transparency

Code Me. R. 90-590 Ch. 841 Uniform Reporting System for Hospital Price Transparency {#sec-90-590-ch.-841 omnilex-key=us-me-regs-official--dept-independent-agencies--90-590 Ch. 841}

SUMMARY: Public Law 2023, Chapter 584, requires Maine hospitals comply with the price transparency requirements established in 45 Code of Federal Regulations, Part 180, Subparts A and B; and it requires hospitals to provide price transparency data in a standardized format as established by rule by the Maine Health Data Organization and provides that a hospital that fails to comply with the price transparency requirements established by the Maine Health Data Organization may be subject to a fine for noncompliance.

This Chapter establishes provisions for:

Identification of the hospitals required to report;

Establishment of requirements for the content, format, submission method, and time frame for filing hospital price transparency data; and

Compliance provisions.

Definitions

Unless the context indicates otherwise, the following words and phrases shall have the following meanings:

1. CMS Validator Tool. “CMS Validator Tool” means the tool available at https://cmsgov.github.io/hpt-tool/online-validator/ that checks Hospital Price Transparency files against CMS form and manner requirements (45 CFR 180.50(c)(2)). This tool does not necessarily certify that files fully comply with all Hospital Price Transparency requirements at 45 CFR 180.50.
2. Code Type. “Code Type” means the name of the standard coding system of billing codes or accounting codes provided for each individual or bundled service.
3. Hospital. "Hospital" means any type of hospital institution required to be licensed pursuant to 22 M.R.S., Chapter 405.
4. Hospital Price Transparency rule. “Hospital Price Transparency rule” refers to 45 CFR Part 180 that requires each hospital operating within the United States, for each year, to establish, update, and make public a list of the hospital's standard charges for items and services provided by the hospital, including for diagnosis-related groups (DRGs). Part 180.50 outlines the federal requirements for making public hospital standard charges for all items and services in a machine-readable file.
5. Machine-Readable File. “Machine-Readable File means a single digital in a format that can be read by computers and includes the data requirements as specified by the federal requirements.
6. MHDO. "MHDO" means the Maine Health Data Organization.
7. M.R.S. “M.R.S.” means Maine Revised Statutes.
8. Payer Name. “Payer Name” means the name of the third-party payer that is, by statute, contract, or agreement, legally responsible for payment of a claim for a healthcare item or service.
9. Plan Name. “Plan Name” means the name of the payer’s specific plan associated with the standard charge.
10. Standard Hospital Charge Fields. “Standard Hospital Charge Fields” means the rates charged and contextual information for services that do not vary by payer and plan.
11. Standard Negotiated Charges Fields. “Standard Negotiated Charges Fields” are rates that a hospital has negotiated with a third party payer for an item or service and the related percentage and algorithm.

Registration and Submission Requirements

1. Registration. Each Hospital shall complete an online registration form, or update an existing one, via the MHDO Hospital Data Portal web interface (https://mhdo.maine.gov/hospital_portal) by April 30, 2026, and January 30^th of each year thereafter. It is the responsibility of the reporting entity to complete, as needed, all company and contact information, provide website URL to find price transparency files and timeframe relevant to the file.
2. Submission method. Pursuant to federal requirements, each Hospital must ensure that updated machine-readable files are posted on a public website at the URL provided in registration. Hospitals shall provide notice to MHDO 30 days prior to changing the URL where price transparency data are uploaded.
3. Submission deadline. Hospitals shall publish updated files annually by November 1^st.

Format and Content of Hospital Price Transparency Data

Hospitals covered under this chapter shall upload files in accordance with the requirements of this section and the Hospital Price Transparency rule. Hospitals that engage third parties to develop files on their behalf warrant the completeness and accuracy of all data submitted.

1. File content. Each Hospital shall include the required data elements as established by CMS.
2. File format and name. Each Hospital must conform files to the CMS CSV “tall” template layout, data specifications, and data dictionary.The file must use the naming convention specified by CMS.Hospitals will be required to attest to the use of the CMS Validator Tool prior to posting files on their website to confirm compliance with CMS format requirements.
3. Codes. Any codes used by the hospital for purposes of accounting or billing for the item or service, including, but not limited to, Current Procedural Terminology (CPT) code, the Healthcare Common Procedure Coding System (HCPCS) code, the Diagnosis Related Group (DRG), the National Drug Code (NDC), or other common payor identifiers shall be included within eligible values for the field. 1. When used, NDCs shall be provided in a standard 11-digit format with no hyphens, spaces, or other non-numeric characters. 2. When revenue center codes are used, CPT codes, HCPCS codes, and NDCs shall be reported where applicable. When provided, CPT and HCPCS codes shall be assigned to the correct revenue centers. 3. Submitted codes shall be valid, non-deprecated codes of the submitted type as of a year prior to file updated date. 4. Values in the Modifiers field shall be valid, standard two-digit HCPCS modifiers. When submitting more than one modifier, modifiers shall be separated by commas. When the Modifiers field is present, at least one submitted code on the record must be a CPT or HCPCS code. 5. The Service Description shall be identical across payers and plans when representing the same service or Charge Description Master value. 6. Each code representing a single service should have a unique service description. 7. When the individual item or service is provided in the hospital inpatient setting, no submitted code on the record shall be a CPT, HCPCS, or CDT code. 8. When the individual item or service is provided in the outpatient department setting, no submitted code on the record shall be a DRG, MS-DRG, R_DRG, S_DRG, APS-DRG, or APR-DRG code. 9. CPT codes shall be submitted with code_type label as CPT and not HCPCS, and MS-DRG, R_DRG, S_DRG, APS-DRG, or APR-DRG codes shall be submitted with code_type label as specific as possible and not DRG.
4. Charges. 1. Dollar Amounts- Fields specified to contain a dollar amount shall be correctly formatted to include two decimal places. 2. Any record with a Standard Negotiated Charge Field shall also have the related Standard Hospital Charge Field present on the same row. 3. Service-plan combinations without negotiated charges or where individual service reimbursement is bundled into a DRG rate should not be provided as separate items in the transparency files unless they have an applicable separate charge.
5. Payer and Plan Specific Identification – MHDO will provide hospitals with standardized Payer and Plan name information to use for data submissions. Hospitals shall list only valid Payer Name and Plan Name information when providing negotiated charges for a description of service. Non-standardized Payer and Plan names will be flagged as being out of compliance.

Determination of Material Compliance; Notice

1. Standards. Files will be validated based on formatting requirements established in the Hospital Price Transparency rule and sections 2 and 3 above. The MHDO will download all updated files quarterly and validate files no later than 60 days after the file download date in accordance with the following schedule:

File Download Date

February 1

May 1

August 1

November 1

1. Notification. Upon completion of this validation, the MHDO shall notify any hospital that is not in material compliance. This notification will identify the elements of the file that do not satisfy the standards.
2. Corrective action plan. The MHDO may require a hospital to develop a corrective action plan to correct any deficiencies in compliance within 60 days.
3. Enforcement. The failure to report hospital price transparency data in accordance with the provisions of this Chapter may be considered a civil violation under 22 M.R.S. § 8705-A and Code of Maine Rules 90-590, Chapter 100: Enforcement Procedures . Additionally, the MHDO may report non-compliance to the CMS to assist its monitoring and enforcement under 45 CFR §180.70(a)(2)(i, ii).

Extensions to Data Submission Requirements. If a hospital, due to circumstances beyond its control, is temporarily unable to meet the terms and conditions of this Chapter, a written request must be made to the Compliance Officer of the MHDO as soon as practicable after the hospital has determined that an extension is required.

History

• STATUTORY AUTHORITY: PL 2023, Chapter 584; 22 M.R.S. Ch 1683 §§ 8704(1, 4), 8705-A, §1718-I(1,2,4)
• APAO ACCESSIBILITY CHECK (Word): March 3, 2026
• EFFECTIVE DATE: March 8, 2026 (filing 2026-057)

90-668 State Charter School Commission

Chapter 1 Commission Organization and Operation

Code Me. R. 90-668 Ch. 1 Commission Organization and Operation {#sec-90-668-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--90-668 Ch. 1}

SUMMARY: This rule describes the organization and operation of the Maine Charter School Commission.

SECTION 1: ORGANIZATION

Commission. The Maine Charter School Commission consists of seven (7) members who are appointed by the State Board of Education for 3-year terms. Three (3) members must be members of the State Board of Education; the other four (4) members must be nominated by the three (3) State Board members and approved by a majority vote of the State Board of Education. Members must satisfy the experience requirements, and the State Board must satisfy the appointment process, set forth in 20-A MRSA Section 2405(8). Any employee, trustee, agent, or representative or the Commission may not simultaneously serve as an employee, trustee, agent, representative, vendor or contractor of a public charter school authorized by the Commission

Members may not serve more than three (3) consecutive terms, but may serve again after not serving on the Commission for at least one term. A Commission member who is a member of the State Board of Education serves on the Commission only during that person’s membership on the State Board of Education; upon expiration of that person’s State Board membership, the position on the Commission becomes vacant and must be filled in the manner provided for filling vacancies.

A vacancy on the Commission must be filled in the same manner as the same position was filled, and must meet any applicable requirements of the appointment process set forth in 20-A MRSA Section 2405(8). A vacancy is filled for the remainder of the unexpired term. If a member serves more than one and one-half (1.5) of an unexpired term, that service counts as one term for purposes of the term limitations described above. A member who vacates by means of resignation must provide written notice to the Commission within thirty (30) days of the effective date of the resignation.

A member of the Commission may be removed, by a majority vote of the State Board of Education, for failure to perform the duties of office. The Commission may recommend to the State Board of Education the removal of a Commission member for failure to attend three (3) consecutive Commission meetings either in person or by telephone or electronic means, unless the absences are excused by the Commission. Attendance by telephone or by electronic means counts as attendance only for purposes of this section. In addition, public behavior by a Commission member that diminishes the integrity of the Commission may warrant a recommendation of removal to the State Board of Education. Recommendations of removal require a majority vote of the Commission members.

Officers. The Commission shall elect a chair and such other officers as may be necessary to conduct its business. Officers must include a Chair and a Vice-Chair. The Commission may create additional officer positions by majority vote. Officers must be elected by a majority vote of the Commission members annually at the first meeting in July.

The Chair shall: preside over all Commission meetings; prepare, in consultation with the members, the agenda for each meeting; sign all Commission correspondence, reports and other communications; and shall be generally responsible for coordinating and directing the work of the Commission, in collaboration with the other Commission members, including the oversight of an Executive Director of the Commission or the administration of an agreement for the services of an Executive Director, should the Commission secure such services.

The Vice-Chair, in the absence of the Chair, shall have all the powers and duties of the Chair, and may assume other responsibilities at the direction of the Chair. In addition, if no Secretary is elected, the Vice-Chair shall ensure that proper notice of Commission meetings is provided, and that meetings are accurately recorded and meeting minutes are made available to the Commission for review, approval and public posting. The Vice-Chair shall also serve as facilitator of Commission meetings.

Each officer’s term is one (1) year. Officers may not serve more than two (2) terms, but may serve again after not serving in that office for at least one (1) term. Upon expiration of an officer’s term, the position becomes vacant and must be filled in the manner provided for election of officers.

A vacancy in an officer’s position must be filled in the same manner as the same position was filled, and it is filled for the remainder of the unexpired term. If an officer serves more than one half of an unexpired term, that service counts as one (1) term for purposes of the term limitations described above. An officer who vacates by means of resignation must provide written notice to the Commission within thirty (30) days of the effective date of the resignation.

Commission Work Groups. The Commission may establish work groups for the purpose of conducting the work of the Commission. All work performed by the work groups is subject to the review and approval of the Commission. A work product of a work group must be adopted by the Commission pursuant to a vote at a Commission meeting in order to be considered the work of the Commission.

Representing the Commission. The chairperson is authorized to represent and speak on behalf of the Commission. The Commission chair may also authorize other Commission members to represent and speak on behalf of the Commission. When a Commission member is authorized to speak on behalf of the Commission, the member must clearly state that the communication being provided is representative of the Commission.

Office and Staff. The Commission shall, in keeping with its authorizing responsibilities, engage experts, professional and administrative staff separate from the Department of Education.

The Executive Director supervises the staff and is responsible for all day-to-day operations and to implement the goals and objectives of the Commission. In the interim between Commission meetings, the Executive Director reports to the Chair.

The Commission’s office is located at the Burton Cross State Office Building, 5th Floor, 111 Sewell Street, Augusta, Maine, where any filing or written submission may be made by hand delivery between the hours of 8 AM and 5 PM on any day when State government offices are open. The address for all correspondence by mail is 182 State House Station, Augusta, Maine 04333-0182. Filings by telephone facsimile to 207-287-2109 or by electronic mail to mcsc@maine.gov may be transmitted at any time if otherwise permitted by statute, rule or application requirements.

All records of the Commission are maintained in these offices, where they are available for inspection or copying, except as particular records are made confidential by law. The cost of copying is set by the Executive Director, subject to reasonable limitations and approval of the Commission

SECTION 2: MEETINGS

Frequency. The Commission shall hold regularly scheduled meetings. Special meetings of the Commission may be called by the Chair or by a majority of the Commission members. Commission members must be given at least twenty-four (24) hours written notice of the time, place and purpose of a special meeting; if such written notice is not possible, notice must be provided by telephone, telephone facsimile or email with confirmation of receipt required.

Public Notice. Notice of, and the agenda for, all regular meeting of the Commission shall be posted on the Commission’s website (www.maine.gov/csc) at least seven (7) days before the meeting. Notice of any special meeting of the Commission shall be provided in the same manner as notice of regular meetings is provided to Commission members.

Public Participation. All meetings of the Commission are open to the public except that an executive session may be called, in accordance with 1 MRSA Section 405, by a public, recorded vote of 3/5 of the members of the Commission present and voting.

Agenda and Rules of Conduct. The Chair shall provide a written agenda for each regular meeting of the Commission. The agenda must set forth the items to be considered, including any scheduled upcoming appearances of Commission members, as well as the date, time and location of the meeting. The agenda must be mailed, or sent by either telephone facsimile or email to each Commission member at least seven (7) days before the meeting. The agenda is subject to amendment by Commission members at the opening of the Commission meeting. Commission meetings shall be governed by Robert’s Rules of Order.

Quorum and Voting. Decisions made by the Commission must be made at a meeting at which a quorum is present. Four Commission members constitute a quorum. Commission members are entitled to one (1) vote on each issue or motion to come before the Commission at all regular and special meetings held. When it is impossible or impractical for a Commission member to travel to attend a Commission meeting in person, the Commission member may participate in the meeting by telephone; that member will not be counted in the quorum. Neither proxy nor absentee voting is permitted.

For the approval of an application to authorize a public charter school a roll call vote with five (5) affirmative votes or two-thirds (2/3) of the current Commission membership is required. The Chair will call the roll alphabetically and will vote last. The Vice Chair of the Commission will call the roll when the Commission Chair served as Chair of the application review committee.

No Commission member shall cast a vote on any matter that would provide direct financial benefit to that member or the member’s spouse, family member, or business partner or otherwise give the appearance of a conflict of interest under State law.

Minutes. The Vice-Chair shall ensure that minutes of each meeting of the Commission are prepared and are provided to the Commission members for their review and approval as the official record of the meeting.

The staff will prepare minutes of each business meeting of the Commission. Minutes shall record all actions of the Commission. If votes are not unanimous, the names of those voting in the minority should be recorded. Approved minutes are to be posted on the State Charter School Commission web site.

The minutes will record any executive session of the Commission and its subject matter, but will not report the proceedings of the executive session. Likewise, the minutes will not be taken of any public hearing held by the Commission, since hearings are separately recorded.

SECTION 3: REPORTS AND RECORDS

Reports. The Commission shall submit such reports as are required under applicable State or federal law, or as requested by the Commissioner of the Department of Education, including an annual report to the Commissioner within sixty (60) days of the end of each school fiscal year in accordance with the requirements set forth in 20-A MRSA Section 2405(4).

Records. The Commission shall maintain, at its Augusta office, all records related to its work.

SECTION 4: FUNDING AND EXPENDITURES

Funding. The Commission shall, in keeping with its authorizing responsibilities, seek and receive state, federal and private funds.

Reimbursement. A Commission member may not receive compensation, but may be reimbursed for travel expenses, in accordance with State policy.

History

• STATUTORY AUTHORITY: Title 20-A §2405 8.B.
• EFFECTIVE DATE: June 16, 2013 – filing 2013-129
• EFFECTIVE DATE: 90-668 - Maine Charter School Commission – Chapter 1, Commission Organization and Operation page 5

Chapter 2 Procedures for Commission Authorization of Public Charter Schools

Code Me. R. 90-668 Ch. 2 Procedures for Commission Authorization of Public Charter Schools {#sec-90-668-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--90-668 Ch. 2}

SUMMARY: This rule sets forth the process by which the State Charter School Commission solicits, accepts and reviews applications for the formation of public charter schools. The rule also sets forth the performance indicators that will be used as the performance framework for any approved application, and minimum requirements for a charter contract.

SECTION 1. DEFINITIONS

1. Commission

“Commission” means the State Charter School Commission formed pursuant to Title 20-A of the Maine Revised Statutes, Chapter 112.

2. Department

“Department” means the Maine Department of Education.

SECTION 2. ISSUANCE OF REQUEST for PROPOSALS; INFORMATION

1. Issuance; notice

Before accepting public charter school applications, the Commission must issue a Request for Proposals (RFP) that complies with Maine law, Title 20-A, Maine Revised Statutes, chapter 112 and with relevant rules adopted by the Commission or the Department of Education.

In addition to statutorily-required elements, the RFP must state whether the Commission intends to limit the number of applications it will approve in response to that RFP. The decision to issue a RFP, and the timing of RFP issuance, are matters of Commission discretion.

The Commission must provide notice of RFP issuance to the general public and to interested parties, in accordance with statute, department rule and Commission rule.

2. Informational meeting; written responses

The Commission may conduct one or more public informational meetings to answer questions about the RFP, following the issuance of the RFP. Notice of the meeting must be provided on the Commission’s Website, to the department and to any person who has asked the Commission for notice of Commission activities. The Commission may provide written responses on the Commission’s Website to written questions submitted to the Commission in addition to or in lieu of conducting an informational meeting.

3. Limit on discussion of applications

After receipt of the application by the Commission, all correspondence or clarifying questions between applicant and Commission will be directed to the Executive Director. Commission members may not discuss any potential or actual application with a proposed or actual applicant during the period between the issuance of the RFP and the final Commission vote on the applications submitted in response to that RFP, except during an interview held pursuant to section 6.

SECTION 3. LETTER OF INTENT

1. Timing and content of letter

An entity that intends to submit an application in response to an RFP must file a Letter of Intent with the Commission not later than 15 days after the RFP is issued. The Letter of Intent must specify:

Name of the entity that intends to apply;

Location of the intended school;

Grade levels to be served by the school;

School program design (150 words or less) - attach a brief description including any anticipated contracts with an education service provider;

Target population;

Anticipated first year enrollment and projected total enrollment;

Anticipated opening date of the school; and

Contact person information.

2. Significance of letter

A Letter of Intent does not obligate the entity to file an application, but failure to file a Letter of Intent makes an entity ineligible to file an application. The Letter of Intent is part of the record of any application filed pursuant to the Letter of Intent, although submission of the letter does not constitute the filing of an application. Any variance between the Letter of Intent and the application must be explained in the application.

3. Acknowledgement and posting of letters

The Commission shall acknowledge receipt of properly-filed Letters of Intent and shall post all such letters on the Commission’s Website.

SECTION 4. APPLICATION FILING

1. Review for completeness

Each application received by the Commission by the application deadline must be reviewed for completeness. The completeness review must be completed by the Commission or its staff within 7 business days of the deadline for submission of the application. The Commission shall notify each applicant of the results of the completeness review in a timely fashion.

2. Standard for completeness; grounds for rejection

To be considered a complete application, the application must include all information requested in the Application and must be filed by an entity eligible to submit an application pursuant to Title 20-A section 2407, subsection 2 or 3. The Commission shall notify the applicant of the specific errors or omissions that prevent the application from being considered complete, and shall allow the applicant to file corrections of the error or omission, as long as the corrections are filed with the Commission within 5 business days after the applicant’s receipt of the notice of errors or omissions. An application is considered to be filed on the date on which the corrections are filed with the commission. If the application is filed by an entity that is not eligible to apply or the application, after an opportunity to correct, does not contain all required information, the Commission shall reject the application.

3. Notice to applicants

If the application is complete, the Commission shall notify the applicant that the application has been accepted and will be reviewed in accordance with this rule.

SECTION 5. REVIEW TEAM and REVIEW PROCESS

1. Review team

Each application must be evaluated by a Review Team composed of not more than 3 Commission members. If needed to comply with Title 20-A, section 2407, subsection 4, paragraph A, the Commission may also appoint to the Review Team non-Commission members with necessary expertise in matters not present among Commission members on the Review Team.

The Commission shall name one member to serve as chair of the Review Team.

2. Evaluation by members

Each team member shall separately:

Read each application assigned to the team;

Rate each application section using the evaluation criteria set forth in the application, and provide written comment explaining the basis for each rating; and

If appropriate, provide recommendations for conditions that must be met in order to receive full approval for a charter.

3. Assistance by technical experts

If needed in the review process, the Review Team may request assistance of technical experts, including department staff and others, in the fields of curriculum and instruction, business and financial management, school governance, law, special education, family and community participation, and assessment and accountability. The technical experts shall read and comment on the relevant parts of the application and identify in writing to the Review Team any issues or problems related to their area of expertise that may affect the integrity of the application or the eventual ability of the applicant to perform.

4. Limit on discussion of applications

A person participating in the review process, including but not limited to technical experts, may not discuss with an applicant any application filed with the Commission during the review cycle in which the person is participating in the review process, from the time the person is asked to participate in the review process and the time the Commission takes a final vote on all applications submitted in that review cycle.

5. Team recommendation

The Review Team shall meet as a group to craft a recommendation to the full Commission regarding each application. The Review Team chair shall conduct the meeting. The chair of the Review Team shall report the team’s recommendation and the basis for the recommendation, in writing, to the full Commission If the Review Team’s vote on a recommendation is not unanimous, the chair shall report both viewpoints to the full Commission and describe the basis for each.

SECTION 6. COMMISSION REVIEW OF APPLICATION

1. Criteria for continued review

Following receipt of the Review Team’s recommendation, the Commission shall meet as a whole to discuss the applications. For each application, the Commission shall determine whether the application appears to demonstrate the applicant’s competence in each element of the Commission’s published approval criteria and appears to demonstrate that the applicant is likely to open and operate a successful public charter school as required in Title 20-A, section 2407(4)(C)(1), based on analysis by the Review Team and the Commission and any relevant comments from the technical experts.

2. Outcome of Commission determination

If the Commission determines that the application does not meet the criteria set forth in subsection 1, the Commission shall deny the application without further Commission review and notify the applicant of the denial. Otherwise, the Commission shall arrange for an in-person interview and a public hearing on the application before taking a final vote on the application.

SECTION 7. INTERVIEW and PUBLIC HEARING

1. In-person interview

The Commission shall arrange for an in-person interview of applicants whose applications meet the criteria set forth in section 6, subsection 1. Included in the interview must be board members representing the governing board of the applicant, including the chair of the board, the proposed school leadership team and the leaders of any education service provider with which the applicant proposes to contract for educational or management services.

The interview is used by the Commission to ask questions in order to clarify information provided in the application, to seek additional information, to determine whether members of the Board and school leaders understand their obligations for academic and operational accountability, and to gauge the applicant’s capacity to effectively launch and oversee the proposed charter school.

2. Public hearing on application

After conducting an in-person interview, the Commission shall hold a hearing to receive comments from the public on applications that the Commission is considering. In addition to providing notice in the manner it provides notice for Commission meetings, the Commission must provide notice by a method designed to ensure that residents of the geographic area most likely to be impacted by the proposed school receive notice of the hearing.

The purpose of the hearing is to elicit public comment on the expected impact of the proposed charter school on students, parents, the community to be served by the school, and public education in the State.

SECTION 8. COMMISSION DECISION ON APPLICATION

1. Commission vote on applications

Following the in-person interview and the public hearing on an application, within 90 days of receipt of the application, the Commission shall vote on each application pending before the Commission.

The Commission vote must be to approve the application, conditionally approve the application or deny the application.

2. Information required for conditional approval or denial

A decision to conditionally approve the application must set forth the specific changes that must occur in order for the application to be fully approved, and the deadline by which the changes must occur. If the Commission votes to give conditional approval, the Commission must at a regular or special meeting vote to approve or deny that the conditions have been met. A decision to deny the application must state the reason(s) for denial specific to the RFP.

SECTION 9. CHARTER CONTRACT

1. Contract requirement

Once an application is approved, the Commission will negotiate a contract with the applicant. The contract must be finalized and signed by authorized representatives of the applicant and the Commission not less than 60 days prior to the opening of the public charter school.

2. Contract contents

The contract must set forth the rights and responsibilities of the applicant and the Commission, including but not limited to the following elements:

The charter school’s commitment to comply with applicable federal and state laws and rules;

The rights of the commission with regard to monitoring and oversight of the charter school, including but not limited to the ability to conduct site visits and inspect records, and any limitations on oversight that may interfere with the independence of the charter school;

The percentage of per-pupil allocations that the Commission will charge for oversight of the charter school;

The Commission’sschool-specific expectations for academic and operational performance, based on the performance framework set forth in rule, the RFP and the application;

The obligation of the Commission to provide prompt notice to the charter school of any perceived deficiencies in performance, operations or legal compliance of the charter school, and a reasonable opportunity for the charter school to contest and/or correct any such deficiencies;

The standards and processes under which the Commission may pursue revocation of the charter contract;

Requirements for the Charter School to notify the Commission of specific events including school closures, student or staff injury, financial crises and other significant events that affect the ability of the charter school to comply with laws, rules or the contract; and

If the applicant is proposing a virtual charter school, the contract provisions required in Title 20-A, section 2408(2).

SECTION 10. PERFORMANCE FRAMEWORK

1. Performance indicators

The Commission’s performance framework for each public charter school it authorizes must be based on the following indicators:

Student Academic Proficiency

Student Academic Growth

Achievement Gaps, in proficiency and growth and between major student subgroups

Student Attendance

Recurrent enrollment from Year to Year

With respect to high school, postsecondary readiness

Financial Performance and Sustainability

Governing Board Performance and Stewardship

Adequacy of Facilities Maintenance in Support of Program

School Social and Academic Climate

Parent and Community Engagement

2. Measures, metrics and targets

Measures and metrics for each indicator in the performance framework must be included in the RFP and Application form provided to applicants. Performance targets for each indicator in the framework must be negotiated and agreed upon by the Commission and the governing body of the public charter and included in the charter contract, and must be reviewed annually.

History

• STATUTORY AUTHORITY: Title 20-A §2405 sub-§8 ¶B
• EFFECTIVE DATE: May 1, 2012 – filing 2012-133
• AMENDED: June 16, 2013 – filing 2013-130
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 3 Procedures for Charter School Renewal

Code Me. R. 90-668 Ch. 3 Procedures for Charter School Renewal {#sec-90-668-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--90-668 Ch. 3}

SUMMARY: This rule sets forth the process by which the Maine Charter School Commission decides whether to renew the charter of a public charter school according to Title 20-A §2411 of the Maine Revised Statutes , “Charter Term and Renewal”.

SECTION 1: DEFINITIONS

“Commission” means the Maine Charter School Commission formed pursuant to Title 20-A of the Maine Revised Statutes Chapter 112.

SECTION 2. SCHOOL PERFORMANCE REPORT

No later than June 30^th of a public charter school’s 4^{t h}year of operation under a 5-year contract, the Commission shall issue a performance report for that school which complies with Title 20-A, section 2411, subsection 3.The report shall include information regarding the charter school’s performance to date and provide notice of any weaknesses which might be detrimental to school renewal. The charter school must be given the opportunity to respond.

SECTION 3. RENEWAL APPLICATION

No later than September 30^th of a public charter school’s 5^th year, the governing board seeking renewal shall submit a renewal application to the Commission. A renewal application may not be submitted before the charter school has been issued the school performance report pursuant to Section 2.

SECTION 4. RENEWAL APPLICATION GUIDANCE

Renewal decisions will be based on merit and objective evidence of the school’s performance over the term of the charter contract in accordance with the Performance Framework developed by the Commission pursuant to Title 20-A, section 2409 and set forth in the charter contract. The Commission shall provide renewal application guidance at the time it issues the school performance report under section 2 of this rule. The guidance shall describe the application process and shall include or refer specifically to the criteria and standards that will guide the renewal decision.

SECTION 5. CRITERIA

Specific criteria to be used in the review include: academic performance, fiscal performance, governance, effective leadership, instructional quality, compliance with terms of charter contract and applicable laws and regulations, mission fulfillment with consideration also of parent and community support and significant positive or negative trends in performance, operations and/or governance. Data will be available to the charter school and the public.

According to 20-A, section 2411 subsection 3, paragraph B, applicants will (1) present additional evidence, beyond the data contained in the performance report, supporting its case for renewal, (2) describe improvements undertaken or planned for the school; and (3) detail the school’s plans for the next charter term.

SECTION 6. REVIEW PROCESS

Once an application for renewal is filed with the Commission in compliance with this rule, the Commission shall appoint a team to review the application and conduct a site visit. After the Commission receives the review team report, the Commission will hold a public hearing. The Commission must rule on the renewal application by resolution no later than 45 days after receipt of the application. Within 10 days of taking action on the application, the Commission shall report its action to the Commissioner of the Department of Education and shall provide a report to the charter school containing its action and reasons for the decision.

SECTION 7. COMMISSION DECISION

A decision to renew a charter school application must be made in accordance with Title 20-A, section 2411, subsection 6.

For the approval to renew an application a roll call vote with five(5) affirmative votes is required, except that if one or more seats on the Commission are vacant, a vote of two-thirds (2/3) of the current Commission membership is required. The Chair will call the roll alphabetically and will vote last.

The Commission’s vote to renew a charter will be held in a public session at an announced (posted) meeting time and place. The decision will be based on sufficient progress toward meeting performance expectations, meeting standards of fiscal management, and compliance with the charter contract and with applicable law.

Upon the decision to renew pursuant to Title20-A, section 2411, subsection 2, a charter may be renewed for successive terms of 5 years, although the Commission may grant a renewal for a term not to exceed 15 years based on the performance, demonstrated capacities and particular circumstances of each public charter school. If a charter is renewed for more than 5 years, the Commission shall still issue a public charter school performance report every 5 years as called for by section 2. The Commission may grant renewal with specific conditions for necessary improvements to a public charter school.

Upon renewal a new contract with new performance expectations will be negotiated.

History

• STATUTORY AUTHORITY: 20-A MRSA §2405 sub-§8 ¶B
• EFFECTIVE DATE: June 23, 2014 – filing 2014-120

90-699 Maine Retirement Savings Board

Chapter 101 Maine Retirement Savings Program

Code Me. R. 90-699 Ch. 101 Maine Retirement Savings Program {#sec-90-699-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--90-699 Ch. 101}

Summary: The Maine Retirement Savings Program, is established to automatically establish an Individual Retirement Account for Maine Covered Employees who do not otherwise have access to a retirement savings plan through their employer. This rule establishes the procedures and requirements for Covered Employers to register with the Program, as well as the establishment of and investment in such accounts for Covered Employees and individual participants in the Program.

DEFINITIONS

The following terms, some of which are defined in the 5 MRSA §171 et seq . shall have the following meanings in this rule.

1. Acceptable Submission Method. “Acceptable Submission Method” means one or more modes of document submission detailed on the Program website.
2. Account. “Account” means, individually or collectively as the context may require, each Roth IRA and Traditional IRA that has been established under the Program.
3. Account Holder. “Account Holder” means an individual for whom an Account is held under the Program. Account Holders include Onboarded Employees after the Opt-Out Period, Voluntary Participants for whom an Account is established, or a Beneficiary.
4. Act. “Act” means PL 2021, Chapter 356, 5 MRSA §171 to §179, as amended.
5. Automatic Escalation. “Automatic Escalation” means an additional 1% annual increase in an Employed Account Holder’s contribution rate at the beginning of each subsequent calendar year following the Employed Account Holder’s Onboarding.
6. Beneficiary. “Beneficiary” means the individual(s), person(s), or entity(ies) entitled to receive the proceeds of an Account upon the death of an Account Holder.
7. Board. “Board” means the Maine Retirement Savings Program Board established by 5 MRSA §172.
8. Capital Preservation Investment. “Capital Preservation Investment” means a Money Market account included as an investment option in the Program selected by the Board.
9. Client Company. “Client Company” means a client company as defined in 32 MRSA

§14051(1).

1. “Code” means the Internal Revenue Code of 1986, as amended, and any U.S. Department

of Treasury regulations, rulings, announcements or other guidance issued thereunder.

1. Confirmation Notice. “Confirmation Notice” means a document sent by the Program Administrator to Covered Employees to notify them that they have been enrolled in the Program.
2. Covered Employee. “Covered Employee” means an individual who is 18 years of age or older who is employed by a Covered Employer and who has Wages that are allocable to the State during a calendar year. A Covered Employee may include a person who is employed full- time, part-time or per diem. A Covered Employee does not include employees excepted by 5 MRSA §171.2, A-C.
3. Covered Employer. “Covered Employer” means a person or entity engaged in a business, industry, profession, trade or other enterprise in the State, whether for profit or not for profit, that has not offered to some or all of its Covered Employees, effective in form or operation at any time within the current calendar year or 2 preceding calendar years, a Specified Tax-Favored Retirement Plan. A Covered Employer does not include: 1. The Federal Government, the State or any other state, any county or municipal corporation or any of the State’s or any other state’s units or instrumentalities; or 2. An employer that has not been in business during both the current calendar year and the preceding calendar year; or 3. An employer that has fewer than five Covered Employees as of the date the Covered Employer provides an Exemption Certification or Onboards with the Program.

N. Custom Contribution Rate. “Custom Contribution Rate” means any available Contribution Rate chosen by the Account Holder.

Custom Investment. “Custom Investment” means any of the asset classes chosen by the Board other than the Default Investment Option.

Default Contribution Rate. “Default Contribution Rate” means five percent of Employed Account Holder’s Wages.

Default Investment Option. “Default Investment Option” means the Target Date fund chosen by the Board, which correlates to the Account Holder’s Retirement Age.

Employed Account Holder. “Employed Account Holder" means an Account Holder who is currently employed with a Remitting Employer and who is actively participating in the Program as a Covered Employee.

Employee Leasing Company. “Employee Leasing Company” means an Employee Leasing Company as defined in 32 MRSA §14051(3).

Exempt. “Exempt” means not required to Onboard or Participate in the Program.

Exemption Certification. “Exemption Certification” means the certification by a business entity to the Program online through the Program website affirming that said entity does not meet the definition of Covered Employer and therefore is neither required to Onboard nor be a Remitting Employer in the Program.

FEIN. “FEIN” means Federal Employment Identification Number provided by the IRS.

Form 5500 Filing. “Form 5500 Filing” means the Annual Return/Report of Employee Benefit Plan that is required to be filed for certain employee benefit plans under sections 104 and 4065 of the Employee Retirement Security Act of 1974, as amended (“ERISA”) and

sections 6057(b) and 6058(a) of the Code.

Hold and Sweep Period. “Hold and Sweep Period” means the 30-day period after the Opt-Out Period, during which time Payroll Deduction Contributions are held in a Capital Preservation Investment on behalf of Participating Employees.

In Business. “In Business” means being in operation as a business existing as of the earliest of the following to occur of: (1) the date that the entity submitted the IRS Form SS-4; or (2) the date as of which the Maine Secretary of State recorded the business formation or issued the Authority to do Business document; or (3) the issue date of the Maine Sales Tax Identification Number; or (4) the last date of the month and year in which the business registered with the Maine Department of Labor Unemployment Division.

IRA. “IRA” means, individually or collectively as the context may require, a Roth Individual Retirement Account or a Traditional Individual Retirement Account.

IRS. “IRS” means the Internal Revenue Service.

Non-Compliant Employer. “Non-Compliant Employer” means a Covered Employer that has neither provided an Exemption Certification nor is a Remitting Employer.

Non-Payroll Contribution. “Non-Payroll Contribution” means funds that an Account Holder remits outside of a Payroll Deduction Contribution.

Onboard. “Onboard” means to furnish all required information to the Program Administrator in order to enable payroll contributions within the Program.

Onboarding. “Onboarding” means the process by which Covered Employers, Covered Employees, and Participating Individuals furnish all required information to the Program Administrator in order to participate in the Program.

Onboarding Information. “Onboarding Information” means the information detailed in 2(C)(2) which is required to be provided by a Covered Employer, a Covered Employee, or a Voluntary Participant to the Program Administrator to enable participation in the Program.

Opt-Out Period. “Opt-Out Period” means the 30-day Account revocation period that begins as of the date of the Confirmation Notice provided to the Covered Employee.

Participating Employee or Participating Individual. “Participating Employee or Participating Individual” means respectively a Covered Employee or a Voluntary Participant whose complete Onboarding Information has been received by the Program Administrator.

II. Payroll Deduction Contributions. “Payroll Deduction Contributions” means contributions made by an Onboarded Employee via a payroll deduction through a Remitting Employer.

Program. “Program” means the Maine Retirement Savings Program established by the Board and as described in and governed by the Act and this rule and known as the Maine Retirement Investment Trust or MERIT.

Program Administrator. “Program Administrator” means the third-party entity which is contracted with by the Board to assist in carrying out the requirements of the Act.

Program Information. “Program Information” means a document provided by the Program Administrator after Onboarding to Covered Employees and to Voluntary Participants, which outlines the Program features including, but not limited to the items listed in 5 MRSA §174(2)(G).

Registration Date. “Registration Date” means a date established by the Board on which Covered Employers are required to complete the Covered Employer Onboarding into the Program.

Remitting Employer. “Remitting Employer” means a Covered Employer that has provided all required Covered Employer and Covered Employee Onboarding Information and which remits Covered Employee Payroll Deduction Contributions to the Program Administrator.

Retirement Age. “Retirement Age” means 65 years of age for the purpose of determining the Default Investment Option for each Participating Employee.

Roth IRA. “Roth IRA” means an individual retirement account within the meaning of section 408A of the Code.

Self Employed Individual. “Self-Employed Individual” means an individual who either 1) carries on a trade or business as a sole proprietor or an independent contractor, or 2) is a member of a partnership that carries on a trade or business, or 3) is otherwise in business for himself or herself (including a part-time business or a “gig worker”) and who meets the qualifications to open an IRA.

Specified Tax-Favored Retirement Plan. “Specified Tax-favored Retirement Plan” means a plan, program or arrangement that is tax-qualified under or described in, and satisfies the requirements of, Section 401(a), Section 401(k), Section 403(a), Section 403(b), Section 408(k), Section 408(p) or Section 457(b) of the Code without regard to whether it constitutes an employee benefit plan under ERISA.

Traditional IRA. “Traditional IRA” means an individual retirement account within the meaning of section 408 of the Code.

Voluntary Participant. “Voluntary Participant” means an individual who meets the qualifications to open an IRA but who does not meet the definition of Covered Employee and who provides Onboarding Information to the Program Administrator.

Wages. “Wages” means W-2 wages, as defined in 26 CFR 1.415(c) through 2(d)(4) that are received by a Covered Employee during the calendar year.

Work-Site Employee. “Work-Site Employee” means an employee who is leased to a Client Company by an Employee Leasing Company pursuant to a contract described in 32 MRSA § 14051(3).

EMPLOYER REQUIREMENTS

1. Registration Dates 1. The Registration Date for all Covered Employers with 15 or more Covered Employees is April 30, 2024. 2. The Registration Date for all Covered Employers with five to 14 Covered Employees is June 30, 2024. 3. Employers that become Covered Employers after December 31, 2024, must register with the Program within 12 months of becoming a Covered Employer.
2. Employer Exemption 1. The Program may send written notice(s) to business entities identified initially as Covered Employers that do not have a current Form 5500 on file with the U.S. Department of Labor. The written notice(s) shall direct the business entity to either Onboard with the Program or provide an Exemption Certification using the process described in this rule. Such notices may be sent by email or regular first class mail. A business entity that offers a Specified Tax-Favored Retirement Plan and is not sent such written notice(s) is not required to take any action with respect to the Program. 2. Process for certain business entities to provide an Exemption Certification: 1. An authorized representative of a business entity shall certify, through the Program website that the entity either presently offers a Specified Tax Favored Retirement Plan, or has fewer than five Covered Employees, or has been In Business for less than two years. 2. The business entity may reference the following state forms and compliance structures when determining its eligibility for Exemption: 1. business formation or authority to do business document(s) from the Maine Secretary of State; 2. Sales Tax Identification Number from the Maine Department of Revenue, if applicable; 3. Any Maine Revenue form that determines when the business became liable for wage withholding; and 4. Any notice or letter from the Maine Department of Labor determining that the business is liable for payment of unemployment insurance. 3. The employer’s online Exemption Certification will remain in effect so long as the business entity continues to offer a Specified Tax Favored Retirement Plan to some or all Covered Employees or maintains fewer than five Covered Employees. If such Exemption Certification is provided only because an entity has been in business for fewer than two years, the Exemption shall expire when the entity has been in business for two calendar years.
3. Covered Employer Onboarding 1. By or before its Registration Date, Covered Employers shall either Onboard with the Program or adopt a Specified Tax-Favored Retirement Plan. 2. Covered Employers shall submit the following Onboarding Information to the Program Administrator via the Program website or an Acceptable Submission Method: 1. Covered Employer name and assumed business name, if any; 2. Federal Employer Identification Number; 3. Covered Employer mailing address; 4. Name, telephone number and email address of an individual designated by the Covered Employer to serve as the point of contact; and 5. Any additional information identified by the Program as necessary to complete Onboarding. 3. In the event that the Program Administrator finds that any of the information listed in this subsection C is not available on the Program’s online portal or is inaccurate, Covered Employers shall provide the missing or correct information, as applicable within two weeks of notification from the Program Administrator of the missing or incorrect information.
4. Employer Restrictions 1. Business entities that offer a Specified Tax-Favored Retirement Plan may not register with the Program or Onboard employees in the Program. 2. Business entities without a Specified Tax Favored Retirement Plan, that have been In Business for fewer than two years and have five or more employees, are not required to Onboard with the Program until the employer is In Business for two consecutive years. 3. Covered Employers shall not: 1. Prohibit, restrict, or discourage a Covered Employee’s participation in the Program. 2. Provide Account Holders advice or direction regarding investment choices, Contribution Rates, Automatic Escalation, or any other decision about the Program. 3. Remit any Payroll Deduction Contributions for any Onboarded Employee who opted out of the Program. 4. Exercise any authority, control, or responsibility regarding the Program, other than those duties specifically described in this rule. 5. Contribute to an Account Holder’s Account.
5. Onboarding of Employees by Remitting Employer 1. On initial registration, all Covered Employees employed for at least 120 days must be registered with the Program. 2. After initial registration, new Covered Employees must be registered as soon as practicable, but no later than an individual’s 120th day of employment at a Covered Employer. 3. The Remitting Employer shall provide the following information to the Program Administrator for each Covered Employee through the Program’s secure portal, or if the Remitting Employer does not have access to the secure portal through submission of paper: 1. Full legal name; 2. Social security number or taxpayer ID number; 3. Date of birth; 4. Mailing address; 5. Covered Employee’s designated email address, if available; 6. Covered Employee’s phone number, if available; and 7. Any additional information needed to complete the Onboarding as directed by the Program Administrator. Circumstances where additional information may be required include when the information submitted for Onboarding is unclear or insufficient, or when further information is required for purposes of administering the Program.
6. Withholding and Remitting Payroll Deduction Contributions by Remitting Employer 1. Remitting Employers shall not deduct any amount from a Covered Employee’s pay until after the Opt-Out Period. After the Opt-Out Period, the Program will notify Remitting Employers the percentage of pay to deduct from each Covered Employee participating in the Program. 2. Remitting Employers shall remit all Payroll Deduction Contributions from an Employed Account Holder’s Wages to the Program Administrator as soon as administratively practicable, and in no event later than fourteen days from the close of the payroll period in which such Wages were earned. 3. Amounts withheld by the Remitting Employer shall not exceed the amount of the Employed Account Holder’s Wages remaining after any payroll deductions required by law or other deductions that have higher precedence, including a court or administrative order.
7. Responsibilities of Program Administrator to Remitting Employers 1. Remitting Employers may contact the Program Administrator for technical assistance in completing Program requirements. 2. Upon receiving the Covered Employee’s Onboarding Information from the Remitting Employer, the Program Administrator shall send a confirming email to the Remitting Employer and send a Confirmation Notice and the Program Information to each Covered Employee. In the event that the Program Administrator does not have a functioning email address for the Covered Employee, the Program Administrator shall send Confirmation Notice to the Covered Employee by first class mail.
8. Multi-Party Employment Relationships 1. In the case of a multi-party relationship involving an Employee Leasing Company, for purposes of the Program, a Work-Site Employee is treated as employed by the Client Company and not by the Employee Leasing Company. If the Client Company is a Covered Employer, it must comply with all requirements applicable to Covered Employers. 2. Any Wages paid to the Work-Site Employee by the Employee Leasing Company shall be treated as Wages received from the Client Company. 3. Client Companies that are Covered Employers must facilitate the registration and enrollment of Covered Employees. Nothing in these rules prohibits an Employee Leasing Company and its Client Company from entering into an agreement under which the Employee Leasing Company agrees to assist the Client Company with the performance of some or all of the Client Company’s responsibilities under this section. 4. Employee Leasing Companies registered with the Maine Bureau of Consumer Credit Protection shall provide the Program with a list of all Maine Client Companies with which they have a contract. On an annual basis, Employee Leasing Companies shall provide the Program the following information for each Maine Client Company:

Full legal name;

Doing Business As (DBA) Name, if applicable;

FEIN:

Contact person’s full name;

Mailing address;

Email address, if available;

Client Company’s phone number, if available;

Number of employees; and

Any additional information needed to contact the Client Company when the information submitted is unclear or insufficient, or when further information is required for purposes of administering the Program.

COVERED EMPLOYEES AND VOLUNTARY PARTICIPANTS

1. Covered Employee Right To Opt-Out 1. A Covered Employee Onboarded into the Program by a Remitting Employer may opt out of the Program at any time. 2. No Account will be established if a Covered Employee opts out during the Opt-Out Period. 3. The Program Administrator shall send Program Information to Covered Employees as soon as administratively possible after all required Onboarding Information has been received and shall send other important information including the Confirmation Notice, mandatory disclosures and other material information that a reasonable investor would want to know before contributing to an IRA by payroll deduction or directly. 4. Covered Employees Onboarded by Remitting Employers are deemed to have read and understood the Program Information content, which includes instructions about how to opt out of the Program. 5. Those who opt out of the Program may re-elect to participate at any time by requesting that the Remitting Employer provide the required Onboarding Information through the Program website or an Acceptable Submission Method. If the Covered Employee does not receive a Confirmation Notice then the Covered Employee may provide the Onboarding Information directly to the Program Administrator.
2. Voluntary Participants 1. Self-Employed Individuals and Voluntary Participants may Onboard with the Program if they meet the qualifications to open an IRA and provide the following required Onboarding Information via the Program’s secure portal : 1. Full legal name; 2. Social security number or taxpayer ID number; 3. Date of birth; 4. Mailing address; 5. Email address, if available; 6. Phone number, if available; and 7. Any additional information needed to complete the Onboarding when the information submitted for Onboarding is unclear or insufficient, or when further information is required for purposes of administering the Program. 2. The Program Administrator shall provide Program Information and mandatory disclosures pursuant to 5 MRSA §174(2)(G) to Voluntary Participants and Self-Employed Individuals as soon as administratively possible after all required Onboarding Information has been received. 3. Covered Employees and Voluntary Participants shall have one Account, regardless of whether the Voluntary Participant also makes Payroll Deduction Contributions from a single Remitting Employer or multiple Remitting Employers (simultaneously or separately throughout an Account Holder’s lifetime).

ACCOUNTS

1. Account Type

The default Account type for all Account Holders is a Roth IRA. Account Holders may choose to open a Traditional IRA by notifying the Program Administrator.

1. Contributions

It shall be the responsibility of the Account Holder to determine whether he/she/they are eligible under the Code to make Payroll Deduction Contributions or Non-Payroll Contributions to an Account and whether the amount of their contributions to an Account complies with the contribution limits established under the Code, and whether or not such Payroll Deduction Contributions or Non-Payroll Contributions are deductible.

1. Default Investment and Custom Investment options 1. The Program Information provided by the Program Administrator shall instruct Account Holders on how to select Custom Investments in place of the Default Investment Option. 2. In the portal on the Program website, Account Holders may direct their Payroll Deduction Contributions to any combination of the available fund options offered by the Program. 3. During the Hold and Sweep Period, Payroll Deduction Contributions will be directed into the Capital Preservation Investment. 4. After the Hold and Sweep Period, the Program Administrator shall direct Payroll Deduction Contributions from the Capital Preservation Investment into the Default Investment Option, unless an Account Holder has elected a Custom Investment. 5. Employed Account Holders may change their investment choice(s) at any time after the Confirmation Notice is received.
2. Default Contribution Rate and Custom Contribution Rate 1. The Program Information provided by the Program Administrator shall instruct Account Holders on how to elect a Custom Contribution Rate other than the Default Contribution Rate. 2. In the portal on the Program website, Account Holders may elect any Contribution Rate that is a whole-number percentage and may direct their Payroll Deduction Contributions to any of the available fund options offered by the Program. 3. Remitting Employers will remit the Default Contribution Rate on behalf of the Account Holder unless the Account Holder elected a Custom Contribution Rate. 4. Employed Account Holders may change their Contribution Rate to any whole integer

percentage at any time after the Confirmation Notice is received.

1. Non-Payroll Contributions 1. Any Account Holder may choose to make Non-Payroll Contributions to the Program. 2. Such Non-Payroll Contributions must not exceed, in combination with Payroll Deduction Contributions, the annual IRA contribution limit as determined by the Code and related rules promulgated by the IRS. 3. The minimum recurring Non-Payroll Contribution is five dollars. The minimum one- time contribution for Non-Payroll Contributions to open an Account is $500. Thereafter, the minimum non-recurring contribution is five dollars. 4. Non-Payroll Contributions may be made electronically or by personal check provided to the Program Administrator.
2. Automatic Escalation 1. Payroll Deduction Contributions for Employed Account Holders who have Participated in the Program for at least six months will automatically increase by 1% of an Employed Account Holder’s Wages at the beginning of each subsequent calendar year, up to a maximum of 10% of an Employed Account Holder’s Wages. 2. On an annual basis, the Program Administrator shall notify all Employed Account Holders in advance of any Payroll Deduction Contribution increase to allow for Employed Account Holders to opt out of Automatic Escalation or to change their Contribution Rate. 3. Employed Account Holders may opt into Automatic Escalation or opt out of Automatic Escalation at any time.
3. Termination of Remitting Employer Status through Program Exemption 1. Remitting Employers who begin offering a Specified Tax-Favored Retirement Plan must notify the Program Administrator at least sixty days prior to the cessation of Payroll Deduction Contributions. 2. Upon a Remitting Employer becoming Exempt, remittance of Payroll Deduction Contributions on behalf of Employed Account Holders is prohibited. 3. Remitting Employers that have become Exempt must notify Employed Account Holders at least thirty days before Payroll Deduction Contributions cease and provide them with information describing how to contact the Program Administrator. 4. Unless Employed Account Holders elect otherwise, Accounts will remain in the Program after the Remitting Employer certifies its Exemption. 5. If the Remitting Employer became Exempt due to its number of Covered Employees falling below five, the Remitting Employer must notify the Program Administrator within 30 days.
4. Portability 1. An Account Holder may receive rollovers and transfers from other retirement savings vehicles in accordance with the time limits established under the Code. 2. An Account Holder or Beneficiary may roll over or transfer all or a portion of a Program IRA to a different retirement savings vehicle in accordance with the Code. The Account Holder must commence the process by notifying the Program Administrator and providing any information required to effectuate the rollover or transfer.
5. Withdrawals 1. An Account Holder may withdraw all or a portion of funds from their Account at any time by submitting a completed request to the Program Administrator, in a form or format established by the Program and permitted by the IRS. 2. The Program shall not assess any penalty for withdrawals. Withdrawals shall be subject to any applicable State and federal income tax obligations and may be subject to penalties under the Code.
6. Abandoned Accounts

An Account shall be presumed abandoned according to the unclaimed property law of the state of the last known address of the Participating Employee or Participating Individual. If the last known address of the Participating Employee or Participating Individual is in Maine, the Maine Unclaimed Property Act will apply. If there is no last known address of the Account Holder in the Program records, federal common law shall determine the state with the first priority claim.

ENFORCEMENT

1. The fines for Covered Employers failing to register and commence Payroll Deduction Contributions to the Program by December 31 of the year they are required to register are: 1. From July 1, 2025, to June 30, 2026 for Covered Employers at the commencement of the Program and for other Covered Employers that fail to register within 12 months of becoming a Covered Employer, $20 per Covered Employee; 2. From July 1, 2026, to June 30, 2027 for Covered Employers at the commencement of the Program and for other Covered Employers that fail to register in the two years after becoming a Covered Employer, $50 per Covered Employee; 3. From July 1, 2027 and after for Covered Employers at the commencement of the Program and for other Covered Employers that fail to register for three years after becoming a Covered Employer, $100 per Covered Employee.
2. The Executive Director may exercise discretion in determining whether a fine should be assessed based on the facts and circumstances of a situation.
3. The Program is represented by the Maine Office of the Attorney General which shall represent the Board in connection with enforcement of compliance with the Act.
4. The Program shall at all times comply with the Maine Administrative Procedure Act.
5. Process 1. The Program will notify Covered Employers via email or, when email is not available, first-class US Mail of their respective Registration Dates and again in advance of receiving Final Notice of Penalty Application. 2. After Registration Dates have passed, the Program will send three Notices of Non- Compliance to Non-Compliant Employers which provide instructions on how either to

provide Onboarding Information to the Program or to certify Exemption.

• 1. In no event shall a fine be assessed earlier than three months after the first Notice of Non-Compliance is sent. 2. Within 30 days of the date stated on the Final Notice of Penalty Application, Non-Compliant Employers who fail to either register with the Program or certify Exemption shall remit to the Program annual fines as provided in Section 5.A. 3. A Non-Compliant Employer shall have a right to appeal the assessment of a fine within 30 days of the assessment of the fine by filing an appeal with the Program.

1. Appeal

A Covered Employer who neither Onboards with the Program nor certifies Exemption shall have a right to appeal the assessment of a fine. To effectuate an appeal the Covered Employer shall file a written notice of appeal with the Program, together with a statement of the reasons why the Executive Director's decision to assess a fine should be reversed or modified along with any supporting documentation, within twenty days after the date on which the Executive Director sent the notice of assessment of a fine to the Covered Employer by first class mail or email.

The Executive Director shall establish a briefing schedule whereby the Covered Employer and the Program shall submit their supporting evidence and arguments that shall be presented to the Board.

The appeal shall be heard at a meeting of the members of the Board, and the Covered Employer must be present to support the appeal. The appeal shall be based on the administrative records of the Program and the material submitted by the Covered Employer.

If the members of the Board determine that the decision by the Executive Director was arbitrary, capricious or an abuse of discretion, the members may overturn or modify the decision of the Executive Director and may direct the Executive Director to take further action with respect to the fine being appealed.

CONFIDENTIALITY

The administration of the Program shall be in compliance with all applicable confidentiality requirements including but not limited to 1 MRS § 401 et seq.

SEVERABILITY

If any portion of these rules is found to be invalid, the remaining portion of the rules shall remain in force and effect.

History

• STATUTORY AUTHORITY: 5 M.R.S. § 174
• EFFECTIVE DATE: November 20, 2023 – filing 2023-236

94-073 Maine State Museum Commission

Chapter 501 Use of Museum Facilities

Code Me. R. 94-073 Ch. 501 Use of Museum Facilities {#sec-94-073-ch.-501 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 501}

SUMMARY: Rules and Regulations for the use and security of materials and facilities of the Maine State Museum.

1. Declaration of Policy

The facilities of the Maine State Museum are to be used in furtherance of the Legislative Declaration of Policy as stated in 27 MRSA §81.

A. General Use of Facilities. Facilities shall be used only when such use would further the cultural and educational interests of this state through the use of the Museum's collections and exhibits.

B. Use of Classrooms and Educational Facilities. The classrooms and educational facilities shall be used solely for lectures, demonstrations, discussions and presentations which bear on this state's and this nation's cultural, environmental and historical background. Use will be restricted to the following purposes in order of priority:

1. Museum-sponsored school programs.

2. Other Museum-sponsored and administered programs.

3. State agencies and groups or organizations conducting programs or activities in cooperation with the Maine State Museum, which activities are supportive of the environmental, cultural and historical development of the State.

4. Conflict with Needs for Security

The security of collections, including the permanent collections and loan materials in storage or on exhibit are of paramount concern, accordingly, no use of facilities will be permitted which will conflict with that paramount responsibility.

3. Access to Public Areas

Visitors to the Maine State Museum will be allowed access to all exhibit areas on the first and third floors and mezzanine area, as well as the offices on the fifth floor for Museum business, except insofar as access may be restricted for reasons of public safety or collections security.

4. Access to Restricted Areas

Access to restricted areas by persons other than the security officer, custodian force and maintenance workers, is subject to the following: all visitors permitted to examine the facility, equipment, methods and techniques will be accompanied by a professional staff member and have prior approval of the Director or Museum Security Officer for entrance.

A. Security Officer Access to Areas. The Security Officer may enter all areas during the performance of official duties, with the exception of the collection storage area where access shall be limited to emergency situations.

B. Custodian Force Access to Areas. The Custodian Force shall be permitted access to all areas during normal office hours for the performance of official duties. Specific exceptions will be made for those areas where special care of objects and equipment is required.

C. Maintenance Crews Access to Areas. Maintenance personnel, State or contracted, shall be permitted access to stack areas, laboratories and work areas during normal office hours for the performance of official duties upon authorization by the Director or Administrative Assistant and only after checking in with the Security officer. Maintenance services performed after office hours shall be done only under direct supervision of an authorized professional staff member.

5. Use of or Access to Equipment, Collections, Materials or Records,

None of these persons identified in sections 3 or 4 shall be allowed use of, or access to equipment, collections, materials or records without specific authorization by the Director. General access to the workshop on the first floor will not be permitted nor shall anyone other than authorized staff, approved by the shop foreman, be permitted to use equipment there.

6. Hours of Operation

A. Exhibit Areas. The Museum galleries shall be open to the public according to hours posted in the lobby. The galleries will be closed all legal holidays unless other-wise excepted by the Director.

B. Other Areas. Offices, resource center, laboratories and other areas shall be open to conduct normal business Monday through Friday from 8 a.m. to 5 p.m.

7. Programs and Exhibit Space

The Museum will initiate programs, or mount exhibits, only when the Museum is the sponsor, or co-sponsor; no staff time, or space, is available for the mounting of special interest shows by others in the Museum building.

8. General Authority of Director

The Director of the Museum by the authority vested in him under the Operational Provisions of 27 MRSA §85 shall be responsible for determining the uses to be made of the facilities within the limits of this policy and with regard to the legally defined duties and responsibilities of the Maine State Museum.

History

• STATUTORY AUTHORITY: 27 MRSA §85.3
• EFFECTIVE DATE: May 21, 1979 (filed 5-30-79)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• NON-SUBTANTIVE CHANGES: 94-073 Chapter 501 page 1

Chapter 502 Reproduction of Museum Collections

Code Me. R. 94-073 Ch. 502 Reproduction of Museum Collections {#sec-94-073-ch.-502 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 502}

SUMMARY: Collections of the Maine State Museum are held in trust for the people of the State of Maine. Reproductions of selected items may be approved by the Museum in accordance with this rule.

1. PURPOSE

Museum collection items are deemed to be the property of the Museum, held in trust for the people of Maine. They are not, therefore, to be managed as a source of private, profit-making activities by individuals and firms.

The Museum reserves all rights to reproductions of the collection items and may license vendors, contract for reproduction, collect royalties from the sale of reproductions and make other similar arrangements that may be beneficial to the Museum.

The Museum does not endorse the reproduction of collections in its care for private use. Such use would extend a privilege to an individual rather than to the population of the State as a whole.

This rule is intended to govern decisions pertaining to the reproduction of collection items of the Maine State Museum. It establishes the general principles by which decisions will be made regarding reproduction privileges.

2. DEFINITIONS

Commission: "Commission" means the Maine State Museum Commission as established by Title 5, section 12004.

Director: "Director" means the Director of the Maine State Museum.

Museum: "Museum" means the Maine State Museum.

Reproduction: "Reproduction" as referred to in this rule, means as follows:

• A replica or exact copy of the original artifact, except for the application of the Museum seal or logo.

• A reproduction, or a close copy of the original artifact which differs either in function, material, size, process, or manufacture or construction from the original;

• An adaptation, or modification of the original artifact or use of one of Its parts or design features; it differs in terms of either material, appearance, or function while retaining a clear sense and statement of the original artistic and/or historical characteristics which make the artifact unique.

3. PURPOSES OF REPRODUCTION

The authorized reproduction of artifacts in the Maine State Museum collections is deemed beneficial to the Museum and the State of Maine for the following purposes:

1. To replace original artifacts which are a type specimen or too fragile and/or valuable to be used on exhibition or as furnishings, or when the appropriate original artifacts for a specific exhibition or furnishing plan are not present in sufficient quantities In the collections;

2. To enhance the interpretation at historic sites and museums in the state and elsewhere through active craft and/or living history demonstrations and related activities;

3. To increase public awareness of the collections, enhance the educational experience, and provide aesthetic pleasure through the sale of the same;

4. To provide a potential source of income for further development of other Museum activities.

5. STANDARDS FOR DECISIONS ON REPRODUCTION RIGHTS

A. Reproductions for Commercial Sale

Reproduction privileges for commercial sale purposes may be granted solely at the discretion of the Director and the Commission, and only upon the following findings:

1. Damage to the original artifact is unlikely to occur;

2. The reproduction will convey a clear sense of the artistic and/or historical characteristics of the original artifact;

3. Craftsmen are available to produce reproductions of high quality;

4. Adequate safeguards exist to distinguish the reproduction from original artifacts;

5. Reproduction activities will not unduly interfere with regular activities of the Museum and Museum staff.

6. No similar item is being reproduced for sale in the state.

7. Sale of the item will contribute to public awareness and appreciation of Museum collections, will enhance the general mission of the Museum, and will provide aesthetic pleasure to holders;

8. The Museum will benefit from the activity through an appropriate fee or royalty arrangement.

B. Reproduction for Noncommercial Purposes

Reproduction of artifacts to be used for replacement or supplement or for similar purposes in other museums, historical societies, non-profit organizations or buildings of the State of Maine may be made if approved by the Director. Such decisions shall be solely within the Director's discretion and may be made only upon the conditions specified in sub-section A. para 1-5.

C. Reproduction for Replacement Purposes

Decisions to authorize reproductions of Museum collection artifacts which have been lost or destroyed or are too fragile for public exhibit shall be solely within the discretion of the Director.

D. Reproduction of "Generic" Artifacts

Decisions on the reproduction of "generic' artifacts to be used for commercial or noncommercial purposes shall fall solely within the discretion of the Director. Any such decisions must be made only upon the findings of specific conditions specified is sub-section A, para.1-5. The Director shall establish a fee schedule which may distinguish between commercial and non-commercial purposes.

5. PROCEDURES

Any person wishing to make a reproduction of an artifact from the Museum collections shall complete and submit a request to the Director on a form designated by him.

The Director shall assess the request and determine whether to grant reproduction privileges, according to the guidelines and standards set forth in sections 3 and 4.

The Director shall make all decisions pertaining to reproduction for replacement, interpretive and other non-commercial purposes.

Applications or other arrangements for reproduction rights pertaining to commercial sales of reproductions shall be approved by both the Director and the Commission. The Director shall prepare a written report for the Commission on each request which he approves, outlining the reasons for his approval, in accordance with the standards set forth In this rule.

No reproduction activities may be commenced without the execution of a licensing or other agreement between the Director, acting for the Museum, and the applicant and payment by the applicant of all required fees. All agreements shall meet applicable provisions of the laws and rules pertaining to the Department of Finance and be approved by legal counsel. Said agreements shall include the conditions specified in this rule.

Licensing agreements may limit the sale of the reproduction to specified locations and vendors and must specify the numbers of reproductions to be made.

Licensing agreements shall provide for a cessation of reproduction or vendor activities in the event of the following:

a. Reproductions are made with fraudulent intent;

b. Reproductions are knowingly being made and/or sold for purposes which discredit the Museum and Its collections;

c. Reproductions do not convey a clear sense of the artistic and/or historical characteristics of the original artifacts;

d. Reproductions are being advertised or sold as original works,

e. Reproductions are not clearly identified as such; or

f A conflict of interest has occurred in the execution of the licensing agreement.

6. COPYRIGHTS ON COLLECTION ITEMS

The Commission assumes the right to copyright any of Its collection items which meet the copyright eligibility requirements of the governing Federal law, unless such items are on loan to the Museum or such rights were expressly reserved by the donor or seller.

Reproductions of Museum collection items, photographs, and graphic representations may be copyrighted in the name of the Maine State Museum.

All interpretive publications of the Museum shall be copyrighted in the name of the Maine State Museum.

The Director shall take appropriate action to copyright Museum materials. Requests for reproduction of copyrighted printed materials shall be handled by the Director. All copyrights shall be obtained in the name of the Maine State Museum acting as trustee for the State of Maine.

7. USE OF THE MUSEUM'S NAME, LOGO, OR OTHER IDENTIFICATION DEVICE OR STATEMENT

The use of the Museum's name, logo, or any other distinguishing symbol, or any device implying the involvement or approval of the Museum in a commercial endeavor, or any representation suggesting Museum involvement, is prohibited, except as may be authorized specifically by the Maine State Museum Commission.

8. CONFLICT OF INTEREST PROHIBITIONS

No reproduction licensing arrangements may be awarded or approved under this rule if a conflict of interest, real or apparent, would result. A conflict of interest is deemed to consist of any financial or other personal Interest In such arrangement if such involvement can be expected to result in subsequent financial remuneration or benefit to the individual. Conflict of interest would arise when any of the following has a financial or other interest in the licensing agreements by this rule:

a. Commission members, the Director, or Museum staff members;

b. Any members of their immediate families;

c. Any of their business partners;

d. Any organization which employs or is about to employ any of the above.

History

• STATUTORY AUTHORITY: 27 M.R.S.A. §§83, 85
• EFFECTIVE DATE: June 28 1987
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• NON-SUBSTANTIVE CHANGES: 94-073 Chapter 502 page 1

Chapter 505 Collections

Code Me. R. 94-073 Ch. 505 Collections {#sec-94-073-ch.-505 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 505}

SUMMARY: To set forth the rules and regulations regarding acceptance, use and disposition of museum collections as a means of preserving the historical, cultural, and environmental heritage of the State of Maine according to the provisions of 27 MRSA Sections 81 through 90-A and 27 MRSA Sections 371 through 378.

1. Authority to Accept Collections

The Maine State Museum Commission designates the museum director, as the chief representative of the Maine State Museum, to have the final authority for acceptance of all donations, incoming loans, bequests, exchanges, transfers, or purchases for the collections of the museum.

In determining whether an item will be accepted into the collections of the museum, the museum director will be advised by a Collections Committee. The Collections Committee will be comprised of the heads of the museum’s three main collecting areas – history, natural science, and archaeology. The museum director will appoint three additional committee members to represent the museum’s finance, collections management, and conservation activities. The Collections Committee will also include two members of the Maine State Museum Commission, appointed by the chairman of the Commission. The heads of the museum’s three main collecting areas will serve on the committee as part of their job duties. The other members will serve until they are replaced by the museum director or chairman of the Commission. The museum director will serve as the committee’s chair.

The Collections Committee will meet on a regular basis to consider proposed donations, incoming loans, bequests, exchanges, or purchases for the collections of the museum. All items coming before the committee shall be carefully considered and, upon a majority vote of the committee members, recommended to the museum director for acquisition or rejection. All votes shall be recorded in minutes of the Collections Committee. Other procedures will be established in writing by the committee in order to assure that the committee conducts its business in an orderly, fair manner in conformance with applicable laws, the Maine State Museum Code of Ethics, and relevant collections policies and plans.

For informational purposes, the museum director will present a written report of all collections activity at each meeting of the Museum Commission.

2. Areas of Collecting

Collections for the museum may be obtained according to the following rules:

A. Exhibit Collections. Artifacts or objects of immediate need for development of exhibits may be accepted or purchased at any time.

B. Study Collections. Artifacts or objects adding to the systematic strength of the collections in areas designated to be of special concern to the museum may be accepted at any time by donation, or through purchase.

Field Collections. Archaeological or natural sciences field collections may be obtained as a result of research projects approved in advance by the museum director.

State Property. With the exception of items held by the state agencies named in 27 MRSA Section 86-A, the Maine State Museum holds title, as trustee of the state, to all historical materials that are or may become the property of the state and are or may be held in the public buildings of the state. Selected items may be accessioned into museum collections, or transferred to an appropriate state agency.

E. Archaeological Objects, Materials, and Specimens. As described in 27 MRSA Section 371-372, the Maine State Museum holds title, as trustee for the state, to all archaeological objects, materials, and specimens found on, in, or beneath state-controlled lands. Selected items may be accessioned into museum collections, or transferred to an appropriate state agency.

F. Loans. The museum may accept artifacts or objects on loan from individuals and/or organizations. Generally, the museum will not accept loan artifacts for the purposes of storage.

3. Loans to Other Institutions

Loan of Maine State Museum collections may be made to other museums, non-profit institutions, or educational institutions. Generally, loans to individuals, commercial, or profit making organizations will not be made, with the exception of conservation loans. The museum may, however, provide exhibits or collections to such groups provided the museum has direct staff control or supervision over such materials at all times.

The Collections Committee will meet on a regular basis to consider proposed loans. All such proposed loans will be carefully considered and, upon a majority vote of the committee members, recommended to the museum director for acceptance or rejection. All such votes and actions will be recorded in minutes of the Collections Committee.

4. Identification of Surplus Collections for Deaccession and Disposition

Deaccessioning is the formal process used to legally and permanently remove material from the museum’s collections. Disposition is the manner in which the museum transfers material to a new owner or destroys it. The State Museum will identify and deaccession items in its custody that: have no pertinence to current or anticipated needs; have a quality and/or documentation insufficient to justify use in museum programs; and cannot be responsibly cared for and preserved through the available resources of the museum.

5. Procedure for Deaccession

A list of items recommended for deaccession shall be maintained by the museum director, subject to review and approval on an item-by-item basis by the Museum Commission. The list may include specific suggestions as to the preferred means of disposition as outlined in the museum’s approved policies for disposition.

History

• STATUTORY AUTHORITY: 27 MRSA §85-A subsection 3
• EFFECTIVE DATE: May 21, 1979 (filed May 30, 1979)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word
• EFFECTIVE DATE: January 1, 2006 – filing 2005-495
• EFFECTIVE DATE: 94-073 Chapter 505 Amended Rules as Adopted
• EFFECTIVE DATE: effective January 1, 2006
• EFFECTIVE DATE: page 3

Chapter 506 Public Access and Use of Museum Collections

Code Me. R. 94-073 Ch. 506 Public Access to and Use of Museum Collections {#sec-94-073-ch.-506 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 506}

SUMMARY: This rule establishes standards and procedures governing access to and the use of collections of the Maine State Museum.

1. PURPOSE; SCOPE OF RULE

The Maine State Museum recognizes an obligation to encourage study of the history and cultural heritage of the State. The purpose of this rule is to establish standards and procedures to govern access by the public to collections of the Museum which will foster the goal of research and also preserve and protect these holdings for the enjoyment of the public at large.

2. DEFINITIONS

The terms used in this rule have the following meanings:

Commission: "Commission" means the Maine State Museum Commission as established by Title 5, section 12004.

Director: "Director" means the Director of the Maine State Museum.

Collections: "Collections" means all items, artifacts, works of art, photographs or graphic representations held by the Museum, either in title or on loan whether exhibited or stored.

Museum: "Museum" means the Maine State Museum.

3. ACCESS TO MUSEUM COLLECTIONS

A. General Principles Governing Access

1. Access to Museum collections for reference and study purposes shall be determined by the Director, or his designee, in accordance with the conditions specified in this rule and shall not be unreasonably denied.

2. Access to collections may be supervised, limited, controlled or denied by the Director, or his designee, if such activities would not be in the public interest. In responding to a request for access, the Director shall consider the following:

a. Whether there is a potential for deterioration, mutilation, loss or dislocation of Museum collection items;

b. Whether access and required supervision would interfere with the administrative, professional, or technical operations of the Museum;

c. Whether access would result in undue interference with services to other Museum users; and

d. Whether the extension of a privilege of access would extend a unique benefit to an individual which is not available to the public at large or to other persons in a similar classification.

B. Limitations on Access

1. Access to collections, insofar as possible, will take place outside storage areas. When necessary, access in the storage areas may be granted, but to no more than two individuals at one time. Staff supervision is required by the member of the staff having responsibility for the collections to which access is requested, or as may be designated by the Director.

2. Members of the general public will not be granted unsupervised access to collections without the written approval of the Director. In general, the Director will only approve such unsupervised access In the case of volunteers or project staff persons, upon recommendation of the relevant staff member.

3. Access privileges may be limited by the availability of Museum staff to provide adequate supervision.

4. Consistent with the Museum's responsibility for preservation and safeguarding of the collections, the Director may deny access to collections which are likely to suffer damage from movement, handling, or other circumstances related to public examination.

5. The use of specific types of measuring devices (such as padded calipers, fabric measuring tapes, etc.) may be required, as well as other necessary means of protecting the items.

6. No three-dimensional mold forming techniques may be used in collecting information from items in the collection, except as may be specifically authorized by the Director.

7. The Director may deny access to items In the collection if such access would violate the terms of a restricted gift or loan, applicable rights-of-privacy laws, a specific agreement between the Maine State Museum Commission and a third party, or the terms of this rule.

8. No exclusive rights of access will be given. Access granted to an individual does not abridge the rights of others to similar access for the same or different purposes.

9. The ultimate responsibility for investigation of copyright or other legal limitations on use of Museum collections rests with the applicant.

10. To assist a future researcher, and reduce the need to rehandle artifacts, the Museum Director may require that the applicant provide copies of measurements, drawings, or other relevant materials or a copy of any material written and/or published as a result of access to Museum collections. Such data would be a part of the collections records and governed by the provisions of this rule.

11. Access to Maine State Museum collections does not imply any agreement between the researcher and the Maine State Museum. Staff efforts to facilitate access to Museum collections do not constitute approval of any work objectives, agreement with any research conclusions, acceptance of the accuracy or quality of the researcher's work, or any abridgment of access rights of others to the same materials.

12. The creation and sale of reproductions of Museum collections shall be governed by the provisions of Chapter 502 of the rules of the Museum.

13. Volunteers and students associated either directly or peripherally with the Museum wishing access to the Museum collections for personal purposes must comply with all requirements of this rule. Access way be arranged to take place at times not concurrent with their volunteer or student duties at the Maine State Museum.

C. Archaeological Artifacts and Related Data

Access to archaeological artifacts, sites and related data will be covered by this rule and by 27 M.R.S.A. §377 and rules issued pursuant to its authority. In the event of a conflict, the provisions of 27 M.R.S.A. Sec. §377 and the joint rule of the Museum and the Maine Historic Preservation Commission shall govern.

D. Procedures

1. Requests for access to collections items for research or other purposes must be submitted to the Director or his designee by means of a form designated by the Director.

2. Requests must be specific in nature as to collections needed, the nature of information sought. and the intended use or purpose.

3. PHOTOGRAPHY OF MUSEUM COLLECTIONS

A. Public Photography of Museum Exhibits

1. Photography in Museum exhibit galleries for personal use is generally permitted during normal hours of public visitation, unless otherwise posted.

2. Photography of the exhibitions may be supervised, limited, controlled or denied by the Director, or his designee, if such activities would:

a. Pose a danger or inconvenience to Museum visitors;

b. Endanger the building or the collections;

c. Violate the terms of a restricted gift or loan or any other specific agreement between the Museum and a third party; or

d. Of itself constitute an illegal act.

e. Result in photographs being used for a commercial purpose without proper approval.

3. Persons applying to engage in photography of Museum collections may be required to enter into an agreement which shall specify, as determined necessary and appropriate by the Director, any or all of the following:

a. Indemnify the Museum against any loss, claim or suit resulting from the photographic activity;

b. Comply with all instructions given by Museum staff to ensure protection of the collections and to minimize disruption to Museum activities;

c. Secure, maintain or reimburse the Museum for adequate liability insurance coverage and other insurance specified by the director;

d. Pay any damages caused by the activities related to the photography and pay costs incurred to accommodate the photography such as electrical and extra staff time and security work;

e. Comply with all instructions or conditions concerning the name and identification of the Museum, such as inclusion or exclusion of captions or credit lines, specific disclaimers of connection with the Museum;

f. Comply with all applicable restrictions such as those which exist to protect copyright, trade rights, privacy interests or the terms of a loan, gift or other acquisition agreement.

B. Photography by Museum Staff

1. All photographs or other graphic reproductions of Museum collections other than photography of exhibits for personal use will be made by the Museum staff, unless specific exception is granted by the Director. Exceptions may be granted for photography employed as an information gathering device to be used by an individual doing personal research, subject to limitations concerning the safety and conservation of collections. If such photographs are to be used for other than personal reference, a separate request for photographic access must be submitted.

2. Requests for photographs or other reproductions must be submitted to the Director on a form designated by him.

3. Photographs will be provided as quickly as possible, consistent with other Museum programs and institutional duties and depending on the availability of selected staff.

4. The Director will establish, and adjust as needed, a fee schedule for all photographic or other copy work done by Museum staff. Fees will be payable in advance,. except through special arrangements with the Director.

5. All photographs prepared by the Museum will bear the Museum's copyright notice and may bear notice of the specific requirement or limitations for publication purposes.

6. Purchase from the Museum of any copyrighted photographs will not convey to the purchaser any rights of copyright.

7. PUBLICATION OF MUSEUM PHOTOGRAPHS

A. Photographs for Educational Purposes

1. Publication of photographs taken of Museum collections is permitted for educational purposes, upon approval of the Director. Educational purposes shall mean the use of photographs in non-fiction books, magazines and periodicals, documentaries, public television, and news and public affairs/service programs.

2. Persons or firms wishing to publish photographs of Museum collections, taken either by Museum staff or by themselves, shall enter into an agreement with the Director, acting on behalf of the Museum. The agreement shall include, as deemed appropriate by the Director and legal counsel, the following provisions:

a. Indemnify the Museum and the State against any loss, claim or suit resulting from publication of the photograph(s);

b. Comply with all instructions or conditions concerning the name and identification of the Museum and/or any staff member, such as inclusion or exclusion of captions or credit lines, or specific credit or disclaimers of connection with the Museum;

c. Comply with all applicable restrictions such as those which exist to protect copyright, trade rights, privacy interests or the terms of a loan, gift or other acquisition agreement.

B. Photographs for Other Purposes

1. The use of photographs of Museum collections which may be specifically or uniquely associated with the Maine State Museum for advertising or promotional purposes is not generally permitted.

2. Exceptions to this prohibition may be made at the discretion of the Director in instances involving the interests of the State of Maine and in the State's support of educational or non-profit activities.

The Director may also approve the use of photographs or graphic reproductions of "generic" objects in the collections. Such items are deemed to be items that are not explicitly associated with the Museum collections or could not be recognized as part of the Museum collections.

6. ACCESS TO MUSEUM RECORDS

A. Public Records: General Principle

Records pertaining to the Museum collection which are public records within the meaning of the Freedom of Access law (1 M.R.S.A. §401 et. seq.) shall be made available for public inspection and copying upon request as required by law. Fees for copying shall be set by the Director, unless otherwise determined by law, executive order or applicable rule.

The Director or the Registrar shall respond in a timely manner to any request for inspection and/or copying of public records held by the Museum.

B. Historical Records

1. Historical records of the Museum not currently on exhibit may be inspected by scholars, students or members of the public upon permission by the Director or his designee. Access to such records will not be unreasonably denied. Any decision regarding access to such records will be consistent with the Museum's responsibility for safeguarding its collections and shall take into consideration the following:

a. The possibility of deterioration, mutilation, loss, or dislocation of research data and records;

b. Interference with administrative, professional, and technical operations and duties of the Museum; and

c. Undue interference with the Museum's ability to furnish services to other users of the Museum.

2. The Director may deny access to historical records which are likely to suffer damage or dislocation resulting from public inspection.

C. Archeological Records

Access to records relating to archeological artifacts, sites and related data will be governed by the provisions of this rule and 27 M.R.S.A. § 377 and rules issued pursuant to its authority. In the event of a conflict, the provisions of 27 M.R.S.A. §377 and the joint rule of the Museum and the Maine Historic Preservation Commission shall govern.

D. Procedures

1. Request for access to public, historical or archeological records held by the Museum must be submitted to the Director or the Registrar on a form designated by him. Requests must be specifically descriptive of the records sought or the information requested that Museum staff can identify and meet the request.

2. Inspection of records held by the Museum will, insofar as possible, take place outside the collections storage or record-filing areas. No records may be inspected without staff supervision, unless there is prior written approval of the Director. In general, the Director will permit unsupervised access to public records only In the case of Museum volunteers or project staff persons, upon recommendation of the relevant staff.

History

• STATUTORY AUTHORITY: 27 M.R.S.A. §§83, 85
• EFFECTIVE DATE: March 18, 1983
• AMENDED: June 28, 1987
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• NON-SUBSTANTIVE CHANGES: March 23, 1999 - minor capitalizations.
• NON-SUBSTANTIVE CHANGES: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 511 Conservation Center

Code Me. R. 94-073 Ch. 511 Conservation Center {#sec-94-073-ch.-511 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 511}

SUMMARY: To establish rules and regulations for the Conservation Center.

1. Purpose

The Maine State Museum Conservation Center performs conservation services on historical and artistic works of significance to the cultural and environmental heritage of Maine. 27 M.R.S.A. §85.3 Operational Procedures.

2. Conservation Policy Decisions

Conservation policy decisions are established by the Maine State Museum Commission. Administration of Commission policy is the responsibility of the Director of the Maine State Museum.

3. Organization

Supervision of the Conservation Center is assigned on a continuing basis to the Research and Collections Division.

4. Procedure for Handling Requests

A. Requests for Services. Requests for conservation work, consulting services, cost estimates, etc. will be referred to the Director or his designate.

B. Consultation. Artifacts brought to the Conservation Center by the owner will be examined without cost for an informal evaluation. Upon owner's written authorization, a written condition report will be prepared together with a statement of treatment required when appropriate. Such services will be billed at the rates established in the fee schedule.

C. Conservation Treatment. If the owner wishes to have the treatment performed at the Conservation Center, the owner must sign a release statement authorizing the conservation treatment and guaranteeing payment upon delivery of the conserved artifact.

D. Remedial Conservation Work. A written report by the conservation staff will be prepared at the owner's expense covering all remedial conservation work.

E. Priority Work. Determination of priority work will be made by the Museum Commission. Between meetings of the Commission, the Director or his designate will be empowered to make such decisions and judgments as necessary to assure maximum productivity and efficiency.

5. Fee Schedule for Consultation

Fees for consultation services will be established by the Director and approved by the Commission in accordance with 27 M.R.S.A. §90.

A. Government Agencies and Organizations. Government agencies and organizations exempt under Section 501 (c) (3) of the U.S. Internal Revenue Code (except private foundations), will be charged at a base rate representing actual costs.

B. Private Foundations. Organizations exempt under Section 501 (c) (3) of the U.S. Internal Revenue Code but which are private foundations as defined under Section 509, will be charged the base rate as noted in 5A above, plus 25%.

C. Others. Individuals, profit-making organizations, and non-operating trusts will be charged at the base rate as noted in 5A above, plus 50%.

D. Subsidies Available. The Director may at his discretion and according to guidelines established by the Museum Commission, enter into an agreement for conservation services by which the Museum will subsidize part of, or all of the work to be performed in order to meet its statutory requirement to preserve and safeguard collections having particular historical significance to the State.

History

• STATUTORY AUTHORITY: 27 MRSA §85.3
• EFFECTIVE DATE: May 21, 1979
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• NON-SUBSTANTIVE CHANGES: 94-073 Chapter 511 page 1

Chapter 521 Public Services

Code Me. R. 94-073 Ch. 521 Public Services {#sec-94-073-ch.-521 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 521}

SUMMARY: It is the function of the Maine State Museum to interpret and present the collections and the knowledge acquired through research to all citizens of this state in a meaningful and educational manner with the primary objective of developing an understanding of the environment, cultural, and historical development of Maine. 27 MRSA §85.6-7 Operational Procedures.

1. School Programs

Educational programs relating to Maine's history and culture are available to school students, K through 12, during the school year upon appointment.

2. Procedure for Booking School Program

A. Programs Offered. A general description of programs offered will be available to teachers at the beginning of each school year.

B. Scheduling. Teachers are requested to select three dates, a preferred date and two alternate dates, for their visit to the Museum with due regard for time for pre-visit preparation in the classroom, transportation to the Museum, and follow-up activities in the classroom. The Museum will confirm the date and time by mail.

C. Requirements. The teacher in charge will be required to sign a statement agreeing to abide to the rules and regulations of the Museum which state each group must have one adult for every ten children; children under the age of 8 must be accompanied by an adult; adults are to stay with their groups at all times and be responsible for maintaining order and no food or beverage is allowed in the Museum. Groups must arrive at the time scheduled to receive the full program.

D. General Regulations. Confirmations should be checked carefully for further directions on making a school visitation to the Museum an educational experience.

3. In-school Programs

A limited number of educational programs will be taken to schools in the State where distance prohibits those schools from visiting the Museum in Augusta.

4. Group Visits

Organized groups of youth and adults not participating in school programs should schedule visits in the same manner as school groups. Each group will be required to read and sign a statement to abide by the rules and regulations of the Museum during their visit. Guided tours and/or special programs must be arranged in advance of the visit.

5. Field Services

Technical and advisory services will be offered to other museums, historical societies, and related institutions and organizations of the State where, in the Director's judgment, such a commitment of Museum resources would be of benefit to the State and would have no significant adverse impact upon higher priority programs.

6. Speakers

Within its capabilities, the Museum will provide speakers for meetings, workshops, conferences, and/or participate in such other activities which will promote the effectiveness of the Museum.

7. Reimbursement of Expenses

Although routine field services will be provided without charge, the Museum reserves the option of requesting partial or full reimbursement of expenses actually incurred in providing extraordinary field services.

8. Inquiries from Individuals

The Museum cannot as a rule commit its resources to support private undertaking or to respond to inquiries from private individuals.

9. Use of Museum Library

Books and related materials housed in the Museum's resource center are for the primary use of staff research and may not be loaned for use outside the Museum. Researchers may use books in-house by permission of the Museum Registrar.

10. Code of Dress

Persons visiting or using the museum facilities are required to be adequately clothed, including shoes and shirts.

11. Pets

With the exception of Seeing Eye dogs, no pets will be permitted within the museum galleries.

12. Food and Beverage

No food or beverage will be permitted in the Museum galleries without the express permission of the Director.

History

• STATUTORY AUTHORITY: 27 MRSA §85.3
• EFFECTIVE DATE: May 21, 1979
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• NON-SUBSTANTIVE CHANGES: 94-073 Chapter 521 page 1

Chapter 531 Maine State Museum Store

Code Me. R. 94-073 Ch. 531 Maine State Museum Store {#sec-94-073-ch.-531 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 531}

SUMMARY: To establish rules for the Maine State Museum Store Sales Program

1. Museum Sales Program

The basic sales program policy of the Maine State Museum shall parallel the basic objectives of the Museum as established by legislation. It is the Museum's responsibility to serve all areas and appropriate specialized or related interest groups within the state in a suitable manner.

2. Merchandise Priority

A. Those items pertaining to the natural history of Maine, the archaeology or ethnology of Maine Indian groups, historical materials relating to Maine from the point of view of origin, uses, events, or personages, and/or those crafts once practiced in Maine or associated with Maine.

B. Those items defined in “A” which have regional significance but are important in their relationship with Maine's own development.

C. Those items that are specialized in their nature but related with activities or techniques generally carried on in museums.

D. Educational items that are nationally or internationally oriented, but whose value as educational materials makes them worthy as instructional or educational materials in the subject field.

E. Those items that are not of a highly competitive nature with other outlets in the state.

3. Categories of Items

A. Publications. Publications to be sold in the Museum Sales Program may include the following:

1. Maine State Museum Publications.

2. Publications on Maine subjects by other publishers.

3. Publications on antiques or other subjects within a specific subject field which have application to museums or museum topics.

4. Publications on museums or museum topics.

5. Special educational publications for children and adults on subjects of concern to museums, but broader than the state in their coverage.

B. Reproductions

1. Items from the Maine State Museum collections worthy of reproduction from point of view of objects significant in Maine's development or uniqueness of object including furniture, broadsides, pewter, sculpture, castings, etc. and items of educational or emotional interest.

2. Properly marked reproductions by Maine craftsmen of Maine items following same basic criteria as above.

C. Handcraft Items

1. Items produced by Maine craftspeople and accurately representative of historic craft, object, or method utilized by Maine people.

2. Modern crafts representative of Maine, or unique to Maine, although essentially modern in design or function.

D. Prints and Paintings

1. Copies of prints by Maine artists or of Maine scenes.

2. Originals or reproductions of paintings by Maine artists or of Maine scenes.

3. Broadsides, photographs, etc. of Maine scenes, personalities, etc.

E. Gifts and Decorative Accessories

1. Jewelry, glassware, pewterware, etc., used essentially as decorative elements for the person or home, but representative of Maine products. or materials, Maine crafts or items used in Maine either in the past or present.

2. Those items delineated above but related to a special event or celebration, e.g. Sesquicentennial or Bicentennial items.

F. Paper Products

1. Stationery, note pads, etc. appropriately designed and depicting a Maine scene, personage, event, or activity.

G. Educational Games or Kits

1. Specimen sets, picture sets, etc. of Maine-oriented type primarily for children.

2. Same type of items but not Maine-oriented. Well selected of educational value, low cost, for children.

H. Audio-Visual Materials

1. Slides, films, tapes, CDs, picture sets, etc. of Maine topics or by Maine performing artists for special educational and general audience use.

2. Postcards and photos of appropriate Maine scenes.

I. Hobbyist Equipment and Materials

1. Items should relate directly to Maine and Museum-oriented functions and collections.

2. Selection of Items

Items should be purchased from Maine suppliers and produced in Maine by Maine artisans where possible. Final determination which will be consistent with the policy as delineated will be made by the Store Manager in consultation with the Museum Director.

5. Operation of Sales Program

Operation of the sales program will be in charge of the Store Manager. Matters relating to discount, consignment, etc. will be resolved by the Store Manager and/or Museum Director. All decisions should be consistent with State Law and the policy as delineated by the Maine State Museum Commission. Special attention should be given the provisions of 27 MRSA c. 2 §89.

History

• STATUTORY AUTHORITY: 27 MRSA §85-A subsection 3
• EFFECTIVE DATE: May 21, 1979 – as “Publications Program”
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word
• REPEALED AND REPLACED: January 1, 2006 – filing 2005-496 as “Maine State Museum Store”
• REPEALED AND REPLACED: 94-073 Chapter 531 – Rules to Replace Repealed Rules
• REPEALED AND REPLACED: effective January 1, 2006
• REPEALED AND REPLACED: page 4

Chapter 551 Acceptance of Works of Art from Estates

Code Me. R. 94-073 Ch. 551 Acceptance of Works of Art from Estates {#sec-94-073-ch.-551 omnilex-key=us-me-regs-official--dept-independent-agencies--94-073 Ch. 551}

SUMMARY: To clarify rules and regulations regarding acceptance of works of art from estates in lieu of estate taxes.

1. Purpose

Pursuant to 27 MRSA §91, et. seq., the Maine State Museum is authorized to accept works of art on behalf of the State of Maine. The Commission will be using the values established for tax purposes by the Bureau of Taxation in fulfilling its responsibilities under 27 MRSA §93.2. This law encourages not only citizen investment in the State's cultural resources as regards art, but also the preservation and retention by the state of historical artifacts.

2. Selection of "Works of Art"

A. Offers. Inquiries and offers will be directed by the Commission to the Director of the Maine State Museum for investigation of the suitability of the offer. Periodic reports will be made to the Collections Committee of the State Museum Commission.

The Director will seek the advice of the Maine Commission on the Arts and the Humanities and secure whatever other advice and consultation is deemed necessary to support his recommendations to the Collections Committee of the Maine State Museum Commission.

B. Commission Decision. Upon report of the Collections Committee, the Maine State Museum Commission will issue a decision.

1. Favorable Decision. If the decision is to accept a particular payment in property, this decision will be conveyed immediately to the Maine Office of Taxation for their review and decision.

2. Negative Decision. If the decision is not to accept a proffered payment in property, this decision will be final and not subject to appeal.

C. Acceptance of Items. All "Works of Art" accepted as part of this law shall be accessioned into the collections of the Maine State Museum in accordance with 05-073 CMR 505.

3. Disposition of. "Works of Art"

Disposition of museum collections acquired under this law, and through application of these Administrative Procedures, shall be governed by 05-073 CMR 505.

History

• STATUTORY AUTHORITY: 27 MRSA §85.3
• EFFECTIVE DATE: January 11. 1980
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 19, 1997
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• NON-SUBSTANTIVE CHANGES: 94-073 Chapter 551 page 1

94-075 Maine State Library

Chapter 1 Rules Regarding Responsibilities of Public Libraries

Code Me. R. 94-075 Ch. 1 Rules Regarding the Responsibilities of Public Libraries {#sec-94-075-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-075 Ch. 1}

SECTION 1.

Public libraries in Maine shall submit the Public Libraries Survey (a.k.a. the Public Library Annual Report) to the Maine State Library by April 1 each year and must maintain an active subscription to either MELIBS-L or MEINFO-L. Failure to comply with this rule may result in the revocation of state-wide library services provided by the Maine State Library, including but not limited to internet access via the Maine School and Library Network (MSLN).

History

• STATUTORY AUTHORITY: 27 M.R.S. §112(2)
• EFFECTIVE DATE: February 2, 2011 – filing 2011-30
• EFFECTIVE DATE: MOVED FROM 94-082 TO 94-075 DUE TO BUREAU OF THE BUDGET INFORMATION:
• EFFECTIVE DATE: May 15, 2017

94-088 Maine Arts Commission

Chapter 1 Rules for Eligibility and Criteria for Awarding Matching Grant Funds to Organizations

Code Me. R. 94-088 Ch. 1 Rules for Eligibility and Criteria for Awarding Matching Grant Funds to Organizations {#sec-94-088-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-088 Ch. 1}

SUMMARY: These rules define eligibility and criteria for awarding matching grants to nonprofit organizations and governmental units in Maine and to regional endeavors within New England as they affect Maine.

1. Eligibility

Nonprofit organizations that are registered with the State of Maine and have tax exempt status (or pending tax exempt status) from the Internal Revenue Service are eligible. Units and sub units of local and county government are eligible. Units and sub units of state government are eligible for programs involving professional artists which are supported by more than one unit or sub unit of state government.

2. Matching

All federal funds must be matched at the state or local level from non-federal funds on at least a dollar for dollar basis.

3. Review Procedure

Applications are reviewed by Maine Arts Commission staff, advisory committees and Maine Arts Commission members. Final decisions for process approval are made by the Maine Arts Commission members except in those cases where Maine Arts Commission members delegate decision making to Maine Arts Commission staff. Final decisions on grants are based on the criteria indicated in the individual program guidelines, as amended annually, and approved by the Maine Arts Commission when policy changes are made.

4. Grantee’s Responsibilities

The grantee obligates itself to promote and publicize the project(s) for which funds are granted and will include in all promotion, publicity and advertising the agency logo/tagline and the following minimum credit line: "with the support of the Maine Arts Commission." This credit line must appear directly after the name of the grantee and before the names of the participants in the project in type and boldness no less than 75% of that used for the name of the grantee.

A full accounting of the project(s) in both narrative and fiscal form must be supplied to the Commission within thirty days following the completion of the project(s). Such accounting must be supplied on the standard Maine Arts Commission grant report form and is subject to audit by the responsible state or federal agency. Financial records must be kept on file a minimum of three years following the official termination of the grant.

History

• STATUTORY AUTHORITY: 27 MRSA §409
• EFFECTIVE DATE: February 3, 1966
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 21, 1996
• AMENDED: February 7, 2006 – filing 2006-59
• AMENDED: 94-088 Chapter 1 page 2

Chapter 2 Rules for Awarding Grants and Providing Services

Code Me. R. 94-088 Ch. 2 Rules for Awarding Grants and Providing Services {#sec-94-088-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--94-088 Ch. 2}

SUMMARY: This chapter outlines the procedures and standards governing grant-making and services offered by the Maine Arts Commission.

1. Provisions for awarding grants and providing services.

A. DEFINITIONS

I. Agency: “Agency” shall mean the Maine Arts Commission, and shall include Maine Arts Commission members, the Director and staff and Review Committees.

II. Artist: “Artist” shall mean an individual who may be trained in, and/or practice an art form as a creator, performer, director or tradition bearer in one or more of, but not limited to, the arts disciplines of dance, design arts, literature, media arts, music, theater, traditional arts, and visual arts, and may satisfy some or all of the following criteria:

(a) receives, or has received, remuneration for works, notably in the form of sales, royalties, commissions, fees, residuals, grants, and awards that can reasonably be considered an integral part of the income that the artist earns from arts activity, or

(b) receives recognition from the public or peers, notably honorable mentions, awards, or critical attention in the media for the work, or

(c) presents works to the public through exhibitions, performances, readings, showings or any other means corresponding to the nature of the works, or

(d) is represented by, or contracts with, a dealer, publisher, agent, producer, or similar representative, depending on the nature of the work, or

(e) devotes a reasonable percentage of time or effort promoting and marketing works, attending auditions, seeking patrons or agents, and other similar efforts, depending on the nature of the work.

III. Arts: “Arts” shall mean any activity undertaken by arts organizations or individual artists, involved with, but not limited to, the disciplines of arts in education, community arts, dance, design arts, literature, media arts, museums, music, performance arts, theater, traditional arts, and visual arts.

IV. Commission: "Commission" shall mean the Maine Arts Commission, a policy-making Board of the Agency, whose members are appointed by the Governor. (27 MRSA §401)

Committees: The Maine Arts Commission may vote to establish standing committees relating to Agency programs and the Chair of the Maine Arts Commission may appoint ad-hoc task forces and working groups to carry out the work of the Agency.

VI. Director: "Director" shall mean the paid chief executive officer of the Maine Arts Commission charged with carrying out the activities of the Agency, to whom all Agency staff are responsible. (27 MRSA §403-A)

VII. Executive Committee: "Executive Committee" shall mean the officers (Chair and Vice Chair – both appointed by the Governor as defined in IV. above) of the Commission and other appointed members by the Chair of the Commission. The Executive Committee shall meet at regular intervals between Commission meetings to prepare the work and agendas for the Commission and act on behalf of the Commission.

VIII. Review Committees: “Review Committees” shall mean volunteer members of the arts and arts-related communities, who may be in- or out-of-state residents, including arts practitioners, presenters and administrators, and who represent either peer-status of organizations or individuals applying for grants, or expertise in a particular arts or administrative field. Review Committees shall be nominated by the Maine Arts Commission, Director and/or the public, and are appointed by the Chair or Director of the Maine Arts Commission. Review Committees shall be administered by the Director and shall make recommendations to the Maine Arts Commission with regard to grant applications and other Maine Arts Commission projects. Review Committees may be standing or ad-hoc. Some Review Committee functions may be accomplished by the use of a Review Jury.

IX. Statewide Arts Service Organizations: "Statewide Arts Service Organizations" shall mean any discipline-based, nonprofit, arts organizations which provides statewide services to its membership and/or general public. Service organizations may serve, but are not limited to serving, the disciplines of arts in education, community arts, dance, design arts, literature, media arts, museums, music, performance arts, theater, traditional arts and visual arts.

B. AWARDING OF GRANTS

The Agency may make grant funds available to eligible arts nonprofit organizations, arts service organizations, educational organizations engaged in arts programming, units of government, other organizations engaged in arts programming and individuals.

Grant awards may carry a matching component based on, but not limited to cash or services.

I. Eligibility: Organizations or individuals shall first meet the following eligibility requirements before applying for a grant:

(a) an individual shall

(i) be an artist or arts administrator, and

(ii) be a Maine resident as evidenced by,

(aa) required to file Maine State income tax during the granting year as well as the year prior, and

(bb) have resided in Maine for at least 183 of the past 365 days, and

(iii) be eighteen years or older, and

(iv) be subject to the Conflict of Interest rules of Section C below.

(b) an organization shall

(i) be a not-for-profit organization, established in the State of Maine, and

(aa) have tax-exempt status (501)(c)(3) from the Internal Revenue Service, or

(bb) be a unit of local, county or state government, or

(ii) be a regional, national, or international arts service organization including, but not limited to, the New England Foundation for the Arts and the National Assembly of State Arts Agencies.

II. Grant Application: Individuals or organizations eligible for grant funding shall make application with the Agency as follows:

(a) an individual or organization shall complete the appropriate application form and/or steps obtained from the Agency, and

(b) an individual or organization shall provide additional application materials and/or provide for a site visit from an advisory panelist if requested, and

(c) an individual or organization may consult the Director with regard to the application, and the program/project it is meant to fund.

III. Application Review: All Agency grant programs shall be reviewed in accordance with an established timeline and may be reviewed competitively.

The grant review process shall be outlined in Agency publications which are made broadly available to the public. Grant applications may be reviewed by:

(a) a standing or ad-hoc Review Committee, or

(b) a jury, or

(c) a reader, or

(d) the Director

utilizing a set of artistic and/or management criteria outlined by the specific grant program, including but not limited to:

(i) artistic merit of the individual or project,

(ii) responsible financial and organizational management,

(iii) ability to provide for the grant match as requested,

(iv) degree of community involvement, or

(v) ability to serve special constituencies.

A Review Committee, upon reviewing grant applications, shall make a recommendation to the Director for final grant approval. The Director shall then take the recommendations to the Commission, which upon reviewing grant applications, shall have authority to make final grant approval based on the process and may delegate this responsibility to the Director. The Director shall be responsible for preparing a record of all grant review procedures to be made available to the public.

IV. Grant Award Approval: Final decisions on grant awards shall be determined by:

(a) the Director, or

(b) the Commission.

V. Appeal Process: Any grant applicant shall have the opportunity to appeal a grant decision by submitting an appeal in writing to the Chair of the Commission within thirty days of notification of the grant decision.

An appeal shall be made only on the basis of the procedure taken by the Review Committee or Director in reviewing the application, and not on the artistic, management or other evaluations, based on grant review criteria, made by the Review Committee or Director.

The Director shall be responsible for presenting appropriate materials regarding the appeal to the Grant Review Committee of the Commission.

The Grant Review Committee

(a) shall review the appeal and written material provided by the appellant and the Director, and

(b) may hear the appellant's case in person, and

(c) shall make a recommendation to the Commission Chair.

The Chair of the Commission shall consider the recommendation of the Grant Review Committee, and shall make all final decisions regarding appeals. A decision made in favor of the appellant may result in the awarding of grant funds.

VI. Responsibilities of the Grantee: Once a grant award is made, the grantee shall be responsible for the following:

(a) using the awarded funds only for the specific program or project applied for, and

(b) signing and returning the Letter of Agreement in accordance with the grant letter, and

(c) complying with all required federal and state regulations in accordance with the grant letter, including but not limited to the following:

(i) assurance that the grantee and any organization assisted by it will comply with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973 as amended, Title IX of the Education Amendments of 1972, The Age Discrimination Act of 1975 and Agency policy, all of which bar discrimination in federally assisted projects on the basis of race, color, national origin, sexual orientation, age, disability or sex, and

(ii) assurance that the grantee will comply with the Americans with Disabilities Act (ADA) of 1991 which guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, state and local government services and telecommunications, and

(iii) assurance that the grantee will comply with the Drug-Free Workplace Act of 1988, and

(iv) assurance that the grantee and any organization assisted by it will comply with sections 5(j) and 5(k) of U.S. Public Law 89-209 in regard to the employment of professional personnel, mechanics and labors employed for any construction project and the health, safety and sanitary laws of the state, available to the U.S. Secretary of Labor upon request, and

(v) compliance with 18 U.S. C. Sec. 1913 regulating lobbying with appropriated monies and with the Hatch Act (5 U.S.C. Sec. 1501-1508 and 7324-7328) which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds, and

(vi) assurance that the grantee will maintain an adequate financial management system to provide efficient and effective accountability and control of all property, funds and assets in compliance with OMB Circulars A-102, A-128 (for local governments) and A-110 (for nonprofit organizations and universities), and

(d) utilizing the proper credit line on all materials related to the program/project for which funding is awarded to read: “This program/project is supported, in part, by the Maine Arts Commission, a state agency supported by public tax dollars,” and

(e) submitting a final report within thirty days after the conclusion of the grant period, in accordance with the grant letter; failure to do so will make the applicant ineligible to apply or receive future Agency funds until submitted.

C. CONFLICT OF INTEREST

In accordance with the above or any other requirement of state law, members of the Commission, Review Committees and staff have the responsibility to avoid direct and indirect private interest which is at variance with the impartial performance of their public duty. Members also have responsibility to avoid the appearance of a conflict of interest by disclosure or by abstention. At the same time, since members of the Commission, Review Committees and staff have keen interest in the arts and in arts organizations in the state, they should not disqualify themselves from either ongoing participation in the arts and arts organizations of their choice, or from general policy-making discussions and decisions which carry out the statewide obligations of the Agency.

I. No member of the Commission, Review Committees or Agency staff, or any spouse or dependent children of such individuals, on behalf of themselves or with respect to an organization with which they are employed as staff or consultant, or in which they have a direct and substantial financial interest shall:

(a) submit or sponsor applications or proposals as individuals and/or on the behalf of organizations for Agency funds, or

(b) seek to influence the decisions of members of the Commission, Review Committees or staff regarding applications for Agency funds, or

(c) receive, accept, take, seek or solicit directly or indirectly, gifts, gratuities, favors, or anything of economic value from any person or organizations if there is any reason to believe the donor would not give said item except for that individual's office or responsibility with the Agency, or to unduly influence that individual's action on applications for Agency funds.

II. No members of the agency staff shall participate in their official capacities in any proceedings which may fund or otherwise support:

(a) individuals or organizations with whom the staff members (including spouse and dependents) are employed or are negotiating with for future employment, or

(b) organizations for which the staff members (including spouse and dependents) serve on the governing boards.

III. All members of the Commission, Review Committees and staff shall file and keep current on an annual basis with the Director statements listing those organizations reasonably expected to be eligible for agency funds in which they have a familial or policy-making interest, or direct and substantial financial interest.

IV. The Chair of the Commission shall have responsibility to see that members of the Commission and Review Committees abide by these rules regarding conflict of interest, and the Director shall have similar responsibilities regarding the staff.

V. Nothing in these rules shall prohibit a member of the governing board of an arts organization (“a board member”) from serving as a member of the Maine Arts Commission (“a Commission member”). During his/her term of service as a Commission member, a board member shall comply with all provisions related to conflict of interest stated in this section and shall not participate in any manner in the consideration of grant applications by any organization on the board of which the Commission member serves.

VI. If a compensated Executive Director, staff member, employee of an arts organization, or the spouse or dependent children of any such individual (collectively referred to as “the organization agent”), is serving as a Commission member, that organization is not eligible to apply for grants or funding, and any application for grants or funding submitted by the arts organization by which the organization agent is employed or compensated shall be disqualified from consideration.

History

• STATUTORY AUTHORITY: 27 MRSA §409
• EFFECTIVE DATE: January 16, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 21, 1996
• AMENDED: February 7, 2006 – filing 2006-60
• AMENDED: March 14, 2018 – filing 2018-037

Chapter 3 Rules to Carry Out the Percent for Art Act

Code Me. R. 94-088 Ch. 3 Rules to Carry Out the Percent for Art Act {#sec-94-088-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--94-088 Ch. 3}

SUMMARY: The following rules to carry out The Percent for Art Act outline the purpose, selection procedures, standards, eligibility of artists, inclusions and exclusions, and contracting procedures.

SECTION 1. Purpose and Scope

The following rules have been established to assure the expeditious and equitable selection of works of art for public buildings and other facilities, and shall be implemented with the guidance of the Maine Arts Commission (“Agency”). Definitions for Agency, Commission, Review Committee and Director are as defined in Chapter 2.

SECTION 2. Selection Procedures

A. Advisory Committee

Selection shall be by the contracting agency which shall consider the recommendations presented by an advisory committee composed of members chosen by the contracting agency and by the Director of the Agency.

I. Size: The number serving shall be no less than three and no more than five, except that in the case of projects with Percent for Art budgets of less than $7,000, the number shall be three.

II. Composition: The project architect, a representative chosen by the contracting agency, and a representative chosen by the Director of the Agency shall be members of all advisory committees. Additional advisory committee members shall be selected equally by the contracting agency and by the Director of the Agency from any of the following areas in whatever combination best applies to the project; museum director or curator, art historian, critic, collector, artist not in competition, art educator, or lay member of the public, except that in the case of any public school, vocational school, or university construction, a student may be appointed by the contracting agency.

III. Responsibilities

a. Contracting Agency Representatives: Committee members representing the contracting agency may serve as chair and secretary of the committee. A single committee member may serve in both capacities.

i. Chair: The committee chair serves as the liaison to the contracting agency, keeps records, administers the budget, publicizes the project, and files final reports.

ii. Secretary: The committee secretary serves as the liaison among committee members, keeps and distributes minutes of each meeting, and prepares requests for proposals and other correspondence with artists.

b. Maine Arts Commission Representatives: Committee members appointed by the Director of the Agency shall participate in all committee decisions and shall provide artistic and technical advice. As per 27MRSA §458(4), the Agency shall collect an administrative fee to administer the projects.

c. Architect: A representative of the architectural firm shall participate in all committee decisions, and shall provide technical assistance. Engineering and design changes required for installation or display shall be compensated separately. See section 3.B., Inclusions and Exclusions.

d. Maine Arts Commission: The Director of the Agency, or the Director's designee, coordinates and records the Percent for Art program, interprets the Percent for Art Act , provides information and technical assistance, may act as committee chair and/or secretary, and prepares reports and makes presentations to the Commission for approval of the selection process.

IV. Remuneration: Committee members not appointed by the contracting agency shall be reimbursed for their necessary travel expenses at current state government rates or contracting agency rates, whichever is greater. In the case of necessary off-site travel, committee members appointed by the contracting agency may also be reimbursed for their travel expenses. Reimbursable administrative costs incurred by advisory committee members and by the contracting agency shall include but may not be limited to: honoraria or design fees, postage, duplication, advertising, and telephone costs. The total cost of advisory committee expenses for each project shall not exceed 10% of the amount allocated for the purchase of works of art except in certain circumstances approved in advance by the Director of the Agency.

V. Commission Approval: The Commission delegates final selection of the artists and artwork to the advisory committee and approves the procedures followed for the project under the rules and regulations.

VI. Local Approval: It the contracting agency is a public school or school district which does not delegate final selection of the artists and artwork to the advisory committee, it shall appoint at least one representative from its governing board to sit as a voting member on the advisory committee.

VII. Documentation: Each contracting agency or Commission shall document the process of selecting works of art and artists. Minutes of each advisory selection committee meeting shall be forwarded to the Maine Arts Commission office by the committee secretary. Final written documentation shall be forwarded to the Agency within thirty (30) days of the completion and/or installation of any project by the committee chair. Artists shall provide photographic documentation of the artwork installed to the Agency in the form of six (6) professional quality slides and two 8" x 10" black and white photographs and/or other means based on technological requirements of the Agency.

VIII. Conflict of interest: All committee members shall disclose all potential conflicts of interest and shall disqualify themselves if such conflicts violate state law or established standards for juried competitions. All committee members have the responsibility to avoid direct and indirect private interest which is at variance with the impartial performance of their public duty. Members also have responsibility to avoid the appearance of a conflict of interest by disclosure or by abstention. At the same time, since members of the committee have keen interest in the arts and in arts organizations in the state, they should not disqualify themselves from either ongoing participation in the arts and arts organizations of their choice, or from general policy-making discussions and decisions which carry out the statewide obligations of the Agency.

a. Advisory committee members (including spouses and dependents) must not have direct or indirect interest, financial or otherwise, or engage in any business or transaction, or incur any obligation of any nature that conflicts with the selection of artists and artwork for the designated Percent for Art project.

b. Artists under consideration shall not be affiliated with advisory committee members, with the contracting agency, with the architectural or design firm involved with the project, or with the Commission staff member assigned to the project. Affiliation which constitutes conflict of interest shall include but not be limited to:

i. An employee, employer, agent, or dealer relationship;

ii. A relationship by blood, marriage, business, partnership or collaboration;

iii. Any other relationship that may compromise the objectivity of members of the advisory committee.

c. Artists who are full-time employees of the University of Maine and Maine Community College Systems shall be ineligible only for Percent for Art projects at the campus where they are employed.

B. Eligibility of Artists

I. Maine Residency: Preference may be given to artists who are Maine residents as outlined in Chapter 2 of the Agency Rules.

C. Methods of Selection

I. Direct Selection: The advisory committee recommends the purchase of a completed work of art or the commissioning of a specific artist.

II. Limited Competition: The advisory committee recommends that a limited number of artists selected from the Artists Registry be interviewed or submit proposals on a competitive basis.

III. Open Competition: A competition to which artists must apply directly. A prospectus, appropriate to the specific project, is prepared and its availability is widely publicized. A limited number of applicants are then selected to prepare detailed proposals.

IV. Disapproval: If the advisory committee's recommendation is not approved by the local contracting agency, or If the selection process is not approved by the Commission, the process must begin again. Any of the above Methods of Selection may be used in this case.

V. In all projects in which the total art purchase budget is less than $7,000, the advisory committee shall select artwork either by direct purchase of existing artwork, or by a limited competition in which a commission is awarded.

SECTION 3. Standards

A. General Criteria for Selecting Works of Art

I. Style and Nature: Works of any aesthetic persuasion which are appropriate as Art in Public Spaces and compatible in scale, material, form, and content with their surroundings will be considered. Works may be participatory in nature.

II. Quality: The consideration of highest priority is the inherent quality of the work itself.

III. Media: All art forms may be considered.

IV. Elements of Design: The advisory committee and the artist will take into account the fact that, as differentiated from works in a museum context, Art in Public Spaces may function as focal points, modifiers, or definers of specific spaces, and/or establishers of identity.

V. Conservation: Due consideration shall be given to structural and surface soundness and to permanence in terms of relative proof against theft, vandalism, weathering, or excessive maintenance or repair costs.

B. Budgetary Inclusions and Exclusions

I. Inclusions: The portion of the capital appropriation reserved for works of art may be expended for the following:

a. The cost of the work of art: Generally, if the artist is commissioned to create a new work, the following are taken into account in the contract:

i. Artist's professional design fee;

ii. Labor or assistants;

iii. Materials required for production of work;

iv. Studio and operating costs of the artist, including rent, depreciation, utilities, communications, insurance. and other direct and indirect costs;

v. Travel of the artist for site visitation and research;

vi. Transportation of the work to the site;

vii. Installation of the completed work;

viii. Photographic documentation required by the Commission.

ix. Engineering, codes compliance, and other regulatory costs associated with the creation of the work of art.

x. Administrative costs, including but not limited to, Percent for Art site administrative contractor’s time and expertise, administrative materials/supplies, contractor’s travel expenses, meeting expenses and related facility charges, etc.

b. Identification plaques and labels.

c. Waterworks and electrical and mechanical devices or equipment which are integral parts of the work of art.

d. Frames, mats, or pedestals necessary for the proper presentation of the works of art.

e. Honoraria and Design Fees: Artists selected as finalists shall be paid honoraria or design fees for written proposals or models at rates to be established by the advisory committee, with a minimum of $100, and shall be reimbursed for necessary travel expenses at current state government rates.

f. Other items the Commission approves as appropriate to the particular work of art.

II. Exclusions: The portion of the capital appropriation reserved for works of art may not be expended for the following:

a. Reproductions by mechanical or other means of original works of art. Included, however. may be limited editions, controlled by the artist, of original prints, cast sculptures, photographs, etc.

b. Decorative, ornamental, or functional elements which are designed by the building architect or consultants engaged by the architect.

c. Those elements generally considered to be components of a landscape architectural design: plant materials, pools, paths, benches, receptacles, fixtures, planters. etc., unless they function as integral components of an earthwork or environmental public art installation.

d. "Art objects" which are mass produced or of a standard design, such as playground sculpture or fountains.

e. Directional or other solely functional elements, such as supergraphics, signage, color coding, maps, etc.

f. Those items which are required to fulfill the basic purpose of the contracting agency. Examples would be works of art in the collection of a state museum or works of art fulfilling an interpretive or educational role in a state park, the state library, or a college or university art museum or gallery.

g. Electrical, water, or mechanical service for activation of the work.

h. Exhibitions and educational programs related to the work.

i. In connection with the works of art, before or after they are installed: lighting. registration, dedication, unveiling, insurance, security, publicity or publications, and maintenance (preservation, conservation, restoration, repair), site preparation for exterior works including ground preparation such as concrete slabs or landscape grading.

C. Long Term Care

I. Insurance: Upon installation, the contracting agency shall insure the work against loss, damage, or theft.

II. Maintenance: The contracting agency shall maintain works of art in accordance with a maintenance agreement negotiated with the artist at the time of installation. The contracting agency shall not alter works of art in any way whatsoever without prior approval by the Agency.

III. Conservation: The contracting agency shall make every reasonable effort to consult with the Agency, the artist and a professional conservator in all matters concerning repairs and restoration of works of art. All restoration work shall be done in accordance with the Code of Ethics and Standards of Practice of the American Institute of Conservation, 3545 Williamsburg Lane, NW, Washington, D.C. 20008, as amended.

IV. Relocation and removal: Works of art shall be placed in the locations for which they are selected. The Agency and the Artist shall be notified if, for any reason, a permanently installed work of art must be removed or moved to a new location. The Agency and the Artist shall have the right to advise the contracting agency or Its designee regarding this treatment of the work.

a. Relocation: If the work was created for a specific site, the new site to which it is to be moved must be consistent with the artist's original intent.

b. Removal: Works of art acquired in the Percent for Art program may be removed only with the approval of the Commission and/or Agency. Requests for permission to remove works of art shall be made in writing and shall be reviewed at the next regular meeting of the Commission as it relates to the process.

V. Transfer of Ownership: If a work of art acquired in the Percent for Art program is removed, ownership shall be transferred by sale of the work. Proceeds from the sale of the work shall be used to acquire new works of art in the Percent for Art program. Sale shall be made, in order of priority. to one of the following parties:

a. Artist: To the artist who created the work. The artist shall have the right to purchase the work for its appraised fair market value. In the case of a work of art whose removal could require destruction of the work, the artist shall have the right to acquire the work or its surviving components for that portion of the cost of removal which exceeds the cost of destruction of the work.

b. Nonprofit Organization: If the artist does not choose to purchase the work of art, a nonprofit organization whose mission includes the presentation of works of art may acquire the work under the same conditions as those that apply to the artist.

c. State of Maine: If neither the artist nor a qualified non-profit organization wishes to purchase the work of art the State of Maine may acquire the work under the same conditions as those that apply to the artist, except that the State of Maine shall pay only that portion of the appraised fair market value equal to the portion of the original purchase price paid by the original acquiring Institution.

d. Other: In the event that none of the above parties wish to acquire the work of art, then the work may be offered to the public under the same conditions as those that apply to the artist.

SECTION 4. Contracting Procedures

A. Artists' Contracts: All artists' contracts shall follow the form and substance of the model Percent for Art contract provided by the Agency.

B. Public School Construction: A public school construction project is subject to this Act only upon the affirmative vote of the governing board of the school administrative unit prior to the granting of concept approval by the State Board of Education. After the granting of concept approval to a school construction project to include Percent for Art funds, exclusion of Percent for Art will be allowed only under extenuating circumstances and with the approval of the Commissioner of the Department of Education who shall consider the recommendation of the Director of the Maine Arts Commission.

C. Other Actions: All requests by the contracting agency for actions to be considered by the Commission shall be made in writing.

History

• STATUTORY AUTHORITY: 27 MRSA §458
• EFFECTIVE DATE: February 1, 1981
• AMENDED: August 17, 1982 - Sec. 2 & 5 (EMERGENCY)
• AMENDED: November 1, 1982
• AMENDED: March 31, 1985
• AMENDED: July 26, 1988
• AMENDED: September 28, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 21, 1996
• AMENDED: February 7, 2006 – filing 2006-61
• AMENDED: March 14, 2018 – filing 2018-038

94-089 Historic Preservation Commission

Chapter 100 Implementing an Act to Preserve Maine's Archaeological Heritage

Code Me. R. 94-089 Ch. 100 Rules for Implementing an Act to Preserve Maine's Archaeological Heritage {#sec-94-089-ch.-100 omnilex-key=us-me-regs-official--dept-independent-agencies--94-089 Ch. 100}

SUMMARY: These rules set forth the standards and procedures for access to records in the possession of the Maine Historic Preservation Commission, the State Museum Bureau, the Bureau of Parks and Recreation and other State agencies or the University of Maine containing information regarding the locations or other attributes of archaeological sites.

These rules are jointly adopted by the Historic Preservation Commission and Maine State Museum, but are codified under the Historic Preservation Commission's umbrella number of 94-089.

1. Purpose

State law exempts archaeological site location information held by the Maine Historic Preservation Commission, the Maine State Museum, the Bureau of Parks and Recreation, other State agencies or the University of Maine from the Freedom of Information Act - Title 1, Chapter 13. The law charges the Directors of the Maine State Museum and the Maine Historic Preservation Commission to adopt rules establishing standards and procedures for access to site location records. 27 M.R.S.A. §377.

2. Standards and procedures for access to Site Location Records

A. Full access shall be limited to those professional archaeologists certified by the State Historic Preservation Officer.

B. Access on a "need-to-know" basis shall be granted by either the Director of the Maine State Museum or the Maine Historic Preservation Commission; or, the Chairman of the Department of Anthropology at the University of Maine at Orono to professional or academic student archaeologists with a legitimate research interest in Maine archaeology, upon presentation of a research problem demonstrating such need.

C. Access for cultural resources management purposes by personnel employed by agencies or corporations not employing certified archaeologists shall be on a need-to-know basis. Their use of the records is to be supervised by an archaeologist certified by the State Historic Preservation Officer.

D. Requests for access to the data shall normally be submitted in writing to the Director of the Maine Historic Preservation Commission (State Historic Preservation Officer), who shall then consult with the Director of the Maine State Museum. Exceptions will be made for routine, limited use of the records for Cultural Resource Management purposes, in which case requests should be made orally or in writing to the certified archaeological staff of the Maine Historic Preservation Commission.

E. State agencies other than the Maine State Museum or Maine Historic Preservation Commission are requested to restrict access to their files containing archaeological site location information, unless a request has been reviewed by the Directors of the Maine Historic Preservation Commission and the Maine State Museum.

3. Certification Criteria

Application for Maine Historic Preservation Commission certification should be made in the form of a letter accompanied by curriculum vitae. Criteria for certification will normally be a Ph.D. in anthropology, archaeology, or related field, extensive experience in Northeast archaeology, and a demonstrated, ongoing research interest in Maine archaeology.

History

• STATUTORY AUTHORITY: 27 MRSA §377
• EFFECTIVE DATE: April 22, 1982
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 21, 1996
• NON-SUBSTANTIVE CHANGES: January 26, 1999 - conversion to Microsoft Word
• NON-SUBSTANTIVE CHANGES: 94-089 Chapter 100 page 2

Chapter 811 Historic Buildings Restoration Grants

Code Me. R. 94-089 Ch. 811 Historic Property Preservation and Restoration Grants {#sec-94-089-ch.-811 omnilex-key=us-me-regs-official--dept-independent-agencies--94-089 Ch. 811}

SECTION 1. GENERAL

Title 27, section 505 establishes a program of state financed grants for the preservation or restoration of historic properties that are listed in or that have been nominated for listing in the National Register of Historic Places; that are in governmental or non-profit ownership; and that are open to the public.

SECTION 2. DEFINITIONS

The following terms used in this rule shall be defined as below:

“Commission”means the Maine Historic Preservation Commission as established in 27 MRSA §502.

“Development” (Including Archaeology and Pre-development)- Development projects involve pre-development and development activities for the restoration or preservation of buildings, structures and sites that are listed in or that have been nominated for listing in the National Register.

1. “Predevelopment” Predevelopment is the historical, architectural, and/or archaeological research necessary to properly and adequately document the historic significance and the existing physical condition of the materials and features of a historic property. Predevelopment must be performed prior to the commencement of development work.
2. “Development” Development projects are activities that preserve or restore historic properties, and may include exterior, interior, or historic landscape work, as well as limited updating of HVAC systems. The Secretary of the Interior’s Standards for the Treatment of Historic Properties define appropriate preservation and restoration treatments for historic properties.
3. “Archaeological Site Protection and Stabilization”- Archaeological site protection and stabilization may include survey, limited testing or data recovery, or include revegetation or repair of a site’s physical or structural integrity to reduce or eliminate such damaging forces as erosion. Archaeological testing may be required for any development project that includes any ground disturbance.

“Director” means the director of the Commission.

“Governmental agencies” means agencies of state government, counties and other political subdivisions of the state.

“Historic Property” is a district, site, building, structure, or object that is listed in or that has been nominated for listing in the National Register.

“Historic Property Preservation and Restoration Grants” means grants of state monies as authorized by bond issues or other appropriations and as administered by the Commission pursuant to Title 27, Sec. 505(2) (D).

“ National Register of Historic Places” or “National Register”means the official Federal list of districts, sites, buildings, structures, and objects significant in American history, architecture, archeology, engineering, and culture that the Secretary of the Interior is authorized to expand and maintain pursuant to Section 101(a)(1) of the National Historic Preservation Act of 1966, as amended.

“Non-profit Organizations” means organizations granted tax-exempt status by the State. The University of Maine and Maine Maritime Academy shall be included within this category.

“Preservation” is defined as the act or process of applying measures necessary to sustain the existing form, integrity, and materials of an historic property. Work, including preliminary measures to protect and stabilize the property, generally focuses upon the ongoing maintenance and repair of historic materials and features rather than extensive replacement and new construction. New exterior additions are not within the scope of this treatment; however, the limited and sensitive upgrading of mechanical, electrical, and plumbing systems and other code-required work to make properties functional is appropriate within a preservation project.

“Restoration” is the act or process of accurately depicting the form, features, and character of a property as it appeared at a particular time-period by means of the removal of features from other periods in its history and reconstruction of missing features from the restoration period. The limited and sensitive upgrading of mechanical, electrical and plumbing systems and other code-required work to make properties functional is appropriate within a restoration project.

“Standards for the Treatment of Historic Properties” or “Standards” means the United States Secretary of the Interior’s Standards for the Treatment of Historic Properties codified as 36 CFR Part 68 in the July 12, 1995 Federal Register (Vol. 60, No. 133).

SECTION 3. ELIGIBLE PROPERTIES

Historic Properties owned by governmental agencies or non-profit organizations and that are determined by the Director and the Commission to meet the criteria of this rule in a competitive grant process.

SECTION 4. EVALUATION CRITERIA

The following selection criteria shall guide the Director and the Commission in making grant awards. The number of points allocated to each criterion will be established by the Commission and will be explained in the application instructions.

The level of historical significance of the property is based on the National Register listing.

Extent to which the property is threatened.

Appropriateness of the proposed work.

Budget and budget process.

Administrative and financial management capabilities of the applicant.

Public Benefit.

Continuing Project.

Geographic distribution of applications.

SECTION 5. FUNDING

The Director, with the advice of the Commission, shall determine the total amount of grant awards to be made each year from available funds, as well as the level of minimum and maximum awards.

Unless otherwise directed by law, grants may not exceed 50% of the total expense of the proposed project, except that grants to the State may be 100% of the total expense of the project.

Time limits for the expenditure of grant funds will be established by the Director based on the requirements of the funding source.

All grants are subject to final approval by the Commission.

SECTION 6. ALLOWABLE COSTS

Historic, architectural and archaeological research deemed necessary for pre-construction data collection.

Preparation of construction documents (i.e. plans and specifications) developed by a Maine-licensed architect or engineer.

Signs acknowledging state assistance at project sites.

Exterior and structural preservation and restoration; interior preservation and restoration; necessary improvements to or installation of wiring, heating, plumbing, and fire/intrusion alarm systems; landscaping limited to grading for drainage, restoration of grounds to documented historic appearance, and repair of damage to grounds due to construction.

Archaeological site protection and stabilization projects.

Preparation of Character Defining Feature forms as part of the Preservation or Stewardship Agreement.

Final Project Report, including photography.

General Conditions for Construction Contracts when identified as a line item in the project application.

SECTION 7. ADMINISTRATION

General Supervision- The Director shall supervise all grant awards and the projects financed by such awards.

Applications- Applications shall be processed according to the procedures set forth in this rule.

Enforcement- Where it is determined that any grant recipient has not fulfilled the terms of the Grant Agreement, and administrative efforts to obtain compliance are unsuccessful, the Director shall refer the matter to the Attorney General for enforcement action.

SECTION 8. GRANT AWARD PROCEDURES

Application Information- The Director will announce the availability of grant applications and grants manuals containing the rules and other information pertaining to the administration of Historic Property Preservation and Restoration Grants.

Application Procedure- Applicants are required to submit a Historic Property Preservation and Restoration Grant Application with all the checklist items in accordance with the application instructions. To be considered, an application must be fully completed and submitted by the announced deadline.

State Agencies- Any department or agency of state government may apply for a Historic Property Preservation and Restoration Grant with the approval of the Department or agency head. Projects involving state owned historic properties may be subject to the provisions of 5 M.R.S.A. Chapter 153.

Other Governmental Agencies- Applications from other governmental agencies shall be approved by the legislative body of the political subdivision prior to submitting the application.

SECTION 9. GRANT AWARD REQUIREMENTS

Stewardship/Preservation Agreements - A successful grant recipient shall enter into a Stewardship or Preservation Agreement to ensure maintenance of the historic property and public benefit requirements. An applicant must provide assurance that public access to the historic property will be reasonably provided with respect to admission fees, visitation hours and physical accessibility, while maintaining the historic integrity of the historic property. The duration of the agreement will be determined by the amount of the grant award, as follows:

1. State assistance from $1 to $10,000: a 5-year Stewardship Agreement; or
2. State assistance from $10,001 to $25,000: 5-year Preservation Agreement; or
3. State assistance from $25,001 to $50,000: 10-year Preservation Agreement; or
4. State assistance from $50,001 to $100,000: 15-year Preservation Agreement; or
5. State assistance from $100,001 and above: 20-year Preservation Agreement.

Payment Procedures

1. Grant awards shall be paid on a reimbursement basis only. Recipients shall submit to the Director copies of all bills approved in writing by the project manager for the project and copies of canceled checks in payment of such bills.
2. Upon receipt of the required documentation, the Director will issue a check for the state’s share of the incurred costs.
3. A final project report by the project manager must be completed in accordance with the application instructions and accepted by the Director prior to payment of the final grant award monies.

Project Work

1. A detailed scope of work must be prepared, and for structural or engineering projects, or projects involving HVAC, a professional engineer or architect must be involved in the preparation of construction documents (plans and specifications). The Director may require additional specialized professional expertise and analysis for projects that include archaeological resources or other complex property restoration or preservation work.
2. A sign which acknowledges state assistance through the Historic Property Preservation and Restoration Grants Program, administered by the Maine Historic Preservation Commission and funded by the State of Maine shall be in place at the project site.
3. A final report of the project, including photography, shall be submitted to the Director upon completion of the project.
4. Project work shall conform to The Secretary of the Interior’s Standards for the Treatment of Historic Properties: Restoration or Preservation.

SECTION 10. CIVIL RIGHTS REQUIREMENTS

Maine Human Rights Act of 1972 ( 5 M.R.S.A § 4551, et.seq.) prohibits discrimination on the grounds of religion or gender. Any person who believes he or she has been discriminated against on these or the above grounds in any program, activity, or facility operated by a recipient of State assistance should write to: Maine Human Rights Commission, State House Station 51, Augusta, Maine 04333-0051.

SECTION 11. CONFLICT OF INTEREST PROHIBITIONS

No person shall participate in the selection, award, or administration of a grant, contract, or subcontract assisted by a Historic Property Preservation and Restoration Grant if a conflict of interest, real or apparent, would result. A conflict of interest is deemed to consist of any financial or other personal interest in such grants or contracts if such involvement can be expected to result in subsequent financial remuneration. Conflict of interest would arise when any of the following has a financial or other interest in the selection of grant awards, architectural/engineering services or any contractors or subcontractors:

Staff members of the Commission or Commission members.

Any members of their immediate families.

Any of their business partners.

Organizations which employ, or are about to employ, any of the above.

However, Commission members who abstain from the decision-making process for grants during the year shall not be considered ineligible to take part in, or benefit from, such activity.

SECTION 12. APPEAL PROCEDURE

Appeal Requests. An applicant may appeal against any decision by the Director. A request for an appeal shall be made in writing to the Commission Chair within 30 days of receipt of the decision which is the subject of the appeal. Any such appeal must set forth the manner in which the aggrieved claims the decision was arbitrary or unreasonable.

Decisions. In considering appeals, the Commission may take into account alleged errors in professional judgment or alleged prejudicial procedural errors.

Final Administrative Remedy. The decision of the Commission shall be the final administrative decision on the appeal. No organization or governmental body shall be considered to have exhausted its administrative remedies with respect to decisions described in this part until the Commission Chair has issued a final administrative decision in writing to the applicant in response to this section.

An aggrieved applicant may be awarded a grant or an increased grant amount where previously denied or limited to a lower figure only when the grant would not require the denial or decrease in a grant award of other eligible applicants which have already executed Letters of Agreement or covenants.

History

• STATUTORY AUTHORITY: 27-A M.R.S.A. §§504, 505, P. and Sp. L. 1985, c. 73.
• EFFECTIVE DATE: March 9, 1986
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 21, 1996
• NON-SUBSTANTIVE CHANGES: January 26, 1999 - converted to Microsoft Word 2.0.
• AMENDED: August 13, 2024 – filing 2024-178
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 812 State Historic Preservation Officer's Standards for Archeological Work in Maine

Code Me. R. 94-089 Ch. 812 State Historic Preservation Officer's Standards for Archaeological Work in Maine {#sec-94-089-ch.-812 omnilex-key=us-me-regs-official--dept-independent-agencies--94-089 Ch. 812}

SUMMARY: These rules and regulations contain the composition and functions of the Archaeological Advisory Committee, the credentials requirements for persons on the Commission's approved lists of prehistoric archaeologists and historic archaeologists, procedure for review of credentials, procedure for removal from approved lists, method for applying for survey grants, participation in environmental impact projects, and guidelines for research and reporting.

1. GENERAL RULES AND DEFINITIONS

A. Definitions

Commission. "Commission" shall mean the Maine Historic Preservation Commission.

Historic Archaeologist. "Historic Archaeologist" shall mean a professional archaeologist who conducts research on sites in which human beings have left traces of their activities on or under the landscape since the arrival of Europeans to North America.

Incompetent. "Incompetent" shall mean fieldwork which fails to meet the standards of current scientific methods and which results in damage or destruction of archaeological deposits without adequate data recovery.

Prehistoric Archaeologist. "Prehistoric Archaeologist" shall mean a professional archaeologist who conducts research on sites in which Native Americans have left traces of their activities on or under the landscape both before and after the arrival of Europeans to North America.

Principal Investigator. "Principal Investigator" shall mean the person directing a project and responsible for its conduct.

Professional Archaeologist. "Professional Archaeologist" shall mean a person who has the credentials listed in Section 2 of these rules and regulations.

Public Benefit. "Public Benefit" shall mean the dissemination of data by any or all means stipulated under "Timely Release of Results".

State Historic Preservation Officer. "State Historic Preservation Officer" shall mean the Director of the Maine Historic Preservation Commission.

Supervisory Experience. "Supervisory Experience" shall mean occasions in which a person has functioned as Principal Investigator or supervisor of a field crew.

Timely Release of Results. "Timely Release of Results" shall mean dissemination of data to professional and/or lay audiences by means of exhibits, publications, reports, lectures, and/or films within two (2) years of the completion of a project.

Unethical Professional Behavior. "Unethical Professional Behavior" shall mean sale of artifacts or deliberate misrepresentation of data for personal gain or any activity defined as illegal by the State of Maine.

B. Intent

The intent of the State Historic Preservation Officer's Standards for Archaeological Work in Maine is to ensure that Maine's archaeological sites and their contents are identified, evaluated, and protected in ways which are least damaging to a non-renewable and vulnerable resource.

2. ARCHAEOLOGICAL ADVISORY COMMITTEE

A. The Archaeological Advisory Committee (AAC) is composed of the following persons:

a) Commission staff prehistoric archaeologist;

b) Commission staff historical archaeologist;

c) Commission member for prehistoric archaeology;

d) Commission member for historical archaeology:

e) all professional archaeologists on either or both of the Commission's approved lists with full-time faculty appointments in the Maine State University system, or permanent, full-time positions in Maine State Government.

f) any four additional professional archaeologists appointed by the SHPO for two-year terms of an unlimited number.

B. The AAC is subdivided into two sub-committees, one for prehistoric archaeology and one for historical archaeology. Members of the AAC are assigned by the State Historic Preservation Officer to one of the subcommittees based on the sub-discipline which is the focus of their work.

C. The AAC advises the SHPO on the following:

1. Eligibility of persons who have applied for listing in one or more approved lists;

2. The possible suspension or revocation of a person's eligibility for listing;

3. Review of all Commission guidelines and plans relating to any aspect of archaeology;

4. Any other matters at the request of the SHPO.

3. CREDENTIALS

The SHPO recognizes that archaeological work can require a range of training and experience from modest levels to advanced levels. Persons meeting the requirements of advanced experience and training shall be eligible for both the Level 1 approved list and the Level 2 approved list. Those persons meeting only the criteria of moderate training and experience shall be eligible for the Level 1 approved list. Persons listed on the Level 1 approved list shall. be recommended by the Maine Historic Preservation Commission for Phase I archaeological survey work, archaeological site location, survey and data synthesis work for municipal planning, and reconnaissance-level state survey grants available in years where there is excess programmatic match provided by state and non-state funds. Persons listed on the Level 2 approved list shall be recommended for all types of work and grants available including Phase II and Phase III cultural resource management jobs, and they will be eligible to direct state and federally-funded survey grants, and state and federally-funded development grants. In addition, the Level 1 and Level 2 approved lists will be subdivided by specialty either in historic archaeology or prehistoric archaeology. A person may be listed on more than one approved list.

A. Credentials for listing on the Level 1 Approved list. Minimum requirements for listing on the Level 1 approved list shall include:

1. A Bachelor's degree in archaeology, anthropology, history, or similar field related to and concerned with the practice of field archaeology; and

2. At least one year of professional experience or equivalent specialized training in archaeological research and administration or management; and

3. Demonstrated ability to carry research to written completion; and

4. A minimum of one year's professional supervisory experience in prehistoric and/or historic archaeology fieldwork in northern New England within the previous ten (10) years; and

5. No record of illegal, unethical, and/or incompetent professional behavior; and

6. A letter of recommendation from one or more persons listed on the Level 2 MHPC approved list stating that the person is capable of completing Phase 1 archaeological survey or municipal planning archaeological tasks, and that the person has an adequate knowledge of northern New England historic and/or prehistoric archaeology to complete the task.

B. Credentials for Listing on the Level 2 Approved List

Requirements for listing on the Level 2 approved list shall include:

1. A graduate degree in archaeology, anthropology, or a closely related field; and

2. At least two years of full-time professional experience or equivalent specialized training in archaeological resource research, administration, or management; and

3. At least two years of supervisory field and analytical experience in general North American archaeology; and

4. A demonstrated ability to carry research to completion; and

5. At least one year of full-time professional experience at the supervisory level in the study of archaeological resources of the prehistoric and/or historic periods for, respectively, professionals in historic or prehistoric archaeology; and

6. A minimum of one year's professional supervisory experience in prehistoric and/or historic archaeology in northern New England; and

7. A record of timely release of results for public benefit; and

8. No record of illegal, unethical and/or incompetent professional behavior; and

9. A letter of recommendation from one person on the Level 2 approved list stating that the applicant has sufficient training and experience to complete the full range of tasks outlined above satisfactorily; and

10. Persons listed on the Maine Historic Preservation Commission's existing approved lists for historic and prehistoric archaeology at the adoption of these rules shall automatically be listed in the equivalent Level 2 list.

C. Application for Listing

Persons wishing to be listed in the Level 1 and/or Level 2 lists for either prehistoric and/or historic archaeology shall submit to the SHPO a complete and current resume, one or more letters of recommendation and such other information as the SHPO may require. The SHPO shall submit completed applications to either or both of the ACC subcommittees, as appropriate. The subcommittees shall then advise the SHPO as to whether in its opinion the applicant meets the criteria for eligibility set forth in subsection A or B, as applicable. The determination of the applicant's eligibility shall lie in the sole discretion of the SHPO. The SHPO may:

1. Grant eligibility;

2. Grant eligibility for a limited period of time subject to conditions;

3. Request additional information before acting on an application;

4. Pursuant to the Maine Administrative Procedure Act, 5 MRSA section 8001 et seq., issue a notice of opportunity for hearing or a notice of hearing; or

5. Deny eligibility.

D. Revocation or Suspension of Eligibility

Eligibility may be suspended or revoked for one or more of the following reasons:

1. An eligible person has failed to conduct professional work in northern New England for a period of ten years;

2. An eligible person has failed to maintain a record of timely release of results for public benefit;

3. An eligible person has engaged in unethical or incompetent activities in connection with the practice of archaeology.

The SHPO may investigate any incident or circumstance which may constitute a basis for suspension or revocation of eligibility under this subsection. The SHPO may also seek the advice and assistance of the Archaeological Advisory Committee. Any action by the SHPO to revoke or suspend eligibility shall be brought by the SHPO pursuant to the Maine Administrative Procedure Act, 5 MRSA section 8001 et seq. The determination of the appropriate course of action shall lie in the sole discretion of the SHPO.

4. APPLICATION FOR SURVEY GRANTS

Agencies and institutions employing or proposing to hire persons meeting federal credential requirements and listed on a Commission approved list are eligible for matching federal and state survey grants for archaeological survey and planning. They must submit a proposal detailing scope of work, schedule, artifact and records curation, along with a budget with breakdown showing proposed use of federal or state funds and the non-federal matching share of the total project cost. The SHPO provides copies of proposals to the relevant professional staff member, who then advises the SHPO as to whether funds should be awarded. If so, the SHPO then decides whether the Commission's level of survey funding will allow full or partial award of a grant, advised in turn by the Executive Committee and the full Commission. The applicant institution or agency is then advised in writing of the decision, coupled with special conditions, if any.

5. ENVIRONMENTAL IMPACT PROJECTS

When a government agency or private party (contracting party) is required by law to conduct pre-construction archaeological survey or mitigation, the following procedural steps are taken:

A. The contracting party ascertains from the SHPO that fieldwork is needed.

B. The SHPO sends the contracting party the applicable approved lists of archaeologists and a generic scope of work based upon the nature of the project., These are accompanied by a recommendation that approved archaeologists) be hired to direct the project.

C. The contracting party seeks proposals) from any or all of the persons on the supplied approved lists.

D. The contracting party sends the proposals) to the SHPO for comment on the scope of work and methodology, omitting any budgetary information, unless the contracting party specifically requests in writing that this be included in the review. Should such a request for SHPO comment on budgetary information be made, the SHPO will consult with the bidder(s) about their proposed budget(s) before commenting to the contracting party.

E. The SHPO, advised by the relevant Commission staff member(s), comments on the proposals in writing to the contracting party, who then negotiates with the potential contractors for necessary modifications.

F. An agreement is reached between the SHPO and the contracting party on the scope of work and methodology.

G. Once the fieldwork is completed, a report is prepared by the contractor and submitted to the contracting party.

H. The contracting party sends the report to the SHPO for comment.

I. The SHPO sends the contracting party a written statement clearly describing the report's problems, if any, and what measures are necessary to rectify them.

J. The contracting party passes these comments on to the contractor, who makes changes as necessary, re-submits the report to the contracting party, who re-submits it to the SHPO for approval.

K. The SHPO approves the report and so notifies the contracting party.

6. GUIDELINES FOR RESEARCH AND REPORTING

A. Phase I (reconnaissance-level) survey involves initial search for and location of all potentially significant archaeological sites within a specified area, or gathering enough data for statistical assurance that no such sites exist. This work includes a search of existing archaeological data for the area, including fieldnotes and reports on file in the Commission offices and other relevant data repositories; communication with local collectors and review of their artifact collections and provenience, where appropriate; field research as appropriate, including walk-over and/or subsurface testing, with suitable sampling strategy; and, for historic archaeological survey, a review of relevant primary documentary sources.

B. Phase I reports will include, at a minimum, discussion of the items on the attached "Report Form for Small-Scale Survey", although it is not necessary to follow the exact format or order of items. Graphics will be clean and clearly reproducible. Photographs will be black and white, minimum 5" X 7" format, and of good quality, unless an alternate format has been approved by this Commission. Either representative examples or complete test unit soils and content records will be appended. All test units must be located on maps, or other such information provided to allow for assessment of testing intensity.

C. Phase II (intensive-level) survey consists of testing a site, determining its size and contents, developing enough data to decide whether or not the site is eligible for the National Register of Historic Places and to plan full mitigation, if applicable. Phase II survey will often involve research as a continuation of Phase 1, but it is focused on specific sites rather than areas. Phase II survey must provide enough data for determination of National Register-eligibility and production of a nomination, if necessary.

D. Phase II reports will contain, at a minimum, the same types of information noted above for Phase I reports, but will be focused on specific site(s). Enough test unit information will be included to allow independent assessment of site boundaries. For sites that may be eligible for nomination to the National Register, information necessary for completion of a nomination form will be included. Recommendations concerning National Register eligibility should refer to federal criteria ("Guidelines for Completing National Register of Historic Places Forms") and any current commission guidelines.

E. Phase III (mitigation or development) represents excavation of a site for data recovery either for pure scientific research or in cases where construction cannot be designed to avoid adverse impact to all or part of a National Register-listed or Register-eligible site. Phase III excavation will follow a scientific research proposal designed to maximize data recovery, under the principal that excavation destroys a site. The goal of Phase III data recovery projects is not necessarily to prove a particular theoretical point, or recover data addressing just one category of inquiry. The Principal Investigator must demonstrate awareness of a broad range of research goals and problems that can be addressed by the data preserved in the site. The data recovery techniques proposed must be sufficient to do the best currently possible job recovering as much potential data as possible from the ground for the widest range of research goals. Laboratory analysis and reportage must focus on a wide range of currently standard research topics, but the storage of artifacts and samples for the future should be cognizant of the possibility of future analyses. When there is a conflict between the goals of two different data recovery techniques, a compromise would be best.

F. Phase III excavation reports will constitute a site report of great detail, including relevant laboratory analyses. Written language, graphics, and photographs will be substantially in publishable form.

History

• STATUTORY AUTHORITY: 27 MRSA §509; 16 USC §470a(b); 36 CFR 61.4(b)
• EFFECTIVE DATE: March 26, 1990
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 21, 1996
• NON-SUBSTANTIVE CHANGES: January 27, 1999 - converted to Microsoft Word
• NON-SUBSTANTIVE CHANGES: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• NON-SUBSTANTIVE CHANGES: Report Form for Phase I Survey
• NON-SUBSTANTIVE CHANGES: 1. Project Name:
• NON-SUBSTANTIVE CHANGES: 2. Location: City/County:
• NON-SUBSTANTIVE CHANGES: USGS Quadrangle:
• NON-SUBSTANTIVE CHANGES: UTM Coordinates:
• NON-SUBSTANTIVE CHANGES: Other Location References:
• NON-SUBSTANTIVE CHANGES: 3. Type of Investigation:
• NON-SUBSTANTIVE CHANGES: 4. Principal Investigator:
• NON-SUBSTANTIVE CHANGES: 5. Reporter:
• NON-SUBSTANTIVE CHANGES: 6. Did survey cover entire area of direct and indirect environmental impact of project?
• NON-SUBSTANTIVE CHANGES: _____ Yes _____No. If "no", attach explanation.
• NON-SUBSTANTIVE CHANGES: 7. Dates of Fieldwork:
• NON-SUBSTANTIVE CHANGES: 8. Attach map(s) of area(s) surveyed.
• NON-SUBSTANTIVE CHANGES: 9. Attach list of personnel on survey team.
• NON-SUBSTANTIVE CHANGES: 10. Repository for notes:
• NON-SUBSTANTIVE CHANGES: 11. Repository for artifacts:
• NON-SUBSTANTIVE CHANGES: 12. Environment:
• NON-SUBSTANTIVE CHANGES: (a) Attach description of contemporary environment (ca.1 pg.).
• NON-SUBSTANTIVE CHANGES: (b) Attach description of likely relevant prehistoric and/or historic environments, with bases for reconstruction (ca. 1-2 pg.).
• NON-SUBSTANTIVE CHANGES: 13. Research Topics: Attach description of research topics that influenced decision-making about survey design and/or significance of properties.
• NON-SUBSTANTIVE CHANGES: 14. Background Research:
• NON-SUBSTANTIVE CHANGES: (a) Attach list of sources consulted (include informants).
• NON-SUBSTANTIVE CHANGES: (b) Attach brief description of results (prediction of historic property locations, identification of groups using the area, etc.).
• NON-SUBSTANTIVE CHANGES: 15. Field Research:
• NON-SUBSTANTIVE CHANGES: (a) Attach description of surface inspection methods (ca. 1 pg.).
• NON-SUBSTANTIVE CHANGES: (b) Attach description of subsurface testing methods (if used).
• NON-SUBSTANTIVE CHANGES: (c) Attach description of other methods and techniques if used (i.e., remote sensing).
• NON-SUBSTANTIVE CHANGES: (d) Attach description of any constraints on the validity of field observations (i.e., adverse weather conditions, obscured visibility, etc.).
• NON-SUBSTANTIVE CHANGES: (e) Attach description of any methods used to control bias in observation and reporting.
• NON-SUBSTANTIVE CHANGES: (f) Attach description of any adjustments made in field methods during survey.
• NON-SUBSTANTIVE CHANGES: 16. Attach description of analytic procedures used.
• NON-SUBSTANTIVE CHANGES: 17. Historic Properties identified (if any). Attach standard State Inventory Forms.
• NON-SUBSTANTIVE CHANGES: 18. Attach evaluation of work reported (ca. 1 pg.).
• NON-SUBSTANTIVE CHANGES: 19. Attach research-related conclusions, if any.

Chapter 813 Historic Rehabilitation Tax Credit

Code Me. R. 94-089 Ch. 813 Historic Rehabilitation Tax Credit {#sec-94-089-ch.-813 omnilex-key=us-me-regs-official--dept-independent-agencies--94-089 Ch. 813}

SECTION 1. GENERAL

Title 27, section 511 instructs the Director of the Maine Historic Preservation Commission (Director); in consultation with the Department of Administrative and Financial Services, Bureau of Revenue Services, to administer a program in support of state rehabilitation tax credits for income-producing historic structures. The Director is further instructed to certify information necessary for applicants to demonstrate eligibility for the income tax credit provided under Title 36 §5219-BB. The Director may also develop instructions and guidelines, and application and certification forms as necessary in support of the program, and must issue reports evaluating the program.

These rules provide guidelines for the application process and the administration of a program for state rehabilitation tax credits. The credits are comprised of the Substantial Rehabilitation Credit, the Small Project Rehabilitation Credit, and the Affordable Housing Rehabilitation Credit Increase, as defined below.

SECTION 2. DEFINITIONS

The following terms used in this rule shall be defined as below:

“Affordable Housing Rehabilitation Credit Increase” means the increased credit amount allowed for the creation of affordable housing pursuant to Title 36.

“Certified Historic Structure” means any building (and its structural components) which:

Is individually listed in the National Register of Historic Places, or

Is located in a Registered Historic District and is certified by the Secretary of the Interior or Director as being of historic significance to the district.

For purposes of the Substantial Rehabilitation Credit only the Secretary of the Interior may certify a historic structure as being of historic significance to a Registered Historic District.

For purposes of the Small Project Rehabilitation Credit only the Director may certify a historic structure as being of historic significance to a Registered Historic District.

“Certified Qualified Rehabilitation Expenditure” means a qualified rehabilitation expenditure, as defined by the federal Internal Revenue Code, section 47(c)(2), made between January 1, 2008 and December 31, 2013 and used in the Certified Rehabilitation of a Certified Historic Structure. For purposes of the Small Project Rehabilitation Credit, Qualified Rehabilitation Expenditures incurred in the Certified Rehabilitation of a Certified Historic Structure located in the State do not include a requirement that the Certified Historic Structure be substantially rehabilitated.

(APA Office Note: Title 36 §5219-BB(1)(C) was amended in 2011 to change the sunset date to December 31, 2023. P.L. 2011, c. 453, §7 (eff. Sept. 28, 2011).)

“Certified Rehabilitation” means any Rehabilitation of a Certified Historic Structure which the Secretary of the Interior or Director has certified as being consistent with the historic character of such property and, where applicable, the district in which such structure is located.

For purposes of the Substantial Rehabilitation Credit, only the Secretary of the Interior may certify a Rehabilitation.

For purposes of the Small Project Rehabilitation Credit, only the Director may certify a Rehabilitation.

“Commission” means the Maine Historic Preservation Commission.

“Director” means the director of the Commission.

“Federal Historic Rehabilitation Tax Credit” means the tax credit allowed pursuant to Section 47 of the Internal Revenue Code.

“Inspection” means a visit by an authorized representative of the Director to a property for the purposes of reviewing and evaluating the significance of the building and the proposed, ongoing or completed Rehabilitation work.

9. “National Register of Historic Places” or “National Register” means the National Register of districts, sites, buildings, structures, and objects significant in American history, architecture, archeology, engineering, and culture that the Secretary of the Interior is authorized to expand and maintain pursuant to section 101(a)(1) of the National Historic Preservation Act of 1966, as amended.

10. “Owner” means a person, partnership, corporation, or public agency holding a fee-simple interest in a property or any other person or entity recognized by the Internal Revenue Code for purposes of the applicable tax benefits (as defined by 36 CFR 67.2).

“Placed in Service” has the same meaning as is ascribed to the term under 26 CFR 1.46-3(d).

12. “Property” means a building and its site and landscape features.

“Qualified Rehabilitation Expenditures” has the same meaning as is ascribed to the term under 26 CFR 1.48-12(c).

“Registered Historic District” means:

Any district listed in the National Register of Historic Places, and

Any district;

which is designated under a statute of the appropriate local government, if such statute is certified by the Secretary of the Interior as containing criteria which will substantially achieve the purpose of preserving and rehabilitating buildings of historic significance to the district pursuant to 36 CFR 67.8; and

which is certified by the Secretary of the Interior as meeting substantially all of the requirements for listing of districts in the National Register pursuant to 36 CFR 67.9.

“Rehabilitation” as defined by the Secretary of the Interior’s Standards for Rehabilitation, means the process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values.

“Small Project Rehabilitation Certification Application” means Parts 1, 2 and 3 of the application forms for each stage of the certification process, as more fully set forth herein.

“Small Project Rehabilitation Credit” means the State tax credit allowed a taxpayer equal to 25% of the Certified Qualified Rehabilitation Expenditures of a taxpayer who incurs not less than $50,000 and up to $250,000 in Certified Qualified Rehabilitation Expenditures in the rehabilitation of a Certified Historic Structure located in the State and who does not claim the Federal credit with regard to those expenditures. This credit does not require that the Certified Historic Structure be substantially rehabilitated.

“Standards for Rehabilitation” or “Standards” means the United States Secretary of the Interior’s Standards for Rehabilitation set forth in 36 CFR 67.7.

19. “Substantial Rehabilitation Credit” means the State tax credit allowed a taxpayer equal to 25% of the Certified Qualified Rehabilitation Expenditures for which a Federal tax credit is claimed under Section 47 of the Internal Revenue Code for a Certified Historic Structure located in the State.

SECTION 3. APPLICATION GUIDELINES

Certifications of Historic Significance and Rehabilitation – General

Forms

National Park Service Historic Preservation Certification Application (HPCA). For purposes of the Substantial Rehabilitation Credit, all requests for preliminary determinations and certifications shall be made on the HPCA forms in accordance with the HPCA instructions. In addition, Parts A and B of the Maine State Rehabilitation Tax Credit Reporting Form must be submitted to the Director in accordance with Part 1.A(3) of this Section.

Small Project Rehabilitation Certification Application (SPRCA). For purposes of the Small Project Rehabilitation Credit, requests for certifications of buildings in Registered Historic Districts as Certified Historic Structures, requests for preliminary determinations of individual buildings as Certified Historic Structures, requests for review of proposed Rehabilitations, and requests for certifications of completed rehabilitation projects shall be made on the SPRCA forms in accordance with the SPRCA instructions. In addition, Parts A and B of the Maine State Rehabilitation Tax Credit Reporting Form must be submitted to the Director in accordance with Part 1.A(3) of this Section.

Maine State Rehabilitation Tax Credit Reporting Form. Parts A and B of the Maine State Rehabilitation Tax Credit Reporting Form must be submitted to the Director in order to claim any credit allowable pursuant to 36 MRSA §5219-BB. Part A of the Reporting Form must be submitted with Part 2 of either the HPCA or SPRCA, whichever is applicable. Part B of the Reporting Form must be submitted with Part 3 of either the HPCA or SPRCA, whichever is applicable.

Review Period. The Director generally completes reviews of tax credit applications within 30 business days of receiving a complete, adequately documented application. Where adequate information is not provided, the Director will notify the applicant of the additional information needed to complete the review. The Director will adhere to this time period as closely as possible, but failure to complete a review within the designated period does not waive or alter any certification requirement or imply approval.

Director Decisions; Reliance on Application. The Director only makes Rehabilitation certification determinations for purposes of the Small Project Rehabilitation Credit. Certification determinations are only given on the Small Project Rehabilitation Certification Application forms signed by the Director or other duly authorized representative. Decisions with respect to certifications are made on the basis of the information contained in the applications and other available information. The Owner’s signature on any application form is a representation to the Director that the facts contained therein are true and correct, and the Director is entitled to rely thereon. If information comes to the attention of the Director at any time that is materially inconsistent with representations made in an application, the Director may deny the requested certification, revoke a certification previously given, and/or notify the Maine Revenue Services of the situation. Such denials or revocations may be appealed pursuant to the procedures set forth in Section 3, Parts 2.C.7 and 3.B.9. For purposes of the Substantial Rehabilitation Credit, only the Secretary of the Interior may certify a historic structure or Rehabilitation.

Certifications of Historic Significance

Consultation. Any person may consult with the Director to determine whether a building is a Certified Historic Structure, or whether a Property could potentially qualify as a Certified Historic Structure.

Application for Certification of Historic Structure. Buildings individually listed in the National Register are Certified Historic Structures for purposes of both the State and Federal historic preservation tax credits, and a Part 1 application is not necessary. If a building is not individually listed in the National Register:

Owners applying for the Substantial Rehabilitation Credit shall prepare Part 1 of the Federal Historic Preservation Certification Application form in accordance with the instructions accompanying the application.

Owners applying for the Small Project Rehabilitation Credit shall prepare Part 1-Evaluation of Significance of the Small Project Rehabilitation Certification Application in accordance with the instructions accompanying the application.

Review of the Small Project Rehabilitation Certification Application Part 1 - Evaluation of Significance

All determinations made by the Director pursuant to this Part 2.C shall be in accordance with the National Register of Historic Places “Criteria for Evaluation” contained in 36 CFR 60.4 and, where applicable, the “Standards for Evaluating Significance within Registered Historic Districts” set forth in 36 CFR 67.5.

Scope of Review. The Director will determine if the building is:

located in a Registered Historic District, retains its historic integrity and contributes to the historic significance of the district; or

located in an unlisted, but potentially eligible historic district, retains its historic integrity and contributes to the historic significance of the district; or

eligible as an individual listing; or

not a certifiable historic structure.

Multiple Buildings or Complex. For purposes of a determination of historic significance, Properties containing more than one building, where the Director determines that the buildings have been functionally related historically to serve an overall purpose, such as a mill complex or a residence and carriage house, the buildings will be treated as a single Certified Historic Structure, whether the Property is individually listed in the National Register or is located within a Registered Historic District, when rehabilitated as part of an overall project. Buildings that are functionally related historically are those which have functioned together to serve an overall purpose during the property’s period of significance.

Determination of Significance to District. Properties within Registered Historic Districts will be evaluated to determine if they contribute to the historic significance of the district. The Director’s determination regarding whether a building contributes to the significance of a Registered Historic District shall be the final certification determination regarding eligibility for the Small Project Rehabilitation Credit, regardless of any previous designation by prior surveys or district nominations.

Preliminary Determination of Individual Eligibility for Listing a Property; Historic Structure Certification. Owners of Properties that are not listed in the National Register may request a signed opinion from the Director as to whether the Property meets the criteria for listing in the National Register. Owners of Properties that the Director considers to be eligible for listing may apply for preliminary certification of their buildings, pursuant to Part 2.B. of this Section. Preliminary certifications will become final, and the Properties will become Certified Historic Structures, as of the date of listing in the National Register. Owners proceed with Rehabilitation projects at their own risk; preliminary certification of a historic structure does not obligate the Commission to nominate the Property. Preliminary determinations of individual eligibility will not become final until the Property is listed in the National Register by the Keeper of the National Register of Historic Places. A preliminary determination of individual eligibility of a historic Property by the Director, or nomination of a historic Property by the Commission, does not guarantee that the Property will be listed by the Keeper.

Preliminary Determination of Eligibility for Properties within Potential Historic Districts; Historic Structure Certification. Owners of Properties that are located in potential historic districts may request a signed opinion from the Director as to whether the potential historic district meets the criteria for being listed in the National Register. Owners of Properties located in districts that the Director considers to be eligible for listing may apply for preliminary certification of their buildings. Applications for preliminary certification of buildings within eligible historic districts must show how the district meets the criteria for being listed in the National Register as a historic district, and how the building contributes to the significance of that district. Preliminary certifications will become final, and the buildings will become Certified Historic Structures, as of the date of listing the district as a Registered Historic District. Owners proceed with Rehabilitation projects at their own risk; issuance of a preliminary determination of eligibility does not obligate the Commission to nominate the potential district. Preliminary determinations will not become final until the district is listed as a Registered Historic District by the Keeper of the National Register of Historic Places. A preliminary determination of eligibility of a historic district by the Director, or nomination of a historic district by the Commission, does not guarantee that the district will be listed by the Keeper.

Appeal Procedure. An Owner may appeal any final historic structure certification determination that is made by the Director by submitting a National Register of Historic Places Registration Form to the Keeper of the National Register in accordance with the procedures set forth in 36 CFR 60.12. If the Keeper issues a response sustaining the Owner’s appeal, the Director shall revise the certification determination to reflect the decision of the Keeper. If the Keeper issues a response sustaining the Director’s determination, the Director’s original certification determination shall be final.

Certifications of Rehabilitation

Substantial Rehabilitation Credit. The certification standards, application process and forms shall be identical to the Federal Rehabilitation Tax Credit standards, application process and forms; the only addition being the submission to the Director of completed Parts A and B of the Maine State Rehabilitation Tax Credit Reporting Form concurrently with Parts 2 and 3 of the National Park Service Historic Preservation Certification Application, respectively. Certification of a Rehabilitation by the Secretary of the Interior pursuant to 36 CFR 67.6 shall serve to certify the Rehabilitation for purposes of this credit.

It is strongly recommended that work associated with Rehabilitation projects not commence until the Owner has received Part 2 comments and determinations from the Secretary of the Interior.

Small Project Rehabilitation Credit. Owners who want Rehabilitation projects for Certified Historic Structures to be certified by the Director as being consistent with the historic character of the structure, and, where applicable, the district in which the structure is located, thus qualifying as a Certified Rehabilitation, shall submit Parts 1, 2 and 3 of the Small Project Rehabilitation Certification Application (SPRCA) in accordance with the application instructions and the procedures below:

Part 1 - Evaluation of Significance. Part 1 of the SPRCA, if necessary, shall be submitted to the Director prior to or concurrently with submission of a completed Part 2 of the SPRCA. If Part 1 of the SPRCA is required, it must be submitted to the Director before the rehabilitated building is placed in service. See Part 2.C. of this Section for additional information regarding the Director’s review of Part 1 of the SPRCA.

Part 2 – Description of Rehabilitation. To request a review of a proposed Rehabilitation, Part 2 of the SPRCA and Part A of the Maine State Rehabilitation Tax Credit Reporting Form shall be submitted to the Director in accordance with the instructions accompanying the application. Applicants are strongly encouraged to request the Director’s review before beginning any demolition or construction associated with a Rehabilitation project.

Determinations Regarding the Part 2 - Description of Rehabilitation. The Director shall notify the Owner within the timeframe described in Section 3, Part 1.B. with a determination indicating whether the proposed Rehabilitation meets the Standards. If the project does not meet the Standards, the Owner shall be advised of that fact in writing and, where possible, will be advised of necessary revisions or conditions to meet such Standards.

Part 3 – Request for Certification. To request certification of a completed Rehabilitation, the Owner shall submit Part 3 of the SPRCA and Part B of the Maine State Rehabilitation Tax Credit Reporting Form according to the instructions accompanying the application, and provide documentation that the completed project is consistent with the work described in Part 2 of the SPRCA. The appropriate level of documentation shall be determined at the Director’s discretion on a project-by-project basis.

Determinations Regarding the Part 3 - Request for Certification. After receipt of a complete Part 3-Request for Certification form, the Director shall notify the Owner either denying or certifying the Rehabilitation. A determination that the completed rehabilitation of a Property not yet designated a Certified Historic Structure meets the Standards does not constitute a Certified Rehabilitation unless the Property is listed in the National Register within 30 months of being Placed in Service.

Scope of Rehabilitation. For purposes of all reviews and certification, a Rehabilitation project encompasses all work on the interior and exterior of the Certified Historic Structure and its site and environment, as well as related demolition, new construction or rehabilitation work that may affect the historic qualities, integrity, site, landscape features, and environment of the Property. The Director will determine if such work is consistent with the Standards regardless of whether a credit is claimed for those costs.

All elements of the Rehabilitation project shall be consistent with the Standards. Portions of a project that are not in conformance with the Standards may not be exempted from review, and may result in denial of certification for the overall Rehabilitation. In general, an Owner undertaking a Rehabilitation will not be held responsible for rehabilitation work not part of the current project that occurred more than five years before the current project began, or Rehabilitation work not part of the current project that was undertaken by previous owners.

Consistency with the Standards will be determined on the basis of the application documentation and other available information by evaluating the property, as it existed before the beginning of the Rehabilitation.

Determination of Consistency with the Standards for Rehabilitation. The Director, upon receipt of the complete application describing the Rehabilitation project, shall determine if the project is consistent with the Standards. If the project does not meet the Standards, the Director shall advise the Owner of that fact in writing. Where possible, the Director will advise the Owner of necessary revisions to meet the Standards.

Changes after Determination. Once a proposed or ongoing project has been approved, substantive changes in the work as described in the application shall be brought promptly to the attention of the Director by written amendment to the application to ensure continued consistency with the Standards. Failure to bring such changes to the Director’s attention prior to commencing work may result in denial of the credit.

Appeal Procedure

Appeal Requests. An Owner may appeal any denial or revocation of certification. A request for an appeal shall be made in writing to the Director within 30 days of receipt of the decision which is the subject of the appeal. Any such appeal must be in writing and shall set forth the manner in which the aggrieved claims the denial or revocation of certification was arbitrary or unreasonable, and present all the information that the Owner wishes to be considered by the appeals committee.

Appeals Committee. The appeals committee shall be composed of the Historical Architect and Architectural Historian members of the Commission, as well as one of the public members appointed by the Commission Chair. The committee shall meet within 60 days of the filing of an appeal to conduct its review.

Decisions. In considering appeals, the appeals committee may take into account new information not previously available or submitted; alleged errors in professional judgment; or alleged prejudicial procedural errors. The Director shall implement the decision of the appeals committee, which may:

(i) Reverse the appealed decision; or

(ii) Affirm the appealed decision; or

(iii) Resubmit the matter to the Commission program staff for further consideration.

Final Administrative Remedy. The decision of the appeals committee, as implemented by the Director, shall be the final administrative decision on the appeal. No person shall be considered to have exhausted his or her administrative remedies with respect to the certifications or decisions described in this part until the Director has issued a final administrative decision in writing in response to this section. The Director shall notify the Maine Revenue Services in writing of any denial or revocation of a certification and of the final administrative decision on the appeal.

Owner Notification. The Director shall provide written notification of the appeals committee decision to the aggrieved Owner within 30 days of the appeals committee meeting.

Standards for Rehabilitation. The intent of the Standards is to promote the long-term preservation of a property’s significance through the preservation of historic materials and features. The Standards pertain to historic buildings of all materials, construction types, sizes, and occupancy and encompass the exterior and the interior of the buildings. They also encompass related landscape features and the building’s site and environment, as well as attached, adjacent, or related new construction. To be certified, a Rehabilitation project must be determined by the Secretary or the Director, whichever is applicable, to be consistent with the historic character of the structure(s), and where applicable, the district in which it is located.

Prior approval of a project by Federal, State, and local agencies and organizations does not ensure certification by the Secretary for Federal tax purposes, or by the Director for State tax purposes. The Standards take precedence over other regulations and codes in determining whether the Rehabilitation project is consistent with the historic character of the Property and, where applicable, the district in which it is located.

Quality of Materials and Work. The quality of materials, craftsmanship, and related new construction in a Rehabilitation project should be commensurate with the quality of materials, craftsmanship, and design of the Certified Historic Structure in question. This standard will be applied in a reasonable manner taking into account economic and technical feasibility. Certain treatments, if improperly applied, or certain materials by their physical properties, may cause or accelerate physical deterioration of historic buildings. Inappropriate Rehabilitation measures include, but are not limited to: excessively abrasive paint removal; improper masonry repointing techniques; improper exterior masonry cleaning methods; improper introduction of insulation where damage to historic fabric would result; and incompatible additions and new construction on historic Properties. In almost all situations, these measures and treatments will result in denial of certification.

Structural Matters. In certain limited cases, it may be necessary to dismantle and rebuild portions of a Certified Historic Structure to stabilize and repair weakened structural members and systems. In these cases, the Director will consider this extreme intervention as part of a Certified Rehabilitation if:

The necessity for dismantling is justified in supporting documentation;

Significant architectural features and overall design are retained; and

Adequate historic materials are retained to maintain the architectural and historic integrity of the overall structure.

These standards will be applied in a reasonable manner taking into account economic and technical feasibility.

All Available Information Used in Determination. The qualities of a Property and its environment which qualify it as a Certified Historic Structure are determined taking into account all available information, including information derived from the physical and architectural attributes of the building; these determinations are not limited to information contained in the National Register or related documentation.

SECTION 4. INSPECTION RIGHTS

Director’s Inspection Rights. Completed projects may be inspected by an authorized representative of the Director to determine if the work meets the Standards for Rehabilitation. The Director reserves the right to make inspections at any time up to five years after completion of the rehabilitation and to revoke a certification, after giving the owner 30 days to comment on the matter, if it is determined that the rehabilitation project was not undertaken as represented by the owner in his or her application and supporting documentation, or the owner, upon obtaining certification, undertook further unapproved project work inconsistent with the Secretary’s Standards for Rehabilitation.

SECTION 5. EFFECTIVE DATES AND TRANSITION RULES

Owners whose Rehabilitation projects commenced before January 1, 2008, but were not completed until after January 1, 2008, may apply for certification of their Rehabilitation in accordance with these Regulations. However, only expenditures incurred after January 1, 2008 can be Certified Qualified Rehabilitation Expenditures eligible for the credit.

APPENDIX

Maine Revised Statutes, Title 27, chapter 17, subsection 511

Maine Revised Statutes, Title 36

Internal Revenue Code, 26 United States Code, Section 47 (1990)

26 Code of Federal Regulations, 1.46-3 (2008)

26 Code of Federal Regulations, 1.48-12 (2008)

National Historic Preservation Act of 1966 (as amended through 2006), 16 United States Code, Title 1, Section 101

36 Code of Federal Regulations, Chapter 1, Part 60 (2008)

36 Code of Federal Regulations, Chapter 1, Part 67 (2008)

Copies of all reference materials are available upon request from the Maine Historic Preservation Commission.

History

• STATUTORY AUTHORITY: 27 M.R.S.A. §511
• EFFECTIVE DATE: January 10, 2009 – filing 2009-15
• CORRECTION: August 13, 2014 – APA Office Note added to Section 2 noting a change in statute re: sunset.
• CORRECTION: 94-089 Chapter 813 page 11

Chapter 815 Historic Preservation Revolving Loan Fund

Code Me. R. 94-089 Ch. 815 Historic Preservation Revolving Loan Fund {#sec-94-089-ch.-815 omnilex-key=us-me-regs-official--dept-independent-agencies--94-089 Ch. 815}

SECTION 1. GENERAL

Title 5 §13056-F instructs the Maine Historic Preservation Commission to provide funds to qualified nonprofit historic preservation organizations in the State for the purpose of acquiring endangered historic properties of local, state or national significance, as determined by the Commission, for resale to new owners who agree to preserve, rehabilitate or restore the properties as necessary, subject to preservation easements or covenants held by the qualified organization.

These rules provide guidelines for the application process and the administration of the Historic Preservation Revolving Loan Fund.

SECTION 2. DEFINITIONS

The following terms used in this rule shall be defined as below:

“Appraised Value” means an estimation of the current market value of a property. Appraised Value reports shall adhere to the Uniform Standards of Professional Appraisal Practices (USPAP).

“Carrying Costs” mean all expenses related to ownership of the Endangered Historic Property that will be incurred by the Qualified Organization prior to re-sale. These can include, but may not be limited to, expenses related to basic property maintenance (such as snow plowing, clearing snow from roofs, cleaning gutters, ensuring the property is secure from vandalism or break-in, etc.), real estate taxes, insurance, utilities, etc.

“Certified Real Estate Appraiser” means a certified general real property appraiser or a certified residential real property appraiser, as appropriate, who is licensed by the Maine Department of Professional and Financial Regulation.

“Commission” means the Maine Historic Preservation Commission as established in 27 MRSA §502.

“Conditions Study” means a formal report that presents an evaluation of the physical condition of the Endangered Historic Property, with a description of deteriorated areas and the cause(s) for the deterioration.

“Director” means the director of the Commission.

“Endangered Historic Property” or “EHP” means a district, site, building, structure or object which is listed in or is eligible for listing in the National Register of Historic Places, and which is subject to a threat that would substantially alter or destroy its historic or architecturally significant features or the historic property as a whole. Such properties may be listed or determined eligible for listing in the National Register either as individual properties, or as contributing resources within a listed or eligible historic district. When necessary, determinations of eligibility for individual properties and districts will be made by the Commission; based on criteria set forth in 36 CFR 60.4 and guidance issued by the National Park Service for applying the criteria.

“Inspection” means a visit by an authorized representative of the Director to a property for the purposes of reviewing and evaluating the significance of the building and the proposed, ongoing or completed rehabilitation work.

“Licensed Real Estate Professional” means a real estate broker, an associate real estate broker or a real estate sales agent, as appropriate, who is licensed by the Maine Department of Professional and Financial Regulation.

“National Register of Historic Places” or “National Register” means the official Federal list of districts, sites, buildings, structures, and objects significant in American history, architecture, archeology, engineering, and culture that the Secretary of the Interior is authorized to expand and maintain pursuant to Section 101(a)(1) of the National Historic Preservation Act of 1966, as amended.

“Preservation Easement or Covenant” means an agreement legally binding the current and future owners to preserve the subject property in accordance with the Secretary of the Interior’s Standards for the Treatment of Historic Properties for a defined period of time or in perpetuity, as appropriate.

“Qualified Nonprofit Historic Preservation Organization” or “Qualified Organization” (QO) means either a nonprofit preservation or historical organization whose purposes include the preservation of historic properties, or a governmental body. A qualified organization must also demonstrate previous historic preservation, rehabilitation or acquisition activity; availability of staff with demonstrated professional training and experience in the administration of historic preservation programs; demonstrated experience with and a working knowledge of the Standards; and experience with the acquisition and resale of historic property.

“Rehabilitation” as defined by the Secretary of the Interior’s Standards for Rehabilitation, means the process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values.

“Stabilization” means the act or process of applying measures designed to reestablish a weather resistant enclosure and the structural stability of an unsafe or deteriorated property while maintaining the essential form as it exists at present. For archeological sites it includes work to moderate, prevent, or arrest erosion.

“Standards for the Treatment of Historic Properties” or “Standards” means the United States Secretary of the Interior’s Standards for the Treatment of Historic Properties codified as 36 CFR 68 in the July 12, 1995 Federal Register (Vol. 60, No. 133).

SECTION 3. APPLICATION FOR STATUS AS A QUALIFIED ORGANIZATION

Only organizations that meet the definition of a Qualified Organization as defined in Section 2.12. are eligible to receive loans from the Fund.

A Qualified Organization must demonstrate the capacity to undertake the project(s) proposed in the application with a reasonable prospect of bringing it to a successful conclusion. In assessing an applicant's ability to meet the requirements of this paragraph, the Commission may consider all relevant factors, including but not limited to the applicant’s organizational purpose; organizational history; previous historic preservation, rehabilitation or acquisition activity; scope of economic or revitalization vision; organizational plan for negotiating the purchase, marketing, sale, and long-term enforcement of preservation easements; and proof that the organization has corporate good standing and evidence of success in previous efforts. In addition, the Commission may consider evidence of success in previous efforts, the identification of anticipated sources of matching funds and description of the timeframe for final commitment.

SECTION 4. ELIGIBLE PROPERTIES

In order to be considered eligible for a loan under this program, the property that is proposed for acquisition must be an Endangered Historic Property as defined in Section 2.7.

SECTION 5. APPLICATION PROCEDURE

Applicants are required to complete and submit the three part Historic Preservation Revolving Loan Fund Application with all checklist items in accordance with the application instructions.

PART 1

Information and materials submitted with Part 1 of the Historic Preservation Revolving Loan Fund Application (Application) will be used as the basis for:

Evaluating the applicant organization’s status as a QO; and

Determining whether the property proposed for acquisition is an EHP, as defined in Section 2; and

Upon review of Part 1 of the Application, the Director will issue a written response stating whether the applicant’s organization is a QO, and whether the subject property is an EHP. If the Director determines that the applicant organization is a QO, and the property is an EHP, the QO may proceed to Part 2 of the Historic Preservation Revolving Loan Fund Application.

If the Director determines that the applicant is not a QO or the property is not an EHP, the applicant may appeal the determination to the Commission pursuant to Section 8.

PART 2

Information and materials submitted with Part 2 of the Historic Preservation Revolving Loan Fund Application will be used as the basis for evaluating the feasibility of acquiring and re-selling the EHP, and assessing the level to which the proposal meets the Evaluation Criteria in 5 MRSA §13056-F.5.

Upon review of Part 2 of the Application, the Director will issue a written recommendation to the Commission for consideration at its next regularly scheduled quarterly meeting, at which time the Commission will either approve or reject the acquisition proposal.

Approval of Part 2 of the Application authorizes the QO to submit documentation for payment of allowable costs associated with Part 2 and 3 of the application, up to but not exceeding $25,000.00.

PART 3

All of the items indicated under Part 3 of the Historic Preservation Revolving Loan Fund Application must be provided to the Director before any further payment from the Revolving Loan Fund will be made to the QO.

SECTION 6. EVALUATION CRITERIA

In accordance with the criteria in 5 MRSA 13056-F(5), the Commission shall evaluate and seek to fund those proposals that best meet its historic preservation priorities for the State and region and that support its economic and community development and enhancement priorities. The criteria are explained as follows:

The level of historic or architectural significance. Factors that shall be considered in determining an EHP’s level of historic or architectural significance shall include but not be limited to its importance to the history, architecture, archaeology, engineering, or culture of a community, the state, or the nation. If not already established in a National Register of Historic Places Nomination Form, the significance of the property will be determined by the Director using guidance published by the National Park Service. Properties that are not eligible for listing in the National Register of Historic Places cannot be EHPs for purposes of the Historic Preservation Revolving Loan Fund.

The value with respect to historic preservation and rehabilitation. Factors that shall be considered in determining the value of an EHP with respect to historic preservation and rehabilitation shall include but not be limited to its significance; its location relative to other historic properties (e.g. is it part of an historic district or a complex of historically and functionally related buildings?); its potential to act as a catalyst for other historic preservation and rehabilitation activities; its historic and/or cultural affiliation with other historic properties in the region; and whether it is a rare or unique resource in the region or state.

The degree to which the property is endangered. Factors that shall be considered in demonstrating the degree to which an EHP is endangered shall include but not be limited to an evaluation of physical evidence that documents current structural conditions (including previous structural repairs, conditions assessments by preservation engineers or other qualified professionals, etc.); a review of the history of previous attempts to preserve the property; the threat of imminent demolition and/or destruction of the property’s character defining features or physical setting; and in the case of an archaeological site, the threat of ground disturbance that could preclude future excavation and the recovery of information from it.

The economic significance to the immediate vicinity and to the State. Factors that shall be considered in demonstrating the economic significance of preserving an EHP to the immediate vicinity and to the State shall include but not be limited to its potential to increase local property tax revenue when rehabilitated; its potential to attract other revenue and investment; its potential to stimulate additional historic rehabilitation activity; and its potential to directly or indirectly foster job creation or retention.

The value with respect to downtown revitalization, open space conservation or other public purposes. Factors that shall be considered in demonstrating the value of preserving an EHP with respect to downtown revitalization, open space conservation or other public purposes shall include but not be limited to the economic and business climate of the downtown; the viability of long-term re-use plans; the potential impact on surrounding properties; the extent to which open space and/or cultural landscape(s) will be preserved as part of or in concert with the EHP and its proposed use; whether the EHP is in an area affected or threatened by sprawl; the types of proposed use, services or businesses to be offered within the EHP and related open space (e.g. do they serve a local need? How will they affect the cultural landscape and/or archaeological sites?); and the degree of public support for preservation of the EHP and/or the overall conservation and use plan.

The availability at fair market value. The availability of the EHP at fair market value shall be determined by comparison of the acquisition price with the appraised value of the property by a Certified Real Estate Appraiser;

The degree to which the property is available below fair market value. The degree to which the EHP is available below fair market value shall be determined by comparison of the acquisition price with the appraised value of the property by a Certified Real Estate Appraiser;

The potential marketability. Factors that shall be considered in ascertaining the potential marketability of the EHP shall include but not be limited to an assessment of the property’s marketability by a Licensed Real Estate Professional, taking into account the fact that the property will be offered for sale with a Preservation Easement or Covenant; the location of the property and the status of the surrounding real estate market; an evaluation of potential appropriate uses of the EHP; and the advertising and promotion strategy.

The feasibility of rehabilitation or restoration and reuse. Factors that shall be considered in demonstrating the feasibility of rehabilitating or restoring and reusing the EHP shall include but not be limited to whether it is adaptable in a manner consistent with local zoning and modern needs/uses; its condition (e.g. can the building be occupied in its current state, and if not, can the QO stabilize the building or otherwise mitigate hazardous conditions to facilitate its sale?); and its accessibility to public right-of-ways, services, and infrastructure.

The value of the proposed property with respect to tourism promotion and development. Factors that shall be considered in measuring the value of preserving the EHP with respect to tourism promotion and development shall include but not be limited to its potential appeal to out-of state travelers; how it fits into an overall tourism development plan; and how its preservation will preserve or enhance the visual and physical character of a community.

The degree of community support. Factors that shall be considered in evaluating the degree of support for preserving an EHP shall include but not be limited to the endorsement of municipal governments and their officials; endorsements and/or other past or current efforts by local or regional organizations involved in history or historic preservation to preserve the EHP; the support of other local or regional institutions or organizations (such as local or regional planning agencies, chambers of commerce, recreational or social clubs, etc.); the support of local businesses and citizens.

The extent to which the proposed project involves partnerships or meets multiple criteria. Factors that shall be considered in evaluating the extent to which the preservation of EHP involves partnerships shall include but not be limited to documentation that shows financial or other in-kind materials or services that have been pledged or provided by private, non-profit or governmental entities or individuals to support the project; the extent to which public access to the EHP will be ensured, and the types of public use to be allowed when it is sold by the QO.

SECTION 7. FORMAT AND COMPLETENESS OF APPLICATION

All information and photographs must be submitted both in printed hard copy and in an electronic format as stipulated in the application. The applicant must thoroughly and accurately address all of the Evaluation Criteria discussed under Section 6 in a concise, clear, well written format. Photographs must be printed on photo paper at a minimum size of 3.5 inches by 5 inches and be good, clear images that are numbered, dated, and labeled with the property name, the view, and a brief description of what is shown. Include a photo key plan—that is, a floor plan and, if applicable, a site plan showing numbered photographs and arrows indicating the view.

If any part of an application is incomplete it will be returned to the applicant with a brief explanation of deficiencies and the review period will start over from the time the application is resubmitted. If an application must be returned to an applicant more than twice, it will be returned to the applicant on the third time and will not be reconsidered for a full year from the date of return unless rewritten and submitted by a different QO.

SECTION 8. APPEAL PROCEDURE

Appeal Requests. An applicant may appeal any decision by the Director. A request for an appeal shall be made in writing to the Commission Chair within 30 days of receipt of the decision which is the subject of the appeal. Any such appeal must be in writing and shall set forth the manner in which the aggrieved claims the decision was arbitrary or unreasonable.

Decisions. In considering appeals, the Commission may take into account alleged errors in professional judgment or alleged prejudicial procedural errors.

Final Administrative Remedy. The decision of the Commission shall be the final administrative decision on the appeal. No organization or governmental body shall be considered to have exhausted its administrative remedies with respect to decisions described in this part until the Commission Chair has issued a final administrative decision in writing to the applicant in response to this section.

APPENDIX

Maine Revised Statutes, Title 5, Section 13056-F

36 Code of Federal Regulations, Part 60

36 Code of Federal Regulations, Part 68

Copies of all reference materials are available upon request from the Maine Historic Preservation Commission.

History

• STATUTORY AUTHORITY: 5 MRSA §13056-F
• EFFECTIVE DATE: April 22, 2014 – filing 2014-071
• EFFECTIVE DATE: 94-089 Chapter 815 page 7

94-178 Kim Wallace Adaptive Equipment Loan Program Fund Board

Chapter 501 Kim Wallace Adaptive Equipment Loan Program

Code Me. R. 94-178 Ch. 501 Kim Wallace Adaptive Equipment Loan Program Rule {#sec-94-178-ch.-501 omnilex-key=us-me-regs-official--dept-independent-agencies--94-178 Ch. 501}

Summary: This rule establishes the procedures and standards applicable to the Kim Wallace Adaptive Equipment Loan Program, a statewide program for making loans from a revolving fund to qualified borrowers to improve their independence or to assist them in becoming more productive members of the community. The Kim Wallace Adaptive Equipment Loan Program Fund Board may make loan funds available to qualified borrowers for approved purposes in accordance with this rule.

SECTION 1. Definitions

The following terms, some of which are defined in the Act, shall have the following meaning in this rule:

A. "Act" means the Kim Wallace Adaptive Equipment Loan Program Act enacted by P. L. 1987, Chap. 817, 10 M.R.S.A. §371 et seq ., as amended.

B. "Adaptive equipment" means any device, implement, or thing and associated acquisition costs which assists one or more persons with disabilities to improve their independence or to become a more productive member of the community. Adaptive equipment includes assistive technology as defined in the Assistive Technology Act of 1998 , 29 U.S. Code Section 3001 et seq ., as amended.

C. "Applicant" means any individual, organization, or entity that submits an application for a loan.

D. "Board" means the Kim Wallace Adaptive Equipment Loan Program Fund Board.

E. "Business" means an applicant other than an individual including, but not limited to for-profit and not-for-profit businesses.

F. "Construction loan" means a loan to an eligible applicant the proceeds of which will be used for the access or adaptation related enlargement, rehabilitation, remodeling or modification of an existing structure or building.

G. "Disability" means (i) any physiological disorder or condition or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory; genitourinary; hemic and lymphatic; skin; and endocrine; or (ii) any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities; or (iii) any physical or mental impairment including but not limited to, such diseases and conditions as traumatic brain injury, orthopedic, visual, speech, and hearing impairments, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illnesses, and drug addiction and alcoholism; or (iv) any physical or mental impairment which substantially limits one or more major life activities.

H. "Financial services provider" means an entity with which the board establishes a contract primarily to administer, underwrite, service, and document loans.

I. "Fund" means the Kim Wallace Adaptive Equipment Loan Program Fund (established by Section 372 of the Act).

J. "Fund administrator" means the state agency with which the Kim Wallace Adaptive Equipment Loan Program Fund is deposited pursuant to Section 372 of the Act.

K. "Individual" means an applicant who is a person with a disability who will benefit from the adaptive equipment or a person in a relationship, other than within the context of a business or employment relationship, with a person with a disability who will benefit from the adaptive equipment purchased.

L. "Loan" means a loan from the Kim Wallace Adaptive Equipment Loan Program Fund.

M. "Loan commitment" means a letter from the board or its designee to an applicant agreeing to make a loan subject to terms, conditions and requirements stated therein.

N. "New construction loan" means a loan to an eligible applicant the proceeds of which will be used to provide funding for the costs directly related to building or erecting access or adaptation related features in a newly constructed structure or building, including modular homes.

O. "Program" means the Kim Wallace Adaptive Equipment Loan Program.

P. "Qualified borrower" means an individual or entity which meets the eligibility requirements set forth in this rule.

Q. “State” means the State of Maine.

R. "Support services provider" means any organization, entity, or individual with which the board establishes a contract to provide services to the program, including but not limited to marketing, generating loan applications, providing credit counseling, providing legal services, and/or providing other administrative services.

SECTION 2. Administration

A. The board shall have the powers and duties provided in Sections 374 through 377 of the Act, and may delegate loan approval and denial authority to a financial services provider as set forth herein.

B. The board may enter into contracts with one or more responsible entities to perform the administrative functions necessary for the efficient conduct of the program. The contract(s) may provide for compensation for services rendered and reasonable expenses.

C. A minimum of 75% of all loans made shall be made to individuals, for acquisition of adaptive equipment for personal, family or household use.

SECTION 3. Loan Fund Administration

A. The fund administrator shall maintain and invest the fund as provided in Section 372 of the Act, and shall report periodically to the board regarding fund activity and the balance of the fund.

B. The fund shall grow from interest on investments, appropriations, interest on loan payments, grants, endowments and gifts. The fund shall be used to make direct loans and cover costs and expenses associated with maintaining, servicing and administering the fund.

C. The fund may be used to compensate members of the board for expenses incurred as provided by 5 M.R.S.A chapter 379.

D. The fund administrator shall make disbursements from the fund for permitted purposes to the financial services provider upon request of the financial services provider and as mutually agreed between the board, the fund administrator and the financial services provider.

SECTION 4. Eligibility

A. The applicant must demonstrate that the loan will assist one or more persons with disabilities to improve their independence or quality of life or become more productive members of the community.

B. Loan proceeds must be used for the purchase of adaptive equipment that will assist one or more persons with disabilities to improve their independence or quality of life or become more productive members of the community.

C. The amount of the loan sought shall not, when added to the principal balance of any other outstanding or approved loans to or for the benefit of the same applicant, exceed the maximum permitted aggregate, per borrower loan amounts set forth in Section 6(A), and shall not result in any one individual or entity becoming liable to the board as borrower or as guarantor for amount in excess of $100,000 in the aggregate.

D. An applicant who has previously been denied for a program loan may not reapply unless the new application is a significant change from the denied application.

E. An applicant must demonstrate creditworthiness and repayment ability.

SECTION 5. Application Procedure and Contents

A. Applications are to be submitted as directed by the board and must include such information as necessary and required by the board.

B. The following shall be considered in approving or denying an application for a loan:

1. Whether an applicant is eligible for a loan.

2. Whether the loan proceeds will be put to an eligible use.

3. Whether the applicant has the ability to repay the loan.

4. Whether any other financing sources may be used to supplement the loan.

5. Whether there are sufficient assets to provide adequate collateral for the loan.

C. A financial services provider to whom the board has delegated loan approval and denial authority shall approve or deny loan applications according to the Act and this rule and underwriting guidelines approved and reviewed at least annually by the board.

D. Such financial services provider shall, on behalf of the board, issue a loan commitment if the loan application is approved or notify the applicant of its findings regarding a denied loan application with notice of the appeal process.

SECTION 6. Loan Terms, Conditions and Administration

A. Loans shall be in an amount which is reasonable to acquire the adaptive equipment as shown by materials submitted with the application. In no event shall any single or cumulative loan(s) for the same project exceed $100,000, nor shall any single or cumulative loan(s) to or for the benefit of the same borrower exceed $100,000. For the purposes of this subsection (A), the term "borrower" shall include an applicant.

B. Loans shall bear an annual interest rate approved and reviewed by the board. The interest rate shall not exceed the maximum rate as allowed by State of Maine Law. Interest shall be fixed as of the date of issuance of the loan commitment. The board shall approve interest rates to be applied by the financial services provider within the parameters established in this subsection (B) and corresponding underwriting guidelines, at least annually.

C. The term of each loan shall be based on the applicant's circumstances and the useful life of the collateral. The term of a construction or new construction loan shall not exceed 30 years from the date of the first disbursement. The term of any other type of loan shall not exceed 20 years.

D. The board or its financial services provider may require collateral. Guarantees will generally be required of any individual or entity that holds (i) 20% or more of the ownership interests in any non-individual entity that is an applicant or borrower or (ii) 5% or more of the ownership interests in any non-individual entity which is an applicant or borrower and receives substantial income from the entity. Guarantees may also be required of other individuals or entities, including, without limitation, owners of more than 20% of the ownership interests in any entity which in turn owns 20% or more of any applicant or borrower. In no event however, shall any one individual or entity, as borrower or as guarantor or as any combination thereof, become liable to the board for an amount in excess of $250,000 in the aggregate. Except as specifically approved by the financial services provider, collateral shall be located within the State, or, if mobile, shall be registered within the State if the State registers such mobile collateral.

E. The financial services provider will prepare the loan documentation. Execution of all loan documentation in form and content satisfactory to the board shall be a condition precedent to the payment of loan proceeds to the applicant. The borrower shall agree to terms and conditions in the loan documentation substantially standard to the industry or as may be reasonably required by the financial services provider and authorized by the board.

F. The following terms and conditions shall apply to construction and new construction loans, in addition to terms and conditions typical of such loans:

1. The board or its designee has the right to inspect all construction during reasonable hours.

2. Disbursements may be made in multiple installments, which may consist of one or more two-party checks.

3. After the first disbursement, the borrower shall be required to provide lien waivers from appropriate contractors evidencing receipt of payments for work performed prior to any further disbursement.

4. Interest only shall be due on the loan proceeds disbursed until such time as the loan is fully disbursed. The financial services provider may set a time after which it may require commencement of payment of principal and interest on the loan proceeds disbursed, if the construction is not completed within a reasonable time.

G. A borrower’s rights under the loan commitment are non-assignable.

H. A loan is in default when any payment is 30 days past due or upon the occurrence of any event of default as defined in the loan documents. When a loan is in default, the financial services provider shall provide the borrower with legally sufficient notice of default and opportunity to cure the default. If the borrower fails to cure the default within the allotted time, the financial services provider shall take all appropriate action provided under law and the loan documents.

I. The board may charge reasonable administration, loan servicing, and documentation fees to borrowers.

SECTION 7. Loans for Transportation Assistance Program

A. Purpose

The board, or its designee, may award loans for the purpose of assisting persons with disabilities to purchase used vehicles necessary to obtain or retain employment or employment training, subject to the terms and conditions of this Section 7.

B. Eligibility

In order to be eligible for a loan under this Section 7, an applicant must be eligible under other provisions of this rule (other than Section 4(B)), and must demonstrate that:

1. He or she is receiving vocational services from a State or community-based organization, which organization provides employment services to persons with disabilities; and

2. The organization has certified that the applicant has entered into an individualized plan towards employment developed with such organization to obtain or retain employment or employment training, which plan identifies transportation as a need of the applicant; and

3. The operator of the vehicle has a valid driver’s license and the required insurance; and

4. Adequate collateral is being provided for the loan; and

5. He or she is employed, or is actively pursuing completion of an employment training program or is considered “ready for employment” or the equivalent, as determined by the organization, and is reasonably likely to repay the loan.

C. Limitations

Loans under this Section 7 shall not, when added to other loans under the program to the same borrower, exceed the aggregate maximum stated in Section 4(C). In addition, the maximum aggregate amount of all loans issued under this Section 7 shall not at any time exceed 7% of the value of program gross notes receivable.

D. Loan Limit

The amount of a loan under this Section 7 shall not exceed the amount necessary to purchase the vehicle minus $250. The amount necessary to purchase the vehicle may include sales tax and, in the case of a purchase from or through a car dealer, the dealer’s associated fees.

E. Application Process

Loan applications under this Section 7 shall be processed in accordance with this rule and as directed by the board. If authorized by the board, the financial services provider may approve an application subject to the borrower obtaining employment with a stated minimum level of wages, and/or subject to borrower identifying a vehicle to be purchased with a value which equals or exceeds the amount of the loan, according to the most recent NADA Official Used Car Guide (New England Edition).

SECTION 8. Waiver of Rule

The board may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

SECTION 9. Confidentiality

Any and all program materials, applications and supporting information and materials obtained by the board or any service provider to aid in its provision of assistance shall be confidential to the extent required or permitted under 1 M.R.S.A. §405.

SECTION 10. Appeal

In the event that an application is denied by the financial services provider, the applicant may appeal to the board. Notice of appeal should be directed to the financial services provider in writing, stating why the decision should be modified or reversed. Notice of appeal must be submitted within 30 calendar days of the date of the denial letter. The appeal shall be heard at the next regularly scheduled meeting of the board. The applicant may be present to support the appeal. The appeal shall be based on the application record on the date of denial. The decision of the board will be final.

History

• STATUTORY AUTHORITY: 10 M.R.S. §371
• EFFECTIVE DATE: November 18, 1989
• AMENDED: May 21, 1990 - various amendments including the addition of Sections 1 (R), 1 (S) and 7‑A, and the amendment of Section 7(D)
• AMENDED: August 31, 1991 - various amendments including the addition of Sections 1(T), 1(U), 1(V), 1(W), 2(D), 5(A)(6)(a-d), 8(F), 8(G), 8(H)(1-6) and the amendment of 4(A), 7-A(C), 8(A), 8(B), 8(C)
• AMENDED: May 3, 1995 - amendment of Section 7-A(A), (B)(4), (C) and (D)
• AMENDED: December 17, 1997 - various amendments to 1(V), 1(W), 3(C), 5(A)(5) and (6), 7(D), 7‑A(A), 8(A), 14, the deletion of 1(H), 2(D), 5(A), 5(a), and the addition of 7(F)
• AMENDED: March 1, 1998 - amendment to 8(A)
• AMENDED: July 23, 2001 - amendment to provisions 4(C), 7-A(A), 8(A), and 8(D)
• AMENDED: October 27, 2003 - Amendment 7
• AMENDED: March 13, 2006 - Amendment 8, various amendments to 7(C)(2), 7-A, and 11
• AMENDED: July 8, 2012 Amendment 9, various formatting or technical amendments; substantive amendments to 1(D); 8(B), (D) and (E); and 11, including the addition of 11(D) where previously reserved.
• EFFECTIVE DATE: September 12, 1989 (EMERGENCY), filing 89-359
• EFFECTIVE DATE OF PERMANENT RULE: November 18, 1989, filing 89-480
• AMENDED: May 21, 1990 – Amendment 1, filing 90-188
• AMENDED: August 31, 1991 – Amendment 2, filing 91-339
• AMENDED: May 3, 1995 – Amendment 3, filing 95-191
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling, filing C-96-20
• AMENDED: December 17, 1997 – Amendment 4, filing 97-418
• NON-SUBSTANTIVE CORRECTIONS: January 30, 1998 - minor spacing
• AMENDED: March 1, 1998 – Amendment 5 - Section 8(A), filing 98-108
• AMENDED: July 23, 2001 – Amendment 6, Section 4(C), 7-A(A), 8(A), 8(D), filing 2001-268
• AMENDED: October 27, 2003 – Amendment 7, filing 2003-368 - new Section 11 added, numbering adjusted
• NON-SUBSTANTIVE CORRECTIONS: February 18, 2004 - punctuation, full Board name, filing C-04-7
• NON-SUBSTANTIVE CORRECTIONS: March 15, 2004 - restored the word "sought" in Section 4(C)
• AMENDED: March 13, 2006 - Amendment 8, various amendments to 7(C)(2), 7-A, and 11, filing 2006-106
• AMENDED: July 8, 2012 – Amendment 9, filing 2012-192
• REPEAL AND REPLACE: June 12, 2018 – filing 2018-103
• REPEAL AND REPLACE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 502 Procedures Governing Administration of the Adaptive Equipment Loan Program Fund Board

Code Me. R. 94-178 Ch. 502 Procedures Governing Administration of the Adaptive Equipment Loan Program Fund Board {#sec-94-178-ch.-502 omnilex-key=us-me-regs-official--dept-independent-agencies--94-178 Ch. 502}

Summary: This rule establishes procedures of the Adaptive Equipment Loan Program Fund Board (the "Board"), including the conduct of hearings for appeals.

1. Administrative Functions

The Board may hire contractors or employees to perform the necessary administrative functions of the Board. The authority of each Contractor shall be delineated in a written agreement between the Board and the Contractor.

2. Bylaws of the Members of the Board

A. Name. The name of the Board is the Adaptive Equipment Loan Program Fund Board (10 M.R.S. §371).

B. Purpose. The Board was created by vote of citizens of the State of Maine for the purposes set forth in the Adaptive Equipment Loan Program Act (10 M.R.S. §371 and following).

C. Office. The principal office of the Board may be at such location as it shall determine. If the Board chooses not to maintain an office, the Board shall maintain such mailing address as it shall determine.

D. Members of the Board. The members of the Board shall be appointed and compensated and shall serve such terms as the Act may specify (10 M.R.S. §373).

E. Quorum. A majority of members serving on the Board constitutes a quorum.

F. Distance attendance at meetings. Upon the prior approval of the Chair, a member may be deemed present at a meeting for purposes of quorum and voting, if the member participates by means of a conference telephone, videophone, or other telecommunication medium through which the proceedings can be heard or perceived by all persons present and all can communicate with the Board. Such attendance shall only be approved in special circumstances determined in the discretion of the Chair.

G. Officers. The members shall elect from among themselves one person as Chair, one person as Vice Chair who shall serve as secretary, and such other officers as it may from time to time determine (10 M.R.S. §373). The officers shall have a term of one year and shall serve until the election of their successors. The Chair shall preside over meetings of the members. In the absence or incapacity of the Chair or if for any reason there is no Chair, then the Vice Chair shall perform the duties of the Chair. The Chair shall sign the minutes of all meetings of the members, after such minutes have been approved by the members.

H. Nominating Committee. At least four weeks before the date scheduled for the annual meeting, the Chair shall appoint a nominating committee consisting of three members, who shall report to the members, presenting a slate of nominees for officers of the Board. Nominations may be accepted from the floor.

I. Regular meetings. The Board shall establish annually a schedule of regular meetings.

J. Special meetings. Special meetings of the members may be called by either the Chair or any three members.

K. Annual Meeting. The annual meeting of the members shall be held in July of each year at which time the members shall elect the officers.

L. Location of Meetings. Meetings shall ordinarily be held in Augusta, unless another location is designated by the chair.

M. Compensation Requests. A member's request for payment for reimbursement of expenses in connection with a duly called regular or special meeting of the members shall be presented to the service provider contracted by the Board for approval and payment pursuant to 5 M.R.S. §12002.

N. Notice of Meetings. Notice of meetings shall be set forth on the website of the Board and the website of the service provider contracted by the Board.

O. Agenda. The service provider for the Board, in consultation with the Board Chair, shall send an agenda for the meeting to each Board member at least two (2) business days prior to a meeting.

3. Advisory Rulings

The Chair is authorized to issue nonbinding advisory rulings as to the applicability of the Adaptive Equipment Loan Program Act (the "Act") or the Board's rules to an applicant, its property or circumstances. Requests for advisory rulings must be in writing and must specifically identify the section or provision of the statute or rule on which the ruling is sought. The Chair may decline to issue any ruling if the request is not sufficiently specific, is not accompanied by adequate information, does not adequately identify the applicant or the purpose for which the ruling is sought, require additional information before issuing a ruling, or if the Chair determines that issuance of a ruling would not assist the applicant or would be contrary to the purposes of the Act. All rulings shall be in writing. Rulings shall not be binding upon the Board. The Board may charge an applicant for a ruling the Authority's actual, out-of-pocket costs and expenses, if any, in preparing any ruling.

4. Hearing Procedures for Appeals

In any appeal of a denial decision by the service provider in accordance with 94-178 CMR chapter 501, the hearing shall be conducted substantially as follows:

A. The service provider contracted by the Board may make a statement summarizing their findings that support the denial of the loan application. The Board may ask questions of the service provider.

B. The applicant may make a statement in support of the appeal and shall be provided an opportunity to respond to any statements made by the service provider. The Board may ask questions of the applicant.

C. Board members shall be given an opportunity to state the basis of their votes on the appeal.

D. Appeals shall be based on the record on the date of denial. If the applicant has information that supports his or her ability to repay the loan which was not presented to the service provider, the Board may deny the appeal, but recommend that the applicant re-apply for the loan.

E. The Board shall grant the appeal and approve the application if it finds that the Board’s established criteria for approving applications under 94-178 CMR Chapter 501 were not appropriately applied and the applicant has the ability to repay the loan.

5. Conflict of Interest

No Board member may participate in a vote on an application where that member has a direct or indirect pecuniary interest in the outcome of the vote.

History

• STATUTORY AUTHORITY: 10 M.R.S. §374 (4); 5 M.R.S. §§ 8051, 9001
• EFFECTIVE DATE: December 1, 1990 – filing 90-519
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996 – filing 96-159
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling.
• AMENDED: June 14, 1999 - added Section 5, Code of Ethics, filing 99-241
• AMENDED: March 18, 2020 – filing 2020-054

Chapter 503 Kim Wallace Adaptive Equipment Loan Program Underwriting Guidelines

Code Me. R. 94-178 Ch. 503 Kim Wallace Adaptive Equipment Loan Program Underwriting Guidelines {#sec-94-178-ch.-503 omnilex-key=us-me-regs-official--dept-independent-agencies--94-178 Ch. 503}

SUMMARY: This rule publishes the loan underwriting guidelines, including interest rates, that have been proposed by the Financial Services Provider and reviewed and approved by the Kim Wallace Adaptive Equipment Loan Program Fund Board.

UNDERWRITING GUIDELINES FOR LOANS TO INDIVIDUALS WITH DISABILITIES

Section 1. PURPOSE

The founding intent and essential purpose of the Kim Wallace Adaptive Equipment Loan Program (“AELP”) is to provide financing for people with disabilities within the State of Maine for the purchase of adaptive equipment or assistive technology that will help them live more independently. AELP is committed to working with people with disabilities who may not have access to commercial financing resources, such as banks or credit unions. At the outset, AELP directs potential loan applicants to available public and private funding sources that may provide grant monies or other resources that would obviate or reduce the need for financing. AELP also provides financial education before and throughout the application and loan process. The board or any entity with which the board is contracted to provide financial support services may award loans based on the following program guidelines.

Section 2. PROCEDURES AND STANDARDS

Loan applications shall be processed according to the procedures and standards set forth in the Kim Wallace Adaptive Equipment Loan Program, Rule 94-178 Chapter 501, ( The Program Rule ). Where applicable, the definitions of the terms contained in Section 1 of the program Rule apply to the terms as they are used in these underwriting guidelines. To the extent consistent with the Act and the Program Rule, the following underwriting guidelines shall supplement the Program Rule.

Section 3. LOAN INTEREST RATE

AELP’s current interest rate of 3.75% is available to all applicants who qualify for loan pursuant to the Act, the Program Rule, and these underwriting guidelines.

Section 4. UNDERWRITING GUIDELINES FOR LOANS TO INDIVIDUALS WITH DISABILITIES

1. Loan Periods. The term of each loan shall be based on the applicant’s circumstances and the useful life of the collateral. Typical Repayment periods for various types of loan are shown below: 1. Computers and adaptive peripherals – 3 years 2. Stand-alone reading and magnification devices – 5 years 3. Hearing Aids – 4 years 4. Wheelchairs or scooters – 5 years 5. Building modifications – 10 years 6. New vehicles that need adaptations (including when there is another funding source for the adaptations) – 7 years. 7. Used vehicles that need adaptations (including when there is another funding source for the adaptations) – 6 years 8. Lifts and elevators – 10-20 years 9. Furniture, beds and mattresses – 7-10 years 10. Other - If AELP has not established a loan period for specific type of adaptive equipment or assistive technology knowledgeable individuals will be consulted to determine and assess the expected useful life.
2. Collateral. Collateral will be required for all loans. AELP will take a security interest in the adaptive equipment or assistive technology purchased. For real estate loans of $15,000 and greater, equipment loans of $10,000 and greater, and all vehicle loans, the security instrument will be filed or recorded as necessary to perfect the security interest. For all real estate loans that will require a mortgage as security, AELP will first use the Tax Assessed Value. In some instances, an appraisal will be required. The accepted loan to value ratio for mortgages will be 90%.

Examples of Adaptive Equipment and Assistive Technology.

AELP will facilitate loans to purchase a broad array of adaptive equipment and assistive technology. Examples include, but are not limited to the following:

• 1. Wheelchairs and scooters 2. Braille note takers 3. Assistive listening devices 4. Telecommunications devices 5. Electronic aids to daily living 6. Visual aids with voice output or magnifying features 7. Computers, tablets and adaptive peripherals, applications 8. Building modifications for accessibility including labor 9. Motor vehicles that have been adapted or need adaptations 10. Hearing aids 11. Seat lift chairs 12. Recreational equipment including adapted bicycles, Nintendo Wii

1. Loan Restrictions. AELP provides loans for the purchase of adaptive equipment or assistive technology devices and services. AELP will accept applications for the refinance of a purchase, however, if the application is submitted within 60 days of the purchase date of the item. During the refinancing application process, the applicant will be required to submit suitable proof of purchase date.
2. Credit Worthiness and Capacity to Repay the Requested Loan. The criteria discussed below seek to produce a reasonable expectation that the applicant will repay the loan in full. The three most important criteria for an AELP loan are credit history, debt-to- income ratio, and capacity to repay. When the applicant has a history of credit problems, the applicant must be able to demonstrate that he or she has a workable plan to deal with those problems. A pattern of adverse credit actions that cannot be adequately explained and has not been adequately dealt with will result in a decision not to approve a loan.

Similarly, an applicant who does not have adequate cash available to pay for a new loan after taking care of other financial obligations will not be approved for a loan. If the applicant has experienced a bankruptcy, she/he must be cleared from discharge for a minimum of one year.

The following criteria will be examined in underwriting the loan application:

• 1. Proof of Income. An applicant will be required to provide proof of his/her current income. Acceptable documentation includes, but is not limited, to copies of IRS income tax return, a pay stub, W-2 form, child support, survivor benefits, an SSDI or SSDI Award Letter. 2. Timely Payment of Residence Expense. If the applicant owns or rents his or her residence, he or she must demonstrate that payments to the mortgage lender or landlord have been made in a timely fashion for previous 12 months. 3. Credit History. Experian credit reports, as well as AELP’s previous lending experience with the applicant, if any, are the primary sources of determining the applicants’ repayment habits.

Provided the additional criteria below are met, AELP will accept an Experian credit reporting score of 0 (no credit history) or 569 and higher. If there are co-applicants, AELP will use the higher of the credit scores to determine eligibility. If the applicant has experienced any of the credit problems describe below within 12‑month period preceding the application, the applicant must demonstrate resolution of the credit problem, or the loan application will be denied.

Credit Problems Within the Past Twelve Months

1. Delinquency with a Creditor. If the applicant has been delinquent with a creditor within the past 12 months, the applicant must adequately explain the reason for delinquency and provide satisfactory evidence that the delinquency has been cured.

If any of the following items are on the credit report and designated as “not paid,” evidence of full payment or a payment arrangement in place will be required: tax liens, civil judgments, levies, or child support obligations (both payments and receipts). If any of these items are on the credit report, but designated as paid, no additional evidence of payment will be required.

If the applicant indicates the child support payments are being paid, and there is nothing on the credit report or other available data to suggest otherwise, then no additional evidence of payment will be required.

1. Collection Accounts. If an account in collections is less than 1 year from last activity, payment arrangements must be established by the applicant (s). If the collection account has gone over a year since last activity and is over $100 it must be paid in full.
2. Medical Collections. Medical collections if related to the applicant’s disability are excluded from credit evaluation, but in all events the applicant must still demonstrate a positive discretionary income as described above including medical collection payment at issue.
3. Education Loans. Applicant must provide evidence of payment arrangements or deferment, including when re- payment will begin; education loans are generally not forgiven or discharged in bankruptcy.
4. Mortgages. If mortgaged loans are being modified or refinanced, evidence from the lender must be provided. Mortgage foreclosures must be explained in writing.
5. Ability to Repay. After a careful examination of these credit issues, the AELP Financial Service Provider must be satisfied that the applicant has the capacity and credit worthiness to repay the requested loan in full. An Applicant who lacks acceptable credit may apply or reapply with a qualified co- applicant or may apply for a loan at a later time should his/her financial circumstances change.

Debt-to-income ratio. AELP requires documented proof of all income and debts. Up to a year of the most recent bank statements may be required to show all recurring debts. In the first instance, AELP looks for a debt-to income ratio of less than 50%. “ Debt-to -income ratio” as used here means the relationship of an applicant’s fixed monthly debt to his/her monthly income. AELP will accept a 50% or higher debt-to-income-ratio if, but only if, the applicant can adequately document sufficient cash flow to make loan payments after meeting all other outstanding obligations and expenses. That is, the applicant must document positive discretionary income after the requested loan payment. The applicant’s monthly AELP loan payment will be included in the debt-to -income ratio calculation. If co-applicant is on application, AELP will consider the combined debt-to income ratio.

Discretionary Income. “Positive Discretionary Income” means that the applicant has documented reliable income in excess of the applicant’s monthly expenses, including all necessary and reasonable living expenses, all debt and expense obligations incurred, and the monthly payment obligations for the requested loan and any insurance that may be required for the equipment and/or device to be purchased. Applicants with a debt-to-income ratio of 50% must demonstrate positive discretionary income of at least 50% of the applicant’s proposed loan payment. In calculating discretionary income, the following will be included in evaluation of income and expenses. Expenses include, but not limited to, groceries, medical bills, utilities (heat, sewer, water, phone, etc.), rent/mortgage, real estate taxes, auto/transportation costs, clothing, insurance, education, credit card payments, child support or alimony, and other miscellaneous debts or expenses. AELP may require documentary proof for any or all these expenses. Income includes but not limited to, all wages, salary, commissions, interest, pensions, and other sources of financial support such as employment -related disability benefits, Supplemental Security Income (SSI), Social Security Disability Income (SSDI) and Social Security retirement benefits.

Credit Reports. AELP will conduct its own credit checks on all applicants by using a recognized credit reporting agency.

Section 5. ADDITIONAL LOAN PROCEDURES

1. Joint Check Issuance. In most instances, loan proceeds will be payable to both the borrower and the supplier/vendor of the adaptive equipment or assistive technology device. If the vendor does not accept a two-party check or the borrower wishes to not be listed on the funds, the check will be made payable directly to the vendor.
2. Deadline for Loan Closures. Once approved for a loan, the applicant must close the loan with the participating lender within ninety (90) calendar days of the date of approval. Applicants who have not closed their loans within the ninety-day period will need to submit updated information or may have to reapply.
3. Deferred Payments. After a loan has been made, if the borrower encounters difficulty repaying his or her loan on time and requests deferral, up to three monthly payments can be deferred. The amount deferred will be added to the full loan commitment at the end of the life of the loan.

Underwriting Guidelines for the AELP II Program

Section 1. STATEMENT OF PURPOSE.

The founding intent and essential purpose of the Kim Wallace Adaptive Equipment Loan Program (“AELP”) is to provide financing for people with a disability within the State of Maine for the purchase of adaptive equipment or assistive technology that will help them live more independently. Per program rule, a segment of the loan portfolio can be loaned out for the purpose of assisting Mainers with disabilities to purchase used vehicles without adaptations necessary to obtain or retain employment or employment training, subject to limitations. The Board or any entity with which the board is contracted to provide financial support services may award loans based on the following program guidelines.

Section 2. PROCEDURES and STANDARDS

Loan applications shall be processed, and program eligibility will be determined according to the procedures and standards set forth in the Kim Wallace Adaptive Equipment Loan Program Rule, 94-178 Chapter 501, (“the Program Rule”). Where applicable, the definitions of terms contained in Section 1 of the Program Rule apply to the terms as they are used in these underwriting guidelines. To the extent consistent with the Act and Program Rule, the following underwriting guidelines shall supplement the Program Rule.

Section 3. LOAN INTEREST RATES

The interest rate for AELP II is 3.75% and is available to all applicants who qualify for a loan pursuant to the Act, the Program Rule, and these underwriting guidelines.

Section 4. UNDERWRITING GUIDELINES

1. Loan Periods. The term of each loan shall be based on the applicant’s circumstances and the useful life of the collateral:

Used vehicles without adaptations- up to 6 years

1. Collateral. Collateral will be required for all loans, AELP II will take a security interest in the vehicle being purchased. The value of the vehicle to be purchased will be determined using the official National Automobile Dealers Association (NADA) used car guide. If the purchase price of the vehicle does not meet the NADA value, then the loan will be denied. Under the AELP LL program, borrowers must use the purchased vehicle for the purpose of obtaining and retaining employment or employment training, subject to Section 7 of the program rule. Any misuse of the collateral will result in default.
2. Loan Restrictions. AELP II provides loans for the purchase of vehicle for consumers with disability who demonstrate a need for vehicle subject to the program rule. Under the AELP-II program, a co-applicant is not allowed. A vehicle purchased through AELP II may be no more than 10 years old at the time of purchase.
3. Loan Limit. The amount of a loan under AELP II shall not exceed the amount necessary to purchase the vehicle minus $800. The amount necessary to purchase the vehicle may include sales tax and, in the case of a purchase from or through a car dealer, the dealer’s associated fees.
4. Credit Worthiness and Capacity to Repay the Requested Loan. The criteria discussed below seek to produce a reasonable expectation that the applicant will repay the loan in full. The three most important criteria for an AELP II loan are credit history, debt-to-income ratio, and capacity to repay.

When the applicant has a history of credit problems, the applicant must be able to demonstrate that he or she has a workable plan to deal with those problems. A pattern of adverse credit actions that cannot be adequately explained and has not been adequately dealt with will result in a decision not to approve a loan. Similarly, an applicant who does not have adequate cash available to pay for a new loan after taking care of other financial obligations will not be approved for a loan. If the applicant has experienced a bankruptcy, he or she must be cleared from discharge for a minimum of one year. The following criteria will be examined in underwriting the loan application:

• 1. Proof of Income . An applicant will be required to provide proof of his/her current income. Acceptable documentation includes, but is not limited to, copies of IRS income tax return, up to 3 pay stubs, W-2 form, child support, survivor benefits, an SSDI or SSI Award Letter. 2. Timely Payment of Residence Expense. If the applicant owns or rents his or her residence, he or she must demonstrate the payments to mortgage lender or landlord have been made in a timely fashion for the previous 12 months. 3. Credit History. Experian credit reports, as well as AELP and AELP II’s previous lending experience with the applicant, if any, are the primary sources for determining the applicant’s repayment habits. Provided the additional criteria below are met, AELP II will accept an Experian Credit reporting score of 0 (No Score) or 610 and higher. If the applicant has experienced any of the credit problems describe below within 12-month period preceding the application, the applicant must demonstrate resolution of the credit problem, or the loan application will be denied.

Credit Problems within the past Twelve Months

1. Delinquency with a creditor. If the applicant has been delinquent with a creditor within the past 12 months, the applicant must adequately explain the reason for delinquency and provide satisfactory evidence that the delinquency has been cured. If any of the following items are on credit card report and designated as “not paid,” evidence of full payment or a payment arrangement in place will be required: tax liens, civil judgments, levies, or child support obligations (both payments and receipts). If any of these items are on the credit report, but designated as paid, the applicant need not provide additional evidence of payment. If the applicant indicates the child support payments are being paid, and there is nothing on the credit report or other available data to suggest otherwise, then the applicant need not provide additional evidence.
2. Collection Accounts. Collection Accounts that are non- medical in nature are not permissible through the AELP II program unless the borrower can provide evidence that the account has been successfully disputed or cleared.
3. Medical Collections. Medical collections if related to the applicant’s disability are excluded from the credit evaluation, but in all events the applicant must still demonstrate a positive discretionary income as described above including the outstanding medical collections.
4. Education Loans. Applicant must provide evidence of payment arrangements or deferment, including when re- payment will begin; education loans are generally not forgiven or discharged in bankruptcy.
5. Mortgages. If mortgage loans are being modified or refinanced, evidence from the lender must be provided. Mortgage foreclosures within 7 years of the application date are subject to review.
6. Ability to Repay. After careful examination of these credit issues, the AELP II program must be satisfied that the applicant has the capacity and credit worthiness to repay the requested loan in full. An applicant who lacks acceptable credit may reapply for a loan later should his/her financial circumstance change.

Debt-to Income Ratio . AELP II requires documented proof of all income and debts. Up to a year of the most recent bank statements may be required to show all recurring debts. In the first instance, AELP II looks for a debt-to income ratio of less than 50%. “ Debt-to -income ratio” as used here means the relationship of an applicant’s fixed monthly debt to his/her monthly income. AELP II will accept a 50% or higher debt-to- income-ratio if, but only if, the applicant can adequately document sufficient cash flow to make loan payments after meeting all other outstanding obligations and expenses. That is, the applicant must document positive discretionary income after requested loan payment. The applicant’s monthly AELP II loan payment will be included in the debt-to -income ratio calculation

Discretionary Income. “Positive Discretionary Income” means that the applicant has documented reliable income more than the applicant’s monthly expenses, including all necessary and reasonable living expenses, all debts and expense obligation incurred, and the monthly payment obligations for the requested loan and/or device to be purchased. Applicants with a debt-to-income ratio of greater than or equal to 50% must demonstrate positive discretionary income at least 50% of the applicant’s proposed loan payment. In calculating discretionary income, the following will be included in evaluation of income and expenses. Expenses include but are not limited to, groceries, medical bills, utilities (heat, sewer, water, phone, etc.), rent/mortgage, real estate taxes, auto/transportation costs, clothing, insurance, education, credit card payments, child support or alimony, and other miscellaneous debts or expenses. AELP II may require documentary proof for any or all these expenses. Income includes but is not limited to, all wages, salary, commissions, interests, pensions, and other sources of financial support such as employment - related disability benefits, Supplemental Security Income (SSI), Social Security Disability Income (SSDI) and Social Security retirement benefits.

Credit Reports . Credit checks will be conducted on all applicants by using a recognized credit reporting agency.

Section 5. ADDITIONAL LOAN PROCEDURES

Deadline for Loan Closures. Once approved for a loan, the applicant must close the loan with the participating lender within ninety (90) calendar days of the date of approval. Applicants who have not closed their loans within the ninety-day period will need to submit updated information or may have to reapply.

Deferred Payments. After a loan has been made, if the borrower encounters difficulty repaying his or her loan on time, they may request up to three monthly payments of deferred payments. The amount deferred will be added onto the full loan commitment at the end of the life of the loan.

Joint Check Issuance. AELP II requires that loan proceeds be payable to the borrower and the dealership/seller of the vehicle unless the seller does not accept a two-party check, in which case the check will be made payable to the seller.

Loan Underwriting Guidelines for the AELP Business Loan Program

Section 1. STATEMENT OF PURPOSE

The founding intent and essential purpose of the Kim Wallace Adaptive Equipment Loan Program (“AELP”) is to provide financing for individuals within the State of Maine for the purchase of adaptive equipment or assistive technology that will help them live more independently. Per statute, there are funds available through a business loan program. These funds can be lent to a qualified business corporation or partnership which demonstrates that the loan will assist one or more persons with disabilities to improve their independence or become more productive members of the community. The AELP Board may make loan funds available to qualified borrowers or businesses for approved purposes in accordance with the program rule. The board, or any entity with which the board is contracted to provide financial support services, may award loans based on the following program guidelines.

Section 2. PROCEDURES AND STANDARDS

Loan applications shall be processed according to the procedures and standards set forth in the Kim Wallace Adaptive Equipment Loan Program Rule , 94-178 Chapter 501, (“the Program Rule. Where applicable, the definitions of terms contained in Section 1 of the Program Rule apply to the terms as they are used in these underwriting guidelines. To the extent consistent with the Act and the Program Rule, the following underwriting guidelines shall supplement the Program Rule.

Section 3. LOAN INTEREST RATES

The AELP business loan interest rate is based on the Federal Open Market Committee U.S. Prime Rate , as reported by the Wall Street Journal bank survey https://www.bankrate.com/rates/interest-rates/wall- street-prime-rate/ . The qualified borrower can expect to receive an interest rate reflective of the current interest market and the applicant’s qualifications.

The three available interest rates are:

Prime -1

Prime

Prime +1

For further information on how this rate is determined, refer to the “ AELP Business Loan Matrix” companion ( Appendix 1 ) to these written guidelines.

Section 4. UNDERWRITING GUIDELINES FOR THE AELP BUSINESS LOAN PROGRAM

1. Loan Periods. The term of each loan shall be based on the applicant’s circumstances and the useful life of the collateral. 1. Building Modifications- up to 10 years 2. New vehicles that need adaptations- up to 7 years 3. Used vehicles that need adaptations- up to 6 years 4. Lifts and elevators-up to 20 years 5. Other - If the AELP business loan program has not established a loan period for a specific type of adaptive equipment or assistive technology knowledgeable individuals will be consulted to determine and assess the expected useful life.
2. Collateral. Collateral will be required for all loans. The AELP business loan program will take a security interest in the adaptive equipment or assistive technology purchased. For real estate loans of $15,000 and greater, equipment loans of $10,000 and greater, and all vehicle loans, the security instrument will be filed or recorded as necessary to perfect the security interest. For all real estate loans that will require a mortgage as security, the AELP business loan program will first use the Tax Assessed Value. In some instances, an appraisal will be required.
3. Loan Restrictions. The AELP business loan portion of the program provides loans for the purchase of adaptive equipment or assistive technology devices and services. The business portion of AELP will not accept applications for the refinance of a purchase.
4. Loan Limit. The amount of the loan sought shall not, when added to the principal balance of any other outstanding or approved loans to or for the benefit of the same applicant/business, result in any one individual or entity becoming liable to the board as borrower or as guarantor for amount in excess of $100,000 in the aggregate.
5. Personal Guarantee. The program requires that all owners of the business applicant with an ownership percent of greater than 20% of the business are required to provide a personal guarantee. In the event of a default, they also will be personally liable for paying any remaining loan balance.
6. Capacity To Repay the Requested Loan. The criteria below seek to produce a reasonable expectation that the applicant(s) or business will repay the loan in full. The six most important criteria for an AELP business loan are credit history, cash flow, debt ratio, lien position, loan to value and management experience. A pattern of adverse credit actions that cannot be adequately explained and has not been adequately dealt with will result in a decision to deny a loan. The following criteria that will be examined in underwriting the loan application in conjunction with the “Risk Rating Matrix ” (Appendix 1) 1. Proof of Income. An applicant/business is required to provide proof of his/her/their current income. Acceptable documentation includes, but is not limited to, copies of IRS income tax returns, business income statements, business profit and loss statements, business cash flow statements. 2. Credit History. Experian credit reports, Experian Business Credit reports or Dun and Bradstreet Business credit reports will be used as the primary source of grading the applicant’s credit history. If there are co-applicant’s, the AELP business loan program will use the average of the combined credit scores. If the applicant(s)/ business have experienced any of the credit problems described below within the 12-month period preceding the application the applicant(s) must demonstrate resolution of the credit problem or the loan application will be denied.

Credit Problems within the past Twelve Months .

1. Delinquency with a Creditor. If the applicant(s)/ business have been delinquent with a creditor within the past 12 months, the applicants(s) must adequately explain the reason for the delinquency and provide satisfactory evidence that the delinquency has been cured. If any of the following items are on the credit report and designated as “not paid” applicant is required to provide evidence of full payment or an established payment arrangement: tax liens, civil judgments, levies or child support obligations (both payments and receipts). If any of these items are on the credit report and designated as paid applicant need not provide additional evidence of payment. If the applicant(s) indicate the child support payments are being paid, and there is nothing on the credit report or other available data to suggest otherwise, then the applicant need not provide additional proof.
2. Collection Accounts. Open collection accounts that are non- medical in nature will result in a decision to deny the loan unless the applicant(s) can provide evidence that the account has been successfully disputed or cleared.
3. Medical Collections. Medical collections if related to the applicant’s disability are excluded from the credit evaluation, but in all events the applicant(s) must still demonstrate a positive discretionary income described above including the outstanding medical conditions.
4. Educational Loans. Applicant (s) must provide evidence of payment arrangements or deferment, including when re- payment will begin; education loans are generally not forgiven or discharged in bankruptcy.
5. Mortgages. If mortgage loans are being modified, evidence from the lender must be provided. Mortgage foreclosures are subject to review for 7 years prior to the application date.
6. Ability to Repay. After a careful examination of these credit issues, the applicant must demonstrate capacity and credit worthiness to repay the requested loan in full. Applicant(s)/business lacking acceptable credit may apply/reapply with a qualified co-applicant or may apply for a loan at a later time should his/her fiscal circumstances change.

Cash Flow. The calculation of cash flow will use the required proof of all income and debts for both the business and business owner(s) if applicable. Up to a year of the most recent bank statements ma be required to show all recurring debts.

Additionally, up to the three years’ worth of the business’s Balance Sheets is required. The calculation used for this is EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) divided by total debt service. This is typically determined by net income, depreciation (including section 179) amortization and interest divided by the total debt service (payment requirements) for business, including existing and new financing requests. The calculation does not include taxes, but this information would flow through the personal tax returns and is usually minimal. The relationship between the operating cash flow of the applicant/business and its total liabilities will be assessed. This information is used to determine the ability to repay. After a careful examination of the cash flow, the applicant(s) must demonstrate the capacity and cash flow to repay the requested loan in full.

Debt Ratio . AELP business loans require documented proof of all income and debts for both the business and business owner(s) if applicable. Up to a year of the most recent bank statements may be required to show all recurring debts. The debt service coverage will be calculated for all applicants involved. This includes all owners that are required to give a personal guarantee. The combined debt ratio will be considered when grading on the companion worksheet.

Lien Position . The applicant’s offered lien position on the asset/s being offered as collateral will be considered and the score on the matrix will be based on lien position.

Loan to Value . The loan value ratio is used to compare the requested loan amount in relation to the value of the property securing the loan.

Management Experience . Management experience is weighed by amount of “relevant experience” the applicant(s)/business has running a business. Any history of business closure by the applicant(s) will be considered.

Credit Reports. The AELP Business Loan Program will conduct its own credit checks on all applicants by using credit reporting agency, Microbilt.

Section 5. ADDITIONAL LOAN PROCEDURES

Joint Check Issuance. AELP business loans require that loans are payable to the borrower and the dealership/seller/contractor unless the vendor does not accept a two-party check, in which case the check will be made payable to the seller.

Loan Closing. Borrowers are required to pay closing costs to allow for timely and thorough legal review of all loan documents. Once approved for a loan, the applicant must close the loan with the participating lender within ninety (90) calendar days of the date of approval. Applicants who have not closed their loans within the ninety-day period will need to submit updated information or may have to reapply.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §§ 371-377
• EFFECTIVE DATE: July 26, 2023 – filing 2023-110
• EFFECTIVE DATE: Appendix 1 - Business Loan Matrix
• EFFECTIVE DATE: Risk Rating
• EFFECTIVE DATE: 1Superior2Desirable3Acceptable4Marginal5Substandard6Doubtful7LossCredit History-(suggested range)Clear- (750+)3 Derog max0>30 days(700-749)5 Derog max1>60 days(650-699)5 Derog max1>60 days(575-649)Some >90 days- (500-574)Many >90 days- (450-499)Bankruptcy/Charge offs (Below 450)Cash Flow2 years +1.3:11 year +1.15-1.25:11 year +1.1-1.15:10.8-1.1:10.6-0.79:10.5-0.6:1Insufficient or Pro FormaDebt Ratio38% max40% max45% max48% maxOver 48%Over 50%Over 55% or Pro FormaLien Position1st2ndUnsecured or>LTVLTV<70%<80%<90%<95%96%-100%100 -101%101 - 105%Management Exp6 years +5 years +4 years +3 years +2 years +1 years +> 1 year experience
• EFFECTIVE DATE: Risk Factor Credit HistoryARank (1-7)BWeight 25%AxB Total 0Score of 1 - 3.99 = ApprovalScore of ≥ 4.00 = DenialCash Flow40%0Debt Ratio5%0Lien Position5%0LTV10%0Score of 1 -1.99 = Prime -1Management Exp.15%0Score of 2-2.99 = PrimeTotal Score0100%0Score of 3-3.99 = Prime +1

94-270 Commission on Governmental Ethics and Election Practices

Chapter 1 Procedures

Code Me. R. 94-270 Ch. 1 Procedures {#sec-94-270-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-270 Ch. 1}

SUMMARY: This Chapter describes the nature and operation of the Commission, and establishes procedures by which the Commission’s actions will be governed.

SECTION 1. DEFINITIONS

In addition to the definitions provided in Title 21-A, chapters 1, 13, and 14, the following definitions shall apply to the rules of the Commission, unless the context otherwise requires:

1. Act. “Act” means the Maine Clean Election Act , Title 21-A, chapter 14.

2. Association. “Association” means a group of two or more persons, who are not all members of the same immediate family, acting in concert.

3. Campaign Deficit. "Campaign deficit" means debts, liabilities, and unmet financial obligations from all previous campaigns as reported to the Commission on campaign termination report forms required by 21-A M.R.S. § 1017(9).

4. Campaign Surplus. "Campaign surplus" means money, equipment, property and other items of value remaining after retiring previous campaign deficit as reported to the Commission on campaign termination report forms required by 21-A M.R.S. § 1017(9).

5. Candidate. “Candidate” has the same meaning as in 21-A M.R.S. § 1(5) and includes individuals running for office as a write-in candidate.

INFORMATIONAL NOTE: All contributions made after the day of the general election to a candidate who has liquidated all debts and liabilities associated with that election are deemed to be made in support of the candidate's candidacy for a subsequent election, pursuant to section 4.2.A(5)(e) of this rule. A candidate who collects funds subsequent to an election for purposes other than retiring campaign debt is required to register with the Commission. 21-A M.R.S. § 1013-A.

6. Certified Candidate. “Certified candidate” has the same meaning as in 21-A M.R.S.

§ 1122(1).

7. Commission. “Commission” means the Commission on Governmental Ethics and Election Practices established by 5 M.R.S. § 12004-G(33), and 1 M.R.S. §§ 1001 et seq .

8. Contribution. “Contribution” has the same meaning as in 21-A M.R.S. § 1012(2).

9. Election. “Election” means any primary, general or special election for Governor, State Senator or State Representative. The period of a primary election begins on the day a person becomes a candidate as defined in 21-A M.R.S. § 1(5) and ends on the date of the primary election. The period of a general election begins on the day following the previous primary election and ends on the date of the general election. The period of a special election begins on the date of proclamation of the special election and ends on the date of the special election.

10. Expenditure. “Expenditure” has the same meaning as in 21-A M.R.S. § 1012(3).

11. Fund. “Fund” means the Maine Clean Election Fund established by 21-A M.R.S.

§ 1124.

11-A. Influence.“Influence” means to promote, support, oppose or defeat.

12. In-Kind Contribution. “In-kind contribution” means any gift, subscription, loan, advance or deposit of anything of value other than money made for the purpose of influencing the nomination or election of any person to political office or for the initiation, support or defeat of a ballot question.

13. Member. A “member” of a membership organization includes all persons who currently satisfy the requirements for membership in the membership organization, have affirmatively accepted the membership organization’s invitation to become a member, and either:

A. pay membership dues at least annually, of a specific amount predetermined by the membership organization; or

B. have some other significant financial attachment to the membership organization, such as significant investment or ownership stake in the organization; or

C. have a significant organizational attachment to the membership organization that includes direct participatory rights in the governance of the organization, such as the right to vote on the organization’s board, budget, or policies.

Members of a local union are considered to be members of any national or international union of which the local union is a part, of any federation with which the local, national, or international union is affiliated, and of any other unions which are members or affiliates of the federation. Other persons who have an enduring financial or organizational attachment to the membership organization are also members, including retired members or persons who pay reduced dues or other fees regularly to the membership organization.

14. Nonparticipating Candidate. “Nonparticipating candidate" has the same meaning as in 21-A M.R.S. § 1122(5).

15. Participating Candidate. “Participating candidate” has the same meaning as in 21-A M.R.S. § 1122(6).

15-A. Public Communication. “Public communication” has the same meaning as in 21-A M.R.S. § 1001(4).

16. Qualifying Contribution. “Qualifying Contribution” has the same meaning as in 21-A M.R.S. § 1122(7).

17. Qualifying Period. “Qualifying period” has the same meaning as 21-A M.R.S.

§ 1122(8), except that for special elections, vacancies, withdrawals, deaths, disqualifications or replacements of candidates, the qualifying period shall be the period specified under 21-A M.R.S. § 1125(11-A) and Chapter 3, § 9(2) of these rules.

18. Seed Money Contribution. “Seed money contribution” has the same meaning as in 21-A M.R.S. § 1122(9).

19. Write-In Candidate. “Write-in candidate” means a person whose name does not appear on the ballot under the office designation to which a voter may wish to elect the candidate and who has filed a declaration to be a write-in candidate pursuant to 21-A M.R.S. § 722-A.

SECTION 2. ORGANIZATION

1. Commission. The Commission on Governmental Ethics and Election Practices is an independent agency of the State, consisting of five (5) members appointed by the Governor, subject to review by the joint standing committee of the Legislature having jurisdiction over legal affairs and confirmation by the Legislature in accordance with 1 M.R.S. § 1002(1). The Commission members will elect one member to serve as Chair. Except for the Chair, the members of the Commission have no individual authority.

2. Office

A. The Commission employs such staff as may be authorized by the Legislature. A Director supervises the staff and is responsible for all day-to-day operations. In the interim between Commission meetings, the Director reports to the Chair, who acts on behalf of the Commission on certain administrative matters. The Commission’s offices are located at 45 Memorial Circle in Augusta, where any filing or written submission may be made between the hours of 8 a.m. and 5 p.m. on any day when state government offices are open, except that filings by facsimile or electronic means, where otherwise permitted by statute or rule, may be transmitted at any time. The office has a mailing address of 135 State House Station, Augusta, Maine 04333.

B. All records of the Commission are maintained in these offices, where they are available for inspection or copying, except as particular records are made confidential by law. The cost of copying Commission documents is set by the Director of the Commission, subject to reasonable limitations and approval of the Commission.

C. During any period when the position of Director is vacant, the Chair of the Commission will appoint an acting Director.

SECTION 3. MEETINGS

1. Regular Meetings. The Commission shall meet at least once each month in any year in which primary and general elections are held. The Commission’s Director shall circulate proposed meeting dates to the Commission for its approval.

2. Special Meetings. The Commission may meet at any time at the call of the Secretary of State, the President of the Senate, the Speaker of the House of Representatives, the Chair of the Commission, or a majority of its members. Each member of the Commission must have at least 24 hours notice of the time, place and purpose of the meeting in writing unless written notice is not possible. In such case, notice must be given by the staff by phone, fax, e-mail or other means available. Each Commissioner may notify the staff of his or her preference for notifications.

3. Agenda. The Director will prepare a written agenda for each meeting of the Commission. The agenda will contain items of business to be considered, staff findings and recommendations, and will include the date, time and location of the meeting. The agenda must be mailed to each Commissioner at least 7 days before the meeting unless a different schedule is approved by the Chair who shall provide notice to the Commissioners of the change and the reasons therefore.

4. Notice. In addition to the public notice required by the public meetings law, 1 M.R.S.

§ 406, notice of Commission meetings shall be given to those directly involved in a matter pending before the Commission, as follows:

A. Legislative Ethics. When a properly filed request or referral is made for an advisory opinion on a question of legislative ethics, notice that the matter has been placed on the agenda for a Commission meeting will be given by mail to the Legislator whose circumstances or conduct is at issue, or to the Presiding Officer of either House referring the inquiry. When a complaint alleging a violation of the laws on legislative ethics is filed, the Legislator will be informed promptly of the nature of the allegations and the existence of any investigation by the Commission. Notice that the matter has been placed on the agenda for a Commission hearing will be given by regular and electronic mail to both the Legislator and the complainant not less than 10 days before the date set for a hearing.

B. Campaign Reports and Finances Law; Lobbyist Disclosure Law. Notice of the Commission's consideration of any noncompliance with the requirements of the Campaign Reports and Finances Law , the Maine Clean Election Act , or Lobbyist Disclosure Law will be provided to any person or organization alleged to have committed a violation and to any person who has officially requested a Commission investigation or determination, except that notice of the Commission’s consideration of issuing subpoenas to conduct an investigation need not be given.

C. Contents of Notice

(1) The notice will include the date, time, and location of the Commission meeting. If mail notice of a meeting is not feasible, the staff will make best efforts to give oral notice to Commission members or to those entitled to notice under this provision.

5. Public Meetings. All meetings, hearings or sessions of the Commission will be open to the general public unless, by an affirmative vote of at least 3 members, the Commission requires the exclusion of the public, pursuant to 1 M.R.S. §§ 1005 or 1013(3).

6. Quorum. Every decision of the Commission must be made at a meeting at which at least 3 members of the Commission participate and vote. When it is impossible or impractical for a member of the Commission to travel to Augusta to attend a meeting in person, the member may participate remotely consistent with the Commission’s policy on remote participation. Members who participate remotely will be considered part of the quorum.

7. Minutes

A. The Director will prepare minutes of each business meeting of the Commission. These minutes will be the official record of Commission meetings, and will accurately record all matters considered.

B. The minutes will record any executive session of the Commission and its subject matter, but will not report the proceedings of the executive session. Likewise, minutes will not be taken of any public hearing held by the Commission, since hearings are separately recorded.

SECTION 4. INITIATION OF PROCEEDINGS

1. Legislative Ethics. The Commission is authorized to investigate and make advisory recommendations to either House of the Maine Legislature concerning legislative conflicts of interest or any breach of the legislative ethics set forth in 1 M.R.S. §§ 1001- 1023. The Commission's opinion may be sought by three methods, or the Commission may act on its own motion.

A. Legislator's Own Conduct

(1) A Legislator seeking an advisory opinion with respect to his or her own circumstances or conduct should make a written request for an opinion, setting forth the pertinent facts with respect to the legislative matter at issue and the circumstances of the Legislator giving rise to the inquiry.

(2) The request will be officially filed only when received at the offices of the Commission. The Director will promptly send a copy of the request to the Chair, and the matter will be placed on the agenda for the next Commission meeting, or if necessary, at a special meeting.

(3) An oral request by a Legislator for an opinion with respect to his or her own circumstances will not be considered an official request for an advisory opinion, and a Legislator making such a request will be so notified, by letter, and encouraged to file a written request.

(4) The Director may, in his or her discretion, provide advice on legislative ethics issues to a Legislator through more informal means, such as electronic mail, telephone, or letter.

B. Complaints. Any written complaint will be included in the agenda of the next Commission meeting.

(1) Complaint by a Legislator. Copies of any sworn complaint filed by a Legislator will promptly be sent to the Legislator against whom the complaint has been lodged. A complaint invokes the Commission's authority only if made under oath and only if it addresses an alleged conflict of interest relating to circumstances arising during the term of the legislature then in office.

(2) Other Complaints

(a) The Director will review each complaint to determine whether the matter relates to the Commission's statutory mandate. When a complaint is filed, the Director, in consultation with Commission Counsel, will review the matter to determine whether the complaint has sufficient merit to warrant recommending the calling of a meeting. When a meeting is called, the Commission will determine in executive session whether to hear the complaint. If the nature of the complaint clearly does not fall within the scope of the Commission's jurisdiction, the Director will so notify the complainant by letter within 14 days of receiving the complaint. In such cases, the respondent need not be notified. The Commission may reverse any administrative decision.

(b) An oral complaint by any person alleging a conflict of interest concerning any legislator does not constitute a complaint under 1 M.R.S. § 1013(2)(B), and a person registering such a complaint will be so notified, by letter.

C. Referral by Presiding Officer. When a Legislator has requested an advisory opinion from the Presiding Officer of the House of which he/she is a member, and the Presiding Officer has referred the inquiry directly to the Commission, the Director will arrange a meeting of the Commission as soon as possible to consider the question.

2. Election Campaign Reporting and Maine Clean Election Act Violations

A. Compliance Review. The Commission staff will review all campaign finance reports filed by candidates pursuant to 21-A M.R.S., chapters 13 and 14 to verify compliance with the financial disclosure and documentation requirements set by statute or rule. The staff will review a selection of other campaign finance reports filed by non-candidate committees with the Commission for compliance with legal requirements. Notice of any omission, error, or violation will be given to the filer by electronic mail or U.S. Mail. The Commission staff will establish a reasonable time period for the filer to remedy any omission or error. The Commission staff shall schedule any substantial violations for possible action by the Commissioners at a public meeting. If the filer fails to remedy minor violations, the Commission staff will use its discretion whether to take any further action. Minor violations include, but are not limited to, failing to report the employment information for a contributor or misusing an expenditure code to describe the purpose of an expenditure.

B. Late Reports and Registrations. Where required by statute, notice of failure to file a required report will be timely sent by Commission staff. When a report or registration is filed late, the Director's recommendations will be based on the following considerations:

(1) Lateness of report or registration,

(2) Reason for lateness,

(3) Kind of report (more stringent application for pre-election reports),

(4) Amount of campaign funds not properly reported,

(5) Previous record of the filer; and

(6) Good faith effort of the filer to remedy the matter.

C. Any person (as defined in 21-A M.R.S. § 1001(3)) may make an official complaint or request for a Commission investigation by filing a signed written request at the Commission's office, setting forth such facts with sufficient details as are necessary to specify the alleged violation. A copy of the signed request may be filed by facsimile or by electronic mail. Statements should be made upon personal knowledge. Statements which are not based upon personal knowledge must identify the source of the information which is the basis for the request, so that respondents and Commission staff may adequately respond to the request. A copy of any such written request will be promptly transmitted to the candidate or organization alleged to have violated the statutory requirements. The Director may conduct preliminary fact finding to prepare a matter for presentation to the Commission. The Director, in consultation with Counsel, will prepare a summary of staff findings and recommendations for inclusion on the agenda.

D. An oral report of a violation, or a written request containing insufficient detail to specify the violation charged, does not constitute an official request for a Commission determination, and a person registering such a complaint will be so notified.

E. The signature of a person authorized to sign a report or form constitutes certification by that person of the completeness and accuracy of the information reported. The use of a password in filing an electronic report constitutes certification of the completeness and accuracy of the report.

3. Lobbyist Disclosure Procedures

A. Compliance Review. The Commission staff will review lobbyist registrations and monthly reports for compliance with disclosure requirements. The Commission staff will establish a reasonable time period by which a lobbyist must remedy any apparent omission or error. The Commission staff shall place on the agenda of a Commission meeting any substantial violation of the disclosure requirements, regardless of whether the lobbyist has remedied the violation.

B. Late Registrations and Reports. Notice will be given by mail to any lobbyist whose registration or monthly disclosure report is late. The Commission and its staff shall follow the notice and penalty procedures set out in 3 M.R.S. § 319(1). For purposes of 3 M.R.S. § 319(1), the month will end on the 15th day of the month following the month in which a report was due. Any failure to submit a required report, registration, or penalty fee will be noted on the Commission agenda.

C. Suspensions. The Commission may suspend any person from lobbying who fails to file a required report or pay an assessed fee. A notice of the suspension must be mailed to the lobbyist by U.S. Certified Mail within three days following the suspension. Reinstatement will occur on the date the required report or payment is received in the Commission office. A notice of the reinstatement must be mailed to the lobbyist by U.S. Certified Mail or given directly to the lobbyist within three days following receipt of the required report or payment.

D. Request for Penalty Waiver. A lobbyist may request a waiver of any late penalty the lobbyist incurs. The request must be made in writing to the Commission and must state the reason for the delinquency. Any such request must be noted on the agenda of the next Commission meeting. Only the Commission may grant penalty waivers.

E. Request for Waiver of Non-session Reporting Requirement. A lobbyist may request a waiver of the monthly non-session reporting requirement set forth in 3 M.R.S. § 317(4) if the lobbyist does not expect to be engaged in lobbying when the Legislature is not in session. The Director is authorized to provisionally grant such waivers pending approval by the Commission. Provisional waivers may be granted only where a request is properly filed, the statement properly completed, and where there is no apparent reason to doubt the statement is true. During the period in which the waiver is effective, reports will not be required. If lobbying is resumed during the period for which the waiver was granted, the lobbyist must file a monthly disclosure report for the month or months lobbying was conducted.

F. Faxing Duly Executed Lobbyist Registration, Reports. Any registration or report required by 3 M.R.S. chapter 15 may be provisionally filed by transmission of a facsimile copy of the duly executed report to the Commission, provided that the original of the same report is received by the Commission within 5 calendar days thereafter.

4. Matters Outside the Commission’s Jurisdiction. If the Director and Counsel are in agreement that the subject matter of a request for an investigation is clearly outside the jurisdiction of the Commission, the staff may forward the request to the appropriate authority or return it to the person who made the request, provided that the staff notifies the Commission members of the action at the next Commission meeting.

SECTION 5. FACT FINDING AND INVESTIGATIONS

1. Before Commission Meeting. With respect to any inquiry, complaint, or request for Commission action properly filed in accordance with the preceding section, or any potential violation that comes to the attention of Commission staff through an audit or review of reports, the Director may conduct such preliminary investigation as is deemed prudent and desirable. If the preliminary investigation suggests that a complaint is without factual basis, the Director may inquire with the person filing the complaint whether he wishes to withdraw the request for further investigation. When a matter is ready for presentation to the Commission, the Director, in consultation with Counsel, will prepare a summary of findings and recommendations for inclusion on the agenda.

2. By the Commission. Once any matter is reached on the agenda of a Commission meeting, the Commission will control any further investigation or proceedings. No hearings will be held except by direction of the Commission. On a case-by-case basis, the Commission may authorize its Chair, Director, or any ad hoc committee of its members, to conduct further investigative proceedings on behalf of the Commission between Commission meetings. Any authorization so conferred will be fully reflected in the minutes of the Commission meeting. Consultations between the Commission and its Counsel concerning an investigation (including the issuance of subpoenas) where premature public knowledge of the investigation would place the Commission or another investigatory office at a substantial disadvantage may be held in executive session pursuant to 1 M.R.S. §§ 405(6)(E), 1005, & 1013(3-A).

3. Use of Commission’s Subpoena Power. The Chair is authorized to issue subpoenas in the name of the Commission to compel the attendance of witnesses or the production of records, documents or other evidence when the Chair and the Commission's Counsel are in agreement that the testimony or evidence sought by the subpoena is necessary to disposition of the matter; and to issue any subpoena in the name of the Commission on behalf of any person having a statutory right to an agency subpoena. Any oral testimony compelled by a subpoena issued by this provision will be presented to the Commission or its staff.

4. Hearings. The Commission may hold a hearing to receive testimony under oath. Any hearing must be conducted in accordance with the Maine Administrative Procedure Act , 5 M.R.S. §§ 8001 et seq. , and Chapter 2 of the Commission’s Rules.

SECTION 6. CONTRIBUTIONS AND OTHER RECEIPTS

1. The date of a contribution is the date it is received by a candidate, an agent of the candidate, a candidate’s committee, a party committee and its agents, or a political action committee and its agents.

2. A loan is a contribution at the time it is made unless the loan was made by a financial institution in the State of Maine in the ordinary course of business. Loans continue to be contributions until they are repaid. Loans are subject to the candidate contribution limitations, except for loans made by the candidate, the candidate’s spouse, or a financial institution in the State of Maine in the ordinary course of business. The Commission may consider any reported loan to be a cash contribution if it remains unpaid four years after the election in which it was incurred.

3. Candidates and political action committees must report the name, address, occupation and employer of each individual contributor who gives, in the aggregate, more than $50 for the reporting period. The reporting is required for private contributions raised by privately financed candidates and for seed money contributions to candidates participating in the Maine Clean Election Act . Candidates, political action committees, ballot question committees, and party committees must make a reasonable effort to obtain the employment information of the contributor when required by statute. The reasonable effort must include requesting the employment information and providing a convenient means for the donor to provide the information, such as a paper form to be submitted with a contribution or text fields to enter the information on an online fundraising screen. If a candidate or committee is unable to obtain the information from the contributor in response to a candidate’s or committee’s request, the candidate or committee shall indicate “information requested” in the occupation and employer sections of the campaign finance report. If the Commission staff believes that due to the amount of missing information further inquiry is warranted, the Commission staff shall verify whether the candidate or committee has made a reasonable effort to obtain the information.

4. Unless specifically exempted under 21-A M.R.S. §§ 1012 & 1052 or this section, the provision of any goods or services without charge or at a charge that is less than the usual and customary charge for such goods or services is an in-kind contribution. Examples of such goods and services include, but are not limited to: equipment, facilities, supplies, personnel, advertising, and campaign literature. If goods or services are provided at less than the usual and customary charge, the amount of the in-kind contribution is the difference between the usual and customary charge and the amount charged the candidate or political committee.

A commercial vendor that has provided a discount to a candidate or political committee because of a defect in performance or other business reason has not made a contribution if the vendor grants substantially similar discounts to other customers in the ordinary course of the vendor’s business.

If a candidate is a public official who is provided a vehicle for transportation by a public entity for the purpose of conducting official duties, the use of such vehicle for campaign purposes is considered to be an in-kind contribution to the candidate from the public entity unless the candidate reimburses the public entity for the use of the vehicle.

5. An employer that has authorized an employee to provide services without charge to a candidate or political committee during the employee’s paid work-time has made an in-kind contribution to the candidate or political committee. No contribution has been made if the employee is providing services as a volunteer outside of the employee’s paid work-time.

6. A commercial vendor that has extended credit to a candidate or political committee has not made a contribution if the credit is extended in the ordinary course of the vendor’s business and the terms are substantially similar to extensions of credit made to nonpolitical customers that are of similar risk and size of obligation. The Commission shall presume any debt that remains unpaid more than six months after the election in which the debt was incurred to be a contribution to the candidate or political committee unless the candidate or committee provides clear and convincing evidence to the Commission that they intend to raise funds or take other measures to satisfy the debt. The Commission shall determine whether any debt that remains unpaid for more than four years after the election should be deemed a contribution to the candidate or committee. The Commission may take into consideration any evidence it believes is relevant, including evidence that the creditor did not intend to make a contribution to the candidate or committee or that the candidate or committee is unable to pay the debt.

7. For the purposes of the limitations imposed by 21-A M.R.S. § 1015, 21-A M.R.S.

§ 1018-B, and 21-A M.R.S. § 1056, the following guidelines shall apply:

A. All contributions received through the day of the primary election by candidates enrolled in a political party are deemed to be received for the primary election, unless the candidate designates the contribution for the general election on the applicable campaign finance report. If a candidate receives a contribution before the primary election and designates it for the general election, the candidate must deposit the contribution in an account that is separate from all funds received for the primary election and may not use the contribution in any way to promote the candidate’s nomination in the primary election.

A-1. For an election determined by ranked-choice voting, the day of the primary election is deemed to be the date on which the Secretary of State submits the tabulation of election results to the Governor, pursuant to 21-A M.R.S § 722.

A-2 Before a primary election, a candidate for state office who is not enrolled in a political party may designate a contribution as received for the primary or general election. The contribution will count toward the primary or general election limitation designated by the candidate.

B. If a candidate loses in the primary, all contributions made to that candidate for the purpose of liquidating debts and liabilities associated with the candidate's candidacy are deemed to be made in the primary election.

C. All contributions made to a general election candidate, regardless of party enrollment, from the day after the primary election through the date of the general election are deemed to be made for the general election.

D. All contributions made after the general election to a general election candidate for the purpose of reducing debts and liabilities associated with the candidate's candidacy are deemed to be made in the general election.

E. After the day of a candidate’s last election, all contributions made to a candidate who has liquidated all debts and liabilities associated with that election are deemed to be made in support of the candidate's candidacy for a subsequent election.

F. Subparagraphs A through E above shall apply to any write-in candidate who has qualified under 21-A M.R.S. § 723, or who has received contributions or made expenditures with the intent of qualifying as a candidate.

8. If a political committee that is required to file reports with the Commission sells an item to raise funds, the entire amount received is a contribution to the committee. If the political committee provides meals or entertainment at a fundraising event, the entire amount paid by the donor is a contribution to the committee. [FOR EXAMPLE: IF A SUPPORTER PAYS A CANDIDATE COMMITTEE $20 FOR A T-SHIRT THAT COST THE CAMPAIGN $5, THE SUPPORTER HAS MADE A $20 CONTRIB-UTION. IF A SUPPORTER PAYS $100 FOR A TICKET TO A FUNDRAISING DINNER, THE SUPPORTER HAS MADE A $100 CONTRIBUTION EVEN IF THE COMMITTEE PROVIDES A MEAL WORTH $30.]

9. If an expenditure is made to promote or support the nomination or election of a candidate, or to oppose or defeat the candidate’s opponent(s), and the expenditure is made in cooperation, consultation or concert with, or at the request or suggestion of, the candidate, the expenditure is considered to be a contribution from the spender to the candidate. As used within this subsection, the term “candidate” includes a committee authorized by the candidate to promote or support his or her election, and all agents of the candidate or the authorized committee.

A. In cooperation, consultation or in concert with includes, but is not limited to:

(1) discussion between the candidate and the creator, producer or distributor of a public communication, or the person paying for that public communication, regarding the content, timing, location, mode, intended audience, volume of distribution or frequency of placement of that public communication, and

(2 participation by the candidate in making any decision regarding the content, timing, location, mode, intended audience, volume of distribution, or frequency of placement of the public communication.

B. An expenditure is presumed to be made in cooperation, consultation or concert with, or at the request or suggestion of a candidate, when

(1) the expenditure is made in cooperation, consultation or in concert with any person who, during the twelve months preceding the expenditure, has been the candidate’s treasurer or an officer of the candidate’s authorized committee, has had a paid or unpaid position managing the candidate’s campaign, or has received any campaign-related compensation or reimbursement from the candidate; or

(2) when the candidate has directly shared the candidate’s campaign plans, activities, or needs with the spender for the purpose of facilitating a payment by the spender on a public communication to voters to promote or support the candidate.

The candidate or spender may rebut the presumption by submitting sufficient contrary evidence.

C. If a candidate requests that a party committee, political action committee, or other potential spender not make any expenditure to promote or support the candidate, or oppose or defeat the candidate’s opponent(s), the request does not constitute cooperation or coordination.

D. An expenditure will not be presumed to have been made in cooperation, consultation or concert with, or at the request or suggestion of a candidate, solely because:

(1) the spender has obtained a photograph, biography, position paper, press release, logo, or similar material about the candidate from a publicly available source;

(2) the person making the expenditure has previously provided advice to the candidate on suggested communication strategies, budgets, issues of public policy, or other campaign plans or activities;

(3) the person makes an expenditure in response to a general, non-specific request for support by a candidate, provided that there is no discussion, cooperation or consultation with the candidate prior to the expenditure relating to the details of the expenditure;

(4) the spender has also made a contribution to the candidate, or has discussed with the candidate his or her campaign plans or activities as part of the candidate’s solicitation for a donation;

(5) the expenditure is made by a for-profit or non-profit organization for invitations, announcements, food and beverages and similar costs associated with an event to which the candidate has been invited by the organization to make an appearance before the organization’s members, employees, shareholders and the families thereof; or

(6) the expenditure is made by an individual who spends $100 or less for costs associated with a sign that is lettered or printed individually by hand and that reproduces or replicates a candidate’s campaign-related design or graphic.

E. A paid public communication that disseminates, distributes, or republishes, in whole or in substantial part, a public communication designed, produced, paid for or distributed by the candidate is a contribution to the candidate regardless whether the candidate suggested or requested the expenditure for the public communication, or cooperated with or consulted on the expenditure.

10. Funds or services received solely for the purpose of conducting activities to determine whether an individual should become a candidate are not contributions if the individual does not become a candidate. Examples of such activities include, but are not limited to, conducting a poll, telephone calls, and travel. The individual shall keep records of all such funds or services received. If the individual becomes a candidate, the funds or services received are contributions and are subject to the reporting requirements of 21-A M.R.S. §1017. The amount and source of such funds or the value of services received must be disclosed in the first report filed by the candidate or the candidate’s authorized campaign committee, regardless of the date when the funds or services were received, in accordance with the Commission’s procedures for reporting contributions.

Funds or services used by an individual for activities indicating that he or she has decided to become a candidate for a particular office are contributions. Examples of such activities include, but are not limited to: using general public political advertising to publicize his or her intention to campaign for office; hiring staff or consultants for campaign activities; raising funds in excess of what could reasonably be expected to be used for exploratory activities; making or authorizing statements that refer to him or her as a candidate; or taking action to qualify for the ballot.

11. The statutory exception to the definition of “contribution” in 21-A M.R.S.

§ 1012 (2)(B)(2) applies when an individual provides real or personal property or pays for invitations, food or beverages as an incidental cost of providing voluntary personal services for a candidate-related activity. The costs of food and beverages are exempt only if they relate to the personal services provided by the volunteer (for example, assisting at a house party, or hosting an evening of envelope-stuffing by volunteers). The costs of invitations for a campaign event may not be shared and are exempt only if paid by a single volunteer providing the real property for the event.

12. A political action committee, ballot question committee or party committee registered with the Department of Public Safety pursuant to 17 M.R.S. § 1832 may hold one game night per calendar year to raise revenue through games of chance provided that they disclose the financial activity consistent with this rule.

A. The committee shall keep a written account of all participants in the game night who have paid, in the aggregate, an amount greater than the applicable contribution reporting threshold as an entry fee or to pay for chips, tokens, food, or other costs. The record shall contain the participant’s name and address, and the total amount paid. If the participant has purchased food, memorabilia, or other goods at the game night, the committee may deduct the value of the item(s) from the amount of the payment. The committee is not required to keep a record of participants whose payments are less than or equal to the contribution reporting threshold or payments made to a third-party vendor at the event, such as a food truck.

B. The contribution reporting threshold is $50 for political action committees and ballot question committees and $200 for the committees of political parties.

C. In the next regularly scheduled campaign finance report, the committee shall report the proceeds of the game night as contributions. The committee shall itemize contributions that exceed the contribution reporting threshold. Contributions that do not exceed the threshold may be reported as an unitemized lump sum. The committee shall report as in-kind contributions any goods or services received in support of the game night, such as items to be awarded as prizes, or the donation of food or an event space. Costs incurred by the committee in connection with the game night shall be reported as expenditures.

SECTION 7. EXPENDITURES

1. Expenditures by Consultants, Employees, and Other Agents of a Political Campaign

Each expenditure made on behalf of a candidate, political committee, or political action committee by any person, agency, firm, organization, etc., employed or retained for the purpose of organizing, directing, managing or assisting the candidate, the candidate's committee, or the political action committee must be reported separately by the candidate or committee as if made or incurred by the candidate or committee directly. The report must include the name of the third party vendor or payee to whom the expenditure was made, the date of the expenditure, and the purpose and amount of the expenditure. It is not sufficient to report only the total retainer or fee paid to the person, agency, firm, organization, etc., if that retainer or fee was used to pay third party vendors or payees for campaign-related goods and services.

If a candidate or committee has paid a media buyer, advertising consultant or similar contractor to purchase advertising time or for the production of television or radio advertising, the candidate or committee may disclose the advertising time and production costs in the aggregate, rather than itemizing each payment made by the contractor to a third party vendor or payee. Maine Clean Election Act candidates must obtain from their contractor(s) documentation of every payment of $50 or more made on their behalf by a contractor or subcontractor related to television or radio advertising.

2. Expenditures by Political Action Committees. In addition to the requirements set forth in 21-A M.R.S. § 1060(4), the reports must contain the purpose of each expenditure and the name of each payee and creditor.

3. Reporting Debts and Unpaid Obligations

The following events constitute expenditures, even if the payment for a good or service has not been made at the time of the event:

(1) The placement of an order for a good or service;

(2) The signing of a contract for a good or service;

(3) The acceptance of the delivery of a good or the performance of a service by a vendor; or

(4) A promise or an agreement (including an implied one) that a payment will be made in exchange for a good or service.

For reporting purposes, the expenditures listed in paragraph A are designated as debts or obligations prior to payment for the goods or services being made.

If a person required to file a campaign finance report has a debt or obligation which remains unpaid at the end of the report period, the person shall report the date, amount, vendor, and purpose of the debt or obligation. If the exact amount is not known, the person filing the report shall report an estimate of the amount (preferably obtained in a written statement from the vendor).

If a debt or obligation occurs in the same report period as a payment for that debt or obligation, the person filing the report will report only the payment, not the debt or obligation.

A candidate or committee is not required to report a payment for a good or service in a 24-Hour Report, if the candidate or committee reported a debt for that good or service in the last regularly scheduled campaign finance report.

4. Advance Purchases of Goods and Services for the General Election [Repealed]

5. All campaign-related payments made with the personal funds or credit card of the candidate or an individual authorized by the candidate must be reported as expenditures in the reporting period during which the payment to the vendor or payee is made. The candidate must report the name of the vendor or payee to whom the payment was made, the date of the expenditure, and the purpose and amount of the expenditure. When the expenditure is reported, the candidate should indicate the person who made the payment by entering “Paid by [name of candidate or supporter]” in the remarks section of the expenditure schedule. It is not sufficient to report only the name of the candidate or authorized individual to whom reimbursement was made and the total amount of the reimbursement.

6. Multiple expenditures for bank fees and for vehicle travel may be reported in an aggregate amount, provided that the candidate or committee identifies the time period of the expenditures in the remarks section of the report.

7. When a political action committee or party committee makes an expenditure for a public communication to voters for the purpose of influencing the election of a clearly identified candidate, the amount spent to influence that candidate’s election must be specified on the regularly filed campaign finance report of the committee, regardless whether the public communication expressly advocates for the election or defeat of the candidate. If a single expenditure influences the election of more than one candidate, the political action committee or party committee shall itemize the amount spent per candidate.

8. Payments made or obligations incurred solely for the purpose of conducting activities to determine whether an individual should become a candidate are not expenditures if the individual does not become a candidate. Examples of such activities include, but are not limited to, conducting a poll, telephone calls, and travel. The individual shall keep records of all such payments and obligations. If the individual becomes a candidate, the payments made or obligations incurred are expenditures and are subject to the reporting requirements of 21-A M.R.S. § 1017. Such expenditures must be disclosed in the first report filed by the candidate or the candidate’s authorized campaign committee, regardless of the date when the funds were expended, in accordance with the Commission’s procedures for reporting expenditures.

Payments made for activities indicating that an individual has decided to become a candidate for a particular office are expenditures. Examples of such activities include, but are not limited to: using general public political advertising to publicize his or her intention to campaign for office; hiring staff or consultants for campaign activities; raising funds in excess of what could reasonably be expected to be used for exploratory activities; making or authorizing statements that refer to him or her as a candidate; or taking action to qualify for the ballot.

9. Exception to Disclaimer Requirements for Certain Handbills, Campaign Signs, and Internet or E-Mail Public Communications

For purposes of applying the exclusions listed in 21-A M.R.S. § 1014(6)(A)-(C), the following terms have the following meanings:

“Cost” includes all payments or obligations incurred, and the value of all goods and services received, for the purpose of creating, designing, preparing or distributing the public communications.

“Internet or e-mail activities” means any public communication transmitted over the Internet, including but not limited to: sending or forwarding electronic messages; social networking; providing a hyperlink or other direct access to another person’s website; creating, maintaining or hosting a website or blog; placing material on another person’s website; and any other form of public communication distributed over the Internet.

“Acting independently of and without authorization by a candidate, candidate’s authorized campaign committee, party committee, political action committee or ballot question committee or an agent [thereof]” means acting without any suggestion, request, direct or indirect authorization or compensation or reimbursement from any such candidate, committee or agent.

10. Press Exemption . In order for the costs of preparing and disseminating a news story, commentary, or editorial to be exempt from the definitions of expenditure under the press exemptions in 21-A M.R.S. §§ 1012(3)(B)(1) & 1052(4)(B)(1), the following criteria must be met:

A. the names of the persons or entities who own, control and operate the broadcasting station or publication are identified within the publication or otherwise made known to the public; and

B. the broadcasting station or publication is not owned or controlled by any political party, political action committee or ballot question committee and is not owned or controlled by any candidate for state, county or municipal office whose candidacy, election campaign, or opponent is a subject of the news story, commentary or editorial, or by the authorized campaign committee of such a candidate, or by a member of such a candidate’s immediate family.

In addition to the above criteria, to qualify as a periodical publication, including one in electronic form on the Internet, or a newspaper or magazine, a publication (i) must have been disseminating news stories, commentaries or editorials on a variety of topics to the general public on a periodic basis for at least the previous twelve months, or (ii) must have a record of disseminating news stories, commentaries or editorials on a variety of topics to the general public or other objective indicators that the publication will continue to be published on a periodic basis beyond the election cycle during which the press exemption is claimed.

For purposes of this section, broadcasting station includes a cable television system.

11. Shared Expenditures by Candidates.When two or more candidates have jointly purchased a public communication to voters or another good or service, a candidate will not be considered to have received an in-kind contribution if the cost is allocated among the candidates in proportion to the benefit received by each candidate.

12. Disclosure statements in paid public communications. Disclosure statements required by 21-A M.R.S. § 1014 must meet the following placement, duration and content requirements, as applicable.

A. Placement must be clear and conspicuous. Disclosure statements must be clear and conspicuous. A statement is not clear and conspicuous if it is difficult to read or hear, or if its placement is easily overlooked.

B. Television communications. Disclosure statements in a public communication made through cable, satellite, or broadcast television must conform with those portions of federal regulations 47 CFR § 73.1212(a)(2)(ii) and 47 CFR § 76.1615(a) which regulate text size and duration of sponsorship information. Specifically

(1) the font size must be equal to or greater than four percent of the vertical picture height, and

(2) the text must appear for not less than four seconds.

C. Other visual communications. For public communications with a visual aspect other than television or video communications, the disclosure statement must appear in a font size that is 12-point or larger.

D. Disclosure of top three funders in independent expenditure communications. If an entity makes an independent expenditure in excess of $1,000 per candidate to influence a candidate’s election, the public communication is required to contain the entity’s top three funders under 21-A M.R.S. § 1014(2-B).

(1) If the public communication is funded by a political action committee that is a separate or segregated fund as defined in 21-A M.R.S.

§ 1052(5)(A)(1), but not a separate legal entity, the top three funders to be listed are the top three funders of the legal entity (corporation, membership organization, cooperative or labor or other organization) that established the fund.

(2) If the public communication is funded by a political action committee that is fully funded or controlled by another political action committee or legal entity, the top three funders to be listed are the top three funders of that entity that fully funds or controls the political action committee.

(3) For any other political action committee that does not fall within the parameters of paragraphs C or D, the top three funders are the contributors who have given the top three aggregate contributions, as defined in 21-A M.R.S. § 1052(3), during the time period specified in 21-A M.R.S. § 1014(2-B)(A).

(4) Public communications for which including the statement required by 21-A M.R.S. § 1014(2-B) would be impossible or impose an unusual hardship due to their format or medium are exempt from the requirements of that section.

SECTION 8. PROHIBITED COMMUNICATIONS

Commission members shall not discuss any specific case under investigation, or any case which may reasonably be expected to be the subject of investigation, as long as the matter is pending before the Commission. Members of the Commission may discuss its final determination regarding the matter with members of the press or other interested persons only after the appeal period has expired and no appeal is filed, or if an appeal is filed, only after the appellant has exhausted all administrative or judicial remedies.

SECTION 9. ACCELERATED REPORTING SCHEDULE [Repealed]

SECTION 10. REPORTS OF INDEPENDENT EXPENDITURES

1. General. Any person, party committee, political committee or political action committee that makes any independent expenditure in excess of $1,000 per candidate in an election must file a report with the Commission according to this section.

2. Definitions. For purposes of this section, the following phrases are defined as follows:

A. “Clearly identified,” with respect to a candidate, has the same meaning as in

21-A M.R.S. § 1012(1).

B. "Expressly advocate" means any public communication that

(1) uses phrases such as "vote for the Governor," "reelect your Representative," "support the Democratic nominee," "cast your ballot for the Republican challenger for Senate District 1," "Jones for House of Representatives," "Jean Smith in 2002," "vote Pro-Life" or "vote Pro-Choice" accompanied by a listing of clearly identified candidates described as Pro-Life or Pro-Choice, "vote against Old Woody," "defeat" accompanied by a picture of one or more candidate(s), "reject the incumbent," or public communications of campaign slogan(s) or individual word(s), which in context can have no other reasonable meaning than to urge the election or defeat of one or more clearly identified candidate(s), such as posters, bumper stickers, advertisements, etc. which say "Pick Berry," "Harris in 2000," "Murphy/Stevens" or "Canavan!"; or

(2) is susceptible of no reasonable interpretation other than as an appeal to vote for or against a clearly identified candidate.

C. "Independent expenditure" has the same meaning as in 21-A M.R.S. § 1019-B. Any expenditure made by any person in cooperation, consultation or concert with, or at the request or suggestion of, a candidate, a candidate's political committee or their agents is considered to be a contribution to that candidate and is not an independent expenditure.

3. Reporting Schedules. Independent expenditures in excess of $1,000 per candidate per election made by any person, party committee, political committee or political action committee must be reported to the Commission in accordance with the following schedule:

A. [Repealed]

B. [Repealed]

(1) 60-Day Pre-Election Report. A report must be filed by 11:59 p.m. on the 60th day before the election is held and be complete as of the 61st day before the election.

(2) Two-Day Report. From the 60^th day through the 14^th day before an election, a report must be filed within two calendar days of the expenditure.

(3) One-Day Report. After the 14^th day before an election, a report must be filed within one calendar day of the expenditure.

For purposes of the filing deadlines in this paragraph, if the expenditure relates to a legislative or gubernatorial election and the filing deadline occurs on a weekend, holiday, or state government shutdown day, the report must be filed on the deadline. If the expenditure relates to a county or municipal election, the report may be filed on the next regular business day.

C. Reports must contain information as required by 21-A M.R.S. §§ 1016-

1017-A, and must clearly identify the candidate and indicate whether the expenditure was made in support of or in opposition to the candidate.

D. A separate 24-Hour Report is not required for expenditures reported in an independent expenditure report.

4. Multi-Candidate Expenditures. When a person or organization is required to report an independent expenditure for a public communication that supports multiple candidates, the cost should be allocated among the candidates in rough proportion to the benefit received by each candidate.

A. The allocation should be in rough proportion to the number of voters who will receive the communication and who are in electoral districts of candidates named or depicted in the public communication. If the approximate number of voters in each district who will receive the public communication cannot be determined, the cost may be divided evenly among the districts in which voters are likely to receive the communication.

[NOTE: FOR EXAMPLE, IF CAMPAIGN LITERATURE NAMING SENATE CANDIDATE X AND HOUSE CANDIDATES Y AND Z ARE MAILED TO 10,000 VOTERS IN X’S DISTRICT AND 4,000 OF THOSE VOTERS RESIDE IN Y’S DISTRICT AND 6,000 OF THOSE VOTERS LIVE IN Z’S DISTRICT, THE ALLOCATION OF THE EXPENDITURE SHOULD BE REPORTED AS: 50% FOR X, 20% FOR Y, and 30% FOR Z.]

B. If multiple county or legislative candidates are named or depicted in a public communication, but voters in some of the candidates’ electoral districts will not receive the public communication, those candidates should not be included in the allocation.

[Note: For example, if an expenditure on a legislative scorecard that names 150 Legislators is distributed to voters within a town in which only one Legislator is seeking re-election, 100% of the cost should be allocated to that Legislator’s race.]

5. Requests for an Independent Expenditure Determination. Under 21-A M.R.S.

§ 1019-B(1)(B), an expenditure made to design, produce or disseminate a public communication that names or depicts a clearly identified candidate and that is disseminated during the 28 days before a primary election, the 35 days before a special election or from Labor Day to the general election is an independent expenditure, unless the person making the expenditure demonstrates to the Commission that the expenditure did not have a purpose or effect of influencing the nomination, election or defeat of the candidate.

A. The following types of public communications may be covered by 21-A M.R.S. § 1019-B(1)(B):

(1) Advertisements in newspapers and other print media;

(2) Broadcast, cable, or satellite advertisements;

(3) Direct mail, handbills, and other printed literature;

(4) Prerecorded automated telephone messages;

(5) Communications placed or promoted for a fee on another person's website, digital device, application or advertising platform in order to increase the circulation, prominence or availability of the communication on that website, digital device, application or advertising platform; and

(6) Other types of general public political advertising.

B. The following types of public communications and activities are not covered by 21-A M.R.S. § 1019-B(1)(B):

(1) news stories and editorials, unless the facilities distributing the public communication are owned or controlled by the candidate, the candidate’s immediate family, or a political committee;

(2) activity or public communications designed to encourage individuals to register to vote or to vote if that activity or communication does not name or depict a clearly identified candidate;

(3) any public communication from a membership organization to its members or from a corporation to its stockholders if the organization or corporation is not organized primarily for the purpose of influencing the nomination or election of any person for state or county office;

(4) the use of offices, telephones, computers, or similar equipment when that use does not result in additional cost to the provider; and

(5) other public communications and activities that are excluded from the legal definition of “expenditure” in the Election Law.

C. If an expenditure is covered by 21-A M.R.S. § 1019-B(1)(B) and is greater than $1,000 per candidate per election, the person making the expenditure must file an independent expenditure report or request a determination by the Commission that the cost of the public communication is not an independent expenditure. The person may make the request by submitting a signed written statement that the expenditure did not have a purpose of, and will not have an effect of, influencing the nomination, election or defeat of a candidate. The filing of independent expenditure reports should be made in accordance with the filing schedule in subsection 3(B) of this rule. Any independent expenditure of $1,000 or less per candidate per election does not require the filing of an independent expenditure report or a rebuttal statement.

D. If a committee or association distributes copies of printed literature to its affiliates or members, and the affiliates or members distribute the literature directly to voters, the applicable date of dissemination for purposes of 21-A M.R.S.

§ 1019-B(1)(B) is the date on which the public communication is disseminated directly to voters, rather than the date on which the committee or association distributes the literature to its affiliates or members.

E. For the purposes of determining whether a public communication is covered by 21-A M.R.S. § 1019-B(1)(B), the date of dissemination is the date of the postmark, hand-delivery, or broadcast of the communication.

F. An organization that has been supplied printed public communications covered by 21-A M.R.S. 1019-B(1)(B) and that distributes them to voters must report both its own distribution costs and the value of the materials it has distributed, unless the organization supplying the public communications has already reported the costs of the materials to the Commission. If the actual costs of the public communications cannot be determined, the organization distributing the public communication to voters must report the estimated fair market value.

G. Persons requesting a determination that no independent expenditure report is required are encouraged to submit their requests early, if possible before making the expenditure for the public communication. The request must include the complete public communication and be specific as to when and to whom the public communication will be disseminated.

H. The Commission’s Director shall make an initial determination by a preponderance of the evidence whether the cost was incurred with a purpose of, or had the effect of, influencing the nomination, election or defeat of a candidate in accordance with 21-A M.R.S. § 1019-B(2). Any person may appeal the Director’s determination to the Commission within two days of their receipt of the determination or the posting of the determination to the Commission’s website, whichever is earlier.

I. If the Director or Commission determines that an independent expenditure report was required and the report is not filed by the deadline in subsection 3(B), the late-filing penalty in 21-A M.R.S. § 1020-A shall apply. The late filer may pay the penalty or request a waiver. In the alternative, the Director or Commission may, for good cause, extend the deadline to file the report for a short period after the determination sufficient for the person to file the report without delay. If the report is filed within the extension period, the report will be considered on time.

SECTION 11. REPORTS OF BALLOT QUESTION CAMPAIGN ACTIVITY BY PERSONS AND ORGANIZATIONS OTHER THAN POLITICAL ACTION COMMITTEES

[Repealed]

SECTION 12. PROHIBITED CONTRIBUTIONS BY LOBBYISTS AND AFFILIATED CONTRIBUTORS

1. Definitions. For purposes of this section, unless the context otherwise requires:

A. “Political committee” includes a party committee (state or county, district, or municipal), a political action committee as defined in 21-A M.R.S. § 1052(5), or a ballot question committee as defined in

21-A M.R.S. § 1052(2-A), unless the context suggests otherwise.

B. “Covered Official” means the Governor, a Legislator, a constitutional officer (Attorney General, Secretary of State, State Treasurer) and the staff or agent of any of these officials.

2. Covered Contributions. The prohibitions in 1 M.R.S. § 1015-A apply to both traditional campaign contributions and seed money contributions received by candidates seeking to qualify for Maine Clean Election Act funding.

3. Political Committees Led by Officials. During a legislative session, lobbyists, lobbyist associates, their clients and their lobbying firms may not give, offer or promise a contribution to a political committee of which a covered official is a treasurer, officer, or primary fund-raiser or decision maker, except as permitted by the exceptions in 1 M.R.S. § 1015-A(2)(D). During the session, these political committees may not solicit or accept a contribution from lobbyists, lobbyist associates, their clients or their lobbying firms, but they may accept contributions from other individuals and organizations. The prohibitions in 1 M.R.S. § 1015-A do not apply to political committees when the Legislature is not in session.

4. Client’s Political Action Committee. During a legislative session, a client of a registered lobbyist may not make a contribution to a covered official through a political action committee with which the client is affiliated or direct that the affiliated political action committee make a contribution to a covered official.

SECTION 13. REPORTS OF PUBLIC COMMUNICATIONS BY MEMBERSHIP ORGANIZATIONS OR CORPORATIONS

When a membership organization or corporation is required under 21-A M.R.S. § 1019-A to file a report of a public communication to members or shareholders, the organization or corporation must file the following reports by 11:59 p.m. on the following deadlines:

1. A report must be filed on the 42nd day before the election is held and be complete as of the 49th day before the election.

2. A report must be filed on the 11th day before the election is held and be complete as of the 14th day before the election.

3. A report must be filed on the 42nd day after the election is held and be complete as of the 35th day after the election.

SECTION 14. STATEMENT OF SOURCES OF INCOME

Legislators and executive employees are required to file with the Commission annual statements identifying the sources of income received, positions held, and certain liabilities under 1 M.R.S.

§ 1016-G and 5 M.R.S. § 19, respectively. The Commission staff shall prepare written and online forms for purposes of reporting. For the disclosure of gifts received by officials, the Commission may require an official to enter a category for the gift, such as transportation or conference fees, or a description of the gift. The Commission may require officials to enter a type of organization in which the official holds a position, such as non-profit, corporation or partnership. For purposes of this reporting, if a Legislator or executive employee is estranged from a spouse or domestic partner, the definition of “immediate family” does not include the estranged spouse or domestic partner.

SECTION 15. SIMPLIFIED REGISTRATION AND REPORTING PROCEDURES FOR

CERTAIN POLITICAL COMMITTEES

Waivers of the separate campaign account requirement. A political action committee or ballot question committee may apply for a waiver of the requirement in 21-A M.R.S. § 1054 to maintain a separate campaign bank account on the grounds that maintaining a separate account would be administratively burdensome. The Commission’s Director shall make the initial decision on the application. The committee may appeal the Director’s decision to the Commission. The Director and the Commission shall consider expected or actual expenditures aggregating more than $25,000 as a factor in opposition to a waiver, except for a ballot question committee that consists of a single individual.

The committee receiving the waiver shall disclose all expenditures made for activities to initiate or influence a campaign in Maine and operational expenditures that promote or support those activities. The committee may pro-rate operational expenditures based on the portion that may reasonably be attributed to initiating or influencing a Maine campaign. The committee shall disclose all contributions made to or received by the committee for the purpose of initiating or influencing a campaign and any other funds used to make reported expenditures. The committee shall maintain records of these contributions and expenditures in accordance with 21-A M.R.S. § 1057.

Individual qualifying as a ballot question committee. An individual who qualifies as a ballot question committee may file a simplified registration form that discloses contact information for the individual and for any treasurer or other person authorized to file campaign finance reports. The registration must also include the ballot question the individual expects to support or oppose. If the individual is sharing fundraising or spending decisions with another person, they shall comply with the full registration requirements of 21-A M.R.S. § 1052-A.

In lieu of full compliance with the record-keeping requirements in 21-A M.R.S.

§ 1057(1)-(4), an individual qualifying as a ballot question committee shall keep a vendor invoice or receipt for every expenditure in excess of $50 made for the purpose of initiating or influencing a Maine campaign, and records of any contributions from a donor that has provided contributions exceeding $50 in the aggregate for purposes of initiating or influencing the campaign.

SECTION 16. FOREIGN GOVERNMENT-INFLUENCED ENTITIES

1. Definitions. For purposes of this section, the Commission incorporates the definitions in 21-A M.R.S. § 1064(1). In addition, the following terms have the following meanings when used in § 1064 or in this section:

A. Campaign Advertisement. “Campaign advertisement” means a paid public communication to influence the nomination or election of a candidate or to influence the initiation or approval of a referendum.

B . Contribution. “Contribution” has the meaning set forth in 21-A M.R.S.

§ 1012(2) if the contribution is directed to a candidate or a candidate’s political committee. “Contribution” has the meaning set forth in 21-A M.R.S. § 1052(3) if the contribution is directed to any other person or entity.

C. Direct participation. To “directly” participate in a decision-making process means to participate in the decision-making process through a person who is an employee or official of a foreign government or an employee, director, owner, or member of a foreign government-owned entity.

D. Donation. “Donation” means any gift, subscription, loan, advance or deposit of money or anything of value, regardless of whether it satisfies the definition of a contribution.

E. Disbursement of funds. “Disbursement of funds” means any purchase, payment, distribution, loan, advance, deposit or gift of money or anything of value, regardless of whether it satisfies the definition of an expenditure.

F. Expenditure. “Expenditure” has the meaning set forth in 21-A M.R.S. § 1012(3) if made by a candidate for office or the candidate’s political committee. “Expenditure” has the meaning set forth in 21-A M.R.S. § 1052(4) if made by any other person or entity.

G. Indirect beneficial ownership. “Indirect beneficial ownership” means having an ownership interest in an entity as a result of owning an interest in an intermediate entity that either directly owns part or all of the entity or indirectly owns part or all of the entity through other intermediate entities. For example:

(1) if a foreign government wholly owns a firm that has a 10% interest in a Maine corporation, the foreign government indirectly owns 10% of that corporation; or

(2) if a foreign government holds a 25% ownership interest in Maine Corporation A and Maine Corporation A, in turn, holds a 40% ownership interest in Maine Corporation B, the foreign government indirectly owns 10% of Maine Corporation B.

H. Indirect participation. To “indirectly” participate in a decision-making process means to participate in the decision-making process using an intermediary, whether or not the intermediary has any formal affiliation with the foreign government or foreign government-owned entity.

I. Internet platform. “Internet platform” means an entity that controls any public-facing website, internet application, or mobile application that sells advertising space and:

(1) is also a print news outlet, television or radio broadcasting station, or provider of cable or satellite television; or

(2) publishes content primarily intended for audiences within Maine.

J. Media provider. “Media provider” means a television or radio broadcasting station, provider of cable or satellite television, print news outlet or Internet platform, as defined in this section.

K. Print news outlet. “Print news outlet” means an entity that publishes physically printed news or news commentary on a periodical basis in which advertisers may purchase advertising space and which distributes at least 25 percent of its copy for one or more publications within the State of Maine.

L. Participate. To “participate” in a decision-making process with regard to the activities of a firm, partnership, corporation, association, organization or other entity to influence the nomination or election of a candidate or the initiation or approval of a referendum, means, with the invitation, consent, or acquiescence of the firm, partnership, corporation, association, organization, or other entity, to deliberate or vote on a decision of that firm, partnership, corporation, association, organization or other entity concerning donations and disbursements to influence the nomination or election of a candidate or the initiation or approval of a referendum.

Participation does not include:

(1) making, deliberating on, or voting on a shareholder resolution concerning donations and disbursements to influence the nomination or election of a candidate or the initiation or approval of a referendum if the person making, deliberating on, or voting on the resolution holds, owns, controls or otherwise has direct or indirect beneficial ownership of less than 5% of the total equity, outstanding voting shares, membership units or other applicable ownership interests;

(2) sending an unsolicited communication regarding a decision-making process; or

(3) participating in an entity’s decision-making process for general budget decisions, including setting overall budgets for political donations and disbursements on an annual basis at a “not to exceed” amount, provided that there is no participation in any other decision-making concerning political donations and disbursements or the selection of individuals who will make such decisions.

M. Provider of cable or satellite television. “Provider of cable or satellite television” means an entity that is engaged in the provision of cable or satellite television service in Maine to a public audience and sells advertising space for transmission through its service.

N. Structure. “Structure” means to arrange for financial activity to be made by or through a person for the purpose of evading the prohibitions and requirements of 21-A M.R.S. § 1064. Structuring includes, but is not limited to, creating a business entity whose ownership cannot be readily ascertained for the purpose of concealing ownership or control by a foreign government.

O. Television or radio broadcasting station. “Television or radio broadcasting station” means an entity that broadcasts television or radio signals from within the state of Maine to a public audience and sells advertising space for broadcast through those signals.

2. Ownership or control by a foreign government. An entity does not qualify as a foreign government-influenced entity pursuant to 21-A M.R.S. § 1064(1)(E)(2)(a) solely because multiple foreign governments or foreign government-owned entities have ownership interests in the entity that, if combined, would exceed 5% of the entity’s total equity or other ownership interests.

3. Campaign spending by foreign governments prohibited. A foreign government-influenced entity may not make, directly or indirectly, a contribution, expenditure, independent expenditure, electioneering communication or any other donation or disbursement of funds to influence the nomination or election of a candidate or the initiation or approval of a referendum.

4. Solicitation or acceptance of contributions from foreign governments prohibited. A person may not knowingly solicit, accept or receive a contribution or donation prohibited by subsection 3.

5. Substantial assistance prohibited. A person may not knowingly or recklessly provide substantial assistance, with or without compensation:

A. In the making, solicitation, acceptance or receipt of a contribution or donation prohibited by subsection 4; or

B. In the making of an expenditure, independent expenditure, electioneering communication or disbursement prohibited by subsection 3.

6. Circumvention through structuring financial activity

A. Prohibition. A person may not structure or attempt to structure a solicitation, contribution, expenditure, independent expenditure, electioneering communication, donation, disbursement or other transaction to evade the prohibitions and requirements in 21-A M.R.S. § 1064.

B. Enforcement. The Commission shall assess a penalty against a person for illegally structuring a transaction only upon finding that the person intended to evade the prohibitions and requirements in 21-A M.R.S. § 1064.

7. Disclaimer in paid public communications

A. Disclaimer required. A disclaimer is required whenever a foreign government-influenced entity makes a disbursement of funds to finance a public communication not otherwise prohibited by 21-A M.R.S. § 1064 or this section if it meets either of the following criteria:

A reasonable observer would understand the content of the public communication to be seeking to influence the public or any state, county or local official or agency regarding the formulation, adoption or amendment of any state or local government policy; or,

The public communication promotes the political or public interest of or government relations with a foreign country or a foreign political party.

B. Disclaimer content. A public communication subject to the disclaimer requirement of this subsection must clearly and conspicuously contain the words “Sponsored by” immediately followed by the name of the foreign government-influenced entity that made the disbursement and a statement identifying that foreign government-influenced entity as a “foreign government” or a “foreign government-influenced entity.” The disclaimer may include language to indicate that “foreign government” and “foreign government-influenced entity” are defined terms under state law, as follows: “sponsored by [entity], a [foreign government or foreign government-influenced entity, as appropriate] as defined in Maine law.”

C. Applicability. This subsection applies only to public communications purchased from media providers or otherwise intended to be viewed primarily by Maine residents.

8. Requirements for media providers

A. Policies, procedures and controls. Each media provider must establish due diligence policies, procedures and controls that are reasonably designed to ensure that it does not broadcast, distribute or otherwise make available to the public a campaign advertisement purchased by a foreign government-influenced entity. Nothing in these rules may be interpreted to prohibit or otherwise restrict a media provider from reproducing a campaign advertisement prohibited by 21-A M.R.S. § 1064 as part of a news story, commentary, or editorial.

B. Safe harbor. A media provider will be deemed to satisfy the requirements of subsection 8(A) if it adopts a policy containing the following features:

(1) The policy prohibits publication of any campaign advertisement that the media provider knows to originate from a foreign government-influenced entity, except that the policy may allow reproduction of a campaign advertisement in a news story to which the campaign advertisement is relevant.

(2) The policy requires a purchaser of a campaign advertisement to certify in writing that it is not a foreign government-influenced entity or acting on behalf of a foreign government-influenced entity. The policy may allow certification via electronic means and may allow the advertiser to certify by checking a box or other similar mechanism, as long as the box or other mechanism is clearly labeled as a certification that the advertiser is not a foreign government-influenced entity or acting on behalf of a foreign government-influenced entity.

(3) The policy requires that such certifications be preserved by the media provider for a period of not less than 2 years.

(4) The policy requires the media provider to decline to publish a campaign advertisement if:

a. the purchaser fails to provide the certification required by subsection (8)(B)(2); or

b. the media provider has actual knowledge of facts indicating that, notwithstanding the purchaser’s written confirmation to the contrary, the purchaser is a foreign government-influenced entity or is acting on behalf of a foreign government-influenced entity.

(5) If the media provider is an Internet platform, its policy provides that, upon discovery that the Internet platform has distributed a campaign advertisement purchased by or on behalf of a foreign government-influenced entity, the Internet platform shall immediately remove the public communication and notify the Commission.

C. Other policies permitted. Nothing in this section prevents a media provider from adopting a due diligence policy containing provisions other than those described in subsection (8)(B) above, so long as the policy is reasonably designed to ensure that it does not broadcast, distribute or otherwise make available to the public a campaign advertisement purchased by or on behalf of a foreign government-influenced entity.

D. Investigations not required. A due diligence policy need not require the media provider to investigate their advertisers or to monitor comment sections or other similar fora that the media provider makes available to subscribers, users, or the general public to post commentary.

E. Takedown requirement. If an Internet platform discovers that it has distributed a campaign advertisement purchased by a foreign government-influenced entity, the Internet platform shall immediately remove the public communication and notify the Commission.

9. Effective Date. This section takes effect and becomes enforceable on the date, if any, that the U.S. District Court for the District of Maine removes or modifies the injunction against enforcement of 21-A M.R.S. § 1064 issued in Central Maine Power, et al. v. Comm’n on Governmental Ethics and Election Practices, et al. , Docket No. 1:23-cv-00450 (D. Me.), provided that, if the District Court modifies the injunction, this section takes effect and becomes enforceable only to the extent that the District Court permits enforcement of the corresponding provisions of § 1064.

10. Severability. In the event any portion of 21-A M.R.S. § 1064 is finally determined by a court of competent jurisdiction to be invalid or unenforceable, these rules are enforceable to the extent that corresponding provisions of 21-A M.R.S. § 1064 are valid and enforceable.

History

• STATUTORY AUTHORITY: 1 M.R.S.A. §1003(1); 21-A M.R.S.A. §1126.
• EFFECTIVE DATE: April 29, 1987
• AMENDED: December 28, 1991
• AMENDED: December 14, 1994
• REPEALED AND REPLACED: November 1, 1998 - also converted to MS Word format
• NONSUBSTANTIVE CHANGES: December 3, 1998 - minor spelling and formatting
• AMENDED: May 9, 2005 – effective date of routine technical language adopted (signed by Chair on January 14, 2004 and signed by an Assistant Attorney General on February 19, 2004), filing 2005-133
• AMENDED: May 9, 2005 – effective date of routine technical language adopted (signed by Chair on April 8, 2005 and signed by an Assistant Attorney General on April 28, 2005), filing 2005‑134
• AMENDED: May 4, 2005 – date of filing with the Secretary of State of Provisional Adoption (major substantive) language signed by Chair on April 8, 2005 and by an Assistant Attorney General on April 28, 2005, filing LR-2005-15, submitted by the Commission to the Legislature for review
• AMENDED: October 12, 2005 - effective date major substantive final adoption (signed by Chair on July 13, 2005 and filed with the Secretary of State on September 12, 2005), filing 2005-379
• AMENDED: April 25, 2007 - effective date of routine technical language adopted (signed by Chair on April 6, 2007 and signed by an Assistant Attorney General on April 17, 2007), filing 2007-144
• AMENDED: March 15, 2008 - filing 2008-116
• AMENDED: April 12, 2009 - filing 2009-152
• AMENDED: November 29, 2009 – filing 2009-615
• AMENDED: August 27, 2010 - filing 2010-387 (EMERGENCY)
• AMENDED: November 25, 2010 – emergency period having expired, reverted to previous version
• AMENDED: July 31, 2011 - effective date of major substantive final adoption (signed by Chair on June 23, 2011 and signed by an Assistant Attorney General on July 20, 2011), filing 2011-254
• AMENDED: September 3, 2012 – filing 2012-245
• AMENDED: May 11, 2013 - filing 2013-111
• AMENDED: May 25, 2015 - filing 2015-097
• AMENDED: February 16, 2016 - Section 7 subsection 12, Section 10, filing 2016-023
• AMENDED: September 20, 2016 - Section 6 subsection 11, filing 2016-151
• AMENDED: July 2, 2018 - Section 6 subsection 7, filing 2018-115
• AMENDED: May 7, 2019 - Sections 7, 14, filing 2019-068
• AMENDED: March 24, 2024 filing 2024-073
• AMENDED: July 20, 2024 filing 2024-160
• AMENDED: March 3, 2026 filing 2026-027
• APAO ACCESSIBILITY CHECK (Word): March 5, 2026
• AMENDED: September 7, 2026 – filing 2026-200

Chapter 2 Hearing Procedures

Code Me. R. 94-270 Ch. 2 Hearing Procedures {#sec-94-270-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--94-270 Ch. 2}

SECTION 1. SCOPE

These procedures shall be applicable to hearings before the Maine Commission on Governmental Ethics and Election Practices which have been called to consider any matter within the Commission's statutory authority. They shall be construed to secure the just, speedy and inexpensive determination of such matters in the public interest.

SECTION 2. NOTICE

Due notice of public hearings shall be provided as set forth in the Maine Administrative Procedure Act , 5 M.R.S. §9052.

[Repealed]

SECTION 3. PRESIDING OFFICER

1. The presiding officer at any hearing shall be either (1) the Chair, or (2) a member of the Commission selected by those members present at the hearing.

2. The presiding officer shall have the authority to:

A. Rule upon issues of evidence,

B. Regulate the course of the hearing,

C. Rule upon issues of procedure,

D. Present questions to the Commission for its determination,

E. Take such other action as may be ordered by the Commission or is necessary for the efficient and orderly conduct of the hearing, consistent with these regulations and applicable statutes.

3. In special cases, where good cause appears, the presiding officer may permit deviation from these procedural rules insofar as compliance therewith is found to be impractical or unnecessary.

4. The rulings of the presiding officer shall be subject to change or amendment by the Commission on motion of any Commission member.

SECTION 4. GENERAL CONDUCT

1. Opening Statement. The presiding officer shall open the hearing by describing in general terms the purpose of the hearing and the general procedure governing its conduct.

2. Transcription of Testimony. All testimony at hearings shall be recorded and, as necessary, transcribed, with the expenses of transcription to be paid by the person requesting the transcription. Requests for transcription must be made within 60 days of the date of the Commission's decision resulting from the hearing.

3. Witnesses. Witnesses shall be sworn. The Commission may sequester witnesses as it deems necessary.

4. Testimony. Witnesses shall testify on behalf of or at the invitation or subpoena of the Commission or on behalf of the parties to the proceeding.

5. Ethics Hearings. In hearings involving legislative ethics, any person whose name is mentioned in an investigation or hearing and who believes that testimony has been given which adversely affects that person shall have the right to testify, or at the discretion of the Commission and under such circumstances as the Commission shall determine to protect the rights of the Legislator under inquiry, to file a statement of facts under oath relating solely to the material relevant to the testimony of which that person complains. Nothing herein shall be construed to prevent the Commission from granting the right of cross-examination.

SECTION 5. CONTINUANCE

All hearings conducted pursuant to these regulations may be continued for reasonable cause and reconvened from time to time and from place to place by the presiding officer as circumstances require. All orders for continuance shall specify the time and place at which such hearing shall be reconvened. The staff shall notify interested persons of the continuance in such a manner as is appropriate to insure that reasonable notice will be given of the time and place of such reconvened hearing.

SECTION 6. GENERAL EVIDENCE

1. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The Commission may exclude irrelevant or unduly repetitious evidence.

2. Commission Evidence. Any results of Commission investigations or data gathered during Commission investigations may be introduced into the record by the Commission. The Commission may also present such other evidence as it deems appropriate.

3. Official Notice. The Commission may, at any time, take official notice of relevant laws, official regulations and transcripts of other Commission hearings, judicially recognizable facts, generally recognized facts of common knowledge to the general public and physical, technical or scientific facts within its specialized knowledge. The Commission shall include in any final written decision those facts of which it took official notice unless those facts are included in the transcript of the record.

4. Documentary and Real Evidence. All documents, materials and objects offered in evidence as exhibits shall be numbered or otherwise identified. Documentary evidence may be received in the form of copies or excerpts if the original is not readily available.

5. Objections. All objections to rulings of the presiding officer regarding evidence or procedure and the grounds therefor shall be timely stated during the course of the hearing. If during the course of or after the close of the hearing and during its deliberations the Commission determines that the ruling of the presiding officer was in error, it may reopen the hearing or take such other action as it deems appropriate to correct such error.

6. Offer of Proof. An offer of proof may be made in connection with an objection to a ruling of the presiding officer excluding or rejecting any testimony or question on cross-examination. Such offer of proof shall consist of a statement of the substance of the proffered evidence or that which is expected to be shown by the answer of the witness.

SECTION 7. CROSS-EXAMINATION

All witnesses shall be subject to cross-examination as follows:

1. Commission members, staff and counsel may ask questions at any time.

2. Legislators in proceedings involving ethics and candidates or committees in proceedings involving their campaign reports shall have the right of cross-examination in the order specified by the presiding officer.

3. Any other person whose conduct is under inquiry in a legislative ethics proceeding shall have the right of cross-examination at a point specified by the presiding officer.

4. The presiding officer may permit oral questions outside the regular order where deemed appropriate to gain information for the Commission.

SECTION 8. CONCLUSION OF HEARING

At the conclusion of the hearing, no other evidence or testimony will be allowed into the record, except as specified by the presiding officer.

SECTION 9. REOPENING THE RECORD

At any time prior to a final decision, the Commission may reopen the record for further proceedings consistent with these regulations provided, however, that the Commission shall give notice of such further proceeding at least 10 days prior to such proceedings.

SECTION 10. BRIEFS AND PROPOSED FINDINGS AND SCHEDULE

After close of the record and prior to decision the Commission may order that within a specified time any person who participated in the hearing may file briefs and proposed findings of fact with the Commission.

SECTION 11. REPRESENTATIVES

The first document filed by any person in a proceeding shall designate the name and address of a person on whom service shall be made and to whom all correspondence from the Commission and other participants in the proceeding shall be sent.

History

• STATUTORY AUTHORITY: 1 M.R.S.A. Section 1003
• EFFECTIVE DATE: April 29, 1987 – filing 87-145
• REPEALED AND REPLACED: December 14, 1994 – filing 94-494
• EFFECTIVE DATE (ELECTRONIC CONVERSION): October 30, 1996
• REPEALED AND REPLACED: November 1, 1998; also converted to MS Word 2.0 format – filing 98-447
• NON-SUBSTANTIVE CHANGES: December 3, 1998 - minor grammar and spelling.
• AMENDED: August 27, 2023 – filing 2023-113 (Major substantive)

Chapter 3 Maine Clean Election Act and Related Provisions

Code Me. R. 94-270 Ch. 3 Maine Clean Election Act and Related Provisions {#sec-94-270-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--94-270 Ch. 3}

SECTION 1. APPLICABILITY

This chapter applies to candidates running for Governor, State Senator and State Representative who choose the alternative campaign financing option established by the Maine Clean Election Act for elections to be held beginning in the year 2000. Candidates participating in the Maine Clean Election Act must comply with these rules and all other applicable election and campaign laws and regulations. Some sections in this chapter also apply to and impose obligations on privately financed candidates and political committees that raise contributions and make expenditures in races involving Maine Clean Election Act candidates.

SECTION 2. PROCEDURES FOR PARTICIPATION

1. Declaration of Intent. A participating candidate must file a Declaration of Intent within five days of collecting qualifying contributions. The Commission will provide a form for this purpose.

2. Content. The Declaration of Intent must include the following information:

A. an affirmation that the candidate is seeking certification as a Maine Clean Election Act candidate;

B. an affirmation that the candidate understands that any qualifying contributions collected more than five daysbefore filingthe Declaration of Intent will not be counted toward the eligibility requirement;

C. an affirmation that the candidate has not accepted any contributions, except for seed money contributions, after becoming a candidate;

D. an affirmation that the candidate has disposed of any campaign surplus before becoming a candidate for the new election, as required by paragraph 3 (D) [Campaign Surplus] of this section;

E. an affirmation that if the candidate has any campaign deficit, that the candidate will not accept contributions to repay that deficit as a participating candidate or certified candidate, except that the candidate may forgive any campaign loans to himself or herself made during any previous campaigns;

F. an affirmation that the candidate will continue to comply with applicable seed money restrictions and other requirements of the Act including, but not limited to, procedures for collecting qualifying contributions;

G. an affirmation that the candidate has read and will comply with the Commission’s guidelines on permissible expenditures; and

H. authorization by the candidate for the Commission, its agents or representatives to conduct financial audits of the candidate's campaign financial records and account(s).

3. Seed Money Restrictions

A. General. After becoming a candidate and before certification, a participating candidate may collect and spend only seed money contributions. The restrictions on seed money contributions apply to both cash and in-kind contributions.

B. Total Amount

(1) A participating candidate must limit the candidate’s total seed money contributions to the following amounts:

(a) two hundred thousand dollars for a gubernatorial candidate;

(b) three thousand dollars for a candidate for the State Senate; or

(c) one thousand dollars for a candidate for the State House of Representatives.

(2) Notwithstanding any other provision of this chapter, a candidate may carry forward to a new candidacy of that candidate campaign equipment or property, subject to the reporting requirements of Title 21-A, chapter 13 [Campaign Reports and Finances].

(3) The Commission periodically will review these limitations and, through rulemaking, revise these amounts to ensure effective implementation of the Act.

C. Required seed money for gubernatorial candidates. [Repealed.]

D. Campaign surplus. A candidate who has carried forward campaign surplus according to Title 21-A, chapter 13, subchapter II [§1017(8) and §1017(9)], and who intends to become a participating candidate, must dispose of campaign surplus in accordance with the requirements of Title 21-A, chapter 13, subchapter II [§1017(8)]; provided, however, that a candidate may carry forward only those portions of campaign surplus that comply with the provisions of this Act regarding seed money contributions [§§ 1122(9) and 1125(2)]. Any campaign surplus (excluding campaign equipment or property) carried forward under this provision will be counted toward that candidate’s total seed money limit.

INFORMATIONAL NOTE: The Commission will provide educational materials to all former candidates who have a campaign surplus describing the requirement that individuals must dispose of campaign surplus to remain eligible for participation as a Maine Clean Election Act candidate.

E. Return of Contributions Not in Compliance with Seed Money Restrictions. A participating candidate who receives a contribution exceeding the seed money per donor restriction or the total amount restriction must immediately return the contribution and may not cash, deposit, or otherwise use the contribution.

F. Case-by-Case Exception. A participating candidate who has accepted contributions or made expenditures that do not comply with seed money restrictions may petition the Commission to remain eligible for certification as a Maine Clean Election Act candidate. The Commission may approve the petition and restore a candidate's eligibility for certification if the candidate successfully establishes all of the following criteria:

(1) the failure to comply was the result of an unintentional error;

(2) the candidate immediately returned all contributions that did not comply with seed money restrictions or paid for goods or services contributed that did not comply with seed money restrictions;

(3) the candidate petitioned the Commission promptly upon becoming aware of the unintentional error; and

(4) the failure to comply did not involve expenditures by the participating candidate significantly in excess of seed money total amount restrictions or otherwise constitute systematic or significant infractions of seed money restrictions.

G. Loans during qualifying period. After becoming a candidate and prior to certification, accepting a loan from any source including a financial institution and spending money received in the form of a loan, are violations of the seed money restrictions of the Act.

H. Seed money donors. A seed money contributor may also make a qualifying contribution to the same candidate provided that the contributor otherwise meets the requirements for making a qualifying contribution.

I. Personal funds to open bank account. A candidate may deposit personal funds of the candidate in a campaign account in order to meet the opening deposit requirements of the financial institution. If a financial institution requires a minimum balance to keep an account open or to avoid fees, the candidate may maintain personal funds in the account for that sole purpose at the minimum amount necessary to satisfy the terms of the financial institution. These funds will not be considered an in-kind contribution to the candidate’s campaign or commingling of personal and campaign funds, provided that the candidate does not spend these funds for purposes of promoting the candidate’s nomination or election.

4. Qualifying Contributions

A. General. A candidate may collect qualifying contributions only during the relevant qualifying period for certification and the relevant period for additional qualifying contributions [§§ 1122(8) and 1125(8-E)]. Qualifying contributions collected more than five days before filing a Declaration of Intent with the Commission will not be counted for any purpose. Qualifying contributions must be acknowledged by the person making the contribution and reported on forms provided by the Commission.

The forms must include:

(1) the name, residential address and signature of the contributor;

(2) an affirmation by the contributor that the contribution was made with his or her personal funds, in support of the candidate and that the contributor did not receive anything of value in exchange for his or her signature and contribution;

(3) a clear and conspicuous statement that the candidate is collecting signatures and qualifying contributions in order to obtain public funding to finance the candidate’s campaign;

(4) a confirmation that the contributor is a registered voter indicated by the signature of the municipal registrar or his or her designee or by the Commission’s online qualifying contribution service; and

(5) an affirmation by the person who circulated the form that the circulator collected the contribution, that to the best of the circulator’s knowledge and belief the contribution came from the personal funds of the contributor, that nothing was provided to the contributor in exchange for the contribution, and any additional information required by the Commission in order to protect the reliability of the qualification process. Contributions made through the Commission’s online qualifying contribution service do not require a circulator’s affirmation.

B. Required Number of Qualifying Contributions. A participating candidate must obtain the number of qualifying contributions for certification during the qualifying period as required by the Act [§1122(7); §1122(8); & §1125(3)].

C. Exchanges for Qualifying Contributions Prohibited

(1) A candidate or an agent of that candidate may not give or offer to give a payment, gift, or anything of value in exchange for a qualifying contribution.

(2) This provision does not prohibit a candidate or that candidate’s agent from collecting qualifying contributions at events where food or beverages are served, or where campaign promotional materials are distributed, provided that the food, beverage, and campaign materials are offered to all persons attending the event regardless of whether or not particular persons make a qualifying contribution to the candidate.

(3) This provision does not prohibit a candidate from using seed money to pay the fee for a money order provided the qualifying contributor pays the $5 amount reflected on the money order as permitted by 21-A M.R.S.A. §1125(3).

D. Checks Drawn on Business Accounts. Qualifying contributions must be made with the personal funds of the contributor. The Commission will not count a check drawn from an account with a business name toward the eligibility requirements, unless the name of the contributor is included in the name of the account or the candidate submits a written statement from the contributor indicating that he or she uses the business account for personal expenses.

E. Family Members. Family members, domestic partners, and live-in caregivers who reside in a single household may make qualifying contributions in the form of a single check or money order of more than $5 provided that:

(1) all contributors sign the receipt and acknowledgement form;

(2) all contributors are registered to vote at the address of the household; and

(3) all contributions are made with the personal funds of the contributors.

For a qualifying contribution to be considered valid, the contributor must affirm that the contribution was made with his or her personal funds, in support of the candidate and that the contributor did not receive anything of value in exchange for his or her signature and contribution. The affirmation may not be made by a family member, domestic partner or live-in caregiver of the contributor, unless the contributor is unable to sign the form due to a physical impairment or disability.

F. Verification of Registered Voters

(1) A candidate must obtain verification that contributors who made qualifying contributions to that candidate are registered voters, in accordance with written procedures established by the Commission.

(2) For qualifying contributions made by check or by money order, a candidate must obtain written verification from the Registrar(s) of Voters, or verify the contributor’s voter registration using the Commission’s online qualifying contribution service, as specified in the Commission’s written procedures.

(3) For qualifying contributions made by credit or debit card using the Commission’s online service, if the service is unable to verify the voter registration of the contributor, the candidate must obtain written verification from the Registrar.

(4) Upon request of a candidate, and within 10 business days after the date of the request, the Registrar must verify the names of contributors of qualifying contributions who are registered voters within the electoral division for the office the candidate is seeking.

G. Timing of Verification. For purposes of this chapter, the Commission will deem verification of registered voters by the Registrar at any time during the qualifying period for certification or the relevant period for additional qualifying contributions [§§ 1122(8) and 1125(8-E)] to be an accurate verification of voter registration even if the registration status of a particular voter may have changed at the time the Commission determines certification of the participating candidate or before the additional qualifying contribution is submitted to the Commission. Proof of voter verification submitted after the qualifying period for certification will not be accepted by the Commission and those qualifying contributions will not be counted toward the number required for certification.

H. Online Qualifying Contribution Service. The Commission may establish an online service for members of the public to make qualifying contributions in support of candidates seeking Maine Clean Election Act funding and for candidates to use to verify voter registration and submit contributor lists.

(1) To make an online qualifying contribution, the contributor must use the Commission’s procedures to affirm that the contributor made a contribution from their personal funds in support of the candidate and that the contributor did not receive anything of value in exchange for his or her contribution. The affirmation and the payment must be made and submitted by the contributor and not by any other person. Assistance may be provided to a contributor in using the online service, as long as the assistance is provided in person and the contributor personally makes the affirmation and submits the online payment. A candidate and any person collecting qualifying contributions on behalf of a candidate may not collect the required information from the contributor by phone or any means other than in-person contact, and enter it into the online service on behalf of the contributor.

(2) In order to facilitate efficient administration of the Act and the prompt payment of public campaign funding to eligible candidates, the Commission may develop an alternative method for candidates to verify the voter registration of contributors by using the Commission’s online qualifying contribution service. The Commission may establish procedures for candidates to use the Commission’s online service to verify voter registration and to submit lists of individuals making qualifying contributions as required in Section (3)(1)(B).

I. Fraudulent qualifying contributions. If the Commission staff reasonably believes that fraudulent qualifying contributions have been submitted to the Commission, the staff shall undertake an investigation to determine whether the qualifying contributions are fraudulent. The Commission staff may request investigative assistance from the Office of the Maine Attorney General or refer the matter for possible criminal prosecution. For purposes of this chapter, “fraudulent qualifying contributions” includes, but is not limited to, asking an individual to sign a Receipt and Acknowledgement form as a contributor when the individual did not make a qualifying contribution, giving money or something of value to someone in exchange for making a qualifying contribution, making false statements in the circulator section of a Receipt and Acknowledgement form, or signing the name of another person in the contributor section of the Receipt and Acknowledgment form unless the person signing the form does so on behalf of a family member who authorizes the signature but is unable to sign due to a physical impairment or disability. Fraudulent qualifying contributions must be rejected.

J. Compliance by gubernatorial candidates. Within three weeks of declaring an intention to qualify for Maine Clean Election Act funding, candidates for Governor must appoint one or more compliance officers who will oversee the collection of qualifying contributions and must submit a compliance plan for training and oversight of persons collecting qualifying contributions. The compliance plan must describe the procedures for

training the circulators who will be collecting qualifying contributions,

minimizing the risk of error or fraud by communicating with circulators during the collection process to verify that each contributor listed in qualifying papers provided personal funds, nothing of value was provided to the contributor, and every contributor personally made the required acknowledgment by signing a paper form or completing the online procedure for making a qualifying contribution,

the compliance officer’s personal verification with each circulator that he or she complied with required procedures before the campaign’s acceptance of qualifying contributions from that circulator, and

responding appropriately when receipt and acknowledgement forms have been completed erroneously or fraudulent qualifying contributions have been collected through investigating the extent of the error or fraud and taking remedial action to avoid risk of future error or fraud.

K. Collection of qualifying contributions by paid staff. No person other than the candidate may compensate others for collecting qualifying contributions, except that paid staff of a party committee may provide limited assistance to a candidate pursuant to the exemption under Title 21-A M.R.S.A. §1012(2)(B)(7)(A).

L. Compensating others to collect qualifying contributions. If a candidate compensates any person for collecting qualifying contributions, the compensation must be from funds currently available to the candidate’s campaign. A candidate may not agree to make payment for collection of qualifying contributions from funds not currently available but anticipated to become available upon submission of the qualifying contributions collected. A candidate may not compensate any person for collecting qualifying contributions based on the number of contributions collected by that person.

M. Volunteer assistance with collecting qualifying contributions. A candidate may receive volunteer assistance from an individual with the collection of qualifying contributions. Expenses incurred by the individual for vehicle travel or other purposes may be reimbursed only by the candidate.

N. Returns of qualifying contributions. Qualifying contributions submitted to the Commission in the form of check or money order are not returnable nor refundable. If the Commission receives a request from a contributor for the return of an online qualifying contribution because the contributor made a duplicate contribution or some other error, the Commission may, in its sole discretion, forward the request to the contractor that supports the online service if the return would be feasible within the timing and other constraints of the contractor.

SECTION 3. CERTIFICATION OF PARTICIPATING CANDIDATES

1. Request for Certification. A participating candidate may submit a completed request for certification to the Commission at any time during the qualifying period but not later than 5:00 p.m. on the last day of the relevant qualifying period. The Commission may develop written procedures consistent with this section for candidates to submit qualifying contributions and related materials to facilitate the efficient payment of initial public campaign funding. The request will be deemed complete and considered for certification only when the candidate has submitted to the Commission:

A. the qualifying contributions attached to the corresponding original receipt and acknowledgement forms with confirmation of the contributors’ voter registration and the receipt and acknowledgement forms for any qualifying contributions collected on the Commission’s online qualifying contribution service;

B. a list of all individuals making qualifying contributions and their town or city of residence, in a format specified by the Commission sorted alphabetically by the contributor’s last name;

C. [Repealed.]

D. a seed money report of contributions, expenditures, and obligations made or incurred after becoming a candidate, including a report of any unspent seed money; and

E. a signed request for certification on a form provided by the Commission which contains an affirmation by the candidate that he or she has complied with all seed money and qualifying contribution requirements, has established a separate federally-insured bank account for campaign purposes and, if applicable, that any person who circulated receipt and acknowledgement forms and collected qualifying contributions acted with the candidate’s knowledge and consent, and any other information relevant to the certification process.

F. A candidate may request an extension of time to comply with paragraph D. The Commission staff shall grant all reasonable requests or state in writing the reasons for denying the request. The Commission and the Commission staff may not grant an extension of time to comply with paragraphs A, B and E.

2. Order of Review. The Commission will review candidate requests for certification in the order in which they are received, except that it will give priority to those candidates who are in a contested primary election.

3. Unspent Seed Money. In order to distribute funds expeditiously, the Commission will deduct from the initial distribution from the Fund to a certified candidate an amount equal to the amount of unspent seed money reported by that candidate.

4. Certification. The Commission will certify a candidate as a Maine Clean Election Act candidate upon the participating candidate’s satisfaction of the requirements of the Act and this chapter.

5. Appeals. Any appeals challenging a certification decision by the Commission must be in accordance with the Act [§1125(14)].

SECTION 4. FUND ADMINISTRATION

1. Coordination with State Agencies. The Commission will coordinate with the Office of the Controller and other relevant State agencies to ensure the use of timely and accurate information regarding the status of the Fund.

2. Publication of Fund Revenue Estimates. The Commission will provide the Legislature and Governor with financial projections required under the Act [§1124(4)] and may submit legislation to request additional revenues to the Fund if the Commission determines that projected revenue will not be sufficient to meet demands.

3. Computation of Disbursement Amounts. Every two years, the Commission shall adjust the amounts of distributions made to candidates in accordance with the Act

[§§ 1125(8-B) - (8-F)].

4. Authorizing Contributions due to Shortfall in the Fund.

A. Authorization by Commission to accept contributions. If the Commission determines that the revenues in the Fund may be insufficient to make payments under section 1125 of the Act, the Commission may reduce payments of public campaign funds to certified candidates and permit them to accept and spend contributions in accordance with the Act [§1125(13-A)].

B. Limitations on permitted contributions. If permitted to accept contributions, a certified candidate may not accept a contribution in cash or in-kind from any contributor, including the candidate and the candidate’s spouse or domestic partner, that exceeds the applicable statutory contribution limit as adjusted for inflation. [§§ 1015(1) & (2)]. A candidate may not solicit or receive any funds in the form of a loan with a promise or expectation that the funds will be repaid to the contributor. If a contributor made a seed money contribution to a candidate, the amount of the seed money contribution shall count toward the contribution limit for the primary election. For an unenrolled candidate, a replacement candidate, or candidate in a special election, a seed money contribution shall count toward the contribution limit for the election in which the candidate is running.

C. Apportioning reductions in public funds payments. Upon determining the amount of the projected shortfall, the Commission shall then determine the amount and apportionment of the reductions in payments to certified candidates.

D. Campaign contributions to replace matching funds. [Repealed]

E. Written notice to candidates. The Commission shall notify participating and certified candidates in writing of any projected shortfall in the Fund and specify timelines and procedures for compliance with this subsection in the event of a shortfall.

F. Procedures for candidates. The candidate shall deposit any authorized contributions into the campaign account into which Maine Clean Election Act funds have been deposited. The candidate shall disclose all contributions received in regular campaign finance reports. The Commission’s expenditure guidelines for Maine Clean Election Act funds apply to the spending of the contributions authorized under this subsection.

G. Disposing of surplus campaign funds. After the election, the candidate must return any surplus campaign funds which the candidate was authorized to spend to the Commission upon the filing of the 42-day post-election report except for any money retained for purposes of an audit by the Commission pursuant to section 7, subsection 2(B). If the candidate has collected campaign contributions which the candidate was not authorized to spend, the candidate may dispose of those funds within 60 days after the election by returning them to the contributors, donating them to the Maine Clean Election Fund, or by making an unrestricted gift to the State. All expenditures of surplus campaign funds must be disclosed in campaign finance reports in accordance with 21-A M.R.S.A. §1017.

H. Effect of fundraising on matching funds calculation. [Repealed]

SECTION 5. DISTRIBUTION OF FUNDS TO CERTIFIED CANDIDATES

1. Fund Distribution

A. Establishment of Account. Upon the certification of a participating candidate, the Commission will establish an account with the Office of the Controller, or such other State agency as appropriate, for that certified candidate. The account will contain sufficient information to enable the distribution of revenues from the Fund to certified candidates by the most expeditious means practicable that ensures accountability and safeguards the integrity of the Fund.

B. Manner of Distribution of Fund. The Commission will authorize distribution of revenues from the Fund to certified candidates in accordance with the time schedule specified in the Act [§1125(7) & (7-B)] by the most expeditious means practicable that ensures accountability and safeguards the integrity of the Fund. Such means may include, but are not limited to:

(1) checks payable to the certified candidate or the certified candidate's political committee; or

(2) electronic fund transfers to the certified candidate’s or the certified candidate's political committee’s campaign finance account.

C. Coordination with Other State Agencies. The Commission will coordinate with the Office of the Controller and other relevant State agencies to implement a mechanism for the distribution of Fund revenues to certified candidates that is expeditious, ensures public accountability, and safeguards the integrity of the Fund.

SECTION 6. DISTRIBUTION OF SUPPLEMENTAL FUNDS

A certified candidate may be eligible to receive payments of supplemental funds in the amounts established in 21-A M.R.S.A. §§ 1125(8-B) – (8-D) and at the times established in 21-A M.R.S.A. §§ 1125(7-B) & (8-E). To receive a distribution of supplemental funds, a certified candidate must submit to the Commission additional qualifying contributions in compliance with the requirements of 21-A M.R.S.A. §1125(8-E) and this section. The Commission shall develop written procedures for candidates to submit additional qualifying contributions, lists of contributors, and related materials to facilitate efficient and orderly payments of supplemental funds.

1. Additional Qualifying Contributions. Each submission of additional qualifying contributions must include the following documents:

2. The additional qualifying contributions attached to the corresponding original receipt and acknowledgement forms with confirmation of the contributors’ voter registration according to procedures established by the Commission and the receipt and acknowledgement forms for any additional qualifying contributions collected on the Commission’s online qualifying contribution service.

3. A list of the first and last names of all individuals making additional qualifying contributions, the individual’s town or city of residence, the date of the submission of the additional qualifying contribution to the Commission, and a notation indicating all additional qualifying contributions collected on the Commission’s online qualifying contribution service.

(1) The list must include all additional qualifying contributions being submitted and must be sorted alphabetically by last name.

(2) The list must be provided to the Commission according to procedures established by the Commission.

1. A completed submission form provided by the Commission.

A submission of additional qualifying contributions will not be considered complete and will not be reviewed by the Commission unless the submission includes all the required documents.

2. Payment of Supplemental Funds. Within three business days of certifying that a certified candidate has submitted the required number of valid additional qualifying contributions to be eligible to receive a payment of supplemental funds under the Act [§§ 1125(8-B) – (8-D)], the Commission will authorize a payment of supplemental funds in an amount based on number of valid additional qualifying contributions.

SECTION 7. LIMITATIONS ON CAMPAIGN EXPENSES

A certified candidate shall:

1. limit the candidate's campaign expenditures and obligations to the applicable Clean Election Act Fund distribution amounts;

2. not accept any contributions unless specifically authorized in writing to do so by the Commission in accordance with the Act [§1125(2) and §1125(13)];

3. use revenues distributed from the Fund only for campaign-related purposes as outlined in guidelines published by the Commission, and not for personal or any other use;

4. not use revenues distributed from the Fund to purchase goods to sell for profit;

5. not spend more than the following amounts of Fund revenues on thank you notes or advertising to thank supporters or voters:

A. $250 for a candidate for the State House of Representatives;

B. $750 for a candidate for the State Senate; and

C. $2,500 by a gubernatorial candidate.

The candidate may also use his or her personal funds for these purposes;

6. not use revenues distributed from the Fund for the payment of fines, forfeitures, or civil penalties, or for the defense of any enforcement action of the Commission; and

7. not make any payment of more than $50 in cash. Payments of more than $50 in Maine Clean Election Act funds must be made by check, debit or credit card or wire transfer.

SECTION 8. RECORD KEEPING AND REPORTING

1. Record Keeping by Participating and Certified Candidates. Participating and certified candidates and their treasurers must comply with applicable record keeping requirements set forth in Title 21-A, chapter 13, subchapter II [§1016], and chapter 14 [§1125(12-A)]. Failure to keep or produce the records required under Title 21-A and these rules is a violation of the Act for which the Commission may impose a penalty. The Commission may also require the return of funds for expenditures lacking supporting documentation if a candidate or treasurer is found in violation of the record keeping requirements. The candidate or the treasurer shall have an opportunity to be heard prior to any Commission decision imposing a penalty or requiring the return of funds under this section. In addition to these specific actions, the Commission may also take any other action authorized under Title 21-A.

A. Fiduciary Responsibility for Funds. All funds provided to a certified candidate or to a candidate’s authorized political committee must be segregated from, and may not be commingled with, any other funds, other than unspent seed money.

B. Meal Expenses. A candidate or treasurer must obtain and keep a record for each meal expenditure of more than $50. The record must include itemized bills for the meals, the names of all participants in the meals, the relationship of each participant to the campaign, and the specific, campaign-related purpose of each meal.

C. Vehicle Travel Expenses. If a campaign uses public campaign funds to reimburse the candidate or another individual for their vehicle travel, the candidate or treasurer must obtain and keep a record of vehicle travel expenses for which reimbursements are made.

(1) Amount of reimbursement. Reimbursement may not exceed the standard mileage rate prescribed for employees of the State of Maine for the year in which the election occurs. A candidate may be reimbursed for vehicle travel expenses at a rate less than the standard mileage rate. A candidate may also reimburse a volunteer for vehicle travel expenses at a rate less than the standard mileage rate as long as the difference does not exceed $100 per volunteer per election.

(2) Contents of record. For each trip for which reimbursement is made, a record must be maintained showing the dates of travel, the number of miles traveled, the origination (if different than the residence of the person reimbursed), destination and purpose of the travel, and the total amount claimed for reimbursement. The record should contain an affirmation by the person being reimbursed that it is an accurate record of the dates, purpose, and distance of the campaign travel. The person seeking the reimbursement must have recorded the details of the campaign travel contemporaneously with the travel or within two calendar days afterward.

(3) Penalties for non-compliance. The Commission may disallow any vehicle travel reimbursements for which the candidate or the treasurer cannot produce a record maintained in accordance with this Rule and may require the campaign to repay the amount of the reimbursement to the Maine Clean Election Fund. The Commission may also assess a penalty pursuant 21-A M.R.S.A. §1127(1) if a campaign reimburses travel expenses without having kept a record that is fully compliant with the requirements of this Rule.

2. Reporting by Participating and Certified Candidates

A. General. Participating and certified candidates must comply with applicable reporting requirements set forth in Title 21-A, chapter 13, subchapter II [§1017].

B. Return of Unspent Fund Revenues. Unspent Fund revenues shall be returned to the Fund as follows:

(1) Unauthorized Matching Funds. [Repealed]

(2) Unspent Fund Revenues for Unsuccessful Primary Election Candidates. Upon the filing of the 42-day post-primary election report for a primary election in which a certified candidate was defeated, that candidate must return all unspent Fund revenues to the Commission by check or money order payable to the Fund, except that a gubernatorial candidate may be allowed to reserve up to $2,000 in order to defray expenses associated with an audit by the Commission.

(2-A) Unspent Matching Funds for Successful Primary Election Candidates. [Repealed]

(3) Unspent Fund Revenues for All General and Special Election Candidates. Upon the filing of the 42-day post-election report for a general or special election, all candidates must return all unspent Fund revenues to the Commission by check or money order payable to the Fund, except that a gubernatorial candidate may be allowed to reserve up to $3,500 in order to defray expenses associated with an audit by the Commission.

C. Liquidation of Property and Equipment. Property and equipment that is not exclusive to use in a campaign (e.g., computers and associated equipment, etc.) that has been purchased with Maine Clean Election Act funds loses its campaign-related purpose following the election. Such property and equipment purchased for $50 or more must be liquidated at its fair market value and the proceeds thereof reimbursed to the Maine Clean Election Fund as unspent fund revenues in accordance with the schedule in paragraph B above. Candidates may not return unsold property or equipment to the Commission.

(1) The liquidation of campaign property and equipment may be done by sale to another person or purchase by the candidate.

(2) Liquidation must be at the fair market value of the property or equipment at the time of disposition. Fair market value is determined by what is fair, economic, just, equitable, and reasonable under normal market conditions based upon the value of items of similar description, age, and condition as determined by acceptable evidence of value. A campaign’s sale of property or equipment through an on-line commercial auction shall be considered by the Commission as a factor in favor of determining that the campaign has recovered the fair market value of the property or equipment.

(3) If the campaign sells the property or equipment to the candidate or a member of the candidate’s immediate family or campaign staff, the campaign must receive at least 75% of the original purchase price.

SECTION 9. RECOUNTS, VACANCIES, WRITE-IN CANDIDATES, SPECIAL ELECTIONS

1. Recounts. Certified candidates may not spend Fund revenues for purposes of a recount or a court challenge to the results of a recount, but they may receive donations for these purposes in accordance with 21-A M.R.S.A. §1018-B. The Commission will make the initial distribution for the general election no later than three days after the Secretary of State submits the tabulation of primary election results to the Governor in accordance with Title 21-A, section 722 [§1125(7)(C)]. If there is a recount governed by Title 21-A, chapter 9, subchapter III, article III [§737-A], the primary election winner may spend Fund revenues consistent with the following provisions:

A. If the margin between the leading candidate and the 2nd-place candidate is less than 1% of the total number of votes cast in that race and a recount is presumed necessary, the certified candidate immediately must halt the expenditure of revenues disbursed to the candidate from the Fund upon receiving notice of the recount until the recount is complete.

B. If the recount results in a changed winner, the certified candidate who originally received the disbursement must return any unspent distributions from the Fund to the Commission, payable to the Fund. If the new winner is a certified candidate, the Commission will distribute the applicable disbursement amount to the candidate.

C. If the margin between the leading candidate and 2nd-place candidate is 1% or greater of the total number of votes cast in that race and the 2nd-place candidate requests a recount, the leading candidate, if a certified candidate, is not required to freeze expenditures of the disbursement.

1. If the recount results in a changed winner, the certified candidate must return any unspent distributions from the Fund to the Commission, payable to the Fund. If the new winner is a certified candidate, the Commission will distribute the applicable disbursement amount to the candidate.

2. Death, Withdrawal, or Disqualification of a Candidate During Campaign

A. Death, Withdrawal, or Disqualification Before Primary Election. If a candidate dies, withdraws, or is disqualified before the primary election, the qualifying period during which any replacement candidate may become a participating candidate, collect qualifying contributions, and apply to become a certified candidate begins when the Secretary of State receives a notice of withdrawal or declares a vacancy, whichever occurs earlier. The Commission’s Director shall determine the end of the qualifying period.

B. Death, Withdrawal, or Disqualification after the Primary Election and before 5:00 p.m. on the 2nd Monday in July Preceding the General Election. If a candidate dies, withdraws, or is disqualified before 5:00 p.m. on the 2nd Monday in July preceding the general election, the qualifying period begins when the Secretary of State receives a notice of withdrawal or declares a vacancy, whichever occurs earlier. The qualifying period ends on the 30th day after the 4th Monday in July as a participating candidate to collect qualifying contributions and request certification.

C. Death, Withdrawal, or Disqualification after 5:00 p.m. on the 2nd Monday in July Preceding the General Election. If a candidate dies, withdraws, or is disqualified after 5:00 p.m. on the 2nd Monday in July preceding the general election, the qualifying period begins when the Secretary of State receives a notice of withdrawal or declares a vacancy, whichever occurs earlier. The Commission’s Director shall determine the end of the qualifying period.

D. Replacement Candidates Who Are Participating Candidates. Any replacement candidate choosing to become a participating candidate must otherwise comply with the requirements of this chapter and the Act including, but not limited to, seed money limits and qualifying contribution requirements. The Commission will notify any replacement candidates of the opportunity to participate in the Act and the procedures for compliance with this chapter during a special election.

E. Certification, Payments and Returns of Maine Clean Election Act Funds. The Commission shall certify that replacement candidates have met the requirements to receive Maine Clean Election Act funding and shall make payments to the candidates in accordance with sections 3, 5, and 6 of this chapter. If a replacement candidate has not spent all Maine Clean Election Act funds for purposes of their nomination or election, the candidate shall return unspent funds upon the filing of the 42-day post-election report in accordance with section 8, subsection 2(B).

3. Write-In Candidates

A. Write-in candidates are subject to the registration requirements of Title 21-A M.R.S.A. §1013-A and the campaign finance reporting requirements of §1017, as soon as they qualify as a nominee pursuant to 21-A M.R.S.A §723, file a declaration of write-in candidacy with the Secretary of State pursuant to 21-A M.R.S.A. §722-A, or receive contributions or make expenditures with the intent of qualifying as a candidate in the primary or general election, whichever first occurs.

B. Write-in candidates may not participate in the Maine Clean Election Act , except as provided in paragraph C.

C. A write-in candidate in a primary election who becomes a party’s nominee may participate in the Maine Clean Election Act for the general election. The Commission will establish a qualifying period during which the candidate may become a participating candidate, collect qualifying contributions, and apply to become a certified candidate.

D. A candidate who is participating in the Maine Clean Election Act and who has no opponent listed on the ballot will be presumed to be in an uncontested election even if there are one or more individuals running as write-in candidates. The participating candidate may rebut this presumption by presenting evidence to the Commission that the write-in opponent(s) received or spent substantial campaign funds. Based upon the evidence presented, the Commission may make a determination that it is a “contested election” and make a distribution of public funds to the participating candidate on that basis.

4. Special Election When One or More Candidates Desire to Become Certified Candidates. If a vacancy occurs in the office of Governor, Senator, or Representative because an incumbent dies, resigns, becomes disqualified, or changes residence to another electoral division, and a special election will be held to fill the vacant office, the following provisions apply:

A. The Commission, in consultation with the Secretary of State, will establish a qualifying period during which any candidate in a special election may decide to become a participating candidate, collect qualifying contributions, and apply to become a certified candidate; and

B. Any candidate in a special election must otherwise comply with the requirements of this chapter and the Act including, but not limited to, seed money limits and qualifying contribution requirements. The Commission will notify any candidates of the opportunity to participate in the Act and the procedures for compliance with this chapter during a special election.

5. Return of Unspent Fund Revenues. Any time a certified candidate withdraws, is disqualified, or dies before an election, the candidate or the candidate’s agent must return to the Commission all unspent amounts distributed to the candidate by check or money order payable to the fund, within 2 weeks of the termination of the candidacy.

6. Challenges to Election Results in Court. If the results of an election are challenged in a court proceeding, a certified candidate may solicit and accept donations to finance attorneys’ fees or other litigation costs. The donations must be within the limitations of section 1015, except that no limitation applies to donations from party committees and caucus campaign committees and from attorneys, consultants and their firms that are donating their services without reimbursement. The Commission may adopt procedures for the financial disclosure of these activities.

History

• STATUTORY AUTHORITY: 1 M.R.S. §1003(1); 21-A M.R.S. §1126
• EFFECTIVE DATE: November 1, 1998 – filing 98-447
• NON-SUBSTANTIVE CHANGES: December 3, 1998 - minor spelling and formatting
• PROVISIONAL ADOPTION OF AMENDMENTS: March 6, 2002 – filing LR-2002-16
• FINAL ADOPTION (EFFECTIVE DATE): July 31, 2002 – filing 2002-234
• PROVISIONAL ADOPTION OF AMENDMENTS: February 20, 2004 – filing LR-2004-6
• PROVISIONAL ADOPTION OF AMENDMENTS: May 4, 2005 – filing LR-2005-16
• FINAL ADOPTION (EFFECTIVE DATE): October 12, 2005 – filing 2005-380
• PROVISIONAL ADOPTION OF AMENDMENTS: April 20, 2007 – filing LR-2007-14
• FINAL ADOPTION (EFFECTIVE DATE): August 19, 2007 – filing 2007-300
• AMENDED (ROUTINE TECHNICAL): November 29, 2009 – filing 2009-616
• PROVISIONAL ADOPTION OF AMENDMENTS: April 7, 2009 – filing LR-2009-15
• FINAL ADOPTION (EFFECTIVE DATE): December 23, 2009 – filing 2009-641
• AMENDED (ROUTINE TECHNICAL): April 11, 2010 – filing 2010-120
• PROVISIONAL ADOPTION OF AMENDMENTS: March 28, 2012 – filing LR-2012-15
• FINAL ADOPTION (EFFECTIVE DATE): July 11, 2012 – filing 2012-166
• PROVISIONAL ADOPTION OF AMENDMENTS: January 9, 2017 – filing LR-2017-2
• FINAL ADOPTION (EFFECTIVE DATE): August 20, 2017 – filing 2017-112
• PROVISIONAL ADOPTION OF AMENDMENTS: January 9, 2018 – filing LR-2018-3
• FINAL ADOPTION (EFFECTIVE DATE): June 3, 2018 – filing 2018-076
• PROVISIONAL ADOPTION OF AMENDMENTS: October 29, 2018 – filing LR-2018-11
• FINAL ADOPTION (EFFECTIVE DATE): June 1, 2019 – filing 2019-069
• PROVISIONAL ADOPTION OF AMENDMENTS: January 13, 2023 – filing LR-2012-3
• FINAL ADOPTION (EFFECTIVE DATE): August 27, 2023 – filing 2023-114
• AMENDED: March 24, 2024 – filing 2024-074
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-289 Atlantic Salmon Commission (formerly 09-289)

Chapter 1 Rules of the Atlantic Salmon Commission

Code Me. R. 94-289 Ch. 1 Rules of the Atlantic Salmon Commission {#sec-94-289-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-289 Ch. 1}

1.01 General Seasons

There shall be no open fishing season for anadromous Atlantic Salmon, except as provided in section 1.03.

1.02 Size and Bag Limits

Fishing for anadromous Atlantic salmon (Salmo salar) is prohibited statewide, except as provided in section 1.03. Any anadromous Atlantic salmon caught incidentally to other angling shall be released alive immediately without removal from the water.

1.03 Experimental Open Season

Time Period

There will be a limited, open season for directed angling for Atlantic salmon from May 1st through May 31 annually, on the Penobscot River in the area specified below.

Open Area

Penobscot River; between two painted red markers placed on opposing banks that are 150 feet below the Veazie Dam fishway, down river to the former site of the Bangor Dam, which will also be marked by two painted red markers. The open area does not include the pool below the former dam site.

Conditions

Directed angling for Atlantic salmon shall be permitted in the above specified open area and time period under the following conditions:

Catch and release only. Any salmon hooked must be released immediately without injury;

No salmon shall be removed from the water for any reason;

Fly Fishing Only. Fly must be tied on a single pointed barbless, hook. Only one fly or hook can be fished at any one time (no dropper flies);

Daily Catch and Release limit is one fish. Any angler who hooks and releases one salmon must stop fishing for the day;

Fishing is only permitted in the open area specified in section 1.03(2) when green flags are displayed at the Veazie Dam, Eddington Salmon Club and Penobscot Salmon Club;

Anglers must obtain an Atlantic salmon license in accordance with 12 M.R.S.A §9904 prior to fishing for Atlantic salmon under this section.

All Atlantic salmon license holders must report all fishing activity at the end of the season on forms supplied by the Commission. Failure to comply with this reporting requirement may result in the denial of renewal of a license.

H. A total allowable catch (and release) for the season is fifty (50) Atlantic salmon. When 50 fish have been caught the season will be closed. Daily reporting, within 12 hours of release, by anglers when Atlantic salmon have been successfully caught and released is required to determine when the total allowable catch has been reached. The Atlantic Salmon Commission (ASC) will establish a dedicated phone number to be provided with the fishing license, for reporting purposes. ASC personnel will also be on duty each day to which the information may be reported to satisfy this requirement.

Closure

The Commission may close the fishery during the open season if it is deemed necessary to protect the resource. The specified open area shall be closed to all fishing for Atlantic salmon when red flags are displayed at the Veazie Dam, Eddington Salmon Club and Penobscot Salmon Club.

History

• STATUTORY AUTHORITY: 12 MRSA §9902.
• EFFECTIVE DATE: April 1, 1979 (as Atlantic Sea Run Salmon Commission)
• AMENDED: June 6, 1979
• AMENDED: June 11, 1979 - Section 1.02 (B)(5)
• AMENDED: June 11, 1979 - Section 1.02 (B)(6)
• AMENDED: August 13, 1979 - Section 1.04 (EMERGENCY)
• AMENDED: April 1, 1980
• AMENDED: April 1, 1981 - Section 1.05 (F)
• AMENDED: August 17, 1981 - Section 1.05 (E) (1-3)
• AMENDED: July 5, 1982 - Section 1.05 (E)(3, 5 & 4)
• AMENDED: June 6, 1983 - Section 1.05 (E) (3-5)'
• AMENDED: January 2, 1984 - Section 1.05 (E)(6)
• AMENDED: May 1, 1984 - Section 1.04 (E), 1.05(A)& (F -J)
• AMENDED: March 31, 1985 - Section 1.02 (A & B), 1.05 (A & F)
• AMENDED: February 25, 1986 - Section 1.05 (C, E, & H)
• AMENDED: April 11, 1989 - Section 1.02 (A) and 5(L)
• AMENDED: May 1, 1990 Section 1.05 D
• AMENDED: July 20,-1990 - Section 1.05 (F)(7) (EMERGENCY)
• AMENDED: April 7, 1992 - Sections 1.01, 1.02 and 1.03 (A-E)
• AMENDED: March 30, 1993
• AMENDED: March 6, 1994
• AMENDED: June 13, 1995
• AMENDED: July 2, 1997 (as Atlantic Salmon Authority)
• AMENDED: January 1, 2000 (as Atlantic Salmon Commission) -
• AMENDED: Sections 1.01 and 1.02 amended; Sections 1.03, 1.04, and 1.05 repealed
• RELOCATED: November 27, 2000 - umbrella-unit number changed to 94-289
• NON-SUBSTANTIVE CORRECTION: December 11, 2000 - header corrected to remove reference to Department of Inland Fisheries and Wildlife
• REPEALED AND REPLACED: August 1, 2006 – filing 2006-343
• AMENDED: July 3, 2007 – Section 1.03, filing 2007-264
• AMENDED: March 15, 2008 – filing 2008-114
• AMENDED: 94-289 Chapter 1 page 2

94-293 Baxter State Park Authority

Chapter 1 Baxter State Park Rules and Regulations

Code Me. R. 94-293 Ch. 1 Baxter State Park Rules and Regulations {#sec-94-293-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-293 Ch. 1}

Summary: These rules, adopted by the Baxter State Park Authority (the "Authority") pursuant to 12 M.R.S.A. §903, govern the use of Baxter State Park (the "Park") by the public. No provision of these rules applies to law enforcement or administrative personnel in the course of their official duties. Any delegation of authority to the Director under these rules includes delegation to the Director's designee. In addition to any specific provision contained in these rules, the Director may restrict public uses or activities within the Park as necessary to preserve or protect the Park or to assure the safety of Park users.

1. CAMPING, RESERVATIONS AND REGISTRATION

1.1 The Authority and Director may establish administrative policies and procedures for the processing of reservations.

1.2 Camping is permitted by reservation only and only in authorized campgrounds and campsites during certain dates and times, as specified by the Park. Campers must register at the gatehouse no later than 8:30 p.m. Camping by groups of more than 12 people is permitted only at designated group camping areas

1.3 All persons entering the Park by road or trail must register their entrance at the first opportunity at a staffed gatehouse or self-registration station. Long Distance Hikers entering the Park for the purpose of hiking all or part of the Appalachian Trail must secure an AT-Katahdin Hiker Permit Card and register with Baxter State Park prior to hiking the Hunt Trail to or from Baxter Peak. All other persons entering the Park on foot must register with Park Headquarters or a gatehouse in advance.

2. HIKING AND DAY USE

2.1 The maximum size of a hiking group shall be 12 persons. Affiliated groups on the same trail separated by less than one mile shall be considered one group.

2.2 Hiking or mountain climbing may be restricted at the discretion of the Director. Park users must be reasonably prepared and equipped for the activity they are engaged in, and must take reasonable precautions against endangering themselves or others. Hikers must carry a working flashlight. No children under the age of six (6) years are allowed above timberline. Children under the age of six (6) years walking under their own power may be authorized to travel above timberline by special use permit, subject to conditions set by the Director. Registration of technical rock/ice climbers is required. The Baxter State Park Authority may request reimbursement of search and rescue costs in cases of reckless hikers.

3. HUNTING, TRAPPING AND FISHING

3.1 Hunting and trapping are prohibited within the Park. Use or possession of any firearm, bow and arrow, sling shot, crossbow, air rifle or pistol is prohibited. Firearms may be transported through the Park if kept in a car trunk, enclosed in a case, or otherwise inaccessible to use. Bows may be transported through the Park if unstrung or enclosed in a case. This rule does not apply north of Trout Brook and Wadleigh Brook in T6 R9; in T6 R10; or in T2 R9 and in T2 R10 north of the West Branch of the Penobscot River, east to the thread of Abol Stream and west to the thread of the West Branch of the Penobscot River. Hunting with dogs is prohibited. In the areas within the Park where hunting and trapping are permitted, the general laws of the State pertaining to hunting and trapping apply, except that moose hunting and baiting any animals for hunting purposes are prohibited.

3.2 Maine fishing laws and the rules of the Maine Department of Inland Fisheries and Wildlife apply within the Park. Maine fishing licenses are required.

4. RESOURCE PROTECTION AND WILDERNESS PRESERVATION

4.1 Pets or other domestic animals are not allowed in the Park. Releasing or introducing any animal in the Park is prohibited.

4.2 No person may feed, bait, or disturb any animal within the Park, with the exception that baiting of animals for trapping purposes is permitted north of Trout Brook and Wadleigh Brook in T6 R9; in T6 R10; or in T2 R9 and in T2 R10 north of the West Branch of the Penobscot River, east to Abol Stream and west to the West Branch of the Penobscot River. The use of audio, visual, electronic or any other device in any way that may disturb or harass wildlife is prohibited.

4.3 Fires or other cooking or heating devices are permitted only in designated campsites or picnic areas. At Chimney Pond and Davis Pond, open fires are prohibited and only backpack-type stoves are allowed. The removal of bark from, or the cutting or defacing of live or standing dead trees is prohibited.

4.4 No person may leave a fire without totally extinguishing it, nor discard any burning cigarettes, cigars, matches, or any other burning material within the Park. Any fire outside a designated fireplace must be reported to the nearest Park Ranger at once.

4.5 All trash, rubbish, litter, camping gear, equipment, and materials carried into the Park must be carried out of the Park. No trash, rubbish, or litter shall be deposited in any type of vaulted or un-vaulted toilet. All unattended food, garbage, and scented items shall be securely stowed in a vehicle, suspended on a bear hang, or enclosed in a bear-proof container.

4.6 Where toilets are not available, human waste must be disposed of at least 200' from water or trail. Below treeline, human waste must be buried or carried out. Above treeline, the digging of catholes is prohibited, and human waste must be carried out or left on the surface of the soul or a rock.

4.7 Use of any soap or detergent , or the disposal of food scraps within 200' of any waters is prohibited.

4.8 No person may create a disturbance that impairs the enjoyment of the Park by others. Campground quiet hours are posted and enforced. The use of electronic devices in any way that impairs the enjoyment of the Park by others is prohibited.

4.9 Chainsaws, generators, and other power equipment may not be operated within the Park.

4.10 Collection or removal of any cultural object from the Park is prohibited. No person may deface, paint, damage, mutilate, or vandalize any cultural object or any structure or sign within the Park. Possession of paint or marking materials, or tampering with, altering, or removing any sign, marker, or structure, is prohibited. Driving nails or permanently installing any object is prohibited. The use of metal detectors or similar devices is prohibited.

4.11 The removal from, or introduction of, natural objects, materials, plants or animals to the Park is prohibited, with the exceptions that fish and other wildlife may be collected for personal use in authorized areas of the Park as defined in 3.1, 3.2, and 4.2, above and that wild edible or medicinal plants and mushrooms may be collected for personal use only. Gathering of wild edible or medicinal plants and mushrooms for sale or commercial purposes is prohibited.

4.12 Research studies and Commercial Media projects within the Park require a special use permit issued by the Director. Commercial use activities within the Park require a commercial use permit issued by the Director.

5. VEHICLES AND TRANSPORTATION

5.1 No vehicle over nine (9) feet high, seven (7) feet wide, or 22 feet long for a single vehicle or 44 feet long for combined units may enter the Park. Oversize units may be authorized to use the Park road system by special use permit, subject to conditions set by the Director. The Director may restrict the use of vehicles by persons without camping reservations.

5.2 Within each campground or picnic area, all vehicles must park in designated areas. A maximum of two vehicles may park at each campsite for which parking space is provided. No vehicle may park on the traveled portion of any Park road, or obstruct a designated parking space.

5.3 All vehicles must display an entrance permit while in the Park. Vehicles parked overnight without an entrance permit displayed or with an invalid permit may be towed away at the owner's expense.

5.4 The operation of Motorized trail bikes, and ATVs (all‑terrain vehicles) is prohibited within the Park except as specified in 5.7 below. The operation of Motorcycles is prohibited beyond Togue and Matagamon gatehouses within the Park. Unless further restricted for safety reasons, bicycle use within the Park shall be restricted to maintained roads and the Dwelley Pond Trail. Bicycle use is allowed on the Abol Stream Trail December 1 to April 1.

5.5 Take-off and landing of aircraft in the Park is prohibited except on Matagamon, Nesowadnehunk, and Webster Lakes. Persons landing aircraft on permitted waters in the Park must register with Park Headquarters or a gatehouse in advance. "Aircraft" is defined to include any machine or device capable of deriving support in the atmosphere from the reactions of the air, including, but not limited to model craft, hot air balloons, hang gliders, para-sails, para-gliders and unmanned aerial vehicles (UAVs). The possession or use of a UAV within the Park boundaries is prohibited. UAVs may be transported through the Park if kept in a car trunk, enclosed in a case, or otherwise inaccessible to use.

5.6 All boats and canoes left in the Park and not registered with Park Headquarters will be disposed of as abandoned property. The use of motor boats or outboard motors in the Park is prohibited except on Matagamon, Nesowadnehunk, and Webster Lakes. Outboard motors of ten (10) horsepower or less are permitted on Upper and Lower Togue Ponds.

5.7 Snowmobiles and ATVs (all terrain vehicles) may be used on (the frozen surface of) Matagamon, Nesowadnehunk, Webster Lakes, and Lower Togue Pond. Snowmobiles may be used on the following road or trail segments within Baxter State Park:

5.7A. The Park Tote Road between the southern Park boundary at so-called Caribou Pit and the Park boundary just south of Matagamon Landing;

5.7B. The so-called Logan Pond Road along the north shore of Lower Togue Pond;

5.7C. The spur road between the Park Tote Road and Camp Phoenix; and

5.7D. The existing trail along the East Branch of the Penobscot River from Second Lake Matagamon to the northern boundary of the Park.

Unauthorized use of snowmobiles in any other portion of the Park is prohibited. Operators of snowmobiles must comply with all requirements of State Law.

6. ADMINISTRATION

6.1 The Authority may from time to time establish fees for the use of the Park by the public.

6.2 All groups of five (5) or more persons under 16 years of age must be accompanied by at least one (1) person, of at least 18 years of age, responsible for the supervision of a maximum of five (5) youths.

6.3 During periods of forest fire danger or other emergency conditions , the Authority or Director may close the Park or any portion thereof. No person may enter or remain in closed areas except as authorized by the Authority or Director.

6.4 The sale or offering for sale of any object or merchandise is prohibited within Baxter State Park.

6.5 General laws of the State pertaining to alcohol and drugs apply within the Park. Maine law prohibits the drinking of alcoholic beverages in public places.

7. VIOLATIONS

A person who violates any of the rules of the Baxter State Park Authority or a condition of a permit issued under those rules commits a civil violation for which a fine of not more than $1,000 may be adjudged. Persons violating other applicable laws within the Park may also be punished in accordance with the provisions of those laws. In addition, persons violating these rules may be required immediately to leave the Park, and the Authority may revoke the privilege of any person who violates these rules to enter the Park for a specified period.

Baxter State Park, 64 Balsam Drive, Millinocket, ME 04462 (207) 723-9616

baxterstatepark.org TTY: (207) 723-4419

History

• STATUTORY AUTHORITY: 12 M.R.S. §903.1
• EFFECTIVE DATE: June 30, 1978 - refiling under APA, filing 78-18
• AMENDED: November 20, 1978 - filing 78-365 (EMERGENCY)
• AMENDED: December 21, 1978 - filing 78-410
• AMENDED: January 26, 1980 - filing 80-36
• AMENDED: December 27, 1981 - Sections 3, 4, 5, 19, 23, filing 81-314
• AMENDED: January 18, 1982 - Section 24 added, filing 82-7
• AMENDED: January 15, 1985-- Sections 3, 4, 5, 6, 7, 8, 11, 18, filing 85-11
• AMENDED: June 27, 1987 - Section 4, filing 87-230
• AMENDED: April 3, 1988 - Sections 3, 5, 6, 7, 8, 21, 24, filing 88-94
• AMENDED: September 25, 1990 - Sections 3,5, 7, 18, filing 90-412
• AMENDED: December 26, 1990 - Sections 3, 5, 7, 18, filing 90-561
• AMENDED: March 28, 1991 - Section 3, filing 91-123 (EMERGENCY)
• AMENDED: August 25, 1991 - Section 3, filing 81-323
• AMENDED: August 25, 1991 - Sections 3, 4, filing 91-324
• REPEAL & REPLACE: February 21, 1994 - filing 94-54
• AMENDED: May 28, 1995 - Section 19, filing 95-210
• AMENDED: May 28, 1995 - Section 21, filing 95-211
• AMENDED: May 28, 1995 - Section 22, filing 95-212
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 13, 1996 - filing 96-117
• AMENDED: April 21, 1998 - Section 22, filing 98-177
• NON-SUBSTANTIVE CORRECTIONS: June 29, 1998 - minor spelling and formatting.
• AMENDED: February 15, 1999 - Section 31 added, filing 99-69
• NON-SUBSTANTIVE CORRECTIONS: November 6, 2002 - minor formatting and punctuation, history notes
• AMENDED: February 12, 2006 – filing 2006-73
• NON-SUBSTANTIVE CORRECTIONS: May 10, 2006 – Sections 21 and 22
• AMENDED: August 25, 2008 – Sections 5, 6, 7, 11, 12, 13, 16, 18, 20 and 25, filing 2008-372
• REPEALED AND REPLACED: July 21, 2010 – filing 2010-274
• AMENDED: January 19, 2013 – filing 2013-007
• AMENDED: January 11, 2014 – filing 2014-004
• AMENDED: June 1, 2015 – Section 5(5.5, 5.6) - filing 2015-104
• AMENDED: March 4, 2017 – Section 1.2 – filing 2017-034
• AMENDED: March 4, 2017 – Section 1.3 – filing 2017-035
• AMENDED: March 4, 2017 – Section 5.5 – filing 2017-036
• AMENDED: March 4, 2017 – Section 5.6 – filing 2017-037
• AMENDED: January 19, 2019 – filing 2019-010
• AMENDED: March 9, 2020 – Section 4.5 – filing 2020-038
• AMENDED: March 27, 2022 – Sections 1.2, 3.1, 4.6, 5.4, 5.5 – filing 2022-042
• AMENDED: August 20, 2023 – Section 2.2 – filing 2023-132
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 2 Rules for the Purchase of Services and Awards

Code Me. R. 94-293 Ch. 2 Rules for the Purchase of Services and Awards {#sec-94-293-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--94-293 Ch. 2}

Summary: This chapter outlines the procedures to be used in the purchase of services and the awarding of grants and contracts pursuant to 12 M.R.S.A. §908(2).

SECTION 1. DEFINITIONS

A. REQUEST FOR PROPOSAL: Means a document listing the scope of work, requirements of the Park, and all evaluation criteria for a service needed by the Park. This document is also known by the initials "RFP."

B. CONTRACT: Means the agreement between a vendor and the Park, describing the service to be performed, the terms and conditions agreed to by the parties, the cost of the service, and how payment will be made.

C. GRANT: Means an agreement between a group, organization or other recipient and the Park which describes terms and conditions and scope of performance or action which is expected of the recipient.

SECTION 2. REQUEST FOR PROPOSAL PROCEDURE

A. All contracts issued by or for the Park which do not qualify as sole source, emergency or waiver procurements must be competitively bid using the Request for Proposal.

i. The request for proposal must contain at a minimum a clear definition (scope) of the project, the evaluation criteria and relative scoring weights to be applied, the proposal opening date and time, and agency contact person.

aa. Cost of the contract must be included in the evaluation criteria and must receive a minimum of 25% of the total weight of all criteria.

bb. All proposals shall be opened publicly at the Headquarters of the Park in Millinocket, Maine, or such other location as set forth in the RFP. Proposals received after the advertised opening time shall be rejected, unless the advertised opening date and time have been extended by the Director of the Park due to circumstances requiring such an extension of time.

ii. Request for proposals must be advertised for a minimum of three (3) consecutive weeks in the local Millinocket newspaper, allowing a minimum of fifteen (15) calendar days from the final day of advertising to the proposal opening date. This section does not limit advertising in any other publication, trade publication or other media.

aa. Advertisements must include at a minimum a brief description of the service requirements of the Park, the name of the department and division issuing the RFP, the name of the contact person and address where copies of the RFP can be obtained, the opening date, the opening time and the opening location: Baxter State Park, 64 Balsam Drive, Millinocket, Maine 04462.

iii. Pre-Bidders conferences are allowed, but are not required. These conferences are used to be certain that all bidders have an equal understanding of the Park requirements.

aa. Pre-Bidders conferences must be advertised within the RFP advertisement, including location, day and time. Conference must be scheduled a .minimum of seven (7) calendar days from the final day of advertising and a minimum of two (2) weeks prior to proposal opening date. The Director of the Park may authorize a pre-bidders conference on shorter notice that has not been advertised in the RFP. The Park shall notify all prospective bidders who requested the RFP of the date and time of the conference under these circumstances.

bb. Conferences must be open to the public, questions raised must be documented in writing, and responses must be written and forwarded to each prospective bidder who received an RFP, whether in attendance or not.

cc. No alterations or changes to any requirement or specification within the original RFP can be made without notifying all bidders in writing a minimum of seven (7) calendar days before opening date.

iv. Proposals shall be opened publicly at the Headquarters of the Park or a nearby appropriate facility at the discretion of the Director of the Park. The opening of proposals shall be open to public attendance. The name of the respondent will be read aloud. No other information will be made available prior to evaluation and award notification. All proposals shall be sequestered from this time until notification of award by the Director after which time they become public record.

Proposals received at the Headquarters of the Park later than the date and time specified will not be accepted and will be returned unopened or held at the Park to be picked up by the respondent. Late proposals not picked up within seven (7) calendar days will be destroyed.

v. A written record of the vendor names, date and time received, cost/price and agency representative shall be kept at the Headquarters of the Park.

SECTION 3. AWARD

A. The Park staff is responsible for reviewing all RFP's based on the criteria established within the original Request for Proposal document. The Park staff shall document the scoring, and substantive information that supports the scoring.

i. Interviews/Presentations: Interviews and/or presentations may be considered within the review for information and scoring, if that provision was included within the original RFP documentation.

ii. Pricing/Negotiations: Pricing changes, alterations or negotiations are not allowed prior to the award decision and must not be used in scoring. Minor negotiations after notice of award are allowed and if agreement cannot be reached, the proposal may be rejected and the award made to the next highest rated bidder who was in compliance with all terms, conditions and requirements.

iii. Documentation: Written records must be kept by each person reviewing or ranking proposals. These records must be made available upon request.

iv. Award: Award is made by the Director of the Park, and must be made to the highest rated proposal, which conforms to the requirements of the Park as contained in the RFP.

v. Award Decision Notification: The Park staff must notify all bidders responding to an RFP of the award decision in writing, postmarked or delivered a minimum of seven (7) calendar days prior to contract effective date, unless otherwise stated in the RFP.

B. Attorney General approval is not required unless changes have been made to existing boilerplate or at the request of the Baxter Park Authority. Nothing within this paragraph prevents Park requests for Attorney General review of any contract.

SECTION 4. WAIVER

The competitive bidding may be waived by the Director of Baxter State Park when:

A. The procurement of goods or services is $10,000 or less, and procurement from a single source is the most economical, effective and appropriate means of fulfilling a demonstrated need;

B. The Director is authorized by the Chairman of the Authority, or another member of the Authority if the Chairman is unavailable, to make purchases without competitive bidding because in the opinion of the Chairman or such other member an emergency exists that requires the immediate procurement of goods or services;

C. After reasonable investigation by the Director of the Park, it appears that any required unit or item of supply, or brand of that unit or item, is procurable by the Park from only one source;

D. The purchase is part of a cooperative project involving any agency of the state or federal governments, any institution of learning, or any non-profit entity;

E. The procurement of goods or services involves expenditures of $5,000 or less, in which case the Director of the Park, or his designee, may accept oral proposals or invitations to bid; or

F. The purchase is part of forestry, wildlife, or road construction or maintenance activities within the Park, including the Scientific Forestry Management Area, taking into consideration the unique trust responsibilities related thereto.

History

• STATUTORY AUTHORITY: 12 M.R.S.A. §908(2)
• EFFECTIVE DATE: August 25, 2008
• AMENDED: July 21, 2010, filing 2010-275
• AMENDED: 94-293 Chapter 2 page 4

94-335 Wells National Estuarine Research Reserve Management Authority

Chapter 1 Rules for Public Use of Wells Reserve

Code Me. R. 94-335 Ch. 1 Rules for Public Use of Wells Reserve {#sec-94-335-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-335 Ch. 1}

SUMMARY: The Wells National Estuarine Research Reserve was established under 15 Code of Federal Regulations, Part 921. It is maintained to provide undisturbed areas as a natural field laboratory and educational site. This includes the protection of the area for short and long-term research, education, and interpretation. The Wells National Estuarine Research Reserve is also maintained to protect fish, wildlife, and plant communities. Multiple uses including low intensity recreational uses are allowed to the extent that they do not conflict with the operation of the Reserve for research and education.

The Wells National Estuarine Research Reserve Management Authority (the Authority) was established by the State legislature through passage of Private and Special Law #108 in 1990. The legislation was amended in 2003 by LD #777 and in 2013 by LD #987. The purpose of the Authority is to manage and sustain the coastal lands and other resources within the reserve, further coordination and cooperation among State agencies, the Town of Wells, the United States Fish and Wildlife Service, and the Laudholm Trust, develop and implement programs for estuarine research and education and provide public access and opportunities for public enjoyment compatible with the protection of the reserve's natural resources. The Authority, in compliance with the Reserve’s Management Plan, is responsible for management of the Reserve lands for which the Authority holds a license, lease or other interest or lands that are under agreement with a cooperating agency. The Authority has overall jurisdiction over the establishment and coordination of research, education, and resource management policies for the Reserve. A violation of the rules of the Reserve is a Class E crime.

This chapter outlines the regulations governing the administration and public use of the Wells National Estuarine Research Reserve (Wells Reserve).

1. Regulations for Administration and Public Use of Wells Reserve

(A) Reserve regulations are superseded by US Fish and Wildlife Service regulations on the property of the Rachel Carson National Wildlife Refuge and the submerged lands of the Bureau of Parks and Lands at the Maine Department of Agriculture, Conservation, and Forestry.

(B) Any use of the Reserve and its facilities may be suspended by the Wells Reserve’s Executive Director without advance notice.

(C) DEFINITIONS

(1) "Authorized Official" means any federal, state, or local official empowered to enforce provisions of these regulations.

(2) "Daylight Hours" means the hours between 7 a.m. and Sunset.

(3) "Group" means any assemblage of people larger than nine people.

(4) "Laudholm Property" describes approximately 400 acres of land and the buildings within the northern section of Wells National Estuarine Research Reserve and bounded by the Little and Merriland Rivers and Drakes Island Road. This area, containing the Wells Reserve visitor center, parking lot, and developed trails, comprises the primary contact point for Wells Reserve visitors. The Laudholm Property is part of a State of Maine-designated “Wildlife Sanctuary” (see §1-C-8 below).

(5) "Laudholm Trust" is a 501(c) (3) public charitable trust whose purpose is to support the programs, facilities, and land of the Wells National Estuarine Research Reserve.

(6) "Wells Reserve" means the Wells National Estuarine Research Reserve.

(7) "Wells National Estuarine Research Reserve" means all buildings, lands, waters, and interests administered as part of the Wells Reserve. These areas include land owned by the Town of Wells, the State of Maine Department of Agriculture, Conservation, and Forestry/Bureau of Parks and Lands, the Authority, and the United States Fish and Wildlife Service included within the boundaries of the Reserve as agreed in various memoranda of understanding.

(8) “Wildlife Sanctuary” means specific lands designated by the State of Maine to protect animals and plants as outlined in Maine law 12 M.R.S. §§ 12701, 12706, 12707.

(9) “Public Access Points” includes the public parking lot on Skinner Mill Road, the Service Entrance on Laudholm Farm Road; and the trailheads on Skinner Mill Road, Laudholm Farm Road, and Drakes Island Road.

(D) PUBLIC ENTRY AND ACCESS

(1) The primary use of the Wells Reserve shall be for research and education by scientists, educators, the public, and school children.

(2) Recreational uses, including but not limited to sightseeing, nature observation and photography, fishing, swimming, boating, and picnicking, are permitted subject to State and Federal laws and Municipal Ordinances.

(3) No person shall trespass, including but not limited to entering, occupying, using, or being in the Wells Reserve except as specifically authorized in these regulations.

(a) Pedestrian access is limited to daylight hours and established trails. Entrance fees will be assessed as described in § 1. I (1).

(b) Vehicular access to the Wells Reserve is restricted to the parking lot at Laudholm Property during daylight hours. Entrance fees will be assessed as described in 1. I (1).

(4) Hours or areas of entry may be modified by special permit by the Executive Director.

(E) PUBLIC NOTICE

(1) Whenever public access, use, or activity previously permitted is curtailed, the Public may be notified by any of the following methods:

(a) official signs posted conspicuously at appropriate intervals;

(b) special regulations posted and available in the Reserve’s Visitor Center

(c) maps available in the Reserve’s Visitor Center;

(d) other appropriate methods which give the public actual or constructive notice of permitted or curtailed public access, use, or activity.

(F) PERMITS

(1) Permits required by these regulations can be obtained at the administrative office in the Reserve’s Visitor Center.

(a) Any person in the Wells Reserve shall, upon request of any authorized official, exhibit the required federal, state, local, or Reserve permit or license authorizing their presence and activity on the area and shall furnish such other information for identification purposes as may be requested.

(b) The following activities require permits:

(i) Use of the Reserve for any scientific research, including sampling and collecting of specimens and the use of scientific instruments.

(ii) Deer hunting on the Laudholm Property, which is a State of Maine-designated Wildlife Sanctuary.

(2) The Executive Director may issue special permits to allow use of special access not normally allowed.

(3) A permit may be terminated or revoked at any time for:

(a) non-compliance with the terms thereof or of these regulations;

(b) non-use

(c) violation of any law, regulation, or order applicable to the Wells Reserve or to protect public health or safety or the resources of the Wells Reserve.

(G) PROHIBITED ACTS AND RESTRICTIONS

(1) Taking or introducing natural objects, harassing wildlife, starting fires, walking off designated trails, bike riding on trails, littering, camping

(a) No person may remove any animal, plant, rock, mineral, or other natural object from within the Wells Reserve with the following exceptions:

(i) Shellfish and game fish may be taken by persons duly licensed and permitted by the appropriate federal, state, or local agency in specially designated areas.

(ii) Collecting for the purpose of management related research may be done by permit from the Executive Director.

(b) No person shall camp overnight within the Wells Reserve.

(c) No plant or animal or their parts may be introduced or released into the Wells Reserve except native species under special permit from the Executive Director.

(d) No person shall light or maintain fires within the Wells Reserve.

(e) No person shall harass or disturb wildlife within the Wells Reserve.

(f) No person shall litter within the Wells Reserve.

(g No person shall ride a bike on the walking trails of the Wells Reserve.

(h) All persons shall remain on the designated trails of the Reserve.

(i) No person shall operate Unmanned Aerial Vehicles (“drones”) or other remote-controlled air, water, and terrestrial craft within the Wells Reserve.

(j) No person shall release helium-filled balloons within the Wells Reserve.

(k) No person shall Open Carry firearms within the Wells Reserve.

(2) Vehicles

(a) Travel or use of any vehicle, including but not limited to automobiles, off-road vehicles, golf carts, motorcycles, bicycles, and mopeds shall be limited to access roads and parking areas.

(b) Vehicles shall be parked only in places designated for that purpose.

(c) Stopping, parking, or leaving any vehicle so as to obstruct the free movement of other vehicles or persons is prohibited, except in the event of accident or other condition beyond the control of the operator.

(f) All persons shall obey the lawful order or signal of any authorized official directing, controlling, or regulating the movement of traffic.

(3) Pets

With the exception of service animals, domestic pets are prohibited from the Wells Reserve.

(4) Smoking

(a) Smoking and other tobacco products, vaping, and electronic cigarettes are prohibited throughout the Wells Reserve except at one designated location in the public parking lot.

(H) OTHER APPLICABLE LAWS

(1) Violation of these regulations is a Class E Crime.

(2) Nothing in these regulations shall be construed to relieve a person from the obligation to comply with any other applicable requirements imposed by a local ordinance or by a statute or regulation of the State of Maine or of the United States.

(I) FEES

(1) A seasonal entrance fee is charged at all public access points beginning on the Saturday directly before Memorial Day through Columbus Day. Dues-paying members of Laudholm Trust are admitted free of charge.

(2) The entrance fee is reviewed, established, and approved before the start of the calendar year by the Authority. A schedule of fees is available at the administrative offices of the Reserve

2. Policy for Reserve Educational Programs and Group Use of Trails and Education Facilities

(A) GROUPS

(1) All group requests for use of the Reserve's environmental educational facilities and trails shall be referred to the Education Program Staff.

(2) Any group found violating Reserve rules or trail etiquette may be required to leave and refused future use of Reserve environmental education facilities.

(3) Reservations are required for all group visits of 10 people or more; reservations may be made by calling the Education Program staff.

(4) Children 15 and under must always be accompanied by an adult; and there must be one adult for every 10 children.

(5) Staff guided tours of Reserve environmental education facilities and trails are available for pre-kindergarten children through senior citizen audiences year round.

(B) FEES

(1) Fees for educational programs, facility use, and group use of the Wells Reserve are reviewed and established annually and are approved by the Authority before the start of each calendar year. A schedule of fees is available at the administrative offices of the Reserve

3. Policy for the use of Wells Reserve Facilities by Non-Related Organizations for Non-Reserve Related Activities is established in recognition of the fact that they will build public support and raise funds for the Reserve.

(A) DEFINITIONS

(1) "Non-Reserve Related Activities" include weddings, receptions, festivals, anniversary parties, company parties, meetings, retreats, events, etc.

(2) "Non-Related Organizations" means any group or individual, commercial or non-profit, that does not have as its primary mission and focus environmental science, education, and conservation.

(B) ORGANIZATIONAL USE OF RESERVE FACILITIES

(1) The Executive Director will accept or deny, pursuant to these regulations, requests for use of Wells Reserve facilities by other organizations. A Building Advisory Committee is available to assist the Executive Director in any decisions regarding the appropriateness of a request, fee, deposit or other issue. Visitors to any gathering at the Reserve are encouraged to visit the web site of the Wells Reserve.

(2) Any organization or individual ("Lessees") using Wells Reserve facilities shall defend or cause to be defended and to indemnify and hold harmless the Wells National Estuarine Research Reserve Management Authority and staff from and against any and all manner of claims, suits, expenses, damages or causes of action for damages arising out of, or allegedly arising out of, in whole or in part, the use or occupancy of the Wells Reserve facilities by the Lessee, its agents, contractors, employees and invitees.

(3) Fundraising or profit-making events are not permitted at the Wells Reserve and its Laudholm Property by any organization for any reason other than exclusively for support of the Wells Reserve.

(4) Public events sponsored by an entity other than Wells Reserve are permitted at Wells Reserve facilities with permission.

(C) FEES

(1) Fees for the use and rental of Wells Reserve facilities and land by Non-Related Organizations are reviewed, established, and approved by the Authority before the start of each calendar year. A schedule of fees is available at the administrative offices of the Wells Reserve.

History

• STATUTORY AUTHORITY: P&SL 1989, Chapter 108, Section 2; Section 3, subsections 1-7; Section 5, subsections 8, 9
• EFFECTIVE DATE: May 9, 1992 – filing 92-179
• EFFECTIVE DATE (ELECTRONIC CONVERSION): March 23, 1996 – filing 96-106
• NON-SUBSTANTIVE CHANGE: January 26, 1999 - converted to Microsoft Word format
• AMENDED: March 30, 2014 – filing 2014-051
• CORRECTION: April 24, 2014 – Section 2 numbering
• AMENDED: January 19, 2019 – filing 2019-004
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-348 Maine Human Rights Commission

Chapter 2 Procedural Rule

Code Me. R. 94-348 Ch. 2 Procedural Rule {#sec-94-348-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 2}

DESCRIPTION: The following rule describes the process by which complaints of discrimination will be filed, processed, and considered by the Maine Human Rights Commission, with the exception of complaints alleging unlawful education discrimination, which are governed by this rule and by Chapter 4-A.

2.01 DEFINITIONS

All terms used in these regulations, unless the context otherwise indicates, shall have the same definition as in the Maine Human Rights Act , 5 M.R.S. §§ 4551 et seq . (the “Act” or “MHRA”).

2.02 COMPLAINTS

A. Who may file

(1) Any aggrieved person may file a complaint with the Maine Human Rights Commission (the “Commission”).

(2) Any employee of the Commission may file a complaint with the Commission alleging an act or practice of unlawful discrimination.

(3) If the aggrieved person is a minor child at the time of filing, the named party in a complaint must be the child’s parent or legal guardian, filing on behalf of the minor child, and the child’s name will remain confidential until the child reaches the age of majority. If the aggrieved person reaches the age of majority while the complaint is pending at the Commission, the investigation will continue with the aggrieved person proceeding on their own behalf without requiring amendment of the complaint.

B. Contents

A complaint should briefly set forth the facts and circumstances surrounding the alleged discrimination.

C. When to file

A complaint of discrimination must be filed with the Commission not more than 300 days after the act of alleged discrimination occurred.

D. Where to file

Complaints must be filed at the office of the Maine Human Rights Commission, 51 State House Station, Augusta, Maine 04333-0051; complaints filed with the Equal Employment Opportunity Commission (“EEOC”) and the United States Department of Housing and Urban Development (“HUD”) pursuant to work sharing agreements between the Commission and EEOC and HUD shall be deemed filed with the Commission on the date of filing with EEOC or HUD.

E. How to file

A complaint may be filed by filling out a form provided by the Commission or by EEOC or HUD pursuant to work sharing agreements between the Commission and EEOC or HUD. Complaints must be sworn to under oath by the aggrieved person (hereinafter, the “Complainant”) before a Notary Public or other person authorized by law to administer oaths, or before a representative of the EEOC or HUD pursuant to work sharing agreements signed between the Commission and the EEOC and HUD.

Upon request, Commission staff will assist in the preparation of the necessary complaint forms as follows. Aggrieved persons may provide information by mail, telephone, or email, or through the Intake Questionnaire on the Commission’s website (www.maine.gov/mhrc). Commission staff may request that intake forms be prepared and submitted. If the information received alleges a violation of the Act, Commission staff will reduce the information to writing on the appropriate complaint form and send it to the aggrieved person to be notarized and filed with the Commission. If the information received does not appear to allege a violation of the Act, the Commission will notify the aggrieved party and provide them with a blank complaint form, which the aggrieved party may prepare and file without the Commission’s assistance.

A signed, notarized complaint may be filed in person at the Commission’s office in Augusta, by mail, or electronically (by email or via a portal system if adopted by the Commission). If the complaint is filed electronically, it will be considered filed on the business day when it is received (so long as it is received during Commission business hours). If the complainant is initially filed electronically, the Complainant must promptly file an original version of the signed, notarized complaint in person or by mail. If the complaint is not received by the Commission during its business hours, the complaint will be considered filed on the next business day.

F. Amendment of complaints

Complaints may be amended to cure technical defects or omissions, including failure to swear to the complaint under oath before a Notary Public, or to clarify and amplify allegations made therein. Such amendments and amendments alleging additional acts that constitute unlawful practices related to or growing out of the subject matter of the original complaint will relate back to the date the complaint was first received. Amendments to complaints must be sworn to under oath by the Complainant.

Amendments otherwise allowable but made without sufficient time to allow the Commission’s investigator to conduct a timely preliminary investigation prior to the expiration of the Commission’s jurisdiction shall be accepted for filing, and, absent extraordinary circumstances, shall be included in the final Investigator’s Report with a recommendation of “no reasonable grounds”.

G. Withdrawal of complaints

A complaint may be withdrawn at any time, by written request, prior to the issuance of a statement of finding by the Commission, by the Complainant provided, however, that where the investigation and processing of a complaint has been completed and an Investigator’s Report issued prior to the receipt of a written request for withdrawal, withdrawal is subject to Commission approval. Upon notification or approval of withdrawal, the Commission shall cease its investigation.

If Complainant makes a request for withdrawal after an Investigator’s Report has been issued, the Commission’s Executive Director will present the request to the Commission at a public proceeding along with their recommendation as to whether the request should be granted or not. If the request is not granted, the case will proceed to be decided by the Commission.

(2) Withdrawal of an individual complaint will not, however, preclude the investigation and processing of any complaint filed by any employee or member of the Commission, which alleges the same acts of discrimination.

H. Administrative dismissal

The Commission's Executive Director may, in their discretion, administratively dismiss complaints of discrimination for reasons including, but not limited to, the following:

(1) lack of jurisdiction;

(2) failure to substantiate the complaint of discrimination;

(3) failure to file a complaint of discrimination within 300 days of the date of alleged discrimination;

(4) failure by complainant to proceed or cooperate with the investigation, including (but not limited to) a complaining party’s repeated or egregious failures to abide by the Commission’s confidentiality requirements;

(5) bankruptcy filing by the person or persons against whom the complaint has been filed (hereinafter, the Respondent); or

(6) death of Complainant, if no person with legal authority to continue the case appears on behalf of themselves or the Complainant’s estate within a reasonable time.

Immediately following administrative dismissal, the Commission shall notify the complainant and the respondent of its action, and shall inform the complainant of her/his right to proceed pursuant to 5 M.R.S. §4621. An administrative dismissal operates as an order of dismissal and has the same effect as a finding by the Commission that no reasonable grounds exist to believe that unlawful discrimination has occurred, except that an administrative dismissal pursuant to paragraph (3) does not entitle the complainant to an award of attorney’s fees, civil penal damages or compensatory and punitive damages.

Requests for Reconsideration: Requests for reconsideration of the Executive Director’s decision to administratively dismiss a complaint may be made only by a party to the complaint or by a member of the Commission’s staff. Requests for reconsideration shall be made only where there has been a significant factual or legal error or omission, or to bring forth new information that could not have been presented previously. All requests for reconsideration shall be subject to the discretion of the Executive Director.

I. Notice of Right to Sue

A right to sue letter may be requested by a complainant, in writing, 180 days or more after the filing of a complaint with the Commission. If the Commission has not filed a civil action in the case or has not entered into a conciliation agreement in the case, the Commission's Executive Director or their designee shall issue a right-to-sue letter, provided, however, that where the investigation and processing of the complaint have been completed and an Investigator's Report issued prior to the receipt of a written request for a right-to-sue letter, the issuance of the right-to-sue letter is subject to the Commission's approval. If Complainant makes a request for a right-to-sue letter after an Investigator’s Report has been issued, the Commission’s Executive Director will present the request to the Commission at a public proceeding along with their recommendation as to whether the request should be granted or not. If the request is not granted, the case will proceed to be decided by the Commission. Upon issuance of the right-to-sue letter, the Commission shall end its investigation.

J. Conflict of Interest

(1) As used in the subsection, "conflict of interest" means that:

a) a Commissioner or a member of their immediate family (used herein to include a Commissioner’s spouse/domestic partner, parent, grandparent, sibling, child, and/or grandchild, including step-, in-law, and adoptive/foster relationships) has an adverse or pecuniary interest as defined by 5 M.R.S. §18; or

b) a Commissioner or a member of their immediate family is a complainant or respondent in a case under investigation or is a witness involved in the investigation; or

c) a Commissioner or a member of their immediate family is an employee or member of an entity that is a party in a case under investigation by the Commission, or an employee or member of an entity operating as an advocate for a party appearing before the Commission.

(2) The Commission will not provide any information to a who is a party to a complaint which it would not provide to any other respondent or complainant. If a Commissioner has a conflict of interest other than as a party to a complaint, that Commissioner will be provided only with information that would be provided to a member of the public upon request.

(3) All communications with the Commission made by the Commissioner with the conflict of interest relative to the merits of the case prior to the conclusion of the investigation as defined in 5 M.R.S. §4612(l)(B), will be directed to the investigator assigned to the case, not to the Executive Director, the Commission Counsel, or any other Commissioner. All such communications will be noted in the case file. Unless the Commissioner with the conflict of interest is a party to the case, they shall not make any statements or suggestions regarding the outcome of the case to the investigator.

(4) Any Commissioner who has a conflict of interest in a case before the Commission will excuse themselves from the Commission proceeding affecting that case pursuant to Rules 2.07 and 2.08.

(5) A Commissioner who has no conflict of interest that falls within the definition provided above, but feels that they may be unable to decide a case fairly or who may be perceived as having a conflict of interest, may choose to excuse themselves from the Commission decision affecting that case, upon their own request, upon request of a party to the case, or upon recommendation by Commission Counsel or the Executive Director.

2.03 NOTIFICATION

Within 21 days after a complaint has been pre-screened, notarized, filed, and assigned a case number, the Respondent, will be notified and provided with a copy of the complaint. The Complainant will be provided with a copy of the notification. The notice will advise the parties of time limits applicable to complaint processing under this chapter and of the procedural rights and obligations of the parties under the MHRA and this chapter; the complainant’s right to commence a civil action in the Superior Court; and that it is unlawful to discriminate against any person because the person made a complaint or testified, assisted, or participated in an investigation, proceeding, or hearing under the Act. If the complaint alleges violation of the MHRA that relates to a disability, the medical/disability information may be redacted from the complaint sent with notification to the Respondent; once the Respondent provides a signed agreement to maintain information it learns through the Commission process as confidential, the Commission will upon request send an unredacted copy of the complaint to the Respondent.

2.04 EARLY RESOLUTION SETTLEMENT

A. Subsequent to notification and separate from the investigation of the allegations in the complaint, the Commission’s Executive Director or their designee will provide an opportunity to the parties for discussion of settlement. This may but is not required to include an opportunity for the parties to participate in a third-party neutral mediation program established by the Commission. Such a third-party neutral mediation program may permit one or more parties to a complaint to agree to pay the costs of mediation. The Commission may approve the receipt of funds from any source for the purposes of implementing and administering a third-party neutral mediation program.

Participation in the third-party neutral mediation program will not operate to toll any deadline associated with the investigation of the complaint.

Complaints will not be referred to the third-party mediation program until all of the initial documents (complaint, response from respondent, complainant’s reply to respondent’s response) have been received by the Commission.

B. Evidence of conduct or statements made in settlement negotiations, mediation, settlement offers, and any final agreement reached prior to a determination by the Commission, are confidential and may not be disclosed without the written consent of the parties, or used as evidence in any subsequent proceeding, except in an action for breach of the agreement. Notwithstanding this provision, the Commission and its employees have discretion to disclose such information to a party as is reasonably necessary to facilitate settlement.

C. Prior to a determination by the Commission of whether there are reasonable grounds to believe that unlawful discrimination has occurred, if the matter is resolved to the mutual satisfaction of the parties and to the satisfaction of the Commission’s Executive Director or their designee, the Executive Director or their designee shall have the authority to sign any settlement agreement on behalf of the Commission, together with the parties. When the Commission agrees in any negotiated settlement not to process that complaint further, the Commission's agreement shall be in consideration for the promises made by the other parties to the agreement. The complaint will be dismissed by the Commission’s Executive Director or their designee upon ascertainment that the terms of settlement have been met. In order to facilitate the ascertainment that the terms of settlement have been met, the parties shall provide the terms of any agreement between them to the Executive Director or their designee upon request. Any information provided to the Executive Director for this purpose shall remain confidential, except that settlement information may be reported to the Commission and to EEOC or HUD if the case is dual-filed. Failure to provide the required information may result in a delay in the dismissal of the complaint.

D. In the alternative, the Commission’s Executive Director or their designee or a mediator assigned pursuant to a third-party neutral mediation program established by the Commission may facilitate a settlement between the parties resulting in the withdrawal of the complaint pursuant to 2.02(G). It is a condition of the use of the Commission’s third-party neutral mediation program that the terms of any agreement reached by the parties, whether at the mediation or subsequently, will be provided to the Executive Director or their designee. Any information provided to the Executive Director for this purpose shall remain confidential, except that settlement information may be reported to the Commission and to EEOC or HUD if the case is dual-filed.

E. The Commission specifically delegates to its Executive Director and its Commission Counsel the authority to approve and execute predetermination settlement agreements in the name of the Commission.

2.05 INVESTIGATION

After a complaint has been pre-screened, notarized, filed, and assigned a case number, a Commission investigator will conduct such preliminary and impartial investigation as is necessary. An investigation may involve meetings, conferences, and interviews with the complainant, the respondent, and any other persons whose statement may provide a source of evidence, but is not required to involve any particular investigative method. The investigator may record, by mechanical, electronic or other means, all statements by all persons involved. If the investigator calls for a meeting or conference, the parties shall be given reasonable advanced notice.

Any submission made by a party (or their attorney/representative) to the Commission must also be provided to all other parties to the case (or to their attorneys/representatives). Submissions provided by a party to another party shall be kept confidential during the course of the investigation, pursuant to section G(2), below. The parties should attempt to agree on a method for exchanging documents; a party making an electronic submission to the Commission must confirm whether the other parties are able to receive electronic submissions, and must send a physical copy to any party unable to do so. All submissions to the Commission shall contain a statement affirming that the submission was sent simultaneously to all other parties, and identifying the means of production to each of them.

C. The Commission's investigator shall have access at all reasonable times to premises, records, documents, individuals and other evidence or possible sources of evidence and may examine, record and copy such materials and take and record the testimony or statements of such persons as are reasonably necessary for the furtherance of the investigation. The Commission’s investigators are hereby delegated the authority to administer oaths. The investigator shall maintain a written record of all interviews. The parties shall have the right to review the interview record, but the timing of such review shall be subject to the investigator’s discretion.

D. Any party, witness, or attorney who makes an audio and/or visual recording of any portion of the Commission’s investigation shall not do so without first notifying the Commission’s investigator. If such a recording is made, the person making it must provide the Commission with a copy of the entire recording, or the recording may not be introduced into the investigation.

E. Documents, records, files or other possible sources of evidence shall be produced within the time specified by a Commission representative's written request for their production, unless the person possessing them shows cause to the Commission's representative that production within the time specified would impose an unjustifiable burden. Excessive delay or failure to produce the requested materials may result in the issuance of a subpoena by the Commission for their production. In the alternative, or in the event that the party still fails to provide the requested information after it is subpoenaed, the investigator may draw an adverse inference against the party which refuses to produce requested information.

Any information submitted to the Commission after the final deadline for submissions, as set by the investigator, shall be considered by the investigator only to the extent that it appears to the investigator that the late-submitted information could change the investigator’s recommended finding(s) or it appears to Commission Counsel that the late-submitted information changes the legal sufficiency of the report.

F. Subpoena power

(1) Form. Subpoenas shall be issued in the name of the Maine Human Rights Commission, shall designate the Commission as recipient of the material or testimony specified, and shall designate a specific time and place for the production of the documents and/or testimony.

(2) When available. A subpoena may be used to compel testimony or the production of documents whenever there is reasonable cause to believe that those materials or the testimony of the persons are material to the complaint.

(3) Procedure. When the Commission's Executive Director or Commission Counsel determines that there is reasonable cause to believe that the testimony or documents withheld are material to investigation of the complaint, the Executive Director or Commission Counsel may issue a subpoena.

The subpoena shall include: the name and address of the respondent subject of the subpoena; if the subject of the subpoena is not an individual, the name of the senior officer or person in charge; a brief description of the documents requested and/or the name and title of the person(s) whose testimony is requested; and the date, time and place such production and/or testimony is requested.

If a subpoena is issued, notice must be given to the complainant and the respondent.

(4) Service. Subpoenas may be served by any person who is not a party to the proceeding and who is not less than eighteen (18) years of age. Service shall be made by delivering a copy of the subpoena to the person named therein and tendering to that person the fees and mileage paid to witnesses in the Superior Court of this State.

(5) Return. The person serving the subpoena shall make proof of service by filing the original of such subpoena and an affidavit of acknowledgment of service with the Commission. However, failure to make such proof of service shall not affect the validity of such subpoena and service.

(6) Enforcement. If any person refuses to obey a subpoena, the Commission may apply to any justice of the Superior Court for an order compelling compliance with the subpoena.

(7) Opposition. Any person served with a subpoena may oppose it by applying for judicial review in Superior Court.

G. Confidentiality

Prior to the conclusion of an investigation, all information possessed by the Commission relating to the investigation is confidential and may not be disclosed, except that the Commission and its employees have discretion to disclose such information as is reasonably necessary to further the investigation. An attorney will not be provided with information regarding an investigation prior to its conclusion unless the attorney (or the attorney’s law firm) has entered an appearance on behalf of a party to the complaint.

The parties to the complaint shall be required, as a condition of the investigation, to agree to maintain the confidentiality of all information that they learn through the Commission’s investigatory process during the pendency of the investigation, including information learned through documents produced directly by another party when those documents are produced as part of the Commission’s process. The willful failure by a party to comply with the requirement of confidentiality may result in sanctions, including, but not limited to, adverse inferences being drawn, the Commission’s refusal to provide further information in the record to the party or limiting the conditions on which information may be provided to them, and/or dismissal of the complaint.

The complaint and any evidence collected during the investigation that is a “public record” as defined by 1 M.R.S. §402, other than data identifying persons who are not parties, shall become available to the public for review and inspection, upon written request, upon issuance of a letter of dismissal or upon listing of the complaint on a published Commission meeting agenda. The complaint and evidence collected may be used as evidence in any subsequent proceeding, civil or criminal.

The following documents are considered confidential, and shall not be disclosed except to the parties to a complaint, the Commission and its federal partner agencies, or in a subsequent legal action, civil or criminal. They are not considered “public records”, and shall not become a “matter of public record” for the purposes of disclosure to the public under this section or Title 1, section 401 et seq .:

• 1. Medical, counseling, psychiatric, and other confidential health records; 2. Social security numbers; 3. Evidence of conduct or statements made in compromise settlement negotiations, offers of settlement, and final agreements made prior to the conclusion of the investigative process; 4. Names of minor children; 5. Any information the Commission is required to be keep confidential pursuant to worksharing agreements with federal partner agencies such as the Equal Employment Opportunity Commission or Department of Housing and Urban Development; 6. Criminal history record information that is not otherwise made public by law; 7. Personnel records and personal information that has been made confidential by law; 8. Notes made by the investigator for their private use in assessing evidence gathered during an investigation; and 9. Any other records that are not public records in accordance with Title 1, section 402.

The Commission may direct that confidential information be redacted from records and documents before a party provides those records and documents to the Commission. Alternately, if confidential information is provided to the Commission, and the Commission requires that information be redacted, the Commission may direct the producing party to provide the information in a redacted format.

H. Upon completion of the investigation, the Commission's investigator will make and transmit a report of the investigation together with recommendations concerning the disposition of the complaint to the complainant and the respondent. The Investigator’s Report shall be approved for legal sufficiency by the Commission Counsel or their designee before it is issued; any addendum to the Investigator’s Report required by a federal partner of the Commission may be considered confidential pursuant to 2.05(G). All parties to a complaint shall be given a reasonable opportunity to review and respond to all evidence considered by the Commission before the Investigator’s Report is issued, but the timing of any such review shall be subject to the investigator’s discretion. With respect to complaints alleging unlawful housing discrimination, unless it is impracticable to do so, the Commission will issue an Investigator’s Report within 100 days of the filing of the complaint. If the Commission is unable to do so, it will notify the complainant and respondent by mail of the reasons for the delay.

I. Upon receipt of the Investigator's Report described in 2.05(H), a party shall have an opportunity to make a written submission to the Commission setting forth specific items of disagreement with the report and/or recommendations. The written submission shall be filed with the Commission's office within twenty-one (21) days of issuance of the Investigator's Report. Only specific items of disagreement that address the following will be considered:

(1) relevant factual errors;

(2) relevant omissions of fact; and/or

(3) relevant issues and questions concerning interpretation of the law.

Written submissions may not include any facts that were not presented to the investigator during the course of the investigation. A party’s written submission shall be reviewed by the investigator, who will determine whether it contains facts which were not previously presented. If a submission contains such facts, they will be redacted by the Commission’s staff, and only those portions of the written submission remaining (if any) will be presented to the Commission. If the party making the submission disagrees with any of the redactions made, the party may, within two business days of receiving notice of the redactions, submit a written objection identifying the items of disagreement and providing citations/references to the record to establish that the fact(s) was/were previously presented. Commission Counsel will review the submissions and the record, and will make a final decision regarding the redaction(s), which shall not be subject to further review.

If it appears to Commission Counsel that the previously unpresented facts would change the legal sufficiency of the report, Commission Counsel will notify the Executive Director. The Executive Director and Commission Counsel shall confer and determine what, if any, additional investigation must be undertaken. After any additional investigation, an amended Investigator’s Report may be issued, or the Commission may take any other procedural action it deems appropriate in the circumstances.

Parties that agree with the Investigator’s recommendation shall not make a written submission unless necessary to correct a material factual error in the report. Such a submission may not be provided to the Commission.

Submissions may not be made electronically or by facsimile except by prior written permission from the Executive Director or their designee.

J. At the expiration of the twenty-one (21) day period, a Commission representative will transmit the Investigator's Report and the written matter submitted by the complainant and/or respondent (as redacted where necessary) to the Commission. Submissions received after the twenty-one (21) day period shall not be provided to the Commission and shall not be considered unless an extension of time is granted pursuant to §2.11(C).

K. The Commission must conclude its investigation within two years after a notarized complaint is filed with the Commission. An investigation is concluded for purposes of this requirement upon issuance of a letter of dismissal or upon listing of the complaint on a published Commission meeting agenda, whichever first occurs.

L. With respect to complaints alleging unlawful housing discrimination, the Commission must make final administrative disposition of the complaint within one year of the date of receipt of the complaint, unless it is impracticable to do so. If the Commission is unable to do so, it shall notify the parties, in writing, of the reasons for not doing so.

2.06 COMMISSION MEETING

Presentations

1. The Commission may allow the parties, in cases in which a written submission of disagreement with the Investigator’s Report has been made by one or more parties, to make an oral presentation on information related to the complaint of discrimination at a monthly Commission meeting. Information presented must comply with 2.05(I).
2. The Commission may impose time limits: - 1. The standard time for each party’s oral presentation shall be 10 minutes, exclusive of time spent responding directly and succinctly to questions from the Commission (extended argument after a question has been answered will be considered part of the party’s presentation time). That time may be shortened in order to ensure that all cases receive a sufficient allotment of time, based on the length of that meeting’s agenda. 2. Absent special circumstances, as determined by the Executive Director, when a case involves multiple Complainants or multiple Respondents (and when related or companion cases involve substantially similar issues and/or parties), the 10-minute time-limit will apply to the Complainants and/or Respondents collectively, and the individual parties shall allot the time amongst themselves. 3. If a party does not use their entire time allotment in their initial presentation, they may use the remaining time to rebut the opposing party’s presentation. Each party shall be allowed one presentation, and one rebuttal period. Any time remaining shall be forfeited. 4. These time limits and procedures are subject to the discretion of the Commission, which may extend time or allow further rebuttal if the Commission deems it necessary to their understanding of the case.
3. A party who did not make a written submission may make a presentation at the Commission meeting to rebut the opposing party’s presentation.
4. If the party/parties who disagree with the Investigator’s Report does not attend the meeting, despite having provided a written submission, the party/parties agreeing with the Report shall be heard only upon request of the Commission.
5. If a party wishes to request a reasonable accommodation (for example, a request for an interpreter for an individual for whom English is not their primary language) to participate at a Commission meeting, the party should make the request to the Executive Director at least five business days prior to the meeting. The request should provide information sufficient to allow the Executive Director and/or Commission Counsel to evaluate the request, such as the reason for the request ( i.e. disability, language barrier), the accommodation requested ( i.e ., captioning, in-person interpreter versus remote interpreting, dialect needed, visual alerts, extended presentation time), and (where not obvious) the connection between the protected class and the requested accommodation. When it cannot provide the specific accommodation requested, the Commission may offer alternative reasonable accommodations tailored to meet the individual’s need. If the requested accommodation (or a reasonable and effective alternative) cannot be arranged prior to the meeting, the case may be tabled in order to allow sufficient time to identify and provide a reasonable accommodation.
6. If a party intends to use any visual/illustrative aid in their presentation to the Commission, that aid must be provided to the other party and to the Executive Director at least five business days prior to the meeting so that it may be reviewed. Any visual/illustrative aid must comply with Rule 2.05(I).
7. An oral presentation to the Commission may be made only by a party to the complaint or by their legal representative. If a party wishes to be represented by an individual other than their legal representative, they must make a request to the Executive Director at least five business days before the scheduled presentation. The Executive Director shall have discretion over all such requests. In no case shall a witness in the case be allowed to participate in an oral presentation. Non-parties shall be referred to by pseudonyms only.

Meeting Protocols

(1) Inappropriate behavior, which may include but is not limited to name-calling or yelling, or the failure to abide by the Commission’s rules, rulings, or instructions by the Commission, the Executive Director, or Commission Counsel, may result in the responsible party’s presentation being summarily curtailed.

(2) If the Commission has imposed safety protocols regarding meeting attendance or participation, any person seeking to participate in the meeting who refuses to comply with or violates those procedures may be summarily excluded from the meeting by the Commission or the Executive Director or their designee.

(3) The Commission may allow for remote participation in its public proceedings pursuant to policies it establishes.

2.07 COMMISSION DECISION UNDER NON-EMERGENCY PROCEDURE

After considering the Investigator's Report, the parties’ submissions, if any, and other relevant related information that was timely provided, the Commission will make a determination of whether or not reasonable grounds exist to believe that unlawful discrimination has occurred. The Commission shall issue a statement of finding in support of its determination.

A. No reasonable grounds. If the Commission finds no reasonable grounds to believe that unlawful discrimination has occurred, it will dismiss the complaint. The Commission will promptly notify the parties of the dismissal and provide them a copy of its statement of finding.

B. (Not in use)

Reasonable grounds. If the Commission finds reasonable grounds to believe that unlawful discrimination has occurred, it will so notify the parties of its determination and provide them a copy of its statement of finding. The Commission’s Executive Director or their designee will then endeavor to resolve the matter by informal means such as conference, conciliation, or persuasion.

Tie votes. If the Commission vote results in a tie vote, the recommendation(s) made in the Investigator’s Report shall be adopted by the Commission as their finding(s).

E. New investigation. If, subsequent to a finding, the Commission determines that new or newly-discovered facts or factual errors exist, or material misrepresentations have been discovered that, if true, would likely change the finding of the Commission, it may order a new investigation of the matter. The following applies to requests for a new investigation:

A request for a new investigation must be based on new or newly-discovered facts, factual errors, or material misrepresentations.

1. “New or newly-discovered facts or factual errors” are those that were not known and could not reasonably have been known to the party making the request during the course of the investigation. If the facts or factual errors were known to the party, or reasonably could have been known, and were not provided to the investigator, they cannot be used to justify a request for a new investigation.
2. “Material misrepresentations” are intentional misrepresentations of facts upon which the Investigator relied when deciding whether a party had established the elements of a claim or defense.

A request for a new investigation may only be made by a party to the complaint or their counsel, or by a member of the Commission’s staff. The request shall be made initially to the Commission’s Executive Director, who will consult with Commission Counsel as necessary to determine whether the request is based on new or newly-discovered facts or factual errors, or on material misrepresentations. The request must be made within 30 days of the Commission’s finding.

If the Executive Director or their designee determines that the request for a new investigation is not based on new or newly-discovered facts or factual errors or material misrepresentations, they will notify the parties that the request for a new investigation has been denied. If they determine that the request is based on new or newly-discovered facts or factual errors or material misrepresentation, they shall allow the parties the opportunity to submit written argument (simultaneous briefing, no replies accepted). The request for a new investigation will then be presented to the Commission. No oral presentation by the parties will be allowed except upon request of the Commission.

The Commission will determine whether to order a new investigation after considering the new evidence (or a description thereof) and the written submissions from the parties, if any. The Commission will promptly notify the parties of its decision.

2.08 COMMISSION DECISION UNDER EMERGENCY PROCEDURE

If the preliminary investigation of the complaint persuades the Commission's Executive Director or other designated employee that a situation comparable to those described in 5 M.R.S. §4612(4)(B) exists, the Executive Director or other designated employee shall so notify the Commission. As soon as practical after notification, the Commissioners will consider the matter by means of a special meeting or other appropriate method. The Executive Director or other designated employee will take all reasonable steps to notify the parties of the special meeting or other appropriate method and of their right to participate.

A. If the Commission finds no reasonable grounds to believe that unlawful discrimination has occurred, it will issue an order dismissing the complaint. The Commission shall issue a statement of finding in support of its determination.

B. If the Commission finds reasonable grounds to believe that unlawful discrimination has occurred, but does not believe that irreparable injury or great inconvenience will be caused to the victims of such discrimination if relief is not immediately granted; it will notify the parties of its determination, provide them with a copy of its statement of finding and process the complaint under its non-emergency procedure.

C. If the Commission finds reasonable grounds to believe that unlawful discrimination has occurred and further believes that irreparable injury or great inconvenience will be caused the victim or victims of such discrimination if relief is not immediately granted, it may request the Commission Counsel or their designee to file a civil action in the Superior Court seeking appropriate relief. As soon thereafter as practicable, the Commission shall issue a statement of finding in support of its determination.

D . Tie votes. If the Commission vote results in a tie vote, the recommendation(s) made in the Investigator’s Report shall be adopted by the Commission as their finding(s).

2.09 POST-DETERMINATION CONCILIATION

A. Conference, conciliation and persuasion

In conciliating a matter in which a determination of reasonable grounds has been made pursuant to the non-emergency procedure of section 2.07(B) of these regulations, the Commission shall attempt to achieve a just resolution and to obtain assurances that the respondent will eliminate the unlawful discrimination and take any appropriate corrective action. Disposition of a matter pursuant to this section shall be in the form of a written agreement and approved by a majority of the Commission, and notice thereof shall be sent to the parties. Upon ascertainment by the Commission’s Executive Director or their designee that the terms of the signed agreement have been met, the proceeding shall be dismissed. In order to facilitate the ascertainment that the terms of settlement have been met, the parties shall provide the terms of any agreement between them to the Executive Director or their designee upon request. Any information provided to the Executive Director for this purpose shall remain confidential, except that settlement information may be reported to the Commission, the EEOC, or HUD.

The Commission specifically delegates to its Executive Director and its Commission Counsel the authority to execute conciliation agreements in the name of the Commission once a majority of the Commission has approved the agreement.

B. Refusal of respondent to cooperate

If a respondent fails or refuses to confer with the Commission or its representatives, or fails or refuses to make a good faith effort to resolve any dispute, the Commission may terminate its efforts to conciliate the dispute. In such event, the parties shall be notified promptly, in writing, that such efforts have been unsuccessful.

C. Refusal of complainant to agree

If a complainant fails or refuses to agree to the terms of a conciliation agreement or settlement that the Commission believes represents a just resolution of the complaint of discrimination, the Commission may execute a conciliation agreement with the respondent limited to assurances that the respondent will eliminate such unlawful discrimination and take any appropriate corrective action. The proceeding shall be dismissed upon ascertainment by the Commission’s Executive Director or their designee that the terms of the signed agreement have been met. Where the complainant is not a party to such a conciliation agreement, the execution of the agreement by the Commission and the respondent shall not extinguish or in any way prejudice the complainant's right to pursue any and all appropriate individual remedies. This subsection shall not apply to complaints investigated pursuant to an agreement between the Commission and the United States Secretary of Housing and Urban Development that requires the Commission to file a civil action for the use of the complainant.

D. Confidentiality of conciliation efforts

Everything said or done during and as part of the Commission's informal endeavors to eliminate unlawful discrimination by conference, conciliation and persuasion is confidential and may not be disclosed without the written consent of the parties concerned or used as evidence in any subsequent proceeding, civil or criminal, except in a civil action alleging a breach of the agreement filed by the Commission or a party. Notwithstanding this provision, the Commission and its employees have discretion to disclose such information to a party as is reasonably necessary to facilitate conciliation. Post-finding conciliation agreements to which the Commission is a signatory are public records.

2.10 PROCEDURE AFTER FAILURE OF CONCILIATION

A. If the Commission’s Executive Director or their designee determines that conciliation efforts have failed, they shall so notify the complainant and respondent.

B. When post-determination conciliation efforts have failed, the Commission Counsel or their designee is authorized to file a civil action in the Superior Court seeking appropriate relief, including, but not limited to, temporary restraining orders and preliminary injunctions.

C. When the Commission's Counsel or their designee is unable to file expeditiously such a civil action, the Commission shall so notify the complainant of their right to file a civil action pursuant to 5 M.R.S. §4621, and make available a referral list of attorneys who have indicated an interest in undertaking such litigation. The Commission shall furnish to the complainant, the respondent, or their cooperating attorneys, upon request, with access to the investigatory case file. Referral under this subsection does not terminate the Commission's jurisdiction of the proceeding.

D. In complaints investigated pursuant to a Memorandum of Understanding between the Commission and the United States Department of Housing and Urban Development that results in a reasonable grounds determination, Commission Counsel shall file a civil action for the use of complainant if conciliation efforts are unsuccessful.

2.11 TIME LIMITS

A. When these regulations establish any time limit for the filing, submission, or production of any document, record, file or other possible source of evidence, or for the filing of any request with the Commission, such item must be received in the office of the Commission before the close of business on the last day of the time limit.

B. In computing any period of time prescribed or allowed by these regulations, the day of the act, event or default from or after which the designated period of time begins to run shall not be included. The last day of the period shall be included, unless it is a Saturday, Sunday or legal state or federal holiday, in which event the period shall run until the end of the next day that is not a Saturday, Sunday or legal state or federal holiday.

C. The Commission’s Executive Director or their designee, or the Commission, may extend any time limit provided in this chapter for good cause shown, and shall notify the parties of any such extension.

2.12 ADVISORY RULINGS

A. Upon written request of any interested person, the Commission Counsel or their designee may make an advisory ruling with respect to the applicability of the Maine Human Rights Act or the rules promulgated by the Commission to that person or an actual state of facts. Interested persons shall not be provided with legal advice, and should not request legal advice from Commission Counsel in the guise of a request for an advisory ruling.

B. Advisory rulings made pursuant to this section shall not be binding upon the Commission, provided that, in any subsequent civil action initiated by the Commission, any person’s justifiable reliance upon the ruling shall be considered in mitigation of any civil penal damages or punitive damages sought by the Commission.

History

• STATUTORY AUTHORITY: This rule is adopted pursuant to 5 M.R.S. §4566(7).
• EFFECTIVE DATE: October 16, 1978 – filing 78-232
• AMENDED: April 24, 1991 – filing 91-146
• AMENDED: July 5, 1994 – filing 94-278
• AMENDED: March 14, 1995 - added Sec. 2.02(I) – filing 95-107
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 12, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling
• REPEALED AND REPLACED: July 17, 1999 – filing 99-290
• AMENDED: February 8, 2010 – filing 2010-19
• AMENDED: November 26, 2012 – filing 2012-332
• AMENDED: August 7, 2013 – filing 2013-195
• AMENDED: September 24, 2014 – filing 2014-226
• AMENDED: December 10, 2022 – filing 2022-235

Chapter 3 Employment Regulations of the Maine Human Rights Commission

Code Me. R. 94-348 Ch. 3 EMPLOYMENT REGULATIONS of the MAINE HUMAN RIGHTS COMMISSION {#sec-94-348-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 3}

SECTION 1. PURPOSE, EFFECT, AND CONSTRUCTION

1. Purpose

Pursuant to 5 M.R.S. §4566(7), the Maine Human Rights Commission has adopted the following regulations to implement Subchapter 3 of the Maine Human Rights Act , 5 M.R.S. §§ 4551-4634 (“the Act” or “MHRA”), which prohibits employment discrimination because of protected class status.

2. Effect

These regulations shall be accorded the full force and effect of interpretative administrative regulations.

3. Construction

A. Consistent with the public policy underlying the Act (as expressed in §4552), and with firmly established principles for the interpretation of such humanitarian legislation, the remedial provisions of the Act shall be given broad construction and its exceptions shall be construed narrowly.

B. The provisions of these regulations are severable. If any provision or the application of any provision of these regulations to any person or circumstances is invalid, such invalidity shall not affect other provisions or applications which can be given effect without the invalid provision or application.

C. References to “employer” or “employers” in this chapter state principles that are applicable not only to employers but also to labor organizations and to employment agencies insofar as their action or inaction may adversely affect employment opportunities.

SECTION 2. DEFINITIONS

1. Commission means the Maine Human Rights Commission established by the Act.

2. Covered entity means an employer, employment agency, labor organization or joint labor-management committee.

3. Direct threat means a significant risk of substantial harm to the health or safety of the individual or others that cannot be eliminated or reduced by reasonable accommodation. The determination that an individual poses a “direct threat” shall be based on an individualized assessment of the individual’s present ability to safely perform the essential functions of the job. This assessment shall be based on a reasonable medical judgment that relies on the most current medical knowledge and/or on the best available objective evidence. In determining whether an individual would pose a direct threat, the factors to be considered include:

A. The duration of the risk;

B. The nature and severity of the potential harm;

C. The likelihood that the potential harm will occur; and

D. The imminence of the potential harm.

4. Discriminate includes, without limitation, segregate or separate. Discriminate also includes conduct amounting to harassment.

5. Employee means an individual employed by an employer. Employee does not include any individual employed by that individual's parents, spouse or child, except for purposes of disability-related discrimination, in which case the individual is considered to be an employee.

6. Employer includes any person in this State employing any number of employees, whatever the place of employment of the employees, and any person outside this State employing any number of employees whose usual place of employment is in this State; any person acting in the interest of any employer, directly or indirectly; and labor organizations, whether or not organized on a religious, fraternal or sectarian basis, with respect to their employment of employees. Employer does not include a religious or fraternal corporation or association, not organized for private profit and in fact not conducted for private profit, with respect to employment of its members of the same religion, sect or fraternity, except for purposes of disability-related discrimination, in which case the corporation or association is considered to be an employer.

7. Employment agency includes any person undertaking with or without compensation to procure opportunities to work, or to procure, recruit, refer or place employees; it includes, without limitation, placement services, training schools and centers, and labor organizations, to the extent that they act as employee referral sources; and it includes any agent of such person.

8. Familial status means that a family unit contains:

A. One or more individuals who have not attained the age of 18 years and are living with a parent or another person having legal custody of the individual or individuals, or the designee of the parent or other person having custody, with the written permission of the parent or other person; or

B. One or more individuals 18 years of age or older who lack the ability to meet essential requirements for physical health, safety or self-care because the individual or individuals are unable to receive and evaluate information or make or communicate decisions.

9. Gender expression means the manner in which an individual’s gender identity is expressed, including, but not limited to, through dress, appearance, manner, speech, or lifestyle, whether or not that expression is different from that traditionally associated with that individual’s assigned sex at birth.

10. Essential functions —

A. In general. The term essential functions means the fundamental job duties of the employment position the individual with a physical or mental disability holds or desires. The term essential functions does not include the marginal functions of the position.

B. A job function may be considered essential for any of several reasons, including but not limited to the following:

(1) The function may be essential because the reason the position exists is to perform that function;

(2) The function may be essential because of the limited number of employees available among whom the performance of that job function can be distributed; and/or

(3) The function may be highly specialized so that the incumbent in the position is hired for his or her expertise or ability to perform the particular function.

C. Evidence of whether a particular function is essential includes, but is not limited to:

(1) The employer's judgment as to which functions are essential;

(2) Written job descriptions prepared before advertising or interviewing applicants for the job;

(3) The amount of time spent on the job performing the function;

(4) The consequences of not requiring the incumbent to perform the function;

(5) The terms of a collective bargaining agreement;

(6) The work experience of past incumbents in the job; and/or

(7) The current work experience of incumbents in similar jobs.

11. Gender identity means the gender-related identity, appearance, mannerisms, or other gender-related characteristics of an individual, regardless of the individual’s assigned sex at birth.

12. Harassment includes verbal or physical conduct related to a protected class or directed at a person or persons because of protected class status when:

A. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual's access to employment or any of the terms, conditions, or privileges of employment;

B. Submission to or rejection of such conduct by an individual is used as the basis for an individual's access to employment or any of the terms, conditions, or benefits of employment;

C. Such conduct has the purpose or effect of unreasonably interfering with an individual's access to employment or any of the terms, conditions, or benefits of employment, or creating an intimidating, hostile, or offensive environment in those settings; or

D. Such conduct constitutes an assault, as defined by Title 17-A, section 207.

13. Labor organization means a labor organization and any agent of such an organization, and includes any organization of any kind, any agency, or employee representation committee, group, association, or plan so engaged in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours, or other terms or conditions of employment, and any conference, general committee, joint or system board, or joint council so engaged which is subordinate to a national or international labor organization.

14. Normal retirement age means the specified age, the years of service requirement or any age and years of service combination at which a member may become eligible for retirement benefits. This sub-section may not be construed to require the mandatory retirement of a member or to deny employment to any person based solely on that person's normal retirement age.

15. Order of protection means an order of protection from abuse issued pursuant to 19-A M.R.S. §4007.

16. Person includes one or more individuals, partnerships, associations, organizations, corporations, municipal corporations, legal representatives, trustees, trustees in bankruptcy, receivers and other legal representatives, labor organizations, mutual companies, joint-stock companies and unincorporated organizations and includes the State and all agencies thereof.

17. Physical or mental disability has the meaning set forth in the Act, 5 M.R.S. §4553-A.

18. Protected class means the classes listed in 5 M.R.S. §4571, as well as a previous assertion of a claim or right under former Title 39 or Title 39-A, or previous actions that are protected under Title 26, chapter 7, subchapter 5-B, or having obtained an order of protection under Title 19-A §4007. Protected class does not include discrimination governed by 39-A M.R.S. §353. Protected class also includes being perceived as a member of a protected class, as well as having a known relationship or association with a member of a protected class. Protected class also includes traits associated with protected class status, such as natural hair textures, Afro styles and protective hair styles (such as braids, twists, and locks) or protected-class related body modifications.

19. Qualified individual with a disability means an individual with a physical or mental disability who, with or without reasonable accommodation, can perform the essential functions of the employment position that the individual holds or desires.

20. Reasonable accommodation –

A. Reasonable accommodation means, with regard to individuals with disabilities:

(1) Modifications or adjustments to a job application process that enable a qualified applicant with a disability to be considered for the position such qualified applicant desires; or

(2) Modifications or adjustments to the work environment, or to the manner or circumstances under which the position held or desired is customarily performed, that enable a qualified individual with a disability to perform the essential functions of that position; or

(3) Modifications or adjustments that enable a covered entity's employee with a physical or mental disability to enjoy equal benefits and privileges of employment as are enjoyed by its other similarly situated employees without disabilities.

B. Reasonable accommodation is also applicable to other protected class statuses when individuals, because of protected class status, require modifications or adjustments in order to perform the essential functions of their positions. Examples of such situations include, but are not limited to:

Schedule modifications to accommodate an individual’s religious practices;

Modifications to dress/appearance rules to accommodate natural hair styles or protected-status related body modifications; and

Modifications to eliminate language barriers, such as providing screening examinations in languages other than English.

C. Reasonable accommodation may include but is not limited to:

(1) Making existing facilities used by employees readily accessible to and usable by individuals with disabilities; and

(2) Job restructuring; part-time or modified work schedules; leaves of absence; reassignment to a vacant position; acquisition or modifications of equipment or devices; appropriate adjustment or modifications of examinations, training materials, or policies; the provision of qualified readers or interpreters; and other similar accommodations.

D. To determine the appropriate reasonable accommodation it may be necessary for the covered entity to initiate an informal, interactive process with the individual in need of the accommodation. This process should identify the protected status related limitations of the individual and potential reasonable accommodations that could overcome those limitations.

E. A covered entity is required, absent undue hardship, to provide a reasonable accommodation to an otherwise qualified individual who meets the definition of physical or mental disability under the “actual disability” prong (5 M.R.S. §4553-A(1)(A, B)), or “record of” prong (5 M.R.S. §4553-A(1)(C)), but is not required to provide a reasonable accommodation to an individual who meets the definition of physical or mental disability solely under the “regarded as” prong (5 M.R.S. §4553-A(1)(D)).

21. Religion includes all aspects of religious observance and practice, as well as belief.

22. Sexual orientation means a person’s pattern of sexual, emotional, or romantic attraction to others, which may include, but is not limited to, actual or perceived heterosexuality, bisexuality, and homosexuality. Sexual orientation as a protected class also includes a person’s gender identity and gender expression.

23. Test means all employee selection procedures used to make employment decisions. Employee selection procedures include the evaluation of applicants, candidates or employees on the basis of stated minimum and preferred job qualifications, application forms, interviews, performance examinations, paper and pencil examinations, performance in training programs or probationary periods and any other procedures used to make an employment decision whether administered by an employer, employment agency, labor organization, licensing or certification board or apprenticeship committee. Employment decisions include, but are not limited to hiring, promotion, demotion, membership in a labor organization, referral, retention, licensing, certification and membership in an apprenticeship program.

24. Undue hardship means, with respect to the provision of an accommodation, significant difficulty or expense incurred by a covered entity, when considered in light of the following factors:

A. The nature and cost of the accommodation needed under the Act, taking into consideration the availability of tax credits and deductions, and/or outside funding;

B. The overall financial resources of the facility or facilities involved in the action, the number of persons employed at the facility, the effect on expenses and resources;

C. The overall financial resources of the covered entity, the overall size of the business of a covered entity with respect to the number of its employees and the number, type and location of its facilities;

D. The type of operation or operations of the covered entity, including the composition, structure and functions of the work force of the entity, the geographic separateness, administrative or fiscal relationship of the facility or facilities in question to the covered entity;

E. The impact of the accommodation upon the operation of the facility, including the impact on the ability of other employees to perform their duties and the impact on the facility's ability to conduct business.

F. The extent to which current costs of accommodations have been minimized by past efforts to provide equal access to persons with disabilities;

G. The extent to which resources spent on improving inaccessible equipment or service could have been spent on making an accommodation so that service or equipment is accessible to individuals with disabilities, as well as to individuals without disabilities;

H. Documented good faith efforts to explore less restrictive or less expensive alternatives;

I. The availability of equipment and technology for the accommodation;

J. Efforts to minimize costs by spreading costs over time; and

K. The extent to which resources saved by failing to make an accommodation for persons who have disabilities could have been saved by cutting costs in equipment or services for the general public.

25. Qualification standards means the personal and professional attributes including the skill, experience, education, physical, medical, safety and other requirements established by a covered entity as requirements which an individual must meet in order to be eligible for the position held or desired.

SECTION 3. UNLAWFUL EMPLOYMENT DISCRIMINATION

1. It is unlawful employment discrimination, except when based on a bona fide occupational qualification or as otherwise permitted by this chapter:

A. For any employer to:

(1) Fail or refuse to hire or otherwise discriminate against any applicant for employment because of protected class;

(2) Because of protected class, discharge an employee or discriminate with respect to hire, tenure, promotion, transfer, compensation, terms, conditions or privileges of employment or any other matter directly or indirectly related to employment; or

(3) In recruiting individuals for employment or in hiring them, to utilize any employment agency that the employer knows or has reasonable cause to know discriminates against individuals because of their protected class.

B. For any employment agency to:

(1) Fail or refuse to classify properly, refer for employment or otherwise discriminate against any individual because of protected class; or

(2) Comply with an employer’s request for the referral of job applicants if a request indicates either directly or indirectly that the employer will not afford full and equal employment opportunities to individuals regardless of their protected class.

C. For any labor organization to:

(1) Exclude from apprenticeship or membership or to deny full and equal membership rights to any applicant for membership because of protected class;

(2) Whether or not authorized or required by the constitution or bylaws of that labor organization or by a collective labor agreement or other contract, deny a member full and equal membership rights; expel from membership; penalize; or otherwise discriminate with respect to hire, tenure, promotion, transfer, compensation, terms, conditions or privileges of employment, representation, grievances or any other matter directly or indirectly related to membership or employment because of protected class;

(3) Fail or refuse to classify properly or refer for employment or otherwise discriminate against any member because of protected class; or

(4) Cause or attempt to cause an employer to discriminate against an individual in violation of the Act.

D. For any employer, employment agency or labor organization, prior to employment or admission to membership of any individual, to:

(1) Elicit or attempt to elicit information directly or indirectly pertaining to protected class;

(2) Make or keep a record of protected class, except under physical or mental disability when an employer requires a physical or mental examination prior to employment, a privileged record of that examination is permissible if made and kept in compliance with this chapter and the Act;

(3) Use any form of application for employment or personnel or membership blank containing questions or entries directly or indirectly pertaining to protected class. This subparagraph does not prohibit any officially recognized government agency from keeping records permitted to be kept under this chapter or the Act in order to provide free services to individuals requesting rehabilitation or employment assistance;

(4) Print, publish or cause to be printed or published any notice or advertisement relating to employment or membership indicating any preference, limitation, specification or discrimination based upon protected class;

(5) Handwrite, print or circulate any interoffice or interagency communication, job order, advertisement, brochure, or notice that expresses directly or indirectly a preference or specification on the basis of protected class unless the expression is made in accordance with a corrective employment program such as an affirmative action plan; or

(6) Establish, announce or follow a policy of denying or limiting, through a quota system or otherwise, employment or membership opportunities of any group because of the protected class of that group.

E. For an employer, employment agency or labor organization to discriminate in any manner against individuals because they have opposed a practice that would be a violation of the Act or because they have made a charge, testified or assisted in any investigation, proceeding or hearing under the Act. Such action or assistance includes, but is not limited to, filing a complaint, stating an intent to contact the Commission or to file a complaint, supporting employees who are involved in the complaint process, cooperating with representatives of the Commission during the investigative process and educating others concerning the coverage of the Act.

2. Unlawful employment discrimination also includes, but is not limited to, the prohibited acts described in §4 and §§ 6 through 16 of this chapter.

SECTION 4. PRE-EMPLOYMENT OR ADMISSION INQUIRIES

1. Pre-employment or admission inquiries prohibited

A. It is unlawful employment discrimination, except when based on a bona fide occupational qualification, for any employer, employment agency or labor organization, prior to employment or admission to membership of any individual, to elicit or attempt to elicit information directly or indirectly pertaining to protected class or use any form of application for employment or personnel or membership blank containing questions or entries directly or indirectly pertaining to protected class.

Pre-employment or admission inquiries covered by this section include, but are not limited to, questions asked on application forms, questions asked in employee interviews, questions asked of references or former employers, requests for photographs or any other kind of inquiry used before selection.

Examples of unlawful pre-employment or admission inquiries may include, but are not limited to, the use of the following inquiries:

(1) NAME. Where original name of applicant has been changed by court order, inquiries that could indicate or suggest religious group or national origin or ancestry or gender identity by requesting any former names, including maiden names, ever used by applicant; names or former names of spouse, parents or other relatives.

(2) BIRTHPLACE. Requirement that applicant submit birth certificate or baptismal record, which could indicate religious denomination, national origin or ancestry. Inquiries into the place of birth of applicant, spouse, parents or other relatives could indicate national origin or ancestry.

(3) CITIZENSHIP. Whether applicant is native born or naturalized citizen; country of former citizenship or date of naturalization; citizenship of spouse, parents or other relatives. Nothing in this chapter, however, precludes an employer from asking questions necessary to comply with the Immigration Reform and Control Act of 1986 .

(4) NATIONAL ORIGIN OR ANCESTRY. Nationality, lineage ancestry or descent of applicant, spouse, parents or other relatives; language commonly used by applicant, or how applicant acquired ability to read, write or speak a foreign language.

(5) MILITARY SERVICE. Applicant's military experience in armed forces, other than U.S., draft classification or other military eligibility, which could indicate national origin or ancestry.

(6) RELIGION. Applicant's religious denomination, affiliation, church, parish, pastor, or religious holidays observed; representing to applicants that employer is of a predominant or particular religious orientation.

(7) EDUCATION. Inquiry asking specifically for the religious affiliation of applicant's school.

(8) REFERENCES. Requirement of submission of a religious reference.

(9) WORK SCHEME. Any inquiry into willingness to work any particular religious holiday.

(10) ORGANIZATIONS. Request a list of all clubs, social fraternities, societies, lodges, or organizations to which the applicant belongs, other than trade, professional or service organizations.

(11) HOUSEHOLD COMPOSITION. Requesting information about an applicant’s living arrangements or family members.

(12) MEDICAL HISTORY. Any inquiry as to whether or not an applicant has received gender-affirming physical and/or behavioral health care.

(13) COMPENSATION HISTORY. Making inquiries of prospective employees or their current or former employers regarding the prospective employee’s compensation history before an offer of employment that includes all terms of compensation has been negotiated and made to the prospective employee.

(14) CRIMINAL HISTORY. Making inquiries about an applicant’s history of arrests. Employers may ask about convictions and/or pleas of nolo contendre.

(15) HAIR STYLE/APPEARANCE. Making inquiries about an applicant’s hair style/appearance when the hair style/appearance is associated with the applicant’s protected class status (i.e., Afro styles or protective hair styles, such as locks, twists, and braids).

B. It is unlawful employment discrimination for an employer, employment agency or labor organization to request information from a member of one protected class that would not be requested from a member of another, e.g., one cannot ask older applicants questions concerning how long they expect to remain in the workforce if the employer does not ask the same questions of younger applicants.

C. It is unlawful employment discrimination to deny equal consideration for employment, promotion or any other term, condition or privilege of employment or membership in a labor organization because that person refused to answer a pre-employment or admission inquiry if that inquiry is prohibited by this chapter and the Act.

2. Pre-employment or admission inquiries permitted

A. Pre-employment or admission inquiries that are made in conformance with the instructions from, or requirements of, an agency or agencies of the local, state or federal government in connection with the administration of fair employment practices programs will not constitute evidence of unlawful employment discrimination under the Act.

B. It is not an unlawful employment practice to record any data required by law, or by the rules and regulations of any state or federal agency, provided such records are kept in good faith for the purpose of complying with law, and are not used for the purpose of discrimination in violation of the Act.

C. Subsequent to employment or admission to membership, it is not unlawful employment discrimination to make a record of such information or features concerning an individual as are needed in good faith for the purpose of identifying that individual, provided these records are intended for and used in good faith solely for such identification, and not for the purpose of unlawful discrimination in violation of the Act. Records of features regarding physical or mental disability that are collected must be collected and maintained on separate forms and in separate files and be treated as confidential records.

D. Physical or mental disability. A covered entity may make pre-employment or membership inquiries as permitted by §13(3) of this chapter.

SECTION 5. JOB ADVERTISING

1. In general. It shall be an unlawful employment practice for any person to print or publish or cause to be printed or published any notice or advertisement relating to employment or membership in a labor organization indicating any preference, limitation, specification or discrimination based upon protected class, unless there is a bona fide occupational qualification for such preference, limitation, specification or discrimination.

2. The Commission will consider to be a violation of the Act the acceptance for publication, by any communications medium, of any notice or advertisement relating to employment preference, limitation, specification or discrimination based on protected class, unless there is a bona fide occupational qualification for such preference, limitation, specification or discrimination.

3. An employer, union, employment agency, newspaper or other publication may, and is encouraged to, make an inquiry of the Commission as to whether protected class is a bona fide occupational qualification for a particular job opportunity which they intend to publish, print or circulate or cause to be published, printed or circulated. The Commission shall, as soon as possible, give informal opinions in response to such inquiries.

An informal opinion rendered orally or in writing by the Commission prior to the publication of any advertisement in response to such an inquiry shall not be binding upon the Commission, provided that, in any subsequent civil action initiated by the Commission, any person’s justifiable reliance upon the ruling shall be considered in mitigation of any civil penal damages or punitive damages sought by the Commission.

A newspaper or other publication shall not be in violation of this section where it has accepted any specific advertisement in good faith and in reasonable reliance upon the representations of the person placing the advertisement that they have obtained from the Commission an opinion that there is a bona fide occupational qualification for the specific job advertised together with the identification number of that opinion.

4. It is not unlawful for employers engaged in corrective employment programs, or employment or referral agencies, to print or cause to be printed any advertisement which encourages applications from persons who are members of classes protected by the Act. The term “corrective employment program” means any affirmative action or other remedial program designed to increase the number of protected class employees in any industry, occupation, or place of work in order to correct the effects of past limited employment opportunities for members of the protected class. All advertising may include positive statements such as “We hire people with disabilities” or “We are an Equal Employment Opportunity Employer.”

SECTION 6. PRE-EMPLOYMENT TESTS

1. After an applicant for employment, candidate for membership in a labor organization, or employee has established that a test, used by an employer, employment agency, labor organization, licensing certification board, or apprenticeship committee for the purpose of making an employment decision, disproportionately excludes members of a protected class, the burden is on the person or organization requiring the test to show that the test standard is manifestly related to the job. In other words, it must be shown that performance on the test is predictive of how well the examinee will perform the job and that the test is justified by business necessity.

2. This section applies to employers having any number of employees. When evidence of test validity is presented to the Commission by an entity that is subject to the federal Uniform Guidelines on Employee Selection, the Commission will consider the applicable standards set forth in the Uniform Guidelines and will look favorably upon evidence presented which meets those standards.

SECTION 7. SEPARATE LINES OF PROGRESSION AND SENIORITY SYSTEMS

1. It is unlawful employment discrimination for any employer, employment agency or labor organization to classify any job according to protected class or to maintain separate lines of progression or separate seniority lists based on protected class where this would adversely affect any employee unless justified by a bona fide occupational qualification for that job.

2. A seniority system or line of progression which distinguishes between “light” and “heavy” jobs constitutes unlawful employment discrimination if it operates as a form of classification by protected class, or creates unreasonable obstacles to the advancement by members of a protected class into jobs that those members are capable of performing.

SECTION 8. FRINGE BENEFITS

1. “Fringe benefits” as used herein includes medical, hospital, accident, disability, life insurance and retirement benefits; profit-sharing and bonus plans; leave; “overtime/compensatory time” benefits; and other terms, conditions; and privileges of employment.

2. It is unlawful employment discrimination for an employer, employment agency, or labor organization to discriminate because of protected class with regard to fringe benefits.

3. Discrimination because of sex and sexual orientation or gender identity with regard to fringe benefits

A. Where an employer conditions benefits available to employees and their spouses and families on whether the employee is the “head of the household” or “principal wage earner” in the family unit, due to the fact that such conditioning discriminatorily affects the rights of female, transgender, and gender-diverse employees, and that “head of household” or “principal wage earner” status bears no relationship to job performance, benefits which are so conditioned will be found to be prima facie evidence of unlawful employment discrimination on the basis of sex and/or sexual orientation or gender identity.

B. It shall be unlawful employment discrimination for an employer to make available benefits for the spouses and families of male employees where the same benefits are not made available for the spouses and families of female, transgender, and gender-diverse employees or to make available benefits for the spouses of male employees which are not made available for female, transgender, or gender-diverse employees; or to make available benefits to the spouses of female, transgender, and gender-diverse employees which are not made available for male employees. An example of such an unlawful employment practice is a situation in which spouses of male employees receive childbirth-related benefits while female, transgender, and gender-diverse employees receive no such benefits.

C. It shall not be a defense under the Act to a charge of sex and/or sexual orientation or gender identity discrimination in benefits that the cost of such benefits is greater with respect to one sex than the another.

D. It shall be unlawful employment discrimination for an employer to have a pension or retirement plan which establishes different optional or compulsory retirement ages based on sex and/or sexual orientation or gender identity, or which differentiates in benefits on the basis of sex and/or sexual orientation or gender identity.

E. The Act does not require any employer to grant paid or unpaid child care leaves of absence. Any employer providing such leaves, however, must do so without regard to the sex and/or sexual orientation or gender identity of the person applying for such leave and may not discriminate on the basis of familial status.

SECTION 9. EMPLOYMENT AGENCIES

1. It is unlawful employment discrimination, except when based on a bona fide occupational qualification for any employment agency to fail or refuse to classify properly, refer for employment or otherwise discriminate against any individual because of protected class or comply with an employer’s request for the referral of job applicants if a request indicates either directly or indirectly that the employer will not afford full and equal employment opportunities to individuals regardless of their protected class.

2. Employment agencies that deal exclusively with one protected class are engaged in unlawful employment discrimination, except to the extent that such agencies limit their services to furnishing employees for particular jobs for which that protected class is a bona fide occupational qualification or the agency is not exclusively an employment agency, but rather is a comprehensive social services agency serving members of a protected class and provides employment placement assistance as one of its services.

3. An employment agency that receives a job order containing an unlawful protected-class specification will share responsibility with the employer placing the job order if the agency fills the order knowing that the protected-class specification is not based upon a bona fide occupational qualification. However, an employment agency will not be deemed to be in violation of the law, regardless of the determination as to the employer, if the agency does not have reason to believe that the employer's claim of bona fide occupational qualification is without substance and the agency makes and maintains a written record available to the Commission of each such job order. Such record shall include the name of the employer, the description of the job and the basis for the employer's claim of bona fide occupational qualification.

SECTION 10. HARASSMENT

1. Harassment on the basis of protected class is a violation of Section 4572 of the Act. Unwelcome advances because of protected class (e.g., sexual advances or requests for sexual favors), comments, jokes, acts and other verbal or physical conduct related to protected class (e.g., of a sexual, racial, or religious nature) or directed toward a person because of protected class constitute unlawful harassment when:

A. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment or union membership;

B. Submission to or rejection of such conduct by an individual is used as the basis for employment or union membership decisions affecting such individual; or

C. Such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working or union environment.

2. An employer, employment agency, joint apprenticeship committee or labor organization (hereinafter collectively referred to as “employer” in this section) is responsible for its acts and those of its agents and supervisory employees with respect to unlawful harassment. When the supervisor’s harassment culminates in a tangible employment or union membership action, such as, but not limited to, discharge, demotion, or undesirable reassignment, liability attaches to the employer regardless of whether the employer knew or should have known of the harassment, and regardless of whether the specific acts complained of were authorized or even forbidden by the employer. When the supervisor’s harassment does not culminate in a tangible employment action, the employer may raise an affirmative defense to liability or damages by proving by a preponderance of the evidence:

A. That the employer exercised reasonable care to prevent and correct promptly any harassing behavior; and

B. That the employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer or to avoid harm otherwise.

3. With respect to persons other than those mentioned in subsection 2 of this section, an employer is responsible for acts of unlawful harassment in the workplace where the employer, or its agents or supervisory employees, knows or should have known of the conduct unless it can show that it took immediate and appropriate corrective action. In reviewing cases involving non-employees, the Commission will consider the extent of the employer’s control and any other legal responsibility that the employer may have with respect to the conduct of such non-employees.

4. In determining whether alleged conduct constitutes unlawful harassment, the Commission will look at the record as a whole and at the totality of the circumstances, such as the nature of the alleged incidents and the context in which they allegedly occurred. The determination of the legality of a particular action will be made from the facts, on a case by case basis.

5. An employer should take all steps necessary to prevent unlawful harassment from occurring, such as affirmatively raising the subject, expressing strong disapproval, developing appropriate sanctions, and informing employees of their right to raise and how to raise the issue of harassment under the Act.

6. Where employment or union opportunities or benefits are granted because of an individual’s submission to the employer’s sexual advances or requests for sexual favors, the employer may be held liable for unlawful sex or sexual orientation or gender identity discrimination against other persons who were qualified for but denied that employment or union opportunity or benefit.

SECTION 11. SEX DISCRIMINATION

In addition to any other unlawful practice on the basis of sex prohibited by this chapter or the Act:

1. Discrimination on the basis of pregnancy and related conditions

A. For the purpose of this chapter, the word sex includes pregnancy and medical conditions which result from pregnancy. “Pregnancy-related condition” means a known limitation of an employee’s ability to perform the functions of a job due to pregnancy, childbirth, termination of a pregnancy, or pregnancy=related medical conditions, such as lactation.

B. Pregnant persons who are able to work. It shall be unlawful employment discrimination in violation of this chapter and the Act, except where based on a bona fide occupational qualification, for an employer, employment agency or labor organization to treat a pregnant person who is able to work in a different manner from other persons who are able to work.

C. Pregnant persons who are not able to work. It shall also be unlawful employment discrimination in violation of this chapter and the Act, except where based on a bona fide occupational qualification, for an employer, employment agency or labor organization to treat a pregnant person who is not able to work because of a disability or a pregnancy-related condition, in a different manner from other employees who are not able to work because of other disabilities or illnesses.

D. Any written or unwritten employment policy or practice which excludes from employment applicants or employees because of pregnancy or pregnancy-related conditions is prima facie evidence of unlawful employment discrimination.

E. Disabilities caused or contributed to by pregnancy, miscarriage, abortion, childbirth, or other pregnancy-related conditions, and recovery therefrom, for all job-related purposes, shall be treated the same as disabilities caused or contributed to by other medical conditions, under any health or disability insurance or sick leave plan available in connection with employment.

F. Any written or unwritten employment policies and practices involving matters such as the commencement and duration of leave, the availability of extensions, the accrual of seniority and other benefits and privileges, reinstatement and payment under any health or disability insurance or sick leave plan, formal or informal, shall be applied to disability due to pregnancy, childbirth or pregnancy-related conditions on the same terms and conditions as they are applied to other disabilities.

G. Where the termination of an employee who is temporarily disabled is caused by an employment policy under which insufficient or no leave is available, such a termination is unlawful employment discrimination on the basis of sex if it has a disparate impact on employees of one sex and is not justified as a business necessity.

H. Reasonable accommodations. It is unlawful discrimination for an employer, employment agency, or labor organization to fail upon request to provide a reasonable accommodation for an employee with a pregnancy-related condition unless the employer, employment agency, or labor organization establishes that providing an accommodation would amount to an undue hardship on the operation of the business. Reasonable accommodations for pregnancy-related conditions may include, but are not limited to, more frequent or longer breaks, temporary relief from hazardous assignments, and provisions for lactation.

Employer not responsible for additional benefits. Nothing in this subsection may be construed to mean that an employer, employment agency or labor organization is required to provide sick leave, a leave of absence, medical benefits or other benefits to a person because of pregnancy or other pregnancy-related conditions if the employer, employment agency or labor organization does not also provide sick leaves, leaves of absence, medical benefits or other benefits for the employer’s other employees and is not otherwise required to provide those leaves or benefits under other state or federal laws. Reasonable accommodations for pregnancy and pregnancy-related conditions are not additional benefits.

J. It is unlawful to discriminate against a person because that person has terminated their pregnancy.

SECTION 12. AGE DISCRIMINATION

In addition to any other unlawful practice on the basis of age prohibited by this chapter or the Act:

1. Mandatory retirement age prohibited

Definitions. As used in this subsection, unless the context otherwise indicates, the following terms shall have the following meanings:

(1) Employer shall mean any individual or type of organization, including domestic and foreign corporations and partnerships, doing business in the State. Employer also includes the State or any local government, and any department, agency, special purpose district or other instrumentality of the State, two or more states or a local government.

(2) Normal retirement age means the specified age, the years of service requirement or any age and years of service combination at which a person may become eligible for retirement benefits. This subparagraph may not be construed to require the mandatory retirement of a person or to deny employment to any person based solely on that person’s normal retirement age.

B. Unlawful employment discrimination. It shall be unlawful employment discrimination:

(1) For any employer to fail or refuse to hire any applicant for employment because of the age of the individual; or

(2) For any employer to require or permit, as a condition of employment, any employee to retire at or before a specified age or after completion of a specified number of years of service.

C. This subsection shall not be construed to prohibit the use of a normal retirement age, provided that normal retirement age and the accrual or awarding of pension or retirement benefits shall not be used in any way to require the retirement of an employee or to deny employment to a person.

D. Applicability. This subsection shall apply to all employers in the State.

SECTION 13. PHYSICAL OR MENTAL DISABILITY DISCRIMINATION

In addition to any other unlawful practice on the basis of physical or mental disability prohibited by this chapter or the Act:

1. Discrimination prohibited

It is unlawful employment discrimination:

A. In general. For a covered entity to discriminate on the basis of physical or mental disability against a qualified individual in regard to:

(1) Recruitment, advertising, and job application procedures;

(2) Hiring, upgrading, promotion, award of tenure, demotion, transfer, layoff, termination, right of return from layoff, and rehiring;

(3) Rates of pay or any other form of compensation and changes in compensation;

(4) Job assignments, job classifications, organizational structures, position descriptions, lines of progression, and seniority lists;

(5) Leaves of absence, sick leave, or any other leave;

(6) Fringe benefits available by virtue of employment, whether or not administered by the covered entity;

(7) Selection and financial support for training, including: apprenticeships, professional meetings, conferences and other related activities, and selection for leaves of absence to pursue training;

(8) Activities sponsored by a covered entity, including social and recreational programs; and/or

(9) Any other term, condition, or privilege of employment.

B. Limiting, segregating, and classifying. For a covered entity to limit, segregate, or classify a job applicant or employee in a way that adversely affects his or her employment opportunities or status on the basis of physical or mental disability.

C. Contractual or other relationships

(1) In general. For a covered entity to participate in a contractual or other arrangement or relationship that has the effect of subjecting the covered entity’s own qualified applicant or employee with a disability to the discrimination prohibited by this part.

(2) Contractual or other arrangement defined. The phrase contractual or other arrangement or relationship includes, but is not limited to, a relationship with an employment or referral agency; labor union, including collective bargaining agreements; an organization providing fringe benefits to an employee of the covered entity; or an organization providing training and apprenticeship programs.

(3) Application. This section applies to a covered entity, with respect to its own applicants or employees, whether the entity offered the contract or initiated the relationship, or whether the entity accepted the contract or acceded to the relationship. A covered entity is not liable for the actions of the other party or parties to the contract which only affect that other party's employees or applicants.

D. Standards, criteria, or methods of administration. For a covered entity to use standards, criteria, or methods of administration, which are not job-related and consistent with business necessity, and:

(1) That have the effect of discrimination on the basis of physical or mental disability; or

(2) That perpetuate the discrimination of others who are subject to common administrative control.

E. Not making reasonable accommodation

(1) For a covered entity not to make reasonable accommodation to the known physical or mental limitations of an otherwise qualified applicant or employee with a disability, unless such covered entity can demonstrate that the accommodation would impose an undue hardship on the operation of its business.

(2) For a covered entity to deny employment opportunities to an otherwise qualified job applicant or employee with a disability based on the need of such covered entity to make reasonable accommodation to such individual's physical or mental impairments.

(3) An individual with a physical or mental disability is not required to accept an accommodation, aid, service, opportunity or benefit which such qualified individual chooses not to accept. However, if such individual rejects a reasonable accommodation, aid, service, opportunity or benefit that is necessary to enable the individual to perform the essential functions of the position held or desired, and cannot, as a result of that rejection, perform the essential functions of the position, the individual will not be considered qualified.

(4) A covered entity is required, absent undue hardship, to provide a reasonable accommodation to an otherwise qualified individual who meets the definition of physical or mental disability under the “actual disability” prong (5 M.R.S. §4553-A(1)(A, B)), or “record of” prong (5 M.R.S. §4553-A(1)(C)), but is not required to provide a reasonable accommodation to an individual who meets the definition of physical or mental disability solely under the “regarded as” prong (5 M.R.S. §4553‑A(1)(D)).

F. Qualification standards, tests, and other selection criteria

(1) In general. For a covered entity to use qualification standards, employment tests or other selection criteria that screen out or tend to screen out an individual with a physical or mental disability or a class of individuals with disabilities, on the basis of physical or mental disability, unless the standard, test, or other selection criteria, as used by the covered entity, is shown to be job related for the position in question and is consistent with business necessity.

(2) Qualification standards and tests related to uncorrected vision. A covered entity shall not use qualification standards, employment tests, or other selection criteria based on an individual's uncorrected vision unless the standard, test, or other selection criterion, as used by the covered entity, is shown to be job related for the position in question and is consistent with business necessity. An individual challenging a covered entity's application of a qualification standard, test, or other criterion based on uncorrected vision need not be a person with a physical or mental disability, but must be adversely affected by the application of the standard, test, or other criterion.

G. Administration of tests. For a covered entity to fail to select and administer tests concerning employment in the most effective manner to ensure that, when a test is administered to a job applicant or employee who has a physical or mental disability that impairs sensory, manual or speaking skills, the test results accurately reflect the skills, aptitude, or whatever other factor of the applicant or employee that the test purports to measure, rather than reflecting the impaired sensory, manual, or speaking skills of such employee or applicant (except where such skills are the factors that the test purports to measure).

2. Prohibited medical examinations and inquiries

A. Pre-employment examination or inquiry. Except as permitted by subsection (3) of this section, it is unlawful for a covered entity to conduct a medical examination of an applicant or to make inquiries as to whether an applicant is an individual with a physical or mental disability or as to the nature or severity of such physical or mental disability.

B. Examination or inquiry of employees. Except as permitted by subsection (3) of this section, it is unlawful for a covered entity to require a medical examination of an employee or to make inquiries as to whether an employee is an individual with a physical or mental disability or as to the nature or severity of such physical or mental disability.

3. Medical examinations and inquiries specifically permitted

A. Acceptable pre-employment inquiry. A covered entity may make pre-employment inquiries into the ability of an applicant to perform job-related functions, and/or may ask an applicant to describe or to demonstrate how, with or without reasonable accommodation, the applicant will be able to perform job-related functions.

B. Employment entrance examination. A covered entity may require a medical examination (and/or inquiry) after making an offer of employment to a job applicant and before the applicant begins his or her employment duties, and may condition an offer of employment on the results of such examination (and/or inquiry), if all entering employees in the same job category are subjected to such an examination (and/or inquiry) regardless of physical or mental disability.

(1) Information obtained under paragraph (B) of this subsection regarding the medical condition or history of the applicant shall be collected and maintained on separate forms and in separate medical files and be treated as a confidential medical record, except that:

(a) Supervisors and managers may be informed regarding necessary restrictions on the work or duties of the employee and necessary accommodations;

(b) First aid and safety personnel may be informed, when appropriate, if the physical or mental disability might require emergency treatment; and

(c) Government officials investigating compliance with this part shall be provided relevant information on request.

(2) The results of such examination shall not be used for any purpose inconsistent with this chapter or the Act.

(3) Medical examinations conducted in accordance with paragraph (B) of this subsection do not have to be job-related and consistent with business necessity. However, if certain criteria are used to screen out an employee or employees with physical or mental disabilities as a result of such an examination or inquiry, the exclusionary criteria must be job-related and consistent with business necessity, and performance of the essential job functions cannot be accomplished with reasonable accommodation as required in this part.

C. Examination of employees. A covered entity may require a medical examination (and/or inquiry) of an employee that is job-related and consistent with business necessity. A covered entity may make inquiries into the ability of an employee to perform job-related functions.

(1) Information obtained under paragraph (C) of this subsection regarding the medical condition or history of any employee shall be collected and maintained on separate forms and in separate medical files and be treated as a confidential medical record, except that:

(a) Supervisors and managers may be informed regarding necessary restrictions on the work or duties of the employee and necessary accommodations;

(b) First aid and safety personnel may be informed, when appropriate, if the physical or mental disability might require emergency treatment; and

(c) Government officials investigating compliance with this part shall be provided relevant information on request.

(2) Information obtained under paragraph (C) of this subsection regarding the medical condition or history of any employee shall not be used for any purpose inconsistent with this chapter or the Act.

D. Other acceptable examinations and inquiries. A covered entity may conduct voluntary medical examinations and activities, including voluntary medical histories, which are part of an employee health program available to employees at the work site.

(1) Information obtained under paragraph (D) of this subsection regarding the medical condition or history of any employee shall be collected and maintained on separate forms and in separate medical files and be treated as a confidential medical record, except that:

(a) Supervisors and managers may be informed regarding necessary restrictions on the work or duties of the employee and necessary accommodations;

(b) First aid and safety personnel may be informed, when appropriate, if the physical or mental disability might require emergency treatment; and

(c) Government officials investigating compliance with this part shall be provided relevant information on request.

(2) Information obtained under paragraph (D) of this subsection regarding the medical condition or history of any employee shall not be used for any purpose inconsistent with this chapter or the Act.

E. When a covered entity is taking remedial action to correct the effects of past discrimination, when a covered entity is taking voluntary action to overcome the effects of conditions that, in the past, resulted in limited employment opportunities for individuals with physical or mental disabilities or when a covered entity is taking other affirmative action, covered entity may ask applicants to what extent they have a physical or mental disability, provided that:

(1) The covered entity states clearly on any written questionnaire used for this purpose or makes clear orally if no written questionnaire is used that the information requested is intended for use solely in connection with its remedial action obligations or its voluntary or affirmative action efforts; and

(2) The covered entity states clearly that the information is being requested on a voluntary basis, that it will be kept confidential as provided in subparagraph (B)(1) of this subsection, that refusal to provide it will not subject the applicant or employee to any adverse treatment and that it will be used only in accordance with this chapter and the Act.

SECTION 14. RELIGIOUS DISCRIMINATION

In addition to any other unlawful practice on the basis of religion prohibited by this chapter or the Act:

1. “Religious” nature of a practice or belief

In most cases, whether or not a practice or belief is religious is not at issue. However, in those cases in which the issue does exist, the Commission will define religious practices to include moral or ethical beliefs as to what is right and wrong which are sincerely held with the strength of traditional religious views. This standard was developed in United States v. Seeger , 380 U.S. 163 (1965) and Welsh v. United States , 398 U.S. 333 (1970). The fact that no religious group espouses such beliefs or the fact that the religious group to which the individual professes to belong may not accept such belief will not determine whether the belief is a religious belief of the employee or prospective employee. The phrase “religious practice” as used in this chapter includes both religious observances and practices, as stated in §2(18) of this chapter.

2. Reasonable accommodation without undue hardship

A. Duty to Accommodate. It is unlawful employment discrimination for an employer, employment agency or labor organization (hereinafter collectively referred to as “employer” in this section) to fail to reasonably accommodate the religious practices of an employee or member or prospective employee or member, unless the employer demonstrates that accommodation would result in undue hardship on the conduct of its business.

B. Reasonable accommodation

(1) After an employee or prospective employee or member notifies the employer of his or her need for a religious accommodation, the employer has an obligation to reasonably accommodate the individual’s religious practices. A refusal to accommodate is justified only when an employer can demonstrate that an undue hardship would in fact result from each available alternative method of accommodation. A mere assumption that many more people, with the same religious practices as the person being accommodated may also need accommodation is not evidence of undue hardship.

(2) When there is more than one method of accommodation available that would not cause undue hardship, the Commission will determine whether the accommodation offered is reasonable by examining:

(a) The alternatives for accommodation considered by the employer; and

(b) The alternatives for accommodation, if any, actually offered to the individual requiring accommodation. Some alternatives for accommodating religious practices might disadvantage the individual with respect to their employment or union opportunities, such as compensation, terms, conditions, or privileges of employment. Therefore, when there is more than one means of accommodation which would not cause undue hardship, the employer must offer the alternative which least disadvantages the individual with respect to their employment or union opportunities.

C. Alternatives for accommodating religious practices

(1) Employees or members and prospective employees or members most frequently request an accommodation because their religious practices conflict with their work schedules. The following subsections are some means of accommodating the conflict between work schedules and religious practices, which the Commission believes that employers should consider as part of the obligation to accommodate and which the Commission will consider in investigating a charge. These are not intended to be all-inclusive. There are often other alternatives that would reasonably accommodate an individual's religious practices when they conflict with a work schedule. There are also employment practices besides work scheduling that may conflict with religious practices and cause an individual to request an accommodation. The principles expressed in this chapter apply as well to such requests for accommodation.

(a) Voluntary substitutes and “swaps”

Reasonable accommodation without undue hardship is generally possible where a voluntary substitute with substantially similar qualifications is available. One means of substitution is the voluntary swap. In a number of cases, the securing of a substitute has been left entirely up to the individual seeking the accommodation. The Commission believes that the obligation to accommodate requires that employers facilitate the securing of a voluntary substitute with substantially similar qualifications. Some means of doing this that employers should consider are: to publicize policies regarding accommodation and voluntary substitution; to promote an atmosphere in which such substitutions are favorably regarded; to provide a central file, bulletin board or other means for matching voluntary substitutes with positions for which substitutes are needed. In some instances, the employer may have the obligation to attempt to secure a substitute for the employee.

(b) Flexible scheduling

One means of providing reasonable accommodation for the religious practices of employees or members or prospective employees or members that employers should consider is the creation of a flexible work schedule for individuals requesting accommodation.

The following list is an example of areas in which flexibility might be introduced: flexible arrival and departure times; floating or optional holidays; flexible work breaks; use of lunch time in exchange for early departure; staggered work hours; and permitting an employee to make up time lost due to the observance of religious practices.

(c) Lateral transfer and change of job assignments

When an employee or member cannot be accommodated either as to their entire job or an assignment within the job, employers should consider whether or not it is possible to change the job assignment or give the employee or member a lateral transfer.

(2) Payment of dues to a labor organization

Some collective bargaining agreements include a provision that each employee must join the labor organization or pay the labor organization a sum equivalent to dues. When an employee’s religious practices do not permit compliance with such a provision, the labor organization should accommodate the employee by not requiring the employee to join the organization and by permitting him or her them to donate a sum equivalent to dues to a charitable organization.

D. Undue hardship

Cost. An employer may assert undue hardship to justify a refusal to accommodate an employee’s or member’s need to be absent from his or her scheduled duty hours if the employer can demonstrate that the accommodation would require “more than a de minimis cost”. See Trans World Airlines, Inc. v. Hardison , 432 U.S. 63, 84 (1977). The Commission will determine what constitutes “more than a de minimis cost” with due regard given to the identifiable cost in relation to the size and operating cost of the employer, and the number of individuals who will in fact need a particular accommodation; this determination is made considering the number of individuals actually requesting accommodation and not generalized assumptions about others who may have similar religious beliefs or practices. In general, the Commission interprets this phrase as it was used in the Hardison decision to mean that costs similar to the regular payment of premium wages of substitutes, which was at issue in Hardison , would constitute undue hardship. However, in most circumstances the Commission will presume that the infrequent payment of premium wages for a substitute or the payment of premium wages while a more permanent accommodation is being sought are costs which an employer can be required to bear as a means of providing a reasonable accommodation. Further, the Commission will presume that generally, the payment of administrative costs necessary for providing the accommodation will not constitute more than a de minimis cost. Administrative costs, for example, include those costs involved in rearranging schedules and recording substitutions for payroll purposes.

The term undue hardship also includes non-economic costs.

(2) Seniority Rights. Undue hardship would also be shown where a variance from a bona fide seniority system is necessary in order to accommodate an employee's religious practices when doing so would deny another employee his or her job or shift preference guaranteed by that system. Hardison , supra , 432 U.S. at 80. Arrangements for voluntary substitutes and swaps (see division C(1)(a) of this subsection) do not constitute an undue hardship to the extent the arrangements do not violate a bona fide seniority system. Nothing in the Act or this chapter precludes an employer from including arrangements for voluntary substitutes and swaps as part of a collective bargaining agreement.

3. Selection practices

A. Scheduling of tests or other selection procedures. When a test or other selection procedure is scheduled at a time when an employee or member or prospective employee or member cannot attend because of their religious practices, the user of the test should be aware that the principles enunciated in this chapter apply and that it has an obligation to accommodate such employee or member or prospective employee or member unless undue hardship would result.

B. Inquiries that determine an applicant's availability to work during an employer’s scheduled working hours

(1) The duty to accommodate pertains to prospective employees or members as well as current employees or members. Consequently, an employer may not refuse to hire an applicant based on their known need for a reasonable accommodation for their religious practices unless it can demonstrate that it cannot reasonably accommodate the applicant's religious practices without undue hardship.

(2) Inquiries into an applicant’s availability on certain days or during certain hours may have an adverse impact on individuals who require a reasonable accommodation for their religious practices. Rather than inquire into the applicant’s specific availability, employers should provide their regular hours and/or the anticipated schedule for the position, and ask the applicant whether they can work the anticipated schedule with or without a reasonable accommodation.

SECTION 15. ANCESTRAL OR NATIONAL ORIGIN DISCRIMINATION

In addition to any other unlawful practice on the basis of ancestry or national origin prohibited by this chapter or the Act:

1. Definition of ancestral or national origin discrimination

Unlawful employment discrimination includes discrimination because of ancestry or national origin. The Commission defines national origin discrimination broadly as including, but not limited to, the denial of equal employment opportunity because of an individual’s, or their ancestor’s, place of origin; or because an individual has the physical, cultural or linguistic characteristics of a national origin group. For example, denial of equal employment opportunity based on such factors as (a) marriage to or association with persons of a national origin group; (b) membership in, or association with an organization identified with or seeking to promote the interests of national origin groups; (c) attendance or participation in schools, churches, temples or mosques, generally used by persons of a national origin group; and (d) because an individual's name or spouse’s name is associated with a national origin group may form the basis of a claim for national origin discrimination.

2. Citizenship requirements

In those circumstances where citizenship requirements have the purpose or effect of discriminating against an individual on the basis of national origin, they are unlawful employment discrimination prohibited by this chapter and the Act.

3. Selection procedures

A. In investigating an employer’s selection procedures (including those identified below) for adverse impact on the basis of national origin, the Commission will apply the Uniform Guidelines on Employee Selection Procedures (“UGESP”), 29 C.F.R. part 1607. Employers and other users of selection procedures should refer to the UGESP for guidance on matters, such as adverse impact, validation and recordkeeping requirements for national origin groups.

B. The Commission has found that the use of the following selection procedures may be discriminatory on the basis of national origin. Therefore, it will carefully investigate charges involving these selection procedures for both disparate treatment and adverse impact on the basis of national origin.

(1) Fluency-in-English requirements, such as denying employment opportunities because of an individual's foreign accent, or inability to communicate well in English.

(2) Training or education requirements which deny employment opportunities to an individual because of their foreign training or education, or which require an individual to be foreign trained or educated.

4. Speak–English-only rules

A. When applied at all times. A rule requiring employees to speak only English at all times in the workplace is a burdensome term and condition of employment. The primary language of an individual is often an essential national origin characteristic. Prohibiting employees at all times, in the workplace, from speaking their primary language or the language they speak most comfortably, disadvantages an individual's employment opportunities on the basis of national origin. It may also create an atmosphere of inferiority, isolation and intimidation based on national origin which could result in a discriminatory working environment. Therefore, the Commission will presume that such a rule is unlawful employment discrimination and will closely scrutinize it.

B. When applied only at certain times. An employer may have a rule requiring that employees speak only in English at certain times where the employer can show that the rule is work-related and justified by business necessity. Any such rule may nonetheless have a discriminatory impact on the basis of national origin, in which case the employee may prevail by showing that an alternative, less discriminatory means of achieving the business necessity was available to the employer.

C. Notice of the rule. It is common for individuals whose primary language is not English to inadvertently change from speaking English to speaking their primary language. Therefore, if an employer believes it has a business necessity for a speak-English-only rule at certain times, the employer should inform its employees of the general circumstances when speaking only in English is required and of the consequences of violating the rule. If an employer fails to effectively notify its employees of the rule and makes an adverse employment decision against an individual based on a violation of the rule, the Commission will consider the employer's application of the rule as evidence of unlawful employment discrimination on the basis of national origin.

SECTION 16. SEXUAL ORIENTATION OR GENDER IDENTITY DISCRIMINATION

In addition to any other unlawful practice on the basis of sexual orientation or gender identity prohibited by this chapter or the Act:

1. Obligation to make reasonable accommodations

A. It is unlawful employment discrimination for an employer, employment agency or labor organization to fail or refuse to make reasonable accommodations in rules, policies, practices or services that apply directly or indirectly to gender identity or gender expression, unless the covered entity can demonstrate that the accommodations would impose an undue hardship on the conduct of the business of the covered entity.

B. It is an unlawful employment practice for an employer, employment agency or labor organization to deny employment or labor organization membership opportunities to an applicant, employee or labor organization member if the denial is based on the need of the covered entity to make reasonable accommodations in rules, policies, practices or services that apply directly or indirectly to gender identity or gender expression, unless the covered entity can demonstrate that the accommodations would impose an undue hardship on the operation of the business of the covered entity.

C. With respect to the two preceding paragraphs, the burden of proof on the issue of whether the accommodations would impose an undue hardship is on the employer, employment agency or labor organization. Resolution of such cases depends on the specific factual circumstances and involves a balancing of the needs of the applicant, employee or labor organization member with the degree of hardship imposed on the covered entity’s business operation.

D. An employer, employment agency, or labor organization cannot establish an undue hardship by asserting that the individual’s sexual orientation or gender identity, or their expression of their sexual orientation or gender identity, would make others uncomfortable.

E. Examples of potential reasonable accommodations include, but are not limited to, allowing employees to go by the name of their choosing rather than their legal names while in the workplace; providing gender-neutral/nongendered restrooms; and modifying any uniform or dress code requirements to allow employees to dress in accordance with their gender identity.

SECTION 17. FAMILIAL STATUS DISCRIMINATION

In addition to any other unlawful practice on the basis of familial status prohibited by this chapter or the Act:

The inclusion of familial status as a protected class in employment is intended to recognize the changing structure of families. While many employment actions based on family caregiver status have previously been addressed as sex discrimination, because the burdens of family caregiving traditionally fell on females, that is no longer the case. Continuing to address policies and practices burdening caregivers as sex discrimination leaves male, transgender, and gender-diverse individuals without recourse when they are discriminated against because of their caregiving responsibilities.

Reasonable accommodations. It is unlawful discrimination for an employer, employment agency, or labor organization to fail upon request to provide a reasonable accommodation for an employee who requires one because of their familial status unless the employer, employment agency, or labor organization establishes that providing an accommodation would amount to an undue hardship on the operation of the business. Reasonable accommodations based on familial status may include, but are not limited to, permitting use of paid time off to care for family members covered by this section or using such time in small increments; the ability to carry a cell phone or other electronic notification device to receive information pertinent to their caregiving duties; or brief breaks (which may be unpaid) to respond to contacts from their covered family members specifically related to their caregiving responsibilities. Reasonable accommodations are required only when the accommodation relates directly to the employee’s need to provide necessary care to a protected family member.

Employer not responsible for additional benefits. Nothing in this subsection may be construed to mean that an employer, employment agency or labor organization is required to provide sick leave, a leave of absence, medical benefits or other benefits to a person because of their familial status, if the employer, employment agency or labor organization does not also provide sick leaves, leaves of absence, medical benefits or other benefits for the employer’s other employees and is not otherwise required to provide those leaves or benefits under other state or federal laws. Reasonable accommodations are not additional benefits.

Unlawful inquiries. Inquiries into an applicant’s availability on certain days or during certain hours may have an adverse impact on individuals based on their familial status. Rather than inquire into the applicant’s specific availability, employers should provide their regular hours and/or the anticipated schedule for the position, and ask the applicant whether they can work the anticipated schedule with or without a reasonable accommodation. Inquiries to applicants regarding their familial status, such as inquiries regarding whether they are or intend to become parents, their childcare plans, or the health of family members, shall be considered strong evidence of familial status discrimination.

SECTION 18. INDIVIDUALS WHO HAVE BEEN ISSUED ORDERS OF PROTECTION FROM ABUSE

In addition to any other unlawful practice on the basis of and individual’s receipt of a permanent protection from abuse order prohibited by this chapter or the Act:

The protections from discrimination for individuals who have received an order of protection shall apply to individuals with an active or current order of protection as well as individuals who have sought and/or obtained such an order in the past. In order to prevail, an individual must establish that the alleged discrimination was based on the issuance of the order, and/or assumptions or stereotypes about individuals with such orders.

Reasonable accommodations. It is unlawful discrimination for an employer, employment agency, or labor organization to fail upon request to provide a reasonable accommodation for an employee who requires one because of their receipt of an order of protection unless the employer, employment agency, or labor organization establishes that providing an accommodation would amount to an undue hardship on the operation of the business. Reasonable accommodations based on an order of protection may include, but are not limited to, alterations in work schedules, assignments, or locations; assigning or reassigning parking spaces; or other changes that are necessary in order to enforce limitations contained in the order of protection.

Orders of protection issued in other states. While the Act specifically references only orders of protection issued in the State of Maine, the Commission will consider claims of unlawful discrimination based on orders of protection obtained in other states to the extent those orders of protection are shown by the employee or applicant to be substantially equivalent to orders of protection issued under 19-A M.R.S. §4007.

SECTION 19. RACE AND COLOR DISCRIMINATION

In addition to any other unlawful practice on the basis of and individual’s receipt of a permanent protection from abuse order prohibited by this chapter or the Act:

Unlawful discrimination includes discrimination because of race and/or color. The Commission defines race and color broadly as including, but not limited to, the denial of equal employment opportunity because of an individual’s race and/or color; or because an individual has physical, cultural or linguistic characteristics associated with a particular race and/or color.

1. These protected traits include, but are not limited to, natural hair texture, Afro hair styles, and protective hair styles (such as braids, twists, and locks).

Discrimination on the basis of color includes discrimination based on shades of color, such as discrimination by individuals of the same race who have different pigmentation.

SECTION 20. RETALIATION, INTERFERENCE, AND OTHER UNLAWFUL DISCRIMINATION

1. Except as otherwise permitted by this chapter, it is unlawful discrimination for a person to:

A. Discriminate against any individual because that individual has opposed any act or practice that is unlawful under the Act or because that individual made a charge, testified, assisted or participated in any manner in an investigation, proceeding or hearing under the Act;

B. Coerce, intimidate, threaten or interfere with any individual in the exercise or enjoyment of the rights granted or protected by the Act or because that individual has exercised or enjoyed, or has aided or encouraged another individual in the exercise or enjoyment of, those rights;

C. Aid, abet, incite, compel or coerce another to do any type of unlawful employment discrimination;

D. Obstruct or prevent any person from complying with this Act or any order issued under it;

E. Attempt to do any act of unlawful discrimination;

F. Punish or penalize, or attempt to punish or penalize, any person for seeking to exercise any of the civil rights declared by the Act; or

G. Engage in the prohibited acts described in §5 of this chapter.

SECTION 21. DEFENSES

Defenses to an allegation of discrimination under this chapter or the Act may include, but are not limited to, the following:

1. Bona fide occupational qualification

A. It is a defense to unlawful employment discrimination under this chapter and the Act when such discrimination is based on a bona fide occupational qualification (“BFOQ”). The Commission construes the BFOQ exception very narrowly, and requires the person accused of discrimination to prove by a preponderance of the evidence that (1) the essence of the business operation requires the discriminatory practice and (2) there was a factual basis for the belief that all or substantially all persons in the excluded category would be unable to perform the job in a safe or efficient manner.

B. The following are examples of cases that do not warrant application of the BFOQ qualification exception, and will be considered unlawful employment practices.

(1) Refusal to select an individual for a position based on assumptions about comparative employment characteristics between protected classes. Examples include, but are not limited to, assumptions that: females are incapable of aggressive sales techniques; people over 40 years of age are too hard to retrain; or persons with physical or mental disabilities cannot perform high-level work. Selection must be based upon the individual’s capacities, not on stereotyped characterizations.

(2) Refusal to select an individual because of the preferences of coworkers, the employer, clients or customers. An example is the assertion that customers will be uncomfortable with a transgender salesperson, or that a person for whom English is not their primary language will be too difficult for others to understand.

(3) Refusal to hire a person for a position based on the fear that pregnancy or pregnancy-related conditions may in the future render them unable to work, or the belief that persons with children should not work or are less reliable employees.

C. The following situations are recognized as those in which a distinction based on protected class is a bona fide occupational qualification.

(1) Where it is necessary for the purpose of authenticity or genuineness, e.g., an actor or actress.

(2) The requirement by a religious corporation or association, not organized for private profit and in fact not conducted for private profit, that certain of its employees be members of that religious faith. For example, a requirement that a Rabbi be Jewish or that a member of a Roman Catholic religious order be a Roman Catholic is valid.

(3) The requirement by an employer, subject to a statute of the United States, an Executive Order of the President, or a valid regulation of a department of the Executive Branch of the Federal Government, imposed in the interests of national security, that its employees be citizens of the United States.

Religious entities

A. This chapter does not prohibit a religious corporation, association, educational institution or society from giving preference in employment to individuals of its same religion to perform work connected with the carrying on by the corporation, association, educational institution or society of its activities.

B. Under this chapter, a religious organization may require that all applicants and employees conform to the religious tenets of that organization.

C. Notwithstanding any other provision in this subsection, a religious entity may not discriminate against a qualified individual with a physical or mental disability, who satisfies the permitted religious criteria, on the basis of his or her physical or mental disability.

D. With respect to discrimination on the basis of sexual orientation or gender identity, the exception provided by the Act does not apply to any religious corporation, association, educational institution or society that receives public funds or is a for-profit organization owned, controlled, or operated by a religious association or corporation and subject to the provisions of the Internal Revenue Code , 26 U.S.C. §511(a).

3. Defenses relating to claims of physical or mental disability discrimination

A. Charges of discriminatory application of selection criteria —

(1) In general. It may be a defense to a charge of discrimination, as described in §13(1)(G) of this chapter, that an alleged application of qualification standards, tests, or selection criteria that screens out or tends to screen out or otherwise denies a job or benefit to an individual with a physical or mental disability has been shown to be job-related and consistent with business necessity, and such performance cannot be accomplished with reasonable accommodation, as required in this chapter.

(2) Direct threat as a qualification standard. The term “qualification standard” may include a requirement that an individual shall not pose a direct threat to the health or safety of the individual or others in the workplace. (See §2(3) of this chapter defining direct threat.)

B. Other disparate impact charges. It may be a defense to a charge of discrimination brought under this chapter that a uniformly applied standard, criterion, or policy has a disparate impact on an individual with a physical or mental disability or a class of individuals with physical or mental disabilities that the challenged standard, criterion or policy has been shown to be job-related and consistent with business necessity, and such performance cannot be accomplished with reasonable accommodation, as required in this chapter.

C. Charges of not making reasonable accommodation. It may be a defense to a charge of discrimination, as described in §13(1)(F) of this chapter, that a requested or necessary accommodation would impose an undue hardship on the operation of the covered entity's business.

D. Conflict with Federal laws. It may be a defense to a charge of discrimination under this chapter that a challenged action is required or necessitated by a Federal law or regulation, or that a Federal law or regulation prohibits an action (including the provision of a particular reasonable accommodation) that would otherwise be required by this chapter.

E. Additional defenses. It may be a defense to a charge of discrimination under this chapter that the alleged discriminatory action is specifically permitted by §13(3) or §21 of this chapter.

F. This chapter does not prohibit an employer from discharging or refusing to hire an individual with physical or mental disability, or subject an employer to any legal liability resulting from the refusal to employ or the discharge of an individual with physical or mental disability, if the individual, because of the physical or mental disability, is unable to perform the duties or to perform the duties in a manner that would not endanger the health or safety of the individual or others.

In deciding whether to hire, discharge or otherwise change the status or job description of a physically or mentally disabled applicant or employee, the employer shall use an objective standard. The employer shall not make the decision based upon general assumptions or stereotypes as to whether a particular physical or mental disability would interfere with the applicant’s or employee’s ability to safely perform the duties of the job.

SECTION 22. SPECIFIC ACTIVITIES PERMITTED

The following shall not be unlawful under this chapter or the Act:

1. Age

A. Apprenticeship programs. For labor organizations and employers to adopt a maximum age limitation in apprenticeship programs if the employer or labor organization obtains prior approval from the Maine Human Rights Commission of any maximum age limitation employed in an apprenticeship program. The Commission shall approve the age limitation if a reasonable relationship exists between the maximum age limitation employed and a legitimate expectation of the employer or labor organization in receiving a reasonable return upon their investment in an apprenticeship program. The employer or labor organization bears the burden of demonstrating that such a relationship exists.

B. To discriminate on account of age to comply with the state or federal laws relating to the employment of minors.

C. On account of age, to observe the terms of any bona fide employee benefit plan such as a retirement, pension or insurance plan that does not evade or circumvent the purpose of the Act and which complies with the Age Discrimination in Employment Act , United States Code, Title 29, Section 621, as amended, and the Americans with Disabilities Act , 42 United States Code, Section 12101 et seq ., and federal administrative interpretations thereof, including 29 C.F.R. §1625.10, provided that the benefit does not require or permit any employer to refuse or fail to hire an applicant because of the age of the individual; and provided that the benefit plan does not require or permit the denial or termination of employment of any individual because of the age of the individual or after completion of a specified number of years of service.

D. Bona fide seniority systems

(1) For an employer, employment agency, or labor organization to observe the terms of a bona fide seniority system that is not a subterfuge to evade the purposes of this chapter or the Act except that no such seniority system shall require or permit the involuntary retirement of any individual because of the age of such individual.

(2) Though a seniority system may be qualified by such factors as merit, capacity, or ability, any bona fide seniority system must be based on length of service as the primary criterion for the equitable allocation of available employment opportunities and prerogatives among younger and older workers.

(3) Adoption of a purported seniority system which gives those with longer service lesser rights, and results in discharge or less favored treatment to those within the protection of the Act, may, depending upon the circumstances, be a “subterfuge to evade the purposes” of the Act.

(4) Unless the essential terms and conditions of an alleged seniority system have been communicated to the affected employees and can be shown to be applied uniformly to all of those affected, regardless of age, it will not be considered a bona fide seniority system within the meaning of the Act.

(5) It should be noted that seniority systems which segregate, classify, or otherwise discriminate against individuals on the basis of other protected classes than age are also prohibited under the Act, where the Act otherwise applies. The “bona fides” of such a system will be closely scrutinized to ensure that such a system is, in fact, bona fide.

E. Federal requirements . This chapter shall not be construed to affect or limit any power or duty relating to pension or retirement plans which the United States Government reserves to itself.

F. As specified in 29 C.F.R. §1625.31, all activities and programs under Federal contracts or grants, or carried out by the public employment services of the several States, designed exclusively to provide employment for, or to encourage the employment of, persons with special employment problems, including employment activities and programs under the Manpower Development and Training Act of 1962 , Pub.L. No. 87–415, 76 Stat. 23 (1962), as amended, and the Economic Opportunity Act of 1964 , Pub.L. No. 88–452, 78 Stat. 508 (1964), as amended, for persons among the long-term unemployed, individuals with disabilities, members of minority groups, older workers, or youth.

G. Coordination of retiree health benefits with Medicare or a comparable State health benefit plan, as specified in 29 C.F.R. §1625.32.

2. Physical or mental disability

With regard to individuals with physical or mental disabilities:

A. Claims of no disability. Nothing in this chapter shall provide the basis for a claim that an individual without a physical or mental disability was subject to discrimination because of their lack of physical or mental disability, including a claim that an individual with a physical or mental disability was granted an accommodation that was denied to an individual without a physical or mental disability.

B. Infectious and communicable diseases; food handling jobs –

(1) In general. In any case in which an individual has an infectious or communicable disease that is transmitted to others through the handling of food, that is included on the list developed by the United States Secretary of Health and Human Services under the Americans with Disabilities Act , Title I, Section 103(d)(1), and which cannot be eliminated by reasonable accommodation, a covered entity may refuse to assign or continue to assign the individual a job involving food handling.

(2) Nothing in this chapter or the Act may be construed to preempt, modify or amend any state, county or local law, ordinance, rule or regulation applicable to food handling that is designed to protect the public health from individuals who pose a significant risk to the health or safety of others, which cannot be eliminated by reasonable accommodation, pursuant to the list of infectious or communicable diseases and the modes of transmissibility published by the United States Secretary of Health and Human Services.

C. Health insurance, life insurance, and other benefit plans –

(1) An insurer, hospital, or medical service company, health maintenance organization, or any agent or entity that administers benefit plans, or similar organizations may underwrite risks, classify risks, or administer such risks that are based on or not inconsistent with State law.

(2) A covered entity may establish, sponsor, observe or administer the terms of a bona fide benefit plan that are based on underwriting risks, classifying risks, or administering such risks that are based on or not inconsistent with State law.

(3) A covered entity may establish, sponsor, observe, or administer the terms of a bona fide benefit plan that is not subject to State laws that regulate insurance.

(4) The activities described in subparagraphs (C) (1), (2), and (3) of this sub-section are permitted unless these activities are being used as a subterfuge to evade the purposes of this chapter or the Act.

3. Regulation of alcohol and drugs. A covered entity:

A. May prohibit the illegal use of drugs and the use of alcohol at the workplace by all employees;

B. May require that employees not be under the influence of alcohol or be engaging in the illegal use of drugs at the workplace;

C. May require that all employees behave in conformance with the requirements established under the Drug–Free Workplace Act of 1988 , 41 U.S.C. §§ 701 et seq .;

D. May hold an employee who engages in the illegal use of drugs or who is an alcoholic to the same qualification standards for employment or job performance and behavior to which the entity holds its other employees, even if any unsatisfactory performance or behavior is related to the employee's drug use or alcoholism; provided that an employer shall make reasonable accommodation to an alcoholic or drug user who is seeking treatment or has successfully completed treatment;

E. May require that its employees employed in an industry subject to such regulations comply with the standards established in the regulations (if any) of the Departments of Defense and Transportation, and of the Nuclear Regulatory Commission, regarding alcohol and the illegal use of drugs; and

F. May require that employees employed in sensitive positions comply with the regulations (if any) of the Departments of Defense and Transportation and of the Nuclear Regulatory Commission that apply to employment in sensitive positions subject to such regulations.

4. Drug testing –

A. General policy. For purposes of this chapter, a test to determine the illegal use of drugs is not considered a medical examination. Thus, the administration of such drug tests by a covered entity to its job applicants or employees is not a violation of §13(2) of this chapter. However, this chapter does not encourage, prohibit, or authorize a covered entity to conduct drug tests of job applicants or employees to determine the illegal use of drugs or to make employment decisions based on such test results.

B. Transportation employees. This chapter does not encourage, prohibit, or authorize the otherwise lawful exercise by entities subject to the jurisdiction of the Department of Transportation of authority to:

(1) Test employees of entities in, and applicants for, positions involving safety sensitive duties for the illegal use of drugs or for on-duty impairment by alcohol; and

(2) Remove from safety-sensitive positions persons who test positive for illegal use of drugs or on-duty impairment by alcohol pursuant to subparagraph (B)(1) of this paragraph.

C. Confidentiality. Any information regarding the medical condition or history of any employee or applicant obtained from a test to determine the illegal use of drugs, except information regarding the illegal use of drugs, is subject to the requirements of §13(B)(2) and (3) this chapter.

5. Regulation of smoking

A covered entity may prohibit or impose restrictions on smoking in places of employment. Such restrictions do not violate any provision of this chapter.

6. Records

A. After employment or admission to membership, to make a record of such features of an individual as are needed in good faith for the purpose of identifying them, provided the record is intended and used in good faith solely for identification, and not for the purpose of discrimination in violation of this chapter or the Act. Records of features regarding physical or mental disability that are collected must be collected and maintained on separate forms and in separate files and be treated as confidential records; or

B. To record any data required by law, or by the rules and regulations of any state or federal agency, provided the records are recorded and kept in good faith for the purpose of complying with law, and are not used for the purpose of discrimination in violation of this chapter or the Act

7. Federal Indian policy

For any business or enterprise on or near an Indian reservation to follow any publicly announced employment practice of such business or enterprise under which a preferential treatment is given to any individual because he is they are an Indian living on or near a reservation.

8. The national security exception

It is not unlawful under this chapter or the Act to deny employment opportunities to any individual who does not fulfill the national security requirements stated in 42 U.S.C. §2000e-2(g).

History

• STATUTORY AUTHORITY: 5 M.R.S. §4566(7)
• EFFECTIVE DATE: December 5, 1979 – filing 79-536
• AMENDED: October 1, 1980 – filing 80-260
• AMENDED: April 8, 1985 - Sections 1, 2 & 3 – filing 85-122
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 12, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2 and 29, 1996 - minor spelling.
• NON-SUBSTANTIVE CORRECTIONS: April 8, 1997 - Section 3.10(B)(4) - “to prohibited” changed to “is prohibited”
• AMENDED: June 14, 1997 - Section 3.06(F)(2) – filing 97-203
• REPEALED AND REPLACED: July 17, 1999 – filing 99-291
• NON-SUBSTANTIVE CORRECTION: March 13, 2000 - removed an underline fragment
• AMENDED: July 20, 2005 – filing 2005-293, adding 3.02(C)(3)
• AMENDED: March 21, 2007 – 3.02, 3.04(B)(2), 3.08(E), 3.08(F)(1), 3.08(I) - filing 2007-104
• AMENDED: September 15, 2007 – filing 2007-385
• AMENDED: April 14, 2008 – repeal of 3.02(C), renumbering - filing 2008-161
• REPEALED AND REPLACED: September 24, 2014 – filing 2014-227
• AMENDED: December 10, 2022 – filing 2022-236

Chapter 4 Equal Educational Opportunity (Chapter 4 is a joint chapter with 05-071.)

Code Me. R. 94-348 Ch. 4 Equal Educational Opportunity {#sec-94-348-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 4}

4.01 GENERALLY

A. Purpose

Pursuant to Title 5, M.R.S.A., §§ 4551 et seq ., as amended by P.L. 1983 c. 578, the Maine Human Rights Commission and the Commissioner of Education adopt this rule designed to assure nondiscrimination on the basis of sex in the educational institutions of the State of Maine.

B. Effect

This rule shall be accorded the full force and effect of interpretative administrative regulations.

C. Construction

(1) Consistent with the public policy underlying the Maine Human Rights Act, this rule shall be liberally construed to accomplish the purposes of the governing legislation.

(2) Should any provision or the application of any provision of this rule to any educational institution, be held invalid, such invalidity shall not affect other provisions or applications which can be given effect without the invalid provision or its application.

4.02 DEFINITIONS

All terms used in this rule, unless the context otherwise indicates, shall have the same meaning as in the Maine Human Rights Act, Title 5, M.R.S.A. §§ 4551, et seq ., and applicable provisions of Title 20-A.

A. Commission: “Commission” shall mean the Maine Human Rights Commission.

B. Educational institution: “Educational institution" shall mean any public school or educational program, any public post-secondary institution, and any private school or educational program approved for tuition purposes if both male and female students are admitted, and the governing body of each such school or program. The governing body shall include, as appropriate, school committees, boards of directors of school administrative units, cooperative boards of vocational regions, the boards of trustees of the University of Maine and Maine maritime Academy, the State Board of Education for the vocational-technical institutes, the Commissioner of Education for schools in the unorganized territory and the Governor Baxter School for the Deaf, and boards of trustees or directors of private schools.

C. Unlawful educational discrimination: "Unlawful educational discrimination" shall mean action on the basis of sex to:

(1) Exclude a person from participation in, deny a person the benefits of, or subject a person to, discrimination in any academic extracurricular, research, occupational training or other program or activity;

(2) Deny a person equal opportunity in athletic programs;

(3) Apply any rule concerning the actual or potential family or marital status of a person or to exclude any person from any program or activity because of pregnancy or related conditions;

(4) Deny admission to the institution or program or to fail to provide equal access to and information about an institution or program through recruitment; or

(5) Deny financial assistance availability and opportunity.

D. Approved for tuition purposes: An institution "approved for tuition purposes" shall mean any school or educational program approved by the Commissioner of Education for the receipt of public funds pursuant to Title 20-A, Maine Revised Statutes, §§ 2951, 5104, 7252.

4.03 GENERAL REQUIREMENT OF NONDISCRIMINATION

A. Nondiscrimination

The right to freedom from discrimination on the basis of sex in public and publicly supported educational institutions is recognized and declared to be a civil right. This right includes the opportunity for an individual at an educational institution to participate in all academic and extra-curricular programs and related activities without discrimination on the basis of sex.

B. Affirmative Action

Remedial action which results in preferential treatment of one sex, undertaken pursuant to court order or a formal consent decree or settlement as the result of action by an authorized federal or state agency, shall not be unlawful educational discrimination for purposes of the Act.

Affirmative action resulting in preferential treatment of one sex, if undertaken pursuant to an affirmative action plan adopted by the governing body of the institution, shall be deemed not to be unlawful educational discrimination under the Act. Such affirmative action plans may be adopted in the absence of a finding of unlawful educational discrimination to overcome the effects of conditions of the past which have resulted in limited participation by persons of one sex and may involve special recruitment, counseling and other efforts to encourage the participation of members of that sex in programs or activities traditionally entered by the opposite sex. Neither sex can be entirely excluded from any activity by such affirmative action efforts. Nothing in this section, however, shall limit the ability of an educational institution to sponsor a single sex team in interscholastic or intercollegiate athletic competitions in compliance with § 4.11(C).

4.04 ADMISSIONS

A. General

No person shall, on the basis of sex, be denied admission, or be subjected to discrimination in admission by any educational institution to which the Act applies.

B. Specific Prohibitions

(1) In determining whether a person satisfies any policy or criterion for admission, or in making any offer or referral of admission, a educational institution shall not:

a. Give preference to one person over another on the basis of sex, by ranking applicants separately on such basis, or otherwise;

b. Apply numerical limitations upon the number or proportion of persons of either sex who may be admitted; or

c. Otherwise treat one individual differently from another on the basis of sex.

(2) Any standards used as part of the admissions process, including but not limited to testing, the use of recommendations and interviewing, to any public school shall not discriminate on the basis of sex.

4.05 RECRUITMENT

An educational institution shall not discriminate on the basis of sex in the recruitment of students. Written materials or recruitment activities used by an educational institution to recruit students shall not contain references suggesting the predominance of one sex or preference for one sex.

4.06 ACADEMIC PROGRAMS

A. Availability of Programs and Courses

Each and every academic program and course offered by an educational institution shall be open and available to students regardless of sex. Nothing herein shall be construed to prohibit the use of prerequisites that have been demonstrated to be essential to success in a given program or course. However, if participation in a program or course is dependent upon completion of a prerequisite which was previously limited to students of one sex, then all members of the previously excluded group shall be given the opportunity to acquire the prerequisites or be allowed to enter the program or course without such prerequisites. If it cannot be shown that a prerequisite is essential to success in a given program or course, the prerequisite shall be abolished.

B. Required Courses

The determination of what courses are required of any student shall be made without regard to sex.

C. Scheduling of Classes

The scheduling of students into classes shall not be done on the basis of sex, except as authorized in sections 4.09 and 4.18.

4.07 VOCATIONAL PROGRAMS

The assignment of students into vocational programs or courses, including cooperative education, apprenticeships or on-the-job training sites, shall not be done on the basis of sex. Each educational institution shall require cooperating employers, vocational trainers, and special contractors to pledge that opportunities will not be restricted on the basis of sex. Where there is reasonable evidence of discrimination on the basis of sex, responsible officials of the educational institution shall take appropriate corrective action, including, but not limited to, terminating the relationship with the outside person.

4.08 PHYSICAL EDUCATION

A. Assignments

The assignment of students to physical education courses shall not be done on the basis of sex. This section does not prohibit the grouping of students in physical education classes by ability as assessed by objective standards of individual performance developed and applied without regard to sex.

B. Effective Date

With respect to physical education courses at the secondary and postsecondary levels, the educational institution shall comply fully with this section as expeditiously as possible but in no event later than January 1, 1985.

4.09 HUMAN SEXUALITY

Portions of courses in elementary and secondary schools which exclusively treat the topic of human sexuality may be conducted in separate sessions for boys and girls.

4.10 VOCAL INSTRUCTION

Educational institutions may establish standards for participation based on vocal range or quality which result in a chorus or choruses of one sex so long as comparable alternative vocal musical opportunities are available to students of the opposite sex.

4.11 ATHLETICS

A. General

No person shall, on the basis of sex, be excluded from participation in, be denied the benefits of, be treated differently from another person or otherwise be discriminated against in any interscholastic, intercollegiate, club or intramural athletics offered by an educational institution.

B. Equal Opportunity

An educational institution which sponsors or participates in interscholastic, intercollegiate, club or intramural athletics shall provide an overall equal athletic opportunity for both sexes.

To provide equal opportunity in these programs, an institution must select sports and levels of competition which effectively accommodate the interests and abilities of both sexes and provide equal opportunities on a seasonal basis.

This section does not require all teams to be integrated or the provision of identical sports for both sexes.

In determining whether equal opportunities are available in athletics programs, the Commission shall consider whether the following are substantially equal:

• The provision of equipment and supplies;

• Scheduling of games and practice time;

• Travel and per diem allowance;

• Opportunity to receive coaching and academic tutoring;

• Assignment of coaches, tutors and officials;

• Provision of locker rooms, practice and competitive facilities;

• Provision of medical and training machine facilities and services;

• Provision of housing and dining facilities and services;

• Provision of supportive services and benefits, including publicity, band and cheerleading support sponsored by the educational institution.

Unequal aggregate expenditures for members of each sex or unequal expenditures for male and female teams if an educational institution operates or sponsors separate teams will not constitute per se noncompliance with this section, but the Commission may consider the failure to provide necessary funds for teams of one sex in assessing general equality of opportunity.

C. Single-Sex Teams

An educational institution may sponsor single-sex team in interscholastic or inter-collegiate athletics competitions in the following instances:

(1) The institution sponsors a team for each sex in the same sport.

(2) The sport is boxing.

(3) The educational institution establishes one team in a sport and, as a result of athletic competition for places on the team, or the lack of interest of students, only the members of one sex become members of the team.

In such a case, the educational institution must provide equal opportunity in athletics by sponsoring a team in another sport which effectively accommodates the interests and abilities of the opposite sex.

(4) The educational institution establishes a single sex team in one or more sports in order to accommodate effectively the interests and abilities of one sex and to increase the general opportunities for participation by that sex.

This may be done where competition open to both sexes has or will likely result in an overall lessening of equal opportunities in athletics for one sex.

4.12 COUNSELING

A. Counseling

An educational institution shall not discriminate against any person on the basis of sex in the counseling or guidance of students or applicants.

B. Use of Appraisal and Counseling Materials

An educational institution which uses testing or other materials for appraising or counseling students shall not use different materials for students on the basis of their sex or use materials which permit or require different treatment of students on such basis unless such different materials cover the same occupations and interest areas and the use of such different materials would encourage members of one sex to enter programs or activities which are traditionally entered by the opposite sex.

4.13 COMPARABLE FACILITIES

An educational institution may provide separate toilet, locker room, and shower facilities on the basis of sex, but such facilities provided for students of one sex shall be comparable to such facilities provided for students of the other sex.

4.14 HOUSING

A. Generally

An educational institution shall not, on the basis of sex, apply different rules or regulations, impose different fees or requirements, or offer different services or benefits related to housing, except as provided in this section (including housing provided only to married students).

B. Separate Housing Facilities

An educational institution may provide separate housing on the basis of sex. However, housing provided by an educational institution to students of one sex, when compared to that provided to students of the other sex, shall be as a whole:

(1) Proportionate in quantity to the number of students of that sex applying for such housing, and

(2) Comparable in quality and cost to the student.

4.15 FINANCIAL ASSISTANCE

A. General

Except as provided in subsections B and C of this section, an educational institution, in providing financial assistance to any of its students shall not:

(1) On the basis of sex, provide different amount of types of such assistance, limit eligibility for such assistance which is of any particular type or source, apply different criteria, or otherwise discriminate;

(2) Apply any rule concerning eligibility for such assistance which treats persons of one sex differently from persons of the other sex with regard to marital or parental status.

B. Financial Aid Established by Certain Legal Instruments

An educational institution may administer or assist in the administration of scholarships, fellowships, or other forms of financial assistance established pursuant to domestic or foreign wills, trusts, bequests, or similar legal instruments or by acts of a foreign government which requires that awards be made to members of a particular sex specified therein; provided that the aggregate of all the awards of such sex-restricted scholarships, fellowships, and other forms of financial assistance does not discriminate on the basis of sex.

C. Athletic Scholarships

(1) To the extent that an educational institution awards athletic scholarships or grants-in-aid, it must provide reasonable opportunities for such awards for members of each sex in proportion to the number of students of each sex participating in interscholastic or intercollegiate athletics.

(2) Separate athletic scholarships or grants-in-aid for members of each sex may be provided as part of separate athletic teams for members of each sex to the extent consistent with this section.

4.16 EMPLOYMENT ASSISTANCE TO STUDENTS

A. Assistance by Educational Institution in Making Available Outside Employment

An educational institution which assists any agency, organization, business or person in making employment available to any of its students shall meet the following:

(1) It shall take reasonable steps to assure that such employment is made available without discrimination on the basis of sex; and

(2) It shall not render such services to any agency, organization, business or person which discriminates on the basis of sex in its employment practices; and shall issue that any employment recruitment activities are offered to both male and female students in a non-discriminatory manner.

4.17 HEALTH AND INSURANCE BENEFITS AND SERVICES

In providing a medical, hospital, accident, or life insurance benefit, service, policy, or plan to any of its students, an educational institution shall not discriminate on the basis of sex, or provide such benefit, service, policy, or plan in a manner which would constitute discrimination on the basis of sex.

4.18 MARITAL OR PARENTAL STATUS

An educational institution shall not establish or implement any policy concerning a student's actual or potential parental, family, or marital status which treats students differently on the basis of sex.

B. Pregnancy and Related Conditions

(1) An educational institution shall not unlawfully discriminate against any student, or exclude any student from any program or course activity on the basis of such student's pregnancy, childbirth, false pregnancy, termination of pregnancy or recovery therefrom.

(2) An educational institution may require such a student to obtain the certification of a physician that the student is able to continue participation in the regularly scheduled program, course or activity so long as such a certification is required of all students for other conditions which may require the attention of a physician.

(3) An educational institution which operates a portion of its programs or activities separately for pregnant students, admission to which is voluntary on the part of the student as provided in paragraph (b) (1) of this section, shall ensure that the separate instruction is comparable to that offered to other students.

(4) An educational institution shall treat pregnancy, childbirth, false pregnancy, termination of pregnancy and recovery therefrom in the same manner and under the same policies as any other temporary disability with respect to any medical or hospital benefit service, plan, or policy which such educational institution administers, operates, offers, or participates in with respect to students admitted to the institution's educational programs.

(5) In the case of an educational institution which does not maintain a leave policy for its students, or in the case of a student who does not otherwise qualify for leave under such a policy, an educational institution shall treat pregnancy, childbirth, false pregnancy, termination of pregnancy and recovery therefrom as a justification for a leave of absence for so long a period of time as is deemed medically necessary by the student's physician, at the conclusion of which the student shall be reinstated to the status which she held when the leave began.

Public schools, however, shall excuse students who are disabled by pregnancy, as an excusable absence pursuant to Title 20-A, section 5001-A (4).

(6) Nothing in this rule shall prevent a school from providing educational programs/courses and related activities separately to pregnant students, who, with the consent of their parents, request to be excused from regular programs and activities.

4.19 SEXUAL HARASSMENT

Harassment on the basis of sex shall be unlawful educational discrimination within the meaning of Title 5, §4602. This shall include unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature in the following situations:

(1) Submission to such conduct is made either explicitly or implicitly a term or condition of a student's educational benefits;

(2) Submission to or rejection of such conduct by a student is used as the basis for decisions on educational benefits;

(3) Such conduct has the purpose or effect of substantially interfering with an individual's academic performance or creating an intimidating, hostile or offensive educational environment.

4.20 EXCLUSIONS

A. Social Fraternities and Sororities

This rule does not apply to the membership practices of social fraternities and sororities which are exempt from taxation under Section 501(a) of the Internal Revenue Code of 1954, the active membership of which consists of students at institutions of higher education.

B. Special Occasions or Events

This rule does not prohibit the occasional holding of special events organized for members of one sex, such as father-son, mother-daughter dinners.

C. Single Sex Organizations

This rule does not prohibit the single-sex membership practices of The Girl Scouts, Boy Scouts, Young Men's Christian Association, Young Women's Christian Association, Boys State, Girls State, or other such groups which may use the facilities of the educational institution.

EFFECTIVE DATE:

August 25, 1984 - filing 84-291, Chapters 4 and 4-a

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 12, 1996

AMENDED:

July 30, 1996 - Section 11 (C) (2) – Chapter 4 only, filing 96-316, jointly with Department of Education

NON-SUBSTANTIVE CORRECTIONS:

October 2 and 29, 1996 - minor spelling.

REPEALED AND REPLACED:

September 19, 2000 – Chapters 4 and 4-A, filing 2000-395, jointly with Department of Education

AMENDED:

February 8, 2010 – Chapter 4-A only, filing 2010-21, jointly with Department of Education

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 4 Procedural Rule: Equal Educational Opportunity (Chapter 4-A is a joint chapter with 05-071.)

Code Me. R. 94-348 Ch. 4 -A: Procedural Rule: Equal Educational Opportunity {#sec-94-348-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 4}

4-A.01 GENERALLY

Pursuant to 5 M.R.S.A. §4603 the Maine Human Rights Commission and the Commissioner of Education adopt this rule as a companion procedural rule to Chapter 4 on Equal Educational Opportunity. This rule shall govern the procedure to be followed in processing claims of unlawful educational discrimination filed with the Commission.

4-A.02 DEFINITIONS

All terms used in this rule, unless the context otherwise indicates, shall have the same definition as in the Maine Human Rights Act, 5 M.R.S.A. §§ 4551, et seq. (the Act), and applicable provisions of Title 20-A, Maine Revised Statutes.

A. Commission: "Commission” shall mean the Maine Human Rights Commission.

B. Educational Institution: "Educational institution" shall mean any public school or educational program, any public postsecondary institution, including the University of Maine System and the Maine Maritime Academy, and any private school or educational program approved for tuition purposes if both male and female students are admitted, and the governing body of each such school program. The governing body shall include, but not be limited to, school committees, boards of directors, regional boards of vocational regions, the boards of trustees of the University of Maine System and Maine Maritime Academy, the State Board of Education for the vocational technical institutes, the Commissioner of Education for schools in the unorganized territory and the Governor Baxter School for the Deaf and the board of trustees or directors of private schools or programs.

C. Unlawful educational discrimination: “Unlawful educational discrimination" shall mean action on the basis of sex to:

(1) Exclude a person from participation in, deny a person the benefits of, or subject a person to, discrimination in any academic extracurricular, research, occupational training or other program or activity;

(2) Deny a person equal opportunity in athletic programs;

(3) Apply any rule concerning the actual or potential family or marital status of a person or to exclude any person from any program or activity because of pregnancy or related conditions;

(4) Deny admission to the institution or program or to fail to provide equal access to and information about an institution or program through recruitment; or

(5) Deny financial assistance availability and opportunity.

D. Approved for tuition purposes: An institution "approved for tuition purposes” shall mean any school or educational program approved by the Commissioner of Education for the receipt of public funds pursuant to 20-A M.R.S.A. §§ 2951 and 7204(4).

E. Public School: “Public school" shall mean:

(1) an elementary or secondary school or special education or alternative program operated by a school administrative unit or other public agency; or

(2) a “public charter school” within the meaning of Title 20-A, Chapter 112.

4-A.03 COMPLAINTS

A. Who May File

(1) Any person who believes that he/she has been subjected to unlawful educational discrimination may file a complaint with the Maine Human Rights Commission (the Commission).

Where the complainant is a minor or legally incompetent person, the complaint shall be filed by her/his parent or legal guardian or, if none, by the adult with whom the complainant resides and who exercises parental responsibilities.

(2) Any employee of the Commission may file a complaint with the Commission alleging an act or practice of unlawful educational discrimination.

B. Contents

A complaint should briefly set forth the facts and circumstances surrounding the alleged discrimination.

C. When to File

A complaint of discrimination must be filed with the Commission not more than 300 days after the act of alleged discrimination occurred.

D. Where to file

Complaints may be filed at the office of the Maine Human Rights Commission, 51 State House Station, Augusta, Maine 04333-0051.

E. How to file

Complaints may be filed in person or by mail by filling out a form provided by the Commission and shall be under oath.

Upon request, Commission staff will assist in the preparation of the necessary complaint forms. Aggrieved persons may provide information by mail, telephone, or email. Commission staff may request that intake forms be prepared and submitted. If the information received alleges a violation of the Act, Commission staff will reduce the information to writing on the appropriate complaint form and send it to the aggrieved person to be notarized and filed with the Commission.

F. Amendment of complaints

Complaints may be amended to cure technical defects or omissions, including failure to swear to the complaint under oath before a Notary Public, or to clarify and amplify allegations made therein. Such amendments and amendments alleging additional acts that constitute unlawful practices related to or growing out of the subject matter of the original complaint will relate back to the date the complaint was first received.

G. withdrawal of Complaints

(1) A complaint may be withdrawn at any time, by written request, prior to the issuance of a statement of finding by the Commission, by the person who originally filed it, provided, however, that where the investigation and processing of a complaint have been completed prior to the receipt of a written request for withdrawal, withdrawal is subject to Commission approval. Upon notification of approval of withdrawal, the Commission staff shall cease its investigation.

(2) Withdrawal of an individual complaint, however, will not necessarily preclude the investigation and processing of any complaint filed by an employee or member of the Commission that alleges the same acts of discrimination.

H. Administrative Dismissal

The Commission's Executive Director may, in her/his discretion, administratively dismiss complaints of unlawful educational discrimination for such reasons as:

(1) lack of jurisdiction;

(2) failure to substantiate the complaint of discrimination;

(3) failure to file a complaint of discrimination within 300 days of the date of alleged discrimination;

(4) failure by complainant to proceed or cooperate with the investigation; or

(5) failure by complainant to accept reasonable offers to resolve the allegations in the complaint.

Immediately following administrative dismissal, the Commission shall notify the complainant and the respondent of its action, and shall inform the complainant of her/his rights to proceed pursuant to 5 M.R.S.A. §4621 and of the right to file a separate complaint with the Commissioner of Education pursuant to 20-A M.R.S.A. §258-A and the rules and policies of the Department of Education governing the investigation and resolution of complaints of discrimination on the basis of sex.

4-A.04 NOTIFICATION

Whenever a complaint has been filed, pre-screened, notarized, and assigned a case number, the educational institution against which the complaint has been filed, referred to hereafter as the respondent, will be notified and provided with a copy of the complaint. Notification shall be given to the chair of the educational institution's governing board and the chief administrative officer of the educational institution. The complainant will be provided with a copy of the notification. The notice will advise the parties of time limits applicable to complaint processing under this chapter and of the procedural rights and obligations of the parties under the Act and this chapter. The notice will advise the parties of the complainant’s right to commence a civil action in the Superior Court. The notice will advise the respondent that it is unlawful to discriminate against any person because the person made a complaint or testified, assisted, or participated in an investigation, proceeding, or hearing under the Act. The Commissioner of Education shall also receive notice of any allegations of unlawful educational discrimination in all public schools and programs and in private schools and programs approved for tuition purposes.

4-A.05 REFERRAL TO LOCAL GRIEVANCE PROCEDURES

A. Referral for Action Through Local Grievance Procedure

The Commission and its representatives shall refer complaints to the respondent educational institution for ten (10) days to enable the grievance procedure established by the educational institution to review the complaint and resolve the matter with the complainant, prior to investigatory action or settlement discussions by the Commission or its representatives.

B. Exceptions

The Commission is not required to refer any complaint where the educational institution has not established a grievance procedure or where the complaint alleges sexual harassment by a member of the educational institution.

4-A.06 EARLY RESOLUTION SETTLEMENT

A. Settlement Discussion

After notification and prior to a determination of whether there are reasonable grounds to believe that unlawful educational discrimination has occurred, the Commission’s Compliance Manager or her/his designee will engage in a settlement discussion. The Compliance Manager will encourage written agreements between the parties to resolve the matter. The Compliance Manager may also offer the parties an opportunity to participate in a third-party neutral mediation program established by the Commission.

B. Early Resolution

Prior to a determination by the Commission of whether there are reasonable grounds to believe that unlawful discrimination has occurred, if the matter is resolved to the mutual satisfaction of the complainant and respondent and to the satisfaction of the Commission’s Executive Director or her/his designee, the Executive Director or her/his designee shall have the authority to sign any settlement agreement on behalf of the Commission, together with the parties. When the Commission agrees in any negotiated settlement not to process that complaint further, the Commission's agreement shall be in consideration for the promises made by the other parties to the agreement. The complaint will be dismissed by the Executive Director or her/his designee upon ascertainment that the terms of the agreement have been met.

B-1. In the alternative, the Commission’s Compliance Manager or her/his designee or a mediator assigned pursuant to a third-party neutral mediation program established by the Commission may facilitate a settlement between the parties resulting in the withdrawal of the complaint pursuant to 4-A.03(G).

C. Confidentiality

The content of these predetermination discussions and any final settlement agreement are confidential and may not be disclosed, or used in any subsequent civil or criminal proceeding, without the written consent of the parties, except in a civil action filed by one party alleging a breach of the settlement agreement. Notwithstanding this provision, the Commission and its employees have discretion to disclose such information to a party as is reasonably necessary to facilitate settlement.

4-A.07 INVESTIGATION

A. Preliminary Investigation

After a complaint has been filed, pre-screened, notarized, and assigned a case number, a Commission investigator will conduct such preliminary and impartial investigation as is necessary. An investigation may involve fact-finding meetings and interviews with the complainant, the respondent, and any other persons whose statements may provide a source of evidence. The investigator may record, by mechanical, electronic or other means, all statements by all persons involved.

B. Commission's Right of Access

The Commission's investigator shall have access at all reasonable times to the premises, records, documents, individuals, and other evidence or possible sources of evidence and may examine, record, and copy such materials and take and record the testimony or statements of such persons as are reasonably necessary for the furtherance of the investigation. The Commission’s investigators are hereby delegated the authority to administer oaths.

The Commission and any representative shall have access to individual educational records, only with the permission of parents or students of majority age, in educational institutions governed by the Family Educational Rights and Privacy Act of 1974, the Education of All Handicapped Children Act of 1975, and 20-A M.R.S.A. §6001, except when a subpoena or court order has been issued.

C. Production of Evidence

Documents, records, files, or other possible sources of evidence shall be produced within the time specified by a Commission representative's written request for their production, unless the person processing them demonstrates that production within the time specified would impose an unjustifiable burden. Excessive delay or failure to produce the requested materials may result in the issuance of a subpoena by the Commission for their production.

D. Subpoena Power

(1) Form: Subpoenas shall be issued in the name of the Maine Human Rights Commission, shall designate the Commission as recipient of the material or testimony specified, and shall designate a specific time and place for the production of the documents and/or testimony.

(2) When Available: A subpoena may be used to compel testimony or the production of documents whenever there is reasonable cause to believe that those materials or the testimony of the persons are material to the complaint.

(3) Procedure: When the Commission’s Executive Director or Commission Counsel determines that there is reasonable cause to believe that testimony or documents being withheld are material to investigation of the complaint, the Executive Director or Commission Counsel may issue a subpoena.

The subpoena shall include: the name and address of the respondent subject of the subpoena; if the subject of the subpoena is not an individual, the name of the senior officer or person in charge; a brief description of the documents requested and/or the name and title of the person(s) whose testimony is requested; and the date, time and place such production and/or testimony is requested.

If a subpoena is issued, notice must be given to the complainant and the respondent.

(4) Service. Subpoenas may be served by any person who is not a party to the proceeding and who is not less than eighteen (18) years of age. Service shall be made by delivering a copy of the subpoena to the person named therein and tendering to that person the fees and mileage paid to witnesses in the Superior Court of this State.

(5) Return: The person serving the subpoena shall make proof of service by filing the original of such subpoena and an affidavit of acknowledgment of service with the Commission. However, failure to make sure proof of service shall not affect the validity of such subpoena and service.

(6) Enforcement: If any person refuses to obey a subpoena, the Commission may apply to any justice of the Superior Court for an order compelling compliance with the subpoena.

(7) Opposition: Any person served with a subpoena may oppose it by applying for judicial review in Superior Court.

E. Deferral to Department of Education; Joint Investigations

Upon agreement of the complainant, or by decision of the Commission's Executive Director, and with consent of the Commissioner of Education, the complaint may be referred to the Department of Education for an investigation pursuant to that Department's procedures. The Commission's Executive Director may defer further investigation and action until completion of the investigation of the Department of Education and receipt of the Department's report and recommendations as to appropriate action.

With the consent of the Commissioner of Education and the Commission’s Executive Director, a joint investigation may be pursued by the Commission and the Department.

E-1. Prior to the conclusion of an investigation, all information possessed by the Commission relating to the investigation is confidential and may not be disclosed, except that the Commission and its employees have discretion to disclose such information as is reasonably necessary to further the investigation. The complaint and evidence collected during the investigation, other than data identifying persons who are not parties, shall become a matter of public record upon issuance of a letter of dismissal or upon listing of the complaint on a published Commission meeting agenda. The complaint and evidence collected may be used as evidence in any subsequent proceeding, civil or criminal.

F. Investigator's Report

Upon completion of the investigation, the Commission's investigator will make and transmit a report of the investigation, together with recommendations concerning the disposition of the complaint (hereinafter referred to as Investigator's Report) to the complainant and respondent. The Investigator’s Report shall be approved for legal sufficiency by the Commission Counsel or her/his designee before it is issued. All parties to a complaint shall be given a reasonable opportunity to review and respond to all evidence considered by the Commission before the Investigator’s Report is issued, but the timing of any such review shall be subject to the investigator’s discretion.

The Investigator's Report on a public school or program or private school or program approved for tuition purposes shall also be delivered in a timely manner to the Commissioner of Education.

G. Submission of Response

Upon receipt of the Investigator's Report, the complainant and respondent shall have an opportunity to make written submissions to the Commission setting forth specific items of disagreement with the report and/or recommendations. The Commissioner of Education may also make a written submission on any report concerning public schools or programs or private schools or programs approved for tuition purposes. Written submissions shall be returned to the Commission's office within seventeen (17) working days of issuance of the Investigator's Report. Written submissions must be limited to specific items of disagreement that address the following: (1) relevant factual errors, (2) relevant omissions of fact, and/or (3) relevant issues and questions concerning interpretation of the governing law.

H. Transmittal to Commission

At the expiration of the seventeen (17) day period, a Commission representative will transmit the Investigator's Report and any written submissions to the Commission.

I. The Commission must conclude its investigation within 2 years after the notarized complaint is filed with the Commission. An investigation is concluded for purposes of this requirement upon issuance of a letter of dismissal or upon listing of the complaint on a published commission meeting agenda, whichever first occurs.

4-A.07-A COMMISSION MEETING

The Commission may allow the parties and the Commissioner of Education to make an oral presentation on information related to the complaint of discrimination at a monthly Commission meeting. Information presented must comply with 4-A.07(G). The Commission may impose time limits.

4-A.08 COMMISSION DECISION UNDER NON-EMERGENCY PROCEDURE

After considering the Investigator's Report, written submissions, if any, and other related information, the Commission will make a determination whether reasonable grounds exist to believe that unlawful educational discrimination has occurred. The Commission shall issue a Statement of Finding in support of its determination.

A. No Reasonable Grounds

If the Commission finds no reasonable grounds to believe that unlawful educational discrimination has occurred, it will enter an order dismissing the complaint. The Commission shall promptly notify the parties and provide each with a copy of its Statement of Finding.

B. Reasonable Grounds

If the Commission finds reasonable grounds to believe that unlawful educational discrimination has occurred, it will so notify the parties of its determination and provide each with a copy of its Statement of Finding. The Commission’s Compliance Manager or her/his designee will then endeavor to resolve the matter by informal means such as conference, conciliation, or persuasion. If the matter is resolved to the mutual satisfaction of the complainant and respondent and to the satisfaction of the Commission, as evidenced in a signed written agreement between the parties, approved by a majority of the Commission, the proceeding will be dismissed upon ascertainment by the Commission’s Executive Director or her/his designee that the terms of the signed agreement have been met.

C. Request for Attorney General's Opinion

If the Commission determines that it is unable to make a determination whether reasonable grounds exist to believe that unlawful educational discrimination has occurred because of legal questions it may request an Attorney General's opinion and postpone the issue and a statement of finding until receipt of an opinion. The Commissioner of Education shall be notified of any request for an opinion of the Attorney General.

D. New Investigation

If, subsequent to a finding, the Commission determines that there have been relevant factual errors or omissions of fact, that, if they are true, would likely change the finding of the Commission, it may order a new investigation of the matter. The Commission will promptly notify the parties of its decision to investigate the matter again.

4-A.09 COMMISSION DECISION UNDER EMERGENCY PROCEDURE

If the preliminary investigation of the complaint persuades the Commission's Executive Director, or other designated representative, that a situation comparable to those described in 5°M.R.S.A. §4612(4)(B) exists, the Executive Director, or representative, shall so notify the Commission. As soon as practical after notification, the Commission will consider the matter by means of a special meeting or other appropriate method. The Executive Director or other designated employee will take all reasonable steps to notify the parties of the special meeting or other appropriate method and of their right to participate.

A. No Reasonable Grounds

If the Commission finds no reasonable grounds to believe that unlawful educational discrimination has occurred, it will issue an order dismissing the complaint. The Commission shall promptly notify the parties of the dismissal and provide each with a copy of its Statement of Finding.

B. Reasonable Grounds

If the Commission finds reasonable grounds to believe that unlawful educational discrimination has occurred, but does not believe that irreparable injury or great inconvenience will be caused to the victim or victims of such discrimination if relief is not immediately granted, it will notify the parties of its determination, provide each with a copy of its Statement of Finding, and process the complaint under its non-emergency procedures.

C. Immediate Relief

If the Commission finds reasonable grounds to believe that unlawful educational discrimination has occurred and further believes that irreparable injury or great inconvenience will be caused the victim or victims of such discrimination, it may request the Commission Counsel or her/his designee to file a civil action in the Superior Court seeking appropriate relief. As soon thereafter as practicable, the Commission shall issue a statement of Finding in support of its determination.

4-A.10 POST-DETERMINATION CONCILIATION

A. Conference, Conciliation and Persuasion

In conciliating a matter in which a determination of reasonable grounds has been made pursuant to the non-emergency procedures of section 4-A.087(B) of this rule, the Commission shall attempt to achieve a just resolution and to obtain assurances that the respondent will eliminate the unlawful educational discrimination. Disposition of a matter pursuant to this section shall be in the form of a written agreement and approved by a majority of the Commission, and notice thereof shall be sent to the parties. Upon ascertainment by the Commission's Executive Director or her/his designee that the terms of the signed agreement have been met, the proceeding shall be dismissed.

B. Participation of Commissioner of Education

The Commission shall inform the Commissioner of Education when it concludes that there exist reasonable grounds to believe that unlawful educational discrimination has occurred in any public school or program or private school or program approved for tuition purposes. The Commissioner may participate in informal conciliation efforts of the Commission. Upon request, the Commissioner shall have access to all information concerning conciliation efforts.

The Commissioner of Education shall be notified, in her/his capacity as the chief administrative officer of the educational institution, of any allegations of unlawful educational discrimination in the Governor Baxter School for the Deaf, the schools of the unorganized territory, and the State vocational-technical institutes.

C. Refusal of Respondent to Cooperate

If a respondent fails or refuses to confer with the Commission's representative, or fails or refuses to make a good faith effort to resolve any dispute, the Commission may terminate efforts to conciliate the dispute. In such event, the respondent shall be notified promptly, in writing, that conciliation efforts have been terminated.

D. Refusal of Complainant to Agree

If a complainant fails or refuses to agree to the terms of a conciliation agreement or settlement that the Commission believes represents a just resolution of the complaint, the Commission may execute a conciliation agreement with the respondent limited to assurances that the respondent will eliminate such unlawful discrimination and take any appropriate corrective action. The proceeding shall be dismissed upon ascertainment by the Commission's Executive Director or her/his designee that the terms of the signed agreement have been met. Where the complainant is not a party to such a conciliation agreement, the execution of the agreement by the Commission and the respondent shall not limit the complainant's right to pursue other individual remedies.

E. Confidentiality of Conciliation Efforts

Everything said or done as part of the Commission's informal endeavors to eliminate unlawful educational discrimination by conference, conciliation or persuasion is confidential and may not be disclosed without the written consent of the parties or used as evidence in a subsequent civil or criminal proceeding, except in a civil action alleging a breach of agreement filed by the Commission or a party. Notwithstanding this provision, the Commission and its employees have discretion to disclose such information to a party as is reasonably necessary to facilitate conciliation.

F. Confidentiality of Third Party Names

Any Commission records that are public records pursuant to the Freedom of Access Act shall be kept in such a manner that they do not reveal the identity of any person who is not a party to a complaint as complainant or a person accused of unlawful educational discrimination.

4-A.11 PROCEDURE AFTER FAILURE OF CONCILIATION

A. Failed Conciliation

If the Commission’s Compliance Manager or her/his designee determines that conciliation efforts have failed, she/he shall so notify the complainant and respondent.

B. Legal Action

When post-determination conciliation efforts have failed, the Commission Counsel or her/his designee is authorized to file a civil action in the Superior Court seeking appropriate relief, including, but not limited to, temporary restraining orders and preliminary injunctions.

C. Referral to Complainant

When the Commission Counsel or her/his designee is unable to file expeditiously such a civil action, the Commission shall so notify the complainant of her/his right to file a civil action pursuant to 5 M.R.S.A. §4621, and make available a referral list of attorneys who have indicated an interest in undertaking such litigation. The Commission shall furnish any attorney who is retained by the complainant, upon request, with access to the investigatory case file and will provide such assistance as is reasonably possible under the existing circumstances. Referral under this subsection does not terminate the Commission's jurisdiction of the proceeding.

4-A.12 TIME LIMITS

A. Deadlines

When these regulations established any time limit for the filing, submission, or production of any document, record, file or other possible source of evidence,; or for the filing of any request with the Commission, such item must be received in the office of the Commission before the close of business on the last day of the time limit.

B. Computation of Time

In computing any period of time prescribed or allowed by this rule, the day of the act, event, or default from or after which the designated period of time begins to run shall not he included. The last day of the period shall be included, unless it is a Saturday, Sunday, or legal state or federal holiday, in which event the period shall run until the end of the next day that is not a Saturday, Sunday, or legal state or federal holiday.

C. Extension of Time

The Commission’s Executive Director or her/his designee, or the Commission, may extend any time limit established in this chapter for good cause shown, and shall notify the parties of any such extension.

4-A.13 ADVISORY RULINGS

A. Upon written request of any interested person, the Commission’s Compliance Manager or her/his designee may make an advisory ruling with respect to the applicability of the Maine Human Rights Act or the rules promulgated by the Commission to that person or an actual state of facts.

B. Advisory rulings made pursuant to this section shall not be binding upon the Commission, provided that, in any subsequent civil action initiated by the Commission, any person’s justifiable reliance upon the ruling shall be considered in mitigation of any civil penal damages or punitive damages sought by the Commission.

Fiscal Impact Note: This proposed rule will not impose any cost on municipalities or counties.

EFFECTIVE DATE:

August 25, 1984 - filing 84-291, Chapters 4 and 4-a

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 12, 1996

AMENDED:

July 30, 1996 - Section 11 (C) (2) – Chapter 4 only, filing 96-316, jointly with Department of Education

NON-SUBSTANTIVE CORRECTIONS:

October 2 and 29, 1996 - minor spelling.

REPEALED AND REPLACED:

September 19, 2000 – Chapters 4 and 4-A, filing 2000-395, jointly with Department of Education

AMENDED:

February 8, 2010 – Chapter 4-A only, filing 2010-21, jointly with Department of Education

September 12, 2012 – Chapter 4-A only, filing 2012-259, jointly with Department of Education

Chapter 4-A - Procedural Rule: Equal Educational Opportunity page 13

Chapter 5 Public Accommodations Regulations Relating to Physical or Mental Disability Discrimination in Public Conveyances of the Maine Human Rights Commission

Code Me. R. 94-348 Ch. 5 Public Accommodations Regulations Relating to Physical or Mental Disability Discrimination in Public Conveyances of the Maine Human Rights Commission {#sec-94-348-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 5}

PART I. GENERALLY

A. Purpose

Pursuant to Title 5 M.R.S.A., §4566(7), the Maine Human Rights Commission has adopted the following regulations which are designed to inform owners and agents of public conveyances, persons with physical or mental disabilities, and other interested parties of the Commission's interpretation of the Maine Human Rights Act, Title 5 M.R.S.A., §4551, et seq ., hereafter referred to as "The Act" and in particular Subchapter V, Public Accommodations, §4591 and §4592.

B. Effect

These regulations shall be accorded the full force and effect of interpretive administrative regulations.

C. Construction

(1) Consistent with the public policy underlying the Act (as expressed in §4552) and with firmly established principles for the interpretation of such humanitarian legislation, the remedial provisions of the Act shall be given broad construction and its exceptions shall be construed narrowly.

(2) The provisions of these regulations are severable. If any provision or the application of any provision of these regulations to any person or circumstances is invalid, such invalidity shall not affect other provisions or applications which can be given effect without the invalid provision or application.

PART II. DEFINITIONS

A. Public Conveyance

"Public conveyance" means any vehicle or any other means of transport operated on land, water or in the air, which in fact caters to, or offers its goods, facilities or services to, or solicits or accepts patronage from the general public. "Public conveyance" includes any person who is the owner, lessee, operator, proprietor, manager, superintendent, agent or employee or any public conveyance. As defined in 14553 (7) of the Act, "person" includes one or more individuals, partnerships associations, organizations, corporations, municipal corporations, legal representatives, trustees, trustees in bankruptcy, receivers and other legal representatives, and includes the State and all agencies thereof.

B. Accessible

“Accessible” means able to be entered, exited, and used safely, efficiently, and as independently as possible by persons with physical or mental disabilities.

C. Separate Service

"Separate service" means a conveyance that is available for the special use of persons with physical or mental disabilities and that uses vehicle(s) separate from the public conveyance available for use by all persons.

D. Bus

"Bus" means intra-city or commuter transportation by bus or van which regularly serves the general public on a fixed route without restrictions on trip purpose.

E. Unlawful Discrimination

(1) As in the Maine Human Rights Act, Title 5 M.R.S.A., §4551, et seq .

(2) The Commission interprets the term, "unlawful public accommodations discrimination" as defined in the Act and as applied to discrimination on the basis of physical or mental disability in public conveyances, to encompass three concepts:

(a) Overt Discrimination - an intentional, purposeful act of discrimination;

(b) Unequal or Disparate Treatment - treating members of a protected class in a different and less favorable manner than members of the similarly situated group. Proof of discriminatory motive is required;

(c) Disparate Impact - conduct which, although applied equally to all, has an adverse effect on members of a protected class as compared to the effect on members of the majority class; in other words, practices fair in form, but discriminatory in operation. intent or motive is of no consequence. See Griggs v. Duke Power Company, 401 U.S. 424, 915 S.Ct. 849, 3 FEP Cases 175 (1971).

(3) A prima facie case of discrimination exists if the Complainant establishes that membership in a protected class, even though not the sole factor, was nonetheless a substantial factor motivating the conduct of the public conveyance. If the Complainant would not have been denied service or otherwise treated differently, but for membership in the protected class, the existence of other reasonable grounds for the action by the public conveyance does not relieve the public conveyance from liability. See Wells v. Franklin Broadcasting Corp., 403 A.2d 771, 20 FEP Cases 548 (1979).

(4) Unlawful discrimination includes separation or segregation of persons with physical or mental disabilities, except where separate facilities or services are the only way to provide access to a public conveyance without imposing an undue burden on the operation of the public conveyance. See Part III (D) and (E).

(5) Unlawful discrimination includes the failure or refusal by a public conveyance to make reasonable accommodations to a person's physical or mental limitations, Unless the public conveyance can demonstrate that a reasonable accommodation does not exist or that an accommodation would impose an undue burden on the operation of the public conveyance.

PART Ill. UNLAWFUL PHYSICAL OR MENTAL DISABILITY DISCRIMINATION IN PUBLIC CONVEYANCES

A. Unlawful Discrimination Specified in §4591 and §4592 of the Act

(1) As stated in §4591 of the Act, the opportunity for every individual to have equal access to places of public accommodation without discrimination because of physical or mental disability is recognized as and declared to be a civil right. §4553 (8) defines "place of public accommodation" as including "all public conveyances operated on land, water or in the air as well as the stations and terminals thereof."

(2) As stated in §4592 of the Act, it shall be unlawful public accommodations discrimination for any person, being the owner, operator, lessee, proprietor, manager, superintendent, agent or employee of any public conveyance, to directly or indirectly refuse, withhold from or deny to any person, on account of physical or mental disability, any of the accommodations, advantages, facilities or privileges of such public conveyance, or for such reason in any manner discriminate against any person in the price, terms or conditions upon which access to such accommodation, advantages, facilities and privileges may depend.

As stated in §4592 of the Act, it shall be unlawful public accommodations discrimination for any person to directly or indirectly publish, circulate, issue, display, post or mail any written, printed, painted or broadcast communication, notice or advertisement, to the effect that any of the accommodations, advantages, facilities or privileges of any public conveyance shall be refused, withheld from or denied to any person on account of physical or mental disability, or that the patronage of any person having any particular physical or mental disability is unwelcome, objectionable, or not acceptable, desired or solicited, or that the clientele thereof is restricted to members who do not have a particular physical or mental disability. The production of any such written, printed, painted or broadcast communication, notice or advertisement, purporting to relate to any such conveyance, shall be presumptive evidence in any action that the same was authorized by its owners, manager or proprietor.

B. Use of Personal Care Attendants, Animal Aides and Devices to Assist in Mobility

It shall be unlawful public accommodations discrimination for any public conveyance to directly or indirectly refuse, withhold from or deny to any personwith a physical or mental disability, on account of such a person's use of a personal care attendant, animal aide, cane, wheelchair, crutches or any device used to assist in mobility, any of the accommodations, advantages, facilities, or privileges of a public conveyance, or for such reason in any manner discriminate against any person in the price, terms or conditions upon which access to such accommodations, advantages, facilities, or privileges may depend. A public conveyance may require a person with a physical or mental disability using a personal care attendant to obtain authorization from a physician and have a designated sticker, provided by the public conveyance on their Medicaid card and/or bus pass.

It shall be unlawful discrimination for any public conveyance to require payment of an extra charge on account of a person with a physical or mental disability using a personal care attendant, animal aide, cane, wheelchair, crutches, or any device used to assist in mobility.

C. Harassment on the Basis of Physical or Mental Disability

(1) Harassment on the basis of physical or mental disability is a violation of §4592 of the Maine Human Rights Act.

Unwelcome comments, jokes, acts and other verbal or physical conduct related to physical or mental disability constitute harassment on the basis of physical or mental disability when:

(a) submission to such conduct is made either explicitly or implicitly a term or condition of an individual's access to or use of any of the accommodations, advantages, facilities or privileges of any public conveyance; or

(b) submission to or rejection of such conduct by an individual is used as a basis for decisions or actions on behalf of the public conveyance affecting such individual's access to any of the accommodations, advantages, facilities, or privileges of any public conveyance; or

(c) such conduct has the purpose or effect of unreasonably interfering with an individual's access to or use of any of the accommodations, facilities, advantages, or privileges of a public conveyance, or has the purpose or effect of creating an intimidating, hostile, or offensive environment on the public conveyance.

(2) A public conveyance is responsible for its acts and those of its supervisory employees and employees whose job includes regular contact with the public with respect to physical or mental disability harassment regardless of whether the specific acts complained of were authorized or even forbidden by the public conveyance, and regardless of whether the public conveyance knew or should have known of their occurrence.

(3) With respect to persons other than those mentioned in paragraph 2 of this section, a public conveyance is responsible for acts of physical or mental disability harassment in the public conveyance where the public conveyance knows or should have known of the conduct. A public conveyance may rebut apparent liability for such acts by showing that it took immediate and appropriate corrective action.

D. Obligation to Make Reasonable Accommodations

(1) Equal Access Required

As stated in §4591 of the Act, the opportunity to have equal access to public conveyance is a civil right. If treating persons with and without physical or mental disabilities the same will not provide the opportunity for equal access to a public conveyance for persons with physical or mental disabilities, then reasonable accommodations to the needs of such persons must be made.

It is unlawful public accommodations discrimination for a public conveyance to fail or refuse to make reasonable accommodations to the physical or mental limitations of persons with physical or mental disabilities unless the public conveyance can demonstrate that a reasonable accommodation does not exist or that an accommodation would impose an undue burden on the operation of the public conveyance.

(2) Integration Required

Reasonable accommodation shall be made in a way that maximizes integration of persons with and without physical or mental disabilities. Separate service is not an acceptable substitute for making a public conveyance accessible, if a public conveyance can be made accessible without undue burden.

(3) Separate Service

If reasonable accommodations cannot be made to provide access for a person with a physical or mental disability to a regular, integrated public conveyance, then separate service must be provided.

Separate service, where used to provide access to transportation to persons who cannot be reasonably accommodated on a regular public conveyance without undue burden, should provide service that is as nearly equal as possible to the service provided by the regular public conveyance in terms of the following criteria:

(a) area covered;

(b) times of service;

(c) notice required;

(d) fares; and

(e) restrictions on trip purpose;

(f) persons who may accompany the rider.

(4) Types of Reasonable Accommodations Required.

Reasonable accommodations to ensure access to public conveyances shall include but not be limited to the following types of accommodations:

(a) removing or modifying physical barriers, installing equipment, or designing retrofitting conveyances so that persons with physical or mental disabilities have access to the conveyance and its accommodations, advantages, facilities, and privileges.

(b) ensuring that any accessible conveyance and any equipment or facility used to make a conveyance accessible is regularly maintained in proper operating condition so that the public conveyance is accessible to persons with physical or mental disabilities to the same extent as the conveyance is accessible to persons without physical or mental disabilities.

(c) ensuring that personnel are trained and supervised to safely and properly operate any accessible conveyance and any equipment or facility used to make, a conveyance accessible.

(d) ensuring that, in keeping with the courteous and respectful treatment befitting and normally given to all members of the public, personnel are trained and supervised with regard to the particular needs and concerns of people who have physical or mental disabilities.

(e) ensuring that effective means of communication are provided so that persons with impaired hearing or vision can have full access to the public conveyance.

(f) ensuring that information about accessible conveyances is adequately publicized to persons with physical or mental disabilities. Accessible conveyances shall be prominently marked with the International Symbol of Accessibility.

(g) ensuring that adequate assistance and instruction on the use of accessible conveyances is available to persons with physical or mental disabilities.

E. Undue Burden

(1) No accommodation is required that would impose an undue burden on the operation of the public conveyance.

(2) This exception for undue burden shall be construed narrowly as an exception to the general rule requiring reasonable accommodation in light of the policy stated in §4591 of the Act that the opportunity to have equal access to public conveyance is a civil right.

(3) The public conveyance has the burden of proving that an accommodation would impose an undue burden on the operation of the public conveyance. Undue burden can be established only upon a factual basis, not on mere speculation.

(4) Even if a proposed accommodation imposes an undue burden, any other accommodation which does not create an undue burden must still be made to ensure the fullest possible access to the public conveyance.

(5) The following factors will be used to determine whether an accommodation imposes undue burden:

(a) the costs of the accommodation;

(b) all the resources available to meet the costs of the accommodation, including any government funding or other grants available for making conveyances accessible;

(c) the availability of equipment and technology for the accommodation;

(d) the safety of other users of a public conveyance;

(e) whether an accommodation would result in a fundamental change in the nature of the public conveyance;

(f) efforts to minimize costs by spreading costs over time; for example, by phasing in new accessible conveyances;

(g) efforts to minimize costs by arranging for joint purchases of accessible equipment or for otherwise sharing costs of accommodations with other public conveyances;

(h) documented good faith efforts to explore less restrictive or less expensive alternatives;

(i) the extent of consultation with knowledgeable disabled persons and organizations; the extent to which current costs of accommodations have been minimized by past efforts to provide equal access to persons with physical or mental disabilities;

(j) the extent to which current costs of accommodations have been minimized by past efforts to provide equal access to persons with physical or mental disabilities;

(k) the extent to which resources spent on improving inaccessible equipment or service could have been spent on making an accommodation so that service or equipment is accessible to persons with physical or mental disabilities as well as persons without physical or mental disabilities;

(l) the extent to which resources saved by failing to make an accommodation for persons with physical or mental disabilities could have been saved by cutting costs in equipment or services for the general public;

(m) the extent to which the accommodation would provide access to persons with physical or mental disabilities or improve the usability for all persons.

(6) Factors which should not contribute to a determination that an accommodation imposes an undue burden shall include but are not limited to:

(a) a preference by users or employees of a public conveyance not to have an integrated public conveyance;

(b) costs of making a public conveyance accessible which have resulted from a past refusal to make public conveyances accessible as required by the Act; and

(c) assumptions on the part of the operator of the conveyance about persons with physical or mental disabilities.

F. Accommodations Required for Buses Purchased, Leased, or Substantially Altered After the Effective Date of the Regulations

(1) For buses purchased, leased or substantially altered after the effective date of the regulations, the Commission finds that the technology and equipment readily exist to make buses accessible to wheelchair users, and that the costs of purchasing accessible low-floored buses and the costs of purchasing buses with lifts do not impose undue burdens.

(2) Therefore, bus systems must make reasonable accommodations so that the requirements of F (3) are met, unless the bus system can prove, based on specific factual evidence, that the requirements would result in an undue burden on the operation of the public conveyance.

(3) All buses purchased, leased, or substantially altered after the effective date of the regulations, must meet the following requirements:

(a) Buses must be accessible to persons using a wide variety of wheelchairs, including electric wheelchairs, without carrying. Buses should be designed so that there is sufficient space to maneuver a wheelchair with minimal effort through doors and aisles within the bus to seating areas.

(b) Buses having a seating capacity for 21 or more passengers must have seating areas and securement devices for at least two people with wheelchairs. Buses having a seating capacity for 20 or fewer passengers must have seating areas and securement devices for at least one person with a wheelchair.

(c) Lifts or ramps must be designed to allow safe use by all persons with mobility impairments.

(d) Lifts, ramps, securement devices and other equipment used to make buses accessible must be consistently maintained in proper operating condition so that the bus is consistently accessible. Bus systems using lifts must have a program of appropriate preventive maintenance.

(4) Even if the bus system is exempt from the requirements of F (3) because they would result in an undue burden, the bus system must still make other reasonable accommodations to make the bus system as accessible as is possible without undue burden.

(5) Operation of public conveyance systems must include the following:

(a) Bus drivers and maintenance personnel must be trained and supervised to safely and properly operate lifts, ramps, and other equipment used to make buses accessible.

(b) To ensure sensitivity to the particular needs and concerns of people who have physical or mental disabilities, and in keeping with the courteous and respectful treatment befitting and normally given to all members of the public, public conveyances shall implement appropriate training and supervision measures for their personnel in consultation with organizations representative of persons with physical or mental disabilities.

(c) Instructions for wheelchair users and other persons with mobility impairments on how to use lifts and other equipment must be readily available. Instruction shall include the opportunity to practice using lifts and other equipment used to make the bus accessible.

(d) Advertising for buses must include publicity about accessible buses. Accessible buses must be marked with the International Symbol of Accessibility. Schedules must include information on accessible buses and routes. Media images should show persons with physical or mental disabilities as an integrated part of the mainstream.

History

• STATUTORY AUTHORITY: 5 M.R.S.A., Subchapter II §4566(7).
• EFFECTIVE DATE: :
• EFFECTIVE DATE: March 30, 1987
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 12, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling.
• AMENDED: July 20, 2005 – filing 2005-294 added Part II.B.(4). At the same time the APA office also restored from the original filing (87-105) Part II.C. which had evidently been accidentally dropped during the electronic conversion. Numbering throughout was corrected and standardized. Finally, the agency changed the title of the chapter from “Public Accommodations Regulations Relating to Handicap Discrimination in Public Conveyances of the Maine Human Rights Commission” to “Public Accommodations Regulations Relating to Physical or Mental Disability Discrimination in Public Conveyances of the Maine Human Rights Commission”.
• AMENDED: March 21, 2007 – filing 2007-105, redefined “physical or mental disability” in II(B), changed all occurrences of the word “handicapped” and its variants to “person with physical or mental disability” and variants
• AMENDED: April 14, 2008 - filing 2008-162, repealed Part II(B), renumbered as appropriate
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 7 Accessibility Regulations of the Maine Human Rights Commission

Code Me. R. 94-348 Ch. 7 Public Accommodations Regulations of the Maine Human Rights Commission {#sec-94-348-ch.-7 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 7}

7.00 Purpose, Effect, and Construction

1. Purpose

Pursuant to 5 M.R.S. §4566(7), the Maine Human Rights Commission (“Commission”) has adopted the following regulations to implement Subchapter 5 of the Maine Human Rights Act , 5 M.R.S. §§ 4551-4634 (“the Act” or “MHRA”), which prohibits discrimination by public accommodations because of protected class status.

2. Effect

These regulations shall be accorded the full force and effect of interpretative administrative regulations.

3. Construction

A. Consistent with the public policy underlying the Act (as expressed in §4552), and with firmly established principles for the interpretation of such humanitarian legislation, the remedial provisions of the Act shall be given broad construction and its exceptions shall be construed narrowly.

B. The provisions of these regulations are severable. If any provision or the application of any provision of these regulations to any person or circumstances is invalid, such invalidity shall not affect other provisions or applications which can be given effect without the invalid provision or application.

7.01 Definitions

1991 Standards means requirements set forth in the ADA Standards for Accessible Design, originally published on July 26, 1991, and republished as Appendix D to 28 CFR part 36.

2004 ADAAG means the requirements set forth in appendices B and D to 36 CFR part 1191 (2009).

2010 Standards means the 2010 ADA Standards for Accessible Design, which consist of the 2004 ADAAG and the requirements contained in subpart D of 28 CFR part 36.

Alteration means a change to a place of public accommodation or a commercial facility that affects or could affect the usability of the building or facility or any part of the building or facility, including, but not limited to, reconstruction, remodeling, rehabilitation, historic restoration, changes or rearrangement in structural parts or elements and changes or rearrangement in the plan configuration of walls and full-height partitions. Normal maintenance, reroofing, painting or wallpapering, asbestos removal or changes to mechanical and electrical systems are not alterations unless they affect the usability of the building or facility.

Current illegal use of drugs means illegal use of drugs that occurred recently enough to justify a reasonable belief that a person’s drug use is current or that continuing use is a real and ongoing problem.

Drug means a controlled substance, as defined in the State or federal Controlled Substances Act. Where there is a conflict between State and federal law regarding the categorization of a drug as a controlled substance (such as adult-use marijuana), State law will prevail except where the receipt of federal funds or participation in federal programs requires the application of federal standards.

Existing facility means a facility in existence on any given date, without regard to whether the facility may also be considered newly constructed or altered under this part.

Facility means all or any portion of buildings, structures, sites, complexes, equipment, rolling stock or other conveyances, roads, walks, passageways, parking lots, or other real or personal property, including the site where the building, property, structure, or equipment is located.

Illegal use of drugs means the use of one or more drugs, the possession or distribution of which is unlawful under the State or federal Controlled Substances Act . The term “illegal use of drugs” does not include the use of a drug taken under supervision by a licensed health care professional, or other uses authorized by the State or federal Controlled Substances Act or other provisions of State or federal law. Where there is a conflict between State and federal law regarding the categorization of a drug as a controlled substance (such as adult-use marijuana), State law will prevail except where the receipt of federal funds or participation in federal programs requires the application of federal standards.

New construction includes, but is not limited to, the design and construction of a facility for first occupancy or an alteration if the cost of the alteration is 75% or more of the replacement cost of the completed facility.

Other power-driven mobility device means any mobility device powered by batteries, fuel, or other engines – whether or not designed primarily for use by individuals with mobility disabilities – that is used by individuals with mobility disabilities for the purpose of locomotion, including golf cars, electronic personal assistance mobility devices (EPAMDs), such as the Segway® PT, or any mobility device designed to operate in areas without defined pedestrian routes, but that is not a wheelchair within the meaning of this section. This definition does not apply to Federal wilderness areas; wheelchairs in such areas are defined in section 508(c)(2) of the Americans with Disabilities Act of 1990 (“ADA”), 42 U.S.C. 12207(c)(2).

Physical or mental disability is defined in 5 M.R.S. §4553-A.

Place of public accommodation means a facility, operated by a public or private entity, whose operations fall within at least one of the following categories:

(1) A place of lodging, whether conducted for the entertainment or accommodation of transient guests or those seeking health, recreation or rest. For purposes of this Chapter, a facility is a "place of lodging" if it is –

(i) An inn, hotel, or motel; or

(ii) A facility that –

(A) Provides guest rooms for sleeping for stays that primarily are short-term in nature (generally 30 days or less) where the occupant does not have the right to return to a specific room or unit after the conclusion of his or her stay; and

(B) Provides guest rooms under conditions and with amenities similar to a hotel, motel, or inn, including the following –

(1) On- or off-site management and reservations service;

(2) Rooms available on a walk-up or call-in basis;

(3) Availability of housekeeping or linen service; and

(4) Acceptance of reservations for a guest room type without guaranteeing a particular unit or room until check-in, and without a prior lease or security deposit.

(2) A restaurant, eating house, bar, tavern, buffet, saloon, soda fountain, ice cream parlor or other establishment serving or selling food or drink;

(3) A motion picture house, theater, concert hall, stadium, roof garden, airdome or other place of exhibition or entertainment;

(4) An auditorium, convention center, lecture hall or other place of public gathering;

(5) A bakery, grocery store, clothing store, hardware store, shopping center, garage, gasoline station or other sales or rental establishment;

(6) A laundromat, dry cleaner, bank, barber shop, beauty shop, travel service, shoe repair service, funeral parlor, office of an accountant or lawyer, pharmacy, insurance office, professional office of a health care provider, hospital, dispensary, clinic, bathhouse or other service establishment;

(7) All public conveyances operated on land or water or in the air as well as a terminal, depot or other station used for specified public transportation;

(8) A museum, library, gallery or other place of public display or collection;

(9) A park, zoo, amusement park, race course, skating rink, fair, bowling alley, golf course, golf club, country club, gymnasium, health spa, shooting gallery, billiard or pool parlor, swimming pool, seashore accommodation or boardwalk or other place of recreation, exercise or health;

(10) A nursery, elementary, secondary, undergraduate or postgraduate school or other place of education;

(11) A day-care center, senior citizen center, homeless shelter, food bank, adoption agency or other social service center establishment;

(12) Public elevators of buildings occupied by 2 or more tenants or by the owner and one or more tenants;

(13) A municipal building, courthouse, town hall or other establishment of the State or a local government; and

(14) Any establishment that in fact caters to, or offers its goods, facilities or services to, or solicits or accepts patronage from, the general public, whether or not the “establishment” maintains a physical building or location that is open to the public (i.e., an internet-based business).

Private club means a private club or establishment exempted from coverage under Title II of the Civil Rights Act of 1964 (42 U.S.C. 2000a (e)).

Private entity means a person or entity other than a public entity.

Protected class means the classes listed in 5 M.R.S. §4591. Protected class also includes being perceived as a member of a protected class, as well as having a known relationship or association with a member of a protected class. Protected class also includes traits associated with protected class status, such as natural hair textures, Afro styles and protective hair styles (such as braids, twists, and locks) or protected-class related body modifications.

Public entity means -

(1) Any State or local government;

(2) Any department, agency, special purpose district, or other instrumentality of the State or local government; and

(3) A state, local or private commuter authority as defined in the federal Rail Passenger Service Act , Section 103 (8).

Public accommodation means a public or private entity that owns, leases, leases to, or operates a place of public accommodation, or which provides goods or services to the public, whether with or without a physical location open to the public (i.e., an internet-based business).

Qualified interpreter means an interpreter who, via a video remote interpreting (VRI) service or an on-site appearance, is able to interpret effectively, accurately and impartially both receptively and expressively, using any necessary specialized vocabulary.Qualified interpreters include, for example, sign language interpreters, oral transliterators, and cued-language transliterators.

Qualified reader means a person who is able to read effectively, accurately, and impartially using any necessary specialized vocabulary.

Readily achievable means easily accomplishable and able to be carried out without much difficulty or expense. In determining whether an action is readily achievable factors to be considered include:

(1) The nature and cost of the action needed under this Chapter;

(2) The overall financial resources of the site or sites involved in the action; the number of persons employed at the site; the effect on expenses and resources; legitimate safety requirements that are necessary for safe operation, including crime prevention measures; or the impact otherwise of the action upon the operation of the site;

(3) The geographic separateness, and the administrative or fiscal relationship of the site or sites in question to any parent corporation or entity;

(4) If applicable, the overall financial resources of any parent corporation or entity; the overall size of the parent corporation or entity with respect to the number of its employees; the number, type, and location of its facilities; and

(5) If applicable, the type of operation or operations of any parent corporation or entity, including the composition, structure, and functions of the workforce of the parent corporation or entity.

Religious entity means a bona fide religious organization, including a place of worship, which does not receive public funds.

Service animal means a dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual or other mental disability. Other species of animals, whether wild or domestic, trained or untrained, are not service animals for the purposes of this definition, except that miniature horses trained to do work or perform tasks for individuals with disabilities must be permitted where reasonable.The work or tasks performed by a service animal must be directly related to the individual’s disability. Examples of such work or tasks include, but are not limited to, assisting an individual who is totally or partially blind with navigation and other tasks, alerting an individual who is deaf or hard of hearing to the presence of people or sounds, providing nonviolent protection or rescue work, pulling a wheelchair, assisting an individual during a seizure, alerting an individual to the presence of allergens, retrieving items such as medicine or a telephone, providing physical support and assistance with balance and stability to an individual with a mobility disability and helping a person with a psychiatric or neurological disability by preventing or interrupting impulsive or destructive behaviors. The crime deterrent effects of an animal’s presence and the provision of emotional support, well-being, comfort or companionship do not constitute work or tasks for the purposes of this definition.

When determining whether it is reasonable for a covered entity to permit the use of a miniature horse as a service animal, the entity may consider the following assessment factors: (1) whether the miniature horse is housebroken; (2) whether the miniature horse is under the owner’s control; (3) whether the covered entity can accommodate the miniature horse’s type, size, and weight; and (4) whether the miniature horse’s presence will compromise legitimate safety requirements necessary for safe operation of the covered entity.

Specified public transportation means transportation by bus, rail, or any other conveyance (other than by aircraft) that provides the general public with general or special service (including charter service) on a regular and continuing basis.

Undue burden means an action requiring undue financial or administrative hardship. In determining whether an action would result in an undue burden, factors to be considered include:

(1) The nature and cost of an accommodation needed under this Act;

(2) The overall financial resources of the facility or facilities involved in the action, the number of persons employed at the facility, the effect on expenses and resources or the impact otherwise of the action upon the operation of the facility;

(3) The overall financial resources of the covered entity, the overall size of the business of a covered entity with respect to the number of its employees and the number, type and location of its facilities;

(4) The type of operation or operations of the covered entity, including the composition, structure and functions of the work force of the entity, the geographic separateness, administrative or fiscal relationship of the facility or facilities in question to the covered entity;

(5) All the resources available to meet the costs of the accommodation, including any government funding or other grants available for making public accommodations and places of employment accessible;

(6) The extent to which current costs of accommodations have been minimized by past efforts to provide equal access to persons with physical or mental disabilities;

(7) The extent to which resources spent on improving inaccessible equipment or service could have been spent on making an accommodation so that service or equipment is accessible to individuals with physical or mental disabilities, as well as the individuals without physical or mental disabilities;

(8) Documented good faith efforts to explore less restrictive or less expensive alternatives;

(9) The availability of equipment and technology for the accommodation;

(10) Whether an accommodation would result in a fundamental change in the nature of the public accommodation;

(11) Efforts to minimize costs by spreading costs over time; and

(12) The extent to which resources saved by failing to make an accommodation for persons who have physical or mental disabilities could have been saved by cutting cost in equipment or services for the general public.

“Undue burden” is a higher standard than “readily achievable” and requires a greater level of effort on the part of the public accommodation.

Video remote interpreting (VRI) service means an interpreting service that uses video conference technology over dedicated lines or wireless technology offering high-speed, wide-bandwidth video connection that delivers high-quality video images as provided in 7.17(F).

Wheelchair means a manually-operated or power-driven device designed primarily for use by an individual with a mobility disability for the main purpose of indoor or of both indoor and outdoor locomotion. This definition does not apply to Federal wilderness areas; wheelchairs in such areas are defined in section 508(c)(2) of the ADA, 42 U.S.C. 12207(c)(2).

7.02 General

A. Prohibition of discrimination

No individual shall be discriminated against on the basis of protected class in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any public or private entity who owns, leases (or leases to), or operates a place of public accommodation.

B. Landlord and tenant responsibilities

Both the landlord who owns the building that houses a place of public accommodation and the tenant who owns or operates the place of public accommodation are public accommodations subject to the requirements of this part. As between the parties, allocation of responsibility for complying with the obligations of this part may be determined by lease or other contract, but that allocation shall not be binding on the Commission when investigating and determining whether or not any covered entity has violated the Act.

C. Restrictions based on age

It is not considered unlawful discrimination for a place of public accommodation to deny access to its goods and services based on age in order to comply with generally-applicable health and safety laws or regulations. For example, it is not unlawful for a bar to deny access to individuals who are not yet legally permitted to drink alcoholic beverages, or for a store to refuse to sell goods, such as cigarettes, to individuals who have not yet reached the legal age for use of those goods, or for a preschool program to refuse to enroll adults.

7.03 Activities: Individuals with Disabilities

A. Denial of participation

A public accommodation shall not subject an individual or class of individuals on the basis of a physical or mental disability or disabilities of such individual or class, directly, or through contractual, licensing, or other arrangements, to a denial of the opportunity of the individual or class to participate in or benefit from the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation.

B. Participation in unequal benefit

A public accommodation shall not afford an individual or class of individuals, on the basis of physical or mental disability or disabilities of such individual or class, directly, or through contractual, licensing, or other arrangements, with the opportunity to participate in or benefit from a good, service, facility, privilege, advantage, or accommodation that is not equal to that afforded to other individuals.

C. Separate benefit

A public accommodation shall not provide an individual or class of individuals, on the basis of a physical or mental disability or disabilities of such individual or class directly, or through contractual, licensing, or other arrangements with a good, service, facility, privilege, advantage, or accommodation that is different or separate from that provided to other individuals, unless such action is necessary to provide the individual or class of individuals with a good, service, facility, privilege, advantage, or accommodation, or other opportunity that is as effective as that provided to others.

D. Individual or class of individuals

For purposes of this subsection, the term “individual” or “class of individuals” refers to the clients or customers of the covered public accommodation that enters into a contractual, licensing or other arrangement.

7.04 Reasonable Accommodations: Individuals with Disabilities

(a) Integrated Settings

A public accommodation shall afford goods, services, facilities, privileges, advantages, and accommodations to an individual with a physical or mental disability in the most integrated setting appropriate to the needs of the individual. Notwithstanding the existence of separate or different programs or activities provided in accordance with this subpart, a public accommodation shall not deny an individual with a physical or mental disability an opportunity to participate in such programs or activities that are not separate or different.

(c) Accommodations and services

(1) Nothing in this part shall be construed to require an individual with a physical or mental disability to accept an accommodation, aid, service, opportunity, or benefit available under this part that such individual chooses not to accept.

(2) Nothing in the Act or this part authorizes the representative or guardian of an individual with a disability to decline food, water, medical treatment, or medical services for that individual.

(d) Reasonable accommodations/modifications

It is unlawful public accommodations discrimination for a covered entity to fail to make reasonable modifications in its policies, practices, or procedures when necessary to afford its goods, services, or other accommodations to individuals based on disability. Reasonable modifications may include, but are not limited to: modifications to dress codes, providing alternative methods for accessing goods or services (such as curbside pickup for retail purchases), or changes to seating type or location (such as at a theater). In the case of a private entity, the private entity need not make the requested modification if it demonstrates that doing so would fundamentally alter the nature of its goods, services, or accommodations.

(e) Auxiliary aids and services

In addition to making reasonable modifications to policies and practices, a public accommodation must provide auxiliary aids and services when necessary to ensure that no individual is excluded, denied services, segregated, or otherwise discriminated against based on disability. Auxiliary aids and services may include, but are not limited to, sign language interpreters, foreign language translators, Braille texts, or a reader or taped reading of written materials. In the case of a private entity, the private entity need not provide the requested auxiliary aid/service if it demonstrates that doing so would fundamentally alter the nature of its goods, services, or accommodations.

(f) Service animals

It is unlawful for a public accommodation or its agents to refuse to permit the use of a service animal or otherwise discriminate against an individual with a disability who uses a service animal at the place of public accommodation, except that a service animal may be excluded from the public accommodation if it poses a direct threat to the health or safety of others, would result in substantial physical damage to the property of others, or would substantially interfere with the reasonable enjoyment of the public accommodation by others.

If the individual’s need for a service animal is not readily observable, a public accommodation can ask two questions to determine whether or not the animal is a service animal that must be permitted: 1) Is the animal necessary because of a disability, and 2) what task or service has the animal been trained to perform. A public accommodation cannot ask for medical information, information about the individual’s disability, proof that the animal has been trained, or proof that the animal has been spayed/neutered or vaccinated.

Service animals are not required to wear identification such as a vest or special harness. There is no requirement of formal training, and no special license for a service animal. Requests for “proof” such as certificates or licenses indicating that an animal is a service animal are impermissible. The fact that an individual with an animal has obtained such a document or that an animal is wearing a vest is not relevant to the question of whether the animal is a service animal within the meaning of the Act.

Individuals with disabilities shall be permitted to be accompanied by their service animals in all areas of a place of public accommodation where members of the public, program participants, clients, customers, patrons, or invitees, as relevant, are allowed to go. Public accommodations are not responsible for care or supervision of a service animal.

A public accommodation may ask an individual with a disability to remove a service animal from the premises if:

(i) The animal is out of control and the animal’s handler does not take effective action to control it; or

(ii) The animal is not housebroken.

If a public accommodation properly excludes a service animal, it shall give the individual with a disability the opportunity to obtain goods, services, and accommodations without having the service animal on the premises.

The use of a service animal may not be conditioned on payment of a fee or deposit, If the public accommodation normally charges individuals for damage they cause, the individual is liable for any damage to the premises or facilities by the individual’s service animal.

7.05 Administrative Methods

A public accommodation shall not, directly or through contractual or other arrangements, utilize standards or criteria or methods or administration that have the effect of discriminating on the basis of physical or mental disability, or that perpetuate the discrimination of others who are subject to common administrative control.

7.06 Association

A public accommodation shall not exclude or otherwise deny equal goods, services, facilities, privileges, advantages, accommodations or other opportunities to an individual or entity because of the known protected class status physical or mental disability of an individual with whom the individual or entity is known to have a relationship.

7.07 Retaliation or Coercion

A. No private or public entity shall discriminate against any individual because that individual has opposed any act or practice made unlawful by this part, or because that individual made a charge, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under the Act or this Chapter.

B. No private or public entity shall coerce, intimidate, threaten, or interfere with any individual in the exercise or enjoyment of, or on account of his or her their having exercised or enjoyed, or on account of his or her their having aided or encouraged any other individual in the exercise or enjoyment of, any right granted or protected by the Act or this Chapter.

C. Illustrations of conduct prohibited by this section include, but are not limited to:

(1) Coercing an individual to deny or limit the benefits, services, or advantages to which they are entitled under the Act or this Chapter;

(2) Threatening, intimidating, or interfering with an individual with a disability who is seeking to obtain or use the goods, services, facilities, privileges, advantages, or accommodations of a public accommodation;

(3) Intimidating or threatening any person because that person is assisting or encouraging an individual or group entitled to claim the rights granted or protected by the Act or this part to exercise those rights; or

(4) Retaliating against any person because that person has participated in any investigation or action to enforce the Act or this Chapter.

7.08 Places of Public Accommodation Located in Private Residences

A. When a place of public accommodation is located in a private residence, the portion of the residence used exclusively as a residence is not covered by this Chapter, but that portion used exclusively in the operation of the place of public accommodation or that portion used both for the place of public accommodation and for residential purposes is covered by this Chapter.

B. The portion of the residence covered under paragraph (a) of this section extends to those elements used to enter the place of public accommodation, including the homeowner’s front sidewalk, if any, the door or entryway, and hallways; and those portions of the residence, interior or exterior, available to or used by customers or clients, including restrooms.

7.09 Direct Threat

A. This Chapter does not require a public accommodation to permit an individual to participate in or benefit from the goods, services, facilities, privileges, advantages and accommodations of that public accommodation when that individual poses a direct threat to the health or safety of others.

B. Direct threat means a significant risk to the health or safety of others that cannot be eliminated by a modification of policies, practices, or procedures, or by the provision of auxiliary aids or services.

C. In determining whether an individual poses a direct threat to the health or safety of others, a public accommodation must make an individualized assessment, based on reasonable judgment that relies on current medical knowledge or on the best available objective evidence, to ascertain: the nature, duration, and severity of the risk; the probability that the potential injury will actually occur; and whether reasonable modifications of policies, practices, or procedures or the provision of auxiliary aids or services will sufficiently mitigate the risk.

7.10 Illegal Use of Drugs

A. General

(1) Except as provided in subparagraph (2) of this section, this Chapter does not prohibit discrimination against an individual based on that individual’s current illegal use of drugs.

(2) A public accommodation shall not discriminate on the basis of illegal use of drugs against an individual who is not engaging in current illegal use of drugs and who-

(i) Has successfully completed a supervised drug rehabilitation program or has otherwise been rehabilitated successfully;

(ii) Is participating in a supervised rehabilitation program; or

Is erroneously regarded as engaging in such use.

B. Health and drug rehabilitation services

(1) A public accommodation shall not deny health services, or services provided in connection with drug rehabilitation, to an individual on the basis of that individual’s current illegal use of drugs, if the individual is otherwise entitled to such services.

(2) A drug rehabilitation or treatment program may deny participation to individuals who engage in illegal use of drugs while they are in the program. This includes the denial of continued access to the program, and removal from the premises, including any lodging or other facilities provided for program participants.

C. Drug testing

(1) This part does not prohibit a public accommodation from adopting or administering reasonable policies or procedures, including but not limited to drug testing, designed to ensure that an individual who formerly engaged in the illegal use of drugs is not now engaging in current illegal use of drugs.

(2) Nothing in this paragraph (C) shall be construed to encourage, prohibit, restrict, or authorize the conducting of testing for the illegal use of drugs.

7.11 Smoking

This Chapter does not preclude the prohibition of, or the imposition of restrictions on, smoking in places of public accommodation.

7.12 Maintenance of Accessible Features

A. A public accommodation shall maintain in operable working condition those features of facilities and equipment that are required to be readily accessible to and usable by persons with physical or mental disabilities by the Act or this Chapter.

This section does not prohibit isolated or temporary interruptions in service or access due to maintenance or repairs.

C. If the 2010 Standards reduce the technical requirements or the number of required accessible elements below the number required by the 1991 Standards, the technical requirements or the number of accessible elements in a facility subject to this part may be reduced in accordance with the requirements of the 2010 Standards.

7.13 Insurance

A. This Chapter shall not be construed to prohibit or restrict-

(1) An insurer, hospital or medical service company, health maintenance organization, or any agent, or entity that administers benefit plans, or similar organizations from underwriting risks, classifying risks, or administering such risks that are based on or not inconsistent with State law; or

(2) A person or organization covered by this Chapter from establishing the terms of a bona fide benefit plan that are based on underwriting risks, classifying risks, or administering such risks that are based on or not inconsistent with State law; or

(3) A person or organization covered by this part form establishing, sponsoring, observing or administering the terms of a bona fide benefit plan that is not subject to State laws that regulate insurance.

B. Paragraphs (a) (1), (2), and (3) of this section shall not be used as a subterfuge to evade the purposes of the Act or this Chapter.

C. A public accommodation shall not refuse to serve an individual with a physical or mental disability because its insurance company conditions coverage or rates on the absence of individuals with disabilities.

7.14 Single-occupancy toilet facilities: discrimination based on sex and sexual orientation or gender identity

It is unlawful for a place of public accommodation to designate a single-occupancy toilet facility as for use only by members of one sex. The toilet facility may be identified by a sign, but the sign cannot indicate that only individuals of a particular sex may use the facility. For the purposes of this subsection, a “single-occupancy toilet facility” is a restroom for use by one person at a time, or for family or assisted use, and that has an outer door that can be locked by the occupant.

A single-occupancy toilet facility may be identified as accessible by individuals with disabilities consistent with the accessibility requirements below.

7.15 Eligibility Criteria

A. General

A public accommodation shall not impose or apply eligibility criteria that screen out or tend to screen out an individual with a disability or any class of individuals with physical or mental disabilities from fully and equally enjoying any goods, services, facilities, privileges, advantages, or accommodations, unless such criteria can be shown to be necessary for the provision of the goods, services, facilities, privileges, advantages, or accommodations being offered.

B. Safety

A public accommodation may impose legitimate safety requirements that are necessary for safe operation. Safety requirements must be based on actual risks and not on mere speculation, stereotypes, or generalizations about individuals with physical or mental disabilities.

C. Charges

A public accommodation may not impose a surcharge on a particular individual with a physical or mental disability or any group of individuals with physical or mental disabilities to cover the costs of measures, such as the provision of auxiliary aids, barrier removal, and reasonable modifications in policies, practices, or procedures, that are required to provide that individual or group with the nondiscriminatory treatment required by the Act or this Chapter.

7.16 Modifications in policies, practices, or procedures

A. Specialties

(1) General

A public accommodation may refer an individual with a physical or mental disability to another public accommodation, if that individual is seeking, or requires, treatment or services outside of the referring public accommodation’s area of specialization, and if, in the normal course of its operations, the referring public accommodation would make a similar referral for an individual without a physical or mental disability who seeks or requires the same treatment or services.

(2) Illustration - medical specialties

A health care provider may refer an individual with a physical or mental disability to another provider, if that individual is seeking, or requires, treatment or services outside of the referring provider’s area of specialization, and if the referring provider would make a similar referral for an individual without a physical or mental disability who seeks or requires the same treatment or services. A physician who specializes in treating only a particular condition is not required to treat the individual for a different condition.

B. Check-out aisles

A store with check-out aisles shall ensure that an adequate number of accessible check-out aisles are kept open during store hours, or shall otherwise modify its policies and practices, in order to ensure that an equivalent level of convenient service is provided to individuals with physical or mental disabilities as is provided to others. If only one check-out aisle is accessible, and it is generally used for express service, one way of providing equivalent service is to allow persons with mobility impairments to make all their purchases at that aisle.

C. Reservations made by places of lodging

(1) A public accommodation that owns, leases (or leases to), or operates a place of lodging shall, with respect to reservations made by any means, including by telephone, in-person, or through a third party –

Modify its policies, practices, or procedures to ensure that individuals with disabilities can make reservations for accessible guest rooms during the same hours and in the same manner as individuals who do not need accessible rooms;

Identify and describe accessible features in the hotels and guest rooms offered through its reservations service in enough detail to reasonably permit individuals with disabilities to assess independently whether a given hotel or guest room meets his or her accessibility needs;

Ensure that accessible guest rooms are held for use by individuals with disabilities until all other guest rooms of that type have been rented and the accessible room requested is the only remaining room of that type;

Reserve, upon request, accessible guest rooms or specific types of guest rooms and ensure that the guest rooms requested are blocked and removed from all reservations systems; and

Guarantee that the specific accessible guest room reserved through its reservations service is held for the reserving customer, regardless of whether a specific room is held in response to reservations made by others.

Exception

The requirements in paragraphs (iii), (iv), and (v) of this subsection do not apply to reservations for individual guest rooms or other units not owned or substantially controlled by the entity that owns, leases, or operates the overall facility.

F. Ticketing

(1)

For the purposes of this subsection, "accessible seating" is defined as wheelchair spaces and companion seats that comply with sections 221 and 802 of the 2010 Standards along with any other seats required to be offered for sale to the individual with a disability pursuant to paragraph (4) of this subsection.

Ticket sales

A public accommodation that sells tickets for a single event or series of events shall modify its policies, practices, or procedures to ensure that individuals with disabilities have an equal opportunity to purchase tickets for accessible seating –

During the same hours;

During the same stages of ticket sales, including, but not limited to, pre-sales, promotions, lotteries, wait-lists, and general sales;

Through the same methods of distribution;

In the same types and numbers of ticketing sales outlets, including telephone service, in-person ticket sales at the facility, or third-party ticketing services, as other patrons; and

Under the same terms and conditions as other tickets sold for the same event or series of events.

Identification of available accessible seating

A public accommodation that sells or distributes tickets for a single event or series of events shall, upon inquiry –

Inform individuals with disabilities, their companions, and third parties purchasing tickets for accessible seating on behalf of individuals with disabilities of the locations of all unsold or otherwise available accessible seating for any ticketed event or events at the facility;

Identify and describe the features of available accessible seating in enough detail to reasonably permit an individual with a disability to assess independently whether a given accessible seating location meets his or her accessibility needs; and

Provide materials, such as seating maps, plans, brochures, pricing charts, or other information, that identify accessible seating and information relevant thereto with the same text or visual representations as other seats, if such materials are provided to the general public.

(3) Ticket prices

The price of tickets for accessible seating for a single event or series of events shall not be set higher than the price for other tickets in the same seating section for the same event or series of events. Tickets for accessible seating must be made available at all price levels for every event or series of events. If tickets for accessible seating at a particular price level cannot be provided because barrier removal in an existing facility is not readily achievable, then the percentage of tickets for accessible seating that should have been available at that price level but for the barriers (determined by the ratio of the total number of tickets at that price level to the total number of tickets in the assembly area) shall be offered for purchase, at that price level, in a nearby or similar accessible location.

(4) Purchasing multiple tickets

General

For each ticket for a wheelchair space purchased by an individual with a disability or a third-party purchasing such a ticket at his or her request, a public accommodation shall make available for purchase three additional tickets for seats in the same row that are contiguous with the wheelchair space, provided that at the time of purchase there are three such seats available. A public accommodation is not required to provide more than three contiguous seats for each wheelchair space. Such seats may include wheelchair spaces.

Insufficient additional contiguous seats available

If patrons are allowed to purchase at least four tickets, and there are fewer than three such additional contiguous seat tickets available for purchase, a public accommodation shall offer the next highest number of such seat tickets available for purchase and shall make up the difference by offering tickets for sale for seats that are as close as possible to the accessible seats.

Sales limited to fewer than four tickets

If a public accommodation limits sales of tickets to fewer than four seats per patron, then the public accommodation is only obligated to offer as many seats to patrons with disabilities, including the ticket for the wheelchair space, as it would offer to patrons without disabilities.

Maximum number of tickets patrons may purchase exceeds four

If patrons are allowed to purchase more than four tickets, a public accommodation shall allow patrons with disabilities to purchase up to the same number of tickets, including the ticket for the wheelchair space.

Group sales

If a group includes one or more individuals who need to use accessible seating because of a mobility disability or because their disability requires the use of the accessible features that are provided in accessible seating, the group shall be placed in a seating area with accessible seating so that, if possible, the group can sit together. If it is necessary to divide the group, it should be divided so that the individuals in the group who use wheelchairs are not isolated from their group.

(5) Hold and release of tickets for accessible seating

(i) Tickets for accessible seating may be released for sale in certain limited circumstances

A public accommodation may release unsold tickets for accessible seating for sale to individuals without disabilities for their own use for a single event or series of events only under the following circumstances –

(A) When all non-accessible tickets (excluding luxury boxes, club boxes, or suites) have been sold;

(B) When all non-accessible tickets in a designated seating area have been sold and the tickets for accessible seating are being released in the same designated area; or

(C) When all non-accessible tickets in a designated price category have been sold and the tickets for accessible seating are being released within the same designated price category.

(ii) No requirement to release accessible tickets

Nothing in this paragraph requires a facility to release tickets for accessible seating to individuals without disabilities for their own use.

(iii) Release of series-of-events tickets on a series-of-events basis

(A) Series-of-events tickets sell-out when no ownership rights are attached

When series-of-events tickets are sold out and a public accommodation releases and sells accessible seating to individuals without disabilities for a series of events, the public accommodation shall establish a process that prevents the automatic reassignment of the accessible seating to such ticket holders for future seasons, future years, or future series, so that individuals with disabilities who require the features of accessible seating and who become newly eligible to purchase tickets when these series-of-events tickets are available for purchase have an opportunity to do so.

(B) Series-of-events tickets when ownership rights are attached

When series-of-events tickets with an ownership right in accessible seating areas are forfeited or otherwise returned to a public accommodation, the public accommodation shall make reasonable modifications in its policies, practices, or procedures to afford individuals with mobility disabilities or individuals with disabilities that require the features of accessible seating an opportunity to purchase such tickets in accessible seating areas.

(6) Ticket transfer

Individuals with disabilities who hold tickets for accessible seating shall be permitted to transfer tickets to third parties under the same terms and conditions and to the same extent as other spectators holding the same type of tickets, whether they are for a single event or series of events.

(7) Secondary ticket market

(i) A public accommodation shall modify its policies, practices, or procedures to ensure that an individual with a disability may use a ticket acquired in the secondary ticket market under the same terms and conditions as other individuals who hold a ticket acquired in the secondary ticket market for the same event or series of events.

(ii) If an individual with a disability acquires a ticket or series of tickets to an inaccessible seat through the secondary market, a public accommodation shall make reasonable modifications to its policies, practices, or procedures to allow the individual to exchange his ticket for one to an accessible seat in a comparable location if accessible seating is vacant at the time the individual presents the ticket to the public accommodation.

(8) Prevention of fraud in purchase of tickets for accessible seating

A public accommodation may not require proof of disability, including, for example, a doctor’s note, before selling tickets for accessible seating.

(i) Single-event tickets

For the sale of single-event tickets, it is permissible to inquire whether the individual purchasing the tickets for accessible seating has a mobility disability or a disability that requires the use of the accessible features that are provided in accessible seating, or is purchasing the tickets for an individual who has a mobility disability or a disability that requires the use of the accessible features that are provided in the accessible seating.

(ii) Series-of-events tickets

For series-of-events tickets, it is permissible to ask the individual purchasing the tickets for accessible seating to attest in writing that the accessible seating is for a person who has a mobility disability or a disability that requires the use of the accessible features that are provided in the accessible seating.

(iii) Investigation of fraud

A public accommodation may investigate the potential misuse of accessible seating where there is good cause to believe that such seating has been purchased fraudulently.

7.17 Auxiliary Aids and Services: Individuals with Disabilities

A. General

A public accommodation shall take those steps that may be necessary to ensure that no individual with a physical or mental disability is excluded, denied services, segregated or otherwise treated differently than other individuals because of the absence of auxiliary aids and services, unless the public accommodation can demonstrate that taking those steps would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations being offered or would result in an undue burden, i.e., significant difficulty or expense.

B. Examples

The term “auxiliary aids and services” includes:

(1) Qualified interpreters on-site or through video remote interpreting (VRI) services; notetakers; real-time computer-aided transcription services; written materials; exchange of written notes; telephone handset amplifiers; assistive listening devices; assistive listening systems; telephones compatible with hearing aids; closed caption decoders; open and closed captioning, including real-time captioning; voice, text, and video-based telecommunications products and systems, including text telephones (TTYs), videophones, and captioned telephones, or equally effective telecommunications devices; videotext displays; accessible electronic and information technology; or other effective methods of making aurally delivered information available to individuals who are deaf or hard of hearing;

(2) Qualified readers; taped texts; audio recordings; Brailled materials and displays; screen reader software; magnification software; optical readers; secondary auditory programs (SAP); large print materials; accessible electronic and information technology; or other effective methods of making visually delivered materials available to individuals who are blind or have low vision;

(3) Acquisition or modification or equipment or devises; and

(4) Other similar services and actions.

C. Effective communication

(1) A public accommodation shall furnish appropriate auxiliary aids and services where necessary to ensure effective communication with individuals with physical or mental disabilities. This includes an obligation to provide effective communication to companions who are individuals with disabilities.

(i) For purposes of this section, "companion" means a family member, friend, or associate of an individual seeking access to, or participating in, the goods, services, facilities, privileges, advantages, or accommodations of a public accommodation, who, along with such individual, is an appropriate person with whom the public accommodation should communicate.

(ii) The type of auxiliary aid or service necessary to ensure effective communication will vary in accordance with the method of communication used by the individual; the nature, length, and complexity of the communication involved; and the context in which the communication is taking place. A public accommodation should consult with individuals with disabilities whenever possible to determine what type of auxiliary aid is needed to ensure effective communication, but the ultimate decision as to what measures to take rests with the public accommodation, provided that the method chosen results in effective communication. In order to be effective, auxiliary aids and services must be provided in accessible formats, in a timely manner, and in such a way as to protect the privacy and independence of the individual with a disability.

(2) A public accommodation shall not require an individual with a disability to bring another individual to interpret for him or her.

(3) A public accommodation shall not rely on an adult accompanying an individual with a disability to interpret or facilitate communication, except –

(i) In an emergency involving an imminent threat to the safety or welfare of an individual or the public where there is no interpreter available; or

(ii) Where the individual with a disability specifically requests that the accompanying adult interpret or facilitate communication, the accompanying adult agrees to provide such assistance, and reliance on that adult for such assistance is appropriate under the circumstances.

(4) A public accommodation shall not rely on a minor child to interpret or facilitate communication, except in an emergency involving an imminent threat to the safety or welfare of an individual or the public where there is no interpreter available.

D. Telecommunications

(1) When a public accommodation uses an automated-attendant system, including, but not limited to, voicemail and messaging, or an interactive voice response system, for receiving and directing incoming telephone calls, that system must provide effective real-time communication with individuals using auxiliary aids and services, including text telephones (TTYs) and all forms of FCC-approved telecommunications relay systems, including Internet-based relay systems.

(2) A public accommodation that offers a customer, client, patient, or participant the opportunity to make outgoing telephone calls using the public accommodation’s equipment on more than an incidental convenience basis shall make available public telephones, TTYs, or other telecommunications products and systems for use by an individual who is deaf or hard of hearing, or has a speech impairment.

(3) A public accommodation may use relay services in place of direct telephone communication for receiving or making telephone calls incident to its operations.

(4) A public accommodation shall respond to telephone calls from a telecommunications relay service established under title IV of the ADA in the same manner that it responds to other telephone calls.

(5) This part does not require a public accommodation to use a TTY for receiving or making telephone calls incident to its operations.

E. Closed caption decoders

Places of lodging that provide televisions in five or more guest rooms and hospitals that provide televisions for patient use shall provide, upon request, a means for decoding captions for use by an individual with impaired hearing.

F. Video remote interpreting (VRI) services

A public accommodation that chooses to provide qualified interpreters via VRI service shall ensure that it provides –

(1) Real-time, full-motion video and audio over a dedicated high-speed, wide-bandwidth video connection or wireless connection that delivers high-quality video images that do not produce lags, choppy, blurry, or grainy images, or irregular pauses in communication;

(2) A sharply delineated image that is large enough to display the interpreter’s face, arms, hands, and fingers, and the participating individual’s face, arms, hands, and fingers, regardless of his or her body position;

(3) A clear, audible transmission of voices; and

(4) Adequate training to users of the technology and other involved individuals so that they may quickly and efficiently set up and operate the VRI.

G. Alternatives

If provision of a particular auxiliary aid or service by a public accommodation would result in a fundamental alteration in the nature of the goods, service, facilities, privileges, advantages, or accommodations being offered or in an undue burden, i.e., significant difficulty or expense, the public accommodation shall provide an alternative auxiliary aid or service, if one exists, that would not result in an alteration or such burden but would nevertheless ensure that, to the maximum extent possible, individuals with physical or mental disabilities receive the goods, services, facilities, privileges, advantages, or accommodations offered by the public accommodation.

7.18 Removal of Barriers

A. General

A public accommodation shall remove architectural barriers in existing facilities, including communication barriers that are structural in nature, where such removal is readily achievable, i.e., easily accomplishable and able to be carried out without much difficulty or expense.

B. Examples

Examples of steps to remove barriers include, but are not limited to, the following actions -

(1) Installing ramps;

(2) Making curb cuts in sidewalks and entrances;

(3) Repositioning shelves;

(4) Rearranging tables, chairs, vending machines, display racks, and other furniture;

(5) Repositioning telephones;

(6) Adding raised markings on elevator buttons;

(7) Installing flashing alarm lights;

(8) Widening doors;

(9) Installing offset hinges to widen doorways;

(10) Eliminating a turnstile or providing an alternative accessible path;

(11) Installing accessible door hardware;

(12) Installing grab bars in toilet stalls;

(13) Rearranging toilet partitions to increase maneuvering space;

(14) Insulating lavatory pipes under sinks to prevent burns;

(15) Installing a raised toilet seat;

(16) Installing a full-length bathroom mirror;

(17) Repositioning the paper towel dispenser in a bathroom;

(18) Creating designated accessible parking spaces;

(19) Installing an accessible paper cup dispenser at an existing inaccessible water fountain;

(20) Removing high pile, low density carpeting; or

(21) Installing vehicle hand controls.

C. Priorities

A public accommodation is urged to take measures to comply with the barrier removal requirements of this section in accordance with the following order or priorities.

(1) First, a public accommodation should take measures to provide access to a place of public accommodation from public sidewalks, parking, or public transpiration. These measures include, for example, installing an entrance ramp, widening entrances, and providing accessible parking spaces.

(2) Second, a public accommodation should take measures to provide access to those areas of a place of public accommodation where goods and services are made available to the public. These measures include, for example, adjusting the layout of display racks, rearranging tables, providing Brailled and raised character signage, widening doors, providing visual alarms, and installing ramps.

(3) Third, a public accommodation should take measures to provide access to rest room facilities. These measures include, for example, removal of obstructing furniture or vending machines, widening of doors, installation of ramps, providing accessible signage, widening of toilet stalls, and installation of grab bars.

(4) Fourth, a public accommodation should take any other measures necessary to provide access to the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation.

D. Relationship to alterations requirements of 5 M.R.S. §4594-G

(1) Except as provided in paragraph (D)(3) of this section, measures taken to comply with the barrier removal requirements of this section shall comply with the applicable requirements for alterations in 5 M.R.S. §4594-G for the element being altered. The path of travel requirements shall not apply to measures taken solely to comply with the barrier removal requirements of this section.

(2) The safe harbor provided in 28 CFR 36.304(d)(2) shall apply to the barrier removal requirements of this section.

(3) If, as a result of compliance with the alterations requirements specified in paragraph (D)(1) and (D)(2) of this section, the measures required to remove a barrier would not be readily achievable, a public accommodation may take other readily achievable measures to remove the barrier that do not fully comply with the specified requirements. Such measures include, for example, providing a ramp with a steeper slope or widening a doorway to a narrower width than that mandated by the alterations requirements. No measure shall be taken, however, that poses a significant risk to the health or safety of individuals with physical or mental disabilities or others.

E. Portable ramps

Portable ramps should be used to comply with this section only when installation of a permanent ramp is not readily achievable. In order to avoid any significant risk to the health or safety of individuals with physical or mental disabilities or others in using portable ramps, due consideration shall be given to safety features such as non-slip surfaces, railings, anchoring, and strength of materials.

F. Selling or serving space

The rearrangement of temporary or movable structures, such as furniture, equipment, and display racks is not readily achievable to the extent that it result s in a significant loss of selling or serving space.

G. Limitation on barrier removal obligations

(1) The requirements for barrier removal under Sec. 7.18 shall not be interpreted to exceed the standards for alterations in 5 M.R.S. §4594-G.

(2) To the extent that relevant standards for alterations are not provided in 5 M.R.S. §4594-G, then the requirements of Sec. 7.18 shall not be interpreted to exceed the standards for new construction in 5 M.R.S. §4594-G.

(3) This section does not apply to rolling stock and other conveyances to the extent that Sec. 7.24 applies to rolling stock and other conveyances.

(4) This requirement does not apply to guest rooms in existing facilities that are places of lodging where the guest rooms are not owned by the entity that owns, leases, or operates the overall facility and the physical features of the guest room interiors are controlled by their individual owners.

7.19 Alternatives to Barrier Removal

A. General

Where a public accommodation can demonstrate that barrier removal is not readily achievable, the public accommodation shall not fail to make its goods, services, facilities, privileges, advantages, or accommodations available through alternative methods, if those methods are readily achievable.

B. Examples

Examples of alternatives to barrier removal include, but are not limited to, the following actions -

(1) Providing curb service or home delivery;

(2) Retrieving merchandise from inaccessible shelves or racks;

(3) Relocating activities to accessible locations;

C. Multiscreen cinemas

If it is not readily achievable to remove barriers to provide access by persons with mobility impairments to all of the theaters of a multiscreen cinema, the cinema shall establish a film rotation schedule that provides reasonable access for individuals who use wheelchairs to all films. Reasonable notice shall be provided to the public as to the location and time of accessible showings.

7.20 Personal Devices and Services

This Chapter does not require a public accommodation to provide its customers, clients, or participants with personal devices, such as wheelchairs; individually prescribed devices, such as prescription eyeglasses or hearing aids; or services of a personal nature including assistance in eating, toileting, or dressing.

7.21 Accessible or Special goods

A. This Chapter does not require a public accommodation to alter its inventory to include accessible or special goods that are designed for, or facilitate use by, individuals with physical or mental disabilities.

B. A public accommodation shall order accessible or special goods at the request of an individual with physical or mental disabilities, if, in the normal course of its operation, it makes special orders on request for unstocked goods, and if the accessible or special goods can be obtained from a supplier with whom the public accommodation customarily does business.

C. Examples of accessible or special goods include items such as Brailled versions of books, books on audio cassettes, closed-captioned video tapes, special sizes or lines of clothing, and special foods to meet particular dietary needs.

7.22 Seating in Assembly Areas

A public accommodation shall ensure that wheelchair spaces and companion seats are provided in each specialty seating area that provides spectators with distinct services or amenities that generally are not available to other spectators. If it is not readily achievable for a public accommodation to place wheelchair spaces and companion seats in each such specialty seating area, it shall provide those services or amenities to individuals with disabilities and their companions at other designated accessible locations at no additional cost. The number of wheelchair spaces and companion seats provided in specialty seating areas shall be included in, rather than in addition to, wheelchair space requirements set forth in table 221.2.1.1 in the 2010 Standards.

7.23 Examinations and Courses

A. General

Any public or private entity that offers examinations or courses related to applications, licensing, certification, or credentialing for secondary or postsecondary education, professional, or trade purposes shall offer such examinations or courses in a place and manner accessible to persons with physical or mental disabilities or offer alternative accessible arrangements for such individuals.

B. Examinations

(1) Any public or private entity offering an examination covered by this section must assure that -

(i) The examination is selected and administered so as to best ensure that when the examination is administered to an individual with a physical or mental disability that impairs sensory, manual, or speaking skills, the examination results accurately reflect the individual’s aptitude or achievement level or whatever other factor the examination purports to measure, rather than reflecting the individual’s impaired sensory, manual, or speaking skills (except where those skills are the factors that the examination purports to measure);

(ii) An examination that is designed for individuals with impaired sensory, manual, or speaking skills is offered at equally convenient locations, as often, and in as timely a manner as are other examinations; and

(iii) The examination is administered in facilities that are accessible to individuals with physical or mental disabilities or alternative accessible arrangements are made.

(iv) Any request for documentation, if such documentation is required, is reasonable and limited to the need for the modification, accommodation, or auxiliary aid or service requested.

(v) When considering requests for modifications, accommodations, or auxiliary aids or services, the entity gives considerable weight to documentation of past modifications, accommodations, or auxiliary aids or services received in similar testing situations, as well as such modifications, accommodations, or related aids and services provided in response to an Individualized Education Program (IEP) provided under the Individuals with Disabilities Education Act or a plan describing services provided pursuant to section 504 of the Rehabilitation Act of 1973 , as amended (often referred as a Section 504 Plan).

(vi) The entity responds in a timely manner to requests for modifications, accommodations, or aids to ensure equal opportunity for individuals with disabilities.

(2) Required modifications to an examination may include changes in the length of time permitted for completion of the examination and adaptation of the manner in which the examination is given.

(3) A public or private entity offering an examination covered by this section shall provide appropriate auxiliary aids for persons with impaired sensory, manual, or speaking skills, unless that public or private entity can demonstrate that offering a particular auxiliary aid would fundamentally alter the measurement of the skills or knowledge the examination is intended to test or would result in an undue burden. Auxiliary aids and services required by this section may include taped examinations, interpreters or other effective methods of making orally delivered materials available to individuals with hearing impairments, Brailled or large print examinations and answer sheets or qualified readers for individuals with visual impairments or learning disabilities, transcribers for individuals with manual impairments, and other similar services and actions.

(4) Alternative accessible arrangements may include, for example, provision of an examination at an individual’s home with a proctor if accessible facilities or equipment are unavailable. Alternative arrangements must provide comparable conditions to those provided for non-disabled individuals.

C. Courses

(1) Any public or private entity that offers a course covered by this section must make such modifications to that course as are necessary to ensure that the place and manner in which the course is given are accessible to individuals with physical or mental disabilities.

(2) Required modifications may include changes in the length of time permitted for the completion of the course, substitution of specific requirements, or adaptation of the manner in which the course is conducted or course materials are distributed.

(3) A public or private entity that offers a course covered by this section shall provide appropriate auxiliary aids and services for persons with impaired sensory, manual, or speaking skills, unless the public or private entity can demonstrate that offering a particular auxiliary aid or service would fundamentally alter the course or would result in an undue burden. Auxiliary aids and services required by this section may include taped texts, interpreters or other effective methods of making orally delivered materials available to individuals with hearing impairments, Brailled or large print texts or qualified readers for individuals with visual impairments and learning disabilities, classroom equipment adapted for use by individuals with manual impairments, and other similar services and actions.

(4) Courses must be administered in facilities that are accessible to individuals with disabilities or alternative accessible arrangements must be made.

(5) Alternative accessible arrangements may include, for example, provision of the course through videotape, cassettes, or prepared notes. Alternative arrangements must provide comparable conditions to those provided for non-disabled individuals.

7.24 Transportation Provided by Public Accommodations

A. General

(1) A public accommodation that provides transportation services, but that is not primarily engaged in the business of transporting people, is subject to the general and specific provisions in Parts Two, Three, and Four of this Chapter for its transportation operations, except as provided in this section.

(2) Examples

Transportation services subject to this section include, but are not limited to, shuttle services operated between transportation terminals and places of public accommodation, customer shuttle bus services operated by public or private companies and shopping centers, student transportation systems, and transportation provided within recreational facilities such as stadiums, zoos, amusement parks, and ski resorts.

B. Barrier removal

A public accommodation subject to this section shall remove transportation barriers in existing vehicles and rail passenger cars used for transporting individuals (not including barriers that can only be removed through the retrofitting of vehicles or rail passenger cars by the installation of a hydraulic or other lift) where such removal is readily achievable.

C. Requirements for vehicles and systems

A public accommodation subject to this section shall comply with the requirements pertaining to vehicles and transportation systems in the regulations issued by the Secretary of Transportation pursuant to section 306 of the Americans with Disabilities Act .

7.25 Mobility devices

A. Use of wheelchairs and manually-powered mobility aids

A public accommodation shall permit individuals with mobility disabilities to use wheelchairs and manually-powered mobility aids, such as walkers, crutches, canes, braces, or other similar devices designed for use by individuals with mobility disabilities in any areas open to pedestrian use.

B.

(1) Use of other power-driven mobility devices

A public accommodation shall make reasonable modifications in its policies, practices, or procedures to permit the use of other power-driven mobility devices by individuals with mobility disabilities, unless the public accommodation can demonstrate that the class of other power-driven mobility devices cannot be operated in accordance with legitimate safety requirements that the public accommodation has adopted pursuant to 7.15(B).

(2) Assessment factors

In determining whether a particular other power-driven mobility device can be allowed in a specific facility as a reasonable modification under paragraph (B)(1) of this section, a public accommodation shall consider –

(i) The type, size, weight, dimensions, and speed of the device;

(ii) The facility’s volume of pedestrian traffic (which may vary at different times of the day, week, month, or year);

(iii) The facility’s design and operational characteristics ( e.g. , whether its business is conducted indoors, its square footage, the density and placement of stationary devices, and the availability of storage for the device, if requested by the user);

(iv) Whether legitimate safety requirements can be established to permit the safe operation of the other power-driven mobility device in the specific facility; and

(v) Whether the use of the other power-driven mobility device creates a substantial risk of serious harm to the immediate environment or natural or cultural resources, or poses a conflict with Federal land management laws and regulations.

C.

(1) Inquiry about disability

A public accommodation shall not ask an individual using a wheelchair or other power-driven mobility device questions about the nature and extent of the individual’s disability.

(2) Inquiry into use of other power-driven mobility device

A public accommodation may ask a person using an other power-driven mobility device to provide a credible assurance that the mobility device is required because of the person’s disability. A public accommodation that permits the use of another power-driven mobility device by an individual with a mobility disability shall accept the presentation of a valid, State-issued disability parking placard or card, or State-issued proof of disability, as a credible assurance that the use of the other power-driven mobility device is for the individual’s mobility disability. In lieu of a valid, State-issued disability parking placard or card, or State-issued proof of disability, a public accommodation shall accept as a credible assurance a verbal representation, not contradicted by observable fact, that the other power-driven mobility device is being used for a mobility disability. A "valid" disability placard or card is one that is presented by the individual to whom it was issued and is otherwise in compliance with the State of issuance’s requirements for disability placards or cards.

NEW CONSTRUCTION AND ALTERATIONS

The standards for new construction of and alterations to places of public accommodations and commercial facilities are set forth in 5 M.R.S. §4594-G.

History

• STATUTORY AUTHORITY: This rule is adopted pursuant to 5 M.R.S. §4566(7)
• EFFECTIVE DATE: July 6, 1997 – filing 97-228
• NON-SUBSTANTIVE CORRECTIONS: August 19, 1997 - minor spelling and punctuation
• AMENDED: July 20, 2005 – filing 2005-295, adding 7.01(6)
• AMENDED: March 21, 2007 – filing 2007-106, redefined “physical or mental disability” in 7.01, added “physical or mental” before the words “disability” and “disabilities” in many places throughout the chapter; some renumbering
• AMENDED: April 14, 2008 - filing 2008-163, removed “Physical or mental disability” from Definitions in 7.01
• AMENDED: November 19, 2008 – filing 2008-536, Sections 7.01 and 7.16(C)
• AMENDED: November 26, 2012 – filing 2012-334
• AMENDED: December 10, 2022 – filing 2022-237

Chapter 8 Housing Regulations of the Maine Human Rights Commission

Code Me. R. 94-348 Ch. 8 Housing Regulations of the Maine Human Rights Commission {#sec-94-348-ch.-8 omnilex-key=us-me-regs-official--dept-independent-agencies--94-348 Ch. 8}

8.01 GENERALLY

A. Purpose

Pursuant to Title 5 M.R.S.A. §4566(7), the Maine Human Rights Commission has adopted the following regulations which are designed to inform owners, lessees, sublessees, managing agents and other interested parties of the Commission’s interpretation of the Maine Human Rights Act, Title 5 M.R.S.A. §4551, et seq ., hereinafter referred to as “the Act.”

B. Effect

The regulations shall be accorded the full force and effect of interpretative administrative regulations.

C. Construction

(1) Consistent with the public policy underlying the Act (as expressed in §4552), and with firmly established principles for the interpretation of such humanitarian legislation, the remedial provisions of the Act shall be given broad construction and its exceptions shall be construed narrowly.

(2) The provisions of these regulations are severable. If any provision or the application of any provision of these regulations to any person or circumstances is invalid, such invalidity shall not affect other provisions or applications which can be given effect without the invalid provision or application.

8.02 EXEMPTIONS

A. This part does not:

(1) Prohibit a religious organization, association, or society, or any non-profit institution or organization operated, supervised or controlled by or in conjunction with a religious organization, association, or society, from limiting the sale, rental or occupancy of dwellings which it owns or operates for other than a commercial purpose to persons of the same religion, or from giving preference to such persons, unless membership in such religion is restricted because of race, color, or national origin;

(2) Prohibit a private club, not in fact open to the public, which incident to its primary purpose or purposes, provides lodgings which it owns or operates for other than a commercial purpose, from limiting the rental or occupancy of such lodging to its members or from giving preference to its members.

(3) Limit the applicability of any reasonable local, State or Federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling; or

(4) Prohibit conduct against a person because such person has been convicted by any court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined in State or Federal Controlled Substance Acts.

B. Nothing in this part regarding discrimination based on familial status applies with respect to housing for older persons as defined in Section 8.07 of this Rule.

C. Nothing in this part, other than §§ 8.04(A)(4) (statements or advertisements), 8.04(A)(7) (brokerage services), 8.04(E) (advertisement, statements and notices), 8.04(H) (brokerage services), and 8.05 (residential real estate-related transactions), applies to:

(1) The rental of a one-family unit of a 2-family dwelling, one unit of which is occupied by the owner.

(2) The rental of not more than 4 rooms of a one-family dwelling which is occupied by the owner.

D. Nothing in the Act or these regulations regarding discrimination based on sexual orientation applies to the rental of any dwelling owned, controlled, or operated for other than a commercial purpose to its membership by a religious corporation that does not receive public funds. Any for-profit organization owned, controlled, or operated by a religious association or corporation and subject to the provisions of the Internal Revenue Code, 26 United States Code, Section 511(a), is not covered by the exemptions set forth in this paragraph.

8.03 DEFINITIONS

Accessible, when used with respect to the public and common use areas of a building containing covered multifamily dwellings, means that the public or common use areas of the building can be approached, entered, and used by individuals with physical or mental disabilities. The phrase readily accessible to and usable by is synonymous with accessible. A public or common use area that complies with the appropriate standards of construction is accessible within the meaning of this paragraph.

Accessible route means a continuous unobstructed path connecting accessible elements and spaces in a building or within a site that can be negotiated by a person with a severe disability using a wheelchair and that is also safe for and usable by people with other physical or mental disabilities. Interior accessible routes may include corridors, floors, ramps, elevators and lifts. Exterior accessible routes may include parking access aisles, curb ramps, walks, ramps and lifts. A route that complies with the appropriate standards of construction is an accessible route.

Alteration means a change to a facility that affects or could affect the usability of the facility or any part of the facility, including, but not limited to, reconstruction, remodeling, rehabilitation, historic restoration, changes or rearrangement in structural parts or elements and changes or rearrangement in the plan configuration of walls and full-height partitions. Alteration does not include normal maintenance, decoration and upgrades, including, but not limited to, reroofing, re-siding, painting or wallpapering, replacement of doors or windows, asbestos removal and changes to mechanical and electrical systems unless they affect the usability of the facility.

Broker or Agent includes any person authorized to perform an action on behalf of another person regarding any matter related to the sale or rental of dwellings, including offers, solicitations or contracts and the administration of matters regarding such offers, solicitations or contracts or any residential real estate-related transactions. “Real estate broker”, “associate real estate broker”, and “real estate sales agent” have the same definitions as are given respectively in Title 32, sections 13198, 13199 and 13200; but include all persons meeting those definitions, whether or not they are licensed or required to be licensed.

Builder means the applicant for a building permit in a municipality that requires these permits or the owner of the property in a municipality that does not require building permits.

Building means a structure, facility or portion thereof that contains or serves one or more dwelling units.

Building entrance on an accessible route means an accessible entrance to a building that is connected by an accessible route to public transportation stops, to accessible parking and passenger loading zones, or to public streets or sidewalks, if available. A building entrance that complies with the appropriate standards of construction complies with this paragraph.

Common use areas means rooms, spaces or elements inside or outside of a building that are made available for the use of residents of a building or the guests thereof. These areas include hallways, lounges, lobbies, laundry rooms, refuse rooms, mail rooms, recreational areas and passageways among and between buildings.

Controlled substance means any drug or other substance, or immediate precursor as defined in State or Federal Controlled Substance Acts.

Covered multifamily dwellings means buildings consisting of 4 or more dwelling units if such buildings have one or more elevators; and ground floor dwelling units in other buildings consisting of 4 or more dwelling units.

Design professional means an architect or professional engineer registered to practice under Title 32.

Discriminatory housing practice means an act that is unlawful under Subchapter IV of the Maine Human Rights Act.

Dwelling means any building, structure or portion thereof which is occupied as, or designed or intended for occupancy as a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, structure or portion thereof.

Dwelling unit means a single unit of residence for a family or one or more persons. Examples of dwelling units include: a single family home, an apartment unit within an apartment building; and in other types of dwellings in which sleeping accommodations are provided but toileting or cooking facilities are shared by occupants of one room or portion of the dwelling, rooms in which people sleep. Examples of the latter include dormitory rooms and sleeping accommodations in shelters intended for occupancy as a residence for homeless persons.

Entrance means any access point to a building or portion of a building used by residents for the purpose of entering.

Exterior means all areas of the premises outside of an individual dwelling unit.

Family includes, but is not limited to, a single individual.

Familial status means one or more individuals (who have not attained the age of 18 years) being domiciled with –

(a) A parent or another person having legal custody of such individual or individuals; or

(b) The designee of such parent or other person having such custody, with the written permission of such parent or other person.

The protections afforded against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of 18 years.

First occupancy means a building that has never before been used for any purpose.

Ground floor or ground level means a floor of a building with a building entrance on an accessible route. A building may have more than one ground floor or ground level. Where the first floor containing dwelling units in a building is above grade, all units on that floor must be served by a building entrance on an accessible route. This floor will be considered to be a ground floor or ground level. A multistory dwelling unit does not have a ground floor or ground level unless its floors are connected by an elevator.

Housing accommodation includes any building or structure or portion thereof, or any parcel of land, developed or undeveloped, that is occupied, or is intended to be occupied or to be developed for occupancy, for residential purposes.

Interior means the spaces, parts, components or elements of an individual dwelling unit.

Modification means any change to the public or common use areas of a building or any change to a dwelling unit.

New construction includes, but is not limited to, the design and construction of facilities for first occupancy or an alteration if the cost of the alteration is 75% or more of the replacement cost of the completed facility.

Person includes one or more individuals, partnerships, associations, organizations, corporations, municipal corporations, legal representatives, trustees, trustees in bankruptcy, receivers and other legal representatives, labor organizations, mutual companies, joint-stock companies and unincorporated organizations and includes the State and all agencies thereof.

Person in the business of selling or renting dwellings means any person who:

(a) Within the preceding twelve months, has participated as principal in three or more transactions involving the sale or rental of any dwelling or any interest therein;

(b) Within the preceding twelve months, has participated as agent, other than in the sale of his or her own personal residence, in providing sales or rental facilities or sales or rental services in two or more transactions involving the sale or rental of any dwelling or any interest therein; or

(c) Is the owner of any dwelling designed or intended for occupancy by, or occupied by, five or more families.

Premises means the interior or exterior spaces, parts, components or elements of a building, including individual dwelling units and the public and common use areas of a building.

Public housing means any housing that is financed in whole or in part with public funds offering 20 or more dwelling units in a building or structure or on a parcel of land.

Public use areas means interior or exterior rooms or spaces of a building that are made available to the general public. Public use may be provided at a building that is privately or publicly owned.

Rent includes to lease, to sublease, to let or otherwise to grant for a consideration the right to occupy premises not owned by the occupant.

Replacement cost of the completed facility means the current cost of construction and equipment for a newly constructed housing facility of the size and type being altered. Construction and equipment costs do not include the cost of land, demolition, site improvements, non-dwelling facilities and administrative costs for project development activities.

Residential real estate-related transactions means:

(a) The making or purchasing of loans or providing other financial assistance –

(i) For purchasing, constructing, improving, repairing or maintaining a dwelling; or

(ii) Secured by residential real estate; or

(b) The selling, brokering or appraising of residential real property.

Service animal means:

(a) Any animal that has been determined necessary to mitigate the effects of a physical or mental disability by a physician, psychologist, physician’s assistant, nurse practitioner or licensed social worker; or

(b) Any animal individually trained to do work or perform tasks for the benefit of an individual with a physical or mental disability, including, but not limited to, guiding individuals with impaired vision, alerting individuals who are deaf or hard of hearing to intruders or sounds, providing reasonable protection or rescue work, pulling a wheelchair or fetching dropped items.

Sexual orientation means a person’s actual or perceived heterosexuality, bisexuality, homosexuality, gender identity, or gender expression.

(a) The term “gender identity” means an individual’s gender-related identity, whether or not that identity is different from that traditionally associated with that individual’s assigned sex at birth, including, but not limited to, a gender identity that is transgender or androgynous.

(b) The term “gender expression” means the manner in which an individual’s gender identity is expressed, including, but not limited to, through dress, appearance, manner, speech, or lifestyle, whether or not that expression is different from that traditionally associated with that individual’s assigned sex at birth.

Site means a parcel of land bounded by a property line or a designated portion of a public right of way.

Standards of construction means the American National Standards Institute (“ANSI”) ICC A117.1-2009 standards. Departures from particular technical and scoping requirements of ANSI ICC A117.1-2009 by the use of other methods are permitted where substantially equivalent or greater access to and usability of the facility is provided.

8.04 DISCRIMINATORY HOUSING PRACTICES

A. Real estate practices prohibited

It shall be unlawful to:

(1) Refuse to sell or rent a dwelling after a bona fide offer has been made, or to refuse to negotiate for the sale or rental of a dwelling because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Discriminate in the terms, conditions or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection with sales or rentals, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(3) Engage in any conduct relating to the provision of housing which otherwise makes unavailable or denies dwellings to persons because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(4) Make, print or publish, or cause to be made, printed or published, any notice, statement or advertisement with respect to the sale or rental of a dwelling that indicates any preference, limitation or discrimination because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(5) Represent to any person because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability that a dwelling is not available for sale or rental when such dwelling is in fact available.

(6) Engage in blockbusting practices in connection with the sale or rental of dwellings because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(7) Deny access to or membership or participation in, or to discriminate against any person in his or her access to or membership or participation in, any multiple-listing service, real estate brokers’ association, or other service organization or facility relating to the business of selling or renting a dwelling or in the terms or conditions of membership or participation, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

B. Unlawful refusal to sell or rent or to negotiate for the sale or rental

(1) It shall be unlawful for a person to refuse to sell or rent a dwelling to a person who has made a bona fide offer, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, or to refuse to negotiate with a person for the sale or rental of a dwelling because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Prohibited actions under this section include, but are not limited to:

(a) Failing to accept or consider a bona fide offer because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(b) Refusing to sell or rent a dwelling to, or to negotiate for the sale or rental of a dwelling with, any person because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(c) Imposing different sale prices or rental charges for the sale or rental of a dwelling upon any person because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(d) Using different qualification criteria or applications, or sale or rental standards or procedures, such as income standards, application requirements, application fees, credit analysis or sale or rental approval procedures or other requirements, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(e) Evicting tenants because of their race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability or because of the race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability of a tenant’s guest.

C. Discrimination in terms, conditions and privileges and in services and facilities

(1) Using different provisions in leases or contracts of sale, such as those relating to rental charges, security deposits and the terms of a lease and those relating to down payment and closing requirements, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Failing or delaying maintenance or repairs of sale or rental dwellings because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(3) Failing to process an offer for the sale or rental of a dwelling or to communicate an offer accurately because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(4) Limiting the use of privileges, services or facilities associated with a dwelling because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, of an owner, tenant or a person associated with him or her.

(5) Denying or limiting services or facilities in connection with the sale or rental of a dwelling, because a person failed or refused to provide sexual favors.

D. Other prohibited sale and rental conduct

(1) It shall be unlawful, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, to restrict or attempt to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying or renting a dwelling so as to perpetuate, or tend to perpetuate, segregated housing patterns, or to discourage or obstruct choices in a community, neighborhood or development.

(2) It shall be unlawful because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, to engage in any conduct relating to the provision of housing or of services and facilities in connection therewith that otherwise makes unavailable or denies dwellings to any persons.

(3) Prohibited practices under this section generally refer to unlawful steering practices that include, but are not limited to:

(a) Discouraging any person from inspecting, purchasing, or renting a dwelling because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability of persons in a community, neighbor-hood or development.

(b) Discouraging the purchase or rental of a dwelling because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, by exaggerating drawbacks or failing to inform any person of desirable features of a dwelling or of a community, neighborhood, or development.

(c) Communicating to any prospective purchaser that he or she would not be comfortable or compatible with existing residents of a community, neighborhood or development because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(d) Assigning any person to a particular section of a community, neighborhood or development or to a particular floor of a building because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(4) It shall be unlawful, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, to engage in any conduct relating to the provision of housing or services and facilities in connection therewith that otherwise makes unavailable or denies dwellings to persons. Prohibited sales and rental practices under this section include, but are not limited to:

(a) Discharging or taking other adverse action against an employee, broker, or agent because he or she refused to participate in a discriminatory housing practice;

(b) Employing codes or other devices to segregate or reject applicants, purchasers or renters, refusing to take or to show listings of dwellings in certain areas because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, or refusing to deal with certain brokers or agents because they or one or more of their clients are of a particular race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability;

(c) Denying or delaying the processing of an application made by a purchaser or renter or refusing to approve such a person for occupancy in a cooperative or condominium dwelling because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability;

(d) Refusing to provide municipal services or property or hazard insurance for a dwelling or providing such services differently because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

E. Discriminatory advertisements, statements and notices

(1) It shall be unlawful to make, print or publish, or cause to be made, printed or published, any notice, statement or advertisement with respect to the sale or rental of a dwelling which indicates any preference, limitation or discrimination because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, or an intention to make any such preference, limitation or discrimination.

(2) The prohibitions in this section shall apply to all written or oral notices or statements by a person engaged in the sale or rental of a dwelling. Written notices and statements include any applications, flyers, brochures, deeds, signs, banners, posters, billboards or any documents used with respect to the sale or rental of a dwelling.

(3) Discriminatory notices, statements and advertisements include, but are not limited to:

(a) Using words, phrases, photographs, illustrations, symbols or forms which convey that dwellings are available or not available to a particular group of persons because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(b) Expressing to agents, brokers, employees, prospective sellers or renters or any other persons a preference for or limitation on any purchaser or renter because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability of such persons.

(c) Selecting media or locations for advertising the sale or rental of dwellings which deny particular segments of the housing market information about housing opportunities because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(d) Refusing to publish advertising for the sale or rental of dwellings or requiring different charges or terms for such advertising because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

F. Discriminatory representations on the availability of dwellings

(1) It shall be unlawful because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, to provide inaccurate or untrue information about the availability of dwellings for sale or rental.

(2) Prohibited actions under this section include, but are not limited to:

(a) Indicating through words or conduct that a dwelling which is available for inspection, sale, or rental has been sold or rented because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(b) Representing that covenants or other deed, trust or lease provisions which purport to restrict the sale or rental of dwellings because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, preclude the sale or rental of a dwelling to a person.

(c) Enforcing covenants or other deed, trust, or lease provisions which preclude the sale or rental of a dwelling to any person because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(d) Limiting information, by word or conduct, regarding suitably priced dwellings available for inspection, sale or rental, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(e) Providing false or inaccurate information regarding the availability of a dwelling for sale or rental to any person, including testers, regardless of whether such person is actually seeking housing, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

G. Blockbusting

(1) It shall be unlawful, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representation regarding the entry or prospective entry into the neighborhood of a person or persons of a particular race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or with a physical or mental disability.

(2) In establishing a discriminatory housing practice under this section it is not necessary that there was in fact profit as long as profit was a factor for engaging in the blockbusting activity.

(3) Prohibited actions under this section include, but are not limited to:

(a) Engaging, for profit, in conduct (including uninvited solicitations for listings) which conveys to a person that a neighborhood is undergoing or is about to undergo a change in the race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, of persons residing in it, in order to encourage the person to offer a dwelling for sale or rental.

(b) Encouraging, for profit, any person to sell or rent a dwelling through assertions that the entry or prospective entry of persons of a particular race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability, can or will result in undesirable consequences for the project, neighborhood or community, such as lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools or other services or facilities.

H. Discrimination in the provision of brokerage services

(1) It shall be unlawful to deny any person access to or membership or participation in any multiple listing service, real estate brokers’ organization or other service, organization, or facility relating to the business of selling or renting dwellings, or to discriminate against any person in the terms or conditions of such access, membership or participation, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Prohibited actions under this section include, but are not limited to:

(a) Setting different fees for access to or membership in a multiple listing service because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(b) Denying or limiting benefits accruing to members in a real estate brokers’ organization because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(c) Imposing different standards or criteria for membership in a real estate sales or rental organization because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(d) Establishing geographic boundaries or office location or residence requirements for access to or membership or participation in any multiple listing service, real estate brokers’ organization or other service, organization or facility relating to the business of selling or renting dwellings, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

8.05 DISCRIMINATION IN RESIDENTIAL REAL ESTATE-RELATED TRANSACTIONS

A. Discriminatory practices in residential real estate-related transactions

It shall be unlawful for any person or other entity whose business includes engaging in residential real estate-related transactions to discriminate against any person in making available such transaction, or in the terms or conditions of such a transaction, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

B. Discrimination in the making of loans and in the provision of other financial assistance

(1) It shall be unlawful for any person or entity whose business includes engaging in residential real estate-related transactions to discriminate against any person in making available loans or other financial assistance for a dwelling, or which is or is to be secured by a dwelling, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Prohibited practices under this section include, but are not limited to, failing or refusing to provide to any person, in connection with a residential real estate-related transaction, information regarding the availability of loans or other financial assistance, application requirements, procedures or standards for the review and approval of loans or financial assistance, or providing information which is inaccurate or different from that provided others, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

C. Discrimination in the purchasing of loans

(1) It shall be unlawful for any person or entity engaging in the purchasing of loans or other debts or securities which support the purchase, construction, improvement, repair or maintenance of a dwelling, or which are secured by residential real estate, to refuse to purchase such loans, debts, or securities, or to impose different terms or conditions for such purchases, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Unlawful conduct under this section includes, but is not limited to:

(a) Purchasing loans or other debts or securities which relate to, or which are secured by dwellings in certain communities or neighborhoods but not in others because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability of persons in such neighborhoods or communities.

(b) Pooling or packaging loans or other debts or securities which relate to, or which are secured by, dwellings differently because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(c) Imposing or using different terms or conditions on the marketing or sale of securities issued on the basis of loans or other debts or securities which relate to, or which are secured by, dwellings because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(3) This section does not prevent consideration, in the purchasing of loans, of factors justified by business necessity, including requirements of State or Federal law, relating to a transaction’s financial security or to protection against default or reduction of the value of the security. Thus, this provision would not preclude considerations employed in normal and prudent transactions, provided that no such factor may in any way relate to race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

D. Discrimination in the terms and conditions for making available loans or other financial assistance

(1) It shall be unlawful for any person or entity engaged in the making of loans or in the provision of other financial assistance relating to the purchase, construction, improvement, repair or maintenance of dwellings or which are secured by residential real estate to impose different terms or conditions for the availability of such loans or other financial assistance because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Unlawful conduct under this section includes, but is not limited to:

(a) Using different policies, practices or procedures in evaluating or in determining creditworthiness of any person in connection with the provision of any loan or other financial assistance for a dwelling or for any loan or other financial assistance which is secured by residential real estate because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(b) Determining the type of loan or other financial assistance to be provided with respect to a dwelling, or fixing the amount, interest rate, duration or other terms for a loan or other financial assistance for a dwelling or which is secured by residential real estate, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

E. Unlawful practices in the selling, brokering, or appraising of residential real property

(1) It shall be unlawful for any person or other entity whose business includes engaging in the selling, brokering, or appraising of residential real property to discriminate against any person in making available such services, or in the performance of such services, because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) For the purposes of this section, the term appraisal means an estimate or opinion of the value of a specified residential real property made in a business context in connection with the sale, rental, financing or refinancing of a dwelling or in connection with any activity that otherwise affects the availability of a residential real estate-related transaction, whether the appraisal is oral or written, or transmitted formally or informally. The appraisal includes all written comments and other documents submitted as support for the estimate or opinion of value.

(3) Nothing in this section prohibits a person engaged in the business of making or furnishing appraisals of residential real property from taking into consideration factors other than race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(4) Practices which are unlawful under this section include, but are not limited to, using an appraisal of residential real property in connection with the sale, rental, or financing of any dwelling where the person knows or reasonably should know that the appraisal improperly takes into consideration race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

8.06 PROHIBITION AGAINST DISCRIMINATION BECAUSE OF PHYSICAL OR MENTAL DISABILITY

A. General prohibitions against discrimination because of physical or mental disability

(1) It shall be unlawful to discriminate in the sale or rental of, or to otherwise make unavailable or deny, a dwelling to any buyer or renter because of a physical or mental disability of:

(a) That buyer or renter;

(b) A person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or

(c) Any person associated with that person.

(2) It shall be unlawful to discriminate against any person in the terms, conditions, or privileges of the sale or rental of a dwelling, or in the provision of services or facilities in connection with such dwelling, because of a physical or mental disability of:

(a) That buyer or renter;

(b) A person residing in or intending to reside in that dwelling after it is so sold, rented, or made available; or

(c) Any person associated with that person.

(3) It shall be unlawful to make an inquiry to determine whether an applicant for a dwelling, a person intending to reside in that dwelling after it is sold, rented or made available, or any person associated with that person, has a physical or mental disability or to make inquiry as to the nature or severity of a disability of such a person. However, this paragraph does not prohibit the following inquiries, provided these inquiries are made of all applicants, whether or not they have physical or mental disabilities.

(a) Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy.

(b) Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with physical or mental disabilities or to persons with a particular type of physical or mental disability.

(c) Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with physical or mental disabilities or to persons with a particular type of physical or mental disability;

(d) Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance;

(e) Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance.

(4) Nothing in this subpart requires that a dwelling be made to an individual whose tenancy would constitute a direct threat to the health or safety of other individuals or whose tenancy would result in substantial physical damage to the property of others.

B. Reasonable modifications of existing premises

(1) It shall be unlawful for any person to refuse to permit, at the expense of a person with a physical or mental disability, reasonable modifications of existing premises, occupied or to be occupied by a person with such a disability, if the proposed modifications may be necessary to afford the person with such a disability full enjoyment of the premises of a dwelling. In the case of a rental, the landlord may, where it is reasonable to do so, condition permission for a modification on the renter agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted. The landlord may not increase for persons with physical or mental disabilities any customarily required security deposit. However, where it is necessary in order to ensure with reasonable certainty that funds will be available to pay for the restorations at the end of the tenancy, the landlord may negotiate as part of such a restoration agreement a provision requiring that the tenant pay into an interest bearing escrow account, over a reasonable period, a reasonable amount of money not to exceed the cost of the restorations. The interest in any such account shall accrue to the benefit of the tenant.

(2) A landlord may condition permission for a modification on the renter providing a reasonable description of the proposed modifications as well as reasonable assurances that the work will be done in a workmanlike manner and that any required building permits will be obtained.

C. Reasonable accommodations

It shall be unlawful for any person to refuse to make reasonable accommodations in rules, policies, practices, or services, when such accommodations may be necessary to afford a person with a physical or mental disability equal opportunity to use and enjoy a dwelling unit, including public and common use areas.

D. Design and construction requirements for multifamily dwellings and public housing

(1) Application. The Act’s design and construction requirements for multifamily dwellings and public housing apply to new construction of covered multifamily dwellings and new construction and alterations of public housing if the date when the last application for a building permit or permit extension is certified to be complete by a state, county or local government or, in those jurisdictions where the government does not certify completion of applications, if the date when the last application for a building permit or permit extension received by the state, county or local government is on or after September 1, 2012 or, if no permit is required, if the start of physical construction or alterations occurs on or after September 1, 2012. For new construction and alterations prior to that, please contact the Maine Human Rights Commission to receive a copy of the applicable design and construction requirements.

(2) Accessible covered multifamily dwellings

(a) Covered multifamily dwellings shall be designed and constructed to have at least one building entrance on an accessible route unless it is impractical to do so because of the terrain or unusual characteristics of the site. The burden of establishing impracticality because of terrain or unusual circumstances is on the person or persons who designed or constructed the housing facility.

(b) All covered multifamily dwellings with a building entrance on an accessible route shall be designed and constructed in such a manner that –

(i) The public and common use areas are readily accessible to and usable by persons with physical or mental disabilities;

(ii) All the doors designed to allow passage into and within all premises are sufficiently wide to allow passage by persons with disabilities in wheelchairs; and

(iii) All premises within covered multifamily dwelling units contain the following features of adaptable design:

(I) An accessible route into and through the covered dwelling unit;

(II) Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations;

(III) Reinforcements in bathroom walls to allow later installation of grab bars around the toilet, tub, shower stall and shower seat, where such facilities are provided; and

(IV) Usable kitchens and bathrooms such that an individual in a wheelchair can maneuver about the space.

(3) Accessible public housing

(a) For new construction of public housing, in addition to any applicable requirements for covered multifamily dwellings, public housing shall be designed and constructed in such a manner that no less than 10% of the ground level units and no less than 10% of the upper story units connected by an elevator are accessible to and usable by persons with physical disabilities, and no less than 2% of the units, no fewer than one unit, have accessible communication features. Newly constructed public housing shall have at least one ground level.

(b) For alterations to public housing units, the altered units shall meet the parts of the standards of construction concerning accessible routes, accessible doors and adaptable bathrooms until at least 10% of the total ground level units and a minimum of 10% of the total upper story units connected by an elevator meet those standards. Altered public housing shall have at least one ground level.

(4) Compliance with standards. Compliance with the appropriate standards of construction suffices to satisfy the design and construction requirements of this subsection. For example, the requirements for covered multifamily dwellings in paragraphs (D)(2)(b)(ii) and (D)(2)(b)(iii) above may be met by complying with the applicable specifications in ANSI ICC A117.1-2009 §1004, Type B Units; the requirement in paragraph (D)(3)(a) that 10% of newly constructed public housing units be accessible to and usable by persons with physical disabilities may be met by complying with ICC A117.1-2009 §1002, Accessible Units, or §1003, Type A Units; the requirement in paragraph (D)(3)(a) that 2% of the units, no fewer than one unit, have accessible communication features may be met by complying with ICC A117.1-2009 §1006, Units with Accessible Communication Features; and the requirement in paragraph (D)(3)(b) that 10% of altered public housing units meet the parts of the standards of construction concerning accessible routes, accessible doors and adaptable bathrooms may be met by complying with ICC A117.1-2009 §§ 1002.2 and 1002.3 (Accessible Units, Primary Entrance and Accessible Route) or §§ 1003.2 and 1003.3 (Type A Units, Primary Entrance and Accessible Route), § 1002.5 (Accessible Units, Doors and Doorways) or §1003.5 (Type A Units, Doors and Doorways), and §1002.11 (Accessible Units, Toilet and Bathing Facilities) or §1003.11 (Type A Units, Toilet and Bathing Facilities). Compliance with the requirements for multifamily dwellings in paragraph (D)(2) may also be achieved by compliance with the federal Fair Housing Act design and construction requirements adopted by the United States Department of Housing and Urban Development, 24 Code of Federal Regulations, Section 100.205, except that the definition of “new construction” in the Act and this chapter controls.

(5) Statement; inspection. For new construction of covered multifamily dwellings and public housing:

(a) The builder of a facility to which this subsection applies shall obtain a statement from a design professional that, based on professional judgment, the plans of the facility at the time of the statement meet the standards of construction required by this subsection. Prior to commencing construction of the facility, the builder shall submit the statement to:

(i) The municipal authority that reviews plans in the municipality where the facility is to be constructed; or

(ii) If the municipality where the facility is to be constructed has no authority who reviews plans, the municipal officers of the municipality.

(b) If municipal officials of the municipality where the facility is to be constructed inspect buildings for compliance with construction standards, that inspection shall include an inspection for compliance with the standards required by this subsection. The municipal officials shall require the facility inspected to meet the construction standards of this subsection before the municipal officials permit the facility to be occupied. A municipal official may satisfy the requirements in this paragraph by inspecting a building for compliance with the plans accompanying the statement required by paragraph (D)(5)(a) above.

E. Service Animals

It shall be unlawful for any owner, lessor, sublessor, managing agent or other person having the right to sell, rent, lease or manage a housing accommodation or any of their agents to refuse to permit the use of a service animal or otherwise discriminate against an individual with a physical or mental disability who uses a service animal at the housing accommodation unless it is shown by defense that the service animal poses a direct threat to the health or safety of others or the use of the service animal would result in substantial physical damage to the property of others or would substantially interfere with the reasonable enjoyment of the housing accommodation by others. The use of a service animal may not be conditioned on the payment of a fee or security deposit, although the individual with a physical or mental disability is liable for any damage done to the premises or facilities by such a service animal.

8.07 HOUSING FOR OLDER PERSONS

A. Exemption

(1) The provisions regarding familial status in this part do not apply to housing which satisfies the requirements of §8.07 (B) (C) or (D).

(2) Nothing in this part limits the applicability of any reasonable, local, State, or Federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling.

B. State and Federal elderly housing programs

The provisions regarding familial status in this part shall not apply to housing provided under any Federal or State program that the United States Secretary of Housing and Urban Development determines is specifically designed and operated to assist elderly persons, as defined in the State or Federal program.

C. 62 or over housing

The provision regarding familial status in this part shall not apply to housing intended for, and solely occupied by, persons 62 years of age or older. Housing satisfies the requirements of this section even though:

(1) There are persons in such housing on June 6, 1989 who are under 62 years of age, provided that all new occupants are persons 62 years of age or older;

(2) There are unoccupied units, provided that such units are reserved for occupancy by 62 years of age or over;

(3) There are units occupied by employees of the housing (and family members residing in the same unit) who are under 62 years of age provided they perform substantial duties directly related to the management or maintenance of the housing.

D. 55 or over housing

(1) The provisions regarding familial status shall not apply to housing intended and operated for occupancy by at least one person 55 years of age or older, per unit, pursuant to this section.

(2) In order to qualify as housing for older persons under this section, the housing facility must show:

(a) That at least 80% of the dwellings are occupied by at least one person 55 years of age or older per unit, and

(b) That the housing facility publishes, and adheres to, policies and procedures that demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older.

(3) Housing satisfies the requirements of this section even though:

(a) On September 13, 1988, under 80 percent of the occupied units in the housing facility are occupied by at least one person 55 years of age or older per unit, provided that at least 80 percent of the units that are occupied after September 13, 1988, are occupied by at least one person 55 years of age or older.

(b) There are unoccupied units, provided that at least 80 percent of the occupied units are occupied by at least one person 55 years of age or older.

(c) There are units occupied by employees of the housing provider (and family members residing in the same unit) who are under 55 years of age, provided the employees perform substantial duties directly related to the management or maintenance of the housing.

8.08 SOURCE OF INCOME DISCRIMINATION -- reserved

8.09 INTERFERENCE, COERCION OR INTIMIDATION

A. It shall be unlawful to coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of that person having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by this part.

B. Conduct made unlawful under this section includes, but is not limited to, the following:

(1) Coercing a person, either orally, in writing, or by other means, to deny or limit the benefits provided that person in connection with the sale or rental of a dwelling or in connection with a residential real estate-related transaction because of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability.

(2) Threatening, intimidating or interfering with persons in their enjoyment of a dwelling because of the race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability of such persons, or of visitors or associates of such persons.

(3) Threatening an employee or agent with dismissal or an adverse employment action, or taking such adverse employment action, for any effort to assist a person seeking access to the sale or rental of a dwelling or seeking access to any residential real estate-related transaction, because of the race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, or physical or mental disability of that person or of any person associated with that person.

(4) Intimidating or threatening any person because that person is engaging in activities designed to make other persons aware of, or encouraging such other persons to exercise, rights granted or protected by this part.

(5) Retaliating against any person because that person has made a complaint, testified, assisted, or participated in any manner in a proceeding under Subchapter IV of the Maine Human Rights Act.

History

• STATUTORY AUTHORITY: This regulation is adopted pursuant to 5 M.R.S.A. §4566(7).
• EFFECTIVE DATE: July 17, 1999
• AMENDED: July 20, 2005 – filing 2005-296 adding 8.03.(f) under Disability
• AMENDED: March 21, 2007 – filing 2007-107, “physical or mental disability” redefined in 8.03, Definitions; added the phrase “physical or mental” before many occurrences of the words “disability” and “disabilities”
• AMENDED: September 15, 2007 – filing 2007-386
• AMENDED: April 14, 2008 - filing 2008-164, 8.03 Definitions, “Physical or Mental Disability”
• AMENDED: November 19, 2008 - filing 2008-537, 8.03 Definitions, “Service Animal,” and 8.06(F)
• AMENDED: August 7, 2013 - filing 2013-196
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-376 Maine Municipal Bond Bank

Chapter 1 Application Procedures for Loans to Government for Public Improvements and for Other Public Purposes

Code Me. R. 94-376 Ch. 1 Application Procedures for Loans to Governmental Units to Finance Public Improvements and for Other Public Purposes {#sec-94-376-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-376 Ch. 1}

SUMMARY: The rules of the Maine Municipal Bond Bank include definitions, an outline of procedures for governmental units to apply for a loan to the Maine Municipal Bond Bank under provisions of Chapter 225 of 30-A MRSA and to establish the role and standards of Bond Counsel for any participating unit.

1. DEFINITIONS

A. "Act” shall mean the Maine Municipal Bond Bank Act being Article 3-A of subchapter II of Chapter 241 of Title 30 of the Maine Revised Statute as amended to date.

B. “Administrative Expenses" shall mean the Bank's expenses of carrying out and administering its powers, duties and functions, as authorized by the Act, and shall include, without being limited to the generality of the foregoing: administrative and operating expenses, legal, accounting and consultant's services and expenses, payments to pension, retirement, health and hospitalization funds, and any other expenses required or permitted to be paid by the Bank under the provisions of the Act or the Resolution or otherwise.

C. "Bank" shall mean the Maine Municipal Bond Bank, a public body corporate and politic constituted as an instrumentality of the State of Maine exercising public and essential government functions and created by the Act, or any body, agency or instrumentality of the State which shall hereafter succeed to the powers, duties and functions of the Bank.

D. "Bond or Bonds" shall mean any Maine Municipal Bond Bank Bond or Bonds, as the case may be, authenticated and delivered under the General Resolution pursuant to a Series Resolution.

E. "Bondholders" or any similar term, shall mean any person or party who shall be the bearer of any Outstanding Bond or Bonds registered to bearer or not registered or the registered owner of any Outstanding Bond or Bonds which shall at the time be registered other than to bearer and "Holder" (when used with reference to coupons) shall mean any person who shall be the bearer of such coupons.

F. “Counsel's Opinion” shall mean an opinion signed by an attorney or firm of attorneys selected by or satisfactory to the Bank as defined in section 3.

G. “Debt Service" for any period shall mean, as of any date of calculation and with respect to any Series, an amount equal to the sum of (i) interest accruing during such period on Bonds of such Series, and (ii) that portion of Principal Installment for such Series which would accrue during such period if such Principal Installment were deemed to accrue daily in equal amounts from the next preceding Principal Installment due date for such Series (or, if there shall be no such preceding Principal Installment due date, from a date one year preceding the due date of such Principal Installment). Such interest and Principal Installments for such Series shall be calculated on the assumption that no Bonds of such Series Outstanding at the date of calculation will cease to be Outstanding except by reason of the payment of such Principal Installment on the due date thereof.

H. “Fees and Charges” shall mean all fees and charges authorized to be charged by the Bank pursuant to subsection (H) of Section 5954 of the Act and charged by the Bank to Governmental Units pursuant to the terms and provisions of Loan Agreements.

I. “Fiscal Year" shall mean any twelve (12) consecutive calendar months commencing with the first day of July and ending on the last day of the following June.

J. "Governmental Unit" shall mean any governmental unit as defined by the Act.

K. "Loan” shall mean a loan heretofore or hereafter made by the Bank to a Governmental Unit pursuant to the Act and more particularly described in the applicable Series Resolution.

L. “Loan Agreement” shall mean an agreement heretofore or hereafter entered into between the Bank and a Governmental Unit setting forth the terms and conditions of a loan.

M. "Municipal Bonds" shall mean the bonds or other evidence of debt issued by any Governmental Unit and authorized pursuant to the Act and other laws of the State and which have heretofore been or will hereafter be acquired by the Bank as evidence of indebtedness of a Loan to the Governmental Unit pursuant to the Act.

N. "Notes" shall mean any obligations referred to herein issued by the Bank other than Bonds.

0. "Paying Agent" for the Bonds of any Series shall mean a bank or trust company organized under the laws of any state of the United States of America or a national banking association, having a capital and surplus aggregating at least three million dollars ($3,000,000) acceptable to the Bond Bank and meeting the requirements of the General Resolution.

P. "Required Debt Service Reserve” shall mean, as of any date of calculation, the amount required to be on deposit in the Reserve Fund which amount shall be equal to the maximum amount of Principal Installments and interest maturing and becoming due in any succeeding calendar year on all Loan Obligations then outstanding as of such date of calculation.

Q. "Resolution" shall mean this General Bond Resolution as from time to time amended or supplemented by Supplemental Resolutions or Series Resolutions in accordance with the terms and provisions hereof.

R. "Series of Bonds" or words of similar meaning shall mean the series of Bonds authorized by a Series Resolution.

S. "Series Resolution" shall mean a resolution of the Bank authorizing the issuance of a Series of Bonds in accordance with the terms and provisions hereof adopted by the Bank in accordance with Article X of the General Resolution.

T. "State" shall mean the State of Maine.

2. APPLICATIONS OF GOVERNMENTAL UNITS

A. The governmental unit must file an application for a loan on the forms supplied by the Maine Municipal Bond Bank.

B. The governmental unit must provide the Maine Municipal Bond Bank with financial statements and supporting documents as required by the Commissioners and Executive Director of the Maine Municipal Bond Bank.

C. The governmental unit must provide the Maine Municipal Bond Bank with an approving legal opinion of a bond counsel of recognized standing in the field of municipal law whose opinions are generally accepted by purchasers of municipal bonds. (See Section 3 for qualification requirements).

D. The governmental unit must obtain and provide to the Maine Municipal Bond Bank all required approvals from the applicable State and Federal agencies.

E. In the event the governmental unit is a water or sewer district seeking financing for a start up or new system, then it must provide the Maine Municipal Bond Bank with a feasibility study.

F. In the event the governmental unit is a hospital district, it must provide the Maine Municipal Bond Bank with a full fledged feasibility study done by a nationally recognized firm of hospital and management consultants acceptable to the Maine Municipal Bond Bank.

G. The governmental unit must comply with and meet all of the requirements of Chapter 225 of Title 30-A of the Maine Revised Statutes Annotated.

H. The Commissioners of the Maine Municipal Bond Bank must review all applications and make a decision to either accept, reject, table or conditionally approve all applications based upon prudent business judgment and practice.

I. The governmental unit must be notified in writing of the decision of the Maine Municipal Bond Bank on its application within 30 days after final action of the Commissioners on said application.

J. In the event an application is rejected, the governmental unit must be given written reasons for said rejection.

K. In the event the project of the governmental unit is a school construction project approved for subsidy by the Department of Educational and Cultural Services, an Assignment must be executed assigning the subsidy check to the Maine Municipal Bond Bank or its designee.

L. The governmental unit shall be afforded a rehearing and the right to appear at the rehearing on its application if it files a request for such rehearing within 30 days of receipt of the Bank's decision.

M. Appeals from the decision of the Maine Municipal Bond Bank shall be governed by the Maine Administrative Procedures Act.

N. After the project of the governmental unit has been completed a project cost form (supplied by the Maine Municipal Bond Bank) must be submitted to the Bond Bank.

O. Any governmental unit that has an outstanding loan with the Maine Municipal Bond Bank must annually submit an audit report to the Bank as long as the loan remains outstanding.

3. BOND COUNSEL

A. The attorney or firm of attorneys whose opinion approving municipal bonds is offered to the Bank is any attorney or firm of attorneys whose opinion on such municipal bonds or bonds of a similar type and tenor is readily acceptable in the financial markets in the State of Maine, New England or the United States of America.

B. The particular attorney or firm of attorneys shall have rendered opinions on municipal bonds of the same type and tenor as the municipal bonds of the Governmental Unit (as defined in the General Bond Resolution) which the Bank is purchasing and for which the opinion of such attorney or firm of attorneys is offered.

C. At least two commercial banks in the State of Maine, with a capital and surplus of at least $3,000,000 who regularly purchase municipal bonds from governmental units have stated in writing in a letter signed by the chief investment officer that as to municipal bonds of the amounts, type and tenor referred to above each would and have accepted the opinion of the attorney or firm of attorneys whose opinion is being offered.

D. In no event shall the Bank accept the opinion of an attorney or firm of attorneys whose opinion is acceptable only on a purely local basis i.e. approval of municipal bonds where purchaser is a local bank or dealer and bonds could not be marketed in financial centers if such opinion were the only opinion offered to a subsequent purchaser.

History

• STATUTORY AUTHORITY: 30 M.R.S.A. §5166 (C) & (N)
• EFFECTIVE DATE: June 17, 1981
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 13, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 94-376 Chapter 1 page 2

Chapter 64 Maine School Facilities Program and School Revolving Renovation Fund (a joint rule with the Department of Education, 05-071)

Code Me. R. 94-376 Ch. 64 Maine School Facilities Program and School Revolving Renovation Fund {#sec-94-376-ch.-64 omnilex-key=us-me-regs-official--dept-independent-agencies--94-376 Ch. 64}

Summary: These rules govern the application and approval process for projects to be considered through the School Revolving Renovation Fund; Facility Maintenance and Capital Improvement Plans; Maine School Facilities Finance Program and lease and lease/purchase of temporary and interim space and permanent small instructional space.

1. DEFINITIONS

A. “ADA” means federal Americans with Disabilities Act.

B. “Administrative space” means property used for housing of superintendents, principals and school administrative unit-wide eligible administrative personnel.

C. “Avoided Costs” means savings achieved from reduced energy use as a result of a renovation project.

D. “Bank” means the Maine Municipal Bond Bank.

E. “BGS” means the Bureau of General Services of the Department of Administrative and Financial Services.

F. “Capital improvement plan” means a plan to replace and repair building systems on a building by building basis for each school administrative unit.

G. “Commissioner” means the Commissioner of the Maine Department of Education.

H. “Department” means the Maine Department of Education.

I. “Educational Program” means the school administrative unit's (SAU's) programs and services adopted by the local school board that are aligned with or support the system of Learning Results.

J. “Educational Specifications” means how a school administrative unit describes its educational goals and activities, and the interrelationships between those educational goals and activities and their associated facilities.

K. “Energy and Water Conservation Project” means a school renovation project that is designed to save energy either from reduced heating fuel, reduced electrical consumption, or other conservation measures.

L. “Equivalent cost basis” means an amount not to exceed the total annual cost currently approved for state subsidy on existing leases.

M. “Fund” means the School Revolving Renovation Fund.

N. “Hazardous material” means any chemical which is a physical hazard or a health hazard as defined by the U.S. Department of Labor Occupational Safety and Health Administration (OSHA).

O. “Instructional space” means property used for regular classrooms, small group instruction, libraries, clinics, guidance, and other instructional activities as approved by the Department. Instructional space does not include athletic or play fields.

P. “Interim instructional space” means interim instructional space under 20-A M.R.S.A. §15672(2-A)(B)(2). Interim instructional space is fixed space that a school administrative unit rents for a defined period of time and then vacates at the end of the lease.

Q. “Lease” means an agreement under which a school administrative unit rents property for a defined period of time without acquiring any permanent ownership interest in the property.

R. “Lease space” means property that a school administrative unit is entitled to use for a defined period of time in accordance with the terms of a lease.

S. “Lease-purchase agreement” means an agreement under which a school administrative unit leases space for a defined period of time at the end of which the school administrative unit has an option to purchase the property for one dollar.

T. “Lease-purchase space” means space which a school administrative unit occupies and acquires over a defined period of time in accordance with the terms of a lease-purchase agreement.

U. “Maintenance plan” means a plan to address scheduled and unscheduled repairs, upkeep, and preventative maintenance necessary to achieve the designed life expectancy of building systems and components.

V. “Permanent small instructional space” means permanent small nonadministrative space under 20-A M.R.S.A. §15672(2-A)(B)(3) that is constructed to replace temporary or interim leased space which is subsidizable on an equivalent cost basis. Construction may consist of new buildings or permanent additions to existing buildings that are secured to a permanent foundation.

W. “Renovation project” means a school construction project that falls into one of the following categories:

1. Priority One: Health, safety and compliance repairs;

2. Priority Two: Repairs and improvements not related to health, safety and compliance repairs, that are limited to a school building structure, windows and doors of a school building and to a school building's water or septic system;

3. Priority Three: Repairs and improvements related to energy and water conservation;

4. Priority Four: Upgrades of learning spaces in school buildings; and

5. Priority Five: Other repairs/projects approved by the Commissioner.

X. “Temporary instructional space” means temporary instructional space under 20-A M.R.S.A. §15672(2-A)(B)(2). Temporary instructional space consists of one or more mobile or modular buildings (portables) constructed on or off site and which can be disassembled and moved economically to a new location.

2. MAINTENANCE AND CAPITAL IMPROVEMENT PLANS

A. Each school administrative unit will develop and maintain a facility maintenance plan and a capital improvement plan that includes a plan for each building in the school administrative unit.

B. Each facility maintenance plan must include, at a minimum, a maintenance and replacement schedule for all major building systems to include but not limited to the following:

1. heating, ventilation/air conditioning (HVAC);

2. plumbing and electrical systems;

3. roof systems;

4. building exterior;

5. windows and doors;

6. interior (painting, flooring, etc.); and

7. site maintenance.

C. Each ten year capital improvement plan at a minimum must include:

1. educational mission, vision and goals;

2. educational program, facility, and space usage assessment;

3. enrollment projections and new program needs;

4. match of infrastructure to programs;

5. educational specifications;

6. capital project description, schedule, and budgets; and

7. energy and water conservation analysis.

3. LEASE AND LEASE-PURCHASE SPACE

A. Temporary and interim instructional space

1. A school administrative unit may lease or lease-purchase temporary or interim instructional space with State support for a period not to exceed five (5) years.

2. All requests for State support for leases for temporary or interim instructional space must include a justification in the context of a long-range facilities plan.

3. The school administrative unit may appeal to the Commissioner if the five-year period restriction presents an undue burden to the unit. The decision of the Commissioner is final.

4. A lease for temporary or interim instructional space may be converted to a lease-purchase when it is consistent with the school administrative unit’s long-range facilities plan.

NOTE: Pursuant to PL 2017 Chapter 284, Sec.VVVV-9 “A school administrative unit engaged in a state-approved lease-purchase agreement for regional programs and services space that serves students from 2 or more school administrative units is eligible for state support for a maximum of 5 years.”

B. Permanent small instructional space

1. A school administrative unit may convert a lease of temporary or interim instructional space to a lease-purchase of permanent small instructional space that consists of new buildings, or additions to existing buildings, that are secured to a permanent foundation. These lease-purchases must be entered into to replace existing leases of current temporary or interim instructional space and are eligible for state support at an amount not to exceed the annual cost currently approved for existing leases and for a period not to exceed ten years from the beginning date of the financing agreement.

C. Application

1. Each unit requesting State support for a lease of temporary or interim space and permanent small space shall apply annually for such support on forms supplied by the Department. Applications must be submitted no later than September 15 in the fiscal year prior to the fiscal year of State support.

D. Subsidizable Rate

1. The Commissioner shall determine the maximum dollar amount per square foot eligible for subsidy for leased and lease purchased space on July 1 of the year prior to the granting of State support.

4. SCHOOL REVOLVING RENOVATION FUND

A. Purpose

The School Revolving Renovation Fund is established to make loans for school renovation projects that contribute to safe, healthy, efficient, and adequate school facilities in which an SAU can deliver its educational program.

B. Eligible Renovation Projects

All projects must receive Department of Education and BGS approval prior to construction in order to be eligible for funding consideration. Projects in the following categories shall be eligible for consideration for loans from the School Revolving Renovation Fund, provided that the application for funding a renovation project is submitted to the Department and is approved by the Department prior to the commencement of work on the renovation project.

1. Priority One

a) Repair or replacement of a roof on a school building;

b) Bringing a school building into compliance with the Federal Americans with Disabilities Act, 42 United States Code, Section 12101 et seq.;

c) Improving air quality in a school building;

d) Removing or abating hazardous materials in a school building; and

e) Other health, safety and compliance repairs.

2. Priority Two

a) School building structures;

b) Windows and doors; and

c) Water and septic systems including waste disposal systems.

3. Priority Three

a) Building insulation;

b) Variable speed electric motors;

c) Efficient lighting systems and controls;

d) Alternative energy installations; and

e) Other energy and water conservation projects.

4. Priority Four

a) Upgrades of learning spaces in school buildings.

5. Priority Five: Other projects approved by the Commissioner.

C. Priority of Funding

Approved projects must be funded based on the availability of funds and in priority order from Priority One to Priority Five. The Commissioner of Education may approve funding for renovation projects as an exception to the Priority One to Priority Five funding rule if category-specific funds become available from sources other than principal and interest received from the repayment of loans made from the fund, interest earned from the investment of fund balances and funds from school construction audit recoveries.

D. Application

1. A Department approved application form will be accepted on a schedule set by the Department.

2. A separate application must be submitted for each individual project

3. All applications submitted to the Department must provide supporting materials appropriate to the project. These materials may include but are not limited to the following:

a) Educational program and maintenance and capital improvement plans;

b) Engineering studies, including Renovation vs. New Construction analyses, to be conducted by licensed engineers, architects or firms licensed to provide such services;

c) Life-cycle studies for renovation, energy and water conservation projects;

d) A payback schedule for avoided costs in energy and water conservation projects; and

e) Any other materials requested by the Department.

E. Application Review

1. Applications will be reviewed by the Department and assigned priority status in accordance with the rating system contained in these rules. Funds will be distributed based on funding availability and a school administrative unit’s readiness to proceed.

2. Rating System. Emergency projects will be funded before non-emergency projects.

3. Emergency. An emergency situation posing imminent danger to the health and safety of students and staff. Projects necessitated by an emergency will be dealt with on a case by case basis as determined by the Department in cooperation with the BGS.

4. The following criteria will be applied to rating of Priority One and Priority Two projects:

(i) Percentage of student population impacted;

(ii) Extent or severity of the problem;

(iii) Location within the facility;

(iv) Code violations; and

(v) Structural condition of the facility.

5. The following criteria will be applied to rating of Priority Three projects:

(i) Number of years of avoided costs necessary to pay for project;

(ii) Percentage of energy saved annually based on gallons of oil, cubic feet of natural gas, kWh of electricity, etc.;

(iii) Percentage of annual dollar savings for energy costs in the affected facility;

(iv) Life of the facility following the proposed project; and

(v) Other benefits gained.

6. Priority Four projects will be rated based on State of Maine Board of Education Rules Chapter 61, “Rules for Major Capital School Construction Projects”.

7. Bureau of General Services review. All projects, as required by 5 M.R.S.A. §1742(7), will be reviewed by BGS and only those projects approved by BGS under rules developed by the Bureau pursuant to Chapter 787 will be eligible for submission by the Department to the Bank.

8. Any project with an estimated value of $100,000 or more shall be awarded by competitive bid unless the bidding provision is waived by the Department.

F. Forgiveness Rates

1. The Bank will forgive a portion of the principal payments of a loan for an eligible school administrative unit determined by the Department based on the school administrative unit’s State share percentage as determined in 20-A M.R.S.A. §15672, subsection 31, for the most recent year of enacted General Purpose Aid. Notwithstanding these guidelines, the loan forgiveness shall be no more than 70% and not less than 30%.

2. The Department will provide the Bank with the eligible administrative unit’s State share percentage.

3. Funds allocated to an eligible school administrative unit will not be included in that unit’s debt service allocation under 20-A M.R.S.A. §15683-A.

G. Notification to the Bank. The Department will develop a list of priority projects approved for funding based on the Department's application review and BGS's approval and submit it to the Bank for funding. This list will be updated annually. Each eligible school administrative unit and the Bank shall receive an eligibility certificate which shall include the following:

1. name of school administrative unit that is eligible;

2. amount of the loan;

3. amount and percentage to be forgiven;

4. length of the loan; and

5. time limit for completion of the project.

H. Maximum Loan. The maximum total loans for repairs, renovations, and improvement projects (for Priority One, Two, Three, Four, and Five projects as described in Section 4(B)(5) of this rule) for a school building from the fund will be $4 million.

School administrative units may raise additional local funds to support the project. Local funds will not be subject to the forgiveness provisions and are not eligible for State participation.

The maximum loan amount from the fund to address each priority in a school building will be $1 million within any 5-year period.

I. All construction projects supported through the Revolving Renovation Loan Fund for construction of new facilities, additions to existing buildings, renovations or remodeling of existing buildings shall be designed and constructed with materials that provide long-term durability and meet energy efficiency standards as defined in 5 M.R.S.A. §§ 1762-1769. Prior approval of the Department is required before changes including changes which reduce the durability of materials may be made. Approval or disapproval by the Department shall be in response to recommendations from BGS.

J. Length of Loan. Loans from the fund are subject to the following time limits for repayment:

1. Loans of $500,000 or less = 5 years or less than 5 years if accelerated by mutual agreement of the parties; and

2. Loans of $500,001 or more = 10 years or less than 10 years if accelerated by mutual agreement of the parties.

K. Disbursement of loan proceeds. For projects approved by the Department and BGS for funding, the Bank shall make payment from that unit's Revolving Renovation Fund loan upon presentation of a requisition form with supporting invoices approved by the school administrative unit. With the final requisition form, certifications from the school administrative unit, designer and contractor confirming project completion are required.

5. MAINE SCHOOL FACILITIES FINANCE PROGRAM

A. The Bank shall be responsible for the following:

1. The loan application to eligible school administrative units;

2. The loan agreement with eligible school administrative units;

3. The management of all loans from the Revolving Renovation Fund;

4. That the applicant certifies to the Bank that it has secured all permits, licenses and approvals necessary to undertake the renovations and construct the improvements to be financed by the loan; and

5. That the applicant demonstrates to the satisfaction of the Bank that it has the ability to repay the loan made to the school administrative unit by the Bank.

6. MAINE SCHOOL FACILITIES FINANCE PROGRAM LEASE-PURCHASE PROVISIONS

A. The Bank shall be responsible for the following:

1. The lease-purchase assistance program is for the lease-purchase of buildings only;

2. Only school administrative units approved for subsidy by the Department must participate in the lease-purchase assistance program;

3. Under the lease-purchase assistance program, the Bank shall establish a competitive bidding process for the financing of a lease-purchase agreement which takes into account the cost and reasonable terms and conditions of lease-purchase;

4. After the Department notifies the Bank that a school administrative unit is approved and eligible to acquire a school facility via a lease-purchase agreement, the Bank shall solicit quotations from two or more private institutions; and

5. After quotations for financing a lease-purchase agreement have been received by the Bank, the two lowest cost quotations shall be provided to the school administrative unit which shall retain the right to select the financing institution of its choice subject to the requirement of State law and local ordinance.

History

• STATUTORY AUTHORITY: Title 20-A, Sections 1, 4001, 5804, 5805, 15603, 15907, 15918, and Title 30-A Sections 5953-E, 6006-E, 6006-F, 6014; Resolve 2007 ch. 174 effective March 31, 2008; Public Law 506 (126th Legislature 2nd Regular Session) effective August 1, 2014.
• EFFECTIVE DATE (PROVISIONAL ADOPTION): December 28, 1998 - EMERGENCY - major substantive rule, legislative review pending. Signed by the Commissioner of Education.
• FINAL ADOPTION: filed May 30, 2000 - as 2000-235, signed by the Commissioner of Education. Legislative Resolve 1999 c.14 was effective April 16, 1999. Private and Special Laws 1999 c.79 asserted the effective date of this rule filing is retroactive to April 16, 1999. Signed by the Commissioner of Education.
• AMENDED: March 18, 2003 - filed as routine technical on March 13, 2003, filings 2003-68 and 2003-69, signed by the Commissioner of Education and the Director of the Maine Municipal Bond Bank respectively.
• NON-SUBSTANTIVE CORRECTIONS: April 28, 2003 - capitalization and punctuation only, signed and filed by Department of Education affecting its version only.
• AMENDED: May 9, 2008 - major substantive final adoptions, filings 2008-165 and 2008-166, signed by the Commissioner of Education and the Director of the Maine Municipal Bond Bank respectively.
• AMENDED: May 9, 2012 - major substantive final adoptions, filings 2012-102 and 2012-103, signed by the Commissioner of Education and the Director of the Maine Municipal Bond Bank respectively.
• AMENDED: November 24, 2014 - routine technical adoptions, filings 2014-270 and 2014-271, signed by the Commissioner of Education and the Director of the Maine Municipal Bond Bank respectively.
• NOTE ADDED: September 15, 2017 - note added to Section 3(A) by the authority of Assistant Attorney General Sarah Forster.
• NOTE ADDED: 05-071 and 94-376 Chapter 64 page 10

Chapter 101 Allocation of State Ceiling on Tax-Exempt Private Activity Bonds under Maine Municipal Bond Bank

Code Me. R. 94-376 Ch. 101 Allocation of State Ceiling on Tax-Exempt Private Activity Bonds Under Jurisdiction of Maine Municipal Bond Bank {#sec-94-376-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--94-376 Ch. 101}

Summary: This rule establishes policies and procedures with respect to allocations of the State ceiling on tax-exempt private activity bonds under the jurisdiction of the Maine Municipal Bond Bank pursuant to 10 M.R.S.A. §363(7).

1. Definitions

A. "Bank" means the Maine Municipal Bond Bank, organized pursuant to 30-A M.R.S.A.

B. "Code" means the Internal Revenue Code of 1986, as amended.

C. "State ceiling" means the limit established by the Code on the dollar amount of tax-exempt private activity bonds which may be issued in the State of Maine during each calendar year by the State of Maine, its agencies, any of its political subdivisions, and other persons, excluding, for purposes of this rule, that portion of the limit not allocated to the Bank pursuant to applicable law or Executive Order.

D. "Tax-exempt private activity bonds" means obligations described as tax-exempt private activity bonds by the Code.

E. "Issuer" means any entity which issues or intends to issue tax-exempt private activity bonds for which an allocation of State ceiling is required in order to render interest payable on such bonds exempt from Federal income taxation pursuant to Section 103 of the Code.

F. "Qualified redevelopment bonds" means obligations described as qualified redevelopment bonds by the Code.

G. "Form 8038" means the United States Internal Revenue Service Form 8038, or any successor or substitute form required by the Code to be submitted to the United States Internal Revenue Service by issuers of tax-exempt private activity bonds.

H. "Carryforward" shall have the same meaning as in S 146(f) of the Code.

2. Applications For and Awards of State Ceiling

A. Forms. An issuer must file an application for a State ceiling allocation on forms supplied by the Bank.

B. Fees. On submission of an application for a State ceiling allocation, an issuer shall pay a fee to the Bank, as follows:

A

Dollar amount of Bonds Fee

Less than $100,000 $ 500

Greater than $100,000 $1,000

C. Restrictions

1. No issuer will be awarded a State ceiling allocation by the Bank in excess of $1,000,000 for an issue of qualified redevelopment bonds.

2. No issuer will be awarded a State ceiling allocation by the Bank in excess of $1,000,000 for any issue of any other type of tax-exempt private activity bonds.

D. Award of State Ceiling Allocations. The Bank will award State ceiling allocations to issuers in the order that the Bank receives applications for such allocations in a form that complies entirely with the requirements of this rule. If an application which complies with this rule is received by the Bank from an issuer, and if an award of the State ceiling allocation requested by such an application would exhaust the State ceiling, the Bank will award to the issuer the amount of State ceiling available on the date that such application is received. If multiple applications which comply with this rule are received by the Bank from issuers on the same date, and, if awards of requested State ceiling allocations to all such issuers would exhaust the State ceiling, the Bank will award the State ceiling available among such issuers on a prorated basis according to the relative sizes of the State ceiling allocation awards requested by such issuers.

E. Post-Award Requirements

1. Within 60 days after receiving an award of a State ceiling allocation from the Bank, an issuer must provide the Bank with:

a. a written commitment to purchase such an issue, if the issue is to be privately offered, signed by the prospective purchaser of the issue; or

b. a written commitment to offer the issue for public competitive bid, signed by the issuer.

2. Within 90 days after receiving an award of a State ceiling allocation from the Bank, or not later than the date of the next issue of bonds by the Bank, the issuer must issue the bonds which are the subject of its State ceiling award.

3. Within 5 business days after the date of closing of any issue of bonds for which an issuer has been awarded a State ceiling allocation pursuant to these rules, the issuer shall cause the Bank to receive the following:

(a) A completed Form 8038 for the issue, signed on behalf of issuer;

(b) Certification to the Bank of bond counsel to the issuer of the date on which the bonds were closed, issued and delivered, and bond proceeds were paid over by the bond purchasers; and

(c) Certification to the Bank of bond counsel to the issuer that the bonds are exempt from Federal income tax pursuant to Section 103 of the Code, conditioned upon receipt of a sufficient State ceiling allocation award.

4. If an issuer fails to comply with any of the requirements of Sections E(1), E(2), or E(3) above for an issue, the issuer's State ceiling allocation for such issue will automatically be rescinded, and become available for award by the Bank to other qualified applicants.

F. Carryforward of Unused State Ceiling. Notwithstanding any other provision of this rule, all awards of State ceiling allocation for which bonds have not been issued by December 24 of each calendar year shall automatically be rescinded, and such unused State ceiling will become available for carryforward by the Bank or by other State agencies authorized to award State ceiling.

G. Delegation to Executive Director of Bank. The Executive Director of the Bank shall process all applications by issuers for State ceiling allocations and shall recommend to the Bank whether such applications should be approved or rejected. The Bank hereby delegates to the Executive Director of the Bank the authority to take any action in the name of, and on behalf of, the Bank which is necessary or convenient for processing or recommending approval or rejection of applications by issuers for State ceiling allocations, and for making effective and efficient use of State ceiling in accordance with this rule, applicable law, and Executive Order.

H. Appeals. Final action by the Bank on any application for a State ceiling allocation is final agency action pursuant to 5 M.R.S.A. § 11001(l)(Supp. 1986) and is appealable pursuant to the Maine Administrative Procedure Act, 5 M.R.S.A. §§ 8001 11116 (1979 & Supp. 1986). Notwithstanding the pendency of any such appeal, however, the Bank may, in its sole and uncontrolled discretion, unless and until stayed by a valid order of a Court of competent jurisdiction, continue to award State ceiling allocations to other qualified applicants pursuant to this rule.

I. Waiver of Requirements. The Bank may waive any requirement or extend any time limit imposed by this rule, except to the extent that such requirement or time limit is mandated by applicable law or Executive Order, if the Bank is convinced that such a waiver is justified because a deviation from the rule is insubstantial or is justified by the most efficient and effective use of State ceiling in compliance with State and Federal law and Executive Order.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. § 5959.
• EFFECTIVE DATE: August 23, 1986 - original rule
• AMENDED: April 6, 1987 - revision to original rule, incorporating changes required by the enactment of the Internal Revenue Code of 1986, as amended
• ELECTRONIC CONVERSION: April 13, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 13, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 94-376 Chapter 101 page 2

Chapter 595 State Revolving Fund (a joint rule with the Department of Environmental Protection, 06-096 Chapter 595)

Code Me. R. 94-376 Ch. 595 State Revolving Fund {#sec-94-376-ch.-595 omnilex-key=us-me-regs-official--dept-independent-agencies--94-376 Ch. 595}

SUMMARY: The State Revolving Fund (SRF) provides funding for the planning, design, and/or construction of municipal wastewater treatment works and other water pollution control facilities or practices. The State Revolving Fund Rule, 06-096 CMR Chapter 595, contains eligibility requirements for applicants seeking loans from the SRF for treatment works, non-point source and other “eligible projects” under the Federal Water Pollution Control Act .

A. Introduction Provisions

1. Definitions. The following words and terms used in this Chapter have the following meanings:

Act. "Act" means the Federal Water Pollution Control Act (FWPCA), as amended, found at 33 U.S.C. §§ 1251 et seq .

Applicable Interest Rate. "Applicable Interest Rate" means that rate of interest which in the judgment of the Bank reflects the rate it could obtain on a bond sale of equivalent credit rating and term in their current market conditions. The bank shall take the Applicable Interest Rate into consideration when setting the interest rate on individual SRF loans.

Authorized Representative. The "Authorized Representative" means the signatory agent of the Eligible Applicant authorized and directed by the applicant's governing body to make application for assistance and to sign documents required to undertake and complete the Project on behalf of the applicant.

Bank. "Bank" means the Maine Municipal Bond Bank.

Best Practicable Waste Treatment Technologies (BPWTT). The "BPWTT" means the cost-effective technology that can treat wastewater, combined sewer overflows and non‑excessive Infiltration and Inflow in wastewater treatment works to meet the applicable provisions of federal and state effluent limitations, groundwater protection, or other applicable standards.

Binding Commitment. A "Binding Commitment" means a legal obligation of the Bank to an Eligible Applicant that, subject to the availability of funds in the SRF, defines the terms and timing for provisions of assistance from the SRF, predicated on the recipient meeting the normal terms of obtaining a loan.

Building. "Building" means the erection, acquisition, alteration, remodeling, improvement or extension of treatment works or other water quality improvement or protection Projects.

Capitalization Grant. "Capitalization Grant" means the Federal grant assistance awarded to the State of Maine for deposit in the State Revolving Fund.

Change Order. "Change Order" means documents issued by the loan recipient, upon recommendation of the Project Engineer and, with the approval of the Department, authorizing a change, alteration, or variance in previously approved engineering plans and specifications, including, but not limited to, additions or deletions of work to be performed pursuant to the contract and/or a change in costs for work performed pursuant to the contract.

Closing. "Closing" means the date on which an Eligible Applicant borrows funds or otherwise is granted Financial Assistance from the SRF.

Collector Sewer. "Collector Sewer" means the common sewers within a publicly owned treatment system that are primarily installed to receive wastewater directly from individual systems or from private property.

Competitive Bidding. “Competitive Bidding” means a procurement method where bids from competing contractors, suppliers, or vendors are invited by openly advertising the scope, specifications, and terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated, and the contract is then awarded to the lowest cost bid from a responsive and responsible bidder.

Construction Fund. "Construction Fund" means an account established by the Bank within the SRF into which is deposited the portion of loan proceeds available to an Eligible Applicant for eligible costs of construction of a Project.

Construction Management At-Risk (CMAR). “Construction Management At-Risk”or “CMAR” means a construction delivery method where the Eligible Applicant or their advisor, prepares a scope of work which may contain preliminary design documents, then solicits a Construction Management firm, through a Qualifications Based Selection process, to provide construction related design input to the design engineer and manage the construction activity and subcontracts. Prior to final design, the construction management firm and the Eligible Applicant negotiate a guaranteed maximum price(s) or firm fixed price for the work.

Cost-effectiveness Analysis. "Cost-effectiveness Analysis" means an analysis performed to determine which waste treatment management system or component part necessary to meet federal, state, and local requirements will result in the minimum total costs over time.

Department. "Department" means the Department of Environmental Protection.

Design Bid-Build (DBB). “Design-Bid-Build” or “DBB” means a construction delivery method where the Eligible Applicant contracts with a design engineer to prepare 100% design documents for Competitive Bidding and contracts with a construction contractor to construct the Project.

Effluent Limitation. "Effluent Limitation" means any restriction established by the state or the EPA administrator on quantities, rates, and concentrations of chemical, physical, biological, and other constituents which are discharged from a Point Source into waters of the state.

Eligible Applicant. "Eligible Applicant'' means any interstate agency, city, town, county, district, plantation, village corporation, or other public body created by or pursuant to state law which has authority to dispose of sewage, industrial wastes, or other waste, or is involved in water quality improvement or protection, or an authorized Indian tribal organization. “Eligible Applicant” includes a privately-owned water quality improvement or protection Project that is eligible under Title VI of the Act.

EPA. "EPA" means the U. S. Environmental Protection Agency.

Facilities Plan. "Facilities Plan" means plans and studies that directly relate to the treatment works needed to comply with all applicable state and federal permits, statutes and rules. It consists of a systematic evaluation of alternatives that are feasible in light of the unique demographic, topographic, hydrologic and institutional characteristics of the area and will demonstrate that the selected alternative is cost-effective.

Financial Assistance. "Financial Assistance" includes but is not limited to, loans by the Bank from the SRF, loans made by the Bank from revenue bond proceeds or any other purpose authorized pursuant to 30-A M.R.S. §6006-A in association with a Project.

Fixed-Price Design-Build (FPDB). “Fixed-Price Design-Build” or “FPDB” means a construction delivery method where the Eligible Applicant or their advisor, prepares a scope of work which may contain preliminary design documents, then solicits proposals from a Design-Builder or a Design-Build team to complete the design and construct the Project. The Design-Builder(s) is selected based on qualifications and cost to produce the most value for the Eligible Applicant. The design and construction cost is set at the time of contract award.

Force Account. "Force Account" means the use of a municipality's own work force to design, build or inspect portions of a Project.

Infiltration. "Infiltration" means water other than wastewater that enters a sewerage system (including sewer service connections) from the ground through such means as defective pipe, pipe joints, connections, or manholes.

Inflow. "Inflow" means water other than wastewater that enters a sewerage system (including sewer service connections) from sources such as, but not limited to, roof leaders, cellar drains, yard drains, area drains, drains from springs and swampy areas, manhole covers, cross connections between storm sewers and sanitary sewers, catch basins, cooling towers, storm waters, surface runoff, street wash waters, or drainage. Inflow does not include, and is distinguished from Infiltration.

Initiation of Operation. "Initiation of Operation" means the date the treatment works or other eligible Project is fully operational or capable of being operated as determined by the Department. “Initiation of Operation” may also be referred to as “Substantial Completion”.

Intended Use Plan. "Intended Use Plan" means a plan identifying the intended uses of the amount of funds available for loans in the SRF for each federal fiscal year as described in 40 CFR §3150. The Project Priority List is part of the Intended Use Plan.

Interceptor Sewer. An "Interceptor Sewer" means a sewer that is designed for one or more of the following purposes:

(1) to intercept wastewater from a final point in a Collector Sewer and convey such wastes directly to a treatment facility or another interceptor;

(2) to replace an existing wastewater treatment facility and transport the wastes to an adjoining Collector Sewer or Interceptor Sewer for conveyance to a treatment plant;

(3) to transport wastewater from one or more municipal Collector Sewers to another municipality or to a Regional Facility for treatment; and

(4) to intercept an existing major discharge of raw or inadequately treated wastewater for transport directly to another interceptor or to a treatment facility.

MBE/WBE Requirements. “MBE/WBE Requirements” means federal requirements for the participation of minority and women owned business enterprises (MBE/WBE). “MBE/WBE” may also be referred to as “DBE” or Disadvantaged Business Enterprise.

Non-Point Source. “Non-Point Source” means any diffuse, nonconfined source of pollution other than Point Source (see definition below).

Plans and Specifications (Contract Documents). "Plans and Specifications" or “Contract Documents” means the engineering description of the Project including engineering drawings, maps, technical specifications, design reports and construction contract documents in sufficient detail to allow contractors to bid on the work. “Plans and Specifications” may also be referred to as “Contract Documents”.

Point Source. A "Point Source" means any discernible, confined and discrete conveyance, including but not limited to any pipe, ditch, channel, tunnel, conduit, well, discrete fissure, container, rolling stock, concentrated animal feeding operation, or vessel or other floating craft, from which pollutants are or may be discharged. This term does not include agricultural stormwater discharges and return flows from irrigated agriculture.

Progressive Design-Build (PDB). “Progressive Design-Build” or “PDB” means a construction delivery method where the Eligible Applicant or their advisor, prepares a scope of work which may contain preliminary design documents, then uses a Qualifications Based Selection process to select a design-builder or design-build team to complete the design and possibly the construction. Before final design, the design-builder or design-build team and the Eligible Applicant negotiate a guaranteed maximum price or firm fixed price for the work. If negotiations are successful, the design-builder or team completes the design and constructs the Project; if not, the Eligible Applicant retains the completed design work and has the option to continue negotiations with another design-builder or take the partially completed design and proceed with a Design-Bid-Build procurement.

Project. The "Project" means the scope of work for which a loan or other Financial Assistance is sought by an Eligible Applicant from the SRF.

Project Account. A "Project Account" means an account designated by an Eligible Applicant for the disbursement of the portion of loan proceeds available for eligible costs of construction of a Project from the Construction Fund within the SRF.

Project Engineer. The "Project Engineer" means the licensed engineer or engineering firm retained by the Eligible Applicant to provide professional engineering services during the planning, design, and construction of a Project.

Project Priority List. A "Project Priority List" means a list of Projects established by the Department pursuant to 30-A M.R.S. §6006-A(3) for which SRF assistance may be requested. The Project Priority List is part of the Intended Use Plan.

Qualifications Based Selection (QBS). “Qualifications Based Selection” or “QBS” is a public procurement process where an Eligible Applicant uses the Request for Qualifications (RFQ) process to pre-qualify firms for further discussions (which should absence of extenuating circumstances include a minimum of three firms), then negotiates the cost for services with the most highly qualified firm, and if those negotiations are unsuccessful, the Eligible Applicant goes to the next highest qualified firm and negotiates the cost for services with that next firm, and so on.

Regional Facility. A "Regional Facility" means a wastewater collection and treatment facility, which incorporates multiple service areas into an area wide service facility, thereby reducing the number of required facilities, or any system which serves an area that is other than a single county, city, special district, or other political subdivision of the state, the specified size of which is determined by any one or combination of population, number of governmental entities served, and service capacity. Regional wastewater treatment facilities may also include those identified in the approved state water quality management plan and the annual updates to that plan.

Request for Proposal (RFP). “Request for Proposal” or “RFP” means a public procurement process evaluating both cost and non-cost criteria to rank responding firms with the intent of selecting the firm that will provide the most value to an Eligible Applicant’s Project, and where the criteria are assessed a relative weight (percentage/points) and the firm with the most points is selected.

Request for Qualifications (RFQ). “Request for Qualifications” or “RFQ” means a public solicitation process evaluating non-cost criteria to rank responding firms with the intent to pre-qualify firms for further consideration. Cost is not a criterion for evaluation in this process.

State Allotment. The "State Allotment" means the sum allocated or re-allocated to the State of Maine for a federal fiscal year, from funds appropriated by Congress pursuant to the Act.

SRF. The "SRF" means the Revolving loan fund in Title 30-A M.R.S. §6006-A.

Substantial Completion. “Substantial Completion” means the time at which the construction work (or a specified part thereof) has progressed to the point where, in the opinion of the Project Engineer, the work is sufficiently complete, in accordance with the Contract Documents, so that the work can be utilized for the purposes for which it is intended. “Substantial Completion” may also be referred to as “Initiation of Operation”.

Treatment Works. "Treatment Works'' means any devices and systems that are used in the storage, treatment, recycling, and reclamation of municipal sewage or industrial wastes of a liquid nature to implement section 201 of the Act, 33. U.S.C. §1281, or necessary to recycle or reuse water at the most economical cost over the estimated life of the works, including intercepting sewers, outfall sewers, sewage collection systems, pumping, power, and other equipment, and their appurtenances; extensions, improvements, remodeling, additions, and alterations thereof; elements essential to provide a reliable recycled supply such as standby treatment units and clear well facilities; and acquisition of the land that will be an integrated part of the treatment process (including land use for the storage of treated wastewater in land treatment systems prior to land application) or will be used for ultimate disposal of residues resulting from such treatment and acquisition of other land, and interests in land, that are necessary for construction. See 33 U.S.C. §1292(2-A) (eff. Oct. 1, 2014).

Value Engineering. "Value Engineering" means a specialized cost control technique that uses a systematic and creative approach to identify and to focus on unnecessarily high costs in a Project to arrive at a cost saving without sacrificing the reliability or efficiency of the Project.

Waste Discharge Permit. A "Waste Discharge Permit" means the permit granted by the Department that establishes the conditions or limits under which waste may be discharged into or adjacent to waters of the state.

2. Declarations of Intent of SRF Regulations

(a) General. The Department and the Bank shall comply with all applicable federal and state laws and all rules and regulations promulgated under those laws. The 1987 amendments to the Act created and provided federal funding for the SRF. The SRF is intended to be a perpetual fund available to provide Financial Assistance for the planning, design and construction of Treatment Works, Non-Point Source, and other eligible projects for assistance under the Act. The Department and Bank share equally in these policy objectives and will work to jointly administer the SRF program.

(b) Management of Financial Resources. Financial Assistance to applicants will be structured so that the Bank will maximize financial resources available to the State, while providing Eligible Applicants with the most cost-effective capital financing possible within the limits of the fund. The Department and the Bank shall administer the fund so that it will continue to grow in value with the goal of it becoming self-sustaining.

(c) Projects Expedited. Projects undertaken with the SRF will be expedited. This may include, but is not limited to, streamlining financial and technical procedures for compliance with applicable federal requirements and increasing amounts available in the SRF to provide Financial Assistance through the issuance of debt by the Bank. The Bank will strive to ensure that SRF funding is efficiently and appropriately applied so that it meets the intent of federal requirements while attending to the State goals for water quality management and the needs of the applicants the program is meant to serve.

Interest Rate on Loans and Principal Forgiveness.

The Bank shall have the discretion, subject to federal and state law, to establish a minimum interest rate and set the interest rate on all loans made in a manner that furthers the goals and objectives of the SRF program. In establishing a minimum rate and setting the interest rates, the Bank shall consult with the Department and shall consider the Applicable Interest Rate, market conditions, affordability, and the goal of maintaining the fund in perpetuity. The Bank will regularly review market conditions so that it establishes and sets rates from time to time reflective of then current conditions. Loans may be made at interest rates that are at or below 0% and allow principal forgiveness where it is determined by the Bank, after consultation with the Department, to be necessary to meet program goals. If any fees are being charged for the operation of the program at the time the loan is made, any interest rate for the loan may be adjusted downward to accommodate the fees so there will be no increase in cost to the borrowers. If fees are being charged on loans made from funds in the SRF at interest rates that are at or below the current minimum interest rate, the requirement to further reduce the interest downward in an amount equal to the cost of the fee shall not apply, except to the extent that the sum of fees charged causes the cost of the loan to exceed market rates. The interest rate for loans funded with Bank funds held outside of the SRF may, at the discretion of the Bank, be adjusted downward to account for any fees charged. In all cases, any fees charged on a loan shall be limited to the maximum amounts allowable under Section B(3)(f) of this rule. The Bank, in consultation with the Department, will establish minimum interest rates and the interest rate and maturity schedule for each loan consistent with this rule. Terms and conditions for each loan shall be fixed for the life of the loan, unless the borrower and the Bank agrees to any changes in the loan terms. A loan may have as a fixed term a provision that allows for the interest rate to vary from time to time based upon objective criteria or market conditions.

(e) Applicable Loan Term. Loans will have terms not to exceed the lesser of thirty (30) years, or the useful life (as determined by the Department) of the Project to be financed.

B. Program Requirements

1. Obligation Period. Funds allotted to the State must be available for obligation for a period of one year after the close of the federal fiscal year for which the funds are authorized.

2. Reserves for Planning and Program Administration. The Act, under section 604(b) (33 U.S.C. §1384) requires states to reserve the greater of one percent of its allotment or $100,000 each year to carry out planning under sections 205(j) and 303(e). Section 603(d)(7) of the Act (33 U.S.C. §1383(d)(7)) also allows states to use up to four percent of all grant awards to the fund under this title, $400,000 per year, or 1/5^th percent per year of the current valuation of the fund, whichever amount is greatest, plus the amount of any fees collected by the State for administration of the fund and conducting activities under this title.

3. Types of Financial Assistance. The SRF has been established to assist and encourage Eligible Applicants to design and construct eligible Treatment Works and Non-Point Source projects required to improve or protect water quality and public health with Financial Assistance.

(a) Purpose of the SRF. The SRF may be used for one or more of the following purposes:

(i) To make loans to Eligible Applicants pursuant to 30-A M.R.S. §5953-A and §6006-A;

(ii) To make loans to refund bonds or notes of Eligible Applicants issued after March 7, 1985, for the purpose of financing the construction of any capital improvement described in §5953-A(l), and certified under §5953-A(3);

(iii) To guarantee or insure, directly or indirectly, the payment of notes or bonds issued or to be issued by Eligible Applicants for the purpose of financing the construction of any capital improvement described in section 5953-A(l), and certified under section 5953‑A(3);

(iv) To guarantee or insure, directly or indirectly, funds established by Eligible Applicants for the purpose of financing construction of any capital improvement described in section 5953-A(l);

(v) To invest available fund balances and to credit the net interest income on those balances to the SRF;

(vi) To invest as a source of revenue or security for the payment of principal and interest on general or special obligations of the Bank if the proceeds of the sale of the obligations have been deposited in the SRF or if such proceeds are to be used in conjunction with monies from the SRF for eligible Project purposes, or as a source of revenue to subsidize loan payment obligations of Eligible Applicants; and

(vii) To pay the costs permitted pursuant to the Federal Water Pollution Control Act , Title VI.

(b) Requirements of Eligible Applicants. All Eligible Applicants requesting assistance shall meet the following requirements:

(i) The Project must be listed on the Intended Use Plan or the State Project Priority List;

(ii) The Project has complied with requirements of Subsection B(5) of this Chapter (relating to Capitalization Grant Requirements) and has been approved by the Department;

(iii) The Project must have Plans and Specifications approved by the Department, if applicable;

(iv) The Project must comply with all applicable statutes and rules;

(v) The Eligible Applicant shall complete an application for financing with the Bank;

(vi) The Eligible Applicant shall establish a dedicated source of funds for repayment of the loan, if applicable;

(vii) The Eligible Applicant shall establish a system of user fees with respect to the Project, if applicable; and

(viii) The Eligible Applicant shall enter into legal and binding commitments with the Bank to complete the financing and repay the loan.

(c) Payments. Payments from the Bank may be made as planning, design and construction is progressing. Funds may not be disbursed from the Bank without prior Department approval, which approval may not be unreasonably withheld.

(d) Sources of Financial Assistance. The Bank may provide Financial Assistance utilizing any amounts in the SRF and available therefor. Such amounts may include the proceeds of Federal Capitalization Grants, state matching funds, loan repayments or debt issued by the Bank, at the discretion of the Bank.

(e) Municipal Bond. Each loan shall be evidenced by a loan agreement, a municipal bond or both in form and substance satisfactory to the Bank.

(f) Fees. In order to maintain minimum administrative functions required by the program, and to ensure the self-sustaining nature of the funds created under the SRF, the Bank and the Department may jointly establish loan servicing fees that shall be shared in accordance with a Memorandum of Understanding that may not exceed five percent (5%) of aggregate annual regularly scheduled debt service payments on the loans. The Bank will deduct these fees from payments received prior to depositing such payments in the SRF. For the same purposes, the Department and the Bank may establish a project management fee which shall not exceed three percent (3%) of the original principal amount on the loan (including interim loans and Bank leveraged bond funds, if blended with the SRF). At the request of the Department, the Bank will deduct this fee from payments received prior to depositing such payments in the SRF or Bank Funds. These fees shall not be part of any loans and must be held outside the SRF or Bank funds. If interest is being charged on any loans made from funds in the SRF on which fees are being assessed, the interest rate may be adjusted downward to accommodate the fees so there will be no increase in cost to the borrowers. On all loans made from funds in the SRF where the interest rate is at or below the minimum interest rate as established by the Bank and the Department, the requirement to further adjust the interest rate down to accommodate the fees shall not apply, except to the extent that the sum of all fees causes the cost of the loan to exceed market rates. In all cases, the total cost of a loan to a borrower (including all fees and interest) must remain at or below market rates. The interest rate for loans made with Bank funds not deposited into the SRF may, at the discretion of the Bank, be adjusted downward to accommodate any fees charged.

4. Capitalization Grant Application. The Department shall submit the Intended Use Plan and Project Priority List with an application approved by the Bank and the Department for the Capitalization Grant for that fiscal year to EPA.

5. Capitalization Grant Requirements. All Projects that receive assistance from the SRF with funds directly made available by Capitalization Grants must meet the requirements listed below. These requirements are referred to as “equivalency requirements”. Projects selected by the Department to comply with the federal requirement do not actually need to receive federal capitalization grant funds.

MBE/WBE. Federal requirements for the participation of minority and women owned businesses (MBE/WBE);

Signage. Federal requirements for signage;

FFATA. Reported in accordance with the Federal Funding Accountability and Transparency Act of 2010 ;

Federal Cross-Cutters. The SRF must comply with the cross-cutting federal authority requirements of other federal laws and Executive Orders. See 40 C.F.R. §35.3145 ;

Architectural/Engineering (A/E) Services Selection. A/E contracts must be negotiated in accordance with 40 U.S.C. §§ 1101 et seq ;

Single Audit. 2 C.F.R. 200 Subpart F requires a “Single Audit” to be conducted for any assistance recipient expending the current federal minimum in federal financial assistance in a fiscal year; and

Federal Requirements. Any other applicable federal requirements.

6. Project Priority List

(a) Project Priority List. The Project Priority List is a listing of Projects eligible to receive Financial Assistance from the SRF. Loan assistance may be provided regardless of the rank on the State Project Priority List.

(b) Preparation and Submission. The Department will prepare and revise the Project Priority List in accordance with Subsection B(7) of this rule (relating to Intended Use Plan) as necessary to efficiently manage the SRF. The Department shall submit the final Project Priority List to EPA.

(c) Effective Period. The Project Priority List shall become effective and supersede all previous lists upon submittal to and acceptance by EPA and shall remain effective until changed by the Department.

7. Intended Use Plan

(a) Intended Use Plan. Each fiscal year, concurrent with preparation of the Project Priority List, the Department prepares an Intended Use Plan that is subjected to a public comment period and approved by EPA. The Intended Use Plan identifies Projects that are eligible to receive Financial Assistance from appropriations in that fiscal year and may include contingency Projects from the Project Priority List to substitute for Projects which are delayed. The Intended Use Plan must comply with 40 C.F.R. §35.3150.

(b) Added Projects. The Department may move Projects from the Project Priority List to the Intended Use Plan as necessary to utilize available funds.

C. Application for Assistance

1. Preplanning and Preapplication

(a) Preplanning. Potential applicants should confer with the staff of the Department and the Bank as early in its planning process as practical. The Department will provide information, advice, instruction, and guidance on the scope of work and level of effort needed to define eligible Projects in order to ensure that the applicant expeditiously complies with all state and federal requirements.

(b) Preapplication Meeting. An Eligible Applicant seeking Financial Assistance should make an appointment for a meeting with the staff of the Department and the Bank. At a minimum, the preapplication meeting should be attended by a member of the governing body of the municipality and the applicant's engineer and fiscal representative. If possible the applicant should bring information documenting the existence of, or a proposal for, a dedicated source of revenue for repaying the loan and of the establishment or proposed establishment of a system of user fees. The primary purpose of the meeting is to acquaint the applicant with program requirements and to assist the applicant in preparing an application. Also, a preliminary evaluation of whether the Project will qualify for funding will in most cases be made at this meeting.

2. Required General Information. An Eligible Applicant shall file an application with the Bank. The information listed below is required for each application.

(a) Eligible Applicant. Name and address of the Eligible Applicant.

(b) Authorized Representative. Name and addresses of the Authorized Representative for the Eligible Applicant.

(c) Principal Officers. Name and address of the principal officers, including the managing official of the Eligible Applicant.

(d) Project Engineer. Name and address of the Project Engineer, if applicable.

(e) Legal counsel. Names and addresses of legal counsel for the Eligible Applicant. If an application for Financial Assistance envisions a contractual loan agreement or the purchase of the applicant's bonds by the Bank, the name and address of bond counsel (from the Bank’s approved bond counsel list) is also required (if other than legal counsel) and the name and address of any financial advisor or consultant.

(f) Authority. The authority of law under which the Eligible Applicant was created, if applicable.

(g) Project Description. A brief description of the Project including, but not limited to, the following:

(i) Location;

(ii) A comprehensive statement detailing the Project and the timing of the Project; and

The total estimated cost and construction schedule of the Project prepared by the engineer.

(h) Source of Funds. The Eligible Applicant shall submit the amount and source of any funds to be expended on the Project.

(i) Use of Funds. The applicant shall submit the most current estimate of Project cost itemized as to major facilities or items including land, fees of engineers, legal fees, fees of financial advisors and/or consultants, contingencies, and interest during construction.

(j) Permits. Status of any proceedings to obtain a permit or other authorization from the Department or any other state or federal agency.

(k) Supplemental Information. The Department and the Bank reserve the right to request any supplemental information as necessary.

3. Required Fiscal Data. The Bank has ultimate responsibility to determine financial feasibility and reserves the right to reject any potential recipient on the basis of the lack of financial feasibility. The Eligible Applicant shall submit the following required fiscal data and any additional information required by the bank:

(a) Debt. The following information is to be furnished when the applicant proposes to issue debt to finance the Project:

(i) Citation of statutory authority for issuance;

(ii) Type of debt (i.e., general obligation, revenue, or combination). If revenues are to be pledged, state the source of such revenue;

(iii) Amount of the issue;

(iv) Name of Lender(s) and/or full name of issue(s);

(v) Approximate date of issue(s);

(vi) Proposed maturities; and

(vii) Refinancing plans (i.e. bond anticipation notes to be paid off with long term debt).

(b) Payable by Taxes. If the Eligible Applicant is authorized by law to levy and collect ad valorem taxes and the loan or bond financing the Project will be payable, wholly or in part from ad valorem taxes, the applicant shall give the following information:

(i) If the Eligible Applicant has previously exercised such right and power, the applicant must give the following information:

(AA) Most recent assessed valuation of taxable property;

(BB) Current composition of tax base;

(CC) Date of last re-valuation performed;

(DD) Tax rate per $1000 of assessed valuation for each of the preceding 6 years; and

(EE) Aggregate of taxes levied and aggregate amount in dollars of taxes collected for each of the preceding 6 years.

(ii) If the Eligible Applicant is newly created, or if it has never exercised its taxing power, the applicant must give the following information:

(AA) Assessed valuation of taxable property if valuations have been established, and if not, the estimated total amount of the assessed valuation of taxable property. Indicate whether the figure represents actual valuation or an estimate; and

(BB) Tax rate per $1000 of assessed valuation being considered.

(c) Payable by User Charges. If the financing of the Project will involve entering into a contractual loan agreement or sale of bonds or other securities payable wholly or in part from user charges, the applicant shall provide the following information:

(i) Schedule of water and sewer rates or service charges for the last 6 years;

(ii) Number of customers and employees of the system for the last 6 years;

(iii) List of any significant users who contribute more than 5% of the waste water to the system with approximate percentage of capacity attributed to these users; and

(iv) If a rate increase is required for financing the Project under consideration, the Eligible Applicant shall provide a schedule of proposed rates and a schedule for adopting those rates, if they are not then in place.

(d) Debt Limitations. The Eligible Applicant shall give details of any limitation governing the amount of debt which Eligible Applicant may incur.

(e) Outstanding Bonds. If the Eligible Applicant has bonds outstanding, the applicant must provide the following information:

(i) A complete description of each such issue of bonds, including name of issue, date of issue, interest rates, maturity dates, amounts outstanding, and the amortization schedules;

(ii) For all issues of bonds, a consolidated schedule of future requirements of annual principal and interest payment requirements; and

(iii) Any overlapping debt associated with the applicant.

(f) Statement on Default. The Eligible Applicant shall provide a statement as to whether or not there has been a default in the payment of items of matured principal or interest and if so, give details.

(g) Annual Audit. The Eligible Applicant must provide an annual audit to the Bank, prepared in accordance with generally accepted accounting principles by an independent auditor, of the applicant's financial reports as of the close of the most recent fiscal year and for the preceding two years. However, no audit is required if the Eligible Applicant has no operational history. Where there is no audit, the Bank may require that the Eligible Applicant provide a third party feasibility analysis demonstrating the financial feasibility of the proposed system. Eligible Applicants may need to comply with the federal “ Single Audit Act ” when receiving assistance from the SRF.

(h) Other Information. The Eligible Applicant must submit other fiscal data requested by the Department or Bank that is reasonably necessary for an adequate understanding of the Eligible Appliacant’s financial feasibility and capability.

4. Required Legal Data. The Eligible Applicant shall submit the following required legal data and any additional information required by the bank:

(a) Loan Authorization. The Eligible Applicant must provide the Bank with the form of authorization to borrow, the date of the authorization to borrow, and the amount of the loan authorization.

(b) Resolution. The Eligible Applicant must submit a certified copy of a resolution of its governing body requesting Financial Assistance from the Bank authorizing the submission of the application and designating the Authorized Representative.

(c) Interlocal Contracts. The Eligible Applicant must submit a copy of any actual or proposed Interlocal Contract under which any portion of the Eligible Applicant's sewerage capacity is utilized by another municipal entity. Before a loan is closed, a certified copy of such contract must be submitted to the Bank.

(d) Other Contracts. If financing of the Project will require a contractual loan agreement or the sale of bonds to the Bank payable either wholly or in part from revenues of contracts with others, the Eligible Applicant must submit to the Bank a copy of any actual or proposed contracts from which applicant will receive gross income.

(e) Draft Ordinance. If applicable, the Eligible Applicant must submit a certified copy of an ordinance, resolution, vote or similar instrument adopted by the governing body authorizing the execution of a contractual loan agreement and the issuance of each of the bond issues described in subsection C(3)(a)(i) of this Rule (relating to Required Fiscal data). Such ordinance, resolution, or similar instrument must contain sections providing:

(i) That a Project Account must be designated by the Eligible Applicant;

(ii) That a Project Account must be maintained in accordance with standards set forth by the Bank and in accordance with generally accepted government accounting standards;

(iii) That a final accounting must be made to the Bank of the total cost of the Project upon completion. The Bank reserves the right at its sole discretion to be provided with a cost certification of the Project as built;

(iv) That an annual audit of the Eligible Applicant, and single audit, if applicable, prepared by a certified public accountant or licensed public accountant in accordance with generally accepted accounting principles be provided to the Bank for the term of the loan;

(v) That the Eligible Applicant shall maintain insurance coverage on the Project in an amount adequate to protect the Bank's interest for the term of the loan. The Bank must be named as “Loss Payee”;

(vi) That the Eligible Applicant shall comply with any special conditions specified by the Department's environmental determination until all financial obligations to the state have been discharged;

(vii) That the Eligible Applicant shall certify to the Bank that it has secured all permits, licenses and approvals necessary and that it has a dedicated source of revenue for repayment;

(viii) That the Eligible Applicant shall establish a rate, charge or assessment schedule in order to pay principal and interest. Such rate, charge or assessment must provide total operations and debt service coverage at a level at which the coverage for the Bank is sufficient;

(ix) That the Eligible Applicant shall demonstrate the ability to pay reasonably anticipated costs of operating and maintaining the financed Project; and

(x) That the Eligible Applicant agrees to abide by the rules of the Department, the Bank and relevant statutes of the State of Maine.

(f) Affidavit. The Eligible Applicant must submit an affidavit executed by the Authorized Representative stating that the facts contained in the application are true and correct to his or her best knowledge and belief.

(g) Land interest. The Eligible Applicant must submit a copy of any proposed or existing lease or other agreement transferring interests in any land acquired, or to be acquired, with assistance from the SRF. Regardless of the source of funds in the acquisition, the Eligible Applicant must:

(i) Describe what real property interests and acquisitions are necessary for the construction of the Project;

(ii) Explain the status of and steps to be taken to purchase the property interests;

(iii) Provide a certification that it has the necessary legal powers and authority to obtain the property interests; and

(iv) Provide assurances to the Department that land acquired will be used for its initial intended purpose for the useful life of the Project.

(h) Other Information. The Eligible Applicant must submit other information, plans, and specifications requested by the Department or the Bank that are reasonably necessary for an adequate understanding of the Project.

5. Required Environmental Review and Determinations

General. The Department will conduct an interdisciplinary environmental review of the Project proposed for funding through the SRF. This review will insure that the Project will comply with the applicable local, state and federal laws and Department rules relating to the protection and enhancement of the environment. Based upon the staff review, the Department will make formal determinations regarding the potential social and environmental impacts of the proposed Project. If necessary, the determinations of the Department will include mitigation provisions as a condition of the provision of Financial Assistance for construction. No Financial Assistance for construction will be provided until a final environmental determination has been made by the Department, or until the Department has accepted a previous determination made by EPA, US Housing and Urban Development, USDA Rural Development, or other funding agency using a NEPA-like environmental review process. Nothing in these rules prohibits any public, private or governmental party from seeking administrative or legal relief from the determinations of the Department. Potential applicants to the fund should obtain guidance from the staff regarding the scope of the environmental review to be conducted by the Department and the environmental information that the applicant will be required to submit in support of the proposed Project.

Environmental Reviews Required. Environmental Reviews are required for all new construction loans for Treatment Works Projects. Environmental Reviews are not required for non-treatment works Projects for Non-Point Source Projects. For Projects under the jurisdiction of another agency, such as Non-Point Source agricultural Projects, the agency with jurisdiction must provide evidence to the Department that the Projects meet all applicable environmental standards.

Basic Environmental Determinations. There are three basic environmental determinations that apply to Projects proposed to be implemented with assistance from the fund that require an environmental review. These are: (1) a determination to categorically exclude a Project from a formal environmental review, (2) a finding of no significant impact (FNSI) based upon a formal environmental review supported by an environmental information document (EID) and, (3) a determination to provide or not to provide Financial Assistance based upon a record of decision (ROD) following the preparation of an environmental impact statement (EIS). The appropriate determination will be based on the following criteria.

(i) The categorical exclusion (CE) determination applies to categories of Projects that have been shown over time not to entail significant impacts on the quality of the environment.

(AA) Projects which meet the following criteria may be categorically excluded from formal environmental review requirements.

(I) The Project is directed solely toward the rehabilitation, minor upgrading and minor expansion of existing facilities, toward the functional replacement of equipment, or toward the construction of related facilities adjoining the existing facilities; or

(II) The Project is an unsewered area of less than 1,000 persons where on-site technologies are proposed.

(BB) CEs will not be granted for Projects that entail:

(I) The construction of new collection lines;

(II) A new discharge or relocation of an existing discharge;

(III) A substantial increase in the volume or loading of pollutants which measurably degrade receiving waters;

(IV) The provision of capacity for a population 30 percent or greater than the existing population within a 10 year period;

(V) Known or expected impacts to cultural resources, to threatened or endangered species, or to other environmentally sensitive areas; or

(VI) The construction of facilities that are known or expected to be not cost-effective or are likely to cause significant public controversy.

(CC) The Department may exclude other categories of Projects for which there is sufficient documentation demonstrating that the Projects are not likely to have significant effects on the quality of the environment.

(ii) All Eligible Applicants whose Projects do not meet the criteria for a CE will be required to prepare an EID. The Department staff will review the EID and prepare an environmental assessment (EA) resulting in the issuance of either a FNSI or a public notice that the preparation of an EIS will be required by the applicant. The Department's issuance of a FNSI will be based upon the EA that document that the potential environmental impacts will not be significant or that they may be mitigated without extraordinary measures.

(iii) The ROD may only be based upon an EIS in conformance with the format and guidelines described in subsections C(5)(f)(iii) and C(5)(g) of this rule. An EIS will be required when the Department determines any of the following:

(AA) The Project will significantly affect the pattern and type of land use or growth and distribution of the population;

(BB) The effects of the construction or operation of the Project will conflict with local or state law or policies;

(CC) The Project may have significant adverse impacts upon:

(I) Wetlands,

(II) Floodplains,

(III) Threatened or endangered species or their habitats,

(IV) Cultural resources including parklands, preserves, and other public land or areas of recognized scenic, recreational, agricultural, archeological or historic value;

(DD) The Project will displace population or significantly alter the characteristics of existing residential areas;

(EE) The Project may directly or indirectly (e.g., through induced development) have significant adverse effect upon local ambient air quality, local noise levels, surface and ground water quantity or quality, fish, shellfish, wildlife or their natural habitats;

(FF) The Project may generate significant public controversy; or

(GG) The treated effluent will be discharged into a body of water, the classification of which is too lenient or is being challenged as too low to protect present uses, and the effluent will not be of sufficient quality to meet the requirements of those uses.

Other Required Determinations.

(i) When five or more years have elapsed before the beginning of construction of a Project, or five or more years have elapsed between phases of the same Project, or a Project has been altered after an environmental determination was issued, the Department will examine the Plans and Specifications, loan application, and related documents for consistency with the environmental determination. If changes are found, the Department may revoke a CE and require the preparation of an EID and, if appropriate, an EIS, consistent with the criteria of subsection C(5)(f)(iii) of this section, or require the preparation of amendments to an EID or if appropriate supplements to an EIS. Based upon staff review of the amended Project and EID, the Department will:

(AA) Reaffirm the original environmental determination through the issuance of a public notice or statement of finding;

(BB) Issue a FNSI for a Project for which a CE has been revoked, or issue a public notice that the preparation of an EIS will be required;

(CC) Issue an amendment to a FNSI, or revoke a FNSI and issue a public notice that the preparation of an EIS will be required; or

(DD) Issue a supplement to a ROD, or revoke a ROD that included funding and issue a public notice that Financial Assistance will not be provided.

Other determinations that the Department may make.

(i) An Eligible Applicant may request advance authority to construct part of the proposed Project prior to completion of the necessary environmental review when the part of the Project to be constructed will:

(AA) Immediately remedy a safety emergency or a severe public health, water quality or environmental problem;

(BB) Not preclude any reasonable alternatives identified for the complete system;

(CC) Not cause significant direct or indirect environmental impacts including those which cannot be acceptably mitigated without completing the entire Project; and

(DD) Not be highly controversial.

(ii) Based upon the review of the information required by subsection C(5)(f) of this rule, if the Department finds that the part to be constructed meets the requirements of subsection C(5)(c) above, the Department will issue an environmental determination so conditioned as to prohibit construction of the remainder of the Project until a complete environmental review of the entire Project has been performed and an environmental determination has been issued.

Required Environmental Information. A minimum of one paper copy and one electronic copy (if available) of all information required in this subsection must be submitted to the Department.

(i) Eligible Applicants seeking a CE will provide the Department with sufficient documentation to demonstrate compliance with the criteria of subsection C(5)(c)(i) of this rule. At a minimum, this documentation will consist of:

(AA) A brief, complete description of the proposed Project, its costs and a construction schedule;

(BB) A statement indicating that the Project is cost-effective, that the Eligible Applicant is financially capable of constructing, operating and maintaining the facilities, and that none of the issues listed in subsection C(5)(c)(iii) apply to the Project;

(CC) A plan map or maps of the proposed Project showing:

(I) The location of all construction areas,

(II) The facilities planning area boundaries,

(III) Any known environmentally sensitive areas, and

(DD) Results of any preliminary discussions with relevant review agencies for the proposed Project.

(ii) An EID must be submitted by those applicants whose proposed Projects do not meet the criteria for a CE.

(AA) In addition to such other information as the Department may require, the contents of an EID will include:

(I) A description of the Project including population to be served, if appropriate. Population projections will be consistent with State Implementation Plans developed under the Clean Air Act ;

(II) The environmental setting of the Project and the future of the environment without the Project;

(III) The alternatives to the Project including an evaluation of direct and indirect impacts, cost effective analysis and socioeconomic effect of each, including the no action alternative;

(IV) The potential environmental impacts of the Project, including those which cannot be avoided;

(V) The relationship between the short term uses of the environment and the maintenance and enhancement of its long term productivity;

(VI) A description of public participation activities conducted, issues raised, and changes to the Project that have been or may be made as a result of the public participation process; and

(VII) Documentation of coordination with appropriate governmental agencies.

(BB) The Eligible Applicant will hold a public meeting on the proposed Project and on the EID, and provide the Department with a summary of the meeting, a list of people in attendance, copies of written testimony and the applicant's responses to the issues raised. The Department will provide guidance to the Eligible Applicant regarding the contents of the meeting notice and of the meeting. The meeting will be advertised no less than 14 days nor more than 30 days prior to the meeting in a local newspaper of general circulation in the municipality. Concurrent with the advertisement, a notice of the public meeting and availability of the EID will be sent to all relevant local, state, and federal agencies and to interested public and private parties.

(iii) The format of an EIS will encourage sound analysis and clear presentation of alternatives, including the no action alternative and the selected alternative, and their environmental, economic and social impacts. The following format must be followed by the Eligible Applicant unless the Department determines there are compelling reasons to do otherwise.

(AA) A cover sheet identifying the Eligible Applicant, the Project(s), the program through which Financial Assistance is requested, and the date of publication.

(BB) Summary of the critical issues of the EIS in sufficient detail to enable the reader to become familiar with the proposed Project and its cumulative effects on the environment. The summary will include:

(I) A description of the existing problem;

(II) A description of each alternative and its environmental impacts;

(III) A listing of mitigation measures and any areas of controversy; and

(IV) Any conclusions.

(CC) The body of the EIS, which will contain the following information:

(I) A complete and clear description of the purpose and need for the proposed Project that clearly identifies its goals and objectives.

(II) A description of each alternative considered by the Eligible Applicant. The descriptions will include the size and location of facilities and pipelines, land requirements, operation and maintenance requirements, and construction schedules. The alternative of no action will be discussed. Alternatives that were rejected will be presented and the reasons for the applicant’s rejection must be given.

(III) A description of the alternatives available to the Department including:

(aa) Providing Financial Assistance to the proposed Project;

(bb) Requiring that the proposed Project be modified prior to providing Financial Assistance to reduce adverse environmental impacts, or providing assistance with conditions requiring the implementation of mitigation measures; and

(cc) Not providing Financial Assistance.

(IV) A description of the alternatives available to other local, state, and federal agencies that may have the ability to issue or deny a permit, provide Financial Assistance or otherwise effect or have an interest in any of the alternatives.

Procedures for Developing the EIS

(i) Upon making the determination that an EIS will be required of a proposed Project, the Department will publish and distribute a notice of intent to prepare an EIS.

(ii) As soon as possible after the notice of intent has been issued, the Department will convene a meeting of the affected federal, state and local agencies, the Eligible Applicant, and other interested parties to determine the scope of the EIS. A notice of this scoping meeting may be incorporated into the Notice of Intent or prepared as in subsection C(5)(f)(ii)(BB) of this rule. As part of the scoping meeting the Department will, at a minimum:

(AA) Determine the significance of issues and the scope of those issues to be analyzed in depth in the EIS;

(BB) Identify the preliminary range of alternatives to be considered;

(CC) Identify potential cooperating agencies and determine the information or analyses that may be needed from cooperating agencies or other parties;

(DD) Discuss the method for EIS preparation and the public participation strategy;

(EE) Determine the relationship between the preparation of the EIS and the completion of the Facilities Plan and any necessary arrangements for coordination of the preparation of both documents.

(iii) Following the scoping process the Department will begin the identification and evaluation of all potentially viable alternatives to adequately address the range of issues developed in the scoping. A summary of this including a list of the significant issues identified will be provided to the Eligible Applicant and other interested parties. The EIS will be prepared by a consultant hired by the Eligible Applicant subject to approval by the Department.

The consultant will be required to execute a disclosure statement prepared by the Department signifying they have no financial or other conflicting interest in the outcome of the Project.

(iv) The draft EIS will be provided to all local, state and federal agencies and public groups with an interest in the proposed Project and be made available to the public for review. The comment period will be no less than 30 days.

(v) The final EIS will include all objections and comments made before and during the draft EIS review process. The final EIS must include a discussion of any such comments that have led to a change in either the Project or EIS. The Department will try to resolve any conflicts that may have arisen between permitting agencies prior to the issuance of a final EIS.

(vi) Material incorporated into an EIS by reference will be organized to the extent possible into a “Supplemental Information Document” and be made available for public review upon request. No material may be incorporated by reference unless it is reasonably available for inspection by interested persons within the comment periods specified in subsection C(5)(g)(iv) of this rule. The final EIS will be distributed and made available for public review in a fashion consistent with the requirements of subsection C(5)(f)(ii)(BB) of this rule prior to the Department making any environmental determination.

6. Facilities Plan

(a) Pre-Planning Consultation. As early as practical, pursuant to subsection C(l) of this rule (relating to Pre-Planning and Pre-Application), if the proposed Project requires a Facilities Plan as determined by the Department, the Eligible Applicant's engineers and appropriate staff shall consult with Department staff to obtain current planning information, to obtain guidance on the scope of the Facilities Plan, and, if appropriate, to get an early determination under subsection C(5) of this rule (relating to Required Environmental Review and Determinations). The Eligible Applicant shall utilize the guidance provided by the Department staff to the maximum extent feasible. The Eligible Applicant shall submit two copies of its Facilities Plan.

(b) Contents of Facilities Plan. The Facilities Plan must contain the following information:

(i) Identification of the Facilities Planning area boundaries and characteristics, the existing problems and needs related to wastewater management, and the projected needs and problems for the next 20 or more years;

(ii) Demonstration that each sewer collection system feeding into the facility is not or will not be subject to excessive infiltration;

(iii) Systematic identification screening, study, evaluation, and Cost-effectiveness Analysis of (BPWTT). Technology options are to address, as appropriate, the ultimate disposal of residues and sludge, the ability of the facility to produce revenue, and, to the extent practicable, the more efficient use of energy and resources;

(iv) Adequate evaluation of the environmental impacts of alternatives in accordance with subsection C(5) of this rule (relating to environmental review and determination) to support the Cost-effectiveness Analysis;

(v) Description of the proposed Project in terms of unit quantities in each category of work, capital costs, and operation and maintenance costs;

(vi) If collection lines are included, determination of whether they are for replacement or major rehabilitation necessary to the total integrity and performance of the Treatment Works servicing the community, or whether they are for a new collection system in an existing community with sufficient existing or planned wastewater treatment capacity;

(vii) Documentation of the consistency of the Project with the approved elements of any applicable water quality management plan approved under §208 (33 U.S.C. §1288) or §303(e) (33 U.S.C. §1313(e)) of the Act, if applicable.

(viii) Complete analysis and description of the proposed or existing user charge system that will proportionately distribute operation, maintenance and replacement costs to each user or user class (system may allow subsidizing of low-income residential user);

(ix) A capital financing plan including a projection of future needs (through 10 or more years) for construction and reconstruction and an explanation of how and when the financing will be obtained;

(x) The date on which the preliminary engineering design will be available;

(xi) A valid schedule for implementation of the Project, covering design through construction including the date by which an application can be submitted to the Department and a payment schedule; and

(xii) Other information deemed necessary, by the Department.

(c) Approval of Facilities Plan. The Department will approve the Facilities Plan after the requirements of subsection C(6)(b) have been met.

7. Review of Eligibility

(a) Review Criteria for Eligibility. The Department shall review the eligibility of the Eligible Applicant and of the Project for funds and certify to the Bank that:

(i) The Project is on the Project Priority List;

(ii) The Eligible Applicant has satisfactorily completed a Facilities Plan, if applicable, in accordance with subsection C(6) of this rule (relating to Facilities Plan) or other appropriate report, as determined by the Department;

(iii) The Department has performed an environmental review and determination, if applicable, according to subsection C(5);

(iv) The categories of proposed work are eligible for SRF financing and are in accordance with State law regarding designated growth areas;

(v) The Eligible Applicant has adopted or has agreed to adopt a user charge system and sewer use ordinance acceptable to the Department;

(vi) The Eligible Applicant has the necessary legal, financial and managerial capability to complete, operate and maintain the Project;

(vii)The Eligible Applicant has agreed to submit a schedule acceptable to the Department for the initiation and completion of the Project; and

(viii)Any management program to be financed complies with all applicable state and federal laws and all rules and regulations adopted under those laws.

(b) Review criteria for refinancing. The Department shall review the eligibility for refinancing of construction costs and present it to the Bank only after confirming the following:.

(i) All of the items in subsection C(7)(a)(i) and (iv) of this Chapter have been confirmed; and

(ii) Any other information requested by the Bank or Department as necessary to a review of the application has been provided.

(c) Return of incomplete information. The Department shall return any request not in substantial compliance with this Chapter with notations indicating deficiencies.

D. Engineering Design

1. Value Engineering

Applicability. If the estimated cost of building the Project is more than $10 million, the applicant may conduct value engineering, during the design of the Project, and prepare a value engineering report. One copy of any value engineering report must be submitted to the Department for review and approval.

2. Plans and Specifications

(a) Submittals. The Eligible Applicant shall submit copies of any proposed or existing contracts for consultant services necessary for planning, design and construction of the proposed Project and included as part of the total cost of the Project for the Department's approval. The Eligible Applicant shall prepare a 10% preliminary design report and Plans and Specifications on all significant elements of the Project, if applicable. The Plans and Specifications may incorporate the accepted recommendations of any value engineering performed in accordance with subsection D(1) of this rule (relating to value engineering). One copy of the documents must be submitted to the Department.

(b) Contents. The Plans and Specifications must contain the following:

(i) Provisions assuring compliance with the Department's rules and all relevant federal and State of Maine statutes;

(ii) Forms detailing the performance and payment bonds that will be provided;

(iii) Provisions requiring the successful contractor and subcontractors to pay all laborers and mechanics employed on the Project not less than the prevailing State minimum wage rates;

Provisions requiring the successful contractor and subcontractors for Projects considered a “treatment work” as defined in the FWPCA §212, 33 U.S.C. §1292(2)(A), to pay all laborers and mechanics employed on the Project not less than the prevailing wage rates as determined by the United States Secretary of Labor, in accordance with the Davis-Bacon Act , as amended (40 U.S.C. §§ 3141 -- 3148);

Provisions requiring that the successful contractor and subcontractor comply with FWPCA §608, 33 U.S.C. §1388, requiring that the iron and steel products used in a Project for the construction, alteration, maintenance, or repair of “treatment works” as defined in the FWPCA §212, 33 U.S.C. §1292(2)(A), be produced in the United States;

Provisions relating to retainage in accordance with subsection F(8) of this rule (relating to retainage);

Provisions requiring the contractor to obtain and maintain insurance coverage of the Project;

Provisions giving authorized representatives of the Department access to the construction site and to all books, records, and documents of the contractor for the purpose of inspection, audit and copying during normal business hours; and

Those general conditions, supplementary conditions, specifications, and other provisions provided by or required by the Department.

3. Approval of Plans and Specifications

(a) Approval. The Department's approval of the Plans and Specifications does not relieve the Eligible Applicant of any liability or responsibility with respect to the design, construction, operation, or performance of the Project. The Department will approve the Plans and Specifications if all applicable permits have been obtained, and if they:

(i) Conform to the requirements listed in subsection D(2) of this rule (relating to Plans and Specifications);

(ii) Are consistent with all relevant federal and State of Maine statutes;

(iii) Pass a biddability, operability, and constructability review by the Department; and

(iv) Are consistent with any Facilities Plans, if applicable, and environmental determinations required by subsection C(5)(c) of this rule (relating to required environmental review and determinations) and subsection C(6) of this rule (relating to Facilities Plans).

(b) Advertisement for Bids. The applicant shall obtain authorization from the Department before advertising for bids on the Project.

E. Prerequisites to Release of Funds

1. Release of Funds. No release of funds may be made until such time as:

(a) Rate Schedule. The Eligible Applicant demonstrates to the Bank that it has established a rate, charge or assessment schedule which will generate annually sufficient revenue to pay, or has otherwise provided sufficient assurances that it will pay, the principal of and interest on the municipal bond or other debt instrument that evidences the loan made by the Bank to the municipality under subsection E(1) of this rule and to pay reasonably anticipated costs of operating and maintaining the financed Project and the system of which it is a part, if applicable;

(b) Dedicated Revenue. The Eligible Applicant certifies to the Bank that it has created a dedicated source of revenue, which may constitute general revenues of the Eligible Applicant through a general obligation pledge of the applicant, for repayment of the loan;

(c) Eligible. The Eligible Applicant and the Project to be financed by the proceeds of the loan have been designated by the Department as eligible to participate in a construction program funded wholly or in part by the State and from the proceeds of the revolving loan fund, in accordance with subsection C(7);

(d) Department Certification. The Department certifies to the Bank that the loan eligibility priority established under 30-A M.R.S. §6006-A(3) entitles the applicant to immediate financing or assistance under subsection C(7) of this Chapter, and

(e) Prior to the release of funds for construction, the Eligible Applicant shall certify that it has secured all permits, licenses and approvals necessary to construct the improvements to be financed by the loan.

Building Phase

1. Awarding Construction Contracts. The Eligible Applicant shall be responsible for assuring that all procedures and legal requirements are observed in advertising for bids, Request for Qualifications, and Request for Proposals, and in awarding the construction contract. The text of the construction contract shall not vary from the text of the copy submitted to the Department. The Department may approve the award of construction contracts using any of the four delivery methods outlined below in Subsections F(1)(a)-(c). 1. Design-Bid-Build (DBB) Contracts: 1. A DBB Contract shall be competitively bid; 2. Prior to advertising, the Eligible Applicant shall submits to the Department the Plans and Specifications approved in accordance with subsection D(3) of this rule (relating to approval of Plans and Specifications); and 3. Submittals for Contract Award for DBB Contracts. Prior to contract award, the Eligible Applicant shall submit for approval to the Department the following documents: 1. A tabulation of all bids received and an explanation for any rejected bids or otherwise disqualified bidders; 2. The proposed low bid proposal; 3. A certification that all required acquisitions, leases, easements, right-of-way, relocations, (both voluntary and involuntary) have been obtained for the Project to be built; 4. Documentation of MBE/WBE efforts by the proposed low bid contractor, if applicable; 5. A notice of intent to award; 6. Evidence of public advertising; and 7. A Project budget. 2. Construction Management At-Risk (CMAR) and Progressive Design-Build (PDB) Contracts (Phase 1 and Phase 2) (This section applies to both delivery methods): 1. Phase 1: CMAR and PDB Selection Phase: 1. The CMAR firm or the PDB firm is selected through a Qualifications Based Selection (QBS) process; 2. Prior to advertising for the Request For Qualifications (RFQ), the Eligible Applicant shall submit for approval to the Department:

For PDB: A preliminary scope of work for the PDB firm and a detailed description of the Project goals and objectives; or

For CMAR: Plans and Specifications (generally not more than 10-30% complete) in accordance with subsection D(3); and

The RFQ.

• • • 1. Submittals for Award of Construction Management At-Risk and Progressive Design-Build Contracts. Prior to contract award, the Eligible Applicant shall submit for approval to the Department the following documents:

A certification that all required acquisitions, leases, easements, right-of-way, relocations, (both voluntary and involuntary) have been obtained for the Project to be built;

A tabulation of the firms that responded to the RFQ and the Eligible Applicant’s scoring of them in the evaluation process;

The selected firm’s proposal;

A notice of intent to award;

Evidence of public advertising; and

A Project budget.

• • 1. Phase 2: Construction Phase 1. Construction trade subcontracted packages are competitively bid by subcontractors (typically pre-qualified). The contracted CMAR or PDB firm may bid on trade packages; 2. Prior to advertising of construction trade subcontract packages, the Eligible Applicant shall submits to the Department the Plans and Specifications (generally not more than 60% complete) approved in accordance with subsection D(3) of this rule (relating to approval of Plans and Specifications); and 3. Submittals for Award of Phase 2 CMAR or PDB Contract (or Contract Amendment). Prior to contract (or contract amendment) award, the Eligible Applicant shall submit for approval to the Department the following items;

A tabulation of all construction trade subcontract proposals received and an explanation for any rejected proposals or otherwise disqualified bidders;

A notice of intent to award;

Evidence of public advertising; and

A Project budget.

• • • 1. Prior to each phase of the construction, the Eligible Applicant shall submit to the Department the final Plans and Specifications, upon completion by the PDB firm or the engineer of record for a CMAR Project. 2. During the construction phase, the selected CMAR or PDB firm will document its MBE/WBE efforts and submit its compliance plan to the Department for approval. 3. The Eligible Applicant shall submit for approval to the Department the firm fixed price or if applicable, all CMAR guaranteed maximum price proposals. 1. Fixed Price Design-Build (FPDB) Contracts: 1. The Fixed Price Design-Build firm is selected through a Request for Proposal (RFP) process. This may be conducted in either a single step (combined RFQ/RFP) or a two-step process where a RFQ is used to pre-qualify firms for proposals; 2. Prior to advertising for the RFP, the Eligible Applicant shall submit for approval to the Department: 1. Preliminary Plans and Specifications (generally not more than 10-30% complete) in accordance with subsection D(3); and 2. The RFP, which must contain a cost component. The weight of the cost component in the evaluation process is specific to the Project and is established by the Eligible Applicant. 3. Submittals for Contract Award for FPDB contract. Prior to contract award, the Eligible Applicant shall submit for approval to the Department the following documents: 1. A certification that all required acquisitions, leases, easements, right-of-way, relocations, (both voluntary and involuntary) have been obtained for the Project to be built; 2. A tabulation of the firms that responded to the RFP and the Eligible Applicant’s scoring for them in the evaluation process; 3. The selected firm’s proposal; 4. A notice of intent to award; 5. Evidence of public advertising; and 6. A Project budget. 4. Prior to each phase of the construction, the Eligible Applicant shall submit to the Department the final Plans and Specifications, upon completion by the FPDB firm. 5. During the Construction Phase, the selected FPDB firm will document its MBE/WBE efforts and submit its compliance plan to the Department for approval.

(d) Executed Documents. Within 15 days of contract signing, the Eligible Applicant shall submit to the Department a copy of the executed documents containing the executed contract agreement, executed bonds, insurance certificates, act of assurance, wage rates, notice to proceed and any other documents required by subsection D(2) of this Chapter (relating to Plans and Specifications).

2. Force Account and Non-Competitive Procurement

(a) Force Account. All significant elements of the Project will be performed with skilled personnel hired through one of the four construction delivery methods, F(1)(a)-(c). However, the Department may approve the use of Force Account for design, inspection and/or construction when the Eligible Applicant demonstrates that it possesses the necessary competence required to accomplish such work and that the work can be accomplished more economically by the use of the Force Account method, or emergency circumstances dictate its use.

(b) Competitive Bidding will not be required for direct Eligible Applicant purchases for proprietary equipment and for sole source procurement with prior Department approval. The Eligible Applicant must justify the purchase of proprietary equipment and demonstrate a compelling need for sole source procurement, such as matching existing equipment, to obtain Department approval.

3. Inspection During Construction. After the construction contract is awarded, the Eligible Applicant shall provide for adequate inspection of the Project and require his/her assurance that the work is being performed in a satisfactory manner in accordance with the approved Plans and Specifications, approved alterations, and in accordance with sound engineering principles and building practices. The Department is authorized to inspect the Project at any time during construction in order to assure that Plans and Specifications are being followed and that the Project is being built in accordance with sound engineering principles and building practices. Such inspection, however, shall never subject the State of Maine to any liability or action for damages. The Department shall notify the Eligible Applicant and the Project Engineer of any variances from the approved Plans and Specifications. Upon notification, the Eligible Applicant and the Project Engineer shall immediately initiate any necessary corrective action.

4. Audits. The Department is authorized to and may conduct engineering audits. The Bank is authorized to and may conduct financial and program audits of every Project that is financed in whole or in part by SRF funds. Each recipient of Financial Assistance from the Bank shall provide the Bank with annual audited financial statements prepared by a professional accountant or accounting firm. For purposes of this section, the following definitions are applicable:

(a) Financial audit. A review of all files for historical background for the Project, a visit to the Project offices or site to gather sufficient information to perform a detailed review of documents which substantiate the Project expense, a tabulation of expenses, and the issuance of an audit report establishing that expenses financed from the fund are or are not in conformance with terms and provisions of loan documents.

(b) Engineering audit. A physical inspection of the Project to analyze the Project and compare it with the approved Plans and Specifications, and the issuance of an inspection report which finds the Project in compliance with the Plans and Specifications or which outlines any variances from the construction contract and approved Plans and Specifications and which recommends corrective action.

(c) Program audit. A review of all files and records to determine and ensure compliance with Title VI of the FWPCA in order to be eligible for and comply with the terms of any Financial Assistance provided by the Bank.

5. Alterations in Approved Plans and Specifications. If, after the Department approves the Plans and Specifications, it becomes apparent that changes are necessary, a change order and justification must be submitted to the Department for review and approval. Any change in previously approved Plans and Specifications may not alter the basic purpose or effect of a Project. When possible, such a change order must be submitted well in advance of the proposed alteration. The Department must receive a written copy of all change orders. If there is immediate danger to life or property, tentative approval of change orders may be secured via telephone and confirmed by letter. A request for a change order should contain sufficient information, including plans or drawings and cost estimates for review of the proposal. After approval of the proposed alterations, copies of the approved change order must be forwarded to the Project Engineer. If a proposed change order would exceed 50% of the cost of the original contract, the work must be put out to bid as a separate contract.

6. Contractor Bankruptcy. In the event of a contractor bankruptcy, any agreements regarding any settlement proposed to be entered into with the bonding company (other than a bonding company serving as general contractor or fully bonding another contractor acting as their agent) must be submitted for approval by the Department. All Project contractors must be bonded. The Eligible Applicant is responsible for assuring that all procedural and legal requirements are observed in advertising for bids and awarding a construction contract.

7. Building Phase Submittals. During the building phase of the Project, the Eligible Applicant shall submit or perform the following:

(a) User Charge System and Sewer Use Ordinance. Prior to placing a Treatment Works into operation, if applicable, the Eligible Applicant shall adopt its user charge system and sewer use ordinance and submit a copy of each for the Department’s approval. Further, the loan recipient shall implement the user charge system for the useful life of the Project;

(b) Operation and Maintenance Manual. For new Treatment Works or major upgrades, a final operation and maintenance manual will be submitted for the Department's approval prior to placing the Treatment Works or major upgrades into operation;

(c) As Built Drawings. A complete set of as-built drawings will be submitted to the owner upon completion of all construction;

(d) Substantial Completion and Initiation of Operation Dates. Certificates of Substantial Completion and notification of Initiation of Operation dates shall be submitted to the Department upon completion of Project construction; and

(e) Other Submittals. Any other Building phase submittals required as part of the loan documents shall be submitted to the Department for its approval.

8. Progress Payments. Disbursements from the Construction Fund established by the Bank require approval by the Department and the Bank. Certified requests for payment may be submitted monthly, or less frequently for small contracts, on forms provided by the Department. Upon approval by the Department, the request will be forwarded to the Bank to authorize progress payments from the SRF Construction Fund for the Project and in turn to the designated account established by the applicant.

9. Retainage. Prior to Substantial Completion, progress payments will be made in an amount equal to the percentage indicated below but, in each case, less the aggregate of payments previously made and less such amounts as the Project Engineer may determine or the Eligible Applicant may withhold, including but not limited to liquidated damages:

(a) 95 percent of work completed (with the balance being retainage); and

(b) 95 percent of cost of materials and equipment not incorporated in the work (with the balance being retainage).

Upon Substantial Completion, the Eligible Applicant shall pay an amount sufficient to increase total payments to the contractor to 98 percent of the work completed, less such amounts as the Project Engineer shall determine in accordance with the specifications. The remaining 2 percent retainage may be held for one year after Substantial Completion and retained by the Bank. This provision may be waived on Projects co-funded with other funding agencies whose retainage policies conflict, on Projects with interim financing or refinancing, or on a case by case basis when the Eligible Applicant presents a compelling case against this provision.

10. Claims or Disputes. All claims or disputes between the owner and the contractor must be settled in accordance with general and supplementary conditions required by the Department and made part of the Plans and Specifications.

11. Documents. All documents provided to either the Bank or the Department must be available to both the Bank and the Department.

G. Post Building Phase

1. Responsibilities of Eligible Applicant. After the satisfactory completion of the Project, the Eligible Applicant shall be held accountable by the Department for the continuing validity of all of the Eligible Applicant’s representations and assurances. To facilitate continuing cooperation and to enable the Department to protect the State's investment and the public interest, the following provisions must be observed.

(a) Department Inspections. The Department is authorized to inspect the Project and the records of operation and maintenance of the Project at any time. If the Department finds that the Project is being improperly or inadequately operated and maintained to the extent that the purposes of the Project are not being properly fulfilled or that the integrity of the State's investment is being endangered, the Department must require the applicant to take corrective action.

(b) Operation and Maintenance. The Department or the Bank may request certified copies of all minutes, operating budgets, monthly operating statements, contracts, leases, deeds, audit reports, and other documents concerning the operation and maintenance of the Project.

(c) Fund Accounts. The Eligible Applicant shall maintain debt service fund accounts and other fund accounts related to the SRF debt in accordance with standards set forth by the Bank.

(d) Mitigation Measures. Eligible Applicants required to implement mitigation measures as a result of the environmental review process shall continue to implement those measures, if applicable.

2. Final Accounting. Upon completion of the Project performance period, a final accounting will be made to the Bank in accordance with subsection C(4)(e)(iii) of this rule (relating to required legal data).

H. References to Federal Regulations. Portions of this rule refer to federal regulations of the United States Environmental Protection Agency (EPA). Unless otherwise specified, the federal regulations referenced are those regulations effective as of June 10, 2014, as they appear in volume 40 of the code of Federal Regulations (CFR). Copies are available from the US Government Printing Office, 732 North Capitol Street, NW, Washington DC 20401.

AUTHORITY: 30-A M.R.S.A. §5959

EFFECTIVE DATE: October 27, 1990

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

AMENDED: May 5, 2007 – filing 2007-172 and 173 (a joint chapter of the Department of Environmental Protection and the Maine Municipal Bond Bank)

AMENDED: April 7, 2009 - filing 2009-154 and 155 (EMERGENCY - a joint chapter of the Department of Environmental Protection and the Maine Municipal Bond Bank)

AMENDED: July 6, 2009 - filing 2009-266 (both agencies - a joint chapter of the Department of Environmental Protection and the Maine Municipal Bond Bank)

AMENDED: April 3, 2019 - filing 2019-059 and 060 (both agencies - a joint chapter of the Department of Environmental Protection and the Maine Municipal Bond Bank)

94-388 State Civil Service Appeals Board

Chapter 1 Rules of Practice and Procedure

Code Me. R. 94-388 Ch. 1 Rules of Practice and Procedure {#sec-94-388-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-388 Ch. 1}

SUMMARY: This chapter establishes rules of practice and procedure in proceedings before the State Civil Service Appeals Board.

Applicability

These rules govern all practice and procedure in proceedings before the State Civil Service Appeals Board (“CSAB”) under applicable laws of the State of Maine, unless otherwise directed by the CSAB. Procedures not specifically addressed by these rules shall be governed by the Maine Administrative Procedure Act, 5 M.R.S. §§ 8001 et seq., and 5 M.R.S.§§ 7081-7085.

Conflict with Statute or Constitution

These rules shall be construed, wherever possible, consistently with applicable statutory and constitutional authority. Where a conflict exists, statutory or constitutional authority shall prevail over these rules.

Meetings, Public Proceedings and Deliberations

Except for matters which may be the subject of executive session as provided in 1 M.R.S. § 405, all meetings, public proceedings and deliberative sessions of the CSAB shall be open to the public. Public notice shall be provided as required by 1 M.R.S. § 406.

CSAB Organization and Quorum

In accordance with 5 M.R.S. § 7081, the chair of the CSAB is appointed by the Governor. The chair shall serve as the presiding officer with the powers set forth in 5 M.R.S. § 9062. The CSAB may, in its discretion, elect a vice-chair, who may temporarily assume the responsibilities of the chair during such time as the chair is not able to act, for reasons of illness, disqualification, or other circumstance making it impracticable for the chair to act. In such event, the vice-chair of the CSAB shall serve as presiding officer. In the event the vice-chair is disqualified or it becomes impracticable for the vice-chair to serve as presiding officer, the CSAB may appoint a substitute presiding officer.

The CSAB may, in its sole discretion, hold hearings and make decisions with only a majority of the CSAB members participating, in the event the entire CSAB is unavailable.

CSAB Record of Proceedings

Decisions

Every decision of the CSAB shall be in writing. The CSAB’s written decision shall be issued within 30 working days after the hearing on the dispute is concluded, unless the parties agree that an extension of the time limit should be allowed. A copy of each decision shall be maintained by the CSAB.

Deliberative Sessions

Staff assigned to the CSAB shall ensure that a record is kept of the date, time, and place of each deliberative session, the CSAB members in attendance, and all votes. This may be done through the maintenance of an audio, video, or other electronic recording.

Practice before the CSAB

Attorneys

Any attorney duly admitted to practice as an attorney in the State of Maine, any attorney admitted to practice in another state who has entered a limited appearance as authorized by the CSAB, any party acting pro se, or any authorized officer, employee or representative of a party, subject to the limitations of Title 4 M.R.S. § 807(1)-(3), in any hearing, action or proceeding is authorized to appear on behalf of parties before the CSAB. In order to facilitate the efficient processing of any proceeding, the chair of the CSAB may require the appearance of counsel on behalf of any party.

Non-Attorneys

All authorized officers, employees or other representatives of parties who are not duly admitted to practice as attorneys in the State of Maine are expected, as a condition of representation, to be familiar with applicable statutes and rules, and to abide by the Maine Rules of Professional Conduct for attorneys 3.1, 3.2, 3.3, 3.4, 3.5, and 3.7. Failure of a non-attorney representative to abide by these rules may result in appropriate sanctions, including temporary or permanent bar from appearing in a representative capacity before the CSAB.

Entry of Appearance

Any attorney or authorized officer, employee or representative of a party who is authorized to represent a party pursuant to Section 6(A), 6(B) or 6(D) in any hearing, action, or proceeding must enter a notice of appearance with the clerk of the CSAB prior to participating in any hearing, action, or proceeding before the CSAB.

Representation before the CSAB.

• • 1. Any partnership may be represented by any of its members or a duly authorized representative, subject to the limitations of Title 4 M.R.S. § 807(1)-(3). 2. Any interested party may be represented by an attorney-at-law meeting the qualifications set forth in subsection 6(A) of this Rule. 3. A state or other governmental or quasi-governmental agency may be represented by a duly authorized representative, subject to the limitations of Title 4 M.R.S. § 807(1)-(3). 4. The CSAB may, in its discretion, refuse to allow any person to represent others in any proceeding before it who persists in unethical conduct or who intentionally and repeatedly fails to observe the provisions of 5 M.R.S. §§ 7081-7085, these rules or proper instructions of the chair or duly authorized substitute presiding officer.

Appeals to the CSAB

Individual Grievances and Disputes Involving Individual Classified and Unclassified Employees

Pursuant to 5 M.R.S. § 7082(4), the CSAB is authorized to mediate the final settlement of grievances and disputes between individual state employees, both classified and unclassified, who are excluded from collective bargaining, and their respective state agency appointing authority. The decision of the CSAB is final and binding.

Procedural Requirements for CSAB Resolution of Grievance or Dispute

The CSAB procedure for resolution of grievances and disputes is available to eligible employees who have timely complied with the following procedural requirements pursuant to 5 M.R.S. § 7083:

• • 1. The employee aggrieved or their representative, or both, shall have attempted to adjust the dispute through oral communication with the employee’s immediate supervisor within 7 working days of the time that the employee is aware of the grieveable incident. The immediate supervisor is then required to render an oral decision to the employee within 3 working days. 2. If the employee is dissatisfied with the oral decision of their immediate supervisor, they or their representative, or both, may, before the end of the 10^th working day following the day of the oral decision, present the grievance to their supervisor again, this time in written form. The supervisor is then required to make their decision in writing and present it to the employee within 10 working days. 3. If the employee is dissatisfied with the supervisor’s written decision, they or their representative, or both, then may, before the end of the 20^th working day following receipt of the decision, appeal in writing to the department head. The department head shall meet with the employee or their designated representative, or both, within 20 working days of receipt of the employee’s notice of dissatisfaction and attempt to adjust the dispute. Within 5 working days, the department head shall render a decision in writing to the aggrieved employee and their representative. 4. If the classified employee is dissatisfied with the written decision following the meeting with the department head, they may appeal in writing to the State Human Resources Officer within 7 working days of meeting with the department head. The officer shall, within 10 working days reply in writing to the aggrieved employee, their representative and the department head involved stating their decision, based on the Civil Service Law and rules. 5. In the event the grievance shall not have been satisfactorily adjusted within the time limits in those sections, the dispute may be submitted to the CSAB within 10 working days following receipt of the officer’s written decision. 6. Any grievance or dispute submitted to the CSAB pursuant to 5 M.R.S. § 7083 shall include copies of the decision of the State Human Resources Officer and copies of the appointing authority’s written decisions regarding the employee’s attempts to adjust the grievance as outlined subsections 7(B)(1-5) of this rule.

Extension of Time Limit

The chair of the CSAB may extend any time limit specified in Section 6(B)(1)-(4), upon written application of either party on condition the application is submitted within the time provided in the applicable step. Failure of an employee to pursue a grievance within prescribed time limits shall constitute an acceptance of the last response by the department. Failure of the department to respond within the stipulated time limits provided for in the applicable step shall constitute an automatic waiver of that step and the employee may proceed to the next step as outlined in subsections7(B)(1)-(4).

Appeals of Decisions of the Bureau of Human Resources Regarding Classification, Allocation, or Reallocation of Positions in the Classified Service

Pursuant to 5 M.R.S. § 7082(5), except as otherwise provided by a governing bargaining agreement, the CSAB may hear appeals by an employee or appointing authority aggrieved by the determination of the State Human Resources Officer concerning the classification of positions, the allocation of new positions, or the reallocation of existing positions in the classified service. Any appeal must be made within 30 days after receipt of written notice of the determination from the State Human Resources Officer. Appeals of inaction by the State Human Resources Officer regarding a request for classification of positions, the allocation of new positions, or the reallocation of existing positions in the classified service or the unclassified service must be filed within 10 days after the expiration of the 25 days allotted for the processing of such requests by the State Human Resources Officer. Any appeal of a decision of the State Human Resources Officer regarding classification, allocation, or reallocation of positions in the classified service shall include a copy of the decision from which the appeal is taken. In the case of an appeal of inaction by the State Human Resources Officer, the appeal shall include a copy of the request made to the State Human Resources Officer. The employee or appointing authority, or their representatives shall be afforded a public hearing before the CSAB. The CSAB shall examine and review the appeal, and, upon the vote of at least 3 of its members, make changes in such classification, allocation, or reallocation as may be just and equitable.

Parties to Proceedings before the CSAB

All hearings, whether of individual or public concern, shall include the following parties:

The employee or appointing authority requesting the appeal of a decision;

In the case of an employee requesting an appeal, the appointing authority that made the decision under appeal; in the case of an appointing authority requesting an appeal, the employee who is the subject of the decision under appeal;

The State Human Resources Officer or designated representative(s) of the officer;

Persons who establish entitlement to intervene as a party as determined by the CSAB, pursuant to subsection 9(R)(2) of this Rule.

Adjudicatory Proceedings: General Provisions

Notice of Proceedings

Notice of hearing shall be given as follows: By regular mail to the person or persons whose legal rights, duties, or privileges are at issue, sufficiently in advance of the hearing date to afford an adequate opportunity to prepare and submit evidence and argument.

In any proceeding of the CSAB, deemed by the CSAB, to involve the determination of issues of substantial public interest, notice shall be given to the public sufficiently in advance of the determination to afford interested persons an adequate opportunity to prepare and submit evidence and argument, to petition for intervention, to request notification of hearings, and to request a hearing, if so desired.

All notices of hearing shall contain the following:

1. A statement of legal authority and jurisdiction under which the proceeding is being conducted;
2. A reference to the particular substantive statutory and rule provisions involved;
3. A short and plain statement of the nature and purpose of the proceeding and of the matters asserted;
4. A statement of the time and place of the hearing;
5. A statement of the manner and time within which evidence and argument may be submitted to the CSAB for consideration.
6. Notice that when the appealing party fails to appear at the hearing, the CSAB may make informal disposition of the proceeding by default pursuant to Section 9(B) of these Rules.

Disposition without Full Hearing

• • 1. The CSAB may make informal disposition of any adjudicatory proceeding by default when the appealing party fails to appear at the scheduled hearing, provided notice of the consequences of such failure to appear has been given said party. Any such default may be set aside by the CSAB for good cause shown. The procedure for good cause hearings is as follows:

1. Upon written request setting forth the reasons for failing to appear, CSAB may provide a good cause hearing to the appealing party that failed to appear at the hearing. If the CSAB determines that good cause exists, it will conduct a hearing on the underlying substantive issues.
2. Upon written request setting forth the reasons for failing to appear, the CSAB may provide a good cause hearing to the non-appealing party that failed to appear. If the CSAB determines that good cause exists, it will conduct a hearing on the underlying substantive issues.
3. If it is decided, upon the reasons set forth in the written request and/or immediately upon completion of a good cause hearing, that a party did not have good cause for its nonappearance, no evidence will be taken on the substantive issues, which will have been rendered moot. - 1. The CSAB may limit the issues to be heard or vary any procedure prescribed by these rules or the Maine Administrative Procedure Act if the parties and the CSAB agree to such limitation or variation, or if no prejudice to any party will result.

C. Ex Parte Communications; Separation of Functions

• • 1. In any adjudicatory proceeding, no CSAB member shall communicate directly or indirectly, in connection with any issue of fact, law or procedure, with any party or other persons legally interested in the outcome of the proceeding, except upon notice and opportunity for all parties to participate. 2. This subsection shall not prohibit any CSAB member from:

1. Communicating in any respect with other members of the CSAB; or

Consultation with the Office of the Attorney General or duly authorized outside counsel or consultants who have not participated and will not participate in the CSAB proceeding in an advocate capacity.

Opportunity to be Heard

The opportunity for hearing shall be afforded without undue delay.

Unless limited by agreement under subsection (B)(2) of this section or unless otherwise limited by the CSAB to prevent repetition or unreasonable delay in proceedings, every party shall have the right to present evidence and arguments on all issues and at any hearing to call and examine witnesses and to make oral cross-examination of any person present and testifying.

Sequestration of Witnesses

All witnesses present, not including any interested party and their designated representative who have not yet testified in the proceeding before the CSAB must be sequestered. Witnesses who have testified but who may be recalled to testify further may be sequestered at the request of any party or upon the initiative of the CSAB.

Evidence

• • 1. The CSAB need not observe the rules of evidence observed by the courts but shall observe the rules of privilege recognized by law. 2. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The CSAB may exclude irrelevant or unduly repetitious evidence. 3. All witnesses shall be sworn. 4. Subject to these requirements, the CSAB may, for the purposes of expediting adjudicatory proceedings, require the prefiling of all or part of the testimony of any witness in written form. Every such witness shall be subject to oral cross-examination. 5. No sworn written evidence shall be admitted unless the author is available for cross-examination or subject to subpoena, except for good cause shown.

Order of Proceedings

The procedural order of the proceedings before the CSAB shall be as follows:

Opening statement by the grievant (or party requesting the appeal) except in cases involving dismissal or disciplinary action, in which case the state shall proceed first.

Opening statement by the opposing party.

Testimony on behalf of the grievant (or party requesting the appeal) except in cases involving dismissal or disciplinary action, in which case the testimony of witnesses on behalf of the state shall proceed first.

Testimony of witnesses on behalf of the opposing party.

Rebuttal testimony, if any, of the party who presented testimony first.

Closing statement by the grievant (or party requesting the appeal), except in cases involving dismissal or disciplinary action, in which case the closing statement by the state shall proceed first.

Closing statement by the opposing party

Rebuttal statement, if any, of the party who proceeded first.

The chair may alter the order of the proceedings whether on their own initiative or at the request of either party.

Examination of Witnesses

Witnesses shall be examined first by the party calling the witness, then cross-examined by the opposing party or parties, and then questioned by the CSAB at its discretion. Re-direct examination and re-cross examination shall be allowed in the discretion of the chair.

Burden of Proof

In cases involving dismissal or disciplinary action, the state shall have the burden of proving its case by a preponderance of the evidence. In all other cases, the party who filed the appeal with the CSAB shall have the burden of proof, by a preponderance of the evidence.

Continuance

All motions for continuance must be in writing and must be filed with the CSAB four days prior to the hearing date. Requests for continuance must be served on opposing parties or their representatives and shall include the reason for the request for continuance, and whether the opposing party agrees to the continuance.

Motions

All procedural motions related to the merits of the case shall be filed with the CSAB by the deadline established by the Pre-Hearing Order, if any, and in no event later than four days prior to the hearing date. Such motions shall include, but not be limited to the following: 1) request for continuance; 2) motion to dismiss on jurisdictional grounds, or 3) motion for disqualification of any CSAB member.

Official Notice

• • 1. The CSAB may take official notice of any facts of which judicial notice could be taken, and in addition may take official notice of general, technical or scientific matters within their specialized knowledge and of statutes, regulations and nonconfidential agency records. Parties shall be notified of the material so noticed, and they shall be afforded an opportunity to contest the substance or materiality of the facts noticed. 2. Facts officially noticed shall be included and indicated as such in the record. 3. Notwithstanding the foregoing, the CSAB may utilize their experience, technical competence and specialized knowledge in the evaluation of the evidence presented to them.

Record

• • 1. In all adjudicatory proceedings the CSAB shall make a record consisting of the following:

1. All applications, pleadings, motions, preliminary and interlocutory rulings and orders;

Evidence received or considered;

A statement of facts officially noticed;

Offers of proof, objections and rulings thereon;

Proposed findings and exceptions, if any;

The decisions of the appointing authority or its designee at each stage of the grievance proceeding, and the decision of the State Human Resources Officer or designee;

All staff memoranda submitted to the CSAB by staff of the Bureau of Human Resources in connection with their consideration of the case, except memoranda from the Office of the Attorney General or other duly authorized counsel.

CSAB hearings shall be recorded in a form susceptible to transcription. Portions of the record as required and specified in subsection (M)(1) of this section may be included in the recording. The Board shall not provide a transcript of the proceedings. In the event a party to the proceedings wishes to record or transcribe all or a portion of the proceedings, the recording and transcription shall be at the expense of the party making the request and shall be arranged by the party requesting the recording and transcription.

The CSAB shall make a copy of the record, including recordings made pursuant to subsection (M))(2) of this section, available at the office of the Clerk of the CSAB, Burton Cross Office Building, 222 Sewall Street, Augusta, Maine 04330, for inspection by any person during normal business hours; and shall make copies of the record, copies of recordings or transcriptions of recordings available to any person for a reasonable fee. Notwithstanding the provisions of this subsection, CSAB shall withhold, obliterate or otherwise prevent the dissemination of any portions of the record which are made confidential by State or federal statute, but shall do so in the least restrictive manner feasible. All decisions of the CSAB, including the record of the proceedings, shall be kept on file for a period of 45 years.

All material, including records, reports and documents in the possession of the CSAB, of which it desires to avail itself as evidence in making a decision, shall be offered and made part of the record, and no other factual information or evidence shall be considered in rendering a decision.

Documentary evidence may be incorporated in the record by reference when materials so incorporated are made available for examination by the parties before being received in evidence.

Subpoenas

• • 1. In any adjudicatory proceeding, any party shall be entitled as of right to the issuance of a subpoena in the name of the CSAB, as appropriate, to require the attendance and testimony of witnesses and the production of any evidence relating to any issue of fact in the proceedings. 2. Authorized subpoenas shall be issued in accordance with the following:

The form of the subpoena shall adhere, insofar as practicable, to the form used in civil cases before the courts. Witnesses shall be subpoenaed within the territorial limits and in the same manner as witnesses in civil cases before the courts unless another territory or manner is provided by law. Subpoenas may be served by certified mail, return receipt requested, and also by first class mail. If circumstances require, the subpoena shall be served personally on the witness, according to the Maine Rules of Civil Procedure.

Witnesses subpoenaed for any hearing before the CSAB shall be paid witness and mileage fees by the party requesting the subpoena in accordance with the following schedule:

$10.00 for each day's attendance and $0.22 for each mile traveled between the witness' residence and the hearing location.

The subpoena shall show on its face the name and address of the party at whose request it was issued.

Any witness subpoenaed may petition the CSAB to vacate or modify a subpoena issued in its name. The CSAB shall give prompt notice to the party who requested issuance of the subpoena. After such investigation as the CSAB considers appropriate, it may grant the petition in whole or in part upon a finding that the testimony or the evidence whose production is required does not relate with reasonable directness to any matter in question, or that a subpoena for the attendance of a witness or the production of evidence is unreasonable or oppressive or has not been issued a reasonable period in advance of the time when the evidence is requested.

Pursuant to Title 5 M.R.S. § 9060(1)(D) failure to comply with a subpoena lawfully issued and not revoked or modified shall be punishable as for contempt of court.

Decisions

• • 1. Every decision of the CSAB made at the conclusion of an adjudicatory proceeding shall be in writing and shall include findings of fact sufficient to apprise the parties and any interested member of the public of the basis for the decision. A copy of the decision shall be delivered or promptly mailed to each party to the proceeding or their representative of record. Written notice of the party's rights to review of the decision by the courts, and of the action required and the time within which such action must be taken in order to exercise the right of review or appeal, shall be given to each party with the decision. 2. The CSAB shall maintain a record of the vote of each member of the CSAB with respect to the CSAB decision.

Disqualifications; Duties; Reports; Conflicts of Interest.

• • 1. Whenever a CSAB member is disqualified or it becomes impracticable for them to continue the hearing, the remaining CSAB members may continue with the hearing; provided that there is a quorum, and further provided that, if it is shown that substantial prejudice to any party will thereby result, the remaining CSAB members shall commence the hearing anew. 2. It shall be the duty of the chair as presiding officer to: 1. Administer oaths and affirmations; 2. Rule on the admissibility of evidence; 3. Regulate the course of the hearing, set the time and place for continued hearings, and fix the time for filing of evidence, briefs and other written submissions; and 4. Take other action authorized by statute or these rules.

In the event that the presiding officer prepares any report or proposed findings, the report or findings shall be in writing. A copy of the report or findings shall be provided to each party and an opportunity shall be provided for a response or exceptions to be filed by each party.

Hearings shall be conducted in an impartial manner. Upon the filing in good faith by a party of a timely charge of bias or personal or financial interest, direct or indirect, of a CSAB member or presiding officer in the proceeding requesting that that person disqualify themself, that person shall determine the matter as part of the record.

Q. Remote Participation.

In accordance with 1 M.R.S. § 403-B and the CSAB’s Remote Participation in Public Proceedings Policy (adopted September 28, 2023) (“Remote Participation Policy”), the CSAB may allow public proceedings, including hearings, to be conducted by remote means using synchronous telephonic or video technology which allows simultaneous reception and exchange of information.

While it is the expectation that all members of the CSAB will be physically present for public proceedings at the public meeting location, being physically present is not always practicable. In addition, the CSAB may meet solely by remote means if an emergency or urgent situation requires that all members of the body meet only by remote methods. In those circumstances, public attendance may be restricted to remote access only at the public proceeding.

The procedures for remote participation in CSAB public proceedings shall be in accordance with 1 M.R.S. § 403-B, and the CSAB Remote Participation Policy.

A member of the CSAB who participates remotely in a CSAB proceeding is present for the purposes of a quorum and voting.

R. Appeals Involving Classification, Allocation or Reallocation Decisions of the Bureau of Human Resources

In appeals of a decision concerning the classification of positions, the allocation of new positions or the reallocation of existing positions which decision is known to have a direct and substantial impact on several other positions, or when an appeal is filed on behalf of a group of employees with respect to their several positions, the appeal filed shall be considered of substantial public interest and public notice of the hearing shall be made in accordance with Section 9(A)(2) of this Rule.

Any person may establish entitlement to intervene as a party to a particular proceeding involving a classification, allocation, or reallocation decision by submitting a timely application to intervene which demonstrates an interest on the basis that the proceeding to be held is, or is expected to be, of direct and substantial importance to their class of employment. Interest claimed shall be established under the following criteria:

Facts and circumstances provided by application make evident a direct and consequential involvement on the basis of present or anticipated employment in a class of position within the organizational unit or units of the agency affected by the appeal; or

Facts and circumstances provided by application make evident a direct and consequential involvement on the basis of employment in a class of position which is or may be assigned to the same (or related) occupational grouping as that addressed by the appeal.

Application to Intervene

Applications to intervene in appeals involving a classification, allocation, or reallocation decision must be in writing and received by the CSAB at least 14 days prior to the hearing date and must contain the following information: 1) the name of the person, persons, or class of persons requesting to intervene; 2) reference the particular hearing at which intervention status is requested; 3) the facts and circumstances which support the application to intervene and which satisfy the standards for intervention outlined in section 9(R)(2) of this Rule.

Testimony

Testimony or documentary evidence offered by any party with respect to a classification, allocation, or reallocation appeal is expected to provide facts and circumstances to:

Comparison of job duties referenced by the class specification to which the position is currently allocated within the class specification to which the appeal is directed;

Documentation which supports a new and different classification consistent with the present classification plan;

Changes in organizational structure and/or job duties since the position in question was last allocated.

PREHEARING PRACTICE FOR ADJUDICATORY PROCEEDINGS

Procedural Order and Prehearing Conferences

Upon receipt of the appeal, the chair may issue a procedural order for the purposes of resolving jurisdictional issues, setting procedures and scheduling, or other preliminary matters. The chair may, upon written notice to all parties and proposed intervenors, hold a prehearing conference for the purposes of ruling on jurisdictional issues, pending motions, setting procedures and scheduling, formulating or simplifying the issues, arranging for the exchange of proposed exhibits, limiting the number of witnesses setting for the scope of testimony, providing for the procedure to be followed at the hearing, identifying proposed witnesses, discussing the status of stipulations, if any, and for any other purposes that may expedite the orderly conduct and disposition of the proceeding.

Prehearing Memoranda

The chair may require the parties to file prehearing memoranda and to serve a copy of the memoranda on all parties of record.

Prehearing Order

The chair may issue an order based upon the prehearing conference or the prehearing memoranda which will control the course of subsequent proceedings. Modification of the order may be allowed at the hearing by the chair for good cause or to avoid significant prejudice.

History

• STATUTORY AUTHORITY: 5 M.R.S. § 7082(2).
• EFFECTIVE DATE (NEW): May 25, 2025 – filing 2025-117
• EFFECTIVE DATE (NEW): APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-391 State Board of Property Tax Review

Chapter 1 Rules of Practice and Procedure in Appeals Before the Board

Code Me. R. 94-391 Ch. 1 Rules of Practice and Procedure in Appeals Before the State Board of Property Tax Review {#sec-94-391-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-391 Ch. 1}

1. DEFINITIONS

A. Assessing Authority. The assessors, municipal officer(s), chief assessor, or the State Tax Assessor, in the case of the unorganized territory, who renders, or fails to render a decision as required by statute which decision or failure is appealable to this Board.

B. Board. "Board" means the State Board of Property Tax Review as established under 36 M.R.S.§§ 271-273.

C. Municipal Valuation Appeal. An appeal to the Board relating to cases arising under 36 M.R.S. §§ 272 & 272-A.

D. Party. A party is any person participating in an appeal before the Board, as either a petitioner or a respondent, as those terms are defined below:

(1) Petitioner. Any person who has filed an appeal with the Board relating to those provisions of law enumerated at 36 M.R.S. §271(2)(A).

(2) Respondent. The municipal tax assessor, chief assessor or the State Tax Assessor, as appropriate. In all tax abatement proceedings the Petitioner shall designate as Respondents both the appropriate assessing authority and the municipality, where applicable, in which the subject property is located.

E. Person. "Person" means any individual, partnership, corporation, governmental entity, association, or public or private organization of any character.

F. Presiding Officer. "Presiding Officer" means the Board member designated by the Board Chair to preside over an appeal hearing.

G. Secretary. "Secretary" means the Secretary of the State Board of Property Tax Review.

H. Tax Abatement Appeal. An appeal to the Board relating to those provisions of law enumerated in 36 M.R.S. §271(2)(A)(1)-(4) & (6)-(7).

I. Tax Deferral Appeal. An appeal to the Board related to cases arising under 36 M.R.S. § 6251(6).

2. SCOPE AND CONSTRUCTION OF RULES

A. Procedure Governed. These Rules shall govern all practice and procedure before the Board under applicable laws of the State of Maine, except as otherwise provided by statute or rule. When the circumstances of a particular proceeding require more detailed procedures than those set forth in these rules, additional procedures may be specified by the Board by order applicable to that particular proceeding.

B. Liberal Construction. These Rules shall be liberally construed to secure just, speedy, and economic determination of all appeals presented to the Board.

C. Deviation from Rules. In special cases, where good cause appears, the Board may permit or order deviation from these Rules insofar as it may find compliance therewith to be impracticable, inexpedient, or unnecessary. Nothing in this section shall permit the Board to deviate from any procedural requirement or deadline that is expressly set forth in statute without provision for waiver or modification.

3. GENERAL PROVISIONS

A. Office. The Office of the Board is located at the Williams Pavilion/Elkins Building, 19 Elkins Lane, Augusta, ME 04333-0134.

B. Communications. All written communications with the Board shall be sent to the Secretary of the Board at the following address: 49 State House Station, Augusta, Maine 04333-0049.

C. Time Calculations. Computation of any period of time prescribed or allowed by these Rules, by order of the Board, or by any applicable statute, shall be determined in accordance with 1M.R.S.§71(12).

D. Enlargement of Time. When by these rules or by order issued by the Board, an act is required or allowed to be done at, before, or within a specific time, the Board for cause shown may at any time, in its discretion, with or without request, motion or notice, order the period enlarged before the expiration of the period originally prescribed or as previously extended; time limits or periods that apply to other persons affected by the resulting change or delay will also be adjusted appropriately. Requests for enlargement of time which are filed after expiration of the period prescribed or as extended by previous order will be granted only in exceptional circumstances.

E. Size of Documents. All documents filed with the Board shall be printed or typewritten.

F. Filings. In filing papers with the Board as required or permitted by applicable statute, these rules or an order of the Board, the papers shall be deemed to be officially filed or received only when received by the Secretary of the Board during hours that the Board’s office is open. All written communications or documents relating to a proceeding to be brought or pending before the Board shall be addressed to the Secretary of the Board except as provided in Section 4. Acceptance of a document for filing does not constitute a determination that the contents of the document are sufficient for the purpose for which it is filed.

G. Service. Unless otherwise ordered, whenever a document is filed with the Board relating to a matter appealed to the Board, it shall at the same time be served on all parties in the matter.

H. Charges for Copies of Documents. A certified copy of the decision in a proceeding will be furnished by the Secretary free of charge to each party of record and the counsel of each party represented by counsel. Additional copies of a decision, or copies of other materials, will be furnished pursuant to the Freedom of Access Act, 1 M.R.S. §§ 400-414.

4. APPEALS

A. Tax Abatement Appeals. If the appropriate assessing authority refuses to make an abatement asked for, the applicant may apply in writing to the Board in accordance with 36 M.R.S. §§ 583, 843, 844, 1118, 1140-A or 2865 within sixty (60) days after receipt of the assessing authority’s decision, or after the abatement application is deemed to have been denied.

(1) Petition. All tax abatement appeals to the Board shall be initiated by the filing of a written petition at the office of the Board. Said petition shall be directed to the Chair of the Board, and shall set forth the following:

(a) Name(s) and addresses of Petitioner(s).

(b) Name(s) and addresses of Respondent(s).

(c) A general description of the property which is the subject of the appeal. If the property includes real estate, the description shall include the assessing authority’s Map and Lot Number.

(d) Year of disputed assessment.

(e) Assessed value for the property as originally determined by the assessing authority.

(f) Amount of any abatements previously granted by the assessing authority for the assessment in question.

(g) The valuation Petitioner alleges should have been placed on the property.

(h) A brief statement of all prior proceedings before the assessing authority concerning the disputed assessment.

(i) A brief statement of the factual basis for the Petitioner's tax abatement appeal.

(j) A brief statement of the legal grounds for the Petitioner's tax abatement appeal.

(2) Response to Petition. Within twenty (20) days after receiving notice of the filing of the petition with the Secretary, all named Respondents shall file a written response to the petition either affirming or denying the allegations contained therein. The written response shall also contain a brief statement as to the reasons for the denial of the requested abatement.

B. Municipal Valuation Appeals. If any municipality is aggrieved by the Bureau of Revenue Services’ determination of the municipality's equalized valuation or failure to meet minimum assessing standards, the municipality may appeal in accordance with 36 M.R.S. §§ 272(1) & 272-A(1) by filing a written notice of appeal within forty-five (45) days after receipt of the Bureau's determination. The notice of appeal shall be accompanied by an affidavit.

Notice of Appeal. The notice of appeal shall identify the municipality, the taxable period involved, the state valuation as determined by the Bureau of Revenue Services, and the state valuation proposed by the municipality. The notice shall be signed by a majority of the municipal officers.

(2) Affidavit. The appealing municipality must file with its notice of appeal an affidavit of the municipal officers stating the grounds for the appeal. The affidavit must be meaningful and specific. A mere statement that the state valuation is too high is not sufficient. If a municipality intends to compare its state valuation to neighboring towns or cities, the municipality should list those municipalities in the affidavit. In appeals from assessment quality and ratio decisions of the Bureau of Revenue Services, the municipality must set forth in specific terms the basis of the challenge to the determination.

B-1. Tax Deferral Appeals. If a taxpayer is aggrieved by the State Tax Assessor’s denial of a claim for deferral of homestead property taxes or disqualification from deferral of homestead property taxes, the taxpayer may appeal in accordance with 36 M.R.S. § 6251(6) by filing a written notice of appeal within thirty (30) days of notification of denial or disqualification by the State Tax Assessor.

C. Discovery. The Board shall have all authority granted under statute to obtain all necessary information available to enable the Board to conduct a proper hearing and to carry out its responsibilities under the law. Within fifteen (15) days of receipt of a written request for information, any party shall file all records, documents and files requested by the Board.

D. Pre-hearing Proceedings

(1) Pre-hearing Memoranda. Prior to any hearing before the Board, the Board may require each party to file a pre-hearing Memorandum. The Pre-hearing Memorandum will contain that information required by the Board to be determined on a case-by-case basis.

(2) Pre-hearing Conferences. The Presiding Officer may hold a pre-hearing conference with counsel and representatives for the parties, electronically, telephonically, or in person, before hearing for the purposes of formulating or simplifying the issues, obtaining admissions of fact and of documents which will avoid unnecessary proof, arranging for the exchange of proposed exhibits or prepared expert testimony, identifying witnesses, and obtaining from the parties estimates of time required for examining witnesses. The Presiding Officer may issue a procedural order limiting the number of witnesses and consolidating the examination of witnesses, providing for the procedure to be followed at the hearing, and requiring other actions that may expedite the orderly conduct and disposition of the proceeding.

(3) In the case of municipal valuation appeals , if the municipality intends to submit evidence at hearing such as sales-ratio studies, maps, etc., such evidence must be filed with the Board and served on the State Tax Assessor at their office in Augusta no later than fifteen (15) days prior to the hearing set by the Board. Such evidence will not be admissible unless the requirements of this rule are met. The State Tax Assessor shall make its complete file available to a municipality at least fifteen (15) days prior to the hearing.

E. Prefiled Testimony and Exhibits The Presiding Officer may require that the direct cases of the Petitioner and the Respondent and any rebuttal case of the Petitioner shall be presented in writing in accordance with this subsection, on a schedule prescribed by the Presiding Officer.

Form of Testimony Prefiled written testimony shall be double-spaced and shall include the line number of each line, in the left‑hand margin, except as otherwise permitted by the Presiding Officer. If the testimony is greater than 20 pages in length, a Table of Contents specifying each issue in the testimony shall be included. Each party may file with its prefiled testimony and exhibits an opening statement containing a narrative summary of the testimony and exhibits.

Corrections/Supplements A witness must correct errors in the witness’s prefiled testimony and exhibits and, with consent of the Presiding Officer, may supplement prefiled testimony if further facts become available following the original filing, by filing amendments thereto through corrective or supplemental prefiled testimony as soon as possible after the receipt of correct or additional information. Copies of corrected or supplemental prefiled testimony shall be filed with the Board and served on other parties in the same manner as original testimony. With the consent of the Presiding Officer, and if it is impractical to file corrective prefiled testimony, a witness may be permitted to make minor corrections to prefiled testimony on the witness stand.

Presentation of Prefiled Testimony The prefiled testimony, sponsored by the witness under oath and subject to cross‑examination, may be offered as an exhibit with the same effect as if such testimony had been given orally. Redirect examination will be conducted orally and will be limited to matters raised during cross‑examination. Testimony and exhibits may be offered either following the witness's adoption of the prefiled testimony or identification of exhibit or at close of examination of the witness. Objection to prefiled testimony or exhibits may be made at the time the testimony or exhibits are offered or prior thereto.

F. Subpoenas. In any proceeding before the Board, to the extent authorized under 36 M.R.S. § 271(2)(D) and 5 M.R.S. §9060, any party upon application to the Board shall be entitled as of right to the issuance of subpoenas in the name of the Board to require the attendance and testimony of witnesses and the production of any records, documents or files relating to any issue of fact in the proceeding. Such subpoenas may be signed and issued by the Chair and/or the Secretary. Subpoenas shall be issued in a form prescribed by the Board. Witnesses shall be subpoenaed only within the territorial limits and in the same manner as witnesses in civil cases before the courts, unless another territory or manner is provided by law. Witnesses subpoenaed shall be paid the same fees for attendance and travel as in civil cases before the courts. Such fees shall be paid by the party requesting the subpoena.

G. Hearings. Upon receipt of an appeal by the Board, the Chair of the Board shall select five (5) members of the Board to hear the appeal. Three of the five members shall constitute a quorum. The selection of the members shall be based upon geographic convenience and availability. The Chair, with the assistance of the Secretary, shall take all necessary action to notify all parties of the time, date and place of the hearing.

(1) Quorum. Three (3) members of the Board shall constitute a quorum to hear and act on appeals to the Board.

(2) Presiding Officer. The Chair shall designate one member of the Board sitting on the case to serve as Presiding Officer for the appeal hearing.

(3) Order of Procedure. The Presiding Officer will open the hearing and make a concise statement of its scope and purposes. Appearances then will be entered on the record. The Presiding Officer shall inform the parties of the manner in which an appeal of any decision resulting from the proceeding may be taken. Parties may then make opening statements.

(4) Party Rights. Unless limited by stipulation or order under Paragraph 4(D), every party shall have the right to present evidence and arguments on all issues, and at any hearing to call and examine witnesses and to make oral cross-examination of any person present and testifying.

(5) Continuances. Changes in the time and place of the first session of the hearing in any proceeding may be requested in writing of the Presiding Officer reasonably in advance of the time set. The Presiding Officer may in the Presiding Officer’s discretion grant or deny the request. The Presiding Officer or Chair may change the time and place of any previously scheduled hearing. Notice of continuance shall be forwarded to each party by the Secretary.

(6) Withdrawal of Exhibits. No exhibit received in evidence may be withdrawn except with the approval of the Presiding Officer at the hearing.

(7) Briefs. The Presiding Officer may require that parties file briefs within such time as the Presiding Officer may order. The parties shall indicate on the record at or before the close of testimony whether they desire to file briefs. Briefs which contain a statement of evidence or of facts claimed to be established by evidence shall include a reference to the specific portion of the record in which such evidence or facts may be found. When the transcript of the hearing is available, reference to oral testimony shall be by page number when possible. The Board may allow oral arguments in lieu of or in addition to briefs.

(8) Oral Argument. Oral argument may be given before the Board at the conclusion of the evidence, or at a time and place to be fixed by the Presiding Officer.

(9) Rules of Evidence. The Maine Rules of Evidence need not be followed in hearings before the Board. All questions as to the admission of evidence and rules of privilege shall be determined in accordance with 5 M.R.S. §9057(1) and (2).

(10) Witnesses. All witnesses shall swear that their testimony is wholly truthful or shall make a solemn affirmation to that effect in lieu thereof.

(11) Written Evidence; Exception. No sworn written evidence shall be admitted into evidence unless the author is available for cross-examination or subject to subpoena, except for good cause shown.

(12) Late-filed Exhibits

(a) The Board may in its discretion allow documentary evidence unavailable at the time of hearing to be marked as a late-filed exhibit and offered as evidence after the close of the hearing, if

(i) the evidence proposed to be submitted is described at the hearing with sufficient particularity to apprise all parties of its content and purpose; and

(ii) the parties stipulate that the evidence may be offered as a late-filed exhibit, or the Presiding Officer so orders.

(b) Unless some other date or dates are specified by the Presiding Officer, late-filed exhibits may be offered no later than ten (10) days after the last day upon which a hearing is held in the proceeding, or five (5) days before the first date upon which briefs must be submitted, whichever is earlier. A copy of each late-filed exhibit must be provided to every party at the same time that it is offered.

(c) The stipulation of the parties or order of the Presiding Officer to allow the offering of a late-filed exhibit shall not constitute admission of that exhibit into evidence. Any party may, within five (5) days after the offer of any late-filed exhibit, submit written objections to the late-filed exhibit and may request an opportunity to conduct cross-examination or to present rebuttal evidence in connection with any late-filed exhibit, unless that party has plainly and specifically waived its rights to do so.

(d) No less than five (5) days after the offer, the Presiding Officer shall rule on the admissibility of each late-filed exhibit and include the ruling in the record of the proceeding. If a timely and valid request for opportunity to cross-examine or to present rebuttal has been made, the Presiding Officer may, in the Presiding Officer’s discretion, either:

(i) exclude the exhibits; or

(ii) schedule a supplementary hearing to receive further evidence and rule on admissibility of the exhibit.

H. Record

(1) Record. In any appeal of a decision of the Board, the Secretary shall compile and preserve a record which meet the requirements of 5 M.R.S.A. §9059 and also consist of:

(a) All petitions, responsive pleadings, motions and rulings and orders.

(b) Evidence received.

(c) The decision of the Board; and

(d) All memoranda, including briefs, submitted to the members of the Board in connection with their consideration of the appeal.

(2) Hearings Recorded. The Board shall record all hearings in a form susceptible to transcription as required by 5 M.R.S. §9059(2).

(3) Availability of Record. As required by 5 M.R.S. §9059(3) the Secretary shall make a copy of the record available for inspection by any person during normal business hours; and the Secretary shall make copies of the record, including copies of recordings or transcriptions of recordings, available to any person at actual cost. A deposit equal to the approximate cost of transcription shall be paid in advance by the requesting party. Notwithstanding the provisions of this subsection, the Board shall withhold, obliterate, or otherwise prevent the dissemination of any portions of the record which are made confidential by state or federal statute, but shall do so in the least restrictive manner feasible.

(4) Decision Based on the Record. All material including records, reports, and documents shall be considered in rendering a decision only if such information is in the record as evidence.

(5) Documentary Evidence. Documentary evidence may be incorporated in the record by reference when the materials so incorporated are made available for examination by the parties before being received in evidence.

(6) Decision. Every Board decision made at the conclusion of a hearing shall be in accordance with 5 M.R.S. §9061 and shall be in writing or stated in the record, and shall include findings of fact sufficient to apprise the parties and any interested member of the public of the basis for the decision. A copy of the decision shall be delivered or promptly mailed to each party to the proceeding or the party’s representative of record. Written notice of the party's right to appeal from the Board's decision to the Superior Court shall be given to each party with the decision.

I. Withdrawal or Dismissal

(1) Voluntary Withdrawal or Dismissal. Proceedings may be dismissed by the Petitioner without order of the Board by filing a stipulation of dismissal. The stipulation must be signed by both the Petitioner and Respondent or their legal counsel.

(2) Involuntary Dismissal. The Chair may enter an order of involuntary dismissal for want of prosecution at any time more than two (2) years after the last docket entry showing any action taken therein. Prior to entering an order for involuntary dismissal, the Chair shall give notice to the parties of the Chair’s intent to enter an order for involuntary dismissal for lack of prosecution. The parties shall respond with evidence of good cause within fourteen (14) days after notice of the Chair’s intent to enter an order of involuntary dismissal. Failure to timely respond to the notice or failure to show good cause shall result in involuntary dismissal.

History

• STATUTORY AUTHORITY: 36 M.R.S. § 271(2)(C)
• EFFECTIVE DATE: December 15, 1986 – filing 86-452
• EFFECTIVE DATE (ELECTRONIC CONVERSION): June 2, 1997
• AMENDED: October 12, 2024 – filing 2024-227
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-409 Maine Indian Tribal-State Commission

Chapter 201 Fishing on Waters under Jurisdiction of Maine Indian Tribal-State Commission

Code Me. R. 94-409 Ch. 201 Fishing on Waters under Jurisdiction of Maine Indian Tribal-State Commission {#sec-94-409-ch.-201 omnilex-key=us-me-regs-official--dept-independent-agencies--94-409 Ch. 201}

page

Summary Statement 1

Section 1: Overview 1

A. Purpose

B. Authority

Section 2: General Provisions 2

A. Applicability

B. Definitions

C. General Provisions Applying to Both Open Water and Ice Fishing

D. General Provisions Applying to Open Water Fishing

E. General Provisions Applying to Ice Fishing

Section 3: Passamaquoddy Waters 8

A. Passamaquoddy Waters Subject to General Provisions

B. Passamaquoddy Waters Subject to Special Provisions

Section 4: Penobscot Waters 11

A. Penobscot Waters Subject to General Provisions

B. Penobscot Waters Subject to Special Provisions

Summary Statement

This chapter regulates fishing on waters within Passamaquoddy and Penobscot Territory that are under the exclusive jurisdiction of the Maine Indian Tribal-State Commission, as specified in the Maine Indian Claims Settlement of 1980 (30 MRSA §6207(3)).

Section 1: Overview

A. Purpose

This chapter regulates fishing on certain inland waters within Passamaquoddy and Penobscot Territory pursuant to the Maine Indian Claims Settlement Act of 1980.

B. Authority

1. Exclusive Authority to Promulgate Rules. Pursuant to 30 MRSA §6207(3), the Maine Indian Tribal-State Commission has exclusive authority to promulgate fishing rules on any:

a. Ponds. Any pond with 50% or more of shoreline within Passamaquoddy or Penobscot Territory, except those specified in section 1(B)(2).

b. Rivers, Brooks, or Streams. Section of a river, brook, or stream:

i. Both sides of which are within Passamaquoddy or Penobscot Territory; or

ii. One side of which is within Passamaquoddy or Penobscot Territory for a continuous length of 1/2 mile or more.

2. Authority to Enforce Rules. Pursuant to 30 MRSA §6207(1) and §6210:

a. Exclusive Tribal Authority. The Passamaquoddy Tribe and the Penobscot Nation have exclusive authority within their respective Territories to enact and enforce ordinances regarding the taking of fish on any pond of 10 acres or less located wholly within Indian Territory.

b. Shared Authority. Passamaquoddy and Penobscot law enforcement officers have the authority within their respective Territories and state and county law enforcement officers have the authority within both Indian Territories to enforce this chapter.

Section 2: General Provisions

A. Applicability

Unless otherwise provided in Sections 3 and 4, these general provisions in section 2 apply to fishing on MITSC waters.

B. Definitions

Unless the context indicates otherwise, the following terms have the following meanings as used in this chapter.

1. Artificial Lure. The term "artificial lure" means any fishing lure constructed by humans as an imitation or substitute for natural bait or fish forage. It includes but is not limited to artificial flies; spinners; spoons; poppers; plugs; jigs; and plastic, rubber, or other artificial imitations of natural bait. An "artificial lures only" rule prohibits the use of any live, dead or chemically preserved natural or organic bait or food.

2. Brook Trout. The term "brook trout" includes both brook trout and splake.

3. To Fish. The term "to fish" means to take, catch, kill, molest, or destroy, or attempt to take, catch, kill, molest, or destroy any fish.

4. Fly. The term "fly" means a single pointed hook dressed with feathers, hair, thread, tinsel, or any similar material to which no additional weight, hook, spinner, spoon, or similar device is added.

5. Fly Fishing. The term "fly fishing" means casting upon water and retrieving in the usual and ordinary manner not more that 3 unbaited artificial flies individually attached to a line to which no extra weight has been added. It is unlawful to troll a fly in waters restricted to fly fishing only.

6. Hook. The term "hook" means a single fishhook constructed with 1, 2, or 3 points.

7. MITSC. The term "MITSC" means Maine Indian Tribal-State Commission.

8. MITSC Waters. The term "MITSC waters" means all waters within Passamaquoddy and/or Penobscot Territory that are above the rise and fall of the tide and are subject to regulation by the Maine Indian Tribal-State Commission pursuant to 30 MRSA §6207(3).

9. Open Season. The term "open season" means the time during which it is lawful to fish for or possess any fish, as specified and limited by rule.

10. Salmon. The term "salmon", when used alone, means landlocked salmon.

11. Set Line. The term "set line" means a line extending into the water and rigged to catch fish that has one end secured to the shore or to a fixed or buoyant object and that is not personally attended.

12. Single-Baited Hook. The term "single-baited hook" means up to 3 hooks attached together or in tandem to the end of a line and baited as a single apparatus designed to catch only one fish at a time.

13. Snagging. The term "snagging" means to fish by manipulating a hook or hooks in such a manner as to pierce or snag the fish in a part of the body other than the mouth.

14. Togue. The term "togue" means lake trout.

15. Tributary. The term "tributary" means a brook, stream, or river flowing directly or indirectly into a lake, pond, or another brook, stream, or river. A lake or a great pond shall not be construed to mean a tributary. The tributary to a great pond shall not be considered a tributary to the outlet of that great pond.

16. Troll. The term "troll" means to fish by trailing a line rigged to catch fish through or over the water behind a watercraft being propelled by mechanical, wind, or manual power.

17. Trout. When used alone, the term "trout" includes only brook trout, brown trout, rainbow trout, sunapee trout, blueback trout, and splake.

18. Water Thoroughfare. The term "water thoroughfare" means a waterway, without flowage, connecting two bodies of water.

C. General Provisions Applying to Both Open Water and Ice Fishing

1. Bag Limits. In addition to bag limits spelled out elsewhere in this chapter, the following provisions apply:

a. Whenever any waters have a special bag limit, no person shall possess more than one dayÕs bag limit taken from those waters.

b. In waters where the bag limit on black bass has been removed by special rule, the season on black bass and the method of fishing for them shall be the same as for trout and salmon.

2. Bait. The following provisions apply to bait:

a. Advance Baiting. It is unlawful to deposit any meat, bones, dead fish, or other food material for the purpose of luring fish.

b. Eggs as Bait. The eggs of Atlantic sea run salmon, landlocked salmon, and other species that occur naturally in Maine may not be used as bait in fishing. However, commercially prepared eggs from species that do not occur naturally in Maine may be used for bait.

c. Live Fish as Bait. It is unlawful to use or possess as bait, dead or alive, any species of fish other than the following: smelt, lake chub, eastern silvery minnow, golden shiner, emerald shiner, bridle shiner, common shiner, blacknose shiner, spottail shiner, northern redbelly dace, finescale dace, fathead minnow, blacknose dace, longnose dace, creek chub, fallfish, pearl dace, banded killifish, mummichog, longnose sucker, white sucker, creek chubsucker, American eel, and blackchin shiner.

d. Taking and Sale of Bait. State laws and rules regulating the taking and sale of bait apply to MITSC waters.

3. Closed Season. It is unlawful to fish for any fish during the closed season on that species or to possess any fish taken during the closed season on that species.

4. Closed Waters. It is unlawful to fish at any time in waters which are closed to fishing.

5. Explosive, Poisonous, or Stupefying Substance. It is unlawful to take or destroy any fish by use of an explosive, poisonous, or stupefying substance.

6. Failure to Label Fish. It is unlawful to keep black bass, salmon, togue, or trout at any sporting camp, hotel, or public lodging place without attaching to the fish the name and address of the person who caught the fish.

7. Fish Hatcheries. Except as otherwise provided by special rule, all waters within 200 feet of any fish hatchery or rearing station are closed to fishing at all times.

8. Fishway Dams. The area within 150 feet of any dam in which a fishway is located is closed to fishing. This does not restrict the taking of alewives and smelts in accordance with laws regulating marine resources.

9. Illegal Fishing. Except as otherwise specifically provided, it is unlawful to fish other than by the use of the single baited hook and line, artificial flies, artificial lures, and spinners, except that smelts may be taken in accordance with rules promulgated with regard to the taking of smelts. Tandem flies are permitted when trolling on open waters.

10. Illegal Implements. Except as otherwise specifically provided it is unlawful to fish with fish spawn, grapnel, spear, spear gun, trawl, weir, gaff, seine, gill net, trap or set lines or electronic, sonic or battery powered devices (electronic fish finders are legal).

11. Legal Length. The term "legal length" is the total length of a fish measured from the tip of the snout to the tip of the tail with the lobes of the tail squeezed together.

12. Marking Fish. Except for staff of the Passamaquoddy Tribe, Penobscot Nation, and Maine Department of Inland Fisheries and Wildlife who are conducting biological studies, it is unlawful for any person to tag, fin clip, or otherwise mark any fish to be released alive into MITSC waters without the expressed written consent of MITSC.

13. Number, Amount, Weight, or Size Limits. It is unlawful to fish for or possess fish in violation of the number, amount, weight, or size limits of any rule adopted by MITSC relating to fishing on inland waters.

14. Possession Limit. At any time, a person may not possess more fish than one daily bag limit.

15. Release or Kill. Any legal fish, except baitfish and smelts, taken from inland waters must be released alive immediately into the water from which it was taken or must be killed at once. Any fish that is killed becomes part of the daily bag limit.

16. Sale of Certain Fish Prohibited. It is unlawful to buy or sell, directly or indirectly, any landlocked salmon, trout, togue, black bass, white perch, or pickerel.

17. Smelts. Smelts may be taken at any time by use of a dip net, in the usual and ordinary way, from inland waters or portions of inland waters which are naturally free of ice, and where the taking of smelts is not prohibited by rule.

18. Snagging. Except as otherwise provided in section 2(D)(7)(d), it is unlawful to fish for any fish by snagging.

19. Species Identification. Unless fish are being prepared for immediate cooking, it is unlawful to possess or transport fish dressed in such a manner that the species of the fish cannot be identified or to alter the length of salmon, trout, togue, and black bass. Smoking does not constitute cooking.

20. Thoroughfares and Bogs. The general fishing provisions in section 2 which govern lakes and ponds also apply to thoroughfares and bogs.

D. General Provisions Applying to Open Water Fishing

1. Season. The open water fishing season is from April 1 through September 30. All dates are inclusive. However, it is unlawful to fish into inland waters while positioned on ice. Waters must be naturally free of ice.

2. Method on Rivers, Brooks, and Streams. From August 16 through September 30, all rivers, brooks, and streams are restricted to the use of artificial lures only.

3. Two Line Restriction. It is unlawful to fish with more than 2 lines at any one time during the open water season.

4. Night Fishing. Except as otherwise provided by special rule, all waters are open to fishing at night during the open water season.

5. Alewives. A licensed fisherman may take one bushel of alewives daily from MITSC waters by use of a dip net or single hook and line for consumption by himself or members of his family, except that alewives may not be taken from waters where a municipality or individual has been granted exclusive rights under laws regulating marine resources.

6. Salmon, Trout, and Togue. The following provisions apply to salmon, trout, and togue.

a. Bag Limit. The daily bag limit is 5 fish in the aggregate. This may include not more than 2 salmon, 2 rainbow trout, 2 togue, 2 brown trout, and 5 brook trout, except from August 16 through September 30 on rivers, brooks, and streams, the daily bag limit may include in the aggregate not more than 1 salmon, trout, or togue.

b. Length. On lakes and ponds, the minimum legal lengths are 14 inches for salmon, 18 inches for togue, 12 inches for brown trout, 12 inches for rainbow trout, and 6 inches for brook trout. On rivers, brooks, and streams, the minimum legal lengths are 14 inches for salmon, 18 inches for togue, 6 inches for brown trout, 6 inches for rainbow trout, and 6 inches for brook trout.

6. Bass. The following provisions apply to largemouth and smallmouth bass.

a. Bag Limit. From April 1 through June 20, the daily bag limit is 1 fish. From June 21 through September 30, the daily bag limit is 3 fish, only 1 of which may exceed 14 inches.

b. Length. The minimum legal length limit for bass is 12 inches in Franklin, Penobscot, and Somerset Counties and 10 inches in Hancock, Piscataquis, and Washington Counties.

c. Method. From April 1 through June 20, artificial lures only are permitted.

7. Other Species. The following provisions apply to other species of fish.

a. Pickerel. For pickerel, the daily bag limit is 10. There is no length limit.

b. Whitefish. For whitefish, the daily bag limit is 8. There is no length limit.

c. Smelts. For smelts, the daily bag limit is 2 quarts. There is no length limit.

d. Suckers. Any person who has a valid fishing license may take suckers between April 1 and June 30 from all rivers, brooks, and streams which are open to fishing by use of a hand spear, bow and arrow, or by snagging. If suckers are taken by bow and arrow, the arrow must have a barbed or pronged point and must be attached to the bow with a line.

e. No Limit. There are no bag limits or length restrictions on species not mentioned.

E. General Provisions Applying to Ice Fishing

1. Waters Closed. All MITSC waters are closed to ice fishing unless specifically opened by a special provision in section 3 or 4 of this chapter.

2. Five Line Restriction. Unless otherwise provided by rule, a person may fish through the ice with not more than 5 lines, all of which must be under the immediate supervision of the person who set them.

3. Night Fishing. Ice fishing at night (1/2 hour after sunset until 1/2 hour before sunrise) is prohibited except as provided by special rule.

4. Cusk Lines. All lines set at night for cusk must be visited at least once every hour by the person who set them.

5. Salmon, Trout, and Togue. The following provisions apply to ice fishing for salmon, trout, and togue.

a. Bag Limit. The daily bag limit is 5 fish in the aggregate. This may include not more than 2 salmon, 2 rainbow trout, 2 togue, 2 brown trout, and 5 brook trout.

b. Length. On lakes and ponds, the minimum legal lengths are 14 inches for salmon, 18 inches for togue, 12 inches for brown trout, 12 inches for rainbow trout, and 6 inches for brook trout. On rivers, brooks, and streams, the minimum legal lengths are 14 inches for salmon, 18 inches for togue, 6 inches for brown trout, 6 inches for rainbow trout, and 6 inches for brook trout.

6. Bass. The following provisions apply to ice fishing for bass, including largemouth and smallmouth bass.

a. Bag Limit. The bag daily bag limit is 1 fish.

b. Length. The minimum legal length limit is 12 inches, except that in Hancock, Piscataquis, and Washington Counties, the minimum legal length is 10 inches.

7. Other Species. The following provisions apply to other species of fish.

a. Pickerel. For pickerel, the daily bag limit is 10. There is no length limit.

b. Whitefish. For whitefish, the daily bag limit is 8. There is no length limit.

c. Smelts. For smelts, the daily bag limit is 2 quarts. There is no length limit.

d. No Limit. There are no bag limits or length restrictions on species not mentioned.

Section 3: Passamaquoddy Waters

A. Passamaquoddy Waters Subject to General Provisions

The following waters in Passamaquoddy Territory are subject to the general provisions specified in section 2 of this chapter.

1. T4 ND (Hancock County)

Middle Pistol Lake

Upper Pistol Lake

2. T3 ND (Hancock County)

Side Pistol Lake

3. Rivers, Brooks, and Streams

All rivers, brooks, and streams, unless otherwise indicated in section 3(B).

B. Passamaquoddy Waters Subject to Special Provisions

The following waters in Passamaquoddy Territory are subject to the special provisions listed in this section. Whenever these are different from the general provisions specified in section 2, the special provisions supersede the general provisions. All other applicable general provisions are also in effect for the waters listed in this section.

1. Ponds in Lowelltown Township, T1 R8 WBKP (Franklin County). The following special provisions apply to ponds in Lowelltown Township, including Clear Pond, Elaine Pond, Big Indian Pond, Little Indian Pond, Trout Pond, and Twin Island Ponds:

a. Bag Limit. The daily bag limit is 2 brook trout.

b. Length. The minimum legal length for brook trout is 10 inches.

2. Killman Pond, T4 ND (Hancock County):

a. Length. The minimum legal length for brook trout is 10 inches.

3. Middle Chain Lake and Upper Chain Lake, T4 ND (Hancock County):

a. Ice Fishing Permitted. These lakes are open to ice fishing for all fish except salmon, trout, togue, and bass from the time ice forms until December 31 and open to ice fishing for all fish from January 1 through March 31.

b. Bag Limit on Bass. During ice fishing season, the daily bag limit on bass is 2 fish.

4. Lower Pistol Lake, T3 ND (Hancock County):

a. Ice Fishing Permitted. The lake is open to ice fishing for all fish from January 1 through March 31.

b. Bag Limit on Bass. During ice fishing season, the daily bag limit on bass is 2 fish.

5. Little Fish Pond and Grassy Pond, Holeb Township, T6 R1 NBKP (Somerset County):

a. Bag Limit. The daily bag limit on brook trout is 2 fish.

b. Length. The minimum legal length for brook trout is 10 inches.

6. Fish Pond (aka Big Fish Pond) and thoroughfare/tributary upstream to Little Fish Pond and Grassy Pond, Holeb Township, T6 R1 NBKP (Somerset County):

a. Bag Limit. The daily bag limit on brook trout is 2 fish.

b. Length. The minimum legal length for brook trout is 14 inches.

c. Method. Fly fishing only is permitted.

Note: Pursuant to rules of the Maine Department of Inland Fisheries and Wildlife, the use of motors of over 10 horsepower is prohibited on Fish Pond.

7. Cape Horn Pond, Prentiss Township, T4 R4 NBKP (Somerset County):

a. Bag Limit. The daily bag limit on brook trout is 2 fish.

b. Length. The minimum legal length is 10 inches for brook trout.

c. Method. Fly fishing only is permitted.

8. Duncan Pond, Prentiss Township, T4 R4 NBKP (Somerset County):

a. Bag Limit. The daily bag limit on brook trout is 2 fish.

b. Length. The minimum legal length for brook trout is 10 inches.

c. Method. Artificial lures only are permitted.

d. Smelts. Duncan Pond and an unnamed inlet stream from Hall Pond will be closed to smelting in 1998 and every other year thereafter. The daily bag limit for smelts is one quart.

9. Hall Pond, Prentiss Township, T4 R4 NBKP (Somerset County):

a. Bag Limit. The daily bag limit on brook trout is 2 fish.

b. Length. The minimum legal length for brook trout is 10 inches.

c. Method. Fly fishing only is permitted.

10. Lower Welman Pond, Prentiss Township, T4 R4 NBKP (Somerset County):

a. Bag Limit. The daily bag limit on brook trout is 2 fish.

b. Length. The minimum legal length for brook trout is 10 inches.

c. Method. Artificial lures only are permitted.

11. South Branch Penobscot River, Prentiss Township, T4 R4 NBKP, and Hammond Township (Somerset County): The following special provisions apply to the South Branch Penobscot River located within Passamaquoddy Territory:

a. Bag Limit. From April 1 through August 15, the daily bag limit on trout is 2 fish. From August 16 through September 30, the daily bag limit on trout is 1 fish.

b. Length. From April 1 through August 15, the minimum legal length for trout is 6 inches, only one of which may exceed 12 inches. From August 16 through September 30, the minimum legal length is 6 inches.

c. Method. From August 16 through September 30, artificial lures only are permitted.

12. Grassy Pond, T19 MD BPP (Washington County):

a. Ice Fishing Permitted. This pond is open to ice fishing for all fish except salmon, trout, togue, and bass from the time ice forms until December 31 and open to ice fishing for all fish from January 1 through March 31.

b. Bag Limit on Bass. During ice fishing season, the daily bag limit on bass is 2 fish.

13. Lower Chain Lake, T5 ND BPP (Washington County):

a. Ice Fishing Permitted. This lake is open to ice fishing for all fish except salmon, trout, togue, and bass from the time ice forms until December 31 and open to ice fishing for all fish from January 1 through March 31.

b. Bag Limit on Bass. During ice fishing season, the daily bag limit for bass is 2 fish.

14. Sysladobsis Lake (Lower), T5 ND BPP (Washington County):

a. Ice Fishing Permitted. This lake is open to ice fishing for all fish from January 1 through March 31.

b. Bag Limit on Bass. During ice fishing season, the daily bag limit on bass is 2 fish.

15. Mill Privilege Lake, T5 R1 NBPP (Penobscot County):

a. Ice Fishing Permitted. This lake is open to ice fishing for all fish except salmon, trout, togue, and bass from the time ice forms until December 31 and open to ice fishing for all fish from January 1 through March 31.

b. Bag Limit on Bass. During ice fishing season, the daily bag limit on bass is 2 fish.

Section 4: Penobscot Waters

A. Penobscot Waters Subject to General Provisions

The following waters in Penobscot Territory are subject to the general provisions specified in section 2 of this rule, unless otherwise indicated in section 4(B).

1. T2&3 R9 NWP (Penobscot County)

Mattamiscontis Lake ice fishing is permitted; see section 4(B)(6)

Little Mattamiscontis Lake ice fishing is permitted; see also section 4(B)(6)

2. Rivers, Brooks, and Streams

All rivers, brooks, and streams, unless otherwise indicated in section 4(B).

B. Penobscot Waters Subject to Special Provisions

The following waters in Penobscot Territory are subject to the special provisions listed in this section. Whenever these are different from the general provisions specified in section 2, the special provisions supersede the general provisions. All other applicable general provisions are also in effect for the waters listed in this section.

1. Round Mountain Pond, Alder Stream Township, T2 R5 WBKP (Franklin County):

a. Season. The opening date of open water season is May 1.

b. Bag Limit. The daily bag limit is 2 trout.

c. Length. The minimum size limit on trout is 10 inches.

d. Method. Fly fishing only is permitted.

2. Alder Stream, Little Alder Stream, and Their Tributaries, Alder Stream Township, T2 R5 WBKP (Franklin County):

a. Method: Part of Alder Stream. The following special provisions apply on the part of Alder Stream from the confluence of Alder Stream and Little Alder Stream downstream to the Penobscot Territory boundary lines.

i. From April 1 through August 15, anglers age 15 and under may use single-pointed artificial lures and anglers age 16 and older are restricted to fly fishing only.

ii. From August 16 through September 30, all anglers are restricted to fly fishing only.

b. Method: Rest of Alder Stream, Little Alder Stream, and Tributaries. On all remaining sections of Alder Stream and its tributaries in Penobscot Territory, including Little Alder Stream, anglers are restricted to fly fishing only.

3. North Branch Dead River, Alder Stream Township, T2 R5 WBKP (Franklin County):

a. Method. Fly fishing only is permitted.

4. East Branch Lake, T2&3 R9 NWP (Penobscot County):

a. Season. From April 1 through June 20, the lake is closed to the taking of bass.

b. Bag Limit and Length. From June 21 through September 30, there is a daily limit on bass of 1 fish at a minimum legal length of 12 inches, except that all bass between 16 inches and 20 inches must immediately be released alive.

c. Ice Fishing. The lake is open to ice fishing from January 1 through March 31, except that the taking of bass is prohibited.

5. First Lake Mattagamon, T6 R8 WELS (Penobscot County):

a. Bag Limit. The daily bag limit is 2 trout.

b. Length. The minimum legal length for brook trout is 10 inches.

c. Ice Fishing. The lake is open to ice fishing for all fish from January 1 through March 31. In addition, ice fishing at night for cusk is permitted.

6. Mattamiscontis Lake and Little Mattamiscontis Lake, T2&3 R9 NWP (Penobscot County):

a. Ice Fishing. These lakes are open to ice fishing for all fish except salmon, trout, togue, and bass from the time ice forms until December 31, and are open to ice fishing for all fish from January 1 through March 31.

7. Mountain Catcher Pond, T6 R8 WELS (Penobscot County):

a. Bag Limit. The daily bag limit is 2 trout.

b. Length. The minimum legal length for brook trout is 10 inches.

EFFECTIVE DATE:

February 5, 1992 (as Chapter 200, “Fishing on Certain Waters in Penobscot Indian Territory”)

EFFECTIVE DATE (ELECTRONIC CONVERSION): October 8, 1996

REPEALED AND REPLACED:

December 20, 1997 (as Chapter 201, Fishing on Waters under Jurisdiction of Maine Indian Tribal-State Commission).

REPEALED AND REPLACED:

March 11, 1998 - in §2 (B): corrected spelling of “Welman” in 10; corrected “T3” to “T4” and added “and Hammond Township” in 11; corrected from “Washington” to “Penobscot” in 15.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-411 Maine Public Employees Retirement System (MainePERS)

Chapter 101 Earnable Compensation and Calculation of Average Final Compensation

Code Me. R. 94-411 Ch. 101 Earnable Compensation and Calculation of Average Final Compensation {#sec-94-411-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 101}

SUMMARY: This Chapter clarifies the definition of earnable compensation for the purpose of computing average final compensation when calculating benefits to be paid by the Maine Public Employees Retirement System.

SECTION 1. Definitions

All terms used in this chapter, unless the context otherwise indicates, shall have the same definition as in 5 M.R.S. §17001 inclusive.

For the purpose of this chapter, compensation for actual services rendered does not include any amount paid:

in lieu of fringe benefits;

as a retirement stipend, an incentive to retire, or as consideration for notice of planned retirement;

as a bonus;

from a sick leave bank;

as interest to an employee, including interest on retroactive wage increases or other settlements; or

which is not compensation for actual services rendered, or which is not paid at the time the actual services are rendered.

For the purpose of this chapter, the terms “sick leave” and “vacation leave” include accrued paid time off, provided that payment for the accrued paid time off is not otherwise excluded from the definition of earnable compensation.

SECTION 2. Calculations

For the purpose of calculating benefits payable to members, the Maine Public Employees Retirement System will determine average final compensation based upon the member’s earnable compensation during the three years of creditable service in Maine in which the member's earnable compensation is highest.

1. Payment for sick and/or vacation leave. For state employee and teacher members having at least 10 years of creditable service by July 1, 1993, and for participating local district members eligible pursuant to 5 M.R.S. §18356, earnable compensation may include payment for not more than 30 days of unused and accumulated or accrued sick and/or unused vacation leave. For purposes of this subsection, a day is the normal number of hours worked in a day by the employees in a given classification up to a maximum of eight (8) hours. If a member retires and is paid for unused sick leave or vacation leave, the gross amount paid for unused sick leave and vacation leave will be converted to the equivalent days at full salary and deducted from the total days of unused sick leave and vacation leave. To be included in earnable compensation, sick and vacation leave must meet the following requirements:

A. Sick leave must have been available to the member to be used in the ordinary course of employment on account of illness or accident, and must be in fact unused and accumulated or accrued as of the date on which the member's service to the employer ceases.

B. Vacation leave must have been available to the member to be used in the ordinary course of employment for vacation, and must in fact be unused as of the date on which the member’s service to the employer ceases.

C. Sick and vacation leave as described in paragraphs A and B must be so verified in records of the employer.

D. Payment for such leave must be made within a reasonable time, normally understood to be thirty (30) days after the date of the member's last termination before retirement. The applicable employer and member contributions must be made on the payment.

E. The policy or practice of making payments for such leave must be applied consistently by the employer to all of the employees in a given class.

F. The payments must not be excludable under section 1 of this rule.

2. Per diem rates for sick and/or vacation leave. Payment for unused and accumulated or accrued sick and/or unused vacation leave will be included in earnable compensation on the basis of the following per diem rates:

A. State and participating local district-employees other than school employees who are employed on a school-year basis. Divide the full-time equivalent applicable wage or salary by 260 days.

B. Public school teachers, excluding those to whom paragraph C or D applies, and school employees who are participating local district employees and who are employed on a school-year basis. Divide the full-time equivalent applicable wage or salary, exclusive of any additional amounts paid for administrative, supervisory or extracurricular activities or duties, by the number of days prescribed by the employer as full-time for employees in the same classification, typically 180 days.

C. Superintendents and other public school administrators, including teaching Principals, who are employed on a full-year basis. Divide the full-time equivalent applicable wage or salary by 260 days.

D. Public school administrators, including teaching Principals, who are employed on less than a full-year but more than the academic-year basis. Divide the full-time equivalent applicable wage or salary by 220 days.

3. Holiday pay. Earnable compensation shall include holiday pay provided it is paid as part of the payroll for the period during which the holiday occurred.

4. Payments to teachers for administrative, supervisory or extracurricular activities or duties. Payments made to members who meet the definition of "teacher" under 5 M.R.S, § 17001, sub-§42, for administrative, supervisory or extracurricular activities or duties may be included in earnable compensation, provided that:

A. The payments are paid as part of the payroll for the contract year within which the activities or duties are performed; and

B. Provided further that, in the case of a position to which 5 M.R.S., §17001, sub‑§42(B) applies, the position is considered to have as its principal function the introduction of new learning to students if it has as its purpose:

(1) to coach, advise, or supervise students engaged in extracurricular activities; or

(2) to coordinate, supervise or direct academic or extracurricular programs, except for a position the purpose of which is to provide or perform technical services with respect to machinery, or equipment of whatever nature; and

(3) to coach or advise teachers as part of a certification/ recertification program established pursuant to Maine statutes or rules of the Maine Department of Education.

Payments for service in such a position may be included in earnable compensation if the employer can document the purpose and duties of a position and that the member served in the position.

5. Arbitration awards, judgments, and written settlement agreements. Amounts paid pursuant to an arbitration award, judgment, or written settlement agreement that requires retroactive reclassification, reallocation, or reinstatement of the employee, or otherwise requires the payment of back pay, are considered to be “compensation for actual services rendered” and “paid at the time the actual services are rendered” if the arbitration award, judgment, or written settlement agreement resolves a bona fide dispute between the employee and employer and, based on the arbitration award, judgment, or written settlement agreement, the amounts paid are compensation for services that were rendered or would have been rendered absent employer misconduct or, in the case of a settlement agreement, alleged employer misconduct. Earnable compensation under this subsection will be allocated to the period when the services were rendered or would have been rendered.

History

• STATUTORY AUTHORITY: 5 M.R.S. §17103(4)
• EFFECTIVE DATE: September 1, 1985
• AMENDED: February 24, 1987
• AMENDED: August 11, 1987
• AMENDED: November 4, 1989
• AMENDED: April 17, 1990
• AMENDED: November 9, 1991
• AMENDED: March 18, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling and format.
• AMENDED: May 30, 2010 – filing 2010-209
• AMENDED: November 4, 2019 – filing 2019-187

Chapter 102 Qualification as a Full-Time Student

Code Me. R. 94-411 Ch. 102 Qualification as Full-Time Student {#sec-94-411-ch.-102 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 102}

SUMMARY: This Chapter implements the provisions in the Maine Public Employees Retirement System Statutes requiring the Board of Trustees to adopt such rules as are found necessary to define the requirements of a full-time student. This Chapter describes the circumstances under which a dependent child of a deceased member will be considered to be a full-time student and, therefore, eligible to receive survivor benefit payments.

Definitions

1. Educational Institution. “Educational institution” means a school (including a technical, trade or vocational school), community college, college, or university which meets any of the following conditions: 1. It is operated or directly supported by the United States, or by any State or local government or political subdivision thereof; or 2. It is approved by a State or accredited by a State-recognized or nationally recognized accrediting agency or body. ¶A nationally recognized accrediting body is an agency or body that has been determined to be such by the U.S. Department of Education. A state-recognized accrediting agency or body is an agency or body designated or recognized by a State as proper authority for accrediting schools, colleges, or universities as meeting educational standards. Approval by a State includes approval of a school, college, or university as an education institution, or of one or more of the school's, college's, or university's courses, by a State agency or subdivision of the state. This approval may be indirect, as, for example, if attendance at the school satisfies the State's compulsory education laws, or if the school has a tax exemption as a school, or if the school receives financial aid, loans or scholarship allowances
2. Full-time attendance. Full-time attendance means a student is at an educational institution and is carrying a subject load which is considered full-time for students under the institution's standards and practices. A student will not be considered in “full-time attendance" (1) if the student is enrolled in a community college, or university in a course of study of less than 13 school weeks' duration, or (2) if the student is enrolled in any other educational institution and either the course of study is less than 13 school weeks' duration or the scheduled attendance is at the rate of less than 20 hours a week. A student whose full-time attendance begins or ends in a month is in full-time attendance for that month.
3. Full-time Student

(1) An individual is deemed to be a full-time student for purposes of, 5 M.R.S.A §17001(18) while they are in full-time attendance at an educational institution.

(2) An individual is deemed to be a full-time student during any period of less than full-time attendance (including part-time attendance) at an educational institution if the period of less than full-time attendance is four consecutive calendar months or less, and the individual:

(a) Establishes they intend to be in full-time attendance at an educational institution in the month immediately following such period, or

(b) The individual is in full-time attendance at an educational institution in the month immediately following such period.

An individual will not be deemed a full-time student during any period of less than full-time attendance due to expulsion or suspension.

AUTHORITY: 5 M.R.S.A. § 17103(4)

EFFECTIVE DATE: JUL. 14, 1986

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996 EFFECTIVE DATE (ELECTRONIC CONVERSION): September 24, 1996

APAO ACCESSIBILITY CHECK: July 31, 2025

REPEALED AND REPLACED:

August 3, 2025 – filing 2025-156

Chapter 103 Qualified Domestic Relations Orders

Code Me. R. 94-411 Ch. 103 Qualified Domestic Relations Orders {#sec-94-411-ch.-103 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 103}

94-411 MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM Chapter 103: QUALIFIED DOMESTIC RELATIONS ORDERS

SUMMARY: This Chapter implements the provisions in the Maine Public Employees Retirement System statutes relating to qualified domestic relations orders (5 M.R.S. §§ 17059 to 17061) which provided the statutory authority for the retirement system to pay benefits to the alternate payee of a member or retiree when the right to such payment is established by a qualified domestic relations order. This Chapter provides the standards for such orders, procedures for their filing, and the procedures to be followed by the retirement system in reviewing and administering the statute.

SECTION 1. Definitions

Terms used in this chapter, unless the context otherwise indicates, shall have the same definitions as in 5 M.R.S. § 17001.

Benefits Payable With Respect to a Member or Retiree. "Benefits payable with respect to a member or retiree" means any payment made or required to be made to a member, retiree or beneficiary under 5 M.R.S., chapter 423, subchapter 5, chapter 425, subchapter 5, or chapter 427 and withdrawal of accumulated contributions, but excluding benefits payable under:

1. Section 17953, subsection 4;
2. Section 18003, with relation to dependent children;
3. Section 18553, subsection 4; and
4. Section 18603, with relation to dependent children.

SECTION 2. Information to Spouse

Upon receipt of an attested copy of the complaint for divorce and a written request which identifies the member or retiree by name and social security number and which states the date of the marriage, the retirement system will provide the spouse or former spouse of a member or retiree with the same information that would be provided to the member or retiree on the member's or retiree's account or benefits which is relevant to the spouse's or former spouse's interest in the member's or retiree's account or benefits.

SECTION 3. Payments by Maine Public Employees Retirement System

The retirement system shall make payments of death or retirement benefits or of refunded contributions only as directed by statutes and rules or by a qualified domestic relations order.

If benefits are payable pursuant to a qualified domestic relations order that meets the requirement of a domestic relations order as defined in section 414(p) of the Internal Revenue Code, then the applicable requirements of section 414(p) of the Internal Revenue Code will be followed by the retirement system.

SECTION 4. Submission of orders

A person who wishes to have the retirement system review a domestic relations order to establish whether it meets the requirements for a qualified domestic relations order must submit to the retirement system a written request for review and a copy of the domestic relations order. The request may be made either before or after the order has been entered by the court. The order will be reviewed as provided by section 5. If the order has been entered, it must have been certified by the clerk of the court that entered the order. Digitally signed certification will only be accepted where it complies with Maine law.

Subject to review and approval by the Board, the Chief Executive Officer will establish and may revise from time to time a filing fee for the processing and review of orders. The fee will be based on the time required for processing and review of orders, will be reasonable, and will not be set at a level which requires the retirement system's members and employers as a whole to subsidize the cost of processing and review. The fee in effect at the time an order is first submitted, whether before or after entry by the court, must be paid before the order will be processed and reviewed.

If a domestic relations order is submitted for review after it has been entered by the court and is thereafter amended with the intention that it be a qualified domestic relations order, the member or retiree or the alternate payee must submit a certified copy of the amended order to the retirement system. The retirement system shall review any amended order that it receives according to the same rules applicable to all other orders. A filing fee is not required with the submission of an amended order if the fee was paid with the initial submission of the order. If the review period exceeds 18 months and the domestic relations order (either as originally submitted or as subsequently revised) has not yet been approved, an additional filing fee is required for any review to continue, unless the delay in approval was caused by the retirement system. Digitally signed certification will only be accepted where it complies with Maine law.

SECTION 5. Review of Orders

The Chief Executive Officer shall review the order for compliance with the requirements imposed by 5 M.R.S. §17059 and this chapter. Upon completion of the review, The Chief Executive Officer shall notify the member or retiree and each alternate payee in writing of the determination of whether the order is or is not a qualified domestic relations order. For any order that is determined not to be a qualified domestic relations order, the notification must identify the provisions of 5 M.R.S. §17059 or this chapter that the order does not meet.

During any period, not to exceed 18 months, in which a domestic relations order is under review to determine whether it in a qualified domestic relations order or a determination that an order is not qualified is on appeal to the Board or to court, the retirement system will, in the manner provided by 5 M.R.S. §17059, sub-§§ 7, 8, 9, and 10, identify and

hold amounts that would have been paid to the alternate payee if the order had been determined to be a qualified domestic relations order and will pay those amounts during or after the period as therein provided.

SECTION 6. Qualified Domestic Relations Order Standards

The Chief Executive Officer will apply the requirements of 5 M.R.S. §17059 to determine whether an order is a qualified domestic relations order. The following provisions will also be used in making the determination:

The order must provide for all possible distributions of benefits by the retirement system for the member or retiree under plan provisions. This requirement shall be deemed to have been met by a provision that:

1. Awards to the alternate payee a specific or clearly determinable percentage, rather than an amount, of each distribution by the retirement system based on the member's account or retiree's benefit;
2. Awards a specific amount of a benefit, rather than a percentage, to an alternate payee as long as the determination that the order is a qualified domestic relations order is made subsequent to the member's retirement and the order also provides for a reduction of the amount awarded in the event that the benefits available to the retiree or member are reduced by law; or
3. Awards to the member or retiree, in accordance with plan provisions, all benefits payable with respect to a member or retiree not specifically awarded to the alternate payee.

The order must provide for reducing the amount awarded in the event of reduction of the benefit based on the age of the member, each reduction to be in proportion to the factors used to reduce the standard monthly benefit on the basis of the member's age below normal retirement age. This requirement shall be deemed to have been met if:

1. The order awards a percentage of whatever monthly benefit is payable after all elections have been made by the member, or in the event of death benefits, by the designated beneficiary;
2. The member or retiree has reached normal retirement age and, if a retiree, has retired without any reduction for early age retirement at the time of the determination as to whether the order is a qualified domestic relations order; or
3. The order reflects that the retiree is or will be receiving retirement benefits reduced for early age retirement and the award to the alternate payee has considered the reduced amount of the retiree's monthly benefit payments.

The order may not:

1. Purport to require the designation by the member or retiree of a particular person and the recipient of benefits in the event of a member's or retiree's death;
2. Purport to require the selection of a particular benefit payment plan or option or to limit the benefit payment plans or options from which the member or beneficiary may select;
3. Require any action on the part of the retirement system contrary to its governing laws or plan provisions other than the direct payment of the benefit awarded to an alternate payee or the direct payment of the benefit awarded to an alternate payee before the retirement of a member and when the payee reaches the member’s normal retirement age;
4. Make the award to the alternate payee an interest which is contingent on any condition other than those conditions resulting in the liability of the retirement system for payment under its plan provisions;
5. Purport to give to someone other than a member or retiree the right to designate a beneficiary or to choose any retirement plan or option available from the retirement system;
6. Attach a lien to any part of amounts payable with respect to a member or retiree;
7. Award an alternate payee a portion of the benefits payable with respect to a member or retiree under the retirement system and purport to require the retirement system to make a lump sum payment of the awarded portion of the benefits to the alternate payee that are not payable in a lump sum; or
8. Purport to require the retirement system, without action by the member, to terminate a member from membership or employment, to refund contributions, or to retire a member.

The retirement system will divide future benefit increases provided by statute or act of the Legislature between the member, retiree or beneficiary and the alternate payee in the same proportion that the benefits are divided.

An order shall specify the date of the marriage, if the alternate payee is the member's or retiree's spouse or former spouse.

SECTION 7. Payment Pursuant to Qualified Orders

If the order is determined to be a qualified domestic relations order, the retirement system shall, subject to the limitations of applicable statutes and this chapter, pay benefits in accordance with the order at the time benefits become payable to or in the case of contributions, are withdrawn by the member. Any determination that an order is a qualified domestic relations order is voidable or subject to modification if the retirement system determines that the provisions of the order have been changed or that circumstances relevant to the determination have changed.

SECTION 8. Orders Not Qualified

The Chief Executive Officer shall provide a written notice of any determination that an order is not a qualified domestic relations order, identifying the provisions of 5 M.R.S. §17059 or this chapter that the order does not meet.

SECTION 9. Appeal of Determination that Order is Not Qualified

A determination by the Chief Executive Officer that an order is not a qualified domestic relations order is a decision that may be appealed to the Board of Trustees of the retirement system as provided by 5 M.R.S. §17451.

SECTION 10. Restoration to Service

For the purpose of calculating earnings limitations for retirees or recipients of disability retirement benefits who have been restored to service, the retiree's or recipient's retirement benefit or disability benefit will be considered to be the amount that would have been paid if there had been no qualified domestic relations order.

SECTION 11. Amount of Disability Retirement Benefit Subject to Qualified Domestic Relations Order

If the benefit of a recipient of a disability retirement benefit is reduced because of amounts received by the recipient as Workers Compensation benefits, the amount of the benefit subject to a qualified domestic relations order is the amount of benefit remaining after reduction for the Workers Compensation benefits.

SECTION 12. Reinstatement of Service Credit

If a member terminates membership in the retirement system by withdrawal of contributions, the retirement system shall pay all or a portion of the amount withdrawn to any alternate payee as directed by a qualified domestic relations order. If the former member later resumes membership in the retirement system, the retirement system shall pay to an alternate payee no portion of any benefits payable to the member or retiree which result from the resumption of membership, even if those benefits result in part from reinstatement of service credit initially credited during the marriage.

In order to receive credit for all service represented by withdrawn or refunded contributions, a member who in reinstating service credit by repaying amounts previously withdrawn or refunded must repay the entire amount withdrawn or refunded, regardless of whether a portion or all of the amount was paid to an alternate payee. Repayment must be made in accordance with 5 M.R.S. §17703 or §18304 and service credit shall be granted in accordance with 5 M.R.S. §17757 or §18357.

SECTION 13. Payment to Alternate Payee; Service Retirement Benefits

When the interest awarded to an alternate payee by a qualified domestic relations order is distributed as a portion of a service retirement benefit, the retirement system will pay the alternate payee an amount that is the actuarial equivalent of that interest in the form of an annuity payable in equal monthly installments for the life of the alternate payee when:

1. the qualified domestic relations order arises in or because of divorce;
2. the qualified domestic relations order divides service retirement benefits between a member and the alternate payee; and
3. the determination that the order is a qualified domestic relations order is made prior to the member's retirement.

Payment under subsection 1 shall be determined as follows:

1. As of the date payment to the alternate payee is scheduled to begin, the retirement system shall determine the single life annuity value of the retirement benefit payable to the member. 1. If the portion of the benefit awarded to the alternate payee by the order is not clearly stated as a percentage of full benefits, the retirement system shall determine the percentage of full benefits that is the equivalent to the benefit awarded to the alternate payee. 2. The single life annuity value determined by the retirement system shall be multiplied by the percentage of full benefits awarded to the alternate payee. The result of this calculation shall be actuarially converted to a single life annuity payable to the alternate payee for the lifetime of the alternate payee.
2. The benefit payable to the member shall be reduced by an amount equivalent to the value of the benefit payable to the alternate payee. Payment by the retirement system of the alternate payee's interest as provided by this section has no effect on the right of a member to name a beneficiary or the right of a member to choose an optional method of payment upon retirement.
3. Payment of the alternate payee's interest under this subsection will be effective as of the same date benefit payments are effective for the member unless, effective September 1, 2024, the alternate payee is eligible under the terms of the qualified domestic relations order to receive benefit payments before the member’s retirement.
4. If the alternate payee begins to receive benefit payments before the member’s retirement and the calculation of the alternate payee’s benefit payments depends on the member’s entire membership period, the alternate payee’s benefit payments will be recalculated when the member retires using the same actuarial factors used to calculate the alternate payee’s initial benefit.

When the interest awarded to an alternate payee by a qualified domestic relations order is distributed as a portion of a service retirement benefit and the determination that the order

is a qualified domestic relations order is made subsequent to the member’s retirement, the interest awarded the alternate payee by the qualified domestic relations order will be paid as a portion of the service retirement benefit the retiree is receiving.

1. If the alternate payee is already a named beneficiary under any option elected by the retiree at retirement, the total monthly benefit to which the retiree is entitled without regard to the qualified domestic relations order, whether payable to the retiree only or as divided between the retiree and the alternate payee beneficiary, will be apportioned between the retiree and the alternate payee according to the terms of the qualified domestic relations order. Upon the death of either the retiree or the alternate payee beneficiary, the benefit amount to be paid to the survivor will be that required under the option elected by the retiree at retirement, as though no qualified domestic relations order had existed.
2. If the alternate payee is not a named beneficiary under the option elected by the retiree at retirement, the benefit to which the retiree is entitled without regard to the qualified domestic relations order, will be apportioned between the retiree and the alternate payee according to the terms of the qualified domestic relations order. If the retiree predeceases the alternate payee, payments to the alternate payee will cease and payments to the retiree's named beneficiary or beneficiaries will be made as required under the option elected by the retiree at retirement, as though no qualified domestic relations order had existed. If the alternate payee predeceases the retiree, the benefit then being paid to the retiree will be increased by the amount of the benefit which was being paid to the alternate payee at time of death.
3. Payment according to the terms of the qualified domestic relations order under this subsection will commence as of the first day of the month following the date upon which the order is determined to be qualified, unless the parties jointly direct that payment is to commence at a later date.

SECTION 14. Death of an Alternate Payee

When the retirement system has not yet begun to make payment to an alternate payee and is provided with proof of the death of the alternate payee, benefits payable to the member or retiree will be paid without regard to the qualified domestic relations order.

When the retirement system has begun to make payment to an alternate payee under subsection 13(1), benefits payable to the member or retiree will not increase or otherwise be affected because of the death of the alternate payee.

When the retirement system has begun to make payment to an alternate payee under subsection 13(3), and is provided with proof of the death of the alternate payee, further benefits payable to the member or retiree will be paid without regard to the qualified domestic relations order unless the order provides otherwise.

SECTION 15. Payments Made in Error

If a member or retiree, or the beneficiary or estate of either receives any amount of a distribution that has been awarded to an alternate payee, the recipient is designated a

constructive trustee for the amount received and shall immediately transmit such amount to the alternate payee.

If a alternate payee or the estate, heirs, or legatees of the alternate payee receives any amount of a distribution that should have been paid to a member or retiree, or the estate, heirs, or legatees of either, the recipient is designated a constructive trustee for the amount received and shall immediately transmit such amount to the member or retiree or other person to whom the amount should have been paid.

If a member, retiree, or the beneficiary, estate, heirs, or legatees of either receive any amount of a distribution that should not have been paid by the retirement system, the recipient is designated a constructive trustee for the amount received and shall immediately transmit such amount to the retirement system.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §§ 17103(4), 17059(13) EFFECTIVE DATE:
• STATUTORY AUTHORITY: October 4, 1992 – filing 92-404
• AMENDED: November 28, 1993 – filing 93-429
• AMENDED: February 14, 1994 – filing 94-51
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• AMENDED: February 14, 2010 – filing 2010-32
• AMENDED: July 31, 2024 – filing 2024-163
• APAO ACCESSIBILITY CHECK (Word): February 20, 2026 (no issues detected by agency of jurisdiction)
• AMENDED: February 24, 2026 – filing 2026-051

Chapter 104 Limitations on Earnable Compensation for Purposes of Calculating Average Final Compensation of State Employee and Teacher Members

Code Me. R. 94-411 Ch. 104 Limitations on Earnable Compensation for Purposes of Calculating Average Final Compensation of State Employee and Teacher Members {#sec-94-411-ch.-104 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 104}

SUMMARY: This Chapter implements 5 M.R.S.A. §17001(13)(C), the provisions in the Maine Public Employees Retirement System statute relating to limitations or “caps” on earnable compensation for the purposes of determining average final compensation for state employee and teacher members.

SECTION 1. DEFINITIONS

Solely for purposes of this Chapter, these terms have the following meanings:

1. AFC period. For a state employee or teacher member whose total membership service as a state/teacher member consists of at least 3 years of creditable service, “AFC period” means the three years of creditable service, not necessarily consecutive, in the membership period in which the member’s annual rate of compensation is highest.

For a state employee or teacher member whose total membership service as a state/teacher member consists of at least 1 year but less than 3 years of creditable service, “AFC period” means all of the creditable service, not necessarily consecutive, in the membership period.

2. Year 1 of the AFC period. “Year 1 of the AFC period” means the chronologically earliest year used in the AFC period.

3. Year 2 of the AFC period. “Year 2 of the AFC period” means the chronologically second year used in the AFC period.

4. Year 3 of the AFC period. “Year 3 of the AFC period” means the chronologically third year used in the AFC period.

5. Collectively bargained salary or wage increase. “Collectively bargained salary or wage increase” means an increase to a collectively-bargained position’s earnable compensation.

6. Primary position. “Primary position” means the position from which the member earns the majority of their compensation within each AFC period.

7. Promotion. “Promotion” means a change in a member’s position, including in an acting capacity, that involves an increase in earnable compensation.

8. Regular earnings. “Regular earnings” means the amount of earnable compensation prior to the inclusion of any payment allowed pursuant to 5 M.R.S.A. §17001(13)(B)(1) and prior to the exclusion of any excess increases required pursuant to 5 M.R.S.A. §17001(13)(C) and the provisions of this Chapter.

9. Year. “Year” means one of the following periods of time during which a state employee or teacher member earned creditable service:

A. a contract year for teacher members paid on a contract year basis;

B. a school year for teacher members who are paid on a school year basis and whose employment is not covered by an individual employment contract or a collective bargaining agreement;

C. a calendar year beginning January 1st for state employee members with creditable service periods prior to calendar year 1994. For purposes of transition from a calendar year to a fiscal year in the half-year period of January 1, 1994 through June 30, 1994 for state employees with creditable service after June 30, 1995, proration will be applied;

D. a fiscal year beginning July 1st for state employee members retiring with less than 3 years of creditable service after June 30, 1995;

E. a rolling 12 month period of creditable service beginning with the final payment of compensation and going back until 12 months of creditable service is accumulated for state employee members retiring with 3 years or more of creditable service after June 30, 1995.

F. In cases that present factual circumstances to which application of any of the definitions of “year” set out in paragraphs A through E above would produce a result that is inconsistent with or has effects that are unrelated to the statutory purpose of the cap limitations, as described below, the System will define a “year” of creditable service in a manner that does not produce a result

(1) that is driven by factors that are unrelated to the statutory purpose of the cap limitations, or

(2) that, while consistent with the statutory purpose of the cap limitations, arbitrarily affects similarly situated members differently.

As used in this subsection, the statutory purpose of the cap limitations is to limit increases in earnable compensation in the AFC years.

SECTION 2. APPLICABILITY

1. General Statement. The provisions of this Chapter must be applied when computing average final compensation for a state employee or teacher member whose total membership period as a state/teacher member exceeds 1 year of creditable service subject to the following conditions:

A. For teacher members paid on a contract year basis, regular earnings are subject to the cap limitations when paid on a contract year basis after June 30, 1993 in accordance with

(1) an individual employment contract executed after June 30, 1993 or

(2) a collective bargaining agreement, including an addendum or amendment to a previous collective bargaining agreement, effective after June 30, 1993 unless the collective bargaining agreement was executed or ratified in its final form by final vote of one party to the agreement before July 1, 1993 or as a result of other action by the governing body of a school administrative unit before July 1, 1993.

B. For teacher members not paid under an individual employment contract or collective bargaining agreement, regular earnings are subject to the cap limitations when paid after June 30, 1993.

C. For all state employee members, regular earnings are subject to the cap limitations when paid to state employees on or after July 1, 1995.

D. The excess increases determined in accordance with this Chapter must be excluded from the member’s earnable compensation for purposes of determining the AFC unless the cost of the additional actuarial liability arising from the excess increase is paid by the employer as provided in 5 M.R.S.A. §17154.

SECTION 3. APPLICATION OF THE 5% AND 10% CAP LIMITATIONS

1. When regular earnings for Year 1 of the AFC period are subject to the cap limitation, the earnable compensation for this AFC year must equal the uncapped earnable compensation for Year 1 of the AFC period.

2. When regular earnings for Year 2 of the AFC period are subject to the cap limitations, the earnable compensation for this AFC year must equal the lower of the following:

A. the uncapped earnable compensation for Year 2 of the AFC period; or

B. 105% of the earnable compensation of Year 1 of the AFC period.

3. When regular earnings plus any amount payable pursuant to 5 M.R.S.A. §17001(13)(B)(1) for Year 3 of the AFC period are subject to the cap limitations, the earnable compensation for this AFC year must equal the lower of the following:

A. the uncapped earnable compensation for Year 3 of the AFC period determined by adding the amount of any payment allowable pursuant to 5 M.R.S.A. §17001(13)(B)(1) to the regular earnings for Year 3 of the AFC period;

B. 105% of the capped earnable compensation used for Year 2 of the AFC period; or

C. 110% of the earnable compensation for Year 1 of the AFC period.

4. If AFC Years 2 and 3 are the only AFC years subject to the cap limitations, the capped earnable compensation for each year shall be determined as in subsections 2 and 3 above. If AFC year 3 is the only AFC year subject to the cap limitations, the capped earnable compensation for that year shall be determined as in subsections 3(A) and (B) above. If none of the regular earnings for an AFC year are subject to the cap limitation, then the uncapped earnable compensation for each such AFC year is the earnable compensation used for determining average final compensation. If only part of the regular earnings in an AFC year is subject to the cap limitations, the earnable compensation for that AFC year shall be determined as in subsections 2 or 3 above and the increase limitations shall be applied only to that period subject to the cap limitation.

5. Members whose primary position is collectively bargained or who experience a promotion in their primary position during an AFC year are not subject to the corresponding cap limitations.

6. The amount of earnable compensation for each AFC year shall be determined by the usual procedures followed by the System for converting earnable compensation first into an average daily rate and then into allowable annual earnable compensation.

7. Member contributions in any AFC year that have been paid on earnable compensation that has been excluded from the benefit calculation by operation of this section shall be refunded to the member.

History

• STATUTORY AUTHORITY: 5 MRS §§ 17001(4), 17001(13), 17103(4).
• EFFECTIVE DATE: June 18, 2000 – filing 2000-256
• AMENDED: May 30, 2021 – filing 2021-113
• AMENDED: June 9, 2025 – filing 2025-123
• APAO ACCESSIBILITY CHECK: February 2, 2026 (no issues detected)

Chapter 201 Employer Reporting and Payments

Code Me. R. 94-411 Ch. 201 Employer Reporting and Payments {#sec-94-411-ch.-201 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 201}

94-411 MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM Chapter 201: EMPLOYER REPORTING AND PAYMENTS

SUMMARY: This Chapter sets out requirements regarding employer reporting and payment of contributions and premiums.

SECTION 1. REPORTING AND PAYMENT REQUIREMENTS

Payroll Reporting. Every employer reporting unit is required to submit a complete and accurate payroll report to the Maine Public Employees Retirement System (“MainePERS”) within 15 days after the end of each month (“the Due Date”). The report shall contain data relating to all payrolls paid during the calendar month immediately preceding the Due Date and shall be in the format prescribed by the Chief Executive Officer.

Submission of Contributions and Insurance Premiums. Every employer reporting unit is required by the Due Date to electronically submit in the manner prescribed by the Chief Executive Officer: (1) the employer and employee contributions for the time period covered by the report; and (2) the Group Life Insurance (“GLI”) premiums as invoiced by MainePERS.

SECTION 2. LATE FEES AND INTEREST

Late Fees. An employer reporting unit that has not submitted a complete and accurate payroll report as determined by the Chief Executive Officer within 30 days after the Due Date may be charged a late fee of $100 per day calculated from the Due Date until a complete and accurate report has been received by MainePERS. In deciding whether to impose a late fee, MainePERS should consider any extenuating circumstances and the extent to which the employer is making good faith efforts to comply.

Interest. An employer reporting unit that has failed to pay any employer and employee contributions and GLI premiums required to be paid pursuant to section 1, subsection 2 within 30 days after the Due Date, regardless of whether a complete and accurate payroll report has been submitted, may be charged interest on the amount owed at the then-current actuarial discount rate, compounded monthly, from the Due Date until the amount owed is paid in full. In deciding whether to charge interest, MainePERS should consider any extenuating circumstances and the extent to which the employer is making good faith efforts to comply. Any late fees paid pursuant to subsection 1 must be used to offset any interest obligation arising out of the same payroll period to reduce the employer reporting unit’s overall obligation.

History

• STATUTORY AUTHORITY: 3 M.R.S. § 731(2); 4 M.R.S. § 1231(2); 5 M.R.S. §§ 17103(4), 17203(1), 18053, 18653
• EFFECTIVE DATE: January 20, 1985
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling and format.
• REPEALED AND REPLACED: December 4, 2025 – filing 2025-216
• APAO ACCESSIBILITY CHECK: October 30, 2025 (no issues detected)

Chapter 204 Waiver of Member Payment Requirement where Caused by Employer Error or Omission

Code Me. R. 94-411 Ch. 204 Waiver of Member Payment Requirement Where Caused by Employer Error or Omission {#sec-94-411-ch.-204 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 204}

SUMMARY: This Chapter establishes standards for determining whether to grant a waiver under 5 M.R.S. §17103(6) to a member or retiree who, without the waiver, would be required to make payments to the Maine Public Employees Retirement System (“MainePERS”) because of an employer error or omission.

SECTION 1. CRITERIA

In order to safeguard and maximize the assets available for the payment of retirement and related benefits, waivers will be granted under 5 M.R.S. §17103(6) only in extraordinary circumstances meeting each of the following criteria:

1. The member or retiree seeking the waiver did not cause or substantially contribute to the employer’s error or omission;
2. The member or retiree seeking the waiver could not have prevented the employer’s error or omission through reasonable actions;
3. The member or retiree seeking the waiver took reasonable steps to timely discover and mitigate the error;
4. The member or retiree seeking the waiver cooperated with any action that MainePERS has taken to recover the payment from the employer;
5. Granting a waiver would not have a significant adverse effect on MainePERS or any of the programs administered by MainePERS; and
6. Failing to grant a waiver would cause a serious, not reasonably avoidable financial hardship to the member or retiree seeking the waiver. In making this determination, the following factors must be considered: 1. The total amount of the payment required; 2. The amount of each installment payment if the payment may be made over time; 3. The member or retiree’s personal and family income, earning potential, and assets; 4. The amount required for the member or retiree to pay for living necessities; and 5. Whether the member or retiree received or will receive a benefit associated with the payment obligation.

SECTION 2. WAIVER AMOUNT

If a waiver is granted, the payment amount waived must be limited to that necessary to avoid a serious financial hardship to the member or retiree under the factors set forth in Section 1, subsection (6), above.

SECTION 3. PROCEDURE

1. A request for a waiver must be submitted in writing to the Executive Director within 30 days after receiving notice of the payment obligation and the process for requesting a waiver. The request must be accompanied by documentary proof establishing the criteria set forth in Section 1.
2. The member or retiree seeking the waiver must fully cooperate with the Executive Director’s review of the request and promptly provide any additional relevant information requested by the Executive Director.
3. The submission of a waiver request suspends the payment obligation until the Executive Director or the Executive Director’s designee issues a written decision on the waiver request.
4. The Executive Director or the Executive Director’s designee will issue a written decision on the waiver request. If the decision is a denial of the request, the member or retiree seeking the waiver may appeal to the Board of Trustees pursuant to 5 M.R.S. §17451. The waiver request and any appeal of the request decision may be decided in conjunction with the determination of the underlying payment obligation.

History

• STATUTORY AUTHORITY: 5 M.R.S. §17103(4)
• EFFECTIVE DATE: May 8, 2016 – filing 2016-081

Chapter 301 Interest Calculations

Code Me. R. 94-411 Ch. 301 Interest Calculations {#sec-94-411-ch.-301 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 301}

SUMMARY: This Chapter sets forth the method by which interest is to be computed for crediting member accounts and for charging members who make payments or repayments for past creditable service time.

SECTION 1. Interest credited to members’ accounts

Interest will be credited to individual member accounts from the date that the member contributions are received by the System at the rate of regular interest established from time to time by the Board of Trustees. Whenever member contributions are not received by the Maine State Retirement System payroll filing deadline established by Chapter 201, interest will be credited to the members’ accounts as of the date of the payroll filing deadline.

SECTION 2. DEFINITIONS

1. “Year” shall mean as follows:

A. Calendar year for State employees and employees of participating local districts; and

B. School contract year for teachers or State employees employed as teachers.

SECTION 3. Interest charged for payments or repayments for creditable service time

1. Determination of amount of interest due.

Interest will be charged at the rate established by the Board of Trustees from time to time and the amount of interest due will be determined as follows.

A. Withdrawn contributions: interest is charged on the amount of the withdrawn accumulated contributions from the date of withdrawal to the date of repayment.

B. Back contributions: interest is charged on the amount of contributions due from the end of the year in which the contributions should have been made to the date of payment.

C. Military service contributions: interest is charged on the amount of contributions due from the date of attaining 15 years of creditable service to the date of payment. If the provision for the purchase of military service credit was unavailable to a PLD member at the time that 15 years of creditable service was attained, interest is charged from the date that the provision was first available to the date of payment.

D. Out-of-State Service: for member(s) who qualify to purchase service under §17754(1) or §18354(1), interest is charged on the amount of contributions due from the end of the year when the contributions would have been made if the service had been in the State to the date of payment.

E. Service in Private, parochial and other schools: for member(s) who qualify to purchase service under §17763(1) or §18362(1), interest is charged on the amount of contributions due from the end of the year when those contributions would have been made if the service had been as a State employee or teacher in this State to the date of payment.

2. Crediting of Payments.

Payment for the purchase or repurchase of creditable service is credited to the members’ accounts as of the date that the payment is received by the System. If payment is submitted through an increased rate of contribution through payroll deduction, and payment is not received by the Maine State Retirement System payroll filing deadline established by Chapter 201, the payment will be credited to the members’ accounts as of the date of the payroll filing deadline.

SECTION 4. Method of computation of interest

When crediting interest to members’ accounts and charging interest for the purchase or repurchase of service, interest is compounded monthly.

History

• STATUTORY AUTHORITY: 5 MRSA, §§17703(3), 17704(3), 17705, 17713(2), 17751(1), 17754(1), 17763(1), 18304(3), 18305(3), 18306, 18311(2), 18351(1), 18354(1), 18362(1).
• EFFECTIVE DATE: October 14, 1986
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling and format.
• REPEALED AND REPLACED: April 1, 2001 - also repeals Chapter 402, " Interest Charges on Back Contributions"
• REPEALED AND REPLACED: 94-411 Chapter 301 page 301-3

Chapter 302 Retirement Incentives

Code Me. R. 94-411 Ch. 302 Retirement Incentives {#sec-94-411-ch.-302 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 302}

SUMMARY: This Chapter defines "retirement incentives" and "early retirement incentives" and governs the System's identification of both. It imposes obligations on employers and retiring members to declare and report both retirement incentives and early retirement incentives to the System. This Chapter also governs the determination and payment of additional actuarial and administrative costs incurred by the Retirement System because of early retirement incentives offered by employers to members. Payment of additional costs associated with early retirement incentives is governed by the provisions of 5 MRSA §17154(10), which were enacted by PL 1993, c. 410, Part L, § 2.

§1. Definitions

A. Additional Actuarial Costs. For purpose of Section 4 only, "additional actuarial costs" means the sum of dollars that represents the difference, expressed in present value terms, between the fully actuarially reduced benefit and the benefit actually payable on the member's early retirement date.

B. Early Retirement. "Early retirement" means retirement before normal retirement age with a reduced retirement benefit as governed by § 17852, sub- §§ 3 or 3-A, 4(C) or 4(C-1) or 10(C) or 10(C-1); §17857, sub-§3-A, §18452, sub-§3; or §18462, sub-§3, in their form as of the effective date of this Chapter or as subsequently amended.

C. Early Retirement Incentive. "Early retirement incentive" means a retirement incentive offered and/or provided to a member who takes early retirement.

D. Employer. For purpose of Section 4 only, "employer" means for State employees, the department or agency of state government by which the member was last employed prior to retirement; for teacher members, the local school administrative unit by which the member was last employed prior to retirement; and for participating local district employees, the district by which the member was last employed prior to retirement if that district was then in the Consolidated Plan or, if that district was not then in the Consolidated Plan but later joins the Consolidated Plan if a retirement Incentive is structured so that it imposes a cost on other districts under the Consolidated Plan.

E. Retirement Incentive, "Retirement incentive" means any significant payment or award, monetary or non-monetary, that is offered or provided by an employer to a member who Is eligible to retire or becomes eligible to retire as a result of the payment or award. This payment or award must be intended to induce or in fact induce the member's retirement, regardless of whether it is received prior or subsequently to the member's retirement. A bonus, stipend, longevity award, consideration for or in response to planned retirement, compensation in lieu of fringe benefits, compensation for sick or vacation leave, and/or other payment or award is a retirement incentive under this rule when it meets all of the criteria articulated in the first two sentences of this subsection.

All other terms used in this Chapter, unless the context otherwise indicates, shall have the same definitions as in 5 MRSA § 1 7001.

§2. Applicability

The reporting requirements on employers and retiring members established in Section 3 of this rule apply to any retirement incentive offered and/or provided after July 1, 1993. With respect to the obligation for employers to pay certain additional actuarial and administrative expenses relating to early retirement incentives, this rule is applicable to all early retirement incentives offered and/or provided after July 1, 1993, except for those offered and provided under and during only the initial term of a collective bargaining agreement that was executed prior to July 1, 1993 or ratified in its final form by final vote of one party to the agreement prior to July 1, 1993.

§3. Reporting Requirements for Retirement Incentives

A. Employer Requirements.

(1) All employers shall file with the Maine State Retirement System all documents and/or other information relating to the offering of and/or provision to any Maine State Retirement System member or group of members a retirement incentive as defined in Section 1 of this rule. The offering and/or provision of a retirement incentive by verbal or informal means in no way changes the obligation to file information about the offering and/or provision. The documents or information must be filed with the System within 10 days of the offering and/or provision of such an incentive. Upon request of the System, all details of the offered incentive shall be provided to the Maine State Retirement System.

(2) Whenever a member retires, the member’s employer must certify in writing to the Maine State Retirement System that the employer has not offered any retirement incentive as defined in Section 1 of this rule to the employee that the employer has not previously disclosed in writing to the System.

B. Member Requirements.

(1) Whenever a retiring member of the Maine State Retirement System is offered and/or provided any retirement incentive as defined in Section I above, he or she must describe the retirement incentive to the Retirement System in writing and provide any further details as requested by the System.

(2) Each retiring member must certify in writing to the Maine State Retirement System that he or she has not been offered any retirement incentive as defined in Section 1 that the member has not previously disclosed in writing to the Maine State Retirement System.

C. Failure to Report. Failure of employers and/or members to report or certify information to the System in accordance with the requirements of subsections 3(A) and (B) may result in penalties as recommended on a case by case basis by the Executive Director and approved by the Board of Trustees.

§4. Employer Payment to Maine State Retirement System for Costs Relating to Early Retirement Incentives

A. Additional actuarial costs. The additional actuarial costs that result from the early retirement of a member who has been offered and/or provided a retirement Incentive shall be paid to the Maine State Retirement System by the employer.

(1) Calculation of additional actuarial costs. The Maine State Retirement System shall determine the additional actuarial costs for which the employer is liable in individual situations as follows:

Step 1. The annual retirement benefit payable to the member upon his or her early retirement date shall be calculated in accordance with the governing provisions of the Maine State Retirement System statutes and rules.

Step 2. The annual retirement benefit that would be payable to the member on a fully actuarially reduced basis shall be calculated in accordance with the actuarial equivalent early retirement reduction factors prescribed by the System's consulting actuary and approved by the Board of Trustees.

Step 3. The retirement benefit calculated in Step 2 shall be subtracted from the retirement benefit calculated in Step 1.

Step 4. A present value factor shall be applied to the amount determined in Step 3 to convert the annual benefit amount to a lump sum present value dollar amount. This amount represents the additional actuarial cost resulting from the early retirement of a member who has been offered a retirement incentive.

(2) Payment of additional actuarial costs. The Maine State Retirement System shall bill the employer of retiring members who will receive or have received early retirement incentives for the additional actuarial costs as determined by the System in subsection 1 above. The bill must be accompanied by a statement of the basis of the costs identified in the bill and the supporting calculations. The employer must pay this amount to the Maine State Retirement System within 30 days of receipt of the bill.

(3) Finality. All determinations of additional actuarial costs are subject to recalculation upon the actual retirement of the member and upon any subsequent recalculation of the member's early retirement benefit due to misreporting of member-specific information, error or any direction by the Board to recalculate a member's benefit. Any resulting change in additional actuarial costs would be paid or refunded, as appropriate, to the employer. Any administrative costs for recalculation of additional actuarial costs that is caused by actions of the employer shall be paid by the employer.

B. Reasonable administrative costs.

(1) Processing fee. Subject to review and approval by the Board, the Executive Director will establish and may revise from time to time an administrative processing fee to determine the member-specific additional actuarial costs relating to an early retirement incentive for which the employer is liable. The fee will be based on the time required for making such determinations, will be reasonable, and will not be set at a level which requires the System's members and employers as a whole to subsidize the cost of a determination. The fee must be paid; before the System determines the member-specific additional actuarial costs.

(2) Calculation of administrative costs. The employer must pay any additional actual administrative costs for member-specific information at an hourly administrative cost rate for the System plus the System's actual costs related to actuarial and legal service. Subject to review and approval by the Board, the Executive Director will establish and may form time to time revise the administrative cost rate.

(3) Payment of Administrative costs. The employer will be billed for any actual administrative costs beyond the processing fee. If the member is already receiving a retirement benefit or preliminary benefit when the employer is billed for administrative costs, the employer will also be charged interest as a cost and must pay interest retroactive to the member’s effective date of retirement. The employer must pay the administrative costs to the Maine State Retirement System within 30 days of receipt of the bill. the bill will be accompanied by a statement of the basis of the administrative costs.

C. Appeal. If the employer or the member disputes the determination that additional actuarial costs must be paid by the employer, the amount of the additional actuarial costs, or the amount of actual administrative costs, an appeal may be brought pursuant to 5 MRSA § 17451 and Chapter 702 of the Board’s rules.

D. Non-payment of costs. Interest at the regular rate will be charged by the System and must be paid by the employer on all overdue amounts pertaining to the processing fee, additional actuarial costs and administrative costs. In addition, an employer who fails to pay is liable for penalties on a case by case basis as recommended by the Executive Director and approved by the Board of Trustees and shall pay all the System’s costs associated with collection of the amounts overdue and/or enforcement of this rule.

§ 5. Projection of Employer’s Liability

A. Request for Projection. An employer may request that the System project the employer’s liability for additional actuarial costs associated with the potential offering of one or more early retirement incentives to a potential member or group of members. The employer must provide in writing to the System all known facts about the potential early retirement incentive(s) including identification by name and social security number of all possible persons could take advantage of such an incentive. The System will first provide to the employer an estimate of the System’s costs for preparing the projection of liability. After receiving the estimate, the employer shall indicate in writing that the employer desires the projection of liability to be done.

B. Processing Fee. Subject to review and approval by the Board, the Executive Director will establish and may revise from time to time an administrative processing fee that will be paid at the time a request for a projection of the employer's liability is made. The fee will be based on the time required for preparing an estimate of the costs for projecting the employer's liability, will be reasonable, and will not be set at a level which requires the System's members and employers as whole to subsidize the cost of preparing the estimate. The fee must be paid at the time a request for a projection is made and before the System prepares an estimate of the System's costs for preparing the projection of liability.

C. Estimate of System's Administrative Costs. The System will base the estimate of its administrative costs for preparing a projection of liability on an hourly administrative cost rate for the System, as established by the Executive Director subject to review and approval by the Board, and will include an estimate of the System's actual costs for actuarial and legal services. Costs associated with development of information on an expedited basis or advanced schedule will also be included in the estimate of the System's costs, if the employer has requested that the work be done on an expedited basis. The employer must pay in advance the estimated administrative costs for preparing the projection of liability.

D. Preparation of Projection. Once the processing fee has been paid and the employer has paid in advance to the System the System’s estimated administrative costs, the System shall prepare the projection of the employer's liability. This projection of liability may be made on the information available at the System at the time of the request or on updated information, at the discretion of the System. The estimate may be based on reasonably imputed earnable compensation on a member-specific basis as determined by the System. The projection represents an estimate of employer liability; different actuarial costs on a member-specific basis may be computed in accordance with Section 4 at the actual retirement of individual members.

E. Payment of Final Costs. Upon completion of the work by the System, the System will present a final bill reflecting the System's actual costs for the projection of liability and the employer must pay this bill within thirty (30) days of receipt of the bill. Interest will be charged by the System on overdue amounts. In addition, an employer who fails to pay is liable for penalties as recommended on a case by case basis by the Executive Director and approved by the Board of Trustees and shall pay all of the System's costs associated with collection of amounts overdue and/or enforcement of this rule. If the actual costs are less than the estimated costs already paid, the difference will be refunded to the employer by the System.

EFFECTIVE DATE:

March 19 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 5, 1996

NON-SUBSTANTIVE CORRECTIONS:

October 2, 1996 - minor spelling and formatting

March 14, 2000 - minor spelling and formatting

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 303 Actuarial Factors TablesTables (Word)

Code Me. R. 94-411 Ch. 303 Actuarial Factors Tables {#sec-94-411-ch.-303 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 303}

SUMMARY: This Chapter specifies the actuarial factors tables that have been adopted by the Board of Trustees for use in various determinations and calculations required in the administration of the programs administered by the Maine Public Employees Retirement System.

SECTION 1. SCOPE

This Chapter specifies the actuarial factors tables to be used in administering the programs of the Maine Public Employees Retirement System.

SECTION 2. APPLICABILITY

1. Since the inception of the Maine Public Employees Retirement System, upon the advice and recommendation of the System’s actuaries and on an as-needed basis, the Board of Trustees has adopted actuarial factors tables as required for the administration of the various plans for which it is responsible at regularly scheduled, public, duly noticed Board meetings. Except for those events to which Chapter 510 applies, in relation to events with effective dates through September 30, 2001, the System shall use the following actuarial factors tables in making various actuarial calculations and determinations and in deriving other actuarial factors tables required for plan administration:

2. State Employee Unisex Table;

3. Teacher Unisex Table;

4. PLD Employee Unisex Table with COLA;

5. PLD Employee Unisex Table without COLA;

6. Option 1 Factors – Unisex Table;

7. Options 2 and 3 Factors Table;

8. Former “Option 4” (Current “Option 5”) Factors Tables for Representative Percentage Splits for Benefits: 80/20 and 90/10;

9. Option 4, 6, 7 & 8 Factors Table for use through 9/30/01 for all employees except judges;

10. Option 4, 6, 7 & 8 Factors Table for use through 9/30/01 for judges;

11. Table A – Single Life Annuity;

12. Table B – Joint Life Annuity;

13. QDRO Annuities Unisex with COLA and without COLA;

14. Normal Contribution Table – with COLA;

15. Normal Contribution Table – without COLA;

16. Table of Immediate Annuity Values – (PLD Employee Plan with COLA);

17. Table of Immediate Annuity Values – (PLD Employee Plan without COLA);

18. Table of Immediate Annuity Values – (Teacher);

19. Table of Immediate Annuity Values – (State employee);

20. Table of Annuity Values Per $1 Yearly Benefit, Payable Monthly – (Plan with COLA);

21. Table of Annuity Values Per $1 Yearly Benefit, Payable Monthly – (Plan without COLA);

22. Table to Calculate Cost of Earnable Compensation in Excess of Cap;

23. Unisex Generalized Non-Disabled Factor Table – (Plan with COLA);

24. Unisex Generalized Non-Disabled Factor Table – (Plan without COLA); and

25. Age Reduction Tables.

The above references to “state employee” include members of the Legislative and Judicial Retirement Programs. These factors tables are incorporated by reference into this Chapter and are attached for reference.

2. Except for those events to which Chapter 510 applies, in making various actuarial determinations and calculations in relation to events with effective dates of October 1, 2001 through June 30, 2007, the System shall use the following updated actuarial factors tables, recommended by the System’s actuaries, as the basis for both actuarial calculations and determinations and the deriving of other actuarial factors tables required for plan administration:

3. Basic Annuity Factors Table – Table AA;

4. Joint Life Factors Table – Table BB;

5. Normal Contribution Table for Special Plans with COLA – Table C.1;

6. Normal Contribution Table for Special Plans without COLA – Table C.2;

7. Option 1 Factors – Table 1.0; and

8. Age Reduction Tables.

These factors tables are incorporated by reference into this Chapter and are attached for reference.

3. Except for those events to which Chapter 510 applies, in making various actuarial determinations and calculations in relation to events with effective dates of July 1, 2007 or later, the System shall use the tables as referenced in Section 2 as amended effective July 1, 2006.

Any actuarial factors tables required by the System for actuarial calculations and determinations that cannot be derived from the factors tables that are a part of this Chapter will be derived using methodologies recommended by the System’s actuaries. Upon such recommendation of the System’s actuaries, and in circumstances that are both unusual and infrequent, the System may use such actuarial factors tables without amending this Chapter. Any such use must be approved in advance by the Board of Trustees when possible or affirmed after the fact by the Board of Trustees and must be clearly documented in the official minutes of the public meeting of the Board at which the use was approved or affirmed.

SECTION 3. BENEFIT DETERMINATION

Effective as of July 1, 1989, all benefits payable by the System will be determined based upon the actuarial tables provided in Section 2, as adopted by the Board of Trustees. Such benefits are not subject to employer discretion.

APA Office Note: the tables are available from the Maine Public Employees Retirement System.

History

• STATUTORY AUTHORITY: 5 MRSA §17103(4)
• EFFECTIVE DATE: November 6, 2000 (under the APA. The Basis Statement asserts an effective date for the updated tables as October 1, 2001)
• NON-SUBSTANTIVE CORRECTIONS: November 24, 2000 - statutory citations only
• EFFECTIVE DATE: June 21, 2006 (under the APA. The Basis Statement asserts an effective date for the updated tables as July 1, 2007) – filing 2006-270
• AMENDED: February 23, 2009 - filing 2009-78
• AMENDED: February 14, 2010 - filing 2010-33
• AMENDED: 94-411 - Maine Public Employees Retirement System Rules: Chapter 303 Page 3 of 5

Chapter 401 Membership and Creditable Service for State and Participating District Employees

Code Me. R. 94-411 Ch. 401 Membership and Creditable Service - State Employees and Participating District Employees {#sec-94-411-ch.-401 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 401}

SUMMARY: This chapter sets forth the bases upon which membership in the Maine Public Employees Retirement System is required, is denied or is optional and sets forth the bases upon which creditable service is granted for State Employees and Employees of Participating Local Districts.

1. State Employees - Membership

Membership in the Maine Public Employees Retirement System will be compulsory upon date of employment for all State employees regardless of employment classification or status, with the following exceptions:

A. Retired State employees drawing benefits under the System (except as provided by 5 MRSA, Section 17855], Judges and Justices of the Court System, members of the Legislature [except as provided by 3 MRSA, §801) and persons appointed to state boards as defined in 5 MRSA, §12002, sub-§1 (see 5 MRSA, §12003-A, sub-§7) may not be members.

B. Persons receiving per diem compensation only are not eligible for membership under the System.

C. Membership will be optional for elected officials and officials appointed for fixed terms.

D. Persons employed by state operated schools in which they are enrolled as full-time students are not eligible for membership in the Maine Public Employees Retirement System.

E. Persons on active duty with the Maine National Guard upon being called by the Governor and whose salaries are paid by the State are not eligible for membership in the Maine Public Employees Retirement System unless already members as state employees or public school teachers. Such persons who are members of the Retirement System as state employees or public school teachers shall not have contributions deducted from their National Guard salaries but shall be granted creditable service when they pay the appropriate contributions directly to the Maine Public Employees Retirement System after verification of time served and total earnings.

F. Persons employed by the Maine Technical College System ["MTCS"] as adjunct faculty members on a project basis to work as instructors either in MTCS instructional programs or in customized training projects based upon contracts between the MTCS and private employers are not eligible for membership in the Maine Public Employees Retirement System.

G. Membership in the System for teachers who are State employees, unless otherwise ineligible for membership, shall be subject to Chapter 404, section 1, of the Retirement System rules.

H. Persons hired to respond to a natural disaster are not eligible for membership.

2. State Employees - Creditable Service - before July 1, 1991

A. Permanent - From beginning date to ending date.

B. Seasonal and Part-time - Members whose employment is on an average of 20 hours per week for a 50-week period per year will receive one full year of credit. If employment is on an average of less than 20 hours per week for a 50-week year, credit will granted on the basis of the number of days worked times 1.6, converted to years, months and days.

C. Intermittent Permanent

Intermittent Seasonal

The employees in these classifications will receive credit on the following basis: Actual number of days worked times 1.6, converted to years, months and days.

Intermittent Project

Limited Period

Project

Part-time Limited Period

Part-time Project

Part-time Seasonal

Legislative Employees

D. Elected Officials (Legislators) - From date session begins to end of biennium, if does not resign. 5 terms = 10 years [See 5 MRSA, Section 17758, subsection 1].

E. Appointed Officials [Department Heads] - Time granted is based on the status of position; that is, permanent, limited, etc.

F. Teachers in State Institutions - Creditable service for teachers who are State employees shall be based upon Chapter 404, sections 2 and 3, of the rules of the Retirement System.

G. Appointments - Regular, provisional, emergency, temporary, etc. - Time is based on the position status; that is, permanent, part-time, etc.

H. Employees for which no employee record exists (after 7/1/42) and which the beginning and ending dates cannot be verified by the department (Highway Department), time is granted as follows:

If gross earnings are but less than amount of credit is

1 50 15 days

50 100 1 month

100 200 2 months

200 300 3 months

300 400 4 months

400 500 5 months

500 600 6 months

600 700 7 months

700 800 8 months

800 900 9 months

900 1,000 10 months

1,000 1,100 11 months

1,100 or more 1 year

3. State Employees Creditable Service - After June 30, 1991

A. State employees whose creditable service was determined by subsections D, F and H of section 2 before July 1, 1991, shall continue to be covered by those subsections.

B. Except as provided by subsection C, all other employees shall earn creditable service on the following basis:

(1) For purposes of this subsection, a "full-time employee" is an employee who worked, in the pay periods covered by a payroll report, 100% of the regularly scheduled standard hours prescribed by the employer for employees in the same class and agency. However, if the employer prescribes less than 35 or more than 40 regularly scheduled standard hours per week for an employee class, for purposes of this rule, the employer shall be considered to have prescribed 35 and 40 regularly scheduled standard hours per week, respectively, for a full-time employee in that class.

(2) Full service credit for the pay periods covered shall be granted to a member who works, in the pay periods covered by a payroll report, 100% of the hours worked by a full-time employee.

(3) A member who works less than 100% of the hours worked by a full-time employee, in the pay periods covered by a payroll report, shall be granted creditable service equal to the ratio of hours worked by the member to 100% of the hours worked by a full-time employee.

(4) Regardless of subsections 2 and 3, a member shall continue to accrue creditable service while on a leave of absence without pay of up to a month's duration each year. The member shall accrue creditable service during the leave of absence at the same rate creditable service was accrued during the six months prior to the commencement of the leave of absence.

C. A full year of creditable service will be granted to any state employee for any calendar year during which that employee is employed for 1,000 or more hours in a part-time or seasonal position provided:

(1) The employee was employed in a part-time or seasonal position during the period beginning January 1, 1989, and ending June 30, 1991; or

(2) The employee was first employed before July 1, 1991, in a position that the state department or agency has identified as in a career ladder in which the employee is required to move from full-time status to seasonal status when accepting a promotion in the employee's career ladder;

(3) The employee continues to be employed by the State without interruption; and

(4) The employee's name appears on the list required by subsection D to be submitted by the department or agency which employs the employee.

D. Each State department or agency that has employees to whom subsection C applies shall submit to the Retirement System on the schedule required by the Retirement System a list of all such employees. The list shall include the following, as of June 30, 1991, with relation to each employee:

(1) Name and social security number,

(2) Classification title and number,

(3) Position number,

(4) Type of position; i.e., full-time, part-time or seasonal.

(5) Date of first employment by department or agency,

(6) Date first employed in current position,

(7) If C(2) applies, title and number of prior and next classification in career ladder.

E. In the event that a state department or agency fails to identify or report on its list all employees to whom subsection C applies and it is subsequently discovered that an employee(s) should have been identified and reported to the Retirement System, correction of the list of employees will be allowed if the employer is able to provide sufficient documentation to the Retirement System that the missing employee(s) should have been included on the list previously submitted in accordance with this subsection.

F. Each State department or agency that had a position that is referred to in subsection C(2) during the period beginning January 1, 1989 and ending June 30, 1991 shall also submit to the Retirement System, on the schedule required by the Retirement System, a list of all such positions. This list shall include the following, as of June 30, 1991, with relation to each position:

(1) Classification title and number,

(2) Position number,

(3) Type of position; i.e., full-time, part-time or seasonal,

(4) Date position was established by department or agency,

(5) Title and number of prior and next classifications in a career ladder.

In the event that a state department or agency fails to identify or report all positions to which subsection C(2) applies and it is subsequently discovered that a position(s) should have been identified and reported to the Retirement System, correction of the list of positions will be allowed if the employer is able to provide sufficient documentation to the Retirement System that the missing position(s) should have been included on the list previously submitted in accordance with this subsection.

4. Participating District Employees - Membership

A. Prior to July 1, 1984, participating district employees who are less than full-time, regular, will be permitted membership in the Maine Public Employees Retirement System on the basis of personnel rules or regulations which have been adopted by the participating local district, if such rules or regulations do not conflict with existing statutes or legal opinions.

B. The following provisions shall apply to employees of participating local districts hired on or after January 1, 1987:

(1) Regardless of employment status, an employee shall be a member of the Retirement System from the first day of employment if his job description is one that would require him to work more than 15 hours per week and accumulate at least 720 hours in a period of 12 consecutive months. "First day of employment” shall mean the first day on which the employee reports for work.

(2) Regardless of his job description or if no job description exists, any employee who has worked more than 15 hours per week and has accumulated at least 720 hours in a period of 12 consecutive months shall become a member of the Retirement System as of the first day of the first pay period following the end of the 12 month period.

(3) In the case of employees who share a job whose description would require membership, each employee shall be a member of the Retirement System regardless of the number of hours worked.

(4) Any employee who accumulates more than 1,170 hours in 18 consecutive months or less shall become a member of the Retirement System as of the first day of the first pay period following the end of the 18 month period.

(5) Any employee who must become a member of the Retirement System pursuant to paragraphs 2 or 4 shall have the option of purchasing creditable service time back to the beginning of the 12 month period described in paragraph 2 or the 18 month period described in paragraph 4.

(6) Upon qualifying for membership in the Retirement System under this rule, an employee shall become and remain a member, regardless of the number of hours worked, as long as that employee works for the same employer. Only an employee who terminates employment, withdraws his accumulated contributions, and does not return to employment with the same employer within two (2) years from the date on which he was last employed, must requalify for membership under this rule.

C. The following provisions apply to employees of participating local districts hired on or after July 1, 1984, but before January 1, 1987:

(1) Any employee hired on or after July 1, 1984, but before January 1, 1987, who is not a member of the Retirement System, and who worked more than 15 hours per week and 720 hours in a period of 12 months or 1,170 hours in a period of 18 months must become a member of the Retirement System beginning with the first payroll after January 1, 1987, and shall continue membership while an employee of the same employer. Any employee hired on or after July 1, 1984, but before January 1, 1987, who is not a member of the Retirement System, and who did not work more than 15 hours per week and 720 hours in a period of 12 months or 1,170 hours in a period of 18 months, shall be given an option, to be exercised before July 1, 1987, to become a member of the System, and to continue membership while an employee of the same employer regardless of the number of hours worked.

Any such employee who becomes a member of the System under the preceding paragraph may also elect to purchase the service credit that would have accrued had the employee joined the Retirement System on the first day of employment. Any such employee who becomes a member of the System who had service with another participating local district during the period July 1, 1984, to January 1, 1987, may also purchase service credits for that period of employment. Payment of any back contributions shall begin with the payroll immediately following notice from the Retirement System of the amount due. The repayment must be made according to the rules of the Retirement System governing repayments.

Before January 1, 1987, written notice of these options shall be sent by 1st class mail or otherwise be given by each employer to all affected employees, including former employees. Mail notice shall be sent to the last known address of the former employees. In order to exercise these options, written notification must be received by the employer on or before June 30, 1987, and a copy promptly sent to the Retirement System offices. Failure to exercise these options within the time allotted shall make the employee's previous service non-creditable, and shall constitute a waiver of repurchase rights.

This subparagraph does not apply to any employee who elected not be a member under 5 MRSA, §18252(1).

(2) Current employees hired on or after July 1, 1984, but before January 1, 1987, who did not work more than 15 hours per week and 720 hours in a period of 12 months or 1,170 in 18 months, and who became members of the Retirement System at the time of hire shall have an option, to be exercised before July 1, 1987, to terminate their membership and obtain a return of their contributions and accumulated interest. This option shall be presented to affected employees, and exercised, as above. Failure to exercise this limited option within the time allotted shall constitute a final rejection of the option.

D. In lieu of the provisions of paragraph B, a participating local district may elect to require that, except as provided in subsection E, regardless of employment status, all persons in the employ of a participating local district on June 30, 1991, who are not members of the Retirement System, shall become members as of July 1, 1991, and any employee of a participating local district hired after June 30, 1991, shall become a member of the Retirement System from the first day of employment.

E. On and after January 1, 1992, membership in the Maine Public Employees Retirement System for part-time, seasonal or temporary employees is governed by Chapter 802 of the Board's rules. For purposes of this subsection, "part-time, seasonal or temporary employee" means a part-time, seasonal or temporary employee as defined by 26 CFR Part 31 and by Chapter 802.

F. The requirements of paragraphs A, B, C and D are subject to the following exceptions:

(1) A retired participating local district employee receiving a retirement benefit from the Retirement System may not become a member as an employee of the participating local district from which the employee retired except as provided by 5 MRSA, Section 18457.

(2) A person receiving per diem compensation only is not eligible for membership in the System.

(3) A person employed by a school in which he is enrolled as a full-time student is not eligible for membership in the System.

(4) Membership is optional for elected officials, officials appointed for a fixed term and a chief administrative officer of a participating local district.

(5) The options provided by 5 MRSA §18252 are available only to employees who are employees of participating local districts having Section 218 agreements and who were covered by the United States Social Security Act under the Section 218 agreement prior to July 1, 1991.

(6) The requirements of paragraphs A. B and C do not apply to any class of employees, otherwise provided for by local pension provisions, who are exempt from coverage at the time that a municipality approves participation in the Retirement System.

(7) Membership is optional for employees in the service of a participating local district on the date that participating local district begins.

(8) A person employed as an election worker who is not paid more than $100 in a year is not eligible for membership in the System.

(9) A volunteer fire fighter is not eligible for membership in the System.

(10) Persons hired to respond to a natural disaster are not eligible for membership.

5. Participating District Employees - Creditable Service

Except as provided in section 3(C) and (D), creditable service for participating local district employees will be granted on the same basis granted for State employees; that is, the classification of the local district will govern the length of service granted in the same manner as for State employees.

6. Applicability

A. Except as provided in Section 4, the above rules and regulations shall apply to membership and creditable service rendered for State employees and employees of participating local districts after January 1, 1978.

B. Creditable service rendered by members classified as intermittent permanent, intermittent seasonal, intermittent project, limited period, part-time limited period, project, part-time project, part-time seasonal, legislative employees and teachers in State institutions prior to January 1, 1978, will be on the same basis as granted subsequent to this date.

C. Creditable service rendered by seasonal and part-time permanent employees prior to January 1, 1978, will be granted on the basis of M.S.R.S. procedures in effect before January 1, 1978.

D. These regulations apply only to members (State and Participating District) on January 1, 1978, and does not include those retired on or before that date.

History

• STATUTORY AUTHORITY: 5 MRSA, §17103, sub-§4; §17653; §18251; and §18256
• EFFECTIVE DATE: July 6, 1978
• RE-ADOPTED: July 12, 1979
• AMENDED: July 1, 1984
• AMENDED: January 4, 1987
• AMENDED: April 30, 1987 (EMERGENCY)
• AMENDED: June 11, 1989
• AMENDED: June 26, 1991 (EMERGENCY)
• AMENDED: November 9, 1991
• AMENDED: June 9, 1992
• AMENDED: February 7, 1993
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 3, 1996 - minor spelling and format, insertion of missing text (Sections 3 (F) (4 through 10), 4, and 5 (A, B)).
• AMENDED: December 2, 1996 - Section 2-A (D, E, F)
• NON-SUBSTANTIVE CORRECTIONS: July 1, 1997
• NON-SUBSTANTIVE CORRECTIONS: March 14, 2000
• NON-SUBSTANTIVE CORRECTIONS: March 21, 2016 - several citations and section numbers corrected; agency title updated
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 404 Membership and Creditable Service - Public School Teachers

Code Me. R. 94-411 Ch. 404 Membership and Creditable Service - Public School Teachers {#sec-94-411-ch.-404 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 404}

SUMMARY: This Chapter sets forth the bases upon which membership in the Maine Public Employees Retirement System is required or denied and sets forth the bases upon which creditable service is granted for Public School Teachers.

SECTION 1. Teachers - Membership

1. After June 30, 1991, membership in the System is compulsory for all persons employed in positions classified as teachers as defined by 5 MRSA, §17001, sub-section 42, with the exception of retired teachers drawing a benefit under the Maine Public Employees Retirement System, and substitute teachers for whom membership is optional under 5 MRSA, §17652, sub-section 6. Before July 1, 1991, adult education teachers whose service is for less than 180 hours per school year, substitute teachers whose service is for less than 30 days in each school year and persons employed by a school administrative unit while they are at the same time enrolled as students in that or any other school administrative unit are not entitled to become members of the system.

2. Before July 1, 1991, membership in the System for adult education teachers, except those who are otherwise members of the System as teachers or state employees, will be mandatory after employment of 180 hours within one school year. Membership will not be available to persons in these positions until the completion of 180 hours of employment within one school year. Individuals in these programs who are members as of September 1, 1978, will be permitted to continue membership.

3. Before July 1, 1991, membership in the System for substitute teachers will be on the following basis:

A. A substitute teacher who has a contract for full-time employment with a school administrative unit shall become a member beginning with the first day of employment.

B. A substitute teacher, except as required by paragraph 1, may not become a member prior to completion of 30 days of service in a school year.

C. A substitute teacher shall become a member upon completion of 30 days of service in a school year. If a person substitutes in several school administrative units, all service shall be combined to determine the completion of 30 days of service. A person who works as a substitute teacher in more than one school administrative unit shall keep a record of the days of service prior to completion of 30 days of service in a school year and upon completion of 30 days of service shall notify his employer.

D. Prior to employing a substitute teacher, an employer shall determine, by appropriate inquiry, whether or not a substitute teacher is a member of the System. If it is determined that a substitute teacher is not a member, the employer shall determine, by appropriate inquiry, the number of days of service the substitute teacher has for the current school year. The employer of a substitute teacher who has completed 30 days of service in a school year shall require the substitute teacher to complete an application for membership in the Maine Public Employees Retirement System and shall deduct contributions beginning with the 31st day of employment.

E. When an application for membership for a substitute teacher is sent to the Retirement System, certification of the substitute teacher's 30 days of service in the current school year shall be sent with it. The certification from each school administrative unit shall include name of school administrative unit, dates of employment and salary paid. The substitute teacher may pay the required contribution and receive service credit for the 30 days of service in that year.

F. After having become a member, membership shall continue and contributions shall be deducted from the compensation of a substitute teacher during the current year and in subsequent years regardless of the number of days of service in the subsequent years.

SECTION 2. Teachers - Creditable Service - Before July 1, 1991

1. Regular, full-time teachers paid a full contract will be given credit for a full year.

2. Substitutes - service credit is granted based upon the number of days worked pro-rated against 180 days, and the resulting portion of a year of service is earned.

3. Tutors, Adult Education and Part-time Teachers - service credit is granted based upon the number of hours worked pro-rated against 900 hours, and the resulting portion of a year of service is earned.

SECTION 3. Teachers Creditable Service - After June 30, 1991.

1. Creditable service will be granted to teachers paid on a contractual or daily basis as follows:

A. For purposes of this sub-section, a "full-time teacher" is a teacher who worked, in the pay periods covered by a payroll report, 100% of the regularly scheduled standard days prescribed by the employer for employees in the same class and school administrative unit. For the purpose of this paragraph, “full-time” must be at least 180 days.

B. Full service credit for the periods covered shall be granted to a teacher who works, in the pay periods covered by a payroll report, 100% of the days worked by a full-time teacher.

C. A teacher who works less than 100% of the days worked by a full-time teacher, in the payroll periods covered by a payroll report, shall be granted creditable service equal to the ratio of days worked by the teacher to 100% of the days worked by a full-time teacher.

D. Notwithstanding sub-sections B and C, a teacher shall continue to accrue creditable service while on a leave of absence without pay of up to 15 work days duration each year. If a teacher's regularly scheduled work year exceeds 180 days, the number of days in the previous sentence shall be increased to the number of days that would equal one month (i.e., .083 of one year) of creditable service.

2. A teacher on a sabbatical will be granted one year of creditable service if paid at least one-half of the teacher's contract salary for the previous year. If less than one-half of the teacher's contract salary is paid, creditable service equal to the ratio of the teacher's salary paid to 50% of the teacher's contract salary shall be granted.

3. Service credit for a teacher compensated by an hourly rate of pay is granted based upon the number of hours worked pro-rated against 900, and the resulting portion of a year of service is earned.

SECTION 4. Creditable Service for administrative, supervisory or extracurricular activities or duties.

Creditable service will granted to teachers for administrative, supervisory or extracurricular activities or duties that are activities and duties in addition to and compensated separately from the primary teaching position as follows:

1. For positions compensated by an hourly rate of pay, service is granted based upon the number of hours worked pro-rated against 900, and the resulting portion of a year of service is earned.

2. For positions compensated by a set rate (i.e., stipend), service in the amount of 2 months and 20 days (i.e., .222 of one year) is granted.

3. A member may request that a different amount of service credit be granted. The request must be filed with the Retirement System within the school year during which the services are rendered. A different amount will be granted only if and to the extent that regularly-kept records of the member's employer detailing time worked in the position demonstrate that the member is entitled to a different amount. The member's employer must certify the accuracy of the records.

4. In no case will a member be granted more than one year of service credit in a year.

SECTION 5. Applicability

1. The above rules and regulations shall apply to membership and creditable service rendered for all public school teachers after September 1, 1978.

2. Creditable service rendered by tutors, substitutes and adult education teachers prior to September 1, 1978, will be granted on the basis of retirement system procedures in effect before September 1, 1978.

3. This rule applies to public school teachers who are members on and after September 1, 1978, and does not apply to those retired on or before that date.

History

• STATUTORY AUTHORITY: 5 MRSA, §17103, sub-§4 and §17651
• EFFECTIVE DATE: September 1, 1978
• READOPTED: July 12, 1979
• AMENDED: July 1, 1987
• AMENDED: November 4, 1989
• AMENDED: June 26, 1991 (EMERGENCY)
• AMENDED: November 9, 1991
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling and format.
• AMENDED: December 2, 1996 - Section 1 (A).
• AMENDED: May 30, 2010 - filing 2010-211
• AMENDED: 94-411 Chapter 404 page 4

Chapter 406 Payment or Repayment of Contributions and Interest for the Purchase of Creditable Service

Code Me. R. 94-411 Ch. 406 Payment or Repayment of Contributions and Interest for the Purchase of Creditable Service {#sec-94-411-ch.-406 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 406}

SUMMARY: This Chapter provides the requirements for members to pay or repay contributions and applicable interest for the purchase of creditable service and sets the basis for granting creditable service when a member has made the required payment.

SECTION 1. DEFINITIONS

1. Current employer. “Current employer” means:

A. The same Maine Public Employees Retirement System (“MainePERS”) employer as the one by which the member is currently employed; or

B. For State employees and teachers (as defined in 5 M.R.S. §§ 17001(40) and 17001(42), respectively), the State of Maine or a Maine public school; or,

C. For a Legislator, as defined in 3 M.R.S. §701(11), the Legislature; or

D. For a Judge, as defined in 4 M.R.S. §1201(12), the Maine Judicial Branch; or

E. For a participating local district (PLD) employee employed in a PLD in the Consolidated Plan, any PLD that is in the Consolidated Plan.

2. Previous employer. “Previous employer” means any employer who is not the “current employer” as defined in subsection 1.

3. Lump sum payment. “Lump sum payment” means a one-time payment made by a member in an amount that is equal to the total amount owed for all service available in a given category, as set forth in Section 2.

4. Partial payment. “Partial payment” means a payment made by a member in an amount that is less than the total amount owed for all service available in a given category, as set forth in Section 2.

SECTION 2. CATEGORIES OF CREDITABLE SERVICE

The categories of creditable service are:

1. Back time, which is service with an employer, as a state employee, teacher, or participating local district employee, when the employee was not a member of the System and, therefore, did not make contributions.

2. Refunded contributions from “current employer,” which is service with a member's “current employer” when the employee was a member of the System and made contributions that were refunded when the member terminated employment or membership.

3. Refunded contributions from “previous employer” or employers, which is service with a member's previous employer or employers when the employee was a member of the System and made contributions that were refunded when the member terminated employment or membership. If a member has had refunds representing contributions for service with more than one “previous employer”, the refund relating to each “previous employer” is a separate category for the purposes of this chapter. A member who is eligible to purchase creditable service under Category 2 (“current employer” refund) must purchase that service before purchasing service under this category.

4. Service in the armed forces, which is service in the armed forces of the United States before becoming a member of the System.

5. Out-of-state service, which is service by a member in another state in a category of employment that is eligible for membership in the public employee or teacher retirement system of that state.

6. Other service, which is several other categories of creditable service available for purchase, all of which require that the cost of purchasing the service is the amount of the actuarial equivalent, at the effective date of the retirement benefit, of the additional benefit attributable to the additional creditable service to be purchased, as follows:

A. Out-of-state service of a member that is not allowed under 5 M.R.S. §§ 17754(1) and 18354(1), but is allowed under 5 M.R.S. §§ 17754(2) and 18354(2);

B. Service as a teacher in a private or parochial school that is not allowed under 5 M.R.S. §§ 17763(1) and 18362(1), but is allowed under 5 M.R.S. §§ 17763(4) and 18362(1-A);

C. Service in Vista, the Peace Corps, the Fulbright Exchange Program or the Head Start Program in Maine;

D. Service as a teacher in schools for children of U.S. Foreign Service Corps or U.S. Armed Forces personnel outside the continental United States;

E. Employment as a teacher’s aide or Educational Technician I, whether or not such employment was as a MainePERS member and when, subsequent to such employment, the person becomes a teacher member;

F. Unused accrued or accumulated sick leave, unused vacation leave, or a combination of both, which exceeds 90 days and for which the member is credited on termination of service;

G. The period of service during which a member took an unpaid or partially paid educational leave pursuant to the Maine Educational Leave Act;

H. CETA service of a member that is not allowed under 5 M.R.S. §§ 17707(4)(C) and 18308(4)(C), but is allowed under 5 M.R.S. §§ 17707(4)(D) and 18308(4)(D);

I. The period of service during which an elected official, an official appointed for a fixed term, or a substitute teacher who began membership after December 31, 1985, elected not to be a member of the MainePERS; and

J. The period of service prior to July 1, 1976 during which a member performed any work as a teacher of a child with a disability.

K. Service in the armed forces that is allowed under 5 M.R.S. §§ 17760(5) and 18360(2)(I).

L. Service as a full time law enforcement officer prior to becoming a MainePERS member that is allowed under 5 M.R.S. §§ 17767 and 18363,

M. Service as a nonmilitary public employee of the United States government prior to becoming a MainePERS member that is allowed under 5 M.R.S. §§ 17759-A and 18364.

7. Service while receiving Workers’ Compensation benefits, which is service during the period in which a member who was employed in a MainePERS-covered position received Workers’ Compensation benefits from which MainePERS contributions were not deducted.

8. Service in a parochial school or public or private academy.

9. Service for days off without pay that result from employer budgetary actions.

10. Service of a Participating Local District member who is in service when district participation begins.

SECTION 3. METHOD OF PAYMENT

The member must designate which category of creditable service is to be purchased. A member purchasing creditable service through partial payments who is eligible to purchase creditable service in more than one category must complete payment for the first designated category before beginning payment on the next category.

A member may purchase creditable service by lump sum or through partial payments as follows:

1. Lump sum payment. By making a single lump sum payment to the MainePERS at any time, subject to the provisions of subsection 3, of all principal and interest owed for all creditable service the member is eligible to purchase in any category of creditable service; or

2. Partial Payments

A. Payroll Deduction. By making an increased rate of contribution to MainePERS through payroll deduction, subject to the following provisions:

(1) The minimum payroll deduction amount is $50.00 per month, or the amount as established in subparagraph (2), whichever is greater.^[1]

(2) The cost for the purchase of creditable service through payroll deduction will be amortized over a period ending on a date determined by the member, not to exceed ten years, or on the last day of the month preceding the normal retirement age of the member, or on the last day of the month preceding the member’s anticipated retirement date, whichever is earlier.

(3) The member may change the specific payroll deduction amount, to an amount that is not less than the minimum payment amount as established in subparagraph (1), no more than once quarterly. The System will adjust either the amortization schedule or the amount of creditable service accordingly.

(4) In the event of a change in the rate of regular interest applied to the amount due, the System will:

(a) in the case of a decrease in the interest rate, adjust the amortization period accordingly; or

(b) in the case of an increase in the interest rate, adjust the amount of creditable service purchased accordingly, based on the original amortization period.

(5) The member may start or stop a payroll deduction authorization no more than once quarterly. If the member elects to stop an authorized payroll deduction, and subsequently elects to restart the payroll deduction, the member must submit a new authorization. The required payroll deduction will be recalculated under this paragraph to include any additional interest that has accrued.

(6) The member may also make periodic payments under the provisions of paragraph B toward the same category of service for which the member is making payments through payroll deduction.

B. Periodic Payments. By making a payment to MainePERS at any time of a portion of the principal and interest owed for all creditable service the member is eligible to purchase in any category of creditable service.

(1) The minimum periodic payment is $50.00 or, if the member is making payment only through periodic payments as provided in this paragraph, the amount as established in subparagraph (3), whichever is greater.

(2) Periodic payments may be made no more than once per month.

(3) The cost for the purchase of creditable service through periodic payments will be amortized over a period ending on a date determined by the member, not to exceed ten years, or on the last day of the month preceding the normal retirement age of the member, or on the last day of the month preceding the member’s anticipated retirement date, whichever is earlier.

(4) The member may change the periodic payment amount, to an amount that is not less than the minimum amount as established in subparagraph (1), no more than once quarterly. The System will adjust the amortization schedule or creditable service, accordingly.

(5) In the event of a change in the rate of regular interest applied to the amount due, the System will adjust the amortization period or amount of creditable service accordingly.

(a) in the case of a decrease in the interest rate, adjust the amortization period accordingly; or

(b) in the case of an increase in the interest rate, adjust the amount of creditable service purchased accordingly, based on the original amortization period.

(6) The member may also make payroll deductions under the provisions of paragraph A toward the same category of service for which the member is making periodic payments.

3. Time Limits

Principal and interest payments for the purchase of creditable service must be made prior to the date the retirement allowance becomes effective, or credit will be granted for only the portion of time paid.

Payments may be made after the effective date of retirement provided that:

A. The member initiates a cost inquiry prior to retirement, but MainePERS has not received sufficient information to verify the service prior to the effective date of retirement; and

B. Payment is made within ten (10) business days of written notification to the member of the availability of the additional service. MainePERS will adjust the amount of the retirement allowance as of the first day of the month following the date on which MainePERS receives the payment.

SECTION 4. NO RECISSION OF PURCHASE OF CREDITABLE SERVICE

A member who purchases creditable service may not rescind the purchase of that service nor receive a refund of the payment or payments made towards that purchase unless the member takes a refund of all member contributions under the provisions of 3 M.R.S. §805-A, 4 M.R.S. §1305-A, or 5 M.R.S. §§ 17705-A or 18306-A.

SECTION 5. NO PAYMENT BY BENEFICIARY

After the death of a member, no payment may be made by a beneficiary of the member to purchase additional creditable service.

SECTION 6. GRANTING OF CREDITABLE SERVICE

1. When a member requests the cost to purchase creditable service in any category of creditable service except Category 6, “Other service,” the System will determine the contributions and applicable interest required to purchase all creditable service that the member is eligible to purchase in each selected category. At the time the balance due is determined, the total creditable service the member is eligible to purchase in each category will also be determined and recorded. Upon making a payment under Section 3, the member will be granted creditable service as follows:

A. Lump Sum Payment. When a member makes a lump sum payment, the member will be granted all of the creditable service in the selected category.

B. Partial Payments. Calculation and granting of creditable service based upon partial payments will be as follows:

(1) When a member makes a partial payment, the payment will first be applied toward any applicable Survivor Benefit and Retirement Allowance Adjustment contributions due. In order to determine the amount of creditable service to be granted to the member as a result of the payment, the percentage of the balance of the employee contributions due that the payment represents will be determined and the same percentage will be applied to the total creditable service available for purchase.

(2) Upon request by the member, the System will provide the member with a statement that includes the remaining balance due, the total creditable service the member is eligible to purchase and the amount of creditable service that the member has purchased.

2. When a member requests the cost to purchase creditable service in Category 6, “Other service,” a calculation will be made to estimate the actuarial cost of purchasing all creditable service in that category. At the time the balance due is determined, the total creditable service the member is eligible to purchase will also be determined and recorded. Upon making a payment under Section 3, the member will be granted creditable service as follows:

A. Lump Sum Payment. If, prior to the final calculation of a retirement benefit, a member makes a single lump sum payment in an amount equal to the total estimated amount owed, as determined in subsection 2, the member will be notified that the cost will be recalculated as of the member's retirement date, and the member will be notified in writing if there is an additional amount due at retirement. The member will have a choice of paying the additional amount or receiving pro rata credit.

B. Partial Payments. Calculation and granting of creditable service based upon partial payments will be as follows:

(1) When a member makes a partial payment, the new balance due will be determined, but no creditable service will be granted at that time.

(2) The cost will be recalculated as of the member's retirement date, and the member will be notified in writing if there is an additional amount due. The member will have a choice of paying the additional amount or receiving pro rata credit.

C. Creditable service purchased under Section 2 will be granted upon the member’s retirement.

D. Upon request by the member, the System will provide the member with a statement that includes the estimated remaining balance due.

History

• STATUTORY AUTHORITY: 3 M.R.S. §805-A, 4 M.R.S. §1305-A, 5 M.R.S. §§ 17103(4), 17657, 17658, 17701, 17703, 17704-C, 17705-A, 17707, 17752, 17753, 17754, 17756, 17757, 17759, 17760, 17761, 17763, 17763-A, 17764, 17765, 17766, 17767, 18301, 18305-B, 18306-A, 18308, 18353, 18354, 18357, 18358, 18360, 18362, and 18363.
• EFFECTIVE DATE: March 12, 1983
• AMENDED: September 2, 1990
• AMENDED: October 7, 1991 (EMERGENCY - expired January 5, 1992)
• AMENDED: April 1, 2001
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 2, 1996 - minor spelling and format.
• REPEALED AND REPLACED: August 30, 2010 – filing 2010-376
• AMENDED: November 4, 2019 – filing 2019-188
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• APAO ACCESSIBILITY CHECK: November 18, 2025 (no issues detected)
• AMENDED: November 22, 2025 – filing 2025-221
• AMENDED: For members purchasing creditable service through payroll deduction prior to the effective date of this rule, the minimum payroll deduction amount is $25.00 per month. ↑

Chapter 410 Retirees Returning to Employment after Retirement with the Same Employer

Code Me. R. 94-411 Ch. 410 Retirees Returning to Work {#sec-94-411-ch.-410 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 410}

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SUMMARY: This Chapter sets out requirements and guidance regarding retiree reemployment while receiving a MainePERS retirement benefit.

SECTION 1. DEFINITIONS

Actuarial Equivalent Rate. “Actuarial Equivalent Rate” means the actuarial discount rate adopted by the MainePERS Board of Trustees.

Bona Fide Termination of Employment. "Bona Fide Termination of Employment" means that the retiree terminated employment in good faith without any explicit understanding or agreement to return to work with the Same Employer.

Early Distribution Tax. “Early Distribution Tax” is an additional ten percent (10%) federal tax on retirement benefits paid prior to age 59 ½.

Normal Retirement Age. “Normal Retirement Age” has the same meaning as defined in 5 M.R.S. §17001(23).

Same Employer. “Same Employer” as used in this Chapter means the employer for whom the retiree last worked prior to retiring who provides the MainePERS retirement plan from which the retiree retired. It does not include other employers that participate in the same retirement program.

SECTION 2. RESTRICTIONS AND EARLY DISTRIBUTION TAX

Retirees may be subject to restrictions on their ability to return to work with the Same Employer and may be subject to an Early Distribution Tax on their service retirement benefit as follows:

Except as set forth in subsections 4 and 5, a retiree who has reached age 59 ½ may return to work as an employee with the Same Employer without restriction and without an Early Distribution Tax on the retiree’s service retirement benefit.

A retiree who has not reached age 59 ½, but has reached Normal Retirement Age, may return to work with the Same Employer. However, the retiree’s service retirement benefits are subject to an Early Distribution Tax until the retiree reaches age 59 ½ if the retiree has not had a Bona Fide Termination of Employment.

A retiree who has neither reached age 59 ½ nor Normal Retirement Age may return to work for the Same Employer only after a Bona Fide Termination of Employment, and any such return to work is limited to no more than 90 days in any one year.

In no case may a retiree return to work with the Same Employer before the effective date of retirement.

In addition to the above requirements, a retired State employee or teacher may not return to work with the Same Employer for at least 30 days after termination of employment.

6. A judge or justice who has terminated employment and becomes an active retired judge or an active retired justice before the effective date of retirement is not considered a retiree returning to work for the Same Employer and is not required to terminate employment again to subsequently qualify for retirement.

SECTION 3. REPORTING REQUIREMENTS

MainePERS is required to report to the Internal Revenue Service whether retirement benefit distributions are subject to the Early Distribution Tax. For purposes of determining whether there has been a Bona Fide Termination of Employment, if the retiree is below age 59 ½, both the retiree and employer must certify to MainePERS at the time of retirement whether there is an explicit understanding or agreement that the employee will be reemployed after retirement.

An employer who provides retirement benefits through a MainePERS retirement plan is required to identify and report to MainePERS all retirees from the plan who have returned to work with the employer, regardless of whether the employer is the Same Employer under Section 1, subsection 5.

SECTION 4. BENEFIT SUSPENSION AND RECOVERY

The service retirement benefit must be suspended during any time period when a retiree fails to comply with the requirements in Section 2, subsections 3 or 4.

Any payment of retirement benefits made to a retiree during a period of non-compliance with Section 2, subsections 3 or 4, will be considered an overpayment. MainePERS may recover the overpayment plus interest at the Actuarial Equivalent Rate by adjusting any future benefit payments or as otherwise permitted by 5 M.R.S. § 17054(3).

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4), 17603(9), 18205(9); 18801
• EFFECTIVE DATE: April 17, 2004
• AMENDED: August 30, 2009 – filing 2009-444
• REPEALED AND REPLACED: August 3, 2026 – 2026-178

Chapter 411 Eligible Rollover Distributions

Code Me. R. 94-411 Ch. 411 Eligible Rollover Distributions {#sec-94-411-ch.-411 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 411}

SUMMARY: This Chapter establishes the rules pertaining to a member’s right to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan pursuant to Internal Revenue Code Section 401(a)(31).

SECTION 1. DEFINITIONS

1. Code. “Code” means the Internal Revenue Code of 1986, as amended.

2. Eligible rollover distribution. “Eligible rollover distribution” means any distribution of all or any portion of the balance to the credit of the distributee.

Effective January 1, 2002, a portion of a distribution will not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only:

to an individual retirement account or annuity described in Code Section 408(a) or (b) or to a qualified defined contribution plan described in Code Section 401(a), that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible;

on or after January 1, 2007, to a qualified defined benefit plan described in Code Section 401(a) or to an annuity contract described in Code Section 403(b), that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible; or

on or after January 1, 2008, to a Roth IRA described in Code Section 408A.

Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under a QDRO.

Effective January 1, 2007, the definition of an eligible rollover distribution also includes a distribution to a nonspouse beneficiary who is a designated beneficiary as defined in Code Section 401(a)(9)(E).

An eligible rollover distribution does not include:

Any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or the life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more;

Any distribution to the extent such distribution is required under Code Section (401)(a)(9);

The portion of any distribution that is not includible in gross income; and

Any other distribution that is reasonably expected to total less than $200 during the year.

Eligible retirement plan. “Eligible retirement plan” means any of the following that accepts the distributee’s eligible rollover distribution:

A. An individual retirement account described in Code Section 408(a);

B. An individual retirement annuity described in Code Section 408(b);

C. An annuity plan described in Code Section 403(a);

D. A qualified trust described in Code Section 401(a);

E. Effective January 1, 2002, an annuity contract described in Code Section 403(b);

F. Effective January 1, 2002, a plan eligible under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or a political subdivision of a state that agrees to separately account for amounts transferred into that plan from the retirement program; or

G. Effective January 1, 2008, a Roth IRA described in Code Section 408A.

4. Distributee. “Distributee” means a member or former member.

Effective January 1, 2002, a distributee also includes the member’s or former member’s spouse and the member’s or former member’s spouse or former spouse who is the alternate payee under a QDRO.

Effective January 1, 2007, a distributee also includes a nonspouse beneficiary who is a designated beneficiary as defined by Code Section 401(a)(9)(E). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an “inherited” individual retirement account or annuity.

6. Direct rollover. “Direct rollover” means a payment by MainePERS to the eligible retirement plan specified by the distributee.

7. QDRO. “QDRO” means qualified domestic relations order, as defined in Code Section 414(p).

SECTION 2. COMPLIANCE WITH CODE SECTION 401(a)(31) FOR ELIGIBLE ROLLOVER DISTRIBUTIONS

For purposes of compliance with Code Section 401(a)(31), this section applies notwithstanding any contrary provision or retirement law that would otherwise limit a distributee’s election to make a rollover. A distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

History

• STATUTORY AUTHORITY: 5 MRSA §17103(4)
• EFFECTIVE DATE: February 14, 2010 – filing 2010-34
• AMENDED: July 22, 2013 – filing 2013-161
• AMENDED: 94-411 Chapter 411 page 3

Chapter 412 Limitations on Compensation

Code Me. R. 94-411 Ch. 412 Limitations on Compensation {#sec-94-411-ch.-412 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 412}

SUMMARY: This Chapter establishes a limit on the amount of a member’s compensation that may be taken into account when computing employee and employer contributions to or benefits due from a retirement program pursuant to Internal Revenue Code Section 401(a)(17).

SECTION 1. DEFINITIONS

1. Annual Compensation. “Annual compensation” means compensation during the plan year or the determination period.

2. Code. “Code” means the Internal Revenue Code of 1986, as amended.

3. Determination Period. “Determination period” means a consecutive 12-month period over which compensation is determined under the plan.

4. Eligible Member. “Eligible member” means a person who first became a member of a retirement program administered by the Maine Public Employees Retirement System prior to July 1, 1996.

5. Plan year. “Plan year” is the fiscal year commencing July 1.

SECTION 2. COMPLIANCE WITH CODE SECTION 401(a)(17) FOR THE LIMITATIONS ON COMPENSATION

1. Effective with respect to plan years beginning on and after July 1, 1996, and before July 1, 2002, the annual compensation of a member that exceeds $150,000 (as adjusted for cost-of-living increases under Code Section 401(a)(17)(B)) shall be disregarded for purposes of computing employee and employer contributions to or benefits due from the retirement program for any plan year. Effective only for the plan year beginning July 1, 1996, in determining the compensation of an employee eligible for consideration under this provision, the rules of Code Section 414(g)(6) shall apply, except that in applying such rules, the term “family” shall include only the spouse of the member and any lineal descendants of the employee who have not attained age 19 before the close of the year.

2. Effective with respect to plan years beginning on and after July 1, 2002, the annual compensation of a member that exceeds $200,000 (as adjusted for cost-of-living increases under Code Section 401(a)(17)(B)) may not be taken into account in determining benefits or contributions due for any plan year.

A. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.

B. If the determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is 12.

C. If the compensation for any prior determination period is taken into account in determining a member’s contributions or benefits for the current plan year, the compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period.

3. Pursuant to section 13212(d)(3)(a) of the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93), and the regulations issued under that section, eligible members are not subject to the limits of Code Section 401(a)(17), and the maximum compensation used in computing employee and employer contributions to or benefits due from the retirement program for eligible members shall be the maximum amount allowed by the retirement program to be so used on July 1, 1993. The limits referenced in subsections (1) and (2) above apply only to plan years beginning on and after July 1, 1996, and only to individuals who first become members in plan years beginning on and after July 1, 1996.

History

• STATUTORY AUTHORITY: 5 MRSA Section 17103(4)
• EFFECTIVE DATE: February 14, 2010 – filing 2010-35
• EFFECTIVE DATE: 94-411 Chapter 412 page 2

Chapter 413 Limitations on Contributions and Benefits

Code Me. R. 94-411 Ch. 413 Limitations on Contributions and Benefits {#sec-94-411-ch.-413 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 413}

SUMMARY: This Chapter establishes a limit on member contributions paid to and retirement benefits paid from a retirement program pursuant to Internal Revenue Code Section 415.

SECTION 1. DEFINITIONS

Code. “Code” means the Internal Revenue Code of 1986, as amended.

Limitation Year. “Limitation year” means a calendar year for Code section 415 testing purposes.

Plan year. “Plan year” is the fiscal year commencing July 1.

QDRO. “QDRO” means qualified domestic relations order, as defined in Code Section 414(p).

SECTION 2. APPLICABILITY

Unless otherwise specified, the provisions of this rule pertain only to the application of the limitations on contributions and benefits as required by Section 415 of the Internal Revenue Code. Nothing in this rule is otherwise intended to amend the amount of benefit that a qualified member is eligible to receive under State law.

SECTION 3. COMPLIANCE WITH CODE SECTION 415 LIMITATIONS ON CONTRIBUTIONS AND BENEFITS

Notwithstanding any other provisions of the retirement program to the contrary, the member contributions paid to and retirement benefits paid from each program shall be limited to such extent as may be necessary to conform to the requirements of Code Section 415 for a qualified pension plan.

Participation in Other Qualified Plans: Aggregation of Limits

The 415(b) limit with respect to any member who at any time has been a member in any other defined benefit plan as defined in Code Section 414(j) maintained by the member’s employer in this plan shall apply as if the total benefits payable under all such defined benefit plans in which the member has been a member were payable from one (1) plan.

The 415(c) limit with respect to any member who at any time has been a member in any other defined contribution plan as defined in Code Section 414(i) maintained by the member’s employer in this plan shall apply as if the total annual additions under all such defined contribution plans in which the member has been a member were payable from one (1) plan.

Basic 415(b) Limitation

Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in Code Section 415(b)(1)(A), subject to the applicable adjustments in Code Section 415(b) and subject to any additional limits that may be specified in the retirement program. In no event shall a member’s benefit payable under the plan in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Code Section 415(d) and the regulations thereunder.

For purposes of Code Section 415(b), the “annual benefit” means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) without regard to the benefit attributable to after-tax employee contributions (except pursuant to Code Section 415(n) and to rollover contributions (as defined in Code Section 415(b)(2)(A)). The “benefit attributable” shall be determined in accordance with Treasury Regulations.

Adjustments to Basic 415(b) Limitation for Form of Benefit

If the benefit under the plan is other than the form specified in subsection (3)(b), then the benefit shall be adjusted so that it is the equivalent of the annual benefit, using factors prescribed in Treasury Regulations.

If the form of benefit without regard to the automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount [determined using the assumptions specified in Treasury Regulation Section 1.415(b)-1(c)(2)(ii)] that takes into account the additional benefits under the form of benefits as described in (b) or (c).

For a monthly benefit to which Code Section 417(e)(3) does not apply, the actuarially equivalent straight life annuity benefit that is the greater of (or the reduced 415(b) limit applicable at the annuity starting date which is the “lesser of” when adjusted in accordance with the following assumptions):

The annual amount of the straight life annuity (if any) payable to the member under the plan commencing at the same annuity starting date as the form of benefit to the member; or

The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using a 5% interest assumption (or the applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the applicable mortality tables described in Treasury Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent Revenue Ruling or federal law modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in Code Section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing Code Section 417(e)(3)(B)).

For a lump sum benefit to which Code Section 417(e)(3) applies , the actuarially equivalent straight life annuity benefit that is the greatest of (or the reduced Code Section 415(b) limit applicable at the annuity starting date which is the “least of” when adjusted in accordance with the following assumptions):

The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;

The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using a 5.5 percent interest assumption (or the applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling or federal law modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in Code Section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing Code Section 417(e)(3)(B)); or

The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under Treasury Regulation Section 1.417(3)-1(d)(3) (the 30-year Treasury rate (prior to January 1, 2007, using the rate in effect for the month prior to retirement, and on and after January 1, 2007, using the rate then in effect for the first day of the plan year with a one-year stabilization period)) and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling or federal law modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in Code Section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing Code Section 417(e)(3)(B)), divided by 1.05.

Benefits Not Taken into Account for 415(b) Limitation

For purposes of this section, the following benefits shall not be taken into account in applying these limits:

Any ancillary benefit which is not directly related to retirement income benefits;

That portion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity;

Any other benefit not required under Code Section 415(b)(2) and Treasury Regulations thereunder to be taken into account for purposes of the limitation of Code Section 415(b)(1).

Other Adjustments in 415(b) Limitation

In the event the member’s retirement benefits become payable before age sixty-two (62), the limit prescribed by this section shall be reduced in accordance with Treasury Regulations pursuant to the provisions of Code Section 415(b), so that such limit (as so reduced) equals an annual straight life benefit (when such retirement income benefit begins) which is equivalent to a one hundred sixty thousand dollar ($160,000) (as adjusted) annual benefit beginning at age sixty-two (62).

In the event the member’s benefit is based on at least fifteen (15) years of service as a full-time employee of any police or fire department or on fifteen years (15) years of military service, the adjustments provided for in (a) above shall not apply.

The reductions provided for in (a) above shall not be applicable to pre-retirement disability benefits or pre-retirement death benefits.

Less than Ten (10) Years of Participation

The maximum retirement benefit payable under this section 3 to any member who has completed less than ten (10) years of participation shall be the amount determined under subsection 3, above, as adjusted under subsections 4 and/or 6, above, multiplied by a fraction, the numerator of which is the number of the member’s years of participation and the denominator of which is ten (10). The reduction provided by this subsection 7 cannot reduce the maximum benefit below 10% of the limit determined without regard to this subsection. The reduction provided for in this subsection shall not be applicable to pre-retirement disability benefits or pre-retirement death benefits.

Ten Thousand Dollar Limit; Less than Ten (10) Years of Service

Notwithstanding anything in this section 3 to the contrary, the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this section if the benefits payable, with respect to such member under this plan and under all other qualified defined benefit pension plans to which the member’s employer contributes, do not exceed ten thousand dollars ($10,000) for the applicable limitation year and for any prior limitation year and the employer has not at any time maintained a qualified defined contribution plan in which the member participated; provided, however, that if the member has completed less than ten (10) years of service with the employer, the limit under this subsection 8 shall be a reduced limit equal to ten thousand dollars ($10,000) multiplied by a fraction, the numerator of which is the number of the member's years of service and the denominator of which is ten (10).

Effect of COLA without a Lump Sum Component on 415(b) Testing

Effective on and after January 1, 2009, for purposes of applying the limits under section 415(b) of the Internal Revenue Code (the "Limit") to a member with no lump sum benefit, the following will apply:

a member’s applicable Limit will be applied to the member's annual benefit in the member's first limitation year without regard to any cost of living adjustments under relevant state law;

to the extent that the member's annual benefit equals or exceeds the Limit, the member will no longer be eligible for cost of living increases until such time as the benefit plus the accumulated increases are less than the Limit; and

thereafter, in any subsequent limitation year, a member’s annual benefit, including any cost of living increases under relevant state law, shall be tested under the then applicable benefit Limit including any adjustment to the section 415(b)(1)(A) of the Internal Revenue Code dollar limit under section 415(d) of the Internal Revenue Code, and the regulations thereunder.

Section 415(c) Limitations on Contributions and Other Additions

After-tax member contributions or other annual additions with respect to a member may not exceed the lesser of $40,000 (as adjusted pursuant to section 415(d) of the Internal Revenue Code) or 100% of the member's compensation.

Annual additions are defined to mean the sum (for any year) of employer contributions to a defined contribution plan, member contributions, and forfeitures credited to a member's individual account. Member contributions are determined without regard to rollover contributions and to picked-up employee contributions that are paid to a defined benefit plan.

For purposes of applying section 415(c) of the Internal Revenue Code and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by Treasury Regulation section 1.415(c)-2, or successor regulation; provided, however, that member contributions picked up under section 414(h) of the Internal Revenue Code shall not be treated as compensation.

Compensation will be defined as wages within the meaning of section 3401(a) of the Internal Revenue Code and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under sections 6041(d), 6051(a)(3) and 6052 of the Internal Revenue Code and will be determined without regard to any rules under section 3401(a) of the Internal Revenue Code that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in section 3401(a)(2) of the Internal Revenue Code).

For limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under section 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Internal Revenue Code. For limitation years beginning after December 31, 2000, compensation shall also include any elective amounts that are not includible in the gross income of the member by reason of section 132(f)(4) of the Internal Revenue Code.

For limitation years beginning on and after January 1, 2009, compensation for the limitation year shall also include compensation paid by the later of 2½ months after a member's severance from employment or the end of the limitation year that includes the date of the member's severance from employment if:

i. the payment is regular compensation for services during the member's regular working hours, or compensation for services outside the member's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the member while the member continued in employment with the employer; or

ii. the payment is for unused accrued bona fide sick, vacation or other leave that the member would have been able to use if employment had continued.

Any payments not described in paragraph (2) above are not considered compensation if paid after severance from employment, even if they are paid within 2½ months following severance from employment, except for payments to the individual who does not currently perform services for the employer by reason of qualified military service (within the meaning of section 414(u)(1) of the Internal Revenue Code) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service.

An employee who is in qualified military service (within the meaning of section 414(u)(1) of the Internal Revenue Code) shall be treated as receiving compensation from the employer during such period of qualified military service equal to (i) the compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for the absence during the period of qualified military service, or (ii) if the compensation the employee would have received during such period was not reasonably certain, the employee's average compensation from the employer during the twelve (12) month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service)

Back pay, within the meaning of Treasury Regulation section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.

(4) Retroactive pay will be treated as compensation in the year received.

For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this section shall not exceed the annual limit under section 401(a)(17) of the Internal Revenue Code.

Service Purchases Under Section 415(n)

Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the plan, then the requirements of section 415(n) of the Internal Revenue Code will be treated as met only if:

the requirements of section 415(b) of the Internal Revenue Code are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of section 415(b) of the Internal Revenue Code, or

the requirements of section 415(c) of the Internal Revenue Code are met, determined by treating all such contributions as annual additions for purposes of section 415(c) of the Internal Revenue Code.

For purposes of applying this section, the System will not fail to meet the reduced limit under section 415(b)(2)(C) of the Internal Revenue Code solely by reason of this subparagraph and will not fail to meet the percentage limitation under section 415(c)(1)(B) of the Internal Revenue Code solely by reason of this section.

For purposes of this section the term "permissive service credit" means service credit:

(i) recognized by the System for purposes of calculating a member's benefit under the System,

(ii) which such member has not received under the System, and

(iii) which such member may receive only by making a voluntary additional contribution, in an amount determined under the System, which does not exceed the amount necessary to fund the benefit attributable to such service credit.

Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if permitted under State law, such term may include service credit for periods for which there is no performance of service, and, notwithstanding clause A(4)(ii), above, may include service credited in order to provide an increased benefit for service credit which a member is receiving under the System.

The retirement program will fail to meet the requirement of this section if :

more than five years of nonqualified service credit are taken into account for purposes of this subparagraph, or

(ii) any nonqualified service credit is taken into account under this paragraph before the member has at least five years of participation under the System.

For purposes of subparagraph B(1), above, effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, the term "nonqualified service credit" means permissive service credit other than that allowed with respect to:

(i) service (including parental, medical, sabbatical, and similar leave) as an employee of the Government of the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repayment described in section 415(k)(3) of the Internal Revenue Code),

(ii) service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in clause (i)) of an education organization described in section 170(b)(1)(A)(ii) of the Internal Revenue Code which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12), or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed,

(iii) service as an employee of an association of employees who are described in clause (i), or

(iv) military service (other than qualified military service under section 414(u) of the Internal Revenue Code) recognized by the system.

(v) In the case of service described in clause (i), (ii), or (iii), such service will be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan.

In the case of a trustee-to-trustee transfer after December 31, 2001, to which section 403(b)(13)(A) of the Internal Revenue Code or section 457(e)(17)(A) of the Internal Revenue Code applies (without regard to whether the transfer is made between plans maintained by the same employer):

(i) the limitations of subparagraph B(1) will not apply in determining whether the transfer is for the purchase of permissive service credit, and

(ii) the distribution rules applicable under federal law to the system will apply to such amounts and any benefits attributable to such amounts.

For an eligible member, the limitation of section 415(c)(1) of the Internal Revenue Code shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of a Plan as in effect on August 5, 1997. For purposes of this paragraph an eligible member is an individual who first became a member in the System before January 1, 1998.

Modification of Contributions for 415(c) and 415(n) Purposes

Notwithstanding any other provision of law to the contrary, the retirement program may modify a request by a member to make a contribution to the System if the amount of the contribution would exceed the limits provided in section 415 of the Internal Revenue Code by using the following methods:

If the law requires a lump sum payment for the purchase of service credit, the System may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under section 415(c) or 415(n) of the Internal Revenue Code.

If payment pursuant to paragraph A, above, will not avoid a contribution in excess of the limits imposed by section 415(c) or 415(n) of the Internal Revenue Code, the System may either reduce the member's contribution to an amount within the limits of those sections or refuse the member's contribution.

Repayment of Cashouts

Any repayment of contributions (including interest thereon) to the plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or another governmental plan maintained by the retirement program shall not be taken into account for purposes of section 415 of the Internal Revenue Code, in accordance with applicable Treasury Regulations.

Reduction of Benefits Priority

Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the member's benefit under any defined benefit plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be determined by the plan and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be established by the plan and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the plan and the plan administrator of all other plans covering such member.

History

• STATUTORY AUTHORITY: 5 MRSA §17103(4)
• EFFECTIVE DATE: February 14, 2010 – filing 2010-36
• AMENDED: July 22, 2013 – filing 2013-162
• AMENDED: 94-411 Chapter 413 page 10

Chapter 414 Required Minimum Distributions

Code Me. R. 94-411 Ch. 414 Required Minimum Distributions {#sec-94-411-ch.-414 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 414}

SUMMARY: This Chapter establishes the date when a member must begin to receive a service retirement benefit or withdraw accumulated contributions under a retirement program pursuant to Internal Revenue Code Section 401(a)(9), and any Code requirements on the form of distribution.

SECTION 1. DEFINITIONS

Code. “Code” means the Internal Revenue Code of 1986 , as amended.

Member. “Member” as used in this Chapter means member or retiree, depending on the context.

3. Required Beginning Date. “Required Beginning Date” means the later of the April 1 following the calendar year in which the member attains age 72 (70½ for members born before July 1, 1949) or April 1 of the year following the calendar year in which a member terminates employment.

4. QDRO. “QDRO” means qualified domestic relations order, as defined in Code Section 414(p).

5. Vested. “Vested” means that the member has met the creditable service requirement and/or applicable age requirement for eligibility to receive a service retirement benefit from the retirement plan under which the member is covered.

SECTION 2. COMPLIANCE WITH CODE SECTION 401(a)(9) FOR A REQUIRED MINIMUM DISTRIBUTION TO A VESTED MEMBER

1. Distribution of a service retirement benefit to a vested member must commence no later than the Required Beginning Date. If a member fails to apply for a service retirement benefit by the Required Beginning Date, the System will begin distribution of the monthly service retirement benefit under the benefit option set forth in 4 M.R.S.A. §1357(1), 5 M.R.S.A. §§ 17804(1) or 18404(1), as applicable to the member based upon the employer at last termination of employment before retirement.

A. The effective date of a service retirement benefit paid under this subsection is no later than April 1 of the year in which the Required Beginning Date occurs.

B. Once a service retirement benefit commences to be paid under this subsection, the member may not change the benefit option under which the benefit is paid.

2. The member’s entire interest must be distributed over a time not to exceed the member’s life or the lives of the member and a designated beneficiary, or over a period not extending beyond the life expectancy of the member or of the member and a designated beneficiary.

3. The retirement program pursuant to a QDRO may establish separate benefits for a member and an alternate payee.

4. If a member dies after the required distribution of benefits has begun, the remaining portion of the member’s interest must be distributed at least as rapidly as under the method of distribution before the member’s death.

5. If a member dies before required distribution of the member’s benefits has begun, the member’s entire interest must be either:

A. distributed (in accordance with federal regulations) over a time not to exceed the life or life expectancy of the designated beneficiary, with the distributions beginning no later than December 31 of the calendar year following the calendar year of the member’s death; or

B. distributed within five years of the member’s death.

6. The amount of an annuity paid to a member’s beneficiary may not exceed the maximum determined under the incidental death benefit requirement of Code Section 401(a)(9)(G), and the minimum distribution incidental benefit (MDIB) rule under Treasury Regulation Section 1.401(a)(9)-6, Q&A2 or any successor regulation thereto.

All payments to a member’s spouse are treated by the regulations as satisfying the MDIB rules as long as the payment to the spouse is not greater than 100% of what the member was receiving.

All optional forms of benefits payable to a non-spousal beneficiary must be designed to pay 50% or more of the present value of the total benefit to the member.

7. The death and disability benefits provided by each retirement program are limited by the incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasury Regulation Section 1.401-1(b)(1)(i) or any successor regulation thereto. As a result, the total death or disability benefits payable may not exceed 25% of the cost for all of the member’s benefits received from each retirement program.

8. Notwithstanding the other provisions of this rule or the provisions of the Treasury Regulations, benefit options under 4 M.R.S.A. §1357, 5 M.R.S.A. §§ 17804 and 18404 may continue so long as the option satisfies Code Section 401(a)(9) based on a reasonable and good faith interpretation of that section. Benefit options that do not satisfy this Section will not be available to the member or beneficiary.

SECTION 3. COMPLIANCE WITH CODE SECTION 401(a)(9) FOR A REQUIRED MINIMUM DISTRIBUTION TO A MEMBER WHO IS NOT VESTED

If a member who is not vested and has terminated employment fails to apply for a refund of accumulated contributions by January 1 of the year when the member will attain age 72 (70½ for members born before July 1, 1949), the System will refund the full amount of accumulated contributions to the member. Once a distribution is made under this Section, the member may not change the manner in which the accumulated contributions are distributed.

SECTION 4. COMPLIANCE WITH CODE SECTION 401(a)(9) FOR A REQUIRED MINIMUM DISTRIBUTION TO A BENEFICIARY OF A VESTED MEMBER

If the benefit selection form for a beneficiary of a vested member who has a choice between a lump-sum payment, or a lifetime benefit is not received by MainePERS on or before October 1 of the calendar year following the year of the member’s death, the benefit will default to the monthly benefit option as described in 5 M.R.S. §17953(5-B) and §18553(5-B). The effective date of the monthly benefit will be no later than December 31 of the calendar year following the year of the member's death. Once a distribution is made under this Section, the beneficiary may not change the manner in which the benefits are distributed.

If the sole beneficiary is the member’s spouse, the default benefit under this section will be delayed until December 31 of the year the member would have turned 72.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4), 17603(9), 18205(9)
• EFFECTIVE DATE: July 26, 2010 – filing 2010-315
• AMENDED: April 17, 2019 – filing 2019-065 (Emergency)
• AMENDED: June 24, 2019 – filing 2019-100
• AMENDED: April 19, 2021 – filing 2021-084
• AMENDED: August 20, 2022 – filing 2022-151

Chapter 415 Contributions, Benefits and Service Credit with respect to Qualified Military Service

Code Me. R. 94-411 Ch. 415 Contributions, Benefits and Service Credit with Respect to Qualified Military Service {#sec-94-411-ch.-415 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 415}

SUMMARY: This Chapter establishes the rules under which contributions, benefits and service credit shall be provided to members with qualified military service pursuant to Internal Revenue Code Section 414(u).

SECTION 1. DEFINITIONS

Code. “Code” means the Internal Revenue Code of 1986, as amended.

Qualified Military Service. “Qualified Military Service” means any service in the uniformed services as defined in USERRA by an individual if such individual is entitled to reemployment rights under USERRA with respect to such services.

USERRA. “USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994, as codified at Chapter 43, Title 38, of the United States Code.

SECTION 2. COMPLIANCE WITH CODE SECTION 414(u) FOR CERTAIN VETERANS

Notwithstanding any provisions to the contrary, contributions and service credit with respect to qualified military service under defined benefit retirement programs administered by the Maine Public Employees Retirement System shall be provided in accordance with USERRA; Code Section 414(u); and effective January 1, 2007, Code Section 401(a)(37), as amended from time to time.

If a member resumes employment in accordance with USERRA, the employer shall make any employer contribution that would have been made if the member had remained employed during the member’s qualified military service. Employer contributions made under this paragraph must be made no later than ninety (90) days after the date of reemployment or when contributions are normally due for the year in which the qualified military service was performed, if later. When determining the employer’s contribution, a member shall be treated as receiving compensation from the employer during such period of qualified military service equal to (i) the compensation the member would have received during such period if the member were not in qualified military service, determined based on the rate of pay the member would have received from the employer but for the absence during the period of qualified military service, or (ii) if the compensation the member would have received during such period was not reasonably certain, the member’s average compensation from the employer during the twelve month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service).

Effective January 1, 2007, to the extent provided under Code Section 401(a)(37), in the case of a member whose employment is interrupted by qualified military service and who dies while performing qualified military service, the survivor of such member shall be entitled to any additional benefit (other than benefit accruals) provided under the retirement program as if the member timely resumed employment in accordance with USERRA and then terminated employment the next day on account of death. Such qualified military service will count for vesting purposes.

Effective January 1, 2009, a member whose employment is interrupted by qualified military service or who is on a leave of absence for qualified military service and who receives a differential wage payment within the meaning of Code Section 414(u)(12)(D) from the employer shall be treated as an employee of the employer and the differential wage payment shall be treated as compensation for benefit calculation purposes and compensation for purpose of applying limits under Code Section 415. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

History

• STATUTORY AUTHORITY: 5 MRSA §17103(4)
• EFFECTIVE DATE: February 14, 2010 – filing 2010-37
• EFFECTIVE DATE: 94-411 Chapter 415 page 2

Chapter 505 Request for Suspension of Retirement Benefits

Code Me. R. 94-411 Ch. 505 Request for Suspension of Retirement Benefits {#sec-94-411-ch.-505 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 505}

SUMMARY: The purpose of this Chapter is to establish the procedure to be followed when a recipient of a retirement benefit from the Maine State Retirement System requests a partial or total suspension of his benefit and when he subsequently requests reinstatement of the benefit.

1. Request for Suspension of Benefit

A. The person requesting the partial or total suspension of a benefit must be the recipient of the benefit.

B. The request for partial or total suspension of a benefit must be written and the signature of the recipient must be notarized.

C. The effective date of the partial or total suspension of a benefit will be the date of receipt of written request from the recipient.

2. Request for Reinstatement of Benefit

A. Any request for reinstatement of a benefit must be written and the signature of the person entitled to the benefit notarized. The request must be filed with the Executive Director of the Maine State Retirement System.

B. The effective date of the reinstatement of the benefit will be the date of receipt of a written request for reinstatement.

C. The benefit to which the person is entitled will be paid only from the date of the reinstatement forward. The benefit will be increased by any cost of living increases granted during the period of suspension. No repayment or partial payment of funds will be made for that period of time that the person voluntarily suspended or reduced the benefit to which he or she was entitled.

D. Upon the death of a retiree who had requested the partial or total suspension of a benefit, or at any time thereafter, his beneficiary may seek reinstatement of the benefit to which the beneficiary is entitled. The benefit, or increased benefit, will be payable as of the date of the receipt of the written request for reinstatement.

AUTHORITY: 5 MRSA, §1031, sub-§5

EFFECTIVE DATE: January 4, 1987

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996

NON-SUBSTANTIVE CORRECTIONS: October 3, 1996 - minor format and spelling.

94-411 Chapter 505 page 1

Chapter 506 Eligibility for Disability Retirement Benefits

Code Me. R. 94-411 Ch. 506 Eligibility for Disability Retirement Benefits {#sec-94-411-ch.-506 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 506}

SUMMARY: This chapter sets forth the standards and processes for determining eligibility for disability retirement benefits.

SECTION 1. DEFINITIONS

Consistent with the person’s training, education, or experience. “Consistent with the person’s training, education, or experience” has the same meaning as “qualified by training, education or experience.” A member may be qualified by training, education, or experience to engage in an activity even if the member has not previously engaged in it or has not engaged in it for pay. The fact that the member may need additional training for a specific position does not mean that the position is inconsistent with the member’s training, education, or experience.

Date of incapacity. “Date of incapacity” means the date when a member stopped performing the essential functions of the member’s employment position due to functional limitations caused by a mental or physical condition.

Earnings. “Earnings” means wages, tips, and other compensation from employment that is reported as Medicare wages and tips on federal W-2 tax forms and income that is reported on federal self-employment tax schedules as subject to self-employment tax.

Employment position. “Employment position" means the position in which the member is employed at the time the member becomes incapacitated or a position that is made available to the member by the member's employer that is of comparable stature and equal or greater compensation and benefits and located within a reasonable commuting distance from the member’s residence.

Existed before membership. A condition “existed before membership” if, as of the member’s initial membership date, the condition:

1. Had been diagnosed by a health care provider;
2. Reasonably should have been diagnosed by a health care provider based on the member’s medical records and symptoms and the results of any additional tests the provider reasonably should have requested;
3. Had exhibited some, but not all signs and symptoms necessary for a diagnosis, but later manifested all such signs and symptoms and was diagnosed; or
4. Was directly caused by another condition that was diagnosed or reasonably should have been diagnosed before membership.

Incapacity. “Incapacity” means unable to perform the essential functions of the member’s employment position with reasonable accommodation due to functional limitations caused by a mental or physical condition.

In service. A member is “in service” if the member has not terminated employment and is receiving compensation for rendering services, including through the use of the member’s own accrued leave time. A member reinstated by an arbitration award, judgement, or written agreement settling a bona fide dispute between the member and employer is considered to be in service during the reinstatement period through the date of the award, judgement, or agreement unless as earlier end of service date is specified therein.

Mental or physical condition. A “mental or physical condition” is a condition affecting the member mentally or physically that is medically diagnosable.

Permanent. “Permanent” means:

1. the incapacity is likely to continue for the foreseeable future;
2. the member has reasonably pursued appropriate treatment options; and
3. those treatment options have not resolved the incapacity.

Reasonable accommodation. “Reasonable accommodation” has the same meaning as that phrase does under the federal Americans with Disabilities Act, 42 U.S.C. §12111(9).

Reasonable commuting distance. “Reasonable commuting distance” means a distance of less than 60 miles that would be reasonable for the member to commute based on the facts and circumstances, including the cost of commuting, the compensation of the employment position, the member’s commuting history, and typical commuting distances where the member resides.

12. Substantially gainful activity amount. “Substantially gainful activity amount” means the amount calculated consistent with Title 5, Section 17921(4) or 18501-B(3).

SECTION 2. INITIAL ELIGIBILITY

Standards. A member is eligible for disability retirement benefits if the member has a permanent incapacity while in service, subject to the following additional requirements where applicable:

1. If the member had less than five years of creditable service as of the member’s last date in service, the incapacity must not result from a condition that existed before membership unless the incapacity has been caused or substantially aggravated by an injury or accident received in the line of duty from events or circumstances not usually encountered within the scope of the member’s employment. 1. Events or circumstances are usually encountered within the scope of the member’s employment if they are described in the job description for the member’s position or are otherwise typically encountered one or more times during the career of a person in a position like the member’s.
2. If at least two years have passed since the member’s date of incapacity, the member must be unable to engage in any substantially gainful activity due to functional limitations caused by the mental or physical condition.

Use of the medical review service provider and independent medical examinations

1. The permanent incapacity may be revealed by an independent medical examination (IME), but the Chief Executive Officer may grant benefits without an IME and, if qualification is clear to a lay person, may grant benefits without use of the medical review service provider.
2. The Chief Executive Officer may deny benefits without use of the medical review service provider or an independent medical examination on non-medical grounds, including: 1. The applicant was not in service at the time the applicant claims the incapacity began; 2. The applicant is in an age-restricted plan and performed the essential functions of the employment position after normal retirement age; 3. The claimed incapacity has existed for more than two years and the applicant has earned more than the substantially gainful activity amount in one or more years during this time; 4. The applicant is uncooperative or unresponsive in providing essential information needed to process the application; or 5. The applicant has already been denied benefits on the same condition and last date in service.
3. The Chief Executive Officer may not otherwise deny benefits without an IME unless the IME is waived by the applicant.

Determination of inability to perform the essential functions of the employment position with reasonable accommodation

1. A member is not unable to perform the essential functions of the employment position if the member could do so with one or more reasonable accommodations.
2. When a member is incapacitated by more than one mental or physical condition, any permanent functional limitations caused by the conditions will be considered in totality as part of a whole-person approach to determine whether the limitations make the member unable to perform the essential functions of the employment position with reasonable accommodation.
3. If MainePERS determines that one or more reasonable accommodations would more likely than not allow a member to perform the essential functions of the employment position, MainePERS will communicate the reasonable accommodations in writing to the member and the employer prior to issuing a decision on eligibility for disability retirement, including, where applicable, a request to the employer that it provide the identified reasonable accommodations. 1. Employer acceptance or refusal. The employer shall inform MainePERS whether it will provide the requested reasonable accommodations. If the employer refuses because the member no longer is employed, the employer shall inform MainePERS whether the employer offered or would have provided the reasonable accommodations if requested during employment. MainePERS will communicate any information received from the employer to the member, and the member will be provided an opportunity to rebut the employer’s information. 2. Member acceptance or refusal. If the member has not terminated employment and the employer will provide the reasonable accommodations, the member shall inform MainePERS whether the member will attempt to perform the essential functions of the employment position with the reasonable accommodations. The member may provide evidence to MainePERS that the employer has refused to make the reasonable accommodations or that they would not permit the member to perform the essential functions of the employment position. 3. Final determination. After employer or member refusal or the failure of a good faith attempt to perform the essential functions of the employment position with reasonable accommodation, MainePERS shall make a decision on the member’s application for disability retirement.

Application of disabled veteran presumption. A member seeking application of the disabled veteran presumption pursuant to 5 M.R.S. §§ 17924 or 18524, based on a determination of individual unemployability must authorize release of information from the U.S. Department of Veterans Affairs as requested by MainePERS in addition to cooperating in providing other essential information needed to process the disability retirement application.

SECTION 3. REVIEWS FOR CONTINUING ELIGIBILITY

Scheduling of reviews. A disability retiree may be reviewed for continuing eligibility for disability retirement benefits in the following circumstances:

1. The retiree has not yet had a determination that they are unable to engage in any substantially gainful activity for which they are qualified by training, education or experience and at least two years have passed since the date of the determination that the retiree is eligible for disability retirement benefits; or
2. Earnings or other information about a retiree’s activities received by MainePERS show that the retiree may have capacity to engage in substantially gainful activity and at least one year has passed since any previous review.

Cooperation with review. A retiree subject to review under subsection 1 must cooperate in providing information to MainePERS, including providing medical records and releases permitting health care providers to provide medical records. An unjustified failure to cooperate will result in the discontinuance of benefits. If the failure continues for one year, it will result in permanent cessation of benefits.

Standard on review. The retiree’s eligibility for retirement benefits continues if the retiree is unable to engage in any substantially gainful activity due to functional limitations caused by one or more mental or physical conditions.

Rebuttable presumption. A retiree is presumed to be no longer eligible for retirement benefits if the retiree has earned more than the substantially gainful activity amount in one or more years while receiving disability retirement benefits. This presumption may be rebutted by information showing that the standard in subsection 3 is met notwithstanding these earnings.

Use of the medical review service provider and independent medical examinations

1. The Chief Executive Officer may determine that the retiree continues to be eligible without an IME and, if continuing eligibility is clear to a lay person, may determine that the retiree continues to be eligible without use of the medical review service provider.
2. The Chief Executive Officer may not determine that the retiree is no longer eligible for retirement benefits without an IME unless the IME is waived by the retiree.
3. IMEs under this Section are subject to the same reimbursement and waiver requirements as IMEs under Section 2.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4)
• EFFECTIVE DATE: March 1, 2023 – filing 2023-030
• AMENDED: July 31, 2024 – filing 2024-164
• APAO ACCESSIBILITY CHECK: November 18, 2025 (no issues detected)
• AMENDED: November 22, 2025 – filing 2025-222
• AMENDED: September 9, 2026 – filing 2026-198

Chapter 510 Reduction of Disability Retirement Benefits Because of Lump-sum Settlements of Benefits Payable under the Workers' Compensation or Similar Law or the United States Social Security Act Ch. 510 Tables (Word)

Code Me. R. 94-411 Ch. 510 Reduction of Disability Retirement Benefits Because of Lump-Sum Settlements of Benefits Payable Under the Workers’ Compensation or Similar Law {#sec-94-411-ch.-510 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 510}

SUMMARY: This chapter sets forth the methodology by which disability retirement benefits are reduced when a beneficiary of such benefits receives a lump-sum settlement of benefits payable under the workers’ compensation or similar law.

SECTION 1. DEFINITIONS

1. Accumulated Contributions. The term “accumulated contributions” as used in this Chapter means the amount of “accumulated contributions” calculated pursuant to the provisions of the applicable Retirement System plan, as of the effective date of the recipient’s entitlement to Retirement System disability retirement benefits.

2. Actuarial Equivalent of Accumulated Contributions. “Actuarial Equivalent of Accumulated Contributions” as used in this Chapter means the recipient’s accumulated contributions at the time of his or her disability retirement divided by the “annuity factor for recipient’s age at retirement” as calculated pursuant to Section 5.2, and then converted to a monthly amount by dividing by twelve.

3. Actuarial Equivalent of the Lump-Sum Settlement. “Actuarial Equivalent of the Lump Sum Settlement” as used in this Chapter means the amount of the “lump-sum settlement” divided by the “annuity factor for recipient’s age at effective date of lump-sum settlement” calculated pursuant to Section 5.3, and then converted to a monthly amount by dividing by twelve.

4. Average Annual Earnings. “Average Annual Earnings” means the total of the person’s average final compensation plus other wages and earnings from employment for the calendar year in which the person has the highest total of other wages and earnings from employment during the 5 years immediately preceding the year in which the person became disabled.

5. Average Final Compensation. “Average Final Compensation” as used in this Chapter means the amount of “average final compensation” calculated pursuant to the provisions of the applicable Retirement System plan, as of the effective date of the recipient’s entitlement to Retirement System disability retirement benefits.

6. Initial Disability Retirement Benefit. “Initial disability retirement benefit” as used in this Chapter means the monthly disability retirement benefit, not reduced because of disability benefits received under other laws, payable to the recipient as of the effective date of his or her entitlement to Retirement System plan disability retirement benefits, calculated pursuant to the applicable Retirement System plan provisions.

7. Lump-Sum Balance. “Lump-Sum Balance” as used in this Chapter in a given month means the sum of the lump-sum settlement and interest for that month and all prior months subject to reduction pursuant to this Chapter less the reduction amount determined pursuant to Section 4.1 for that month and all prior months subject to reduction pursuant to this Chapter.

8. Lump-Sum Settlement. “Lump-sum settlement” as used in this Chapter means the amount paid or to be paid pursuant to a settlement agreement under the workers’ compensation law and/or similar law for the same disability for which Retirement System plan disability retirement benefits are awarded, but not including any part of the lump-sum settlement amount attributable to vocational rehabilitation, attorneys’, physicians’, nurses’, hospital, medical, surgical or related fees or charges or any amount paid or payable under former Title 39, section 56-B for permanent impairment or under Title 39-A, section 212, subsection 3 for specific loss benefits..

9. Lump-Sum Settlement Agreement. A “Lump-Sum Settlement Agreement” as used in this Chapter is an agreement, signed or otherwise approved by the approving authority, describing payment of the lump-sum settlement.

10. Retirement System Plan. “Retirement System plan” as used in this Chapter means a benefit plan of the Maine Legislative Retirement System, Maine Judicial Retirement System, or the Maine State Retirement System. Benefit plans of the Maine State Retirement System include benefits for eligible state employees, teachers, and Participating Local District (“PLD”) members.

SECTION 2. APPLICABILITY

This Chapter applies to any disability retirement benefit recipient who enters into a lump-sum settlement agreement or otherwise receives a lump sum settlement under the workers’ compensation or similar law for the same disability for which disability retirement benefits were awarded pursuant to a Retirement System plan.

SECTION 3. MAKING THE REDUCTION

1. When a disability retirement benefit recipient enters into a lump-sum settlement agreement, the monthly Retirement System disability retirement benefit shall be reduced by an amount determined pursuant to the provisions of this Chapter.

2. The reduction amount determined pursuant to the provisions of this Chapter shall be deducted from Retirement System disability retirement benefits payable to the recipient, beginning the first day of the month following the effective date of the lump-sum settlement. For purposes of this Chapter, the effective date of the lump-sum settlement is the date that the settlement agreement is signed by the approving authority.

3. That same reduction amount determined pursuant to the provisions of this Chapter shall continue to be deducted from the monthly disability retirement benefit otherwise payable for the length of time that the recipient receives a Retirement System disability retirement benefit. If, for periods of time prior to the effective date of the lump-sum settlement during which Retirement System disability retirement benefits are payable to the recipient, the recipient is also paid benefits under the workers’ compensation or similar law, subject to the same limitations described in Section 1.7, then the recipient’s disability retirement benefits shall also be reduced by amounts equal to those benefits unless the applicable statute bars any reduction or requires a smaller reduction.

4. A. Notwithstanding Section 3.3, reductions pursuant to this Chapter for a recipient who continues to be entitled to receive disability retirement benefits pursuant to a Retirement System plan that provides for cost-of-living adjustments (“COLAs”) shall cease when the sum of the reduction amount equals the amount of the lump-sum settlement plus monthly interest on the lump-sum balance calculated at the annual rate of four percent (4%);

B. Notwithstanding Section 3.3, reductions pursuant to this Chapter for a recipient pursuant to a Retirement System plan that does not provide for COLAs shall cease under the same circumstances as for Section 3.4.A except that monthly interest on the lump-sum balance shall be calculated at the annual rate of six percent (6%).

5. To determine when the sum of the reduction amounts will equal the lump-sum settlement plus interest calculated monthly at the annual rate specified in Section 3.4.A and 3.4.B as applicable:

A. Calculate the interest for the first month subject to reduction by multiplying the lump-sum settlement by the specified annual interest rate and then dividing the product by 12.

B. Determine the lump-sum balance in the given month.

C. Calculate the interest for each month after the first month subject to reduction by multiplying the lump-sum balance for the previous month by the specified annual interest rate and then dividing the product by 12.

6. The month in which the lump-sum balance is zero is the last month of disability retirement benefits that will be reduced pursuant to Sections 3.4.A and 3.4.B.

7. If there is no month in which the lump-sum balance is zero, then the last month of disability retirement benefits that will be reduced pursuant to Sections 3.4.A and 3.4.B is the first month in which the lump-sum balance is a negative number. In such case, the reduction amount required for the last month shall be equal to the lump-sum balance for the previous month plus interest.

8. Notwithstanding Sections 3.3, 3.4 and 3.5, the reduction amount shall be recalculated pursuant to the provisions of this Chapter if the recipient enters into a subsequent lump-sum settlement agreement.

9. The amount payable to the disability retirement recipient after the reduction amount is applied will be adjusted by any cost-of-living adjustments (“COLAs”) according to the provisions of the applicable Retirement System plan.

SECTION 4. DETERMINING THE REDUCTION AMOUNT, IF ANY

1. The reduction amount that is to be applied to the recipient’s monthly disability retirement benefit is determined as follows:

For members of the State Employee and Teacher, Legislative and Judicial Retirement Program, by subtracting the figure representing 80% of average final compensation, converted to a monthly amount by dividing by twelve, from the amount represented by the sum of the initial disability retirement benefit and actuarial equivalent of the lump sum settlement.

For members of the Participating Local District Retirement Program, by subtracting the figure representing 80% of average annual earnings, converted to a monthly amount by dividing by twelve, from the amount represented by the sum of the initial disability retirement benefit and actuarial equivalent of the lump sum settlement.

2. If the result obtained in Section 4.1 is zero or a negative number, then no reduction is applied to the monthly disability retirement benefits.

3. If the reduction amount calculated in Section 4.1 causes the initial disability retirement benefit to be reduced to an amount that is less than the “actuarial equivalent of accumulated contributions”, then the full reduction amount calculated in Section 4.1 may not be applied. Instead, the recipient shall receive the “actuarial equivalent of accumulated contributions” in lieu of the amount obtained by applying the full reduction described in section 4.1.

SECTION 5. DETERMINING THE ANNUITY FACTORS TO BE USED FOR SECTION 4

1. Selecting the Applicable Table. To determine the “annuity factor at age of retirement” or the “annuity factor at age at effective date of lump-sum settlement,” use Table AA of Chapter 303.

NOTE: As of the effective date of this rule, judicial retirement, legislative retirement, and Maine State Retirement System plans for state employees and teachers all include COLAs. Some Participating Local District (“PLD”) plans include COLAs and others do not.

2. Determining the “Annuity Factor for Recipient’s Age at Retirement.” To determine the “annuity factor for recipient’s age at retirement,” use the applicable Table to locate the annuity factor that corresponds to the recipient’s attained age as of the first day of the first month for which he or she received Retirement System plan disability benefits. If the recipient’s previous birthday was six months or more prior to the first day of the first month for which he or she received Retirement System plan disability retirement benefits, then use the recipient’s age at his or her next birthday to locate the applicable annuity factor.

3. Determining the “Annuity Factor for Recipient’s Age at Effective Date of Lump-Sum Settlement. To determine the “annuity factor for recipient’s age at effective date of lump-sum settlement, use the applicable Table to locate the annuity factor that corresponds to the recipient’s attained age as of the effective date of the lump-sum settlement. If the recipient’s previous birthday was six months or more prior to the effective date of the lump-sum settlement, then use the recipient’s age at his or her next birthday to locate the applicable annuity factor.

SECTION 6. DETERMINING THE AMOUNT OF THE “LUMP-SUM SETTLEMENT” IF THE SETTLEMENT PROVIDES FOR PAYMENT IN A MONTH OR MONTHS FOLLOWING THE DATE THAT THE SETTLEMENT AGREEMENT IS SIGNED BY THE APPROVING AUTHORITY

1. If the lump-sum settlement is to be paid in a single payment but at a date subsequent to the effective date of the settlement agreement, then the single settlement payment must be converted into a single present value amount using the methodology of Section 6.5.B. The resulting present value shall be used as the amount of the lump-sum settlement for purposes of this Chapter.

2. If the lump-sum settlement is to be paid not as a single settlement payment, but instead is to be paid in installments, then the installment amounts must be converted into a single present value amount pursuant to the provisions of this Section. The resulting single present value shall be used as the “lump-sum settlement” for purposes of this Chapter.

3. The provisions of this Chapter do not apply if all of the installments to be paid pursuant to the lump-sum settlement agreement are to be paid in scheduled increments such that the total paid each month is less than or equal to the recipient’s disability retirement benefit for that month in the absence of any reduction because of benefits payable under the workers’ compensation or similar law. Instead, the recipient’s disability retirement benefits shall be reduced in the same manner as if there had been no lump-sum settlement agreement.

4. Any part of the lump-sum settlement payment amounts attributable to vocational rehabilitation, attorneys’ fees, physicians, nurses, hospital, medical, surgical or related fees or charges of any amount paid or payable under former Title 39, section 56-B for permanent impairment or under Title 39-A, section 212, subsection 3 for specific loss benefits shall not be included in any of the payment amounts for purposes of this Section.

5. The single present value of the settlement paid in installments shall be calculated as follows:

A. Determine the amount of the first installment payment if the first payment is scheduled to be issued in the same month or in the month immediately following the month that the settlement agreement is signed or otherwise approved by the approving authority.

B. To determine the present value of any payment to be issued in a subsequent month, except for any installment amount to be paid for a “term certain and life thereafter,” apply an effective (“real”) interest rate of 7.75% per year.

C. Determine the present value, using an effective (“real”) interest rate of 7.75% per year of any settlement installment amount to be paid for a certain term of years (“term certain”) and life thereafter as follows:

(1) Add the recipient’s age as used in Section 5.3 to the number of years in the term certain.

(2) Using the sum obtained in Section 6.5.C.1, locate on Table X the corresponding figure in Column B.

(3) Divide the amount obtained in Section 6.5.C.2 by the figure in Column A in Table X corresponding to the recipient’s age as used in Section 5.3.

(4) Add the result in Section 6.5.C.3 to the annuity factor on Table Y corresponding to the number of months in the term certain.

(5) Multiply the result obtained in Section 6.5.C.4 by the installment amount to be paid annually for the term certain and life thereafter.

D. Add the total results obtained in Sections 6.5.A, 6.5.B and 6.5.C.A to obtain the single value amount to be used as the amount of the “lump-sum settlement” for purposes of this Chapter.

The attached TABLES are an integral part of this Chapter:

TABLE ‘X’: Annuity Factors for use with installment settlement

TABLE ‘Y’: Annuity Factors (for installment settlements) corresponding with the number of months in term certain.

APA Office Note: the tables are available from the Maine Public Employees Retirement System.

History

• STATUTORY AUTHORITY: 3 M.R.S.A. §853; 4 M.R.S.A. §1353(6); 5 M.R.S.A. §§ 17930(4) and 18530(4)
• STATUTORY AUTHORITY: EFFECTIVE DATE
• STATUTORY AUTHORITY: July 6, 1999
• AMENDED: June 21, 2006 – filing 2006-269
• AMENDED: March 1, 2023 – filing 2023-033
• AMENDED: September 22, 2025 – filing 2025-176
• APAO ACCESSIBILITY CHECK: September 18, 2025 (no accessibility issues detected)

Chapter 510 Tables (Word)

Code Me. R. 94-411 Ch. 510 Tables (Word) {#sec-94-411-ch.-510 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 510}

Table "X"

Annuity Factors For Use with Installment Settlements (Disability Retirement)

Mortality: UP94 50% Male + 50% Female (both lives) Interest: 7.75% per year

COLA: 0.0% per year

Age

Column A

Column B

Age

Column A

Column B

30

95342.4204

1061592.1261

68

2493.0890

18367.7162

31

87595.7492

969800.2633

69

2218.6850

16000.3957

32

80445.5785

885481.6757

70

1970.2375

13895.5825

33

73847.9958

808059.9893

71

1745.5701

12028.3175

34

67762.2356

737001.3002

72

1542.3096

10375.9085

35

62149.0698

671811.7656

73

1358.6166

8917.7915

36

56977.9788

612032.7791

74

1192.8364

7635.1575

37

52215.1486

557237.7641

75

1043.4335

6510.7974

38

47830.0453

507032.4545

76

909.5515

5528.7265

39

43794.2105

461052.1668

77

790.0512

4673.9459

40

40081.1117

418959.7933

78

683.7107

3932.6341

41

36666.0894

380443.9001

79

589.3599

3292.1675

42

33526.1791

345216.9363

80

505.8923

2741.0636

43

30640.1273

313013.5310

81

432.2762

2268.9120

44

27988.2136

283588.8641

82

367.5543

1866.3000

45

25552.1871

256717.1626

83

310.8466

1524.7368

46

23315.1198

232190.2981

84

261.3468

1236.5776

47

21261.3769

209816.4771

85

218.3188

994.9520

48

19376.5238

189418.9913

86

181.0911

793.6958

49

17647.2207

170835.0647

87

149.0514

627.2896

50

16061.1655

153914.7860

88

121.6406

490.8015

51

14606.9406

138520.1403

89

98.3479

379.8367

52

13274.4352

124523.9313

90

78.7051

290.4918

53

12052.7190

111809.4494

91

62.2820

219.3139

54

10933.7233

100269.6034

92

48.6836

163.2645

55

9909.7788

89805.1880

93

37.5609

119.6788

56

8973.5600

80324.5095

94

28.5575

86.2445

57

8118.1444

71743.0150

95

21.3580

60.9868

58

7337.0169

63982.8873

96

15.6728

42.2345

59

6624.1108

56972.6190

97

11.2714

28.5790

60

5973.8537

50646.5427

98

7.9188

18.8442

61

5381.1642

44944.3383

99

5.4211

12.0702

62

4841.3748

39810.5776

100

3.6040

7.4819

63

4350.2010

35194.3241

101

2.3173

4.4676

64

3903.6786

31048.7792

102

1.4341

2.5551

65

3498.0801

27330.9999

103

0.8492

1.3890

66

3129.9100

24001.6644

104

0.4772

0.7103

67

2795.9145

21024.8357

105

0.2512

0.3367

Table "Y"

Annuity Factors For Use with Installment Settlements

Corresponding with Number of Months in Term Certain

Mortality: None

Interest: 7.75% per year

COLA: 0.0% per year

No. of

Annuity

No. of

Annuity

No. of

Annuity

No. of

Annuity

Months

Factor

Months

Factor

Months

Factor

Months

Factor

1

0.083333

46

3.344060

91

5.808677

136

7.671557

2

0.166150

47

3.406656

92

5.855991

137

7.707319

3

0.248453

48

3.468865

93

5.903011

138

7.742859

4

0.330246

49

3.530688

94

5.949740

139

7.778179

5

0.411531

50

3.592128

95

5.996179

140

7.813280

6

0.492313

51

3.653186

96

6.042330

141

7.848163

7

0.572593

52

3.713866

97

6.088195

142

7.882830

8

0.652376

53

3.774170

98

6.133776

143

7.917282

9

0.731664

54

3.834100

99

6.179074

144

7.951521

10

0.810460

55

3.893658

100

6.224091

145

7.985547

11

0.888768

56

3.952847

101

6.268828

146

8.019362

12

0.966590

57

4.011668

102

6.313289

147

8.052967

13

1.043929

58

4.070125

103

6.357473

148

8.086364

14

1.120789

59

4.128220

104

6.401384

149

8.119554

15

1.197173

60

4.185954

105

6.445023

150

8.152538

16

1.273082

61

4.243330

106

6.488390

151

8.185317

17

1.348521

62

4.300351

107

6.531489

152

8.217894

18

1.423492

63

4.357018

108

6.574321

153

8.250268

19

1.497999

64

4.413333

109

6.616887

154

8.282441

20

1.572043

65

4.469300

110

6.659189

155

8.314415

21

1.645628

66

4.524919

111

6.701229

156

8.346191

22

1.718757

67

4.580193

112

6.743008

157

8.377770

23

1.791432

68

4.635125

113

6.784528

158

8.409153

24

1.863657

69

4.689716

114

6.825791

159

8.440341

25

1.935434

70

4.743968

115

6.866797

160

8.471336

26

2.006765

71

4.797884

116

6.907550

161

8.502139

27

2.077655

72

4.851466

117

6.948049

162

8.532750

28

2.148105

73

4.904715

118

6.988298

163

8.563172

29

2.218118

74

4.957635

119

7.028297

164

8.593405

30

2.287696

75

5.010226

120

7.068048

165

8.623451

31

2.356844

76

5.062491

121

7.107552

166

8.653310

32

2.425562

77

5.114432

122

7.146812

167

8.682985

33

2.493855

78

5.166050

123

7.185828

168

8.712475

34

2.561724

79

5.217349

124

7.224602

169

8.741782

35

2.629172

80

5.268330

125

7.263135

170

8.770908

36

2.696202

81

5.318994

126

7.301430

171

8.799853

37

2.762816

82

5.369345

127

7.339487

172

8.828618

38

2.829017

83

5.419383

128

7.377309

173

8.857206

39

2.894808

84

5.469110

129

7.414895

174

8.885616

40

2.960190

85

5.518530

130

7.452249

175

8.913849

41

3.025168

86

5.567643

131

7.489371

176

8.941908

42

3.089742

87

5.616451

132

7.526263

177

8.969793

43

3.153916

88

5.664957

133

7.562926

178

8.997504

44

3.217692

89

5.713162

134

7.599362

179

9.025044

45

3.281072

90

5.761068

135

7.635571

180

9.052413

Table "Y"

Annuity Factors For Use with Installment Settlements

Corresponding with Number of Months in Term Certain

Mortality: None

Interest: 7.75% per year

COLA: 0.0% per year

181

9.079613

226

10.143891

271

10.948325

316

11.556356

182

9.106643

227

10.164322

272

10.963768

317

11.568028

183

9.133507

228

10.184627

273

10.979115

318

11.579628

184

9.160203

229

10.204805

274

10.994367

319

11.591156

185

9.186734

230

10.224859

275

11.009524

320

11.602613

186

9.213101

231

10.244788

276

11.024588

321

11.613999

187

9.239304

232

10.264593

277

11.039558

322

11.625314

188

9.265344

233

10.284276

278

11.054435

323

11.636559

189

9.291223

234

10.303837

279

11.069220

324

11.647734

190

9.316942

235

10.323276

280

11.083913

325

11.658840

191

9.342501

236

10.342595

281

11.098515

326

11.669877

192

9.367901

237

10.361794

282

11.113027

327

11.680845

193

9.393145

238

10.380874

283

11.127448

328

11.691746

194

9.418231

239

10.399835

284

11.141780

329

11.702579

195

9.443162

240

10.418679

285

11.156024

330

11.713345

196

9.467938

241

10.437407

286

11.170178

331

11.724044

197

9.492561

242

10.456018

287

11.184246

332

11.734676

198

9.517031

243

10.474513

288

11.198226

333

11.745243

199

9.541350

244

10.492894

289

11.212119

334

11.755744

200

9.565517

245

10.511161

290

11.225926

335

11.766180

201

9.589535

246

10.529315

291

11.239647

336

11.776552

202

9.613403

247

10.547356

292

11.253284

337

11.786859

203

9.637124

248

10.565286

293

11.266836

338

11.797102

204

9.660698

249

10.583104

294

11.280303

339

11.807281

205

9.684125

250

10.600811

295

11.293688

340

11.817398

206

9.707407

251

10.618409

296

11.306989

341

11.827452

207

9.730545

252

10.635898

297

11.320208

342

11.837443

208

9.753540

253

10.653278

298

11.333345

343

11.847373

209

9.776391

254

10.670551

299

11.346400

344

11.857241

210

9.799101

255

10.687716

300

11.359375

345

11.867047

211

9.821671

256

10.704775

301

11.372269

346

11.876793

212

9.844100

257

10.721728

302

11.385083

347

11.886479

213

9.866390

258

10.738576

303

11.397817

348

11.896104

214

9.888542

259

10.755320

304

11.410473

349

11.905670

215

9.910557

260

10.771959

305

11.423050

350

11.915176

216

9.932435

261

10.788496

306

11.435549

351

11.924624

217

9.954177

262

10.804930

307

11.447971

352

11.934012

218

9.975785

263

10.821262

308

11.460315

353

11.943343

219

9.997258

264

10.837493

309

11.472583

354

11.952616

220

10.018599

265

10.853623

310

11.484775

355

11.961831

221

10.039807

266

10.869653

311

11.496892

356

11.970989

222

10.060883

267

10.885584

312

11.508933

357

11.980091

223

10.081829

268

10.901416

313

11.520899

358

11.989136

224

10.102645

269

10.917149

314

11.532792

359

11.998124

225

10.123332

270

10.932786

315

11.544610

360

12.007058

APAO ACCESSIBILITY CHECK:

February 2, 2026 (no issues detected)

Chapter 511 Standards for Actively Seeking Work

Code Me. R. 94-411 Ch. 511 Standards for Actively Seeking Work {#sec-94-411-ch.-511 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 511}

SUMMARY: This Chapter sets out the standards and definitions to be applied in determining under 5 M.R.S.A. §§ 17929(2)(B)(1) and 18529(2)(B)(1) whether a disability retirement benefit recipient is actively seeking work.

SECTION 1. PURPOSE

The purpose of this Chapter is to set out the standards of “actively seeking work” for a person who was awarded disability retirement benefits and for whom a final determination has been made that the person no longer meets the requirements for the continuation of disability retirement benefits.

SECTION 2. DEFINITION

Actively seeking work status. “Actively seeking work status” means that a final determination has been made that the person no longer meets the requirements for the continuation of disability retirement benefits and that the person is able to engage in substantially gainful activity. In this status, disability benefits are continued for up to five years or until the person has secured substantially gainful activity but only so long as the person is actively seeking work.

SECTION 3. STANDARDS

Except as specified in subsection 2, a person in actively seeking work status must:

A. Register with the Maine Department of Labor Career Center;

B. Participate in all job readiness or job seeking activities recommended by the Career Center;

C. Participate at least annually in resume preparation and interviewing skills workshops offered by the Career Center and submit an updated resume to the Career Center;

D. Maintain a current signed record release authorization that allows MainePERS to request and receive information from the Career Center and verify any other information submitted pursuant to this rule;

E. Apply in person or online for at least eight jobs each month with employers who are hiring or otherwise accepting applications, at least four of which must result in written acknowledgement of receipt of the application; and

F. Do all other activities that a reasonably prudent non-incapacitated individual would do to secure work.

A person need not comply with subsection 1 to demonstrate actively seeking work status during the period of time, not to exceed five years, when the person is enrolled full-time in a degree, professional certificate, vocational, or apprenticeship program or another program approved by the Chief Executive Officer or designee as providing similar job preparedness.

A person who has not secured employment at or above the substantially gainful activity earnings level after five years in actively seeking work status is presumed to not have been actively seeking work not withstanding compliance with subsections 1 and 2. This presumption may be rebutted by information showing that the failure to secure employment at or above the substantially gainful activity earnings level was beyond the person’s control.

SECTION 4. DOCUMENTING COMPLIANCE WITH STANDARDS

1. A person in actively seeking work status demonstrates compliance with the standards set forth in Section 3, subsection 1, by submitting, so it is received by the system by the 5th of each month, an accurate, complete and signed report of the following information on forms provided by the system:

A. Verification of eight job applications, including date of submission, employer name and address, method of contact, and a short statement of the result, and a copy of any internet posting, advertisement or Career Center printout that led to submission of the application;

B. A copy of four written acknowledgements of receipt of job applications detailed under subsection 1, which written confirmation may include an email response, a computer-generated acknowledgement, a letter, or a signed system employer contact form;

C. Information pertaining to any job offer that the person has received and refused, including a detailed explanation for any such refusal;

D. Verification of the source and amount of any earnings, remuneration or other compensation from any employment, self-employment, commission sales, or other income for the previous month;

E. Verification of any change in name, address or telephone number; and

F. In the report submitted in January of each year, verification of any classes completed with the Career Center in the past year and verification that the person has submitted an updated resume to the Career Center.

2. A person relying on Section 3, subsection 2, to satisfy the actively seeking work standards must submit proof of full time enrollment in the degree, professional certificate, vocational, apprenticeship, or other approved program on at least a semi-annual basis in a form specified by the system.

SECTION 5. SUSPENSION OR TERMINATION OF BENEFITS

1. For any month during the calendar year that the person does not meet all the required standards, the retirement system will suspend the payment of benefits subject to 5 M.R.S. §17105-A. Such a suspension in benefits will occur in the month following the issuance of a written decision that the standards have not been met. If the person subsequently resumes compliance, the benefits will resume. Such resumption in benefits will occur in the month following the month for which the standards are again met. There will be no payment of disability retirement benefits for the month or months for which benefits were suspended under this subsection.

2. If the person fails to meet the standard for a total of any sequential or non-sequential three months in any 12-month period, the retirement system will terminate the payment of benefits.

3. If the person refuses a job that is consistent with the person’s training, education, and experience that would generate an income equal to or greater than the member’s substantially gainful activity earnings level, the retirement system will terminate the payment of benefits as of the month following the month that the person refused the job offer.

4. A disability retirement benefit recipient in actively seeking work status who is incarcerated shall be deemed unable to actively seek work, and the payment of disability retirement benefits will be suspended during the period of incarceration.

5. For any person who secures a job or engages in activity that generates an income equal to or greater than that member’s substantially gainful activity earnings level, the retirement system will terminate the payment of benefits as of the month following the month the person accepts or engages in the job or activity.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4), 17929(2)(B)(1) and 18529(2)(B)(1)
• EFFECTIVE DATE: April 30, 2007 – filing 2007-152
• AMENDED: April 14, 2020 – Section 8 added, filing 2020-093 (EMERGENCY)
• AMENDED: July 18, 2020 – Section 8, filing 2020-157
• REPEALED AND REPLACED: December 8, 2021 – filing 2021-241
• AMENDED: March 1, 2023 – filing 2023-034
• APAO ACCESSIBILITY CHECK (Word): February 20, 2026 (no issues detected)
• AMENDED: February 24, 2026 – filing 2026-052

Chapter 512 Independent Medical Examinations

Code Me. R. 94-411 Ch. 512 Independent Medical Examinations {#sec-94-411-ch.-512 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 512}

SUMMARY: This Chapter implements and describes procedures for conducting independent medical examinations under 5 M.R.S. §17106-B(2).

SECTION 1. REIMBURSEMENT FOR INDEPENDENT MEDICAL EXAMINATIONS

Under 5 M.R.S. §17106-B(2), a member’s representative who attends the member’s independent medical examination is entitled to reimbursement of mileage and, if the representative is a health care provider, a per diem payment. The Maine Public Employees Retirement System (“the System”) will make these reimbursements and payments as follows:

1. The member must identify the representative to the System in writing within 30 days after the independent medical examination. Within 60 days after the independent medical examination, the representative must provide the System with the representative’s tax identification number by submitting IRS Form W-9 and any other information reasonably necessary to permit reimbursement and payment, if applicable. The member and representative will provide the System with information reasonably necessary to determine mileage and whether the representative is a health care provider.

2. Mileage will be reimbursed at the standard rate set by the Internal Revenue Service.

3. The health care provider per diem rate is set at $300.

SECTION 2. WAIVER OF INDEPENDENT MEDICAL EXAMINATION

A member may waive an independent medical examination pursuant to 5 M.R.S. §17106-B(2) by:

1. Signing a waiver form developed by the System’s Chief Executive Officer for that purpose or otherwise clearly communicating a waiver in writing; or

2. On more than one occasion, failing to attend a scheduled independent medical examination or canceling a scheduled independent medical examination after the time at which the independent health care provider imposes a cancellation fee, unless the member reimburses the System for any no-show or cancellation fee or the failure or cancellation was not within the member’s control.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4), 17106-B(2)
• EFFECTIVE DATE: May 31, 2022 – filing 2022-099
• APAO ACCESSIBILITY CHECK: February 2, 2026 (no issues detected)

Chapter 513 Disability Retirement Compensation Limitations and Benefit Offsets

Code Me. R. 94-411 Ch. 513 Disability Retirement Compensation Limitations and Benefit Offsets {#sec-94-411-ch.-513 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 513}

---

SUMMARY: This Chapter provides guidance on compensation limitations and offsets applicable to disability retirement benefits and the submission of annual statements of compensation by disability retirees.

SECTION 1. DEFINITIONS

Earnings. “Earnings” as used in this Chapter means wages, tips, and other compensation from employment that is reported as Medicare wages and tips on federal W-2 tax forms and income that is reported on federal self-employment tax schedules as subject to self-employment tax. Unless the context indicates otherwise, “compensation” received from engaging in any gainful activity, occupation, or employment as used in Title 5, Sections 17930-A or 18530-A has the same meaning as earnings.

Statement of Compensation. “Statement of compensation” as used in Title 5, Part 20, means: (1) a completed, signed form in the format prescribed by the Chief Executive Officer specifying the disability retiree’s earnings; and (2) a copy of the disability retiree’s federal W-2 tax forms, any self-employment tax schedules filed by or for the disability retiree, and any other federal tax forms and schedules determined by the Chief Executive Officer to be necessary to show the disability retiree’s earnings.

SECTION 2. EARNINGS LIMITATIONS, OFFSETS, AND THE ANNUAL STATEMENT OF COMPENSATION PROCESS

Title 5, Sections 17930-A or 18530-A specify the calculation of earnings limitations for each retiree and the reduction, or offset, to disability retirement benefits when the retiree also receives benefits under workers’ compensation or similar laws. These sections also specify the steps to be taken when a retiree exceeds earnings limitations, including the reduction or elimination of further benefits

Earnings and benefits as reported in the annual statement of compensation process will be used in applying the benefit reduction provisions in Title 5, Sections 17930-A or 18530-A.

The statement of compensation required by Title 5, Sections 17931 or 18531 must be submitted so that it is received by MainePERS by the deadline for filing federal tax returns for the year covered by the statement of compensation.

1. A disability retiree who obtains an extension of the tax filing deadline must submit proof of the extension application so it is received by MainePERS by the original deadline. The statement of compensation will be due on the extended deadline.
2. MainePERS may extend the deadline or waive in whole or in part the statement of compensation requirement for good cause.
3. Disability retirement benefits may be withheld for failure to submit a statement of compensation only after compliance with Title 5, Section 17105-A, including the right to an informal hearing, written decision, and appeal process.
4. If disability retirement benefits are withheld for failure to submit a statement of compensation and the statement is subsequently submitted within one-year of the original due date, MainePERS will disburse the withheld benefits to the retiree.

In order for MainePERS to accurately apply the benefit reductions in Title 5, Sections 17930-A or 18530-A for receipt of other benefits, except as provided in paragraph A, each person required to submit a statement of compensation must at the same time and on the same form report workers’ compensation benefits.

If the information submitted reflects a decrease in other benefits or an increase beyond a cost of living adjustment, MainePERS, with the cooperation of the retiree, will seek further information from the other benefit provider to determine whether the change in other benefits should result in a change in benefit reductions.

History

• STATUTORY AUTHORITY: 5 M.R.S. § 17103(4)
• EFFECTIVE DATE: July 31, 2024 – filing 2024-165
• APAO ACCESSIBILITY CHECK: September 2, 2025
• AMENDED: September 2, 2025 – filing 2025-169
• AMENDED: September 9, 2026 – filing 2026-199

Chapter 601 Group Life Insurance

Code Me. R. 94-411 Ch. 601 Group Life Insurance {#sec-94-411-ch.-601 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 601}

SUMMARY: This Chapter sets forth the categories of employees eligible to participate in the Group Life Insurance Program administered by the Maine Public Employees Retirement System [“MainePERS”], and other regulations relating to the Program.

SECTION 1. DEFINITIONS

All terms used in this chapter, unless the context otherwise indicates, shall have the same definition as in 5 M.R.S.A. §17001 inclusive.

SECTION 2. TYPES OF COVERAGE

Basic Insurance. Basic insurance provides insurance coverage equivalent to the participant’s annual base compensation, rounded up to the next highest $1,000.

2. Supplemental Insurance. Supplemental insurance provides an amount of coverage in multiples of one, two or three times the basic amount of insurance.

3. Dependent Insurance. Dependent insurance provides coverage for the participant’s dependents in the amounts set forth in 5 M.R.S.A. §§ 18056 (3)(A), and 18656(3)(A).

A. A person insured as an active or retired participant of the group life insurance program cannot be covered as a dependent.

B. A step-child cannot be covered as a dependent unless legally adopted by the insured.

C. In the event that both parents are participants, the children, if any may be insured as dependents of one parent only. Eligible dependents will be insured for life insurance on the latest of the following dates:

1. On the effective date of the participant’s election of dependent insurance, or

2. On the date an eligible dependent is first acquired.

SECTION 3. COVERAGE ELIGIBILITY

1. Classes of Employment Eligible for Insurance

The following classes of employment are eligible for basic and supplemental life insurance coverage:

A. State Employees

Permanent, Full Time

Permanent, Part Time of at least 20 hours or 2 ½ normal working days per week

Seasonal, Full Time

Seasonal, Part Time of at least 20 hours or 2 ½ normal working days per week

Elected and Appointed Officials

Limited Period - Full Time for one year or more

Limited Period - Part Time for one year or more

Acting Capacity (with status)

B. Legislators

C. Judges and Justices

D. Participating Local District Employees

Permanent, Full Time

Permanent, Part Time of at least 20 hours or 2 ½ normal working days per week

Seasonal, Full Time

Elected and Appointed Officials

Any local district that becomes a Participating Local District in accordance with the provisions of 20-A M.R.S.A. §1463, sub-§4 may establish criteria for the inclusion of employees from within the classes listed above, based on the nature and type of employment, in order to provide for the continuation of group life insurance coverage for transferred employees. No employee or class of employees may be excluded solely on the basis of the hazardous nature of employment; nor may the employer use this section to decrease coverage of current participants.

E. Teachers

Permanent, Full Time

Permanent, Part Time of at least 20 hours per week or 2 ½ normal working days per week

Any individual employed in one of the classes listed above and who meets the definition of “teacher” as provide by 5 M.R.S.A. §17001, sub-§42 is eligible for insurance coverage under this paragraph.

2. Other Eligibility Conditions

A. In order for insurance coverage to become effective, an application for insurance coverage indicating the types of coverage elected must be completed within 31 days of becoming eligible for coverage.

B. Evidence of insurability will be required if coverage is not elected when first eligible.

C. Except as provided in paragraph D, an employee shall cease to be eligible to participate upon being placed on lay-off.

D. Coverage will continue only if premiums are timely paid by the employee on a current basis as they become due and payable while an employee is on seasonal lay-off, or leave of absence without pay for:

1. military service;

2. employer-approved professional study;

3. Family Medical Leave;

4. other, employer-approved unpaid leave;

5. service in the Maine Legislature; or

6. leave between legislative sessions in the case of legislative employees.

D-1. Commencing January 1, 2020, premiums in the case of an employee on lay-off or a leave of absence without pay are due within 60 days after returning to paid status. If the employee dies before the end of the 60-day period, any premiums due shall be recovered from any benefit payments.

E. An employee who has refused or is denied insurance coverage, who separates from employment and is subsequently re-employed is eligible as though this were initial employment and is not required to file evidence of insurability if the separation meets the requirements to permit the individual to obtain a refund of employee Maine Public Employees Retirement System retirement contributions. Layoff from seasonal employment to which the employee is expected to return shall not be considered as a separation and a reemployment.

F. A retiree who returns to work in an eligible position is eligible for coverage.

SECTION 4. TERMINATION AND REINSTATEMENT OF COVERAGE

1. Coverage on any participant or dependent will cease at the end of the last period for which premiums for that participant or dependent are paid to the Maine Public Employees Retirement System, subject to a 31-day grace period.

2. Coverage for a participant who, during a period of unpaid military leave of absence, does not continue coverage as provided in Section 3, subsection 2, paragraph D, must be reinstated to the levels of coverage in effect immediately prior to the unpaid military leave. A request for reinstatement by the employee must be made within 31 days of the employee's return to work following unpaid military leave. An employee who wants to be reinstated and who does not apply for reinstatement within 31 days of the employee's return to work from unpaid military leave must produce evidence of insurability at the employee's own expense and in accordance with the requirements of the insurance underwriter.

3. Coverage of an unmarried dependent child having attained a maximum age as provided in 5 M.R.S.A. §§ 18056 (3)(A), and 18656(3)(A), shall be continued if:

A. due proof is furnished prior to the 31^st day after the applicable termination date, and each year thereafter, indicating that the unmarried, dependent child is permanently disabled as set forth in 5 M.R.S.A. §17001(12)(B); or

B. due proof is furnished prior to the 31^st day after the applicable termination date, and each year thereafter, indicating that the unmarried dependent child is under 22 years of age and a full-time student.

C. Coverage for a disabled child shall continue while the Policy remains in force and the child’s condition remains unchanged. “Substantially gainful employment” shall mean any work activity that is consistent with the individual’s training, education and experience (including self-employment) and which, taking into consideration information about the state labor market, could be expected to generate an annual amount of gross earnings which equals or exceeds the state minimum hourly wage multiplied by 2080.

4. Whenever the Executive Director determines that an employee lacks coverage or has a lapse in coverage due to error on the part of the employer or MainePERS, coverage may be implemented or reinstated as follows:

A. Participant, or employer in the case of employer-paid premiums, pays back premiums from the date of eligibility or the date of last payment to the present;

B. Participant files Evidence of Insurability with coverage effective on the first day of the month following one month of additional employment in an eligible position beyond the date approved by the insurer under contract with MainePERS.

In the event that the insurer denies coverage based on Evidence of Insurability, the participant may restore coverage under the provisions of paragraph A.

SECTION 5. COVERAGE UPON RETIREMENT

1. For members of a MainePERS retirement program terminating employment in order to draw a MainePERS service retirement benefit, for reasons other than disability, the member’s basic life insurance only will continue into retirement at no cost to the member, providing the member has a minimum of ten (10) years of group life insurance coverage, the coverage is in force at the time of termination, and the member’s completed Application for Retirement is received at MainePERS within 31 days of the member’s termination date and the member’s effective retirement date is within the same 31 day period.

2. For a participant of a Participating Local District who is not a member of a MainePERS Participating Local District retirement program and who terminates employmentwhile receiving a retirement benefit under the United States Social Security Act or who begins to receive a benefit under the United States Social Security Act within 31 days of terminating their employment, the participant’s basic life insurance may continue into retirement at no cost to the participant if the participant has a minimum of 10 years of coverage and has coverage on the date of termination. The level of coverage into retirement will be based on the average of the last three years of coverage.

3. For a participant of a Participating Local District who is not a member of a MainePERS Participating Local District retirement program and who is covered under another “qualified plan”, as that term is defined in the Internal Revenue Code , who is terminating employment for reasons other than to receive disability retirement, in order for the participant’s basic life insurance to continue into retirement at no cost to the participant, the participant must have attained age 60, or have 25 years of service under the qualified plan and have both a minimum of ten 10 years of Group Life Insurance coverage and coverage at the time of termination. The level of coverage into retirement will be based on the average of the last three years of coverage on the date of retirement.

SECTION 6. PAYMENT OF PREMIUMS AND CLAIMS

1. The MainePERS will establish premium amounts and manner of payment for participants.

2. All claims arising during a period of time for which due premiums have not been paid shall be void.

History

• STATUTORY AUTHORITY: 5 MRS §§ 17103(4), 18051-18061, 18651-18663
• EFFECTIVE DATE: July 12, 1979
• AMENDED: January 21, 1980
• AMENDED: December 18, 1982
• AMENDED: December 18, 1983 - Section 2, 3, 4 and addition of sections 7 & 8
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 3, 1996 - minor spelling and format
• REPEALED AND REPLACED: January 20, 2008 – filing 2008-13
• AMENDED: February 23, 2009 – filing 2009-79
• AMENDED: April 14, 2020 - filing 2020-094 (EMERGENCY)
• AMENDED: July 18, 2020 – filing 2020-158
• APAO ACCESSIBILITY CHECK: February 2, 2026 (no issues detected by agency of jurisdiction)

Chapter 602 Procedures for Contract Awards

Code Me. R. 94-411 Ch. 602 Procedures for Contract Awards {#sec-94-411-ch.-602 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 602}

SUMMARY: This Chapter outlines the procedures that may be used in selecting a contractor to provide deliverables to the Maine Public Employees Retirement System (“MainePERS”). This Chapter also defines the procedures and criteria to be used in the event of an appeal of a contract award decision.

SECTION 1. POLICY

MainePERS will administer the programs and operate the organization in a cost-effective, consistent, and efficient manner that serves the best interests of its members, employers, and retirees. When seeking services or products MainePERS will make a contract award to the entity determined to best meet its needs. Any contract award will be the most advantageous to MainePERS and provide MainePERS with the best value, after cost and all other factors having been considered.

1. APPLICABILITY.

This Chapter does not apply to:

A. Contracts with investment fiduciaries or advisors as provided in 5 M.R.S. §17108;

B. Contracts with persons or associations for investment counsel or advice and for other professional or other assistance as provided in 5 M.R.S. §17109;

C. Contracts for custodial care of securities as provided in 5 M.R.S. §17110;

D. Contracts for a total amount reasonably expected not to exceed $100,000 unless MainePERS, in its discretion, chooses to have this Chapter apply to such a contract;

E. Contracts awarded through the State of Maine procurement process; and

F. Contracts to meet bona fide emergencies necessitating expedited action.

2. DELEGATION. Pursuant to statute, for purposes of this Chapter, the Board of Trustees delegates to the Chief Executive Officer (“CEO”) its authority to act as the final administrative decisionmaker of the Board of Trustees and authorizes the CEO to further designate a MainePERS staff member or members to act in the CEO’s stead.

3. AWARD METHODS. Depending on the nature, context and extent of deliverables sought, the CEO may select any one of the following methods for determining to whom a contract award should be made:

A. Sole Source: A solicitation for deliverables to a single contractor where because of circumstances or characteristics or other reasons, the needed deliverables are best obtained from one particular source. Approval by the Board of Trustees of the use of this method will be obtained when the solicitation is for a contract reasonably expected to be greater than $100,000.

B. Targeted Request for Proposal: An Request for Proposal (“RFP”) for deliverables to two or more contractors who, because of characteristics or circumstances or other reasons have been identified by the System as having the particular capability of providing the desired deliverables;. Approval by the Board of Trustees of the use of this method will be obtained when the RFP is for a contract reasonably expected to be greater than $100,000.

C. An RFP for deliverables to which contractors in general are invited to respond.

Any procedures governing contract awards outlined in this Chapter may be modified based upon exigent circumstances to the extent deemed necessary and appropriate by the CEO.

SECTION 2. REQUEST FOR PROPOSAL FOR DELIVERABLES

1. If the CEO or a designee determines under Section 1, subsection 3, paragraphs B or C to issue an RFP for deliverables the RFP shall provide a description of the nature and scope of the deliverables to be provided, the date by which proposals must be received, and the evaluation criteria and their relative importance to be used in evaluating the proposals. At its discretion, MainePERS may amend the RFP for any reason at anytime.

2. The relative importance of evaluation criteria will ordinarily be expressed as numerical ratings/weightings but may be expressed in other terms that inform a potential proposers (“Proposer”) as to the combination of factors that the System will look for to meet its needs.

3. The importance of cost as an evaluation criterion must be stated in the RFP and will ordinarily be stated as a numerical weighting that is a minimum of 25% of the total weight of all criteria.

4. Previous experience of MainePERS, if any, with a Proposer will always be considered as part of the evaluation. The relative importance of this consideration will depend on the relevance and degree of significance of the previous experience in evaluating both the Proposer’s current proposal and its ability to provide satisfactory deliverables.

5. MainePERS may provide an opportunity for substantive questions by Proposers and answers by MainePERS. MainePERS will provide the questions and answers to any potential Proposer who submitted questions or who requests a copy of the questions and answers. MainePERS reserves the right to not answer questions submitted.

6. Proposals received later than the date and time specified in the RFP or any amendment to the RFP will not be considered.

7. MainePERS, in its discretion, may hold conferences of potential Proposers and/or Proposers, schedule site visits, or use other means to obtain information relevant to its evaluation of proposals.

8. At the discretion of MainePERS, a presentation or demonstration by Proposers may be called for in the RFP before, or after proposals are received, and may include all or only selected Proposers.

9. RFPs under Section 1, subsection 3 must be advertised for a minimum of three consecutive publication days in the Kennebec Journal of Augusta (or its successor newspaper of record), ordinarily allowing a minimum of 10 calendar days from the final day of advertising to the due date for responses, and may be advertised in any other media as MainePERS may decide.

SECTION 3. SELECTION PROCEDURE

1. MainePERS will designate a selector or selection committee. The CEO may be directly involved in the selection process but will always be informed as to the selector’s or selection committee’s decision before the award decision is conveyed to the successful Proposer.

2. The selector or selection committee will evaluate each proposal based upon the evaluation criteria set out in the RFP and, if called for in the RFP, Proposers’ presentations or demonstrations.

3. The selector or selection committee may select any number of Proposers for a presentation, demonstration, if it has been called for in the RFP or MainePERS determines it is called for after proposals are received. Proposers will be informed in advance as to what the presentation is to address.

4. MainePERS at its discretion may choose to conduct a reference check of any Proposer and is not required to limit its reference checks to references supplied by the Proposer.

5. MainePERS is never bound to accept the lowest cost proposal on the basis of cost alone.

6. After the selector or selection committee has evaluated the proposals, the presentation or demonstration, if any, and other information gathered in the evaluation process, the award, if made, shall be made to the highest rated proposal. MainePERS will issue a written notification awarding the contract or declining to award any contract to all Proposers.

7. Upon request, a Proposer to whom the contract was not awarded shall be given a written statement of the basis for the award decision.

SECTION 4. APPEALS

An unsuccessful Proposer (“Petitioner”) may appeal the award decision by filing a written petition to the contract award with the CEO within five (5) business days of the date of receipt of the award notice and must at the same time send a copy of the written objection to the successful Proposer who shall automatically be a party to the appeal unless the successful Proposer declines participation.

The written objection must contain, at a minimum:

A statement of the basis for the objection, including addressing the criteria in subsection 9 below;

Specification of the relief sought;

If a stay is requested, including addressing the criteria in subsection 9 below; and

Whether a hearing is requested.

No request for a stay or hearing may be granted if the Petitioner fails to request a stay or a hearing at the time the written objection is filed.

3. The CEO may decide the appeal or may appoint designee or a committee to assist in reviewing the appeal and may charge the designee or committee to make a recommendation for final decision. If the CEO has been the selector or part of a selection committee, the CEO will delegate all of their authority and responsibility in the appeal process to a designee.

4. No unsuccessful Proposer may participate in an appeal process unless it files its own timely appeal under this section. In the event that more than one Petitioner files an appeal on a given contract award, the CEO may combine the appeals proceedings.

5. If a stay of the contract award is requested, the CEO may grant the stay for a specified period of time or until the appeal has been resolved if, based on the evidence submitted by the Petitioner who has requested the stay, the CEO finds all of the following:

A. irreparable injury to the unsuccessful Petitioner if a stay is not granted,

B. a reasonable likelihood of success by the Petitioner on the merits of the appeal, and

C. no substantial harm to adverse parties, to MainePERS or to members, employers or retirees by the granting of a stay.

Notwithstanding these findings, the CEO will not grant a stay if the CEO determines that proceeding with the contract award and with contract implementation without delay is necessary in order for MainePERS to responsibly conduct its operations and programs.

The CEO may stay a contract award on their own motion if the CEO determines that a stay is in the best interest of MainePERS or its members, employers or retirees.

6. The CEO shall notify all parties to the appeal in writing of the decision regarding the issuance of a stay within seven (7) calendar days of receipt of the request. Failure of the Petitioner who has requested a stay to obtain a stay does not affect the Petitioner’s right to a hearing on appeal, if a hearing was requested.

7. If a hearing is requested, the CEO shall notify all parties of the date and location of the hearing. Any hearing must be held within ten (10) calendar days of the filing of the written objection to the contract award and shall be recorded. When an appeal hearing is held, the CEO shall issue to all parties a final written decision with supporting reason ordinarily within ten (10) calendar days of the hearing and shall notify all parties of the decision.

8. If no hearing is requested, the CEO shall issue to all parties a final written decision with supporting reason, ordinarily within ten (10) calendar days of the filing of the appeal and shall notify all parties of the decision.

9. The burden of proof on all aspects of an appeal lies with the Petitioner.

10. The evidence that the Petitioner may present on the merits of the appeal is limited to specifically addressing that there has been one or more of the following:

A. a violation of law;

B. irregularity in the selection process creating fundamental unfairness; or

C. an arbitrary or capricious award.

The Petitioner must establish by clear and convincing evidence one or more of A, B, and/or C in order to prevail in the appeal.

11. The CEO shall determine the result of the appeal and issue to all parties a final written decision with supporting reason, ordinarily within ten (10) calendar days of the hearing. The result can be only one or the other of the following:

A. validation of the contract award under appeal; or

B. invalidation of the contract award under appeal.

Invalidation of the contract award constitutes a decision not to make any contract award on that RFP. MainePERS in its discretion may reissue the RFP or issue an RFP seeking the same or similar deliverables after a decision not to make a contract award on a RFP.

12. The CEO on their own motion or at the request of a party, may extend any time period in this Section if the CEO determines that to do so will not impair or impede MainePERS in carrying out its responsibilities.

13. The determination of the CEO under paragraph 11 constitutes final agency action and, if adverse to a Petitioner, shall entitle that Petitioner to judicial review pursuant to 5 M.R.S. §11001 et seq.

History

• STATUTORY AUTHORITY: 5 MRSA §§ 17103
• EFFECTIVE DATE: February 17, 2002
• AMENDED: August 3, 2026 – filing 2026-179
• AMENDED: 94-411 Chapter 602 page 6

Chapter 702 Appeals of Decisions of the Executive Director

Code Me. R. 94-411 Ch. 702 Appeals of Decisions of the Chief Executive Officer {#sec-94-411-ch.-702 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 702}

SUMMARY: This Chapter sets out the process for appeals of decisions of the Chief Executive Officer to the Board of Trustees (“Board”). It provides for the appointment of a hearing officer to conduct an appeal and to prepare a recommended decision for action by the Board.

SECTION 1. Purpose and Scope

The purpose of this Chapter is to set out procedures for reaching final agency action on matters initially decided by the Chief Executive Officer (or designee) of the Maine Public Employees Retirement System (“System” or “MainePERS”). The law governing the System provides that the Chief Executive Officer’s decisions may be appealed to the Board, which has authority and responsibility to render a decision that will become the final agency action. The person appealing the Decision has the burden to establish, by a preponderance of the evidence, that the Chief Executive Officer’s Decision is in error. This Chapter applies to appeals by any person aggrieved by a decision of the Chief Executive Officer.

SECTION 2. Authority

The authority for this Chapter is 5 M.R.S. §§ 9051 - 9064 and 5 M.R.S. §17451, which provide that an appeal under section 17451 is an adjudicatory proceeding subject to the Administrative Procedure Act and 5 M.R.S. §§ 17106-A, 17106-B.

SECTION 3. Definitions

1. Appeals clerk. “Appeals clerk” means the dedicated clerk who acts as liaison between the hearing officer and the parties to an appeal. The appeals clerk shall avoid all communication with System staff, or MainePERS representatives, regarding substantive issues for cases on appeal. The appeals clerk shall address all policy and procedural questions to the clerk’s supervisor, the system advisor or Board counsel.

2. Board. "Board" means the Board of Trustees of MainePERS.

3. Board counsel. “Board counsel” means the attorney general or the designated assistant attorney general assigned to represent the Board and to prepare the Board’s decisions.

4. Chief Executive Officer. "Chief Executive Officer" means the Chief Executive Officer of MainePERS or their decision-making designee.

5. Hearing officer. "Hearing officer" means an individual who has contracted with the Board to conduct appeal proceedings under this Chapter.

6. Medical review service provider. “Medical review service provider” means an entity with whom the Chief Executive Officer has contracted for the review of medical records and the provision of recommendations, opinions and certifications by health care providers employed by the entity.

7. MainePERS or System Representative. “MainePERS Representative” or “System Representative” means the person or persons advocating for the decision of the Chief Executive Officer in an appeal.

8. Participating Local District. "Participating local district" means a local district which has approved the participation of its employees in the Retirement System under 5 M.R.S. §18201.

9. Party. "Party" means the person bringing an appeal, MainePERS, and any person who intervenes in an appeal. If an appeal involves or affects a participating local district, "party" includes the participating local district, regardless of whether the participating local district actually participates as a party in the appeal.

10. Person. "Person” means any individual, partnership, corporation, governmental entity, association or public or private organization of any character, other than the Board or the System.

11. Record. "Record" means those materials required by 5 M.R.S. §9059 and this rule to be compiled in the course of an appeal.

12. Staff. "Staff" means an employee of MainePERS, other than the MainePERS Representative.

13. Substantially larger caseload. “Substantially larger caseload” means that the number of appeals a hearing officer is presiding over is at least five and exceeds the mean hearing officer caseload by at least 30%.

14. System advisor. “System advisor” is a System employee who is knowledgeable in System policies, practices and procedures and who is available as an informational resource to assist the hearing officer, the Board and Board counsel.

SECTION 4. Applicability: Who May Appeal

1. Application. This Chapter applies to all appeals of decisions of the Chief Executive Officer to the Board.

2. Who may appeal. Any person whose legal rights, duties or privileges are adversely affected by a decision of the Chief Executive Officer may appeal the decision to the Board. A person may but is not required to be represented by another person in accordance with 4 M.R.S. §807.

SECTION 5. Bringing an Appeal

1. Notice. When notifying a person whose legal rights, duties or privileges are affected by a decision of the Chief Executive Officer, the System must advise the person of the right to appeal to the Board and of the manner in which the right may be exercised. This notice must comply with 5 M.R.S. §9052.

2. Statement of appeal. A person who wishes to appeal a decision of the Chief Executive Officer must begin the appeal process by sending a written statement of appeal to the Board. Any reasonably clear statement to the effect that the person wishes to appeal a decision of the Chief Executive Officer, and identifying that decision, submitted by email or otherwise in writing to the System shall be treated as a statement of appeal. The only issues that are the subject of an appeal are those that have previously been decided by the Chief Executive Officer. If the person wishes to raise issues or conditions not previously considered by the Chief Executive Officer, those additional issues can be added in accordance with section 6(2) below.

3. Assignment to hearing officer. When a statement of appeal is received, the System, in a timely manner, will assign the appeal to a hearing officer in accordance with section 8. The System will notify the person of the identity of the assigned hearing officer and alternative hearing officers, describe the process for selecting an alternative hearing officer, briefly outline the appeal process and advise that, if the person fails to appear at any hearing, the appeal may be deemed to have been abandoned and the matter dismissed with prejudice.

4. Notice to Employer. If the appeal involves an employee of a participating local district or school unit, the System will notify the employer that the appeal has been brought, identify the employee and hearing officer, and inform the employer how to become a party to the appeal. The notice must comply with 5 M.R.S. §9052.

5. Appeals Packet. MainePERS shall provide the appellant with a copy of the information considered by the Chief Executive Officer in reaching the decision that is subject to the appeal no later than 30 days after receipt of the statement of appeal,

SECTION 6. Choice of Appeal Process

At the pre-hearing conference described in section 8(3)(C) of this Chapter, the appellant shall affirmatively elect either the expedited or the unrestricted appeal process. This election becomes irrevocable 10 days after the pre-hearing conference, unless the System agrees to a later request to change the election.

1. Expedited Appeal. If the appellant elects the expedited process to pursue an appeal of the issues decided in the decision of the Chief Executive Officer, the evidence is limited to the appellant’s testimony, the testimony of any lay witnesses and the documentary evidence already considered by the Chief Executive Officer. The parties may not raise any additional issues for decision. It is anticipated that a decision will be issued by the Board within approximately 90 days of the initial pre-hearing conference. Under this option, only non-expert witnesses may provide testimony on behalf of the appellant or the System.

2. Unrestricted Appeal. Alternatively, in the unrestricted appeal process, the appellant may raise issues in addition to those decided by the Chief Executive Officer, and the parties may introduce documentary evidence in addition to the evidence already considered by the Chief Executive Officer and testimony from expert as well as non-expert witnesses. The unrestricted appeal process is anticipated to take substantially longer than 90 days because some or all of the steps listed below may be required, or duplicated prior to the hearing officer’s issuance of a recommended decision. An appellant who chooses to proceed under the unrestricted appeal process must affirmatively accept and acknowledge that this appeal process is likely to take substantially longer than 90 days. The additional steps that might occur in the unrestricted appeal process include, but are not limited to the following:

A. If the appellant introduces issues not previously decided by the Chief Executive Officer, the hearing officer will return the appeal to the Chief Executive Officer for consideration of the new issues and reconsideration of any issues previously decided by the Chief Executive Officer. The appeal will be stayed pending the issuance of a decision of the Chief Executive Officer on all issues.

(1) If the new issues include one or more new conditions on which the appellant wishes to apply for disability retirement benefits, the appellant has the same right to an independent medical examination on the new conditions as the appellant would have had if the conditions had been raised in a new application.

B. If the appellant seeks to introduce new documentary medical evidence on any of the issues previously decided by the Chief Executive Officer, the hearing officer will, at the request of the MainePERS Representative, return the appeal to the Chief Executive Officer for reconsideration of those issues. The appeal will be stayed pending a reconsidered decision of the issues previously decided by the Chief Executive Officer. The Chief Executive Officer may submit the new evidence to the medical review provider.

C. If any party introduces expert testimony, any other party, upon request to the hearing officer, may be granted additional time to prepare cross-examination of the expert and/or the submission of rebuttal expert testimony. Parties are entitled to a rebuttal hearing on request.

SECTION 7. Public Interest; Notice

If the Chief Executive Officer or designee determines that an appeal involves an issue of substantial public interest, notice must be given to the public, sufficiently in advance of the hearing date, to afford interested parties an adequate opportunity to prepare and submit evidence and to petition to intervene pursuant to 5 M.R.S. §9054. Notice to the public must be given in accordance with 5 M.R.S. §9052(3). If a party asserts that an appeal involves a matter of substantial public interest, such that public notice is required and the Chief Executive Officer or designee does not agree, the Board will make the determination in the following manner.

1. By request. The Chief Executive Officer or any other person may request that the Board make a determination of substantial public interest.

2. Determination after appeal process has begun. If the Board makes a determination of substantial public interest after the appeal process has begun, the process must be suspended until notice to the public has been given and interested persons have had an adequate opportunity to take action in accordance with this section.

SECTION 8. Hearing officer

1. Appointment. The Board shall contract with hearing officers to perform the duties and exercise the powers set forth in this Chapter. The hearing officers must have appropriate experience and training, be fair, impartial, unbiased, and demonstrate a continuing ability to conduct a fair, efficient and effective appeal process.

2. Assignment; Removal; Replacement

A. An appeal will be assigned by the System to a hearing officer who has no personal or financial interest, direct or indirect, in the appeal or its outcome, and who has not been involved directly or indirectly in the matter that is the subject of the appeal. The fact that a hearing officer is the recipient of a MainePERS benefit does not constitute, by itself, direct or indirect personal or financial interest in an appeal or its outcome. The assignment shall be based on balancing caseloads among contracted hearing officers. The appellant within 15 days after notice of the assigned hearing officer may select an alternative hearing officer who has contracted with the Board.

(1) The System need not offer as an alternative any hearing officer who has a substantially larger caseload than other hearing officers. The appellant may select a hearing officer who was not offered as an alternative because of a substantially larger caseload if the appellant shows, within the timeframe for selecting an alternative hearing officer, that the hearing officer is uniquely qualified to preside over the appeal.

(2) In an appeal with more than one appellant, if the appellants cannot agree on an alternative hearing officer, the hearing officer assigned by the System will serve as hearing officer.

B. If a party files a timely allegation of bias, prejudice or personal or financial interest, either direct or indirect, against the hearing officer, the hearing officer will promptly determine whether to remove herself/himself as hearing officer and will include that determination in the record.

C. A hearing officer may also independently remove themselves from the appeal if the hearing officer cannot be fair, impartial and unbiased.

D. When a hearing officer is removed, terminated or cannot continue, the System will assign the appeal to another hearing officer, and the appellant will have an opportunity to select an alternative hearing officer consistent with paragraph A and section 5(3). The new hearing officer will continue the ongoing appeal process, unless the hearing officer determines that in order to avoid substantial prejudice to any party it is necessary to start the process anew.

3. Duty and powers of the hearing officer. The hearing officer has the duty to render a fair and impartial recommended decision to the Board in accordance with section 15. This recommended decision must be based on the record as a whole and resolve all material issues in the appeal. In lieu of a recommended decision, the hearing officer may recommend dismissal. The hearing officer has the following powers:

A. To resolve an appeal without a hearing; provided that the parties mutually agree to dispense with a hearing, by issuing:

(1) a recommended decision which meets the requirements of section 15, to be acted on by the Board under section 16, on the basis of the documentary materials which constitute the record; or

(2) a recommended dismissal with prejudice to be submitted to the Board for approval if, pursuant to section 6(2), the Chief Executive Officer issues a decision that favors the appellant, in whole or in part, and the appellant withdraws the appeal with respect to all portions of the decision of the Chief Executive Officer that are not in the appellant’s favor; or

(3) a recommended dismissal, with or without prejudice as circumstances warrant, to be submitted to the Board for approval.

B. Upon adequate notice to the parties, to schedule the date, time and place or to change the date, time or place and to continue any conference, hearing, or deadline of any nature;^[1]

C. Generally working through the appeals clerk, to notify parties and hold a pre-hearing conference, of which all parties must be notified and at which they may participate, the purposes of which may include:

(1) determining whether the appellant elects the expedited or unrestricted appeal process in accordance with section 6, and explaining the consequences of the choice of appeal process;

(2) identifying and clarifying the issues on appeal and determining whether the appellant intends to introduce issues, not previously considered by the Chief Executive Officer;

(3) developing stipulations of fact and admissions as to facts that are not contested;

(4) identifying exhibits to apprise the parties as fully as is practicable of the nature of the evidence to be offered by all parties and to eliminate, as far as possible, the element of surprise;

(5) identifying witnesses and the manner in which the testimony will be provided as described in section 11(2);

(6) identifying any potential parties to the adjudication whose joinder may foster economy, efficiency and fairness;

(7) identifying and resolving disputes as to production of documents and admissibility of evidence, including the making of evidentiary rulings; and

(8) any other action that will encourage and maintain a fair, efficient and effective appeal process.

D. To order, where relevant and useful, one or more independent medical evaluations on conditions that have not previously been the subject of an independent medical examination, for which the System will, to the extent reasonably practicable, provide the names of three appropriately qualified health care providers, among whom the person appealing will choose and to whom the person will go for evaluation, the costs of which will be paid by the System;

E. To return to the Chief Executive Officer or designee for consideration, any issue raised for the first time in the appeal process, as required pursuant to section 6(2)(A);

F. To rule on any request at any conference, during the hearing or at any other time during the appeal process, prior to delivery of the recommended decision to the Board;

G. Generally working through the appeals clerk, to set the time for all filings, appearances, and other actions by any party or parties in connection with the appeal process, in accordance with 5 M.R.S. §17451;

H. To issue subpoena(s) on request of a party or to deny a request when the hearing officer determines that the testimony or evidence is not relevant to any issue of fact in the hearing, or otherwise inadmissible, in accordance with 5 M.R.S. §9060 and section 12 of these rules;

I. After the close of the evidence, the parties’ receipt of a hearing transcript, if any, and the issuance of an Chief Executive Officer’s reconsidered decision as described in section 14, to request that the parties submit briefs on the issues not decided by the Chief Executive Officer in the appellant’s favor, and to request or allow the parties to make oral argument to the hearing officer, when the hearing officer deems oral argument to be necessary or useful;

J. To ascertain the rights of the parties, to identify and notify all parties that may be affected by a decision, to ensure that all parties have a full opportunity to present their claims orally or in writing and to secure witnesses and evidence to establish their claims, and to assist parties and witnesses in making full and free statements in order to develop all issues which may govern the outcome of the appeal;

K. To administer oaths or affirmations to all witnesses in all hearings;

L. To regulate the presentation of evidence, including questioning of witnesses and the participation of parties, in order to ensure an adequate and comprehensive record of the proceedings and to avoid repetition and delay;

M. To examine witnesses and ensure that relevant evidence is admitted in the record;

N. To determine the credibility of witnesses and to decide the weight to be given to testimony and all other evidence;

O. To take official notice of facts in accordance with 5 M.R.S. §9058, and parties shall be copied with the facts noticed, and the source of those facts, which shall be placed of record;

P. To rule on the admissibility of evidence;

Q. To ensure that a complete record is made of the hearing, including recording in accordance with 5 M.R.S. §9059;

R. To consult with the Board's counsel on legal issues; provided that, when an appeal raises issues of equity or constitutionality, the hearing officer must consult with the Board’s counsel.

S. To consult with the System advisor if the hearing officer requires information concerning general System structure, policies or practices if the hearing officer determines that such consultation would be helpful to a determination of the issues on appeal. If the hearing officer seeks information from the System advisor, such request shall be in writing and identify the case, and both the request and the response shall be copied to the parties and placed of record.

T. To recommend dismissal in the event an appellant fails to appear at a hearing, or otherwise fails to prosecute the appeal, unless there is a showing of good cause under section 10.

SECTION 9. Duties and Responsibilities of the MainePERS Representative

The MainePERS Representative shall:

1. Organize case. Organize the presentation of the Chief Executive Officer's case;

2. Pre-hearing conference. Participate in the pre-hearing conference;

3. Present witnesses. Present and examine witnesses when appropriate;

4. Provide records. Ensure that the relevant records of the System are present at the hearing and that other parties have adequate opportunity to examine the records prior to and during the hearing;

5. Introduce records. Introduce into evidence relevant System records and documents; and

6. Provide evidence. Present and establish relevant facts and circumstances by oral testimony, including that of MainePERS staff, and by documentary evidence.

SECTION 10. Default

1. Failure to appear. Except as provided in subsection 2 below, if an appellant fails to participate in a scheduled conference, appear at hearing, or otherwise fails to prosecute the case, the appellant may be deemed by the hearing officer to have abandoned the appeal. The hearing officer will so notify the appellant in writing via certified mail. If within 10 business days of receipt of the notice, the appellant submits information which demonstrates, in the judgment of the hearing officer, good cause for failure to appear, the hearing will be rescheduled. On the 11^th day following receipt of the notice by appellant and without suitable response, the decision of the Chief Executive Officer will become final and the hearing officer will issue a recommended dismissal with prejudice to the Board.

2. Hearing in the absence of the appellant. A hearing may be held in the absence of the person appealing when:

A. The person requests or agrees to a hearing in their absence; or

B. The hearing officer, at their discretion, proceeds with the hearing as the alternative to a default.

SECTION 11. Evidence

1. Admissibility. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs.

2. Testimony and Conduct of Hearings. Testimony may be provided in person, by video, by deposition, or, for compelling reasons, by telephone or sworn written statement at the discretion of the hearing officer. With the exception of sequestered witnesses, all participants in a hearing conducted by video conferencing must be able to hear and see the other participants, and all participants in a hearing conducted telephonically must be able to hear the other participants. Parties must ensure that witnesses who provide sworn written statements or testimony be available for cross-examination during the hearing, although the cross-examination of expert witnesses may, at the request of a party, take place at a different time.

3. Irrelevant or repetitious evidence. Evidence which is irrelevant or unduly repetitive may be excluded.

4. No formal rules of evidence. Formal rules of evidence are not required and need not be observed.

5. Weight of evidence. The fact that evidence is admitted shall not limit the authority of the hearing officer to determine the weight to be given the evidence.

6. Hearsay. Hearsay evidence shall not be excluded simply because of its hearsay nature. The hearing officer will determine the weight to be given to hearsay evidence.

7. Rules of privilege. Rules of privilege as provided in the Maine Rules of Evidence , Article 5, shall be observed.

8. Stipulation of facts. When all parties stipulate to a fact, the hearing officer may make a finding of fact on the basis of the stipulation. Signed statements or on-the-record oral statements by parties are sufficient as stipulations.

9. Official notice of facts. The hearing officer may take official notice of a fact upon her/his own initiative or at the request of a party. Official notice may be taken of any fact of which judicial notice could be taken, and in addition, of any general or technical matter within the specialized experience or knowledge of the hearing officer, and of any statutes, rules and non-confidential public records. The hearing officer will notify the parties when official notice is taken and shall afford the parties an opportunity to contest the reliability, substance and/or materiality of the material noticed.

10. Rebuttal Evidence. To the extent that the appellant testifies or introduces evidence on matters or facts not previously known to the System, the hearing officer may, at the request of the MainePERS Representative, hold the record open for a reasonable period in order to allow the System to offer rebuttal evidence.

SECTION 12. Discovery and subpoenas

1. Access to System documents and records. A party must have an adequate opportunity prior to hearing, and at the hearing, to examine all of the System's documents and records to be offered as evidence. The System must provide to the person bringing the appeal a copy of the relevant portions of the record without charge.

2. Request for subpoenas. Any party may request the issuance of a subpoena by presenting the request to the hearing officer. The request must contain:

A. The name and address of the party requesting the subpoena; and

B. The name and address of the person to be subpoenaed, or other place where the person to be subpoenaed may be found; and

C. A brief statement why the testimony or evidence of the person to be subpoenaed is relevant to an issue of fact in the appeal.

3. Issuance on approval. If the hearing officer determines that the request seeks testimony or evidence relevant to an issue of fact in the appeal, and not otherwise excludable, the hearing officer must submit the subpoena for approval by the Attorney General or Deputy Attorney General who is not involved in the appeal.

4. Requirements. A subpoena shall comply with the requirements of 5 M.R.S. §9060.

SECTION 13. Hearings recorded

1. All hearings will be recorded in a form susceptible to transcription.

2. A copy of the transcript of a hearing or of expert testimony taken pursuant to section 11(2) will be provided to the parties.

SECTION 14. Reconsideration by the Chief Executive Officer

After the close of the evidence and the parties’ receipt of any transcript, the Chief Executive Officer shall have 30 calendar days to reconsider all of the evidence and affirm or reverse, in whole or in part, the decision that is the subject of the appeal. If new grounds for affirming a decision adverse to the appellant are articulated by the Chief Executive Officer at this stage of the process, the hearing officer shall allow the parties a reasonable time to present additional evidence relevant to the issues raised in the Chief Executive Officer’s reconsidered decision. If, after receiving the appeal evidence and any transcripts, the Chief Executive Officer consults with the medical review provider, the 30-day period described above begins to run upon the Chief Executive Officer’s receipt of the medical review provider’s reports.

SECTION 15. Recommended decision of the hearing officer

1. Contents. Following the hearing or, if the parties have agreed to waive hearing, following review of the documentary and testimonial record, and following the issuance of the Chief Executive Officer’s reconsidered decision, the hearing officer will prepare a recommended decision, which will include:

A. A clear statement of the subject(s) of the appeal and of the issues which must be resolved to decide the appeal;

B. A listing of the date, place of hearing, and participants at the hearing or, if no hearing was held, a statement that the parties agreed to proceed without a hearing or other explanation;

C. A listing of all evidence admitted and upon which the recommended final decision is based;

D. Findings of fact, which must be sufficient to apprise the parties of the basis for the recommended decision;

E. A clear statement of result resolving all issues under consideration; and

F. A clear explanation of the reasoning underlying the result, including references to applicable law and rules.

2. Comments, modification, and delivery to the Board

A. The hearing officer will furnish a copy of the recommended decision to each of the parties for comment. A party's comments must be in writing and must be received within the time period set by the hearing officer.

B. If a party believes that the hearing officer’s decision contains one or more errors of law, or that the hearing officer has exceeded their jurisdiction, or that there is no support in the record for the factual findings of the hearing officer, the party shall so advise the hearing officer in that party’s written comments. Identification of the error(s) by specific record citation is required.

C. The hearing officer may, but is not required to, modify the recommended decision in response to the parties' comments. If in the judgment of the hearing officer, the previously issued recommended decision is substantially modified, the hearing officer will send the recommended decision as modified to the parties for further comment, as provided in paragraph A.

D. The hearing officer will submit the recommended decision, as originally prepared and as modified, together with the written comments made by the parties, to the Board clerk. Where the recommended decision is not modified, the hearing officer will also deliver to the Board clerk a written response to the parties' written comments. Upon transmittal to the Board, the decision of the hearing officer constitutes the recommended final decision of the hearing officer.

E. If a party believes that the recommended final decision of the hearing officer contains one or more errors of law, or that the hearing officer has exceeded their jurisdiction, or that there is no support in the record for the factual findings of the hearing officer, the party must so notify the Board in writing so that the notification is received by the Board within 10 days after that party’s receipt of the recommended final decision, specifying the error(s) by specific citation to the record. In the event no written comments are received by the Board as specified herein, the Board will be compelled to accept the recommended final decision pursuant to 5 M.R.S. §17106-A and will not schedule consideration of the appeal or permit oral argument by the parties.

SECTION 16. Action by the Board

1. If the Board is compelled to adopt the recommended final decision of the hearing officer pursuant to 5 M.R.S. §17106-A(1), the Board will do so during its monthly meeting, as time permits, and will not schedule consideration of the appeal or permit oral argument by the parties.

2. If a party believes an error exists in the recommended decision pursuant to 5 M.R.S. §17106-A and the alleged error has not been resolved by the hearing officer, that party shall notify the Attorney General’s Office, to the attention of MainePERS Board counsel, so that the notification is received within 10 days of that party’s receipt of the recommended final decision.

A. The Board or Board counsel may on its own initiative, determine that an error pursuant to 5 M.R.S. §17106-A exists in the recommended final decision.

3. Upon review of the record, the Attorney General or designee shall notify the parties, prior to the scheduled Board consideration, whether the Board will be advised that an error of law exists in the recommended final decision.

4. If the Attorney General or designee recommend that the Board find one or more errors in the recommended final decision as described in 5 M.R.S. §17106-A(1), then the following procedures will be followed.

Board Consideration. The Board will consider the recommended final decision, together with the allegation of error(s), on a timely basis and, for an appellant who has chosen the expedited appeal process, will issue a decision within 90 days of the initial pre-hearing conference, when possible.

B. Recommended final decision and record. In advance of Board consideration, a copy of the recommended final decision with the parties’ comments and Board counsel’s recommendation, will be forwarded to each Board member.

C. Statement by party. A party who is present at a scheduled consideration may not offer evidence but may make a statement of position not to exceed 15 minutes in length. Such statement of position may address the alleged error(s) pursuant to 5 M.R.S. §17106-A(1). When a party's statement of position relies on specific portions of the record, the party must provide copies of the relevant portions to the Board and other parties at least 5 days prior to the date for consideration by the Board.

D. Hearing officer present. If requested by the Board, the hearing officer may be present at the scheduled consideration to assist the Board.

E. Action after consideration. After considering the recommended final decision, the Board may:

(1) adopt the recommended final decision as delivered;

(2) modify the recommended final decision;

(3) send the recommended final decision back to the same hearing officer if possible, or a replacement hearing officer for the taking of further evidence, for additional consideration of issues, for reconsideration of the application of law or rules, or for such other proceedings or considerations as the Board may specify; or

(4) reject the recommended final decision in whole or in part and issue an amended Board decision;

5. A decision as issued by the Board under this Section is the final administrative decision in the appeal.

SECTION 17. Attorney’s Fees

1. The System is required by 5 M.R.S. §17106-B(5) to pay attorney’s fees, up to a total of $12,000, if an attorney has represented the appellant on appeal of a disability retirement decision and obtained a favorable result. A favorable result is a reversal of a decision of the Board or Chief Executive Officer that results in the grant of benefits to the appellant or otherwise materially advantages the appellant.

2. Attorney’s fees under this section may be awarded by a Court on judicial review of a Board decision or by the hearing officer in the case where a decision of the Chief Executive Officer has been reversed by the Board or the Chief Executive Officer.

3. Application to a hearing officer for attorney’s fees must be made no later than 30 days after receipt of the Board decision or the dismissal of the appeal following reversal by the Chief Executive Officer.

A. The application must be accompanied by proof of the fee arrangement and a statement of attorney’s fees incurred in the appeal. The statement of attorney’s fees shall be accompanied by an affidavit executed by the attorney of record itemizing the attorney’s charges for legal services and a statement of the attorney’s customary billing rate for similar work.

B. The hearing officer may grant the application based on the proof submitted or may hold a hearing and receive argument orally, in writing, or both.

C. A decision on an attorney’s fee application may be appealed to the Board, who shall affirm the decision unless it is not supported by the record as a whole, the Board is advised by Attorney General that the hearing officer has made an error of law, or the decision exceeds the authority or jurisdiction conferred upon the hearing officer.

1. The process for Board review shall be consistent with section 16 above to the extent applicable.

2. The Board’s decision constitutes final agency action.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 9051-9064, 17103(4), 17106-A, 17106-B and 17451
• EFFECTIVE DATE: March 1, 2023 – filing 2023-035
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• EFFECTIVE DATE: The MainePERS office in Augusta shall be the normal location for hearings, absent a request made in the notice of appeal or at the pre-hearing conference, together with a showing by the requesting party of a compelling need for an alternative venue. ↑

Chapter 703 Advisory Rulings

Code Me. R. 94-411 Ch. 703 Advisory Rulings {#sec-94-411-ch.-703 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 703}

SUMMARY: This Chapter establishes the procedures for the submission, consideration and disposition for requests for advisory rulings as required by 5 M.R.S. § 9001.

SECTION 1. PURPOSE

The purpose of this Chapter is to explain the guidelines around advisory rulings by the Maine Public Employees Retirement System (“MainePERS”).

SECTION 2. DELEGATION OF AUTHORITY

Pursuant to statute, for purposes of this Chapter, the Board of Trustees delegates to the Chief Executive Officer its authority to act as the final administrative decisionmaker of the Board of Trustees and authorizes the Chief Executive Officer to further designate another MainePERS staff member or members to act.

SECTION 3. SCOPE

On the submission of a request for an advisory ruling by an interested person, the Chief Executive Officer or designee may issue an advisory ruling in accordance with 5 M.R.S.A. § 9001, concerning the applicability of a statute or rule administered by MainePERS to existing facts. Chief Executive Officer or designee may, in their discretion, decline to issue an advisory ruling (in whole or in part) if the request is hypothetical, if there is insufficient information on which to base a ruling, or for any other reason they deem proper.

SECTION 4. SUBMISSION OF REQUEST FOR AN ADVISORY RULING

A request for an advisory ruling must be submitted to MainePERS in writing and must set forth in detail all pertinent facts related to the question presented. Upon request of the Chief Executive Officer or designee, the requestor must submit any additional information that is determined is necessary to issue the advisory ruling. All submissions requesting an advisory ruling must be directed to:

Maine Public Employees Retirement System

P.O. Box 349 Augusta, ME 04332

SECTION 5. DISPOSITION

Any advisory ruling issued by Chief Executive Officer or designee will be in writing and will state that an advisory ruling is not binding on MainePERS.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 9001, 17103, and 17105
• EFFECTIVE DATE (NEW): August 3, 2026 – filing 2026-180

Chapter 802 Participating Local Districts; Membership / Part-Time, Seasonal or Temporary Employees

Code Me. R. 94-411 Ch. 802 Participating Local Districts: Membership for Part-Time, Seasonal or Temporary Employees {#sec-94-411-ch.-802 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 802}

SUMMARY: This Chapter establishes the extent to which a participating local district may include or exclude its part-time, seasonal or temporary employees from membership in the Maine State Retirement System. It specifies the manner in which a participating local district must notify the System of its decision with respect to these employees. It provides that under certain circumstances, employees have an option to withdraw from or join the System. It requires that participating local districts continue to contribute to the System in accordance with their existing plans on behalf of part-time, seasonal or temporary employees until the System is notified of any change and it establishes deadlines for action and the consequences of failure to act.

1. Purpose and Scope

The purpose of this Chapter is to establish the criteria and procedures by which participating local districts may, in accordance with Federal Social Security law and IRS rules and with Retirement System statutes, include part-time, seasonal or temporary employees in or exclude them from membership in the System. Under Retirement System statutes (5 MRSA §18202, sub-§2) a statutory amendment which could grant benefits to employees of a participating local district is effective as to that district only if the district adopts the amendment. Accordingly, the provisions of PL 1991, c. 619 which could grant benefits (e.g., "immediate vesting" in a non-forfeitable right to a refund of contributions at 7.5%; annualized compensation) are effective as to a participating local district only if adopted by it. This Chapter provides the mechanism for and results of adoption, and nonadoption of these. The non-benefit provisions of PL 1991, c. 619 which apply to participating local districts are effective without adoption by the districts.

The Chapter governs membership for those part-time, seasonal or temporary employees who fit the definitions of these terms as established by Federal law (26 CFR Part 31) and adopted by the Maine Legislature and by this Chapter. Thus, not all employees who work in part-time or seasonal or temporary positions are part-time, seasonal or temporary employees within the scope of this Chapter.

This Chapter supersedes and replaces Chapter 802 (emergency) of the Board's rules.

2. Authority

This Chapter is adopted under the authority of 5 MRSA S18202 (2), 5 MRSA §18206 as amended by PL 1991, c. 619, and 5 MRSA §8051 - §8064.

3. Definitions

A. Board. "Board" means the Board of Trustees of the Maine State Retirement System.

B. Participating local district. “Participating local district" means a local district which has approved the participation of its employees in the Retirement System under §18201.

C. Part-time, seasonal or temporary employee. "Part-time, seasonal or temporary employee", means an employee whose employment position is part-time, seasonal or temporary as defined in 26 CFR Part 31, attached to this rule as an Appendix.

D. PL 1991, c. 619. "PL 1991, c. 619" means, for purposes of section 5 and section 6 of this Chapter, those provisions of PL 1991, c. 619 which could grant benefits to the employees of participating local districts.

E. System. "System" means the Maine State Retirement System.

4. Applicability"

This Chapter applies to all participating local districts, regardless whether they have Section 218 agreements, and as of January 1, 1992, governs membership in the System by part-time, seasonal or temporary employees of the districts.

5. Participating Local Districts Without Section 218 Agreements

A participating local district which does not have a Section 218 agreement may:

A. Adopt PL 1991, c. 619 for all Part-time, seasonal or temporary employees. A district may adopt PL 1991, c. 619 for all of its part-time, seasonal or temporary employees who were employees of the district on December 31, 1991, and all part-time, seasonal or temporary employees hired on or after January 1, 1992 by filing with the Board a certified copy of the vote of the body entitled to approve participation in the System. All of the district's part-time, seasonal or temporary employees must be members of the System.

B. Adopt PL 1991, c. 619 for employees who were part-time, seasonal or temporary employees of the district on December 31, 1991. A participating local district may adopt PL 1991, c. 619 only for those part-time, seasonal or temporary employees who were employees of the district on December 31, 1991, by filing with the Board a certified copy of the vote of the body entitled to approve participation in the System. All of the district's part-time, seasonal or temporary employees who were employees of the district on December 31, 1991, must be members of the Retirement System. Part-time, seasonal or temporary employees hired by the district after December 31, 1991, may not become members of the System.

NOTE: A district must also meet the requirements of Federal Social Security law and IRS rules for part-time, seasonal or temporary employees hired after December 31, 1991.

C. Decline to adopt PL 1991, c. 619. A participating local district may decline to adopt the provisions of PL 1991, c. 619 by filing with the Board a certified copy of the vote of the body entitled to approve participation in the System.

(1) A person who was a part-time, seasonal or temporary employee of the district on December 31, 1991, who was a member of the System on December 31, 1991 and who first became a member before July 1, 1991 may elect to withdraw from the System, as follows:

a. The district must give written notice to each such employee of the employee's right to withdraw from membership.

b. The employee must give written notice to the district that s/he elects to withdraw from membership.

c. The district must transmit each employee's written notice of election to withdraw to the System no later than September 1, 1992.

d. All elections to withdraw are effective as of January 1, 1992 and are final. The System will refund the contributions of each employee who elects to withdraw.

e. An employee who does not elect to withdraw continues to be a member under the System’s statutes without the amendments made by PL 1991, c. 619 and may not later withdraw under this Chapter.

(2) The provisions of paragraph l(a)-(e) apply to the part-time, seasonal or temporary employees of a participating local district which, acting under Chapter 801 (Emergency), declined to adopt the provisions of PL 1991, c. 619 and which does not act to change its election under subsection F. An employee who was removed from membership as a result of action taken by the district under Chapter 801 (Emergency) who does not elect to withdraw must be reinstated as a member effective as of the date of removal. Employer and employee contributions must be made on compensation paid for service rendered during the time between removal and reinstatement.

(3) The district may exclude from membership persons who were part-time, seasonal or temporary employees of the district on December 31, 1991, and who were members of the System on December 31, 1991 but who became members on or after July 1, 1991. The exclusion is effective as of January 1, 1992. The provisions of this paragraph apply to participating local districts which, acting under Chapter 801 (Emergency), declined to adopt the provisions of PL 1991, c. 619 and which does not act to change its election under subsection F.

a. The district must establish the exclusion by filing with the Board a certified copy of the vote of the body entitled to approve participation in the System, together with the names of the affected members.

b. Contributions of excluded employees related to service after January 1, 1992 must be refunded.

(4) A part-time, seasonal or temporary employee hired after December 31, 1991 may not become a member of the System.

NOTE: A district must also meet the requirements of Federal Social Security law and IRS rules for its part-time, seasonal or temporary employees. The amendments made by c. 619 do not apply to the district’s part-time, seasonal or temporary employees.

D. Effective date of action. Regardless of the date upon which the vote under A, B or C is filed, the action is effective as of January 1, 1992.

E. Status until action taken. Until a participating local district takes action as required under this section, it must continue to make contributions to the System, if it is required to do so by terms of its participation, for all of its part-time, seasonal or temporary employees whether they are employees of the district on December 31, 1991 or are hired thereafter.

NOTE: A district must also meet the requirements of Federal Social Security law and IRS rules for its part-time, seasonal or temporary employees.

F. Change of Prior election. A district which filed an election with the System under Chapter 801 (Emergency) before the effective date of this Chapter may change its election by taking action under A, B or C above. The deadline established by G applies to a change of election and the new election is effective as of January 1, 1992. If a district files a change of election, the election bearing the latest date controls. An election made under this Chapter is final.

G. Failure to act. Except as provided in section 6, a district which does not file the vote required by this Chapter with the Board by September 1, 1992, will be deemed to have declined to adopt the provisions of PL 1991, c. 619.

(1) The district may not in future make an election under this Chapter.

(2) The provisions of section 5(C) with respect to employee election apply as in Section 5(c).

NOTE: A district must also meet the requirements of Federal Social Security law and IRS rules for its part-time, seasonal or temporary employees.

H. No Part-time, seasonal or temporary employees. A district which has no part-time, seasonal or temporary employees on December 31, 1991, must make its election under this chapter no later than the time at which it first hires a part-time, seasonal or temporary employee.

6. Participating Local Districts Having Section 218 Agreements

A participating local district which has a Section 218 agreement may adopt PL 1991, c. 619 only for those part-time, seasonal or temporary employees of the district who were not covered by the district's Section 218 agreement prior to July 1, 1991, and who were members of the System on June 30, 1991, for the purpose of offering to those employees the choice of membership in the System under the System's statutes as amended by c. 619. The district must make the adoption by filing with the Board a certified copy of the vote of the body entitled to approve participation in the System.

A. The district must give written notice in a timely manner to each such employee of the employee’s right to choose to be a member of the System under the System’s statutes as amended by PL 1991, c. 619.

B. The employee must give written notice to the district that s/he chooses to be a member of the System under the System's statutes as amended by PL 1991, c. 619.

C. The district must transmit to the System no later than September 1, 1992 each employee's written notice of choice.

D. The employee's choice is effective as of January 1, 1992 and is final.

E. An employee who does not choose to be a member as provided in this section by July 1, 1992, may not later become a member under this section.

EFFECTIVE DATE: May 4, 1992

EFFECTIVE DATE: June 9, 1992 (Permanent Rule)

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 5, 1996

NON-SUBSTANTIVE CORRECTIONS: October 3, 1996 - minor spelling and format.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

APPENDIX TO CHAPTER 802, M.S.R.S. RULES

26 CFR Part 31: DEFINITIONS OF PART-TIME, SEASONAL AND TEMPORARY EMPLOYEE

(iii) Definitions of part-time, seasonal and temporary employee--

(A) Definition of part-time employee. For purposes of this section, a part-time employee is any employee who normally works 20 hours or less per week. A teacher employed by a post-secondary educational institution (e.g., a community or junior college, post-secondary vocational school, college, university or graduate school) is not considered a part-time employee for purposes of this section if he or she normally has classroom hours of one-half or more of the number of classroom hours designated by the educational institution as constituting full-time employment, provided that such designation is reasonable under all the facts and circumstance. In addition, elected officials and election workers (otherwise described in section 3121 (b) (7) (F) (iv) but paid in excess of $100 annually) are not considered part-time, seasonal or temporary employees for purposes of this section. The rules of this paragraph (d) (2) (iii) are illustrated by the following example.

Example. A community college treats a teacher as a full-time employee if the teacher is assigned to work 15 classroom hours per week. A new teacher is assigned to work 8 classroom hours per week. Because the assigned classroom hours of the teacher are at least one-half of the school's definition of full-time teacher, the teacher is not a part-time employee.

(B) Definition of seasonal employee. For purposes of this section, a seasonal employee is any employee who normally works on a full-time basis less than 5 months in a year. Thus, for example, individuals who are hired by a political subdivision during the tax return season in order to process incoming returns and work full-time over a 3-month period are seasonal employees.

(C) Definition of temporary employee. For purposes of this section, a temporary employee is any employee performing services under a contractual arrangement with the employer of 2 years or less duration. Possible contract extensions may be considered in determining the duration of a contractual arrangement, but only if, under the facts and circumstances, there is a significant likelihood that the employee's contract will be extended. Future contract extensions are considered significantly likely to occur for purposes of this rule if on average 80 percent of similarly situated employees (i.e., those in the same or a similar job classification with expiring employment contracts) have had bona fide offers to renew their contracts in the immediately preceding 2 academic or calendar years. In addition, future contract extensions are considered significantly likely to occur if the employee with respect to whom the determination is being made has a history of contract extensions with respect to his or her current position. An employee is not considered a temporary employee for purposes of this rule solely because he or she is included in a unit of employees covered by a collective bargaining agreement of 2 years or less duration.

Chapter 803 Participating Local District Consolidated Retirement Plan

Code Me. R. 94-411 Ch. 803 Participating Local District Consolidated Retirement Plan {#sec-94-411-ch.-803 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 803}

SUMMARY: This chapter establishes a consolidated retirement plan, as required by 5 M.R.S. §18801 et seq . for local districts that are participating local districts under 5 M.R.S., Chapter 425 before the date the plan is put into operation and for local districts that enter into agreements for the participation of their employees in the Maine Public Employees Retirement System after The Plan is put into operation.

NOTE: 5 M.R.S., Chapter 421, General Provisions , is applicable to all activities relating to the Maine Public Employees Retirement System, including the subject matter of this chapter of the rules of the Board of Trustees (“Board”). 5 M.R.S., Chapter 427, Participating Local Districts Consolidated Plan , is the statute from which this chapter of the rules of the Board derives its authority and is applicable to all activity based upon this chapter.

SECTION 1. DEFINITIONS

Local District. "Local district" means:

1. Any county, municipality, quasi-municipal corporation or incorporated instrumentality of the State or of one or more of its political subdivisions;
2. Any incorporated association of employees of the State or employees of any of the entities set out in paragraph A;
3. Any incorporated association of any of the entities set out in paragraph A;
4. Any entity eligible to become a participating local district before January 1, 1976;
5. Any entity participating in the Retirement System before January 1, 1976; or
6. Any educational institution in the State teaching courses equivalent to or higher than secondary institutions.
7. Any public charter school, as authorized by Title 20-A, chapter 112.

“ Consumer Price Index ” means:

1. The Consumer Price Index for All Urban Consumers, CPI-U, as compiled by the Bureau of Labor Statistics, United States Department of Labor; or
2. If the index described in paragraph A is revised or superseded, the Board must employ the Consumer Price Index compiled by the Bureau of Labor Statistics, United States Department of Labor that the Board finds to be most reflective of changes in the purchasing power of the dollar for the broadest population of consumers, including retired consumers.

" Current Employer " means the employer who is the member's employer at the time the member becomes a member under The Plan.

" Member " means any employee included in the membership of The Plan.

“ Normal Retirement Age ” means the specified age, the years of service requirement or any combination of age and years of service requirements at which a member becomes eligible for an unreduced retirement benefit.

" Participant " means any employee included in the defined contribution plan under this chapter.

" Participating Local District " means a local district which has approved the participation of its employees in the Retirement System under 5 M.R.S. §18201 or

§18804.

" The Plan " means the defined benefit plan under the consolidated retirement plan for local districts established by 5 M.R.S., Chapter 427 (§18801 et seq .) and this chapter.

Other Terms. All other terms used in this chapter, unless the context otherwise indicates, shall have the same definitions as in 5 M.R.S. §17001.

SECTION 2. LOCAL DISTRICT PARTICIPATION

Participating Local District Election. Before July 1, 1996, the executive body or legislative body of each local district that is a participating local district under 5 M.R.S., Chapter 425 (§18201 et seq .) must, by resolution or order, elect one of the following options. Failure to make an election will have the same effect as electing paragraph B.

1. To Join The Plan. A participating local district may elect to participate in The Plan in accordance with the requirements of 5 M.R.S. §18804. Upon receipt of the certified copy of the resolution or order and record of the vote, the Executive Director shall prepare an agreement, to be signed by the authorized representative of the district and the Executive Director, specifying the parts of The Plan applicable to the district and the duties and rights of the district and the Retirement System. The resolution or order shall include: 1. Approval of the participation in The Plan; 2. The regular service retirement benefit plan and, if applicable, the special service retirement benefit plan elected from those provided by this chapter for the district's employees; and 3. The name or title of the person authorized to sign the agreement on behalf of the local district.
2. To Be Transferred to The Plan. A participating local district may elect to have its participation in the Retirement System transferred to The Plan without electing the retirement benefit plan or plans for the district's employees. 1. The Retirement System will transfer the district's employees to the plan or plans with the benefit level or levels closest to the district's current plan or plans. 2. The resolution or order shall include the same information as that required under paragraph A, except that it shall state that the Retirement System is to determine the retirement benefit plan or plan that apply to the district's employees. 3. The agreement as prepared by the Executive Director shall be as provided in paragraph A.
3. To Withdraw from the Maine Public Employees Retirement System. Subject to 5 M.R.S. §18203, a participating local district may withdraw from participation in the Retirement System. The effect of withdrawal on the district's employees is governed by 5 M.R.S. §18254.

Local District May Enter into Agreement for The Plan. Any local district that is not a participating local district before July 1, 1993, may enter into an agreement for participation of its employees in the Retirement System only under The Plan and in the manner provided by 5 M.R.S. §18804, sub-§1 or 2. Upon receipt of the certified copy of the resolution or order and record of the vote, the Executive Director shall prepare an agreement specifying the parts of The Plan applicable to the district and the duties and rights of the district and the Retirement System. The resolution or order shall include:

1. Approval of the participation in The Plan;
2. The regular service retirement benefit plan and, if applicable, the special service retirement benefit plan elected from those provided by this chapter for the district's employees;
3. A list of classes, and a list by name and social security number, of any employees who are excluded from membership based upon their being provided for by local pension provisions;
4. Any limitations on the granting of service credits to employees for service before the beginning date of the participation of its employees in The Plan; and
5. The name or title of the person authorized to sign the agreement on behalf of the local district.

Effective Date; Date of Operation; Date of Participation

1. Effective Date. July 1, 1993, is the effective date of The Plan. Participating local districts and other local districts may enter into an agreement to participate in The Plan on and after that date.
2. Date the Plan Goes into Operation. The Plan will be put into operation as of July 1 immediately following the date when: 1. The number of local districts that have entered into agreements for participation in The Plan with an election of regular service retirement benefits for their employees exceeds 3% of the districts which as of that date are participating in the Retirement System in regular service retirement benefit plans; 2. The number of local districts that have entered into agreements for participation in The Plan with an election of special service retirement benefits for their employees exceeds 3% of the districts which as of that date are participating in the Retirement System special service retirement benefit plans; and 3. In each instance the total number of members employed by districts that have entered agreements exceeds 5% of the total of all participating local district members in each category as of that date.
3. Date of Participation. The date of participation in The Plan for a participating local district is the first day of the month that most immediately follows the date on which the agreement for participation is signed by the Executive Director and the authorized representative of the participating local district or such later date stated in the agreement or amendment, unless The Plan is not then in operation, in which case, the date of participation is the date on which The Plan goes into operation.

Full Withdrawal from The Plan. A participating local district may fully withdraw from participation in The Plan by filing with the Board of Trustees a duly certified copy of the withdrawal vote of the body entitled to approve participation under 5 M.R.S. §18804, sub-§1 or 2. The withdrawal date is the later of the last day of the month following the month in which the certified notice is received by the Board or the last day of a later month specified in the notice. The effect of withdrawal on the district's employees is governed by 5 M.R.S.

§18254, sub-§1 through 4.

A participating local district that withdraws from participation in The Plan must continue to make payments as required under Section 5, subsection 2.

Additionally, the withdrawing participating local district must make a withdrawal liability payment determined as follows:

1. The System’s actuary will calculate the pooled unfunded actuarial liability of The Plan as of the most recent valuation date that precedes the withdrawal date. The actuary will allocate a portion of the pooled unfunded actuarial liability to the withdrawing participating local district on the basis of the proportion of the withdrawing participating local district’s total covered payroll to the total covered payroll of The Plan as of the valuation date.
2. Unless otherwise agreed under subparagraph 3, the actuary will subtract from the withdrawing participating local district’s portion calculated under subparagraph 1 the present value, as of the withdrawal date, of pooled unfunded actuarial liability payments the participating local district has made since the valuation and pooled unfunded actuarial liability payments the participating local district is expected to pay through the payment of employer contributions after withdrawal on those employees who remain active members. The difference is the withdrawal liability payment amount.
3. As an alternative to subparagraph 2, the Executive Director and the withdrawing participating local district may agree that the withdrawal liability payment amount is the withdrawing participating local district’s portion as calculated under subparagraph 1, reduced only by the present value, as of the withdrawal date, of any pooled unfunded actuarial liability payments the participating local district has made since the valuation. In that case, the withdrawing participating local district’s obligations under paragraph A do not include payments under Section 5, subsection 2, paragraph C.
4. The withdrawing participating local district may pay this withdrawal liability amount in a lump sum or amortize it over a period of up to 30 years at the actuarial assumed rate of return used in the most recent valuation that precedes the withdrawal date.

The withdrawing participating local district remains a participating local district subject to this rule until it has no remaining active members and all of its liabilities for inactive vested members, retired members and beneficiaries of retired members have been satisfied according to the requirements of federal and state law, and rules and policies governing satisfaction of liabilities.

4-1. Partial Withdrawal from The Plan. For purposes of this subsection, a partial withdrawal occurs when a participating local district elects a change under subsection 7 that excludes a category of employees from membership who would have been eligible for membership absent the change. In the case of a partial withdrawal, the participating local district must make a withdrawal liability payment calculated and paid in the same manner as set forth in subsection 4, paragraph B, except that the portion of The Plan’s pooled unfunded actuarial liability that will be allocated to the partially-withdrawing participating local district will be based on the proportion of the district’s covered payroll for that category of employees to the total covered payroll of The Plan as of the valuation date.

Resumption of Participation after Withdrawal. A participating local district that has withdrawn from The Plan under subsection 1, paragraph C or subsection 4 may resume participation in The Plan by taking the actions required by subsection 2.

1. A participating local district which has resumed participation and which thereafter again withdraws may not subsequently again resume participation before 3 years from the date of its immediately prior withdrawal.
2. A local district may resume participation only under the consolidated plan. The retirement benefit plan adopted by the local district on resumption is applicable to all current and future employees who are members if the plan results in a higher level of benefits for the district’s employees. The plan adopted on resumption is applicable only to new employees if the plan results in a lower level of benefits for the district’s employees or results in a change from a plan with cost of living adjustments to a plan without cost of living adjustments.
3. Effect on employees. Except as set forth below in this paragraph C, employees of a local district which resumes participation in the Retirement System are eligible for membership in the System on the same basis as employees of a local district upon initial participation. 1. Employees who did not withdraw from membership when the local district withdrew from participation in the System may continue membership on the same basis as before the resumption of participation and are entitled to any additional benefit provisions selected and any increase in the level of benefits provided under The Plan. 2. Employees for whom membership was compulsory who withdrew from membership when the local district withdrew from participation in the System must resume membership in the System if membership with the local district remains compulsory upon the resumption of participation by the local district. 1. These employees may receive service credits for previous membership service upon repayment of withdrawn accumulated contributions and applicable interest. 2. These employees may not purchase service credits for periods of employment between withdrawal from membership and resumption of participation by the local district. 3. Employees for whom membership was not compulsory and who elected not to become or remain a member may not be a member as an employee of that local district unless the employee is electing to rejoin The Plan and: 1. The employee is covered by a plan provided by the employer under section 5 M.R.S. §18252-B with an employee contribution rate that is not lower than the employee contribution rate for the applicable plan under The Plan; and 2. Employee contributions after rejoining The Plan qualify for treatment as pick-up contributions for federal tax purposes and the person’s membership otherwise complies with the United States Internal Revenue Code as applicable to governmental qualified defined benefit plans. 4. The participating local district may allow current employees who began service with the district after the district withdrew from participation to purchase service credits for service rendered from the time of hire to the resumption of participation. The purchase of such service credits is governed by 5 M.R.S. §18253, sub-§2, paragraphs A and B. 5. If the district grants prior service credits, those service credits shall be based only upon the employee’s employment with the district before the district’s initial date of participation.

Disbanded or Dissolved Districts. The effect of the disbanding or dissolution of a district that participates in The Plan on the membership and benefits of its employees is governed by 5 M.R.S. §18255 and §18408.

Change of Service Retirement Benefit Plan or Plans. After beginning participation in The Plan, a participating local district may elect to change the service retirement benefit plan or plans which apply to the district's employees by following the same process set forth in Section 2 for participation in The Plan. The change is applicable to all current and future

employees who are members, if the change results in a higher level of benefits for the district's employees. The change is applicable to new employees only, if the change results in a lower level of benefits for the district's employees or results in a change from a plan with cost of living adjustments to a plan without cost of living adjustments.

The Executive Director shall prepare either a new agreement or an amendment to the district's agreement which will be signed by the authorized representative of the district and the Executive Director. The effective date of the change is the first day of the month that most immediately follows the date the new agreement or amendment to the agreement is signed by the authorized representative of the district and the Executive Director or such later date stated in the agreement or amendment.

If the retirement system determines that a certified action received under Section 2 is unclear, the chief administrative officer of the participating local district may clarify in writing any ambiguity in the certified action, and the retirement system may rely on that clarification.

SECTION 3. MEMBERSHIP

Compulsory Membership. Membership is compulsory for all employees who are in the service of a participating local district on the date when participation of the employees of that district in The Plan begins and who are members of the System on that date and for all employees entering the service of that district after that date, except as provided under subsection 2 and 3. A local district that is not a participating local district before July 1, 1993, shall designate in its resolution or order approving participation any class of employees otherwise provided for by local pension provisions who are excluded from membership in The Plan as provided under 5 M.R.S. §18804, sub-§3.

Optional Membership. Optional membership under The Plan for employees of participating local districts is governed as follows:

1. Member When Participation of Employees Begins. Membership is optional for employees in the service of a local district on the date when the participation in the Retirement System of the employees of the local district first begins, whether under 5 M.R.S., Chapters 425 or 427.
2. Elected or Appointed Officials. Membership is optional for elected officials and officials appointed for a fixed term.
3. Trustees of Water, Sanitary and Sewer Districts. Membership of trustees of water, sanitary and sewer districts is subject to the following: 1. Water districts. Membership of trustees of a water district is governed by 35-A M.R.S., §6410, subsection 8; 2. Sanitary districts. Membership of trustees of a sanitary district is governed by 38 M.R.S. §1104. 3. Sewer districts. Membership of trustees of a sewer district is governed by 38 M.R.S. §1036.
4. Employees Covered by Social Security. Membership is optional for an employee of a participating local district who is covered under the United States Social Security Act . Except as provided by paragraph H, optional membership for those employees is subject to 5 M.R.S. §18252.
5. Employees Not Covered by Social Security. Membership is optional for any employee of a participating local district that does not provide Social Security coverage provided that the district offers an alternative plan that meets the requirements of

5 M.R.S. §18252-B, and provided that the employee participates in the alternative plan. Optional membership for those employees is subject to 5 M.R.S. §18252-A as amended by PL 2021, c. 90.

1. Chief Administrative Officer. Membership is optional for a chief administrative officer of a participating local district, whether appointed for a fixed term or whether appointed with tenure.
2. Employees Not Subject to Municipal Public Employees Labor Relations Law. Membership is optional for those employees who are not subject to the municipal public employees labor relations laws contained in 26 M.R.S., Chapter 9-A.
3. Membership for employees of a participating local district that provides a plan under

5 M.R.S. §18252-B is governed by 5 M.R.S. §18252-A as amended by PL 2021, c. 90.

1. The provisions of 5 M.R.S. §18252-C apply only to employees of participating local districts who specifically adopt them in their participation agreement.

Part-Time, Seasonal or Temporary Employees. Membership of part-time, seasonal and temporary employees, as defined by Chapter 802 (94-411 CMR 802) of the rules of the Board is determined by the election made by each participating local district under Section 2.

Cessation of Membership. A member ceases to be a member of the Retirement System if the member:

1. Withdrawal. Withdraws accumulated contributions;
2. Beneficiary. Becomes a beneficiary as a result of the member's own retirement; or
3. Death. Dies.

Service in the Armed Forces. The membership of the following members under The Plan is considered to have continued during the period of the member's service in the Armed Forces of the United States:

1. Any member entering a class of service in the Armed Forces of the United States approved by resolution of the Board, if the member does not withdraw accumulated contributions;
2. Any member who enlists in or is inducted or drafted into the service of the Armed Forces of the United States; and
3. Any member who enlists in or is inducted or drafted into the service of the Armed Forces of the United States while the United States Selective Service Act of 1948 , Public Law 759, or any of its amendments or extensions is in effect.

SECTION 4. PORTABILITY OF SERVICE CREDITS; ELIGIBILITY TO RETIRE, COMPUTATION OF BENEFIT

Two or More Employers under The Plan. A member's benefits are based upon all creditable service with all participating employers while a member under The Plan, and creditable service with the member's employer on the date the member began participation under The Plan. When a member under The Plan terminates employment and is subsequently reemployed by another employer whose employees participate in The Plan, the member is not considered to be reemployed by a new employer. If the member is reemployed by the subsequent employer as of the first work day following termination of employment with the previous employer, for the purpose of determining eligibility for benefits, the member is considered to have continuous membership and creditable service.

Previous Employer Not under The Plan ; Subsequent Employer under The Plan. When a member either terminates employment with an employer that has withdrawn from the System, or terminates employment with another employer under the System whose employees are not covered by The Plan, and is employed by a subsequent employer whose employees are members under The Plan, the member's creditable service with the previous employer is used in determining eligibility to retire under the subsequent employer's regular service retirement benefit plan under Section 7. Benefits for service with the previous employer are based upon creditable service and earnable compensation with the previous employer and the provisions of 5 M.R.S., Part 20 in effect with respect to the previous employer at the date of termination of service by the member. A county or municipal law enforcement officer or a municipal firefighter who is eligible under 5 M.R.S. §18253, sub-§1, paragraph E, and who elects to make the contribution necessary under Section 5, subsection 1, paragraph K may include all or part of the creditable service earned with a previous employer with service earned with the new employer both for the purpose of qualification for a service retirement benefit and for the benefit computation.

Previous Employer under The Plan ; Subsequent Employer Not under The Plan. Membership, creditable service and benefits of a member under The Plan who terminates employment and is reemployed as a state employee or teacher are governed by 5 M.R.S.

§17656, sub-§1. Until July 1, 1996, membership, creditable service and benefits of a member under The Plan who terminates employment and is reemployed by a participating local district whose employees do not participate in The Plan are governed by 5 M.R.S. §18253, sub-§1. As required by Section 2, paragraph 1, as of July 1, 1996, each local district that is a participating local district must have either entered into an agreement to participate in The Plan or have withdrawn from participation in the Retirement System.

Service under Two or More Special Service Retirement Benefit Plans; Eligibility to Retire. If a member accrues service credits under more than one special service retirement benefit plan in The Plan, whether with the same employer or more than one employer, credit from service under other special plans toward meeting the retirement eligibility requirements of the special plan from which the member retires is transferred based upon the percentage of the eligibility requirements for the previous plan or plans which were met while under the previous plan or plans. For example, a member who accrues 10 years of creditable service under Special Service Retirement Benefit Plan 1 (1/2 of AFC after 20 years) would have completed 50% of the eligibility requirement under that plan and upon transferring to employment under Special Service Retirement Benefit Plan 2 (1/2 of AFC after 25 years) would be entitled to 50% of the eligibility requirements for that plan; i.e., 12.5 years. The

member's benefit would be calculated at 2.5% of AFC for each year under Plan 1 and at 2% for each year under Plan 2.

Service under Two or More Service Retirement Benefit Plans – One Regular and One Special; Eligibility to Retire

1. Regular Service before Special Service. If a member under The Plan accrues service credits under a regular service retirement plan before accruing service credits under a special service retirement benefit plan, whether with the same employer or more than one employer, 1. the member may retire at any time after the member qualifies for a special service retirement benefit under Section 8. The regular plan service credits may be used toward qualifying to retire under a special service retirement benefit as provided in Section 8. The regular plan service credits used towards qualification for a special service retirement benefit are considered to be special plan service credits for the purpose of computation of the special service retirement benefit as provided in Section 8. If the application of the provisions of Section 4, subsection 6 would result in a greater service retirement benefit, then the benefit will be computed under that section. 2. A member who does not qualify to retire under a special service retirement plan may retire under a regular service retirement plan at any time after the member qualifies under Section 7. The service retirement benefit for all service is computed as provided in Section 7.
2. Special Service before Regular Service. If a member under The Plan accrues service credits under a special service retirement benefit plan before accruing service credits under a regular service retirement benefit plan, whether with the same employer or more than one employer, 1. before qualifying to retire under a special service retirement plan, the member may retire at any time after completing 25 years total service or reaching normal retirement age with at least one year of service. The service retirement benefit for all service is computed as provided in Section 7. 2. after qualifying to retire under a special service retirement plan, the member may retire at any time. The portion of the benefit that is based upon service credits under a regular service retirement benefit plan is subject to early retirement reduction if retirement is before normal retirement age. The portion of any benefit paid to a member that is based upon service credits under Special Service Retirement Benefit Plan 4 is also subject to early retirement reduction, if retirement is before age 55.

Service under Two or More Service Retirement Benefit Plans; Computation of Benefits. When a member has creditable service under two or more service retirement benefit plans, the appropriate benefit formula is applied to each period of service as provided by Section 7, “Regular Service Retirement Benefits Plans” and Section 8, “Special Service Retirement Benefit Plans”. All benefits based upon creditable service under The Plan are based upon one calculation of average final compensation.

SECTION 5. CONTRIBUTIONS

Member contributions

1. Active Member. Each member under The Plan shall contribute to the Retirement System or have pick-up contributions made by the employer at a rate provided by Sections 7, 8, and 9. The contribution rate for a member is the rate assigned to the retirement benefit plan under which the member is accruing service credits.
2. Former Members; Service under The Plan. Any former member who, after having terminated service while a member under The Plan and having withdrawn accumulated contributions, again becomes a member under The Plan may repay the withdrawn contributions to the Members' Contribution Fund under the following conditions: 1. Time. The repayment must be made before the date any retirement benefit becomes effective for the member. 2. Manner of Repayment. The repayment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board. 3. Amount of Repayment. The amount of repayment must be equal to the withdrawn accumulated contributions plus interest on the amount of those accumulated contributions, beginning on the date of withdrawal to the date the repayment or repayments are made, at a rate to be set by the Board not to exceed regular interest by 5 or more percentage points. 4. Credit under The Plan. Except as provided in paragraph C, only withdrawn contributions relating to creditable service under The Plan may be repaid for service credit under The Plan.

Service Not under The Plan

• 1. Withdrawn Contributions 1. Any member who had service while not a member under The Plan and having withdrawn contributions relating to that service may repay the withdrawn contributions to the Members Contribution Fund under the conditions specified in paragraph B, subparagraphs 1 to 3. Creditable service related to these repaid contributions is used in determining eligibility to retire under the applicable regular service retirement benefit plan under Section 7. Benefits for that service are calculated based on that service and on earnable compensation related to that service in accordance with applicable provisions of 5 M.R.S., Part 20 in effect with respect to the previous employer's regular service retirement plan immediately before that employer's employees became members under The Plan. The additional liability relating to the service credits granted under this division becomes part of the previous employer's unpooled unfunded actuarial liability as provided in subsection 2, paragraph A, subparagraph 2. 2. Any member who had service while not a member under The Plan and having withdrawn contributions relating to that service may

repay the withdrawn contributions to the Members Contribution Fund under the conditions specified in paragraph B, subparagraphs 1 to 3. Creditable service related to these repaid contributions is used in determining that a member is qualified to retire and in the computation of retirement benefit under the applicable service retirement benefit plan under Section 7 or Section 8. Unless the service was with the same employer that is the member's employer at the time the contributions are repaid, the contributions provided for under this subparagraph may be repaid only after the participating local district that is the member's employer at the time the contributions are repaid agrees to assume the additional liability incurred as part of the district's unpooled unfunded actuarial liability as provided in subsection 2, paragraph A, subparagraph 2.

Non-member Service

• • 1. Subject to the personnel rules or policies of the member's employer at the time of the service; provided the member has continued to be employed by that employer; and subject to 5 M.R.S. §18305-B, a member who had service as an employee of a participating local district for which contributions were not made may receive service credit for that service upon paying the appropriate contributions to the Members Contribution Fund under the conditions specified in paragraph B, subparagraphs 2 and 3. Creditable service related to these contributions is used in determining that a member is qualified to retire and in the computation of retirement benefit under the applicable service retirement benefit plan under Section 7 or Section

8. The additional liability relating to the service credits granted under this division becomes part of the district's unpooled unfunded actuarial liability as provided in subsection 2, paragraph A, subparagraph 2.

• • 1. Subject to 5 M.R.S. §18305-B, a member who had service as an employee of any participating local district for which contributions were not made may receive service credit for that service upon paying the appropriate contributions to the Members Contribution Fund under the conditions specified in paragraph B, subparagraphs 2 and 3. Creditable service related to these contributions is used in determining that a member is qualified to retire and in the computation of retirement benefit under the applicable service retirement benefit plan under Section 7 or Section 8. The contributions provided for under this subparagraph may be made only after the participating local district that is the member's employer at the time the contributions are made and the service credits are granted agrees to assume the additional liability incurred as part of the district's unpooled unfunded actuarial liability as provided in subsection 2, paragraph A, subparagraph 2.

1. Optional Members with non-member service. The purchase of service credit for a member for whom membership is optional under Section 3, subsection 2 who had service as an employee of a participating local district for which contributions were not made is governed by 5 M.R.S. §18305-B, provided that the member has continued to be employed by the same employer as that during which no contributions were paid.
2. Former Member ; Withdrawal by Employees Not Covered by Social Security. In addition to paragraphs B and C, the repayment of contributions that were withdrawn by a member who is an employee of a participating local district that is not covered under a Social Security Section 218 agreement but that has a plan that meets the requirements of 5 M.R.S. §18252-B is subject to the provisions of 5 M.R.S. §18252-A as amended by PL 2021, c. 90.
3. Service in the Armed Forces before Becoming a Member. A member who qualifies under Section 6, subsection 4, paragraph B, sub-paragraphs 1 through 4, shall contribute to the Retirement System for the period of service in the Armed Forces under the following terms and conditions: 1. Contributions are calculated at the percentage rate required of active members during the period of time covered by the service in the Armed Forces applied to the member's earnable compensation during the first year as an employee subsequent to service in the Armed Forces under the following terms and conditions: 1. The payment may not be made until the member has accumulated at least 15 years of creditable service and must be made before the date any retirement benefit becomes effective for the member; 2. If 2 or more percentage rates were in effect during the period of service in the Armed Forces, the highest percentage rate is used; 3. The minimum rate is 5%; and 4. Interest at a rate set by the board not to exceed regular interest by

2 or more percentage points is paid on the unpaid balance beginning January 1, 1976, or the date of attaining 15 years of creditable service, if later, to the date payment is made.

• 1. Manner of Repayment. The repayment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.

1. Service in the Armed Forces after Becoming a Member. For members who qualify to have their membership in the Retirement System continued under

Section 3, subsection 5 because of service in the Armed Forces of the United States, the participating local district shall contribute to the Members' Contribution Fund the same amount that the member would have been required to contribute if the member had been serving the district during the period of service in the Armed Forces in the same capacity in which the member was serving at the time the member joined the Armed Forces. Any member whose contributions to the Members' Contribution Fund are paid by the district under this subsection, who withdraws or ceases to be a member of the Retirement System, may not withdraw any of the contributions made by the district under this subsection. Upon receiving written certification and substantiation from the member's employer that a member has met the requirements of Section 3, subsection 5 and Section 6, subsection 4, paragraph A, the System shall calculate the member contributions applicable to the period of service in the Armed Forces. The participating local district by which the member is employed is responsible for those contributions and will be billed by the System.

1. Out-of-state Service. A member who qualifies under Section 6, subsection 5, must make contributions into the Members' Contribution Fund for the years of out-of-state service under the following terms and conditions: 1. Contributions are calculated on the same basis as the member would have made contributions had the service been in the State; 1. The payment may not be made until the member has accumulated at least 20 years of creditable service in the Retirement System and must be made before the date any retirement benefit becomes effective for the member; and 2. Interest at a rate, to be set by the Board, not to exceed regular interest by 5 or more percentage points is paid on the unpaid balance. Interest shall be computed from the end of the year when those contributions would have been made, if the service had been in the State, to the date of payment. 2. Manner of Payment. The payment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.
2. Refund of Contributions. Refunds of contributions to members under The Plan are subject to 5 M.R.S. §§ 18306-A and 18307-A.
3. Teachers in Private, Parochial and Other Schools. A member who qualifies under Section 6, subsection 8, must make contributions into the Members’ Contribution Fund for the years of private, parochial or other school service under the following terms and conditions: 1. Contributions are calculated on the same basis as the member would have made contributions had the service been as a state employee or teacher in the State. The member’s earnings for the years of private or parochial teaching must be assumed to have been the same as the average salary for teachers in the State as determined by the Department of Education for each of the years when the private or parochial school teaching took place. 1. The payment may not be made until the member has accumulated at least 20 years of creditable service in the Retirement system as a member of the participating local district and must be made before the date any retirement benefit becomes effective for the member; 2. Interest at a rate, to be set by the Board, not to exceed regular interest by 5 or more percentage points is paid on the unpaid balance. Interest shall be computed from the end of the year when those contributions would have been made, if the service had been as a state employee or teacher in the State, to the date of payment. 2. Manner of Payment. The payment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.
4. Portability of Service. A member who elects under 5 M.R.S. §18253, sub-§1, paragraph E to include all or part of the creditable service and earnable compensation from a prior plan with service earned under The Plan may do so under the following terms and conditions: 1. Before any retirement benefit becomes effective for that member, the member must pay into the Members’ Contribution Fund an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the inclusion of the prior plan creditable service and earnable compensation with service earned under The Plan. 2. Manner of Payment. The payment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.
5. Back contributions for certain days off without pay. A member who elects under 5 M.R.S. §18305-C to include compensation that would have been paid for days off without pay in order to include those earnings in the calculation of the member’s average final compensation as provided in 5 M.R.S. §17001, sub-§4, paragraph A, may do so under the following terms and conditions: 1. Election. If the retirement system determines at the time a member retires that the member’s benefit would be increased as a result of the inclusion of compensation that would have been paid for days off without pay, the retirement system shall advise the member of that result and shall allow the member to elect to have that compensation included in the calculation of the member’s benefit and to make payments as set forth in subsection 2. 2. Payment. The amount that a member who makes the election permitted in subsection 1 must pay is the amount equal to the employee contribution that member would have made on compensation that would have been paid to that member on the days off without pay, plus interest at the same rate as

that required for repayment of withdrawn contributions pursuant to section 18304. If the member elects to make the payment, the retirement system shall withhold the required amount from the member’s first retirement benefit check.

• 1. Benefit calculation. If a member fails to make the election within 31 days of the notification provided under subsection 1, the retirement system shall calculate the member’s retirement benefit without inclusion of the compensation that would have been paid for the days off without pay.

1. Law enforcement service before becoming a member. A member who qualifies under Section 6, subsection 10 must make contributions into the Members’ Contribution Fund for the period of law enforcement service under the following terms and conditions: 1. Before any retirement benefit becomes effective for that member, the member must pay into the Members’ Contribution Fund an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the inclusion of the prior law enforcement service credit with service earned under The Plan. 2. Manner of Payment. The payment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.
2. Nonmilitary public employee of the United States Government service before becoming a member. A member who qualifies under Section 6, subsection 11 must make contributions into the Member’s Contribution Fund for the period of nonmilitary public employment with the United States Government under the following terms and conditions: 1. Before any retirement benefit becomes effective for that member, the member must pay into the Member’s Contribution Fund an amount that together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the inclusion of the prior nonmilitary public employment with the United States Government service credit with service earned under The Plan. 2. Manner of Payment. The payment must be made to the Retirement System consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.

Employer Contributions. Contributions by participating local districts whose employees are members under The Plan are subject to 5 M.R.S. §18303, except that contributions and pickup contributions are to be calculated according to Sections 7, 8, and 9, and the following:

1. Unpooled Unfunded Actuarial Liability Contribution. Each participating local district with employees who are members under The Plan shall make a contribution known as the "Unpooled Unfunded Actuarial Liability Contribution" based upon: 1. its Initial Unpooled Unfunded Actuarial Liability, which is the excess of projected liabilities allocated to future benefit payments to current recipients of benefits and to current members as of the date its employees begin participation under The Plan over the sum of the participating local district's assets on hand as of that date and its future employer and member normal contributions. The rate for this portion of Unpooled Unfunded Actuarial Liability Contribution shall be determined by a valuation made by the System's actuary for each participating local district with employees who are members under The Plan; and 2. any adjustments to the Initial Unpooled Unfunded Actuarial Liability attributable to that district separately. The rate for this portion of the Unpooled Unfunded Actuarial Liability Contribution shall be added to or subtracted from the rate determined under a. 3. if the calculation required by (1) or (2) above results in a credit balance, the balance may, at the discretion of the participating local district, be applied as an offset against the monthly contribution required in an amount no greater than the total amount of the monthly contribution against which the offset is applied.
2. Normal Contribution. Each participating local district with employees who are members under The Plan, along with those members pursuant to Sections 7, 8, and 9, shall make a contribution known as a "Normal Contribution" based upon the portion of projected liabilities attributable to service of all members under the several benefit plans under The Plan for the year following the valuation. The rate of this contribution shall be determined annually by a valuation made by the System's actuary based upon the membership data relating to all members under each benefit plan under The Plan and in accordance with Sections 7, 8, and 9.
3. Pooled Unfunded Actuarial Liability Contribution. Each participating local district with employees who are members under The Plan, along with those members pursuant to Sections 7, 8, and 9, shall make a contribution known as the "Pooled Unfunded Actuarial Liability Contribution" based upon the Pooled Unfunded Actuarial Liability. This liability is equal to the present value of all projected benefits for current and future members, including employer contributions related to military service credit under The Plan, less the present value of future member and employer normal contributions, the assets of The Plan and the present value of all Unpooled Unfunded Actuarial Liability contributions. This rate of this contribution shall be determined annually in accordance with Sections 7, 8, and 9.
4. Disability Benefit Contribution. Each participating local district with employees who are members under The Plan shall make a contribution known as a "disability benefit contribution" based upon the expected value of future disability benefits to be paid to those employees, and to employees who are participants in the defined contribution 401(a) plan under this chapter but who are not members under The Plan, as a result of disablements occurring during the year following the valuation date. The rate of this contribution shall be determined annually by a valuation made by the System's actuary based upon the membership data relating to all members under each benefit plan under The Plan and participants in the defined contribution 401(a) plan under this chapter who are not members under The Plan.
5. Death Benefit Contribution. Each participating local district with employees who are members under The Plan shall make a contribution known as a "death benefit contribution" based upon the expected value of future death benefits to be paid to beneficiaries of those employees and to beneficiaries of employees who are participants in the defined contribution plan under this chapter as a result of deaths occurring during the year following the valuation date. The rate of this contribution shall be determined annually by a valuation made by the System's actuary based upon the membership data relating to all members under each benefit plan under The Plan and participants in the defined contribution plan under this chapter.

SECTION 6. CREDITABLE SERVICE

Determination of Service Credits. The determination of service credits for members under The Plan is subject to Chapter 401 (94-411 CMR 401) of the rules of the Board.

Prior Service ; Service Before Effective Date of District’s Participation. Service credit for service as an employee of a local district before the beginning date of the participation of the

employees of a participating local district in the Retirement System shall be granted upon certification by the district, subject to limitations in the district's agreement as provided by Section 2, subsection 2, paragraph D and statutes and rules in effect at the time the service was rendered.

Former Member

1. Member who Terminated Service. Upon complete payment of the withdrawn contributions under Section 5, subsection 1, paragraph B, a member shall be granted service credit for the period of time for which the contributions have been repaid. Upon making partial payment of the withdrawn contributions under Section 5, the member shall be granted service credit on a pro rata basis in accordance with rules adopted by the Board.
2. Service Not under The Plan. Upon complete payment of the contributions under Section 5, subsection 1, paragraph C, a member shall be granted service credit for the period of time for which the contributions have been paid. Upon making partial payment of the contributions under Section 5, the member shall be granted service credit on a pro rata basis in accordance with rules adopted by the Board.
3. Contributions Withdrawn by Employees Not Covered by Social Security. The granting of creditable service upon repayment of contributions, under section 5, subsection 1, paragraph E, that were withdrawn by a member who is an employee of a participating local district that is not covered under a Social Security Section 218 agreement but that has a plan that meets the requirements of 5 M.R.S. §18252-B is subject to the provisions of 5 M.R.S. §18252-A as amended by PL 2021, c. 90.

Service in the Armed Forces. Service credit for service in the Armed Forces of the United States is governed as follows:

1. Service after Becoming a Member. A member is entitled to service credit for the period of time during which the member's membership is continued under Section 3, subsection 5 under the following terms and conditions. Except as provided in subparagraph 3, service credit under this subsection is limited to 5 years. 1. A member's separation from service in the Armed Forces of the United States must be under conditions other than dishonorable. 2. A member is not entitled to service credit for military leave if the member's return to membership service is delayed beyond 90 days after separation from the service in the Armed Forces, unless the delay is caused by an illness or disability incurred in the service in the Armed Forces. 3. A member may not receive service credit for military leave beyond the end of the period of first enlistment or induction or beyond 5 years from the date of original call to active duty in the Armed Forces, whichever is less, unless: 1. The member's return to active duty in the Armed Forces or the extension of the period of service beyond 5 years is required by some mandatory provision; and 2. The member presents proof of the return to or extension of service satisfactory to the Board.
2. Service before Becoming a Member. A member who served as a full-time active duty member of the Armed Forces of the United States before becoming a member of the Retirement System is entitled to service credit for the period of time the member served in the Armed Forces, under the following terms and conditions. Service credit under this subsection is limited to 4 years. 1. Except as provided in paragraph 6, on the date of retirement, the member must have at least 15 years of creditable service. 2. The member must have separated from the Armed Forces under conditions other than dishonorable. 3. Except as provided in subparagraph 4, the member must have begun membership before January 1, 1976. 4. Except as provided in paragraph 6, a member who served in the Armed Forces during any federally recognized period of conflict, as defined in 5 M.R.S. §18360(2)(E), is entitled to service credit under this paragraph. 5. Upon complete payment of the back contributions under Section 5, subsection 1, paragraph F, the member shall be granted service credit for the period of time for which the contributions have been made. Upon making partial payment of the back contributions under Section 5, the member shall be granted service credit on a pro rata basis in accordance with rules adopted by the board. 6. Alternative. A member who fails to meet one or more of the terms and conditions required under paragraphs 1, 3 and 4 may purchase service credit as provided in this paragraph. The member must have at least 5 years of creditable service and, before any retirement benefit becomes effective for that member, must pay into the Members’ Contribution Fund, an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service. Any member who purchases service credit under this paragraph who subsequently, without inclusion of the purchased service credit and prior to retirement, meets the terms and conditions of paragraphs 1, 2 and 4 is entitled to purchase the service credit under Section 5, subsection 1, paragraph F and to receive a refund of the amount paid under this paragraph that exceeds the cost to purchase the service under Section 5.

Out-of-state Service. For members who began membership before January 1, 1976, additional service credit shall be allowed for out-of-state service, subject to the following conditions.

1. 20 Years of Creditable Service. The member must have creditable service in the Retirement System of at least 20 years in the aggregate;
2. Last 10 Years in Maine; 10 Year Limit. The member's last 10 years of creditable service before the date of retirement must be in the State and no more than 10 years of service credit may be allowed for out-of-state service; and
3. Payment of Contributions. Upon complete payment of the back contributions under Section 5, subsection 1, paragraph H, subparagraph 2, the member shall be granted service credit for the period of time for which the contributions have been made. Upon making partial payment of the back contributions under Section 5,

subsection 1, paragraph H, subparagraph 2, the member shall be granted service credit on a pro rata basis in accordance with rules adopted by the board.

1. Alternative. If service credit for out-of-state service is not allowed under paragraph A and B, service credit for out-of-state service shall be allowed if the member, before any retirement benefit becomes effective for that member, pays into the Members' Contribution Fund, an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service. Payments must be made consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board. 1. Additional amounts paid under this subsection shall become a part of the member's accumulated contributions. 2. If any retirement benefit becomes effective before the completion of the payment under this subsection, the member is entitled to service credit for that portion of the additional creditable service that the total amount of payments actually made, plus regular interest on those payments to the date the retirement benefit becomes effective, bears to the actuarial equivalent of the total portion of the retirement benefit based on the additional creditable service.
2. Service Credit not to be Used in Another State. Any application for a retirement benefit for which out-of-state service credit is to be granted must be accompanied by a certified statement from the appropriate retirement system that the out-of-state service credit granted has not been or will not be used to obtain benefits in another state.

Disability Retirement Service Credit. A recipient of a disability retirement benefit shall receive service credit for the purpose of determining benefits under The Plan for the period of time following termination of service during which disability retirement benefits are being received under 5 M.R.S. Chapter 425, subchapter V, article 3-A.

Unused Sick Leave or Vacation Leave

1. Earnable Compensation. A member’s earnable compensation does not include payment for unused accumulated or accrued sick leave, unused vacation time, or a combination of both, or any other payment that is not compensation for actual services rendered or that is not paid at the time the actual services are rendered, except that for a member with at least 20 years of creditable service under The Plan at the effective date of the member’s retirement, and for a recipient of a disability retirement benefit, earnable compensation includes payment for unused accumulated or accrued sick leave, unused vacation time, or a combination of both, up to a maximum of 30 days, if paid upon the member’s last termination before the member applies for retirement benefits.
2. Service Credit. A member may not receive service credit for unused accumulated or accrued sick leave, unused vacation leave, or a combination of both, for which a member is credited on termination of service, but for which the member does not receive payment, except under the following conditions. 1. Leave, up to a lifetime maximum of 90 days, qualifies for service credit for a member with at least 20 years of creditable service under The Plan, before the application of this sub-paragraph, at the effective date of the member’s retirement. 2. Leave, up to a lifetime maximum of 90 days, qualifies for service credit for a recipient of a disability retirement benefit, at the effective date of the

member’s disability retirement.

• 1. Leave, including leave beyond 90 days, may qualify for service credit, up to the maximum number of days of leave, set by personnel rules or by contract, that a person is allowed to accumulate, if, the member, before any retirement benefit becomes effective for the member, pays into the Members' Contribution Fund, a single payment which is the actuarial equivalent, at the effective date of the member's retirement benefit, of the portion of the member's retirement benefit based on the additional creditable service beyond 90 days.

Teachers in Private, Parochial and Other Schools. A member who taught in a parochial school or in a public or private academy may purchase up to 10 years of service credit for that service under the following conditions.

1. The member must have taught in a school approved by the Department of Education or the education department of another state while holding an appropriate teaching certificate;
2. 20 Years of Creditable Service. The member must have 20 years of creditable service as a member of the participating local district;
3. Membership before January 1, 1976. The member must have begun membership before January 1, 1976;
4. Last 10 Years in Participating Local District. The member’s last 10 years of creditable service before the date of retirement must be as a member of the participating local district; and
5. Payment of Contributions. Upon complete payment of the back contributions under Section 5, subsection 1, paragraph K, subparagraph 2, the member shall be granted service credit for the period of time for which the contributions have been made. Upon making partial payment of the back contributions under Section 5, subsection 1, paragraph K, subparagraph 2, the member shall be granted service credit on a pro rata basis in accordance with rules adopted by the board.
6. Alternative. If service credit for private, parochial or other school service is not allowed under paragraphs B and C, additional service credit is allowed for any member who meets the requirements of paragraphs A and D, if the member, before any retirement benefit becomes effective for that member, pays into the Members’ Contribution Fund an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service. Payments must be made consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board. 1. Additional amounts paid under this subsection shall become a part of the member’s accumulated contributions. 2. If any retirement benefit becomes effective before the completion of the payment under this subsection, the member is entitled to service credit for that portion of the additional creditable service that the total amount of payments actually made, plus regular interest on those payments to the date the retirement

benefit becomes effective, bears to the actuarial equivalent of the total portion of the retirement benefit based on the additional creditable service.

Other Schools and Programs. A member who terminates service in the State and teaches under the Volunteers in Service to America Program, the Fulbright Exchange Program or the Peace Corps, foreign or domestic, or teaches children of United States Foreign Corps personnel outside the continental limits of the United States is entitled to service credit for that service under the following conditions.

1. 2 Year Limit. The service credit may not exceed 2 years.
2. Return to Active Service. The member must return to active service as a member of the retirement system within one year of the completion of the teaching outside of the State described in this section.
3. Payment of Contributions. The member, before any retirement benefit becomes effective for that member, must pay into the Members’ Contribution Fund an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service. Payments must be made consistent with Chapter 406 (94-411 CMR 406) of the rules of the Board.

Law enforcement service before becoming a member. A member who served as a full-time law enforcement officer with a federal, state, county or local law enforcement agency before becoming a member, and who did not decline membership under section 3, subsection 2, during the period of prior law enforcement service, is entitled under this subsection to purchase service credit for the period of time that the member served as a law enforcement officer under the following conditions:

1. 15 years of creditable service. The member must have at least 15 years of creditable service at the time of retirement.
2. 4 year limit. Service credit purchased under this subsection is limited to 4 years.
3. Service credit not to be used for other benefits. The member must provide a certified statement from the appropriate retirement system that the service credit to be granted has not been and will not be used to obtain other retirement benefits.
4. Payment of contributions. The member must complete payment of contributions as required by Section 5, subsection 1, paragraph M. 1. Additional amounts paid under this subsection shall become a part of the member’s accumulated contributions. 2. If any retirement benefit becomes effective before the completion of the payment under this subsection, the member is entitled to service credit for that portion of the additional creditable service that the total amount of payments actually made, plus regular interest on those payments to the date the retirement benefit becomes effective, bears to the actuarial equivalent of the total portion of the retirement benefit based on the additional creditable service.

Nonmilitary public employee of the United States Government service. A member who served as a nonmilitary public employee of the United States Government before becoming a member is entitled under this subsection to purchase service credit for the period of time that the member served as a nonmilitary public employee of the United States Government under the following conditions:

1. 5 year limit. Service credit purchased under this subsection is limited to 5 years.
2. Payment of contributions. The member must complete payment of contributions as required by Section 5, subsection 1, paragraph N. 1. Additional amounts paid under this subsection shall become a part of the member’s accumulated contributions. 2. If any retirement benefit becomes effective before the completion of payment under this subsection, the member is entitled to service credit for that portion of the additional creditable service that the total amount of payments actually made, plus regular interest on those payments to the date the retirement benefit becomes effective, bears to the actuarial equivalent of the total portion of the retirement benefit based on the additional creditable service.

SECTION 7. REGULAR SERVICE RETIREMENT BENEFIT PLANS

Payment of benefits to members under The Plan is subject to the provisions of 5 M.R.S. §§ 18403 – 18405-A, 18409 - 18413.

Regular Benefit Plan AC. Regular Benefit Plan AC may be elected by any participating local district or local district.

1. Contribution Rate. Subject to Section 15, subsection 1, and the rate caps under Section 9, employer and employee contributions shall be set annually by the Board based on the recommendations of the System’s actuary in accordance with the following: 1. The Plan’s unfunded actuarial liability as of June 30, 2018, shall be paid in an actuarially sound manner and allocated between the employer and employee in a ratio approved by the Board based on the recommendation of the Participating Local District Advisory Committee; 2. Any Plan unfunded actuarial liability created beginning July 1, 2018, shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee; 3. The normal cost shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee.; and 4. Rates shall reflect any differences in actuarial assumptions and experience and shall be based on whether the member is subject to paragraphs B or B-1.
2. Qualification for Benefit Prior to July 1, 2014. A member of The Plan prior to July 1, 2014 qualifies for a service retirement benefit under this paragraph when one of the following occurs: 1. The member is in service when reaching 60 years of age, or is in service after reaching 60 years of age, and has been in service for a minimum of one-year immediately before retirement or except as provided in sub- paragraph 4 has at least 10 years of creditable service, which may include creditable service as a member of the Legislative Retirement Program under 3 M.R.S. §701, sub-§8; 2. The member is not in service when reaching 60 years of age, and except as provided in sub-paragraph 4 has at least 10 years of creditable service, which may include creditable service as a member of the Legislative Retirement Program under 3 M.R.S. §701, sub-§8; or 3. The member has completed 25 or more years of creditable service, which may include, for the purpose of meeting eligibility requirements, creditable service as a member of the Legislative Retirement Program under 3 M.R.S.

§701, sub-§8.

• 1. The member has at least 5 years of creditable service, which, for the purpose of determining completion of the 5-year requirement, may include creditable service as a member of the Legislative Retirement Program, and: 1. Was in service on October 1, 1999; 2. Had left prior to October 1, 1999 with or without withdrawing contributions and on or after October 1, 1999 returned to service; or 3. Was first in service on or after October 1, 1999.

B-1. Qualification for Benefit after July 1, 2014. A member who was not covered by The Plan prior to July 1, 2014 qualifies for a service retirement benefit under this paragraph when one of the following occurs:

The member is in service when reaching 65 years of age, or is in service after reaching 65 years of age, and has been in service for a minimum of one year immediately before retirement or has at least 5 years of creditable service, which may include creditable service as a member of the Legislative Retirement Program under 3 M.R.S. §701, sub-§8;

The member is not in service when reaching 65 years of age and has at least

5 years of creditable service, which may include creditable service as a member of the Legislative Retirement Program under 3 M.R.S. §701, sub-§8; or

The member has completed 25 or more years of creditable service, which may include, for the purpose of meeting eligibility requirements, creditable service as a member of the Legislative Retirement Program under 3 M.R.S. §701, sub-§8.

1. Computation of Benefit - Retirement at Normal Retirement Age or Later. Subject to the requirements of Section 4, subsection 6, the total amount of the service retirement benefit for a member qualified under paragraph B, subparagraphs 1, 2 or 4 or under paragraph B-1, equals: 1. 1/50 of the member's average final compensation multiplied by the number of years of creditable service under The Plan; and 2. For members retiring prior to September 1, 2028, if the member had creditable service, with the member's current employer before that employer's employees were under The Plan, the benefit for that creditable service is calculated on the basis of: 1. 1/50 of the member's average final compensation multiplied by the number of years of creditable service, if, before being under The Plan, the service retirement benefit for that employer's employees was based upon the 1/50 formula; 2. 1/60 of the member's average final compensation multiplied by the number of years of creditable service, if, before being under The Plan, the service retirement benefit for that employer's employees was based upon the 1/60 formula;and 3. 1/70 of the member's average final compensation multiplied by the number of years of creditable service, if, before being under The Plan, the service retirement benefit for that employer's employees was based upon the 1/70 formula.

For members retiring on or after September 1, 2028, the benefit will be calculated as if the service had been under The Plan.

• 1. For members retiring prior to September 1, 2028, if the member had creditable service with an employer other than the member's current employer before becoming a member under The Plan for which the member's current employer has not accepted liability, and for which the member has not made the election under 5 M.R.S. §18253, sub-§1, paragraph E, the benefit for that creditable service is calculated on the basis of creditable service and earnable compensation with the previous employer and in accordance with the previous employer's regular service retirement plan immediately before the previous employer's employees became members under The Plan or the previous employer withdrew from the System. If the previous employer has neither begun participation in The Plan nor withdrawn from the System, the benefit is calculated on the basis of the previous employer's plan at the time of the member's retirement. For members retiring on or after September 1, 2028, the benefit will be calculated as if the service had been under The Plan. 2. For members retiring prior to September 1, 2028, if the member has prior service credit, the benefit for that service is calculated on the basis of the applicable formula of paragraph C (2) above, as adopted by the district for prior service credit. For members retiring on or after September 1, 2028 the benefit will be calculated as if the service had been under The Plan.

1. Computation of Benefit - Retirement before Normal Retirement Age - With Creditable Service of 25 Years or More. Subject to the requirements of Section 4, subsections 5 and 6, the amount of the service retirement benefit for a member who retires prior to normal retirement age shall be computed as follows: 1. The amount of the service retirement benefit for a member qualified under paragraph B, subparagraph 3, who has 20 or more years of creditable service under The Plan as of July 1, 2019, shall be computed in accordance with paragraph C, except that: 1. The amount arrived at under paragraph C shall be reduced by applying to that amount the percentage that a life annuity due at age 60 bears to the life annuity due at the age of retirement. 2. For the purpose of making the computation under division a, the Board-approved tables of annuities in effect at the date of the member's retirement shall be used. 2. The amount of the service retirement benefit for a member qualified under paragraph B-1, subparagraph 3, who, pursuant to Title 5, Section 18253, has 20 or more years of creditable service under The Plan as of July 1, 2019, shall be computed in accordance with paragraph C, except that the benefit is reduced by 6% for each year that the member’s age precedes 65 years of age. 3. The amount of the service retirement benefit for all other members shall be computed in accordance with paragraph C, except that the amount arrived at under paragraph C shall be reduced to reflect the full actuarial impact of the early retirement.
2. Cost of Living Adjustments. All benefits based upon creditable service under this service retirement benefit plan are subject to cost of living adjustments as provided by Section 9. Benefits based upon creditable service earned before a member was under The Plan will be subject to cost of living adjustments only if the employer's plan provided for cost of living adjustments.

Regular Benefit Plan AN. Regular Benefit Plan AN may be elected by any participating local district or local district.

This benefit plan is the same as Regular Benefit Plan AC, except that there is no provision for cost of living adjustments.

Regular Benefit Plan BC. Regular Benefit Plan BC may be elected by any participating local district or local district which covers its employees under the Federal Social Security program under a Section 218 Agreement. Any current employee who was a member under a plan which provided benefits under the 1/50 or 1/60 formula with a cost of living adjustment may elect to be under Regular Benefit Plan A and any current employee who was under a plan which provided benefits under the 1/50 or 1/60 or 1/70 formula without cost of living adjustments may elect to be under Regular Benefit Plan AN. Regular Benefit Plans AC and AN require that members make contributions at the rate as set forth in subsections 1 and 2. For the purposes of this subsection, "current employee" means a person whose employment with a participating local district began prior to the date on which participation in The Plan for that district's employees begins and who is a member as an employee of that district on that date.

1. Contribution Rate. Employer and employee contribution rates are set in the same manner and subject to the same requirements as Regular Benefit Plan AC.
2. Qualification for Benefit. The requirements for a member to qualify for a service retirement benefit under this paragraph are exactly the same as under Regular Benefit Plan AC - subsection 1, paragraphs B and B-1.
3. Computation of Benefit - Retirement at Normal Retirement Age or Later. Subject to the requirements of Section 4, subsection 6, the total amount of the service

retirement benefit for a member qualified as specified in subsection 1, paragraph B, subparagraph 1, 2 or 4 or under subsection 1, paragraph B-1 equals:

• 1. 1/100 of the member's average final compensation multiplied by the number of years of membership service under The Plan; and 2. For members retiring prior to September 1, 2028, if the member had creditable service, with the member's current employer before that employer's employees were under The Plan, the benefit for that creditable service is calculated on the basis of: 1. 1/50 of the member's average final compensation multiplied by the number of years of creditable service, if, before being under The Plan, the service retirement benefit for that employer's employees was based upon the 1/50 formula; 2. 1/60 of the member's average final compensation multiplied by the number of years of creditable service, if, before being under The Plan, the service retirement benefit for that employer's employees was based upon the 1/60 formula; and 3. 1/70 of the member's average final compensation multiplied by the number of years of creditable service, if, before being under The Plan, the service retirement benefit for that employer's employees was based upon the 1/70 formula.

For members retiring on or after September 1, 2028, the benefit will be calculated as if the service had been under Regular Benefit Plan AC.

• 1. For member retiring prior to September 1, 2028 if the member had creditable service with an employer other than the member's current employer before becoming a member under The Plan for which the member's current employer has not accepted liability, and for which the member has not made the election under 5 M.R.S. §18253,

sub-§1, paragraph E, the benefit for that creditable service is calculated on the basis of creditable service and earnable compensation with the previous employer and in accordance with the previous employer's regular service retirement plan immediately before the previous employer's employees became members under The Plan or the previous employer withdrew from the System. If the previous employer has neither begun participation in The Plan nor withdrawn from the System, the benefit is calculated on the basis of the previous employer's plan at the time of the member's retirement. For members retiring on or after September 1, 2028, the benefit will be calculated as if the service had been under Regular Benefit Plan AC.

• 1. For members retiring prior to September 1, 2028, if the member has prior service credit, the benefit for that service is calculated on the basis of the applicable formula of paragraph C (2) above, as adopted by the district for prior service credit. For members retiring on or after September 1, 2028, the benefit will be calculated as if the service had been under Regular Benefit Plan AC.

1. Computation of Benefit - Retirement before Normal Retirement Age - With Creditable Service of 25 Years or More. Subject to the requirements of Section 4, subsections 5 and 6, the amount of the service retirement benefit for a member who retires prior to normal retirement age shall be computed as follows: 1. The amount of the service retirement benefit for a member qualified as specified in subsection 1, paragraph B, subparagraph 3, who has 20 or more years of creditable service under The Plan as of July 1, 2019, shall be computed in accordance with paragraph C, except that: 1. The amount arrived at under paragraph C shall be reduced by applying to that amount the percentage that a life annuity due at age 60 bears to the life annuity due at the age of retirement. 2. For the purpose of making the computation under subparagraph 1, the board-approved tables of annuities in effect at the date of the member's retirement shall be used. 2. The amount of the service retirement benefit for a member qualified under subsection 1, paragraph B-1, subparagraph 3, who, pursuant to Title 5, Section 18253, has 20 or more years of creditable service under The Plan as of July 1, 2019, shall be computed in accordance with subsection 1, paragraph C, except that the benefit is reduced by 6% for each year that the member’s age precedes 65 years of age. 3. The amount of the service retirement benefit for all other members shall be computed in accordance with paragraph C, except that the amount arrived at under Paragraph C shall be reduced to reflect the full actuarial impact of the early retirement.
2. Cost of Living Adjustments. All benefits based upon creditable service under this service retirement benefit plan are subject to cost of living adjustments as provided by Section 9. Benefits based upon creditable service earned before a member was under The Plan will be subject to cost of living adjustments only if the employer's plan provided for cost of living adjustments.

Minimum Benefit. Any member under The Plan who has 10 or more years of creditable service at retirement is entitled to a minimum service retirement benefit of $100 per month.

SECTION 8. SPECIAL SERVICE RETIREMENT BENEFIT PLANS

Payment of benefits to members under The Plan is subject to the provisions of 5 M.R.S. §§ 18403 – 18405-A, 18409-18413. If, upon electing to participate in The Plan, a participating local district elects a special benefit plan other than the special benefit plan that a member is then covered under, the member may elect to continue under the special benefit plan under which the member is then covered. The member's election must be made as of the date on which the district's participation in The Plan begins and may not be changed thereafter. Members having membership service under special plans prior to July 1, 1977, are entitled to the alternative benefit computation based on that service in accordance with the applicable provision of 5 M.R.S. §18453. A member who does not qualify to retire under a special service retirement plan may retire under a regular service retirement plan at any time after the member qualifies under Section 7. The service retirement benefit for all service is computed as provided in Section 7.

Special Benefit Plan 1C. Special Benefit Plan 1C may be elected by any participating local district or local district for police officers, firefighters, sheriffs, full-time deputy sheriffs, county corrections employees who are employed at a county jail and whose duties include contact with prisoners or juvenile detainees, and emergency medical services persons as

defined in Title 32 M.R.S. §83, sub-§12, including but not limited to first responders, emergency medical technicians, advanced emergency medical technicians and paramedics.

1. Contribution Rate. Subject to Section 15, subsection 1, and to the rate caps under Section 9, employer and employee contributions shall be set annually by the Board based on the recommendations of the System’s actuary in accordance with the following: 1. The Plan’s unfunded actuarial liability as of June 30, 2018, shall be paid in an actuarially sound manner and allocated between the employer and employee in a ratio approved by the Board based on the recommendation of the Participating Local District Advisory Committee; 2. Any Plan unfunded actuarial liability created beginning July 1, 2018, shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee; and 3. The normal cost shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee.

Qualification for Benefit

• 1. A member qualifies for a service retirement benefit under this subsection when the member has completed 20 years of creditable service as an employee in one or more of the types of employment specified in this subsection and specified by the district as covered under this plan. If the member had creditable service under a special plan with the member's current employer before that employer's employees became members under The Plan, that creditable service is counted when determining the member's qualification for this benefit; 2. A member who has accrued service credits under a regular service retirement plan before accruing service under this plan, and for whom the regular plan service credits are considered service under The Plan as provided by Section 4, subsection 1, may use those service credits toward qualifying to retire under this plan at the rate of one year of special plan service credit for each two years of regular plan service credit; and 3. Except for employees who are entitled, under the current employer's plan in effect before the employer's employees become members under The Plan, to use military service credits to qualify for service retirement benefits, service credits for service in the Armed Forces before becoming a member, under Section 6, subsection 4, paragraph B, apply only to additional retirement benefits under this plan and the service credits do not apply to service requirements to qualify for retirement benefits. 4. Service credits for law enforcement service before becoming a member, under Section 6, subsection 10, apply only to additional retirement benefits under this plan and the service credits do not apply to service requirements to qualify for retirement benefits.

1. Computation of Benefit. Subject to the requirements of Section 4, subsections 5

and 6, the total amount of the service retirement benefit for a member qualified under

paragraph B, equals 1/2 of the member's average final compensation and, subject to the limitations of subsection J, an additional 2% of the member's average final compensation for each year of creditable service not included in determining qualification under paragraph B.

• 1. If the member had creditable service under a special plan, with the member's current employer, before that employer's employees became members under The Plan, that creditable service is used when calculating the benefit under this paragraph. 2. For members retiring prior to September 1, 2028, if the member had creditable service with an employer other than the member's current employer before becoming a member under The Plan for which the member's current employer has not accepted liability, and for which the member has not made the election under 5 M.R.S. §18253,

sub-§1, paragraph E, the benefit for that creditable service is calculated on the basis of creditable service and earnable compensation with the previous employer and in accordance with the previous employer's regular service retirement plan immediately before the previous employer's employees became members under The Plan or the previous employer withdrew from the System. If the previous employer has neither begun participation in The Plan nor withdrawn from the System, the benefit is calculated on the basis of the previous employer's plan at the time of the member's retirement. For members retiring on after September 1, 2028, credible service under this subparagraph is used when calculating the benefit under this paragraph.

1. Cost of Living Adjustments. All benefits based upon creditable service under this service retirement benefit plan are subject to cost of living adjustments as provided by Section 9. Benefits based upon creditable service earned before a member was under The Plan will be subject to cost of living adjustments only if the employer's plan provided for cost of living adjustments.

Special Benefit Plan 1N. Special Benefit Plan 1N may be elected by any participating local district or local district.

This benefit plan is identical to Special Benefit Plan 1C, except that there is no provision for cost of living adjustments.

Special Benefit Plan 2C. Special Benefit Plan 2C may be elected by any participating local district or local district for police officers, firefighters, sheriffs, full-time deputy sheriffs, county corrections employees who are employed at a county jail and whose duties include contact with prisoners or juvenile detainees, emergency medical services persons as defined in Title 32 M.R.S. §83, sub-§12, including but not limited to first responders, emergency medical technicians, advanced emergency medical technicians and paramedics, and dispatchers as defined in 5 M.R.S. §18313, sub-§1. A district may also elect this plan for all of its employees.

1. Contribution Rate. Subject to Section 15, subsection 1, and to the rate caps under Section 9, employer and employee contributions shall be set annually by the Board based on the recommendations of the System’s actuary in accordance with the following: 1. The Plan’s unfunded actuarial liability as of June 30, 2018, shall be paid in an actuarially sound manner and allocated between the employer and employee in a ratio approved by the Board based on the recommendation of the Participating Local District Advisory Committee; 2. Any Plan unfunded actuarial liability created beginning July 1, 2018, shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee; and 3. The normal cost shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee.

Qualification for Benefit

• 1. A member qualifies for a service retirement benefit under this subsection when the member has completed 25 years of creditable service as an employee in one or more of the types of employment specified in this subsection and specified by the district as covered under this plan. If the member had creditable service under a special plan with the member's current employer before that employer's employees became members under The Plan, that creditable service is counted when determining the member's qualification for this benefit; and 2. A member who has accrued service credits under a regular service retirement plan before accruing service under this plan, and for whom the regular plan service credits are considered service under The Plan as provided by Section 4, subsection 1, may use those service credits toward qualifying to retire under this plan at the rate of two years of special plan service credit for each three years of regular plan service credit.

1. Computation of Benefit. Subject to the requirements of Section 4, subsections 5

and 6, the total amount of the service retirement benefit for a member qualified under paragraph 2, equals 1/2 of the member's average final compensation and, subject to the limitations of subsection J, an additional 2% of the member's average final compensation for each year of creditable service not included in determining qualification under paragraph B.

• 1. If the member had creditable service under a special plan, with the member's current employer, before that employer's employees became members under The Plan, that creditable service is used when calculating the benefit under this paragraph. 2. For members retiring prior to September 1, 2028, if the member had creditable service with an employer other than the member's current employer before becoming a member under The Plan for which the member's current employer has not accepted liability, and for which the member has not made the election under 5 M.R.S. §18253,

sub-§1, paragraph E, the benefit for that creditable service is calculated on the basis of creditable service and earnable compensation with the previous employer and in accordance with the previous employer's regular service retirement plan immediately before the previous employer's employees became members under The Plan or the previous employer withdrew from the System. If the previous employer has neither begun participation in The Plan nor withdrawn from the System, the benefit is calculated on the basis of the previous employer's plan at the time of the member's retirement. For members retiring on or after September 1, 2028, credible service under this subparagraph is used when calculating the benefit under this paragraph.

1. Cost of Living Adjustments. All benefits based upon creditable service under this service retirement benefit plan are subject to cost of living adjustments as provided

by Section 9. Benefits based upon creditable service earned before a member was under The Plan will be subject to cost of living adjustments only if the employer's plan provided for cost of living adjustments.

Special Benefit Plan 2N. Special Benefit Plan 2N may be elected by any participating local district or local district.

This benefit plan is identical to Special Benefit Plan 2C, except that there is no provision for cost of living adjustments.

Special Benefit Plan 3C. Special Benefit Plan 3C may be elected by any participating local district or local district for police officers, firefighters, sheriffs, full-time deputy sheriffs, county corrections employees who are employed at a county jail and whose duties include contact with prisoners or juvenile detainees, emergency medical services persons as defined in Title 32 M.R.S. §83, sub-§12, including but not limited to first responders, emergency medical technicians, advanced emergency medical technicians and paramedics, and dispatchers as defined in 5 M.R.S. §18313, sub-§1.

1. Contribution Rate. The contribution rate for members under Special Benefit Plan 3C is as set out below until the completion of 25 years of creditable service under this special benefit plan, after which the members contribute at the same rate of earnable compensation as paid by members who contribute under Regular Plan AC as set forth in Section 7, subsection 1, paragraph A. Subject to Section 15, subsection 1, and to the rate caps under Section 9, employer and employee contributions shall be set annually by the Board based on the recommendations of the System’s actuary in accordance with the following: 1. The Plan’s unfunded actuarial liability as of June 30, 2018, shall be paid in an actuarially sound manner and allocated between the employer and employee in a ratio approved by the Board based on the recommendation of the Participating Local District Advisory Committee; 2. Any Plan unfunded actuarial liability created beginning July 1, 2018, shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee; and 3. The normal cost shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee.

Qualification for Benefit

• 1. A member qualifies for a service retirement benefit under this subsection when the member has completed 25 years of creditable service as an employee in one or more of the types of employment specified in this subsection and specified by the district as covered under this plan. If the member had creditable service under a special plan with the member's current employer before that employer's employees became members under The Plan, that creditable service is counted when determining the member's qualification for this benefit; and 2. A member who has accrued service credits under a regular service retirement plan before accruing service under this plan, and for whom the regular plan service credits are considered service under The Plan as

provided by Section 4, subsection 1, may use those service credits toward qualifying to retire under this plan at the rate of two years of special plan service credit for each three years of regular plan service credit.

1. Computation of Benefit. Subject to the requirements of Section 4, subsections 5 and 6, the total amount of the service retirement benefit for a member qualified under paragraph 2, equals 2/3 of the member's average final compensation and, subject to the limitations of subsection J, an additional 2% of the member's average final compensation for each year of creditable service not included in determining qualification under paragraph B. 1. If the member had creditable service under a special plan, with the member's current employer, before that employer's employees became members under The Plan, that creditable service is used when calculating the benefit under this paragraph. 2. For members retiring prior to September 1, 2028, if the member had creditable service with an employer other than the member's current employer before becoming a member under The Plan for which the member's current employer has not accepted liability, and for which the member has not made the election under 5 M.R.S. §18253,

sub-§1, paragraph E, the benefit for that creditable service is calculated on the basis of creditable service and earnable compensation with the previous employer and in accordance with the previous employer's regular service retirement plan immediately before the previous employer's employees became members under The Plan or the previous employer withdrew from the System. If the previous employer has neither begun participation in The Plan nor withdrawn from the System, the benefit is calculated on the basis of the previous employer's plan at the time of the member's retirement. For members retiring on or after September 1, 2028, credible service under this subparagraph is used when calculating the benefit under this paragraph.

1. Cost of Living Adjustments. All benefits based upon creditable service under this service retirement benefit plan are subject to cost of living adjustments as provided by Section 9. Benefits based upon creditable service earned before a member was under The Plan will be subject to cost of living adjustments only if the employer's plan provided for cost of living adjustments.

Special Benefit Plan 3N. Special Benefit Plan 3N may be elected by any participating local district or local district.

This benefit plan is identical to Special Benefit Plan 3C, except that there is no provision for cost of living adjustments.

Special Benefit Plan 4C. Special Benefit Plan 4C may be elected by any participating local district or local district for police officers, firefighters, sheriffs, full-time deputy sheriffs, county corrections employees who are employed at a county jail and whose duties include contact with prisoners or juvenile detainees, emergency medical services persons as defined in Title 32 M.R.S. §83, sub-§12, including but not limited to first responders, emergency medical technicians, advanced emergency medical technicians and paramedics, and dispatchers as defined in 5 M.R.S. §18313, sub-§1.

1. Contribution Rate. The contribution rate for members under Special Benefit Plan 4C is as set out below until the completion of 25 years of creditable service under this special benefit plan, after which the members contribute at the same rate of earnable compensation as paid by members who contribute under Regular Plan AC

as set forth in Section 7, subsection 1, paragraph A. Subject to Section 15, subsection 1, and to the rate caps under Section 9, employer and employee contributions shall be set annually by the Board based on the recommendations of the System’s actuary in accordance with the following:

• 1. The Plan’s unfunded actuarial liability as of June 30, 2018, shall be paid in an actuarially sound manner and allocated between the employer and employee in a ratio approved by the Board based on the recommendation of the Participating Local District Advisory Committee; 2. Any Plan unfunded actuarial liability created beginning July 1, 2018, shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee; and 3. The normal cost shall be paid through employer and employee contributions allocated 58% to the employer and 42% to the employee.

Qualification for Benefit

• 1. A member qualifies for a service retirement benefit under this subsection when the member has completed 25 years of creditable service as an employee in one or more of the types of employment specified in this subsection and specified by the district as covered under this plan. If the member had creditable service under a special plan with the member's current employer before that employer's employees became members under The Plan, that creditable service is counted when determining the member's qualification for this benefit; and 2. A member who has accrued service credits under a regular service retirement plan before accruing service under this plan, and for whom the regular plan service credits are considered service under The Plan as provided by Section 4, subsection 1, may use those service credits toward qualifying to retire under this plan at the rate of two years of special plan service credit for each three years of regular plan service credit.

1. Computation of Benefit. Subject to the requirements of Section 4, subsections 5 and 6, the total amount of the service retirement benefit for a member qualified under paragraph B, equals: 1. If the member retires after reaching age 55, 1/50 of the member's average final compensation multiplied by the number of years of creditable service; 2. If the member retires before reaching age 55, 1/50 of the member's average final compensation multiplied by the number of years of creditable service reduced as follows: 1. For a member who was covered by The Plan prior to July 1, 2014, who has 20 or more years of creditable service under The Plan as of July 1, 2019, the benefit is reduced by applying to that amount the percentage that a life annuity due at age 55 bears to the life annuity due at the age of retirement. 2. For a member who was not covered by The Plan prior to July 1, 2014, but who, pursuant to Title 5, Section 18253, has 20 or more years of creditable service under The Plan as of July 1, 2019, the benefit is reduced by 6% for each year that the member’s age precedes 55 years of age. 3. For all other members, the benefit is reduced to reflect the full actuarial impact of the early retirement. 3. If the member had creditable service under a special plan, with the member's current employer, before that employer's employees became members under The Plan, that creditable service is used when calculating the benefit under this paragraph. 4. For members retiring prior to September 1, 2028, if the member had creditable service with an employer other than the member's current employer before becoming a member under The Plan for which the member's current employer has not accepted liability, and for which the member has not made the election under 5 M.R.S. §18253,

sub-§1, paragraph E, the benefit for that creditable service is calculated on the basis of creditable service and earnable compensation with the previous employer and in accordance with the previous employer's regular service retirement plan immediately before the previous employer's employees became members under The Plan or the previous employer withdrew from the System. If the previous employer has neither begun participation in The Plan nor withdrawn from the System, the benefit is calculated on the basis of the previous employer's plan at the time of the member's retirement. For members retiring on or after September 1, 2028, credible service under this subparagraph is used when calculating the benefit under this paragraph.

1. Cost of Living Adjustments. All benefits based upon creditable service under this service retirement benefit plan are subject to cost of living adjustments as provided by Section 9. Benefits based upon creditable service earned before a member was under The Plan will be subject to cost of living adjustments only if the employer's plan provided for cost of living adjustments.

Special Benefit Plan 4N. Special Benefit Plan 4N may be elected by any participating local district or local district prior to February 1, 2024.

This benefit plan is identical to Special Benefit Plan 4C, except that there is no provision for cost of living adjustments.

Transfer from Special Plan Position to Non-Special Plan Position Due to Disability. A member who has not completed the service requirements for retirement under a special service retirement benefit plan, upon becoming disabled as defined in section 18521, and

upon becoming reemployed in a position not under a special service retirement benefit plan shall upon retirement receive retirement benefits as follows:

1. The part of the member's service retirement based upon membership service before becoming disabled shall be computed according to the formula for computing benefits under the member's previous special plan.
2. The part of the member's service retirement based upon membership service after becoming reemployed in a position not under a special plan shall be computed according to the formula for computing benefits under the member's previous special plan.
3. If the member is found to be no longer disabled, as defined in section 18521, the member may: 1. Return to a position in the member's previous special plan; or 2. Remain in the position which is not under a special plan and have the part of the member's service retirement benefit based upon post-disability service computed in accordance with the applicable regular service retirement benefit plan under Section 7.
4. The executive director may require that a member subject to this subsection submit records and undergo medical examinations or tests to determine the member's disability for purposes of paragraph C. 1. If the member refuses to submit records or undergo the examination or tests under this paragraph, the member's retirement benefit shall be based upon the applicable regular service retirement benefit plan under Section 7 until the member withdraws the refusal. 2. If the member's refusal under subparagraph 1 continues for one year, all the member's rights to any further benefit under this subsection shall cease.

Additional 2% Benefit. For members retiring prior to September 1, 2028, the additional 2% of average final compensation benefit provided to members under the special service retirement plans in this section is applicable only to service credits earned with relation to service rendered after a member becomes a member under The Plan. A member is also entitled to this benefit for service rendered before becoming a member under The Plan to the extent that the member was entitled to the benefit under the member's current employer's retirement plan that was in effect immediately before the employer's employees became members under The Plan. For members retiring on or after September 1, 2028, the benefit will be calculated as if the service had been under The Plan.

SECTION 9. COST OF LIVING ADJUSTMENTS; CONTRIBUTION CAPS

Cost of Living Adjustments. Subject to subsections 2, 3, 4 and 5, the cost-of-living adjustment shall be determined as follows.

1. Except as provided in subsections 2, 3 and 4, whenever there is a percentage increase in the Consumer Price Index from July 1 of the previous year to June 30 of the current year, the Board shall automatically make an equal percentage increase in retirement benefits, beginning in September, up to a maximum annual increase of 2.5%.
2. If there is a percentage decrease in the Consumer Price Index from July 1st to June 30th, the Board shall set the percentage change at 0% for that September. The adjustment for the following year must be set based on the actuarially compounded Consumer Price Index for both years in a cost-neutral manner. If the Consumer Price Index in the subsequent year or years is not sufficient to allow for the adjustment to be cost-neutral for the 2 years, then the adjustment needed for cost-neutrality must continue to be applied to following years until such time as the cost-neutrality requirement is met.
3. The Board shall determine the costs of the adjustments under this Section and shall include those costs in the annual valuation.
4. Cost-of-living adjustments under this Section shall be applied to the retirement benefits of retirees as follows: 1. For retirees who retire prior to September 1, 2019, a cost-of-living adjustment is applied if the retiree has been retired for at least 12 months before the date that the adjustment becomes payable. 2. For retirees who retire on or after September 1, 2019, a cost-of-living adjustment is applied if the retiree has been retired for at least 24 months before the date that the adjustment becomes payable. Beneficiaries of deceased retirees shall be eligible for the cost-of-living adjustment at the same time the deceased retiree would have become eligible.

Contribution Caps. The employer and employee contribution rates, as calculated in the aggregate across all benefit plans in The Plan, are capped at 12.5% and 9%, respectively. If the rates calculated by the System’s actuary would exceed the caps for a particular year, the following shall occur:

1. The aggregated employer and employee rates will be reduced to the cap amounts, and the Board will set individual benefit plan rates based on the System’s actuary’s recommendation for allocating the reductions.
2. The cost of living adjustment calculated under subsection 1 shall be reduced to maintain cost-neutrality, but not below zero. If the reduction otherwise would have been below zero, then an adjustment will be applied to contribution rates, up to the caps set forth in this subsection, and the cost of living adjustment, but not below zero, in following years until such time as cost-neutrality is achieved.

Notwithstanding subsection 1, paragraph A, the cost-of-living adjustment for the period from September 1, 2021 through August 31, 2022 shall be 3.5%.

Notwithstanding subsection 1, paragraph A, the cost-of-living adjustment for the period from September 1, 2022 through August 31, 2023 shall be 3.5%.

In addition to the cost-of-living adjustment under subsection 1, paragraph A, a one-time noncumulative cost-of-living adjustment payment equal to 0.5% of retirement benefits will be paid to those eligible for a cost-of-living adjustment for the period from September 1, 2023 through August 31, 2024.

SECTION 10. DISABILITY BENEFITS

Members of The Plan. Disability retirement benefits for members under The Plan are subject to 5 M.R.S., Chapter 425, subchapter V, Benefits , Article 3-A, Disability Retirement Benefits After September 30, 1989 , as amended by PL 2025, chapters 221 and 270, except section

Election Regarding Age-limit or No-age-limit Disability. The election made by each member under PL 1991, c. 887 whether to be covered under age-limit or no-age-limit

disability remains in effect after a member's participation in The Plan begins. Depending upon a member's election, the member is covered under the age-limit or no-age-limit version of the disability plan specified in this Section.

Current Recipients of Disability Benefits. After having begun to participate in The Plan,

a participating local district which before participating in The Plan did not have as part of its plan 5 M.R.S., Chapter 425, subchapter V, Benefits , Article 3-A, Disability Retirement Benefits After September 30, 1989 , may elect to adopt 5 M.R.S. §18534, thereby allowing its former employees who are recipients of disability retirement benefits under prior law the option of being governed by disability retirement provisions applicable to members under The Plan. Any former employee of a district which adopts §18534 who is a recipient of a disability retirement benefit under 5 M.R.S., Article 3, as in effect immediately before October 1, 1989, or under section 1122 of the former retirement system law, as in effect immediately before July 1, 1977, may elect to be governed by 5 M.R.S., Chapter 425, subchapter V, Benefits , Article 3-A, by making written application to the executive director within 6 months after adoption of this provision by the participating local district. If the disability retirement benefit recipient makes the election, Article 3-A shall apply from the date of the recipient's original eligibility for disability retirement, but any increase in benefits may only be granted from the date of election by the recipient. The district's adoption and the recipient's election are irrevocable. The additional liability resulting from the adoption of this provision will be included in the district's Additional Unpooled Unfunded Actuarial Liability.

SECTION 11. ORDINARY DEATH BENEFITS

Ordinary death benefits for members under The Plan are subject to 5 M.R.S., Chapter 425, subchapter V, Benefits , Article 4, Ordinary Death Benefits .

SECTION 12. ACCIDENTAL DEATH BENEFITS

Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

1. Professional firefighter. “Professional firefighter” means an employee of a municipal fire department who is a member of the Participating Local District Retirement Program or who is a participating member under chapter 425 and who aids in the extinguishment of fires, whether or not the employee has other administrative duties.
2. Qualifying member. “Qualifying member” means: 1. A member who dies as a result of an injury arising out of and in the course of employment as an employee; 2. After October 31, 2004, an active member who is a professional firefighter who dies as a result of an injury or disease as described in Title 39-A, section 328 if the injury or disease that causes the death is the result of a condition that develops within 30 days of the active member’s participating in firefighting or training or a drill that involves firefighting. If the professional firefighter dies after 30 days but within 6 months of participating in firefighting or training or a drill that involves firefighting, there is a rebuttable

presumption that the death is the result of an injury arising out of and in the course of employment as a professional firefighter; or

• 1. A former member receiving a disability retirement benefit who dies as a result of an injury arising out of and in the course of employment as an employee.

Qualification for Benefit. The beneficiary of a qualifying member shall receive a benefit in accordance with section 18603.

Computation of Benefit. Benefits under this section are determined as follows:

1. Surviving spouse; no dependent children. If the qualifying member is survived by a spouse and no dependent child, the surviving spouse shall be paid 2/3 of the average final compensation of the qualifying member.
2. Surviving spouse having care of dependent children. If the qualifying member is survived by a spouse who has the care of the dependent child or dependent children of the qualifying member, the surviving spouse shall be paid an annual sum equal to the average final compensation of the qualifying member.
3. Surviving spouse not having care of dependent children. If the qualifying member is survived by a spouse who does not have the care of the dependent child or dependent children of the qualifying member, the surviving spouse shall share with the dependent child or dependent children an annual sum equal to the average final compensation of the qualifying member, the benefit to be divided equally among the surviving spouse and the dependent child or dependent children.
4. No surviving spouse. If no spouse survives the qualifying member, the dependent child or dependent children shall be paid an annual sum equal to the average final compensation of the qualifying member.

Method of Payment. All benefits paid under this section shall be paid in equal monthly installments beginning the first month after the death of the qualifying member.

Adjustment of Benefits. Benefits under this section are subject to the following adjustments:

1. Cessation of eligibility. When a person sharing benefits under section 18603 ceases to be eligible to receive benefits, the subsequent benefits of the remaining beneficiaries shall be recalculated as if the remaining beneficiaries had been the only beneficiaries to survive the qualifying member.
2. Workers’ compensation or similar law. The amount payable under this section must be reduced by any amount received by the surviving spouse and dependent child or dependent children under former Title 39, the Workers’ Compensation Act or Title 39-A, Part 1, the Maine Workers’ Compensation Act of 1992 , or a similar law. 1. Lump-sum settlements of benefits that would reduce the accidental death benefits under this subsection must be prorated on a monthly basis in an equitable manner prescribed by the board. 2. The prorated lump-sum settlement amounts must reduce the accidental death benefits payable monthly under this section.
3. Cost-of-living adjustments. Benefits under this section are subject to adjustment as provided in section 9.

Termination of Benefits. The benefits under this section shall be paid to:

1. Surviving spouse. The surviving spouse until the spouse dies; and
2. Dependent children. The dependent child or dependent children until they die or until they no longer meet the definition of “dependent child” under section 17001, subsection 12.

SECTION 13. DEFINED CONTRIBUTION/DEFERRED COMPENSATION PLANS

Defined Contribution/Deferred Compensation Plans. A participating local district may provide for the participation of its employees in a defined contribution and/or deferred compensation plan or plans for which the System is The Plan Sponsor. To provide for its employees’ participation, the participating local district employer must comply with the procedure for adoption set out in paragraph 6.

District is Employer. For all purposes related to such a plan or plans, the participating local district is the employer of its employees who participate in the plan or plans.

Federal Law Requirements. The plan or plans for which the System is Plan Sponsor must meet all applicable federal law requirements.

Terms and Requirements of Plan. The rights, obligations, conditions and terms of each plan or plans for which the System is Plan Sponsor are those provided in the relevant Plan Document, as revised or amended from time to time.

5 Plan under 5 MRSA Section 18252-B. Adoption of a plan or plans under this section does not by itself satisfy the requirements of 5 M.R.S. §18252-B. A participating local district that intends a plan or plans that it adopts under this section to comply with 5 M.R.S. §18252-B must also meet that section’s requirements.

Procedure for Adoption

1. Adoption Agreement. A participating local district that acts to adopt a plan or plans under this section must complete the relevant Adoption Agreement or Agreements in a form provided or authorized by the System. An Adoption Agreement constitutes documentation of the participating local district’s decision to adopt the plan to which the Agreement applies and signifies its understanding and acceptance of the provisions of the plan as set out in The Plan Document.
2. 401(a) Plan: Contribution Rates. In the case of a plan established in accordance with the requirements of Section 401(a) of the United States Internal Revenue Code of 1986, as amended, 1. the Adoption Agreement must specify the required employee contribution as established by the participating local district employer and the employer contribution, if any; and 2. the participating local district may change the amount of the required employee contribution annually, effective July 1 immediately following its decision to change the amount. The participating local district must document the change by amending its Adoption Agreement to state the new required employee contribution amount. An employee already participating in the

district’s 401(a) plan at the time the required employee contribution amount is changed must change to the new required contribution amount.

Disability Retirement Benefits: Participants in a 401(a) Plan who are Not Members under The Plan

1. Applicability. Employees who are participants in a 401(a) plan under this section and who are not members under The Plan are covered in the event of disability as set out in paragraph B.
2. Disability Retirement Program. The disability retirement program established under this paragraph is that established by section18521 et seq . and implemented by the System’s related rules and policies, including but not limited to the disability application, determination and review processes, and standards for benefit eligibility and standards for continuation of benefits. 1. Title 5 M.R.S. §18524, sub-§2, applies to an employee with fewer than 5 years of participation in the 401(a) plan. 2. Except as provided in subparagraph 3, the amount of the disability retirement benefit is 60% of the participant’s annual compensation being paid at the time the participant became disabled, subject to adjustment as provided by 5 M.R.S. §18407 and this chapter. 3. A participant who is found eligible for a disability retirement benefit and who terminates employment may elect to withdraw the balance of the

participant’s 401(a) account. If such a withdrawal includes employer contributions made on behalf of the participant, the disability retirement benefit will be actuarially adjusted so that the participant receives a disability retirement benefit of not more than the amount specified in subparagraph 2.

• 1. Benefits cease if the participant is found no longer eligible under the applicable statute, or on the date that the participant is required to receive a Required Minimum Distribution under federal law, whichever is earlier.

SECTION 14. RETIRING AND RETURNING TO WORK

If a person who is a recipient of a service retirement benefit under The Plan returns to employment by a participating local district of The Plan in a position for which membership would be mandatory or optional for a new hire, the person continues to receive the service retirement benefit and does not re- enter The Plan as a member. During the period that a retiree is returned to employment, contributions must be remitted to the System by the participating local district in the amount of the greater of (i) 5% of the person’s earnable compensation, or (ii) the equivalent of employer and employee unfunded actuarial liability contributions at the aggregate rate on the person’s earnable compensation. For

purposes of this section, earnable compensation does not include Workers’ Compensation earnings paid to the person.

SECTION 15. TRANSITION

Rates. Employer and employee rates for July 1, 2018, through June 30, 2019, shall be the rates set under this Rule prior to the amendment effective July 1, 2018. The transition from those rates to the rates calculated pursuant to Sections 7 and 8 shall be accomplished by smoothing in the new rates over an actuarially sound period.

Unused Sick Leave or Vacation Leave. Section 6, subsection 7, applies to those with a retirement effectiveness date on or after August 1, 2019.

Retiring and Returning to Work. Section 14 does not apply to a retiree employed by a participating local district on October 1, 2018, until the earlier of termination of employment or June 30, 2021.

Membership Election. The one-time election to join The Plan by November 1, 2021 under PL 2021, c. 286, § 6 applies only to employees of participating local districts who specifically adopt that provision in their participation agreement prior to November 1, 2021, or at the next meeting of the participating local district’s executive or legislative body, whichever is later. For participating local districts adopting the provision on or after November 1, 2021, the one- time election date shall be such later date stated in the amended participation agreement.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4), 18200 et seq., 18801 et seq.
• EFFECTIVE DATE: May 11, 1993
• AMENDED: July 20, 1993
• AMENDED: May 6, 1995
• AMENDED: April 1, 2001
• AMENDED: September 28, 2002
• AMENDED: January 17, 2004
• AMENDED: October 12, 2004
• AMENDED: October 29, 2005 – filing 2005-449
• AMENDED: October 9, 2006 – filing 2006-433
• AMENDED: February 1, 2011 – filing 2011-45
• AMENDED: December 9, 2013 – filing 2013-295 (header corrected March 7, 2016)
• AMENDED: June 5, 2016 – filing 2016-099
• AMENDED: August 30, 2017 – filing 2017-133
• AMENDED: May 26, 2018 – filing 2018-082
• AMENDED: September 19, 2018 – filing 2018-188
• AMENDED: June 24, 2019 – filing 2019-101
• AMENDED: November 4, 2019 – filing 2019-189
• AMENDED: July 18, 2020 – Section 16 added, filing 2020-160
• AMENDED: November 25, 2020 – filing 2020-236
• AMENDED: October 4, 2021 – filing 2021-197
• AMENDED: July 23, 2022 – filing 2022-137
• AMENDED: January 24, 2023 – filing 2023-011
• APAO ACCESSIBILITY CHECK: September 2, 2025
• AMENDED: September 2, 2025 – filing 2025-170
• APAO ACCESSIBILITY CHECK (Word): February 20, 2026 (no issues detected)
• AMENDED: February 24, 2026 – filing 2026-053

Chapter 804 Rebuttable Presumption for Death Benefits

Code Me. R. 94-411 Ch. 804 Rebuttable Presumption for Death Benefits {#sec-94-411-ch.-804 omnilex-key=us-me-regs-official--dept-independent-agencies--94-411 Ch. 804}

Summary: This Chapter establishes the standards to be used in determining whether the death of a professional firefighter is job-related for the purpose of meeting the qualifying member definition under the accidental death benefit provision of Chapter 425.

SECTION 1. DEFINITIONS

All terms used in this Chapter, unless the context otherwise indicates, shall have the same definitions as in 5 M.R.S.A. §§ 17001 and 18601.

SECTION 2. PRESUMPTION

If a professional firefighter dies of cardiovascular injury or disease or pulmonary disease after 30 days but within 6 months of participating in firefighting or training or a drill that involves firefighting, there is a rebuttable presumption that the death is the result of an injury arising out of and the course of employment.

SECTION 3. STANDARDS

In order to qualify for the presumption set forth in Section 2, the following standards must be met:

1. At the time of or during the time of employment as a firefighter, the firefighter must have undergone a standard, medically acceptable test for evidence of the injury or disease for which the presumption is sought, which test failed to indicate the presence of the injury or disease.

2. The injury or disease must not have been substantially caused by any act or behavior of the firefighter outside the scope of his or her employment.

3. The family history of the firefighter must not have constituted a substantial contributing factor in the injury or disease.

4. Immediately prior to death, the firefighter must not have been engaged in activity that constituted a substantial contributing factor in the death of the firefighter.

SECTION 4. REQUIRED INFORMATION

A person seeking to establish the qualification of the deceased member to death benefits hereunder shall provide information to the System sufficient to support the determination.

SECTION 5. MEDICAL BOARD REVIEW

The System will consult with the Medical Board prior to making the determination as to whether the death of the firefighter was job-related.

SECTION 6. APPEAL OF DECISION

Decisions under this rule can be appealed under the provisions of 5 M.R.S.A. Section 17451.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §§ 17103(4), 17451 and 18601
• EFFECTIVE DATE: February 1, 2011– filing 2011-46
• EFFECTIVE DATE: 94-411 Chapter 804 page 2

94-412 Saco River Corridor Commission

Chapter 101 Regulations for the Processing of Applications for Permits, Variances, or Certificates of Compliance

Code Me. R. 94-412 Ch. 101 Regulations for the Processing of Applications for Permits, Variances, or Certificates of Compliance {#sec-94-412-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 101}

SUMMARY: This regulation outlines the complete process for the submission of an application to the Commission including the timeline for rendering a decision by the Commission.

1. Scope.

Section 1 though 13 of these regulations shall apply to applications filed with the Saco River Corridor Commission (hereinafter called the Commission) for permits required under Section 959, variances from performance standards under Section 963, and special use variances under Section 963-A of the Saco River Corridor Act (hereinafter referred to as the “Act”), Title 38 M.R.S.A. Section 951 et seq. Regulations regarding Certificates of Compliance as authorized under Section 954-C. of the Act are presented in Section 7 through 13 of these regulations.

2. Application, Application Fee.

A. Two (2) written copies of each application shall be submitted in a form approved by the Commission and shall be accompanied by such fees as may be established by the Commission.

B. Applications may be required to include at the discretion of the Commission the following information:

(1) Identification of applicant;

(2) Right, title, and interest of the applicant in the subject property;

(3) Identification of landowner;

(4) Description and purpose of proposed activity;

(5) Other approvals required and action taken to obtain such approval;

(6) Site data indicating existing site conditions;

(7) Site data indicating all proposed structures and alterations to the site;

(8) Information to indicate the impact of the project on the site;

(9) Proposed measures to minimize the adverse effect on the environment;

(10) Information to show how utilities are to be provided;

(11) Proposed dates of commencement and completion;

(12) Plans for future expansion beyond those presented in the application, if any;

(13) Ownership of the subject property and abutting property as of March 19, 1974;

(14) Information to show the applicant has the technical ability and financial capacity to complete the undertaking.

The Commission may require such additional information from an applicant as it deems necessary to determine whether the proposed use will meet the requirements of the Act; or, if a variance is being requested under Section 963 or 963-A. of the Act, information specifically addressing the factors surrounding the applicant’s assertion of the need for a variance. Such additional information may include, but is not limited to, topographic or other information regarding the unique physical aspects of the property and financial information which demonstrates any claimed economic hardship imposed by the performance standard(s) form which the applicant is seeking a variance.

C. In cases in which a proposed use within the corridor requires the approval of another municipal, state, or federal agency, the Commission may authorize the applicant to substitute either in whole or in part, the application forms filed with such other agency for the forms prepared by the Commission, provided that the information submitted to the other municipal, state, or federal agency is substantially the same as that required by the Commission.

D. Applications shall be filed with the Commission at its office. It shall be the responsibility of the applicant to see that the completed application is received by the Commission on or before the date of filing specified in the notices required under Section 3.

E. The Commission shall take no action with respect to an application unless it determines that:

(1) The application has been received in conformance with Section 2.D.,

(2) The application has been properly completed,

(3) All requested information and exhibits are properly submitted,

(4) The proper application fee has been paid, and

(5) Adequate notice of the application has been given.

3. Notice of Application.

A. Prior to or at the time of filing an application under these regulations, the applicant shall submit to the Commission a copy of a notice in the form prescribed by the Commission together with proof that he/she has provided such notice to:

(1) The chief municipal officer and the planning board of the municipality wherein the proposed activity is to occur;

(2) Organizations qualified under Section 966-A of the Act;

(3) Owners of land within the corridor which is either within 500 feet of the proposed land use activity or which abuts the property on which the proposed land use will occur.

Proof of notice shall be appropriate certificates of mailing, postal receipts, or dated signature of the party to be notified. Such notice shall state the date upon which the application is to be filed with the Commission.

B. If the Commission determined that it is impracticable to provide personal notice to all landowners in paragraph A, or that the impact of the proposed activity will be so slight as to be inconsequential or de minimus , it may waive the requirement for such notice or require such other notice as it deems appropriate.

C. If the application requires a public hearing or involves a use which the Commission determines could have a significant impact on the environmental quality of the Saco River Corridor, it may direct that the applicant public notice or arrange for such publication in a form and manner prescribed by the Commission, in a newspaper with a circulation in the municipality wherein the proposed activity is to occur, and the application shall not be deemed completed until such notice as been published.

D. In cases in which a similar notice is required by another municipal, state, or federal agency, the Commission may authorize the applicant to give notice of the application being filed with the Commission at the same time and in the same manner and form as may be required by other agency, provided that such notice substantially conforms to the notice requirements established by this rule.

E. Written comments regarding the proposed land use may be submitted to the Commission by any person within fourteen (14) days of the filing of the application or publication of notice, whichever is later. Failure of any person to receive notice shall not invalidate any subsequent action by the Commission. Comments received after fourteen (14) days may be considered by the Commission at its discretion.

4. Initial Decision.

Within sixty (60) days of the date that an application for a permit, variance, or special use variance is properly completed, the Commission shall render a written decision on such application (1) denying the application, (2) granting the application with such conditions as the Commission deems necessary, or (3) ordering a public hearing.

Should the Commission be evenly divided as to whether to approve or deny the application, such a vote shall have the effect of denying the application.

5. Reconsideration and Final Decision.

A. Within thirty (30) days of the date of issuance of a written decision of the Commission which decision was made without a hearing, any person aggrieved by the decision may file a petition for reconsideration with the Commission. Such petition shall be filed with the Commission at its office and shall set forth, in detail, the findings, conclusions, or conditions to which such applicant or aggrieved person objects, the basis for such objections and the nature of the relief requested. It shall be the responsibility of the petitioner to see that the request for reconsideration is received by the Commission on or before the date specified in notices required by Section 5B.

B. Notice of such request shall be provided in the same manner as the notice required under Section 3 of these regulations.

C. The Commission shall, within sixty (60) days of receipt of a petition for reconsideration, provide the petitioner with the opportunity to appear before the Commission to present evidence and answer questions with regard to his or her petition. The Commission shall either (1) affirm its original decision; (2) grant the petition in whole or in part and issue such appropriate orders as are necessary; or (3) order a public hearing on the application.

D. No appeal pursuant to Section 968 of the Act shall be taken from a decision of the Commission which decision was made without a hearing, until the applicant or other aggrieved person has made a request for reconsideration and the Commission has made a final determination on the merits of the application.

6. Reapplication.

If the Commission denies an application for a permit or variance, a second application substantially the same as the first may not be entertained by the Commission within two years of the date of the Commission’s final written decision denying the application unless the Commission has determined that a substantial change in conditions has occurred or that other consideration materially affecting the merit of the subject matter have intervened between the time of the written denial and the subsequent application.

7. Hearings.

In the event that the Commission determines to hold a public hearing it shall hold such hearing within sixty (60) days of such determination. Notice of such hearing shall be made in accordance with the rules of the Commission. Within sixty (60) days of the close of such hearing, the Commission shall make written findings and issue an order on the application. Hearings under these regulations shall be conducted in accordance with regulations established by the Commission.

8. Inspection and Compliance.

Commission members, staff, and such consultant personnel and municipal officials as may be designated by the Executive Director shall have access to the premises of an applicant at any reasonable time for the purpose of inspecting the proposed site or insuring compliance with conditions of any permit, variance, or certificate of compliance issued pursuant to these regulations.

9. Change in Ownership.

After the issuance of any permit or variance but prior to the issuance of a certificate of compliance, where one is required, the applicant or his or her successor in interest shall notify the Commission of any change in ownership of the premises on which the proposed land use activity is to occur. Where a certificate of compliance is not required by the conditions of a permit or variance, the applicant or his successor in ownership shall notify the Commission of any change in ownership of the premises on which the proposed land use activity is to occur prior to the expiration date of the permit or variance.

10. Certificates of Compliance.

A. The Commission may require the applicant to apply for and obtain a certificate of compliance prior to the use or occupancy of any structure or development for which a permit or variance has been issued. When such a requirement is deemed necessary by the Commission, it shall be set forth as a condition in the permit or variance issued by the Commission. The Commission staff may issue such certificates, which shall be granted within thirty (30) days of a showing by the applicant that: (1) the structure or development conforms with the specifications, plans, or other information upon which the permit was granted; (2) all applicable conditions to the permit granted by the Commission have been met.

A certificate of compliance may contain such continuing conditions as required by the permit or as may be established by the Commission in accordance with the provisions of the Act. Any person aggrieved by a decision of the staff with regard to a certificate of compliance shall have the right to review of such decision by the Commission within thirty (30) days of the decision, provided that a request for such review is filed with the Commission within ten (10) days of the staff’s decision. It shall be unlawful to use or occupy a structure or development prior to the issuance of a certificate of compliance where one is required by the Conditions of a permit or variance.

B. Notwithstanding the requirements of paragraph A, a temporary certificate of compliance with conditions may be issued at the discretion of the Commission staff upon a showing by the applicant that he or she has substantially conformed to Section A.1 and A.2.

11. Miscellaneous.

Any permit or variance or certificate of compliance granted in part or in whole upon the basis of any information which is false or misleading shall be null and void. All rights and obligation of the Commission, including all functions relating to the processing of applications under these regulations, may be performed by the Executive Director or his or her subordinate, under the general supervision and control of the Commission, except the granting or denial of permits or variances under these regulations.

12. Fees.

Fees for permits, variances, and certificates of compliance shall be payable to the Commission in accordance with its schedule of fees.

13. Burden of Proof.

An applicant for any permit, variance, or certificate of compliance or a petitioner for reconsideration under these regulations shall have the burden of proof, unless otherwise provided by law or regulation.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-38
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 102 Standard Conditions of Approval

Code Me. R. 94-412 Ch. 102 Standard Conditions of Approval {#sec-94-412-ch.-102 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 102}

SUMMARY: All projects approved within the corridor must conform to a general set of standards related to vegetation removal, erosion control, beaches, and driveways and must comply with all associated federal, state, and local laws.

Scope

The following standard conditions shall apply to all permits and variances issued by the Saco River Corridor Commission, unless otherwise stated in the permit or variance, or in the special conditions attached thereto.

Standard Conditions of Approval

1. The applicant shall take all necessary measures consistent with this permit to ensure that his/her activities or those of his/her agents do not result in significant erosion of soils on the site during construction and operation of the project covered by this approval.
2. On waterfront property within the Saco River corridor, in order to assure that there is protection of water quality and wildlife habitat and to avoid any unreasonable visual impacts associated with development, there shall be no removal of live trees or other vegetation in the area within 75 horizontal feet of the normal or mean high water line, except as follows: 1. A walkway for public use, running parallel to the water body and not to exceed ten feet in width, may be approved pursuant to an application and issuance of a permit. The walkway should be of natural and well-drained material. Impervious surfaces may be allowed in special circumstances. This standard will only apply in areas designated as a General Development District prior to September 1, 1983, unless the pertinent municipal ordinance is more restrictive. 2. A footpath not to exceed six feet in width as measured between tree trunks may be established, with the issuance of a permit, provided that the path meanders and does not create a cleared line of sight to the water. 3. Selective cutting of trees within the buffer strip may be undertaken provided that a well-distributed stand of trees and other vegetation is maintained. In no instance shall trees be removed where such removal would result in fewer than three trees in any 20 x 20 foot (400 square foot) area. Pruning of tree branches on the bottom one-third of the tree is permitted, as is the removal of dead, diseased, or storm-damaged trees if such trees create a safety hazard to persons or property. These provisions notwithstanding, in no instance shall there be removal of more than 40% of the total volume of trees four inches or more in diameter, as measured at four and a half feet above ground level, in any ten-year period. 4. Existing vegetation under three feet in height and other groundcover shall not be removed except to provide for a footpath as described above or unless the applicant has applied for and received additional approval from the commission to develop access for other permitted uses requiring access to the water. 5. The applicant shall consult local shoreland zoning requirements regarding clearing in the shoreland zone and shall comply with all state and local standards in addition to those outlined above. Where there is a conflict among such standards, the more restrictive provisions shall apply.
3. The applicant shall not create a beach, build a dock, or otherwise alter the shoreline unless it is in compliance with the Saco River Corridor Act . Any docks, piers, or floats in the freshwater areas of the corridor must be constructed or installed so that they are temporary and capable of seasonal removal and so that they do not extend more than 10% of the width of the river at any time or extend into the water more than 10 feet perpendicular to the shore, whichever is less.
4. No paths, stairs, roads, or other means of access to the waterfront, except as specified in the permit, shall be developed or constructed without application for and receipt of additional approval from the commission.
5. Except as specifically provided in this permit, there shall be no paving of driveways, paths, or roadways; no deposit of materials; and no excavating or earthmoving on the property without application for and receipt of additional approval from the commission.
6. Except as otherwise provided in a special condition, all construction, including all necessary erosion control measures, shall be completed within two years of the date of this permit. If all work is not completed within the two-year period, the applicant must apply for and obtain a time extension or new permit.
7. Upon completion of the project, the applicant shall so notify the commission. Commission staff may check the site at any reasonable time for compliance with the terms and conditions of this approval.
8. Work done by a contractor pursuant to this permit shall not begin until the contractor has been provided with a copy of this permit.
9. This permit shall be considered to be in violation if the project is found, at any time, not to be in compliance with any of its conditions of approval, or if the applicant constructs or operates this development in any way other than as specified in the application, supporting documents, or evidence given at the administrative proceeding before the commission, as modified by the conditions of this approval.
10. The applicant shall comply with all applicable federal, state, and local laws, ordinances , and regulations and shall apply for and obtain all necessary licenses, permits , or approvals prior to the commencement of the activity requiring such licenses, permits , or approvals.
11. This permit is limited to and includes the proposals and plans contained in the application and supporting documents, as modified by the written decision of the commission, including any conditions. Any variations from the plans and proposals submitted by the applicant are subject to the review and approval of the commission prior to implementation.
12. The applicant must record this permit with the Registry of Deeds within 90 days of the issuance of the permit, and this record must be transferred or included with all future conveyances of the property. The applicant must provide a receipt of the record to the commission within 90 days of the issuance of the permit.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-39
• AMENDED: July 1, 2019 – filing 2019-106

Chapter 103 Standards to Address the Environmental Factors

Code Me. R. 94-412 Ch. 103 Standards to Address the Environmental Factors {#sec-94-412-ch.-103 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 103}

SUMMARY: All projects approved must show no unreasonable a) degradation of water and water quality, b) harmful alteration of wetlands, c) increase in erosion or sedimentation, d) danger of increased flood damage, e) obstruction of flood flow, f) damage to fish and wildlife habitat, g) despoliation of the scenic, rural and open space character of the corridor, h) overcrowding, i) excessive noise, j) obstruction to navigation, and k) interference with the educational, scenic, scientific, historic or archeological values of those areas designated and approved for inclusions within the Resource Protection District.

1. Scope.

In any application for a permit or variance, the Commission must give consideration to the requirements for granting permits/variances as enumerated in 38 M.R.S.A. Section 957-D.1.A.-K.; 959-A.1.A.-K.; and 963.1.C.(1)-(11). Where any of the factors is legitimately at issue, the following minimum standards shall apply.

2. Standards to Address the Environmental Factors.

A. To show no unreasonable degradation of air and water quality, the applicant shall demonstrate that:

(1) The proposed use either requires no State Air Emissions License or that one has or will be obtained;

(2) The proposed development activities will not create unpleasant odors detectable at any lot line or create any smoke or dust which is incompatible with the character of the area in which the use is to be located;

(3) The proposed use, both during construction and after completion, will not result in water quality degradation as the result of increased surface water runoff, erosion, or sedimentation. The applicant shall demonstrate that buffer strips or other measures to control surface runoff from the site are adequate to assure that there will be no measurable increase in runoff from the site, nor any resultant erosion or sedimentation;

(4) The proposed use will not result in any direct discharge to surface waters within the Saco River Corridor which discharge is unlicensed or unlicensable by the Maine Board of Environmental Protection;

(5) The proposed use will not result in the degradation of ground water supplies; and

(6) Systems of subsurface sewage disposal will be installed in accordance with current Maine Plumbing Code requirements and the requirements contained in 38 M.R.S.A. Section 962.1.A.

B. To show no unreasonable harmful alteration of wetlands, the applicant shall demonstrate that no wetland areas, as defined in the Saco River Corridor Act and these criteria, will be affected by the proposed activity, or, if wetland areas are to be affected, that the proposed activity is necessary to the undertaking and cannot be reasonably avoided, and:

(1) That any proposed wetland alteration will not result in significant loss of fish and wildlife habitat;

(2) That any proposed wetland alteration will not result in significant loss of ground water recharge capabilities or result in degradation of the quality of ground water;

(3) That the proposed wetland alteration will not result in any significant loss of flood storage capability or a measurable increase in flood flow; and

(4) That the proposed wetland alteration will not substantially change the character of the wetland as a whole, or its relationship to the surrounding environment. Cumulative impacts and the impact of incremental wetland changes both within and beyond the applicant’s control could be addressed.

Note: For the purposes of these standards, the terms “wetlands” or “wetland areas” shall include, but shall not be limited to any areas below the normal or mean high water line of the Saco, Ossipee, and Little Ossipee Rivers.

C. To show no unreasonable increase in erosion or sedimentation, the applicant shall demonstrate that:

(1) The soils are not highly erodable, or, if erodable, a plan for control of erosion and sedimentation prepared by a qualified professional has been developed and will be used;

(2) A plan for control of erosion and sedimentation prepared by a qualified professional will be used if development activities are proposed for areas within 250 feet of the normal high water line where the land slope is greater than 15% or in areas more than 250 feet from the normal high water line where the land slope is greater than 20%; and

(3) The proposed use will not result in conditions which could increase the potential for erosion of soils on adjacent properties.

D. To show no unreasonable danger of increased flood damage, the applicant shall demonstrate that the proposed use or activity is not within and will not affect areas within the 100-year floodplain, or, if within the floodplain, that:

(1) Any building or structure or expansion thereof will: (a) be designed and anchored to prevent flotation, collapse, or lateral movement of the building or structure; (b) use construction materials and utility equipment that are resistant to flood damage; and (c) use construction methods and practices that will minimize flood damage.

Note: New residential buildings are not permitted under the Saco River Corridor Act in the 100-year floodplain, except under special circumstances by variance. The Commission may require detailed construction and floodproofing plans prior to issuance of any variance.

(2) Any residential building entitled to a variance under Section 963 or 963-A, or expansion of a previously existing residential structure, shall be constructed so that the lowest floor, including any basement, is elevated to or above the elevation of the 100-year flood and shall be certified by a registered professional engineer or architect that the above floodproofing standards are satisfied. Such certification shall include a record of the elevation above mean sea level of the lowest floor, including basement. All other residential buildings are prohibited.

(3) Nonresidential buildings and expansions of previously existing nonresidential buildings, will be constructed so that the lowest floor, including basement, is: (a) elevated to or above the 100-year flood elevation, or (b) will be floodproofed so that the structure below the elevation of the 100-year frequency flood meets the criteria of the applicable Municipal ordinance and Shoreland Zoning ordinance requirements.

In either case, the structure shall have structural components capable of resisting hydrostatic and hydrodynamic loads and the effects of buoyancy and shall be certified by a registered professional engineer or architect that the above floodproofing standards are satisfied. Such certification shall include a record of the elevation above mean sea level of the lowest flood, including basement.

(4) No subsurface sewage disposal within the 100-year floodplain will occur as a result of the proposed use. Any buildings proposed shall, if sewage disposal is involved, employ an alternate method which does not involve disposal of sewage through the soils within the 100-year floodplain.

(5) Any proposed electrical, gas, and other utilities shall be located and constructed to minimize flood damage.

(6) Any floodplain encroachment (including buildings, filling and all other development requiring a permit from the Commission) will not result in any measurable or significant increase in flood levels during the occurrence of a 100-year frequency flood. The Commission may require certification from a registered professional engineer to assure compliance with this standard.

E. To show no unreasonable obstruction of flood flow, the applicant shall demonstrate that:

(1) The proposed use or development activity will be constructed in such a manner that no reduction occurs in the flood carrying capacity of any water course; and

(2) The proposed use will meet all applicable standards, as outlined in D. 1-6 above, to assure that no unreasonable danger of increased flood damage occurs.

F. To show no unreasonable damage to fish and wildlife habitat, the applicant shall demonstrate that:

(1) Proposed site alterations and activities will not result in unreasonable and unnecessary destruction or disturbance of wildlife habitat, including but not limited to disturbance to: important deer wintering areas, wildlife travel corridors, the habitat of any threatened or endangered species, or important nesting or feeding sites for bird colonies; and

(2) The proposed use will not unreasonably or unnecessarily affect aquatic resources.

Note: In the Resource Protection District or in fragile areas in or abutting freshwater or coastal wetlands, the Commission may require a professionally prepared inventory and analysis of fish and wildlife habitat and potential impacts.

G. To show no unreasonable despoliation of the scenic, rural and open space character of the corridor, the applicant shall demonstrate that:

(1) The proposed development activity is planned to maximize retention of open space;

(2) The proposed use will be designed in keeping with its natural surroundings or will be located, designed and landscaped to minimize its visual impact to the fullest extent possible;

(3) The proposed use will not unreasonably obstruct scenic views from neighboring properties or public roads;

(4) Any proposed structures will not be highly visible from the river. Appropriate buffer strips of uncleared vegetation or plantings capable of providing year-round screening will be used where necessary to reduce visual impact from the river;

(5) In areas of exceptional scenic value because of distinct and clearly identifiable geological formations, vegetation or other natural features, such as bluffs, cliffs, rapids, falls, rock out-croppings or islands, whether or not such features are presently included in a Resource Protection District, the applicant shall affirmatively demonstrate that the proposed use will provide for the preservation of those natural features which contribute to the scenic value.

H. To show no unreasonable overcrowding, the applicant shall demonstrate that:

(1) The proposed use meets all applicable setback standards, or if it does not meet such standards, that applicant shall demonstrate that (a) any proposed building or building addition will be set back from the river to the maximum extend possible; and (b) the proposed use will not result in the location of a building within the Limited Residential District or Resource Protection District which building or building addition, alone or in combination with existing buildings and other non-vegetated surfaces on the lot, covers more than 20% of the land area of the lot on which it is to be located. (Items that qualify as non-vegetated surfaces are listed in Chapter 107).

(2) The proposed use will not result in the location of a building or building addition within a Limited Residential District or Resource Protection District which building or building addition is located within fifty (50) feet of any legally existing building on any adjoining lot.

I. To show no unreasonable excessive noise, the applicant shall demonstrate that:

(1) Noises generated from the site are not of a level to cause annoyance to neighbors or to be incompatible with the character of the neighborhood;

(2) If the municipality has a noise control ordinance in place, noises generated from the proposed use will be in compliance with local noise control requirements; and

(3) The proposed use will be in compliance with all applicable noise standards promulgated by the Maine Department of Environmental Protection under the Site Location of Development Law .

J. To show no unreasonable obstruction to navigation, the applicant shall demonstrate that the proposed use will not:

(1) Interfere with legally existing commercial and recreational boating uses, including not limited to recreational canoeing.

K. To show no unreasonable interference with the educational, scenic, scientific, historic, or archeological values of those areas designated and approved for inclusion within the Resource Protection District, the applicant must demonstrate that the natural value of the area which called for its inclusion in the Resource Protection District will not be decreased.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-40
• AMENDED: January 10, 2023 – filing 2023-001
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 104 Performance Standards for Multi-unit Residential Dwellings, Including Condominium and Cluster Development

Code Me. R. 94-412 Ch. 104 Performance Standards for Multi-Unit Residential Dwellings, Including Condominium and Cluster Development {#sec-94-412-ch.-104 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 104}

SUMMARY: The number of units within a proposed multi-unit use will be limited to the maximum number of individual residential lots the parcel could be subdivided into.

1. Scope.

This regulation shall be effective in all areas of the Saco River Corridor as defined in Title 38 M.R.S.A. Section 953.

2. Definition.

A multi-unit residential dwelling for the purpose of this standard is a building containing 2 or more separate residential units which building is on land in single, joint or common ownership. The term may include, but is not limited to multifamily rental units, condominiums and cluster development. The maximum number of units to be allowed on a given parcel in the Limited Residential District shall be equal to the maximum number of single family residential lots within the corridor into which the parcel may be subdivided using the following criteria.

3. Criteria for Approving a Permit for a Multi-Family Use.

A. All proposed single family lots shall be plotted in a sketch plan in a reasonable pattern which makes provision for placement of a 24 x 32 foot single family residence on suitable land and in conformance with the frontage and setback requirements of the Limited Residential District and all other applicable performance standards.

B. The minimum setback of the multi-unit residential dwelling shall be not less than the average of the setback distances of all single family residences in the submitted sketch plan.

C. No multi-unit residential dwelling allowed under this standard shall be more than two (2) stories or thirty-five (35) feet in height.

D. Multi-unit residential dwellings allowed under this standard shall be permitted only if it can be demonstrated that the proposed use will result in:

(1) Preservation of open space, recreation areas or prime farm land soils;

(2) A pattern of development in harmony with the natural features of the land; and

(3) More efficient use of the land with smaller networks of utilities and streets within the corridor would be present if single family residential construction in conformance with this chapter were to be proposed.

E. Preserved open spaces and common areas, except those used for common sewage disposal system or other necessary services, allowable in a Limited Residential District, shall not be further subdivided and use of such areas shall be limited to those uses allowed in a Resource Protection District of the corridor. Such areas shall be delineated on any subdivision plan and shall be protected by covenant.

F. There shall be no variances from the frontage and setback requirements contained herein.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – 2006-41
• EFFECTIVE DATE: 94-412 Chapter 104 page 2

Chapter 104 Performance Standards for Multi-unit Uses, Including Condominium and Cluster Development Within the General Development District

Code Me. R. 94-412 Ch. 104 -A: Performance Standards for Multi-Unit Uses, Including Condominium and Cluster Development Within the General Development District {#sec-94-412-ch.-104 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 104}

SUMMARY: Within the General Development District the number of units within a proposed mutli-unit use will fit the criteria below.

Scope

This regulation shall be effective in all areas of the Saco River Corridor as defined in Title 38 M.R.S.A. Section 953.

Definition

A multi-unit use for the purpose of this standard is a building containing 2 or more separate residential units which building is on land in single, joint, or common ownership. The term may include, but is not limited to multifamily rental units, condominiums, and cluster development.

Criteria for Approving a Permit for a Multi-Unit Use within the General Development District

Multi-unit uses allowed under this standard shall be permitted only if it can be demonstrated that the proposed use will result in:

• 1. Preservation of open space, recreation areas, or prime farmland soils; 2. A pattern of development in harmony with the natural features of the land; and 3. More efficient use of the land with smaller networks of utilities and streets within the corridor would be present than if single family residential construction were to be proposed.

The minimum setback for multi-unit uses must be no closer than 100 feet from the river.

1. In no instance shall the minimum lot size requirement exceed that allowed by the Municipal Land Ordinance and Mandatory Shoreland Zoning Ordinance minimum lot size requirements. The lot size requirement may be reduced by the Commission in accordance with Section 959-A but may not be reduced to a size less than the Municipal Land Ordinance requirement for the lot.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954- C.
• EFFECTIVE DATE: January 10, 2023 – filing 2023-002

Chapter 105 Performance Standards for Campgrounds

Code Me. R. 94-412 Ch. 105 Performance Standards for Campgrounds {#sec-94-412-ch.-105 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 105}

SUMMARY: A permitted, established campground can only allow tent camping within 250 feet from the water, while recreational vehicles may be allowed at no less than 250 feet from the water.

1. Scope.

This regulation shall be effective in all areas of the Saco River Corridor as defined in Title 38 M.R.S.A. Section 953.

2. Definitions.

A. Campground means any premises established for overnight use for the purpose of camping, and for which a fee is charged.

B. Camping means a temporary stay at a campground facility using a recreational vehicle, tent, or other shelter for recreational purposes.

C. Campsite means an area of land within a campground to be used specifically for the purpose of camping.

D. Recreational vehicle means any vehicle or vehicular attachment designed for temporary sleeping or living quarters for one or more persons, including but not limited to travel trailers, motor homes, tent trailers, and pick-up campers.

3. Criteria for Approving a Campground within the Corridor.

A. Permits for campgrounds are required in the Limited Residential District and Resource Protection District. Campgrounds that are shown to be related, necessary, and accessory to uses allowed without a permit are allowable by permit provided that requirements contained in Section 959-A.1.A. through K. are met and provided the use meets the following additional performance standards:

(1) A campground shall contain a minimum of ten (10) contiguous acres of land, some portion of which may be outside the Saco River Corridor. The performance standards set forth herein shall only apply to those portions of the campground within the Saco River Corridor.

(2) The minimum frontage on the river measured at the normal high water line shall be 100 feet.

(3) Any campsites within 250 feet of the normal high water line of the river, shall be limited to tent camping only and shall contain a minimum area of 5,000 square feet and such sites shall be laid out so that all tents shall be a minimum of seventy-five (75) feet from the normal or mean high water line.

(4) Individual campsites for recreational vehicles shall be a minimum of 250 feet from the normal high water line of the river and shall contain a minimum of 1,000 square feet (not including roads).

(5) All buildings or other development, including systems of sewage disposal, shall meet all other applicable performance standards as contained in Sections 957-B.3. and 962.

(6) There shall be no retail sales in the Resource Protection District. Retail sales in the Limited Residential District shall be allowed only if shown to be compatible with existing uses in the area as necessary to the campground operation.

(7) No recreational vehicle, tent, or other temporary shelter shall be left within a campground for more than 200 days of a year.

As contained in Section 959-B, permits granted under these standards shall be subject to reasonable conditions regarding retention of trees, screening, erosion control, etc. as is deemed necessary to avoid the dangers enumerated in Section 959-A.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-42
• EFFECTIVE DATE: 94-412 Chapter 105 page 2

Chapter 106 Performance Standards Governing Sand, Gravel, or Topsoil Excavation and Other Mineral Exploration and Extraction Activities Within the Saco River Corridor

Code Me. R. 94-412 Ch. 106 Performance Standards Governing Sand, Gravel, or Topsoil Excavation and Other Mineral Exploration and Extraction Activities Within the Saco River Corridor {#sec-94-412-ch.-106 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 106}

SUMMARY: These performance standards establish guidelines for the ration and/or extraction activities of minerals within the corridor.

1. Scope.

This regulation shall be effective in all areas of the Saco River Corridor as defined in Title 38 M.R.S.A. Section 953.

2. Definitions.

A. Mineral Exploration means hand sampling, test boring, or other methods of determining the nature or extent of mineral resources, which activities create minimal disturbance to the land and which include reasonable measures to restore the land to its original conditions.

B. Mineral Extraction means any operation which removed within any twelve (12) month period more than 100 cubic yards of soil, topsoil, loam, sand, gravel, clay, rock, peat, or other like material from its natural location and to transport the product removed away from the extraction site.

3. Criteria for Approving Mineral Exploration and/or Extraction activities within the Corridor.

A. Mineral exploration to determine the nature or extent of mineral resources shall be accomplished by hand sampling, test boring, or other methods which create minimal disturbance of less than 100 square feet of ground surface. A permit from the Commission shall be required for mineral exploration which exceeds the above limitation. All excavation, including test pits and holes shall be immediately capped, filled, or secured by other equally effective measures, so as to restore disturbed areas and to protect the public health and safety.

B. Mineral extraction may be allowed by permit upon a showing by the applicant that the proposed use will meet all requirements for granting permits and will not unreasonably interfere with the use and enjoyment of their property by adjacent landowners or unreasonably result in any of the factors enumerated in Section 959-A.1.A.-K. of the Act, and upon the following conditions:

(1) Any reclamation plan shall be filed with, and approved by the Commission before a permit is granted. Such plan shall describe detail procedures to be undertaken to fulfill the requirements of paragraph 4 below.

(2) No part of any extraction operation, including drainage and runoff control features shall be permitted within 100 feet of the normal or mean high water line of the Saco, Ossipee, or Little Ossipee Rivers, or within seventy-five (75) feet of the normal or mean high water line of any other water body, tributary stream, or wetland within the Corridor. In addition, extraction operations shall not be permitted within seventy-five (75) feet of any property line, without written permission of the owner of such adjacent property.

(3) Mineral extraction activities shall be screened from the river, from adjacent properties and from public roads by existing vegetation. The applicant may be required to submit a professionally prepared visual impact study. If existing natural vegetation is insufficient to provide appropriate screening, then the applicant shall submit a planting and screening plan to demonstrate how any visual impacts will be mitigated.

(4) Within six (6) months following the completion of extraction operations at any extraction site, which operations shall be deemed complete when less than 100 cubic yards of materials are removed in any consecutive twelve (12) month period, ground levels and grades shall be established in accordance with the following:

(a) All debris, stumps, and similar material shall be removed for disposal in an approved location, or shall be buried on-site. Only materials generated on-site may be buried or covered on-site.

NOTE: The State of Maine Solid Waste Laws, Title 38 M.R.S.A. Section 1310 and Chapter 404 of the Department of Environmental Protection’s regulations may contain other applicable provisions regarding disposal of such materials

(b) The final graded slope shall be two and one half to one (2.5:1) slope or flatter.

(c) Top soil or loam shall be retained to cover all disturbed land areas, which shall be reseeded and stabilized with vegetation native to the area. Additional topsoil or loam shall be obtained from off-site sources if necessary to complete the stabilization project.

C. The Commission may impose such conditions as are necessary to minimize the adverse impacts associated with mineral extraction operations on surrounding uses and resources.

D. In areas designated by the Commission under 38 M.R.S.A. Section 957.A.1.C., D., or F. as Resource Protection District mineral exploration and extraction activities are prohibited.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-43
• EFFECTIVE DATE: 94-412 Chapter 106 page 2

Chapter 107 Performance Standards Governing Expansions of Existing Nonconforming Uses, Including Structures

Code Me. R. 94-412 Ch. 107 Performance Standards Governing Expansions of Existing Nonconforming Uses, Including Structures {#sec-94-412-ch.-107 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 107}

SUMMARY: The expansion of any existing nonconforming structure within the Shoreland Zone is limited to 30% based on the footprint that existed as of March 19, 1974, and the structure may not be expanded any closer to the normal or mean high water line. The maximum height of the proposed structure will not exceed the height limits shown in Table A in section 5. Non-vegetated surfaces shall not exceed a total of twenty (20) percent of the portion of the lot within the Shoreland Zone. The reconstruction or replacement of existing nonconforming structures may be allowable by permit if the reconstruction or replacement meets certain criteria. A nonconforming use may not be changed to another nonconforming use unless it is determined that the new use will not result in an increased adverse impact on the lands and waterways of the corridor.

1. Scope

This regulation shall be effective in all areas of the Saco River corridor as defined in Title 38 M.R.S.A. Section 953 and shall apply to all nonconforming uses or structures in existence prior to March 19, 1974, and to all nonconforming uses or structures established after March 19, 1974, and which legally exist as a result of the granting of a variance by the commission.

2. Definitions

Footprint: The entire area of ground covered by the structure(s) on a lot, including but not limited to cantilevered or similar overhanging extensions, as well as attached structures such as garages, decks, porches or steps.

The terms “expansion,” “enlargement,” and “extension” shall, for the purposes of these standards, be synonymous and shall mean any increase in the footprint covered by an existing nonconforming use or any increase in any dimension of a nonconforming structure, including height.

Criteria for Approving an Expansion, Reconstruction or Replacement of an Existing Nonconforming Structure within the Corridor

1. The proposed structure will be on soils suitable for the proposed use and will not unreasonably involve any of the factors enumerated in 38 M.R.S.A. Section 959-A.1.A.–K. of the Saco River Corridor Act .
2. The proposed structure will not result in an increase in nonconformity of all applicable performance standards.
3. If the structure involves any increase in the number of bedrooms in a single or multi-family residential dwelling, or if it involves an anticipated increase in the amount of wastewater generated by the expanded use, then, prior to issuance of any permit for the construction, the applicant shall provide documentation that the existing system of sewage disposal is adequate under the provisions of the Maine Subsurface Wastewater Disposal Rules , Maine State Plumbing Code , and/or other applicable state requirements, or shall, as part of the permit application, submit a proposal for a new system adequate to serve the expanded use. No permit shall be issued by the commission until the applicant has demonstrated that the existing sewage disposal system is adequate or that a system of sewage disposal adequate for the intended use can and will be installed. The commission may require, when a new system is found to be necessary, that the new system be installed prior to the commencement of the proposed expansion.
4. A permit from the Commission is required for the construction of a new or enlarged basement.
5. After September 1, 1983, in areas of the Saco River corridor which are also within the shoreland zone established by 38 M.R.S.A. Section 435, if any portion of a structure does not meet applicable setback standards, that portion of the structure shall not be expanded in footprint by more than 30% during the lifetime of the structure.
6. Non-vegetated surfaces shall not exceed a total of twenty (20) percent of the portion of the lot within the Shoreland Zone. For purposes of calculating lot coverage, non-vegetated surfaces include, but are not limited to the following: structures, driveways, parking areas, patios and other areas from which the vegetation has been removed. Naturally occurring ledge and rock outcroppings are not counted as non-vegetated surfaces. This standard shall not apply to areas of the corridor designated as a General Development District prior to September 1, 1983.
7. Any building expansion must be an integral part of the primary residential structure. This shall be accomplished by a direct, physical above-ground connection of the addition or accessory structure to the existing structure by load-bearing surfaces, including roofs and common walls.
8. If the proposed structure can be relocated or reconstructed to meet the applicable setback and frontage requirements, then no portion of the reconstructed structure shall be replaced at less than the setback and frontage requirements for a new structure. This requirement shall not apply within General Development Districts established prior to September 1, 1983.

If the existing nonconforming structure is located within a General Development District established prior to September 1, 1983, the structure may be reconstructed or replaced in its existing location. Where there is a conflict between this standard and the Maine DEP Shoreland Zoning Ordinance, the stricter provision shall prevail.

1. The proposed structure must meet the setback requirements to the greatest extent practical as determined by the commission or its designee. In determining whether the proposed structure meets the setback to the greatest extent practical, the commission shall consider the size of the lot, the slope of the land, the potential for soil erosion, the location of any other structures on the property and on adjacent properties, the current location of the septic system and on-site soils suitable for septic systems, the type and amount of vegetation to be removed to accomplish a relocation, the type and physical condition of the current foundation, and any other applicable standards to address the environmental factors pursuant to Chapter 103. These criteria shall not apply in areas established as a General Development District prior to September 1, 1983.
2. In the event the proposed structure does not meet the standards contained in 3.A.–I. above, the applicant may seek a variance under the provisions of 38 M.R.S.A. Section 963.

Additional Criteria Specific to Accessory Structures

An accessory structure located within 100 feet of the normal or mean high water line may not be expanded.

An accessory structure located between 100 feet and 250 feet of the normal or mean high water line may not be expanded if it is located closer to the mean or normal high water line than the principal structure.

The footprint area of a legally permitted accessory structure may be included in the calculations of the expansion of another structure on the lot only if the accessory structure is permanently removed.

Saco River Corridor Commission staff reserve the right to grant exceptions for accessory structures that have minimal footprint measurements, included but not limited to fences, flagpoles etc.

5. Additional Conditions Specific to Height Restrictions

Within an area extending 250 feet from the normal or mean high water line of the Saco, Ossipee, or Little Ossipee rivers, an existing nonconforming structure that does not meet the required setback or frontage requirements may be expanded, reconstructed or replaced if the proposed project meets the following additional criteria:

The proposed structure is no larger than the area of the footprint of the original structure, except as allowed pursuant to Section 3.E. above. The proposed structure does not exceed the height restrictions identified in Table A, except as allowed pursuant to Section 5.A.4. below. The height requirement shall not apply to areas of the corridor designated as a General Development District prior to September 1, 1983.

Table A

Setback from the Normal or Mean High Water Line

Maximum Height

0 feet to <25 feet setback

15 feet

25 feet to <75 feet setback

20 feet

75 feet to <100 feet setback

25 feet

100 feet to 250 feet setback, and beyond

35 feet

100 feet to 250 feet setback in Resource Protection District

25 feet

If the proposed structure meets all criteria above, the existing structure may be reconstructed or replaced and also may be expanded in footprint by 30% once during the lifetime of the structure.

The standards noted above in subsections 5.A.(1-2) , 3.B, and 3.E. shall not apply to areas of the corridor within 100–250 feet from the normal or mean high water line of the rivers designated as a General Development District prior to September 1, 1983.

The height of a structure that is a legally existing nonconforming principal or accessory structure may be raised to, but not above, the minimum elevation necessary to be consistent with the local floodplain management elevation requirement, as long as the structure is relocated, reconstructed or elevated within the boundaries of the parcel so that the water body or wetland setback requirement is met to the greatest practical extent.

This paragraph applies to structures that:

Have been or are proposed to be relocated, reconstructed or elevated to be consistent with the local floodplain management elevation requirement; and

Are located in an area of 100-year floodplain.

6. Revegetation Requirements for the Removal, Reconstruction, or Replacement of an Existing Nonconforming Structure in the Corridor

Any vegetation removed in order to reconstruct or replace an existing nonconforming structure must be replaced with native species of the same size and species to the extent possible. SRCC may require more than a one-for-one replacement planting depending on specific circumstances. Replacement vegetation must be replanted no further from the water than the vegetation that was removed, unless approved by SRCC. The applicant must submit a revegetation plan to the commission along with a proposal for development. The SRCC will make the final determination to accept or deny the revegetation plan.

Where feasible, when a structure is removed or relocated on a parcel, the original location of the structure shall be revegetated with a combination of native vegetation, size and species to be approved by the Commission.

7. Nonconforming Uses

An existing nonconforming use may not be changed to another nonconforming use unless it is determined by the commission that the proposed use will have no greater adverse impact on the rivers or lands adjacent to the use than the current existing use.

The applicant will be required to submit a written application for approval of the proposed change of use along with documentation addressing any standards concerning the applicable environmental factors in Chapter 103. This will allow the commission to determine if the proposed change of use will result in a greater adverse impact on the land or waterways in the corridor.

History

• STATUTORY AUTHORITY: 38 M.R.S. Section 954-C
• EFFECTIVE DATE: January 30, 2006 – filing 2006-44
• AMENDED: July 1, 2019 – filing 2019-107
• AMENDED: January 10, 2023 – filing 2023-003

Chapter 108 Performance Standards for Parking Areas Within the Saco River Corridor

Code Me. R. 94-412 Ch. 108 Performance Standards for Parking Areas {#sec-94-412-ch.-108 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 108}

SUMMARY: Only parking areas that serve permitted uses are allowed within the corridor.

1. Scope.

This regulation shall be effective in all areas of the Saco River Corridor as defined in Title 38 M.R.S.A. Section 953.

2. Criteria for Approving a Parking Area within the Corridor.

A. Parking areas in any district of the corridor shall be allowable in that district only if they are to serve a use permitted in that district.

B. Parking areas in a General Development District shall require a permit from the Commission only if fill or deposit of materials will exceed 100 cubic yards. Regardless of whether or not a permit is needed under this standard, parking areas in a General Development District shall be set back a minimum of fifty (50) horizontal feet from the normal or mean high water line as defined in 38 M.R.S.A. Section 952.

C. Parking areas in the Limited Residential and Resource Protection Districts of the Corridor shall require a permit from the Commission and shall be set back a minimum of 100 horizontal feet from the normal or mean high water line as defined in 38 M.R.S.A. Section 952.

D. The setback standards contained in Paragraph 3 above notwithstanding, the setback standard for parking areas serving publicly owned boat launching facilities may be reduced to no less than fifty (50) feet from the normal or mean high water line if it is demonstrated that no other reasonable alternative exists.

E. Parking areas shall be adequately sized for the proposed use and shall be designed to prevent stormwater runoff from flowing directly into a water body, and, where feasible to retain all runoff on-site.

F. In determining the appropriate size of proposed parking facilities, the following shall apply:

(1) Typical parking space: Approximately ten (10) feet wide and twenty (20) feet long, except that parking spaces for a vehicle and boat trailer shall be forty (40) feet long.

(2) Internal travel aisles: Approximately twenty (20) feet wide.

G. In addition to the above standards, any applicant for a permit to develop or construct a parking area within the Corridor shall demonstrate that the proposed parking lot complies with all applicable local standards.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-45
• EFFECTIVE DATE: 94-412 Chapter 108 page 2
• EFFECTIVE DATE: 412c108.doc - Page 2 of 2

Chapter 109 Performance Standards for the Construction and Establishment of Roads in Limited Residential and Resource Protection Districts of the Corridor

Code Me. R. 94-412 Ch. 109 Performance Standards for the Construction and Establishment of Roads in Limited Residential and Resource Protection Districts of the Corridor {#sec-94-412-ch.-109 omnilex-key=us-me-regs-official--dept-independent-agencies--94-412 Ch. 109}

SUMMARY: A road is any route or track consisting of a bed of exposed mineral soil, gravel, asphalt, or other surfacing material constructed for or created by the repeated passage of vehicular traffic. This term excludes temporary logging roads that are revegetated within 12 months and private driveways less than 100 feet in length and not within 75 feet of the water.

1. Scope.

This regulation shall be effective in all areas of the Saco River Corridor as defined in Title 38 M.R.S.A. Section 953 that are located in the Limited Residential and Resource Protection Districts.

2. Definitions.

For the purposes of these standards, the term “road” shall have the following meaning: A route or track consisting of a bed of exposed mineral soil, gravel, asphalt, or other surfacing material constructed for or created by the repeated passage of vehicular traffic. The term shall exclude temporary logging roads which do not result in substantial recontouring of the land and that are intended to be abandoned and naturally revegetated within 12 months or less. The term shall also exclude private driveways serving single family residences or other privately owned permitted uses, which private driveways do not exceed 100 feet in length and which do not extend to within seventy-five (75) feet of the normal high water line of any surface water within the corridor. Such private driveways may require a permit from the Commission, but shall not be subject to the standards governing road construction, except as may be required as a condition of any permit or variance.

3. Criteria for Approving the Construction of a Road within the Corridor.

A. Roads shall be located, constructed, and maintained in such a manner that minimal erosion hazard results. Adequate provision shall be made to prevent soil erosion and sedimentation of surface waters.

B. All roads shall be located and construction such that:

(a) Road crossings of watercourses shall be kept to the minimum number necessary. Where watercourse crossings are necessary, they shall be constructed to cross the watercourse at a right angle to the fullest extent possible;

(b) Bottoms of culverts shall be installed at stream bed elevation;

(c) Any bridges or culverts at stream or swale crossings shall be designed, installed and maintained to allow the passage of maximum anticipated streamflow and, where relevant, the passage of fish; and

(d) All cut or fill banks and areas of exposed mineral soil shall be revegetated or otherwise stabilized as soon as possible.

C. Roads shall be designed and constructed to facilitate natural drainage by outsloping, insloping, or crowning, as appropriate. Road grades shall be kept below ten (10) percent. Culverts, water bars, turnouts, and/or ditching shall be installed and maintained to properly manage water runoff.

D. Ditches shall be properly stabilized and shall not drain directly into any natural waterbody, but shall empty onto a filter strip of undisturbed, vegetated land. Such filter strip shall be of sufficient width to assure that sediment does not directly enter the waterbody. Where a filter strip of such sufficient size is not available, other appropriate techniques, such as settling basins sized to accommodate maximum anticipated flow in the ditches, shall be used.

E. Roads proposed to be created to serve subdivision lots shall meet the minimum standards for dimensions and materials as required in the subdivision review standards of the municipality in which the development is proposed.

F. Notwithstanding the construction standards set forth herein, the Commission shall review the use of any proposed road to assure that the proposed use meets the provision of the Act and its requirements for granting permits and to assure that said use is compatible with uses allowable within the district in which the road is to be located.

4. Other

An excellent guide to planning and constructing roads is Erosion Control on Logging Jobs, which is Section 6 of the Land Use Handbook published by the Maine Land Use Regulation Commission. Although it deals primarily with logging roads, it provides useful guidelines on such aspects of road construction as road placement and layout, filter strips, culvert installation, etc. A copy may be obtained by writing to: Maine Land Use Regulation Commission, 22 Statehouse Station, Augusta, Maine 04333.

History

• STATUTORY AUTHORITY: 38 M.R.S.A. Section 954-C.
• EFFECTIVE DATE: January 30, 2006 – filing 2006-46
• EFFECTIVE DATE: 94-412 Chapter 109 page 2

94-457 Finance Authority of Maine (FAME)

Chapter 1 By-Laws and Administration of the Finance Authority of Maine

Code Me. R. 94-457 Ch. 1 Bylaws and Administration of the Finance Authority of Maine {#sec-94-457-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 1}

Summary: This rule establishes the bylaws and provides for administration of the Finance Authority of Maine (the Authority). In addition, it establishes procedures for obtaining advisory rulings and for the conduct of contested hearings.

1. ANNUAL BUDGET

The members of the Authority shall approve an annual budget for the next fiscal year, no later than June 30^th annually.

2. ADMINISTRATIVE FUNCTIONS

The Chief Executive Officer of the Authority is authorized to carry out all administrative functions of the Authority, including adoption of a seal, establishment of an office, appearing in or instituting legal proceedings, investing funds, transferring registered bonds, making determinations pertaining to confidentiality of records, carrying out any resolution of the members or agreement of the Authority and employing experts, officers, agents and other personnel and determining their qualifications, duties and compensation.

3. BYLAWS OF THE MEMBERS OF THE AUTHORITY

A. Name. The name of the Authority is the Finance Authority of Maine.

B. Purpose. The Authority was created by the Maine Legislature for the purposes set forth in the Finance Authority of Maine Act and following (the "Act").

C. Office. The principal office of the Authority shall be at such location as it shall determine.

D. Seal. The seal of the Authority shall be in the form of a circle within which shall be the name of the Authority and the year 1983.

E. Members of the Authority. The members of the Authority shall be appointed and compensated and shall serve such terms as the Act may specify.

F. Quorum of and action by the members. The requirements for determining a quorum and for taking action shall be governed by the Act. If seven members are present at the beginning of any meeting, then quorum exists for the transaction of business. If any member(s) leaves from a meeting at which a quorum was originally present, so that less than seven (7) members remain, quorum continues to exist. The affirmative vote of the greater of five members present, and voting or a majority of those present and voting is necessary for any action taken by the members.

G. Officers of the members. The members shall elect from among themselves one person as Chair, one person as Vice Chair who shall serve as secretary, one person as treasurer and such other officers as it may from time to time determine. The officers shall have a term of one year and shall serve until the election of their successors. The Chair shall preside over meetings of the members. In the absence or incapacity of the Chair or if for any reason there is no Chair, then the Vice Chair shall perform the duties of the Chair. In addition, the Vice Chair, as Secretary, shall sign the minutes of all meetings of the members, after such minutes have been approved by the members.

H. Nominating Committee. At least four weeks before the date scheduled for the annual meeting, the Chair shall appoint a nominating committee consisting of at least three members, who shall report to the members presenting a slate of nominees for officers of the Authority.

I. Regular meetings. The members will ordinarily meet on the third Thursday of each month.

J. Special meetings. Special meetings of the members may be called by either the Chair or any three members.

K. Annual Meeting. The annual meeting of the members shall be held in the fall of each year at which time the members shall elect the officers.

L. Location of Meetings. Meetings other than the annual meeting shall ordinarily be held in Augusta, unless another location is designated by the Chair or Chief Executive Officer.

M. Compensation Requests. A member's request for payment of a per diem as provided by law and for reimbursement of expenses in connection with a duly called regular or special meeting of the members shall be presented to the Chief Executive Officer or the Director of Finance for approval and payment. A member's request for payment of a per diem and for reimbursement of expenses in connection with any other matter shall set forth the basis for the request and shall be presented to the Chief Executive Officer or the Director of Finance for payment. In the event it is not clear that the request is eligible for reimbursement, a determination will be made by the Chair and, if approved, presented to the Chief Executive Officer or Director of Finance for payment.

N. Notice of Meetings. Any meeting held on the third Thursday of the month shall be deemed a regular meeting for which no advance notice is required. Meetings held on any other day shall be deemed special meetings for which notice must be received by the members at least two (2) business days prior to the date of the meeting, by mail, telephone or otherwise. Notice of emergency meetings must be given in accordance with the requirements of the FAME Act and the Maine Freedom of Access Act.

O. Order of Business. The Chair shall determine the Order of Business of each meeting.

4. ADVISORY RULINGS

The Chief Executive Officer is authorized to issue nonbinding advisory rulings as to the applicability of the Finance Authority of Maine Act (the "Act") or the Authority's rules to the applicant, its property or circumstances. Requests for advisory rulings must be in writing and must specifically identify the section or provision of the statute or rule on which the ruling is sought. The Chief Executive Officer may decline to issue any ruling if the request is not sufficiently specific, is not accompanied by adequate information, does not adequately identify the applicant or the purpose for which the ruling is sought, or if the Chief Executive Officer determines that issuance of a ruling would not assist the applicant or would be contrary to the purposes of the Act. All rulings shall be in writing. Rulings shall not be binding upon the Authority. The Authority may charge an applicant for a ruling the Authority's actual, out-of-pocket costs and expenses, if any, in preparing any ruling.

5. HEARING PROCEDURES

In any case where applicable law or rule requires the Authority to conduct a hearing on an application and any objection is received with respect to such application from a competitor or a member of the public, the hearing shall be conducted substantially as follows:

A. The applicant shall make a statement in support of the application, addressing the findings required to be made by the Authority in considering the application. The Authority and objectors may ask questions of the applicant.

B. Opponents shall be given an opportunity to state the basis of their objections to the application.

C. The applicant shall be given an opportunity to respond to the objections presented.

D. The Authority may require additional information, and may continue the hearing to a later date or specify a period within which it will accept further evidence, but shall not be obligated to do so.

The Authority may, in its discretion, retain a court reporter or otherwise make a record of the hearing, and the applicant shall be responsible for any costs and expenses of making the record.

If the Authority must conduct a hearing on any other matter, the procedure shall be substantially similar to the foregoing, adapted as circumstances require.

6. CODE OF ETHICS

The members of the Authority recognize that either the existence or the perception of a Conflict of Interest can be harmful. Therefore, the members of the Finance Authority of Maine, adopt this Code of Ethics regarding Conflict of Interest.

A. Ineligible for any direct loan

Any member of the Board or employee of the Authority and/or such person’s spouse, children, parents, brothers and sisters, the spouse’s children, parents, brothers and sisters, and anyone sharing a household with a Board member or employee (collectively “immediate relations”).

Any firm, partnership, corporation or other entity, including a sole proprietorship, if either a member of the board or employee of the Authority is materially involved in management

Any firm, partnership, corporation or other entity, including a sole proprietorship, 10% or more of which is owned in the aggregate by a board member or employee and/or such person’s immediate relations.

B. Ineligible for any other benefits from the Authority

Any member of the Board or employee of the Authority and/or such person’s immediate relations except for those benefits attributable to status as a Board member or employee or relative thereof

Any firm, partnership, corporation or other entity, including a sole proprietorship (other than a financial institution seeking insurance for a loan or loans it desires to make), if either a member of the board or employee of the Authority is materially involved in management

Any firm, partnership, corporation or other entity, including a sole proprietorship, 10% or more of which is owned in the aggregate by a board member or employee and/or such person’s immediate relations

C. A member or employee shall abstain in all aspects and respects and avoid contact with any other member and any other employee regarding any matter involving, any person, firm, partnership, corporation or other entity, including a sole proprietorship, which is either an applicant or a borrower or participating coordinate lender if:

the member or employee is (i) an officer, director, attorney, accountant or other representative of such applicant or borrower or participating coordinate lender; (ii) a vendor, competitor or vendee of any such applicant, borrower, or participating coordinate lender, to any significant degree; or (iii) such person is the member or employee or such person’s immediate relations, or is a firm, partnership, corporation or other entity, including a sole proprietorship 2% of more of which is owned in the aggregate by, the member or employee and/or such person’s immediate relations.

Any degree of involvement must be disclosed in writing to, and whether such is significant or not is to be determined by, the Chief Executive Officer in consultation with the Office of General Counsel of the Authority, subject to appeal.

D. Subsections A and B of this Section 6 notwithstanding, this Rule shall not impair any member, employee, or relative thereof from being eligible for benefits under any and all Federal and State Educational Financial Assistance Programs operated by the Authority under Title 20-A M.R.S.A or from being eligible (in his or her individual capacity or as the holder of an interest in a separate legal entity) for benefits (as an investor only, and not as the subject business) under the Maine Seed Capital Tax Credit program administered by the Authority under 10 MRSA § 1100-T, provided, however, that in each such case, subsection C of this Section 6 shall apply, and provided further that in the event that the applicant is the Chief Executive Officer or one of his or her immediate relations or an entity 2% of which is owned in the aggregate by such persons, the benefits shall not be approved except by the members, and if the applicant is a member or one of member’s immediate relations or an entity 2% or more of which is owned by such persons, the benefits shall not be approved unless eligibility is determined by an independent party chosen or approved by a majority of the disinterested members and that independent party’s finding is approved by a majority of the disinterested members at a regular or special meeting of the members at which the action is scheduled and properly noticed to be heard.

E. Any benefits extended as of the effective date of this Rule may be renewed without violating this Rule.

F. Any interpretation of this Code of Ethics, including whether participation in any particular program in which the Authority plays any significant role constitutes a “benefit,” whether a degree of involvement is "significant" or material, or whether an interest is "direct" or "indirect" shall be made by the Chief Executive Officer in consultation with the Office of General Counsel of the Authority and be subject to appeal to the members, as shall be the application of this Code with regard to an employee of the Authority. It will take the affirmative vote of at least two-thirds (2/3) of the members present and voting, but not less than five (5) members, to overrule a ruling by the Chief Executive Officer in consultation with the Office of General Counsel or to waive the application of this Code with regard to an employee of the Authority.

G. Each and every contact by any Member of the Board or employee of the Authority who has a Conflict of Interest as defined above shall be reported to the Office of General Counsel by the member or employee of the Authority who is contacted. The report of contact shall be made to the Office of General Counsel and a list of any such contacts shall be provided to the Members of the Board. The Board shall thereupon take such action as it shall deem appropriate.

H. A Conflict of Interest will remain a conflict for one year following the termination of the relationship which caused the conflict.

H-1. A member of the Board or an employee may not knowingly accept any gift, compensation or service from any person or organization: (i) with whom FAME currently does business; (ii) with whom FAME has done business in the past twelve months; or (iii) that is known to be considering or attempting to do business with FAME in the future (collectively, “Prohibited Gifts”).

Prohibited Gifts include the waiver or withholding of any charge or penalty and also includes gifts, services, compensation or waivers given to members of the Board member’s or employee's immediate family or household and gifts, services, compensations or waivers which may be given to anyone on behalf of the Board member or employee.

For the purposes of this Gift Policy, “Prohibited Gifts” shall not include: (1) gifts, compensation or services, or waivers of charges or penalties, which, collectively with any other gifts, compensation, service or waivers received directly or indirectly from the same source within the prior twelve month period, have a fair value of less than $25 (“De Minimis Gifts”); (2) reasonable payments for services rendered by the Board member or the employee to the person or organization in a capacity unrelated to their Board service or FAME employment (“Permitted Compensation”); (3) reasonable services provided by the person or organization in exchange for payment by the Board member or employee (“Permitted Services”); or (4) reasonable and customary gifts (other than De Minimis Gifts) provided to the Board member or the employee in connection with such member or employee’s relationship to the person or organization in a capacity clearly unrelated to their Board service or FAME employment (“Permitted Gifts”).

The fact that compensation, services or gifts may be considered De Minimis Gifts, Permitted Compensation, Permitted Services or Permitted Gifts, shall not: (A) permit the payer, provider or donor to receive loans or other FAME benefits when otherwise proscribed under this Code of Ethics; nor (B) eliminate a conflict of interest or requirement for abstention of a Board member or FAME employee when otherwise defined or required under this Code of Ethics. In the event that a Board member or FAME employee accepts a Permitted Gift, Permitted Compensation, or Permitted Service, they shall provide prompt notice to the Chief Executive Officer, if it has not been previously disclosed.

Members of the Board and employees should be sensitive to the appearance of impropriety in accepting any gift, service or compensation of any value, including the purchase of meals.

No gift, service or compensation, even if otherwise considered a De Minimis Gift, Permitted Compensation, Permitted Service or Permitted Gift, may be accepted if the intent is to influence decision-making. Members of the Board and employees should use prudent judgment when evaluating the purpose of gift-giving and the acceptance of any gift, even a token item of minimal value.

I. Members of the board shall read and sign this Code of Ethics each year on or before the first meeting of members following the annual meeting of the Authority and each new member of the board and each new employee of the Authority shall read and sign this Code of Ethics.

History

• STATUTORY AUTHORITY: 10 M.R.S. c. 110, specifically §969-A(6),(14) and (16)
• EFFECTIVE DATE: February 24, 1984 – filing 84-63 (EMERGENCY) under the title “Procedures for Applications under the Mortgage Insurance Program”
• EFFECTIVE DATE OF PERMANENT RULE: December 28, 1985 - filing 85-478 under the title “Administration of the Finance Authority of Maine”
• AMENDED: September 22, 1986 - filing 86-354 under the title “Bylaws and Administration of the Finance Authority of Maine” (Amendment 1)
• AMENDED: May 16. 1987 - filing 87-169 (Amendment 2)
• AMENDED: April 1, 1995 - filing 95-139 (Amendment 3)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: August 30, 2000 - filing 2000-372 (Amendment 4)
• AMENDED: January 23, 2007 – filing 2007-10 (Amendment 5)
• AMENDED: September 5, 2018 – filing 2018-181 (Amendment 6)

Chapter 2 Rules for the Award of Contracts for Services for the Higher Education Loan Purchase Program

Code Me. R. 94-457 Ch. 2 Rules for the Award of Contracts for Services for the Higher Education Loan Purchase Program {#sec-94-457-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 2}

SUMMARY: This chapter outlines the procedures to be used in the awarding of contracts for necessary services pursuant to 20-A M.R.S.A. §§ 11407(5).

1. DEFINITIONS

A. Chief Executive Officer. "Chief executive officer" means the authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

B. Best-Value Proposal. "Best-value proposal" means the proposal that the authority determines best meets the needs of the authority considering all relevant factors.

C. Contract. "Contract" means the agreement between a vendor and the Authority describing the service to be performed, the terms and conditions agreed to by the parties, the cost of the service and how payment will be made.

D. Request for Proposal. "Request for proposal" means a document listing the scope of work, requirements of the Board and all evaluation criteria for a service needed by the Authority. This document is also known by the initials "RFP."

2. REQUEST FOR PROPOSAL PROCEDURE

A. All contracts for administrative services that do not qualify as sole source or emergency procurements must be competitively bid using a RFP.

B. The RFP must contain a clear description of the project, the evaluation criteria and relative scoring weights, if any, to be applied, the proposal opening date and time, and agency contact person.

1. The cost of the contract must be included in the evaluation criteria.

2. All RFPs will provide that respondents must include evidence satisfactory to the Authority that the respondent will be acceptable to nationally recognized bond insurance and rating agencies for the services they propose to provide, if the bond issue will require, respectively, insurance or a bond rating.

3. All proposals shall be opened publicly at the Authority main office or the location specified in the RFP. Proposals received at the Authority main office after the advertised opening time shall be rejected, unless the advertised opening date and time have been extended by the chief executive officer due to circumstances requiring such an extension of time.

C. Request for proposals must be advertised in the Kennebec Journal of Augusta, allowing a minimum of fifteen (15) calendar days from the final day of advertising to the proposal opening date. This section does not limit advertising in any other publication, trade publication, or other media. Advertisements must include at a minimum a brief description of the service requirements of the Authority, the name of the contact person and address where copies of the RFP can be obtained, the opening date, the opening time, and the opening location.

D. Pre-bidding conferences are allowed, but are not required. These conferences are used to be certain that all bidders have an equal understanding of the Authority requirements.

1. Pre-Bidding conferences must be advertised within the RFP advertisement, including location (which may be by conference call), day and time. The chief executive officer may authorize a pre-bidding conference on shorter notice than previously advertised. The chief executive officer shall notify all prospective bidders who requested the RFP of the date and time of any pre-bidding conference.

2. Pre-bidding conferences must be open to the public, questions raised must be documented in writing and responses must be written and forwarded to each prospective bidder who received an RFP, whether in attendance or not.

3. No alterations or changes to any requirement or specification within the original RFP can be made without notifying all bidders in writing a minimum of seven (7) calendar days before the opening date.

E. The authority may answer questions submitted in writing regarding the RFP at any time after the initial advertisement. All responses must be in writing and must be forwarded by email or regular mail to any prospective bidder who received a RFP. Additionally, all questions and responses will be posted to the Authority's web site.

F. The Authority may conduct due diligence on potential respondents to the RFP prior to releasing the RFP.

G. Proposals will be opened publicly at the office of the Authority or a location specified in the RFP. The opening of proposals shall be open to public attendance. The name of the respondent will be read aloud. No other information will be made available prior to evaluation and award notification. All proposals shall be sequestered from this time until notification of award by the contracting agency after which time they become public records.

Proposals received at the office of the Authority later than the date and time specified will not be accepted and will be returned unopened or held to be picked up by the Respondent. Late proposals not picked up within seven (7) calendar days will be destroyed.

1. A written record of the vendor names, date and time received, and cost/price shall be kept at the office of the Authority after opening.

3. AWARD

A. The chief executive officer is responsible for reviewing all RFPs based on the criteria established within the original Request for Proposal document. The chief executive officer shall document scoring, substantive information that supports the scoring, and make the award decision, which shall be subject to approval by Authority members at a general meeting.

1. Interviews/Presentations: Interviews and/or presentations may be considered within the review for information and scoring, if that provision was included within the original RFP documentation.

2. Pricing/Negotiations: Pricing changes or negotiations may be used to clarify a proposal, or to allow comparability among the proposals. Negotiations after notice of award are allowed and if agreement cannot be reached, the proposal may be rejected and the award made to the next best-value respondent who was in compliance with all terms, conditions, and requirements.

3. Award: The award must be made to the best-value respondent, taking into consideration the type of services to be provided, their conformity with the specifications, the purposes for which they are required, and the best interests of the authority.

4. Proposed Award Decision Notification: The Authority must notify all bidders responding to an RFP of the award decision in writing, postmarked or delivered a minimum of fourteen (14) calendar days prior to contract effective date. This notice must include a statement that the award is conditional pending approval by the Authority at a meeting of its members.

B. After approval by the members, an authorized signatory shall affix an original signature to the contract, in duplicate, keeping one of the originals and mailing the second to the vendor who has been awarded the contract.

4. APPEAL

A. The action of the members of the Board in approving the chosen respondent shall be final agency action of the Authority.

---

History

• STATUTORY AUTHORITY: 20-A M.R.S.A. §§ 11407(5)
• EFFECTIVE DATE: September 10, 2003 (original rule) - filing 2003-313
• EFFECTIVE DATE: 94-457 Chapter 2 page 3

Chapter 3 Certificate of Approval Process for Loring Development Authority Projects

Code Me. R. 94-457 Ch. 3 Certificate of Approval Process for Loring Development Authority Projects {#sec-94-457-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 3}

Summary: This rule establishes the procedures, standards and fees applicable to the Authority's determination regarding the issuance of a Certificate of Approval for bonds to be issued by the Loring Development Authority.

1. Definitions.

A. Reference to Act Definitions.

Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. "Authority" means the Finance Authority of Maine.

2. "Borrower" means a person or entity that is the principal user of a project financed by bonds issued by the Loring Development Authority and includes the Loring Development Authority when appropriate.

3. "Certificate of Approval" means a certificate of the Authority recommending the terms of financing for a bond project, which recommendation may be subject to the satisfaction of reasonable conditions.

4. "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

5. "Members" means the members of the Authority's board of directors appointed pursuant to the Act.

6. "Project" means the facility, equipment or other business assets acquired or financed with the proceeds of bonds issued by the Loring Development Authority pursuant to 5 M.R.S.A. §13080-G (2).

7. "State" means the State of Maine.

8. Request by the Loring Development Authority.

The Loring Development Authority may request that the Authority issue a Certificate of Approval. Each request for a Certificate of Approval must be accompanied by:

A. Project Information.

General information identifying and describing the borrower, the proposed project, the proposed guarantors, if any, the proposed financing of the project as specified in the application form and as otherwise requested by the chief executive officer, and shall include evidence of management and planning capability of the borrower, evidence pertaining to the project's proposed plan of financing, including effective written commitments from all sources of financing for the project, evidence of the economic feasibility of the project, including market information and a business plan, a description of the proposed collateral , pro forma financial statements, historical financial statements, if applicable, guarantor and personal financial statements, if applicable, and such other evidence or information as the chief executive officer or the application form may reasonably require. The chief executive officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed and the chief executive officer shall promptly inform the Loring Development Authority of the basis for any such determination. The chief executive officer shall, in the reasonable exercise of discretion, determine when an application is received, which determination shall be final.

B. A nonrefundable application fee equal to 2% of the proposed financing amount up to a maximum fee of $10,000.

3. Authority Review.

In undertaking its review of the Request for Certificate of Approval the Authority, and in addition to reviewing all materials submitted, may require reasonable analyses by third parties, including without limiting the foregoing: feasibility studies; appraisals; engineering, environmental and industry analyses, at the expense of the Loring Development Authority.

4. Criteria and Considerations.

A. No application for a Certificate of Approval for a proposed project seeking a commitment of the moral obligation of the State will be approved unless the borrower, or the borrower and guarantor combined, meets or exceeds the following financial performance and collateral criteria, as determined by the Authority (provided that new ventures are not ineligible, but must clearly demonstrate the ability to be profitable or otherwise show on a pro forma basis the ability to satisfy the following criteria, as applicable):

1. Profitability for the most recent three years of operations, if available;

2. Minimum ratio of current assets to current liabilities of 1.25 to 1;

3. Maximum ratio of total debt to net worth of 3 to 1;

4. Minimum debt service coverage ratio of 1.25 to 1 (net income after taxes, plus interest and depreciation, divided by annual debt service, both current and proposed);

5. Recent financial performance consistent with the applicable median quartile of firms in comparable businesses as reported in RMA Annual Statement Studies, if available.

6. Sufficient collateral on a discounted basis

In its discretion, the Authority may waive one or more of the above criteria if the Authority determines that the borrower has demonstrated a strong likelihood of being able to repay the loan, or in the event that the borrower causes to be provided to the Authority an irrevocable letter of credit or other similar instrument or undertaking which the Authority deems sufficient to provide adequate third party security for repayment of the loan and which is in form and content satisfactory to the Authority.

B. For all projects requiring financing in excess of $1,000,000 and in other instances where the authority determines it is appropriate, the authority shall obtain a written assessment from the Department of Environmental Protection of the environmental conditions known by the department to exist at a project location.

5. Approval by the members.

Prior to the Authority's issuance of a Certificate of Approval, the members shall consider the proposed issuance of a Certificate of Approval at a public meeting.

6. Terms and Conditions.

A. Loans must be secured by collateral having a fair market value (ordinarily determined by appraisal) sufficient to provide adequate security for the loan. The Authority may, in the reasonable exercise of its judgment, require assignments of leases or contracts in favor of the Loring Development Authority or one or more trustees acting on behalf of the bondholders, as applicable, secured or unsecured personal or corporate guarantees, and letters of credit.

B. Any project approved for a Certificate of Approval shall include covenants requiring the borrower to:

1. Make periodic payments of principal and interest;

2. Pay any taxes and governmental charges assessed against the borrower or the collateral;

3. Comply with all applicable federal, state and local laws, regulations and ordinances;

4. Make any lease payments imposed on borrower in connection with the project;

5. Obtain, maintain and pay for insurance against damage to or loss of the collateral;

6. Maintain and repair the collateral;

7. Permit the Loring Development Authority or its agent to inspect the collateral and to inspect and copy the borrower's books and records at any reasonable time;

8. Provide to the Loring Development Authority periodic financial reports in form and content, at times and for periods acceptable to the Loring Development Authority and prepared by persons acceptable to the Loring Development Authority and also provide to the Loring Development Authority, when specifically requested, annual income tax returns;

9. Refrain from transferring any interest in the collateral without the Loring Development Authority's prior written consent;

10. Repay any advances necessary to protect the collateral or enforce the rights of the Loring Development Authority;

11. Execute such further assurances as may be reasonably required;

12. Keep the collateral free from liens and encumbrances not approved in advance in writing by the Loring Development Authority; and

13. If the bonds are tax-exempt, take such action as may be necessary to preserve the tax-exempt status of the bonds.

B. Optional Covenants.

In addition, the Authority may impose such other terms and conditions as it may reasonably deem prudent or desirable to assure sale of bonds at reasonable rates, completion and continuation of the project, preservation of collateral and repayment of the bonds.

7. Fees and Other Charges.

The Authority and the Loring Development Authority will enter into a contractual agreement that will provide for fees to be paid to the Authority for services provided in reviewing applications for Certificates of Approvals. Such contracts may be per project or for a set duration of time as determined by the Authority and the Loring Development Authority. The application fee charged pursuant to paragraph 2(B) above, will be applied to the fees charged pursuant to the contract described in this paragraph 7.

8. Waiver of Rule.

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. Sections 969-A(14), 5 M.R.S.A. 13080-G(2)(C).
• EFFECTIVE DATES: June 7, 2004 - filing 2004-191
• EFFECTIVE DATES: 94-457 Chapter 3 page 5

Chapter 5 Certificate of Approval Process for Midcoast Regional Redevelopment Authority Projects

Code Me. R. 94-457 Ch. 5 Certificate of Approval Process for Midcoast Regional Redevelopment Authority Projects {#sec-94-457-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 5}

Summary: This rule establishes the procedures, standards and fees applicable to the Authority’s determination regarding the issuance of a Certificate of Approval for bonds to be issued by the Midcoast Regional Redevelopment Authority.

SECTION 1. DEFINITIONS

1. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 MRSA Section 961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

2. Defined Terms

A. “Authority” means the Finance Authority of Maine.

B. "Borrower" means a person or entity that is the principal user of a project financed by bonds issued by the Midcoast Regional Redevelopment Authority and includes the Midcoast Regional Redevelopment Authority when appropriate.

C. “Certificate of Approval” means a certificate of the Authority recommending the terms of financing for a bond project, which recommendation may be subject to the satisfaction of reasonable conditions.

D. "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

E. "Members" means the members of the Authority’s board of directors.

F. “Project” means the facility, equipment or other business assets acquired or financed with the proceeds of bonds issued by the Midcoast Regional Redevelopment Authority pursuant to 5 MRSA §13083-N.

G. "State" means the State of Maine.

SECTION 2. REQUEST BY THE MIDCOAST REGIONAL REDEVELOPMENT AUTHORITY

The Midcoast Regional Redevelopment Authority may request that the Authority issue a Certificate of Approval. Each request for a Certificate of Approval must be accompanied by:

1. Project Information. General information identifying and describing the borrower, the proposed project, the proposed guarantors, if any, the proposed financing of the project as specified in the application form and as otherwise requested by the chief executive officer, and shall include evidence of management and planning capability of the borrower, evidence pertaining to the project's proposed plan of financing, including effective written commitments from all sources of financing for the project, evidence of the economic feasibility of the project, including market information and a business plan, a description of the proposed collateral, pro forma financial statements, historical financial statements, if applicable, guarantor and personal financial statements, if applicable, and such other evidence or information as the chief executive officer may reasonably require. The chief executive officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed and the chief executive officer shall promptly inform the Midcoast Regional Redevelopment Authority of the basis for any such determination. The chief executive officer shall, in the reasonable exercise of discretion, determine when an application is received, which determination shall be final.

2. A nonrefundable application fee equal to 2% of the proposed financing amount up to a maximum fee of $2,500.

SECTION 3. AUTHORITY REVIEW

In undertaking its review of the Request for Certificate of Approval the Authority, and in addition to reviewing all materials submitted, may require reasonable analyses by third parties, including without limiting the foregoing: feasibility studies; appraisals; engineering, environmental and industry analyses, at the expense of the Midcoast Regional Redevelopment Authority.

SECTION 4. DEPARTMENT OF ENVIRONMENTAL PROTECTION REVIEW

For all projects requiring financing in excess of $1,000,000 and in other instances where the authority determines it is appropriate, the authority shall obtain a written assessment from the Department of Environmental Protection of the environmental conditions known by the department to exist at a project location.

SECTION 5. APPROVAL BY THE MEMBERS

The members shall consider the proposed issuance of a Certificate of Approval at a public meeting. In order to issue a Certificate of Approval, the Authority must find that there is a reasonable likelihood that that the income, proceeds, revenues and other funds of the Midcoast Regional Redevelopment Authority derived or held for the activities under 5 MRSA chapter 383, subchapter 3, Article 2-B or otherwise pledged to the payment of the bonds will be sufficient to pay the principal, interest and all other amounts that may at any time become due and payable under the bonds.

SECTION 6. TERMS AND CONDITIONS

1. Loans must be secured by collateral having a fair market value (ordinarily determined by appraisal) sufficient to provide adequate security for the loan. The Authority may, in the reasonable exercise of its judgment, require assignments of leases or contracts in favor of the Midcoast Regional Redevelopment Authority or one or more trustees acting on behalf of the bondholders, as applicable, secured or unsecured personal or corporate guarantees, and letters of credit.

2. The Authority may condition its issuance of a Certificate of Approval as it may reasonably deem prudent or desirable to assure sale of bonds at reasonable rates, completion and continuation of the project, preservation of collateral and repayment of the bonds.

SECTION 7. WAIVER OF RULE

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969-A(14), 5 M.R.S.A. §13083-N(2)(C)
• EFFECTIVE DATE: February 13, 2011 – filing 2011-47
• EFFECTIVE DATE: 94-457 Chapter 5 page 2

Chapter 101 Loan Insurance Program

Code Me. R. 94-457 Ch. 101 Loan Insurance Program {#sec-94-457-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 101}

Summary: This rule establishes the procedures, standards and fees applicable to borrowers and lenders, including trustees for bondholders, applying for and benefiting from the Authority's program of business loan insurance.

SECTION 1. Definitions

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act , 10 M.R.S.A. §961 and following (the “Act)”, shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

(1) "Borrower" means a prospective borrower where the context requires, and includes an individual or entity that is the recipient or beneficiary of an insured loan, and also includes any related entity having 50% or greater common ownership or beneficial interest with the Borrower or any individual or entity having a 50% or greater ownership or beneficial interest in the Borrower.

(2) "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

(3) “Clean fuel vehicle project” has the same meaning as in the Act.

(4) “Credit Policy” means the then current written Business Division Direct Loan & Loan Insurance Credit Policy of the Authority for review and analysis of Loan insurance applications, as approved by the members no less frequently than annually.

(5) “Investment Real Estate” means real estate more than 50% of which is not projected to be occupied by the Borrower.

(6) “Lender” means a financial institution authorized to do business in the State that is the applicant for loan insurance, but only to the extent it is not lending funds that are directly or indirectly derived from federal, state, county, municipal or philanthropic sources, as determined by the Authority.

(7) “Loan” means the loan proposed to be made by the Lender for which the Lender seeks Loan insurance from the Authority.

(8) "Loan insurance authorization" means a letter from the chief executive officer to a lender agreeing to insure a loan to a borrower on the terms and conditions and subject to the requirements stated therein.

(9) "Members" means the members of the Authority appointed pursuant to the Act.

(10) “Oil Storage Facility Project” means an Underground Oil Storage Facility Project, an Underground oil storage tank project, or a project associated with an above ground oil storage facility or above ground oil storage tank, all as defined in the Act, or a project which includes the installation of equipment related to the improvement of air quality pursuant to the requirements for gasoline service station vapor control and petroleum liquids transfer vapor recovery.

(11) “Plymouth waste oil remedial project” means a project that includes financing the costs of the Plymouth Waste Oil Site remedial study, as defined in the Act.

(12) [Repealed effective December 9, 2012]

(13) [Repealed effective December 9, 2012]

(14) "Program" means the Loan Insurance Program governed by this rule and the Act.

(15) “Project” means the use to which the Loan proceeds are to be put.

(16) “Public benefit” means the benefit to the State or any of its political subdivisions, or any of their respective inhabitants, as the same may be evidenced by, without limitation: jobs created or retained; revitalization of a mature industry; redevelopment of an economically depressed area; economic growth or diversification; stimulation of private investment; training opportunities; environmental protection, or the cultivation of new and emerging business enterprises.

(17) [Repealed effective December 9, 2012]

(18) [Repealed effective December 9, 2012]

(19) “State” means the State of Maine.

(20) “Veteran” means either a Veteran or a Wartime Veteran, as defined in the Act.

(21) “Waste Oil disposal site clean-up project” means a project which includes financing the costs of environmental clean-up of the waste disposal site as defined in the Act.

(22) “Working capital Loan” means a loan predominately secured by accounts and/or inventory.

SECTION 2. Eligibility

A. Borrower Eligibility: In order to be eligible for Loan Insurance, the Lender’s loan must be to an ”agricultural enterprise," ”fishing enterprise," ”industrial enterprise," ”manufacturing enterprise," or ”recreational enterprise" as defined in the Act, that is located in the State, and that is not a religious or fraternal organization.

B. Project Eligibility: In order to be eligible for Loan Insurance the Lender’s loan must be for use by the Borrower solely to finance the acquisition of a business or to acquire real or personal property to be used in a business, or to finance business operations. Ineligible uses of Loan proceeds include:

(1) refinancing of existing indebtedness of the Lender that is not insured by the Authority and as to which the Lender is reasonably likely to suffer a loss, as determined by the authority, unless specifically approved by the Authority on the basis that a significant benefit to the Borrower will result from the loan which benefit would not be extended to the Borrower without loan insurance;

(2) personal, family or household expenses of the borrower or any guarantor;

(3) acquisition, construction or operational expenses related to residential housing, investment real estate, gambling facilities or adult entertainment facilities;

C. Lender Eligibility. In order to be eligible for Loan insurance, a Lender must be capable of prudently monitoring the loan in accordance with industry standards, as determined by the Authority.

SECTION 3. Application

A. Procedures

(1) A Lender shall submit an application which complies with the requirements of this Rule on such forms and in such numbers as may be specified with such supporting information as shall be required by this Rule and the Credit Policy and such additional information as may be requested by the chief executive officer or the members.

(2) The chief executive officer shall be responsible for making application forms available and assisting lenders in preparing applications.

(3) No application will be considered complete unless substantially all questions are answered, and substantially all supporting information is provided.

B. Contents. Unless waived by the chief executive officer or the members, the Lender shall submit to the Authority a fully completed Loan Insurance application in a form and with such information prescribed by the chief executive officer or the members, which may require, without limitation, the following:

(1) Identification of the proposed amount of the loan, the proposed percentage of insurance, the purpose, terms and conditions of the loan and a description of the collateral.

(2) Copies of all conditional letters of commitment to the borrower from the lender and any other sources of financing.

(3) A written statement of the material benefit the proposed insurance will provide to the Borrower.

(4) Historical business financial statements, including income tax returns, income statements and balance sheets, as applicable.

(5) Personal financial statements and tax returns for all partners, owners, officers and guarantors, as applicable.

(6) Pro forma financial statements for at least a three-year period, including an income statement, balance sheet and cash flow projections.

(7) The Lender’s loan analysis.

(8) A statement of the number of jobs proposed to be retained and new jobs created by the project. In the event that the borrower will have ten or more employees as of the date the loan is to be made, the application must include an employment plan, on a form to be provided by the chief executive officer.

(9) Appraisal of collateral.

(10) Business credit history reports.

(11) A description of the public benefit that is expected as a result of the project.

(12) Any other information or certifications from the borrower or the lender deemed by the chief executive officer or the members to be necessary or desirable in connection with the application

SECTION 4. Review of and Action upon Application

A. Applications for Loan Insurance shall be reviewed and approved or denied by the members, unless the members delegate authority for approval or denial to the chief executive officer, which may be done by specific resolution on a loan by loan basis, or by incorporating a level of authority in the Credit Policy approved by the Board, or by a general resolution delegating authority to the chief executive officer to approve or deny loans meeting certain criteria set forth in such resolution.

B. In cases where the application will be reviewed and acted upon by the members, the chief executive officer shall prepare and present to the members an analysis of the application, including, without limitation, a description of the proposed project, and any recommendation the chief executive officer may wish to make to the members, along with the reasons for such recommendation. Once Loan insurance is approved by the members, and an insurance agreement is in force with respect to a Loan, the insurance may be modified or extended by the chief executive officer, so long as the chief executive officer determines, in his or her discretion, that the modification or extension is not likely to affect the authority’s potential insurance liability in a materially adverse manner, or that such modification or extension is necessary to protect the interests of the authority.

C. In cases where the application will be reviewed and acted upon by the chief executive officer, the chief executive officer shall prepare a written analysis of the application, the action to be taken with respect to the application, and the reasons therefore.

SECTION 5. Criteria and Considerations

A. Required Findings. An application may not be approved unless the Authority determines:

(1) that there is a reasonable prospect that the loan will be repaid according to its terms, and repayment will be secured by appropriate levels of collateral;

(2) it is prudent for the Authority to provide the amount, percentage and period of insurance proposed that such amount, percentage and period of insurance is necessary to complete the financing;

(3) that borrower and lender have met applicable requirements of the Act and this Rule, as well as the Credit Policy, and that the loan will be serviced by the Lender as required by the Authority;

(4) that the Borrower and the Project are eligible, and the Borrower is creditworthy and of good character;

(5) the application is complete and that information sufficient to make an informed decision on the application has been received;

(6) A significant public benefit will result from the project; and

(7) The Borrower is not known to be in violation of any State, federal or local law or regulation;

(8) For insurance liability exceeding $1,000,000, and in such other instances where the Authority determines it is appropriate, the Authority shall obtain from the State Department of Environmental Protection a written assessment of the environmental conditions known to the Department to exist at a project location.

B. Other Considerations. In reviewing applications, the Authority may consider the following, as applicable, without limitation:

(1) The extent to which the borrower demonstrates need for the loan.

(2) The economic feasibility of the business endeavor as evidenced by the borrower's present and past financial situation and business experience and the general reasonableness of the business proposal and financial projections for the future.

(3) Whether the borrower and any guarantors have satisfactory credit histories.

(4) Whether the borrower has sufficient capital and other resources to conduct the business as planned, and the amount and source of equity contributed.

(5) The adequacy of the security offered for the loan.

(6) The extent to which the risk of financial loss is shared by others.

(7) The current environment and short and long term viability of the industry of which the enterprise is a part and the contribution of the enterprise to that industry, as well as the effect of the project on competitors within the State.

(8) The extent of public benefit expected to result from the Loan.

SECTION 6. Loan and Insurance Terms and Conditions

A. Loan Terms

(1) Interest Rate and Term. The rate of interest on the insured loan and the term of the loan shall be agreed between the lender and the borrower, subject to the approval of the Authority.

(2) Covenants. Any loan approved for insurance shall impose covenants and requirements in accordance with prudent lending practices as approved by the Authority.

(3) Use of Loan Proceeds. The lender shall ensure that proceeds of an insured loan are used only for the business purposes approved by the Authority.

(4) Personal Guaranties. All insured loans shall be guaranteed by any shareholder of the Borrower who:

(a) owns 20% or more of the Borrower; or

(b) owns 5% or more of the Borrower and receives substantial income from the Borrower,

Exceptions may be made to the requirements of this paragraph only if: 1. For insured loans with FAME exposure equal to or less than $500,000, the Chief Executive Officer finds, or 2. For insured loans with FAME exposure over $500,000, two-thirds (2/3) of the Members of the Board present and voting at a meeting find:

(i) extraordinary public benefit will result from the project; and

(ii) substantial equity is present in the project.

(5) Lien Priorities. Where the Authority’s insurance liability exceeds $1,000,000, the insured Loan must have a first, or shared first priority lien on all material collateral that secures the loan.

B. Insurance Terms

(1) Types of Insurance. A lender may request insurance on a pro-rata or leveraged basis.

(a) Pro Rata Insurance shall cover up to 100% (or such lesser amount as indicated in the Loan Insurance Authorization or Loan Insurance Agreement) of a lender’s loss of principal, interest, and reasonable costs of collection including attorney’s fees, on an insured loan on a pro rata basis, as a percentage of the Lender’s total loss after default by borrower and application of all loan payments, proceeds of collateral and recoveries after default from borrower and guarantors, but in no event more than the specified percentage of the original loan amount, and in all cases subject to the limitations set forth in this Rule, the Loan Insurance Agreement required in Section VII and the Loan Insurance Authorization for the insured loan. By way of illustration, on a $100,000 loan with 90% pro rata loan insurance, the Authority’s maximum insurance liability is $90,000, or 90% of the original principal balance of the loan. If, after default, liquidation of all collateral and reasonable enforcement of collection from borrowers and guarantors, the loan balance is 65,000, the Authority’s pro rata insurance liability would be $58,500.

(b) Leveraged Insurance shall cover 100% of a Lenders loss of principal, interest, and reasonable costs of collection including attorney’s fees, up to the lesser of (a) 25% (or such lesser amount as indicated in the Loan Insurance Authorization or Loan Insurance Agreement) of the original loan amount; or (b) 25% (or such lesser amount as indicated in the Loan Insurance Authorization or Loan Insurance Agreement) of the loan balance at the time of default, prior to application of any proceeds of collateral or recoveries after default from borrower or guarantors to the insured loan, in all cases subject to the limitations set forth in this Rule, the Loan Insurance Agreement required in Section VII and the Loan Insurance Authorization for the insured loan prior to determining the applicability of insurance. By way of illustration, on a $100,000 loan with 25% leveraged loan insurance, the Authority’s maximum insurance liability is $25,000, or 25% of the original principal balance of the loan. If, at the time of borrower default, the loan balance is $85,000, and after liquidation of collateral, application of all such proceeds and payments collected after default from borrower and guarantors, the loan balance is $20,000, the Authority’s insurance liability would be $20,000.00.

(2) Limitations on Insurance

(a) Exclusions. Notwithstanding anything to the contrary elsewhere in this rule, Loan insurance does not cover any part of an insured loan balance that represents:

(i) accrued interest at the contract (non-default) rate in excess of 90 days;

(ii) late fees;

(iii) default rate interest or penalty interest over the contract rate;

(iv) unreasonable attorney’s fees or other collection costs; or

(v) costs of environmental remediation.

(b) Maximum Insurance. Notwithstanding anything to the contrary elsewhere in this rule, the Authority’s maximum aggregate liability to any one Borrower shall not exceed the lesser of (i) such amount as is set forth in the Credit Policy, or (b) the maximum amount permitted by 10 MRSA §1026-A. In addition, the maximum leveraged insurance liability of the authority to any one Borrower shall be $3,000,000.

(c) Enhanced insurance coverage for certain projects. Notwithstanding anything to the contrary elsewhere in this rule, pro rata loan insurance shall not exceed 90% except in the following cases:

(i) loans to veterans (provided Authority insured loans to veterans at rates greater than 90% shall not exceed $5,000,000 in the aggregate at any one time);

(ii) loans for oil storage facility projects (provided Authority insured loans for oil storage facility projects at rates greater than 90% shall not exceed $5,000,000 in the aggregate at any one time);

(iii) loans for clean fuel vehicle projects (provided Authority insured loans for clean fuel vehicle projects at rates greater than 90% shall not exceed $5,000,000 in the aggregate at any one time);

(iv) loans for waste oil disposal site clean-up projects (provided Authority insured loans for waste oil disposal site clean-up projects at rates greater than 90% shall not exceed $1,000,000 in the aggregate at any one time);

(v) loans for Plymouth waste oil remedial projects (provided Authority insured loans for Plymouth waste oil remedial projects at rates greater than 90% shall not exceed $1,000,000 in the aggregate at any one time);

(d) Limit on Insurance during construction periods. Where the insured loan is projected in whole or in material part to finance a project involving construction or substantial renovation of a facility, and where such facility is a substantial part of the collateral for the insured Loan, Loan insurance shall not be effective until construction is completed and all costs of construction are paid, unless the Loan is otherwise adequately secured or the completion of construction is adequately ensured by a Performance Bond, such that the Authority determines, in its discretion, that the risk of loss on account of construction related issues is de minimus .

(e) [Repealed effective December 9, 2012]

SECTION 7. Additional Terms for Working Capital Loans

A. Insurance Limits. Notwithstanding any provision hereof to the contrary:

(1) The Authority may authorize insurance on working capital loans up to a maximum $2,500,000 of insurance liability with respect to any one loan or any Borrower when insurance is authorized on a Pro-Rata basis, not to exceed 90% of the original loan amount, and subject to the additional limitations of this section; or

(2) The Authority may authorize insurance on working capital loans up to a maximum of $2,500,000 of insurance liability with respect to any one loan or any Borrower, when insurance is authorized on a Leveraged basis, not to exceed 20% of the original loan amount, and subject to the additional limitations of this section.

B. Collateral and Loan to Value Standards. The loan must be secured by a first lien on eligible accounts receivable and/or inventory meeting the applicable loan to value standards set forth in the Credit Policy, as it may be amended from time to time.

C. [Repealed Effective September 2, 2007]

D. Lender Eligibility. In addition to any other Lender requirements in this Rule, in order for an application for loan insurance for a working capital loan to be approved, the Authority must approve the monitoring and servicing policies and procedures the Lender intends to apply to the loan in question, and must be satisfied that the lender is sufficiently experienced and capable of effectively implementing such policies and procedures.

SECTION 8. Commitment or Rejection

A. Upon approval of an application by the Authority, a loan insurance Authorization will be issued setting forth the terms and conditions upon which the loan will be insured.

B. No Authorization shall be valid unless properly approved as set forth herein, and unless set forth in writing and executed by the chief executive officer. An Authorization shall be effective for a stated period. An Authorization may be extended in the manner stated therein.

C. No insurance shall become effective until the applicant has signed the Authorization, has paid to the Authority the commitment fee, if any, and initial insurance premium specified in this rule (which shall indicate the applicant’s acceptance of the loan insurance authorization) the Lender has signed a Loan Insurance Agreement that remains in full force and effect, and until the Lender has complied with all preconditions set forth in the Authorization and the Loan Insurance Agreement.

D. If, upon examination of the application and supporting information the Authority rejects such application, the Lender and the Borrower shall be so informed.

SECTION 9. Loan Insurance Agreement

No loan insurance shall be effective unless the lender and the chief executive officer have executed a loan insurance agreement in form acceptable to the chief executive officer setting forth the relative rights and responsibilities of the lender and the Authority for all insured loans. The loan insurance agreement shall include without limitation the following:

A. General Conditions. General conditions and provisions incorporating the requirements of the Act and this rule.

B. Responsibilities of the lender. Provisions setting forth the responsibility of the lender to:

(1) investigate the borrower's character and business ability;

(2) investigate the value and ownership of collateral;

(3) ensure that the loan documentation, including necessary recordings and filings, is prepared and executed in a manner which will ensure that the borrower and any guarantors have binding, enforceable obligations to repay the loan and that the lender has such valid and enforceable mortgages, security interests and assignments as may be necessary to protect the interests of the lender and Authority;

(4) ensure that any guarantors waive any right to contribution from the Authority and acknowledge that the Authority is not a coguarantor;

(5) ensure the loan is prudently serviced and administered;

(6) ensure records with respect to the loan are maintained and made available to the Authority;

(7) not assign, transfer or release any of its interest in the loan or loan documents without the consent of the Authority;

(8) supervise the use and disposition, if authorized, of collateral and loan proceeds;

(9) not assign any right or obligation under the insurance contract without the Authority's consent;

(10) exercise all such responsibilities and shall service insured loans at a minimum in such manner as would be the normal and customary practice of a prudent lender making or servicing a loan without relying on loan insurance.

C. Loan Charges. A prohibition of the imposition of charges on a borrower which would not have been imposed had the loan not been insured, except for the commitment fees and insurance premiums payable to the Authority.

D. Default. A requirement that the lender notify the Authority in writing within 10 business days after a payment is 60 days late and within 10 business days of any other default or event or condition which indicates the loan may be difficult to collect in full. Upon default, the lender shall take such action as may be prudent, including, with the consent of the Authority, repossessing and liquidating or foreclosing on collateral.

E. Authority Insurance. Subject to the limitations of Section VI (B), the Authority may insure principal, interest and reasonable and necessary expenses of enforcement and collection, provided that the insurance premiums are fully paid, and all other conditions hereof, of the loan insurance authorization or commitment, and of the Loan Insurance Agreement are met.

F. Cancellation. The Authority shall be entitled at its discretion to cancel or reduce its insurance obligation if the lender breaches its responsibilities under the loan insurance agreement.

SECTION 10. Insurance Claim Options

Pursuant to the loan insurance agreement, the Authority will require the lender to notify the Authority of any default by the borrower. After passage of a period of time specified in the agreement and upon performance of such obligations by the lender as the Authority may by agreement require, the Authority may require that it have the following options with respect to payment of the loan insurance:

A. Cure one or more defaults up to a stated limit;

B. Purchase the loan on the terms specified in the contract;

C. Pay the remaining balance of the Authority's insurance liability;

D. Authorize the lender to liquidate the collateral for the loan and at the conclusion of the liquidation pay off any deficiency of the lender on terms specified in the agreement; and

E. Such other options as the agreement may provide.

SECTION 11. Premiums, Fees and Other Charges

A. The authority may charge an application fee of up to 1% of the amount of proposed authority insurance liability, with a minimum application fee, if so imposed, of $250.

B. In addition to other requirements, no loan insurance or renewal of loan insurance shall be effective until the Authority has received a commitment fee of between 0% and 2%, as determined by the Authority from time to time and set forth in the Credit Policy, of the insured percentage of the principal amount of the insured loan, due upon acceptance of the commitment.

C. In addition to other requirements, the Authority shall be paid a loan insurance premium of between 0% and 5%, as determined by the Authority from time to time and set forth in the Credit Policy, of the maximum insurance liability on the insured loan on the date of closing and on each anniversary thereof while insurance is still in force.

D. Where application is made to obtain the Authority's consent pursuant to a loan insurance contract to transfer of collateral, alteration of rights or other matters, the Authority may charge the borrower for the cost of the Authority's staff utilized to review the application and for the Authority's out-of-pocket expense in connection with the application.

SECTION 12. Waiver of rule

The members or the chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial.

SECTION 13. Miscellaneous

Any approvals, reviews, determinations or findings of the Authority related to any plans, specifications, contracts, application or other documents required or contemplated by this rule or the Act are solely for the benefit of the Authority and shall not in any way constitute any approval of the adequacy of such documents or of the project.

SECTION 14. Appeal

In the event that any application of a borrower or a lender is reviewed and denied by the chief executive officer under authority delegated by the members, the borrower or lender shall have the right to appeal the decision of the chief executive officer to the members. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within twenty days after the date on which the chief executive officer mailed the notice of decision to the borrower or lender. The appeal shall be heard at a meeting of the members, and the borrower or lender must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the decision. The decision of the chief executive officer shall be final unless the members determine that the decision by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the request.

Rule History

Chapter 101: MORTGAGE INSURANCE PROGRAM

EFFECTIVE DATE:

June 17, 1984

AMENDED:

February 6, 1985

June 30, 1985

August 12, 1985

October 8, 1985

December 28, 1985

September 22, 1986

November 4, 1987

June 11, 1988

August 28, 1988

April 26, 1991 (EMERGENCY)

August 21, 1991

October 2, 1993

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 4, 1996

NON-SUBSTANTIVE CORRECTIONS:

October 4, 1996 - minor spelling

Chapter 103: SMALL BUSINESS AND VETERANS' SMALL BUSINESS MORTGAGE INSURANCE PROGRAMS

EFFECTIVE DATE:

June 11, 1985

AMENDED:

December 28, 1985

September 22, 1986

November 4, 1987

June 11, 1988

September 1990

April 30, 1992

July 21, 1992

October 2, 1993

NON-SUBSTANTIVE CORRECTIONS:

October 7, 1996 - minor spelling

REPEALED AND REPLACED:

January 1, 2005 – absorbed into Chapter 101 through filing 2004-564

BOTH CHAPTER 101 AND 103 REPEALED AND REPLACED BY NEW CHAPTER 101, LOAN INSURANCE PROGRAM:

History

• STATUTORY AUTHORITY: 10 M.R.S. §969-A(14), and 1026-A
• EFFECTIVE DATE: January 1, 2005 – filing 2004-564
• AMENDED: June 5, 2006 – Section XI(B, C), filing 2006-231 (Amendment 1)
• AMENDED: September 2, 2007 – filing 2007-360 (Amendment 2)
• AMENDED: June 7, 2011 – Section 6 and 7, filing 2011-172 (Amendment 3)
• AMENDED: December 9, 2012 – filing 2012-339 (Amendment 4)
• AMENDED: September 1, 2013 – filing 2013-212 (Amendment 5)
• AMENDED: April 9, 2017 – filing 2017-059 (Amendment 6)
• AMENDED: October 29, 2019 – filing 2019-182 (Amendment 7)
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 107 Electric Rate Stabilization Project Taxable Bond Program

Code Me. R. 94-457 Ch. 107 Electric Rate Stabilization Project Taxable Bond Program {#sec-94-457-ch.-107 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 107}

SUMMARY: This rule establishes the procedures, standards and fees applicable to borrowers applying for and benefiting from the Authority's program for issuance and sale of Authority bonds secured by loans benefiting from a capital reserve fund contract with respect to an Electric Rate Stabilization Project.

1. DEFINITIONS

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. §961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. "Bond" means a revenue obligation security (as defined in the Act), and includes a certificate of participation or other evidence of indebtedness representing an interest in one or more loans benefiting from capital reserve fund security under this program

2. "Borrower” includes a prospective borrower where the context requires.

3 "Capital Reserve Contract" means an agreement pursuant to which the Authority establishes a capital reserve fund to back a bond and/or to benefit a loan.

4. "Capital Reserve Fund" means a capital reserve fund established pursuant to 10 M.R.S.A. §1053.

5. “Cash equivalents” means deposits of money, certificates of deposit or other cash equivalents, irrevocable letters of credit issued by financial institutions acceptable to the Authority or loan guarantees from insurance companies or other institutions satisfactory to the Authority.

6. "Certificate of Approval" means a certificate issued by the Maine Public Utilities Commission (MPUC) upon application of an electric utility with respect to an electric rate stabilization agreement pursuant to 35-A MRSA Section 3156.

7. "Chief Executive Officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

8. "Electric Rate Stabilization Project" means an agreement by an electric utility with a qualifying facility as defined in 35-A MRSA Section 3303, that will result in the reduction in costs to the electric utility and that has been certified by the MPUC to meet the standards established under 35-A MRSA Section 3156.

9. “Eligible enterprise" means an Electric Rate Stabilization Project.

10. "Financing commitment” means, for purposes of this rule, a letter from the chief executive officer agreeing to include a loan in the program to be funded from the proceeds of bonds backed by a capital reserve fund, on the terms and conditions and subject to the requirements stated therein.

11. “Members" means the members of the Authority as provided for in the Act.

12. "Program" means the Electric Rate Stabilization Project Taxable Bond Program of the Authority established pursuant to the Act.

13. "State" means the State of Maine.

14. "Trustee" means a financial institution acting as trustee for holders of bonds issued and sold pursuant to this rule and the Act.

15. "Underwriter" means a qualified entity capable of buying and/or marketing the bonds.

16. APPLICATION PROCEDURES

A. The borrower shall submit an application, which complies with the requirements of this rule on such forms and in such numbers as may be specified with such supporting information as shall be required by this rule and such additional information as may be requested by the chief executive officer.

B. The chief executive officer shall be responsible for making application forms available and assisting borrowers in preparing applications.

C. No application will be considered complete unless all questions are answered, and all supporting information is provided in form and substance satisfactory to the chief executive officer.

3. PRIORITY

The Authority will review only complete applications. An application will not be complete without a Certificate of Approval from the Maine Public Utilities Commission. Once a complete application is received it will be reviewed in the normal course of the Authority's business and voted upon by the Board. Following approval by the Board, a financing commitment will be issued and must be executed by the applicant within the time provided for therein, which may not exceed sixty days. In the event that aggregate applications are received in excess of the dollar amount of bonding authority available, then applications will be considered on a "first come, first served" basis based on the date and time a complete application is received by the Authority. The Authority will document the date and time of receipt of a complete application. If an incomplete application is received at the Authority, documentation of that incompleteness will be explicit, written notice thereof will be given to the applicant, and subsequent completion of the application will be explicitly documented. No application will be deemed received for purposes of establishing priority until the application is complete as determined by the chief executive officer. If an applicant does not execute a financing commitment and pay all fees required to be paid within the time provided in the financing commitment, the application shall be deemed withdrawn and the next project for which the Authority has received a complete application will be entitled to first priority.

4. APPLICATION CONTENTS

A. Project Information. There shall be submitted with each application such general information identifying and describing the borrower, the proposed project, and the proposed financing of the project as specified in the application form and as otherwise requested by the chief executive officer, and shall include evidence of management and planning capability of the borrower, evidence pertaining to the project's proposed plan of financing, pro forma financial statements, historical financial statements and such other evidence or information as the chief executive officer or the application form may require.

B. Certificate of Approval. No application is complete without an accompanying Certificate of Approval.

5. CRITERIA AND CONSIDERATIONS

A. An application will not be approved unless the Authority determines that there is strong likelihood that the loan will be repaid according to its terms.

B. An application will only be approved to the extent, in terms of the assistance requested and the liability assumed by the Authority, that it is prudent for the Authority to provide such assistance and assume such liability.

6. LOAN, COLLATERAL, INSURANCE AND TERM STANDARDS

A. Collateral. The Authority may require such collateral as it deems necessary to secure a loan.

B. Maximum Capital Reserve. Without limiting the generality of any other provisions of this rule or the Act, in the case of an electric rate stabilization project the Authority may secure up to 100% of the revenue obligation securities by and with a capital reserve fund up to the maximum dollar amount allowed by the Act.

C. Term. The maximum term of loans under the program will be determined by the Authority on a case-by-case basis. The Authority may approve such amortization schedules, including balloon payments, that it deems to be prudent.

7. COMMITMENT OR REJECTION

A. Upon approval of an application by the Authority, a financing commitment shall be issued setting forth the terms and conditions under which a loan will be included in the program. The financing commitment may specify special requirements applicable to the project and requiring the submission in final form within a time specified of all appropriate documents, drawings, plans, specifications, appraisals, environmental site assessments, bonds, guarantees, permits, approvals, surveys, title insurance, opinions, financial statements, cost and other certifications and other instruments evidencing full compliance with Authority requirements and in form and content satisfactory to the Authority.

B. No financing commitment shall become effective until the borrower has signed it and the borrower has paid to the Authority the commitment fee as specified in the financing commitment, and other applicable fees due pursuant to Section 11 herein.

C. If, upon examination of the application and supporting information, the Authority rejects such application, the borrower shall be informed in writing of the rejection and the reasons therefor.

8. LOAN TERMS AND CONDITIONS

A. Mandatory Covenants. Any loan approved for the provision of capital reserve fund security under the program shall include covenants requiring the borrower to:

1. Make periodic payments of principal and interest;

2. Pay any taxes and governmental charges assessed against the borrower or any collateral;

3. Comply with all applicable federal, state and local laws, regulations and ordinances;

4. Obtain, maintain and pay for any insurance required as a condition of the financing commitment against damage to or loss of any collateral;

5. Maintain and repair any collateral;

6. Permit the Authority to inspect any collateral and to inspect and copy the borrower's books and records at any reasonable time;

7. Provide to the Authority periodic financial reports in form and content, at times and for periods acceptable to the Authority and prepared by persons acceptable to the Authority and also provide to the Authority, when specifically requested, annual income tax returns;

8. Refrain from transferring any interest in the collateral, if any, without the Authority's prior written consent;

9. Repay any advances necessary to protect the collateral, if any, or enforce the rights of the trustee or the Authority;

10. Execute such further assurances as may be reasonably required; and

11. Keep the collateral, if any, free from liens and encumbrances not approved in advance in writing by the Authority.

B. Optional Covenants. In addition, the Authority may impose such other terms and conditions as it may deem prudent or desirable to assure the sale of bonds at reasonable rates, completion and continuation of the project, preservation of collateral, if any, and repayment of the loan benefiting from a capital reserve fund.

9.· RIGHTS AND RESPONSIBILITIES OF THE AUTHORITY

A. The Authority's obligation to arrange or to replenish a capital reserve fund will be evidenced by a capital reserve contract or other documentation in form satisfactory to the Authority.

B. The Authority may impose such conditions, provisions and obligations in any capital reserve contract, loan documents, bond documents, or other documentation used to evidence a transaction pursuant to this Program as it may deem necessary or prudent for the effective servicing and monitoring of any loan made under this Program.

10. CAPITAL RESERVE FUND OPTIONS

Pursuant to the capital reserve contract or other documentation, the Authority will require the trustee to notify the Authority of any default by the borrower. After passage of a period of time specified in the capital reserve contract or other documentation and upon performance of such obligations by the trustee as the Authority may by contract require, the Authority may require that it have the following options:

A. Cure one or more defaults up to a stated limit;

B. Purchase the entire loan on the terms specified in the contract and call the applicable bonds;

C. Arrange for payment of the remaining balance of the capital reserve fund liability, either in one lump sum or over the original term of the defaulted loan;

D. Such other options as the contract or documentation may provide.

11. PREMIUMS, FEES AND OTHER CHARGES

A. The Authority will be paid a commitment fee in accordance with the following schedule:

LOAN AMOUNT FEE

Up to $7,000,000 1 % of the loan benefiting from capital reserve fund security

Greater than $7,000,000 and less 1 % of the first $7,000,000 of the loan

than $10,000,000 benefiting from the capital reserve fund

security, plus up to 1 % of the portion of the loan above $7,000,000

$10,000,000 or more 1 % of the first $7,000,000 of the loan

benefiting from the capital reserve fund security, plus up to 5 % of the portion of the loan above $7,000,000.

The Authority may, in its discretion, provide that a portion of the commitment fee is due upon execution of the financing commitment with the remainder due at a later date specified in the financing commitment, any such later date shall not be later than the date of issue of the bonds. Upon funding of the loan benefiting from capital reserve fund security, the commitment fee may in the discretion of the Authority, be applied in whole or in part to the first year's capital reserve fund premium. In the event. that the borrower elects not to participate in the program for mum other than the Authority's breach of the financing commitment, the full amount of the fee may be retained by the Authority as liquidated damages and/or for payment of the Authority's time and expenses unless otherwise provided in the financing commitment.

B. The Authority shall be paid an annual capital reserve fund premium not to exceed 2 %, as determined by the Authority, of the outstanding balance of the portion of each loan benefitting from a capital reserve fund at the closing of the loan and on each anniversary date of the loan or such other date specified in the contract. The premium shall be paid in advance for such period as is specified in the contract or other documentation. In the case of a loan in excess of $10,000,000, the annual premium shall not exceed 1/2 of 1 %, as determined by the Authority.

C. The Authority may provide that it shall receive in lieu of annual capital reserve fund premium payments a one time payment upon execution of the capital reserve fund contract equal to the estimated present value of premiums scheduled to be due over the anticipated term of the loan.

D. In the event that bonds are issued for the program prior to the execution of the capital reserve contract, the Authority may require borrowers to pay the interest rate differential between the rate paid on the bonds and the rate achieved by investment of bond proceeds prior to the funding of the loan from bond proceeds.

E. A borrower shall reimburse the Authority for its out-of-pocket expenses in connection with processing an application for capital reserve fund security or with the capital reserve fund, including any fee payable in connection with servicing the loan, and all expenses in connection with the bond issue, including without limitation charges of counsel and costs of sale of bonds, copying, mailing, phone calls, advertising and travel.

F. Where application is made after issuance to obtain the Authority's and/or trustee's consent to transfer of collateral, if any, alteration of rights or other matters, the Authority may charge the borrower for the cost of the Authority's staff and trustee's staff utilized to review the application and for the Authority's and trustee's out-of-pocket expenses in connection with the application, including without limitation, charges of counsel.

12. CREDIT ENHANCEMENT

The Authority may select an insurer or letter of credit issuer to provide credit enhancement for a bond issue, with or without the backing of the Authority's authority under 10 M.R.S.A. §1053. Borrowers shall be required to pay any fees and expenses charged by the provider of credit enhancement.

13. DEBT MANAGEMENT TRANSACTIONS

In exercising the debt management powers of the Authority, the chief executive officer of the Authority shall be authorized to commit the Authority to enter into transactions or agreements in the form of interest rate swaps, rate exchanges, and such other such transactions or agreements as are necessary or desirable, in the opinion of the chief executive officer of the Authority, to reduce financing costs or to reduce the risk of price changes or interest rate fluctuations, including, but not limited to the purchase of financial futures contracts, options or other transactions which constitute offsetting positions with respect to such interest rate swaps or rate exchanges, all as shall not be inconsistent with the purposes of the Act.

14. WAIVER OF RULE

The members or the chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial or not materially adverse to the interests of the Authority.

15. MISCELLANEOUS

Any approvals, reviews, determinations or findings of the Authority related to any plans, specifications, contracts, applications or other documents required or contemplated by this rule or the Act are solely for the benefit of the Authority and shall not in any way constitute any approval of the adequacy of such documents or of the project.

EFFECTIVE DATE OF EMERGENCY RULE: August 23, 1994

EFFECTIVE DATE: October 29, 1994

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 201 Municipal Securities Approval Program

Code Me. R. 94-457 Ch. 201 Municipal Securities Approval Program {#sec-94-457-ch.-201 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 201}

Summary: This rule sets forth standards pursuant to which the Finance Authority of Maine (the Authority) may issue certificates of approval, interest rate approvals and document approvals in response to applications by municipalities in connection with municipal issuances of tax-exempt revenue obligation securities to provide financing for eligible projects.

1. Eligible Projects.

A. General. Projects are eligible for approval if they satisfy the requirements of the Finance Authority of Maine Act, 10 M.R.S.A. §961 and following (the Act), and other applicable law, including eligibility for tax-exempt treatment under the federal Tax Code. Allocation of the State ceiling imposed on the issuance of tax-exempt bonds is governed by Chapter 203 - Allocation of State Ceiling on Private Activity Bonds.

B. Repealed.

C. Repealed.

D. Reasonable Expectation. At the time of issuance of the certificate of approval, the chief executive officer will determine whether a proposed project is an eligible project within the meaning of the Act. The chief executive officer's determination will be based on the reasonable expectations of projected use of the project set forth in the application and any additional documents required by the chief executive officer. A certificate of approval issued pursuant to this rule and the Act shall be conclusive proof that a project is an eligible project within the meaning of the Act, but may not be relied upon as a determination that interest on the securities is exempt from Federal and State income taxation. The chief executive officer may issue a certificate of approval with conditions regarding the project or use of the project if he deems it necessary or desirable to ensure that the project is eligible.

2. Application.

Each application under this program will include the following:

A. The names of the user, and guarantor and the municipality.

B. Repealed.

C. Repealed.

D. Repealed.

E. Designation of the municipality's bond counsel for the issue.

F. Resolution of municipality authorizing the application.

G. A non-refundable administrative fee of $5,000.

The administrative fee required with the application is not credited against the administrative fee due upon issuance of the securities set forth below.

H. A statement of the municipality that adequate provision is being made to meet any increased demand upon public facilities that might result from the project or that there is no increased demand.

I. A letter of intent or a commitment from one or more purchasers or underwriters of the total amount of securities to be issued (required prior to scheduling a public hearing).

J. For securities exceeding $1,000,000, and other instances where the Authority deems it appropriate, the Authority shall be provided a written assessment from the Maine Department of Environmental Protection to the Authority of all environmental conditions known to exist. The Authority will not issue a certificate of approval for any such project until that department's assessment has been received and considered by the Authority.

K. A description of the proposed project sufficient to enable the chief executive officer to determine that it is an eligible project within the meaning of the Act.

L. Repealed.

M. A statement by the user explaining how the project will make a contribution to the economic growth of, the control of pollution in or the betterment of the health of the inhabitants of the State. The statement should include information on payroll and the number of new or retained jobs.

N. A statement by the user explaining why the project will not result in a substantial detriment to existing business in the State. To the extent known to the applicant or the user, the statement should describe the market to be served as a result of the proposed project and should set forth the names and addresses of any other businesses in the State known by the borrower to serve such market. If there are any such businesses known to the applicant, then, to the extent known to the applicant or the user, the statement should also describe the demand in such market, the capacity of such businesses serving such market, the efficiency of such businesses and why any arguably adverse economic effect of the project on such businesses is outweighed by the contribution which the project will make to the economic growth of, the control of pollution in or the betterment of the health of the inhabitants of the State.

O. A breakdown of the purposes and amounts for which the proceeds of the issue will be expended.

P. Repealed.

Q. Such other information as the Authority may reasonably require, including such information as may be required for purposes of Chapter 203, Allocation of State Ceiling on Private Activity Bonds.

3. Additional Information for Certain Applications.

With respect to certain types of projects, the Act requires the Authority to make additional determinations. Those projects include relocation of certain facilities, pollution control facilities, water supply system projects, energy generating system projects, energy distribution projects, certain hydroelectric facilities and energy conservation projects. In these cases, the application must provide such information as the Authority may reasonably require as a basis for such determinations.

4. Public Hearing.

Prior to issuing a certificate of approval; the chief executive officer shall convene and conduct a public hearing with respect to any application by a municipality for issuance of a certificate of approval by the Authority. As required by the Act, the applicant shall notify any businesses identified in response to section 2, subsection N of the date, time and place of the hearing and provide the Authority with a copy of each notice. The Authority may require such other or further notice as may be necessary or desirable to provide adequate notice to affected businesses.

5. Contribution.

In determining whether or not to issue a certificate of approval for a project, the chief executive officer shall consider whether economic growth will be enhanced, jobs will be retained, pollution will be reduced or the health of the inhabitants of the State will be improved.

6. Detriment.

No certificate of approval will be issued for any project where the chief executive officer finds that implementation of the project is likely to cause economic detriment of one or more existing businesses, which detriment is substantial and would have a material adverse impact on such business. In determining whether or not to issue a certificate of approval, the chief executive officer shall consider whether the project serves a new market segment or a market segment not serviced by existing business in the State. In determining whether, as a result of the project, there will not be sufficient demand within the market area of the State to be served by the project. To employ the efficient capacity of existing business, the chief executive officer shall consider whether the market is growing and whether the project would be likely to cause a significant, adverse change in the market shares of existing enterprises. For purposes of this section, "efficient capacity" means that part of the quantity of production or supply of services that is produced or supplied by businesses employing well-designed structures, equipment or techniques that are comparable to current practices.

7. Repealed.

8. Approvals.

The chief executive officer is hereby authorized to make the determinations required by this rule and the Act and to issue certificates of project approval in the name and on behalf of the Authority. The chief executive officer may not delegate the responsibility of executing such certificates to any other persons.

9. Review.

Notice of approval or disapproval of a municipality's application for a certificate of project approval shall be provided promptly to the user and the municipality. The notice will provide that the user or the municipality may appeal the chief executive officer's denial of an application for a certificate of project approval to the members by notifying the chief executive officer in writing, provided that the chief executive officer receives such notice of appeal within fourteen (14) days after the user's and the municipality's receipt of notice of denial.

10. Repealed.

11. Expenses.

The chief executive officer may require the user to reimburse the Authority for its out-of-pocket expenses in connection with the application, including without limitation charges of special counsel and costs of copying, mailing, phone calls, advertising and travel.

12. Repealed.

12-A Additional Administrative Fee. In the event the Authority issues its certificate of approval, and upon the issuance of the securities, the applicant shall pay to the Authority an additional non-refundable administrative fee (calculated as a percentage of the securities issued) as follows:

State Bond Ceiling Allocation Required 0.20% (minimum $5,000)

State Bond Ceiling Allocation Not Required 0.10% (minimum of $2,500)

13. Chief Executive Officer.

For the purposes of this rule, the chief executive officer shall be defined as the chief executive officer of the Authority, or any person acting under the supervisory control of the chief executive officer.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969-A(14), §1061 et seq.
• STATUTORY AUTHORITY: Effective October 22, 1984, various amendments were made to the rule. Sections 1 and 2.K were modified and section 10 was added to implement P. L. 1983, c. 699. Also, section 11 was added to expressly enable the Authority to recover out-of-pocket costs.
• STATUTORY AUTHORITY: Effective May 8, 1985, section 12 was added to enable rebate of application fees in certain instances.
• STATUTORY AUTHORITY: Effective June 11, 1985, section 6 was amended to give additional guidance to the chief executive officer in determining whether, if a project is approved, the efficient capacity in the industry will exceed the demand in the market
• STATUTORY AUTHORITY: Effective June 11, 1985, section 13 was added to make more explicit the members' expectation, which has existed since this rule was first adopted, that actions and duties delegated to the chief executive officer (except execution of certificates and approvals referred to in section 8) may be performed either by the chief executive officer or by another Authority employee acting under the supervisory control of the chief executive officer. If the chief executive officer chooses to rely on an employee in making a decision on an application or performing any other function under this rule, the members continue to expect that the employee's training and experience will be at least commensurate with the employee's responsibilities under the program and that there will be continuing supervision by the chief executive officer.
• STATUTORY AUTHORITY: Changes were made in section 12 effective April 20, 1986 to allow rebates of application fees. The change was deemed necessary due to anticipated Federal legislation restricting the State ceiling on certain tax-exempt bonds and resulting changes to Chapter 203 of the Authority's rules regarding allocation of the State ceiling.
• STATUTORY AUTHORITY: Effective September 22, 1986, various amendments were made designed to implement the 1986 legislative amendments to the Act and to clarify certain provisions of the rule.
• STATUTORY AUTHORITY: Effective November 4, 1987, the office space prohibition was amended to refer to professional office space, consistent with the 1987 Amendments to the Finance Authority of Maine Act.
• EFFECTIVE DATE: June 4, 1984, original rule
• AMENDED: October 22, 1984, amended sections 1 and 2(K) and added sections 10 and 11
• AMENDED: May 8, 1985, added section 12
• AMENDED: June 11, 1985, amended sections 6 and 8 and added section 13
• AMENDED: December 28, 1985, various revisions
• AMENDED: April 20, 1986, amended section 12
• AMENDED: September 22, 1986, various revisions
• AMENDED: November 4, 1987 revised section l(C)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling
• NON-SUBSTANTIVE CORRECTIONS: March 17, 2000 - minor formatting
• AMENDED: August 27, 2005: changes to sections 1, 2 and 12, added section 12-A
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 202 Revenue Obligation Securities Program

Code Me. R. 94-457 Ch. 202 Revenue Obligation Securities Program {#sec-94-457-ch.-202 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 202}

Summary: This Rule sets forth policies pursuant to which the Finance Authority of Maine (the Authority) may issue certificates of project approval and approve borrowers in response to applications by individuals, business enterprises and other eligible applicants requesting the Authority to issue tax-exempt or taxable revenue obligation securities to provide financing for eligible projects.

Eligible Projects

A. General. Projects are eligible for approval if they satisfy the requirements of the Finance Authority of Maine Act, 10 M.R.S.A. §961 and following (the Act), and other applicable law. Allocation of the State Ceiling imposed on the issuance of tax-exempt bonds is governed by Chapter 203 - Allocation of State Ceiling on Private Activity Bonds. Allocation of the national limitation on Recovery Zone Facility Bonds and Qualified Energy Conservation Bonds is governed by 10 MRSA §§ 1074-A and 1074-B, respectively, and the provisions of this Rule.

[Repealed]

[Repealed]

C-1. Major Business Expansion Projects. A project is eligible as a major business expansion project if it is any building, structure, machinery, equipment or facility proposed to be constructed, rehabilitated, expanded, modernized or acquired in the State by a business entity, that has a projected cost of $1,000,000 or more, that is projected to result in, directly or indirectly, a net gain of at least fifty (50) job opportunities within the State or the retention of at least fifty (50) jobs or a combination of at least fifty (50) jobs created or retained, and that benefits from financing assistance from the Authority pursuant to this rule including use of a capital reserve fund. A major business expansion project does not include electric rate stabilization projects, energy distribution system projects, or projects primarily involved in the provision of housing or retail sales to consumers. Financing assistance to a major business expansion project pursuant to this rule may not exceed $25,000,000.

C-2. Energy Distribution System Projects. A project is eligible as an energy distribution system project if it is an energy distribution system owned, in whole or in part, by an individual, municipality, corporation or other governmental entity or business association, that: (1) uses biomass, peat, solar, waste, water and related dams, wind, wood or coal, or (2) distributes or transmits oil, biofuels, propane, compressed natural gas, liquefied natural gas or natural gas. Financing assistance to any one energy distribution system project pursuant to this rule may not exceed $65,000,000. To be effective, a certificate of approval for an energy distribution system project must be issued, and the revenue obligation securities for such project must be issued (except for refunding securities issued solely to refund outstanding securities), prior to January 1, 2018.

Reasonable Expectation. At the time of issuance of the certificates of approval, the chief executive officer will determine whether a proposed project is an eligible project within the meaning of the Act. The chief executive officer's determination will be based on the reasonable expectations of projected use of the project set forth in the application and any additional documents required by the chief executive officer. A certificate of approval issued pursuant to this Rule and the Act shall be conclusive proof that a project is an eligible project within the meaning of the Act, but may not be relied upon as a determination that interest on the securities is exempt from Federal and State income taxation. The chief executive officer may issue a certificate of approval with conditions regarding the project or use of the project if he deems it necessary or desirable to ensure that the project is eligible.

Priority as to certain projects. Allocation of any national limitation on the issuance of bonds requiring allocation pursuant to Chapter 203 shall be awarded as provided in such Rule. For all other bonds, allocations shall be awarded on a first come, first served basis, with the following qualifications:

1. In the case of Recovery Zone Facility Bonds, allocations must comply with 10 MRSA §1074-A;

2. In the case of Recovery Zone Facility Bonds, in the event the Authority determines that the national allocation for the entire state is likely to be insufficient to allow award to all eligible applicants, the Authority may reserve allocations for certain projects regardless of order of application if the Authority determines in its discretion that such reservation is necessary to assure a reasonable geographic distribution of projects within the state.

3. In the case of bonds for energy distribution system projects, allocations of the amount permitted to be issued under 10 MRSA §1053(6)(A) shall be made upon issuance on a first come, first served basis, provided that the authority may reserve allocations to projects in advance of issuance if such projects have submitted a completed application that has been fully approved by the authority, for a period expiring at the earlier of: (a) the date upon which the project suffers a material adverse change, as determined by the authority; (b) the date upon which a material condition of issuance becomes reasonably unlikely to be fulfilled by the applicant within a year of the reservation, as determined by the authority; (c) the date which is 12 months from the date of the reservation; and (d) December 31, 2017.

4. In the case of bonds for major business expansion projects, allocations of the amount permitted to be issued under 10 MRSA §1053(6)(B) shall be made upon issuance on a first come, first served basis.

Application. In order to provide the Authority with a basis to make the determinations required by the Act and these regulations, an applicant shall make an application, in one or more parts, which will include the following:

1. [ Repealed ]
2. [ Repealed ]
3. [ Repealed ]
4. An application fee calculated pursuant to section 8. The application fee is non-refundable.
5. A statement of the municipality in which the project is to be located that adequate provision is being made to meet any increased demand upon public facilities that might result from the project or that there is no increased demand.

A commitment from one or more purchasers or a letter of intent from one or more underwriters of the total amount of securities to be issued (required prior to scheduling a public hearing except for applications under Chapter 105 of the Authority's rules).

For securities exceeding $1,000,000, and other instances where the Authority deems appropriate, the Authority shall be provided with a written assessment from the Maine Department of Environmental Protection of the environmental conditions known by the Department to exist. The Authority will not issue a certificate of approval for any project until that department's assessment has been received and considered by the Authority.

A description of the proposed project.

A statement by the applicant explaining how the project will make a contribution to the economic growth of, the control of pollution in or the betterment of the health, welfare or safety of the inhabitants of the State. The statement should include information on payroll and the number of new or retained jobs.

A statement by the applicant explaining why the project will not result in a substantial detriment to existing business in the State. To the extent known to the applicant, the statement should describe the market to be served as a result of the proposed project and should set forth the names and addresses of any other businesses in the State known by the borrower to serve such market. If there are any such businesses known to the applicant, then to the extent known to the applicant, the statement should also describe the demand in such market, the capacity of such businesses serving such market, the efficiency of such businesses and why any arguably adverse economic effect of the project on such businesses is outweighed by the contribution which the project will make to the economic growth of, the control of pollution in or the betterment of the health, welfare or safety of the inhabitants of the State.

A breakdown of the purposes and amounts for which the proceeds of the issue will be expended.

A statement that the applicant will, to the extent possible, cooperate with representatives of the Department of Labor and the Department of Health and Human Services regarding opportunities for employment for recipients of services provided by those Departments.

With respect to Recovery Zone Facility Bonds, a statement by the applicant describing why the project will be beneficial to the county or counties in which it is located.

N. Such other information as the Authority may reasonably require, including such information as may be required for purposes of Chapter 203 - Allocation of State Ceiling on Private Activity Bonds, or for the purposes of 10 MRSA §§ 1074-A and 1074-B.

O. For credit enhanced projects, such financial and other information as the authority shall reasonably require regarding the financial condition or other aspects of the Borrower, Guarantors, and the Project, including but not limited to any information required by any other Rule of the Authority that may be applicable.

3. Additional Information for Certain Applications. With respect to certain types of projects, the Act requires the Authority to make additional determinations. Those projects include major business expansion projects, relocation of certain facilities, recycling and waste reduction projects, paper industry job retention projects, transmission facilities projects, pollution control facilities, energy generating system projects, energy distribution system projects and certain hydroelectric facilities. In these cases, the application must provide such information as the Authority may reasonably require as a basis for such determinations.

Public Hearing. Prior to issuing a certificate of approval, the chief executive officer of the Authority shall convene and conduct a public hearing with respect to the application. As required by the Act, the applicant shall notify any businesses identified pursuant to section 2, subsection J of the date, time and place of the hearing and provide the Authority with a copy of each notice. The chief executive officer may require such other or further notice as may be necessary or desirable to provide adequate notice to affected businesses.

Contribution. In determining whether or not to issue a certificate of approval for a project, the chief executive officer shall consider whether economic growth will be enhanced, jobs will be retained, pollution will be reduced or the health, welfare or safety of the inhabitants of the State will be improved.

Detriment. No certificate of approval will be issued for any project where the chief executive officer finds that implementation of the project is likely to cause economic detriment to one or more existing businesses, which detriment is substantial and would have a material adverse impact on such business. In determining whether or not to issue a certificate of approval, the chief executive officer shall consider whether the project serves a new market segment or a market segment not serviced by existing business in the State. In determining whether, as a result of the project, there will not be sufficient demand within the market area of the State to be served by the project to employ the efficient capacity of existing business, the chief executive officer shall consider whether the market is growing and whether the project would be likely to cause a significant, adverse change in the market shares of existing enterprises. For purposes of this section, "efficient capacity" means that part of the quantity of production or supply of services which is produced or supplied by businesses employing well-designed structures, equipment or techniques that are comparable to current practices.

Creditworthiness. In deciding whether to issue any securities for a project, the chief executive officer shall determine, on the basis of available information, that it is reasonable to expect that the applicant and any guarantor will be able to pay debt service upon the securities, or that adequate security is being provided to assure repayment of the securities. Where Authority credit enhancement is being provided, the following credit criteria shall apply in addition to those criteria set forth in Chapter 101 of the Rules of the Authority, as applicable:

A. No application will be approved unless the borrower, or the borrower and guarantor combined, meets or exceeds the following financial performance criteria, as determined by the Authority:

1. Profitability for the most recent three years of operations, if applicable, and projected profitability for 3 years;

2. Minimum ratio of current assets to current liabilities of 1.25 to 1;

3. Maximum ratio of total debt to net worth of 3 to 1;

4. Minimum debt service coverage ratio of 1.25 to 1 (net income after taxes, plus interest and depreciation, divided by annual debt service), both current (if applicable) and proposed;

5. Recent financial performance, if applicable, and projected financial performance consistent with the applicable median quartile of firms in comparable businesses as reported in Robert Morris Associates Annual Statement Studies.

In its discretion, the Authority may waive one or more of the above criteria if the Authority determines that the borrower has demonstrated a strong likelihood of being able to repay the loan, or in the event that the borrower causes to be provided to the Authority an irrevocable letter of credit or other similar instrument or undertaking which the Authority deems sufficient to provide adequate third party security for repayment of the loan and which is in form and content satisfactory to the Authority.

C. No more than 90% of the total loan funds being provided to borrower for an eligible project may be credit enhanced by the Authority [except with respect to Major Business Expansion Projects, Electric Rate Stabilization Projects, Worker’s Compensation Residual Market Mechanism Projects, Paper Industry Retention Projects, Transmission Facilities Projects, and Energy Distribution System Projects]. The balance of the loan funds shall be provided by a Lender the Authority finds will adequately monitor the Borrower’s performance of its loan obligations.

Fees, Expenses and Interest Rate

(i) Due upon Application. On submission of the application, the applicant shall pay a non-refundable administrative fee of $5,000 for conduit bonds, and if the project seeks the credit enhancement of the Authority (other than solely from the Loan Insurance Reserve Fund or Mortgage Insurance Fund under Chapter 101, in which case the application fee under that Chapter shall apply in addition to the administrative fee applicable to conduit issues herein), an additional non-refundable administrative fee of 1% of the amount of the requested securities.

(ii) Due upon Issuance of Commitment for Credit Enhancement. In the event the applicant seeks and the Authority issues a commitment to provide the credit enhancement of the Authority (other than solely from the Loan Insurance Reserve Fund or Mortgage Insurance Fund under Chapter 101, in which case the commitment fee under that Chapter shall apply in lieu of the commitment fee provided herein) the applicant shall pay a capital reserve commitment fee of 1% of the loan to benefit from the requested capital reserve fund. The additional administrative fee required with the application for credit enhanced bonds not subject to Chapter 101 may be credited against the commitment fee set forth in this subsection.

(iii) Due upon Issuance. In the event the Authority issues its certificate of approval, and upon the issuance of the securities, whether issued as conduit or credit enhanced bonds, the applicant shall pay to the Authority an additional non-refundable administrative fee as follows:

Fee (as percentage of securities issued)

S tate Bond Ceiling Allocation Required 0.30% (minimum of $10,000)

State Bond Ceiling Allocation Not Required 0.20% (minimum of $10,000)

(iv) Ongoing Fees. There shall be no ongoing fees for conduit bonds. For credit enhanced bonds (other than solely from the Loan Insurance Reserve Fund or Mortgage Insurance Fund under Chapter 101, in which case the annual insurance premium under that Chapter shall apply in lieu of the capital reserve fee provided herein), upon issuance and annually thereafter (in advance) for so long as the loan remains outstanding, the applicant must in pay a capital reserve fund fee of up to 2% of the amount of the loan benefiting from a capital reserve fund.

The chief executive officer may require the user to reimburse the Authority for its out-of-pocket expenses in connection with issuance, servicing or monitoring of the securities, including without limitation charges of special counsel and costs of copying, mailing, phone calls, advertising and travel.

The applicant may be required to pay interest on the loan up to the maximum rate allowed under Federal law, including any spread or interest rate override.

[Repealed]

[Repealed]

[Repealed]

8-A. [Section repealed May 15, 1990]

Housing. The Authority will not provide financing from proceeds of revenue obligation securities issued by the Authority for any housing which is eligible for financing by the Maine State Housing Authority except with respect to property which the Authority has acquired or may acquire on account or in anticipation of imminent or actual default under the mortgage insurance programs.

Major Business Expansion Projects. No application for a major business expansion project will be approved unless the Authority determines that the applicant is creditworthy and there is a strong likelihood that the revenue obligation securities will be repaid through the revenues of the project and any other sources of revenues and collateral pledged to the repayment of those securities. In order to make this determination, the Authority shall consider those factors necessary to measure and evaluate the sufficiency of the pledged revenues to repay the obligations, including:

A. Whether individuals or entities obligated to repay the obligations have demonstrated sufficient revenues from the project or from other sources to repay the obligations, and a strong probability that those revenues will continue to be available for the term of the revenue obligation securities;

B. Whether the applicant demonstrates a strong probability that the project will continue to operate and provide the public benefits projected to be created for the term of the revenue obligation securities;

Whether the applicant demonstrates that the benefits projected to be created by the project are enhanced through the use of financing assistance from the Authority;

Whether the applicant's creditworthiness is demonstrated by such factors as historical financial performance, management ability, its plan for marketing its product or service and its ability to access conventional financing;

Whether the applicant meets or exceeds industry average financial performance ratios commonly accepted in determining creditworthiness in that industry;

Whether the applicant demonstrates that the need for Authority assistance is due to the reduced cost and increased flexibility of the financing for the project that result from Authority assistance and not from an inability to obtain necessary financing without the capital reserve fund security provided by the Authority;

Whether collateral securing the repayment obligation is reasonably sufficient under the circumstances; and

Whether the applicant demonstrates that any project which claims a projected retention of jobs is one where those jobs are in jeopardy of being lost to the State without the Authority's financing.

10-A. Energy Distribution System Projects. In addition to any other applicable requirements of this rule, no Energy Distribution System Project will be approved unless the following conditions are met:

In the case of an energy distribution system project regulated by the Public Utilities Commission with respect to rates or terms of service or that requires, for construction or operation, authorization or certification from the commission:

• • 1. The energy distribution system project has received all authorizations or certifications from the Public Utilities Commission necessary for construction and operation of the project. The authority may issue a certificate of approval for a project that has received conditional approvals or certifications from the commission, except that the authority's certificate becomes legally effective only upon fulfillment of the conditional provisions of the commission's certificates or approvals. If the commission has approved rates to be charged by the project or has issued a certificate of public convenience and necessity for the project, the authority shall take into consideration any findings and conclusions of law of the commission, including any findings and conclusions pertaining to the need for the project and the financial viability of the project; and 2. The authority has reviewed and considered any comments provided by the Director of the Governor's Office of Energy Independence and Security and the Public Advocate.

The Authority has determined that the applicant is creditworthy and that there is a reasonable likelihood that the revenue obligation securities will be repaid through the revenues of the project and any other sources of revenues and collateral pledged to the repayment of those securities. In order to make these determinations, the authority shall consider such factors as it considers necessary and appropriate in light of the special purpose or other nature of the business entity owning the project and the specific purposes of the project to measure and evaluate the project and the sufficiency of the pledged revenues to repay the obligations, including, but not limited to:

Whether the individuals or entities obligated to repay the obligations have demonstrated sufficient revenues from the project or from other sources to repay the obligations and a reasonable probability that those revenues will continue to be available for the term of the revenue obligation securities;

Whether the applicant demonstrates a reasonable probability that the project will continue to operate and provide the public benefits projected to be created for the term of the revenue obligation securities;

Whether the applicant's creditworthiness is demonstrated by factors such as its historical financial performance, management ability, plan for marketing its product or service and ability to access conventional financing;

Whether the applicant meets or exceeds industry average financial performance ratios commonly accepted in determining creditworthiness in that industry;

Whether the applicant demonstrates that the need for authority assistance is due to the reduced cost and increased flexibility of the financing for the project that result from authority assistance and not from an inability to obtain necessary financing without the capital reserve fund security provided by the authority;

Whether collateral securing the repayment obligation is reasonably sufficient under the circumstances;

Whether the proposed project enhances the opportunities for economic development;

The effect that the proposed project financing has on the authority's financial resources;

The financial performance of similar projects;

The need for the project, as determined by the Public Utilities Commission and as indicated by any comments provided by the Director of the Governor's Office of Energy Independence and Security, other public officials and members of the public;

The nature and extent of customer commitment to use the project or the fuel or energy the project distributes or transmits;

The cost advantages to end users of the fuel or energy to be distributed or transmitted by the project, to the extent those advantages may affect market penetration by the project;

The nature and extent of the applicant’s equity contribution to payment of the costs of the project; such a contribution may not be less than 25% of the expected cost of the project; and

Whether it is prudent for the authority to provide the requested financing.

Notwithstanding any other provision of this Rule, the Board of Directors of the Authority must find the conditions of this Section 10-A have been met.

Simultaneous Sale of Securities. The Authority may provide financing by selling simultaneously more than one issue of its revenue obligation securities.

Location of Collateral. In the case of Major Business Expansion Projects, Energy Distribution System Projects or other projects that carry Authority credit enhancement (including loan insurance) or that require an allocation of State Bond Ceiling, real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of revenue obligation securities shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of revenue obligation securities shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral and shall be stored or berthed in the State when not in use. Other types of collateral constituting a significant portion of collateral for repayment of revenue obligation securities shall be owned by or provided for the benefit of a person or business association with a place of business in the State.

Refunding Securities. With respect to any issue of revenue refunding securities to refund securities issued under current law or any predecessor provision, the Authority will not ordinarily require issuance of a new certificate of approval where there is no expansion of the project and no increase in the outstanding principal amount of the securities.

Credit Enhanced/§1053 Bonds

A. Where an applicant requests that revenue obligation securities be secured pursuant to 10 M.R.S.A. §1053, or otherwise requests Authority credit enhancement for securities, the applicant shall submit an application. If the project seeks credit enhancement solely from the Loan Insurance Reserve Fund or Mortgage Insurance Fund, the applicant shall submit an application pursuant to the Authority's Mortgage Insurance Program Rule (Chapter 101), and the provisions of that rule shall apply in addition to those of this rule, except where expressly contradicted by this rule in which case the provisions of this rule shall govern. For all other requests for credit enhancement, the applicant shall submit an application providing all of the materials required for an application for Loan Insurance under Chapter 101, and any other materials required under this rule. For all credit enhanced projects, the criteria set forth in Section 5 of Rule 101, and Section 7 of this Rule shall apply to consideration of the application. In addition, for applications related to Major Business Expansion projects, the criteria in Section 10, above, and for Energy Distribution System Projects, the criteria in Section 10-A above, shall apply.

1. [Repealed]

[Repealed]

[Repealed]

4. [Repealed]

B. Pursuant to the capital reserve contract or other documentation, the Authority will require the applicable trustee or bond purchaser to notify the Authority of any default by the borrower. After passage of a period of time specified in the capital reserve contract or other documentation and upon performance of such obligations by the trustee as the Authority may by contract require, the Authority may require that it have the following options:

Cure one or more defaults up to a stated limit;

2. Purchase the entire loan on the terms specified in the contract and call the applicable bonds;

3. Arrange for payment of the remaining balance of the capital reserve fund liability, either in one lump sum or over the original term of the defaulted loan;

4. Such other options as the contract or documentation may provide

C. The Authority may select an insurer or letter of credit issuer to provide credit enhancement for a bond issue, with or without the backing of the Authority's authority under 10 M.R.S.A. §1053. Borrowers shall be required to pay any fees and expenses charged by the provider of credit enhancement.

D. In exercising the debt management powers of the Authority, the chief executive officer of the Authority shall be authorized to commit the Authority to enter into transactions or agreements in the form of interest rate swaps, rate exchanges, and such other such transactions or agreements as are necessary or desirable, in the opinion of the chief executive officer of the Authority, to reduce financing costs or to reduce the risk of price changes or interest rate fluctuations, including, but not limited to the purchase of financial futures contracts, options or other transactions which constitute offsetting positions with respect to such interest rate swaps or rate exchanges, all as shall not be inconsistent with the purposes of the Act.

A borrower shall also reimburse the Authority for its out-of-pocket expenses in connection with processing and underwriting an application for credit enhancement, including capital reserve fund security or with the capital reserve fund, including any fee payable in connection with servicing the loan, and all expenses in connection with the bond issue, including without limitation charges of consultants and counsel and costs of sale of bonds, copying, mailing, phone calls, advertising and travel.

F. Where application is made after issuance to obtain the Authority's and/or trustee's consent to transfer of collateral, if any, alteration of rights or other matters, the Authority may charge the borrower for the cost of the Authority's staff and trustee's staff utilized to review the application and for the Authority's and trustee's out-of-pocket expenses in connection with the application, including without limitation, charges of counsel.

G. Where the credit enhanced loan is projected in whole or in material part to finance a project involving construction or substantial renovation of a facility, and where such facility is a substantial part of the collateral for the insured Loan or is required to be functional to generate cash flow necessary to repay the loan, credit enhancement shall not be effective until construction is completed and all costs of construction are paid, unless the Loan is otherwise adequately secured or the completion of construction is adequately ensured by a Performance Bond, such that the Authority determines, in its discretion, that the risk of loss on account of construction related issues is de minimus .

14-A. Limited Applicability of the Rule to Taxable Issues: Except in the case of Major Business Expansion Projects or Energy Distribution System Projects, when an applicant requests that the interest on any issue of revenue obligation securities be includable in the gross income of the holders of the bonds, the following provisions of the Rule shall not apply to such application: 2(E), 2(G), 2(I), 2(J), 2(L), 3, 4, 5, and 6. Provided, however, that these exclusions shall not obviate the requirements of any other rule which might apply.

14-B. Provisions applicable only to tax-exempt bond issues. When application is made to the Authority to issue tax-exempt bonds, the Authority may contract with an underwriter for assistance in marketing the bonds and with bond counsel, and may select a trustee for the bondholders. All such selections shall be based primarily on demonstrated experience and ability on tax-exempt issuances. The Authority shall, in addition to the other requirements of this Rule, determine that the proposed financing qualifies as a tax-exempt bond under applicable provisions of the Internal Revenue Code, and shall require that the borrower covenant to take such action as may be necessary to preserve the tax-exempt status of the bonds.

15. Implementation. The members delegate to the chief executive officer the authority to take any action, in the name and on behalf of the Authority, necessary or convenient to carry out this program and any financing pursuant to this Rule and the Act. Such actions include making any determination required by this Rule and the Act and signing any certificate of approval, inducement certificate or agreement, endorsement of note, assignment of mortgage, security agreement, loan agreement, trust indenture and other document or certificates necessary or convenient for carrying out this program and any financing. The chief executive officer shall also be authorized to enter into any transactions or agreements in the form of rate swaps, rate exchanges, and other transactions or agreements that the chief executive officer determines appropriate to reduce the risk of price changes with interest rate fluctuations. The chief executive officer may not delegate the responsibility of signing any certificate of approval or inducement certificate or agreement to any other person. For the purposes of this Rule, the chief executive officer shall be defined as the chief executive officer of the Authority, or any person acting under the supervisory control of the chief executive officer.

16. Appeal to the Members. If an application for a certificate of approval is denied by the chief executive officer, the user shall have the right to appeal the decision of the chief executive officer to the members of the Authority. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within twenty days after the date on which the chief executive officer mailed the notice of decision to the user. The appeal shall be heard at a meeting of the members, and the user must be present to support the appeal. The members ordinarily meet once each month. The appeal shall be based on the record before the chief executive officer on the date of the decision. The decision of the chief executive officer shall be final unless seven or more members determine that the decision by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §§ 969-A(14); 1043, 1044, 1053, 1054
• EFFECTIVE DATE: June 5, 1984
• AMENDED: October 22, 1984
• AMENDED: January 18, 1985
• AMENDED: May 8, 1985
• AMENDED: June 11, 1985
• AMENDED: June 30, 1985
• AMENDED: December 28, 1985
• AMENDED: April 20, 1986
• AMENDED: September 22, 1986
• AMENDED: November 4, 1987
• AMENDED: May 29, 1988
• AMENDED: May 15, 1990
• AMENDED: August 23, 1994 (EMERGENCY)
• AMENDED: June 11, 1995
• AMENDED: October 29, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.
• AMENDED: January 26, 2000
• AMENDED: August 22, 2005 – filing 2005-340
• AMENDED: April 1, 2010 – Amendment 16, filing 2010-114 (EMERGENCY)
• AMENDED: June 13, 2010 – Amendment 16, filing 2010-221
• AMENDED: September 9, 2012 – Amendment 17, filing 2012-258
• AMENDED: March 13, 2013 – Amendment 18, filing 2013-058
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 203 Allocation of State Ceiling on Private Activity Bonds

Code Me. R. 94-457 Ch. 203 Allocation or State Ceiling on Private Activity Bonds {#sec-94-457-ch.-203 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 203}

Summary: This rule establishes policies and procedures with respect to allocations and carryforward designations of the State ceiling available to the Authority.

1. Definitions

A. "Authority" means the Finance Authority of Maine.

B. "Form 8038" means U.S. Internal Revenue Service Form 8038, Information Return for Private Activity Bond Issues, or any substitute or replacement thereof applicable to the bond issue.

C. "Solid waste energy project" means a project designed to convert solid waste to electricity or steam and to reduce substantially the use of solid waste landfills as determined by the Authority.

D. "Carryforward" shall have the same meaning as in 26 USCA § 146(f), as amended.

E. "DEP" means the Maine Department of Environmental Protection.

F. "State ceiling" means the limit established by Federal law [26 USCA § 146(d), as amended] on the amount of private activity bonds which may be issued annually by the State of Maine and any of its political subdivisions, excluding, for purposes of this rule, that portion of the limit not allocated to the Authority pursuant to applicable law or Executive Order.

G. "Private activity bonds" means, for purposes of this rule, obligations defined as private activity bonds under current Federal law and the Internal Revenue Code of 1986 other than housing or housing-related bonds.

G-1. "Professional office space" shall have the same meaning as that term is defined in Chapter 105 of the Authority's rules.

H. "Small issue bonds" means qualified small issue bonds as defined in the 26 USCA §144(a), as amended and also means, for purposes of this rule, obligations other than solid waste energy projects for which the Authority has been authorized under applicable law or Executive Order to issue allocations of the State ceiling.

2. State Allocation System

In lieu of the allocation of the State ceiling provided under Federal law, that portion of the State ceiling allocated to the Authority pursuant to applicable State law shall be allocated to issuers of private activity bonds as provided in this rule, provided that the Authority shall observe specific reservations for designated categories of projects and repooling dates pursuant to any applicable State law, and the categorical reservations in section 3 shall be subject to such law.

3. Categorical Reservations

A. [Deleted. Effective November 4, 1987).

B. Twenty-five million dollars ($25,000,000) of the State ceiling is reserved until December 24 of each year for small issue bonds.

C. During the period from December 24 through December 31 of each year, there will be no categorical reservations of the State ceiling.

4. Small Issue Restrictions

Small issue bonds must comply with applicable provisions of Federal and State law. In addition, no State ceiling allocation will be made for the following projects or bond issues:

A. Motels, hotels or other facilities charging for overnight transient accommodations, other than full service hotels containing meal service facilities and convention facilities which will be located in and result in rehabilitation or improvement of buildings which are unoccupied, and which meet the requirements of 10 M.R.S.A. §§ 1041-A(4) or 1061-A(3).

B. Projects consisting primarily of storage or warehouse facilities, unless, at the time application is made to the Authority for a certificate of approval, one or more persons has agreed in writing to use an entire facility for its intended purpose for the term of the bond issue in connection with the user's primary business.

C. Projects where agreements to occupy at least 75% of the project for not less than two years (one year in the case of the State of Maine or its departments, agencies or instrumentalities) from the date of closing of the bond issue (or from the date occupancy is permitted in the case of projects involving substantial rehabilitation or new construction) do not exist at the time of Authority approval of certain bond documents. This limitation shall not apply in the case of reconstruction of existing building projects meeting the requirements of 10 M.R.S.A. §§ 1041-A(4) or 1061A(3).

D. Any project a significant element of which is space for retail sales of consumer goods for household use to customers who personally visit the space to view or obtain the goods. In determining whether a retail element of a project is significant, the Authority shall consider the principal purpose of the project, the portion of the project available for retail sales, and whether the project will provide economic benefits to the State which will be enhanced by the retail element, provided that no allocation of the Federal ceiling will be made if the space intended for retail sales exceeds 25% of the total building space available in the project. This limitation does not apply in the case of reconstruction of existing building projects meeting the requirements of 10 M.R.S.A. §§ 1041-(4) or 1061-A(3).

E. Except as permitted by 10 M.R.S.A. §§ 1041-A and 1061-A, no allocation for any project 35% or more of the building space of which, on a square footage basis, is intended to be used for professional office space.

F. Reconstruction of existing building projects which have been rehabilitated within five years before the date of the bond issue.

G. [Deleted].

H. Projects a significant purpose of which is to provide housing.

5. Restrictions on Solid Waste Energy Projects

No allocation for any solid waste energy project will be made unless the Authority has received the following with respect to the project:

A. DEP certification that all licenses and permits required by DEP with respect to the project have been issued or that none are required;

B. Power contract specifying the power price, completion deadline and any output limit;

C. Put or pay contracts for waste or waste handling agreements with municipalities and other users; and

D. Other materials demonstrating that the project will expeditiously commence installation, construction and operation.

6. Reservations for Solid Waste Energy Projects

A. No more than 35 days before the scheduled date of closing of a series of bonds for a solid waste energy project, an issuer may provide the Authority with the following:

i. A copy of draft Form 8038 containing the following information: Issuer's name and address, Part I information, and Part V information,

ii. Certification of bond counsel to the issuer of the scheduled bond closing date,

iii. Certification of bond counsel to the issuer that the interest on the bonds will be exempt from Federal taxation under applicable law provided an allocation of the State ceiling is obtained, and

iv. The items described in subsection A, B, C and D of section 5, or satisfactory evidence that such items will be received within 35 days.

B. If requested by the issuer, following receipt by the Authority of the items described in Subsection A of this section 6, the Authority may reserve for the project for one or more periods not exceeding in total 35 days for any one project in any one calendar year, the lesser of the amount of the bonds or the amount remaining unallocated. or unreserved for other projects or categories of projects under the State ceiling, provided that in the event the Authority determines that the sum of the allocations expected to be requested for solid waste energy projects in any calendar year exceeds the allocation of State ceiling anticipated to be available for such projects in that calendar year, the Authority may, in its discretion, award the issuer a partial reservation based on the minimum amount necessary for the project to commence implementation without substantial financial prejudice, as reasonably determined by the Authority, or on such other equitable basis as the Authority may deem necessary or desirable.

C. [Deleted].

D. Reservations issued pursuant to this section prior to August 15, 1986 shall be of no force or effect.

E. In order to be considered as a potential issuer for purposes of this section or section 7.C, solid waste energy projects may notify the Authority of their intent to issue private activity bonds, which notice shall include the amount anticipated to be issued and a detailed schedule indicating steps remaining prior to anticipated closing. The Authority may require such further information as it deems necessary in order to determine when such project is likely to require an allocation.

6-A. Reservations for Small Issue Bonds

From that portion of the State ceiling reserved for small issue bonds, the Authority may issue specific reservations for projects in accordance with the following procedure:

A. If the Authority has not made the election under subsection H of this section 6-A with respect to all or part of any calendar year, all applications for projects which do not have a valid and effective reservation under this section at the time of such election will be ranked against each other according to the following criteria:

i. Number of full time direct jobs created in the State per dollar of small issue bond financing. For purposes of this section, full time jobs shall be jobs providing not less than 1,820 hours of paid employment per year, and shall not include temporary construction jobs. This criterion will be given double weight.

ii. Number of full time direct jobs retained and number of part time jobs created and retained per dollar of small issue bond financing. This criterion will be given single weight.

iii. Economic impact of the project as measured by:

(a) projected annual payroll of all direct jobs created or retained per dollar of small issue bond financing, and

(b) estimated annual dollar volume of sales from project to customers outside the State per dollar of small issue bond financing. This criterion will be given single weight.

iv. Impact on economy of distressed areas as measured by:

(a) employment percentage change in the labor market area of the project (as defined by the Maine Department of Labor) minus five year population percentage change in that labor market area over the five most recent years for which numbers are available, and

(b) labor market area unemployment rate less statewide average unemployment rate, using most recent annual figures. This criterion will be given single weight.

v. Other considerations justifying giving increased weight to a project based on public policy goals. This factor will be given half weight.

B. The Authority may require such information and certification from each applicant as it deems necessary or desirable in order to verify or determine the applicability of each of the criteria to each applicant.

C. Each project shall be given a numerical ranking on each criterion and an overall ranking equal to its average ranking on all criteria as weighted under subsection A.

D. Under subsection A, paragraph v, projects shall be ranked according to the number of the following considerations which are applicable to each project, as determined by the Authority:

i. The project will result in the rehabilitation of an existing building at least 50 years old, which is located in an existing commercial area of a municipality in which a substantial public benefit will result from rehabilitation, as certified by an authorized official representing the municipality;

ii. The project will provide or promote expanded markets for Maine natural resource products or increases the productivity of a textile, apparel or footwear manufacturer;

iii. The project involves the sale or distribution of goods and the project will obtain 50 percent or more of its new material, supplies and inventory from unaffiliated Maine suppliers; and

iv. The project will make a significant contribution to the protection of the environment of the State.

E. Projects will receive reservations of the State ceiling in rank order to the extent of the State ceiling then available for small issue bonds, as designated by the Authority. Reservations for particular projects shall lapse on the earlier of:

i. The date on which DEP denies an application for a license or permit required for the project;

ii. The date on which the Authority denies an application for a certificate of approval for a project;

iii. A date subsequent to the reservation established by the Authority or applicable Executive Order as the date on which reservations lapse; or

iv. December 24 of each calendar year.

F. [Deleted).

G. [Deleted].

H. At any time that the members of the Authority determine that the State ceiling available for small issue bonds is equal to or exceeds the reasonably foreseeable demand for such State ceiling for small issue bonds, the Authority may elect to issue reservations for projects for one or more periods not exceeding in total 35 days in any calendar year upon receipt of certification of bond counsel to the issuer of the scheduled bond closing date and that interest on the bonds will be exempt from Federal income taxation under applicable law provided an allocation of State ceiling is obtained, which reservation shall be available only to those projects which have an unexpired certificate of approval from the Authority and which have obtained all necessary DEP approvals or certification that none are required. Upon the election by the Authority to proceed under this subsection, this procedure shall be followed in lieu of the procedure set forth in subsection A through E of this section until the Authority terminates the election. Reservations issued under this subsection shall lapse on the earlier of:

i. A date subsequent to the reservation established by the Authority or applicable Executive Order as the date on which reservations lapse; or

ii. December 24 of each calendar year.

7. Notice of Issue and Allocation

A. Within 5 business days after the date of closing of any issue of private activity bonds, the issuer shall cause the Authority to receive the following:

i. A copy of Form 8038 completed and signed on behalf of the issuer,

ii. Certification of bond counsel to the issuer of the date on which the bonds were closed, issued and delivered and bond proceeds were paid over by the bond purchasers, and

iii. Certification of bond counsel to the issuer that the bonds are exempt from Federal income tax conditioned upon receipt of an allocation of the State ceiling.

B. With respect to any small issue project for which the Authority has issued a reservation pursuant to section 6-A which is in effect on the date of receipt by the Authority of documents required pursuant to subsection A, or with respect to any small issue project regardless of whether it has a reservation if the Authority has elected to proceed under subsection H of section 6-A, the Authority will, by written notice, allocate to the issuer an amount of the State ceiling equal to the lesser of

(i) the amount of such bond issue or

(ii) the amount set forth in such reservation or, if no reservation, the remaining amount of the available State ceiling unallocated and unreserved for other projects or categories of projects.

C. With respect to any solid waste energy project for which the Authority has issued a reservation pursuant to section 6 which is in effect on the date of the request for allocation, the Authority will, upon receipt of the items specified in subsection A, award by written notice an allocation equal to the lesser of (i) the amount of the reservation, or (ii) the amount of the bond issue. With respect to solid waste energy projects for which a reservation is not in effect, the Authority shall award an allocation equal to the lesser of the amount requested or the amount of the State ceiling, remaining unallocated and unreserved; provided that in the event the Authority determines that the sum of the allocations expected to be requested for solid waste energy projects in any calendar year exceeds the allocation of State ceiling anticipated to be available for such projects in that calendar year, the Authority may, in the exercise of its discretion, award one or more partial allocations which shall be initially awarded based on the minimum amount necessary for the project or projects receiving partial allocations to commence implementation without substantial financial prejudice, as reasonably determined by the Authority or on such other equitable basis as the Authority may deem necessary or desirable. Supplemental allocations may be awarded upon receipt of evidence demonstrating compelling need for the allocation to the Authority's satisfaction, or on such other equitable basis as the Authority may deem necessary or desirable. Such supplemental allocations shall have priority over initial allocations where the Authority is satisfied that the need is compelling.

D. [Deleted].

8. Carryforward Projects

A. To the extent that the available State ceiling is not fully used in any one calendar year, allocation of the State ceiling amounts to carryforward projects will be made first to solid waste energy projects which have reservations pursuant to section 6, second to other waste energy projects, and third to other projects or uses eligible for the carryforward.

B. Solid waste energy projects will be ranked for allocation purposes based on the following considerations:

i. DEP or State priorities for landfill improvement or elimination;

ii. Existence of an inducement resolution or other official action by the issuer for the project;

iii. Power contract specifying the power price, completion deadline and any output limit;

iv. Put or pay contracts for waste or waste handling agreements with municipalities and other users, taking into consideration the number of municipalities or users which have executed such agreements, the population of the area to be served, and the likely cost to each user;

v. A certification by DEP that all licenses and permits required by DEP with respect to the project have been issued or that none are required;

vi. A firm, valid and binding bond purchase agreement wherein the purchaser agrees to purchase a stated principal amount of bonds for the project;

vii. A letter supporting the project from the chief municipal official of the municipality in which the project will be located;

viii. A certification of bond counsel to the issuer that the bonds will be exempt from Federal income tax, conditioned upon receipt of an allocation of the State ceiling;

ix. Contracts for design, construction, operation and maintenance of the project,; and

x. Other materials demonstrating that a bond issue will close, as determined by the Authority, within a stated time and that installation, construction and operation of a project will be expeditiously commenced.

C. Other projects or uses eligible for a carryforward allocation will be ranked based on the following considerations:

i. Existence of an inducement resolution or other official action of the issuer;

ii. A certification by DEP that all licenses and permits required by DEP with respect to the project have been issued or that none are required (not applicable for student loans);

iii. A letter supporting the project from the chief municipal official of the municipality in which the project will be located (not applicable for student loans);

iv. A firm, valid and binding bond purchase agreement wherein the purchaser agrees to purchase a stated principal amount of bonds for the project;

v. A certification of bond counsel to the issuer that the bonds will be exempt from Federal income tax, conditioned upon receipt of an allocation of the State ceiling; and

vi. Other materials demonstrating that a bond issue will close, as determined by the Authority, within a stated time and that installation, construction and operation of a project will be expeditiously commended or that any program will be expeditiously commenced.

D. Applications for carryforward elections must at least contain an inducement resolution or other official action and the certification of bond counsel referred to in this section and must be provided to the Authority on or before December 15 of each year unless otherwise agreed by the Authority.

E. Notwithstanding anything in this section to the contrary, the Authority may, in its discretion, award carryforward allocations to eligible projects on a pro rata or other equitable basis if the Authority determines that ranking such projects would not be equitable under the circumstances, provided that the priority for solid waste energy projects shall remain unless otherwise directed by applicable law or Executive Order.

9. Implementation

The members delegate to the chief executive officer the authority to take any action, in the name and on behalf of the Authority, necessary or convenient for making, or for rejecting any application for, any allocation, carryforward designation or reservation of the State ceiling and for making effective and efficient use of the State ceiling in accordance with this rule.

10. Appeal to the Members

In the event that an application for an allocation, reservation for an allocation or a carry forward designation is rejected by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members of the Authority. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within fourteen days after the date on which the chief executive officer mailed the notice of decision to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The members ordinarily meet once each month. The appeal shall be based on the record before the chief executive officer on the date of the decision. The decision of the chief executive officer shall be final unless the members determine that the decision by the chief executive officer was arbitrary, capricious or an abuse of discretion in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application. No decision of the members to overturn or modify any decision of the chief executive officer shall result in the rescission, cancellation or other disturbance of any allocation, reservation or allocation or carryforward designation awarded by the chief executive officer. Notwithstanding the pendency of any appeal, the Authority may, in its sole and uncontrolled discretion, unless and until stayed by valid order of a Court, continue to award allocations, reservations of allocations and carryforward designations to other applicants pursuant to this rule.

11. Transition Rules

A. Section 4 of this rule applies where an inducement resolution was adopted or other official action was taken June 12, 1985 or later unless otherwise provided.

B. The provisions of subsection 4.C pertaining to term does not apply where an inducement resolution was adopted or other official action was taken on or before December 31, 1985, provided that an allocation is made for the bond issue on or before December 31, 1986.

C. [Deleted].

D. [Deleted).

E. Reservations or allocations issued for bond issues which do not require an allocation of the State ceiling shall lapse and be of no further force or effect upon enactment of Federal legislation exempting such issues from the State ceiling, and may be reallocated in accordance with this rule.

12. Waiver of Rule

The Authority may waive any requirement or extend any time limit of this rule, except to the extent that the requirement or time limit is mandated by applicable law or Executive Order, in cases where deviation from the rule is insubstantial.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §§ 969-A(14), 980-A
• EFFECTIVE DATE: December 28, 1985, original rule
• EFFECTIVE DATE: December 28, 1985, emergency rule adding section 8.E
• AMENDED: December 28, 1985, emergency rule adding section 8.E
• AMENDED: March 9, 1986, amended sections 7.C and 8.E
• AMENDED: April 5, 1986, amended section 4 regarding 50 year buildings
• AMENDED: April 19, 1986, various amendments
• AMENDED: October 16, 1986, emergency rule made various amendments
• AMENDED: January 7, 1987, various amendments superseding emergency rulemaking
• AMENDED: November 4 1987, amended section 1, 2, 3 and 4(E)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 6, 1996 - minor spelling
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 204 Secondary Market Program

Code Me. R. 94-457 Ch. 204 Secondary Market Program {#sec-94-457-ch.-204 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 204}

Summary: This rule establishes the procedures, standards and fees applicable to those applying for and benefitting from the Authority's secondary market program for insured loans.

1. Definitions.

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. § 961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. “Cap" means the maximum stated amount of liability of the Authority under any Program Document, stated as such, to any Holder.

2. "Certificate" means, as appropriate or as the context may require, the instrument evidencing ownership of an entire Guaranteed Portion or the instrument evidencing a fractional undivided ownership interest in a pool of Guaranteed Portions, each of which shall be an "insured certificate”.

3. "Chief Executive Officer” means, the Authority's chief executive officer or a person acting under the supervisory control of the Chief Executive Officer.

4. “Eligible Loan" means a loan insured under the Authority's Mortgage Insurance Program ("Chapter 101") or Small Business and Veterans' Small Business Mortgage Insurance Programs ("Chapter 103'), except asset-based or revolving working capital loans or any other working capital loan which is not on regular amortization schedule for a period greater than one year

5. "Fiscal and Transfer Agent" or "FTA" means the Authority's agent in carrying out the central registration, initial settlement, and paying functions with respect to

(I) The Guaranteed Portions sold and

(ii) Certificates.

The FTA has the responsibility for issuing, on behalf of the Authority, Certificates.

6. “Guaranteed Portion” means that portion of an Eligible Loan which has been insured by the Authority.

7. "Holder" is a person or organization other than the originating Lender who holds the Guaranteed Portion of an Eligible Loan with no servicing responsibilities. When a Lender assigns the Guaranteed Portion to an assignee, the assignee becomes a Holder only when a Program Document in substance and content acceptable to the Chief Executive Officer is executed.

8. "Lender” is the person or organization making and servicing an Eligible Loan. The Lender is also the party requesting insurance of an Eligible Loan.

9. “Loan Insurance Agreement" means the agreement between a Lender and the Authority to insure loans pursuant to the Small Business and Veterans' Small Business Mortgage Insurance Programs or to insure a specific loan pursuant to the Mortgage Insurance Program.

10. “Loan Insurance Authorization" means a letter from the Chief Executive Officer to a Lender agreeing to insure a loan to a Borrower on the terms and conditions and subject to the requirements stated therein.

11. "Loan Note Guarantee” means the agreement executed by the Chief Executive Officer setting forth the obligations of the Authority to the Holder of a Certificate evidencing either the Guaranteed Portion of an individual Eligible Loan or a fractional undivided interest in a specific pool of Guaranteed Portions.

12. “Program” means the Secondary Market Program governed by this rule and the Act.

13. “Program Documents” mean any and all instruments and documents acceptable in form and content to the Chief Executive Officer prepared for use in and to effectuate the Program.

14. "Secondary Market” means any Holder which acquires the insured portion of Eligible Loans insured by the Authority under Chapter 101 or Chapter 103, or both, and those portions of the Act pursuant to which those rules have been promulgated.

15. "Unguaranteed Portion” means that portion of an Eligible Loan which is not insured or guaranteed by the Authority.

16. Application Procedures

A. A Lender shall submit an application which complies with the requirements of this Rule on such forms and in such numbers as may be specified and with such supporting information as shall be required by the Chief Executive Officer.

B. The Chief Executive Officer shall be responsible for making application forms available and assisting Lenders in preparing applications.

C. No application will be considered complete unless substantially all questions are answered, substantially all supporting information is provided and the proper application fee is provided.

D. Ordinarily, an application must be received by the Chief Executive Officer at the same time an application under the Small Business and Veterans' Small Mortgage Insurance Program or the Mortgage Insurance Program is received.

3. Application Contents

A. General Information. The Lender shall submit with its application an application for insurance under either Chapter 101 or Chapter 103, unless there is already insurance under either Chapter.

B. Other. The Lender shall submit such other evidence or information as the Chief Executive Officer or the application form may require.

4. Approval/Rejection.

Any loan disapproved for loan insurance shall be automatically disapproved for the Program, and any loan approved for loan insurance shall be automatically approved for the Program unless the Chief Executive Officer shall prepare a written rejection briefly describing the proposed project, any significant communications between the Lender and the Chief Executive Officer, an evaluation of the application and the reasons for the disapproval. There shall be appended to the rejection portions of the application any written communications concerning the project which are deemed significant by the Chief Executive Officer. The members may, consistent with the Freedom of Access Act, 1 M.R.S.A. § 401 and following, and the Act, review the application in executive session.

5. Criteria and Considerations.

A. An application will not be approved unless the Authority determines that the appropriate criteria and considerations under Chapter 101 or 103, as appropriate, have been met and satisfied.

B. No application will be approved for a loan for which insurance under Chapter 101 or 103 is already in effect unless the Authority determines that the Eligible Loan will continue to be serviced as required by the Authority and unless the Authority determines that the Eligible Loan proceeds are still being used in connection with an eligible enterprise.

6. Payments by the Authority

Subject to the provisions of this Rule, the Authority will agree to pay to:

A. Any Holder, subject to the Cap on such Guaranteed Portion, 100 percent of any loss sustained by such Holder on the Guaranteed Portion and on interest due on such portion.

B. The Lender, in accordance with the Loan Insurance Authorization and Loan Insurance Agreement between the Authority and the Lender.

7. Loan Servicing.

Lender will be responsible for servicing the entire Eligible Loan, and Lender will remain mortgagee and/or secured party of record notwithstanding the fact that another party may hold the Guaranteed Portion of the Eligible Loan.

8. Priorities.

The entire Eligible Loan will be secured by the same security with equal lien priority for the Guaranteed Portion and the Unguaranteed Portion of the Eligible Loan. The unguaranteed portion of the Eligible Loan will not be paid first nor given any preference or priority over the Guaranteed Portion.

9. Faith and Credit.

Each Loan Note Guarantee will constitute an obligation supported by the faith and credit of the State of Maine pursuant to the Act and be incontestable except for fraud or misrepresentation of which Lender or any Holder has actual knowledge at the time it became such Lender or Holder or which Lender or any Holder participates in or condones. If any note to which the insurance relates provides for payment of interest on interest, then the Loan Note Guarantee will be void. In addition, a Loan Note Guarantee will be unenforceable by Lender (but not the Holder) if Lender fails to collect from Borrower and remit to the Authority the insurance premiums as and when payable or to the extent any loss is occasioned by the violation of usury laws, negligent servicing, or failure to obtain the required security regardless of the time at which the Authority acquires knowledge of the foregoing. Any claim by Lender for losses occasioned will be unenforceable to the extent that loan funds are used for purposes other than those specifically approved by the Authority in its Loan Insurance Authorization. Negligent servicing is defined as the failure to perform those obligations more fully set forth in the Loan Insurance Agreement and related Loan Insurance Authorization, and by way of illustration and not of limitation includes services which a reasonably prudent lender would perform in servicing its own portfolio of loans that are not insured or guaranteed. The term includes not only the concept of a failure to act but also not acting in a timely manner or acting in a manner contrary to the manner in which a reasonably prudent lender would act up to the time of Eligible Loan maturity or until a final loss is paid. A Loan Note Guarantee will be executed solely for the purpose of the Program and for the information and use of a Holder, as defined herein. As between the Lender and the Authority, the Loan Insurance Agreement will be controlling.

10. Rights and Liabilities.

The guarantee and right to require purchase of a Certificate will be directly enforceable by Holder notwithstanding any fraud or misrepresentation by Lender or any unenforceability of the Loan Note Guarantee for that Certificate by Lender. Nothing contained in the Loan Note Guarantee will constitute any waiver by the Authority of any rights it possesses against the

Lender. Lender will be liable for and will promptly pay to the Authority any payment made by the Authority to Holder which if such Lender had held the Guaranteed Portion of the Eligible Loan, the Authority would not be required to make.

11. Payments.

Lender will receive all payment of principal, or interest, on account of the entire Eligible Loan and will promptly remit the amount allocable to the Guaranteed Portion either to a FTA designated by the Authority, which shall promptly remit to Holder its pro rata share thereof determined according to its interest in the Eligible Loan or, if there be no FTA, then to Holder its pro rata share thereof determined according to its interest in the Eligible Loan, less only Lender's servicing fee.

12. Protective Advances.

Protective advances made by Lender will with respect to an Eligible Loan be guaranteed against a percentage of loss to the same extent as provided in the related Loan Note Guarantee notwithstanding the Guaranteed Portion of such Eligible Loan that is held by another.

13. Repurchase by Lender.

Any repurchase by the Lender of a Guaranteed Portion shall be for an amount equal to the unpaid Guaranteed Portion of principal and accrued interest less the Lender's servicing fee, if any. The Authority's liability for accrued interest on a Guaranteed Portion is limited to the extent provided in the Program Documents. The Lender is encouraged to repurchase the Eligible Loan to facilitate the accounting for funds, resolve the problem, and to permit the borrower to cure the default, where reasonable. The Lender shall notify the FTA and the Authority of its decision.

14. The Authority Repurchase.

A. If Lender does not repurchase as provided by paragraph 13 hereof, the Authority will purchase from Holder the unpaid principal balance of the Guaranteed Portion together with accrued interest to date of repurchase less Lender's servicing fee, as provided, and subject to the limitations set forth, in the Program Documents. The Authority will be subrogated to all rights of Holder upon repurchase.

B. The Authority shall promptly notify the Lender of its receipt of a demand for payment of a Guaranteed Portion. The Lender shall promptly provide the Authority with the information necessary for the Authority's determination of the appropriate amount due the Holder. If there is any discrepancy between the amount claimed by the Holder and the information submitted by the Lender, the Authority will notify both parties, who must resolve the conflict before payment by the Authority will be approved. Upon receipt of the appropriate information, the Authority will review the demand, issue the appropriate check and remit the required payment as provided in the related Program Documents.

C. The Lender shall agree to consent to the purchase by the Authority and agrees to furnish on request by the Authority a current statement certified by an appropriate authorized officer of the Lender of the unpaid principal and interest then owed by Borrowers on the Eligible Loan. The Lender shall agree that any purchase by the Authority does not change, alter or modify any of the Lender's obligations to the Authority arising from said Eligible Loan or guarantee nor does it waive any of the Authority's rights against Lender, and that the Authority will have the right to set off against Lender all rights inuring to the Authority as the Holder against the Authority's obligation to Lender under the Loan Note Guarantee.

15. Repurchase by Lender for Servicing.

If, in the opinion of the Lender, repurchase of the Guaranteed Portion of the Eligible Loan is necessary to adequately service the Eligible Loan, the Holder shall agree to sell the portion of the Eligible Loan to the Lender for an amount equal to the unpaid principal and interest on such portion less Lender's servicing fee.

A. The Lender shall not repurchase a Guaranteed Portion from the Holder for arbitrage purposes or other purposes to further its own financial gain:

B. Any repurchase will only be made after the Lender obtains, the Authority's written approval; and

C. If the Lender does not repurchase the Guaranteed Portion from the Holder, the Authority at its option shall have the right to purchase such Guaranteed Portion for servicing purposes.

16. Custody of Unguaranteed Portion.

The Lender may retain or sell the Unguaranteed Portion of the Eligible Loan only through participation. “Participation” means the sale of an interest in the Eligible Loan wherein the Lender retains the note, collateral securing the note, and all responsibility for Eligible Loan servicing and liquidation. Sale of participations in an Unguaranteed Portion shall be subject to the limitations in the related Program Documents.

17. When Guarantee Terminates.

The Loan Note Guarantee for a Certificate will terminate automatically (a) upon full payment of the related Eligible Loan; or (b) upon full payment of any loss obligation thereunder; or (c) upon written notice from the Lender to the Authority that the guarantee will terminate 30 days after the date of notice, provided the Lender holds the Guaranteed Portion and the Loan Note Guarantee is returned to be canceled by the Authority, or (d) at such time as there is no Holder of the Guaranteed Portion of the Eligible Loan, at which such time the provisions of the Loan Insurance Agreement, shall solely apply.

18. Commitment or Rejection.

A. Upon approval of an application, a commitment for the Program will be issued as part of a Loan Insurance Authorization subject to the execution of instruments evidencing full compliance with Authority requirements and in form and content satisfactory to the Authority.

B. If, upon examination of the application and supporting information the Chief Executive Officer or the members, as applicable, reject such application, the Lender shall be so informed.

19. Premiums, Fees and Other Charges

A. In addition to other requirements, no Program commitment shall be effective until the Authority has received a commitment fee calculated as up to 2% of the insured portion of the insured Eligible Loan, for Eligible Loans other than loans insured or guaranteed under Chapter 103

B. In addition to other requirements, the Authority shall be paid a Program premium either calculated as up to 2% of the insured portion of the Eligible Loan scheduled (other than in cases of partial or full prepayment) to be outstanding on each anniversary date of the Eligible Loan or on some other date or the actual balance owed by the borrower if larger, or a one-time fee payable at inception calculated on a present-value basis. The premium shall be paid in advance for such period as specified in the Program Documents.

C. The Authority will be entitled to the full amount of the premium over the term of the Loan Note Guarantee. If the Eligible Loan is paid without loss or insurance payment by the Authority before the end of the loan term or if the Loan Note Guarantee is terminated without loss to the Authority before the end of the maximum term of the contract, the Authority may waive the balance of the premium claimed or, if the full premium was paid in advance without any discount, then the Authority may remit the balance of the premium. In order to assure that the Authority will receive the full premium, the Authority may provide in the Program Documents that the balance of any premium due may be deducted from the insurance payment of that premium escrow or investment arrangements be made.

D. The Holder’s right to receive payment with respect to a Certificate is not affected by the Lender’s or Borrower’s failure to pay the required insurance premiums to the Authority.

20. Waiver of rule.

The members or the Chief Executive Officer may waive any requirement of this rule except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial.

21. Miscellaneous.

Any approvals, reviews, determinations or findings of the Authority related to any plans, specifications, contracts, application or other documents required or contemplated by this rule or the Act are solely for the benefit of the Authority and shall not in any way constitute any approval of the adequacy of such documents or of the project.

22. Implementation/Appeal to Members

The Chief Executive Officer may approve any loan pursuant to this Program which the Chief Executive Officer may approve pursuant to the Small Business and Veteran’s Small Business Programs or the Mortgage Insurance Program. In the event that any request by a Lender is denied by the Chief Executive Officer, the Lender shall have the right to appeal the decision of the Chief Executive Officer to the members. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within twenty days after the date on which the Chief Executive Officer mailed the notice of decision to the Lender. The appeal shall be heard at a meeting of the members, and the Lender must be present to support the appeal. The members ordinarily meet once each month. The appeal shall be based on the record before the Chief Executive Officer on the date of the decision. The decision of the Chief Executive Officer shall be final unless the members determine that the decision by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the request.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. Section 969-A(5)
• EFFECTIVE DATE: April 28, 1992 (EMERGENCY)
• EFFECTIVE DATE OF PERMANENT RULE: July 21, 1992
• AMENDED: September 5, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 205 Education Loans Through Lenders Program

Code Me. R. 94-457 Ch. 205 Education Loans Through Lenders Program {#sec-94-457-ch.-205 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 205}

Summary: This rule establishes the procedures and standards by which the authority may use the proceeds of tax exempt bonds to make education loans to eligible borrowers through intermediary financial institutions. The authority may enter into agreements with eligible financial institutions which show that they will pass on the benefits of the tax exempt financing to individuals obtaining education loans funded with bond proceeds.

1. Definitions.

A. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act or the enabling legislation, shall have the meanings set forth in the Finance Authority of Maine Act or the enabling legislation, respectively, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. “Applicant” means a financial institution eligible to make education loans pursuant to the federal Higher Education Act and regulations promulgated thereunder, that has submitted an application to the authority to distribute program funds for the Authority.

C. “Authority” means the Finance Authority of Maine.

D. “Borrower” means a parent or student obtaining an education loan.

E. “Chief Executive Officer” means the authority's chief executive officer or any person acting under the supervision of the chief executive officer.

F. “Education Loan” means a loan made pursuant to the program which is made by the authority or by an eligible financial institution to a student or to a parent of a student, or both, to finance a student’s cost of attendance at an institution of higher education, and which may be funded with the proceeds of a qualified student loan bond under the federal Internal Revenue Code and regulations promulgated thereunder.

G. “Eligible Financial Institution” or “financial institution” means a financial institution authorized to do business in this state, as defined in Title 9-B, section 131(17-A) of the Maine Revised Statutes Annotated, and for the purposes of this rule, includes a credit union authorized to do business in this state as defined in Title 9-B, section 131(12-A) of the Maine Revised Statutes Annotated.

H. “Enabling Legislation” means PL 1999, ch. 443.

I. “Finance Authority of Maine Act” means 10 MRSA 961 et seq. and 20-A MRSA 11441 et seq.

J. “Institution of higher education” means any public or private nonprofit educational institution within the State, any public or private nonprofit educational institution outside of the State which is attended by residents of the State, any accredited proprietary educational institution within the State which is eligible to participate in federal student financial assistance programs pursuant to Title IV of the federal Higher Education Act, any accredited proprietary educational institution located outside the State which is attended by residents of the State and which is eligible to participate in federal student financial assistance programs under Title IV of the federal Higher Education Act that provides a program of education beyond the high school level and awards an associate, baccalaureate or advanced degree.

K. “Members” means the members of the Board of Directors of the Finance Authority of Maine.

L. “Participation Agreement” means an agreement between the Authority and any successful applicant setting forth the terms and conditions of the eligible financial institution’s disbursement and servicing of education loans for the authority.

M. “Program” means the Education Loans through Lenders Program as described in and governed by the Finance Authority of Maine Act, the enabling legislation and this rule.

N. “State” means the State of Maine.

2. Application.

A. The authority may establish a deadline for applications to use the proceeds of each issuance of tax exempt bonds.

B. Each application under this program will include the following:

1. The name of the eligible financial institution or, for an application submitted by a group of financial institutions, the name of each financial institution, the name of the financial institution primarily responsible for the application and a contact person at each financial institution in the group.

2. A request for an amount of funds to be used to make education loans to borrowers.

3. A description of the applicant’s recent history in making education loans, including its volume of loans originated in the two most recent years, its student loan servicing capabilities for its existing education loans and education loans it proposes to originate with program funds.

4. The applicant’s current financial statement in the form requested by the authority in the application or request for applications.

5. A statement by the eligible financial institution explaining how it will use the bond proceeds to benefit the inhabitants of the State. The statement should include information on any benefits passed on to borrowers as a result of using the proceeds of tax exempt bonds to fund education loans, including:

(a) Discounts in interest rate and any terms or conditions of obtaining such a discount;

(b) Targeting of loans to individuals who live in areas where there has not historically been sufficient access to education loans;

(c) Targeting of loans to low income individuals or others, who have not historically had sufficient access to education loans;

(d) Outreach services the lender will provide to borrowers;

(e) Any other benefit the applicant will provide to Maine residents.

(f) A breakdown of the purposes and amounts for which the proceeds of the bond issue will be expended.

(g) A statement from the eligible financial institution that education loans will only be made to a borrower who is:

(i) A resident of the State; or

(ii) A student attending an institution of higher education in the State; or

(iii) A borrower who previously obtained an education loan from the eligible financial institution, while a resident of the State or while attending an institution of higher education located in the State.

C. Such other information as the Authority may reasonably require, including without limitation, information required for purposes of complying with requirements of the Internal Revenue Code or the purchasers of the tax exempt bonds issued by the authority.

3. Application Evaluation Criteria.

A. In determining whether or not to approve an application of an eligible financial institution and, if approved, the amount of the bond proceeds to be disbursed by the applicant, the chief executive officer shall consider the relative public benefits to be provided by each applicant to residents of the State. The chief executive officer will evaluate applications based on the public benefit to be provided by each applicant relative to the portion of the proceeds of tax exempt bonds the applicant will receive. In determining relative public benefit the authority will consider each applicant’s total proposal, but may give additional weight to proposals that provide interest rate savings and outreach services to borrowers.

B. In determining whether to allocate all or any portion of the proceeds of bonds to an applicant for origination of loans to borrowers, the authority must first determine that the applicant will be able to comply with all requirements of the purchaser(s) of the bonds or any placement agents or underwriters.

4. Participation Agreement.

The Authority shall enter into a participation agreement with each successful applicant, which shall set out the terms and conditions of the financial institution’s receipt of an allocation of the bond proceeds. The participation agreement must require:

A. That the financial institution provide periodic reporting on the status of the loans made to borrowers with the bond proceeds;

B. That the financial institution meet certain public policy goals and provide periodic reporting on each of the public policy goals established.

C. That the financial institution will pass through repayment of the education loans by the borrower to the authority net of any reasonable expenses the authority determines the financial institution may retain for its services.

D. That the financial institution shall maintain separate books and records with respect to its participation in the program, which the authority may review in order to audit the participating financial institution’s disbursement of bond proceeds and reporting of the public benefit.

E. Such other terms and conditions as the authority may require.

5. Program Implementation and Assistance Provided.

A. The members of the authority shall approve the issuance of all revenue obligation securities to be issued by the authority. The determination of how proceeds of revenue obligation securities will be allocated shall be administered by and is delegated to the chief executive officer. The chief executive officer is hereby authorized to make the determinations required by this rule and to approve proposals by eligible financial institutions.

B. The chief executive officer may enter into an agreement with the superintendent of banking by which the authority will work with the superintendent of banking to perform an audit of participating financial institutions.

6. Expenses.

The chief executive officer may designate that a portion of the repayment by the borrower be retained by the authority for its out-of-pocket expenses in connection with the issuance of the tax exempt revenue obligation securities, including without limitation charges of underwriters, bond purchasers, rating agencies, special counsel and costs of copying, mailing, phone calls, advertising and travel.

7. Appeal to the Members.

If an application is denied by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members of the authority. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within twenty days after the date on which the chief executive officer mailed the notice of decision to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the decision. The decision of the chief executive officer shall be final unless seven or more members determine that the decision by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

History

• STATUTORY AUTHORITY: 10 MRSA §969-A(14), PL 1999, c. 443.
• EFFECTIVE DATE: October 23, 1999
• EFFECTIVE DATE: 94-457 Chapter 205 page 6

Chapter 301 Maine Job Start Program

Code Me. R. 94-457 Ch. 301 Maine Job-Start Program {#sec-94-457-ch.-301 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 301}

Summary: This rule establishes the procedures and standards applicable to borrowers and community action agencies participating in the Authority's statewide program for making low-interest loans to stimulate the development and expansion of small business. The Authority and the community action agencies may contract to provide loans of up to $10,000 to eligible borrowers for approved purposes in accordance with this rule.

1. Defined Terms. The following terms, some of which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 et seq., (the "Act") , shall have the following meanings in this rule:

A. "Advisory Board" means the job-start Advisory Board appointed by the Board of Directors of each community action agency or by the Boards of Directors of community action agencies which have jointly contracted with the Authority to administer a combined job-start program.

B. "Authority" means the Finance Authority of Maine (Act Section 963).

B.1. "Business Support Group" means a self-selected group of no less than five individuals, corporations or partnerships having community or other common ties demonstrating a common mission or purpose who are hopeful of starting or expanding separate businesses, and meet the eligibility requirements set forth in Section 4 of this rule, which group has been approved by the Authority and by the community action agency in whose area it exists.

B.2. "Business Support Group Leader" means a leader elected by a business support group from among its members to convene periodic meetings, maintain a loan register, facilitate payments due to the Authority and perform other tasks as necessary and directed by the business support group in accordance with and in furtherance of the job-start program.

C. "Chief Executive Officer" means the Authority's chief executive officer or any person acting under the supervision of the chief executive officer, unless a community action agency is to administer the Maine Job Start Program and control a portion of the job start revolving loan fund, in which case it means the community action agency's chief executive officer or any person acting under the supervision of the chief executive officer of the community action agency.

D "Commitment" means a letter from the Authority, or in the event that the community action agency is to administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then from the community action agency, to an applicant signed by the chief executive officer to make a loan to the applicant on the terms and conditions and subject to the requirements stated therein.

E. "Community Action Agency" means a local community action agency established under 22 M.R.S.A. Chapter 1477, or a combination of community action agencies which have jointly agreed to contract with the Authority to administer a combined job-start program.

F. "Contract" means a contract between the Authority and a community action agency for participation in the jobstart program, in a form prescribed by the Authority.

G. "Coordinator" means the coordinator appointed by each contracting community action agency to administer the job-start program in that region.

H. "Eligible Applicant" means an applicant who meets the eligibility requirements set forth in Section 4 of this rule.

I. "Gross Income" of an applicant means the aggregate of all income of the applicant and his or her spouse and dependents in the twelve month period prior to the application, from any and all sources, excluding foodstamps and fuel assistance, whether or not taxable, less the reasonable costs and expenses of producing that income, as approved by the Authority.

J. "Household" means the applicant and his or her spouse and dependents.

K. "Net Worth" of the applicant means, in the case of individuals, the total value of the equity of the applicant, his or her spouse, dependents and other household members in all real and personal property, excluding the applicant's principal residence and any non-liquid assets intended to be used in the business for which the job-start loan is sought, and also excluding such other items as the Authority may approve consistent with the purposes of the job-start program. In the case of a corporation or partnership, net worth shall be defined in accordance with generally accepted accounting principles, provided that the Authority may exclude such non-liquid assets as it may deem fair and reasonable consistent with the purposes of the job-start program.

2. Contract. Community action agencies may not participate in the job-start program until they have executed a Contract with the Authority in form to be prescribed by the Authority. The Contract shall contain the following terms and conditions:

A. Each community action agency shall be responsible for the implementation and administration of the job-start program in its region in accordance with the Act, this rule, the Contract and the proposal submitted by the community action agency to the Authority. Each contracting community action agency shall serve any applicant provided that if the applicant is a resident of a region in which a contracting community action agency's other programs are being administered the applicant shall apply to the contracting community action agency serving its region. If the region so served by a community action agency overlaps the region served or to be served by another community action agency which has executed a Contract or which subsequently executes a Contract, then the applicable geographic boundary established between their respective regions by the Division of Community Services shall govern in the event of any conflict.

B. The Board of Directors of the community action agency shall appoint an Advisory Board and a Coordinator, and shall ensure that the Advisory Board and Coordinator perform their appointed functions in a fair, competent and effective manner. The Advisory Board shall consist of five (5) members appointed for terms not to exceed two years, and shall contain representatives of low-income people and members with financial and business experience. The Board of Directors may appoint an alternate member to the Advisory Board who shall act as a voting member when any other Advisory Board member is absent or unable to participate because of a conflict. A majority vote of the Advisory Board shall be necessary to recommend approval of an application; a majority shall consist of no less than three (3) votes.

C. The Advisory Board shall solicit, review and consider applications from eligible applicants, shall require such additional information and impose such terms and conditions as it may deem necessary or advisable, shall provide advice and counseling to applicants and shall report on applications to the Authority in accordance with this rule.

D. The Coordinator shall be responsible for management of the regional job-start program, including assistance to applicants in preparing applications and business plans, and shall also be responsible for liaison with the Authority.

E. The community action agencies shall ensure that training is provided for their job-start program staff and that counseling is provided as necessary for loan applicants, and shall involve existing small business technical assistance and counseling programs to the extent available.

F. Each community action agency shall be responsible for thirty percent (30%) of its administrative costs of the job-start program, which costs may be derived from direct financial support other than from or through the Authority or in-kind services valued on a reasonable and consistent basis. Contracting community action agencies shall keep accurate records of both direct and in-kind support and shall report such information to the Authority upon request.

G. Each community action agency shall provide the Authority with a monthly report indicating loan recommendations made, applications under review and applications received and expected and shall keep inquiry and waiting lists.

H. Community action agencies shall be responsible for such monitoring of outstanding loans as the Authority may reasonably require, including periodic reviews of use of loan proceeds, condition of collateral and compliance with business plan. The Authority shall have primary responsibility for collection of loan payments due and enforcement of terms and conditions, but may require such reasonable nonfinancial assistance from the community action agencies as may be within their capacity, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, in which event loan collection shall be the responsibility of the community action agency.

I. In the event that a community action agency fails to carry out its responsibilities under its Contract, the Authority shall notify the Executive Director of the community action agency in writing of such failure, shall specify the actions necessary to bring the community action agency into compliance and shall state that unless the community action agency takes such actions as are necessary to bring it into compliance within sixty (60) days of the mailing of the notice by the Authority, the Contract may be terminated. A community action agency may terminate its Contract with or without cause at any time upon thirty (30) days written notice to the Authority, provided that any monetary or reporting obligations of the community action agency to the Authority shall remain in effect until satisfied.

J. Any Contract may also provide that the community action agency is to administer the Maine Job Start Program and may also provide that the community action agency is to control a portion of the Job Start Revolving Loan Fund for a period of time specified by the Authority in the Contract. The Contract may also provide that the community action agency is responsible for the administration of all existing loans made by the Authority upon the recommendation of the community action agency's advisory committee. A Contract may be renewed upon the showing of continued compliance with all requirements. The Authority may enter into a Contract with a community action agency upon the showing by the community action agency that it complies with each of the following requirements:

(1) The community action agency must have a jobstart loan board to review and make recommendations concerning loan applications. The loan board must consist of 5 members and include representatives of persons of low income and members experienced in business, lending and financial matters.

(2) The agency must prove its capacity to originate prudent loans and to service those loans through:

(a) The ability to solicit and screen potential applicants and provide necessary technical assistance to help applicants prepare a business plan and determine the viability of the business, repayment ability and the amount of loan funds needed;

(b) The ability to properly document each loan transaction, including the perfection of the interest of the agency in all collateral;

(c) The ability to access appropriate legal guidance to ensure adherence to all applicable laws concerning lending, loan administration and collection;

(d) The ability to accurately account for all loan repayments;

(e) The ability to pursue collection actions;

(f) The ability to invest and administer the Job-start Revolving Loan Fund; and

(g) Such other criteria as the chief executive officer of the Authority determines necessary to ensure the efficient administration of the program.

K. Upon approval of an application by the chief executive officer of the Authority, a Contract will be issued in form and content satisfactory to the chief executive officer of the Authority. The Contract shall incorporate the provisions of all applicable law with regard thereto, including but not being limited to 10 M.R.S.A. §1100-N, as it may hereafter be amended.

L. If, upon examination of the application and any supporting information, the chief executive officer of the Authority rejects such application, the community action agency shall be so informed. The notice of the rejection shall provide that the applicant may appeal the chief executive officer's denial of the application to the members of the Authority by notifying the chief executive officer in writing, provided that the chief executive officer receives such notice of appeal within fourteen (14) days after the sending of notice of denial. The appeal shall be heard at a regularly scheduled meeting of the members as soon as it can reasonably be scheduled, and the applicant must be present to support the appeal. The members of the Authority shall not overturn the decision of the chief executive officer unless the members determine that the rejection by the chief executive officer was arbitrary, capricious or an abuse of discretion. If such a determination is made, the members may reverse or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

3. Loan Fund Allocation. Loan funds and other appropriations available to the Authority for the job-start program shall be allocated to community action agencies which have executed a Contract for the fiscal year and are not in default thereunder in the following manner:

A. Each contracting community action agency shall be allocated in each fiscal year an equal portion of the available loan funds to be used solely for approved job- start program loans. In each fiscal year the Authority may allocate to the contracting community agency less than the total, amount available in the job-start loan fund, as it determines is necessary to preserve the integrity of the loan fund. After six months, the Authority may reallocate the loan funds as deemed prudent by the Authority.

B. Repealed effective September 18, 1990.

C. New loan funds are available from the principal portion of payments received from loan recipients. Each contractor will be allocated the principal portion of funds paid back by recipients of loans processed by the contractor. The Authority will track these funds by contractor and make them available to the contractor.

D. The investment interest accrued on the loan fund shall be available subject to a 30% match, for the administrative expenses of all contracting community action agencies, to be provided and paid in accordance with the contracts executed between the Authority and the community action agencies, provided that no monies will be available for administrative expenses from the investment interest accrued on the loan fund until all funds appropriated for use for administrative expenses in prior fiscal years have been committed. In addition, each contracting community action agency shall receive any amount appropriated by the legislature in each fiscal year for purposes of special administration expenses of the program in accordance with such appropriation and the contract executed between the Authority and agency.

E. In addition to the funds for administrative expenses available from the investment interest, each contractor will have access to the interest portion of funds paid back by recipients of loans processed by the contractor. The Authority will track these funds by contractor and make them available to the contractor in accordance with the Contracts.

F. If at any time a Contract is terminated, the Authority may reallocate the unused balance of loan funds previously allocated that contractor, or such portion thereof as the Authority may elect, to another contracting community action agency. All principal and interest from outstanding loans shall be allocated to the contractor servicing the loans in accordance with this rule. The Authority may also reallocate unmatched administrative funds to the agency or agencies to which unused loan funds are reallocated.

G. In the event the contract provides for the community action agency to administer the Maine Job Start Program and for control by the community action agency of a portion of the job start revolving loan fund for a specified period of time:

1. The Authority shall establish and divide the loan fund into a separate revolving loan fund to be administered by the community action agency.

(a) That portion of the job start revolving loan fund to be controlled by the community action agency shall equal that portion constituting all loans processed by that community action agency, including any and all unpaid principal and accrued interest thereon, less all due and proper deductions for administrative expenses of the Authority, and the Authority shall transfer and assign to the community action agency all loan documentation evidencing the same.

2. Each separate revolving loan fund must contain all repayments of principal and interest for loans made from that fund and interest earned by that fund.

3. Costs of collection of interest and principal payments required by loan defaults are charged to the fund to which repayments are applied.

4. Appropriations available to the Authority for the job-start program in any fiscal year shall be allocated in accordance with subparagraph A, and as allocated shall be delivered to the community action agency for deposit in its separate revolving loan fund.

5. Each community action agency has responsibility for the allocation and distribution of the portion of the fund allocated to its separate revolving loan fund.

6. All interest earned by the separate revolving loan fund either by means of investment or loan payments is available to the community action agency administering that separate revolving loan fund to which the interest is attributable. The community action agency shall allocate these funds primarily for administrative and counseling services.

H. The Authority may allocate to itself up to $10,000 of administrative program funds derived from investment interest on the fund per contractor for expenses incurred by the Authority in administering this program. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the community action agency shall allocate and pay over to the Authority from the investment interest on its separate fund the amount allocated by the Authority to itself for such expenses.

4. Eligibility. To be eligible for a loan, an applicant must meet the following criteria:

A. Applicants shall be limited to individual residents of the State of Maine, and corporations, partnerships and joint ventures organized under the laws of the State of Maine in which all of the stockholders, partners or joint venturers individually meet the eligibility criteria for applicants under this rule. Nor-for-profit businesses shall not be eligible to apply for loans under the job-start program. Applicants will not be eligible if they employ more than 20 persons or have gross sales exceeding $2,500,000 per year, or, in the case of new businesses, they project that within the first twelve months of operation they will employ more than 20 persons or have gross sales exceeding $2,500,000.

B. An applicant may not have previously received a job-start program loan, except that this restriction shall not apply if the amount previously received plus the amount of the additional assistance sought for the same business enterprise does not exceed the maximum permitted loan amount. For purposes of this subsection (B), the term "applicant" shall include the spouse, dependents or members of the same household, partners, or joint venturers or stockholders in the business for which the loan is sought. An applicant who has previously been rejected by the Authority for a loan under the job-start program may not reapply unless there has been a significant change in the application from the one rejected.

C. The Gross Income of the applicant shall not exceed the higher of:

1. eighty percent (80%) of the State average of the most recently issued HUD median income guidelines for lower income families, pursuant to Section 8 of the U.S. Housing and Community Development Act of 1974, ("HUD Income Guidelines") ; or

2. 80% of the most recently issued HUD Income Guidelines applicable to the county of residence of the applicant, based on household size, plus $1,000 for each member of the applicant's household in excess of five.

In the case of a corporation, partnership or joint venture, Gross Income shall not exceed the average income guidelines referenced above as applicable to the stockholders, partners or joint venturers, and in addition all stockholders, partners and joint venturers must meet the applicable Gross Income requirement. Applicable gross income guidelines will be established for each fiscal year on the first day of each fiscal year.

D. The applicant’s business enterprise for which the loan is sought must be located or conducted within the State, or if a maritime enterprise, must be operated principally from a port located within the State of Maine.

E. If the applicant is a resident of a region served by a contracting community action agency, or the principal location of the business is in such a region, then the applicant shall apply to the community action agency serving the region in which the applicant's residence or business is located. In the case of partnerships, joint ventures or corporations, if at least fifty percent (50%) of the partners, venturers or stockholders are residents of a region served by the community action agency, or the principal location of the business shall be in a region served by a contracting community action agency, the application shall be presented to the contractor serving that region.

F. Each applicant and his or her spouse and dependents shall have a total Net Worth of no more than twenty-five thousand dollars ($25,000). In the case of a partnership, joint venture or corporation, all partners, venturers or stockholders must meet the Net Worth requirement (exclusive of their interest in the applicant) and in addition the applicant must have less than twenty-five thousand dollars ($25, 000) in Net Worth.

G. Except as may be specifically accepted by the chief executive officer, no loan funds may be disbursed unless the applicant has paid all taxes which are due and payable and is in compliance with all applicable federal, state and local laws, regulations or ordinances.

5. Application Contents. Applications and forms for financial information will be provided by the Authority to the Coordinators along with instructions for completion by the applicants. The community action agencies may substitute other forms provided that they contain substantially the same information and take into account any differences from the Authority forms. The information to be submitted by the applicant will include the following:

A. Certification by the applicant that he or she meets all eligibility criteria, along with satisfactory evidence of Gross Income and Net Worth.

B. Applicant's resume and references.

C. A current balance sheet and previous balance sheets if available.

D. Applicant's tax returns for the previous three (3) years, and in the case of a corporation, partnership or joint venture, tax returns of all shareholders, partners or venturers.

E. Statements of projected income and expenses for the first year of the proposed operation.

F. A detailed listing of all machinery or equipment having a value in excess of five hundred dollars ($500).The depreciation schedule for the previous year shall be submitted if the applicant was in business.

G. A detailed description and market value estimate of the real estate or vessel used in the business or offered as collateral.

H. A marketing plan, to include products or services to be sold, to whom the products or services will be sold and evidence of markets.

I. A purchase agreement if applicable.

J. Letters of commitment from any other sources of financing.

K. A Department of Environmental Protection Certificate of Approval, if applicable, and any other applicable governmental approvals.

L. Satisfactory evidence of lack of access to conventional sources of credit.

M. Other information reasonably necessary to determine the likelihood of success of the applicant's proposed business.

N. The Authority's Environmental Questionnaire.

O. If the applicant has more than ten (10) employees, an employment plan on the form provided by the Authority.

6. Application Procedures.

A. Applications shall be submitted to the Coordinator, who shall assist applicants in preparing applications for presentation to the Advisory Board which are complete and which comply with the requirements of this rule and contain sufficient information upon which a decision on the application can be based.

B. Advisory Boards shall convene meetings at such times, places and with such frequency as is reasonable taking into consideration the volume of applications, the requirements of the applicants and the convenience of the Advisory Board members, provided that meetings shall occur at least monthly if applications are pending review. All meetings shall be open and accessible to the public, and applicants shall be invited to attend and present their application. Notice of the date, time and place of each meeting shall be given to the public in such manner as may be reasonable and appropriate in each region. Upon request, the Advisory Boards shall take such action as may be necessary to protect confidential financial information and business plans, provided that if there is any disagreement between the Advisory Board and the applicant as to the confidentiality of any information, the sole remedy of the applicant shall be to withdraw the application.

7. Criteria and Considerations. The following shall be considered by the Advisory Board in recommending approval or rejection of an application for a loan, and by the Authority in approving or rejecting a loan:

A. Whether the application is complete and the applicant has supplied all information necessary for review and analysis of the application.

B. Whether the applicant is eligible for the loan.

C. The extent to which the applicant demonstrates need for the loan and lack of access to conventional sources of credit.

D. The economic feasibility of the business as evidenced by the applicant's present and past financial situation and business experience and the general reasonableness of the business proposal and financial projections for the future. E. The applicant's credit-worthiness, taking into account the scope of the job-start program and the targeted applicant pool.

F. Whether the applicant has sufficient capital and other resources to conduct the business as planned.

G. Whether an adequate market analysis or other counseling requirement has been completed.

H. Whether the applicant is offering security for the loan and whether the security is adequate.

I. The extent to which the risk of financial loss is shared by others.

J. The viability of the industry of which the enterprise is a part and the contribution of the enterprise to that industry.

K. The extent to which the projected annual gross income of the business contributes to the total income of the applicant. Part-time business endeavors will receive equal consideration.

L. The impact of the business on the applicant and his dependents, the community and the region served by the community action agency, including the extent to which the business contributes to:

1. Local economic development,

2. Market development, and

3. Employment opportunities.

8. Recommendation to the Authority.

A. After the application is complete, has been presented to the Advisory Board, and the applicant has had an opportunity to support the application and provide any further information or answers to questions, the Advisory Board shall vote on whether to recommend that the Authority accept or reject the application. A majority of the Advisory Board shall be necessary to recommend approval of a loan. In the event that a majority vote cannot be obtained either to recommend approval or rejection, then the recommendation shall be deemed to be to reject. No Advisory Board member may participate in a vote on an application where that member has a direct or indirect pecuniary interest in the outcome of the vote.

B. The Advisory Board, in cooperation with the Coordinator, shall prepare a report on each application and shall forward the report to the Authority within ten (10) business days of the vote on the application. The report shall contain the following:

1. The complete application as presented to the Advisory Board.

2. A detailed summary of the testimony at the Advisory Board meeting at which the application was considered, including comments of the applicant, answers provided by the applicant to questions, any comments by any members of the public, and any statements by the Coordinator or any member of the Advisory Board,

3. A statement of the results of the vote,

4. A statement of reasons for the vote, if the majority based its vote on agreed reasons,

5. A statement by any members who voted contrary to the majority giving reasons for their stance, if they so desire.

6. If the vote is to approve the loan, a recommendation for the amount of the loan, the term of the loan, the security for the loan, if any, and any other recommendations regarding the terms or conditions,

7. such other information or analysis as the Advisory Board feels should be considered by the Authority.

B.1. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the provisions of sub- paragraphs C, D, E and F shall apply to the community action agency instead of the Authority, mutatis mutandis, and subparagraph G shall not apply, and there shall be no appeal to the Authority.

C. The chief executive officer shall be responsible for insuring that the recommendation of the Advisory Board, and the reasons therefor, are considered and action is taken by the chief executive officer either issuing a commitment or rejecting the loan. The chief executive officer shall consider the application and recommendation within three (3) weeks of receipt from the Advisory Board, provided that if the chief executive officer determines that the application is not complete or additional information is necessary, the chief executive officer may consider the application within three (3) weeks of the time the application is completed or the additional information is presented by the applicant to the chief executive officer's satisfaction. The chief executive officer shall take the recommendation of the Advisory Board, and the reasons therefore, into account, particularly to the extent the recommendation is based on knowledge of local business and economic conditions, but shall be entitled to exercise his or her own judgment based on the application, this rule and the Act.

D. Upon approval of an application by the chief executive officer, a commitment will be issued setting forth the terms and conditions of the loan, including the amount approved, the interest rate, the term, the security required and shall also require the submission in final form within a time specified of all appropriate documents, appraisals, guarantees, permits, approvals, opinions, certifications and other instruments or documentation evidencing full compliance with Authority requirements and in form and content satisfactory to the chief executive officer.

E. No commitment shall be valid unless authorized by the chief executive officer and a commitment shall be effective for a stated period. A commitment may be renewed in the manner stated in the commitment, and may be subject to such reasonable conditions as the Authority may impose.

F. No commitment shall become effective until the applicant and any guarantors have signed it and agreed to its terms.

G. If, upon examination of the application, supporting information and the Advisory Board recommendation, the chief executive officer rejects such application, the borrower and the Coordinator shall be so informed. The notice of the rejection shall provide that the applicant may appeal the chief executive officer's denial of the application to the members of the Authority by notifying the chief executive officer in writing, provided that the chief executive officer receives such notice of appeal within fourteen (14) days after the sending of notice of denial. The appeal shall be heard at a regularly scheduled meeting of the members as soon as it can reasonably be scheduled, and the applicant must be present to support the appeal. The members of the Authority shall not overturn the decision of the chief executive officer unless the members determine that the rejection by the chief executive officer was arbitrary, capricious or an abuse of discretion. If such a determination is made, the members may reverse or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

9. Loan Terms and Conditions.

A. Loans to applicants shall not exceed the lesser of ten thousand dollars ($10,000) or an amount which is reasonable under the circumstances in accordance with the purposes of the Act. Two or more applicants may not combine loans to the same business enterprise to exceed the loan maximum.

B. The loan shall bear a maximum interest rate which shall be fixed at two (2) percentage points below the New York prime rate of interest as listed in the Wall Street Journal on the date the commitment is issued by the Authority. In no event will the Job-Start interest rate exceed twelve percent (12%), provided however, that the chief executive officer may require that the interest rate after default will be a maximum of five (5) percentage points greater than the initial rate on the defaulted loan.

C. The term of each loan shall be based on applicant need, the business plan and the useful life of the collateral securing the loan.

D. The Authority may require such collateral as may be available, including, in appropriate cases, a mortgage on real estate, a security agreement in personal property or personal guarantees. Except as specifically approved by the chief executive officer, collateral shall be located within the State, or if mobile, shall be registered within the State if the State registers such mobile collateral.

E. The Authority will prepare the loan documentation, and execution of all loan documentation in form and content satisfactory to the Authority shall be a condition precedent to the payment of loan proceeds to the applicant. Loan closings shall take place at a mutually agreed upon location.

F. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the provisions of subparagraphs A, B, C, D and E shall apply to the community action agency instead of the Authority, mutatis mutandis, and with regard to sub-paragraph B, the community action agency shall set the rate of interest for the loan, but in no event shall the rate exceed the lesser of (a) the New York prime rate of interest plus four (4) percent per annum, or (b) twelve (12) percent per annum.

10. Covenants of Borrower. The borrower will agree to the following terms and conditions in the loan documentation, as may be reasonable and applicable:

A. The borrower will comply with all applicable planning, zoning, sanitary, building and environmental laws, ordinances and regulations of the federal, state and local governments.

B. The borrower will agree not to convey, lease or transfer any collateral for the loan without the prior written consent of the Authority.

C. The borrower will agree to participate in such marketing and training programs as the Authority may require.

D. The borrower will expend no portion of the loan directly or indirectly for purposes other than those approved by the Authority.

E. The borrower will keep and maintain proper books, records and accounts, and operate the business in a businesslike manner, and will allow the Authority or its designated representatives to examine the business and the books, records and accounts at any reasonable time.

F. The borrower will pay, when due, all taxes or charges assessed against the collateral or the business.

G. The borrower will keep insured to the satisfaction of the Authority all insurable property securing the loan and will maintain the collateral in good condition and repair.

H. The borrower will repay any advances or expenses of the Authority necessary to protect the collateral or enforce the rights of the Authority against the borrower or the collateral.

I. Capital expenditures may be limited as deemed necessary by the Authority.

J. The borrower will not alter or relocate collateral or the business or change the nature of the business without the prior written consent of the Authority.

K. The borrower will comply with such other covenants as the Authority may impose or establish.

L. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the provisions of subparagraphs C, D, E, F, and G shall apply to and benefit the community action agency instead of the Authority, mutatis mutandis.

11. Use of Loan Proceeds. The borrower shall use loan proceeds for the purposes stated in the Commitment, and the borrower's rights under the Commitment shall not be assignable.

12. Waiver of Rule. The members or the chief executive officer so may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the job-start program.

13. Loan Administration.

A. Notes shall be payable to the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, in which event notes shall be payable to the community action agency. All loan administration, including accounting, monitoring and collection, shall be the responsibility of the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, in which event loan administration shall be the responsibility of the community action agency. Upon default under the loan documentation for any loan, whether a default in payment or otherwise, the chief executive officer may allow the defaulting borrower such time to cure the default as the chief executive officer may deem reasonable, may revise the terms and conditions of the loan to accord with the borrower's financial condition and business prospects, may require additional security or may declare an immediate default and proceed to take such action as is necessary to enforce the Authority's rights, or in the event the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then such action as is necessary to enforce the community action agency's rights under the loan documents and to collect the loan. In determining how to proceed after a borrower defaults, the chief executive officer shall consider the purposes of the Act and the job-start program, the borrower's progress and prospects, the impact of enforcement and collection on the borrower and the likelihood that the loan will be repaid if a waiver or extension is granted.

B. If the chief executive officer determines that the loan should be enforced and collected, the borrower shall be given notice of the default or defaults, shall be given a grace period of thirty (30) days in which to cure the default or defaults, and shall be notified that if he fails to cure the default or defaults, the Authority, or, if the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then, the community action agency, may proceed to enforce its rights under the loan documents.

C. In order to protect the integrity of the job-start fund, the chief executive officer may apply payments or other monies received on loans which are in default first to expenses of collection, and preservation of collateral, second to accrued interest and third to outstanding principal.

14. Business Support Groups. In addition to the foregoing, the following shall apply only to business support groups. To the extent that anything in this Section 14 is contrary to any of the foregoing, this Section 14 shall govern business support groups.

A. Contract. The Contract between participating community action agencies and the Authority shall contain the following:

1. The Coordinator shall also be responsible for monitoring periodic business support group meetings, business support group fund reporting to the Authority and assistance in preparation of and review of business support group loan applications.

2. The community action agency shall also provide the Authority with a monthly report on business support group funds and status of projects pending.

B. Loan Fund Allocation. Loan funds may be used within each community action agency region for purposes of making loans to members of business support groups. Each community action agency may allocate up to $25, 000 of its annual allocation from the job-start revolving loan fund for purposes of business support group loans. A community action agency may allocate more than $25, 000 of its job-start loan funds for purposes of business support group loans upon approval of the Authority provided that all other contracting community action agencies are in agreement and provided that in no event shall the total of such funds allocated by all contracting community action agencies exceed $25, 000 per contracting community action agency.

C. Eligibility.

1. Business support groups must agree to undergo business management training programs as facilitated by the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then by the community action agency. The community action agencies and each member must agree to provide business support to each other member.

2. In order to be eligible to receive any loans, the members of a business support group must, upon commencement as a group, submit a loan origination accountability plan to the Authority and the community action agency for approval, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then the loan origination accountability plan shall be submitted only to the community action agency for approval, setting forth a method by which the group proposes to make loans to its members which shall address incentives for encouraging accountability of the members to each other regarding loan payments and compliance and a schedule for making loans to members which addresses the foregoing.

3. A business support group member may reapply for a loan, provided that any previous business support group loans to that member have been paid in full and the previous loan conditions complied with and provided also that each other member of the business support group has had an opportunity to apply for at least one loan, unless these requirements are unanimously waived by the remaining members of the business support group.

D. Application Procedures. Applications by members of business support groups shall not be subject to the procedures set forth in Sections 6(A) and 6(B) or Sections 8(A-F). Rather, business support groups shall be subject to the following:

1. The Coordinator shall assist members of business support groups in preparing applications and shall review applications prior to submission to a vote of the group.

2. Each business support group shall convene periodically, but at least monthly, at such times and places as is reasonable taking into consideration the volume of applications and agenda discussion items to review completed applications from their members, provide business support to members as necessary and collect any loan payments due.

3. The business support group shall allow the applicant to discuss his or her loan request at its meeting. The business support group shall vote on whether or not to approve the application. A majority vote of the business support group shall be necessary to approve a loan. In the event that a majority vote cannot be obtained to approve the loan, then the recommendation shall be deemed to be a denial. No business support group member may participate in a vote on an application where that member has a direct or indirect pecuniary interest in the outcome of the vote other than as a member of such group.

4. The business support group leader shall keep a loan approval/denial register on each application. This register shall contain the borrower's name, date of approval or denial, loan amount, term, interest rate, payment terms and conditions of the loan. Upon approval of a loan and recording in the loan register, the business support group leader shall notify the Coordinator of the decision and submit the approved loan application to the Coordinator.

5. The Coordinator shall notify the Authority of the business support group's decision and submit the completed loan application to the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then notification shall be given to the community action agency and the completed loan application shall be submitted to the community action agency. The Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then the community action agency, may review an application for compliance with this Section 14 and this rule and, notwithstanding the vote of the business support group., may approve or deny an application in accordance with the foregoing.

6. Upon approval by the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then upon approval by the community action agency in accordance with Section 14(d)(5), the loan shall be documented and closed in accordance with this rule. Should the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then should the community action agency, deny an application, the decision shall be final.

E. Loan Terms and Conditions.

1. Loans to a member of a business support group shall not exceed $5,000 in the aggregate.

2. The interest rate shall be fixed as of the date a loan is approved by a business support group.

3. The term of a loan to a member of a business support group shall not exceed three (3) years and such loans shall be repaid in accordance with the recommendation of the business support group.

F. Use of Loan Proceeds. A business support group borrower shall use loan proceeds only for the purposes approved by a business support group and the Authority.

G. Loan Administration.

1. Notes shall be payable to the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then notes shall be payable to the community action agency but payments shall be delivered by the borrower to the business support group leader at a regularly scheduled meeting of the group. All administration, including record-keeping and monitoring, shall be the responsibility of the business support group. The business support group leader shall collect the payments, forward them promptly to the Authority or the community action agency, as the case may be, and provide a weekly update to the Coordinator on the fund status. Payments shall be deemed received upon receipt by the Authority, unless the Authority has provided that the community action agency shall administer the Maine Job Start Program and control a portion of the job start revolving loan fund, then upon receipt by the community action agency.

2. If a borrower in a business support group is unable to make a scheduled loan payment, then that payment may be made, by contributions of the remaining business support group members. If the payment is not made no further loan funds will be available to that business support group until the payment is made.

EFFECTIVE DATE: October 3, 1984

AMENDED: November 27, 1985

December 28, 1985

August 13, 1987--(EMERGENCY)

August 18, 1987

October 3, 1987

August 28, 1988

September 18, 1990

December 19, 1993.

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

NON-SUBSANTIVE CORRECTIONS: October 7, 1996 - minor spelling.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 303 Natural Disaster Business Assistance Program

Code Me. R. 94-457 Ch. 303 Natural Disaster Business Assistance Program {#sec-94-457-ch.-303 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 303}

Summary: This rule establishes the procedures and standards applicable to borrowers and lenders participating in the Authority's statewide program for making or securing loans of up to $50,000 to victims of natural disasters, including the 1987 flood.

1. DEFINITIONS

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 MRSA §961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. "Borrower" means a person or entity which meets the eligibility requirements set forth in Section 2 of this rule, and includes a prospective borrower where the context requires.

2. "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

3. "Lender" means any bank, trust company, national banking association, federal savings and loan association, industrial bank, mortgage company, insurance company, credit union, local development corporation, or any other institution or entity authorized to do business in this State, or any state or Federal agency which customarily provides financing assistance.

4. "Program" means the Maine Natural Disaster Business Assistance Program governed by the Act and this rule.

5. ELIGIBILITY

To be eligible for financial assistance under the program, borrowers must demonstrate each of the following:

A. The borrower has suffered serious financial hardship as a direct result of a natural disaster which has caused any part of the State to be declared a disaster area by the President of the United States or his authorized representative.

B. The borrower's business which suffered the hardship must be located in the State.

C. The borrower's business is organized as a for-profit business.

D. The proceeds of the financial assistance will be used for a business purpose and not to discharge an existing indebtedness, unless the chief executive officer specifically approves refinancing based on a demonstration of compelling need.

E. The borrower must apply to the United States Small Business Administration ("SBA") for disaster loan assistance if the borrower is eligible to do so. Failure to apply to SBA before any applicable deadline will cause the borrower to be ineligible under this program.

3. APPLICATION CONTENTS

Each borrower or its lender shall submit an application to the chief executive officer on such forms and with such attachments as the chief executive officer may require consistent with the purposes of the program and the requirements of other Authority small business programs (e.g., Chapter 103, 301, 302). The application shall be accompanied by or supplemented with evidence of the submission of an application to SBA where applicable, and a copy of the SBA application where available.

4. APPLICATION PROCEDURES

Applications shall be reviewed and considered for assistance in the order in which they are received. Applications shall be marked with the date and time received or with some other marking indicating the order in which applications were received. Applications received at the same time, such as in the same delivery of mail, shall receive equal consideration. The chief executive officer shall determine when an application is received, which determination shall be final. Applications which are not substantially complete may be deemed not received until completed. For applications to be submitted through lenders, the chief executive officer may determine that the application is received upon receipt of a telephone call from the lender stating that the application is being submitted, provided that the application must be received in the Authority's offices within seven (7) calendar days from the date of the telephone call. In order to confirm the reservation, the lender must be given a reservation number at the time of the telephone call.

5. ASSISTANCE PROVIDED

The Authority may provide assistance from the Natural Disaster Business Assistance Fund either in the form of a direct loan to a borrower or in the form of a deposit with a lender, which lender has agreed to loan the amount of the deposit to the borrower on such terms and conditions as the chief executive officer may require or approve. Assistance under this program shall be combined, to the extent feasible, with assistance under other Authority programs. Financial assistance may not be provided through a lender unless that lender certifies that it would not be able to provide a loan to the borrower without financial assistance under this program even if the Authority provided loan insurance under the Small Business Mortgage Insurance Program (Chapter 103).

6. CRITERIA AND CONSIDERATION

A. No application will be approved unless the chief executive officer determines that the borrower has insufficient access to any other funds from any source on a timely basis other than pursuant to this program, and that the borrower needs financial assistance in order to recover from the effects of the natural disaster and ensure the continued viability of the business.

B. No application will be approved unless the chief executive officer determines that there is a reasonable likelihood that the borrower will be able to repay any assistance under this program according to its terms.

C. No application will be approved to the extent that it seeks more financial assistance than the borrower actually needs in calendar year 1987. Financial assistance may not be used to expand or otherwise materially change a business from what it was prior to the natural disaster, provided that mitigation of future natural disaster damage shall be an eligible use of financial assistance.

D. No application submitted by a lender will be approved unless the chief executive officer determines that the secured loan will be documented and serviced as required by the Authority.

E. No application will be approved unless the chief executive officer determines that the borrower is eligible and the loan proceeds will be used in connection with an eligible project.

F. No application will be approved unless the chief executive officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

G. In reviewing each application, the chief executive officer will consider the following, as applicable:

1. The extent to which the borrower demonstrates immediate need for the loan.

2. The economic feasibility of the business endeavor as evidenced by the borrower's present and past financial situation and business experience and the general reasonableness of the business proposal and financial projections for the future.

3. Whether the borrower and any guarantors have satisfactory credit histories.

4. Whether the borrower has sufficient capital and other resources to conduct the business as planned, and the amount and source of equity contributed.

5. The adequacy of the security offered for the loan.

6. The extent to which the risk of financial loss is shared by others.

7. The viability of the industry of which the enterprise is a part and the contribution of the enterprise to that industry.

8. The impact of the business on the borrower and the community, including the extent to which the business contributes to local economic development, market development and employment opportunities.

9. The vulnerability of the business to future natural disasters.

H. All applications must be received in substantially complete form on or before June 30, 1987.

7. COMMITMENT

A. Upon approval of an application by the chief executive officer, a loan commitment will be issued setting forth the terms and conditions upon which the loan will be extended directly or through the lender, as applicable.

B. In the event the chief executive officer rejects the application, the chief executive officer will promptly send the borrower (and lender if applicable) notice containing reasons for the rejection. The notice shall include a statement of the applicant's right to appeal the chief executive officer's decision to the members of the Authority's Board of Directors.

8. APPEAL TO THE MEMBERS

In the event that an application is rejected by the chief executive officer, the borrower shall have the right to appeal the decision of the chief executive officer to the members of the Authority's Board of Directors, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within twenty days after the date the chief executive officer mailed the notice of rejection to the lender. The appeal shall be heard at a meeting of the members, and the borrower must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the rejection. The decision of the chief executive officer shall be final unless the members determine that the rejection by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application. Priority of any application with respect to which the chief executive officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

9. COLLATERAL

Repayment of any loan pursuant to the program shall be secured by the following:

A. A mortgage or security interest in real estate, buildings or personal property of the business endeavor, subject only to such other encumbrances, including priority, junior or coordinate liens, as the chief executive officer may approve.

B. Such other collateral as the chief executive officer may require, including without limitation, liens on real or personal property, assignments or pledges of leases, and personal or corporate guarantees.

C. Loans may, at the discretion of the chief executive officer, be secured by collateral valued for collateral purposes at less than the amount of the loan, provided that the borrower, its principals and any guarantors, are of good character and have good credit histories.

D. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of a loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use.

10. LOAN TERMS AND CONDITIONS

A. All loans under the program, including loans made by lenders with deposits from the Authority, shall be for initial terms of six months at an interest rate of the lesser of 8% or the Prime Rate listed under "Money Rates" in the Wall Street Journal on the date the Authority issues its loan commitment. Monthly payments shall be established in accordance with the borrower's individual needs. Loans to any borrower may not exceed $50,000 in the aggregate.

B. Loans or portion of loans intended to provide short term financing pending receipt of funds from other sources must be paid out when such other funds are received to the extent of such proceeds, unless otherwise approved by the chief executive officer.

C. Loans which are not paid out within six months may be termed out for term of up to twenty (20) years on terms and conditions established by the chief executive officer based on the repayment ability of each borrower. In the case of loans made through lenders, the Authority may allow the lender to continue to maintain and service the loan if the lender is willing to do so, or the Authority may request an assignment of the loan and the collateral. If the lender retains the loan, the lender shall pay to the Authority an amount equal to two percent per year of the outstanding principal balance of the loan. Upon the occurrence of any default, the lender may assign the loan and collateral to the Authority and retain the amount deposited by the Authority with the lender up to the amount outstanding on the loan.

D. Additional requirements and covenants of each loan may be established for each loan, provided that each borrower shall at minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability and hazards, including flood insurance for borrowers located in flood plains, and comply with all applicable federal, State and local laws, regulations, ordinances and orders.

E. Borrowers which willfully fail to apply loan proceeds to the purposes for which the loan was approved or which willfully fail to apply funds from other sources to reduce the financial assistance provided under this program where the financial assistance is contingent on such funds being used to reduce program loans, shall be subject to acceleration of the loan and to an additional penalty of fifty percent (50%) of the outstanding balance of the loan. After any default, the Authority may provide that the interest rate on the loan is increased to a rate not to exceed five percent (5%) over the Prime Rate listed under "Money Rates" in the Wall Street Journal on the date of the default.

F. The borrower shall be responsible for the Authority's out-of-pocket costs and expenses of closing, administering and collecting loans held by the Authority.

G. In the case of financial assistance provided through lenders, the lender may charge its reasonable and customary closing costs and expenses but may not charge any points or other fees without express approval of the chief executive officer. The amount of the Authority deposit shall initially equal the amount of the loan and shall be repaid to the Authority as the principal balance of the loan is reduced.

11. WAIVER OF RULE

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

AUTHORITY: 10 MRSA §§969-A(14), 1011, 1012

This rule is based on the following:

1. The Finance Authority of Maine Act, 10 MRSA §961 and following, and particularly §969-A(14) and Chapter 110, subchapter 1-C;

2. The expertise and experience of the members and employees of the Authority.

EFFECTIVE DATE: June 9, 1987, emergency rule.

August 18, 1987 (Permanent Rule)

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 305 Oil Storage Facility and Tank Program

Code Me. R. 94-457 Ch. 305 Oil Storage Facility and Tank Program {#sec-94-457-ch.-305 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 305}

Summary: This rule establishes the procedures and standards applicable to borrowers and financial institutions participating in the Authority's statewide program for making loans or, in some cases, grants to finance the renovation, removal, disposal or replacement of all or any part of certain oil storage facilities or tanks and certain air quality improvement equipment.

1. Definitions.

A. Reference to Act definitions. Certain terms used in this rule which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the "Act"), shall have the meaning set forth in the Act unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. "Aboveground Oil Storage Facility" or "Aboveground Facility" means any aboveground oil storage tank or tanks, together with associated piping, and transfer and dispensing facilities located over land or water of the State at a single location for more than four months per year that is used or intended to be used for the storage or supply of oil. Oil terminal facilities, as defined in 38 MRSA § 542, sub § 7, and propane facilities are not included in this definition.

2. "Aboveground Oil Storage Tank" or "Aboveground Tank" means any aboveground container, less than 10% of the capacity of which is beneath the surface of the ground, that is used or intended to be used for the storage or supply of oil. Included in this definition are any tanks situated upon or above the surface of a floor in such a manner that they may be readily inspected.

3. "Borrower" means a person or entity that meets the eligibility requirements set forth in Section 3 of this rule, and includes a prospective borrower where the context requires. If the borrower is a real estate holding company or is a subsidiary or affiliate of or is related to an entity with 50% or more common ownership "borrower" shall include the parent, affiliated or related entity when determining eligibility, including the net worth and debt service coverage of the borrower.

4. "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

5. "Current Obligation(s)" means the portion of all outstanding debts including principal and interest owed by the borrower due within one year of the date of application, including payments on leases of real and personal property.

6. "Debt Service Coverage" means an amount equal to the quotient of a fraction, the numerator of which is the sum of the borrower's net income plus depreciation plus interest and the denominator of which is the sum of the borrower's current obligations, plus proposed payments of principal and interest.

(e.g. Debt Service Coverage =

Net Income + Depreciation + Interest

Current Obligations + Proposed Loan Obligations)

7. "Equipment Related to Air Quality Improvement" means any equipment which must be installed by a gasoline service station to comply with applicable laws and regulations regarding gasoline service station vapor control and petroleum liquids transfer vapor recovery pursuant to the requirements of applicable law.

8. "Gasoline Service Station" means a single location from which a) motor fuel is sold to the general public or b) motor fuel is distributed solely for the use of officers or employees or owners of the location. A gasoline service station does not include a location from which motor fuel is distributed only for later sale.

9. "Net Income" means net income as determined by generally accepted accounting principles, as applied by the Authority. The determination of the borrower's net income shall be based on the financial statements and tax return for the borrower's most recent fiscal year and interim financial statements as the Authority may require. The Authority may rely on financial statements and tax returns from previous fiscal years if, in the discretion of the Authority, they are necessary to make a determination of net income.

10. "Net Worth" means, in the case of an individual or sole proprietorship, the total value of the equity of the borrower, the borrower's spouse, and dependents in all real and personal property, excluding the borrower's principal residence. In the case of a corporation or a limited liability company, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each stockholder or member owning 20% or more of the outstanding and issued stock or ownership units of the corporation or limited liability company. In the case of a partnership, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each general partner. In the case of a trust, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each beneficiary of 20% or more of the proceeds of the trust. In the case of a co-op, net worth shall be defined in accordance with generally accepted accounting principles and may include the individual net worth of major owners in the discretion of the Authority.

11. "Members" means the members of the Finance Authority of Maine.

12. "Program" means the Oil Storage Facility and Tank Program governed by the Act and this rule.

13. "Project" means a) the renovation, removal, disposal or replacement of all or any part of an eligible underground oil storage facility or tank, or b) the construction, replacement or renovation of an aboveground tank or aboveground facility, or c) or the installation of equipment related to the improvement of air quality.

14. "State" means the State of Maine.

15. "Underground Oil Storage Facility" or "Underground Facility" means any tank, together with associated piping and dispensing facilities, 10% or more of which is located beneath the surface of the ground and not on or above a floor in such a manner that it may be readily inspected, located at a single location and used, formerly used or intended to be used for the marketing and distribution of oil, petroleum products or their by-products to persons or entities other than the owner of the facility.

16. "Underground Oil Storage Tank", or "Underground Tank" means any tank, together with associated piping, 10% or more of which is located beneath the surface of the ground and not on or above a floor in such a manner that it may be readily inspected, located at a single location and used, formerly used or intended to be used for consumption by the owner or user of the tank on the premises.

2. Program Implementation and Assistance Provided.

The program shall be administered by and is delegated to, the Chief Executive Officer. The Authority may provide financial assistance either in the form of a direct loan or grant in the amount actually necessary to complete the project up to $600,000 to an eligible borrower. Loans or grants for the purposes stated in subsection 3(A)(3) may not exceed $1,000,000 in a twelve (12) month period. Assistance under this program may be combined, to the extent possible, with assistance under other Authority programs.

3. Eligibility.

A. To be eligible for financial assistance under the program, a borrower must demonstrate at least one of the following:

1. The borrower is the owner or operator of an existing underground oil storage facility or underground tank which a) is located on premises which are not used solely for residential, including rental residential, purposes; and b) is leaking or has been identified by the Department of Environmental Protection as posing an environmental threat, or removal is required by applicable law or, in the case of an applicant for loan insurance, removal, disposal or replacement of all or any part of a facility is required by applicable law;

2. The borrower is required by applicable law or regulation to install equipment related to air quality improvement;

3. The borrower is constructing, replacing or renovating an aboveground tank or an aboveground facility and the work is being supervised by a State registered professional engineer with training and experience in aboveground oil storage facility installation; or

4. The borrower is renovating an underground oil storage tank or facility, the work is supervised by an underground oil storage tank installer certified by the State Board of Underground Storage Tank Installers and the estimated cost of the work is greater than $1,000. Financial assistance in the form of a grant shall not be available for this purpose.

B. To be eligible for financial assistance under the program a borrower must demonstrate each of the following:

1. Financial need for the assistance, except if the borrower is a unit of a local government.

2. A reasonable likelihood that the borrower will be able to repay the loan.

3. Any financial assistance will be used only for a project.

C. A borrower shall be eligible for grants and direct loans in accordance with the following criteria:

1. Except as otherwise provided in this Rule, a borrower shall be eligible for a grant if: a) the borrower is a nonprofit entity other than a unit of local government; and b) the borrower's debt service coverage is less than 1.0; and c) the borrower has no other readily available source of funds to undertake the project.

2. A borrower that is not eligible under subsection 3(C)(1) shall be eligible for a deferred loan if the borrower's debt service coverage is less than 1.0. The terms and conditions of such deferred loan shall include the terms set forth in subsection 3(C)(9) hereof.

3. A borrower shall be eligible for a loan with interest at the rate of 0% if the borrower's debt service coverage is 1.0 or greater, but less than 1.2;

4. Subject to the limitations of subsection 3(C)(7) a borrower shall be eligible for a loan with interest at the rate of 6% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.2 or greater, but less than 1.5. In no event shall a loan to any borrower made under this subsection be at a rate less than 2%.

5. Subject to the limitations of subsection 3(C)(7), a borrower shall be eligible for a loan with interest at the rate of 2% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.5 or greater, but less than 2.5.

6. Subject to the limitations of subsection 3(C)(7), a borrower shall be eligible for a loan with interest at the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter, if the borrower's debt service coverage is 2.5 or greater, but less than 3.0.

7. A borrower with debt service coverage of 3.0 or greater or net worth of $750,000 or greater shall not be eligible for assistance under the program, unless the borrower can demonstrate financial need to the satisfaction of the Authority.

8. Notwithstanding any provision of this Section 3, a borrower that is a unit of a local government shall be eligible for a loan with interest at the rate of 2% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter.

9. All deferred loans made pursuant to subsection 3(C)(2) of this Rule shall be evidenced by a commercial note which shall bear interest at the rate of 2% below the high prime rate as published by the Wall Street Journal commencing on the date of the third anniversary of the Note, provided however, if the borrower provides financial statements satisfactory to the Authority prior to the third anniversary of the Note, the Authority may revise the commercial note as follows:

a) For any borrower that obtained a deferred loan, the proceeds of which were to be used for an underground or aboveground oil storage facility or tank project, the repayment terms will be set in accordance with Section 3;

b) For any borrower that obtained a deferred loan the proceeds of which were used for a project relating to the installation of equipment related to air quality improvement and that had a debt service coverage of less than 1.0 for two out of three of the years for which the loan was deferred, the loan shall be deemed to be a grant, provided that i) no borrower who owns 15 or more gasoline service stations may receive a grant and ii) no grant may be greater than $35,000 per gasoline service station owned by a borrower.

c) For any borrower that obtained a deferred loan the proceeds of which were used for a project relating to the installation of equipment related to air quality improvement and that had a debt service coverage of greater than 1.0 for two out of three of the years for which the loan was deferred, repayment terms will be set in accordance with this Section 3.

D. A borrower may obtain a loan for a project that has already been completed if the borrower provides satisfactory evidence of compliance with each of the following criterion.

1. The project was completed no later than nine months previous to the date the complete application is received by the Authority.

2. The loan is made to the same individual or entity, who operated the project at the time the project was undertaken.

3. The loan will assist in maintaining a viable business.

4. Terms shall be set in accordance with section 3(C) hereof, provided however, that in the event the borrower would be eligible for a grant pursuant to section 3(C)(1) or a deferred loan pursuant to section 3(C)(2), the application shall be denied unless the borrower can demonstrate compelling need for the loan or grant, in the sole discretion of the Chief Executive Officer.

4. Application Procedure and Content.

Each borrower, shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require consistent with the purposes of the program and this rule. The Chief Executive Officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final. An application shall contain, at a minimum, such general information identifying and describing the borrower, the proposed project, and the proposed financing of the project as specified in the application form and as otherwise requested by the Chief Executive Officer.

5. Criteria and Considerations.

A. [Repealed]

B. No application will be approved unless the Chief Executive Officer determines that the borrower is eligible and that the loan or grant proceeds will be used for a project.

C. [Repealed]

D. [Repealed]

E. No application will be approved unless the Chief Executive Officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

F. [Repealed]

G. The Authority may rely upon information provided to it by the Department of Environmental Protection regarding whether a project is eligible.

6. Terms and Conditions; Premiums, Fees and Other Charges.

A. Periodic payments of principal and interest on loans shall be established in accordance with a borrower's individual needs.

B. Loans shall not exceed terms of ten (10) years.

C. Additional requirements and covenants of each loan or grant may be established, provided that each borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if the borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the Chief Executive Officer.

D. The borrower in the case of a loan or grant shall pay a loan origination fee equal to 1% of the loan amount at closing and shall be responsible for the Authority's attorneys fees (whether of the Authority’s legal division or outside counsel) and all out of pocket costs and expenses of underwriting closing, administering and collecting the loan or grant. The Authority will also be entitled to collect from the Underground Oil Storage Replacement Fund, a loan underwriting fee of 1% of the requested loan amount for every loan application received whether or not the loan is approved or made, plus any reasonable out of pocket underwriting costs not paid by the borrower. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the Authority shall be entitled to collect from the Underground Oil Storage Replacement Fund an annual loan administration fee in an amount equal to 1% of the outstanding principal balance of the loan remaining due on each such anniversary date, provided however that no annual payment shall be collected during any period of deferment pursuant to sections 3(C)(2) and 3(C)(9) or in the case of any grant.

E. [Repealed]

F. Any loan made pursuant to this program may be assumed by a purchaser of the premises from which the facility or tank is removed, provided that the loan may only be assumed by a for profit entity which would be eligible for a loan on the same terms and conditions as the original borrower. The eligibility of any such assuming entity shall be determined by the Chief Executive Officer.

G. Removal or disposal of any underground oil storage tank must be completed by or under the direction of a person certified by the State Board of Underground Oil Storage Tank Installers or by professional fire fighting personnel in accordance with 38 M.R.S.A. §566-(A)(5). All replacement tanks or facilities must comply with Chapter 691 of the Rules of the State Department of Environmental Protection and applicable law. All disposal of tanks and facilities and installation of equipment related to air quality improvement shall be in accordance with applicable laws. The Authority may require evidence of compliance with these conditions.

H. The Authority, in the sole discretion of the Chief Executive Officer, may reduce the rate of interest, increase the term of any loan including loans with original terms of ten (10) years, or change a loan to a grant in the event a borrower can show adverse circumstances resulting in financial hardship.

7. Collateral.

A. Repayment of any loan pursuant to the program shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless compelling reasons are presented justifying not requiring a guarantee.

B. Loans may, at the discretion of the Chief Executive Officer, be secured by collateral valued for collateral purposes at less than the amount of the loan, when necessary to ensure the replacement of a facility or tank or the installation of equipment related to the improvement of air quality required to be replaced or installed under applicable law.

C. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use.

D. In the event a borrower sells the premises from which a tank or facility is removed using the proceeds or any part of the proceeds of a grant received pursuant to the program, within five years of the receipt of said grant, borrower shall pay to the Authority an amount equal to the grant received upon the sale of such property. The Authority may, in the discretion of the Chief Executive Officer, require that a recipient of a grant provide such collateral as may be necessary to protect its interests pursuant to this provision, including, without limitation mortgages on real property.

8. Commitment

A. Upon approval of a direct loan or grant application by the Chief Executive Officer, a commitment will be issued setting forth the terms and conditions upon which the loan or grant will be extended.

B. [Repealed]

C. [Repealed]

D. In the event the Chief Executive Officer rejects any application, the Chief Executive Officer will promptly send the applicant notice containing reasons for the rejection. The notice shall include a statement of the applicant's right to appeal the Chief Executive Officer's decision to the members.

9. Appeal to the Members.

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mailed the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

10. Waiver of Rule.

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §§ 969-A(14), 1023-D(3) and 1026-F(3).
• EFFECTIVE DATE: January 11. 1988
• AMENDED: August 2, 1989 (EMERGENCY)
• AMENDED: September 18, 1989 (EMERGENCY)
• AMENDED: November 18, 1989
• AMENDED: November 11, 1991
• AMENDED: June 7, 1994 (EMERGENCY)
• AMENDED: August 21, 1994 - Sec. 1, 2, 3, & 6
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.
• AMENDED: June 4, 2002
• AMENDED: August 27, 2005 – filing 2005-342
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 307 Maine Seed Capital Tax Credit Program

Code Me. R. 94-457 Ch. 307 Maine Seed Capital Tax Credit Program {#sec-94-457-ch.-307 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 307}

Summary: This rule establishes the procedures and standards applicable to the Maine Seed Capital Tax Credit Program, pursuant to which the Authority may authorize tax credits to investors in an amount not more than 40% of the amount of cash actually invested by that investor in an eligible Maine business or in an eligible private venture capital fund for investment in other eligible Maine businesses in any calendar year. Total aggregate investments eligible for tax credit certificates may not exceed $3,500,000 for any one eligible business, and no more than $2,000,000 for any one business in any calendar year. Investors under the Program make their own investment decisions. The issuance of a certificate by the Authority does not imply approval or endorsement of the business or the prudence of the investment.

1. Definitions

A. "At-risk" means that the repayment of an investment is entirely dependent upon the success of the business operations.

B. "Authority" means the Finance Authority of Maine.

C. "Business" means a business meeting the applicable eligibility criteria of Section 3, in which an investor proposes to make an investment.

D. "Certificate" means a tax credit certificate issued by the Authority in accordance with this rule.

E. "Chief Executive Officer" means the Chief Executive Officer of the Finance Authority of Maine, or a person acting under the supervisory control of the Chief Executive Officer.

E-1. “Extraordinary Labor Event” means a sudden and significant change in employment in an area, on account of, among other things, a business closure or employee layoff, closure of a military base through a base closure and realignment commission process, increase in population, or other like, but out-of-the-ordinary, occurrences, as determined by the Chief Executive Officer.

E-2. “Flow-Through Entity” means a distinct private legal entity that is treated for federal tax purposes as a flow-through entity, such that the entity itself is not taxed, but income or loss is passed through to the owners of the entity in proportion to their percentage of ownership in the entity, or as provided in the entity’s organizational documents. Such entities may include, but are not limited to, S Corporations, limited liability companies, partnerships, and certain trusts. For the purposes of this rule, Private Venture Capital Funds shall not be treated as flow-through entities unless they so elect, in which case they shall be eligible only for non-refundable tax credits at the 60% level for investments prior to January 1, 2014, at the 50% level for investments made on or after January 1, 2014 and before April 1, 2020, and at the 40% level for investments made on or after April 1, 2020.

"Fund” means each distinct private legal entity organized for the purpose of combining monies from two or more unrelated parties to be used to make equity or equity-like investments in businesses unrelated to such entity, in which an investor proposes to make an investment. This definition applies only to investments made prior to January 1, 2012.

"Gross sales" means amounts received or to be received from the sale of goods or services in the ordinary course of business.

G-1. “High unemployment area” means a Labor Market Area (as defined by the Maine Department of Labor), which has an average unemployment rate greater than the average unemployment rate for the State as determined by the Maine Department of Labor, such status to be determined annually by the Chief Executive Officerbased on the unemployment determinations made for the twelve months ending the preceding October, to be effective for the next succeeding calendar year.

In addition to the foregoing: (1) the Chief Executive Officer may add Labor Market Areas to the list of high unemployment areas when an extraordinary labor event in such area has caused the unemployment rate for such area to increase significantly to a rate above then current State average, all as determined by the Chief Executive Officer. For a business to be considered to be located in a high unemployment area, the business must have its sole location in such an area, or, for businesses with more than one location, the business must establish to the satisfaction of the Authority, that the investment for which a credit is sought is to be used almost exclusively in connection with its location in a high unemployment area. Whether a business is located in a high unemployment area shall be determined as of the date of the applicable investor’s application, provided however, that if the Labor Market Area in which the business is located is added to the list of high unemployment areas in connection with an extraordinary labor event as set forth above, after the date the investor’s application is received but prior to the issuance of the investor’s credit, then the business shall be considered to be in the high unemployment area for the purposes of that investor’s application; and (2) the footprint of a former United States military installation in the State that is closed pursuant to a base closure and realignment commission process shall be considered a “high unemployment area” for a period of 10 years commencing on the date that the real estate on the former base is transferred to a redevelopment authority or similar entity. This definition applies only to investments made prior to January 1, 2012.

H. "Investment" means a transaction in which an eligible business or eligible fund or private venture capital fund receives cash from an eligible investor for business purposes authorized under the applicable provisions of Section 3, 3-A or 3-B of this rule, and includes loans.

I. "Investor" means an individual, partnership, trust, limited liability company, corporation or other legal business entity, and includes a prospective investor where the context requires. In the case of entities treated as flow-through entities for tax purposes, the individual shareholders, members, partners or beneficiaries shall be treated as the investors under this rule.

J. "Members" means the members of the Finance Authority of Maine.

K. "Natural resource enterprise" shall have the meaning given that term in 10 M.R.S.A. §963-A(41), which includes agricultural, forestry and fishing enterprises but does not include selling of food at wholesale or retail except when that selling is carried out as part of the natural resource enterprise.

L. "Principal owners" means one or more persons who control the business, whether by owning an aggregate of 50% or more of the business, by holding any ownership interests in the business and being directly involved in the day-to-day management of a business as a full-time professional activity, or otherwise, all as determined by the Chief Executive Officer. For investments made prior to January 1, 2012, to the extent the principal owners do not collectively own 50% or more of the business, the business must designate additional holders of ownership interests in the business who, when aggregated with the principal owners, own a total of at least 50% of the business, which such designated holders of interests shall not participate in the program.

L-1. “Private Venture Capital Fund” means a professionally managed pool of capital organized to make equity or equity-like investments in multiple unrelated private companies using capital derived from multiple limited partners or members, at least half of which, measured in dollar commitments, are unaffiliated and unrelated, and includes any venture capital fund licensed by the U.S. Small Business Administration. Funds organized to invest in a single company are not eligible unless part of a related group of funds under common management, with more than 50% of the fund investors in such fund having invested in one or more related funds. A Private Venture Capital Fund may but need not be a Fund as defined in this Rule. This definition applies only to investments made on or after January 1, 2012.

L-2 “Professionally managed” when referring to a Private Venture Capital Fund, shall mean independent management, by individuals with fund management experience, and with investment management discretion and authority, reasonably compensated for their services.

M. "Program" means the Maine Seed Capital Tax Credit Program governed by this rule.

N. “Value-Added” means an enhancement to a product or service that increases the value or marketability of the product or service.

2. Application Procedures

A. An investor and the business, flow-through entity, Private Venture Capital Fund or fund into which the investor proposes to make an investment, shall submit an application which complies with the requirements of this rule on such forms as may be required by the Chief Executive Officer.

B. The Chief Executive Officer shall be responsible for making application forms available and assisting investors, businesses, flow-through entities, Private Venture Capital Funds and funds in preparing applications.

C. No application will be considered complete unless substantially all questions are answered and all supporting information is provided.

D. The application shall include general information identifying and describing the business, flow-through entity, Private Venture Capital Fund or fund, the amount, source and purpose of the investment, and terms and conditions of the investment. The application shall contain such provisions as the Chief Executive Officer may require releasing the Authority from any suits or claims arising out of the investment. In the case of businesses with more than 10 employees, the application shall also include an employment plan on a form provided by the Chief Executive Officer. The business, Private Venture Capital Fund or fund must certify that it is in compliance with all federal and State laws, including securities laws and regulations. The application shall also include such additional information and documentation as the Chief Executive Officer may require.

The application of a business shall include a nonrefundable $750 application fee.

F. The application of an investor (including an investor investing through a flow-through entity) shall include a nonrefundable $350 application fee.

G. The application of a fund or Private Venture Capital Fund shall include a non-refundable $650 application fee.

H. Investment applications must be filed with the Authority before the investment is made, or within 90 days thereafter. The investor must certify that it was aware of the Program and the Business’ participation in Program prior to the investment, and that the Program was a material factor in its investment decision.

3. Eligibility – Direct Investments in Eligible Businesses

A. To be eligible under the Program, each business in which an investment is made must meet the following criteria:

1. The business must be a for-profit enterprise located within the State of Maine, which is:

(a) a manufacturer, as determined by the Chief Executive Officer;

(b) a seller of goods or a provider of services, 60% or more of the customers of which are located or are from out of the State and the employment functions are carried out predominantly within the State, as determined by the CEO;

(c) engaged in the development or application of advanced technologies, as determined by the CEO;

(d) a value-added natural resource enterprise, as determined by the CEO; or

(e) certified as a visual media production company under 5 M.R.S.A. §13090-L.

2. The business receiving the investment must have annual gross sales of $5,000,000 or less as of the date the application is received, as determined by the Chief Executive Officer based on the business's most recent annual financial statements, as well as its most recently available internally prepared interim statements.

3. The principal owners of the business must be one or more individuals and the operation of the business must be a substantial professional activity of at least one of the principal owners. The principal owners and their spouses are not eligible for a credit for investment in that business. The principal owner’s parents, brothers, sisters and children (and their spouses) are not eligible for a credit for investment in that business if they have any existing ownership in that business. Investors may participate in the operation of the business on a part time basis.

4. The business must be formed as a corporation, partnership, limited liability company, joint venture, or other legal business entity, and, if applicable, must be in good standing and authorized to do business in the State of Maine.

5. The business must be a Maine-based business. In determining whether a business is a Maine-based business, the authority will consider:

(a) Whether the business maintains a dedicated, independent physical presence in Maine;

(b) Whether a majority of employees of the business are residents of Maine;

(c) Whether a senior level officer of the business is a Maine resident, and either (i) more employees of the business reside in Maine than in any other single state; or (ii) the business has significant vendor relationships with companies located in Maine; and/or

(d) Whether the business otherwise demonstrates a significant economic impact in Maine, as determined by the Chief Executive Officer.

B. To be eligible under the Program, each investment must meet the following criteria:

1. The investment must be at-risk in the business and may not be secured by a lien on business assets or a personal guaranty of any principal owner. The investment must be provided to and used by the business for acquisition, improvement, or maintenance of real property or fixed assets, research and development or working capital, and not for repayment of equity investment. Other uses may be approved by the Chief Executive Officer on a case-by-case basis provided that the use is consistent with the purposes of the Program and is not intended to utilize the tax credit without a bona fide, corresponding benefit to the business.

The investment must be made under an agreement whereby the investment may not be repaid to the investor during the five-year period beginning on the date the cash is received by the business, unless circumstances, such as the sale of the business, result in significant change in ownership or operations of the business, as determined in the discretion of the Chief Executive Officer. Any early repayment must be approved in advance by the Chief Executive Officer. The investor may receive a reasonable return on the investment from the business in the form of royalties, stock or other ownership interests, options or warrants for additional ownership interests, interest, dividends, distributions or other form of return not intended to be a repayment of principal during the five-year period. Whether and the extent to which any such return may be paid by the business shall be determined in the sole discretion of the Chief Executive Officer prior to the payment of any return. Nothing in this paragraph is intended to limit the ability of the applicant to sell or transfer his or her interest in the enterprise or investment to another person or entity (other than the business itself or a principal owner), at any time, provided prior written notice is given to the Authority, together with a signed acknowledgement by both the transferor and the transferee that the investment remains subject to the limitations of this Rule, and provided further that the Authority finds that the intent of the transfer is not the avoidance of the limitations of the Program.

For investments made prior to January 1. 2012, the investment may not result in the investor, in conjunction with any other investors participating in the Program, owning 50% or more of the business in which the investment is made. For investments made on or after January 1, 2012, the investment may not result in the investor who applies for a tax credit owning 50% or more of the business in which the investment is made. For the purposes of this limitation, an investor’s ownership interest in an eligible business shall include all interests held in the investor’s personal name, and a pro rata share of all interests held jointly with other individuals or entities, or held by another legal entity in which the investor has an interest, including a private venture capital fund. Nothing in this subsection shall preclude an investor or private venture capital fund from making a later investment that results in its ownership interest equaling or exceeding 50% of an eligible business, so long as (i) neither the investor nor the private venture capital fund applies for a Program tax credit for such later investment, and (ii) there was no intent by the investor or the private venture capital fund to take such additional interests at the time of the original investment for which it received a Program tax credit.

The business must certify, for each investment, that the amount of the investment is necessary to allow the business to create or retain jobs in the State.

The eligible business must maintain its status as a Maine business (as determined under section 3(A)(5), and not move substantially all its operations and/or assets outside the State during the four-year period commencing on the date of an investment which is the subject of a tax credit, except in the case of an arm’s length, fair value acquisition approved by the Authority, which approval may be contingent on a partial revocation, as determined by the Authority. The Authority may revoke in whole or in part credits issued for investments in such a business that fails to comply with this requirement.

3-A Eligibility - Investments into Funds Prior to January 1, 2012 and Investments through Flow-Through Entities

Investments by investors in funds prior to January 1, 2012 and in flow-through entities will be eligible under the Program, provided each of the following criteria is met:

The amount invested by the fund or flow-through entity in an eligible business (as defined in Section 3 (A)) must be equal to or greater than the amount of the investment in the fund or flow-through entity that is the basis for receiving the tax credit. Except as provided in subparagraph (F) of this Section 3-A, tax credits for investments in funds will not be issued until the fund’s investment in such business(es) is (are) made.

Each investment received by a business from the fund or flow-through entity must be expended by such business for the purposes allowed in Section 3(B)(1), and must be certified as required by Section 3(B)(4).

Both the investor’s investment in the fund or flow-through entity, and the fund’s or flow-through entity’s investment in an eligible business must be at risk, and neither investment may be secured by a lien on business, flow-through entity or fund assets or a personal guaranty of any principal owner of an eligible business.

The investor’s investment in a fund or flow-through entity must be made under an agreement whereby the investment is subject to loss in its entirety, and may not have unilateral “put” rights during the five-year period beginning on the date the cash is received by the fund or flow-through entity. The investment by the fund or flow-through entity in any eligible business shall be governed by Section 3(B)(2), with the fund or flow-through entity being treated as the investor. Nothing in this paragraph is intended to limit the ability of the applicant to sell or transfer his or her interest in the fund or flow-through entity to another person or entity (other than the fund or flow-through entity itself, a business in which the fund or flow-through entity has invested and sought a credit for, or a principal owner thereof), or to limit the ability of the fund or flow-through entity to transfer its interest in the enterprise to another person or entity (other than a business in which the fund or flow-through entity has invested, which investment was the basis for a credit, or a principal owner thereof), at any time, provided prior written notice is given to the Authority, together with a signed acknowledgement by both the transferor and the transferee that the investment remains subject to the limitations of this Rule, and provided further that the Authority finds that the intent of the transfer is not the avoidance of the limitations of the Program.

For investments made prior to January 1. 2012, investors applying for a credit under the Program may not own 50% or more (collectively) in any eligible business receiving an investment from the fund, which investment is the subject of an application for a Program tax credit. For investments made on or after January 1, 2012, the investment may not result in the investor who applies for a tax credit owning 50% or more of the business in which the investment is made. For the purposes of this limitation, an investor’s ownership interest in an eligible business shall include all interests held in the investor’s personal name, and a pro rata share of all interests held jointly with other individuals or entities, or held by another legal entity in which the investor has an interest, including a fund, flow-through entity or private venture capital fund. Nothing in this subsection shall preclude an investor from making a later investment that results in its ownership interest equaling or exceeding 50% of an eligible business, so long as (i) the investor does not apply for a Program tax credit for such later investment, and (ii) there was no intent by the investor to take such additional interests at the time of the original investment for which it received a Program tax credit.

Notwithstanding the provisions of Section 3-A(A), for money invested in or unconditionally committed (as determined in the discretion of the Chief Executive Officer) to eligible funds after August 11, 2000, but prior to January 1, 2012, where the application is made prior to the investment of funds by the investor into the fund and/or the fund’s investment of such sums in an eligible business, the applicable fund investors may receive a tax credit certificate for up to 20% of the investment for which the investor would be eligible had the funds been invested in the fund, and in turn invested by the fund in an eligible business, provided the following conditions are met:

1. The fund is located in Maine;

2. The fund is owned and controlled primarily by residents of the State of Maine;

3. The fund has demonstrated to the satisfaction of the Authority that it has as a major investment objective, the investment in eligible businesses;

4. The investor in fact makes the full Investment in the fund; and

5. The fund in fact invests an amount equal to or greater than the amount of the investment in one or more eligible businesses.

A certificate for 20% of the investment will be issued after fulfillment of conditions 1, 2 and 3 above, assuming the fund and the prospective investment are otherwise eligible under this rule. A certificate for the remainder of the credit (or so much thereof as the investor is found eligible) will not be issued until fulfillment of conditions 4 and 5 above, so long as the fund and the investment are otherwise eligible under this rule, and provided credits remain available at such time. To the extent the fund or the investor complies with conditions 4 and 5 above, but in an amount less than the full investment as originally described, the second certificate will be issued based on the actual amount of the credit for which the investor is eligible, less the amount of credit listed on the first certificate.

Any credit awarded under this subparagraph F, prior to an investment being made in an eligible fund or in turn invested by such fund in an eligible business, will be automatically revoked by the Authority three (3) years after issued, to the extent that on or before such date the fund or the investor has not provided to the Authority evidence satisfactory to the Authority that conditions 4 and 5 above have been met. Nothing herein shall preclude an investor from receiving a credit, to the extent available, once all eligibility requirements have been met.

3-B Eligibility - Investments into Private Venture Capital Funds on or after January 1, 2012

Investments by investors made on or after January 1, 2012 in private venture capital funds will also be eligible under the Program, provided each of the following criteria is met, and to the extent applicable and required by the Authority, continues to be met under continuing certifications or agreements:

A. The amount invested by the private venture capital fund in an eligible business (as defined in Section 3(A)) must be equal to or greater than the amount of the investment in the private venture capital fund that is receiving the tax credit. Tax credits will not be issued until the private venture capital fund’s investment in such business(es) is (are) made.

Each investment received by a business from the private venture capital fund must be expended by such business for the purposes allowed in Section 3(B)(1), and must be certified as required by Section 3(B)(4).

Both the investor’s investment in the private venture capital fund and the private venture capital fund’s investment in an eligible business must be at risk, and neither investment may be secured by a lien on business or private venture capital fund assets or a personal guaranty of any principal owner of an eligible business.

The investor’s investment in a private venture capital fund must be made under an agreement whereby the investment is subject to loss in its entirety, and may not have unilateral “put” rights during the five-year period beginning on the date the cash is received by the private venture capital fund. The investment by the private venture capital fund in any eligible business shall be governed by Section 3(B)(2), with the private venture capital fund being treated as the investor. Nothing in this paragraph is intended to limit the ability of the applicant to sell or transfer his or her interest in the private venture capital fund to another person or entity (other than the private venture capital fund itself, a business in which the fund has invested and sought a credit for, or a principal owner thereof), or to limit the ability of the private venture capital fund to transfer its interest in the enterprise to another person or entity (other than a business in which the private venture capital fund has invested, which investment was the basis for a credit, or a principal owner thereof), at any time, provided prior written notice is given to the Authority, together with a signed acknowledgement by both the transferor and the transferee that the investment remains subject to the limitations of this Rule, and provided further that the Authority finds that the intent of the transfer is not the avoidance of the limitations of the Program.

No investor in a private venture capital fund seeking a tax credit may own 50% or more of any eligible business receiving an investment from the private venture capital fund, which investment is the subject of an application for a Program tax credits. No private venture capital fund seeking a tax credit may own in excess of 50% of any eligible business receiving an investment from the private venture capital fund, which investment is the subject of an application for Program tax credits. For the purposes of this limitation, an investor’s ownership interest in an eligible business shall include all interests held in the investor’s personal name, and a pro rata share of all interests held jointly with other individuals or entities or held by another legal entity in which the investor has an interest, including the private venture capital fund, and a private venture capital fund’s ownership interest shall include those interests held in its name as well as those held by or attributed to (under the language of this subsection) any of its investors. Nothing in this subsection shall preclude an investor or private venture capital fund from making a later investment that results in its ownership interest equaling or exceeding 50% of an eligible business, so long as (i) neither the investor nor the private venture capital fund applies for a Program tax credit for such later investment, and (ii) there was no intent by the investor or the private venture capital fund to take such additional interests at the time of the original investment for which it received a Program tax credit.

No member, shareholder, equity owner, beneficiary or partner in the private venture capital fund is a principal owner in any business in which the private venture capital fund invests and seeks a tax credit.

i. The business must be a Maine business, as determined under section 3(A)(5); and

ii. The eligible business in which the private venture capital fund invests and seeks a credit must maintain its status as a Maine business, as determined under section 3(A)(5), and not move substantially all its operations and/or assets outside the State during the four year period commencing on the date of an investment which is the subject of a tax credit, except in the case of an arm’s length, fair value acquisition approved by the Authority, which approval may be contingent on a partial revocation, as determined by the Authority. The Authority may revoke in whole or in part credits issued for investments in such a business that fails to comply with this requirement.

The private venture capital fund did not receive a partial Program credit under Section 3-A(F) for the investment in question.

4. Issuance of Certificates

The Chief Executive Officer shall administer the program and may issue certificates upon a determination that the requirements of this rule are met, subject to the following limitations:

A. Subject to Section 3-A(F), a certificate may be issued in an amount not more than 30% of the amount of cash actually invested in the business or fund for any investment made in a business prior to July 1, 2000; not more than 40% for investments made after July 1, 2000 (August 11, 2000 for investments in funds) but prior to July 1, 2002; not more than 60% of the amount of cash actually invested after July 1, 2002 but before January 1, 2012 in a business located in an high unemployment area; not more than 40% of the amount of cash actually invested after July 1, 2002 but before January 1, 2012 in all other businesses; not more than 60% for all investments in eligible businesses (including investments made through flow-through entities, but not including investments via a private venture capital fund) on or after January 1, 2012 but before January 1, 2014; not more than 50% for all investments in eligible businesses via a private venture capital fund on or after January 1, 2012 but before April 1, 2020; not more than 50% for all investments made by investors other than private venture capital fund on or after January 1, 2014 but before April 1, 2020; and not more than 40% for all investments made on or after April 1, 2020.

An investor may apply for a tax credit for an investment of no more than an aggregate of $500,000 in any one business (whether directly or via a flow-through entity, fund or private venture capital fund) in any consecutive three (3) - year period, provided that the investor may invest more than $500,000 in the business or fund in any consecutive three (3) - year period, but shall not be entitled to a certificate with respect to any investment in excess of an aggregate of $500,000 in such period. A private venture capital fund applying for a tax credit shall be limited to a $500,000 maximum total investment per company in any consecutive three (3) - year period, unless it certifies that it is a flow-through entity (as defined in section 1(E-2) of this rule, but without giving effect to the last sentence of such section), that the aggregate investment of such private venture capital fund when divided by the number of members, partners, stockholders, equity owners or beneficiaries, results in a number which is $500,000 or less, that no such parties shall be distributed credits or the benefits of credits attributable to more than $500,000 per company, and that no more than $3,500,000 of investments made in any eligible company by a private venture capital fund shall be entitled to credits. No investor is entitled to a certificate for an investment already made in any business or fund prior to the date an application or notice that an application is being prepared is received by the Authority.

Certificates issued with respect to investments in any one business may not exceed an aggregate of $3,500,000 in investment(s), regardless of whether said investments are made directly or via a fund, flow-through entity or Private Venture Capital Fund. Certificates issued with respect to investments in any one business may not exceed $2,000,000 in investment for any calendar year.

Except as provided below for applications attributable to certain 2014 and 2015 investments made by certain funds, applications will be processed in the order received. The Authority will not issue certificates aggregating more than the amount of tax credit certificates authorized by applicable law. Applications received on the same day shall, if approved, be awarded credits on a pro rata basis if there are insufficient credits remaining available to award the full amount requested to all approved applications received on such day. Beginning on January 1, 2014, only investments made in a calendar year are eligible for credits authorized for such year, provided however, for credits authorized for calendar year 2014, only investments made on or after the effective date of PL 2013 Ch. 438 (the “2014 Effective Date”), but on or before December 31, 2014 shall be eligible for credits for such year, unless such investments are made by a fund that received a partial Program credit under Section 3-A(F) prior to January 1, 2014 (“Grandfathered Funds”), in which case the investment can be made at any time during calendar year 2014. For credits authorized for calendar year 2014 and calendar year 2015, Grandfathered Funds shall have priority for the remainder of their Program credit over all other applications for credits for such year. $310,000 of credits authorized for 2014 shall be reserved for Grandfathered Funds by the Authority, with the reserved amounts being available first to Grandfathered Funds that meet all the requirements of this Rule, and who provide proof of required investments to the Authority within 30 days of the investment. The reserved amount for 2014 shall be reduced by any credits awarded to such Grandfathered Funds on or after January 1, 2014, and absent proof of eligible 2014 investments by such Grandfathered Funds by January 31, 2015, any remainder of the 2014 reservation shall lapse and be available for other eligible 2014 investments, to be awarded on a first-come, first-served basis, provided however, no applications for 2014 credits will be accepted by the Authority other than those of Grandfathered Funds, prior to the 2014 Effective Date. The Authority shall reserve the lesser of (a) $310,000 less the amount of credits awarded to Grandfathered Funds for 2014, or (b) $235,000, for credits authorized for 2015 with the reserved amounts being available first to Grandfathered Funds that meet all the requirements of this Rule, and who provide proof of required investments to the Authority within 30 days of the investment. The reserved amount for 2015 shall be reduced by any credits awarded to such Grandfathered Funds for investments made on or after January 1, 2015, and absent proof of eligible 2015 investments by such Grandfathered Funds by March 31, 2015, any remainder of the 2015 reservation shall lapse and be available for other eligible 2015 investments, to be awarded on a first come first served basis.

For investors other than Grandfathered Funds, the Authority will accept applications for 2015 tax credits in calendar year 2014 (but following the Effective Date), and will reserve up to $1,000,000 in 2015 tax credits for investments that meet the following criteria: (a) the investment is made in the form of a convertible loan (convertible to equity) funded in 2014; (b) the loan is converted to an eligible equity investment on or after January 1, 2015, and on or before January 31, 2015; (c) proof of the conversion is provided to the Authority on or before February 28, 2015. Completed applications for this specific reservation of 2015 credits will be accepted on a first-come, first-served basis, but will not be deemed complete and will not be considered eligible for a reservation until proof of funding of the convertible loan is provided to the Authority. Any 2015 credits so reserved, but not awarded to investors meeting the requirements of this paragraph shall lapse, and be available to other 2015 investments on a first-come, first-served basis.

E. In no event shall issuance of a certificate be deemed to be an endorsement of the business, flow-through entity or fund receiving the investment or the prudence of the investment, nor shall the Authority be responsible to investors for any losses on such investments. The Authority is not obligated to review the financial or business prospects of any business, flow-through entity or fund or to review or approve any materials used by the business, flow-through entity or fund to solicit investment.

F. With respect to certificates issued on account of investments made by flow-through entities where certificates are requested in the names of the individual owners of the entity and not the name of the flow-through entity, the entity must designate the taxpayer to receive the credit(s) and demonstrate that one of the following is true: (i) the percentage of credits issued or to be issued to such taxpayer, out of the total credits issued on account of the flow-through entity’s investment for which the credit is sought, is equal to or less than such taxpayers percentage ownership or rights in the flow-through entity; or (ii) such taxpayer directly contributed to the flow-through entity, for the purpose of making the eligible investment, an amount which would have entitled such taxpayer to receive the credit had such contribution been used as an investment directly in the eligible business. Where separate certificates are issued for one investment in an eligible business via a flow-through entity, each request for a certificate shall be made with a separate application and shall be accompanied by the applicable application fee.

5. Reserved.

6. Effect of Certificates; Conditions; Revocation; Reporting

A. A recipient of a certificate shall be entitled to a tax credit in the amount of the certificate, and such credit must be taken in conformance with the requirements of 36 M.R.S.A. Section 5216-B

B. The Chief Executive Officer may establish conditions on the use of invested monies or repayment terms which conditions are in addition to those established in this rule, if the Chief Executive Officer determines such conditions are necessary or desirable in order to assure that the purposes of the Program are carried out.

The Chief Executive Officer may revoke a certificate if any representation to the Authority in connection with the application for the certificate proves to have been false when made or if the investor violates any conditions established by the Authority and stated in this rule or in the certificate. The revocation may be in full or in part as the Chief Executive Officer may determine, and shall be communicated to the investor and the State Tax Assessor, provided that the investor shall have an opportunity to appeal any revocation to the members prior to notification of the State Tax Assessor.

F. Every business eligible to have investors receive a tax credit under the Program must, for the year its application is approved, and continuing each calendar year thereafter through and including the three (3) years following the year for which the last certificate is issued, report to the Authority the following information if so requested by the Authority: (1) the total amount of private investment received, both those investments qualifying for Program credits and those not qualifying; (2) the total number of employees employed as of December 31; (3) the total number and geographic location of jobs created and retained by the eligible business stated separately for all jobs in the State and for those jobs that would not have been created or retained in the absence of the credit; (4) the total annual payroll of the eligible business stated separately for all employees in the State and for those employees who would not have been employed in the absence of the credit; (5) total sales revenue of the eligible business stated separately within and outside the State; and (6) such other information as the Authority shall request. Such information shall be submitted on a form provided by the Authority and must be received by the deadline set by the Authority. In the event such information is not timely submitted, the Chief Executive Officer may revoke the credits awarded in any one or more of the preceding four (4) years and or may revoke the eligibility of such business to participate in the Program.

G. An investor eligible for a tax credit under this section shall notify the authority when a business that received an investment from that investor eligible for a credit under this section ceases operations and the likely reasons for the cessation of business.

H. The authority shall report annually to the joint standing committee of the Legislature having jurisdiction over taxation matters and to the Office of Program Evaluation and Government Accountability on all activity under this section during the prior calendar year. The authority shall identify in its report businesses receiving investments eligible for a credit under this section and the authority's determination as to whether the investments would have been made in the absence of the credit.

7. Public Information

The names of participating investors and funds, the amount of certificates issued to each investor, the names of businesses benefiting from investments, the nature of the business and the intended use of proceeds shall be public information.

8. Appeal

In the event that an application is rejected in full or in part by the Chief Executive Officer, or in the event that conditions are imposed by the Chief Executive Officer in the certificate, or if the Chief Executive Officer determines that a certificate should be revoked, the investor and the business or fund shall have the right to appeal the Chief Executive Officer's decision to the members of the Authority. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed shall be given to the Chief Executive Officer in writing within 20 days after the date on which the Chief Executive Officer has mailed the notice of decision to the investor and the business or fund. The appeal shall be heard at a meeting of the members and the investor or a principal owner of the business or principal manager of the fund must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the decision. If new evidence or information is to be submitted, it should be submitted to the Chief Executive Officer with a request for reconsideration. The decision of the Chief Executive Officer shall be final unless the members determine that it was arbitrary, capricious or an abuse of discretion, in which event the members may reverse the decision and direct the Chief Executive Officer to take such further action as would be consistent with their decision.

9. Waiver of Rule

The Chief Executive Officer may waive any requirements of this rule, except to the extent that the requirement is mandated by statute, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. c. 110, subchapter 1 §969‑A(14); subchapter 9 §1100-T
• EFFECTIVE DATE: August 28, 1988
• AMENDED: May 9, 1992
• AMENDED: July 7, 1992 – (Amendment 1)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: October 14, 1997 – (Amendment 2)
• AMENDED: July 13, 1998 – (Amendment 3)
• CORRECTIONS: August 12, 1998 - 1(H), 3(A)(2), 3-A(A, D)
• AMENDED: September 5, 2000 – (Amendment 4)
• NON-SUBSTANTIVE CORRECTION: February 19, 2001 - corrected latest effective date
• AMENDED: September 17, 2002 – (Amendment 5)
• AMENDED: February 13, 2011 – filing 2011-48 (Amendment 6)
• AMENDED: January 1, 2012 – filing 2011-479 (Amendment 7)
• AMENDED: May 7, 2014 – filing 2014-087 (Amendment 8)
• AMENDED: July X, 2020 –filing 2020-XXX (Amendment 9)
• APAO ACCESSIBILITY CHECK: December 16, 2025 (no issues detected)
• AMENDED: December 20, 2025 – 2025-243 (Amendment 10)

Chapter 309 Waste Reduction and Recycling Loan Fund Program

Code Me. R. 94-457 Ch. 309 Waste Reduction and Recycling Loan Fund Program {#sec-94-457-ch.-309 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 309}

1. Definitions:

2. Defined Terms:

A. "Act" means the Finance Authority of Maine Act.

B. "Authority" means the Finance Authority of Maine.

C. "Eligible Borrower" means a person, or for-profit business entity which meets the criteria specified in Section 3 of this Rule.

D. "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the direction of the Chief Executive Officer.

E. "Interest Rate" means the amount of annual interest charged on the principal balance of the loan.

F. "Loan" means a loan from the Waste Reduction and Recycling Loan Fund.

G. "Loan Commitment" means a letter from the Chief Executive Officer or designee to an applicant agreeing to make a loan subject to terms, conditions and requirements stated therein.

H. "Members" means the members of the Finance Authority of Maine.

I. "Note" means a written agreement between the Authority and Borrower, wherein the Borrower promises to repay the loan according to terms and conditions.

J. "Post-Consumer material" means any residual material after use by a product's intended end user, other than industrial users.

K. "Program" means Waste Reduction and Recycling Loan Fund Program.

L. "Project" means any building, structure, machinery, equipment or facility which may be considered necessary for recovery, separation, remanufacture or reuse of materials contained in solid or hazardous waste or for the reduced generation of solid or hazardous waste, together with all land, property rights, rights-of-way, franchises, easements and interests in land necessary or convenient for the construction or operation of the project.

M. "State Plan" means the State Waste Management and Recycling Plan as provided for in P.L. 1989, c. 585 §2122.

2. Program Implementation:

The program shall be administered by and is delegated to the Chief Executive Officer. The Authority may provide financial assistance in the form of a direct loan to an eligible borrower on such terms and conditions as the Chief Executive Officer may require or approve. Assistance under this program may be combined, to the extent possible, with assistance under the Authority's other programs.

3. Eligibility: To be eligible for financial assistance under the program, a borrower must demonstrate each of the following:

A. The Borrower is the owner or operator of a project which is:

1. designed to substantially reduce or eliminate the production in a trade or business of solid waste as defined in Title 38, Section 1308-C; or

2. devoted to resource recovery, as defined in Title 38, Section 1303-C, except that the combustion of solid or hazardous waste shall not be considered resource recovery for purposes of this Rule, or

3. devoted to the reuse of post-consumer materials and

B. The project will not result in a net increase in solid or hazardous waste to be disposed of within the State.

C. The Borrower demonstrates the ability to repay the loan.

D. The Borrower demonstrates that other sources of capital will be used to finance the Project.

E. The Project is located in Maine.

F. At least ninety percent (90%) of the waste handled by the Project is generated in Maine.

G. The Project conforms with the goals of the State Plan.

4. Application Procedure:

A. The borrower shall complete and return to the Authority a Waste Reduction and Recycling Loan Fund application, including supporting schedules. No application will be approved unless the Chief Executive Officer determines that the application is complete, and the borrower is eligible.

B. The Authority will determine the financial viability of the applicant.

C. The Authority will approve or deny applications from eligible borrowers based on the following:

1. The economic feasibility of the proposal.

2. The adequacy of security offered as collateral.

3. Borrower's ability to repay the loan based on financial status and collateral offered, as determined by the Authority.

D. The Authority will issue a commitment for financing to all approved applicants for which there are sufficient funds to complete the loan.

E. The Authority may approve an application pending receipt of sufficient funds to provide the approved financial assistance.

5. Loan Terms and Conditions, Premiums, Fees and Other Charges:

A. Periodic payment of principal and interest shall be established.

B. The loan amount shall not exceed $100,000.

C. The loan term shall not exceed seven (7) years.

D. The interest rate on each loan shall be determined based on the amount of the total Project financing contributed (other than working capital financing or financing collateralized by accounts receivable, inventory or good will) to the Project from sources other than the Waste Reduction and Recycling Loan Fund. Such source of funds must be confirmed to the satisfaction of the Chief Executive Officer. The loan interest rate shall be determined as follows:

Rate Financing Contributed From Other Sources

4% 50% or more

8% Less than 50%

In the event of default the Authority may assess interest at the prime rate plus 2% from the date of any such default.

E. Additional requirements and covenants of each loan may be established, provided that each borrower shall at minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the Chief Executive Officer.

F. The borrower shall pay a loan origination fee equal to 2% of the loan amount at closing and shall be responsible for any out-of-pocket costs and expenses of closing, administering and collecting the loan.

6. Collateral.

A. All loans shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless a compelling reason justifies the waiver of this requirement.

B. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored in the State when not in use.

7. Commitment:

A. Upon approval of a loan application by the Chief Executive Officer, a commitment will be issued setting forth the terms and conditions upon which the loan will be extended.

B. In the event the Chief Executive Officer denies any application, the Chief Executive Officer will promptly send the applicant notice containing reasons for the rejection. The notice shall include a statement of the applicant's right to appeal the Chief Executive Officer's decision to the members.

8. Loan Documentation:

The borrower will be required to provide and execute such documentation as the Chief Executive Officer deems necessary to ensure that the borrower and any guarantors have binding, enforceable obligations to repay the loan and that the Authority has such valid and enforceable mortgages, security interests and assignments as necessary to protect the interests of the Authority. The Authority may require the borrower to have independent counsel for the execution of the documents.

9. Appeal to the Members:

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications. Notice of the appeal, together with a statement of the reasons the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mailed the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the denial. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which even the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

10. Waiver of Rule:

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

EFFECTIVE DATE: July 14, 1990

AMENDED: June 11, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

AMENDED: March 30, 1997

94-457 Chapter 309 page 6

Chapter 311 Economic Recovery Program

Code Me. R. 94-457 Ch. 311 Economic Recovery Program {#sec-94-457-ch.-311 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 311}

Summary: This rule establishes the procedures, standards and fees applicable to borrowers applying for loans from the Authority's program of direct loans for distressed but viable businesses unable to obtain necessary credit from other sources.

1. Definitions

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

(1) "Borrower" means a person or entity which meets the eligibility requirements set forth in section 3 of this rule, and includes a prospective borrower where the context requires. A borrower includes an individual or entity which is the recipient or beneficiary of a loan and also includes any related entity having 50% or greater common ownership or beneficial interest with the borrower or any individual or entity having a 50% or greater ownership or beneficial interest in the borrower.

(2) "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

(2-A) “Fund” means the economic recovery program fund established under 10 M.R.S.A. §1023-I.

(2-B) “Loan” means any program funds disbursed to a borrower, regardless of its payment terms and structure.

(3) "Loan commitment" means a letter from the chief executive officer to a borrower agreeing to make a loan to a borrower on the terms and conditions and subject to the requirements stated therein.

(4) "Members" means the members of the Authority appointed pursuant to the Act.

(5) "Program" means the Economic Recovery Program governed by this rule and the Act.

(6) "State" means the State of Maine.

(7) "Wall street prime" means the highest rate of interest as published in the Wall Street Journal.

2. Program Implementation and Assistance Provided

The program shall be administered by and is delegated to, the chief executive officer, except to the extent that any proposed liability under this program pertaining to a single borrower or borrowers in common ownership exceeds $500,000 or when proposed liability under this program to such borrower or borrowers, in combination with liability under the Authority’s Loan Insurance Program exceeds $1,000,000. The Authority may provide financial assistance of up to $1,000,000 to an eligible borrower on such terms and conditions as the chief executive officer may require or approve. Assistance under this program may be combined, to the extent possible, with assistance under other Authority programs.

3. Eligibility

To be eligible for financial assistance under the program, a borrower must demonstrate each of the following:

A. The business receiving assistance is a manufacturing, industrial, recreational or natural resource enterprise.

B. The business receiving assistance must be located within the State.

C. The business receiving assistance must provide significant public benefit to the State in relation to the amount of the financial assistance. Public benefits include, but are not limited to, preservation of jobs, increased opportunities for employment, increased capital flows, particularly capital flowing in from outside the State, and increased state and municipal tax revenues.

D. The business is creditworthy and reasonably likely to repay its obligations, including the proposed loan.

E. The business receiving assistance is a for-profit or nonprofit commercial entity.

F. The business has obtained funds from all other reasonably available sources of capital, which shall include, but not be limited to loans from financial institutions, the resources of the borrower and the personal resources of the owner of the borrower which in the case of a corporation or partnership includes the personal resources of any individual with a 50% or greater ownership interest.

G. The borrower and the business have insufficient access to other funds.

H. The public benefits to be obtained by making the financial assistance available will not be realized in the absence of receipt of the loan.

4. Application Procedure and Content

Each borrower shall submit an application to the chief executive officer on such forms and with such attachments as the chief executive officer may require consistent with the purposes of the program and this rule. The chief executive officer will review each application for completeness and eligibility. Applications which are not substantially complete may be deemed not received until completed. The chief executive officer shall determine when an application is received, which determination shall be final. An application shall contain, at a minimum, such general information identifying and describing the borrower, the proposed sources and uses of the program funds and other funds to be obtained concomitantly, as specified in the application form and as otherwise requested by the chief executive officer.

5. Criteria and Considerations

A. No application will be approved unless the chief executive officer determines that the borrower is eligible, including a determination that the loan proceeds will be put to an appropriate use.

B. No application will be approved unless the chief executive officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

6. Terms and Conditions; Premiums, Fees and Other Charges

A. Periodic payments of principal and interest shall be established in accordance with a borrower's needs. The authority may defer principal and interest payments as necessary.

B. Loan terms shall not exceed five (5) years, although interim payments may be based on amortizations of up to twenty (20) years in the case of loans primarily secured by real estate, up to ten (10) years in the case of loans primarily secured by machinery and equipment and up to seven (7) years for other loans.

C. All loans shall accrue interest at Wall Street prime plus 2% fixed on the date of the Commitment. Exceptions may be made by the Authority in cases where the borrower demonstrates a need for a lower rate of interest and such lower rate of interest is justified by the magnitude of the public benefit to be derived from the project. The authority may require payments in addition to or in place of interest, which may include royalties or additional payments based on sales, net cash flow or other financial measures and rights to equity in the business. Such additional payments may be required in situations where the risk of providing the financing is such that additional payments are reasonably required to provide a return appropriate to the authority’s risk.

D. Additional requirements and covenants of each loan may be established, provided that each borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if the borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the chief executive officer.

E. The borrower shall pay a loan origination fee equal to 1% of the loan amount at closing and shall be responsible for the authority’s attorneys fees (whether of the authority’s legal division or outside Counsel) and all out of pocket costs and expenses of underwriting, closing, administering and collecting the loan. The authority shall also be entitled to collect from the fund, a loan underwriting fee of 1% of the requested loan amount for every loan application received whether or not the loan is approved or made, plus any reasonable out-of-pocket underwriting costs not paid by the borrower. The authority shall also be entitled to collect from the fund an annual loan administration fee in an amount equal to 2% of the outstanding principal balance of the loan remaining due on each anniversary date of each loan. At the authority’s election, the loan administration fee may be calculated and collected on a monthly or quarterly basis.

7. Loan Priority

[Reserved]

8. Appeal to the Members

In the event that an application is rejected by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within 20 days after the date the chief executive officer mails the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the rejection. The decision of the chief executive officer shall be final unless the members determine that the rejection by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application. If the chief executive officer’s decision is upheld on appeal or in the event no appeal is timely taken by an applicant on the denial of a loan application, the applicant shall not be entitled to submit another application which is not materially and substantially different than the denied application, as determined by the chief executive officer, for a period of six (6) months from the date of the denied application.

9. Waiver of Rule

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. Sections 969-A(14), 1023-I and 1026-J
• EFFECTIVE DATES: Emergency Rule: Immediately upon passage and approval of the referendum question contained in Part A of Chapter 113 of the Private & Special Laws of 1992, and for a period of ninety (90) days thereafter. Original Rule: September 14, 1992. Amendment 1: July 1, 1999.
• ORIGINAL RULE: September 14, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 7 and 29, 1996 - minor spelling
• NON-SUBSTANTIVE CORRECTIONS: August 19, 1997 - minor capitalization; removal of redundant word “Authority” from 1(3)
• AMENDED: July 1, 1999
• AMENDED: August 30, 2000
• AMENDED: June 7, 2011 – Amendment 3, filing 2011-173
• AMENDED: 94-457 Chapter 311 page 5

Chapter 312 Intermediary Relending Program

Code Me. R. 94-457 Ch. 312 Intermediary Relending Program {#sec-94-457-ch.-312 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 312}

Summary: This rule establishes the procedures, standards and fees applicable to Borrowers applying for loans from the Authority's program of direct loans for the finance of business facilities and community development projects in rural areas as set forth in the Farmer's Home Administration ("FmHA") Instruction 1948-C (the "FmHA Instruction").

1. DEFINITIONS

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

(1) "Agricultural production" means the cultivation, production (growing), harvesting, either directly or through integrated operations, of agricultural products (crops, animals, birds and marine life, either for fiber or food for human consumption, and disposal or marketing thereof, the raising, housing, feeding, breeding, hatching, control and/or management of farm and domestic animals).

(2) "Authorized fees" means loan packaging fees, environmental data collection fees, and other professional fees rendered by professionals generally licensed by the State or accreditation associations, such as engineers, architects, lawyers,, accountants, and appraisers. Such fees must be fully documented and reasonable and customary in the opinion of the chief executive officer.

(3) "Aquaculture" means the culture or husbandry of aquatic animals or plants by private industry for commercial purposes including the culture and growing of fish by private industry for the purpose of granting or augmenting publicly-owned or regulated stocks of fish.

(4) "Borrower" means a person or entity which meets the eligibility requirements set forth in section 3 of this rule, and includes a prospective Borrower where the context requires and is referred to as the ultimate recipient in FmHA Instruction 1948-C. For the purposes of determining eligibility, any affiliate, parent, subsidiary, entity, trust or individual with 20% or greater common ownership with the borrower shall be considered the borrower.

(5) "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

(6) "Loan commitment" means a letter from the chief executive officer to a Borrower agreeing to make a loan to a Borrower on the terms and conditions and subject to the requirements stated therein.

(7) "Low-income" means the level of income of a person or family which is at or below the Poverty Guidelines as defined in Section 673(2) of the Community Services Block Grant Act (42 U.S.C. §9902(2).

(8) "Market value" means the most probable price which property should bring, as of a specific date in a competitive and open market, assuming the buyer and seller are prudent and knowledgeable, and the price is not affected by undue stimulus such as forced sale or loan interest subsidy.

(9) "Members means the members of the Authority appointed pursuant to the Act.

(10) "Principals of intermediary" means the members, officers and directors directly involved in the operation and management of the Authority.

(11) "Program" means the Intermediary Relending Program governed by 7 U.S.C. §2007a, the rules and regulations promulgated thereunder and this rule.

(12) "Rural area" means all areas of the State not within the outer boundary of any city having a population of twenty-five thousand or more.

(13) "State" means the State of Maine.

(14) "Working capital" means the excess of current assets over current liabilities. It identifies the liquid portion of total enterprise capital which constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the business.

2. Program Implementation and Assistance Provided

The program shall be administered by and is delegated to the chief executive officer. The Authority may provide financial assistance in the form of a direct loan in the amount of up to 75% of the total project cost as set forth in the application, up to $250,000, to an eligible Borrower on such terms and conditions as the chief executive officer may require or approve. Assistance under this program may be combined, to the extent possible, with assistance under other Authority programs.

3. Applicant Eligibility

To be eligible for financial assistance under the program, a Borrower must demonstrate each of the following:

A. The project to be financed must to the maximum extent possible use labor of low-income persons, farm families, and displaced farm families needing additional income to supplement their farming operations. The Borrower must provide a certification with the application of the percentage of its workforce which satisfies this criterion.

B. The project must be located within a rural area of the State.

C. The proposal is innovative in providing services and or products to the public.

D. The Borrower is creditworthy and reasonably likely to repay the loan.

E. The Borrower is a for-profit or nonprofit commercial entity (including sole proprietorships), other than a charitable or educational institution, church, organization affiliated with or sponsored by a church, or a fraternal organization.

F. The Borrower has obtained funds from other sources of capital, including equity and debt, for at least 25% of the project contemplated.

G. That the funds will not be used to purchase goods or services or render assistance in excess of what is needed to accomplish the Borrower's purpose, as determined by the Authority.

H. That the funds will not be used for distribution or payment to the owner, partners, shareholders, or beneficiaries of the Borrower or members of their families when such persons will retain any portion of their equity in the Borrower.

I. That the funds will not be used to provide assistance to government employees or military personnel.

J. That the funds will not be used to provide assistance to principals or employees of the Authority who are directors, officers or have major ownership (20 percent or more) in the Borrower or an entity related to the Borrower.

K. The Borrower, if an individual, is a citizen of the United States or one or more citizens of the United States own at least 51 % of the Borrower.

4. Project Eligibility

A. Program funds may be used only for the following purposes:

(1) Business acquisitions, construction, conversion, enlargement, repair, modernization or development cost.

(2) The purchase and development of land, easements, rights-of-way, building, facilities, leases or materials.

(3) The purchase of equipment, leasehold improvements, machinery or supplies.

(4) Pollution control and abatement.

(5) Transportation services.

(6) Startup operating costs and working capital.

(7) Interest (including interest in interim financing) during the period before the facility becomes income producing, but not to exceed three (3) years.

(8) Feasibility studies.

(9) Authorized fees.

(10) Aquaculture, including conservation, development and utilization of water for aquaculture.

(11) Commercial nurseries primarily engaged in the production of ornamental plants and trees and other nursery products such as bulbs, florists' greens, flowers, shrubbery, flower and vegetable seeds, sod, the growing of vegetables from seed to the transplant stage.

(12) Forestry, which includes establishments primarily engaged in the operation of timber tracts, tree farms, forest nurseries, and related activities such as reforestation.

(13) Livestock and poultry processing.

B. Program funds may not be used for the following purposes:

(1) For agricultural production except as specifically identified in Section A.

(2) For the transfer of ownership unless the loan will keep the business from closing, or prevent the loss of employment opportunities in the area, or provide expanded job opportunities.

(3) For community antenna television services or facilities

(4) For any legitimate business activity when more than ten percent (10%) of the annual gross revenue is derived from legalized gambling activity.

(5) For any illegal activity.

(6) For any otherwise eligible project that is in violation of either a Federal, State or local environmental protection law or regulation or an enforceable land use restriction unless the financial assistance will result in curing or removing the violation.

(7) For any hotels, motels, tourist homes, or convention centers.

(8) For any tourist, recreation, or amusement centers.

5. Application Procedure and Content

A. Each Borrower shall submit an application to the chief executive officer on such forms and with such attachments as the chief executive officer may require consistent with the purposes of the program and this rule. An application shall contain, at a minimum, such general information identifying and describing the Borrower, the proposed project, and the proposed financing of the project as specified in the application form, Form FmHA 1940 - 20, Request for Environmental Information and such other information as requested by the chief executive officer.

B. The chief executive officer will review each application for completeness and eligibility. Applications which are not substantially complete may be deemed not received until completed. The chief executive officer shall determine when an application is received, which determination shall be final.

C. Upon approval, the chief executive officer shall submit the application and all supporting material requested to the FmHA. The Authority may issue a commitment of loan funds to a Borrower conditioned on receipt of an affirmative decision to proceed with the loan by the FmHA. No loan funds may be disbursed without the affirmative decision of the FmHA.

6. Criteria and Considerations

A. No application will be approved unless the chief executive officer determines that the Borrower is eligible, including a determination that the loan proceeds will be put to an appropriate use.

B. No application will be approved unless the chief executive officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

7. Terms and Conditions; Premiums, Fees and Other Charges

A. Periodic payments of principal and interest shall be established in accordance with a Borrower's needs as determined by the authority. The Authority may defer principal and interest payments as it deems necessary.

B. Loans shall not exceed terms of twenty (20) years in the case of loans primarily secured by real estate, ten (10) years in the case of loans primarily secured by machinery and equipment and seven (7) years for other loans.

C. All loans shall accrue interest at the highest prime rate of interest as published in the Wall Street Journal as of the date the Commitment to make the Loan is issued. Exceptions may be made by the Authority in cases where the Borrower demonstrates a need for a lower rate of interest and such lower rate of interest is justified by the magnitude of the public benefit to be derived from the project.

D. For all loans over $30,000, real property serving as primary security will be appraised by a qualified appraiser. The chief executive officer may require an appraisal on real estate serving as secondary collateral. For all other types of property, a valuation shall be made using any recognized, standard technique for the type of property involved (including standard reference manuals).

E. Additional requirements and covenants of each loan may be established, provided that each Borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if the Borrower is located in a flood plain, and comply with all applicable Federal, State and local laws, regulations, ordinances and orders. Each Borrower shall also be required to maintain such environmental liability insurance as may be required by the chief executive officer. Assignment of key person life insurance will ordinarily be required.

F. The Borrower shall pay a nonrefundable commitment fee of 0.5% upon acceptance of the Commitment. The Borrower shall pay loan origination fee equal to 1.5% of the loan amount at closing and shall be responsible for the Authority's out of pocket costs and expenses of closing, administering and collecting the loan, including but not limited to all fees which may be incurred by the Authority to assure professional oversight and management of construction or rehabilitation work and all reasonable attorney's fees of in-house and/or outside counsel. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the Borrower shall pay to the Authority an annual loan administration fee in an amount equal to ten dollars ($10.00) per month.

G. Ordinarily, the Authority will obtain the unconditional unlimited guaranty of all individuals or entities with 20% or greater ownership interest in the Borrower, directly or indirectly.

H. Remaining loan balances may be accelerated in the event the Borrower moves all or substantially all of its operations from the State.

8. Loan Priority

In the event the demand for loans exceeds the funds available in the loan fund, the Authority shall consider the following in determining the distribution of the loan fund.

A. The percentage of the workforce and number of workers who are members of families with income below the poverty line.

B. The number of jobs likely to be retained or created in the event the loan is made.

C. The likelihood of the long-term success of the Borrower if assistance is awarded.

D. The availability of other sources of assistance to supplement a loan under this program and other sources of assistance from the State.

The authority may determine in the discretion of the chief executive officer that a reasonable and prudent amount shall be retained in the fund, despite any application which may be pending.

9. Appeal to the Members

In the event that an application is rejected by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, shall be given to the chief executive officer in writing within 20 days after the date the chief executive officer mails the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the rejection.

The decision of the chief executive officer shall be final unless the members determine that the rejection by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application. Priority of any application with respect to which the chief executive officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

10. Waiver of Rule

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act or the FmHA Instruction, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. Sections 969-A(14)
• EFFECTIVE DATE: Original Rule: July 31, 1993
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling
• AMENDED: June 7, 2011 – Amendment 1, filing 2011-174
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 314 Regional Economic Development Revolving Loan Program

Code Me. R. 94-457 Ch. 314 Regional Economic Development Revolving Loan Program {#sec-94-457-ch.-314 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 314}

Summary: This rule establishes the procedures and standards applicable to eligible local, regional or statewide nonprofit or governmental economic development organizations which may receive disbursements from the Regional Economic Development Revolving Loan Program Fund administered by the Authority for purposes of making loans to eligible borrowers in order to create or retain jobs, as well as revitalize downtowns and build strong communities and a sustainable economy, or for quality child care projects. The Authority may make disbursements of up to $3,500,000 to applicants, pursuant to a contract, and the applicants may make loans of up to $350,000 to eligible borrowers within the parameters established by this rule. The Authority may also make direct loans to eligible borrowers for quality childcare projects.

SECTION 1. Definitions

Defined Terms. The following terms, some of which are defined in the Finance Authority of Maine Act , 10 MRSA §961 et seq. (the “Act”), shall have the following meanings in this rule:

“Applicant” means a local, regional or statewide nonprofit or governmental economic development corporation or entity that may have submitted an application for program funds to the Authority.

“Authority” means the Finance Authority of Maine.

“Borrower” means a sole proprietorship, a limited liability company, partnership or corporation which has applied to receive financial assistance pursuant to this program from an applicant pursuant to this program, or, in the case of an applicant seeking a loan for a quality child care project, has applied to receive financial assistance from the Authority.

“Chief Executive Officer” means the Authority's Chief Executive Officer or any person acting under the delegated authority and supervision of the Chief Executive Officer.

“Commitment” means a letter from the Authority signed by the Chief Executive Officer to make a disbursement from the fund to an applicant, or with regard to a quality child care project, to a borrower, on the terms and conditions and subject to the requirements therein.

“Community facilities” means buildings having available at least fifty-one percent (51%) of square footage to be used at least part of the time for public meetings and activities. Such meetings and activities may include services that foster job creation and provide access for individuals in the community to such services as long-term care, respite care, health care, education, and cultural activities.

“Contract” means a contract between the Authority and any applicant for provision of a disbursement from the fund.

“Eligible Project” means a project meeting the criteria set forth in this rule.

“Fund” means the Regional Economic Development Revolving Loan Program Fund, established pursuant to 10 MRSA §1026-M and administered by the Authority.

“Members” means the members of the Board of Directors of the Finance Authority of Maine.

“Mixed-use real estate” means projects involving both housing and commercial activities wherein at least fifty-one percent (51%) of the square-footage is used for commercial purposes.

“Prime Rate” means the lowest bank prime rate of interest as published in the Wall Street Journal.

“Program” means the Regional Economic Development Revolving Loan Program as described in and governed by the Act and this rule.

“Quality child care project” means physical improvements to be made to a site used or to be used for providing, for compensation, regular service of care and protection for any part of a day less than 24 hours to a child or children under 16 years of age whose parents work outside the home, attend an educational program or are otherwise unable to care for their children which (1) meets all required licensing standards; and (2) utilizes recognized quality indicators for child care services approved by the Department of Health and Human Services.

“State” means the State of Maine.

“Value-added natural resource enterprises” means business or commercial activity that adds some additional value to products derived from at least one of Maine’s natural resources such as forests, land and plants, fish, water, wind, and sun.

SECTION 2. Program Implementation and Assistance Provided

The program shall be administered by and is delegated to the Chief Executive Officer. The Authority may provide financial assistance in the form of a disbursement from the fund in an amount up to $3,500,000 to an eligible applicant, which may in turn, provide financial assistance to eligible borrowers in an amount up to $350,000 in the form of a loan, in accordance with the Act and this rule. The Authority may also provide financial assistance in the form of direct loans to borrowers for quality childcare projects.

SECTION 3. Advisory Committees/Boards

The Chief Executive Officer may establish advisory committees or boards to assist applicants in developing loan or equity-like debt underwriting and administrative capacity and portfolio monitoring and servicing capabilities.

SECTION 4. Application Procedure and Content (for other than direct loans to borrowers)

From time to time, the Authority shall solicit applications for disbursements from the fund. The Authority shall specify a time within which applicants seeking consideration must have submitted a complete application. Any applications received after such time may be held for future consideration.

Each applicant shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require consistent with the purposes of the program and this rule.

The Chief Executive Officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final.

The application shall contain the following:

(1) a description of the applicant, including its funding sources, the region or regions it serves and a summary of all of its direct lending programs, including account balances, lending criteria and default rates;

(2) the methods and criteria the applicant employs for qualifying borrowers, including any lending and economic development strategies that target the types of eligible borrowers set forth in Section 9 of this rule;

(3) the fees that an applicant intends to charge to a borrower for technical or administrative assistance and for loan commitments;

(4) for disbursements not to be used for quality child care projects, the methods by which the applicant will leverage funds from other sources in an amount equal to at least two times the amount requested;

(5) the applicant's investment policy;

(6) for disbursements not to be used for quality child care projects, the applicant's strategy for creation and retention of jobs (written comprehensive plan for economic development in its area), and its strategy, if applicable, for real estate development including commercial, mixed-use real estate, and community facilities. Such a strategy must be submitted and demonstrated as part of the application process in order to make loans pursuant to Section 9(A)(1)(i);

(7) for disbursements not to be used for quality childcare projects, the applicant's existing or proposed small business marketing , and technical assistance plan;

(8) a description of the applicant's staff by organizational chart and résumé;

(9) the applicant's organizational audits and program audits shall be provided for each year the applicant has administered programs in the three most recent years;

(10) the applicant's proposed performance measurements and goals including default rates and a process for monitoring compliance therewith;

(11) the applicant's collateralization plan;

(12) the amount requested; and

(13) such other information as the Authority may require.

SECTION 5. Applicant Eligibility (for other than direct loans to borrowers)

In order to approve an application, the Chief Executive Officer must determine that the applicant, either independently or with the assistance of an advisory board or committee or by contract with appropriate agencies, organizations or individuals:

for disbursements not to be used for quality child care projects, is capable of providing financial assistance to businesses in order to create and protect jobs;

is able to prudently and effectively administer a direct loan fund;

is able to coordinate with other business assistance, employment training and social assistance programs;

for disbursements not to be used for quality child care projects, has a strategy for the creation and retention of jobs and, if applicable, a strategy for real estate development including commercial, mixed-use real estate and community facilities;

for disbursements not to be used for quality child care projects, has an effective small business marketing and technical assistance plan;

has enough expert assistance available to it to underwrite, document and service and collect loans and assist its clients; and

can provide funds from other sources in the amounts required pursuant to Section 8(B).

SECTION 6. Disbursements From the Fund (other than direct loans to borrowers)

A. Upon a determination of eligibility to receive a disbursement from the fund, the Chief Executive Officer shall determine an amount to be disbursed to an applicant that achieves the widest possible geographic range of distribution of funds, as well as the least possible duplication of disbursement of funds in any one region. The Chief Executive Officer shall take into account the following criteria:

The size of the region or regions served by the applicant and the demand for loan funds within such region or regions;

The relative demand for funds from other eligible applicants;

Whether the applicant serves statewide or a geographic area or segment of potential borrowers not served by others; and

The number of types of eligible projects referred to in Section 9(A) of this rule within the applicant's area.

B. The maximum total disbursement to any one applicant shall be $3,500,000.

C. The Chief Executive Officer may determine that a reasonable and prudent amount shall be retained in the fund despite any application that may be pending in order to have funds available to subsequent applicants. In addition, the Chief Executive Officer may determine that a reasonable and prudent amount shall be specifically designated as available only to those applicants which may be in the process of developing or retaining the necessary expertise, with or without the Authority's assistance, to meet the eligibility requirements of this program. The following criteria shall apply to disbursements from this designated fund:

The Authority may, in its discretion, determine that an eligible applicant shall receive a disbursement from this designated fund which applicant shall be further subject to the limitations set forth in this subsection. Such a determination will be based primarily on the amount requested, the overall quality of the application and the extent to which receipt of a disbursement from this designated fund will assist in building lending capacity in underserved areas;

The Authority may, in its discretion, waive any of the application or eligibility criteria, to the extent not mandated by the Act, in order to achieve wide geographic distribution of program funds and build capacity in underserved areas; and

To the extent that an applicant receives a disbursement from this designated fund, such applicant may not make a loan to an eligible borrower in excess of an amount to be set forth in the applicant's contract, without the prior written approval of the Authority.

The Chief Executive Officer shall issue a commitment to an applicant to disburse the determined amount in multiple disbursements upon satisfaction of any terms and conditions set forth therein.

In the event an applicant fails to use the funds allocated to the applicant within two years of the commitment date, the Authority may allocate the funds designated for that applicant to one or more applicants. The Authority will use its best efforts to assure that the funds are reallocated for use in the region or regions for which they were originally designated.

The Chief Executive Officer shall allocate all amounts accrued in the fund from interest earnings on the fund on a “first come, first served” basis to applicants who:

(1) Have entered into a contract with the Authority;

(2) Have disbursed the full amount originally committed to the Applicant;

(3) Have complied with all terms and conditions of their contract with the Authority; and

(4) Identify a specific borrower with an eligible project for use of the new allocation.

SECTION 7. Contracts; Fees and Expenses

An applicant must enter into a contract with the Authority regarding the funds to be disbursed. At a minimum, the contract must specify:

That each applicant shall establish its own revolving loan fund with the monies it receives from the Authority. An applicant may make loans from its own fund within the parameters of this rule.

A loan payment default rate that will be acceptable to the Authority during the term of the contract. To the extent the applicant's actual default rate exceeds that set forth in the contract, the Authority

(1) may require that all loans which the applicant proposes to make thereafter be approved by the Authority, until the applicant brings its loan payment default rate into compliance with the contract, and

(2) may require that the applicant pay to the Authority an amount equal to the difference between the acceptable default rate set forth in the contract and the actual default rate. A loan payment default shall be defined as any payment that is ninety (90) days or more past due.

That the funds are to be disbursed in periodic installments as the applicant commits to make loans to eligible borrowers, up to the original amount of the total disbursement.

That the applicant will use program funds only for eligible projects, and as otherwise set forth in this rule.

That the applicant will operate its loan program in substantial conformance with its proposal to the Authority.

That except as set forth in Section 6(C), the applicant shall be responsible for review of loan applications from eligible borrowers, determination of eligibility of those borrowers and feasibility of the project and/or approval or denial of those applications. The applicant's determination shall be final in the case of loans under $150,000 or in the case of denials in any amount. In all cases, the applicant must have the Authority's approval of any loans of $150,000 or more.

That officers or employees of the applicant or members of any credit committees of the applicant shall be barred from participation in any way and any decision regarding projects which that officer, employee or member has a direct or indirect personal financial interest.

That the Authority may withhold further funding and may require repayment of any undisbursed loan funds and loan repayments including an assignment of all loan documents if the applicant is in breach of its contract.

That the applicant may not use any monies disbursed from the fund (including that portion of loan repayments from borrowers that represent principal repayment) for administrative expenses but may charge a commitment fee of up to two percent (2%) and may use actual interest earnings, not to exceed seven percent (7%) of its outstanding program loans annually, on loans to cover reasonable operating costs, including loan fund management, technical assistance and education. To the extent interest earnings on outstanding program loans accrue, but are not paid by borrowers, these earnings may be used, when and if collected, to offset operating costs which have not been previously paid by other program loan commitment fees and interest earnings, subject to the limitations set forth in this paragraph.

That the applicant shall pay an annual fund administration fee to the Authority equal to one percent (1%) of the amount of the applicant's total disbursement which has been received by the applicant to date. To the extent that fund monies have not been disbursed, the Authority is entitled to a fund administration fee equal to one percent (1%) of those undisbursed amounts, to be derived from interest earned thereon. All such fund administration fees payable by applicants shall be determined and payable beginning on the first anniversary date of the applicant's contract. The Authority may, in its sole discretion, voluntarily reduce the amount of annual fund administration fees for all applicants if the Authority determines that such a fee reduction is warranted. Any such fee reduction may be for a specified period.

That any amounts disbursed to an applicant must be lent to the intended borrower within three (3) months of the applicant's receipt. If not lent within three (3) months, any such monies must be returned to the Authority's fund upon request of the Authority with a written explanation as to why the loan was not made.

Such other terms and conditions as the Authority deems appropriate.

SECTION 8. Loan Terms and Conditions

An applicant, and in the case of eligible quality child care projects, the Authority, may make a loan to an eligible borrower from program funds under the following terms and conditions:

Loans may not exceed $350,000 to a borrower (including an affiliated entity) for an eligible project, provided, however, for projects other than quality child care projects, approval of the Authority is required for loans of $150,000 or more, except that those applicants which have received a disbursement from the specially designated fund set forth in Section 6(C) must comply with the limitations set forth therein.

Loans of less than $50,000 and loans for quality child care projects may be for the total amount of new funds being provided to a borrower. Loans of $50,000 or more for borrowers other than quality child care projects may not exceed one-half (1/2) of the net new funds being provided to a borrower.

Each applicant shall establish interest rates, amortization schedules and repayment terms for each borrower except that loans for quality child care projects must bear a rate of interest not greater than 5%, and loans for other eligible projects may not bear a rate of interest greater than the prime rate of interest plus seven percent (7%). Direct loans from the Authority for quality child care projects shall be subject to a 1% commitment fee payable to the Authority at the time the commitment is accepted, and shall bear interest at a rate of 5%. No loan may be for a term longer than twenty (20) years.

When necessary, an applicant may provide for flexible repayment terms and may require additional payments tied to the borrower's financial success.

An applicant shall require collateral for loans but may subordinate to loans from other lenders.

Such other terms and conditions as may be determined by an applicant and approved by the Authority.

SECTION 9. Eligible Projects

A. In order for a project or borrower to be eligible for financial assistance under the program, the project or borrower must meet the criteria of subsections 2, 3, and 4, below, and must meet the criteria of subsection 1 below, as follows:

(1) The borrower has one-hundred (100) or fewer employees or annual sales of $10,000,000 or less and it consists of or involves at least one of the following:

(a) Manufacturing technologies, such as value added wood products, specialty fabricated metal and electronic products, precision manufacturing and use of composites or advanced materials;

(b) Technologies, such as advanced information systems, advanced telecommunications, energy and environmental products and services;

(c) Value-added natural resource enterprises and biological and natural resources technologies, such as aquaculture, marine technology, agriculture, forestry products and biotechnology;

(d) A business converting from defense dependencies;

(e) A business significantly engaged in export of goods or services to locations outside the State;

(f) A business that dedicates significant resources to research and development activities;

(g) Other businesses with fifteen (15) or fewer employees; and

(h) A quality child care project.

A business significantly engaged in commercial and/or mixed-use real estate and/or community facilities real estate development; and

(j) A business significantly engaged in serving tourists, such as in the area of outdoor recreation, culture and heritage and hospitality.

(2) The borrower is unable to obtain funding needed for the project from other public and private sources including the personal resources of the owners of the business borrowing from the fund.

(3) The borrower has committed all reasonably available resources to the project, obtained financial commitment from other sources of financing and demonstrated a reasonable likelihood that the loan can be repaid.

(4) The loan is not used to make distributions to or for the benefit of an owner of the business borrowing from the fund or a related entity.

B. Among eligible borrowers seeking loans for projects other than quality child care projects, an applicant shall give priority to businesses and projects with the potential of meeting one or both of the following objectives:

The financing will help the borrower pursue a business that adds significant value to raw materials or inventory;

The financing is likely to result in a long-term net increase in permanent, quality jobs, which may include ownership or self-employment opportunities that meet a local or regional need or the retention of jobs in jeopardy of being lost.

C. For loans made by applicants or made directly by the Authority for quality child care projects, not more than $15,000 of program loan proceeds shall be used for lead abatement.

1. The Authority shall reserve an amount of no less than $300,000 from the fund for loans for quality child care projects, whether made by applicants or directly by the Authority.

SECTION 10. Reports

An applicant shall report semiannually to the Authority on the projects being funded and the administration of the program. The report must include a description of each project, the amount, type and terms of assistance the project received, the number of jobs that were created or retained and other information the Authority requires. The report must contain an accounting of the loan portfolio and any loans that are past due, as well as an accounting of the applicant's operating costs incurred and charged to the program.

SECTION 11. Audit

The Authority shall review annually each applicant’s participation in the program and may, in its discretion, require an independent audit at the expense of the applicant. If the Authority determines that an applicant has used funds for ineligible purposes, the applicant shall repay those funds to the Authority for deposit into the fund. The Authority may not disburse additional funds to an applicant until it has repaid the misapplied funds and has fully complied with its obligations under the contract with the Authority. In addition to other fees the Authority is authorized to charge the fund hereunder, the Authority shall be entitle to charge the fund for reasonable costs incurred by the Authority for the performance of the audits described in this Section 11.

SECTION 12. Appeal to the Members

In the event that an applicant's application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer, in writing within 20 days after the date the Chief Executive Officer mails the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application.

In the event that a borrower's application that is reviewed by the Authority in accordance with this rule is rejected by the Chief Executive Officer, the Chief Executive Officer's determination shall be final and there shall be no further right of appeal to the members.

SECTION 13. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

SECTION 14. Effective Date

This rule as amended by Amendment 7 does not take effect unless and until the Authority receives additional funding of at least $1 million from the State pursuant to bonds issued pursuant to Public Law 2013, Chapter 596, or by state appropriation after January 1, 2015.

(APA Office Note: according to FAME, the contingency was met on June 30, 2015 when FAME received more than $1 million from the State pursuant to bonds issued pursuant to Public Law 2013 ch. 506.)

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969-A(14); 10 M.R.S.A. §1026-M(11); P.L. 1999, Ch. 401, Part OOO; PL 2003, Ch.195; PL 2009, Ch.131; 10 M.R.S. §1026-A; P.L. 2013 ch. 605
• EFFECTIVE DATE: June 11, 1995 (Original Rule)
• AMENDED: November 2, 1998 (Amendment 1)
• AMENDED: January 17, 2000 (Amendment 2)
• AMENDED: September 17, 2002 (Amendment 3), changes to sections 2, 6(B) and 7(I)
• AMENDED: November 4, 2003 (Amendment 4)
• AMENDED: January 3, 2010 (Amendment 5)
• AMENDED: June 8, 2011 (Amendment 6)
• AMENDED: April 11, 2015 – filing 2015-063 (Amendment 7)
• AMENDED: April 24, 2015 – Summary, and Section 9(A) corrected
• AMENDED: NOTIFICATION RECEIVED OF APPROPRIATED FUNDS BY SECRETARY OF STATE (CEC, APA):
• AMENDED: July 23, 2015 – see Section 14 of this rule.
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 315 Family Development Accounts Program

Code Me. R. 94-457 Ch. 315 Family Development Account Program {#sec-94-457-ch.-315 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 315}

Summary: This rule establishes the procedures and standards applicable to community development organizations which may administer family development accounts.

1. Definitions

The following terms, some of which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. §961 et seq . (the "Act"), shall have the following meanings in this rule:

A. "Account holder" means a person (or, in the case of joint account holders, persons) whose family income is below 200% of the nonfarm income official poverty line as defined by the federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget Reconciliation Act of 1981, Section 673, subsection 2 codified at 42 U.S.C. § 9902(2), § 673(2) of the Omnibus Budget Reconciliation Act of 1981, as annually amended, who owns a family development account and who, after opening the account, meets the criteria of Section 8.

B. "Applicant" means a community development organization which has submitted an application to administer family development accounts.

C. "Authority" means the Finance Authority of Maine.

D. "Chief Executive Officer" means the Authority's Chief Executive Officer or any person acting under the delegated authority and supervision of the Chief Executive Officer.

E. "Committee" means the advisory committee on family development accounts.

F. "Community development organization" or "CDO" means a charitable organization, a community action agency or a nonprofit organization under the Internal Revenue Code, Section 501(c)(3) approved by the Authority to administer a family development account program.

G. "Contract" means a contract between the Authority and any applicant setting forth the terms of the applicant's participation as an administrator of family development accounts.

H. "Eligible uses" means a use permitted under Section 9 of this rule.

I. "Family development account" or "account" means a financial instrument established pursuant to this rule.

J. "Family development account reserve fund" means the fund created by an approved community development organization for the purpose of funding the administrative costs of the program and providing matching funds for deposit in family development accounts.

K. "Financial Institution" means a credit union or financial institution authorized to do business in the State of Maine under Title 9-B and that meets standards established by the Authority.

L. "Members" means the members of the Board of Directors of the Finance Authority of Maine.

M. "Program" means the Family Development Account Program as described in and governed by the Act and this rule.

N. "State" means the State of Maine.

2. Program Implementation

The administration of the program is delegated to the Chief Executive Officer.

3. Advisory Committee on Family Development Accounts

A. The committee shall meet at least two times annually.

B. The committee shall elect a chair and a vice chair from among its members. The chair shall be responsible for the conduct of each meeting. The vice chair shall be responsible for the conduct of a meeting in the absence of the chair.

C. A quorum of at least half of the incumbent committee members must be present to conduct the business of the committee.

D. The committee shall provide an evaluation of the use of and success of family development accounts and shall provide recommendations with respect to changes in law, rule or policy to enhance the ability of account holders to improve their economic security.

E. The committee will provide a report to the joint standing committee of the Legislature having jurisdiction over business and economic development matters by March 1st of each year, beginning in 1999.

4. Application Procedure and Content

A. Within two months of the adoption of this Rule, the Authority shall solicit applications from community development organizations seeking authorization to administer family development accounts. The Authority shall specify a time within which applicants seeking consideration must have submitted a complete application. The Authority shall solicit a second series of applications from community development organizations within six months after the completion of the initial solicitation. Thereafter, the Authority may accept applications without undertaking a solicitation.

B. Each applicant shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require consistent with the purposes of the program and this rule.

C. The Chief Executive Officer will review each application for completeness and eligibility. Applications which are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final.

D. The application shall contain the following:

(1) a description of the applicant, including its funding sources, the region and population it intends to serve and a summary of all of its programs benefiting individuals eligible to become account holders;

(2) an estimate of the costs projected for the administration of the program;

(3) methods by which the applicant will obtain funds from other sources for matching investments;

(4) a plan to provide cash management training, including debt management and budgeting to account holders;

(5) a plan to publicize the availability of family development accounts;

(6) a description of the applicant's staff by organizational chart and résumé of key staff administering the program;

(7) the applicant's organizational audits and program audits for the most recent fiscal year;

(8) a description of the ability of the applicant to provide auxiliary services such as counseling on the effect of being an account holder on the receipt of State and federal financial and medical benefits, including a description of the nature and scope of such services available to account holders;

(9) a plan to screen potential account holders for eligibility;

(10) a description of the specific populations the applicant plans to identify for participation in the program;

(11) a description of the process the applicant will use to include account holders in the investment of funds in the accounts;

(12) assurances satisfactory to the Authority that deposits into accounts will be accepted from account holders with or without matching contributions from community development organizations;

(13) if the applicant proposes to undertake any aspect of its proposal with the assistance of or in conjunction with a partner, the application must also include relevant information regarding any such partner;

(14) a description of the CDO's approach to allowing a withdrawal from an account, including a description of any

(a) counseling prior to withdrawal;

(b) policies and procedures they intend to implement with respect to withdrawals, including specific standards for principal residences purchased with funds withdrawn from an account; and

(c) standards for determining the eligibility of the withdrawal.

(15) the applicant's proposed policy for determining the distribution of matching funds, including when the amount of the match will be determined; how long or by what date funds must be in the account to be eligible for a matching contribution; if the applicant will accept matching contributions with restrictions attached;

(16) the CDO's proposed confidentiality policy; and

(17) such other information as the Authority may require.

5. Applicant Eligibility and Assessment

In order to approve an application, the Chief Executive Officer must determine that the applicant:

A. Is a community development organization.

B. Is able to administer a family development account program prudently and effectively.

C. Is able to coordinate with other employment training, educational and social assistance programs.

D. Has an effective marketing plan.

E. Has enough expert assistance available to it to provide financial management education to all account holders.

F. Has the capacity to provide or raise funds from other sources to provide matching funds.

G. Evidences the ability to provide adequate security, which may be in the form of a bond.

6. Participating Financial Institutions

A. The Authority will enter into contracts with each financial institution which agrees to:

(1) Maintain accounts for and in the name of the account holder(s) ;

(2) Permit deposits to be made into accounts by the community development organization on behalf of the account holder;

(3) Credit interest to the account at a rate equal to or higher than the rate applicable to comparable accounts within the financial institution;

(4) Permit the account holder to withdraw money from an account for an eligible purpose identified in section 9; and

(5) Require the account holder to allow the financial institution to provide all account information to the community development organization.

B. All financial institutions in the State are eligible to participate in the program.

C. The Authority may terminate the participation of any financial institution which does not comply with the contract.

7. Contracts; Fees and Expenses

The Authority will enter into a contract with each participating community development organization. The contract will provide:

A. Each participating community development organization will provide a report every six months identifying:

(1) The number of account holders it assists;

(2) The aggregate dollar amount in accounts supervised by the CDO, identifying amounts contributed by account holders and amounts contributed through matching funds;

(3) The sources of matching funds received and the amount received from each source. A source may choose to maintain anonymity.

(4) The amount of matching funds provided to account holders;

(5) The amount available in the CDO's family development account reserve fund;

(6) Amounts withdrawn from accounts and the use of the funds;

(7) Activities undertaken by the CDO to recruit account holders;

(8) Activities undertaken by the CDO to recruit matching funds;

(9) Services provided to account holders;

(10) A listing of each financial institution where family development accounts are deposited, including the number of accounts at each and the aggregate dollar amount at each; and

(11) Such other information as the Authority may require.

B. Each community development organization must agree to put measures in place to assure that the matching contributions do not exceed $2000 per year and to prevent the deposit of matching funds in any account with a balance exceeding $10,000. Matching funds may be provided up to an amount which will bring an account balance to $10,000. The deposit of matching contributions into an account must be approved in writing by the community development organization administering the account.

C. Each community development organization must agree to notify the financial institution holding the account of any changes in the status of the account, including the death of the account holder.

D. Each participating community development organization must agree that it will spend no more than 15% of its family development account reserve fund(s) for administrative costs. The contract with the Authority may require that the participating community development organization pay an annual fee of up to 5% of the community development organization's family development account reserve fund(s) for the Authority's costs of administering the program. The amount paid to the Authority will be a portion of the 15% of the family development account reserve fund(s) which may be allocated for administrative costs of the community development organization.

E. If the Authority determines that an applicant has failed to comply fully with the requirements of the statute and this rule and its contract with the Authority, the Authority may take such action as it deems appropriate, including: establishing a deadline for complete compliance, temporary termination from participation in the program, permanent termination of the applicant's participation in the program.

F. Such other terms and conditions as the Authority deems appropriate.

8. Continuing Account Holder Eligibility

A. An individual remains an eligible account holder as long as they meet the criteria established in Section 1.A.

B. The eligibility of each account holder will be evaluated no less than annually.

9. Eligible Uses of Family Development Accounts

A. The account holder must obtain approval of the community development organization administering the account for each withdrawal.

B. Account holders may make withdrawals from accounts without penalty for each of the following:

(1) Expenses for education or job training or to attend an accredited or approved postsecondary education or training institution;

(2) The purchase of a home which is or will be used as the account holder's principal residence and which home is in compliance with standards set by the CDO approving the withdrawal;

(3) The repair of the account holder's principal residence;

(4) The purchase or repair of a vehicle used for transportation to work or to attend an education or training program;

(5) Expenses for an emergency that may cause the loss of shelter, employment or other basic necessities;

(6) Capital to start a small business for any family member who is 18 years of age or older; or

(7) Health care costs exceeding $500 not covered by public or private insurance.

C. Money withdrawn from any account by an account holder without obtaining the cosignature of the administrator of the community development organization or money withdrawn for an ineligible purpose, is subject to a penalty of 15%. When a penalty is assessed the account holder must be paid the funds that the account holder deposited less the penalty, plus interest on that amount. All matching contribution deposits and the interest on them are forfeited. All penalties and forfeited funds must be paid into the family development account reserve fund of the community development organization.

10. Termination of Accounts

A. Upon the death of an account holder the account must be transferred to the ownership of the designated beneficiary, if any. If there is no designated beneficiary, the account must be transferred to the estate of the deceased. No matching funds or interest earned on matching funds will be transferred to the beneficiary or the estate.

B. If an individual becomes ineligible to be an account holder, the individual is no longer eligible to make contributions to the family development account or to receive matching funds. The individual may retain the account and make withdrawals for eligible purposes with the certification of the community development organization administering the account.

11. Tax Consequences

Account balances and withdrawals are exempt from taxation pursuant to 36 M.R.S.A. §803.

12. Tax Credit Certificates

A. To obtain a tax credit for a contribution to a Family Development Account Reserve Fund a taxpayer must submit to the Authority:

(1) A fully completed application.

(2) A certification from a CDO which has entered into a contract with the Authority, including:

(a) the date the CDO received the contribution;

(b) the amount of the contribution; and

(c) the name of the contributor.

(3) A certification from the contributor that the contributor will not claim an itemized charitable deduction for the amount of the contribution that qualified for the credit.

B. The Chief Executive Officer shall issue tax credit certificates to eligible tax payers in an amount equal to the lower of:

(1) Twenty-five thousand dollars ($25,000); or

(2) Fifty percent (50%) of the amount contributed by the taxpayer;

C. Applications will be processed in the order the completed application is received until such time as certificates are issued aggregating the maximum amount authorized by applicable law.

D. The Authority may not issue certificates in excess of $200,000 in each state fiscal year.

13. Appeal

A. In the event that a community development organization's application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer, in writing within 20 days after the date the Chief Executive Officer mails the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application.

B. In the event that there is a dispute between an account holder and the community development organization, it may be appealed to the Chief Executive Officer of the Authority. The Chief Executive Officer's determination shall be final. Notice of the appeal, together with a statement of the reasons why the decision should be reversed or modified, shall be given to the Chief Executive Officer, in writing within 30 days after the date of the decision. The adversary shall have 30 days to respond. The Chief Executive Officer may make a decision based on the materials presented or may set a hearing time and date. If the Chief Executive Officer determines to hold a hearing the appellant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer. The decision of the Chief Executive Officer shall be final agency action appealable to the Superior Court.

14. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

15. Conflict of Interest

No member of the Committee may vote on any matter in which the member or any organization the member works for has a conflict of interest or which may be perceived as a conflict of interest.

History

• STATUTORY AUTHORITY: 10 M.R.S.A., §961 et seq., and particularly 10 M.R.S.A. §1075, et seq., and P.L. 1997, Ch. 518 ("An Act to Establish Family Development Accounts")
• EFFECTIVE DATE: July 6, 1998
• AMENDED: February 2, 2000 - modifying sections 6.A(1) and 6.A(4), adding a new section 12 and renumbering sections 12 and 13 as 13 and 14.
• AMENDED: January 19, 2002 - modifying sections 6.A(4), 6.A(5), and 7.B.
• NON-SUBSTANTIVE CORRECTIONS: March 18, 2004 - eliminated a space before a comma on page 4
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 316 Clean Fuel Vehicle Program

Code Me. R. 94-457 Ch. 316 Clean Fuel Vehicle Program {#sec-94-457-ch.-316 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 316}

Summary: This rule establishes the procedures and standards applicable to borrowers participating in the Authority's statewide program for making loans to finance the acquisition or lease of clean fuel vehicles or related components or facilities.

1. Definitions.

A. Reference to Act Definitions. Certain terms used in this rule which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the “Act”), shall have the meaning set forth in the Act unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. “Borrower” means a person or entity that meets the eligibility requirements set forth in Section 3 of this rule, and includes a prospective borrower where the context requires. If the borrower is a holding company or is a subsidiary or affiliate of or is related to an entity with 50% or more common ownership, “borrower” shall include the parent, affiliated or related entity when determining eligibility, including the net worth and debt service coverage of the borrower.

2. “Chief Executive Officer” means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

3. “Clean fuel” means all products or energy sources used to propel motor vehicles, as defined in Title 29-A, Section 101, other than conventional gasoline, diesel or reformulated gasoline, that, when compared to conventional gasoline, diesel or reformulated gasoline, results in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide or particulates or any combination of these. “Clean fuel” includes, but is not limited to, compressed natural gas; liquefied natural gas; liquefied petroleum gas; hydrogen; hythane, which is a combination of compressed natural gas and hydrogen; dynamic flywheels; solar energy; alcohol fuels containing not less than 85% alcohol by volume; and electricity.

4. “Clean fuel vehicle” means a vehicle that may be propelled by a clean fuel or a fuel-cell electric vehicle that uses any fuel.

5. “Clean fuel vehicle project” or “Project” means the acquisition or lease of clean fuel vehicles, the acquisition of clean fuel vehicle delivery systems and other clean fuel vehicle components, the conversion of vehicle fuel systems to the sue of clean fuels and the acquisition of capital equipment necessary to establish clean fuel vehicle support and maintenance facilities.

6. “Members” means the members of the Finance Authority of Maine.

7. “Principals” means one or more natural persons who own or control 20% or more of the borrower.

8. “Program” means the Clean Fuel Vehicle Program governed by the Act and this rule.

9. “State” means the State of Maine.

10. Program Implementation and Assistance Provided.

The program shall be administered by and is delegated to the Chief Executive Officer. The Authority may provide financial assistance in the form of a direct loan in the amount actually necessary to complete the project up to $50,000 to an eligible borrower. Assistance under this program may be combined, to the extent possible, with assistance under other Authority programs.

3. Eligibility.

A. To be eligible for financial assistance under the program a borrower must demonstrate each of the following:

1. The project is technologically feasible.

2. The project will contribute to a reduction of or more efficient use of fossil fuels.

3. A reasonable likelihood that the borrower will be able to repay the loan.

4. A reasonable likelihood that the borrower will not be able to obtain the funds necessary to undertake all or any part of the project from any other source, including an insured loan pursuant to 10 MRSA §1026-A.

B. The interest rate on each loan shall be determined based on the amount of the total Project financing contributed (other than working capital financing or financing collateralized by accounts receivable, inventory or good will) to the Project from sources other than the Clean Vehicle Fuel Program. Such source of funds must be confirmed to the satisfaction of the Chief Executive Officer. The loan interest rate shall be determined as follows:

Rate Financing Contributed From Other Sources

4% 50% or more

8% Less than 50%

In the event of default, the Authority may assess interest at the prime rate plus 2% from the date of any such default.

C. Additional requirements and covenants of each loan may be established, provided that each borrower shall at minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the Chief Executive Officer.

D. A borrower may obtain a direct loan for a project that has already been completed if the borrower provides satisfactory evidence of compliance with each of the following criteria.

1. The project was completed no later than nine months previous to the date the complete application is received by the Authority.

2. The loan is made to the same individual or entity, who operated the project at the time the project was undertaken.

3. Application Procedure and Content.

Each borrower shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require consistent with the purposes of the program and this rule. The Chief Executive Officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final. An application shall contain, at a minimum, such general information identifying and describing the borrower, the proposed project, and the proposed financing of the project as specified in the application form and as otherwise requested by the Chief Executive Officer.

5. Criteria and Considerations.

A. [Repealed]

B. No application will be approved unless the Chief Executive Officer determines that the borrower is eligible and that the loan proceeds will be used for a project.

C. No application will be approved unless the Chief Executive Officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

D. The Authority may rely upon information provided to it by the Department of Environmental Protection regarding whether a project is eligible.

6. Terms and Conditions; Premiums, Fees and Other Charges.

A. Periodic payments of principal and interest shall be established in accordance with a borrower's individual needs.

B. The loan amount shall not exceed $50,000.

C. Direct loans shall not exceed terms of seven (7) years.

D. Additional requirements and covenants of each loan may be established, provided that each borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the Chief Executive Officer.

E. The borrower in the case of a direct loan shall pay a loan origination fee equal to 2% of the loan amount at closing and shall be responsible for the Authority's out of pocket costs and expenses of closing, administering and collecting the loan or grant. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the borrower shall pay to the Authority an annual loan administration fee in an amount equal to 1% of the outstanding principal balance of the loan remaining due on each such anniversary date.

F. [Repealed]

G. The Authority, in the sole discretion of the Chief Executive Officer, may reduce the rate of interest or increase the term of any loan including loans with original terms of seven (7) years in the event a borrower can show adverse circumstances resulting in financial hardship.

7. Collateral.

A. Repayment of any loan pursuant to the program shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless compelling reasons are presented justifying not requiring a guarantee.

B. Loans may, at the discretion of the Chief Executive Officer, be secured by collateral valued for collateral purposes at less than the amount of the loan, when necessary to ensure that a project which meets the public purposes of this program will be completed.

C. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use.

8. Commitment

A. Upon approval of a direct loan application by the Chief Executive Officer, a commitment will be issued setting forth the terms and conditions upon which the loan will be extended.

B. [Repealed]

C. [Repealed]

D. In the event the Chief Executive Officer rejects any application, the Chief Executive Officer will promptly send the applicant notice containing reasons for the rejection. The notice shall include a statement of the applicant's right to appeal the Chief Executive Officer's decision to the members.

9. Appeal to the Members.

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mailed the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

10. Waiver of Rule.

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §§ 969-A(14), 1023-K and 1026-P(3)
• EFFECTIVE DATE: November 2, 1998 (original rule) - filing 98-462
• EFFECTIVE DATE: August 27, 2005 - Amendment 1, filing 2005-243: repealed sections 5(A), 5(F), 7(B), 7(C) and amended sections: 2, 3(A)(4), and 4
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 317 Nutrient Management Loan Program

Code Me. R. 94-457 Ch. 317 Nutrient Management Loan Program {#sec-94-457-ch.-317 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 317}

Summary: This rule establishes the procedures, standards and fees applicable to Borrowers applying for loans from the Authority's Program of direct loans for the finance of the purchase of equipment and construction of facilities that will help reduce non-point source pollution from farm and agricultural operations in accordance with Chapter 565 of the Rules of the Department of Agriculture, Food and Rural Resources, from a portion of the Clean Water State Revolving Fund, administered by the Maine Municipal Bond Bank and the Maine Department of Environmental Protection.

SECTION 1. DEFINITIONS

A. Reference to terms defined elsewhere. Terms used in this rule which are not defined herein shall have the meaning ascribed to them in Chapter 565 of the Rules of the Department of Agriculture, Food and Rural Resources, or if not there defined, in Title VII of the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq ., and finally, if not there defined, in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 et seq ., unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. "Borrower" means a person or entity that meets the eligibility requirements set forth in Section 3 of this rule, and includes a prospective Borrower where the context requires. If the Borrower is a real estate holding company or is a subsidiary or affiliate of or is related to an entity with 50% or more common ownership, "Borrower" shall include the parent, affiliated or related entity when determining eligibility.

2. “Chief Executive Officer” means the Chief Executive Officer of the Authority or someone acting under the supervisory control of the Chief Executive Officer.

3. "Commissioner" means the Commissioner of the Department, or a person acting under the supervisory control of the Commissioner of the Department.

4. “Department” shall mean the State of Maine Department of Agriculture, Food and Rural Resources.

5. "Program" means the Nutrient Management Loan Program.

6. "Project" means the purchase of equipment and/or construction of facilities in connection with the following agricultural non-point source abatement projects undertaken in the State:

a) Heavy Use Area Protection – Natural Resources Conservation Service (NRCS) Code 561

b) Roof Runoff Structure – NRCS Code 558

c) Filter Strip - NRCS Code 393

d) Vegetated Treatment Area – NRCS Code 635

e) Diversion – NRCS Code 362

f) Grassed Waterway – NRCS Code 412

g) Water and Sediment Control Basin – NRCS Code 638

h) Critical Area Planting – NRCS Code 342

i) Composting Facility – NRCS Code 317

j) Irrigation Reservoir – NRCS Code 436 – only if improving or maintaining water quality

k) Irrigation System, Micro Irrigation – NRCS Code 441

l) Irrigation System, Sprinkler – NRCS Code 442- only if moving to a more efficient irrigation system

m) Pumping Plant – NRCS Code 533 – only if used to supply livestock fenced from stream and riparian buffer or for low volume irrigation

n) Irrigation Pipeline – NRCS Code 430 – only if improving or maintaining water quality

o) Structure for Water Control – NRCS Code 587

p) Anaerobic Digester, Controlled Temperature – NRCS Code 366

q) Waste Storage Facility – NRCS Code 313

r) Waste Transfer – NRCS Code 634

s) Waste Treatment – NRCS Code 629

t) Other water quality projects similar in nature or purpose to those listed above, provided prior approval is obtained from the MEDEP

7. "State" means the State of Maine.

SECTION 2. PROGRAM IMPLEMENTATION AND ASSISTANCE PROVIDED

The Program shall be administered by and is delegated to the Chief Executive Officer. The Program may provide financial assistance in the form of a direct loan in the amount actually necessary to complete a Project, up to a maximum of $450,000, to an eligible Borrower on such terms and conditions as the Authority may require or approve. Assistance under this Program may be combined, to the extent possible, with assistance under other Department or Authority programs, provided however, that funds from the Clean Water State Revolving Fund may not be commingled with other funds.

SECTION 3. ELIGIBILITY

A. To be eligible for financial assistance under the Program, a Borrower must demonstrate to the Department, and the Department must certify to the Authority, that:

1. the Project is eligible;

2. the Borrower is not a Concentrated Animal Feeding Operation (CAFO) under EPA regulations;

3. the Project has been designed or approved by a licensed engineer or qualified member of the Natural Resources Conservation Service (NRCS), if it relates to manure or milk house waste containment facilities, or by a qualified member of the NRCS, personnel of the Department or other qualified professional, as to other projects, and in all cases meets NRCS technical specifications;

4. the design, location and installation of all facilities to be financed is compliant with applicable State and local codes and regulations, and if a point source solution is a necessary part of the Project, the State Environmental Review Process;

5. any equipment purchased pursuant to the Program is proposed to be located and used only in the State and any facilities constructed with Program funds are for agricultural Borrowers whose primary place of business is within the State.

6. the Project has been completed in accordance with approved design and specifications.

B. To be eligible for financial assistance under the Program a Borrower must also demonstrate to the Authority each of the following:

1. A reasonable likelihood that the Borrower will be able to repay the loan.

2. Any financial assistance will be used only for an eligible Project.

C. In accordance with Section 4, below, a Borrower shall submit an application prior to commencement of the Project. A Borrower may obtain a direct loan for a project, which has already been completed only if the Borrower provides satisfactory evidence of compliance with each of the following criteria:

1. The Project was completed no more than twelve months previous to the date the complete application is received by the Authority.

2. The loan is made to the same individual or entity, who operated the Project at the time the Project was undertaken.

3. The loan will assist in maintaining a viable business.

D. The terms of a loan made under this section shall be set in accordance with Section 6 hereof.

SECTION 4. APPLICATION PROCEDURE AND CONTENT

Each Borrower shall submit a Program application, and evidence that a copy has been delivered to the Commissioner, on such forms and with such attachments as the Authority may require consistent with the purposes of the Program and this Rule. The Authority will review each application for completeness and eligibility. Applications which are not substantially complete may be deemed not received until completed. The Authority shall determine when an application is received, which determination shall be final. An application shall contain, at a minimum, such general information identifying and describing the Borrower, the proposed Project, and the proposed financing of the Project as specified in the application form and as otherwise requested by the Authority.

SECTION 5. CRITERIA AND CONSIDERATIONS

A. No application will be approved unless the Commissioner has certified to the Authority that Project for which the loan is sought is an eligible Project.

B. No application will be approved unless the Authority determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

C. No application will be approved unless the applicant demonstrates to the Authority the existence of a viable source of repayment for the loan, including, without limitation, the ability to repay the loan from cash flow from operations, liquidation of collateral, or other sources.

D. The Authority shall rely upon information provided to it by the Department regarding whether a Project is eligible.

SECTION 6. TERMS AND CONDITIONS; PREMIUMS, FEES AND OTHER CHARGES

A. Periodic payments of principal, together with interest at the annual rate of 2%, shall be established in accordance with a Borrower's individual needs. In all cases the first principal payment shall be required to be made within one year of Project completion, except loans under §3(C), in which case the first principal payment shall be required to be made within 1 (one) year of loan closing.

B. Direct loans shall not exceed terms of 20 (twenty) years or the useful life of the assets financed, whichever is less.

C. Additional requirements and covenants of each loan may be established by the Authority, provided that each Borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if Borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders.

D. The Borrower shall pay a loan origination fee to the Authority equal to 2% of the loan amount at closing and shall be responsible for the Authority's out of pocket costs and expenses of closing, administering and collecting the loan. CLOSING COSTS, BUT NOT LOAN ORIGINATION OR LOAN ADMINSTRATION FEES, MAY BE FINANCED. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the Borrower shall pay to the Authority an annual loan administration fee in an amount equal to 1% of the outstanding principal balance of the loan remaining due on each such anniversary date.

E. Any loan made pursuant to this Program may be assumed by a purchaser of the premises on which the Project is located, provided that the loan may only be assumed by a for-profit entity, which would be eligible for a loan on the same terms and conditions as the original Borrower. The eligibility of any such assuming entity shall be determined in the discretion of the Authority.

F. All Project work must be completed by or under the direction of a person approved by the Department (and, if required, licensed under applicable law), provided however that the Department, the Authority and each of their agents and employees shall have no liability, and do not and shall not make any representations or warranties (express or implied), with respect to any Project, including without limitation, liability for defective design, defective construction, inadequate financing to complete the Project or the Project’s fitness for any purpose. The Department shall require evidence and certification from the Borrower of compliance with these conditions, and provide the same to the Authority.

SECTION 7. COLLATERAL

A. Repayment of any loan pursuant to the Program shall be secured by such collateral as the Authority may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Authority may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless compelling reasons are presented justifying not requiring a guarantee.

B. Loans may, at the discretion of the Authority, be secured by collateral valued for collateral purposes at less than the amount of the loan, provided that other viable sources of repayment exist.

C. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use. The Borrower must covenant to locate and use the equipment purchased with loan proceeds only in the State for the life of the loan.

SECTION 8. COMMITMENT; REJECTION

A. Upon approval of a direct loan, a commitment will be issued by the Authority setting forth the terms and conditions upon which the loan will be extended.

B. In the event the Authority rejects any application, the Authority will promptly send the applicant notice containing reasons for the rejection.

SECTION 9. APPEAL TO THE MEMBERS

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mails the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

SECTION 10. WAIVER OF RULE

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, other applicable law or by the terms imposed on the Clean Water State Revolving Fund by the Maine Municipal Bond Bank or Maine Department of Environmental Protection, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the Program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969-A(14)
• EFFECTIVE DATE: June 21, 1999 (EMERGENCY - expires September 18, 1999)
• EFFECTIVE DATE: October 23, 1999
• AMENDED: November 14, 2012 – filing 2012-327, Amendment 1
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 318 Wells and Plymouth Waste Oil Clean-up Program

Code Me. R. 94-457 Ch. 318 Wells and Plymouth Waste Oil Clean-Up Program {#sec-94-457-ch.-318 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 318}

Summary: This rule establishes the procedures and standards applicable to grant recipients, loan recipients and financial institutions participating in the Authority's statewide program for awarding grants and for making loans to finance the response costs incurred by responsible parties for the investigation, removal and remediation of waste-oil contamination at the Portland-Bangor Waste Oil Services Sites in Wells and Plymouth.

1. Definitions

A. Reference to Act definitions. Certain terms used in this rule which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the "Act"), shall have the meaning set forth in the Act unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

(1) "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

(2) "Current Obligation(s)" means the portion of all outstanding debts including principal and interest owed by the recipient due within one year of the date of application, including payments on leases of real and personal property.

(3) "Debt Service Coverage" means an amount equal to the quotient of a fraction, the numerator of which is the sum of the recipient's net income plus depreciation plus interest and the denominator of which is the sum of the recipient's current obligations, plus proposed payments of principal and interest.

(e.g. Debt Service Coverage =

Net Income + Depreciation + Interest

Current Obligations + Proposed Loan Obligations)

(3-A-1) “De Minimis Settlement” means a final settlement, including cash payments and premiums, pursuant to Section 122(g)(1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. Section 9622(g)(1).

(3-A-2) “Institutional Controls” means implementation of those controls selected by the United States Environmental Protection Agency to prevent use of contaminated groundwater by residents near the Plymouth Waste Oil Disposal Site.

(4) "Members" means the members of the Finance Authority of Maine.

(5) "Net Income" means net income as determined by generally accepted accounting principles, as applied by the Authority. The determination of the recipient's net income shall be based on the financial statements and/or tax return for the recipient's most recent fiscal year and interim financial statements as the Authority may require. The Authority may request financial statements and tax returns from previous fiscal years if, in the discretion of the Authority, they are necessary to make a determination of net income.

(6) "Net Worth" means, in the case of an individual or sole proprietorship, the total value of the equity of the recipient, the recipient's spouse, and dependents in all real and personal property, excluding the recipient's principal residence. In the case of a corporation, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each stockholder owning 20% or more of the outstanding and issued stock of the corporation. In the case of a partnership, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each general partner. In the case of a trust, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each beneficiary of 20% or more of the proceeds of the trust. In the case of a co-op, net worth shall be defined in accordance with generally accepted accounting principles and may include the individual net worth of major owners in the discretion of the Authority.

(7) “Orphan Share” means the percentage of the total response costs at the Wells Waste Oil Disposal Site attributable to parties who are deemed bankrupt, dissolved, insolvent, or no longer in business or whose current identity or location can not be determined, as determined and certified by a person assuming liability for total response costs, for the purposes of determining the price at which it is willing to settle with those Responsible Parties who desire to settle and sign a consent decree relating to payment of the Responsible Parties’ share of the total response costs at the Wells Waste Oil Disposal Site.

(7-A) “Oversight costs” means all costs incurred or to be incurred by the United States Environmental Protection Agency or the Maine Department of Environmental Protection in monitoring, supervising and overseeing work performed by Responsible Parties at the Plymouth Waste Oil Disposal Site, including costs of reviewing plans, reports and other documents submitted by Responsible Parties pursuant to applicable administrative orders or consent decrees.

(8) “Past cost settlement” means the settlement between the potentially responsible parties, the United States and the State, embodied in the consent decree filed with the United States District Court for the District of Maine, Civil Docket Number 00-249-B

(9) “Plymouth Applicant” means an applicant for participation in the Program based on potential liability for Response Costs at the Plymouth Waste Oil Disposal Site.

(10) “Plymouth Waste Oil Disposal Site” means the Portland-Bangor Waste Oil Services site in Plymouth, Maine.

(11) "Program" means the Wells and Plymouth Waste Oil Clean-up Program governed by the Act and this rule.

(12) "Project" means, with respect to Wells Applicants under Section 3, the direct payment to a service provider, or reimbursement to a recipient of Response Costs incurred and/or paid by a recipient as a result of said recipient being a Responsible Party in relation to the Wells Waste Oil Disposal Site, and with respect to Plymouth Applicants under Section 4, the payment of or reimbursement for a portion of the costs of institutional controls, a Remedial Study, Time Critical Removal Action, remedial action, oversight costs, de minimis settlement, or a past cost settlement incurred and/or paid by a recipient as a result of said recipient being a Responsible Party in relation to the Plymouth Waste Oil Disposal Site.

(13) "Recipient" means a person or entity that meets the eligibility requirements set forth in Section 3 or Section 4 of this rule, and includes a prospective recipient where the context requires. If the recipient is a real estate holding company or is a subsidiary or affiliate of or is related to an entity with 50% or more common ownership "recipient" shall include the parent, affiliated or related entity when determining eligibility, including the net worth and debt service coverage of the recipient.

(13-A) “Remedial action” means those activities undertaken by Responsible Parties at the Plymouth Waste Oil Disposal Site to satisfy one or more parts of the final remedy for the Site in accordance with applicable administrative orders or consent decrees.

(14) “Remedial Study” means a remedial investigation and feasibility study undertaken in connection with 40 CFR §300.430 with respect to the Plymouth Waste Oil Disposal Site.

(15) “Response Costs” means some portion less than 100% of Total Response Costs, as defined in the Act.

(16) “Responsible Party” means a responsible party as defined in the Act, as well as any party listed on the Portland-Bangor Waste Oil Transactional Database for a Waste Oil Disposal Site prepared by the Maine Department of Environmental Protection and/or its agents (as it may be amended from time to time) and, with respect only to Wells Applicants, who has signed a consent decree with the Maine Department of Environmental Protection providing for remediation of the Wells Waste Oil Disposal Site.

(17) “Time-critical removal action” means the removal activities undertaken pursuant to the Administrative Order by Consent for Time-Critical Removal Action, United States Environmental Protection Agency Docket Number CERCLA 1-97-1080.

(18) "State" means the State of Maine.

(19) “Waste Oil Disposal Site” means either the Wells Waste Oil Disposal Site, or the Plymouth Waste Oil Disposal Site.

(20) “Wells Applicant” means an applicant for participation in the Program based on potential liability for Response Costs at the Wells Waste Oil Disposal Site.

(21) “Wells Waste Oil Disposal Site” means the Portland-Bangor Waste Oil Services site in Wells, Maine.

2. Program Implementation and Assistance Provided

The program shall be administered by and is delegated to, the Chief Executive Officer. The Authority may provide financial assistance in the form of a direct loan or (with respect only to eligible Wells Applicants) a grant. Assistance under this program may be combined, to the extent possible, with assistance under other Authority programs.

3. Eligibility (Wells Applicants)

A. General eligibility

To be eligible for financial assistance under the program, a recipient must demonstrate each of the following:

(1) The recipient, or a person or entity for which the recipient has agreed to assume liability for Response Costs (for reasons other than solely participation in the Program), has been determined by the Maine Department of Environmental Protection (MDEP) to be a Responsible Party with respect to the Wells Waste Oil Disposal Site;

(2) If the recipient is not a municipality, and has applied for a loan, it has demonstrated financial need for assistance as determined by the Authority under section 3(C);

(3) If the recipient has applied for a loan, it has demonstrated a reasonable likelihood that it will be able to repay the loan;

(4) The recipient has reached an agreement with an entity that has assumed liability for Total Response Costs at the Wells Waste Oil Disposal Site fixing the total liability of the recipient for Response Costs, and the recipient has incurred liability for or has paid Response Costs to that entity in connection with the Wells Waste Oil Disposal Site;

(5) Any financial assistance will be used only for a Project; and

(6) For loan applicants, the recipient is domiciled or has a place of business in the State or has agreed to assume liability for Response Costs (for reasons other than solely participation in the Program) of a person or entity which is domiciled or has a place of business in the State; for grant applicants, the recipient, or a person or entity for which the recipient has agreed to assume liability for Response Costs (for reasons other than solely participation in the Program) is: (a) a natural person domiciled in the State, (b) a corporation or partnership with a place of business in the State, (c) the State, any agency, authority, department, commission, municipality, quasi-municipality, special purpose district or other instrumentality of the State, a political subdivision of the State (including without limitation those defined in 14 MRSA c. 741 and 30-A MRSA c. 225), or (d) any other entity identified as a Responsible Party at the Wells Waste Oil Disposal Site whose waste oil is identified as delivered to the Wells Waste Oil Disposal Site and picked up from an address or location within the State in the records compiled by the Maine Department of Environmental Protection or the United States Environmental Protection Agency or their agents.

Anything in this subsection 3(A) to the contrary notwithstanding, neither (i) the Federal Government (including all of its agencies, authorities, departments, boards, commissions and instrumentalities), nor (ii) an entity assuming liability for Total Response Costs, shall be eligible for participation in the Program, and the participation of any other entity whose eligibility is based on the assumption of Response Costs of another person or entity is limited to the Response Costs of the party or parties whose liability is so assumed.

B. Grants

(1) A recipient shall be eligible for a grant equal to the lesser of (i) $2,000.00, or (ii) the actual amount of Response Costs paid or incurred by the recipient, provided a completed application, together with a copy of an invoice or cancelled check (or other evidence of the recipient’s liability for or payment of Response costs acceptable to the Authority) is submitted by the recipient on or before May 15, 2000. Grants will be disbursed directly to the recipient where the recipient has submitted evidence of its prior payment of Response Costs, and will be made in the form of joint checks payable to both the recipient and the service provider where the recipient has provided evidence of the incurrence but not payment of the Response costs.

(2) A recipient shall be eligible for an additional grant equal to its pro rata share of the difference between $3,100,000.00 and the total sum of all grants awarded under section 3(B)(1) (with its pro rata share defined for the purposes of this paragraph as a fraction of such difference, the numerator of which fraction is the amount required to be paid by the recipient to settle its liability for response costs, reduced by the grant received by such recipient under section 3(B)(1), and the denominator of which is the total response costs attributable to persons who, after application, are determined to be eligible for a grant under section 3(B)(1)), provided however that the additional grant (when added to any grant received by the recipient under section 3(B)(1)) may not exceed the amount required to be paid by the recipient to settle its liability for response costs, multiplied by the Orphan Share. In order to receive an additional grant under this paragraph, the recipient must make a written election to receive the additional grant in lieu of receiving a deferred loan pursuant to section 3(C), and provide proof of payment of its share of total response costs, no later than June 15, 2000. No recipient may receive an additional grant under this paragraph and a deferred loan under section 3(C). The additional grants awarded under this paragraph will be disbursed in the same manner as those under section 3(B)(1), except that grants under this section 3(B)(2) to recipients who have received a loan under section 3(C) shall be retained by the Authority and applied to the recipient’s loan balance, with any excess amount, if any, over the amount necessary to pay the loan in full, being paid to the recipient. Grants under this section 3(B)(2) will be completed on or before June 30, 2000.

C. Direct Loans

Recipients may be eligible for direct loans of up to an aggregate of $50,000.00 per recipient, in accordance with the following criteria:

(1) A recipient shall be eligible for a deferment of interest accrual and loan payments for a period of three years if: a) the recipient's debt service coverage is less than 1.0; b) the recipient has no other readily available source of funds to undertake the project, and c) the recipient has not received a grant under section 3(B)(2). The terms and conditions of such deferred loan shall include the terms set forth in subsection 3(C)(8) hereof.

(2) A recipient shall be eligible for a direct loan with interest at the rate of 0% if the recipient's debt service coverage is 1.0 or greater, but less than 1.2;

(3) Subject to the limitations of subsection 3(C)(6) a recipient shall be eligible for a direct loan with interest at the rate of 6% below the prime rate as published by the Wall Street Journal on the date of the commitment letter if the recipient's debt service coverage is 1.2 or greater, but less than 1.5. In no event shall a loan to any recipient made under this subsection be at a rate less than 3%.

(4) Subject to the limitations of subsection 3(C)(6), a recipient shall be eligible for a direct loan with interest at the rate of 2% below the prime rate as published by the Wall Street Journal on the date of the commitment letter if the recipient's debt service coverage is 1.5 or greater, but less than 2.5.

(5) Subject to the limitations of subsection 3(C)(6), a recipient shall be eligible for a direct loan with interest at the prime rate as published by the Wall Street Journal on the date of the commitment letter, if the recipient's debt service coverage is 2.5 or greater, but less than 3.0.

(6) A recipient with debt service coverage of 3.0 or greater or net worth of $750,000 or greater shall not be eligible for assistance under the program, unless the recipient can demonstrate financial need to the satisfaction of the Authority.

(7) Notwithstanding any provision of this Section 3, a recipient that is a unit of a local government shall only be eligible for a direct loan with interest at the rate of 2% below the prime rate as published by the Wall Street Journal on the date of the commitment letter.

(8) All deferred loans made pursuant to subsection 3(C)(1) of this Rule shall be evidenced by a commercial note which shall bear interest at the rate of 2% below the prime rate as published by the Wall Street Journal commencing on the date of the third anniversary of the Note, provided however, if the recipient provides updated, current financial statements satisfactory to the Authority prior to the third anniversary of the Note, the Authority may revise the commercial note in accordance with the repayment terms set forth in Section 3(C)(2)-(5).

4. Eligibility (Plymouth Applicants)

A. General eligibility

To be eligible for financial assistance under the program, a recipient must demonstrate each of the following:

(1) The recipient has been identified by the United States Environmental Protection Agency (“EPA”) as a potentially responsible party with respect to the Plymouth Waste Oil Disposal Site and has been alleged by the EPA to have generated waste oil from an address or location within the State;

(2) The recipient has signed the Administrative Order by Consent pursuant to EPA Docket Number CERCLA 1-2000-0004;

(3) The recipient has signed the West Site/Hows Corner RI/FS Group Agreement;

(4) The recipient is not a federal or state agency;

(5) The recipient has demonstrated a reasonable likelihood that it will be able to repay the loan;

(6) The recipient has been determined by the EPA to have an ability to pay; and

(7) To the extent that money in the fund will be used for all or part of the costs of the remedial design, the recipient has signed the Administrative Order by Consent for remedial design in the matter of the Plymouth Waste Oil Disposal Site (West Site/Hows Corner).

(8) To the extent that money in the fund will be used for all or part of the remedial action costs, the recipient has signed the Remedial Action Consent Decree for the Plymouth Waste Oil Disposal Site (West Site/Hows Corner).

(9) To the extent that money in the fund will be used for all or part of a de minimis settlement, the recipient has signed all settlement documents required by the EPA or the Maine Department of Environmental Protection.

B. Direct Loans

Recipients may be eligible for direct loans of not more than the recipient establishes it has paid or agreed to pay for the institutional controls, Remedial Study, past cost settlement, remedial design, technical impracticability study, oversight costs, remedial action costs, de minimis settlement, and time-critical removal action costs, but not including any attorneys’ fees related thereto, except attorneys’ fees incurred for the preparation of restrictive covenants, including deed and title research, for the properties within the area identified by the United States Environmental Protection Agency as the institutional control zone in order to implement institutional controls, in accordance with the following criteria:

(1) Repayment on all loans shall be deferred until the United States Environmental Protection Agency determines that construction of a final remedy is complete with respect to the Plymouth Waste Oil Disposal Site, after which the loan must be repaid over a period not exceeding the ensuing 10 years.

(2) All loans shall bear interest at the rate of 0%.

In the event the aggregate amount of direct loans sought by eligible recipients exceeds the amount of funds available for such loans, the amount of a recipient’s direct loan shall be limited to its pro-rata share of available funds, based upon the percentage that said recipient’s liability for the remedial design, technical impracticability study, institutional controls, remedial study, past cost settlement, oversight costs, remedial action costs, de minimis settlement, and time-critical removal action costs represents of the total of all recipients’ liability for the remedial design, technical impracticability study, institutional controls, remedial study, past cost settlement, oversight costs, remedial action costs, de minimis settlement, and time-critical removal action costs, as determined by the Chief Executive Officer.

5. Application Procedure and Content

Each recipient shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require consistent with the purposes of the program and this rule. The Chief Executive Officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final. An application shall contain, at a minimum, such general information identifying and describing the recipient, the proposed project, and the proposed financing of the project as specified in the application form and as otherwise requested by the Chief Executive Officer. ALL APPLICATIONS FOR LOANS UNDER SECTION 4 MUST BE COMPLETE AND SUBMITTED SO AS TO BE RECEIVED BY THE AUTHORITY ON OR PRIOR TO the deadline set forth in 10 M.R.S.A. §1023-M, as it may be amended. To the extent the Authority is authorized to extend the deadline for good cause shown, good cause shall be as determined by the Authority in its discretion. Applications received after such date will be considered only if funds remain available after all applications received by the deadline are fully funded.

6. Criteria and Considerations

A. [Repealed]

B. No application will be approved unless the Chief Executive Officer determines that the recipient is eligible and that the loan proceeds will be used for a project.

C. No application will be approved unless the Chief Executive Officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

D. The Authority may rely upon information provided to it by the Department of Environmental Protection and/or the United States Environmental Protection Agency regarding whether a project is eligible.

7. Loan Terms and Conditions; Premiums, Fees and Other Charges

A. Periodic payments of principal and interest on direct loans shall be established in accordance with section 3(C) or 4(B) and a recipient's individual needs.

B. Direct loans shall not have repayment periods that exceed ten (10) years.

C. Additional requirements and covenants of each direct loan may be established, provided that each recipient shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if recipient is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders.

D. In the case of a grant, the Authority shall be entitled to charge the interest earnings on the Waste Oil Clean-up Fund an origination and processing fee equal to $200.00. In the case of a direct loan, the Authority shall be entitled to charge the interest earnings on the Waste Oil Clean-up Fund an origination and processing fee equal to 2% of the loan amount at closing, and the recipient shall be responsible for the Authority's out of pocket costs and expenses of closing, administering and collecting the loan. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the Authority shall be entitled to charge the interest earnings on the Waste Oil Clean-up Fund an annual loan administration fee in an amount equal to 1% of the outstanding principal balance of the loan remaining due on each such anniversary date.

E. [Repealed]

F. The Authority, in the sole discretion of the Chief Executive Officer, may reduce the rate of interest, increase the term of any loan including loans with original terms of ten (10) years, or otherwise change the terms of loans in the event a recipient can show adverse circumstances resulting in financial hardship.

8. Collateral

A. Repayment of any loan pursuant to the program shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the recipient, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless compelling reasons are presented justifying not requiring a guarantee.

B. Loans may, at the discretion of the Chief Executive Officer, be secured by collateral valued for collateral purposes at less than the amount of the loan, when necessary to ensure the payment of Response Costs.

C. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use.

9. Commitment

A. Upon approval of a direct loan or grant application by the Chief Executive Officer, a commitment will be issued setting forth the terms and conditions upon which the loan or grant will be extended.

B. [Repealed]

C. [Repealed]

D. In the event the Chief Executive Officer rejects any application, the Chief Executive Officer will promptly send the applicant notice containing reasons for the rejection. The notice shall include a statement of the applicant's right to appeal the Chief Executive Officer's decision to the members.

10. Appeal to the Members

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mailed the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

11. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §§ 969-A(14), 1023-L(3-A), 1026-R(3) as reallocated from 1026-Q(3)), 1023-M(3) and 1026-S.
• EFFECTIVE DATE: January 17, 2000
• AMENDED: June 12, 2000 (EMERGENCY - expires September 19, 2000)
• AMENDED: August 21, 2000
• NON-SUBSTANTIVE CORRECTIONS: November 26, 2000 - removed typo (stray character) on page 8
• AMENDED: July 3, 2001 (EMERGENCY- expires October 1, 2001)
• AMENDED: September 3, 2001
• AMENDED: June 15, 2003 (EMERGENCY - expires September 13, 2003) - filing 2003-189
• AMENDED: August 3, 2003 - filing 2003-257
• AMENDED: April 28, 2004 - filing 2004-127 (EMERGENCY)
• AMENDED: July 13, 2004 - filing 2004-261
• NON-SUBSTANTIVE CORRECTION: October 13, 2004 - removed "Emergency" and "Amendment 4" from chapter's title
• AMENDED: July 24, 2007 – filing 2007-299 (EMERGENCY)
• AMENDED: November 26, 2007 – filing 2007-499, Amendment 5
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 319 Maine Economic Development Venture Capital Revolving Investment Program

Code Me. R. 94-457 Ch. 319 Maine Economic Development Venture Capital Revolving Investment Program {#sec-94-457-ch.-319 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 319}

94-457 FINANCE AUTHORITY OF MAINE

Chapter319: MAINE ECONOMIC DEVELOPMENT VENTURE CAPITAL REVOLVING INVESTMENT PROGRAM

Summary: This rule establishes the procedures and standards applicable to the Maine Venture Capital Revolving Investment Program, pursuant to which the authority may make investments in eligible private venture capital funds.

1. Definitions.

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 MRSA Section 961 and following (the Act), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms.

1. "Authority" means the Finance Authority of Maine.

2. "Chief Executive Officer" means the chief executive officer of the Finance Authority of Maine, or a person acting under the supervisory control of the chief executive officer.

3. "Investment" means a transaction in which an eligible fund receives cash from the authority, subject to the provisions of the program.

4. "Members" means the members of the Finance Authority of Maine.

5. "Program" means the Maine Economic Development Venture Capital Revolving Investment Program governed by this rule.

6. “Program fund” means the Maine Economic Development Venture Capital Revolving Investment Program Fund established by 10 MRSA § 1026-N.

7. "Qualifying investment fund” means a private venture capital fund or other investment fund that meets the applicable eligibility criteria of Section 4.

8. Program Implementation.

The authority shall solicit applications at such times as the authority determines that there is a sufficient amount available in the program fund to make investments in qualifying investment funds. The authority shall publicize the availability of the funds and the application process and shall provide an application to any qualifying investment fund that has requested notification of the availability of funds for investment at any time during the 18 months preceding the solicitation of applications. At the time of publication of the solicitation of applications, the authority shall state the amount of funds available for investment and set a deadline for the submission of applications.

3. Application Procedures.

A. A qualifying investment fund seeking an investment shall submit an application which complies with the requirements of this rule on such forms as may be required by the chief executive officer.

B. The chief executive officer shall be responsible for making application forms available.

C. No application will be considered complete unless substantially all questions are answered and all supporting information is provided.

D. The application shall include general information identifying and describing the qualifying investment fund, including:

1. Its sources of funds;

2. The region it serves;

3. Its methods and criteria for qualifying investments, including targeted investing and economic development strategy;

4. Its expertise in investing in small and emerging businesses;

5. How it will leverage funds from sources other than the authority’s investment.

6. Evidence of compliance with each of the eligibility criteria set forth in section 4.

E. The qualifying investment fund must include a copy of its most recent offering statement and standard subscription agreement with its application.

F. The qualifying investment fund must certify that it is in compliance with all federal and State laws, including securities laws and regulations.

G. The principals of the qualifying investment fund may be required to make a presentation to the members of the authority on any aspect of their application and such other matters as the authority may request.

H. The application shall also include such additional information and documentation as the chief executive officer may require.

4. Eligibility Criteria

A. The fund must submit a complete application.

B. The fund must have a strategy for the creation and retention of jobs.

C. The fund must have a marketing and technical assistance plan.

D. The fund must have available appropriate technical assistance to analyze, document and monitor its investments.

E. The fund must have available appropriate technical assistance to assist the businesses in which it invests.

F. The fund must propose standards and goals and a process for monitoring compliance with proposed measurement and goals.

5. Investments

A. An investment in any qualifying investment fund ordinarily will not exceed $1,000,000. Provided however, the members may, by a vote of two-thirds of all members in attendance, but not less than seven (7) affirmative votes, authorize the investment of more than $1,000,000 in a qualifying investment fund.

B. In determining the amount of investment to make in a qualifying investment fund, the authority shall consider:

1. The size of the region served by the qualifying investment fund and the expected demand for venture capital investments in that region;

2. The demand for venture capital investments from other eligible qualifying investment funds in relation to the total amount available in the program fund and whether a qualifying investment fund will serve a geographic area or segment of potential businesses not served by other applicants; and

3. Whether the qualifying investment fund will be able to prudently and effectively administer venture capital investments.

C. In no event shall an investment in a fund be deemed to be an endorsement of the business or fund receiving the investment or the prudence of the investment, nor shall the authority be responsible to investors for any losses on such investments.

6. Investment Contract

The authority will enter into a contract with each qualifying investment fund that has been approved for participation in the program. The contract must provide that a qualifying investment fund shall, at a minimum, conform to the following terms and conditions:

A. The qualifying investment fund shall certify that it will use funds only for eligible purposes and that it will make best efforts to invest an amount equal to the authority’s investment in the fund in for-profit enterprises located within the State of Maine, which:

1. Are manufacturers;

2. Are sellers of goods or providers of services, 60% or more of the customers of which are located or are from out of the State and the employment functions are carried out predominantly within the State, as determined by the chief executive officer;

3. Are engaged in the development or application of advanced technologies; or

4. Bring capital into the State on a permanent basis in the ordinary course of business, as determined by the chief executive officer.

B. The authority’s rights are equal to those of all other investors investing in the same class as the Authority in the qualifying investment fund.

C. If the qualifying investment fund breaches its contract with the authority or ceases to operate an investment program in substantial conformance with its application to the authority, the authority may require immediate repayment to the authority of any investment made from the program fund.

D. A qualifying investment fund may not use more than 4% annually of the aggregate amount invested in the fund by the authority and other investors for administrative expenses or load charges. The authority shall review and approve a qualifying investment fund's administrative expenses annually.

E. A qualifying investment fund shall report at least semiannually to the authority on the businesses in which the qualifying investment fund invests and the administration of the program. The report must include a description of each business, the amount, type and terms of assistance the business received, the amount of funds invested in businesses that meet the criteria of section 6A, the number of jobs that were created or retained and other information the authority requires. The report must contain an accounting of the investment portfolio and any investments that are in default, as well as an accounting of the qualifying investment fund's administrative and technical assistance expenses incurred and charged.

F. The Agreement shall contain such provisions as the chief executive officer may require releasing the authority from any suits or claims arising out of the investment.

G. The authority shall review annually each qualifying investment fund's participation in the program and, in its discretion, may require an independent audit at the expense of the qualifying investment fund. If the authority determines that a qualifying investment fund has used funds for ineligible purposes, the qualifying investment fund shall repay those funds to the authority for deposit into the fund.

H. Other terms and conditions that the authority determines appropriate.

7. Pubic Information.

The names of qualifying investment funds receiving funds, the amount invested in a fund, the names of businesses benefiting from investments, the nature of the business and the intended use of proceeds shall be public information.

8. Waiver of Rule.

The chief executive officer may waive any requirements of this rule, except to the extent that the requirement is mandated by statute, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. § 1026-N
• EFFECTIVE DATE: August 30, 2000
• EFFECTIVE DATE: 94-457 Chapter 319 page 6

Chapter 320 BETR Reimbursement Loan Program

Code Me. R. 94-457 Ch. 320 Betr Reimbursement Loan Program {#sec-94-457-ch.-320 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 320}

Summary: This rule establishes the procedures, standards and fees applicable to borrowers applying for loans from the Authority's program of direct loans for businesses facing a substantial hardship from delay in the payment of the BETR Reimbursement.

1. Definitions:

A. "Authority" means the Finance Authority of Maine.

B. “BETR” means the business equipment tax reimbursement program established under the Maine Revised Statutes, Title 36, chapter 915.

C. “Bureau” means the Department of Administrative and Financial Services, Bureau of Revenue Services.

D. "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the direction of the Chief Executive Officer.

E. “Fund” means the BETR Reimbursement Loan Fund established by PL 2001, ch. 714, Section QQ-1.

F. "Eligible borrower" means a Maine business that meets the criteria specified in Section 3 of this Rule and includes a prospective borrower where the context requires.

G. "Loan" means any payment disbursed from the BETR Reimbursement Loan Fund.

H. "Loan Commitment" means a letter from the Chief Executive Officer or designee to an applicant agreeing to make a loan subject to terms, conditions and requirements stated therein.

I. "Members" means the members of the Finance Authority of Maine.

J. “Predetermined to be eligible” means that the business had filed a complete application for reimbursement with the bureau under BETR, and the bureau has determined that the business meets the criteria for eligibility and the amount of the reimbursement to which the business is entitled.

K. "Program" means BETR Reimbursement Loan Program.

L. “Substantial hardship” means a materially negative impact on their business operations.

M. "Wall street prime" means the highest rate of interest as published in the Wall Street Journal.

2. Program Implementation

The program shall be administered by, and is delegated to, the Chief Executive Officer. The Authority may provide financial assistance to eligible borrowers in the form of direct loans to eligible borrowers on such terms and conditions as the Chief Executive Officer may require or approve.

3. Eligibility

To be eligible for financial assistance under the program, a borrower must demonstrate each of the following:

A. It has been certified by the bureau as predetermined to be eligible for BETR reimbursement in 2003;

B. It will suffer a substantial hardship, as determined by the Authority, as a direct result of the change in timing of the application for and receipt of reimbursement under BETR as enacted by PL 2001, ch. 714;

C. The business is creditworthy and reasonably likely to repay its obligations, including the proposed loan; and

D. The Authority will be able to obtain a first priority lien on the BETR reimbursement.

4. Application Procedure and Content

A. The Authority shall solicit applications for disbursements from the fund. All applicants seeking consideration must have submitted a complete application on or before April 1, 2003.

B. Each applicant shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require. The application must include:

1. A completed Bureau Form 801 (Assessor’s Notification) for 2001 and 2002, including:

i. A copy of the tax bill received for 2001 and 2002; and

ii. Proof of payment of the taxes claimed.

2. Complete financial statements of the applicant, including:

i. A monthly statement of cash flows for the period January 1 through September 30, 2003.

ii. A balance sheet through the end of the most recent quarter for the current year and for each of the two most recent year ends of the applicant;

iii. An income statement for the end of the most recent quarter for the current year and for each of the two most recent year ends of the applicant;

iv. Federal income tax returns of the applicant for the three most recent tax years;

v. Personal financial statements and personal tax returns for the two most recent years of all general partners, shareholders, members or other principals of the applicant with 20% or more ownership interest;

vi. All general information requested on the Authority’s application form; and

vii. Such other information as the Authority may request to assess an individual applicant’s situation.

3. Evidence that the Authority will be able to obtain a first priority lien on the BETR reimbursement; and

4. The borrower’s consent to making the BETR reimbursement check co-payable to the Authority.

C. The Chief Executive Officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final.

D. The Authority will approve or deny applications from eligible borrowers based on the following:

1. The relative financial hardship of the borrower to the financial hardship of the other eligible borrowers.

2. The adequacy of security offered as collateral.

3. A borrower's ability to repay the loan based on financial status and collateral offered, as determined by the Authority.

4. The availability of funds.

E. The Authority will issue a commitment for financing to all approved applicants for which there are sufficient funds to complete the loan.

5. Terms and Conditions; Premiums, Fees and Other Charges

A. The maximum loan amount for any borrower is 90% of the amount of the BETR reimbursement for which the borrower is predetermined to be eligible.

B. The Authority may provide loans for less than 90% of the amount of BETR reimbursement for which the borrower has been predetermined to be eligible, if the Authority determines:

1. The total amount of requests received and the amount of hardship the business is facing as a result of the delay in payment of the BETR reimbursement requires such a reduction in the maximum loan amount to allow loan funds to be provided to the maximum number of eligible applicants; or

2. That such lesser amount is sufficient to overcome the substantial hardship created by the delay in the receipt of the BETR reimbursement

C. All loans shall accrue interest at Wall Street prime plus 2% fixed on the date of the Loan Commitment.

D. Periodic payments of principal and interest shall be established in accordance with a borrower's needs. The Authority may defer principal and interest payments as necessary.

E. The borrower will be required to execute the Bureau’s Form 800, as completed by the Bureau based on the borrower’s application, at closing.

F. All BETR reimbursement payments will be made co-payable to the Authority and the borrower. BETR reimbursement checks will be sent directly to the Authority. The loan agreement will include a limited power of attorney authorizing the Authority to endorse the BETR reimbursement check on behalf of the borrower. The Authority will send the borrower a check for the difference between the BETR reimbursement check received and all amounts owed to the Authority, including without limitation, principal, interest, fees and costs, within 10 business days of receipt of the BETR reimbursement check from the Bureau. The borrower will be required to execute a pledge agreement providing the Authority a first lien on the BETR reimbursement and such other commercial loan documents containing such terms and conditions as the Authority customarily includes in its loan documents.

G. Additional requirements and covenants of each loan may be established, provided that each borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if the borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders.

H. The borrower shall pay a loan origination fee equal to 1% of the loan amount at closing and shall be responsible for the Authority’s attorneys fees (whether of the Authority’s legal division or outside Counsel) and all out of pocket costs and expenses of underwriting, closing, administering and collecting the loan. The Authority shall also be entitled to collect from the fund a loan underwriting fee of 1% of the requested loan amount for every loan application received whether or not the loan is approved or made, plus any reasonable underwriting expenses not paid by the borrower. If any loan is not repaid in a timely manner for any reason the Authority shall also be entitled to collect from the fund (if the balance of the fund has been transferred to the Economic Recovery Program Fund, then from the Economic Recovery Program Fund) an annual loan administration fee in an amount equal to 2% of the outstanding principal balance of the loan remaining due on each anniversary date of each loan. At the Authority’s election, the loan administration fee may be calculated and collected on a monthly or quarterly basis.

6. Collateral:

All loans shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a first priority lien on the BETR reimbursement, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless a compelling reason justifies the waiver of this requirement.

7. Loan Commitment:

A. Upon approval of a loan application by the Chief Executive Officer, a Loan Commitment will be issued setting forth the terms and conditions upon which the loan will be extended.

B. In the event the Chief Executive Officer denies any application, the Chief Executive Officer will promptly send the applicant notice containing reasons for the rejection. The notice shall include a statement that the Chief Executive Officer's decision is final agency action appealable to the Superior Court and the Authority is not obligated to retain funds for any successful appeal.

8. Loan Documentation:

The borrower will be required to provide and execute such documentation as the Chief Executive Officer deems necessary to ensure that the borrower and any guarantors have binding, enforceable obligations to repay the loan and that the Authority has such valid and enforceable mortgages, security interests and assignments as necessary to protect the interests of the Authority. The Authority may require the borrower to have independent counsel for the execution of the documents.

9. Waiver of Rule:

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the enabling legislation, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: PL 2001, ch. 714, Sections QQ-1 and QQ-2.
• EFFECTIVE DATE: March 2, 2003 - filing 2003-54
• EFFECTIVE DATE: 94-457 Chapter 320 page 6
• EFFECTIVE DATE: Proofed
• EFFECTIVE DATE: 3/6/03

Chapter 321 Waste Motor Oil Disposal Site Remediation Program

Code Me. R. 94-457 Ch. 321 Waste Motor Oil Disposal Site Remediation Program {#sec-94-457-ch.-321 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 321}

Summary: This rule establishes certain procedures and standards applicable to payment of response costs incurred by eligible responsible parties at waste motor oil disposal sites in Plymouth, Casco, Ellsworth, and Presque Isle, Maine with proceeds of revenue obligation securities to be issued by the Finance Authority of Maine (the “Authority”).

1. Definitions

A. Reference to Act Definitions. Certain terms used in this rule which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. Section 961 and following (the "Act"), shall have the meaning set forth in the Act unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

2. “Program” means the Waste Motor Oil Disposal Site Remediation Program, pursuant to which the Authority, as authorized by the Act, may from time to time issue revenue obligation securities, a portion of the proceeds of which are used to pay the response costs of eligible persons with respect to waste motor oil disposal sites.

3. “DEP” means the Maine Department of Environmental Protection.

4. “EPA” means the United States Environmental Protection Agency.

5. “PRP” means potentially responsible party.

6. "State" means the State of Maine.

2. Program Implementation

The program shall be administered by and is delegated to, the Chief Executive Officer. All determinations to be made by the Chief Executive Officer hereunder may be made on the basis of such consultation with such advisors and taking into account such other factors as the Chief Executive Officer deems appropriate, in his or her sole discretion.

3. Waste Motor Oil Revenue Fund

The Waste Motor Oil Revenue Fund, as established in 10 M.R.S.A. Section 1020(2), shall be deposited with and administered by the Authority. Any reasonable costs of administering the fund incurred by the Authority, including but not limited to costs of public notices required by the Program, costs of preparing for the issuance of, issuing and administering revenue obligation securities issued for Program purposes, amounts necessary to fund a capital reserve fund or other reserve funds determined by the Chief Executive Officer to be necessary or desirable to secure payment of debt service on the revenue obligation securities and fees required to be paid to the Authority pursuant to Chapter 202 of the Rules of the Authority (Revenue Obligation Securities Program), may be taken by the Authority from monies in the fund or from sale proceeds of such revenue obligation securities or investment earnings upon such sale proceeds, in the Chief Executive Officer’s sole discretion.

4. Eligibility

A. To be eligible for financial assistance under the Program, recipients must be persons that contributed waste motor oil to a waste motor oil disposal site and have been designated by the DEP or the EPA as responsible parties with respect to the waste motor oil disposal site and be one of the following:

1. Responsible parties that the DEP or EPA determines are insolvent, unlocated or defunct;

2. Responsible parties that the DEP or EPA determines have a limited ability to pay;

3. Responsible parties that the DEP or EPA determines are responsible for 110 gallons or less of waste motor oil at a waste motor oil disposal site;

4. The State and any agencies, authorities, departments, boards, commissions or instrumentalities of the State or political subdivisions of the State;

5. All franchised new car and truck dealers licensed pursuant to 29-A M.R.S.A., chapter 9, subchapter 3 or the successors in interest of any such franchised new car or truck dealers. The Secretary of State shall certify to the Authority those responsible parties that were licensed pursuant to 29-A M.R.S.A., chapter 9, subchapter 3;

6. All used car and truck dealers licensed in accordance with 29-A M.R.S.A., chapter 9, subchapter 3 or the successors in interest of any such used car and truck dealers. The Secretary of State shall certify to the Authority those responsible parties that were licensed pursuant to 29-A M.R.S.A., chapter 9, subchapter 3;

7. A person or its successor in interest that performed repairs at repair facilities located in the State on motor vehicles that are owned by third parties; is identified by the PRP group at the waste oil disposal site as qualified under this subsection; and certifies to the Authority under oath and subject to the provisions of 17-A M.R.S.A. Section 451 that it is qualified under this subsection;

8. Any person or its successor in interest that performed repairs on its own fleet of motor vehicles is identified by the PRP group at the waste motor oil disposal site as qualified under this subsection and certifies to the Authority under oath and subject to the provision of 17-A M.R.S.A. Section 451 that it is qualified under this subsection. The motor vehicles at all pertinent times must have been registered, garaged and serviced in the State; or

9. Any person or its successor in interest that performed repairs, at repair facilities located in the State, on special equipment or special mobile equipment, as defined in 29-A M.R.S.A. Section 101, subsections 69 and 70, is identified by the PRP group at the waste motor oil disposal site as qualified under this subsection and certifies to the Authority under oath and subject to the provision of 17-A M.R.S.A. Section 451 that it is qualified under this subsection.

B. The United States of America and its agencies, authorities, departments, boards, commission and instrumentalities are not eligible to have any share of any of their obligation for response costs covered by revenue obligation securities pursuant to the Program.

5. Certificate of Determination

A. The DEP, the EPA or the PRP group, as applicable, shall inform the Chief Executive Officer of the final remedy selection and response costs for each waste motor oil site. The Chief Executive Officer shall be advised in writing of the issuance of the final remedy selection and that the remedy will be implemented pursuant to a consent decree or other final settlement order or agreement determining substantially final response costs for a waste motor oil disposal site.

B. After receipt of written notice of the issuance of the final remedy selection and that the remedy will be implemented pursuant to a consent decree or other final settlement order or agreement determining substantially final response costs for a site, the Chief Executive Officer shall determine the costs that represent the collective share of eligible persons at the site.

1. In determining the amount of response costs incurred by an eligible person prior to the effective date of a consent decree or other final settlement order or agreement, the Chief Executive Officer shall rely on a written certificate of costs from the PRP group, if any, at the site, supported by such evidence of payment as the Chief Executive Officer may require.

2. In determining the amount of response costs incurred by an eligible person prior to the effective date of a consent decree or other final settlement order or agreement if no PRP group exists at the site, the Chief Executive Officer shall rely on a written certificate of costs from each eligible person, supported by copies of invoices, receipts or other evidence of payment as the Chief Executive Officer may require.

3. Any written certificate of costs must be made under oath and subject to the provisions of 17-A M.R.S.A. Section 451. Each such certificate of costs and any evidence of payment supporting such certificate must be in form and substance acceptable to the Chief Executive Officer.

4. In determining the amount of response costs to be incurred by an eligible person after the effective date of a consent decree or other final settlement order or agreement, the Chief Executive Officer shall rely on the final allocation of response costs as agreed on by the responsible parties and as reflected in the consent decree or other final settlement order or agreement in the form that such responsible parties have agreed to and, if applicable, committed to submit to a court having jurisdiction of the matter for approval, as evidenced in a manner acceptable to the Chief Executive Officer.

C. The Authority shall issue a certificate of determination setting forth, in each case as determined by the Chief Executive Officer: (i) the amount of response costs paid or to be paid by responsible parties with respect to the site; (ii) the maximum amount of eligible response costs with respect to the site to be paid from the proceeds of revenue obligation securities, which shall not exceed the collective response costs of eligible persons at the site; and (iii) the maximum amount of proceeds of revenue obligation securities to be paid to or on behalf of each of the responsible parties;

D. The Authority may not issue more than two certificates of determination for a given site. After an original certificate of determination, the Authority may issue up to one supplemental certificate of determination with respect to a site, which may provide for payment from the proceeds of additional revenue obligation securities of an amount equal to no more than 10% of the amount of response costs initially certified for the site in Section 5(C)(ii) hereof.

6. Revenue Obligation Securities

A. Upon compliance with the requirements of the Program and this Rule, the Authority shall issue revenue obligation securities pursuant to the Revenue Obligation Securities Program, 10 M.R.S.A. chapter 110, subchapter 3 and Chapter 202 of the Rules of the Authority, except as otherwise noted herein. Such revenue obligation securities may be issued on a taxable or tax-exempt basis as determined by the Chief Executive Officer.

B. The requirement of Chapter 202(2) of the Rules of the Authority pertaining to an application shall not be applicable to issuances of revenue obligation securities pursuant to this Program, except as described in Section 6(C) hereof. Either a PRP group or, if there is no PRP group, any eligible person acceptable to the Chief Executive Officer may be the applicant for purposes of 10 M.R.S.A. Section 1043 with respect to revenue obligation securities to which that section applies.

C. The Authority may collect the fees otherwise required by Chapter 202 of the Rules of the Authority as described in Section 3 hereof.

D. The Authority may not issue revenue obligation securities for Program purposes in a principal amount that is expected to require payment of debt service (along with such amounts described in Section 3 hereof or necessary in the Authority’s sole discretion to initially fund any capital reserve fund established pursuant to 10 M.R.S.A. Section 1053, or other reserve fund) in any year in an aggregate amount that exceeds the amount that the Chief Executive Officer determines, upon consultation with such advisors as he or she may deem appropriate, can be paid on a timely basis from the revenues reasonably expected to be received pursuant to 10 M.R.S.A. Section 1020(6-A) and to be available for such purpose without requiring a draw upon any capital reserve fund, without regard to whether the amount of the revenue obligation securities which the Authority determines to issue will be sufficient to pay the total amount described in Section 5(C)(ii) hereof.

E. If the amount of net proceeds of an issuance of revenue obligation securities pursuant to this Program, after payment of any other costs described in Section 6(D) hereof that the Chief Executive Officer determines are to be paid therefrom, will be insufficient, for whatever reason, to pay the total amount described in Section 5(C)(ii) hereof, the Authority shall first use such remaining net bond proceeds to pay the eligible costs, if any, to be incurred by responsible parties after the effective date of a consent decree or other final settlement agreement (and, within such class of eligible response costs, to pay such response costs on a pro-rata or on such other basis as the Chief Executive Officer may determine to be necessary to permit the issuance of such revenue obligation securities on a federally tax-exempt basis, if so determined pursuant to Section 6(A) hereof), and thereafter shall use any remaining bond proceeds to pay any remaining eligible response costs (and, within such class of eligible response costs, to pay such response costs on a pro-rata or on such other basis as the Chief Executive Officer may determine to be necessary to permit the issuance of such revenue obligation securities on a federally tax-exempt basis, if so determined pursuant to Section 6(A) hereof).

F. Notwithstanding the foregoing, however, to the extent that any responsible party is eligible to receive proceeds of revenue obligation securities as reimbursement for expenses that party has paid through the Authority’s Plymouth Waste Oil Loan Program set forth in 10 M.R.S.A. Section 1023-M, such obligations to the Authority shall be paid as a first application of net proceeds of any revenue securities obligations issued for such site, after payment of any other costs described in Section 6(D) hereof that the Chief Executive Officer determines are to be paid therefrom, with any remaining proceeds, and shall be paid in full to the extent possible and if not possible, then pro-rata or on such other basis as the Chief Executive Officer may determine to be necessary to permit the issuance of such revenue obligations securities on a federally tax-exempt basis, if so determined pursuant to Section 6(A) hereof, before any other eligible response costs are paid with remaining proceeds.

7. Registry

At such time prior to the issuance of revenue obligation securities as the Authority receives the information necessary to do so, the Authority shall establish and publish a registry of all responsible parties who qualify to have their share of response costs paid pursuant to this Program, in accordance with 10 M.R.S.A. Section 1020-A(7). Publication of the registry by the Authority does not guarantee a bond issuance or that proceeds of any bond issuance will be sufficient to pay the response costs of all or any eligible persons in full. The parties responsible for providing the Authority with the information necessary to establish the registry shall provide such information in sufficient time as to allow for preparation and publication of the registry and passage of the period of time to request reconsideration all prior to such time as the Authority deems in its sole discretion is necessary or desirable to proceed with issuance of revenue obligation securities.

8. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the Program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. Sections 969-A(14) and 10 M.R.S.A. Section 1020-A(8)
• EFFECTIVE DATE: June 30, 2009 – filing 2009-294 (EMERGENCY)
• EFFECTIVE DATE: September 6, 2009 – filing 2009-447
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 322 Maine Food Processing Grant Program

Code Me. R. 94-457 Ch. 322 Maine Food Processing Grant Program {#sec-94-457-ch.-322 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 322}

SUMMARY: This rule establishes the procedures and standards applicable to applicants and recipients participating in the Authority's statewide program awarding grants for food processing for fishing, agricultural, and dairy enterprises within Maine.

SECTION 1. DEFINITIONS

1. “Act” means the Finance Authority of Maine Act.

2. “Agricultural enterprise” means the growing or raising of plants or animals, harvesting plants or growing or obtaining plant or animal by-products, including aquaculture but excluding forestry, as well as the storing or packaging of such products.

3. “Applicant” means any for-profit or not-for-profit business that meets the eligibility requirements set forth in Section 3 and Section 4 of this Rule, and includes a prospective applicant where the context requires.

4. “Authority” means the Finance Authority of Maine.

5. “Chief Executive Officer” means the Authority's Chief Executive Officer or a person acting under the direction of the Chief Executive Officer.

6. “Dairy enterprise” means producing and treating milk and cream, and the manufacture of butter, cheese, and other products processed from milk.

7. “Fishing enterprise” means catching or growing fish, including shellfish, in fresh or salt water, including aquaculture.

8. “Food processor” means an enterprise engaged primarily in changing the form of or adding value to a food product, including packaging, derived from Maine’s fishing, agricultural, and dairy enterprises through the application of labor or materials or both.

9. “Grant” means money awarded by the Authority for the limited purposes and pursuant to the terms contained in this Rule.

10. “Grant Recipient” means an eligible enterprise that is awarded a grant.

11. “Members” means the members of the Finance Authority of Maine.

12. “Program” means the Maine Food Processing Grant Program.

13. “Project” means the use to which grant proceeds are to be put, as approved by the Chief Executive Officer, including the purchase, design, construction, expansion or improvement of processing and packaging facilities; and equipment located in Maine and used in connection with food processing. Grant proceeds may not be used for marketing, research and development, or working capital.

14. “State” means the state of Maine.

SECTION 2. PROGRAM IMPLEMENTATION

The Program shall be administered by and is delegated to the Chief Executive Officer. The Authority may provide financial assistance in the form of a grant to an eligible recipient on such terms and conditions as the Chief Executive Officer may require or approve.

SECTION 3. ELIGIBILITY

To be eligible for a grant under the Program, an applicant must demonstrate each of the following:

1. It is a food processor located in Maine.

2. It has submitted an acceptable business plan to the Authority demonstrating how the funds will be used to benefit the borrower, the food processing industry, and the community at large.

3. It has submitted all requested application materials by a date to be determined by the Authority.

SECTION 4. APPLICATION PROCEDURE

1. The grant applicant shall complete and return to the Authority by a date specified by the Authority a Food Processing Grant application, including supporting schedules. No application will be approved unless the Chief Executive Officer determines that the application is complete, and the borrower is eligible on the date due. The Authority may extend the date or reopen application submissions should extra funds remain.

2. The Authority will prioritize applications from eligible applicants based on the following:

A. The economic feasibility and viability of the project;

B. The likely benefit of the grant to the financial success of the business;

C. The likely benefit of the grant toward the goal of creating and/or retaining Maine jobs;

D. The likely benefit to areas of the state having high rates of unemployment;

E. Highest priority shall be given to projects that:

(1) seek to redevelop recently closed facilities and lead to the re-employment of workers recently laid off as a result of such closures;

(2) are likely to benefit more than one enterprise;

(3) are likely to have a positive regional impact;

(4) contribute additional resources to the project.

3. The Authority will issue a commitment for grants to all approved applicants for which there are sufficient funds. The Authority may award an applicant a grant amount less than the original amount requested.

SECTION 5. GRANT TERMS AND CONDITIONS

1. A recipient shall be eligible for a grant up to $300,000.00. Grants will be disbursed directly to the applicant.

2. Upon approval of an application by the Authority, the Authority shall notify the applicant of the amount of the grant in a grant award notification letter, which shall contain the general terms and conditions of the grant.

3. Prior to disbursement of any Maine Food Processing Grant, the applicant shall enter into a Grant Agreement with the Authority, specifying the amount of the grant, conditions precedent to disbursement, responsibilities of each party, and a schedule of disbursement by the Authority.

4. If a grant recipient fails to complete the project for which funds were provided within two years of receipt of the grant, fails to create or retain jobs, or ceases to do business in Maine, all monies awarded may, in the Authority’s discretion, be required to be repaid and returned to the Authority immediately.

5. In the event an application is not funded, the Authority shall notify the applicant in writing with a reason for the determination. The notice shall include a statement of the applicant's right to appeal the Chief Executive Officer's decision to the members.

6. The grant recipient will be required to provide and execute such documentation as the Chief Executive Officer deems necessary to ensure the grant is being put to good and appropriate use. Such reporting shall include a report to be filed March 1, 2012 and again March 1, 2013 detailing the uses and benefits of the monies received. A recipient also shall provide such other reports and information as may from time to time be required by the Authority in order to review the application, monitor disbursement of a grant, and evaluate the success of the Program.

SECTION 6. WAIVER OF RULE

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the Program.

SECTION 7. APPEAL TO THE MEMBERS:

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications. Notice of the appeal, together with a statement of the reasons the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mailed the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members. The applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the denial. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

History

• STATUTORY AUTHORITY: P.L. 2009, ch. 645; 5 M.R.S.A. §8052; 10 M.R.S.A. §969-A(14).
• EFFECTIVE DATE: November 7, 2010 – filing 2010-547
• EFFECTIVE DATE: 94-457 Chapter 322 page 4

Chapter 325 Maine New Markets Capital Investment Program

Code Me. R. 94-457 Ch. 325 Maine New Markets Capital Investment Program {#sec-94-457-ch.-325 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 325}

Summary: This rule establishes the procedures, standards and fees applicable to applicants under the Authority’s Maine New Markets Capital Investment Program (the “Program”). Under the Program, the Authority may allocate tax credit authority to a qualified community development entity, which allocation acts as a reservation of refundable tax credits that may subsequently be approved by the Authority if the qualified community development entity obtains qualified equity investments as certified by the Authority as provided by 10 M.R.S.A. §1100-Z.

SECTION 1. DEFINITIONS

1. "Allocation Application" means the Authority’s then current application for allocation of tax credit authority that is filed by a CDE with the Authority.

2. "Allocation Application fee" means a non-refundable fee of $1,000 that shall be included with the Allocation Application at the time of filing with the Authority.

3. “Annual Report fee” means a fee of $250 that shall be included with the annual report required of a CDE as set forth below in Section 6.

4. "Applicant" means a CDE that files an Allocation Application or Certification Application with the Authority as contemplated by 10 M.R.S.A. §1100-Z.

5. “CDE” means a Qualified Community Development Entity as defined by this Rule, or a subsidiary thereof that is also a Qualified Community Development Entity as defined by this Rule.

6. "CDFI Fund" means the U.S. Department of Treasury, Community Development Financial Institutions Fund.

7. “Certification Application” means the Authority’s current application for certification of a qualified equity investment in a CDE.

8. “Certification Application Fee” means a non-refundable fee of $2,500 that shall be included with a Certification Application at the time of filing with the Authority.

9. “Code” means the United States Internal Revenue Code of 1986 , as amended.

10. "Commissioner" means the Maine Commissioner of Administrative and Financial Services.

11. "Credit allowance date" means, with respect to any qualified equity investment, the date on which the investment is initially made in the CDE, and each of the successive six anniversary dates of that date thereafter, provided the investment is certified by the Authority as required by this Rule.

12. "Long-term debt security" means any debt instrument issued by a CDE, at par value or a premium, with an original maturity date of at least seven years from the date of its issuance, with no acceleration of repayment, amortization or prepayment features prior to its original maturity date. The CDE that issues the debt instrument may not make cash interest payments on the debt instrument during the period commencing with its issuance and ending on its final credit allowance date in excess of the cumulative operating income (as defined in the regulations adopted pursuant to the Code, Section 45D) of the CDE for the same period, prior to giving effect to interest expense on such debt instrument. This paragraph does not limit the holder's ability to accelerate payments on the debt instrument in situations when the CDE has defaulted on covenants designed to ensure compliance with 10 M.R.S.A. §1100-Z; 36 M.R.S.A. §191(2)(SS); 36 M.R.S.A. §2351; or the Code, Section 45D.

13. “Low-income community” has the same meaning as set forth in the Code, Section 45D.

13A. “Maine Fund” means a qualified community development entity as defined in the Code, Section 45D, that has maintained a principal place of business in the State for at least five (5) years on the date of an Allocation Application to the Authority.

14. “Non-metropolitan census tract” means a census tract located in a non-metropolitan county as defined by the CDFI Fund.

15. "Purchase price" means the amount of the investment in the CDE for the qualified equity investment.

16. "Qualified active low-income community business" or “QALICB” has the same meaning as set forth in the Code, Section 45D and regulations adopted thereunder, including 26 CFR Sec. 1.45D-1, but shall also include an entity which, for the most recent calendar year ending prior to the date of investment by the CDE, can demonstrate that 50% or more of its gross income was derived from business activities within, 50% or more of its tangible property was located within; or 50% or more of its services were performed within, a community in a municipality that according to statistics published by the Maine Department of Labor, experienced an unemployment rate greater than the state average, during such period. To the extent statistics are not reported for such municipality by the Maine Department of Labor, the rates of the Labor Market Area in which such municipality is located shall apply.

17. "Qualified community development entity" has the same meaning as set forth in the Code, Section 45D, except that the entity must either (a) qualify as a “Maine Fund” as defined herein, or (b) have entered into or be controlled by or under the common control of an entity that has entered into an allocation agreement with the CDFI Fund with respect to credits authorized by the Code, Section 45D, and must be authorized to operate in the State.

18. "Qualified equity investment" or “QEI” means any equity investment in, or long-term debt security issued by, a CDE that:

A. Has at least 85 percent of its cash purchase price used by the issuer to make qualified low-income community investments in qualified active low-income community businesses located in the State by the second anniversary of the initial credit allowance date;

B. Is acquired after December 31, 2011 at its original issuance solely in exchange for cash, if the CDE is filing a Certification Application on or prior to December 31, 2025, or is acquired after December 31, 2025 at its original issuance solely in exchange for cash, if the CDE is filing a Certification Application after December 31, 2025; and

C. Is designated by the issuer as a qualified equity investment and is certified by the Authority pursuant to 10 M.R.S.A. §1100‑Z(3)(G). "Qualified equity investment" includes any qualified equity investment that does not meet the provisions of 10 M.R.S.A. §1100‑Z(3)(G) if the investment was a qualified equity investment in the hands of a prior holder. The CDE shall keep sufficiently detailed books and records with respect to the investments made with the proceeds of the qualified equity investments to allow the direct tracing of the proceeds into qualified low-income community investments in qualified active low-income community businesses in the State.

19. “Qualified low-income community investment" or “QLICI” means any capital or equity investment in, or loan to, any qualified active low-income community business in the State, made after the effective date of this rule, but on or before the effective date of any certification of the Authority under Section 5 of this Rule, so long as no more than 5% of such investment is used to: (1) refinance costs, expenses or investments incurred or paid by the qualified active low-income community business or a related party, prior to the date of the qualified low-income community investment; (2) make equity distributions from the qualified active low-income community business to its owners; (3) acquire an existing Maine business or enterprise; or (4) pay transaction fees. The maximum amount of qualified low-income community investments that may be made in any one project constructed, maintained or operated by the business on a collective basis with all of its affiliates, with the proceeds of qualified equity investments that have been certified under 10 M.R.S.A. §1100-Z(3)(G), is $10,000,000, whether made by one or several CDE’s. Notwithstanding the foregoing, with respect to any one project constructed, maintained or operated by a business that is a manufacturing or value-added production enterprise that projects to create or retain in excess of 200 direct and indirect jobs as part of the project for which the investment is made, the maximum QLICI shall be $40,000,000. For the purposes of demonstrating the number of jobs the project will create or retain, the applicant may include direct operational employment of the QALICB, as well as the employment of businesses in the supply chain for such business, but shall not include any construction employment or induced employment caused by consumer spending by employees of the QALICB or its suppliers. The Application shall be accompanied by an IMPLAN study conducted by a qualified independent professional or other evidence in either case determined credible by the Authority. For the purposes of this section, the term “supply chain” means businesses that regularly provide goods or services, either directly, or indirectly through other entities, to the QALICB or to suppliers of the QALICB, for their business operations. For the purposes of this paragraph, with respect to projects to which the $10,000,000 limitation applies, the term “project” shall mean all land, buildings, structures, machinery and equipment located at the same location and constructed, maintained or operated by the qualified active low-income community business. For the purposes of this paragraph, with respect to projects to which the $40,000,000 limitation applies, the term “project” shall mean, and refer separately to, each manufacturing or value-added production facility which projects to create or retain more than 200 jobs, including the land, buildings, structures, machinery and equipment functionally related to, and integrated with, the manufacturing or production process conducted on the site of that facility. The term “project” shall not mean, and shall not refer separately to, the component pieces of an integrated manufacturing or production process conducted on the site of a particular facility.

SECTION 2. APPLICATION PROCESS FOR ALLOCATION OF TAX CREDIT AUTHORITY

A CDE that seeks to obtain an allocation of tax credit authority from the Authority pursuant to 10 M.R.S.A. §1100-Z shall file an Allocation Application with the Authority and simultaneously pay the Allocation Application fee.

Within thirty days of receipt of an Allocation Application for tax credit authority, the Authority shall either approve the Allocation Application and, as part of that approval, indicate the amount of tax credit authority issued to the CDE, or determine that the Authority intends to deny the Allocation Application. If the Authority intends to deny the Allocation Application, it shall inform the CDE by written notice of the grounds for the intended denial. Upon receipt of the notice of intended denial by the CDE:

A. If the CDE provides additional information required by the Authority or otherwise completes its Allocation Application within fifteen days, the Allocation Application must be considered complete as of the original date of submission and the Authority has an additional thirty days to either approve or deny the Allocation Application; or

If the CDE fails to provide the information or complete its Allocation Application within the fifteen-day period, the Allocation Application shall be deemed denied and may be resubmitted in full with a new submission date.

Allocation Applications seeking allocation of tax credit authority from the Authority for tax credits authorized by PL 2025 Ch. 497, may be submitted on or after January 1, 2026, via hand-delivery, mail, express mail, courier or electronic means, provided, however, that the Applicant is responsible for ensuring receipt of the Application by the Authority. Any Allocation Application received prior to January 2, 2026 shall be deemed received on January 2, 2026.

Completed Allocation Applications will be processed in the order received. Allocation Applications received on the same date shall be treated as received simultaneously, and, to the extent there are not sufficient credits available to fully allocate requested tax credit authority for approved Allocation Applications that were received on the same date, allocations of available tax credit authority shall be pro-rated among such Applicants based upon the amount of authority requested in each such Allocation Application as a percentage of the total authority requested by all such Allocation Applications.

SECTION 3. INFORMATION REQUIRED ON OR ATTACHED TO THE ALLOCATION APPLICATION

The following information shall be required on or attached to the Allocation Application:

1. The name, address and tax identification number of the CDE, and evidence of the certification of the entity as a qualified community development entity by the Secretary of the United States Treasury;

2. A description of the amount of tax credit authority requested and the proposed use of proceeds from any qualified equity investments received or long-term debt security issued by such CDE for which it intends to seek certification by the Authority under 10 M.R.S.A. §1100-Z; and

3. A description of the fees that the Applicant intends to charge for transactions for which allocation is sought; and

4. A. If seeking allocation as a Maine Fund, evidence of the operation of the CDE, with its principal office located within the State, for the preceding five (5) years; or

B. If seeking allocation as a CDE but not a Maine Fund:

i. A copy of an allocation agreement executed by the CDE, its controlling entity or other entity controlled by the same controlling entity, and the CDFI Fund, which includes the State in its service area;

ii. A certificate executed by an authorized executive officer of the CDE attesting that the allocation agreement remains in effect and has not been revoked or canceled by the CDFI Fund;

iii. Responses to the following five questions, which must be answered affirmatively or negatively without explanation or elaboration (simple yes or no answers), to determine qualification for participating in the program:

a. Whether the CDFI Fund has awarded multiple rounds of federal New Markets Tax Credit allocation to the CDE, its controlling entity or other entity controlled by the same controlling entity;

b. Whether the CDE, its controlling entity or other entity controlled by the same controlling entity, has participated as a qualified community development entity in a state New Markets Tax Credit program or has made an investment in this State that qualifies for federal New Markets Tax Credits;

c. Whether the CDE, its controlling entity or other entity controlled by the same controlling entity, has made an investment qualified for tax credits in a business located in a non-metropolitan census tract;

d. Whether the CDE, its controlling entity or other entity controlled by the same controlling entity, has made an investment qualified for tax credits in a state where it did not previously have substantial operations; and

e. Whether the CDE, its controlling entity or other entity controlled by the same controlling entity, has explored potential investment opportunities in this State that would qualify for credits under the Program.

SECTION 4. AWARD OF ALLOCATION OF TAX CREDIT AUTHORITY; TERM OF AWARD

A complete Allocation Application that qualifies as a Maine Fund, or that otherwise qualifies and affirmatively answers at least four of the questions described in Section 3, Subsection 4(B)(iii) of this Rule shall be approved by the Authority and awarded an allocation of tax credit authority pursuant to 10 M.R.S.A. §1100-Z in the amount sought in the Allocation Application, but in no event shall the aggregate allocation to any CDE and its affiliates exceed $62,500,000 of investments, and provided, further, that there remains sufficient allocation authority to fully award the amount sought (up to the per CDE and affiliates limit of $62,500,000 of investments) of each Allocation Application approved by the Authority and received on the same date. If there is not sufficient remaining allocation authority to fully award allocations to Applicants submitting approved Allocation Applications received on the same date, the awards among such Applicants shall be pro-rated as provided in Section 2, Subsection 4 of this Rule. The Authority shall provide written notification of an award of allocation authority to the Applicant. In no event shall the Authority authorize more than $250,000,000 in aggregate investments eligible for tax credit authority, or more aggregate tax credit authority than such amount that, if all allocated authority resulted in certified qualified equity investments eligible for program tax credits simultaneously, no more than $20,000,000 of credits could be taken or refunded in any one fiscal year.

An allocation of authority under this Section shall be valid for up to one (1) year. A CDE obtaining allocation may sub-allocate all or a portion of its allocation to one or more subsidiary CDE’s, provided the parent CDE files notice of such sub-allocation to the Authority, together with a certification that the subsidiary CDE is a subsidiary and meets all the requirements of a CDE under this Rule, and all of the information required by Section 3(1) of this Rule for such subsidiary. In the event that a CDE obtaining an allocation, or one or more of its subsidiary CDE’s to which it has sub-allocated, does not receive qualified equity investments equaling or exceeding the allocation amount within one (1) year of the date of the allocation, and provide proof of each of the same to the Authority within ten days of the investment, that portion of the allocation that exceeds the aggregate amount of qualified equity investments certified by the Authority for such CDE shall lapse and no longer be allocated or available to the CDE, and may be re-allocated by the Authority in accordance with 10 M.R.S.A. §1100-Z and this Rule.

SECTION 5. CERTIFICATION OF ELIGIBILITY FOR TAX CREDITS

To the extent a CDE obtains equity investments or issues long-term debt securities within one (1) year of the allocation of tax credit authority, the CDE may file a Certification Application seeking that the Authority certify such equity investments or issuance of long-term debt securities as qualified equity investments eligible for tax credits under 10 M.R.S.A. §1100-Z. The Certification Application must be filed within one (1) year of the equity investment and contain the following information:

• 1. Information regarding the proposed use of the proceeds from the equity investments or issuance of long-term debt securities, including: a description of the qualified active low-income community business in which the proceeds will be invested; the proposed use or uses of the proceeds by the qualified active low-income community business; and the low-income community or communities in which the proceeds will be expended; 2. The name and identification number of investor, type of investment (whether debt or equity), purchase price, and nature of consideration received and date of receipt, for each investment for each taxpayer making a equity investment or being issued a long-term debt security; 3. A signed certification indicating that the Certification Application has been executed by an executive officer of the CDE, declaring under the penalty of perjury:

That the Applicant continues to be a qualified community development entity under the Code, Section 45D, and,if applicable, the Applicant’s allocation agreement remains in effect and has not been revoked or canceled by the CDFI Fund; and

That the cash purchase price for the investment has been received; and

That the statements in the original Allocation Application, as well as in the Certification Application, including all accompanying documents and statements, are and remain true, correct and complete as of the date of the Certification Application;

• 1. A description of the fees to be charged as part of the investment transaction; and 2. The Certification Application Fee.

Upon receipt of a completed Certification Application and accompanying information, verification, and fees, the Authority shall determine if the Certification Application should be granted and the investment certified as a qualified equity investment eligible for tax credits under 10 M.R.S.A. §1100-Z. If the Authority finds that the investment should be certified, it shall notify the CDE, the Commissioner, and Maine Revenue Services of its approval, in writing, including the names of persons eligible to claim tax credits, and the respective amounts thereof.

SECTION 6. REPORTING REQUIREMENTS; RECAPTURE

1. A CDE that has been awarded tax credit allocation authority pursuant to Section 4 after December 31, 2025 that has not submitted Certification Applications as to all of its allocation authority must file an annual report with the Authority on April 30, 2027 for the preceding calendar year, and each succeeding April 30 for the preceding calendar year, until all of its awarded allocation has been certified or has lapsed, in each case with the Annual Report Fee, providing the following information:

• 1. A summary of activity of the CDE in seeking qualified equity investments that have not been certified; 2. The total amount of investment received by the CDE to date that have not been certified, including investments for which it intends to seek certification; 3. To the extent investments have been received and not certified, the qualified active low-income community business in which such investments are intended to be re-invested by the CDE; 4. To the extent investments have been received but not certified, the proposed use or uses of the proceeds by the qualified active low-income community business if so re-invested by the CDE; 5. To the extent investments have been received and not certified, the low-income community or communities in which the proceeds will be expended by the qualified active low-income community business if so re-invested by the CDE; 6. The date by which the CDE intends to file its Certification Applications;

2. A CDE that has received Certification as to some or all of its tax credit allocation authority pursuant to Section 4 after December 31, 2025 must file an annual report with the Authority commencing April 30 of the year following the calendar year it receives its first Certification, and on each April 30 thereafter through the April 30 of the year following the seventh anniversary date of the final Certification, with the Annual Report Fee, providing the following information:

A summary of activity of the CDE in completing the expenditure of at least 85 percent of its qualified equity investments in qualified low-income community investments within twenty four months of receipt, including: the amounts invested to date; the qualified active low-income community businesses in which the such investments have been made by the CDE; the use or uses of the proceeds of such investments by the qualified active low-income community businesses; the low-income community or communities in which the proceeds were expended by the qualified active low-income community; and the estimated number of jobs created or retained by the qualified active low-income community businesses on account of such investments;

Evidence of the maintenance of at least 85 percent of the qualified equity investments as qualified low-income community investments, including any repayment of qualified low-income community equity investments and subsequent reinvestment in other qualified low-income community investments;

Whether and to what extent any federal new markets tax credits have been subject to recapture for qualified equity investments certified by the Authority;

Whether and to what extent any principal repayments or redemptions have been initiated by the CDE of any qualified equity investments certified by the Authority.

The total number of employees of any qualified low income community business that received an investment for which tax credits were awarded under this program as of the preceding December 31, broken down by those that resided in the state, and those residing in other states.

The total payroll of any qualified low income community business that received an investment for which tax credits were awarded under this program for the year ending as of the preceding December 31, broken down by that paid to employees who resided in the state and those residing in other states.

The total amount in dollars spent on goods and services other than payroll by any qualified low income community business that received an investment for which tax credits were awarded under this program for the year ending as of the preceding December 31, broken down by that paid to vendors located in the state and those located in other states

3. As a condition precedent to certification by the Authority of an investment as a qualified equity investment, the Applicant will enter into an agreement with the Authority providing as follows:

The CDE will use at least 85 percent of the qualified equity investment to make a qualified low-income community investment in a qualified active low-income community business in this State within twenty-four months of its receipt of the qualified equity investment, and maintain such level of qualified low-income community investments in qualified active low-income community businesses in the State until the last credit allowance date for such credits, and notify the Authority and Maine Revenue Services within thirty days of any failure to comply with this requirement;

The CDE will notify the Authority and Maine Revenue Services within thirty days of the CDE receiving notice that any amount of federal tax credits available for the qualified equity investments for which credits under this Program are certified are being recaptured under Code section 45D, including the amount of recapture and the reasons therefore;

The CDE will notify the Authority and Maine Revenue Services within thirty days of its having made a principal repayment or full or partial redemption as to a qualified equity investment that has been certified by the Authority as eligible for federal tax credits prior to the date that is the final credit allowance date, including the amount of such repayment or redemption.

4. If the CDE fails to file the reports required by Section 6(2) of this Rule, or violates the agreement referenced in Section 6(3) of this Rule, or otherwise is in violation of provisions of 10 M.R.S.A. §1100-Z; 36 M.R.S.A. §5219-HH; or this Rule, or if an event described in Section 6(2)(B), (C) or (D) of this Rule has occurred, the tax credits related to the qualified equity investment certified by the Authority shall be subject to recapture pursuant to 36 M.R.S.A. §5219-HH.

5. The Authority may share any information it obtains in any Allocation Application, Certification Application, or Annual Report with the Commissioner and/or Maine Revenue Services, and in any event may notify the Commissioner and/or Maine Revenue Services if it becomes aware of any event or circumstance that may warrant recapture.

SECTION 7. WAIVER OF RULE

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by statute, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §1100-Z; 36 M.R.S.A. §5219-HH
• EFFECTIVE DATE: January 1, 2012 – filing 2011-480
• EFFECTIVE DATE: October 3, 2012 – filing 2012-283 (Amendment 1)
• EFFECTIVE DATE: September 1, 2013 – filing 2013-213 (Amendment 2)
• EFFECTIVE DATE: September 1, 2015 – filing 2015-165 (Amendment 3) (EMERGENCY)
• EFFECTIVE DATE: November 9, 2015 – filing 2015-209 (Amendment 3)
• AMENDED: December 8, 2025 – filing 2025-234 (Amendment 4)
• APAO ACCESSIBILITY CHECK: December 4, 2025 (no issues detected)

Chapter 326 Compliance Assistance Loan Program

Code Me. R. 94-457 Ch. 326 Compliance Assistance Loan Program {#sec-94-457-ch.-326 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 326}

Summary: This rule establishes the procedures and standards applicable to borrowers participating in the Finance Authority of Maine’s statewide program for making loans to finance the renovation, removal, disposal or replacement of all or any part of certain oil storage facilities or tanks and certain air quality improvement equipment, in conjunction with the Maine Municipal Bond Bank and the Maine Department of Environmental Protection.

1. Definitions

A. Reference to Act definitions. Certain terms used in this rule which are defined in the Finance Authority of Maine Act , 10 M.R.S.A. §961 and following (the "Act"), shall have the meaning set forth in the Act unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. "Aboveground Oil Storage Facility" or "Aboveground Facility" means any aboveground oil storage tank or tanks, together with associated piping, and transfer and dispensing facilities located over land or water of the State at a single location for more than four months per year that is used or intended to be used for the storage or supply of oil. Oil terminal facilities, as defined in 38 M.R.S.A. §542(7), and propane facilities are not included in this definition.

2. "Aboveground Oil Storage Tank" or "Aboveground Tank" means any aboveground container, less than 10% of the capacity of which is beneath the surface of the ground, that is used or intended to be used for the storage or supply of oil. Included in this definition are any tanks situated upon or above the surface of a floor in such a manner that they may be readily inspected.

3. "Borrower" means a person or entity that meets the eligibility requirements set forth in Section 3 of this rule, and includes a prospective borrower where the context requires. If the borrower is a real estate holding company or is a subsidiary or affiliate of or is related to an entity with 50% or more common ownership "borrower" shall include the parent, affiliated or related entity when determining eligibility, including the net worth and debt service coverage of the borrower. A borrower does not include a unit of local government.

4. "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

5. "Current Obligation(s)" means the portion of all outstanding debts including principal and interest owed by the borrower due within one year of the date of application, including payments on leases of real and personal property.

6. "Debt Service Coverage" means an amount equal to the quotient of a fraction, the numerator and denominator of which are as follows:

Net Income + Interest + Depreciation + Amortization

Current Obligations + Proposed Loan Obligations

7. "Equipment Related to Air Quality Improvement" means any equipment which must be installed by a gasoline service station to comply with applicable laws and regulations regarding gasoline service station vapor control and petroleum liquids transfer vapor recovery pursuant to the requirements of applicable law.

8. "Gasoline Service Station" means a single location from which a) motor fuel is sold to the general public or b) motor fuel is distributed solely for the use of officers or employees or owners of the location. A gasoline service station does not include a location from which motor fuel is distributed only for later sale.

9. "Net Income" means net income as determined by generally accepted accounting principles, as applied by the Authority. The determination of the borrower's net income shall be based on the financial statements and tax return for the borrower's most recent fiscal year and interim financial statements as the Authority may require. The Authority may rely on financial statements and tax returns from previous fiscal years if, in the discretion of the Authority, they are necessary to make a determination of net income.

10. "Net Worth" means, in the case of an individual or sole proprietorship, the total value of the equity of the borrower, the borrower's spouse, and dependents in all real and personal property, excluding the borrower's principal residence. In the case of a corporation or a limited liability company, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each stockholder or member owning 20% or more of the outstanding and issued stock or ownership units of the corporation or limited liability company. In the case of a partnership, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each general partner. In the case of a trust, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each beneficiary of 20% or more of the proceeds of the trust. In the case of a co-op, net worth shall be defined in accordance with generally accepted accounting principles and may include the individual net worth of major owners in the discretion of the Authority.

11. "Members" means the members of the Finance Authority of Maine.

12. "Program" means the Compliance Assistance Loan Program governed by agreement between the Finance Authority of Maine (“Authority”), the Maine Municipal Bond Bank, the Maine Department of Environmental Protection (“MDEP”), and this rule.

13. "Project" means a) the renovation, removal, disposal or replacement of all or any part of an eligible underground oil storage facility or tank, or b) the construction (in connection with replacement), replacement or renovation of an aboveground tank or aboveground facility, or c) or the installation of equipment related to the improvement of air quality in association with a project described in subsection (a) or (b) of this section 1(B)(13). A project may include the costs associated with replacement or repair of a fire suppression system or any portion thereof if an existing fire suppression system or any portion thereof has been damaged during the course of other work associated with the project.

14. "State" means the State of Maine.

15. "Underground Oil Storage Facility" or "Underground Facility" means any tank, together with associated piping and dispensing facilities, 10% or more of which is located beneath the surface of the ground and not on or above a floor in such a manner that it may be readily inspected, located at a single location and used, formerly used or intended to be used for the marketing and distribution of oil, petroleum products or their by-products to persons or entities other than the owner of the facility.

16. "Underground Oil Storage Tank", or "Underground Tank" means any tank, together with associated piping, 10% or more of which is located beneath the surface of the ground and not on or above a floor in such a manner that it may be readily inspected, located at a single location and used, formerly used or intended to be used for consumption by the owner or user of the tank on the premises.

2. Program Implementation and Assistance Provided

The program shall be administered by and is delegated to, the Chief Executive Officer. The Authority may provide financial assistance in the form of a loan in the amount actually necessary to complete a project up to $400,000 to an eligible borrower. Assistance under this program shall be from the Clean Water State Revolving Fund pursuant to agreement among the Authority, the Maine Municipal Bond Bank and the MDEP.

3. Eligibility

A. To be eligible for financial assistance under the program, a borrower must demonstrate at least one of the following:

1. The borrower is the owner or operator of an existing underground oil storage facility or underground tank which a) is located on premises which are not used solely for residential, including rental residential, purposes; and b) is leaking or has been identified by the MDEP as posing an environmental threat, or removal is required by applicable law or rule;

2. The borrower is required by applicable law or regulation to install equipment related to air quality improvement in association with a project described in subsections 1, 3, or 4 of this section 3(A);

3. The borrower is constructing, replacing or renovating an aboveground tank or an aboveground facility and the work is being supervised by a State registered professional engineer or State certified tank installer with training and experience in aboveground oil storage facility installation; or

4. The borrower is renovating an underground oil storage tank or facility, and the work is supervised by an underground oil storage tank installer certified by the Maine Board of Underground Storage Tank Installers and the estimated cost of the work is greater than $1,000.

Notwithstanding anything herein to the contrary, owners or operators of 15 or more gasoline service stations are not eligible for financial assistance under the program.

B. To be eligible for financial assistance under the program, a borrower must demonstrate each of the following:

1. Financial need for the assistance.

2. A reasonable likelihood that the borrower will be able to repay the loan.

3. Any financial assistance will be used only for a project.

C. A borrower shall be eligible for a loan in accordance with the following criteria:

Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan with interest of 6% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.0 or greater, but less than 1.2. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 1%.

2. Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan with interest of 4% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.2 or greater, but less than 1.5. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 2%.

3. Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan with interest at 2% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.5 or greater, but less than 2.5. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 3%.

4. Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan at the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 2.5 or greater, but less than 3.0. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 3.5%.

5. A borrower with debt service coverage of 3.0 or greater or net worth of $750,000 or greater shall not be eligible for assistance under the program, unless the borrower can demonstrate financial need to the satisfaction of the Authority.

D. A borrower may obtain a loan for a project that has already been completed if the borrower provides satisfactory evidence of compliance with each of the following:

1. The project was completed no later than nine months previous to the date the complete application is received by the Authority.

2. The loan is made to the same individual or entity, who owned or operated the project at the time the project was undertaken.

3. The loan will assist in maintaining a compliant and viable business.

4. Terms shall be set in accordance with section 3(C) hereof.

5. Notwithstanding anything herein to the contrary, projects financed on or after April 1, 2016 pursuant to the Authority’s Economic Recovery Program as described in Chapter 311 of the Authority’s rules, as amended from time to time, may be considered for refinancing under this program, if an application is made within three months of the effective date of this rule.

4. Application Procedure and Content

Each borrower shall submit an application to the Chief Executive Officer on such forms and with such attachments as the Chief Executive Officer may require consistent with the purposes of the program and this rule. The Chief Executive Officer will review each application for completeness and eligibility. Applications that are not substantially complete may be deemed not received until completed. The Chief Executive Officer shall determine when an application is received, which determination shall be final. An application shall contain, at a minimum, such general information identifying and describing the borrower, the proposed project, and the proposed financing of the project as specified in the application form and as otherwise requested by the Chief Executive Officer.

5. Criteria and Considerations

A. No application will be approved unless the MDEP and the Chief Executive Officer determine that the borrower is eligible and that the loan proceeds will be used for a project.

B. No application will be approved unless the Chief Executive Officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

C. The Authority may rely upon information provided to it by the MDEP regarding whether a project is eligible. MDEP shall certify to the Authority the eligibility of applicants under Section 3(A) of this rule.

6. Terms and Conditions; Fees and Other Charges

A. Periodic payments of principal and interest on loans shall be established in accordance with a borrower's individual needs.

B. Loans shall not exceed terms of 15 years.

C. Additional requirements and covenants of each loan may be established, provided that each borrower shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if the borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the Chief Executive Officer.

D. The borrower shall pay to the Authority a loan origination fee equal to 1.5% of the loan amount as follows: 1% due at closing and .5% payable monthly over the first year of the loan. Commencing on the first anniversary date of the loan and annually thereafter, the borrower shall also pay to the Authority an annual loan administration fee in an amount equal to .75% of the outstanding principal balance of the loan remaining due, payable over the next 12 months of the loan. The borrower shall be responsible for the Authority's attorney’s fees (whether of the Authority’s legal division or outside counsel) and all out of pocket costs and expenses of underwriting, closing, administering and collecting the loan.

E. Closing costs, but not loan origination or administration fees, may be financed.

F. Any loan made pursuant to this program may be assumed by a purchaser of the premises from which the facility or tank is removed, provided that the loan may only be assumed by a for profit entity which would be eligible for a loan on the same terms and conditions as the original borrower. The eligibility of any such assuming entity shall be determined by the Chief Executive Officer.

G Installation, renovation, and removal of any underground oil storage tank facility and equipment must be completed in accordance with 06-096 CMR Chapter 691 of the rules of the MDEP and applicable law, by or under the direction of a person certified by the Maine Board of Underground Storage Tank Installers. All disposal of tanks and facilities shall be in accordance with applicable laws. The Authority may require evidence of compliance with these conditions.

7. Collateral

A. Repayment of any loan pursuant to the program shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless compelling reasons are presented justifying not requiring a guarantee.

B. Loans may, at the discretion of the Chief Executive Officer, be secured by collateral valued for collateral purposes at less than the amount of the loan, when necessary to ensure the replacement of a facility or tank or the installation of equipment related to the improvement of air quality required to be replaced or installed under applicable law.

C. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use.

8. Commitment

A. Upon approval of a loan application by the Chief Executive Officer, a commitment will be issued setting forth the terms and conditions upon which the loan will be extended.

B. In the event the Chief Executive Officer rejects any application, the Chief Executive Officer will promptly send the applicant notice containing reasons for the rejection. The notice shall include a statement of the applicant's right to appeal the Chief Executive Officer's decision to the members.

9. Appeal to the Members

In the event that an application is rejected by the Chief Executive Officer, the applicant shall have the right to appeal the decision of the Chief Executive Officer to the members, provided that such appeal shall not affect processing of other applications received prior to the notice of appeal. Notice of the appeal, together with a statement of the reasons why the Chief Executive Officer's decision should be reversed or modified, shall be given to the Chief Executive Officer in writing within 20 days after the date the Chief Executive Officer mailed the notice of rejection to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the Chief Executive Officer on the date of the rejection. The decision of the Chief Executive Officer shall be final unless the members determine that the rejection by the Chief Executive Officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the Chief Executive Officer and may direct the Chief Executive Officer to take further action with respect to the application. Priority of any application with respect to which the Chief Executive Officer's rejection has been overturned or modified shall be determined as of the date and time of receipt of the notice of appeal.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969-A(14)
• EFFECTIVE DATE: November 8, 2017 – filing 2017-171
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• EFFECTIVE DATE: Basis Statement
• EFFECTIVE DATE: The rule is necessary to inform borrowers of the requirements and standards for obtaining loans from the Clean Water State Revolving Fund made available for the purposes expressed in the rule. The rule sets forth eligibility requirements for borrowers and projects to be financed, and terms and conditions of loans. In drafting the rule, the Authority relied on its experience in administering similar programs, the professional judgement of its staff, and consultation with the Maine Department of Environmental Protection and the Maine Municipal Bond Bank.
• EFFECTIVE DATE: During the comment period, one written comment was received from David E. Burns, Director of the Bureau of Remediation and Waste Management at the Maine Department of Environmental Protection, requesting clarification to Section 6(G) of the rule to conform the language of that Section to the rule of the Maine Department of Environmental Protection cited in that Section. The members of the Authority found that the clarification was warranted and consistent with the proposed rule, and adopted the clarification.
• EFFECTIVE DATE: Economic Impact Statement – Small Businesses
• EFFECTIVE DATE: The rule is not expected to have any adverse impacts on small businesses.
• EFFECTIVE DATE: Fiscal Impact Note
• EFFECTIVE DATE: The rule will not impose any costs on municipalities or counties.

Chapter 601 Maine State Grant Program (MSGP)

Code Me. R. 94-457 Ch. 601 THE MAINE STATE GRANT PROGRAM (MSGP)—Amendment 13 {#sec-94-457-ch.-601 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 601}

Summary: This rule defines criteria necessary to be met for student and institution eligibility for participation in the Maine State Grant Program and establishes a procedure for awarding grants.

1. Definitions

A. Academic year. “Academic year” has the same meaning as in the definition of that term contained in the Higher Education Act of 1965, as amended, United States Code, Title 20, Section 1088(a); and the regulations, guidelines and procedures promulgated by the Secretary of Education and published in the Federal Register pursuant to these sections of federal law.

B. Adult learner. “Adult learner” means an individual aged twenty-four (24) years or older as of January 1 of the year they will start or return to school. They must not have received the grant for the three prior academic years and their Student Aid Index must not exceed the maximum set for a given academic year.

B. Authority. The “Authority” means the Finance Authority of Maine.

C. Chief Executive Officer. “Chief Executive Officer” means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

D. Dependent Student. “Dependent student” has the same meaning as that found in 34 CFR §668.2(b), or any amendment or replacement thereof.

E. Eligible program of study. “Eligible program of study” means a certificate/diploma program of at least one year, an associate degree program or a baccalaureate degree program.

F. Enrolled. “Enrolled” has the same meaning as set forth in 34 CFR §668.2(b), or any amendment or replacement thereof.

G. Full-time student. “Full-time student” means a student enrolling for at least twelve credit hours during a semester, or a student who is a full-time student as defined by the published policies of the eligible institution that the student attends.

H. Independent Student. “Independent student” has the same meaning as that found in the Higher Education Act of 1965, Section 480(d), as amended, United States Code, Title 20, Section 1087vv(d) and any regulations promulgated thereunder, or any amendment or replacement thereof.

I. Institution of higher education. “Institution of higher education” or “institution” means an institution of higher education that meets the requirements of and conforms to the definitions contained in the federal Higher Education Act of 1965, as amended, United States Code, Title 20, Sections 1001(a) and 1002(a); and the regulations, guidelines and procedures promulgated by the Secretary of Education and published in the Federal Register pursuant to these sections of law. An institution must have a federal school code (also known as a Title IV institution code) under the Higher Education Act, as amended, for its location. An institution must be located within the State or, for a student participating in the New England Board of Higher Education’s New England Regional Student Program and eligible for the Tuition Break, be an institution offering the approved degree program in which such student is enrolled.

J. Part-time student. “Part-time student” means a student enrolling for at least six credit hours during a semester, or a student who is a part-time student as defined in accordance with the published policies of the institution the student is attending and the Authority accepts said definition.

K. Program. “Program” or “MSGP” means the Maine State Grant Program established by 20-A MRSA §11611 et seq.

L. Resident of the State. “Resident of the State” means an applicant who is either (1) an independent student who has been a domiciled resident of the State for at least one calendar year prior to the date of attendance at the institution or (2) a dependent student whose parent or legal guardian has been a domiciled resident of the State at least one calendar year prior to the date of attendance at the institution. A residence established in the State while attending an educational institution is not sufficient to establish a domiciled residence in the State. An individual may establish a domiciled residence in the State by providing indicia of residency satisfactory to the Chief Executive Officer, which may include evidence of home ownership within the State, ownership of a driver’s license issued by the State, identification of Maine as the state of residency on the FAFSA or filing of State income tax returns for residents. When determining residency, all factors must be considered; establishment of any one indicia of residency may not be sufficient to establish residency.

Members of the armed forces on active duty in the State and their dependents are deemed residents of the State for eligibility purposes, notwithstanding the date residency is established, provided that the applicant is not eligible to receive financial aid provided by any other state.

M. State. “State” means the State of Maine.

N. Student Aid Index. “Student Aid Index” or “SAI” means a calculation that reflects an evaluation of a student’s approximate financial resources to contribute toward the student’s postsecondary education for an academic year.

2. Student Eligibility

To be eligible for consideration for the Program the student must be a full-time student or a part-time student and meet each of the following eligibility criteria:

A. The student must be a U.S. citizen or an eligible noncitizen as defined in Title IV of the Higher Education Act of 1965, Section 484, as amended, United States Code, Title 20, Section 1091; and the regulations, guidelines and procedures promulgated by the Secretary of Education and published in the Federal Register pursuant thereto.

B. The student must be a resident of the State and shall have graduated from an approved secondary school (or matriculated at an approved post-secondary school prior to high school graduation) or successfully completed a general education development examination or its equivalent.

C. The student must be accepted for enrollment as an undergraduate in an eligible program of study or be in good standing as an undergraduate for a first baccalaureate degree at an institution of higher education according to the prescribed standards, regulations, and practices of that institution; meet the required academic standards for admissions and have not received a previous baccalaureate degree and qualify under Section 6.

D. The student must have need as determined by the Authority pursuant to Section 5.

E. The student must not owe a refund to or be in default of any educational grant or loan programs.

F. The student must annually apply to participate in the MSGP by completing such application forms as may be designated by the Chief Executive Officer and filing the complete application with the designated recipient by the deadline established each year by the Authority.

Whether a student is an independent student or a dependent student shall be determined on the basis of the applicant’s information reported on the required application and is subject to verification by the institution.

3. Institution Eligibility

To be eligible to participate in the Program an institution must:

Meet the definition of institution of higher education set forth in Section 1(J).

B. Submit cost of attendance figures and other reports as requested by the Authority.

C. Have one person designated as the contact person for the Maine State Grant Program.

D. Certify that the student recipient is an eligible student within institutional standards or by utilizing federal financial aid guidelines.

E. Certify that the student is maintaining satisfactory progress in a course of study according to the standards and practices of the institution.

F. Certify that the student does not owe a refund on any grant previously received under the Federal Pell Grant or Federal Supplemental Educational Opportunity Grant (SEOG) programs.

G. Certify that the student is not in default on any loan made, insured, or guaranteed under the Federal Perkins Loan, the Federal Direct Student Loan Program or the Federal Family Education Loan Program.

H. Certify to the best of its knowledge and belief that the student's dependency status is as shown on the required application and that it has no conflicting information.

I. Certify that appropriate auditing and control procedures have been utilized in the operation of the Program at the institutional level.

J. Certify that no student has received an over-award.

K. Have a drug/alcohol free workplace policy and have related policies for student recipients in place.

4. (Repealed effective August 12, 1996)

5. Determination of Need

The Chief Executive Officer shall establish the need of a student for a Program grant for an academic year for which the student applies:

A. Method. The Authority shall consider the cost of attendance of the student, the Student Aid Index, and estimated student financial assistance not received under this Program. The total financial aid from all sources may not exceed the cost of attendance at the institution the student attends.

(1) In determining the cost of attendance to determine eligibility under this subsection, the Authority shall consider the following, as published by the institution:

(a) Tuition and required fees charged to all full-time and part-time students;

(b) Standard room and board costs at the level charged by the University of Maine and applied to all eligible institutions; and

(c) Books and personal expenses or other amounts determined by the Authority.

B. (Repealed effective February 3, 1992)

6. Length of Grant; period of study

A. A grant shall be for a period not to exceed one academic year. A grant recipient who remains eligible shall be considered in the succeeding award year only upon submission of a complete application.

B. A student may receive a grant during the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is enrolled. The period may not exceed ten (10) semesters or the equivalent thereof at the institution the student is attending, except that an adult learner as defined above may receive a grant for a period not to exceed twelve (12) semesters.

7. Determination of Grant

Grants to eligible students shall be determined as follows:

Students with the lowest Student Aid Index shall be given priority over all other eligible students for the awards of grants.

B. Grants awarded under this chapter shall be no less than the minimum amount provided by 20-A M.R.S.A. §11614(2). The Authority may, in its discretion, award grants to 2^nd, 3^rd, and 4^th-year students in (i) one amount to all such students which is more than the grant amount awarded to 1^st-year students or (ii) a combination of amounts whereby the grant is awarded to 2^nd-year students in an amount that is more than the grant awarded to 1^st-year students and increases with each of the 3^rd and 4^th-year classes.

C. (Repealed effective July 13, 1998.)

D. No grant will be awarded if the award will reduce institutional or other grant aid to the student, unless the institutional or other grant aid is subsequently granted to a student with demonstrated financial need.

8. Payment Procedures

Funds will be issued to the institution pursuant to the following procedures:

A. The institution shall notify the Authority of the number of students actually enrolled and eligible and the amount due.

B. The institution shall be sent funds at least once each semester for the grant money to be credited to the students actually enrolled and eligible at the time the disbursement designated for a student is requested.

C. The institution shall make payment to the recipient students by crediting the student's account or by utilizing other procedures as determined by the institution.

D. When refunds are in order, the institution's published refund policy will be used to refund the Authority its appropriate share. If the refund is processed by check, the refund check will show only whole dollars and be sent to the Authority.

E. Each institution must reconcile amounts received and amounts credited to the account of eligible students by the date determined by the Authority each year. Such reconciliation must include payment to the Authority of any amounts due to the Authority as a result of any refunds made to a student.

F. Each institution must provide reports to the Authority, as required by the Authority.

9. Program Review

The Authority may periodically conduct a program review of a participating institution's operation of the MSGP and may offer technical assistance to the institution. An institution loses its ability to participate in the MSGP if it no longer meets the requirements of the MSGP.

10. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial.

11. (Repealed Effective September 3, 2001)

12. Safety Net

The Chief Executive Officer may not allocate a lesser aggregate dollar amount of MSGP (formerly known as MSISP) grants to students attending the University of Maine System, the Maine Maritime Academy, the Maine Community College System (formerly known as the Applied Technology-Technical Institute System) and private post-secondary institutions than was allocated for students of each of those institutions or groups of institutions of higher education in 1988-89.

13. Reconsideration

In the event that an application for a grant is denied because of a finding that the applicant is not a resident of the State, the applicant or the institution of higher education the applicant is planning to attend shall have the right to seek reconsideration by the Chief Executive Officer. The request for reconsideration, together with a statement of the reasons why the decision on residency should be reversed must be given to the Chief Executive Officer in writing within 20 days after the date the of notice of the ineligibility of the applicant to the institution of higher education. The decision of the Chief Executive Officer shall be final.

History

• STATUTORY AUTHORITY: 10 MRS §969-A(14), 20-A MRS §11617(2).
• EFFECTIVE DATE: March 6, 1990
• AMENDED: February 3, 1992
• AMENDED: January 2, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: August 12, 1996 - general change in references from “scholarship” to “grant” or “Program grant”; addition of 1(P); insertion of “incentive” in 3(J); insertion of “expected” in 5(A); addition of reference to Higher Education Act of 1965 in 7(D) and 7-A(D); addition of reference to section 11.B(3) in 7(F); addition of 11(A, B, C).
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.
• AMENDED: July 13, 1998 - 3(G), 5(B), 7(B,C,H), 7-A(C,G)11(C,D).
• NON-SUBSTANTIVE CORRECTIONS: August 12, 1998 - minor formatting.
• AMENDED: November 2, 1998
• AMENDED: July 20, 1999 (EMERGENCY - expired October 18, 1999) - Amendment 6, Sections 7 and 7-A
• AMENDED: October 23, 1999 – Amendment 6 (non-emergency)
• NON-SUBSTANTIVE CORRECTIONS: March 17, 2000 - section symbol in 1(H)
• AMENDED: September 3, 2001 - Amendment 7: amended title, summary, 1(I, J, P), 2(1st paragraph, F), 3(1st paragraph, J), 5(A)(2), 6(B), 7(H), 7A(G), 8, 9; added 8A; repealed 11
• AMENDED: November 9, 2003 – Amendment 8, filing 2003-407
• AMENDED: May 21, 2005 – Amendment 9, filing 2005-157, amended 1(L), 3(C), 6(B), added 13
• AMENDED: July 1, 2007 – Amendment 10, filing 2007-11
• AMENDED: January 7, 2013 – Amendment 11, filing 2013-001
• AMENDED: October 10, 2022 – Amendment 12, filing 2022-192
• AMENDED: November 20, 2023 – filing 2023-234
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 602 Maine Guaranteed Student Loan Programs

Code Me. R. 94-457 Ch. 602 Maine Guaranteed Student Loan Programs {#sec-94-457-ch.-602 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 602}

SUMMARY: This rule establishes Maine policy for the Federal Family Education Loan Programs. Federally mandated rules, policies and procedures are found in the Common Manual. Exceptions, clarifications or policies particular to Maine are set forth in this rule.

1. Adoption of the Common Manual. All policies found in the Common Manual, 2006 Annual Update (the “Common Manual”), are the policies of the Finance Authority of Maine (the "Authority”) for the implementation of the Federal Family Education Loan Programs in Maine, except as specifically provided or clarified herein. For purposes of loans guaranteed by the Authority, all references in the Common Manual to the Guarantor shall be deemed to refer to the Authority or its servicer. The Common Manual is available by request from the Authority and may be accessed on the Internet at http://www.nchelp.org/elibrary/CommonManual/ecm2006.pdf

Common Manual Materials Modified or not Adopted. The following sections of the Common Manual as applied to the Maine Guaranteed Student Loan Programs are replaced or modified as noted. [All references are to the Common Manual.]

A. Section 3.3.B. under Blanket Certificate of Loan Guarantee Programs is modified to include the following: Unless prior arrangements have been made with the Authority, lenders cannot use the Authority’s blanket-guarantee process for the guarantee of loans that will be delivered via direct disbursement to students attending an eligible foreign school.

B. Section 7.7.I. is modified as follows: For loans guaranteed by the Authority, a lender must cancel any remaining unmade disbursements upon learning that the borrower has initiated a bankruptcy action that would result in the lender being required to file a claim with the guarantor. Further, the lender is required to notify the school, the borrower, and the Authority of the cancellation. The lender must also notify the borrower that he or she may reapply for any remaining eligibility. In cases where the MPN is used as a multi-year note, an MPN executed before the bankruptcy action remains valid for future loans. This includes the new loan that replaces any disbursements cancelled due to the bankruptcy action. However, the lender may, at its discretion, choose to obtain a new MPN from the borrower.

Unlike Common Manual policy, the Authority does not recommend that the lender contact the school to request the return of any funds that are undelivered at the time the lender is notified of the borrower’s bankruptcy.

Disbursements made on or after the date a bankruptcy claim is filed – or made more than 30 days after the date the lender receives notice of the bankruptcy action, if that date is earlier – will not be insured unless the lender obtains documentation from the bankruptcy court clearly indicating that the additional disbursements are included in the bankruptcy action. Also, if a lender disburses funds after it files a bankruptcy claim or more than 30 days after its receipt of bankruptcy notification, the lender must ensure that the total amount of disbursed funds is noted on the lender’s proof of claim with the bankruptcy court.

In all cases, a lender must adhere to the disbursement schedule provided by the school. If disbursements are scheduled by the school to occur after the claim-filing deadline, the lender must not disburse the funds early in order to include the subsequent disbursements in the claim.

For bankruptcy action where a claim should not be filed because the loan is not dischargeable (see subsection 13.8.A for requirements), the lender must make any remaining disbursements. If the lender chooses not to make remaining disbursements, the lender must notify the school, the borrower, and the Authority of the cancellation. The lender also must notify the borrower that he or she may reapply for any remaining eligibility. In cases where the MPN is used as a multi-year note, an MPN executed before the bankruptcy action remains valid for future loans. However, at its discretion, a lender may choose to obtain a new MPN for the borrower.

C. Section 12.3.A. is modified as follows: As a result of previous bankruptcy court rulings, a loan holder that fails to suspend collection activities after receiving notification of a bankruptcy filing from a borrower may incur liability through contempt charges from bankruptcy courts for violating the automatic stay provisions of bankruptcy law, as authorized in 11 U.S.C. §362. To minimize such liability, the Authority will allow loan holders to suspend collection activities in response to any of the following types of notification that a borrower has filed bankruptcy:

A telephone call or letter from the borrower.

A telephone call or letter from the borrower’s attorney.

If the loan holder suspends collection activities upon receiving notification from the borrower, the loan holder must immediately begin actively pursuing confirmation by the bankruptcy court that the borrower has filed bankruptcy.

The loan holder must retain documentation of its efforts to ascertain whether the borrower filed bankruptcy, and must note the reason collection activities were suspended in the loan file. Although notification of a bankruptcy filing from a borrower may be considered sufficient for suspending collection activities, a bankruptcy claim may be filed on a loan only after notification from the borrower’s attorney or bankruptcy court confirmation of the borrower’s filing is obtained. The time filing deadline will be measured from the date the lender receives proof of bankruptcy filing from the attorney or the bankruptcy court (rather than the date the original unofficial notification is received).

If the loan holder is unable to obtain court confirmation of the bankruptcy filing within a reasonable period of time (preferably within 45 days), it must resume servicing on the loan at the point of delinquency, if any, that existed at the time the collection activities were suspended. A lender may capitalize the interest that accrues during the period when collection activities were suspended only if it obtains written authorization from the borrower.

Section 13.8.A. is modified to the extent necessary to incorporate the modifications to Section 7.7.I.

The Authority requires lenders to file an assignment with the court when the lender files a Proof of Claim (POC) instead of submitting the original assignment in the claim file. A copy of the court-filed assignment must be included in the claim file.

The Authority strongly encourages lenders to file such assignments and POCs electronically with the court when possible. If the lender files electronically with a court, it must provide a copy of the electronically transferred documents in the claim file.

E. Section 15.2 is amended to add the following:

Consolidation for Borrowers with Defaulted Loans. The Authority will guarantee a Consolidation loan that includes a defaulted loan only if the borrower makes satisfactory repayment arrangements with the loan holder before applying for the Consolidation loan. For these purposes, satisfactory repayment arrangements are defined as three consecutive, on-time, voluntary, monthly payments. Furthermore, the Authority requires that the payments satisfy interest accruing on each defaulted loan to be consolidated.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969 (14); 10 M.R.S.A. §1014; 20 U.S.C. §421 et seq.
• EFFECTIVE DATE: August 1, 1990 (transferred from 05-071)
• AMENDED: April 28, 1992 (EMERGENCY)
• AMENDED: September 14, 1992
• REPEALED & REPLACED: January 1, 1997 (formerly Stafford Loan Program)
• NON-SUBSTANTIVE CORRECTION: April 1, 1997
• AMENDED: January 12, 1998 (EMERGENCY - expires April 12, 1998)
• AMENDED: April 1, 1998
• NON-SUBSTANTIVE CORRECTION: May 1, 1998 - corrected reference in N-1.
• REPEALED AND REPLACED: August 30, 2000.
• NON-SUBSTANTIVE CORRECTION: November 26, 2000 - punctuation in Section 2(J)
• REPEALED AND REPLACED: November 6, 2004 – filing 2004-481
• REPEALED AND REPLACED: January 29, 2007 – filing 2007-26
• REPEALED AND REPLACED: 94-457 Chapter 602 page 4
• REPEALED AND REPLACED: 4

Chapter 603 Rules for the Conduct of the Blaine House Scholars Program

Code Me. R. 94-457 Ch. 603 Rules for the Conduct of the Blaine House Scholars Program {#sec-94-457-ch.-603 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 603}

Summary: This rule details the procedures to be utilized in the conduct of the Blaine House Scholars Program.

1. Definitions

A. Academic Achievement. “Academic achievement” means graduation in the top one-half of the class or the equivalent for graduating high school seniors, or earning a grade point average of at least 3.0, based on a 4.0 grade point system, or the equivalent thereof, as determined in the discretion of the chief executive officer, for currently enrolled college students and all other postsecondary applicants. The determination of academic achievement for applicants for a loan for students pursuing postbaccalaureate teacher certification is based upon their most recent cumulative grade point average.

B. Authority. "Authority" means the Finance Authority of Maine.

C. Blaine House Scholar. "Blaine House Scholar" means an eligible individual who has been recognized as such by the Governor after consultation with the chief executive officer, who shall annually review and evaluate all submitted applications.

D. Chief Executive Officer. "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

E. Duly Enrolled. "Duly enrolled" means the time at which an eligible individual has attended the first class meeting.

F. Eligible Individuals. "Eligible individuals" means students and teachers who meet eligibility requirements as determined in 20-A MRSA sections 12505 and 12507 and this rule.

G. Geographically Isolated Area. "Geographically isolated area” means an area identified pursuant to 20-A MRSA §15612(2).

H. Institution of Higher Education. Institution of higher education means an accredited postsecondary educational institution offering two year, four year or graduate level programs which lead to the attainment of Associate, Baccalaureate, Master or Doctorate Degrees and technical colleges offering at least a two year program of study beyond grade 12. The institution of higher education shall be located within this state, another state or a foreign country, the District of Columbia or United States Trust Territories. Federally subsidized military academies are not eligible.

I. Teacher. "Teacher" means a person certified by the Department of Education who is employed as a teacher by a public school or private school approved for tuition purposes or a state operated school including elementary and secondary teacher, specialized subject teacher, vocational industrial teacher as defined in the certification rules of the State Board of Education and also includes by position title the following, unless modified by future legislation:

1. Classroom teacher

2. Itinerant teacher

3. Guidance counselor

4. Librarian-media specialist

5. Special education teacher

6. Special teacher of reading

7. Speech clinician teacher

8. Chapter I tutor

J. Preservice. "Preservice" means preparation to become a teacher either through completion of not less than a four year teacher training program or through a liberal arts program and teaching pedagogy leading to certification in the subject area or areas to be taught.

K. Return Service. "Return service" means service performed as a teacher in public elementary or secondary schools in Maine or in a Maine private school approved for tuition purposes or in a state operated school for a full school year.

L. Underserved Subject Areas. "Underserved subject areas" means those subjects or programs required or authorized to be taught in the public schools for which there is an insufficient supply of teachers as may be determined by the chief executive officer after consultation with the Commissioner of the Department of Education. Those subjects include, but are not limited to, special education, computer studies, school librarians, reading specialists, science (7-12) and math (7-12).

M. Students pursuing postbaccalaureate teacher certification. "Students pursuing postbaccalaureate teacher certification" means students who have earned a Bachelor of Arts degree or its equivalent and are pursuing a program of studies leading to certification as a teacher.

N. Most recent cumulative grade point average. "Most recent cumulative grade point average" means the grade point average ("GPA") or its equivalent from the applicant's most recently completed course of study resulting in a degree. However, if the applicant has completed six credits or more in a program leading to teacher certification, during the year prior to the date of application in a program leading to teacher certification, the GPA or the equivalent attained for those credits is the most recent grade point average.

2. Application Deadlines

A. All applications for loans shall be made on forms provided by the Authority.

B. The deadline for filing initial applications is April I annually.

C. The deadline for filing renewal applications is April I annually. If a student does not have a GPA of 2.5 or the equivalent on the date of the application deadline, the student may request reconsideration of the application for renewal by submitting Spring semester grades no later than June 30.

D. [Repealed Effective November 24, 1991]

3. Loan Terms

A. Loans of up to $1,500 per academic year or $6,000 total may be made to eligible individuals. Individuals who have received a Blaine House scholars loan as an undergraduate student may also receive a loan for students pursuing postbaccalaureate teacher certification or a loan for teachers engaged in graduate education or continuing education. In no event may an individual receive more than $12,000 in total.

An eligible individual who has received a loan as a student pursuing postbaccalaureate teacher certification may subsequently receive a loan as a teacher engaged in graduate study or continuing education, including undergraduate courses. However, in no event may an individual receive Blaine House loans totaling more than $6,000 for students pursuing postbaccalaureate teacher certification and teachers engaged in graduate education or continuing education.

B. Loans shall be made to eligible individuals without interest.

C. Loans shall be for one academic year.

4. Loans to Graduating High School Seniors

A. Initial Loan Eligibility

(1) The student must be graduating from high school or the equivalent.

(2) The student must be in the upper half of the graduating class or the equivalent.

(3) The student must be a resident of the state.

(4) The student must be intending to pursue a postsecondary education at an institution of higher education on a full-time basis as determined by standards of the institution.

(5) The student must sign an agreement detailing conditions to be met for receipt of a loan.

(6) The student must be recognized as a Blaine House Scholar.

(7) Preference shall be given to students who intend to enroll in a program which has been determined to be an underserved subject area.

(8) The student must sign a statement certifying compliance with the United States Military Selective Service Registration Act or certifying the basis for exemption from such compliance.

B. Renewal Loan Eligibility

(1) The student must apply annually for a loan by the deadline date.

(2) The student must have received an initial loan.

(3) The student must maintain a 2.5 grade point average based on a 4.0 grade point system. Should the GPA fall below 2.5, the student has one academic year to bring the GPA up to 2.5. If this requirement is not met the student will be ineligible for further program participation.

(4) The student must be pursuing a postsecondary education at an institution of higher education on a full-time basis as determined by standards of the institution.

(5) A student granted an approved leave of absence by the postsecondary institution may be eligible to renew the loan at the termination of the leave of absence provided that all other requirements of this section are met.

(6) The student must sign an agreement which details conditions to be met for receipt of a loan.

(7) The student must maintain residence in the State of Maine in order to be eligible for a renewal loan.

C. Deferral. Acceptance of an initial award or renewal of a previous award may be deferred for one academic year only. If a designated Blaine House Scholar fails to be duly enrolled in an institution of higher education by the beginning of the second academic year which follows the student's designation as a Blaine House Scholar or receipt of a renewal award the student shall be ineligible for further program participation.

Blaine House Scholars shall be so recognized by the Governor after consultation with the chief executive officer who shall have caused a review and evaluation to be made of all submitted applications which are received annually from eligible individuals who show evidence of academic achievement.

5. Loans to Currently Enrolled Undergraduate College Students

A. Initial Loan Eligibility

(1) The student must be currently enrolled in an institution of higher education.

(2) The student must be a graduate of a Maine high school or the equivalent and a resident of Maine or a graduate of other than a Maine high school or the equivalent and a resident of Maine at least one year for other than educational purposes.

(3) The student must maintain at a minimum a 3.0 grade point average on a 4.0 grade point system or the equivalent thereof as determined in the discretion of the chief executive officer.

(4) The student must be enrolled on a full-time basis as determined by standards of the institution.

(5) The student must sign an agreement which details conditions to be met for receipt of a loan.

(6) The student must be recognized as a Blaine House Scholar.

(7) Preference shall be given to students who are enrolled or intend to enroll in a program which has been determined to be an underserved subject area.

(8) The student must sign a statement certifying compliance with the United States Military Selective Service Registration Act or certifying the basis for an exemption from compliance.

B. Renewal Loan Eligibility

(1) The student must apply annually for a loan on or before the deadline date.

(2) The student must have received an initial loan.

(3) The student must maintain at a minimum a 2.5 grade point average based on a 4.0 grade point system or the equivalent thereof, as determined in the discretion of the chief executive officer. Should the GPA fall below 2.5, the student has one academic year to bring the GPA up to 2.5. If this requirement is not met the student will be ineligible for further program participation.

(4) The student must be pursuing a postsecondary education at an institution of higher education on a full-time basis as determined by standards of the institution.

(5) A student granted an approved leave of absence by the postsecondary institution may be eligible to renew the loan at the termination of the leave of absence provided that all other requirements of this section are met.

(6) The student must sign an agreement which details conditions to be met for receipt of a loan.

(7) The student must maintain residence in the State of Maine in order to be eligible for a renewal loan.

C. Deferral. Acceptance of an initial award or renewal of a previous award may be deferred for one academic year only. If a designated Blaine House Scholar fails to be duly enrolled in an institution of higher education, as defined by these rules, by the beginning of the second academic year which follows the students designation as a Blaine House Scholar or receipt of a renewal award the student shall be ineligible for further program participation.

6. Loans to Teachers

A. Initial Loan Eligibility

(1) The teacher must be employed in a Maine school.

(2) The teacher must be employed on at least a half-time basis as determined by the local school unit.

(3) The teacher must be seeking enrollment in a course or program which is directly related t improvement and/or expansion of teaching competence.

(4) The teacher must sign an agreement which details conditions to be met for receipt of a loan.

(5) Preference shall be given to those teachers presently teaching or intending to teach either in an underserved subject area or in a geographically isolated area.

(6) The teacher must sign a statement certifying compliance with the United States Military Selective Service Registration Act or certifying the basis for an exemption from such compliance.

(7) The teacher must be a Maine resident.

(8) The teacher must submit a signed statement from the superintendent which will outline the district's educational reimbursement policy, along with an itemized expense form for that year's education. The Blaine House loan plus local reimbursement cannot exceed a teacher's cost of attendance, which includes tuition, books and supplies, room and board, travel and other reasonable expenses.

B. Renewal Loan Eligibility

(1) The teacher must have received an initial loan.

(2) The teacher must apply annually for loan renewal, but such renewal shall be automatic provided that the teacher maintains at minimum a grade point average of 2.5 based on a 4.0 grade point system or the equivalent thereof, as determined in the discretion of the chief executive officer and meets the requirement of section 6.A(3).

(3) The teacher must sign an agreement which details conditions to be met for receipt of a loan.

(4) The teacher must maintain residence in the State of Maine in order to be eligible for a renewal loan.

(5) The teacher must submit a signed statement from the superintendent which will outline the district's educational reimbursement policy, along with an itemized expense form for that years education. The Blaine House loan plus local reimbursement cannot exceed a teacher's cost of attendance, which includes tuition, books and supplies, room and board, travel, and other reasonable expenses.

C. General

Acceptance by a teacher of an initial loan or a renewal of a previous loan may be deferred for one academic year only, provided that the teacher enrolls in a program which meets the requirements of section 6.A(3) immediately upon conclusion of the one year deferment period. If the teacher fails to be duly enrolled in a higher education institution by the beginning of the second academic year following receipt of an initial loan or renewal loan, the teacher shall be ineligible for further program participation.

6-A. Loans to Students Pursuing Postbaccalaureate Teacher Certification

A. Initial Loan Eligibility

(1) The student must be a Maine resident.

(2) The student must be enrolled in or have applied for enrollment in a postbaccalaureate course of study leading to certification as a teacher.

(3) The student's most recent cumulative grade point average must be at least 3.0.

(4) The student must sign an agreement which details the conditions to be met for receipt of a loan.

(5) The student must be recognized as a Blaine House Scholar.

(6) Preference shall be given to students who are enrolled or intend to enroll in a program which has been determined to be an underserved subject area.

(7) The student must not be eligible to apply for a Loan to Teachers, pursuant to section 7 hereof.

(8) The student must sign a statement certifying compliance with the United States Military Selective Service Registration Act or certifying the basis for an exemption from compliance.

B. Renewal Loan Eligibility

(1) The student must apply annually for a loan on or before the deadline date.

(2) The student must have received an initial loan.

(3) The student must maintain at a minimum a 2.5 grade point average based on a 4.0 grade point system or the equivalent thereof, as determined in the discretion of the chief executive officer. Should the GPA fall below 2.5, the student has one academic year to bring the GPA up to 2.5. If this requirement is not met the student will be ineligible for further program participation.

(4) A student granted an approved leave of absence by the postsecondary institution may be eligible to renew the loan at the termination of the leave of absence provided that all other requirements of this section are met.

(5) The student must sign an agreement which details conditions to be met for receipt of a loan.

(6) The student must maintain residence in the State of Maine in order to be eligible for a renewal loan.

C. Deferral. Acceptance of an initial award or renewal of a previous award may be deferred for one academic year only. If a designated Blaine House Scholar fails to be duly enrolled in an institution of higher education, as defined by these rules, by the beginning of the second academic year which follows the student's designation as a Blaine House Scholar or receipt of a renewal award the student shall be ineligible for further program participation.

7. Payment Disbursement Provisions

A. A check will be made payable to each postsecondary institution for all funds to be received by student or teacher loan recipients who are indicated as duly enrolled by the institution on a roster which is sent to the institution prior to the start of each semester. A disbursement will be made to the institution at least once each semester with the appropriate amount to be credited to the accounts of the student or teacher recipients. Each check shall be disbursed within 60 days following receipt of evidence that recipients are duly enrolled.

B. Loans for students, except for students pursuing postbaccalaureate teacher certification shall be disbursed in the amount requested although this shall not exceed $1500 per academic year and shall be disbursed on a semester basis, one- half for the first semester and one-half for the second semester.

C. Loans for teachers and students pursuing postbaccalaureate teacher certification shall not exceed $1500 for the 12 month period beginning July 1 and shall be disbursed on the basis of one-third for the summer semester (summer school), one third for the fall semester, and one-third for the spring semester. Appeals to alter this fund distribution may be made by addressing a request to alter the fund distribution to the chief executive officer. Such requests must be supported with evidence of actual direct and indirect educational expenses, including, but not limited to, tuition, transportation, room and board, books and supplies. Such requests will be considered on a case by case basis.

D. If a recipient of a loan withdraws from an institution and if the student or teacher is entitled to a refund of tuition, fees or other charges, the institution shall pay directly to the Authority from that refund a sum which represents the portion of the loan paid to the student or teacher for the portion of the academic year that the student or teacher did not complete.

8. Repayment and Return Service Provisions

A. Student Recipients (Other Than Students Pursuing Postbaccalaureate Teacher Certification)

(1) Student recipients begin repayment six months after graduation.

(2) Each student recipient may cancel the total amount of the loan repayment by completing four years of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school.

(3) Each student recipient may cancel the total amount of the loan repayment by completing two years of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school if such service is performed in underserved subject areas or in geographically isolated areas as determined by the chief executive officer.

(4) Each student recipient may cancel the total amount of the loan(s) received on a proportional basis reducing the debt by 25% for each complete year of return service performed in the public schools or private schools approved for tuition purposes in the state or in a state operated school or by 50% for each year, if such return service is in an underserved subject area or a geographically isolated area.

(5) Student recipients shall perform return service within five years of graduation from the institution of higher education.

(6) A student recipient who fails to fulfill the return service option shall repay the Authority as follows:

a. The debt shall include the total amount of all Blaine House Scholars Program loans less the amount, if any, which has been canceled by return service.

b. The total debt shall be repaid to the Authority within five years of graduation on a schedule which specifies annual, semiannual, or monthly payments and indicates due dates. Exceptions due to extenuating circumstances may be granted on a case by case basis upon written request to the chief executive officer.

(7) Once a recipient has begun fulfilling the return service option by teaching in an underserved subject area or teaching in a geographically isolated area the recipient shall be allowed to complete this option in the same subject area or geographic area even though the subject area or geographically isolated area is removed from the list of those designated.

(8) Recipients who withdraw from school, for whatever reason, prior to completion of the course or courses for which the funds were loaned, will begin repayment one year from the end of the semester of last attendance and complete repayment within four years from the date of commencement of repayment, unless the student re-enrolls prior to that time.

(9) A recipient of a loan may seek a deferment of the annual principal payments. A request for deferment must be made to the chief executive officer who shall make a determination on a case-by-case basis. The decision of the chief executive officer shall be final.

(10) In the event of death or permanent disability (as determined by a physician) of a recipient, any unpaid amount due the Authority shall be canceled upon appropriate written verification of the death or disability to the Authority.

(11) If a cash payment is not made within 30 days following the due date of that payment, the Authority may declare the entire amount due and payable subject to the recipients right to receive a notice of right to cure. If a default is declared the recipient shall be liable for the amount in default plus any accrued late fees and reasonable attorney's fees.

(12) If any monthly payment is not paid when due, the holder of the Note may collect a late charge of five cents ($0.05) for each dollar of such payment more than thirty (30) days in arrears.

B. Teacher and Student Pursuing Postbaccalaureate Teacher Certification Recipients

(1) Teachers and students pursuing postbaccalaureate teacher certification must begin repayment six months after graduation or completion of the course or courses for which the funds were loaned.

(2) Each recipient of a loan designated for teachers pursuing an advanced degree or continued study or for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan by completing two years of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school. Each recipient of a loan designated for teachers or for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan on a proportional basis reducing the debt by 50% for each complete year of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school.

(3) Each recipient of a loan designated for teachers pursuing an advanced degree or continued study or for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan by completing one year of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school, if such service is performed in an underserved subject area or in a geographically isolated area.

(4) Return service shall be performed within three years of graduation from the institution of higher education or completion of the course or courses for which the funds were given.

(5) Failure to fulfill the return service option will necessitate repayment to the Authority as follows:

a. The debt shall include the total amount of all Blaine House Scholars Program loans less the amount, if any, which has been canceled by return service.

b. The total debt shall be repaid to the Authority within three years of graduation or completion of the course or courses for which the funds were given on a schedule which specifies annual, semi-annual or monthly payments and indicates due dates. Exceptions due to extenuating circumstances may be granted on a case by case basis upon written request to the chief executive officer.

(6) Once a recipient has begun fulfilling the return service option by teaching in an underserved subject area or teaching in a geographically isolated area, the recipient shall be allowed to complete this option in the same subject area or geographic area even though the subject area or geographically isolated area is removed from the list of those designated.

(7) Recipients who fail to successfully complete the course or courses for which the funds were given will not be allowed to exercise the return service option and will begin repayment six months from the end of the semester of last attendance.

(8) A recipient of a loan may seek a deferment of the annual principal payments. A request for deferment must be made to the chief executive officer who shall make a determination on a case-by-case basis. The decision of the chief executive officer shall be final.

(9) In the event of death or permanent disability (as determined by a physician) of a recipient upon appropriate written verification of the death or disability to the Authority, any unpaid amount due the Authority shall be canceled.

(10) If a cash payment is not made within 30 days following the due date of that payment the Authority may declare the entire amount due and payable subject to the recipients right to receive a notice of right to cure. If a default is declared, the recipient shall be liable for the amount in default plus any accrued late fees and reasonable attorney's fees.

(11) If any monthly payment is not paid when due, the holder of the Note may collect a late charge of five cents ($0.05) for each dollar of such payment more than thirty (30) days in arrears.

9. Selection Criteria - Blaine House Scholars

Student recipients of loans are determined utilizing the following selection criteria:

A. Academic Standing (Graduating High School Seniors)

(1) Analysis of high school transcript.

(2) Analysis of standardized test scores.

(3) Analysis of required essay.

B. Academic Standing (Currently Enrolled Undergraduate College Students and Students Pursuing Postbaccalaureate Teacher Certification)

(1) Analysis of college transcript.

(2) Analysis of required essay.

C. Academic Awards/Achievements/Honors

D. Preference within each allocation is given to preservice students/students pursuing postbaccalaureate teacher certification enrolled in a program which has been determined to be an underserved subject area.

E. Preference within the allocation for students pursuing postbaccalaureate teacher certification shall be given to students who did not receive a Blaine House Scholarship as an undergraduate student.

10. Selection Criteria - Teachers

Teacher recipients of loans are determined utilizing the following selection criteria:

A. Preference is given to teachers of subjects which have been determined to be underserved.

B. Preference is given to teachers currently teaching in geographically isolated areas.

C. Geographical distribution is considered in the selection of loan recipients.

D. Teachers are selected based upon the direct relationship of the course work to the teacher's current or intended teaching duties or responsibilities.

E. Preference is given to teachers who did not receive a Blaine House Scholarship as a student.

11. Selection Process

A. Students (Other Than Students Pursuing Postbaccalaureate Teacher Certification)

(1) The Selection Committee will review application materials submitted in light of identified criteria.

(2) The Selection Committee shall be approved by the chief executive officer and shall be composed of at least 15 individuals for the consideration of the preservice applications and at least 10 individuals for the consideration of the non-preservice applications.

(3) Each application and accompanying materials shall be read by at least two committee members.

(4) Following reading by the committee, applications will be rank ordered and loans made within the limits of available funds.

(5) The number of college recipients and high school senior recipients in a given category is determined by a ratio of eligible applicants in each year.

(6) The Selection Committee will recommend to the chief executive officer the names of applicants who should be considered for designation as Blaine House Scholars.

(7) The Governor, after consultation with the chief executive officer, shall announce the names of those individuals who are recognized as Blaine House Scholars.

B. Teachers and Students Pursuing Postbaccalaureate Teacher Certification

(1) The Selection Committee shall review application materials submitted in light of identified criteria.

(2) The Selection Committee shall be composed of at least five individuals approved by the chief executive officer. A majority of the members shall be teachers.

(3) Each application and accompanying materials shall be read by at least two committee members.

(4) The Selection Committee will recommend to the chief executive officer the names of applicants who should be considered for receipt of a loan.

(5) The chief executive officer shall designate those who shall receive a loan.

(6) The number of teacher and students pursuing postbaccalaureate teacher certification recipients in a given category is determined by a ratio of eligible applicants in each year.

AUTHORITY: 10 MRSA §969-A(14), 20-A MRSA, Section 12501, et. seq.

EFFECTIVE DATE: November 4, 1990, original rule

AMENDED: April 17, 1991 (EMERGENCY)

November 24, 1991

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 604 Osteopathic Loan Program

Code Me. R. 94-457 Ch. 604 Osteopathic Loan Program {#sec-94-457-ch.-604 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 604}

SUMMARY: This rule establishes the procedures used in implementing the Osteopathic Loan Program, including eligibility criteria, application procedures, and the loan repayment process.

I. Definitions

A. Reference to Statutory Definitions. Certain terms used in this rule which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. §961 et seq., shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. Annual Report. “Annual report" means a report submitted annually by a loan recipient to the Authority on a form prepared by the Authority,, containing such information as the Authority deems necessary or appropriate for the effective administration of the program. Acceptance of a loan by a recipient constitutes the agreement of the recipient to submit such annual report.

2. Authority. "Authority" means the Finance Authority of Maine.

3. Chief Executive Officer. "Chief executive officer" means the chief executive officer of the Authority or any employee working under the supervisory control of the chief executive officer.

4. Conclusion of Professional Education. "Conclusion of professional education" means completion of graduate school, post-graduate programs, and/or obligated service.

5. First Time Applicant. "First Time Applicant" means an applicant receiving a loan for the first time. A person who, receives a loan after previously applying for and being denied a loan shall be a First Time Applicant.

6. Indebtedness. "Indebtedness" means the total amount of money borrowed by the loan recipient from the Osteopathic Loan Fund and any interest accrued thereon.

7. Notarized. "Notarized" means having appeared and made oath or affirmation as to the truth of the contents of any document or form submitted to the Authority pursuant to this rule, before a person authorized to administer oaths.

8. Obligated service. “Obligated service" means

a. An Armed Forces service obligation incurred in return for financial assistance provided during undergraduate and graduate education;

b. An obligation incurred for internship or residency training in the Armed Forces of the United States;

c. An obligation for compulsory national service required by an Act of Congress; or

d. An obligation to perform public health service.

9. Postgraduate programs. "Postgraduate programs" means continuing education in a classroom, laboratory, clinical or practice setting enhancing the applicant's professional capabilities including an internship in an accredited rotating internship, residency leading to board eligibility in a specialty, a preceptorship in an accredited nonhospital based postdoctoral program in which the preceptee works with a certified specialist in a clinic in a program leading to board eligibility in a specialty and fellowships leading to board eligibility in a specialty.

10. Repayment Period. "Repayment period" means the period of time following completion of professional education or upon withdrawal from school during which the student will repay either through return service or cash repayment the amount of money owed to the Authority.

11. Resident. "Resident" means a person who has resided in the State for a minimum of three years for other than education purposes.

12. Return Service. "Return Service" means service of a loan recipient which gives rise to forgiveness of any portion of the indebtedness.

13. Underserved Area. "Underserved Area" means an underserved geographic area, underserved specialty area, underserved population group or any combination of these in the State as designated by the Department or Agency of the State authorized to make such designation.

II. Loan Eligibility

A. The eligibility Of an applicant shall be determined by the chief executive officer after consultation with the executive committee of the Maine Osteopathic Association.

B. An applicant shall be eligible for a loan if the chief executive officer finds:

1. That the applicant is a resident of the State;

2. That the applicant is attending or has been admitted to and will attend at the commencement of the next semester following receipt of the loan, an osteopathic college or university accredited by the American Osteopathic Association;

3. That the applicant shows a genuine interest in practicing osteopathic medicine in the State.

4. That the applicant will be deterred by financial considerations from beginning or completing a course of study at an osteopathic college or university. A notarized certification by the applicant at the time of application that the applicant will be so deterred shall be sufficient for such finding.

III. Students Commencing Professional Education On or After July 1, 1981.

A. Application Deadlines and Requirements

1. First Time Applicants

a. A First Time Applicant shall return a completed application to the Maine Education Assistance Division of the Authority no later than May 15th annually.

b. A First Time Applicant shall submit verification that the applicant is a resident of the State to the Authority not later than June 15th annually. Such verification shall consist of:

1. Copies of the applicant’s tax returns for independent applicants or copies of the parents’ tax return for dependent applicants for the three applicable years; and

2. Copy of the applicant's current driver's license.

The Authority, in its discretion may require such other proof as it deems necessary to confirm the residence of the applicant.

c. A First Time Applicant shall submit an affidavit of independence, if applicable.

d. A First Time Applicant shall provide evidence that the applicant is or will be attending an osteopathic college or university.

2. Renewal Applicants

a. A renewal applicant shall return a completed application to the Maine Education Assistance Division of the Authority no later than May 15th annually.

b. A renewal applicant shall submit an affidavit of independence, if applicable.

c. A renewal applicant shall submit evidence that the applicant is or will be attending an osteopathic college or university.

B. Loan Awards

The Authority shall determine the recipients of awards in accordance with the following criteria:

1. The maximum loan amount will be $10, 000 in each year. The Authority, at the discretion of the chief executive officer may, based on the amount available to make loans in each year, determine the maximum loan amount for the year. Such maximum amount may be less than $10,000.

2. Renewal applicants submitting timely applications shall receive priority for any available loan funds.

3. In the event any loan funds remain available after all eligible Renewal Applicants have received the maximum amount available for the year, the Authority shall make loans to all eligible First Time Applicants by dividing the remaining amount of the loan fund to be distributed in that year by all eligible First Time Applicants and making a loan of an equal amount to each applicant.

C. Loan Fund Administration

1. In any year the Authority, in the discretion of the chief executive officer, may distribute all or any part of the Osteopathic Loan Fund to eligible applicants.

2. Each loan recipient shall sign a Promissory Note and Loan Agreement ("Note"), which shall contain such terms and conditions necessary to assure the repayment/forgiveness of the loan in accordance with law and this rule. The Note shall provide that the recipient must file an annual report. Failure to file such annual report in a timely manner shall be deemed a default of the Note.

D. Repayment

1. The amount due the Authority shall include simple annual interest at 9%. The accrual of interest shall commence on the same date as the beginning of the repayment period.

2. The repayment period shall commence three (3) months following the loan recipient's conclusion of professional education or upon the loan recipient's withdrawal from the Osteopathic College, Postgraduate Program or Obligated Service for any reason and shall continue until such time as the loan is paid in full by either repayment or return service or a combination thereof.

3. Payments shall be made over a payment period not to exceed ten (10) years. Provided, however, a recipient may apply to the chief executive officer for an extension of the payment period. In the discretion of the chief executive officer, an extension of the payment period of up to ten years may be granted. The decision of the chief executive officer shall be final.

4. In the event the recipient files a notarized annual report form indicating that the recipient is practicing in an underserved area, the Authority may advise the recipient that no payments are due during the time of such practice. Repayment shall be due the Authority unless the Authority receives and accepts the Practice Location and Date form.

E. Forgiveness

1. Loan recipients may reduce their indebtedness by 25% for each year of practice within an underserved area in the State during the repayment period.

2. In the event that a loan recipient repays a portion of the indebtedness in cash prior to the commencement of return service, each year of return service completed will reduce the existing balance of the indebtedness by 25% of the total outstanding indebtedness. In no event shall, the Authority be deemed to owe any amount to a loan recipient who commences return service after making any cash payment.

3. In the event that a loan recipient completes only a portion of a year of return service, such service shall be credited to the indebtedness and a pro rata cash payment will be due for the remaining amount of the payment due in that year.

4. Return service shall not be credited to the indebtedness of the loan recipient until the Authority's receipt of a properly notarized annual report indicating that the recipient has practiced in an underserved area for all or a portion of a year. The Authority may verify the contents of said form as it deems necessary or appropriate.

F. Default. If payment or a notarized annual report is not received within 60 days following the due date, the Authority may declare the full amount due and payable, including reasonable costs of collection and attorney's fees.

G. Deferment.

1. Deferments shall be considered under those circumstances permitted by applicable law. Such requests shall be made in writing to the chief executive officer, who shall consider each request on a case-by-case basis. The decision of the chief executive officer shall be final.

2. During the period of approved deferment, simple interest will accrue on the indebtedness at an annual rate of nine percent. At the conclusion of the deferment period, the indebtedness shall be repaid either through return service or by cash payments within the years remaining in the repayment period, provided however, that all interest accrued during any deferment shall be paid in cash.

IV. Students Commencing Professional Education On or After September 1, 1971, But Before July 1, 1981

A. Repayment

1. The amount due the Authority shall include interest at 6% compounded semi-annually. The accrual of interest shall commence on the same date as the beginning of the repayment period.

2. The repayment period shall commence one year following graduation from. or discontinuance of attendance at an osteopathic college.

3. Repayment: shall be completed within twelve years of graduation or withdrawal from a college of osteopathic medicine

B. Forgiveness

1. A loan recipient who returns to the State to establish a practice immediately following the completion of any internship, residency, obligated public health service or armed forces service may use the forgiveness option in lieu of repaying the loan in cash.

2. Loan recipients may reduce their indebtedness by $2,000 for each year of practice in Maine. If the amount of the indebtedness is greater than $2,000, then the years of service must be continuous.

3. Any loan recipient who practices in Maine for the necessary number of continuous years to pay off the total indebtedness through service, shall not be obligated to pay any accrued interest.

4. A loan recipient who commences a practice in accordance with subsection (1) of this section, but does not maintain the practice in Maine the requisite number of years to pay the full amount of the outstanding indebtedness, shall have the indebtedness reduced by $2,000 for each year of Maine practice, but shall pay the remaining outstanding principal and interest accrued thereon with the date of commencement of accrual being the date of commencement of the repayment period.

V. Appeal to the Members.

In the event that an application or request for deferment or extension is denied by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members. An appeal of the denial of an application shall not affect the processing of other applications. Notice of the appeal, together with a statement of the reasons why the chief executive officer's decision should be reversed or modified, must be given to the chief executive officer in writing within 20 days after the date the chief executive officer mailed the notice of denial to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the request. The decision of the chief executive officer shall be final unless the members determine that the denial by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

AUTHORITY: 20-A M.R.S.A. §12006; 10 M.R.S.A. §969-A(14)

EFFECTIVE DATE: April 22, 1991, original Rule.

This rule amends and supersedes former Chapters 145 and 146 of the Department of Educational and Cultural Services.

Chapter 145 as amended was effective June 9, 1980 and amended effective July 27, 1981. Chapter 145 set forth the repayment provisions for recipients of loans from the Osteopathic Loan Fund who commenced their osteopathic education on or after September 1971, but before July 1, 1981. These provisions, which remain in the current rule, include interest of 6% to accrue semiannually starting at the commencement of the loan recipient's education, the ability to cancel repayment by up to $2,000 annually by practicing in Maine, and a requirement that the entire amount be repaid within twelve years of completion of professional education and related requirements.

Chapter 146 was originally effective on July 27, 1981 and was amended by emergency rule effective July 22, 1986 and permanent rule amendment effective October 20, 1986.

The rules of the Department of Educational and Cultural Services were amended to reflect the change in administration from the Department of Education to the Finance Authority of Maine. The rules were combined and further amended to clarify loan application procedures, to set forth criteria and priorities for, the approval of loans, and to provide for an appeal to the members.

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 - minor spelling.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 605 The Robert C. Byrd Honors Scholarship Program

Code Me. R. 94-457 Ch. 605 The Robert C. Byrd Honors Scholarship Program {#sec-94-457-ch.-605 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 605}

Summary: Chapter 605 revises and supersedes former Chapter 152 of the Rules of the Department of Education and Cultural Services. The Chapter details the requirements and procedures used to implement the Robert C. Byrd Honors Scholarship Program in Maine.

1. Definitions

A. Authority. "Authority" means the Finance Authority of Maine.

A-1. Chief executive officer. "Chief executive officer" means the authority's Chief Executive Officer or any person acting under the supervision of the Chief Executive Officer.

B. Institution of higher education. "Institution of higher education" shall have the same meaning as that term has in 34 CFR §654.5(b) as amended from time to time.

C. Secondary school. "Secondary school" has the same meaning as that term has in 34 CFR §654.5, as amended from time to time.

D. Selection committee. "Selection committee" means a committee appointed by the authority to be composed of a minimum of six individuals representing school administrators, school boards, teachers, counselors and parents.

2. Initial Student Eligibility

A. The student must be a resident of Maine and a graduating high school senior in a public or private secondary school or have received the equivalent of a certificate of graduation as recognized by the State of Maine in the calendar year of the scholarship award. Maine State residents who attend out-of-state secondary schools are eligible to participate in this program.

B. The student must provide written evidence of having been admitted for enrollment at an institution of higher education on a full time basis.

C. The student must show evidence of outstanding academic achievement and promise of continued academic achievement.

D. The student must certify that the student is a United States citizen or national or provide evidence from the United States Immigration and Naturalization Service that the student (A) is a permanent resident of the United States; or (B) is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident.

E. The student must certify that the student is not ineligible to receive assistance as a result of default on a Federal student loan or other obligation.

3. Selection Criteria

A. Analysis of applicant's secondary school transcript.

B. Analysis of applicant's SAT scores.

C. Analysis of applicant's academic achievements, honors and awards.

D. Applicant's class standing.

E. Evaluation of applicant's essay.

4. Selection Process

A. Selection Committee will review materials submitted in the application process in light of identified criteria.

B. Each application and accompanying information shall be reviewed and evaluated by two Selection Committee members.

C. The Selection Committee will recommend to the Chief Executive Officer the highest ranking applicants who should be considered as recipients of Byrd Scholarships.

D. The number of applicants selected as recipients of Robert C. Byrd Honors Scholarships will be determined by the amount of funds available and will be first distributed to recipients eligible for renewal of an award, then to the highest ranking applicant in each of the State's counties, and following that to the next highest ranking applicants overall.

5. Application Material

In order to complete the application process each applicant shall submit to the Authority no later than May 1 the following:

A. An application on the form prepared by the Authority.

B. Copy of the applicant's secondary school transcript.

C. Copy of SAT scores if not included on the student's transcript.

D. List of academic achievements, honors, and awards.

E. Written essay (200 words or less) indicating applicant's educational and professional goals.

In addition, each student shall have filed the FAFSA by May 1, annually.

6. Payment Procedures

A. Each applicant designated as a recipient of a Byrd Scholarship will receive an award letter from the chief executive officer of the Authority prior to the end of the academic year of the high school from which the recipient is graduating.

B. Each recipient must provide a letter of acceptance from an institution of higher education and a Statement of Selective Service Registration Status.

C. Except as provided in subsection E. below, upon verification of attendance from officials of the higher education institution payment in the amount of $1500 will be made to the institution's Office of Student Financial Aid on account of the recipient student.

D. Any Robert C. Byrd Honors Scholarship grant awarded shall not be included in any needs test in connection with the awarding of any grant or the making of any loan under Title IV of the Higher Education Act or any other provision of federal law relating to educational financial assistance.

E. An award must be reduced so that the total amount of federal financial aid including the award does not exceed the total cost of attendance as determined by the institution of higher education the grant recipient is attending. Loans should be reduced before the Byrd scholarship award. The Byrd Scholarship award should be reduced before a Pell grant.

F. If after disbursing an award the Authority determines that a recipient was ineligible to receive the award, the recipient must repay to the Authority the full amount of the award received during the period the recipient was ineligible.

7. Student Eligibility - Renewal

All students who receive an award are eligible to receive up to three additional awards, if they meet the following criteria:

A. All initial eligibility criteria identified in Section 2 of this Rule.

B. All recipients must be making satisfactory academic progress as determined by the postsecondary institution of higher education the recipient attends. Any recipient who is not making satisfactory academic progress will not receive an award, but may regain eligibility for an award by regaining the status of making satisfactory academic progress within twelve (12) months. Any recipient who fails to maintain satisfactory academic progress for any combination of time which is greater than twelve (12) months is ineligible for continued participation in the Program, provided however that in extraordinary circumstances the Chief Executive Officer may extend the twelve (12) month suspension period without terminating the recipient's eligibility.

C. All recipients must be full-time students, provided however that the Chief Executive Officer may waive this requirement for recipients who have completed their first year of study in extraordinary circumstances including:

(1) Medical reasons certified in writing by a physician;

(2) Extraordinary financial circumstances resulting from: (a) death of a parent, verified by a death certificate; (b) loss of earnings due to disability, certified in writing by a physician; (c) loss of earnings due to a natural disaster; (d) inability of the recipient (if independent) or one of the recipient's parents (if dependent) to earn his or her income in the usual way for at least 10 weeks, verified in writing satisfactory to the Chief Executive Officer; (e) long-term illness and/or disability of a recipient, certified in writing by a physician; (f) separation or divorce of the recipient if independent or of the recipient's parents if dependent.

8. Postponement or Interruption of Enrollment

A. The Authority may allow an award recipient to postpone or interrupt the recipient's enrollment at an institution of higher education for a period of up to twelve (12) months without forfeiting the award, for any one of the following reasons:

(1) Medical reasons certified by a physician;

(2) Death of a parent, verified by a death certificate;

(3) Extraordinary financial circumstances as set forth in section 7(C)(2).

(4) Such other extraordinary circumstances as may be approved by the Chief Executive Officer.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §969-A and 20-A MRSA §15401 (State); 20 USC 1070d-31 et seq.; 34 CFR 654 et seq. (Federal)
• EFFECTIVE DATE: July 21, 1992 – filing 92-291, replaces 05-071 Ch. 152
• AMENDED: October 11, 1994, filing 94-411
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: January 23, 2007 – Amendment 2, filing 2007-12
• AMENDED: 94-457 Chapter 605 page 4

Chapter 606 The Paul Douglas Teacher Scholarship Program (formerly Congressional Teacher Scholarship Program)

Code Me. R. 94-457 Ch. 606 The Paul Douglas Teacher Scholarship Program (formerly Congressional Teacher Scholarship Program) {#sec-94-457-ch.-606 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 606}

SUMMARY: Chapter 606 revises and supersedes Chapter 153 of the rules of the Department of Education. The rule details the eligibility and application requirements and procedures for the conduct of the Paul Douglas Teacher Scholarship Program.

1. Definitions

A. All terms not otherwise defined shall have the meaning ascribed to them in 34 CFR Part 653 as amended from time to time.

B. Authority. “Authority” means the Finance Authority of Maine.

C. Chief executive officer. "Chief executive officer” means the chief executive officer of the authority or any employee acting under the supervisory control of the chief executive officer.

D. Eligible institution. “Eligible institution” has the same meaning as that term has in 34 CFR §600.4.

2. Student Eligibility

A. Graduating High School Seniors

(1) The application must be received by the authority no later than May 1.

(2) The applicant must be graduating from high school and a resident of Maine.

(3) The applicant must rank in the top ten percent of the applicant's graduating class or have GED test scores recognized by the State to be equivalent to ranking in the top ten percent of the high school graduates in the State or nationally in the academic year for which the eligibility determination is being made.

(4) The applicant must become enrolled as a full time student in an accredited postsecondary institution.

(5) The applicant must be pursuing a course of study leading to teacher certification.

(6) The applicant must be a United States citizen or National or must be able to provide evidence from the U.S. Immigration and Naturalization Services that the applicant is a permanent resident of the United States or is in the United States for other than temporary purposes with the intention of becoming a citizen or permanent resident.

(7) The applicant must be a resident of the State of Maine for other than school purposes.

B. Currently Enrolled Postsecondary Students

(1) The application must be received by the authority no later than May 1.

(2) The applicant must have ranked in the top ten percent of the applicant's graduating high school class or had GED test scores recognized by the State to be equivalent to ranking in the top ten percent of high graduates in the State or nationally during the academic year in which the applicant graduated.

(3) The applicant must have a minimum cumulative grade point average (GPA) of 3.0 on a 4.0 scale or its equivalent at the eligible institution at which the applicant is enrolled.

(4) The applicant must be enrolled as a full time student at an eligible institution.

(5) The applicant must be pursuing a course of study leading to teacher certification.

(6) The applicant must be a United States citizen or National or must be able to provide evidence from the U.S. Immigration and Naturalization that the applicant is a permanent resident of the United States for other than temporary purposes with the intention of becoming a citizen or permanent resident.

(7) The applicant must have graduated from a Maine high school or must be a resident of the State of Maine for other than school purposes at the time of application.

3. Selection Criteria

A. Graduating High School Seniors

(1) Analysis of secondary school transcript.

(2) Analysis of class standing, grade point average and SAT scores.

(3) Analysis of academic achievements and awards.

(4) Evaluation of essay on reasons for entering the teaching profession.

(5) Consideration given to preparation for teaching in a subject area in which there is a shortage of teachers.

B. Currently Enrolled Postsecondary Students

(1) Analysis of postsecondary transcript and grade point average.

(2) Analysis of academic achievements at the postsecondary institution (example: Dean's List).

(3) Evaluation of essay on reasons for entering the teaching profession.

(4) Consideration given to preparation for teaching in a subject area in which there is a shortage of teachers.

4. Selection Process

A. Each application and accompanying information shall be reviewed and evaluated by at least two individuals who will be staff members of the authority or representatives of school administrators, teachers and parents. All applications will be reviewed in light of identified criteria.

B. Following review and evaluation by the FAME staff members, applications will be rank ordered in two groups identified as Graduating High School Seniors and Currently Enrolled College Students and awards will be made by the selection committee within the limit of available funds.

C. The Maine Education Assistance Board will serve as the Selection Committee.

5. Application Material

In order to complete the application process each applicant shall submit the following:

A. Graduating High School Seniors

(1) An application form provided by the authority which includes the signature of a secondary school official indicating the applicant's graduation in the top ten percent of the class.

(2) Copy of secondary school transcript.

(3) Copy of SAT scores, if not included on the transcript.

(4) List of academic achievements and awards.

(5) List of extracurricular activities pertinent to teaching.

(6) Copy of GED test scores if applicable.

(7) Essay on interest in the teaching profession.

B. Currently Enrolled Postsecondary Students

(1) An application form provided by the authority which includes the signature of a secondary school official indicating the applicant's graduation in top ten percent of the class.

(2) Copy of postsecondary school transcript.

(3) List of academic achievements at the postsecondary institution if not included on the school transcript.

(4) Copy of GED test scores if applicable.

(5) Essay on interest in the teaching profession.

6. Payment Procedures

A. Checks will be made co-payable to the recipient and the postsecondary institution and will be mailed to the institution upon verification of the recipient's full-time attendance.

B. Loans will be disbursed in two semester payments.

C. Recipients shall receive a $5000 loan for each academic year of undergraduate study in preparation to become a preschool, elementary or secondary teacher.

D. Funds awarded under this program shall be considered in determining eligibility for student assistance under Title IV of the Higher Education Act.

E. Funds awarded recipients under this program in any given year when added to assistance received under Title IV of the Higher Education Act shall not exceed the cost of attendance at the eligible institution the recipient is attending. If the amount of assistance received under this program and assistance received under other Title IV programs exceeds the cost of attendance, the award under the Paul Douglas Teacher Scholarship Program shall be reduced by an amount equal to the amount by which the combined awards exceed the cost of attendance.

F. No individual shall receive an award under this program in any academic year which shall exceed the cost of attendance at the institution the individual is attending.

G. Acceptance of an initial award or renewal of an existing award may be deferred for one academic year only. If the recipient refuses an award for a second academic year, the award is considered to be forfeited and the funds are returned to the program to be distributed to other qualified applicants.

7. Renewal Provisions

A. Recipients of financial assistance under this program may continue to receive such assistance for not more than four (4) years of undergraduate education.

B. Recipients of financial assistance under this program shall continue to receive payments only during such periods as the recipient is:

1. Enrolled as a full-time student in a postsecondary institution that is currently accredited by a nationally recognized accrediting agency or association;

2. Pursuing a course of study leading to certification as a teacher at the preschool, elementary school or secondary school level, as determined by the state in which the eligible institution the student is attending is located; such a course of study may not include graduate study that is not required for initial teacher certification;

3. Maintaining satisfactory progress as determined by the postsecondary institution the student is attending;

4. Providing evidence to the authority from the Registrar that the requirements of 1, 2, and 3 have been met, and

5. Maintaining State of Maine residency.

6. Repayment Provisions

A. Each recipient must sign an Agreement with the authority which will detail repayment obligations.

B. Repayment obligations either through return service or cash payments must be completed within a ten year period after completing the postsecondary education program for which the loans were awarded.

C. Each recipient may utilize a return service/forgiveness option by teaching full-time for a period of two years for each year for which the loan was received, providing such teaching is in a public or private nonprofit preschool, elementary school or secondary school in any state or private nonprofit education program in any state. The requirement to teach two years for each year of scholarship assistance is reduced by one-half in the case of individuals who teach full-time in a teacher shortage area as designated by the United States Secretary of Education.

D. A recipient shall not be considered to be in violation of the provisions of the repayment Agreement with the authority if the recipient:

1. Returns to a full-time course of study related to the field of teaching at an eligible institution

2. Is serving not in excess of three years as a member of the armed forces of the United States;

3. Is temporarily totally disabled for a period of time not to exceed three years as established by a sworn affidavit of a qualified physician;

4. Is unable to secure employment for a period not to exceed twelve months by reason of the care required by a spouse who is disabled;

5. Is seeking and unable to find full-time employment for a single period not to exceed twelve months;

6. Is seeking and unable to find full-time employment as a teacher in a public or private nonprofit preschool, elementary or secondary school or a public or private non-profit education program for a single period not to exceed 27 months.

During the time a recipient qualifies for any of these exceptions, the recipient is not required to make scholarship repayments and interest does not accrue.

A recipient seeking an exception under items 1 through 6 must notify the authority in writing when the above conditions are applicable and provide supporting documentation satisfactory to the authority.

E. If the authority finds that the recipient is not in compliance with the terms of the Agreement or is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary or secondary level, the recipient shall:

(1) Repay the amount of the scholarship received prorated according to the fraction of the teaching obligation not completed as determined by the authority;

(2) Pay a single per annum interest charge on the outstanding principal; and

(3) Pay all reasonable collection costs as determined by the authority;

F. The interest charge accrues from the date of the initial scholarship payment if the recipient has ceased to pursue a course of study leading to certification as a teacher at the preschool, elementary or secondary level or the day after that portion of the scholarship period for which the teaching obligation has been fulfilled.

G. The interest charge shall not be at a rate higher than the rate applicable to loans made in the applicable period under Title IV, Part B of the Higher Education Amendments of 1986.

H. The recipient shall enter repayment status on the first day of the calendar month after the authority has determined that the recipient has ceased to pursue a course of study leading to certification as a teacher at the preschool, elementary or secondary level, but not before 6 months have elapsed after cessation of the scholar's full-time enrollment in such a course of study, or the date the recipient informs the authority the recipient does not plan to fulfill the teaching obligation, or the latest date on which the recipient must have begun teaching in order to have completed the teaching obligation within ten years after completing the postsecondary education for which the loan was awarded, as determined by the authority.

I. The recipient shall make monthly or quarterly payments to the authority which cover principal, interest, and collection costs according to a schedule established by the authority, which calls for complete repayment within ten years after the recipient enters repayment status (except as provided in item L), and which amounts annually to no less than $1200 or the unpaid balance, whichever is less, unless the recipient's inability to pay this amount because of the recipient's financial condition has been established to the chief executive officer's satisfaction. If a cash payment is not made within 90 days following the payment date set by the authority, it may declare the entire amount due and payable subject to the right to receive a notice of right to cure.

J. The authority shall not require loan repayments amounting to more than $1200 annually unless higher payments are needed to complete the entire repayment within the ten year period described in item I.

K. The authority shall capitalize any accrued interest at the time it establishes a recipient's repayment schedule.

L. The authority shall extend the ten year scholarship repayment period by a period equal to the length of time a recipient meets any of the conditions in item D and the authority may also extend the repayment period if the recipient is unable to complete the repayment within the ten year period because of the recipient's financial condition as documented to the satisfaction of the chief executive officer.

M. The authority shall cancel a recipient's repayment obligation if it determines:

1. On the basis of a sworn affidavit of a qualified physician, that the recipient is unable to teach on a full-time basis because of an impairment that is expected to continue indefinitely or result in death; or

2. On the basis of a death certificate or other evidence of death that is conclusive under State law, that the recipient has died.

N. The recipient may appeal any determination of noncompliance with the law or regulations governing the implementation of this program by pursuing an appeal process as follows:

1. The applicant must notify the chief executive officer within thirty (30) days of date of the determination of noncompliance of the applicant's intent to seek an appeal of the decision.

2. The appeal will be heard at a regularly scheduled meeting of the members of the authority, at the earliest date such an appeal can reasonably be scheduled. The applicant must be notified of the date and time of the appeal and must be present to support the appeal.

AUTHORITY: State Authority: 10 MRSA §939-A

20-A MRSA §15401

Federal Authority 20 USC 1111

34 CFR 653

EFFECTIVE DATE: July 21, 1992, original rule (FAME).

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 607 Access to Medical Education and Health Professions Loan Program

Code Me. R. 94-457 Ch. 607 ACCESS TO MEDICAL EDUCATION AND HEALTH PROFESSIONS LOAN PROGRAMS, Amendment 10 {#sec-94-457-ch.-607 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 607}

Summary: This rule establishes the criteria to be met by students of medicine in obtaining a position at medical schools pursuant to a contract between the Authority and the medical school and the criteria necessary to obtain loans to defray the costs of medical education. The provisions of this rule related to the Health Professions Loan Program loans are applicable to borrowers who obtained their first Program loans prior to January 1, 2011. See Chapter 617 for criteria applicable to Health Professions Loan Program loans for other students.

I. DEFINITIONS

A. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act , 10 M.R.S.A. §961 and following and in 20-A M.R.S.A. Chapter 424 shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. "Annual report" means a report provided annually by the Authority to the loan recipient, requiring the loan recipient to provide a current address and status of the loan recipient's professional education, training or practice and such other information the Authority deems useful or necessary for the efficient administration of the Program.

2. "Chief executive officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer.

3. "Clinical education" means any on-location teaching environment ranging from a one-to-one training between a physician, or as to students of veterinary medicine a veterinarian, and a medical student to a training in a health clinic or hospital with or without a residency program.

4. "Contract student" means a person who obtained a position in an institution pursuant to an agreement between the Authority and the institution.

5. "Completion of professional education" means completion of medical school, post-graduate medical training and obligated public health service, and/or obligated national service.

6. "Entire family practice residency program in the State" means any family practice residency in the State approved by the Liaison Committee on Medical Education, American Medical Association - Association of American Medical Colleges or any general practice residency approved by the Bureau of Professional Education of the American Osteopathic Association and also includes: (a) a residency composed of a combination of those; or (b) an approved family practice or general practice residency in the State which accepts a one year internship as meeting part of the requirement of the residency.

7. "Family contribution" means the aggregate of the student and family contribution. In the event an institution uses any methodology other than federal methodology to determine family contribution, the institution shall provide the Authority an explanation of how it calculates family contribution.

7A. ”Federal methodology” means the process used by the United States Department of Education to determine a student’s financial need.

8. "Forgiveness" means the satisfaction of all or a portion of the loan obligation by the loan recipient through an eligible practice as set forth in section III.E.3, section IV.D. or section V.C.

9. "Health professional shortage area" means an area in the State lacking in medical professionals as designated by the Commissioner of Health and Human Services.

10. "Indebtedness" shall be equal to (1) the tuition differential, plus any interest accrued thereon and (2) any amount borrowed as a direct loan for medical education, plus any interest accrued thereon.

11. "Institution" means an institution of allopathic or osteopathic medical education. For students commencing medical education prior to January 1, 1993, institution includes any institution of medical education that has had a contract to provide access to medical education for Maine students with the Authority or any agency which administrated the Post Graduate Health Professions Program prior to the Authority.

12. "Insufficient veterinary services" means an insufficient number of practitioners of veterinary medicine in either a veterinary specialty or a geographic area, as determined by the Commissioner of Agriculture, Conservation and Forestry.

12A. “Large animal(s)”, as that term is used in Section II (A)(2), Section II (B) (2), Section II (C) (1), and Section III (B), means cattle, oxen, horses, pigs, sheep, goats, llamas, alpacas, bison raised for food, and/or domesticated deer and/or elk, and may also include other animals, upon request, in the Authority’s sole discretion.

13. "Loan recipient" means any student who incurs indebtedness evidenced by a Note and Loan Agreement requiring the amount of money borrowed to be repaid either through cash installment payments or through forgiveness.

14. "Maine resident" means a person who has been a resident of the State for a minimum of one year at the time of matriculation at medical school for other than educational purposes. In determining whether an applicant is a Maine resident the Authority may consider (1) the secondary school the applicant attended; (2) the legal residence of the applicant's parents, if the applicant is dependent; (3) the location where the applicant is registered to vote, if any; (4) the jurisdiction(s) in which the applicant files income tax forms; (5) the jurisdiction where the applicant is licensed to drive, if any; (6) such other relevant documents and information as determined necessary or convenient in the opinion of the chief executive officer.

15. "Nonresident tuition" means tuition charged to persons who do not reside in the state where the institution is located. If no distinction is made between the tuition charged residents and nonresident students at the institution, then nonresident tuition means the tuition charged all students.

16. "Obligated national service" means an obligation incurred for financial assistance during undergraduate or graduate education, for internship or residency training provided by the Armed Forces Services of the United States, or for compulsory national service required by an Act of Congress.

17. "Postgraduate medical training" includes internships, residencies, and fellowships that fulfill the requirements for certifications/licensure by the corresponding Council/Board on Graduate Education of Allopathic Medicine, Osteopathic Medicine or Dentistry in the specialty. Postgraduate medical training for Optometric students includes postdoctoral residencies and fellowships affiliated with and administered by a professional Optometry school. Postgraduate medical training for veterinary graduates includes one-year internships with a practicing veterinarian and/or internships, residencies, and fellowships that prepare the practitioners for certification(s) by the corresponding Council Board of veterinary medicine in the specialty.

18. "Primary health care" means general or family practice of medicine, general internal medicine, general pediatrics, general dentistry and obstetrics and gynecology.

19. "Repayment period" means the period of time following completion of professional education or upon withdrawal from school, post-graduate training, and obligated national service required by an Act of Congress, commencing six (6) months after completion of professional education and continuing ten (10) years.

20. "Return service" means employment in a practice that qualifies the loan recipient for forgiveness of any portion of the indebtedness.

21. "Tuition differential" means the difference between the nonresident tuition at the institution being attended by the contract student and the tuition charged the contract student for each year of attendance as a contract student.

22. "Underserved group" means an underserved population group in the State receiving insufficient primary health care or dental services as determined by the Commissioner of Health and Human Services. Such a designation may be limited to a geographic area of the State or to a specific practice location in the discretion of the Commissioner of Health and Human Services.

23. "Underserved specialty" means a medical specialty in which there are insufficient practitioners either throughout the State or within a designated geographic area of the State, which may be a specific practice location, as determined by the Commissioner of Health and Human Services.

II. ACCESS TO MEDICAL EDUCATION PROGRAM

A. Contracts with Institutions

1. Prior to January 1, 2010, the Authority may enter into a contract with one or more institutions to secure positions for students of allopathic or osteopathic medicine. Prior to January 1, 2011, the Authority may enter into a contract with an institution to secure positions for students of veterinary medicine.

2. Each contract shall require contract students at the institution to complete clinical education in rural areas and health professional shortage areas of the State or, with respect to students of veterinary medicine, to complete clinical education in an area of the State with insufficient veterinary services relating to large animals, all upon such terms and conditions as may be agreed. Each contract shall further require the institution to provide the Authority annually a list of the clinical education completed in the preceding year by each contract student attending that institution.

3. Each contract may require the institution to improve opportunities for clinical education in rural areas, health professional shortage areas and areas of the State with insufficient veterinary services relating to large animals.

4. Each contract may require the institution to allow the Authority or a representative of the Authority to participate in the admission of applicants to the Access to Medical Education Program.

5. Each contract may require the institution to assist the Authority in determining the financial need of applicants participating in the Health Professions Loan Program.

6. Each contract will provide that payments will be made for each student for a maximum of four years.

B. Eligibility

1. Maine residents who have been accepted to an institution with which the Authority has a contract are eligible.

2. All applicants must show evidence of a desire to practice primary health care in the State, or to practice in a health professional shortage area, or as to applicants for veterinary medicine positions, to practice veterinary medicine, specializing in large animal medicine, in an area of the State with insufficient veterinary services.

3. Applicants must commence their professional education on or after January 1, 1993 and prior to January 1, 2010, except as to applicants for available veterinary medicine positions, who must commence their professional education on or after January 1, 1999 and prior to January 1, 2011.

C. Requirements

1. For allopathic or osteopathic medical students, each contract student selected to participate in the program must sign a written Agreement with the Authority whereby the student agrees to complete a minimum of two primary care, clinical education rotations in Maine. One rotation must occur at a Maine primary care residency program, and consist of not less than 50% outpatient care. The other rotation must occur in either a health professional shortage area or an ambulatory site defined as rural by the Authority. No ambulatory site rotations shall occur prior to completion of a student's core curriculum. For veterinary medical students, the student must sign an Agreement with the Authority that must provide that the student agrees to complete clinical education in an area of the State with insufficient veterinary services relating to large animals.

2. If any portion of the amounts expended by the Authority to secure positions at an institution are used to reduce the tuition paid by the contract student, the contract student must sign an agreement with the Authority to repay such amounts on such terms and conditions as are set forth in section III.E.3 hereof.

3. The Agreement signed by a contract student may require or encourage the student to participate in presentations at one or more high schools in the state concerning careers in the veterinary or health profession, and such other terms and conditions as the Authority deems necessary to fulfill the policy objectives of the program.

III. HEALTH PROFESSIONS LOAN PROGRAM

A. Eligibility. To receive a loan an applicant must:

1. Be a Maine resident.

2. Provide all financial aid information requested by the Authority prior to any deadline established by the Authority and evidence financial need for a loan.

3. Be admitted to a program of allopathic, osteopathic, optometric, veterinary medicine or dentistry at an institution of medical education that has been accredited by the appropriate accreditation agency.

4. Loans may not be used as a substitute for:

a. Subsidized Federal Stafford loans;

b. Federal Perkins loans;

c. Financial aid from funds of an institution;

d. Any other financial aid available from the loan applicant's undergraduate college or university or any professional medical associations;

e. Loans made pursuant to Title VII of the Federal Public Health Service Act , excluding Health Education Assistance Loans;

f. Notwithstanding the foregoing, a financial aid officer from an institution may request that loans from the Authority pursuant to this Rule substitute for any of the financial aid listed if such substitution will be in the best interests of the applicant. Such requests may be granted in the discretion of the chief executive officer. The chief executive officer's decision on such request shall be final.

5. Have obtained a first Program loan prior to January 1, 2011. The loans described herein shall not be available to students occupying positions at schools of allopathic and osteopathic medicine after the 2012-2013 academic year or to any other students after the 2013-2014 academic year.

B. Priority for loans. Awards of loans shall be made according to the following order of priority with loan applications within each priority further prioritized to provide loans to applicants exhibiting the greatest financial need and an intent to practice primary health care, general optometry or large animal veterinary medicine.

1. First priority for loans is for students enrolled in the Access program who are seeking loan renewal and who continue to demonstrate financial need.

2. Second priority for loans is for students of allopathic or osteopathic medicine not enrolled in the Access Program who wish to renew loans and continue to demonstrate financial need.

3. Third priority is for students studying dentistry, optometry, or veterinary medicine.

C. The Authority will determine financial need as follows:

1. For applicants who are under 30 or who have not been independent for financial aid purposes for at least five years, in accordance with the following formula:

Student's Financial Need = Student's Cost of Attendance –

Family Contribution - Other Financial Aid identified in Section III.A.4

2. For applicants who are 30 or older or who have been independent for financial aid purposes for at least five years, in accordance with federal methodology.

D. In no event may a student receive loan funds which when combined with other financial assistance, will exceed the student's cost of attendance at the institution.

E. Agreement Requirements. Each loan recipient must sign an agreement with the Authority including at a minimum each of the following provisions:

1. The loan recipient must provide the annual report to the Authority on forms supplied annually on or before the date indicated by the Authority as the due date.

2. Until the loan is satisfied, the loan recipient must report any change of address to the Authority within four weeks of any address change.

3. Repayment/Forgiveness

a. Upon compliance with all necessary procedures, the following practitioners will be forgiven the greater of 25% of their original outstanding indebtedness under this program or up to $7,500 for each full year of practice during the repayment period:

(1) Primary health care physicians and general dentists practicing in a designated health professional shortage area; except that primary health care physicians and general dentists practicing in the State, but not in a designated health professional shortage area, will be forgiven the greater of 12.5% of their original outstanding indebtedness under this program or up to $3,750 for each full year of practice during the repayment period;

(2) Any physician practicing in an underserved specialty;

(3) Any physician providing services to a designated underserved group;

(4) Veterinarians providing services to Maine residents with insufficient veterinary services.

b. Upon compliance with all necessary procedures, any loan recipient completing a primary health care residency program in the State will be forgiven 50% of the original indebtedness for each year of primary health care practice in a designated health professional shortage area, or as a physician providing services to an underserved group or 25% of the original outstanding indebtedness for each year of primary health care practice in the State not in a designated health professional shortage area or providing services to an underserved group.

c. The repayment period will begin six (6) months following completion of professional education, or upon withdrawal from school for whatever reason. The loan recipient is responsible for notifying the Authority of such completion of professional education or withdrawal from school.

d. Payments must be made in monthly installments on a repayment schedule established by the Authority.

e. Interest will begin to accrue at the beginning of the repayment period. The first monthly installment will be due one month following the date determined as the beginning of the repayment period.

f. Loan recipients may receive partial loan forgiveness on a pro rata basis if they fulfill all the criteria but maintain the appropriate practice for less than a full calendar year. The accrual of interest will commence one month after the cessation of a practice situation allowing for forgiveness of a loan. Cash payments will be due four months after the cessation of a practice situation allowing for forgiveness of the loan.

g. (Repealed effective May 5, 1996)

h. Loan recipients who practice in a situation which does not qualify them to receive forgiveness of their loan and later establish a practice which qualifies them to receive forgiveness during the ten (10) year repayment period may reduce the balance due through return service. Any monies due and payable for the time spent in the practice ineligible for forgiveness must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the remaining balance including accrued interest by the greater of $7,500 or 25% of the total original indebtedness.

i. The Authority may, in the discretion of the chief executive officer, refuse to credit all or any part of forgiveness of any loan if the loan recipient fails to return the annual report or any information requested by the Department of Health and Human Services by the due date which shall be no less than 30 days after the mailing of the annual report by the Authority.

j. The Department of Health and Human Services, Office of Rural Health and Primary Care or any agency or bureau succeeding to its responsibilities may require a loan recipient requesting loan forgiveness or an interest rate benefit, excluding veterinarians, to report annually the level of service provided by the loan recipient to Medicaid and Medicare patients and in public health clinics. If the Office of Rural Health and Primary Care determines that such level of service provided was not reasonable, the Authority may refuse to grant any loan forgiveness or interest rate benefit for the period of the loan.

4. Default. If a payment is not made within 30 days following the due date the Authority may declare the loan in default and give the loan recipient 30 days to cure the default. If the loan recipient fails to cure the default after 30 days notice, the Authority may declare the entire amount due and payable including attorney's fees.

5. Deferment

a. Deferments during the repayment period may be granted by the chief executive officer. A written request must be made to the chief executive officer requesting a deferment by a student. The request must state the justification for the deferment and must include all supporting documentation. Deferments will be decided on a case by case basis. The decision of the chief executive officer shall be final. Deferments may be granted for each of the following reasons:

(1) The temporary disability of the borrower;

(2) The student's temporary inability to meet the requirements necessary to obtain forgiveness of the loan, if the student evidences the intent to pursue one of the forgiveness provisions;

(3) The demonstration of the student that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;

(4) Such other reasons as the chief executive officer may approve.

b. A deferment will not ordinarily be granted for a period greater than one year. However, upon request of the student, the chief executive officer may renew any deferment on a case-by-case basis.

c. During the period of an approved deferment, simple interest will be assessed at the same rate set forth in the promissory note executed by the loan recipient. At the conclusion of the deferment period the total outstanding balance including principal and interest shall be repaid either through return service or cash payments within the years remaining in the ten (10) year repayment period.

6. Loan Term. Loans must be repaid over a term no greater than ten years. The term may be extended upon a finding by the chief executive officer that such an extension is necessary to assure the repayment of the loan.

7. Maximum Loan Amount

a. Loans to loan recipients participating in the Access to Medical Education program may not exceed $25,000. Notwithstanding the financial need of the students, the Authority may, in the discretion of the chief executive officer, provide loans of a lesser amount based on demand for loans, the actual funds available, and such other factors as the chief executive officer deems to be material.

b. Loans to all other loan recipients, including contract students who have entered into an Agreement with the Authority pursuant to 20-A M.R.S.A. §11804-A may not exceed the lesser of $10,000 or 60% of the student's tuition annually.

c. For the purposes of determining terms of repayment and forgiveness, all loans made under this section III shall be combined.

8. Interest Rate

a. ( Repealed effective May 5, 1996)

b. ( Repealed effective May 5, 1996)

c. Any loan recipient who maintains a practice in the State, but who does not devote 75% or more of the practice to the provision of primary care and is not eligible for forgiveness pursuant to section III.E.3 shall owe the Authority interest at the rate of the then current rate applicable to the federal Stafford loan program or any successor thereto minus 1.5% per annum computed as simple annual interest and fixed at the time the loan recipient signs the initial note, which rate will be applicable to all renewal notes.

d. Any loan recipient who does not maintain a practice in the State shall owe the Authority interest at the rate of the then current rate applicable to the federal Stafford loan program or any successor thereto plus 1.5% per annum computed as simple annual interest and fixed at the time the loan recipient signs the initial note, which rate will be applicable to all renewal notes.

e. No interest shall accrue on the loan recipient's indebtedness while the loan recipient maintains a practice which entitles the loan recipient to receive forgiveness pursuant to section III.E.3.a or b.

F. Notwithstanding anything herein to the contrary, loan recipients who withdrew from professional education or who no longer reside in Maine are not required to provide annual reports to the Authority.

G. Loan recipients may receive partial loan forgiveness on a pro rata basis for eligible employment of at least 20 hours per week.

H. Death or Permanent Disability. On the death of a loan recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.

IV. PROVISIONS AFFECTING STUDENTS WHO COMMENCE PROFESSIONAL EDUCATION ON OR AFTER JULY 1, 1981 AND PRIOR TO JANUARY 1, 1993

A. General Provisions

1. The contract student shall sign a written Agreement, and Promissory Note and Disclosure Statement through which the student agrees to conditions for repayment of indebtedness as a participant in the Postgraduate Health Professions Program.

2. The contract student upon completion of professional education or upon withdrawal from school for whatever reason shall enter the repayment period.

3. Any contract student commencing professional education on or after July 1, 1981 shall repay the State the tuition differential for each year of attendance as a contract student if the student's obligation has not been fulfilled under the forgiveness provisions.

4. Each student, except those who withdrew from professional education or no longer reside in Maine, shall return an annual report to the Authority no later than the date set forth by the Authority.

5. The student will report any change of address when such occurs to the Authority.

B. Repayment

1. The amount due the State shall include interest at 9% on a simple annual basis. Interest will be assessed starting on the date which marks the beginning of the repayment period.

2. Within three months following completion of professional education; including internship, residency, fellowship, and obligated public health service, and/or obligated national service, or upon withdrawal from school for whatever reason, a specific date will be determined marking the beginning of the repayment period.

3. Payments will be made in ten (10) annual installments on a repayment schedule established by the Authority. The contract student may request a monthly or quarterly payment schedule.

4. The first annual installment will be due three months following the date determined as marking the beginning of the repayment period.

5. Contract students who practice either within or outside the State of Maine for less than a full calendar year will have their repayment computed on a pro rata basis.

C. Default. If a payment is not made within 90 days following the due date, the State may declare the entire amount due and payable including attorney's fees of up to 15% of the amount in default subject to the student's right to receive a notice of right to cure.

D. Forgiveness

1. Contract students who return to Maine to practice in a designated underserved area may reduce the indebtedness by 25% for each year of practice.

2. Contract students who complete an entire family practice residency program in the State may have their indebtedness reduced by 50% of the original outstanding indebtedness upon completion.

3. Contract students eligible for the reduction of debt through return service must complete the "Practice Location and Date Form" section of the annual report duly notarized indicating the exact date of the beginning of the Maine practice.

4. Contract students who practice out-of-state and then establish a Maine practice at some point during the ten (10) year repayment period may reduce the balance due through return service. Any monies due and payable for the time period spent in out-of-state practice must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the existing balance by 25% of the total original tuition differential.

5. Death or Permanent Disability. On the death of a loan recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.

E. Deferment

1. Deferments during the repayment period may be granted by the chief executive officer for a maximum of three years. A written request shall be made to the chief executive officer requesting a deferment by a contract student who during the repayment period, either returns to a Maine practice and then leaves the State or who initially remains out-of-state and then returns to a Maine practice. The request must state justification for the deferment and will be decided on a case-by-case basis. The decision of the chief executive officer shall be final.

2. During the period of an approved deferment, simple interest will be assessed at the annual rate of 9%. At the conclusion of the deferment period, the total outstanding balance, including principal and interest shall be repaid either through return service or cash payments within the years remaining in the ten (10) year repayment period. Each year of return service will reduce the balance by 25% of the original total tuition differential.

3. Deferments for other reasons may be granted in the discretion of the chief executive officer. Any request must state the justification for the deferment and must include supporting documentation. Deferments will be determined on a case-by-case basis. The decision of the chief executive officer shall be final.

V. PROVISIONS AFFECTING STUDENTS WHO COMMENCE PROFESSIONAL EDUCATION ON OR AFTER SEPTEMBER°1977 AND PRIOR TO JULY 1, 1981

A. Annual Report. Contract students, except those who withdrew from professional education or no longer reside in Maine, shall indicate on the annual report their status commencing with graduation from the institution and annually throughout the remaining years of professional training and repayment period.

B. Repayment

1. Any students commencing their professional education on or after September 1977, but prior to July 1, 1981 shall repay the State an amount of money equal to the capitation payments expended by the State in purchasing the student's space if the student's obligation has not been fulfilled under the forgiveness provision.

2. The amount of money due the State shall include interest at 6% on a simple annual basis for students covered under P.L. 1977, chap. 703, with the interest assessed starting on the date which marks the beginning of the repayment period. The amount due shall be paid in not more than ten (10) annual equal installments. For students covered under P.L. 1975, chap. 769, the amount shall be repaid in twenty (20) annual equal installments without interest. A student may request a monthly or quarterly payment schedule.

3. The first payment will be due three months following the date determined as marking the beginning of the repayment period.

4. Contract students who practice either within or outside the State of Maine for less than a full calendar year will have their repayment computed on a monthly basis.

C. Forgiveness

1. Contract students who return to Maine to practice within a reasonable period of time in primary care or other specialized areas as determined by the Authority after consultation with the Commissioner of Health and Human Services may reduce the indebtedness by 25% per year of practice.

2. Contract students who practice out-of-state and then establish a Maine practice at some point during the ten (10) year repayment period may reduce the balance due through return service, excepting any monies due and payable for the time period spent in out-of-state practice. Each year of return service will reduce the existing balance by 25% of the original indebtedness.

3. Whenever the balance due is less than one-quarter (1/4) of the indebtedness, the return service time to complete the student's obligation will be a proportionally prorated part of a year, and return service for the computed time will sever the contractual obligations between the State and the student.

4. The student will complete and have notarized the annual report including the "Practice Location and Date Form" section indicating the exact date of the beginning of the Maine practice in order to be eligible for the reduction of his debt through return service.

5. A contract student who has selected a field of practice which is other than primary care or other specialized areas as determined by the Authority after consultation with the Commissioner of Health and Human Services is entitled to 25% forgiveness for each of the first two years in a Maine practice. The remaining debt must be repaid in the time remaining in the original ten (10) year repayment period.

6. Death or Permanent Disability. On the death of a loan recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.

D. Deferment

1. Deferments may be granted by the chief executive officer during the repayment period for a maximum of three years. A written request shall be made to the chief executive officer requesting a deferment by a contract student who during the repayment period, either returns to a Maine practice and then leaves the State or who initially remains out-of-state and then returns to a Maine practice. Deferments may be granted to students covered under P.L. 1975, chap. 769 with a simple annual interest of 6 percent being assessed during the deferment period only.

2. During the period of an approved deferment, simple interest will be assessed at the annual rate of 6%. At the conclusion of the deferment period, the total outstanding balance, including principal and interest shall be repaid either through return service or cash payments within the years remaining in the ten (10) year repayment period. Each year of return service will reduce the balance by 25% of the original indebtedness.

3. Deferments for other reasons may be granted in the discretion of the chief executive officer. Any request must state the justification for the deferment and must include supporting documentation. Deferments will be determined on a case-by-case basis. The decision of the chief executive officer will be final.

E. Students Subject to the Provisions of P.L. 1975, chap. 769

1. Those contract students subject to the provisions of P.L. 1975, chap. 769 may reduce the indebtedness, through return service, the full amount of their indebtedness. Each year of practice in Maine will allow the students to have one-quarter (1/4) of their original indebtedness forgiven.

2. For those contract students subject to the provisions of P.L. 1975, chap. 769, the phrase "completion of professional education" does not include obligated public health service.

3. All other provisions of this section V will apply where appropriate to this section.

VI. In the event that an application for a loan or request for deferment or extension is denied by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members. An appeal of the denial of an application shall not affect the processing or priority of other applications. Notice of the appeal, together with a statement of the reasons why the decision of the chief executive officer should be reversed or modified must be given to the chief executive officer in writing within 20 days after the date the chief executive officer mailed the notice of denial to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the denial. The decision of the chief executive officer shall be final unless the members determine that the denial by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

VII. The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 20-A M.R.S.A. §§ 11810, 12107
• EFFECTIVE DATE: February 8, 1993
• AMENDED: May 14, 1994 – III.E.3.a.1
• AMENDED: May 5, 1996 – II.C.1, III.E.3.a.1 and b, III.E.3.g (repealed), and III.E.8.a and b (repealed)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: June 12, 1996 – includes incorporation of May 4, 1996 amendment
• NON-SUBSTANTIVE CORRECTIONS: October 7, 1996 – minor spelling
• AMENDED: July 13, 1998 – I.B.3, II.A.2 - 3, II.B.2 - 3, II.C.1, 3
• NON-SUBSTANTIVE CORRECTIONS: August 12, 1998 – minor formatting and punctuation
• AMENDED: January 13, 2001 – I.B.7A, III.C.2. (added); III.B.2, III.B.3, III.B.6, III.C.1, III.E.3 I, III.E.5.c, III.E.8.c, III.E.8.d (amended)
• NON-SUBSTANTIVE CORRECTIONS: February 19, 2001 – minor punctuation
• AMENDED: August 4, 2001 – III.E.7.a
• AMENDED: March 2, 2003 – I.B.12A (added); I.B.14, 19; III.E.3.c, e
• AMENDED: June 2, 2004 – III.E.5.c, III.E.7.a, filing 2004-178
• AMENDED: January 23, 2007 – II.C.1, filing 2007-13
• AMENDED: January 1, 2011 – II.A.1, II.B.3 (amended); III.A.5 (new); III.B (amended); III.E.3(j) (amended), filing 2011-605
• AMENDED: February 12, 2017 - III.F, G, H (added); IV.A.4 (amended); IV.D.5 (added); V.A (amended); V.C.6 (added); other non-substantive corrections (department name updates), filing 2017-014
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 608 Tuition Waiver Program

Code Me. R. 94-457 Ch. 608 Tuition Waiver Program {#sec-94-457-ch.-608 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 608}

Summary: This rule establishes the eligibility criteria to be met and procedures to be followed for participation in a tuition waiver program at state postsecondary educational institutions for spouses and children of firefighters, emergency medical services persons and law enforcement officers killed in the line of duty, and for foster children.

1. General Rules

A. Definitions

Definitions used in this rule shall have the following meanings;

1. Chief Executive Officer. "Chief Executive Officer" means the Chief Executive Officer of the Finance Authority of Maine, or a person acting under the supervisory control of the Chief Executive Officer.

2. Emergency Medical Services Person. “Emergency medical services person” means a person who: (1) is licensed to provide emergency medical treatment under Title 32, chapter 2-B and is serving a governmental entity as defined in Title 24, section 8102, subsection 2 or a political subdivision as defined in Title 14, section 8102, subsection 3, in an official capacity as an officially recognized or designated employee or member of a rescue squad or ambulance crew, with or without compensation; or (2) is an employee of a nonprofit, incorporated ambulance service or non-transporting emergency medical service licensed under Title 32, chapter 2‑B receiving full or partial financial support from or officially recognized by the State, a municipality, or county or an entity created under Title 30‑A, chapter 115 or 119 when acting within the scope of activities expressly authorized by the State, municipality, county or entity created under Title 30-A, chapter 115 or 119.

3. Firefighter. "Firefighter" means a person who is an active member of a municipal fire department or a volunteer firefighter's association in this state and who aids in the extinguishing of fires regardless of whether the person has administrative or other duties as a member of the department or association.

4. Foster Child. “Foster Child’ means (a) a person in the custody of the Maine Department of Health and Human Services residing in foster care, or (b) an adopted person whose adoptive parent(s) receive a subsidy from the Maine Department of Health and Human Services, or (c) a person who is a minor ward of a permanency guardian as provided in 22 M.R.S.A. §4038-D which guardian receives a subsidy from the Maine Department of Health and Human Services.

5. Law Enforcement Officer. "Law Enforcement Officer" means an active state police officer, municipal police officer, county sheriff or deputy sheriff in this state. “Law Enforcement Officer” shall also include an active game warden, fire marshal, liquor enforcement officer, or marine patrol officer, if employed on a full-time basis in that position in this state.

6. Local government official. "Local government official" shall mean any elected or appointed member of a local government.

7. Maine Resident. "Maine Resident" means a person who is a resident of Maine at the time of application and who is not a resident of any other state.

8. State Post Secondary Educational Institution. "State Post Secondary Educational Institution" means the University of Maine, the Maine Maritime Academy, and the Maine Community Colleges.

9. Tuition Charges. "Tuition Charges" means the tuition established by the governing body of the state postsecondary educational institution.

10. Undergraduate Degree. "Undergraduate Degree" means Associate Degree (2-year) and Baccalaureate Degree (4-year), and with respect only to foster child participants, other degree or certificate programs of at least one year.

B. Tuition Waiver

1. An eligible spouse or child of a firefighter, emergency medical services person or law enforcement officer who has been killed or who has received an injury during the performance of his duties within this State which results in death may attend any state postsecondary educational institution free of tuition charges. For the purpose of this Rule, the phrase "who has been killed or who has received an injury during the performance of his duties which results in death" means that the decedent shall have died as the proximate and direct result of injuries received from external causes as the result of the active performance of the firefighter's or law enforcement officer's official duties.

2. An eligible foster child who has not been enrolled in a postsecondary educational institution for more than 5 years or the equivalent, and who each year completes an application for federal financial aid programs for which they may be eligible, may attend any state post-secondary educational institution free of tuition charges.

3. Once notified of an applicant's eligibility, the postsecondary educational institution shall waive a student's tuition during that academic year and/or summer school if the summer school offerings provide sufficient credit hours to allow the student to be classified as full time.

4. The tuition waiver shall be limited to undergraduate degree programs and shall be limited to the earlier to occur of not more than 5 years of full-time enrollment or its equivalent, or receipt of a Baccalaureate Degree.

2. Eligibility

A. Initial Eligibility

All the following requirements must be met by the applicant to be eligible for a tuition waiver.

1. The person must be: (a) a natural or legally adopted child of a firefighter, emergency medical services person or law enforcement officer, and be less than 21 years old at the time of the death of the parent firefighter, emergency medical services person or law enforcement officer, or (b) legally married to a firefighter, emergency medical services person or law enforcement officer at the time of the firefighter’s, emergency medical service person’s or law enforcement officer’s death, or (c) a foster child at the time such person graduates from high school or successfully completes a general educational development examination or its equivalent under 20‑A M.R.S.A. § 257;

2. The person must be a Maine resident;

3. The person must be a high school graduate or can demonstrate equivalent instruction; and

4. The person must have been accepted for admission to a state postsecondary educational institution.

B. Continuation

The tuition waiver shall be awarded annually, and shall continue to be available for so long as the following requirements are met:

1. The person remains eligible under requirements established in Section 2(A).

2. The person remains in satisfactory academic standing under standards of the postsecondary institution.

3. The person files an application annually prior to the first semester of the academic year with the authority and includes with the application a letter from the Registrar indicating that the requirement of 2(B)(2) has been met.

C. Limitation on number of foster children participants

No more than 30 waivers may be awarded for any academic year to eligible foster children who have not already participated in the program. The first 25 such waivers shall be available to eligible persons attending any state postsecondary educational institution, and of the last 5 such waivers, 3 shall be available to eligible persons attending educational institutions in the University of Maine System, and 2 shall be available to eligible persons attending educational institutions in the Maine Community College System. New awards will be made on a first come, first served basis. Once awarded a tuition waiver, an eligible foster child shall be entitled, upon application, to a waiver for succeeding academic years so long as they continue to meet the eligibility criteria and remain in good academic standing at a state postsecondary educational institution, as determined by the standards of the institution.

3. Application Process

A. Form

A person desiring to obtain a tuition waiver shall make application to the authority on a form provided by the authority.

B. Determination of Eligibility

The authority shall determine the applicants' eligibility utilizing requirements as established in Section 2(A) and by taking all steps necessary to determine that the requirements are met. In addition, the following information shall be provided by the applicant to the authority in order to assist the authority in the determination of eligibility.

(1) Copy of birth certificate, marriage certificate or other legal documents showing that the applicant is either a natural or legally adopted child of the deceased less than 21 years of age at the time of death, or a spouse at the time of death together with a copy of death certificate of the firefighter, emergency medical services person or law enforcement officer; or

(2) a letter from the Maine Department of Health and Human Services indicating that the applicant was a foster child, as defined in this rule, at the time he or she graduated from high school or completed a general educational development exam or its equivalent together with a copy of such applicant’s federal financial aid forms with evidence of proper filing of same.

(3) Notarized statement from a local government official in the community where the applicant currently resides attesting to the fact that the applicant is a Maine resident, and in the case of applicant seeking a waiver under Section 1(B)(1), a notarized statement from local government official of the community in which the deceased parent firefighter or law enforcement officer was employed at the time of death attesting to the fact that the deceased parent firefighter or law enforcement officer was (a) employed by the community as a firefighter or law enforcement officer at the time of death, (b) was engaged in the performance of the duties of a firefighter or law enforcement officer at the time of death and (c) was killed or received injuries resulting in death in the performance of such duty.

(4) Copy of the applicant's high school transcript demonstrating that the applicant has graduated from high school or other documentation demonstrating that the applicant has achieved an equivalent level of instruction.

(5) Copy of letter from the admissions officer at the state postsecondary educational institution the applicant has chosen to attend indicating that the applicant has been accepted for enrollment.

Note: Although an applicant may be accepted at several different institutions, the required letter must come only from the institution to which the applicant has chosen to attend.

C. Notification

1. The authority shall notify the applicant of the applicant's eligibility status.

2. The authority will also notify the postsecondary educational institution of the applicant's eligibility for a tuition waiver.

3. The authority will notify the postsecondary educational institute of any change in the eligibility status of the applicant.

4. Reporting

A. The postsecondary educational institution, in which the recipient is enrolled, shall report annually to the authority on forms provided by the authority the granting of the tuition waiver and the amount of funds the waiver represents.

B. The postsecondary educational institution in which the recipient is enrolled shall report to the authority when it is determined that the recipient has left the institution or has been dismissed from the institution for failure to meet academic standards.

C. The authority shall maintain all initial and renewal applications and related documentation necessary for the administration of the tuition waiver program.

History

• STATUTORY AUTHORITY: 10 M.R.S.A Chapter 110, including but not limited to §§ 969‑A (14) and 1014, and 20-A M.R.S.A., §§ 12551-12554 & 12571-12573
• EFFECTIVE DATE: December 9, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: January 17, 2000
• AMENDED: August 30, 2000
• AMENDED: November 4, 2003 - filing 2003-387
• AMENDED: September 4, 2006 – Sections 1(A)(4), 3(B), filing 2006-397
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 610 Rules for the Conduct of the Educators for Maine Program

Code Me. R. 94-457 Ch. 610 Rules for the Conduct of the Educators for Maine Program {#sec-94-457-ch.-610 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 610}

Summary: This rule details the procedures to be utilized in the conduct of the Educators for Maine Program, which provides financial assistance for post-secondary education to undergraduate students and students pursuing post-baccalaureate certification who demonstrate academic achievement and an interest in pursuing a career in teaching, including licensed speech pathologists or school counselors in schools, or child care, in Maine.

1. DEFINITIONS

A. Academic Achievement. "Academic achievement” means earning a grade point average of at least 3.0, based on a 4.0 grade point system or the equivalent thereof as determined in the discretion of the chief executive officer, based upon the most recent cumulative grade point average.

B. Authority. "Authority" means the Finance Authority of Maine.

C. Chief Executive Officer. "Chief executive officer" means the Authority's chief executive officer or a person acting under the supervisory control of the chief executive officer.

D. Child care. “Child care” means a regular service of care and protection provided for compensation for any part of a day less than 24 hours to a child or children under 13 years of age whose parents work outside the home, attend an educational program or are otherwise unable to care for their children.

E. Child care facility. “Child care facility” means a child care center or a home day care provider as defined in 22 M.R.S.A. §8301-A.

F. Child care provider qualifications. “Child care provider qualifications” means a degree or certificate from a child care development program including but not limited to child development, early childhood education, early childhood development, health and human services with a focus on early childhood, special education from birth to five years, and other similar programs as determined by the chief executive officer upon review of coursework and other relevant information.

G. Cost of attendance. “Cost of attendance” has the same meaning as set forth in 20 U.S.C. §108711 and the regulations, guidelines and procedures promulgated thereunder except, for students attending less than half-time, cost of attendance is determined on the same basis as for students attending half-time.

H. Commissioner. "Commissioner" means the Commissioner of the Maine Department of Education or a person acting under the supervisory control of the Commissioner.

I. Duly enrolled. "Duly enrolled" means, for an undergraduate, enrolled full time and, for a post-baccalaureate student, enrolled at least part-time at an institution of higher education, as verified by the institution of higher education.

J. [Reserved]

K. [Reserved]

L. Graduating High School Senior. “Graduating high school senior” means a student who is a resident of the State, who graduates from a secondary school or a home instruction program as described in 20-A MRSA §5001-A(3)(A)(4) and who is entering that student’s first year in an institution of higher education at the beginning of the next academic year.

M. Institution of Higher Education. “Institution of higher education” means an institution of higher education located within this State, another state or a foreign country that meets the requirements of and conforms to the definitions contained in the federal Higher Education Act of 1965, as amended, 20 U.S.C. §1001(a) and the regulations, guidelines and procedures promulgated by the Secretary of Education pursuant thereto.

N. Most recent cumulative grade point average. "Most recent cumulative grade point average" means the cumulative grade point average ("GPA") or its equivalent after the applicant's most recently completed period of study.

O. Return Service. "Return service" means service performed (i) as a certified teacher or school counselor or licensed speech pathologist in a public elementary or secondary school, publicly supported secondary school, or special education facility in Maine, as defined in 20-A MRSA §7001(6) or in a Maine private school approved for tuition purposes or in a state operated school, for a full school year; or, (ii) for borrowers who received their first program loan after January 1, 2000, in a child care facility for a 12 month period by an individual who has attained child care provider qualifications; or, (iii) as a Jobs for Maine’s Graduates specialist with Department of Education teacher certification.

P. School counselor. “School counselor” means a person who is employed as a school counselor in a school setting and who:

Is certified as a school counselor by the department; or

Possesses a minimum of a master’s degree in an approved program in guidance and counseling.

P. Students pursuing post-baccalaureate certification. "Students pursuing post-baccalaureate certification" means students who have earned a baccalaureate degree or its equivalent and are pursuing a program of studies leading to initial certification as a teacher or school counselor or licensure as a speech pathologist or the attainment of child care provider qualifications.

Q. Teacher. "Teacher" means a person certified by the Maine Department of Education who is employed as a teacher by a public school or private school approved for tuition purposes or a state operated school or a publicly supported secondary school or special education facility, as defined in 20-A MRSA §7001(6), including elementary and secondary teacher, specialized subject teacher, vocational or industrial arts teacher as defined in the certification rules of the State Board of Education and also includes by position title the following, unless modified by future legislation:

(1) Classroom teacher

(2) Itinerant teacher

(3) Guidance counselor

(4) Librarian-media specialist

(5) Special education teacher

(6) Special teacher of reading

(7) Licensed speech pathologist/therapist

(8) Chapter I tutor

R. Undergraduate. “Undergraduate” means any individual who has not been awarded any baccalaureate degree and who is currently enrolled or accepted for enrollment as a full time student at an institution of higher education, including a graduating high school senior.

S. Underserved Geographic Areas. “Underserved geographic areas” means those geographic areas of the State of Maine where there is an insufficient supply of teachers, school counselors or licensed speech pathologists as determined by the chief executive officer in consultation with the Commissioner.

T. Underserved Subject Areas. "Underserved subject areas" means those subjects or programs required or authorized to be taught in the public schools for which there is an insufficient supply of teachers or licensed speech pathologists as may be determined by the chief executive officer after consultation with the Commissioner.

2. APPLICATION DEADLINES

A. All applications for loans shall be made on forms provided by the Authority.

B. The deadline for filing initial applications is May 1 annually.

C. The deadline for filing renewal applications is May 1 annually. For renewal applications, if a student does not have a GPA of 2.5, or an equivalent thereof, on the date of the application deadline, the student may request reconsideration of the application by submitting spring academic term grades no later than June 30.

D. No application will be considered unless it is complete at the time of deadline.

E. The student must have filed the FAFSA by May 1 annually.

3. LOAN TERMS

A. Loans in an amount to be determined annually by the Authority based on available funds, but in no event less than $2,000 per academic year to eligible students pursuing post baccalaureate certification and $3,000 per academic year to eligible undergraduate students. Full time undergraduate students may not receive loans for more than 8 semesters, and full time and part time students pursuing post baccalaureate certification may not receive loans for more than 4 full time equivalent semesters. Individuals who have received an Educators (or Teachers) for Maine Program loan as an undergraduate student may also receive a loan for post-baccalaureate certification. In no event may an individual receive loan funds that result in making that individual’s total financial aid award greater than the cost of attendance.

B. Loans first made prior to July 1, 2011 and any renewals thereof shall accrue interest at a fixed rate set on the date of the approval of the loan, which rate shall be equal to the rate of interest in effect on such date for Federal Stafford Loan Program loans bearing interest at a variable rate, plus three-fourths of one percent (.75%) per annum. Loans first made beginning July 1, 2011 and any renewals thereof shall accrue interest at a fixed rate of five percent (5%) per annum. Interest shall begin to accrue 30 days prior to the date repayment is scheduled to commence in accordance with Section 7 of this rule, without regard to any deferment that may be granted unless the deferment states in writing that interest shall not accrue during this deferment period. In the event a loan is canceled on account of return service, the cancellation shall include interest accrued on the loan amount.

C. Loans shall be for one academic year and are generally disbursed on the basis of a two semester academic year.

4. LOANS TO UNDERGRADUATE STUDENTS

A. Initial Loan Eligibility

(1) The student must be currently enrolled or accepted for enrollment in a course of study leading to a certification as a teacher or school counselor or licensure as a speech pathologist or to attainment of child care provider qualifications in an institution of higher education.

(2) The student must be a graduate of a Maine high school, or the equivalent thereof, and a resident of Maine or a graduate of other than a Maine high school or the equivalent and a resident of Maine at least one year for other than educational purposes.

(3) The student must have a minimum 3.0 grade point average on a 4.0 grade point system or the equivalent thereof as determined in the discretion of the chief executive officer.

(4) The student must sign an agreement that details conditions to be met for receipt of a loan.

(5) [Reserved]

(6) [Reserved]

(7) The student must have filed the FAFSA by May 1 of the year of initial application.

B. Renewal Loan Eligibility

(1) The student must have received an initial loan.

(2) The student must submit a completed renewal application annually for a loan on or before the deadline date and must have filed the FAFSA by May 1 of the renewal year.

(3) The student must maintain at a minimum a 2.5 grade point average based on a 4.0 grade point system, or the equivalent thereof as determined in the discretion of the chief executive officer. Should the GPA fall below 2.5, the student has one academic year to bring the GPA up to 2.5. If this requirement is not met the student will be ineligible for further program participation.

(4) A student granted an approved leave of absence by the postsecondary institution may be eligible to renew the loan at the termination of the leave of absence provided that all other requirements of this section are met.

(5) The student must sign an agreement that details conditions to be met for receipt of a loan.

(6) The student must maintain residence in the State of Maine in order to be eligible for a renewal loan.

C. Deferral. Acceptance of an initial award or renewal of a previous award may be deferred for one academic year only. If an individual approved for a loan fails to be duly enrolled in an institution of higher education, as defined by these rules, by the beginning of the second academic year which follows the student's initial loan award or renewal award the student shall be ineligible for further program participation.

5. LOANS TO STUDENTS PURSUING POST-BACCALAUREATE CERTIFICATION

A. Initial Loan Eligibility

(1) The student must be a Maine resident.

(2) The student must be enrolled in or have applied for enrollment in a post-baccalaureate course of study leading to initial certification as a teacher or school counselor or licensure as a speech pathologist or to attainment of child care provider qualifications.

(3) The student's most recent cumulative grade point average must be at least 3.0.

(4) The student must sign an agreement that details the conditions to be met for receipt of a loan.

(5) [Reserved]

(6) [Reserved]

B. Renewal Loan Eligibility

(1) The student must have received an initial loan.

(2) The student must submit a completed renewal application annually for a loan on or before the deadline date.

(3) The student must maintain at a minimum a 2.5 grade point average based on a 4.0 grade point system, or the equivalent thereof as determined in the discretion of the chief executive officer. Should the GPA fall below 2.5, the student has one academic year to bring the GPA up to 2.5. If this requirement is not met the student will be ineligible for further program participation.

(4) A student granted an approved leave of absence by the postsecondary institution may be eligible to renew the loan at the termination of the leave of absence provided that all other requirements of this section are met.

(5) The student must sign an agreement that details conditions to be met for receipt of a loan.

(6) The student must maintain residence in the State of Maine.

C. Deferral. Acceptance of an initial award or renewal of a previous award may be deferred for one academic year only. If an individual approved for a loan fails to be duly enrolled in an institution of higher education, as defined by these rules, by the beginning of the second academic year which follows the student's initial loan award or renewal award the student shall be ineligible for further program participation.

6. LOAN DISBURSEMENT

A. Funds will be paid to each postsecondary institution for all disbursements to be received by loan recipients who are indicated as duly enrolled by the institution prior to the start of each academic term in accordance with the Authority’s current notification process. Disbursements to the institution will occur within 60 days following receipt of evidence that recipients are duly enrolled.

B. Loans shall be disbursed in the amounts requested by the institution although the amount requested shall not be less than $3000 per academic year for undergraduate students and $2,000 (or a proportionate amount thereof if attendance is less than full time) per year for post-baccalaureate students and shall be disbursed equally on an academic term basis.

C. The Authority may request supporting evidence of actual direct and indirect educational expenses, including, but not limited to, tuition, transportation, room and board, books and supplies.

D. If a recipient of a loan withdraws from an institution and is entitled to a refund of tuition, fees or other charges, the institution shall pay directly to the Authority from that refund a sum which represents the portion of the loan for the portion of the academic year that the recipient did not complete.

E. Loans may be originated using a master promissory note that allows all Educators for Maine loans provided over a period of up to seven years to be originated on a single promissory note.

7. REPAYMENT AND RETURN SERVICE

A. Loan recipients begin repayment nine months after graduation or completion of certification coursework.

B. A loan recipient may have the total amount of the loan canceled as follows: (i) by completing one year of return service in a public school, publicly supported secondary school, special education facility, as defined in 20-A MRSA §7001-(6) or private school approved for tuition purposes in the state or in a state operated school, for each year the individual received a loan; (ii) by completing one year of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school if such service is performed in an underserved subject area or underserved geographic area, for every two years or less that the individual received a loan; (iii) for individuals who attained child care provider qualifications and who received a first program loan after January 1, 2000, by completing one year of return service by working in a child care facility for each year the individual received a loan; or (iv) by completing one year of return service as a Jobs for Maine’s Graduates specialist for each year the individual received a loan.

C. Return service may not be credited for the same academic term for which an individual has received a loan nor may an individual receiving loan forgiveness for a loan for post-baccalaureate study receive loan forgiveness for any undergraduate loan.

D. Return service shall be performed within ten (10) years of graduation from an institution of higher education or completion of certification coursework.

E. A loan recipient who fails to fulfill the return service option shall repay the Authority as follows:

(1) The debt shall include the total amount of all Educators for Maine Program loans, including interest accruing on loans made with interest, less the amount, if any, which has been canceled by return service.

(2) The total debt shall be repaid to the Authority within eleven (11) years of graduation or completion of coursework on an amortization schedule determined by the Authority. Exceptions to the payment deadline due to extenuating circumstances may be granted on a case-by-case basis upon written request to the chief executive officer.

(3) For loans first made beginning July 1, 2011 and any renewals thereof, a minimum monthly loan payment of $50 will apply.

F. If a recipient has begun fulfilling the return service option by teaching or working as a licensed speech pathologist in an underserved subject area, the recipient shall be allowed to complete this option in the same subject area even if the subject area is removed from the list of those designated.

G. Recipients who withdraw from school, for whatever reason, prior to completion of the course or courses for which the funds were loaned, will not be allowed to exercise the return service option and will begin repayment six months from the end of the academic term of last attendance and complete repayment within ten years from the date of commencement of repayment.

H. A recipient of a loan may seek a deferment of return service or of cash payments. A request for deferment must be made to the chief executive officer who shall make a determination on a case-by-case basis. Generally, no more than three 1-year deferments will be granted. The decision of the chief executive officer shall be final. The time period for performance of return service or payment may be extended for the same period as any deferment granted. Unless expressly stated in writing to the contrary by the chief executive officer in his or her discretion, interest at the rate stated in any applicable Note(s) shall continue to accrue during the period of any deferment.

I. In the event of death or permanent disability (as determined by a physician) of a recipient, any unpaid amount due the Authority shall be canceled upon appropriate written verification of the death or permanent disability to the Authority.

J. If a cash payment is not made within 30 days following the due date of that payment, the Authority may declare the entire amount due and payable subject to the recipient's right to receive a notice of right to cure. If a default is declared the recipient shall be liable for the amount in default plus any accrued interest and late fees and reasonable attorney's fees.

K. If any monthly payment is not paid when due, the holder of the Note may collect a late charge of five cents ($0.05) for each dollar of such payment more than thirty (30) days in arrears.

L. Partial loan forgiveness shall be available on a pro-rata basis under sub-section B. “Part time” is considered to be employed on at least a 20% basis, based on a 10-month academic year or a five day work week.

8. SELECTION CRITERIA

Student recipients of loans are determined utilizing the following selection criteria:

A. Academic standing based on an analysis of the high school or college transcript.

B. Response to essay question.

C. In addition, the Authority may from time to time require and consider other relevant information, including but not limited to academic awards and honors.

D. Preference within each applicable allocation is given to those enrolled in a program that has been determined to be an underserved subject area.

E. Preference within the allocation for students pursuing post-baccalaureate certification shall be given to students who did not receive an Educators (or Teachers) for Maine Program loan as an undergraduate student.

9. SELECTION PROCESS

A. The Selection Committee will review application materials submitted in light of identified criteria.

B. The Selection Committee shall be approved by the chief executive officer and shall be composed of at least 5 representatives from the education communities.

C. Each application and accompanying materials shall be read by at least two Selection Committee members.

D. Following reading by the Selection Committee, applications will be rank ordered.

E. The Selection Committee will recommend to the chief executive officer the names of applicants who should be considered to receive Educators for Maine loans.

F. [Reserved]

10. LOAN FUND ALLOCATION

Funds available to new recipients in any given year will be allocated proportionally to the numbers of applicants in each of the Graduating High School Senior category; the Undergraduate (other than Graduating High School Senior) category; and students pursuing post-baccalaureate certification category.

11. The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial and is not contrary to the purpose of the program.

History

• STATUTORY AUTHORITY: 10 M.R.S. §969-A(14); 20-A M.R.S. §§ 12501 et seq.
• EFFECTIVE DATE: January 1, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: May 5, 1996
• AMENDED: January 27, 1998
• NON-SUBSTANTIVE CORRECTION: February 13, 1998 - “plys” corrected to “plus” in 3(C).
• AMENDED: August 30, 2000
• REPEALED AND REPLACED: January 1, 2004 - filing 2003-406
• AMENDED: June 28, 2005 - Amendment 1, filing 2005-265 affecting §2(B) (EMERGENCY – expires September 26, 2005)
• AMENDED: January 23, 2007 - Amendment 2, revision to Sections 2(B) and 2(C) and 4(B)(2) and new Sections 2(E) and 4(A)(8), filing 2007-14
• AMENDED: January 1, 2011 - Amendment 3, filing 2010-615
• AMENDED: January 5, 2014 - Amendment 4, filing 2013-336
• AMENDED: December 15, 2019 - Amendment 5, filing 2019-226
• APAO ACCESSIBILITY CHECK: December 16, 2025
• AMENDED: December 20, 2025 – filing 2025-244 (Amendment 6)

Chapter 611 Maine Education Savings Program

Code Me. R. 94-457 Ch. 611 Maine Education Savings Program {#sec-94-457-ch.-611 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 611}

Summary: The Maine Education Savings Program, formerly known as the Maine College Savings Program, is established as a qualified tuition program pursuant to Section 529 of the Internal Revenue Code of 1986 , as amended, and regulations promulgated thereunder. This rule establishes the procedures, standards and eligibility requirements for investment in accounts, into which a participant may invest funds to be used to pay qualified higher education expenses. The rule also establishes the procedures, standards and eligibility requirements of the Matching Grant Programs, the Fee Waiver or Rebate Program and the Scholarship Programs.

DEFINITIONS

The following terms, some of which are defined in the Finance Authority of Maine Act , 10 MRSA §961 et seq . (the “Act”) shall have the following meanings in this rule. All terms that are defined in federal requirements shall have the same meanings herein as in the federal requirements.

A. Account. “Account” means a repository of all contributions identified by a formal record of transactions, in respect to a particular participant and beneficiary, as applicable, established for purposes of the program.

B. Advisory Committee. “Advisory committee” means the advisory committee on education savings, formerly known as the advisory committee on college savings.

C. Authority. “Authority” means the Finance Authority of Maine, which serves as administrator of the program.

D. Beneficiary. “Beneficiary” means any person who: is designated by an application or participation agreement or subsequent change directed by the participant and accepted by the program to benefit from payments for qualified higher education expenses or who, as part of a scholarship program operated by a state or local governmental entity or a 501(c)(3), is the individual receiving such interest as a scholarship.

E. [Repealed effective March 2, 2003]

F. [Repealed effective February 12, 2018]

G. Chief Executive Officer. “Chief executive officer” means the Authority’s chief executive officer or any person acting under the delegated authority and supervision of the chief executive officer.

H. Contributions. “Contributions” means amounts deposited to an account.

I. Early Termination Event. “Early termination event” means any of the following if documented as required by the Authority:

1. the death of the beneficiary;

2. the disability of the beneficiary within the meaning of Section 72(m)(7) of the Internal Revenue Code ;

3. a qualified rollover to another qualified tuition program or a qualified ABLE program to the extent permitted under federal requirements;

4. an award of an eligible scholarship, to the extent of the amount thereof;

5. a claim of an American Opportunity tax credit or a Lifetime Learning tax credit to the extent allowable in conformance with federal requirements; or

6. attendance of the beneficiary at the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy, to the extent that the amount of the payment or distribution does not exceed the costs of such advanced education, as defined by Title 10 United States Code §2005(e)(3), as in effect on the date of enactment of Section 530(d)(4)(B)(iv) of the Internal Revenue Code, attributable to such attendance .

J. Eligible Scholarship. “Eligible scholarship” means any allowance or payment described in Section 25A(g)(2) of the Internal Revenue Code .

J-1a. [Repealed effective ______, 2025]

J-1. [Repealed effective April 7, 2013]

K. Federal Requirements. “Federal requirements” means the provisions of the Internal Revenue Code addressing qualified tuition plans, any regulations promulgated or, if so determined by the chief executive officer, proposed thereunder and any rulings or guidance thereunder addressed, or in the opinion of counsel, applicable to the Authority.

L. [Repealed effective October 10, 2021]

M. Internal Revenue Code. “Internal Revenue Code” means the Internal Revenue Code of 1986 , as amended.

N. Higher Education Act. “Higher Education Act” means the Higher Education Act of 1965 , as in effect on June 7, 2001.

O. Institution of Higher Education. “Institution of higher education” or “institution” means an institution which is described in Section 481 of the Higher Education Act , and which is eligible to participate in a program under Title IV of such Act. Such institutions generally are accredited post-secondary educational institutions offering credit toward the attainment of associate, baccalaureate, graduate level or professional degrees or another recognized post-secondary credential.

O-1. Maine Accounts. “Maine account” means any account opened by a participant who is a resident of Maine or for a beneficiary who is a resident of Maine.

O-2. Maine Administration Fee. “Maine administration fee” means the fee calculated at the annual rate determined by contract between 0% and fifteen hundredths of one percent (.15%) of the average daily net asset value of the amounts invested in the program, received by the Authority.

P. [Repealed effective October 10, 2021]

Q. Participant. “Participant” means any person who has entered into a participation agreement pursuant to this rule.

R. Participation Agreement. “Participation agreement” means an agreement between a participant and the Authority providing for the establishment by the participant of an account and for the administration of each account for the benefit of the participant and of a beneficiary, as applicable.

S. Program. “Program” means the Maine Education Savings Program as described in and governed by the Act, the Program Act and this rule.

T. Program Act. “Program Act” means 20-A MRSA §11471 et seq .

U. [Repealed effective March 2, 2003]

U-1. Program description. “Program description” means the official offering statement for the program.

U-2. [ Repealed effective October 10, 2021]

V. Qualified Higher Education Expenses. “Qualified higher education expenses” means such expenses defined in Section 529 of the Internal Revenue Code and such expenses that by reference are treated as qualified higher education expenses in Section 529, including without limitation expenses identified in Section 529(c)(7), Section 529(c)(8), and Section 529(c)(9).

V-1. Resident. “Resident” means a person who is a resident of the State of Maine for other than educational purposes or a person who is a resident of the State of Maine notwithstanding attendance at an institution of higher education outside of the State of Maine.

V-2 Student Aid Index. “Student Aid Index” or “SAI” means a calculation that reflects an evaluation of a student’s approximate financial resources to contribute toward the student’s postsecondary education for an academic year.

W. 501(c)(3). “501(c)(3)” means an organization described in Section 501(c)(3) and exempt from taxation under Section 501(a) of the Internal Revenue Code .

2. PROGRAM IMPLEMENTATION

The administration of the program is delegated to the chief executive officer.

3. ADVISORY COMMITTEE ON EDUCATION SAVINGS

A. The chair of the advisory committee is appointed annually by the chair of the Authority’s board of directors. The chair shall be responsible for the conduct of each meeting.

B. The advisory committee shall elect a vice chair from among its members. The vice chair shall be responsible for the conduct of a meeting in the absence of the chair.

C. A quorum of four members must be present to conduct the business of the advisory committee.

D. The advisory committee shall provide advice to the Authority, pursuant to the Program Act, on the operation of the program and investment of the program fund and, in addition, on such other matters as the chief executive officer may request. In order to carry out the Program Act, the chief executive officer shall provide to the advisory committee, prior to implementation, proposals for selection of investment managers and consultants and other elements of fund investment and program operation, and shall report to the advisory committee from time to time concerning such matters.

4. OPENING AN ACCOUNT

A. Each applicant shall submit an application to the Authority or any agent or contractor designated by the chief executive officer on such forms and with such attachments as the chief executive officer may require.

B. The application shall contain the following:

1. The name of the proposed beneficiary, unless the account participant is a state or local governmental entity (or agency or instrumentality thereof) or a 501(c)(3). Beneficiaries may be changed to any eligible individual, as permitted by federal requirements then in effect, upon the receipt of a request of the participant in the form designated by the Authority and accepted by the program;

2. Any minimum investment required by the chief executive officer to open an account;

3. The birth date of the beneficiary, unless the account is owned by a state or local governmental entity or a 501(c)(3);

4. For individuals, the social security number or valid taxpayer identification number of the participant and the beneficiary. Distributions from accounts that lack a valid social security number or taxpayer identification number may be subject to penalties or the withholding of taxes at the time of distribution; and

5. Such other information as the Authority may require including such factual representations as the Authority may reasonably require to evidence compliance with the participation agreement, the program description and federal requirements, which representations shall be deemed, if false, to constitute unsworn falsification within the meaning of 17-A MRSA §453.

5. PARTICIPATION AGREEMENTS

A. The Authority will enter into a participation agreement with all participants.

B. The participation agreement may include the following:

1. The name and address of the participant and the beneficiary;

2. [Repealed effective January 14, 2006]

3. [Repealed effective January 14, 2006]

4. [Repealed effective December 3, 2001]

5. Any obligations of the Authority, the participant and the beneficiary;

6. A summary of the fees and penalties that may be assessed against the account, the participant or the beneficiary;

7. The manner in which funds may be withdrawn and by which the ownership rights of the account may be transferred;

8. Provisions for periodic reporting of the status of participant accounts;

9. Such other information as the Authority may determine to be necessary or appropriate, including such factual representations as the Authority may reasonably require to evidence compliance with the participation agreement, the program description, and federal requirements, which representations shall be deemed, if false, to constitute unsworn falsification within the meaning of 17-A MRSA §453.

C. Participation agreements may be amended from time to time. Changes that affect the ownership and registration ( e.g. , mailing address, name of beneficiary) of the account must be submitted by the participant in the form and manner designated by the Authority.

6. LIMITATIONS ON CONTRIBUTIONS

A. No participant or beneficiary may directly or indirectly direct the investment of any contributions or of any other amounts held by the program. A member of the advisory committee will not be deemed to be directly or indirectly directing the investment of any account on which the member is the participant. At the time a participant opens an account, a participant may choose among any account investment options offered by the Authority and may alter such choices in accordance with federal requirements, as permitted by the Authority.

B. A participant may contribute to an account by making cash contributions, which may be in the form of electronic funds transfer or employer payroll deduction.

C. Contributions may be made at any time subject to any minimum and maximum contribution requirements.

D. Total contributions to an account may not exceed the amount projected to be necessary to pay qualified higher education expenses of the beneficiary to attend: (i) five years of undergraduate enrollment based on the average tuition and fees and room and board for four year private nonprofit colleges and universities in New England, as published by the College Board, or, if the College Board does not publish such data, by any other similar organization selected by the chief executive officer, provided, that in no event shall such amount exceed five times the actual amount then necessary to pay qualified higher education expenses of the beneficiary if enrolled as an undergraduate student in the most expensive program at a high cost private university in New England selected by the chief executive officer; and (ii) two times the actual amount then necessary to pay qualified higher education expenses of the beneficiary if enrolled as a graduate student in the most expensive program at a high cost private university in New England selected by the chief executive officer. The Authority may announce a lower maximum contribution amount. A contribution to an account will be prohibited if the contribution would cause the total of all account balances maintained on behalf of a beneficiary to exceed the total amount necessary to pay qualified higher education expenses, limited as described in the first sentence of this subsection.

7. OWNERSHIP OF CONTRIBUTIONS AND EARNINGS

A. The participant shall retain ownership of all contributions made under any participation agreement and earnings on those contributions up to the date of withdrawal.

B. In the event the participation agreement is terminated by the participant prior to payment of qualified higher education expenses, the participant shall retain ownership of all contributions made under the participation agreement and a right to receive earnings (less any applicable taxes and/or penalties, administrative fees and investment losses) on all contributions to the program account.

C. An institution of higher education shall own payments made to it for qualified higher education expenses at the time each is made to the institution except to the extent the institution is required to refund such payments in accordance with its refund policies.

8. WITHDRAWALS

A. To withdraw funds the participant must request a withdrawal in the format currently approved by the Authority. The participant is responsible for the maintenance of records evidencing the use of any withdrawal for qualified higher education expenses. The Authority has no obligation to maintain records evidencing the use of any withdrawal.

B. Upon receipt of a proper withdrawal request, the Authority’s designated agent or contractor will make distributions to the participant, the beneficiary, the specified institution of higher education for the benefit of the beneficiary, or to other distributees as may be directed by the participant and determined permissible by the Authority and its designated agent or contractor from time to time.

C. [Repealed effective June 4, 2002]

D. [Repealed effective June 4, 2002]

E. [Repealed effective June 5, 2016]

9. PARTICIPATING FINANCIAL INSTITUTIONS

[Repealed effective October 10, 2021]

10. ADMINISTRATION AGREEMENTS

The Authority may enter agreements with and designate agents for, without limitation, assistance with the implementation, operation, distribution, marketing, investment, and administration of the program, including terms and conditions the chief executive officer determines to be necessary or appropriate.

11. FEES AND PENALTIES

A. Each participation agreement may provide for an annual administrative fee based on amounts in the program fund accrued daily at an annualized rate not to exceed 1%. Such fees may be used only for program purposes including administrative expenses, the refunding of fees paid by participants or any class of participants, the matching of contributions made by participants or any class of participants, the use of funds to provide scholarships to beneficiaries attending institutions of higher education, or any other purpose allowed under the Act or the Program Act. Customary and usual investment costs may be deducted from the program fund in connection with the investment thereof and are not included in the administrative fees. Customary and usual account maintenance fees may be deducted from an individual account opened by a participant who is not a Maine resident, unless it is opened on behalf of a beneficiary who is a Maine resident.

B. Except upon the occurrence of an early termination event, if the participant makes a withdrawal for any purpose other than the payment of qualified higher education expenses, the participant must pay an additional tax or other penalty as provided in federal requirements. Notwithstanding the foregoing, payment of the additional tax does not apply to withdrawals or portions thereof used to pay for qualified higher education expenses that are subsequently refunded to a beneficiary by an institution of higher education and timely recontributed to an account in accordance with federal requirements.

C. [Repealed effective December 3, 2001]

D. If the Authority determines that the participant or the beneficiary has made any material misrepresentations on the application form, in requests for disbursements or in any other communications with the Authority or with the Authority’s designated agents or contractors in their capacities on behalf of the program, the account may be involuntarily liquidated by the Authority and any such misrepresentations shall be deemed to constitute unsworn falsification within the meaning of 17-A MRSA §453. If the Authority liquidates any account pursuant to this provision, the participant will be entitled to a disbursement subject to a penalty of 15% of the portion of the disbursement attributable to investment earnings on amounts contributed to the account.

E. Any additional tax payable shall be payable directly to the United States Department of Treasury in accordance with federal requirements.

F. When a penalty is assessed the chief executive officer may (i) require that the amount of the penalty be set off from any funds remaining in the account; (ii) collect penalties by retaining a sufficient balance in an account to pay the amount of the penalty; or (iii) collect any unpaid penalties through a set off against Maine income tax refunds pursuant to 36 MRSA §5276-A. This provision will only be applicable to penalties assessed under section 11.D.

G. All penalties are in addition to all State and federal taxes that may be due on the distribution.

12. WITHDRAWALS FOR PURPOSES OTHER THAN QUALIFIED HIGHER EDUCATION EXPENSES

A. A participant may withdraw funds from the account, subject to the penalties or additional tax identified in section 11. Any investment losses will be deducted from the principal amount of contributions. In addition, a fee may be levied by the Authority to reasonably compensate the Authority for its costs incident to the participant’s account.

B. [Repealed effective July 1, 1999]

C. Except as otherwise specifically provided herein, only the participant for each account may close an account or direct a withdrawal.

D. Distributions under this section will not be made to anyone other than the participant for each account, unless the participant properly directs the Authority’s designated agent or contractor to provide the distribution to another distributee and such instruction is accepted by the agent or contractor.

E. [Repealed effective June 4, 2002]

F. [Repealed effective June 4, 2002]

G. The Authority may notify the participant of any account in which a balance remains: (i) upon graduation of the beneficiary from an institution of higher education; (ii) upon the completion of any five year period, subsequent to the initial qualified withdrawal, during which period no withdrawal is made; (iii) upon the completion of the last period of beneficiary usage projected when an account is established; or (iv) upon determination by the Authority that no eligible beneficiary exists, of the amount of such balance and may request directions from the participant as to the application of such balance. If the participant fails to provide such direction with respect to all or part of such balance within 75 days, the Authority may close the account and disburse all amounts remaining to the participant.

13. TRANSFER OF OWNERSHIP

A. The participant may transfer ownership rights of an account to another eligible participant, provided the transfer is accomplished without consideration. All requests for substitution of a participant must include:

1. The account number;

2. The name, address, social security number or valid taxpayer identification number, and telephone number of the new participant;

3. [Repealed effective June 4, 2002]

4. Such evidence of verification, including, without limitation, the signature of the participant, as may be accepted by the Authority’s designated agent or contractor; and

5. Such other information as the Authority may require.

B. On the death of the participant on an account, if the participant has so elected, the account will be transferred to the designated successor named in the participation agreement or otherwise, in writing, and that designated successor will become the new participant. If no one is designated as a successor, the account will be treated as provided in the then current Program Description or in such manner as the Authority and its designated agent or contractor shall determine.

C. [Repealed effective December 3, 2001]

D. Neither the participant nor the beneficiary may use any rights to or interest in the account as security for a loan, including as security for a loan to purchase such interest in the program.

14. TAX CONSEQUENCES

Withdrawals from accounts for qualified distributions are exempt from taxation by the State of Maine pursuant to 36 MRSA §5122(2)(J). In addition, any portion of a withdrawal used to pay for the qualified higher education expenses of a beneficiary at an institution of higher education and subsequently refunded and recontributed to an account for the beneficiary within 60 days of the refund in accordance with federal requirements is not subject to Maine income tax to the extent not included in federal adjusted gross income in accordance with federal requirements.

15. APPEAL

In the event that there is a dispute between a participant or beneficiary and the chief executive officer, the decision of the chief executive officer shall be final agency action appealable to the Maine Superior Court.

16. WAIVER OF RULE

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, the Program Act or federal requirements, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

17. CONFLICT OF INTEREST

No member of the advisory committee may vote on any matter in which the member or any organization the member works for has a conflict of interest or which may be perceived as a conflict of interest.

18. USE OF MAINE ADMINISTRATION FEE

The Authority may use any amounts received from the Maine Administration Fee charged to participants first to pay all costs of program administration, including the maintenance of a reserve for administrative expenses in any amount the Authority may determine to be necessary from time to time, and for such other purposes as are allowed by the Program Act. The Authority may use the remaining amounts to fund each of the following programs: the fee rebate or waiver program; the matching grant programs; and the scholarship programs.

A. Matching Grant Programs

1. The Authority may award matching grants to Maine accounts to encourage the opening of accounts, to encourage contributions to accounts, and/or to encourage the use of automated account funding service options. The Authority shall determine the amount of matching grants from time to time and may establish terms and conditions for receiving and using matching grants, including but not limited to minimum contribution amounts, limitations on numbers of accounts eligible per beneficiary, maximum annual or account lifetime grant amounts, limitations on accounts eligible to receive matching grants, restrictions on the use of matching grants, and timing of grant awards.

2. [Repealed effective April 7, 2013]

3. [Repealed effective March 6, 2003]

3A) [Repealed effective March 6, 2011]

3B) [Repealed effective April 7, 2013]

4. Matching Grant Programs Generally

a) [RESERVED]

b) [Repealed effective April 7, 2013]

c) [Repealed effective April 7, 2013]

d) Although allocated to a particular account, matching grant funds will remain the property of the Authority until withdrawn for qualified higher education expenses at an institution of higher education. Matching grant funds, including earnings on matching grant funds eligible for use should be fully used before other contributions to the account or earnings thereon are used for qualified higher education expenses at an institution of higher education. To use matching grant funds, the participant must certify that such funds are being used for such qualified higher education expenses in such manner as required by the Authority.

e) All matching grant funds will be invested at the discretion of the Authority. The participant has no ability to direct the investment of matching grant funds.

f) [Repealed effective April 7, 2013]

g) In the event a participant is no longer eligible to receive a matching grant because the account is no longer a Maine account, all matching grants allocated will remain allocated to that account, but that account will not be eligible to receive future matching grants, unless the account becomes eligible again.

h) The Authority reserves the right at all times to require evidence of eligibility to receive a matching grant and may conduct audits to determine eligibility without obtaining additional consent from the participant after a matching grant has been allocated to an account. In the event a subsequent audit reveals that the matching grant was obtained through the submission of erroneous information, the Authority may immediately revoke the matching grant. If matching grant funds have been withdrawn prior to the determination that the application or request for withdrawal contained erroneous information, the Authority may deduct the amount so obtained from any funds remaining in the account.

i) Matching grant funds, including earnings, if any, will be returned to the Authority in the following circumstances:

(i) The account is closed;

(ii) The account is transferred to another beneficiary; or

(iii) [Repealed effective March 6, 2011]

(iv) The amount remaining in the account after the participant makes a nonqualified withdrawal is less than the amount that had been matched.

(v) [Repealed effective April 7, 2013]

j) [Repealed effective April 7, 2013]

k) [Repealed effective March 6, 2011]

l) [Repealed effective April 7, 2013]

B. Fee Rebate or Waiver Program

The Authority may rebate to Maine accounts or provide a waiver of an amount approximately equal to the Maine administration fee charged to that account as measured on the last business day of each month for each month of the previous calendar year. Such amount will approximately equal the Maine administration fee, subject to any minimum rebate or waiver amount which the Authority may establish. Any fee rebate or waiver will be applied to the account annually. Only accounts with an account balance of $1000 or more and an investment option subject to the Maine administration fee at the end of the calendar year are eligible to receive a fee rebate or waiver.

C. Scholarship Programs. The Authority may establish one or more program accounts to fund scholarships to Maine beneficiaries.

1. Access Scholarships

a) Scholarships may be awarded to individuals attending an institution of higher education:

(1a) who, are attending on a part-time basis, as established by the policy of the institution of higher education, and file a Free Application for Federal Student Assistance (FAFSA) on or before May 1 (or the first business day after May 1); or

(1b) who are attending full-time or on a part-time basis as established by the policy of the institution of higher education and file a FAFSA after the first business day after May 1;

(2) who are matriculated as undergraduates;

(3) [Repealed effective July 13, 2004]

(4) [Repealed effective June 5, 2006]

(5) who are residents of Maine and have graduated from an approved secondary school (or matriculated at an approved post-secondary school prior to high school graduation) or successfully completed a general education development examination or its equivalent;

(6) who, if filing a FAFSA after May 1, have not previously received a NextGen Access Scholarship or a Maine State Grant award and are entering students at the institution of higher education attended by the students; and

(7) who have a Student Aid Index that is not greater than the applicable Student Aid Index that is set annually by the Authority for individuals who file a FAFSA on or before May 1 (or the first business day after May 1) and a Student Aid Index for individuals who file a FAFSA after the first business day after May 1.

b) Scholarships may be in an amount for full-time students and for part-time students set annually by the Authority, not to exceed the beneficiary’s cost of tuition, fees, books, supplies and required equipment at the institution of higher education attended by the beneficiary.

c) Scholarships may be awarded to Maine students attending out-of-State institutions of higher education located in states that provide grants to residents of that state which may be used at Maine institutions of higher education.

d) [Repealed effective June 5, 2006]

e) If a recipient of an award withdraws from an institution and the student is entitled to a refund of tuition, fees, or other charges, the institution shall make a repayment of the award directly to the Authority.

2. Special Opportunity Scholarships. The Authority may designate a NextGen Scholarship account to be used to provide scholarships to individuals in Maine’s incumbent workforce. These scholarships may be used in a program for training or attaining specialized skills in a program that may lead to a certificate or degree. The Authority may require that an employer provide matching funds. The designation of each situation as eligible will be made by the chief executive officer.

3. Special Occasion Scholarships. The Authority may designate a NextGen Account in an amount to be determined annually by the members of the Authority to be used for scholarships in an amount not to exceed $1000 per student to be awarded by the Authority.

4. Enhanced Need Scholarships

a) Scholarships of up to an amount that is set annually by the Authority may be awarded to individuals with a Student Aid Index that is greater than the greatest Student Aid Index to receive a Maine State Grant award with priority given to the next lowest Student Aid Index as determined by the Authority.

b) Scholarships may be awarded to Maine residents who have graduated from a secondary school or the equivalent who have been accepted into an institution of higher education pursuing a first baccalaureate degree.

c) The award of the scholarship must not cause the recipient’s financial assistance to exceed the cost of attendance as published by the institution of higher education the recipient will attend.

d) Scholarships will be awarded based on the priority established in Section 18.C(4)(a) up to an aggregate amount determined by the members of the Authority’s board of directors annually.

5. Gold Star Scholarships

a) Eligibility

(1) Any dependent child of a member of the U.S. armed services killed while deployed in support of combat operations in Iraq or Afghanistan during such period of time as may be determined by the Authority from time to time, as certified by the State of Maine Bureau of Veteran’s Services, provided the child is a resident of Maine on the date of the parent’s death and under the age of 22;

(2) The family of the eligible child must provide any information the Authority needs to open the account on or before close of business on such date as may be set by the Authority;

(3) The child must be otherwise eligible to be the beneficiary of an account;

(4) For purposes of eligibility for a Gold Star Scholarship, the Authority will determine whether the deceased parent was a resident of the State based on the facts of that individual’s situation. In making that determination the Authority will consider:

(a) Whether the deceased parent lived in Maine prior to active duty in the United States armed services;

(b) Where the deceased parent paid taxes; and

(c) Where the deceased parent maintained a driver’s license.

For purposes of (a) and (b) above, the Authority will take into consideration whether and when the deceased parent was deployed prior to deployment to support combat operations in Afghanistan or Iraq.

b) Amount of Scholarship. A Gold Star scholarship account will be opened by the Authority for each eligible child within 60 days of the Authority learning of the eligibility of the child and receiving the information necessary to open the account. For the initial round of scholarships, the Authority shall allocate an amount of up to $250,000 to eligible accounts, with the amount awarded to each account based on the age of the child who is the beneficiary of the account, such that each account beneficiary will receive an approximately equal amount on the beneficiary’s 18th birthday, assuming the investment return of the principal plus portfolio (or other substantially equivalent guaranteed return or stable value investment option, in the event the Authority no longer offers the principal plus portfolio) as of the day of the investment in making the present value calculation. For subsequent rounds of scholarships, the amount awarded to each eligible account shall be based on the age of the child who is the beneficiary of the account such that the value of the account at the time of the beneficiary’s 18th birthday is an amount determined in the discretion of the Authority for that round of scholarships, assuming the foregoing investment return. If the child is 18 years or older, the account will be fully funded at inception.

c) Use of funds. The amounts contributed to each Gold Star Scholarship account, will be available to the beneficiary only upon certification that the funds sought to be withdrawn will be used for qualified higher education expenses at an institution of higher education and may not be used for amounts in excess of the beneficiary’s cost of attendance. The Authority may undertake investigation to assure that the Gold Star Scholarship recipient is enrolled in an institution of higher education.

d) Termination of Accounts. In the event there has been no request for withdrawal of funds from a Gold Star Scholarship account prior to the beneficiary’s 29th birthday, the account shall be terminated as of the beneficiary’s 29th birthday. If the beneficiary has withdrawn funds from the account prior to the beneficiary’s 29th birthday, the beneficiary may continue to withdraw funds until the beneficiary’s 35th birthday, at which time the account will be terminated. In the event the account is terminated while funds remain in the account, all remaining funds shall be returned to the authority to be used for program purposes.

History

• STATUTORY AUTHORITY: 10 MRS §969-A; 20-A MRS §11485
• EFFECTIVE DATE (Original Chapter): December 9, 1998
• CORRECTION: December 30, 1998 – removal of "s will be subject to penalties." from §13.C. as authorized by a December 28, 1998 memo from Assistant Attorney General Crombie Garrett.
• AMENDED: July 1, 1999 (Amendment 1)
• AMENDED: March 4, 2001 (Amendment 2)
• AMENDED: December 3, 2001 (Amendment 3)
• AMENDED: June 4, 2002 (Amendment 4)
• AMENDED: March 2, 2003 (Amendment 5)
• NON-SUBSTANTIVE CORRECTION: March 18, 2004 – restored missing quotation mark in 1.N.
• AMENDED: July 13, 2004 – filing 2004-262 (Amendment 6)
• AMENDED: July 21, 2005 – filing 2005-158 (Amendment 7)
• AMENDED: January 14, 2006 – filing 2006-10 (Amendment 8)
• AMENDED: June 5, 2006 – filing 2006-232 (Amendment 9)
• AMENDED: May 12, 2007 – filing 2007-184 (Amendment 10)
• AMENDED: February 5, 2008 – filing 2008-61 (Amendment 11)
• AMENDED: June 13, 2010 – filing 2010-222 (Amendment 12)
• AMENDED: March 6, 2011 – filing 2011-61 (Amendment 13)
• AMENDED: April 7, 2013 – filing 2013-078 (Amendment 14)
• AMENDED: June 5, 2016 - filing 2016-100 (Amendment 15)
• AMENDED: February 12, 2018 – filing 2018-022 (Amendment 16)
• AMENDED: January 15, 2019 – filing 2019-009 (Amendment 17)
• AMENDED: October 10, 2021 – filing 2021-211 (Amendment 18)
• APAO ACCESSIBILITY CHECK: December 16, 2025
• AMENDED: December 20, 2025 – filing 2025-245 (Amendment 19)

Chapter 612 Maine Dental Education Loan and Loan Repayment Programs

Code Me. R. 94-457 Ch. 612 MAINE DENTAL EDUCATION LOAN AND LOAN REPAYMENT PROGRAMS – Amendment 5 {#sec-94-457-ch.-612 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 612}

Summary: This rule establishes the criteria to be met by students to obtain a loan to pursue dental education or by dentists or certain dental auxiliary health professionals to enter into an agreement with the Authority for the repayment of their dental education loans.

I. Definitions

A. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. § 961 and following and in 20-A M.R.S.A. Chapter 426 shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. [Reserved]

“Chief executive officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer.

"Completion of professional education" means completion of dental school, post-graduate dental training and obligated public health service, and/or obligated national service, and/or completion of accredited school in a program of study for dental hygienists, dental therapists, expanded function dental assistants, or dental assistants.

“Dental assistant” means an individual who is trained to assist with dental procedures.

“Dental auxiliary health professional” for purposes of this rule means oral health care provided by professionals other than dentists, including dental hygienists, dental therapists, expanded function dental assistants, or dental assistants.

“Dental care facility” means any health care facility that offers primary dental care as either its primary service or as part of a broader medical practice and (a) accepts payment through MaineCare or a successor program; and (b) at which at least 25% of the patient load has been accepted for treatment regardless of ability to pay through insurance or other payment source. A dental care facility must provide patients notice that it accepts payment through Maine Care or a successor program.

“Dental hygienist” means an individual who holds a valid license as a dental hygienist issued by the Maine Board of Dental Practice and routinely performs preventative, educational, and clinical services supporting oral health consistent with their license.

“Dental therapist” means an individual who holds a valid license as a dental hygienist issued by the Maine Board of Dental Practice and is authorized to deliver dental hygiene services, including performance of certain dental procedures in accordance with Chapter 143 of Title 32 of the Maine Revised Statutes.

“Dentist” means a person who holds a valid dentist license issued by the Maine Board of Dental Practice and engages in the scope of practice set forth in 32 M.R.S.A. § 18371.

“Expanded function dental assistant” means an individual who holds a valid expanded function dental assistant license issued by the Maine Board of Dental Practice and performs certain dental procedures under the supervision of a dentist in accordance with Chapter 143 of Title 32 of the Maine Revised Statutes.

11. "Forgiveness" means the satisfaction of all or a portion of the loan obligation by a loan recipient through an eligible practice as set forth in section III.E.3.

12. "Indebtedness" shall be equal to any amount borrowed as a direct loan for dental education, plus any interest accrued thereon.

13. "Loan recipient" means any student who incurs indebtedness from the Authority for dental education, evidenced by a Note and Loan Agreement requiring the amount of money borrowed to be repaid either through cash installment payments or through forgiveness.

14. "Maine resident" means a person who has been a resident of the State of Maine for a minimum of two years for purposes other than education at the time of the person’s entry to dental school or any accredited school with a program of study for dental hygienists, dental therapists, expanded function dental assistants, or dental assistants. In determining whether an applicant is a Maine resident the Authority may consider (a) the amount of time the applicant has resided in the State for other than tuition purposes; (b) the secondary school the applicant attended; (c) the legal residence of the applicant's parents, if the applicant is dependent; (d) the location where the applicant is registered to vote, if any; (e) the jurisdiction(s) in which the applicant files income tax forms; (f) the jurisdiction where the applicant is licensed to drive, if any; (g) such other relevant documents and information as determined necessary or convenient in the opinion of the chief executive officer.

15. "Obligated national service" means an obligation incurred for financial assistance during undergraduate or graduate education, for internship or residency training provided by the Armed Forces Services of the United States, or for compulsory national service required by an Act of Congress.

16. “Primary dental care” means oral health services, including those provided by general practice and pediatric dentists, but excluding dental specialties (examples of specialties include without limitation: endodontics, oral and maxillofacial pathology, prosthodontics, and oral and maxillofacial radiology), and including dental auxiliary health services provided by dental hygienists, dental therapists, expanded function dental assistants, or dental assistants.

17. "Postgraduate training" includes general practice dental residencies, dental residences and any internships or fellowships in areas of primary dental care, as well as any advanced program of study for dental hygienists, dental therapists, expanded function dental assistants, or dental assistants.

18. "Repayment period" means the period of time commencing six months after completion of professional education, post-graduate training, and obligated national service required by an Act of Congress, or withdrawal from school and continuing up to ten years.

19. "Return service" means employment in a practice that qualifies the loan recipient for forgiveness of any portion of the indebtedness.

20. "Underserved population area" means an area in the State of Maine that is a dental health professional shortage area or medically underserved area or that contains a medically underserved population, as defined by the federal Department of Health and Human Services, Health Resources and Services Administration or any successor thereto.

Loan Repayment Program

Application Deadline

Applications for a loan repayment agreement must be received at the Authority on or before the applicable deadline as set by the Authority. In the event that the Authority does not receive any applications prior to such deadline, it may accept applications thereafter and, notwithstanding section II.D., enter into a loan repayment agreement with the first eligible applicant.

B. Eligibility

To be eligible for a loan repayment agreement the applicant must:

1. Be eligible for licensure to practice dental medicine or provide dental auxiliary services as a dental hygienist, dental therapist, expanded function dental assistant, or dental assistant in the state of Maine;

2. Have qualifying outstanding education loans, including loans for dental education or programs of study from any accredited school for dental hygienists, dental therapists, expanded function dental assistants, or dental assistants;

3. Have received an offer to practice at a dental care facility in an underserved population area, as evidenced by a letter of intent or other written offer of employment, or by providing written intent to establish a dental care facility in an underserved population area, which may be conditioned on obtaining a loan repayment agreement from the Authority;

4. [Reserved]

5. Certify that he or she is not currently practicing under a contract with the National Health Service Corps.; and

6. [Reserved]

C. Loan Repayment Agreement

1. A successful applicant will receive repayment of outstanding education loans at a rate of up to $20,000 (or up to $25,000 for agreements first signed after January 1, 2020) per year of service for up to four years as long as the applicant continues to serve as dentist or as a dental hygienist, dental therapist, expanded function dental assistant, or dental assistant in the dental care facility originally approved by the Authority or a substitute dental care facility in an underserved population area approved by the Authority and provided that no individual may receive more than $80,000 (or $100,000 for agreements first signed after January 1, 2020) in the aggregate of loans for dental or dental hygienist, dental therapist, expanded function dental assistant, or dental assistant students pursuant to section III hereof and through a loan repayment agreement.

2. Payments by the Authority under the loan repayment agreement will be made directly to the holder of the education loans in two disbursements annually. The dentist or dental auxiliary health professional must provide evidence of total outstanding education loan debt from all lending institutions and instructions for payment to a specific holder. Upon receipt by the Authority of the loan repayment agreement signed by the dentist or dental auxiliary health professional, the first disbursement of one half of the agreed upon annual amount will be made in approximately six months if the dentist or dental auxiliary health professional has already begun eligible employment, or approximately six months after commencement of eligible employment. Each subsequent disbursement will be made approximately six months after the previous disbursement assuming completion of additional eligible employment.

3. The loan repayment agreement will provide that the dentist or dental auxiliary health professional must repay amounts paid under the agreement if applied to ineligible purposes.

A person entering into a loan repayment agreement must agree that:

a. At least 25% of the employing dental care facility’s patient load is accepted for treatment regardless of ability to paythrough insurance or other payment source;

The employing dental care facility accepts payment through MaineCare, or any successor program;

The Authority may approve a substitute dental care facility for completion of service under a contract if the individual receiving loan repayment submits a request to the Authority, which includes:

1. A letter from the original approved dental care facility supporting the request for a change in practice location;
2. An offer to practice at another dental care facility in an underserved population area.

The loan repayment agreement may require or encourage the recipient to participate in presentations at one or more high schools in the State of Maine concerning careers in oral health care, and such other terms and conditions as the Authority deems necessary to fulfill the policy objectives of the loan repayment program.

D. Prioritization of Applicants

1. The Authority will prioritize the applications received for loan repayment. The Authority may consider each of the following criteria when determining which applicant(s) receive(s) a loan repayment agreement:

a. Access to dental care generally and for the indigent population in the underserved population area where the dentist intends to practice;

b. [Reserved]

c. The vacancy rate of the dental care facility the dentist intends to join;

d. The population-to-dentist or population-to-dental auxiliary health professional ratio for the underserved population area in which the dentist or dental auxiliary health professional would practice;

e. The number of dentists or dental auxiliary health professionals in private practice in the underserved population area who accept MaineCare (or any successor program) patients, with consideration of the percentage of those practices that are MaineCare (or any successor program) patients and whether new or only established patients can be seen; and

f. The number of awards per dentists versus the number of awards per dental auxiliary health professionals in an effort to make annual awards to each population as funds permit.

2. Final determinations will be made by the chief executive officer.

E. Breach of Loan Repayment Agreement

1. If a dentist or dental auxiliary health professional fails to complete the required period of service under a loan repayment agreement the Authority may terminate the loan repayment agreement and award any remaining funds under another loan repayment agreement with another eligible applicant.

2. In the event that the dental care facility chooses not to renew the contract of any individual receiving loan repayment, the Authority is not under any obligation to locate another dental care facility which will accept the individual. The loan repayment agreement will terminate and the Authority may offer the funds available to eligible applicants. The loan repayment recipient may reapply for loan repayment at another dental care facility.

Loans for Dental and Dental Auxiliary Health Professionals Students Program

Application deadline. Applications for loans must be received at the Authority on or before the application deadline as set by the Authority, annually. In the event funds are available for additional loans after the Authority has considered all applications received on or before the deadline, the Authority may consider additional applications.

B. Eligibility. To receive a loan an applicant must:

1. Be a Maine resident.

2. Provide all financial aid information requested by the Authority prior to any deadline established by the Authority and evidence financial need for a loan.

3. Be admitted to a program of dentistry at an institution of medica education that has been accredited by the appropriate accreditation agency or enrolled in any accredited school in a program of study for dental hygienists, dental therapists, expanded function dental assistants, or dental assistants.

4. Demonstrate, in an application essay, an interest in practicing primary dental care in an underserved population area and serving patients regardless of ability to pay through insurance or other payment sources.

5. Applicants agree to be interviewed if requested by the Authority.

6. Loans may not be used as a substitute for:

a. Reserved;

b. Reserved;

c. Financial aid from funds of an institution;

d. Any other financial aid available from the loan applicant's undergraduate college or university or any professional medical associations;

e. Loans made pursuant to Title VII of the Federal Public Health Service Act;

f. Notwithstanding the foregoing, a financial aid officer from an institution may request that loans from the Authority pursuant to this Rule substitute for any of the financial aid listed if such substitution will be in the best interests of the applicant. Such requests may be granted in the discretion of the chief executive officer. The chief executive officer's decision on any such request shall be final.

C. Priority for loans. Awards of loans shall be made according to the following order of priority:

1. First priority for loans is for students who wish to renew loans and who continue to demonstrate financial need, with priority within this category in order of greatest financial need.

2. Second priority for loans is for incoming students with intent to practice primary dental care in an underserved population area, with priority within this category in order of greatest financial need.

3. The authority shall strive, funds permitting, to make loans to dentists as well as dental auxiliary health professionals.

D. The Authority will determine financial need based on cost of attendance less financial aid.

E. In no event may a student receive loan funds which when combined with other financial assistance, will exceed the student's cost of attendance at the institution.

F. Agreement Requirements. Each loan recipient must sign an agreement with the Authority including at a minimum each of the following provisions:

1. The loan recipient must provide an annual report to the Authority on forms supplied annually on or before the date indicated by the Authority as the due date.

2. Until the loan is satisfied, the loan recipient must report any change of address to the Authority within four weeks of any address change.

3. Repayment/Forgiveness

a. Upon compliance with all necessary procedures loan recipients practicing primary dental care in an underserved population area in a dental care facility will be forgiven 25% of their original outstanding indebtedness under this section III. The loan recipient must provide evidence of such practice satisfactory to the chief executive officer.

b. The repayment period will begin six months following completion of professional education, or upon withdrawal from school for whatever reason. The loan recipient is responsible for notifying the Authority of completion of professional education or withdrawal from school.

c. Payments must be made in monthly installments on a repayment schedule established by the Authority.

d. Interest will begin to accrue at the beginning of the repayment period. The first monthly installment will be due one month following the date determined as marking the beginning of the repayment period.

e. Loan recipients may receive partial loan forgiveness on a pro rata basis for eligible employment of at least 20 hours per week, and/or for eligible employment for less than a full calendar year. The accrual of interest will commence one month after the cessation of a practice environment which qualifies for forgiveness of a loan. Cash payments will be due after the cessation of a practice environment which qualifies for forgiveness of the loan.

f. Loan recipients who practice in an environment which does not qualify them to receive loan forgiveness but who later establish a practice which does qualify for loan forgiveness during the repayment period may reduce the balance due through return service. Any monies due and payable for the time spent in the practice ineligible for forgiveness must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the remaining balance including accrued interest by 25% of the total original indebtedness.

g. The Authority may, in the discretion of the chief executive officer, refuse to credit all or any part of forgiveness of any loan if the loan recipient fails to return the annual report or any information requested by the Maine Department of Health and Human Services by the due date which shall be no less than 30 days after the mailing of the annual report form by the Authority.

4. Default.

If a payment is not made within 30 days following the due date, the Authority may declare the loan in default and give the loan recipient 30 days to cure the default. If the loan recipient fails to cure the default after 30 days notice, the Authority may declare the entire amount due and payable including attorney's fees. The Authority may increase the interest rate up to an additional 5% in the event of a default.

A loan recipient may be granted permission to default without penalty from an agreement to practice in an underserved population area by petitioning the Authority. The Authority may grant permission to default without penalty if the recipient provides evidence that catastrophic circumstances prohibit the recipient’s practice in the underserved population area for the required period of time, and for such other reasons as may be determined by the chief executive officer on a case-by-case basis. The Authority will credit a successful petitioner with forgiveness for the number of months served. The remaining obligation must be paid in full with interest.

5. Deferment

a. Deferments during the repayment period may be granted by the chief executive officer. A written request must be made to the chief executive officer requesting a deferment by a borrower. The request must state the justification for the deferment and must include all supporting documentation. Deferments will be decided on a case-by-case basis. The decision of the chief executive officer shall be final. Deferments may be granted for each of the following reasons:

(1) The temporary disability of the borrower;

(2) The borrower's temporary inability to meet the requirements necessary to obtain forgiveness of the loan, if the student evidences the intent to pursue one of the forgiveness provisions;

(3) The demonstration of the borrower that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;

(4) Such other reasons as the chief executive officer may approve.

b. A deferment will not ordinarily be granted for a period greater than one year. However, upon request of the borrower, the chief executive officer may renew any deferment on a case-by-case basis.

c. During the period of an approved deferment, simple interest will be assessed at an annual rate of interest equal to the rate of interest applicable to Federal Stafford loans at the time of the recipient’s first note plus 1.5%. During deferment of loans first made after January 1, 2016, and renewals of those loans, the annual interest rate is 5%. At the conclusion of the deferment period the total outstanding balance including principal and interest shall be repaid either through return service or cash payments within the years remaining in the ten year repayment period.

6. Loan Term. Loans must be repaid over a term no greater than ten years. The term may be extended upon a finding by the chief executive officer that such an extension is necessary to assure the repayment of the loan.

7. Maximum Loan Amount.

a. Loans may not exceed $20,000 (or $25,000 for loan agreements first signed after January 1, 2020) annually for up to four years. Notwithstanding the financial need of the students, the Authority may, in the discretion of the chief executive officer, provide loans of a lesser amount based on demand for loans, the actual funds available, and such other factors as the chief executive officer deems to be material. No applicant may receive an aggregate amount greater than $80,000 (or $100,000 for recipients of loan agreements first signed after January 1, 2020) of amounts received under section II and section III hereof.

1. For the purposes of determining terms of repayment and forgiveness, all loans made under this section III shall be combined.

2. Interest Rate.

a. Any loan recipient who maintains a practice in the State of Maine, who devotes 75% or more of the practice to the provision of primary dental care and is not eligible for forgiveness pursuant to section III.F.3 shall owe the Authority interest at an annual rate of interest equal to the rate of interest applicable to Stafford loans at the time of the recipient’s original note plus .5% per annum computed as simple annual interest. For loans first made after January 1, 2016, and renewals of those loans, the annual interest rate pursuant to this subsection shall be 3%.

b. Any loan recipient who maintains a practice in the State of Maine, but who does not devote 75% or more of the practice to the provision of primary dental care and is not eligible for forgiveness pursuant to section III.F.3 shall owe the Authority interest at an annual rate of interest equal to the rate of interest applicable to Stafford loans at the time of the recipient’s original note plus 1% per annum computed as simple annual interest. For loans first made after January 1, 2016, and renewals of those loans, the annual interest rate pursuant to this subsection shall be 5%.

c. Any loan recipient who does not maintain a practice in the State of Maine shall owe the Authority interest at an annual rate of interest equal to the rate of interest applicable to Stafford loans at the time of the recipient’s original note plus 1.5%, computed as simple annual interest. For loans first made after January 1, 2016, and renewals of those loans, the annual interest rate pursuant to this subsection shall be 8%.

d. No interest shall accrue on the loan recipient's indebtedness while the loan recipient receives loan forgiveness.

Death or Permanent Disability.

On the death of the recipient as evidenced by a certified death certificate or on the total and permanent disability of the recipient, as certified by a licensed physician, all amounts or service remaining due from the recipient will be forgiven.

Allocation of Funds.

The chief executive officer shall announce, no later than July 30 annually, the allocation of available funds between the Loan Repayment Program and the Loans for Dental and Dental Auxiliary Health Professionals Students Program. In the event that all funds available for use in the programs have not been awarded by September 30, the chief executive officer may reallocate funds among the programs.

V. Waiver of Rule

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

VI. Stakeholders

In administering the programs hereunder, and assessing their effectiveness, the chief executive officer may consult stakeholders from the dental community, including but not limited to representatives of dental education and practitioner communities in the State of Maine and organizations representing the interests of low-income communities in the State of Maine. The chief executive officer may convene stakeholders to participate in, among other things, selection of loan and loan repayment agreement recipients and the allocation of funds between the programs.

History

• STATUTORY AUTHORITY: 20-A MRS §12305.
• EFFECTIVE DATE: May 31, 2000
• SUNSET: December 31, 2000
• EFFECTIVE DATE: January 13, 2001
• AMENDED: April 9, 2002
• EFFECTIVE DATE: February 20, 2005 - filing 2005-54, Amendment 2 (Amendments to sections: I.B.12, II.A, III.A, III.F.3(b), III.F.3(d), III.F.5(c), III.F.8(a), III.F.8(b), III.F.8(c)); April 9, 2002, Amendment 1 (Amendments to sections: I.B.12, 1.B.14, II.C.1, III.A., IV and deletion of Section II.B.6.); January 13, 2001 (original rule)
• AMENDED: February 7, 2016 – filing 2016-018
• AMENDED: December 15, 2019 – filing 2019-227
• AMENDED: January 14, 2024 – filing 2024-005
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 613 Quality Child Care Education Scholarship Program

Code Me. R. 94-457 Ch. 613 The Quality Child Care Education Scholarship Program {#sec-94-457-ch.-613 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 613}

Summary: This rule defines eligibility criteria for the Quality Child Care Education Scholarship Program, and establishes a procedure for awarding Scholarships.

1. Definitions

A. Authority. The “Authority” means the Finance Authority of Maine.

B. Eligible program of study. “Eligible program of study” means a course or courses related to early childhood education or child development. If a student is enrolled in a degree program at an institution of higher education that will lead to a degree in early childhood education or child development, “eligible program of study” shall include so-called “core” courses required to obtain such degree. If a student is not enrolled in such a degree program, only courses directly involving aspects of early childhood education or child development will be considered as an “eligible program of study.”

B1. Expected family contribution. “Expected family contribution” means the amount that a student and his or her family may be reasonably expected to contribute towards postsecondary education for the academic year for which the student seeks a Program scholarship, determined using federal methodology.

C. Chief Executive Officer. “Chief Executive Officer” means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

D. [Repealed] (Amendment 4)

E. Institution of higher education. “Institution of higher education” or “institution” mean an accredited postsecondary educational institution of higher education offering two year, four year or graduate level programs which lead to the attainment of Associate, Baccalaureate, Master or Doctorate Degrees located within this State. Out of State institutions at which eligible students received Program scholarships in the 2007-2008 academic year will be considered an eligible institution to award subsequent Program scholarships to those students who received Program scholarships in the 2007-2008 academic year as long as those students remain eligible and the institution enters into a participation agreement with the Authority.

F. Resident of the State. “Resident of the State” means an applicant who is either (1) an independent student who has been a domiciled resident of the State for at least one calendar year prior to the date of attendance at the institution or (2) a dependent student whose parent or legal guardian has been a domiciled resident of the State at least one calendar year prior to the date of attendance at the institution. A residence established in the State for the purpose of attending an educational institution is not sufficient to establish a domiciled residence in the State. An individual may establish a domiciled residence in the State by providing indicia of residency satisfactory to the Chief Executive Officer, which may include evidence of home ownership within the State, identification of Maine as the state of residence on the FAFSA, filing of State income tax returns for residents, as indicated on the FAFSA, or, if the applicant is attending a public institution in the State, resident tuition bills. When an applicant ceases to maintain a domiciled residence in the State, as when the parents of a minor applicant move from the State, the applicant will ordinarily thereafter be classified as a nonresident of the State.

Members of the armed forces on active duty in the State and their dependents are deemed residents of the State for eligibility purposes, notwithstanding the date residency is established, provided that the applicant is not eligible to receive financial aid provided by any other state.

F1. Satisfactory academic progress. “Satisfactory academic progress” means satisfactory academic progress according to the standards of the institution as set in accordance with applicable federal laws, regulations, policies, and/or guidelines.

G. State. “State” means the State of Maine.

G1. [Repealed] (Amendment 4)

H. Program. “Program” means the Quality Child Care Education Scholarship Program established by 20-A MRSA §11670 et seq.

2. Student Eligibility

To be eligible for consideration for the Program the student must meet each of the following eligibility criteria:

A. The student must be a U.S. citizen or an eligible non-citizen defined as follows:

(1) U.S. national, or

(2) U.S. permanent resident having an Alien Registration Receipt Card (I-151 or I-551).

B. The student must be a resident of the State and shall have graduated from an approved secondary school (or matriculated at an approved post-secondary school prior to high school graduation) or successfully completed a general education development examination or its equivalent.

C. The student must be accepted for enrollment in an eligible program of study at an institution of higher education or at another course-offering institution that has articulated agreements with one or more institutions of higher education according to the prescribed standards, regulations and practices of that institution; and , for a subsequent disbursement, be making satisfactory academic progress as certified by the institution.

D. A non-degree student and a student attending an out of State institution who received a Program scholarship in the 2007-2008 academic year must have financial need as determined pursuant to Section 4, and must have filed the FAFSA by the time of application to the Program. All other students must have financial need as determined pursuant to Section 4, and must have filed the FAFSA by the deadline established by the institution.

E. The student must not owe a refund to or be in default of any federal or state educational grant or loan programs.

F. A non-degree student and a student attending an out of State institution who received a Program scholarship in the 2007-2008 academic year must apply to the Authority at least annually to participate in the Program by completing such application forms as may be designated by the Chief Executive Officer. All other students must complete such applications as may be required by the institutions they attend.

G. [Repealed] (Amendment 4)

3. Institution Eligibility

To be eligible to participate in the Program an institution must enter into a participation agreement with the Authority and comply with the following criteria:

A. Be an institution of higher education, as defined in Section 1, or be a course-offering institution with articulated agreements with one or more institutions of higher education.

B. Provide such information relevant to the student’s and institution’s participation in and eligibility under the Program as requested by the Authority.

C. Have one person responsible for the financial aid program.

D. Verify that the student recipients are in good standing within any applicable institutional standards and are enrolled in an eligible program of study and have met the student eligibility criteria set forth in Section 2 and other criteria for subsequent Program scholarships as set forth in Section 5.

E. [Repealed] (Amendment 2)

F. [Repealed] (Amendment 2)

G. [Repealed] (Amendment 2)

H. [Repealed ] (Amendment 2)

I. Certify that appropriate auditing and control procedures have been utilized in the operation of the Program at the institutional level.

J. Certify that the scholarship will not reduce institutional or other grant aid to the student, unless the institutional or other grant aid is subsequently granted to a student with demonstrated financial need, and further certify that the student is not known to be receiving a Maine Roads Scholarship from the Muskie Institute for the same course(s) for which the Program scholarship is sought.

K. Have a drug/alcohol free work place policy and have related policies for student recipients in place.

L. Certify that the Program scholarships have not resulted in an over-award to any student.

4. Determination of Need

The Chief Executive Officer shall establish the need of a student for a Program scholarship for an eligible program of study for which the student applies. A student shall be considered to have a need to qualify for a Program scholarship if the student’s expected family contribution does not exceed the limit set annually by the Authority, and the student has not been awarded a Maine Roads Scholarship from the Muskie Institute for the same courses(s) for which the Program scholarship has been sought.

5. Length of Scholarship; period of study

A. A scholarship shall be for a period not to exceed one academic year. A scholarship recipient who remains eligible shall be considered in the succeeding award year only upon completion of and compliance with any and all requirements of the institution or the Authority, as applicable.

B. [Repealed] (Amendment 4)

6. Determination of Scholarship

Scholarships to eligible students shall be determined as follows:

A. Eligible students shall be awarded scholarships for eligible programs of study at eligible institutions by the institutions according to the procedures of the institutions, except that the Authority shall award scholarships for eligible programs of study at eligible institutions to non-degree students and students seeking subsequent scholarships at out of State institutions who received scholarships in the 2007-2008 academic year. Scholarships awarded by the Authority will be on a first come, first served basis.

B. Scholarships awarded under this chapter may not exceed $500 per course within an eligible program of study, for a maximum of two (2) courses per semester and up to a maximum of $2,000 per student per year.

C. If a recipient of a scholarship withdraws from an institution and the student is entitled to a refund of tuition, fees or other charges, the institution shall make a repayment of the recipient's award directly to the Authority in accordance with the institution's published refund policy. If, however, the institution notifies the Authority of another eligible student at the time of notice of repayment, the Authority may allow the institution to award the refund to such student and the institution will be required to provide documentation thereof to the Authority.

D. Refunds received by the Authority during the academic year will be added to the funds reserved by the Authority pursuant to Section 8 and redistributed accordingly.

(1) [Repealed] (Amendment 4)

7. [Repealed] (Amendment 4)

8. Payment Procedures

The Authority will make Program scholarship funds available to participating institutions for award to eligible students on an annual basis according to allocation and distribution guidelines to be determined by the Authority from time to time. The amounts available to institutions annually is subject to available funds. The Authority may set aside up to 10% of available funds annually as a reserve, first for the needs of non-degree students and students at out of State schools who received Program scholarships in the 2007-2008 academic year and are eligible for subsequent scholarships, then for the needs of institutions which have not previously participated in the Program, and then for other Program purposes as determined by the Authority.

9. Program Review

The Authority may periodically conduct a program review of a participating institution's operation of the Program, and may offer technical assistance to the institution.

10. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by applicable law, in cases where deviation from the rule is insubstantial.

History

• STATUTORY AUTHORITY: 10 MRSA §969-A(14), 20-A MRSA §11670
• EFFECTIVE DATE: July 20, 1999 - filing 99-312, EMERGENCY - expired October 18, 1999
• EFFECTIVE DATE: October 23, 1999 - filing 99-446
• AMENDED: August 30, 2000 - Amendment 1, filing 2000-376
• AMENDED: January 12, 2003 - Amendment 2, filing 2003-5
• AMENDED: January 1, 2006 – Amendment 3, filing 2005-494
• AMENDED: March 9, 2008 – Amendment 4, filing 2008-97
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 614 The University of Maine System Scholarship Program

Code Me. R. 94-457 Ch. 614 The University of Maine System Scholarship Program {#sec-94-457-ch.-614 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 614}

Summary: This rule defines eligibility criteria and administrative procedures for the awarding of grants from the University of Maine System Scholarship Fund.

1. Definitions

A. Academic year and in attendance. “Academic year” and “in attendance” have the same meanings as in the definitions of these terms contained in the Higher Education Act of 1965, Section 1201, as amended, United States Code, Title 20, Section 1141; and the Higher Education Act of 1965, Section 491, as amended, United States Code, Title 20, Section 1088; and the regulations, guidelines and procedures promulgated by the Secretary of Education and published in the Federal Register pursuant to these sections of federal law.

B. Authority. The “Authority” means the Finance Authority of Maine.

C. Eligible program of study. “Eligible program of study” means a certificate/diploma program of at least one year, an associate degree program or a baccalaureate degree program.

D. Chief Executive Officer. “Chief Executive Officer” means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

E. Resident of the State. “Resident of the State” means an applicant who is eligible for in-state tuition pursuant to the published guidelines of the University of Maine System.

F. State. “State” means the State of Maine.

G. Program. “Program” means the University of Maine System Scholarship Fund Program established by 20-A MRSA §11631.

2. Student Eligibility

To be eligible for consideration for the Program the student must meet each of the following eligibility criteria:

A. The student must be a U.S. citizen or an eligible non-citizen defined as follows:

(1) U.S. national, or

(2) U.S. permanent resident having an Alien Registration Receipt Card (I-151 or I-551), or

(3) Other eligible non-citizen having one of the following documents from the U.S. Immigration and Naturalization Service:

(a) Arrival-Departure Record (I-94) showing:

(i) “refugee,” or

(ii) “adjustment applicant,” or

(iii) “conditional entrant,” or

(iv) “indefinite parole”; or

(b) An official statement that the student has been granted asylum in the U.S., or

(4) Provide evidence from the U.S. Immigration and Naturalization Service that he or she is a permanent resident of the United States; or is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident; or is a permanent resident of the Trust Territory of the Pacific Islands.

B. The student must be a resident of the State and shall have graduated from an approved secondary school (or matriculated at an approved post-secondary school prior to high school graduation) or successfully completed a general education development examination or its equivalent.

C. The student must be accepted for enrollment as an undergraduate in an eligible program of study, or be in good standing as an undergraduate for a first baccalaureate degree at a University of Maine System institution of higher education according to the prescribed standards, regulations and practices of that institution; meet the required academic standards for admissions and have not received a previous baccalaureate degree, and establish financial need.

D. The student must meet all the requirements for eligibility in the Maine State Grant Program (formerly known as the Maine Student Incentive Scholarship Program)

E. The student must meet all the requirements for eligibility for federal student financial aid and not owe a refund to or be in default of any educational grant or loan programs.

3. Institution Eligibility

All accredited campuses of the University of Maine System institutions of higher education are eligible to participate in the Program.

4. Determination of Need

Each participating educational institution shall establish the need of a student for a Program grant for an academic year for which the student applies in a manner satisfactory to the Chief Executive Officer.

5. Length of Grant; period of study

A. A grant shall be for a period not to exceed one academic year.

B. A student may receive a grant during the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance. The period may not exceed 150% of the published length of the program in which the student is enrolled, as published by the institution the student is attending, measured in academic years, academic terms or credit hours attempted, as appropriate.

6. Maximum Grant Amount

No grant be greater than $3000.

7. Payment Procedures

Funds will be issued to the institution pursuant to the following procedures:

A. The Authority will allocate available program funds by providing to each eligible institution a percentage of the funds available which is equal to that institution’s percentage of the full time equivalent, in-state students attending the University of Maine System as a whole, as published by the Chancellor of the University of Maine System. For example, if an eligible institution enrolls 10% of all of the full time equivalent students of the University of Maine System the previous fall, then that campus will receive 10% of the available funds. The Chancellor’s Office will notify the Authority annually no later than February 15 of the number of full time equivalent students attending the University of Maine System in the immediately preceding fall semester, as well as the number of full time equivalent students enrolled at each eligible campus.

B. No later than March 1, the Authority will provide each institution an estimate of the funds that will be available to that institution for distribution.

C. The Authority will disburse available funds to each institution in accordance with the allocation formula no later than August 15 or the first business day following August 15.

D. If a recipient of a grant withdraws from an institution and the student is entitled to a refund of tuition, fees or other charges, the institution may award such amounts to another eligible student.

E. No later than May 15 (or the first business day following May 15), each institution must provide the Authority with a final roster and reconciliation. The roster will include all recipients of program funds and the amounts received, as well as a certification from the submitting institution that the recipient all eligibility criteria. The reconciliation shall identify any interest earned on undisbursed funds and the use of such interest. Any unspent funds in excess of $500 must be returned to the Authority for disbursement the following year.

F. For academic year 2001-2002 the deadlines listed in subsection A-C above will be adjusted so that the Program may be implemented upon final adoption of this rule.

8. Program Review

The Authority may periodically conduct a program review of a participating institution's operation of the Program.

9. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial.

History

• STATUTORY AUTHORITY: 10 MRSA §969-A(14), 20-A MRSA §11631.
• EFFECTIVE DATE: September 3, 2001
• EFFECTIVE DATE: 94-457 Chapter 614 page 5

Chapter 615 Higher Education Loan Purchase Program

Code Me. R. 94-457 Ch. 615 Higher Education Loan Purchase Program {#sec-94-457-ch.-615 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 615}

Summary: This rule implements the Higher Education Loan Purchase Program whereby the authority may originate or purchase federally guaranteed student loans from eligible lenders that have entered into a contract with the Authority to provide specified borrower benefits to borrowers.

I. Definitions

A. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. §961 and following and in 20-A M.R.S.A. Chapter 417-F shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. "Bonds" includes bonds, notes, commercial paper, pass-through instruments or any other evidences of indebtedness.

2. "Borrower" means

a. a person who is a attending an institution of higher education eligible to participate in programs under Title IV of the Higher Education Act located in Maine;

b. a Maine resident, attending such an institution of higher education located outside of Maine;

c. the parent of an individual identified in a or b above; or

d. with respect to a consolidation loan only, an individual who received an eligible loan that is to be consolidated while a borrower described in a, b, or c above.

3. "Borrower benefits" include fee, principal or interest rate reductions or any other enhancement that lowers the cost of borrowing for the loan recipient of an eligible loan financed under the program.

4. "Chief executive officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer

5. "Eligible lender" means the Authority and the Federal Government and any financial institution, credit union or institution of higher education that is an eligible lender under the federal Higher Education Act of 1965, Public Law 89-329, 79 Stat. 1219, Title IV, as amended, or under the federal Health Professions Educational Assistance Act of 1976, Public Law 94-484, 90 Stat. 2243, as amended, as applicable or, in each case, any successor provision, that is approved by the Authority for participation in the program.

6. "Eligible loan or "loan" means a loan originated under the federal Higher Education Act of 1965, Public Law 89-329, 79 Stat. 1219, Title IV, as amended, or under the federal Health Professions Educational Assistance Act of 1976, Public Law 94-484, 90 Stat. 2243, as amended, in each case along with any successor provision, by an eligible lender to a borrower, or under any student loan program administered by the Authority.

7. "Finance" means the origination, acquisition or refinancing of eligible loans including through loans to eligible lenders.

8. "Maine resident" means a resident of the State as provided in the Higher Education Act or the regulations promulgated thereunder.

9. "Program" means the Higher Education Loan Purchase Program.

II. Forward purchase contracts with eligible lenders

A. The Authority may enter into contracts with eligible lenders to purchase eligible loans to borrowers. Each contract may provide:

1. That the Authority will purchase eligible loans originated by eligible lenders and may limit purchases of loans to eligible loans evidenced by a Promissory Note approved by the Authority.

2. That one or more servicers selected by the Authority may process the origination of eligible loans at the request of the lender..

3. That eligible loans held by the Authority will be serviced by one or more servicers selected by the Authority pursuant to a Master Servicer Agreement.

4. Loans must be held by the Lender for a minimum period of time prior to purchase to be determined by the chief executive officer.

5. Such other terms and conditions as are customary in the industry, as determined by the chief executive officer.

B. Eligibility

The Authority may enter into a forward purchase contract with any eligible lender.

III. Loan Origination

The Authority may originate any loan under the program, either directly, or indirectly through a lender trustee.

IV. Borrower Benefits

The Authority will provide borrower benefits as determined by the members of the Authority, or by a subcommittee of the members of the Authority specifically delegated that responsibility, on the basis of providing the best combination of borrower benefits based on the projected cash flow and the student loan market, taking into account the probability that a borrower will receive the benefit available. Borrower benefits that are available to all borrowers without request or requirement will be preferred.

V. Bond Terms

The members of the Authority or a subcommittee of the members of the Authority specifically delegated that responsibility will determine the terms of the bonds.

VI. Program Branding

The Authority may offer the program to lenders and schools under a name to be selected by the members. Schools and lenders may use the name as they deem appropriate.

VII. Confidentiality of Borrower Information

A. The Authority will provide in any contract binding the Authority with a servicer or agent for the Program able to access confidential borrower information that the servicer or agent will maintain the confidentiality of all confidential Borrower information and such information will only be available to those employees of the servicer(s) or agents who need to know. All agents and servicers will specifically agree that they will not use information gained from working on the Program to solicit or otherwise contact borrowers, except for the purposes for which they have been specifically engaged.

B. The Authority will not use information in its portfolio of federally guaranteed student loans to solicit consolidation loans.

VIII. The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: 20-A M.R.S.A. §11493(3)
• EFFECTIVE DATE: November 23, 2003 - filing 2003-438
• EFFECTIVE DATE: May 4, 2009 – filing 2009-184, Amendment 1 (EMERGENCY)
• EFFECTIVE DATE: July 12, 2009 – filing 2009-320, Amendment 1
• EFFECTIVE DATE: 94-457 Chapter 615 page 3

Chapter 616 Doctors for Maine's Future Scholarship Program

Code Me. R. 94-457 Ch. 616 Doctors for Maine’s Future Scholarship Program {#sec-94-457-ch.-616 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 616}

Summary: This rule implements P.L. 2009, c.410, “An Act to Encourage Maine Residents to Attend Medical School and Practice in Maine” by defining eligibility criteria for the Doctors for Maine’s Future Scholarship Program and establishing procedures for allocating scholarship funds to qualifying Maine-based medical school programs for award to eligible students.

1. Definitions

Authority. The “Authority” means the Finance Authority of Maine.

Cost of Attendance. “Cost of Attendance” means the tuition and fees applicable to an eligible student, together with an estimate of other expenses reasonably related to cost of attendance at a Medical School Program as determined by the Medical School Program and used in the awarding of Title IV aid.

Chief Executive Officer. “Chief Executive Officer” means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

Clerkship Experiences. “Clerkship experiences” means primary health care clinical education in a health professional shortage area or in an area of the State defined as rural by the Authority.

Clinical Education. “Clinical education” means any on-location teaching environment ranging from a one-to-one training between a physician and a medical student to a training in a health clinic or hospital with or without a residency program.

Fund. “Fund” means the Doctors for Maine’s Future Scholarship Fund established pursuant to 20-A MRSA Section 12103-A(6).

Good Academic Standing. “Good academic standing” means the student is academically qualified to maintain enrollment according to the standards of the Medical School Program as set in accordance with applicable requirements of the Medical School Program.

Health Professional Shortage Area. “Heath professional shortage area” means an area in the State lacking in medical professionals, as defined by the Commissioner of the Maine Department of Health and Human Services.

State. “State” means the State of Maine.

Medical School Program. “Medical School Program” means a qualifying Maine-based medical school program that has entered into a Participation Agreement with the Authority.

Primary Care or Primary Health Care. “Primary care” or “primary health care” means general or family practice of medicine, general internal medicine, general pediatrics, and obstetrics and gynecology.

Qualifying Maine-based medical school program. A “Qualifying Maine-based medical school program” means an allopathic or osteopathic medical school program affiliated with a medical school accredited by the Liaison Committee on Medical Education or its successor or the American Osteopathic Association or its successor in which (1) an educational or health care institution located in the State participates in curriculum development and the selection of students for admission; (2) no fewer than 10 students per class year are enrolled and in which these students are required to complete not less than one academic year of the medical school curriculum at facilities located in the State; (3) funds from philanthropic resources and the private sector are raised to match 100% of funds received from the State for scholarships pursuant to the Scholarship Program; and (4) the program curriculum includes required clerkship experiences in the State in and training and course completion in rural health care and primary care.

Scholarship. “Scholarship” means a scholarship pursuant to the Scholarship Program, whether funded from the Fund or from matching funds of the Medical School Program.

Scholarship Program. “Scholarship Program” means the Doctors for Maine’s Future Scholarship Program established by 20-A MRSA §12103-A.

2. Student Eligibility

The student is or will by the time of award of a scholarship be duly enrolled in a Medical School Program as set forth in Section 3 of this Rule;

The student has a substantial connection to the State of Maine as evidenced by factors such as prior education in Maine and parental or legal guardian residence in Maine;

The student has had at least one year of residence in Maine for other than education purposes; and

Priority must be given to a student who meets at least two of the following:

1. The student has received a high school diploma, or its equivalent, in the State;
2. The student has received a baccalaureate degree from a four­ year college or university in the State;
3. The legal residence of the student’s parent or legal guardian is in the State.

E. Students must be commencing professional medical education on or after July 1, 2009.

3. Medical School Program Eligibility

To be eligible to participate in the Scholarship Program, a Medical School Program must meet the following criteria, and shall enter into a Participation Agreement with the Authority in which the Medical School Program certifies that:

The Medical School Program is an allopathic or osteopathic medical school program accredited by the Liaison Committee on Medical Education or the American Osteopathic Association, respectively, and the Medical School Program has provided the Authority with such evidence of its accreditation as the Authority may require;

An educational or healthcare institution located in Maine participates in curriculum development and the selection of students for admission into the Medical School Program, and the Medical School Program has provided the Authority with such evidence of its affiliation with such educational or healthcare institution, as applicable, as the Authority may require;

The Medical School Program enrolls no fewer than 10 students per class year;

The Medical School Program requires that all students complete not less than one academic year of the medical school curriculum at facilities located in Maine;

The Medical School Program has raised funds through philanthropic resources and the private sector to match 100% of the funds allocated to the Medical School Program from the Fund;

The Medical School Program’s curriculum includes required clerkship experiences in the State in and training and course completion in rural health care and primary care;

Matching funds will be used to provide scholarships at least equal to the number of scholarship awards allocated to the Medical School Program pursuant to Section 6 in a given academic year, in accordance with the same student eligibility and other criteria and requirements of the Scholarship Program.

The Medical School Program will only award scholarships funded by the Scholarship Program to eligible students in accordance with this Chapter 616, and will give priority to those students meeting the criteria of Section 2(C). The Medical School Program will provide such verification of the eligibility of students receiving scholarships as may be requested by the Authority from time to time.

The Medical School Program will provide such information relevant to the students receiving scholarships and relevant to the Medical School Program as may be requested by the Authority from time to time. At a minimum, for each of eight years after the graduation from the Medical School Program of a student receiving a scholarship pursuant to the Scholarship Program, the Medical School Program must report to the Authority, on such forms, or electronically, as may be required by the Authority, the location of the student’s medical residency, specialty and place of employment;

The Medical School Program has designated one person responsible for the Scholarship Program;

For a renewal scholarship, the Medical School Program must verify annually that the student scholarship recipients are in good academic standing within any applicable institutional standards and continue to meet the student eligibility criteria set forth in Section 2 and other criteria for subsequent Scholarship Program funds as set forth in Section 4;

The Medical School Program has established that appropriate internal auditing and control procedures have been utilized in the operation of the Scholarship Program.

4. Length of Scholarship; period of study

A scholarship shall be for a period not to exceed one academic year. A student may not receive more than four (4) successive scholarships. A scholarship recipient who remains eligible shall be considered in the succeeding award year only upon completion of and compliance with any and all requirements of the Medical School Program or the Authority, as applicable. A Medical School Program must give priority to funding renewal scholarships prior to funding new scholarships.

5. Determination of Scholarship

Scholarships to eligible students shall be determined by the Medical School Programs as follows:

A. A Medical School Program shall award the number of scholarships available to it in a given year to eligible students according to the procedures of the Medical School Program.

B. Scholarships will be the lesser of $25,000 per student or 50% of the student’s cost of attendance as determined by the Medical School Program.

C. If a recipient of a scholarship withdraws from the Medical School Program and the student is entitled to a refund of tuition, fees or other charges, the Medical School Program shall make a repayment of the recipient's scholarship directly to the Authority in accordance with the Medical School Program’s published refund policy. If, however, the Medical School Program notifies the Authority of another eligible student at the time of notice of repayment, the Authority may allow the Medical School Program to award the refund to such student and the Medical School Program will be required to provide documentation thereof to the Authority. The Authority shall apply any amounts received as refunds to the Fund for use in future award years.

6. Allocation and Payment Procedures

The Authority shall strive to ensure that the total number of scholarships available from the Fund over the projected life of the Scholarship Program be allocated equitably among Medical School Programs which have raised sufficient matching funds in order to allow the Authority to do so. As a result, the Authority may award different numbers of scholarships from the Fund to different Medical School Programs in a given year.

In determining the number of scholarships available to be allocated in any given year from the Fund, the Authority shall take into account the number of Medical School Programs, the current and projected demand for new and renewal scholarships, the scholarship amount, funds available and projected to become available in the Fund, matching funds raised by each Medical School Program, and such other factors as the Authority, in its discretion, deems advisable or necessary in order to fairly and effectively administer the Scholarship Program. The Authority shall advise each Medical School Program of the number of scholarships to be allocated to it for the upcoming academic year no later than February 28, annually.

No Medical School Program may be allocated more than the number of scholarships from the Fund for which it has raised matching funds as of January 1 immediately preceding the award year, except that in the year a Medical School Program first enters into a Participation Agreement with the Authority, no Medical School Program may be allocated more than the number of scholarships from the Fund for which it has raised matching funds as of the date of the Participation Agreement. Regardless of the amount of matching funds a Medical School Program has raised, the maximum number of scholarships it may receive in a given year from the Fund is within the discretion of the Authority, taking into account the factors in subsection B, above.

By such time annually as is determined by the Authority, each Medical School Program eligible for scholarship funds from the Fund for the upcoming academic year shall provide a certification on such form as is required by the Authority from its chief financial officer stating the amount of matching funds which the Medical School Program had available as of January 1 and that the required matching funds continue to be available for scholarships. Each Medical School Program must subsequently provide to the Authority a certification from its independent auditor regarding the amount of matching funds that were available on January 1 of the year and the number and amount of scholarships that were awarded to eligible students with matching funds and from funds provided to the Medical School Program from the Fund in the academic year following January 1.

The Authority will make Scholarship Program funds from the Fund available to Medical School Programs for award to eligible students on a semi-annual basis, with one disbursement in the fall semester and one disbursement in the spring semester.

7. Program Review

The Authority may conduct periodic program reviews of a Medical School Program’s operation of the Scholarship Program and compliance with the Participation Agreement, and may offer technical assistance to the Medical School Program. The Authority may require audited financial statements from a Medical School Program.

8. Waiver of Rule

The Chief Executive Officer may waive any requirement of this rule, except to the extent that the requirement is mandated by applicable law, in cases where deviation from the rule is insubstantial.

History

• STATUTORY AUTHORITY: 20-A MRSA Section 12107; 10 MRSA Section 969-A(14)
• EFFECTIVE DATE: June 30, 2009 – filing 2009-293 (EMERGENCY)
• EFFECTIVE DATE: September 20, 2009 – filing 2009-490
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 617 Health Professions Loan Program

Code Me. R. 94-457 Ch. 617 HEALTH PROFESSIONS LOAN PROGRAM, Amendment 2 {#sec-94-457-ch.-617 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 617}

Summary: This rule establishes the criteria to be met by students of allopathic, osteopathic and veterinary medicine or dentistry to obtain loans to defray the costs of such graduate education. These criteria are applicable to students obtaining first Program loans beginning in 2011. See Chapter 607 for the criteria applicable to Health Professions Loan Program loans obtained prior to January 1, 2011.

SECTION 1. DEFINITIONS

1. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act , 10 M.R.S.A. §961 and following and in 20-A M.R.S.A. Chapter 424 shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

2. Defined Terms

A. "Annual report" means a report provided annually by the Authority to the loan recipient, requiring the loan recipient to provide a current address and status of the loan recipient's professional education, training or practice and such other information the Authority deems useful or necessary for the efficient administration of the Program.

B. "Chief executive officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer.

C. "Completion of professional education" means completion of medical, dental or veterinary school, post-graduate training and obligated public health service, and/or obligated national service, if any.

D. “Financial need” shall be determined by the Authority based on cost of attendance less financial aid.

E. "Health professional shortage area" means an area in Maine lacking in medical professionals as designated by the Maine Commissioner of Health and Human Services.

F. "Institution" or “school” means an institution or school of allopathic, osteopathic veterinary or dental education.

G. “Insufficient veterinary services” means an insufficient number of practitioners of veterinary medicine in either a veterinary specialty or geographic area, as determined by the Maine Commissioner of Agriculture, Conservation and Forestry.

H. "Maine resident" means a person who has been a resident of Maine for a minimum of one year at the time of matriculation at an institution for other than educational purposes. In determining whether an applicant is a Maine resident the Authority may consider (1) the secondary school the applicant attended; (2) the legal residence of the applicant's parents; (3) the location where the applicant is registered to vote, if any; (4) the jurisdiction(s) in which the applicant files income tax forms; (5) the jurisdiction where the applicant is licensed to drive, if any; (6) such other relevant documents and information as determined necessary or desirable in the opinion of the chief executive officer.

I. "Obligated national service" means an obligation incurred for financial assistance during undergraduate or graduate education, for internship or residency training provided by the Armed Forces Services of the United States, or for compulsory national service required by an Act of Congress.

J. "Postgraduate training" includes internships, residencies, and fellowships that fulfill the requirements for certifications/licensure by the corresponding Council/Board on Graduate Education of Allopathic Medicine, Osteopathic Medicine, Veterinary Medicine or Dentistry or the appropriate specialty. For borrowers receiving a first program loan in 2017 or after, except veterinary and dental students, postgraduate training may not exceed 6 years.

K. "Primary health care" means general or family practice of medicine, general internal medicine or internal medicine, general pediatrics or pediatrics, internal medicine-pediatrics, general dentistry and general obstetrics and gynecology.

L. "Repayment period" means the period of time commencing six months following completion of professional education or upon withdrawal from school, and continuing for ten years.

M. "Underserved group" means an underserved population group in Maine receiving insufficient primary health care or dental services as determined by the Maine Commissioner of Health and Human Services. Such a designation may be limited to a geographic area of Maine or to a specific practice location in the discretion of the Maine Commissioner of Health and Human Services.

N. "Underserved specialty" means a medical specialty in which there are insufficient practitioners either throughout Maine or within a designated geographic area of Maine, which may be a specific practice location, as determined by the Maine Commissioner of Health and Human Services.

SECTION 2. ELIGIBILITY

To be a loan recipient an applicant must:

1. Be a Maine resident.

2. Provide all financial aid information, including but not limited to filing the FAFSA, requested by the Authority prior to any deadline established by the Authority and evidence financial need for a loan.

3. Be admitted to a program of allopathic, osteopathic, veterinary medicine or dentistry at an institution of medical education that has been accredited by the appropriate accreditation agency, which program culminates in a M.D., D.O., D.M.D. or D.D.S., or D.V.M. degree.

4. Be obtaining a first Program loan after January 1, 2011.

SECTION 3. LOANS

Loans to loan recipients also benefiting from the Doctors for Maine’s Future Scholarship Program may not exceed $10,000 annually. Loans to all other loan recipients may not exceed $25,000 annually. All loans are limited to a total of four years. Loans may not replace any available institutional grant aid. A loan recipient may not receive loan funds which, when combined with other financial assistance, will exceed the loan recipient's unmet financial need at the institution, as certified by the institution.

SECTION 4. PRIORITY FOR LOANS

Awards of loans shall be made according to the following order of priority with loan applications within each priority further prioritized to provide loans to applicants exhibiting the greatest financial need and intent to practice primary health care, or veterinary medicine in an area with insufficient veterinary services.

1. First priority for loans is for loan recipients who wish to renew loans up to three times and continue to demonstrate financial need.

2. Second priority for loans is for incoming allopathic and osteopathic students not participating in the Doctors for Maine’s Future Scholarship Program.

3. Third priority for loans is for students studying dentistry, or veterinary medicine.

4. Fourth priority for loans is for incoming students participating in the Doctors for Maine’s Future Scholarship Program.

SECTION 5. AGREEMENT REQUIREMENTS

Each loan recipient must sign an agreement with the Authority including at a minimum each of the following provisions:

1. The loan recipient, except loan recipients who withdraw from professional education or no longer reside in Maine, must provide the annual report to the Authority on forms supplied annually on or before the date indicated by the Authority as the due date.

2. Until the loan is satisfied, the loan recipient must report any change of address to the Authority within four weeks of any address change.

3. Repayment Terms

A. Upon compliance with all necessary procedures, the following practitioners who maintain the specified practice for at least 20 hours per week, will owe all principal plus interest on their outstanding obligations at the rate of 0% per annum:

(1) Primary health care physicians and general dentists practicing in a designated health professional shortage area.

(2) Veterinarians providing services to Maine residents with insufficient veterinary services and providing at least 20 hours per week of veterinary services to livestock.

B. Upon compliance with all necessary procedures, the following practitioners who maintain the specified practice for at least 20 hours per week attending to patients, will owe all principal plus interest on their outstanding obligations at the rate of 3% per annum:

(1) Primary health care physicians and general dentists practicing in Maine, but not in a designated health professional shortage area.

(2) Any physician practicing in an underserved specialty.

(3) Any physician providing services to a designated underserved group.

C. Loan recipients practicing in Maine, other than those identified in subsections A and B above, will owe all principal plus interest on their outstanding obligations at the rate of 5% per annum.

D. Loan recipients not practicing in Maine or who have withdrawn from professional education will owe all principal plus interest on their outstanding obligations at the rate of 8% per annum.

E. The repayment period will begin six months following completion of professional education, or upon withdrawal from school for whatever reason. The loan recipient is responsible for notifying the Authority of such completion of professional education or withdrawal from school.

F. Payments must be made in monthly installments on a repayment schedule established by the Authority.

G. Interest will begin to accrue at the beginning of the repayment period. The first monthly installment will be due one month following the date determined as the beginning of the repayment period.

H. Notwithstanding any other provision of this rule, if the loan recipient fails to return the annual report or any information requested by the Maine Department of Health and Human Services by the due date which shall be no less than 30 days after the mailing of the annual report by the Authority, the Authority may require the loan recipient to pay all principal plus interest on their outstanding obligations at the rate of 8% per annum.

I. The Maine Department of Health and Human Services, Office of Rural Health and Primary Care or any agency or bureau succeeding to its responsibilities may require a loan recipient requesting an interest rate benefit, excluding veterinarians, to report annually the level of service provided by the loan recipient to Medicaid and Medicare patients and in public health clinics. If the Office of Rural Health and Primary Care determines that the level of service provided was not reasonable, the Authority may refuse to grant any interest rate reduction for the period of the loan.

J. Default. If a payment is not made within 30 days following the due date the Authority may declare the loan in default and give the loan recipient 30 days to cure the default. If the loan recipient fails to cure the default after 30 days’ notice, the Authority may declare the entire amount due and payable including attorney's fees.

K. Deferment

(1) Deferments during the repayment period may be granted by the chief executive officer upon written request made to the chief executive officer by the loan recipient. The request must state the justification for the deferment and must include all supporting information and documentation. Deferments will be decided on a case by case basis. The decision of the chief executive officer shall be final. Deferments may be granted for each of the following reasons:

(a) Temporary disability of the borrower;

(b) Demonstration by the loan recipient that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;

(c) Such other reasons as the chief executive officer may approve.

(2) A deferment will not ordinarily be granted for a period greater than one year. However, upon request of the loan recipient, the chief executive officer may renew any deferment on a case-by-case basis.

(3) During the period of an approved deferment, simple interest will be assessed at the rate of 5%. At the conclusion of the deferment period the total outstanding balance including principal and interest shall be repaid within the years remaining in the ten year repayment period.

L. Loan Term. Loans must be repaid over a term no greater than ten years. The term may be extended upon a finding by the chief executive officer that such an extension is necessary to assure the repayment of the loan.

M. Death or Permanent Disability. On the death of a lone recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.

SECTION 6.

In the event that an application for a loan or request for deferment or extension is denied by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members. An appeal of the denial of an application shall not affect the processing or priority of other applications. Notice of the appeal, together with a statement of the reasons why the decision of the chief executive officer should be reversed or modified must be given to the chief executive officer in writing within 20 days after the date the chief executive officer mailed the notice of denial to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the denial. The decision of the chief executive officer shall be final unless the members determine that the denial by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

SECTION 7.

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the Program.

History

• STATUTORY AUTHORITY: P.L. 2009, Ch. 488; 20-A M.R.S.A. §12107
• EFFECTIVE DATE: January 1, 2011 – filing 2010-606
• AMENDED: February 12, 2017 – Amendment 1: 1.2.J (amended); 5.1 (amended): 5.3.M (added); non-substantive corrections (department name update) – filing 2017-015
• AMENDED: January 14, 2024 – filing 2024-006
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 618 Maine Veterinary Medicine Loan Program

Code Me. R. 94-457 Ch. 618 MAINE VETERINARY MEDICINE LOAN PROGRAM, Amendment 3 {#sec-94-457-ch.-618 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 618}

SUMMARY: This rule establishes the criteria to be met by eligible veterinary medicine students who seek forgivable loans to defray the costs of studying veterinary medicine.

SECTION 1. DEFINITIONS

1. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act , 10 M.R.S.A. §961 and following and in 20-A M.R.S.A. Chapter 424-A shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

2. Defined Terms

A. "Annual report" means a report provided annually by the Authority to the loan recipient, requiring the loan recipient to provide a current address and status of the loan recipient's professional education, training or practice, as well as the geographic region the practice serves, and such other information the Authority deem useful or necessary for the efficient administration of the Program.

B. "Chief executive officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer.

C. "Clinical experiences" means any on-location teaching environment ranging from one-to-one training with a veterinarian to training in a veterinary clinic or hospital.

D. "Completion of professional education" means completion of veterinary school, post-graduate medical training, and obligated public health and/or national service, if any.

E. “Emergency and critical care” means a type of veterinary practice as determined by the Maine Commissioner of Agriculture, Conservation and Forestry.

F. “Financial need” shall be determined by the Authority based on cost of attendance less financial aid.

G. "Forgiveness" means the satisfaction of all or a portion of the loan obligation by the loan recipient through an eligible practice as set forth herein.

H. “Insufficient veterinary services” means an insufficient number of practitioners of veterinary medicine in a veterinary specialty related to livestock or emergency and critical care, as determined by the Maine Commissioner of Agriculture, Conservation and Forestry.

I. “Livestock” means such animals as determined by the Maine Commissioner of Agriculture, Conservation and Forestry.

J. "Maine resident" means a person who has been a resident of the Maine for a minimum of two years for other than educational purposes at the time of entry to a school of veterinary medicine. In determining whether an applicant is a Maine resident, the Authority shall consider (a) length of residence in Maine for other than tuition purposes; (b) the secondary school the applicant attended; (c) the legal residence of the applicant's parents; (d) the location where the applicant is registered to vote, if any; (e) the jurisdiction(s) in which the applicant files income tax forms; (f) the jurisdiction where the applicant is licensed to drive, if any; (g) such other documents and information as determined necessary or relevant in the opinion of the chief executive officer.

K. "Postgraduate training" includes one-year internships with a practicing veterinarian and/or internships, residencies, and fellowships that prepare practitioners for certification(s) by the corresponding Council Board of veterinary medicine in the specialty.

L. “Program” means the Maine Veterinary Medicine Loan Program.

M. "Repayment period" means the period of time beginning six months following completion of professional education or withdrawal from school and continuing for ten years.

N. “Return service” means employment in a practice that qualifies the loan recipient for forgiveness of any portion of the indebtedness.

O. “Selection Committee” means the committee convened by the chief executive officer pursuant to Section IV herein.

P. "Underserved geographic region" means a geographic region of Maine in which there is an insufficient number of practitioners of veterinary medicine, as determined by the Commissioner of Agriculture, Conservation and Forestry.

SECTION 2. ELIGIBILITY

1. The applicant must be a Maine resident admitted to an institution of veterinary medicine in a program of study leading to a Doctor of Veterinary Medicine degree.

2. The applicant must have provided all financial and other application information requested by the Authority, in a timely manner.

3. All applicants must show evidence of a desire to practice veterinary medicine related to livestock or emergency and critical care in an area of Maine with insufficient veterinary services or to practice veterinary medicine of any type in an underserved geographic region.

4. Applicants must not have commenced veterinary medical education prior to January 1, 2011.

5. Awards of loans shall be made according to the following order of priority:

A. First priority is for students who are seeking loan renewal and who continue to demonstrate financial need as certified by the institution of veterinary medicine.

B. Second priority is for incoming students who demonstrate financial need as certified by the institution of veterinary medicine.

C. After prioritizing applicants in accordance with the first and second priorities, the Selection Committee shall consider applicants who demonstrate an interest in practicing in an area of Maine with insufficient veterinary services or in an underserved geographic region. Factors to be considered may include but are not limited to the following:

(1) The applicant’s background including past or current residence and/or employment on a farm or at a practice providing emergency and critical care;

(2) The applicant’s involvement, if any, with farm or livestock related organizations or at a practice providing emergency and critical care;

(3) The applicant’s undergraduate degree and farm or livestock or emergency and critical care-related experiences as an undergraduate;

(4) The applicant’s employment or any internships or related experiences with a licensed veterinarian; and

(5) Such other factors as the Authority and the Selection Committee deem relevant to assessing the likelihood that the applicant will practice veterinary medicine related to livestock or emergency and critical care in areas of Maine with insufficient veterinary services or to practice any type of veterinary medicine in an underserved geographic region.

SECTION 3. LOAN AMOUNTS AND CONSOLIDATION

The maximum loan amount available under the Program to each loan recipient is $25,000 per year for loans made prior to academic year 2023-24 and $35,000 for loans made beginning in academic year 2023-24 for a period of up to four years. In no event may a student receive loan funds which, when combined with other financial assistance, will exceed the student's cost of attendance at the institution. For purposes of determining terms of repayment and forgiveness, all loans under the Program will be consolidated.

SECTION 4. SELECTION OF LOAN RECIPIENTS

Beginning January 1, 2023, the chief executive officer shall, as resources allow, award up to eight loans annually up to an aggregate of thirty-two. At least half, and no fewer than two, of the annual loans awarded must be awarded to applicants who have demonstrated a likelihood to practice livestock veterinary medicine in Maine unless the Authority does not receive enough qualified applicants to meet this requirement, in which case the chief executive officer may award the remaining loans to other eligible applicants. A Selection Committee convened by the chief executive officer of not fewer than three members, one of whom shall be the State of Maine veterinarian and one of whom shall be a representative of a state-wide Maine association of veterinarians, shall meet annually to advise the Authority in prioritizing the eligible applicants in accordance with the factors identified in Section II.5(C).

SECTION 5. LOAN AGREEMENT REQUIREMENTS

Each loan recipient must sign a Loan Agreement with the Authority including at minimum the following provisions:

1. The loan recipient, except recipients who withdraw from professional education or no longer reside in Maine, must provide the annual report to the Authority on forms supplied annually on or before the date indicated by the Authority as the due date.

2. Until the loan is satisfied, the loan recipient must report any change of address to the Authority within four weeks of any address change.

3. A loan recipient must make a commitment to undertake specific training, including clinical experiences in livestock or emergency and critical care medicine, and report such experiences annually to the Authority in the annual report.

4. Forgiveness

A. Upon compliance with all necessary procedures, practitioners who practice veterinary medicine full time in an area of Maine with insufficient veterinary services and whose practice is devoted to livestock or emergency and critical care at least 20 hours per week, or who practice veterinary medicine of any type in an underserved geographic region at least 20 hours per week, will be forgiven 25% of their original outstanding indebtedness under this Program for each full year of practice during the repayment period.

B. Upon compliance with all necessary procedures, practitioners who practice veterinary medicine full time in an area of Maine with insufficient veterinary services and whose practice is devoted to livestock or emergency and critical care or to veterinary medicine of any type in an underserved geographic region less than 20 hours per week, but not less than 10 hours per week, will be forgiven 12.5% of their original outstanding indebtedness under this Program for each full year of practice during the repayment period.

C. Upon compliance with all necessary procedures, practitioners who practice veterinary medicine less than full time in an area of Maine with insufficient veterinary services but devote at least 10 hours per week to the care of livestock or emergency and critical care or veterinary medicine of any kind in an underserved geographic region will be forgiven 12.5% of their original outstanding indebtedness under this Program for each full year of practice during the repayment period.

D. Loan recipients may receive partial loan forgiveness on a pro rata basis if they fulfill all the criteria but maintain the appropriate practice for less than a full calendar year. Loan recipients must notify the Authority as soon as practicable of the cessation of a practice allowing for loan forgiveness. The accrual of interest will commence one day after cessation of such a practice regardless of when notice is received. Cash payments will be due the earlier of one month after cessation of the practice or one month after the Authority has received notice.

E. Loan recipients who practice in a situation which does not qualify them to receive forgiveness of their loan and later establish a practice which qualifies them to receive forgiveness during the ten-year repayment period may reduce the balance due through return service. Any monies due and payable for the time spent in the practice ineligible for forgiveness must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the remaining balance including accrued interest by the applicable amount of the total original indebtedness.

F. The Authority may, in the discretion of the chief executive officer, refuse to credit all or any part of forgiveness of any loan if the loan recipient fails to return the annual report within 30 days of the due date of such report or fails to provide any information requested by the Maine Department of Agriculture, Conservation and Forestry within 30 days of any such request.

G. The Maine Department of Agriculture, Conservation and Forestry shall assist the Authority in determining whether the level of service provided by the loan recipient to livestock or in emergency and critical care setting or to veterinary medicine of any type in an underserved geographic region was reasonable. If the Maine Department of Agriculture, Conservation and Forestry determines that the level of service provided was not reasonable, the Authority may refuse to grant any loan forgiveness for the period of the loan.

5. Repayment. All loan recipients who do not qualify for loan forgiveness must repay their indebtedness plus 5% annual interest on the following terms:

A. The repayment period will begin six months following completion of professional education or upon withdrawal from school for whatever reason. The loan recipient is responsible for notifying the Authority of such completion of professional education or withdrawal from school.

B. Payments must be made in monthly installments on a repayment schedule established by the Authority.

C. Interest will begin to accrue at the beginning of the repayment period. The first monthly installment will be due one month following the date determined as the beginning of the repayment period.

D. Loans must be repaid over a term no greater than ten years. The term may be extended upon a finding by the chief executive officer that such an extension is necessary to assure the repayment of the loan.

E. Default. If a payment is not made within 30 days following the due date the Authority may declare the loan in default and give the loan recipient 30 days to cure the default. If the loan recipient fails to cure the default after 30 days notice, the Authority may declare the entire amount due and payable including attorney’s fees.

F. Deferment. Deferments during the repayment period may be granted by the chief executive officer upon written request by a student. The request must state the reason for the deferment and must include all supporting information and documentation. Deferments will be decided on a case-by-case basis. The decision of the chief executive officer is final. Deferments may be granted for each of the following reasons:

(1) The temporary disability of the borrower;

(2) The borrower’s temporary inability to meet the requirements necessary to obtain forgiveness of the loan, if the borrower evidences the intent to pursue one of the forgiveness provisions;

(3) The demonstration by the borrower that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;

(4) Such other reasons as the chief executive officer may approve.

G. Death or Permanent Disability. On the death of a loan recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.

SECTION 6.

In the event that an application for a loan is denied by the chief executive officer, the applicant shall have the right to appeal the decision of the chief executive officer to the members. An appeal shall not affect the processing or priority of other applications. Notice of the appeal, together with a statement of the reasons why the decision of the chief executive officer should be reversed or modified must be given to the chief executive officer in writing within 20 days after the date the chief executive officer mailed the notice of denial to the applicant. The appeal shall be heard at a meeting of the members, and the applicant must be present to support the appeal. The appeal shall be based on the record before the chief executive officer on the date of the denial. The decision of the chief executive officer shall be final unless the members determine that the denial by the chief executive officer was arbitrary, capricious or an abuse of discretion, in which event the members may overturn or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.

SECTION 7.

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the Program.

History

• STATUTORY AUTHORITY: P.L. 2009, Ch. 488; 20-A M.R.S.A. §12124
• STATUTORY AUTHORITY: P.L. 2021, Ch. 725; 20-A M.R.S.A. §§ 12121-12125
• EFFECTIVE DATE: January 1, 2011 - filing 2010-607
• EFFECTIVE DATE: February 12, 2017- 5.1 (amended); 5.5.G (added); non-substantive corrections (department name update) - filing 2017-016
• EFFECTIVE DATE: January 10, 2023 – = filing 2023-007, Amendment #2
• AMENDED: January 14, 2024 – filing 2024-007
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 619 Foreign Credentialing and Skills Recognition Revolving Loan Program

Code Me. R. 94-457 Ch. 619 FOREIGN CREDENTIALING AND SKILLS RECOGNITION GRANT PROGRAM –Amendment 2 {#sec-94-457-ch.-619 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 619}

SUMMARY: This rule establishes the criteria to be met and procedures to be followed by individuals seeking to participate in the Foreign Credentialing and Skills Recognition Grant Program.

SECTION 1. DEFINITIONS

A. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act, 10 M.R.S.A. §961 et seq. and in 10 M.R.S.A. Chapter 110, subchapter 13, shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

“Authority” means the Finance Authority of Maine

“Chief Executive Officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer.

"Eligible costs" means the following costs incurred or to be incurred by an applicant prior to their obtaining a work permit and incurred or to be incurred for the purpose of improving the applicant’s work-readiness once they obtain a work permit:

(a) Costs of translating into English any diplomas, transcripts, certifications or other proof of trainings or experience in trades, or other documents establishing courses studied or the completion of secondary school or of higher education at either the undergraduate or graduate level;

(b) Fees related to education evaluations establishing the equivalency level of education or experience attained abroad;

(c) Costs of translation into English of documents related to professional licenses, registrations or certifications of trainings or other experience obtained abroad;

(d) Costs of translation into English of letters of reference or recommendations related to education or experience obtained abroad;

(e) Fees related to test preparation courses or registration fees for a standard test of English as a foreign language such as the Test of English as a Foreign Language® (TOEFL) or other standardized test recognized worldwide that measures English language proficiency, when necessary for an immigrant's work;

(f) Expenses for employment or professional applications, certifications, licensing fees and related requirements for seeking employment, including but not limited to fingerprinting and required tests;

(g) Fees related to obtaining a Maine driver's license, including a commercial driver’s license, including but not limited to driver's education course fees, learner's permit application fees and driver's license fees;

(h) Costs to travel to the nearest location of any exam or test needed to establish the applicant's skills or credentials or English language proficiency, such as the TOEFL, if there is no location within sixty miles of the Maine town in which the immigrant resides; and

Costs of a filing fee required by the United States Department of Homeland Security, United States Citizenship and Immigration Services, or any successor federal agency, to apply for the immigrant’s initial work permit.

5. “Fund” means the Foreign Credentialing and Skills Recognition Grant Program Fund established at 10 M.R.S.A. §1100-AA.

"Immigrant" means a person who:

(a) Is not a United States citizen;

(b) Has filed applications or petitions with the United States Citizenship and Immigration Services or with the immigration courts of the United States Department of Justice, Executive Office for Immigration Review or with any successor federal immigration authority entitling the person to request a work permit while the person's applications or petitions are pending; and

(c) Has received education, work experience or work training, or any combination, in a foreign country.

“Initial work permit” means the first work permit that the immigrant is authorized to apply for under 8 Code of Federal Regulations, Section 274a.12(c) (2019).

"Program" means the Foreign Credentialing and Skills Recognition Grant Program established at 10 M.R.S.A. §1100-AA.

"Work permit" means a document provided by the United States Department of Homeland Security or any other federal immigration authority confirming a federal authorization of a person who is not a United States citizen to work in the United States.

SECTION 2. PROGRAM IMPLEMENTATION

The program shall be administered by and is delegated to the Chief Executive Officer.

SECTION 3. GRANT APPLICATION AND ELIGIBILITY

Application

An applicant shall apply for a grant on forms designated by the Authority. The application may be filed directly by the applicant or, at the request of and on behalf of the applicant, by an adult education program of a school administrative unit that provides English as a second language, job skills or other instruction or assistance to improve the work readiness of the immigrant. Applications will be considered by the Authority on a first-come, first-served basis as long as sufficient funds remain in the fund. In the event the Authority receives multiple applications on a day that would deplete the remaining fund balance, the Authority may award the remaining funds at its discretion.

B. Eligibility

To be eligible for a grant under the program, an applicant must:

Be an immigrant residing in Maine and have filed an application or petition with federal immigration authorities that entitles the immigrant to request a work permit in any of the categories set forth in 8 Code of Federal Regulations, Section 274a.12(c) (2019). The immigrant shall provide electronic or paper evidence establishing that such application or petition was filed with federal immigration authorities and shall state which section of 8 Code of Federal Regulations, Section 274a.12(c) (2019) allows the immigrant to request a work permit. An immigrant is not eligible if the immigrant has been denied a work permit at the time of making the application to the program. In the case of an immigrant who, pursuant to 8 Code of Federal Regulations, Section 274a.12(c)(8) (2019) or other federal statute or regulation, is required to wait a period of time after filing an application for asylum or another immigration benefit or relief before becoming authorized to receive an initial work permit, the immigrant is eligible if the immigrant's underlying application for asylum or another immigration benefit or relief entitling the immigrant to request an initial work permit following the required period has been filed and is pending at the time of making the application to the program; and

Submit evidence acceptable to the Authority of the costs incurred or to be incurred in the amount of the grant requested.

The Authority shall review the application for eligibility and, if the Authority determines the applicant is eligible, may authorize a grant to the grantee.

SECTION 4. GRANTS

Grants under the program must conform to the following requirements:

1. A grant to any individual for eligible costs may not exceed $1,000, but this limit may be adjusted upward by the Authority from time to time to reflect inflation or cost of living or other necessary adjustments. No individual who receives more than one program grant may receive more than $1,000 (or such other amount as may have been set by the Authority) in the aggregate;

2. In no event may any person charge an applicant a user fee for providing assistance with preparing and/or submitting an application to the program.

Agreement Requirements. An individual who has been approved for a program grant shall enter into an agreement with the Authority, which shall include the following terms and conditions:

1. Agreement by the grantee that they will use the funds only to pay for eligible costs;

2. Agreement by the grantee to retain copies of receipts for expenditures on eligible costs incurred and provide these to the Authority upon request for auditing or reporting purposes;

3. A provision that, if the grantee breaches the contract with the Authority, the Authority may require immediate repayment of the grant balance to the Authority; and

4. The grantee must report any change of address to the Authority within two weeks of any address change.

Disbursement from the Fund. Upon approval of an application, the Authority shall determine the amount to be disbursed from the fund to the grantee. Funds will be disbursed directly to and must be used by the grantee pursuant to the agreement entered into between the grantee and the Authority in accordance with subsection B above. Funds shall be disbursed by the Authority in one lump sum.

SECTION 5. ADMINISTRATIVE COSTS

The Authority may charge the fund for its reasonable administrative costs, not to exceed 5% annually of the fund balance, for its administration of the fund.

SECTION 6. WAIVER OF RULE.

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the governing program statute, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: P.L. 2019, Ch. 447; 10 M.R.S.A. §1100-AA
• STATUTORY AUTHORITY: P.L. 2021, Ch. 133; 10 M.R.S.A. §1100-AA
• EFFECTIVE DATE: January 12, 2020 – filing 2020-006
• EFFECTIVE DATE: January 9, 2022 – filing 2022-004
• AMENDED: November 20, 2023 – filing 2023-235
• AMENDED: 94-457 C.M.R. Chapter 619 page 2

Chapter 620 Maine Health Care Provider Loan Repayment Pilot Program

Code Me. R. 94-457 Ch. 620 Maine Health Care Provider Loan Repayment Pilot Program {#sec-94-457-ch.-620 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 620}

Summary: This rule establishes the criteria to be met and procedures to be followed by individuals seeking to participate in the Maine Health Care Provider Loan Repayment Pilot Program.

SECTION 1. DEFINITIONS

A. Certain terms used in this rule, which are defined in the Finance Authority of Maine Act , 10 M.R.S.A. §961 et seq ., shall have the meanings set forth therein, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms:

1. “Authority” means the Finance Authority of Maine

2. “Chief Executive Officer" means the chief executive officer of the Authority or a person acting under the supervisory control of the chief executive officer.

3. “Employer” means a Maine-based organization that employs eligible health care providers.

4. “Fund” means the Maine Health Care Provider Loan Repayment Pilot Program Fund established by P.L. 2021, Ch. 483 (Part H, Section H-2), to make loan repayments to eligible program participants to address critical workforce shortages exacerbated by the COVID-19 pandemic, including, but not limited to, the behavioral health and oral care sectors.

5. “Health care provider” means a person licensed and/or certified by the State of Maine as a medical, dental or behavioral health practitioner and performing within the scope of their practice as defined by state law or a person with a professionally recognized medical, dental or behavioral health credential.

6. "Participant" means any individual selected by the Authority who has entered into a loan repayment agreement for participation under the program.

7. "Program" means the Maine Health Care Provider Loan Repayment Pilot Program, established pursuant to P.L. 2021, Ch. 483 (Part H, Section H-1), for certain health care professionals who commit to living and working in Maine for at least three years. The Program is established to make loan repayments to eligible program participants to address critical workforce shortages exacerbated by the COVID-19 pandemic, including, but not limited to, the behavioral health and oral care sectors. Under the program, the Authority shall pay up to $25,000 per year or, in aggregate, the lesser of $75,000 or 50% of the recipient's outstanding loan balance.

SECTION 2. LOAN REPAYMENT PROGRAM

A. Application

An applicant shall apply for a loan on forms designated by the Authority. Applications for a loan repayment agreement must be received at the Authority on or before the applicable deadline as set by the Authority. Applications will be considered by the Authority as long as sufficient funds remain in the fund.

To be considered for an award under this chapter, as part of the application, the applicant must submit documentation, in a manner identified by the authority, validating:

(1) The applicant's outstanding student loan balance upon application;

(2) Remaining number of payments left on current student loan balance;

(3) Current payment amounts on the student loan, including information on any federal student loan repayment plan described in 20 United States Code , Section 1098e;

(4) Copy of health provider’s licensure or certification in Maine;

(5) Employment: Submit an employer certification form certifying the applicant's employment status and salary or hourly wage; and

(6) Intention to work in field: Submit a signed statement of intent in a form acceptable to the authority to work in the applicant's identified health care profession in the State and establish residency in the state for a minimum of three years after acceptance into the program.

B. Eligibility

To be eligible for loan repayment under the program, an applicant must:

1. Qualify as an eligible health care provider in the State of Maine as defined above and/or as determined by the Authority;

2. Have qualifying outstanding education loans;

3. Be employed as a health care provider as determined by the Authority;

4. Submit evidence acceptable to the Authority of outstanding educational loan debt; and

5. Not be benefitting currently from a loan forgiveness or loan repayment program administered by the Authority or another entity.

The Authority shall review the application for eligibility and, if the Authority determines the applicant is eligible, may authorize a loan repayment agreement between it and the borrower.

C. Loan Repayment Agreement

1. A successful applicant will receive repayment of outstanding education loans at a rate of up to $25,000 per year or, in aggregate, the lesser of $75,000 or 50% of the participant’s outstanding loan balance, for up to three years as long as the applicant continues to serve as a health care provider at an employer originally approved by the Authority or a substitute employer approved by the Authority.

2. Payments by the Authority under the loan repayment agreement will be made directly to the holder/servicer of the education loan(s) annually at the end of each year of qualifying full-time employment. The health care provider must provide evidence of total outstanding education loan debt from all lending institutions and instructions for payment to a specific holder at time of requested disbursement.

3. The loan repayment agreement will provide that the participant must repay amounts paid under the agreement if applied to ineligible purposes.

D. Prioritization of Applicants

1. The Authority will prioritize the applications received for loan repayment. The Authority may consider each of the following criteria when determining which applicant(s) receive(s) a loan repayment agreement:

a. Access to health care for the population where the health care provider intends to practice, such as number of vacancies within a local provider system; timeliness of appointments; and whether they or their employer accept Medicaid;

b Monthly student debt obligation payment as a percentage of gross monthly income;

c. Need for specific health care practitioners in a given employment region as determined by measures such as available state or industry labor data and other information related to vacancy rates or professions needed most in the area in order to maintain access to the most critical services;

d. Workforce needs of Maine health care providers, with special emphasis on the following occupations:

Nurses

Occupational Therapists

Certified Occupational Therapy Assistants

Physical Therapists

Speech Therapists

Behavioral health care workers, including, but not limited to, applied behavioral analysts and board certified behavior analysts, as well as Licensed Clinical Professional Counselors

Licensed Clinical Social Workers

Dental Hygienists

Dental Therapists

Medical assistants

Pharmacists

Health Care Technicians, including, but not limited to, respiratory therapists, surgical technicians, and imaging technicians such as MRI technicians and Ultrasonographers

2. Final determinations will be made by the chief executive officer.

E. Disbursement from the Fund: Upon approval of an application, the Authority shall determine the amount to be disbursed from the fund directly to the borrower’s loan holder/servicer.

F. Breach of Loan Repayment Agreement

1. If a program participant fails to complete the required period of service under a loan repayment agreement, the Authority may terminate the loan repayment agreement and award any remaining funds under another loan repayment agreement with another eligible applicant.

2. In the event that an employer chooses not to renew the contract and/or employment of any individual receiving loan repayment, the Authority is not under any obligation to locate another employer which will accept the individual. The loan repayment agreement will terminate and the Authority may offer the funds available to eligible applicants. The loan repayment recipient may reapply for loan repayment at another employer.

SECTION 3. PROGRAM TERMINATION

The program terminates when the funds allocated pursuant to P.L. 2021, Ch. 483 (Part H), to the Fund are fully expended or by December 31, 2024, whichever occurs first, unless other funding is made available to carry out the purpose of the program.

SECTION 4. ADMINISTRATIVE COSTS

The Authority’s costs and expenses of maintaining, servicing and administering the Maine fund and of administering the program may be paid out of amounts in the fund.

SECTION 5. WAIVER OF RULE

The chief executive officer may waive any requirement of this rule, except to the extent that the requirement is mandated by the governing program statute, in cases where the deviation from the rule is insubstantial and is not contrary to the purposes of the program.

History

• STATUTORY AUTHORITY: P.L. 2021, Ch. 483 (Part H)
• EFFECTIVE DATE: March 29, 2022 – filing 2022-043 (New)

Chapter 801 Supplemental Education Loan Program Rule

Code Me. R. 94-457 Ch. 801 Supplemental Education Loan Program Rules {#sec-94-457-ch.-801 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 801}

(APA Office Note: this chapter has been relocated from the former Maine Educational Loan Authority to the Finance Authority of Maine; see 20-A MRS §11414 et seq.)

SUMMARY: The Maine Educational Loan Program provides a limited amount of supplemental education loan funds to finance the costs of attendance at institutions of higher education. The funds are provided through the issuance of the Authority's bonds or obligations, interest on which may be excludable from gross income under Federal law and taxable income under Maine law. This rule establishes basic eligibility criteria for the Authority's supplemental education loan program. The basic criteria include significant application requirements, credit evaluation standards and loan charges. The Rule establishes ways in which loans may be made and serviced.

1. Supplemental Education Loans

The Authority will originate or purchase a supplemental education loan to an eligible borrower provided that the following requirements or limitations shall have been satisfied:

A. Eligible Students and Borrowers (§2),

B. Eligible Schools (§3),

C. Credit Underwriting (§4),

D. Loan Amounts (§5),

E. Finance Charges (§6),

F. Repayment Terms (§7), and

G. Any other Requirements in accordance with law.

2. Eligible Students and Borrowers

A. A loan shall be made to or for the benefit of a student enrolled at an eligible school at the time the loan proceeds are disbursed to finance the cost of attendance for one (1) academic year or any part thereof. A statement of enrollment provided to the Authority from the school prior to disbursement of loan proceeds shall be evidence of enrollment for the semester, trimester or other academic period stated, provided that the Authority may require additional statements for any person. In addition, the school shall provide a statement of the cost of attendance less any financial aid awards known to the school and less any tuition prepayments. "Cost of Attendance" means the tuition and fees applicable to a student, together with an estimate of other expenses reasonably related to cost of attendance at an institution, including, without limitation, the cost of room and board, housing and food, transportation, books, supplies and the loan guarantee fee paid when the supplemental loan is originated.

B. An eligible student is one who is either (i) a resident of the State and attending an eligible school, (ii) not a resident of the State and attending an eligible school in the State, or (iii) any other student to whom the Authority is permitted by law to make a loan, including an existing FAME borrower.

C. An eligible borrower is any one or more of the following persons who has agreed to repay a supplemental loan:

(i) An eligible student, or

(ii) A parent, guardian or spouse of an eligible student (each a “co-borrower”).

Provided that an eligible borrower shall also include any guarantor or co-signor (each a “co-signor”) with respect to the eligible loan where the context may so require.

3. Eligible Schools

An eligible school is any public or private educational institution in the United States and Canada determined by the Executive Director of the Authority to meet the following criteria:

A. It provides a program of education beyond the high school level;

B. It awards an associate, bachelors or advanced degree;

C. It is an accredited institution; and

D. It is an eligible institution under Title IV of the Higher Education Act of 1965 .

4. Credit Underwriting

In order to determine an applicant's capability to repay a supplemental loan, the applicant's total debt, including installment, revolving and mortgage debt and the supplemental loan, shall be reviewed. In addition, the following requirements are applicable:

A. Credit bureau reports obtained from a nationally recognized credit bureau for each applicant, including the student borrower.

B. Minimum two (2) year credit history and three trade lines for all co-borrowers and co‑signors, or student if applying alone.

C. No record of a paid or unpaid charged off account greater than $250 within the past two (2) years.

D. No record of a foreclosure, repossession, open judgment or suit, paid or unpaid tax lien, prior educational loan default or other negative public record items in the past seven years (exceptions may be granted where the applicant provides written documentation demonstrating the obligation has been paid).

E. No record of a bankruptcy in the past seven (7) years (exceptions may be granted where the Applicant provides written documentation demonstrating the circumstances leading up to the bankruptcy were beyond his/her control. Examples - large medical expenses, unemployment due to being laid off or disabled, etc.).

F. Debt/income ratio not to exceed fifty (50) percent and minimum income of at least $1,667 for the applicants for a loan as a group when more than one co-borrower or co‑signor exists. Debt is defined as monthly installment, revolving and mortgage payments. Income is gross monthly income for calculation purposes (income must be at least $20,000 on an annual basis). The debt/income ratio and minimum income threshold may be modified by the Authority from time to time, based upon current market conditions.

G. Additional underwriting criteria to be determined by the Authority based on credit scores obtained from a nationally recognized credit bureau.

H. Except as otherwise specifically allowed above, documented exceptions to any of the criteria set forth in (A) through (G) above may be made but only in accordance with the Lender’s customary credit policies for consumer loans, and only if the underwriter of credit signs off on the loan.

I. At least one of the borrowers must be a U.S. citizen or certified Permanent Resident of the United States. A non-citizen applicant must submit a valid Form I-551 Alien Registration Receipt Card with the application. All borrowers must have a valid U.S. Social Security number.

5. Loan Amounts

With respect to any one student, the maximum amount of a supplemental loan shall be the cost of education less any Financial Aid received for the academic period. The minimum loan amount per student will be $1,000.00 per year. The minimum monthly payment, when principal is due, shall be at least $50.00. No loan proceeds will be disbursed for any semester, trimester or other academic period until proof of enrollment for such period is provided.

6. Finance Charges

A. The finance charges on the supplemental loan may include a variable interest rate based on the Authority's cost of financing, which shall be as set forth in the form of note presently approved, including interest on Authority obligations plus a spread to cover the Authority's costs of credit enhancement, loan servicing, loan origination, administration and other related costs of the Authority's obligations and the supplemental loan program. The supplemental loan documents may provide that, if a loan is purchased by a loan guarantor selected by the Authority, if none of the Authority's obligations, proceeds of which were used to fund the supplemental loan, are outstanding or if there is no interest rate established for such obligations, the interest rate on the loan will be equal to a rate not more than the one year Treasury constant maturity immediately preceding each June 1, provided that in all such cases, the interest rate shall not exceed the maximum rate allowable by law.

B. The finance charges on the supplemental loan may include a fixed interest rate, which shall be set forth in the form of note presently approved. The fixed interest rate shall be determined in accordance with the financing documents associated with the proceeds of the Authority’s bonds or other obligations used to fund each loan. The fixed interest rate cannot be increased at any time over the life of each individual loan.

C. A borrower may be assessed a loan guarantee fee. The guarantee fee shall not exceed an amount equal to six (6) percent of the principal amount of the supplemental loan. The guarantee fee assessed will be added to the principal balance of the loan at the time of disbursement.

7. Repayment Terms

A. There will be no penalty for or prohibition of prepayment of any or all amounts due under a borrower's supplemental loan documents. Any prepayment shall be applied in order of the dates such principal is due.

B. Principal shall be amortized at varying maturities not to exceed twenty (20) years in accordance with a schedule established by the Authority to provide for payment of its obligations. The term of repayment, which shall be set forth in the form of the note, will be determined in accordance with the financing documents associated with the proceeds of the Authority’s bonds or other obligations used to fund each loan.

C. Borrower repayment options include:

Immediate Repayment. A borrower may elect to begin regular payments of principal and interest.

Interest Only Repayment. At the option of the borrower, repayment of principal may be deferred while the student is continuously enrolled on at least a half-time basis and for up to six (6) months after the date the student is no longer enrolled on at least a half-time basis.

Deferment of Principal and Interest. At the option of the borrower, repayment of principal and interest may be deferred while the student is continuously enrolled on at least a half-time basis and for up to six (6) months after the date the student is no longer enrolled on at least a half-time basis. Unpaid interest will be capitalized when the loan enters repayment.

D. The notes shall provide that the supplemental loans will be amortized and payments on the notes made on a monthly basis. The principal amount of any supplemental loan will be amortized on a level debt service basis over not more than 240 months, commencing, at the option of the borrower, within fifty-one (51) days of the date of disbursement of the supplemental loan or within six (6) months of the borrower's termination of enrollment or graduation. Each year with respect to each supplemental loan with a variable interest rate, the amount of the monthly payment will be recalculated based on the interest rate then in effect, and the note will be reamortized on a level debt service basis over the remaining life of the loan.

8. Forbearance

If the borrower is unable to make regular principal and interest payments, the Authority may suspend principal payments under certain circumstances for a limited amount of time. Forbearance may be granted in accordance with the following standards:

A. Forbearance will grant extension of the principal payment only. One of the following two definitions would apply to the condition or status of a loan in forbearance:

(i) The borrower pays the interest each month. This option would be offered to the borrower as the first remedy for a delinquency. The borrower would be eligible for a total of twelve (12) months of reduced payments. This would be granted in increments of six (6) months.

(ii) The borrower pays no interest during this period of forbearance. The interest that accrues is capitalized at the end of the forbearance period. This option would be made available to borrowers as a last attempt to prevent default.

B. The borrower may request a reduced payment amount during or prior to their account becoming delinquent.

C. Borrowers who have already received twelve (12) months of forbearance will not be eligible for additional forbearances, provided, however, that in certain cases of extenuating circumstances, the Authority, in its discretion and in accordance with any applicable financing documents, may grant an administrative forbearance for an additional time period.

D. The borrower will be billed monthly during the forbearance period.

E. The borrower’s account will appear to be in repayment during the interest only forbearance period. If payments are not made, then due diligence and collection activity will begin.

F. The Authority will be notified if the borrower becomes delinquent and reaches sixty (60) days of non-payment. This notification will be included in the Pre-Claims Assistance notice sent to the Authority.

G. If there is more than one "borrower," payment of the regular monthly installment will be sought from both or all of them before forbearance is granted.

H. Forbearance may be granted in the following situations:

(i) Unemployment

In requesting an unemployment forbearance, the borrower must provide the Authority with a written statement that he/she is actively seeking employment and verification that he/she is registered with at least one employment agency. A borrower cannot continue under this agreement if he/she is offered employment and rejects the offer as being unsuitable to his/her particular education or experience. A borrower will be considered automatically in default if he/she fails to accept such employment, fails to provide the Authority with the statement and verification described above, or knowingly misinforms the Authority of employment status.

(ii) Partial Disability

Partial disability forbearance may be granted if the borrower provides the Authority with a signed opinion from a licensed medical doctor, either his/her regular internist or a specialist in the field of his/her disability, that the borrower is unable to work. If the borrower fails to provide all the information requested by the Authority, or knowingly misinforms the Authority regarding his/her disability or secures the required medical opinion through fraudulent means, the borrower will be considered in default.

(iii) Non‑Delinquency Defaults

Borrower's failure to advise the Authority in a timely manner of changes in enrollment status shall be a default under the supplemental loan. The Authority may grant forbearance in this circumstance if satisfied that the failure was an oversight and not an act of willful deception.

(iv) Delinquency

The Authority will act in delinquency situations on the merits and problems of each individual case.

Active Duty

In requesting an active duty forbearance, the borrower must provide the Authority with a written statement that he/she is actively enlisted in the military and verification of the active duty assignment begin and end dates.

(vi) The Authority may, at its discretion, grant forbearance for reasons that are not described in this section subject to the approval of any bond insurer on that particular loan.

9. School Notification and Refund Requirements

The school must report to the Authority, on a timely basis, the student's early termination from the school or any drop in enrollment status that would warrant a refund. The amount of the refund, if any, will be determined by the school's stated refund policy for the period of time the student actually attended. The note shall provide that any refund shall be forwarded to the Authority along with notification to the student on whose behalf the loan was made.

10. Loan Consolidation

Consolidation of loans usually results in lower payments, thus making it easier for borrowers to meet their obligations. Any consolidation loan request shall be treated as a new credit request. The following guidelines must be followed:

A. The loans must be of the same type (i.e. qualified supplemental education loans).

B. Borrower(s) must be U.S. citizen or certified Permanent Resident of the United States. A non-citizen applicant must submit a valid Form I-551 Alien Registration Receipt Card with the consolidation application. All borrowers must have a valid U.S. Social Security number.

C. Borrower must be an existing FAME borrower. FAME may, in its discretion, offer a consolidation loan to non-FAME borrowers who either: (1) are a Maine resident; or (2) have attended an approved Maine educational institution. Student’s last school of attendance must be an approved FAME school.

D. All loans being consolidated must be fully disbursed and in repayment or grace status.

E. Loans which are thirty (30) or less days delinquent may be consolidated. Loans which are between thirty-one (31) and sixty (60) days delinquent may be consolidated if FAME reasonably believes the borrower has the willingness and ability to make the payments on the new consolidation loan because of the new lower payments. Written documentation must be included in the new loan file stating the specific reasons why the loan should be consolidated, as well as written documentation from the borrower(s) that he/she has the capacity to make payments on the new loan. No loans which are sixty-one (61) or more days delinquent may be consolidated.

F. Loans being consolidated must have a minimum aggregate balance of at least $10,000 and cannot exceed an aggregate balance of $100,000 for non-FAME loans.

G. Borrower(s) must provide the following documentation: proof of income substantiating the income listed on the application; proof of identity (i.e. copy of driver’s license, state ID card, etc.); and a copy of the most recent loan statements for the loans being consolidated.

H. The accrued interest of the underlying loans shall be capitalized with the consolidation loan.

The underwriting criteria for establishing the eligibility of loans to be consolidated shall be as follows:

1. Credit bureau reports obtained from a nationally recognized credit bureau for each applicant.
2. Minimum two (2) year credit history and three trade lines for the eligible borrower.
3. No record of a paid or unpaid charged off account greater than $250 within the past two (2) years.
4. No record of a foreclosure, repossession, open judgment or suit, paid or unpaid tax lien, prior educational loan default or other negative public record items in the past seven years (exceptions may be granted where Applicant provides written documentation demonstrating the obligation has been paid and the circumstances surrounding the negative public record no longer exists).
5. No record of a bankruptcy in the past seven (7) years (exceptions may be granted where the Applicant provides written documentation demonstrating the circumstances leading up to the bankruptcy were beyond his/her control. Examples – large medical expenses, unemployment due to being laid off or disabled, etc.).
6. Debt/income ratio not to exceed fifty (50) percent and minimum income of at least $2,500 for the applicants for a loan as a group. Debt is defined as monthly installment, revolving and mortgage payments. Income is verified gross monthly income for calculation purposes (income must be at least $30,000 on an annual basis). The debt/income ratio and minimum income threshold may be modified by the Authority from time to time, based upon current market conditions.

(vii) Additional underwriting criteria to be determined by the Authority based on credit scores obtained from a nationally recognized credit bureau.

J. Finance Charges

The finance charges on the supplemental consolidation loan may include a variable interest rate based on the Authority’s cost of financing, which shall be as set forth in the form of note presently approved, including interest on Authority obligations plus a spread to cover the Authority’s costs of credit enhancement, loan servicing, loan origination, administration and other related costs of the Authority’s obligations and the supplemental consolidation loan program. The supplemental consolidation loan documents may provide that if none of the Authority’s obligations, proceeds of which were used to fund the supplemental consolidation loan, are outstanding or if there is no interest rate established for such obligations, the interest rate on the loan will be equal to a rate not more than the one year Treasury constant maturity immediately preceding each June 1, provided that in all such cases, the interest rate shall not exceed the maximum rate allowed by law.

The finance charges on the supplemental consolidation loan may include a fixed interest rate, which shall be set forth in the form of note presently approved, determined in accordance with the financing documents associated with the proceeds from the Authority’s bonds or other obligations used to fund each loan. The fixed interest rate cannot be increased at any time over the life of the loan.

A borrower may be assessed a loan guarantee fee. The guarantee fee shall not exceed an amount equal to six (6) percent of the principal amount of the supplemental consolidation loan. The guarantee fee assessed will be added to the principal balance of the loan at the time of disbursement.

K. Repayment Terms

There will be no penalty for or prohibition of prepayment of any or all amounts due under a borrower's supplemental consolidation loan documents. Any prepayment shall be applied in order of the dates such principal is due.

Principal shall be amortized at varying maturities not to exceed thirty (30) years in accordance with a schedule established by the Authority to provide for payment of its obligations. The term of repayment, which shall be set forth in the form of the note, will be determined in accordance with the financing documents associated with the proceeds from the Authority’s bonds or other obligations used to fund each loan.

(iii) The notes shall provide that the supplemental consolidation loans will be amortized and payments on the notes made on a monthly basis. The principal amount of any supplemental consolidation loan will be amortized on a level debt service basis over not more than 360 months, commencing within fifty‑one (51) days of the date of disbursement of the supplemental consolidation loan. Each year with respect to each supplemental consolidation loan with a variable interest rate, the amount of the monthly payment will be recalculated based on the interest rate then in effect, and the note will be reamortized on a level debt service basis over the remaining life of the loan.

11. Medical Loan Program

A Medical Loan has been developed to offer medical students access to low cost educational financing for their medical program. The FAME rules and guidelines as stated above are reflective of the rules and guidelines established for the medical loan program except as noted below:

A. Eligible Student Borrower

A student borrower will be eligible for a medical loan if they have met the credit underwriting requirements for the Authority’s supplemental loan program described in section 4. above, excluding paragraph 4. F. If a student borrower does not meet the eligibility requirements then they will be required to obtain a co-borrower(s). Underwriting criteria will then be the same as the FAME supplemental loan program described in section 4. above.

B. Repayment Terms

(i) There will be no penalty for or prohibition of prepayment of any or all amounts due under a borrower’s supplemental loan documents. Any prepayment shall be applied in order of the dates such principal is due.

(ii) Principal shall be amortized at varying maturities not to exceed twenty-five (25) years after entering repayment, in accordance with a schedule established by the Authority to provide for payment of its obligations. The term of repayment, which shall be set forth in the form of the note, will be determined in accordance with the financing documents associated with the proceeds from the Authority’s bonds or other obligations used to fund each loan.

(iii) Borrower repayment options include:

Immediate Repayment. A borrower may elect to begin regular payments of principal and interest.

Interest Only Repayment. At the option of the borrower, repayment of principal may be deferred for up to six (6) months after graduation and/or residency. The program also allows for a residency deferment of up to four (4) years.

Deferment of Principal and Interest. At the option of the borrower, repayment of principal and interest may be deferred for up to six (6) months after graduation and/or residency. The program also allows for a residency deferment of up to four (4) years. Unpaid interest will be capitalized when the loan enters repayment.

(iv) The notes shall provide that the medical loans will be amortized and payments on the notes made on a monthly basis once the borrower has entered repayment. The principal amount of any medical loan will be amortized over not more than 300 months, when the borrower enters repayment. Each year with respect to each medical loan with a variable interest rate, the amount of the monthly payment will be recalculated based on the interest rate then in effect, and the note will be reamortized on a level debt service basis over the remaining life of the loan.

12. Program Implementation

The Authority may retain such originators, servicers, trustees, custodians, attorneys, accountants, consultants, and others as are necessary to implement the supplemental loan program.

13. Federal Bond Ceiling

Any allocation of federal bond ceiling to the Authority shall be applied or carried forward first for student loan programs of the Authority and secondary markets and second for programs of other issuers.

History

• STATUTORY AUTHORITY: 20‑A MRSA §11417(1)(N)
• STATUTORY AUTHORITY: Under the Maine Educational Loan Authority (MELA):
• EFFECTIVE DATE: August 13, 1988
• AMENDED: March 19, 1991 - Section 4(B)
• AMENDED: March 19, 1991 - Section 6(A)
• AMENDED: March 19, 1991 - Section 7(D)
• AMENDED: June 17, 1997 - Section 4
• AMENDED: November 27, 1999 - Section 11
• NON-SUBSTANTIVE CORRECTION: March 14, 2000 - unit number and chapter title
• AMENDED: December 27, 2003 - Sections 4, 5, 6, 7, 10, 11, filing 2003-475
• AMENDED: December 27, 2005 - most of the chapter, filing 2005-503
• AMENDED: June 25, 2008 - filing 2008-270 (EMERGENCY)
• AMENDED: August 24, 2008 - filing 2008-370
• AMENDED: August 3, 2009 - filing 2009-383
• AMENDED: July 11, 2010 - filing 2010-284
• AMENDED: July 5, 2014 - filing 2014-135
• AMENDED: In 2015, MELA was repealed and its responsibilities absorbed by the Finance Authority of Maine (FAME) - see 20‑A MRS §11414 et seq. This chapter was subsequently renumbered as 94-457 CMR ch. 801.
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 802 Bylaws Governing the Administration of the Maine Educational Loan Program

Code Me. R. 94-457 Ch. 802 Bylaws Governing the Administration of the Maine Educational Loan Program {#sec-94-457-ch.-802 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 802}

(APA Office Note: this chapter has been relocated from the former Maine Educational Loan Authority to the Finance Authority of Maine; see 20-A MRS §11414 et seq. It will be amended, repealed and replaced, or repealed by FAME when appropriate.)

SUMMARY: This rule establishes the bylaws that govern the administration of the Maine Educational Loan Program, including procedures for the conduct of regular business meetings.

1. NAME, OFFICE, SEAL

A. Name. The official name of the Authority is the Maine Educational Loan Authority.

B. Office. The general office of the Authority shall be at such place or places in the State of Maine as the Members of the Authority may from time to time designate by resolution.

C. Seal. The seal of the Maine Educational Loan Authority shall bear the name of the Authority and shall comply with 20-A M.R.S.A. §11417(1)(M).

2. GOVERNING BODY, OFFICERS, DUTIES

A. Governing Body. The governing body of the Authority shall be its Members, who are qualified and appointed according to the provisions of the Maine Educational Loan Authority Act, 20-A M.R.S.A. c. 417-A, as amended (the "Act").

The Members of the Authority shall have the power and duty to establish and revise, from time to time, rules pertaining to participation in programs of the Authority, issuing bonds and borrowing money by the Authority, a process for allocation and carry forward of that portion of the State of Maine ceiling on issuance of tax-exempt bonds allocated to the Authority pursuant to Title 10, chapter 9, servicing and collection of loans made pursuant to programs of the Authority and other policies governing the operation of the Authority. In addition, the Members of the Authority may, by resolution of the Members, determine that the Authority may borrow money in accordance with any such resolution. All contracts delegating the powers or duties of the Authority to another entity and all contracts for clerical and administrative services require the approval of a majority of the Members of the Authority and must be awarded by a competitive bidding process.

B. Officers

(a) Number and Term. The officers of the Authority shall be a Chair, a Vice Chair and a Secretary-Treasurer. The Chair, Vice Chair and Secretary-Treasurer shall be elected each year, by the Members from among the Members, for a term ending on the date of the next annual meeting; provided that each such term shall continue for such additional period of time until their replacements are duly elected.

(b) Duties. The duties of the officers shall be as follows:

(i) Chair. The Chair shall preside at all meetings of the Members, at which meetings he or she shall have the right to deliberate and vote, and shall perform such other duties as provided in the Act and as designated by resolution of the Members. He or she shall be authorized to sign all orders, contracts and other instruments made by the Authority.

(ii) Vice Chair. The Vice Chair shall have the powers and be charged with the duties of the Chair during the absence or disability of the Chair, or at any time at which the Chair cannot be located. He or she shall have such additional powers and duties as the Members from time to time prescribe by resolution.

(iii) Secretary-Treasurer. The Secretary-Treasurer shall (during the absence or disability of the Executive Director or at any time the Executive Director cannot be located) keep a record of the proceedings of the Authority and shall be custodian of all books, documents and papers filed with the Authority and of the minute book of the Authority and of its official seal. When necessary or required, the Secretary-Treasurer or the Executive Director shall affix the official seal to all orders, contracts and other instruments made by the Authority.

The Secretary-Treasurer shall supervise custody of all funds, properties and securities of the Authority, shall oversee the financial records of the Authority, shall cause such records to be made available to any Member of the Authority at all reasonable times upon reasonable request, and shall in general perform all duties incident to the office of Treasurer, subject to rules and regulations adopted by the Members.

(c) Succession. If the office of the Chair becomes permanently vacant, the Vice Chair shall automatically assume the role of Chair of the Authority until a new election shall be held.

(d) Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Members or these Bylaws or rules and regulations or resolutions of the Members.

(e) Executive Director. The Members shall appoint an Executive Director who shall serve in that capacity at the pleasure of the Members. The Executive Director need not be a full-time employee of the Authority. The Executive Director shall keep a record of the proceedings of the Authority, shall be the custodian of all books, documents and papers filed with the Members of the Authority, the minute book or journal of the Authority and its official seal, and may cause copies to be made of all minutes and other records and documents of the Authority, and may give certificates under the official seal of the Authority to the effect that the copies are true copies, and all persons dealing with the Authority may rely upon said certificates. Except as otherwise authorized by resolution of the Members, the Executive Director may sign orders, contracts and other instruments made by the Authority. All other powers and duties of the Authority, other than those set forth in Subsection A of Section 2 of this rule, shall be vested in the Executive Director who shall carry out such powers and duties in accordance with the Act, the rules of the Authority, the policies governing the operation of the Authority established by the Members, and these Bylaws.

3. MEETINGS

A. Location. All the meetings of the Members shall be held at the principal office of the Authority, or such other place in the State of Maine accessible to the public that is stated in the notice of such meeting.

B. Annual Meeting. An annual meeting of the Members shall be held during the month of September each year.

C. Regular Meetings. Regular meetings of the Members shall be held at such time or times as shall be determined by resolution of the Members. A regular meeting may be adjourned and reconvened on such date and at such place and time as is announced by the Executive Director or Chair at the meeting which is adjourned.

D. Special Meetings. The Chair of the Authority may, when he or she deems it expedient, and shall, upon the request of the Executive Director or any two Members of the Authority, call a special meeting. Notice of such meeting shall be given in accordance with Subsection E of this Section. At such meeting the Members may consider and act on only such matters as were specified in the call. A special meeting may be adjourned and reconvened on such date and at such place and time as is announced by the Executive Director or Chair at the meeting which is adjourned.

E. Notice of Meeting. Notice of all meetings, stating the date, time and place of the meeting, shall be either sent by mail to each Member at such Member's registered address or given directly by oral or telephone communication to each Member at least 5 days prior to the date of the meeting. Public notice of all meetings shall be published, at least 5 days prior to the meeting except in the case of an emergency meeting, in accordance with the standards for public proceedings under 1 M.R.S.A. §406. Such notice shall also be posted at the principal office of the Authority, or at such other places or in such manner as the Executive Director or Chair deems reasonable under the circumstances. Notice of the date, time and place for reconvening an adjourned meeting shall be by oral announcement at the meeting which is adjourned, with appropriate notice to the public.

F. Quorum. At any meeting of the Members, four (4) voting Members shall constitute a quorum for the purpose of conducting business, exercising its powers and taking any action. Members constituting a quorum shall include those physically present at the meeting and those participating in the meeting by conference communications pursuant to Subsection H of this Section. Action may be taken by the Members upon the affirmative vote of a majority of the voting Members present. No vacancy in the Membership of the Authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the Members of the Authority.

G. Manner of Voting. Voting on all questions at meetings of the Members shall be by voice vote, and the yeas, nays, and abstentions shall be entered upon the minutes of such meeting. On certain matters before the Authority, any member may elect at such time as is appropriate to recuse himself or herself.

H. Attendance by Conference Communications. Unless otherwise restricted by law, Members of the Authority, or members of any committee designated by the Authority, may participate in a meeting of the Authority or such committee by means of conference telephone, video conferencing, interactive television, computer technology or similar communications equipment by means of which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

4. FISCAL YEAR

The fiscal year of the Authority shall commence January 1 of each calendar year and conclude December 31 of the same calendar year. The first fiscal year of the Authority, however, commenced on April 28, 1988.

5. RULES, REGULATIONS, PROCEDURES

The Members may, in accordance with the Maine Administrative Procedure Act and other applicable provisions of law, adopt a Code of Ethics and such regulations, rules and procedures as needed to carry out the provisions of the Act.

6. COMMITTEES

A. Designation, Power, Terms of Office and Alternate Members

(a) The Members may from time to time establish ad hoc or standing committees for any appropriate purpose, by resolution passed by a majority of the Members of the Authority. The Authority shall appoint such persons, whether or not Members of the Authority, to serve as members of such committees, such service to be at the pleasure of the Authority. Any such committee, to the extent provided in such resolution, shall have and may exercise such powers and authority the delegation of which is permitted by law. The term of office of the members of each committee shall be as fixed from time to time by the Members, subject to these By-laws; provided, however, that any committee member who ceases to be a member of the Authority shall ipso facto cease to be a committee member. Each committee shall appoint a secretary and shall keep regular minutes of its proceedings and report the same to the Members of the Authority.

(b) The Members may designate one or more persons as alternate members of any committee who, as provided in such resolution, may replace any absent or disqualified member at any meeting of the committee. If at a meeting of any committee one or more of the members thereof should be absent or disqualified, any alternate member or members may act at the meeting in the place of any such absent or disqualified member.

B. Meetings, Notices and Records. Each committee may provide for the holding of regular meetings, with notice, and may fix the times and places at which such meetings shall be held. Special meetings of each committee may be called by or at the direction of its chairperson or, if there be no chairperson, by or at the direction of any one of its members. Notice of each special meeting of a committee, stating the date, time and place of the meeting, shall be mailed to each member of such committee and the Executive Director, addressed to him or her at his or her residence or usual place of business, at least five days 5 days prior to the date of the meeting, or given directly by oral or telephone communication to each member and the Executive Director at least 5 days prior to the date of the meeting. Public notice of all meetings shall be published, at least 5 days prior to the meeting except in the case of an emergency meeting, in accordance with the standards for public proceedings under 1 M.R.S.A. §406.

Notice of any meeting of a committee need not be given to any member who shall attend such meeting in person or who shall waive notice thereof, before or after such meeting, in a signed writing. Each committee shall keep a record of its proceedings.

C. Quorum and Manner of Acting. At each meeting of any committee the presence of a majority of its members then in office shall be necessary and sufficient to constitute a quorum for the transaction of business, except that when a committee consists of one member, then the one member shall constitute a quorum. In the absence of a quorum, a majority of the members present at the time and place of any meeting may adjourn the meeting from time to time until a quorum shall be present and the meeting may be held as adjourned without further notice or waiver. The act of a majority of the members present at any meeting at which a quorum is present shall be the act of such committee. Subject to the foregoing and other provisions of these By-laws and except as otherwise determined by the Members of the Authority, each committee may make rules for the conduct of its business.

D. Removal and Resignation. Any member of any committee may be removed with or without cause at any time by a majority vote of the Members of the Authority. Any member of a committee may resign at any time by giving written notice of such resignation to the Executive Director or the Chair or the Vice Chair of the Authority. Unless otherwise specified in such notice, such resignation shall take effect upon receipt thereof, and the acceptance of such resignation shall not be necessary to make it effective.

E. Vacancies. If any vacancy shall occur in any committee by reason of death, resignation, disqualification, removal or otherwise, the remaining member or members of such committee, so long as a quorum is present, may continue to act until such vacancy is filled by the Members of the Authority.

7. COMPENSATION, CONTRACTS FOR SERVICES

A. Compensation. Each Member of the Authority shall be compensated by the Authority in accordance with Title 5 M.R.S.A, Chapter 379. The Executive Director shall receive such compensation as fixed by the Members.

B. Clerical and Administrative Services. In accordance with Section 11417(4) of the Act, the Authority shall, whenever determined desirable by the Members, enter into contracts for necessary clerical and administrative services in accordance with any rule for competitive bidding adopted by the Authority.

History

• STATUTORY AUTHORITY: 20-A M.R.S.A. §11417(1)(N)
• STATUTORY AUTHORITY: Under the Maine Educational Loan Authority (MELA):
• EFFECTIVE DATE: September 11, 2001
• AMENDED: December 27, 2003 - filing 2003-476
• AMENDED: In 2015, MELA was repealed and its responsibilities absorbed by the Finance Authority of Maine (FAME) - see 20‑A MRS §11414 et seq. This chapter was subsequently renumbered as 94-457 CMR ch. 802.
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 803 Rules for the Award of Contracts for Services

Code Me. R. 94-457 Ch. 803 Rules for the Award of Contracts for Services {#sec-94-457-ch.-803 omnilex-key=us-me-regs-official--dept-independent-agencies--94-457 Ch. 803}

(APA Office Note: this chapter has been relocated from the former Maine Educational Loan Authority to the Finance Authority of Maine; see 20-A MRS §11414 et seq. It will be amended, repealed and replaced, or repealed by FAME when appropriate.)

SUMMARY: This chapter outlines the procedures to be used in the awarding of contracts for necessary clerical and administrative services, loan servicing and other substantial operating contracts pursuant to 20-A M.R.S.A. §§ 11417(4) and 11417(7). In addition, this chapter outlines the policies and procedures to be used in the selection of vendors designed to ensure that the Authority secures the best value in its procurements in compliance with 5 M.R.S.A., chapter 379, subchapter 3, §12022-3.

PROCEDURES PURSUANT TO 20-A M.R.S.A. §§ 11417(4) and 11417(7)

1. DEFINITIONS

A. REQUEST FOR PROPOSAL. Means a document listing the scope of work, requirements of the Authority and all evaluation criteria for services needed by the Authority. This document is also known by the initials “RFP.”

B. CONTRACT REVIEW COMMITTEE. Means the committee established by the Authority that reviews proposals and actions related to contracts for clerical and administrative services, loan servicing and other substantial operating contracts.

C. CONTRACT. Means the agreement between a vendor and the Authority describing the services to be performed, the terms and conditions agreed to by the parties, the cost of the services and how payment will be made.

D. GRANT. Means an agreement between a group, organization or other recipient and the Authority that describes terms and conditions and scope of performance or action that is expected of the recipient.

2. Request for proposal procedure

A. All contracts issued under the review of the Contract Review Committee that do not qualify as sole source or emergency procurements must be competitively bid using the Request for Proposal. When determining whether or not a contract qualifies as a sole source or emergency procurement, the Authority will use the State of Maine policy and guidelines for sole source justification for guidance.

i. The request for proposal must contain at a minimum a clear definition (scope) of the project, the evaluation criteria and relative scoring weights to be applied, the proposal opening date and time, and agency contact person.

aa. Cost of the contract must be included in the evaluation criteria and must receive a minimum of 25% of the total weight of all criteria.

bb. All proposals shall be opened publicly at the Authority main office or the location specified in the RFP. Proposals received at the Authority main office after the advertised opening time shall be rejected, unless the advertised opening date and time have been extended by the Executive Director of the Authority due to circumstances requiring such an extension of time.

ii. Request for proposals must be submitted to the Contract Review Committee for review prior to release. Review includes, but is not limited to appropriateness of scope and clearly defined evaluation criteria with cost at a minimum of 25%.

iii. Request for proposals must be advertised a minimum of three consecutive days in the Kennebec Journal of Augusta, allowing a minimum of fifteen (15) calendar days from the final day of advertising to the proposal opening date. This section does not limit advertising in any other publication, trade publication or other media.

aa. Advertisements must include at a minimum a brief description of the service requirements of the Authority, the name of the contact person and address where copies of the RFP can be obtained, the opening date, the opening time and the opening location.

iv. Pre-Bidders conferences are allowed, but are not required. These conferences are used to be certain that all bidders have an equal understanding of the Authority requirements.

aa. Pre-Bidders conferences must be advertised within the RFP advertisement, including location, day and time. Conferences must be scheduled a minimum of seven (7) calendar days from the final day of advertising and minimum of two weeks prior to proposal opening date. The Executive Director may authorize a pre-bidders conference on shorter notice than previously advertised. The Executive Director shall notify all prospective bidders who requested the RFP of the date and time of the conference under these circumstances.

bb. Conferences must be open to the public, questions raised must be documented in writing and responses must be written and forwarded to each prospective bidder who received an RFP, whether in attendance or not.

cc. No alterations or changes to any requirement or specification within the original RFP can be made without notifying all bidders in writing a minimum of seven (7) calendar days before opening date.

v. Proposals shall be opened publicly at the office of the Authority or a location specified in the RFP. The opening of proposals shall be open to public attendance. The name of the respondent will be read aloud. No other information will be made available prior to evaluation and award notification. All proposals shall be sequestered from this time until notification of award by the contracting agency after which time they become public records.

Proposals received at the office of the Authority later than the date and time specified will not be accepted and will be returned unopened or held to be picked up by the Respondent. Late proposals not picked up within seven (7) calendar days will be destroyed.

vi. A written record of the vendor names, date and time received, and cost/price shall be kept at the office of the Authority after opening.

3. AWARD

A. The Contract Review Committee is responsible for reviewing all proposals based on the criteria established within the original Request for Proposal document. The Committee shall document scoring, substantive information that supports the scoring, and make the award decision, which shall be subject to approval by Authority members at a general meeting.

i. Interviews/Presentations: Interviews and/or presentations may be considered within the review for information and scoring, if that provision was included within the original RFP documentation.

ii. Pricing/Negotiations: Pricing changes, alterations or negotiations are not allowed prior to the award decision and must not be used in scoring. Minor negotiations after notice of award are allowed and if agreement cannot be reached, the proposal may be rejected and the award made to the next highest rated bidder who was in compliance with all terms, conditions and requirements.

iii. Documentation: Written records must be kept by each person reviewing or ranking proposals. These records must be made available upon request.

iv. Award: Award must be made to the highest rated proposal that conforms to the requirements of the Authority as contained in the RFP.

v. Proposed Award Decision Notification: The Authority must notify all bidders responding to an RFP of the award decision in writing, postmarked or delivered a minimum of fourteen (14) calendar days prior to contract effective date. This notice must include a statement that the award is conditional pending approval by the Authority at a general meeting.

B. Upon final approval by the Authority, the Chairman of the Authority shall affix an original signature to the contract, in duplicate, keeping one of the originals and mailing the second to the vendor who has been awarded the contract.

i. Contracts are not considered fully executed and valid before completing final approval by the Authority at a public meeting. No contract will be approved based on an RFP that has an effective date less than fourteen (14) calendar days after award notification to bidders.

ii. Attorney General approval is not required. Nothing within this paragraph prevents request for Attorney General review of any contract.

4. APPEAL

A. Any person who has submitted a proposal in response to an RFP and was not awarded the contract has the right to appeal the award. The appeals procedure to be followed is set forth in Chapter 120, Rules for Appeal of Contract and Grant Awards for the Department of Administrative and Financial Services, Bureau of General Services, Division of Purchases.

---

PROCEDURES PURSUANT TO 5 M.R.S.A., chapter 379, subchapter 3, §12022-3

1. DEFINITIONS

COMPETITIVE PROCUREMENT. Means the transmission of a written request for proposal, written request for qualifications or other invitation to compete on price or qualifications to at least three (3) responsible suppliers that is to be replied to at a stated time.

REQUEST FOR PROPOSAL. Means a document listing the scope of work, requirements of the Authority and all evaluation criteria for services needed by the Authority. This document may also be referred to as a request for qualifications or other invitation to compete on price or qualifications. The request for proposal document is also known by the initials “RFP.”

REVIEW COMMITTEE. Means the committee established by the Authority that reviews proposals generated through the competitive procurement process.

CONTRACT. Means the agreement between the vendor and the Authority describing the services to be performed, the terms and conditions agreed to by the parties, the cost of the services and how payment will be made.

2. REQUEST FOR COMPETITIVE PROCUREMENT PROCEDURE

A. All contracts issued by the Authority that are not for necessary clerical and administrative services, loan servicing and other substantial operating contracts must be bid on through a competitive procurement process utilizing the following procedures.

i. The request for proposal must contain at a minimum a clear definition (scope) of the project, the evaluation criteria, relative scoring weights to be applied, the deadline for receipt of proposals and the agency contact person.

aa. Cost of the contract must be included in the evaluation criteria and must receive a minimum of 25% of the total weight of all criteria.

bb. The request for proposal must be sent to at least three (3) responsible suppliers.

cc. No alterations or changes to any requirement or specification within the original RFP can be made without notifying all bidders in writing a minimum of seven (7) calendar days before the deadline for receiving proposals.

dd. All bidders will have the opportunity to make inquiries about the RFP or request additional information about the Authority by an established deadline set forth in the RFP. All questions and the Authority’s response to the questions will be distributed to all bidders by an established deadline set forth in the RFP.

ee. Proposals received after the deadline will be rejected, without exception.

ff. The Review Committee is responsible for reviewing all proposals based on the criteria established within the RFP. The Committee shall document scoring, substantive information that supports the scoring, and make the award decision which shall be subject to approval by Authority members at a general meeting. The award must be made to the highest rated proposal that conforms to the requirements of the Authority contained within the RFP.

gg. Written records must be kept by each person reviewing or evaluating the proposals. These records must be made available upon request.

3. CONDITIONS UNDER WHICH COMPETITIVE PROCUREMENT MAY BE WAIVED

A. All contracts issued by the Authority that are not bid on through a competitive procurement process must be justified by one of the following.

i. The services required are unique to a specific vendor. If the vendor has unique expertise, that expertise and the necessity of it must be described.

ii. Time is of the essence and only one known source can meet the Authority’s needs within the required timeframe. The timeframe must be explained in terms of how it was determined, its significance and the impact of the delay.

iii. The total cost of the acquisition is less than $10,000.

B. When a recommendation is made by the Executive Director of the Authority to award a contract without engaging in the competitive procurement process under Sections A.i. and A.ii., the Authority must approve this recommendation at a general meeting.

4. RECORD KEEPING FOR PROCUREMENTS NOT COMPETITIVELY PROCURED

A. For procurements not competitively procured exceeding $10,000, written justification prepared by the Executive Director of the Authority and approved by the Authority will be maintained on file for five (5) years. Evidence of approval by the Authority will be the minutes from a general meeting where the approval was voted on.

5. REPORTING REQUIREMENTS

The Authority will submit an annual report to the Legislature (Clerk of the House, the Secretary of the Senate, and the Executive Director of the Legislative Council) in a manner determined by the Executive Director of the Legislative Council, with the first report due by February 1, 2014. The annual report will include a list of all procurements exceeding $10,000 in the preceding year for which competitive procurement was waived under the policies adopted pursuant to §12022-3, including procurements exceeding $10,000 that were made under contracts previously entered into for which competitive procurement was not required. The list must include the names of the vendors and cost associated with those procurements.

History

• STATUTORY AUTHORITY: 20-A M.R.S.A. §§ 11417(4), 11417(7) and 5 M.R.S.A. ch. 379 sub‑chapter 3, §§ 12021-6.G., 12022-3
• STATUTORY AUTHORITY: Under the Maine Educational Loan Authority (MELA):
• EFFECTIVE DATE: December 5, 2001
• AMENDED: October 31, 2012 – filing 2012-297
• AMENDED: In 2015, MELA was repealed and its responsibilities absorbed by the Finance Authority of Maine (FAME) - see 20‑A MRS §11414 et seq. This chapter was subsequently renumbered as 94-457 CMR ch. 803.
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

94-630 Maine Biomedical Research Board

Chapter 1 Rules for the Maine Biomedical Research Program

Code Me. R. 94-630 Ch. 1 Rules for the Maine Biomedical Research Program {#sec-94-630-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-630 Ch. 1}

Summary: This chapter outlines the procedures and criteria governing the Maine Biomedical Research Program.

Section 1. Purpose and Definitions

A. Purpose

The Maine Biomedical Research Program is established to promote economic development and jobs in the State primarily by making state investments in organizations with successful results in attracting biomedical research funds from specified grant sources. As a secondary purpose, the Maine Biomedical Research Program is intended to provide incentives for small eligible institutions to grow. The program shall disburse program funds from the Maine Biomedical Research Fund to eligible institutions. An eligible institution receiving program funds under this program may use those funds for any of the following purposes: project funding; facilities funding, including debt service; equipment used in research, including debt service; or ancillary support. The purpose of the rule is to define the criteria and proposal process for applications to the fund, consistent with 5 MRSA section 13103.

B. Definitions

“Academic medical center" is a Maine-based nonprofit clinical, educational and research organization with a critical number of hospital beds, with multiple and independent residency and fellowship programs, with a significant number of residents and fellows and that is affiliated with but independent of a medical school.

“Affiliate” means a corporation, limited liability company or other entity that controls, is controlled by or is under common control with the applicant. A majority of the membership, stock ownership or other voting authority is conclusively presumed to establish control.

“Ancillary Support” shall mean support for research services provided by the Eligible Institution that enhance its capacity to conduct Peer Reviewed Biomedical Research, such as, but not limited to, DNA sequencing.

“Biomedical Research” shall mean scientific research, investigations, experiments, demonstrations, and studies whose primary purpose relates to the biology, causes, diagnosis, treatment, control and prevention of physical and mental diseases or impairments afflicting humans.

“Board” shall mean the Maine Biomedical Research Board established pursuant to 5 MRSA section 13104.

“Department” shall mean the Department of Economic and Community Development.

"Eligible institution" means a Maine-based private nonprofit biomedical research institution or academic medical center or medical school that, as of July 1, 2001:

1. Performs competitive biomedical research in on-site, wetbench biomedical research laboratories in the State, as evidenced by publications in recognized peer review journals; and

Receives or expends funds in the State from federal agencies or specified grant sources for the purpose of producing peer-reviewed biomedical research in on-site, wetbench biomedical research laboratories.

Until July 1, 2009, any one or more of the requirements of this definition may be satisfied by an applicant created after July 1, 2001 if that requirement is satisfied by one or more affiliates of the applicant and if at least one affiliate of the applicant received funding from the fund prior to July 1, 2005. After July 1, 2009, an applicant that has established eligibility pursuant to this must itself meet all other requirements of the definition.

“Fund” shall mean the Maine Biomedical Research Fund established in 5 MRSA §13103.

“Grant Allocation Committee” shall mean a committee designated by the Board to review and recommend qualifying Eligible Institutions. The Grant Allocation Committee may include qualified persons with expertise in biomedical research grants administration, non-profit finance budget and administration and at least two persons with experience in Peer Reviewed Biomedical Research. None of the Grant Allocation Committee members may come from a Qualified Institution.

“Qualified institution” shall mean any Eligible Institution that applies for Program Funds and is determined by the Board to have met 5 MRSA §13103.

“Peer Reviewed Biomedical Research” shall mean any biomedical research that either has already resulted in, or is intended to result in, publication in national recognized peer review journals such as those listed in the Index Medicus, published by the National Library of Medicine, Nation Institutes of Health.

“Program funds” shall mean funds allocated from the Maine Biomedical Research Fund.

"Specified grant sources" means a federal agency, a nonprofit foundation, private company or corporation, a voluntary membership organization such as the American Cancer Society, or an out-of-state educational university, that, as of July 1, 2001, issues grants or contracts for the purpose of producing peer-reviewed biomedical research when the grantee retains complete editorial control over the content of the research performed.

"Wetbench" shall mean generally what is ascribed to that term by the biomedical research community and refers to laboratories that use solutions or cell extracts and biological reagents.

Section 2. Application Process

The Board shall issue a request for grant applications through a Public Notice in newspapers of general circulation at least 30 days prior to the application deadline. All proposals will be initially reviewed by the Grant Allocation Committee to determine Qualifying Institutions, eligible outside funding and eligible projects. Grant funds will be awarded based on the criteria and funding formulas outlined in this rule. The Board will make final decision on grant awards.

The Grant Allocation Committee will review all material supplied by each institution and make initial funding recommendations based on the criteria and funding formulas set forth in this rule. The Grant Allocation Committee may call upon out-of-state members of the biomedical research community to help it make decisions about the eligibility of an institution, project cost or in the determination of legitimacy of claimed funding sources as eligible outside funding.

The Board will review the Grant Allocation Committee’s recommendations and will make the final funding decisions. The Board will notify the institutions of its final decision and request that each grantee submit a final plan reflecting the actual amount of funding allocated.

The final plans must specify how the institution will utilize the allocated Program Funds and what research and economic benefits it anticipates as a result of the funding. The institution’s final plan must be submitted within 45 days of notification of the Board’s final decision.

Once funding decisions are made, each Eligible Institution shall revise its preliminary plan into a final plan that reflects the actual level of award received. The final plan must describe how the institution will utilize the allocated program funds and what research and economic benefits it anticipates as a result of funding. This final plan must be submitted to the Board no later than 45 days after the award notification and prior to disbursement of funds.

Section 3. Criteria for Selection

In order for an eligible institution to qualify for Program Funds, applicants must submit to the Board:

A. A preliminary plan describing how the institution would utilize Program Funds and what research and economic benefits it anticipates as a result of this funding;

B. Citations of articles from peer review journals published within the previous 2 years that show the institution is engaged in competitive biomedical research;

C. Copies of the institution's Internal Revenue Service form 990, or other audited documentation such as a notice of grant award, for the previous two calendar years. The documentation must show the amount of funding received from outside sources used for Biomedical Research. The documentation must be for the two calendar years immediately preceding the date of application to the Fund;

D. A breakdown and explanation of sources and uses of all Biomedical Research funds received or expended over the previous 2 calendar years from federal agencies or specified grant sources. The report will specify funds attracted over the previous 2 calendar years to perform Biomedical Research that are:

1. Received directly by the Eligible Institution as a primary beneficiary of the grant;

2. Received by the Eligible Institution through a subcontract or other similar legal arrangement such as an invoice or letter of appointment; or

3. Received in combination with other in-state or out-of-state institutions.

The report will separately list each specific source for funding and its use.

E. A statement signed by the institution's chief executive officer certifying that all the submitted materials are accurate.

Section 4. Use of Funds

Program funds are to support biomedical research in the State, with priority given to research and research technologies with the potential to affect diseases and biomedical mechanisms.

An eligible institution may use the grant for any one of the following purposes:

Project funding that directly supports Peer Reviewed Biomedical Research;

Facilities funding, including debt service, for construction, renovation, expansion of facilities the primary purpose of which is to conduct Peer Reviewed Biomedical Research:

Equipment used in Peer Reviewed Biomedical Research, including debt service; or

Ancillary support;

An Eligible Institution that receives funds under this rule may charge overhead expenses consistent with federal research granting criteria. The institution may utilize up to 2% of the Program Funds it receives to evaluate the impact of the research it is conducting. An institution is not obligated to expend Program Funds during the period in which those funds are received, but may carry over funding for up to 5 years.

Program funds may not be used to support Biomedical Research, facilities, equipment, Ancillary Support or overhead expenses that occur outside the State of Maine.

Section 5. Allocation of Funds

All Eligible Institutions meeting the criteria in Section 4 will receive a proportional share of the available Program Funds for allowed program uses.

A. Determination of eligible outside funds

“Eligible Outside Funds” for the purposes of determining an Eligible Institution’s l allocation of Program Funds is defined as funds received or expended in Maine from Specified Grant Sources for Peer Reviewed Biomedical Research only. An institution’s internal funds or private contributions from individuals cannot count as Eligible Outside Funding. In order to assure that no funds are counted more than once, outside funds received by multiple in-state institutions from the same Specified Grant Source shall be apportioned between those institutions for Peer Reviewed Biomedical Research as outlined in that grant proposal. Eligible Outside Funds must be received or expended in Maine by Qualified Institutions:

1. Directly as a primary beneficiary of a grant; or

2. As a subcontractor or pursuant to a similar documented legal arrangement such as an invoice or letter of appointment; or

3. As evidenced by biomedical research funding supported by other documentation such as notice of grant award, grant budget or time and effort reporting.

B. Allocation formula

An institution will receive the share of total Program Funds” available for distribution that is proportionally equivalent to the institution’s share of adjusted Eligible Outside Funding relative to the total pool of adjusted Eligible Outside Funding received by all institutions receiving Program Funds.

“Adjusted eligible outside funding” means an institution’s Eligible Outside Funding weighted such that up to and including the first million (or portion thereof) is multiplied by 3.5, the second and up to and including the third million are multiplied by 2, the fourth and up to and including the fifth million are multiplied by 1.5, the sixth and up to and including the tenth million are multiplied by 1.2, the eleventh and up to and including 20th million are multiplied by 1, the 21st and up to and including the 40th million are multiplied by 0.5, the 41st and up to and including the 60th million are multiplied by 0.1,

and any amount above 60 million is multiplied by 0.02.

C. Board Decision

The Board will review the Grant Allocation Committee’s recommendations and will make the final funding decision consistent with 5 MRSA section 13103. The Board will notify the institutions of its decision and request each Qualifying Institution’s final plan reflecting the actual amount of funding allocated. The institution must submit its final plan to the Board no later than 45 days after the award notification. The final plan must describe how the institution will utilize the allocated Program Funds and what research and economic benefits it anticipates as a result of funding.

Section 6: Request for Reconsideration

An applicant may request reconsideration of the Board’s final decision based on the following:

1. The determination of its eligibility as a Qualifying Institution as defined by this rule.

2. The determination of whether its project is an eligible project as defined by this rule.

Request for reconsideration must be addressed to the Board in writing within fifteen days of the its decision, stating the specific basis for the request for reconsideration.

The Board will review the written request for reconsideration and all application materials submitted by the institution and make a final determination based on that information within 30 days. The Board may call upon out-of-state members of the biomedical research community to assist in the reconsideration decision.

Section 7: Disqualification

The Board may disqualify a grantee if it does not meet the above criteria or are not providing services as outlined in its proposal.

Section 8: Reporting requirements

Each biennium that funds are received, all grantees will submit a Report to the Department. The report must include:

1. An accurate accounting of the use of all Program Funds prepared by a certified public accountant;

2. A summary of the status of any ongoing Biomedical Research;

3. A summary of the results of any completed Biomedical Research; and

4. Evaluation data and assessment to include an assessment of the direct and indirect economic impact of funded Biomedical Research and an assessment of the contribution of the funded Biomedical Research to scientific advancement and the institution’s competitive position.

Section 9: Additional reporting requirements

In addition to these reporting requirements, each institution must submit each biennium a report to the Governor, the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over business, research and economic development matters. The report must include detailed information on the status of the funds in the Maine Biomedical Research Fund, a listing and explanation of each specific source of funding from grant sources for biomedical research and its use and the number of new jobs created in the State and where those jobs are located.

History

• STATUTORY AUTHORITY: 5 MRSA §13103 sub-9 (PL 2003 Chapter 464).
• EFFECTIVE DATE: November 18, 2003 - filing 2003-436, which also repeals 10-100 CMR Ch. 11
• EFFECTIVE DATE: May 1, 2006 – filing 2006, 161
• EFFECTIVE DATE: July 30, 2011 – filing 2011-251
• EFFECTIVE DATE: 94-630 Chapter 1 page 6

94-649 Maine Commission on Public Defense Services

Chapter 2 Standards for Qualifications of Assigned Counsel

Code Me. R. 94-649 Ch. 2 Standards for Qualifications of Contract and Assigned Counsel {#sec-94-649-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 2}

Summary: This Chapter establishes the standards prescribing minimum experience, training, and other qualifications for contract counsel and assigned counsel to be Eligible to receive assignments to represent indigent people who are entitled to a statutorily and/or constitutionally required attorney.

SECTION 1. Definitions

Executive Director. "Executive Director" means the Executive Director of the Commission or the Executive Director’s decision-making designee.

Assignment. “Assignment” means a case or lawyer of the day assignment made by a court or the Commission, and specialty court liaison or resource counsel assignments made by the Commission.

Eligible. “Eligible” is the status assigned to an attorney who has satisfied all the requirements of this Chapter, has satisfied all requirements of Chapter 3 for any applicable Specialized Panels, has applied and been approved by the Commission to receive assignments of the applicable case type, is current on their annual renewal, and is not under suspension by the Commission.

Roster. “Roster” is a list of attorneys who are both Eligible and actively accepting cases of a particular type in a particular court or location.

Specialized Panels. “Specialized Panels” means those types of assignments that are complex in nature. They include the panels listed in Chapter 3 of the Commission Rules.

SECTION 2. Applicability

Whenever the eligibility standards are amended, the Executive Director shall create an application for all then-currently Eligible counsel to complete to demonstrate they meet all eligibility requirements of this Chapter. Counsel who are Eligible to receive assignments at the time this Chapter is amended shall maintain their eligibility until July 15, 2024. As a condition of continued eligibility, counsel must successfully complete the application by July 15, 2024. If counsel fail to successfully complete the application by July 15, 2024, they will automatically become ineligible to receive Assignments until they do so.

An attorney who is Eligible for one or more case types prior to the amendment of this Chapter will not be deemed Eligible for additional case types until they comply with the amended Chapter.

Any attorney not previously Eligible to receive Assignments from the Commission when this Chapter is amended must comply with the requirements of this Chapter and all other Commission rules to become Eligible.

SECTION 3. Minimum Eligibility Requirements

To become and/or remain Eligible, an attorney must—at a minimum—satisfy the following conditions:

Application

1. Complete an application in the manner prescribed by the Commission through its Executive Director. The Executive Director will not act on an application until it is complete.
2. If any of the information on the application changes prior to the Executive Director acting on the application, the attorney must immediately notify the Commission via email prior to receiving a decision on the application.
3. No attorney will receive an Assignment until that attorney completes an application and is deemed Eligible to receive Assignments of that type.

Licensed to Practice

The attorney must be licensed to practice law in the State of Maine and be in good standing with the Maine Board of Overseers of the Bar.

The attorney must inform the Commission, in writing, of any complaint against the attorney filed with the Maine Board of Overseers of the Bar, or any entity charged with governing the conduct of attorneys in any other jurisdiction. The attorney must so inform the Commission within 5 days of knowing or having reason to know of such complaint. Failure to comply with this requirement is grounds for removal or suspension in accordance with Section 5 herein.

The attorney must inform the Commission, in writing, of any suspension of the attorney’s privilege to practice law in any jurisdiction within 24 hours of receiving actual or constructive notice of the suspension. Failure to comply with this requirement is grounds for suspension or removal in accordance with Section 5 herein.

The attorney must inform the Commission, in writing, within 5 days of any criminal charge filed against the attorney in any jurisdiction and promptly inform the Commission of any disposition of such charge. Failure to comply with this requirement is grounds for suspension or removal in accordance with Section 5 herein.

Proficiency

1. The attorney must be knowledgeable of the Maine Rules of Evidence.
2. The attorney must be knowledgeable of the rules of procedure applicable to the area(s) of law they practice.
3. The attorney must be knowledgeable of the applicable law in their area(s) of practice.
4. The attorney must be knowledgeable of the Maine Rules of Professional Conduct.
5. The attorney must only represent clients in assigned cases for which they are Eligible. If an attorney is assigned to a case for which they are not Eligible, the attorney must—within three business days of receiving actual or constructive notice of the appointment—submit a complete application for the applicable case type, file a motion for appointment of Eligible co-counsel, or file a motion to withdraw from the case. If the attorney elects to withdraw from the case, the attorney must fulfill their obligations pursuant to the Maine Rules of Professional Responsibility and the relevant rules of procedure.

Training

1. Before being deemed Eligible and receiving Assignments, an attorney must satisfactorily complete a designated Commission-sponsored or Commission-approved training course in each area of the law for which the attorney is seeking to receive Assignments. This includes but is not limited to the following areas of law: criminal defense, lawyer of the day, juvenile defense, civil commitment, child protective, not criminally responsible release hearings, guardianship, and emancipation.
2. The attorney shall meet any specific training requirements of any Specialized Panels.
3. To maintain their eligibility, an attorney must annually complete 8 hours of continuing legal education (CLE) approved by the Commission. All the CLE hours must be related to the area(s) of law that the attorney practices.

Technological Literacy

1. The attorney must personally have the ability to do the following: 1. Open, read, reply to, forward, save, and print emails. Attach files to and download attachments from emails. 2. Electronically sign documents. 3. Scan, attach, and upload or email documents. 4. Use ShareFile and other systems used by courts for the purpose of e-filing or sharing information with attorneys. 5. View, download, save, copy, and disseminate in a confidential manner all discovery received in electronic form. 6. Opt in and out of Rosters using the Commission’s electronic case management system.

Annual Renewal

1. The attorney must register with the Commission annually in a manner prescribed by the Commission.
2. The annual renewal form will require the attorney to provide certain information, including but not limited to: 1. The attorney’s contact information. 2. A list of the qualifying CLE credits the attorney has completed for the relevant period. 3. Whether they have had any bar complaints since their last successful renewal. 4. Whether they have been charged with a civil or criminal offense since their last successful renewal. 5. Any other information deemed appropriate by the Executive Director.
3. The annual renewal form may also require the attorney to make certifications, including but not limited to: 1. That the attorney has read, understands, and agrees to abide by all Commission rules and policies. 2. That the attorney is licensed to practice law in Maine. 3. A statement about what percentage of the attorney’s work hours is spent on assigned cases. 4. That the attorney has not been charged with a criminal offense which they have failed to disclose to the Commission. 5. That the attorney has not been the subject of any Board of Bar Overseers complaints which they have failed to disclose to the Commission. 6. That all information submitted and certifications made on the annual renewal form are complete and accurate. 7. Any certification designed to assess compliance with Commission rules or policies. 8. Any other certifications deemed appropriate by the Executive Director.
4. Any attorney who fails to successfully and timely complete the annual renewal will be deemed ineligible to receive Assignments. The attorney may have their eligibility restored upon successful completion of the annual renewal if they are in compliance with all Commission rules.

Office, Telephone, and Electronic Mail

1. The attorney must maintain an office or have the use of space that is reasonably accessible to clients and that permits the private discussion of confidential and other sensitive matters.
2. The attorney must maintain a telephone number, which shall be staffed by personnel available for answering telephone calls or an answering service, an answering machine or voicemail capability that ensures client confidentiality.
3. The attorney must maintain a confidential working e-mail account as a means of receiving information from and providing information to the Commission. The e-mail address must not be owned or accessible by any person or entity other than the attorney or the entity they own or are employed by.
4. The attorney must keep the Commission and the courts in which the attorney represents indigent clients apprised of the attorney's work telephone number and postal and e-mail addresses. The attorney must ensure that the court has the ability to contact the attorney by e-mail, mail, and telephone.

Attorney Cooperation with Procedures and Monitoring

1. The attorney must comply with all applicable Commission rules and procedures.
2. The attorney must comply with Commission monitoring and performance evaluations.
3. The attorney must comply with any Commission investigation of complaints, billing discrepancies, or other information. Except as pertains to indigent cases assigned to the attorney, the Executive Director cannot require an attorney to disclose information that is privileged or made confidential by statute, court rule or court order.

SECTION 4. Eligibility

Cause

1. The Executive Director may determine that an attorney is not Eligible to receive assignments generally or of a particular type if: 1. The attorney made any misrepresentation or material omission on any application they submitted to the Commission. 2. The attorney fails to satisfy any requirement of any Commission rule. 3. The attorney has a prior criminal record which the Executive Director determines could affect the attorney’s ability to provide high quality legal services. 4. The attorney has a prior bar disciplinary history which the Executive Director determines could affect the attorney’s ability to provide high quality legal services. 5. The Executive Director concludes that the attorney is unfit to provide high quality indigent legal services.

Process

1. If the Executive Director determines that an attorney is not Eligible to receive Assignments generally or of a particular type pursuant to Section 5(1) of this Chapter: 1. The Executive Director's decision shall be in writing and shall reflect the Executive Director's reasoning in a manner sufficient to inform the attorney of the basis for the Executive Director's action. 2. The Executive Director's decision that an attorney does not satisfy the minimum eligibility requirements to receive Assignments may be appealed to the full Commission pursuant to 4 M.R.S.A. §1804(3)(J) and Chapter 201 of the Commission rules.

Automatic Ineligibility

1. If an attorney exceeds the maximum caseload standard as set forth by Chapter 4 of the Commission rules and has not been granted a waiver pursuant to Chapter 4, they will become ineligible to receive new case Assignments.
2. Any attorney who voluntarily accepts a new case after having been deemed ineligible pursuant to subsection 2(a), above, will not be paid by the Commission for any time spent on the case.
3. Any attorney who is assigned a case by a court without the attorney’s consent after the attorney has been deemed ineligible pursuant to subsection 2(a), above, must within seven calendar days of receiving actual or constructive notice of the assignment, file a motion to withdraw from the case and notify the Commission of the improper assignment. The attorney will only be paid for time spent withdrawing from the case, any work performed on the case pending a court’s ruling on the motion to withdraw and appointment of successor counsel, and the time spent communicating with the Commission about the improper assignment. If the attorney fails to file a motion to withdraw within seven calendar days of receiving notice of the assignment, the attorney will not be paid by the Commission for any time spent on the case.

SECTION 5. Removal or Suspension of Eligibility

Cause. The Executive Director may remove indefinitely or suspend an attorney’s eligibility to receive Assignments, or to receive Assignments of a particular type:

1. For any failure to comply with this rule or any other Commission rule.
2. If the Executive Director determines that the attorney can no longer provide high quality indigent legal services based on the nature of any criminal charge.
3. If it is discovered that the attorney made any misrepresentation or material omission on any application they submitted to the Commission.
4. If the Executive Director determines that the attorney can no longer provide quality indigent legal services based on investigation by the Executive Director of any complaint or other information.

Process.

1. The Executive Director's decision to remove or suspend an attorney’s eligibility shall be in writing and reflect the Executive Director's reasoning in a manner sufficient to inform the attorney of the basis for the Executive Director's action.
2. Attorneys removed indefinitely must re-apply to the Commission if they wish to receive Assignments in the future. Attorneys who are suspended need not re-apply but must demonstrate compliance with any conditions made part of a suspension.
3. Removal or suspension may also include a requirement that the attorney identify to the Commission all open assigned cases and file a motion to withdraw in each case within seven calendar days of the date of the suspension or removal decision. If an attorney is directed to withdraw from all their assigned cases and fails to do so within seven calendar days of the date of the suspension or removal decision, the attorney will not be entitled to payment from the Commission for work done on any of the cases after the date of the suspension or removal decision.
4. The Executive Director's decision to remove or suspend an attorney’s eligibility may be appealed to the full Commission pursuant to 4 M.R.S.A. §1804(3)(J) and Chapter 201 of the Commission rules.

History

• STATUTORY AUTHORITY: 4 M.R.S.A. §1804(2)(B)
• EFFECTIVE DATE: June 25, 2010 – filing 2010-214 (Final adoption, major substantive)
• AMENDED: September 17, 2015 – filing 2015-152 (Final adoption, major substantive)
• AMENDED: May 14, 2024 – filing 2024-115
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 3 Eligibility Requirements for Specialized Panels

Code Me. R. 94-649 Ch. 3 Eligibility Requirements for Specialized Panels {#sec-94-649-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 3}

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Summary: Chapter 2 of the Commission’s rules sets out the minimum requirements to be Eligible to accept assignments from the Commission. The rules in this Chapter are promulgated to establish the eligibility requirements for Specialized Panels.

SECTION 1. Definitions.For purposes of this Chapter, the following terms are defined as follows:

Executive Director. “Executive Director” means the Executive Director of the Maine Commission on Public Defense Services or the Executive Director’s decision-making designee.

Co-counsel. “Co-counsel” means an attorney who works with another attorney on a particular case. Both attorneys must be counsel of record, professionally responsible for the case, and actively participate in the representation of the client.

Contested Hearing. “Contested Hearing” means a hearing at which a contested issue is submitted to the court for resolution after evidence is taken or witnesses are presented.

Homicide. “Homicide” means:

1. All offenses contained in 17-A M.R.S.A. §§ 201 (Murder), 202 (Felony Murder), 203 (Manslaughter), 152 (Attempted Murder), and 152-A (Aggravated Attempted Murder).
2. 29-A M.R.S.A. § 2411(1-A)(D)(1-A) (Criminal OUI Causing Death).
3. Criminal Conspiracy under 17-A M.R.S.A. § 151, Criminal Attempt under 17-A M.R.S.A. § 152, and Criminal Solicitation under 17-A M.R.S.A. § 153 to commit any of the offenses listed above or to commit any crime involving substantially similar conduct.

Major Felony. “Major Felony” means:

1. An offense under 17-A M.R.S.A. §§ 208 (Aggravated Assault); 208-B (Elevated Aggravated Assault); 208-C (Elevated Aggravated Assault on a Pregnant Person); 208-D (Domestic Violence Aggravated Assault); 301 (Kidnapping), 401(1)(B)(1), (2), or (3) (Burglary with a Firearm, Burglary with Intent to Inflict Bodily Harm, and Burglary with a Dangerous Weapon); 651 (Robbery); 802 (Arson), 803-A (Causing a Catastrophe); 1105-A (Aggravated Trafficking of Scheduled Drugs); 1105-B (Aggravated Trafficking of Counterfeit Drugs); and 1105-C (Aggravated Furnishing of Scheduled Drugs).
2. “Major Felony” includes crimes involving substantially similar conduct.

C. “Major Felony” also includes Criminal Conspiracy under 17-A M.R.S.A. § 151, Criminal Attempt under 17-A M.R.S.A. § 152, and Criminal Solicitation under 17-A M.R.S.A. § 153 to commit any of the offenses listed in Subsection 1(5) of this Chapter or to commit any crime involving substantially similar conduct.

Sex Offense. “Sex Offense” means:

1. An offense under 17-A M.R.S.A. §§ 253-260 (Sexual Assaults), 281-285 (Sexual Exploitation of Minors), 556 (Incest), 511(1)(D) (Violation of Privacy), 852 (Aggravated Sex Trafficking), 853 (Sex Trafficking), and 855 (Patronizing Prostitution of Minor or Person with Mental Disability).
2. “Sex Offense” includes crimes involving substantially similar conduct.
3. “Sex Offense” also includes Criminal Conspiracy under 17-A M.R.S.A. § 151, Criminal Attempt under 17-A M.R.S.A. § 152, and Criminal Solicitation under 17-A M.R.S.A. § 153 to commit any of the offenses listed in Subsection 1(6) of this Chapter or to commit any crime involving substantially similar conduct.

Operating Under the Influence (OUI). “OUI” means:

1. All offenses under 29-A M.R.S.A. § 2411 (Criminal OUI).
2. OUI includes crimes involving substantially similar conduct.
3. OUI also includes Criminal Conspiracy under 17-A M.R.S.A. § 151, Criminal Attempt under 17-A M.R.S.A. § 152, and Criminal Solicitation under 17-A M.R.S.A.

§ 153 to commit any of the offenses in Subsection 1(7) of this Chapter or to commit a

crime involving substantially similar conduct.

Domestic Violence (DV). “Domestic Violence” means:

1. Offenses denominated as Domestic Violence under 17-A M.R.S.A. §§ 207-A (Domestic Violence Assault), 208-D (Domestic Violence Aggravated Assault), 209-A (Domestic Violence Criminal Threatening), 210-B (Domestic Violence Terrorizing),

210-C (Domestic Violence Stalking), and 211-A (Domestic Violence Reckless Conduct).

1. Any offense alleged to have been committed against a family or household member or dating partner as defined by 19-A M.R.S.A. § 4002.
2. Any offense of stalking under 17-A M.R.S.A. § 210-A (Stalking).
3. Violation of a protective order under 17-A M.R.S.A. § 506-B.
4. “Domestic Violence” includes crimes involving substantially similar conduct.
5. “Domestic Violence” also includes Criminal Conspiracy under 17-A M.R.S.A. § 151, Criminal Attempt under 17-A M.R.S.A. § 152, and Criminal Solicitation under

17-A M.R.S.A. § 153 to commit any of the offenses listed in Subsection 1(8) of this Chapter, or to commit any crime involving substantially similar conduct.

Juvenile Defense. “Juvenile Defense” means any juvenile crime defined by 15 M.R.S.A. §

Child Protective. “Child Protective” means a Maine District Court proceeding in which a parent is entitled to counsel pursuant to 22 M.R.S.A. § 4005(2).

Child Protective Appeal. “Child Protective Appeal” means an appeal to the Maine Supreme Judicial Court of any order terminating parental rights.

Homicide Appeal. “Homicide Appeal” means an appeal to the Maine Supreme Judicial Court of a conviction involving a Homicide offense as defined by Section 1(4) of this Chapter.

Other Criminal Appeal. “Other Criminal Appeal” means an appeal to the Maine Supreme Judicial Court of any criminal conviction other than a conviction for a Homicide offense, as defined by section 1(4) herein.

Lawyer of the Day (LOD). “LOD” means an attorney who has been designated by the Commission as Eligible for case assignments and is designated by a court pursuant to M.R.U. Crim. P. 5(e) for the limited purpose of representing a defendant or defendants at their arraignment or initial appearance.

Proceeding Type. “Proceeding Type” means the type of proceeding for which an attorney may serve as LOD. The three Proceeding Types are in-custody, walk-in, and juvenile.

1. In-Custody: arraignments or initial appearances for defendants in adult criminal cases who are incarcerated.
2. Walk-In: arraignments or initial appearances for defendants in adult criminal cases who are not incarcerated.
3. Juvenile: arraignments or initial appearances for juvenile defendants.

LOD Roster. “LOD Roster” means the list of attorneys designated as Eligible by the Commission to serve as LOD in a Proceeding Type for a particular court.

Shadow Session. “Shadow Session” means a session in which an attorney who has applied for LOD eligibility “shadows” an attorney who has been designated as Eligible for LOD for a complete session of the Proceeding Type for which the attorney is applying. The applicant must be present with the Eligible LOD for the entire LOD appearance, including in client interviews (with client consent) and in the courtroom. Rules of client confidentiality and privilege apply to all communications between the client, the LOD, and the attorney participating in a shadow session. If it is a morning LOD session that continues into the afternoon, the applicant must be present the entire time for what will be counted as one shadow session. If the shadowing attorney is Eligible to receive Commission case assignments at the time of the shadow session, the shadowing attorney is Eligible for payment in accordance with Chapter 301, Section 5 of the Commission rules.

Resource Counsel. “Resource Counsel” means an attorney who provides mentoring and other services to Eligible counsel as delineated in Chapter 301 of the Commission rules.

PDS Liaison. “PDS Liaison” means the attorney who performs services for clients as part of a specialty court team but who has not otherwise been appointed to represent a specific client on a specific docket.

Specialized Panels. “Specialized Panels” means those types of assignments that are complex in nature. They include the following panels:

1. Homicide
2. Sex Offenses
3. Major Felonies
4. Operating Under the Influence
5. Domestic Violence
6. Juvenile Defense
7. Child Protective
8. Child Protective Appeals
9. Homicide Appeals
10. Other Criminal Appeals
11. Post-Conviction Review
12. In-Custody Lawyer of the Day
13. Walk-In Lawyer of the Day
14. Juvenile Lawyer of the Day
15. Resource Counsel
16. PDS Liaison

SECTION 2. Powers and Duties of the Executive Director.

The Executive Director shall develop an application process for an attorney seeking eligibility for a Specialized Panel to demonstrate the minimum qualifications necessary to be placed on a Specialized Panel. An applicant for a Specialized Panel must present additional information or documents beyond the minimum requirements of this Chapter if requested by the Executive Director.

The Executive Director shall have the sole discretion to make the determination if an attorney is qualified to be placed on a Specialized Panel. In addition, the Executive Director shall have the sole discretion to grant or deny a waiver pursuant to, and in accordance with, Section 4.

The Executive Director may, in their sole discretion, suspend or remove an attorney from a Specialized Panel at any time if there is reasonable grounds to believe the attorney is not meeting the minimum eligibility requirements.

SECTION 3. Minimum Eligibility Requirements for Specialized Panels.

Homicide.To be Eligible for Homicide cases, an attorney must:

1. Practice Experience: Have at least five years of criminal defense practice experience;
2. Trial/Litigation Experience: 1. Have tried before a jury, individually or as co-counsel, at least five felony cases within the last ten years, at least two of which were Major Felony, Homicide, or Class C or higher Sex Offense cases; 2. Have tried before a jury, individually or as co-counsel, at least one Homicide case in the last fifteen years;
3. Demonstrate a knowledge and familiarity with the evidentiary issues relevant to Homicide cases, including but not limited to forensic and scientific issues relating to DNA testing and fingerprint analysis, mental health issues, and eyewitness identification;
4. Provide a letter explaining reasons for interest in and qualifications for representing individuals charged with Homicide;
5. Have submitted to the Commission three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, that assert that the applicant is qualified to represent individuals charged with Homicide, including OUI manslaughter. The letters of reference must be submitted directly to the Executive Director by the authors;
6. If the applicant seeks a waiver of any of these eligibility requirements, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent individuals charged with a Homicide offense. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant. The references in this section may be the same as those provided in part E of this rule; and
7. Certify that they have read, understand, and agree to comply with all Commission standards of practice.

Sex Offenses.To be Eligible for Sex Offense cases, an attorney must:

1. Practice Experience: Have at least three years of criminal defense practice experience;
2. Trial/Litigation Experience: Have tried before a jury, individually or as co-counsel, at least three felony cases within the last ten years;
3. Provide a letter explaining reasons for interest in and qualifications for representing individuals charged with a Sex Offense; and
4. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
5. If the applicant seeks a waiver of any of these eligibility requirements, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent individuals charged with a Sex Offense. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for 5 attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

Major Felonies.To be Eligible for Major Felony cases, an attorney must:

1. Practice Experience: Have at least two years of criminal defense practice experience;
2. Trial/Litigation Experience: Have tried before a jury, individually or as co-counsel, at least four criminal cases in the last ten years;
3. Provide a letter explaining reasons for interest in and qualifications for representing individuals charged with a Major Felony; and
4. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
5. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent individuals charged with a Major Felony. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for 5 attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

Operating Under the Influence.To be Eligible for OUI cases, an attorney must:

1. Practice Experience: Have at least one year of criminal defense practice experience;
2. Trial/Litigation Experience: Have tried before a jury, individually or as co-counsel, at least two criminal cases, and conducted at least two contested hearings within the last ten years;
3. Have obtained in the last three years at least four hours of CLE credit on topics relevant particularly to OUI defense;
4. Provide a letter explaining reasons for interest in and qualifications for representing individuals charged with an OUI; and
5. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
6. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent individuals charged with an OUI. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

Domestic Violence.To be Eligible for Domestic Violence cases, an attorney must:

1. Practice Experience: Have at least one year of criminal defense experience;
2. Trial/Litigation Experience: Have tried before jury, individually or as co-counsel, at least two criminal cases and conducted at least two contested hearings within the last ten years;
3. Have obtained in the last three years at least four hours of CLE credit on topics related to Domestic Violence defense, which must include specific training on the collateral consequences of such convictions;
4. Provide a letter explaining reasons for interest in and qualifications for representing individuals charged with a Domestic Violence crime; and
5. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
6. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent individuals charged with a Domestic Violence crime. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

Juvenile Defense.To be Eligible for Juvenile Defense cases, an attorney must:

1. Repealed.
2. For misdemeanor cases: 1. Have completed the Commission’s Juvenile Law Minimum Standards Training; and 2. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
3. For Felony cases and Sex Offense cases, an attorney must: 1. Practice Experience: Have at least one year of juvenile defense practice experience; 2. Trial/Litigation Experience:

Have handled at least 10 juvenile cases to conclusion; and

Have tried at least five contested juvenile hearings (including but not limited to: detention hearings, evidentiary hearings, adjudication hearings, and dispositional hearings), individually or as co-counsel, within the past ten years;

• 1. Have completed the Commission’s Juvenile Law Minimum Standards Training; 2. Provide a letter explaining reasons for interest in and qualifications for representing juveniles in felony and Sex Offense cases; and 3. Certify that they have read, understand, and agree to comply with all Commission standards of practice. 4. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent juveniles in felony and Sex Offenses cases. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

1. For Bind Over Hearings: 1. Practice Experience: Have at least two years of juvenile defense practice experience; 2. Trial/Litigation Experience:

Have handled at least 20 juvenile cases to conclusion within the past ten years; and

Have tried, individually or as co-counsel, at least 10 contested juvenile hearings, including but not limited to: detention hearings, evidentiary hearings, adjudication hearings, and dispositional hearings in the past ten years;

• 1. Have attended in the last three years at least eight hours of CLE credit that cover all the following topics devoted to juvenile defense: training and education regarding placement options and dispositional alternatives; child and adolescent brain development; adolescent mental health diagnosis and treatment; and issues and case law related to competency, bind over procedures, and the collateral consequences of juvenile adjudications; 2. Provide a letter explaining reasons for interest in and qualifications for representing juveniles in bind over hearings; and 3. Certify that they have read, understand, and agree to comply with all Commission standards of practice. 4. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent juveniles in bind over hearings. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

1. For Bound Over Cases: If a case is bound over, the assigned attorney must be Eligible for the adult criminal case types implicated by the charges, or have Eligible co-counsel appointed in the matter.

Child Protective. To be Eligible to represent parents in Child Protective cases, an attorney must:

1. Repealed.
2. Satisfy one of the following Trial/Litigation Experience requirements: 1. Have provided representation to parents in at least three unrelated Child Protective cases from the preliminary protective order stage through disposition of the cases within the past ten years; or 2. Serve as co-counsel with an attorney who is Eligible to receive Commission Child Protective case assignments on two or more assigned Child Protective cases for at least twelve months prior to the date of the application;
3. Complete the Commission’s Child Protective Minimum Standards Training;
4. Provide a letter explaining reasons for interest in and qualifications for representing parents in Child Protective proceedings; and
5. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
6. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to represent parents in Child Protective cases. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.
7. If a Petition to Terminate Parental Rights is filed and the attorney of record has not previously tried a termination of parental rights hearing, then the attorney of record must file a request with the Commission for a more experienced attorney to serve as co-counsel to assist them with the termination of parental rights hearing.

Repealed.

Maine Supreme Judicial Court Appeals . To accept assignments to Maine Supreme Judicial Court Appeals, an attorney must be Eligible for the applicable appeal type as outlined below.

1. Child Protective Appeals. To be Eligible to accept assignments to Child Protective Appeals, an attorney must satisfy the below requirements. 1. Practice Experience: Have provided representation in five or more Child Protective Appeals in the Maine Supreme Judicial Court, either individually or as co-counsel; 2. Provide copies of all briefs the attorney filed, and the opinions/decisions rendered in the five most recent appeals the attorney has handled; 3. Have been deemed Eligible to accept Child Protective case assignments pursuant to Section 3(7) of this Chapter; 4. Demonstrate, through application and submitted briefs, exceptional legal research, writing, and analytical skills; 5. Submit a letter explaining the applicant’s interest in and qualifications for providing representation on appeals, including a description of the applicant’s experience with appeals, representative examples of issues raised on appeal, and a summary of the results of those appeals; and 6. Certify that they have read, understand, and agree to comply with all Commission standards of practice. 7. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to provide representation in appeal cases. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant. 8. An attorney is not Eligible to represent a client in a Child Protective Appeal when the attorney was trial counsel for that case. If a client wishes to appeal a Child Protective case, the trial attorney shall file a motion to withdraw as counsel simultaneously with the notice of appeal.
2. Homicide Appeals. If trial counsel wants to continue representation on a Homicide Appeal, the attorney must either be Eligible for Homicide Appeals by the time the notice of appeal is filed or file a motion for co-counsel or motion to withdraw simultaneously with the notice of appeal. To be Eligible to accept assignments to Homicide appeals, an attorney must: 1. Practice Experience: Have provided representation in seven or more criminal appeals in the Maine Supreme Judicial Court, either individually or as co-counsel, within the last ten years; 2. Trial/Litigation Experience: Have completed oral argument in at least two criminal appeals before the Maine Supreme Judicial Court; 3. Provide copies of all briefs the attorney filed, and the opinions/decisions rendered in the seven most recent criminal appeals the attorney has handled; 4. Demonstrate, through application and submitted briefs, exceptional legal research, writing, and analytical skills; 5. Submit a letter explaining the applicant’s interest in and qualifications for providing representation on appeals; including a description of the applicant’s experience with appeals, representative examples of issues raised on appeal, and a summary of the results of those appeals; and 6. Certify that they have read, understand, and agree to comply with all Commission standards of practice. 7. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to provide representation in appeal cases. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.
3. Other Criminal Appeals. If trial counsel wants to continue representation on an Other Criminal Appeal, the attorney must either be Eligible for Other Criminal Appeals by the time the notice of appeal is filed or file a motion for co-counsel or motion to withdraw simultaneously with the notice of appeal. To be Eligible to accept assignments to Other Criminal Appeals, an attorney must: 1. Practice Experience: Have provided representation in five or more criminal appeals in the Maine Supreme Judicial Court, either individually or as co-counsel, within the last ten years; 2. Trial/Litigation Experience: Have completed oral argument in at least one criminal appeal before the Maine Supreme Judicial Court; 3. Provide copies of all briefs the attorney filed, and the opinions/decisions rendered in the five most recent criminal appeals the attorney has handled; 4. Demonstrate, through application and submitted briefs, exceptional legal research, writing, and analytical skills; 5. Submit a letter explaining the applicant’s interest in and qualifications for providing representation on appeals; including a description of the applicant’s experience with appeals, representative examples of issues raised on appeal, and a summary of the results of those appeals; and 6. Certify that they have read, understand, and agree to comply with all Commission standards of practice. 7. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to provide representation in appeal cases. The letters of reference must be submitted directly to the Executive Director by the authors. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.

Post-Conviction Review.To be Eligible for post-conviction review cases, an attorney must:

1. Practice Experience: Have at least three years of criminal defense experience;
2. Trial/Litigation Experience: Have previously qualified to be placed on the trial roster for the case type applicable to the conviction being challenged on post-conviction review;
3. Submit a letter explaining the applicant’s interest in and qualifications for providing representation in post-conviction review cases, including a description of the applicant’s criminal law experience generally and how that experience prepared the applicant to address the issues applicable to post-conviction review cases;
4. If the applicant seeks a waiver, the applicant shall submit three letters of reference from attorneys, at least one of whom does not work within the same firm as applicant, asserting that the applicant is qualified to provide representation in post-conviction cases. The letters of reference must be submitted directly to the Executive Director by the author. Applicants may alternatively submit the names and contact information for five attorneys willing to provide references if contacted by PDS staff directly. At least two of these references must be attorneys who do not work within the same firm as the applicant.; and
5. Certify that they have read, understand, and agree to comply with all Commission standards of practice.
6. Writing samples shall also be submitted upon the request of the Executive Director.

Lawyer of the Day (LOD).

1. LOD Specialized Panels: 1. In-Custody.To be Eligible for LOD for in-custody proceedings, an attorney must:

Complete the Commission’s LOD Minimum Standards Training;

Be currently Eligible to accept Commission criminal case assignments;

Have previously been deemed Eligible for OUI and Domestic Violence cases in accordance with Chapter 3 of the Commission Rules;

Complete three full in-custody LOD shadow sessions on three separate days. The Eligible LOD(s) who were shadowed must verify in writing to the Commission that the applicant completed each shadow session; and

Certify that they have read, understand, and agree to comply with all Commission standards of practice.

• 1. Walk-In. To be Eligible for LOD for walk-in proceedings, an attorney must:

Complete the Commission’s LOD Minimum Standards Training;

Be currently Eligible to accept Commission criminal case assignments;

Have previously been deemed Eligible for OUI and Domestic Violence cases in accordance with this Chapter;

Complete three full walk-in LOD shadow sessions on three separate days. The Eligible LOD(s) who were shadowed must verify in writing to the Commission that the applicant completed each shadow session; and

Certify that they have read, understand, and agree to comply with all Commission standards of practice.

• 1. Juvenile. To be Eligible for juvenile LOD proceedings, an attorney must:

1. Complete the LOD Minimum Standards Training prior to or within three months of being Eligible for LOD assignments;

2. Be currently Eligible to accept Commission juvenile case assignments;

3. Have previously been deemed Eligible for juvenile felony cases in accordance with this Chapter;

4. Complete three full juvenile walk-in LOD shadow sessions on three separate days. The Eligible LOD(s) who were shadowed must verify in writing that the applicant completed each shadow session;

5. Complete three full juvenile in-custody LOD shadow sessions on three separate days. The Eligible LOD(s) who were shadowed must verify in writing that the applicant completed each shadow session; and

6. Certify that they have read, understand, and agree to comply with all Commission LOD standards of practice.

PDS Liaison.

1. To be Eligible to serve as a PDS Liaison, an attorney must: 1. Be Eligible to accept Commission case assignments; 2. Have at least five years of experience practicing criminal defense; 3. Demonstrate a history of providing high quality legal services; 4. Have experience practicing law in the court(s) in which counsel is seeking to serve as the PDS Liaison; and 5. Certify that they have read, understand, and agree to comply with all Commission standards of practice.

Resource Counsel.

1. To be Eligible to serve as Resource Counsel, an attorney must:

• 1. Submit three letters of reference from attorneys with whom the attorney applicant does not practice that address the attorney’s ability to work with and advise other attorneys of varying experience levels; 2. Have at least five years’ experience actively practicing in the area of law for which counsel is seeking eligibility as Resource Counsel; 3. Be currently Eligible to accept Commission case assignments; 4. Demonstrate a history of providing high quality legal services; 5. Demonstrate exceptional litigation skills and experience; 6. Demonstrate high ethical standards;
• 1. Have not had a Commission investigation or Board of Bar Overseers complaint which resulted in a finding that the attorney violated any Commission rule or Rule of Professional Responsibility within the three years immediately preceding counsel’s Resource Counsel Application; and 2. Certify that they have read, understand, and agree to comply with all Commission standards of practice.

1. Counsel must reapply to serve as Resource Counsel on an annual basis. That application is due at the same time as the Commission’s annual renewal.
2. Counsel serves as Resource Counsel at the discretion of the Executive Director. The Executive Director may terminate someone’s eligibility to serve as Resource Counsel at any time, with or without cause.

SECTION 4. Waiver of Certain Eligibility Requirements.

An attorney who wishes to receive assignments for one or more of the Specialized Panels listed above but who does not meet requirements for both (a) Practice Experience and (b) Trial/Litigation Experience may seek a waiver of either, but not both, requirements.

An attorney seeking a waiver must provide the Executive Director with written information explaining the need for a waiver and the attorney’s experience and qualifications to provide high-quality representation to the indigent people whose charges or litigation matters are covered by this rule.

The Executive Director may consider other litigation experience, total years of practice, or any other information deemed relevant in granting or denying a waiver to any attorney.

SECTION 5. Overlapping Offenses.

• • 1. If a case involves multiple offenses that are categorized within Specialty Panels, counsel must be Eligible for all Specialty Panels that are implicated to accept assignment to the case. 2. If an offense is categorized as multiple different Specialty Panels, the attorney must be Eligible for all Specialty Panels implicated by the offenses to accept assignment to the case.

SECTION 6. Applicability.

Based on the passage of 4 MRSA § 1807, counsel will be eligible for specialized panels under the least restrictive criteria as between this Rule and 4 MRSA § 1807. This section of Chapter 3 expires on January 31, 2026.

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AUTHORITY: 4 M.R.S.A. §§ 1804(2)(B), (2)(G), (3)(E) and (4)(D)

EFFECTIVE DATE: July 8, 2011

AMENDED:

June 10, 2016 – filing 2016-091

March 25, 2024 – filing 2024-077

July 31, 2024 – filing 2024-174 (Emergency)

April 20, 2025 – filing 2025-085

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025. Additional filing history information added to the rule history section as well.

APAO ACCESSIBILITY CHECK: September 30, 2025 (no issues detected)

AMENDED:

October 5, 2025 – filing 2025-189

Chapter 4 Caseload Standards for Assigned Counsel and Contract Counsel

Code Me. R. 94-649 Ch. 4 Caseload Standards for Assigned Counsel and Contract Counsel {#sec-94-649-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 4}

Summary: The purpose of this rule is to implement 4 M.R.S. § 1804(2)(C) by prescribing “[s]tandards for assigned counsel and contract counsel caseloads” for attorneys accepting assignments to represent consumers of public defense services. The objective is to ensure that attorneys are not overscheduled or overworked and are able to provide effective, high-quality, representation to each client.

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SECTION 1. DEFINITIONS

1. Points. “Points” means the weight assigned to each case type.
2. Case Type. “Case type” means the type of matter to which the attorney is assigned.
3. Maximum Case Type. “Maximum case type” means the maximum number of cases of a particular case type that an attorney could carry at one time, if the attorney only accepted cases of that one type.
4. Average Hours Per Case. “Hours Per Case” means the anticipated average number of hours that would be spent on a case of a particular type.
5. Maximum Active Caseload Limit. “Maximum Active Caseload Limit” means the maximum total points across all case types that an attorney may carry on their caseload at any given time and remain eligible to receive assignments, based on the percentage of an attorney’s work hours which are dedicated to assigned cases.
6. Maximum Annual Hours Limit. “Maximum Annual Hours Limit” means the presumptive maximum number of hours that the Commission holds an attorney should work for consumers of public defense services over a rolling 12-month period, as modified by the percentage of an attorney’s work hours which are dedicated to assigned cases. 1. The maximum annual hours limit is only used for purposes of applying the caseload limits. If an attorney’s vouchers exceed the maximum annual hours, the attorney will still be paid in accordance with Commission rules.
7. Homicide. "Homicide” has the same meaning as defined by Chapter 3 of the Commission rules.
8. Executive Director. "Executive Director" means the Executive Director of PDS or the Executive Director’s decision-making designee.
9. PDS Liaison. “PDS Liaison” means the attorney who performs services for clients as part of a specialty court team but who has not otherwise been appointed to represent a specific client on a specific docket.

SECTION 2. CASE TYPE CALCULATION

Criminal & Juvenile Cases:

• 1. In each docket, the charge assigned the highest points—at the time of appointment—determines the case type. 2. Other offenses contained within a single charging instrument are not assigned a point value. 3. If an attorney represents a client on multiple dockets, each docket is considered a separate case. Each separate case is assigned cumulative points. 4. The point value assigned is applicable to each case from assignment through disposition of the matter. Post-conviction reviews and probation violations are considered new case types, regardless of whether the attorney represented the client in the original case.

1. Child Protective Cases: 1. The point value assigned is applicable to the entire case, from assignment through final resolution of the matter at the district court level. Points are not assigned to each distinct phase ( e.g. , jeopardy, termination of parental rights). 2. If a client has multiple pending child protective docket numbers because the client has multiple children, only one docket number is assigned a point value at any one time.
2. Appeals to the Supreme Judicial Court of Maine: 1. Appeals to the Supreme Judicial Court of Maine are considered new case types, regardless of whether the attorney represented the client in the trial court.
3. Lawyer of the Day: 1. The point value associated with lawyer for the day duties is assigned per appearance. 1. If counsel serves as lawyer of the day for a morning session that continues into the afternoon, that will be one appearance. If counsel serves as lawyer of the day for a morning session and then a subsequent afternoon session with a second appearance time and list, that will be two appearances. 2. Lawyer of the Day points are calculated on a rolling 12-month basis. This means that all of an attorney’s LOD appearances from the preceding 12 months will be included in the attorney’s point calculation.
4. PDS Liaison:

PDS Liaison assignments are assigned points based on the hours the particular PDS Liaison spent performing PDS Liaison services in the preceding 12 months. The total hours performed as PDS Liaison are then converted to points based on 7.4 hours being worth 1 point.

SECTION 3. POINTS

The Commission has established the following point values for each respective case type:

Case Type:

Points:

Maximum Case Type:

Average Hours Per Case:

Homicide

33.75

8

248

Class A Crime other than Homicide

4

67

29.6

Class B & C Person Crime

3

90

22.2

Class B & C Property Crime

2

135

14.8

Class D & E Crime

1

270

7.4

Probation Violation

1.25

216

9.25

Post-Conviction Review

6

45

44.4

Appeal

10

27

74

Juvenile

2

135

14.8

Lawyer of the Day (per appearance)

0.5

540

3.7

Protective Custody

5

54

37

Involuntary Commitment

1.25

216

9.25

Inv. Commit. Appeal to Superior Court

2

135

14.8

Emancipation

0.75

357

5.6

Probate

3

90

22.2

Pet. for Mod. of Release or Treatment

3

90

22.2

Petition for Release

3

90

22.2

SECTION 4. LIMITS

The Commission has established a maximum active caseload limit of 270 points, based on a presumptive maximum annual hours limit of 2,000. An attorney whose caseload exceeds their Maximum Active Caseload Limit at any one time is ineligible to receive additional assignments to represent consumers of public defense services, other than additional case assignments for existing clients, unless granted a waiver pursuant to Section 7 below.

The applicable maximum caseload and hours limits are reduced proportionately, based upon the percentage of the attorney’s work hours that are dedicated to Commission cases. The following chart reflects this calculation, based on an active caseload limit of 270 points and an annual limit of 2,000 billed hours:

% of Attorney’s Work Hours Spent on Commission Cases:

Maximum Active Caseload Limit:

Maximum Annual Hours Limit:

100%

270

2,000

75%

202

1500

50%

135

1000

25%

67

500

10%

27

200

Case Closed:

When a case is closed in the Commission’s case management system, the points assigned to that case are deducted from the attorney’s active caseload points total.

Deferred Disposition:

When the disposition of a case in the Commission’s case management system is changed to reflect a deferment, the points assigned to that case are deducted from the attorney’s active caseload points total.

Other events that toll cases:

When a case enters a status that effectively tolls its progress, the points assigned to that case may be deducted from the attorney’s active caseload points total at the discretion of the Executive Director. Events that effectively toll the progress of a case may include a filing; long-term continuance; client in absent or fugitive status; for the time after oral argument, pending a decision in a case before the Maine Supreme Judicial Court; or similar events.

SECTION 5. APPLICATION

Applicable Caseload Limit:

All attorneys accepting assignments to represent consumers of public defense services are required to annually certify to the Commission approximately what portion of their annual working hours are dedicated to assigned cases.

All attorneys who are eligible to accept case assignments on the effective date of this rule must submit their first certification not later than 30 calendar days after the effective date of this rule and by July 15^thof that year and every year thereafter, as outlined below.

Attorneys who apply to accept Commission cases will be required to submit this certification prior to receiving case assignments.

Attorneys who renew their eligibility to accept Commission cases must, at the time of the submission of their renewal application, submit a new certification of approximately what portion of their annual working hours are dedicated to assigned cases. This certification must be submitted to the Commission no later than July 15^th of each year.

After a certification is submitted, the attorney’s Maximum Active Caseload Limit will be set in the Commission’s information management system.

If an attorney’s workload percentage changes significantly prior to the annual certification, the attorney can adjust their Maximum Active Caseload Limit.

Eligible attorneys who are under the Maximum Active Caseload Limit will always have the ability to opt out of case types and courts to reduce the number of new assignments they receive.

This certification must be completed on the form provided by the Commission.

Failure to complete the certification as required will result in suspension from all rosters until the certification has been completed to the satisfaction of the Executive Director.

Suspected falsification of a certification will result in the initiation of a Commission investigation.

An attorney may set their workload percentage to lower than the actual number but may not set it higher than the actual number. For example, if 75% of an attorney’s workload is dedicated to assigned cases, they may set their percentage to a number lower than 75% but may not set it to a number higher than 75%.

Case Entry & Closing:

Counsel are responsible for ensuring that all cases are opened in the Commission’s case management system within 7 calendar days of receiving notice of assignment in any form, and that cases are closed in the Commission’s case management system within 7 days of the completion of work on the file.

SECTION 6. EXCEPTIONS

If an attorney has reached the maximum active caseload and/or annual hours limit, the attorney may exceed those limits to accept new assigned cases for a client the attorney then presently represents. The points and hours associated with the new cases will be calculated and added to the attorney’s total in accordance with this rule.

SECTION 7. WAIVER

An attorney may apply for a temporary waiver of the maximum active caseload limit.

A temporary waiver may be granted for a period of up to 6 months.

Application must be made to the Executive Director in the manner designated by the Executive Director.

Waivers are discretionary and will only be granted for good cause.

In determining whether to grant a waiver, the Executive Director may consider some or all the following factors:

The attorney’s representation about their current capacity to accept additional cases;

The reason the waiver is being requested;

The attorney’s experience level;

Whether the attorney has support staff;

Whether the attorney represents a client in multiple, related dockets which require less time to resolve;

To the extent that data is available to the Commission, whether the attorney practices primarily in courts experiencing longer average times to resolution of cases; and/or

Any other factors relevant to whether, in the discretion of the Executive Director, the waiver should be granted.

SECTION 8. EFFECTIVE DATE

This Chapter becomes effective on January 1, 2024.

History

• STATUTORY AUTHORITY: 4 M.R.S. §§ 1804(2)(C), (2)(G) and (4)(D)
• EFFECTIVE DATE: January 1, 2024 – filing 2023-135
• AMENDED: September 1, 2024 – filing 2024-205
• NONSUBSTANTIVE CORRECTION: September 3, 2024 (typographical error corrected in the last sentence of the summary section).

Chapter 5 Co-Counsel Requirements

Code Me. R. 94-649 Ch. 5 Co-Counsel Requirements. {#sec-94-649-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 5}

Summary: This Chapter establishes a process for requesting Co-counsel, expectations of Co-counsel, parameters for payment of Co-counsel, and guidelines for the delegation of tasks in assigned cases.

SECTION 1. DEFINITIONS.

Executive Director. “Executive Director” means the Executive Director of the Maine Commission on Public Defense Services (PDS) or the Executive Director’s decision-making designee.

Court-Assigned Counsel. “Court-Assigned Counsel” means private counsel licensed to practice law in Maine, designated eligible to receive an assignment to a particular case, and initially assigned by a Court to represent a particular client in a particular matter. For the purposes of this rule, “Court-Assigned Counsel” does not include any employee of PDS.

Commission-Assigned Counsel. “Commission-Assigned Counsel” means private counsel licensed to practice in Maine, designated eligible to be assigned to provide a particular service or to represent a particular client in a particular matter, and assigned by PDS to provide that service or represent a client. For the purposes of this rule, “Commission-Assigned Counsel” does not include any employee of PDS.

Counsel. “Counsel” means a Court-Assigned Counsel or Commission-Assigned Counsel, or both. For purposes of this rule, “Counsel” does not include any employee of PDS.

Co-counsel. “Co-counsel” means an attorney who works with another attorney on a particular case. Both attorneys must be counsel of record, professionally responsible for the case, and actively participate in the representation of the client.

Contested Hearing. “Contested Hearing” means a hearing at which a contested issue is submitted to the court for resolution after evidence is taken or witnesses are presented.

Eligible. “Eligible” means the status assigned to an attorney who has satisfied all the requirements of Chapter 2, has satisfied all requirements of Chapter 3 for any applicable Specialized Panels, has applied and been approved by the Commission to receive assignments of the applicable case type, is current on their annual renewal, and is not under suspension by the Commission.

Substantive Meeting. “Substantive Meeting” means phone calls, emails, face-to-face meetings, and the like, with clients about matters which materially affect the disposition of the case.

Substantive Appearance. “Substantive Appearance” includes, without limitation: bail hearings, contested motions hearings, dispositional conferences at which material discussions about the case occur, adjudicatory hearings, jury selection, trial, contested sentencing hearing, commitment hearings, appellate oral argument, hearings on preliminary protective orders, jeopardy hearings, judicial reviews, entry of a plea agreement, and hearings on petitions for termination of parental rights.

Informed Consent. “Informed consent” means a person’s agreement to a proposed course of conduct after the lawyer has communicated adequate information and explanation about the material risks of and reasonably available alternatives to the proposed course of conduct. Whether a client has given informed consent to representation shall be determined in light of the mental capacity of the client to give consent, the explanation of the advantages and risks involved provided by the lawyer seeking consent, the circumstances under which the explanation was provided and the consent obtained, the experience of the client in legal matters generally, and any other circumstances bearing on whether the client has made a reasoned and deliberate choice.

SECTION 2. PROCEDURE FOR REQUESTING CO-COUNSEL.

The procedure for requesting Co-counsel is as follows:

Prior to seeking appointment of Co-counsel from a court, Counsel must first obtain written authorization from the Executive Director. An attorney seeking such authorization shall submit a written request in a form designated by the Executive Director. The request must include:

The name of the client;

The type of case. If it is a criminal matter, the charge(s);

The docket number(s);

The reason Co-counsel is requested;

Whether there is already Co-counsel assigned to represent the client in the matter; and

The name of the prospective Co-counsel.

If the Executive Director authorizes Co-counsel, the assigned attorney must file with the applicable court a motion for appointment of Co-counsel. That motion must state that PDS has authorized the request for Co-counsel.

Counsel may only seek appointment of Co-counsel who is Eligible to receive PDS case assignments, but only one of the attorneys needs to have Chapter 3 eligibility for any Specialized Panel.

SECTION 3. PARAMETERS FOR CO-COUNSEL REQUESTS.

1. The presumption is that PDS will only pay for one attorney per case. PDS will only pay for more than one attorney per case when PDS approves a Co-counsel request pursuant to this Chapter.
2. The Executive Director has broad discretion in determining whether a Co-counsel request will be granted, but requests will be granted liberally.
3. Co-counsel requests will be reviewed from a client-centric perspective.
4. Absent extraordinary circumstances, the Executive Director will not authorize more than two attorneys to serve as Co-counsel for a particular client in a particular matter.
5. If Counsel does not obtain written authorization for Co-counsel from the Executive Director prior to seeking appointment of Co-counsel, then the Co-counsel will not be paid for any work on the case.
6. Co-counsel does not need to be requested for an attorney’s work to be compensable if: 1. The attorney assigned and the attorney who was not assigned to represent the client work in the same law firm; 2. The attorney who was not assigned to represent the client is eligible to receive case assignments pursuant to Chapter 2 of the Commission Rules; 3. The attorney who was not assigned to the case will not be appearing in court on behalf of the client, engaging in negotiations related to the case, or having Substantive Meetings with the client; and 4. The attorney(s) who was/were not assigned to represent the client will be spending no more than a combined total of three hours of work on the client’s matter(s) unless Counsel receives prior written authorization from the Executive Director.

SECTION 4. EXPECTATIONS OF CO-COUNSEL.

When Co-counsel is assigned:

1. Each Co-counsel must enter a case for that client in the PDS electronic case management system.
2. Time entries for each Co-counsel must be maintained in their own case entries for that client in the PDS electronic case management system.
3. Each Co-counsel must be actively engaged in the representation of the client.
4. At least one Eligible Co-counsel must be present for all Substantive Meetings.
5. At least one Eligible Co-counsel must be present for every Substantive Appearance.
6. Counsel must avoid unnecessary duplication of effort.

SECTION 5. VERTICAL REPRESENTATION.

• • 1. Counsel may delegate tasks related to the representation of an assigned client to another Eligible attorney only to the extent consistent with Counsel’s duties to the client under the Constitutions of the United States and the State of Maine, the Maine Rules of Professional Responsibility, applicable PDS rules, and to the extent consistent with this Chapter. The assigned attorney is nevertheless responsible to PDS and to the client individually for all services provided by any attorney during the period of the assignment. 2. The following tasks may not be delegated: hearings on dispositive motions; jury selection; trials; sentencing hearings; summary preliminary hearings; jeopardy hearings; contested judicial reviews; hearings on petitions for termination of parental rights; appellate oral arguments; or plea agreements, unless all the terms have been fully negotiated, reviewed with the client by the attorney assigned to represent them, and agreed to by the client. 3. Delegation of any task may only occur subject to the following: 1. Questions related to the delegation of any task must be resolved from a client-centric perspective. 2. Delegation shall be an exception to the expectation that Counsel will personally provide continuous representation of assigned clients. 3. Delegation of any task may be made only to Eligible attorneys. 4. Delegation of any task may be made only with informed client consent. 4. If an attorney cannot appear to represent a client at an appearance for which delegation is prohibited, Counsel may, with informed client consent, seek the assignment of Co-counsel in the matter. Where appropriate and permitted by rule, the appearance of Co-counsel may be limited. 5. In the context of delegation of an appearance for an assigned client, informed client consent shall include informed consent from the client to reveal those confidences and secrets as are necessary to the delegated representation. 1. “Confidence” refers to information protected by the attorney-client privilege under applicable law, and “secret” refers to other information relating to the representation if there is a reasonable prospect that revealing the information will adversely affect a material interest of the client or if the client has instructed the lawyer not to reveal such information. 2. Counsel shall document the client’s informed consent prior to delegating an appearance. Where possible that informed consent shall be in writing and signed by the client. Counsel shall maintain documentation of consent and shall provide it to PDS on request. 6. If a task is delegated pursuant to this Chapter, the attorney to whom the task was delegated must enter a case in the PDS electronic case management system and bill their time under that case entry. Case entry, closure, and billing must be conducted in accordance with the applicable PDS rules.

SECTION 6. NON-COMPENSABLE TASKS.

Work performed solely for the purpose of carrying out the attorney’s obligations pursuant to Maine Rule of Professional Conduct 5.1 is non-compensable. Collaborative work that furthers a client’s interests in a case is compensable.

History

• STATUTORY AUTHORITY: 4 M.R.S.A. §§ 1804 (2)(G), and (4)(D)
• EFFECTIVE DATE (NEW): June 3, 2025 – filing 2025-125
• EFFECTIVE DATE (NEW): APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 7 Payment for Attending Reimbursement of Expenses Incidental to Attending Trainings (formerly Ch. 301-A)

Code Me. R. 94-649 Ch. 7 -C: Payment for Attending and Reimbursement of Expenses Incidental to Attending Trainings {#sec-94-649-ch.-7 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 7}

Summary: This Chapter establishes eligibility for payment to private court and/or Commission-Assigned Counsel for attending and reimbursement of expenses incidental to attending trainings. This Chapter also sets forth administrative procedures for payment and reimbursement of eligible training expenses. This Chapter supersedes the Payments for Attending Training Policy, which was promulgated on May 15, 2023.

SECTION 1. DEFINITIONS

Court-Assigned Counsel. “Court-Assigned Counsel” means private counsel licensed to practice law in Maine, designated eligible to receive an assignment to a particular case, and initially assigned by a Court to represent a particular client in a particular matter. For the purposes of this rule, “Court-Assigned Counsel” does not include any employee of PDS.

Commission-Assigned Counsel. “Commission-Assigned Counsel” means private counsel licensed to practice in Maine, designated eligible to be assigned to provide a particular service or to represent a particular client in a particular matter, and assigned by PDS to provide that service or represent a client. For the purposes of this rule, “Commission-Assigned Counsel” does not include any employee of PDS.

Counsel. As used in this Chapter, “Counsel” means a Court-Assigned Counsel or Commission-Assigned Counsel, or both.

PDS or Commission. “PDS” or "Commission" means the Commissioners of the Maine Commission on Public Defense Services.

Training Provided by the Commission. “Training Provided by the Commission” means and includes any training, whether or not that training qualifies for CLE credit through the Board of Overseers, that is:

Prepared and/or presented by PDS staff at a PDS sponsored event; or,

Prepared and/or presented on behalf of, or at the direction of, PDS or its staff; and,

Is presented live, including live webcast; or,

Is presented through proctored playback of a recording, in whole or in part.

Executive Director. "Executive Director" means the Executive Director of PDS or the Executive Director’s decision-making designee.

On Camera. “On Camera” means that Counsel’s camera is turned on, pointing toward Counsel, and Counsel’s entire face is visible on the screen.

SECTION 2. ELIGIBILITY

The prerogative to request payment or reimbursement pursuant to this Chapter is limited to Counsel who—on the date the training occurs—are eligible to receive assignments through the PDS system and are representing five or more assigned clients.

Payment or reimbursement pursuant to this Chapter will only be made to eligible Counsel for payment to attend or reimbursement of expenses incidental to attending a training provided by the Commission.

SECTION 3. PAYMENT

To receive payment for attending a training, counsel must attend personally, be engaged with the training, and not otherwise engaged or multitasking during its presentation. Driving while attending a training is strictly prohibited. Counsel will be removed from the training and not paid for any training time while driving. Where a training may be provided remotely, counsel must be on camera during the entire presentation absent specific direction from the presenter to the contrary.

Notwithstanding any other provisions of this or other Commission rules, payment will only be made if counsel attends at least 75% of the instructional time of a training provided by the Commission. No payment will be made to counsel who attend less than 75% of the instructional time.

1. For multiday trainings, the 75% attendance requirement will be applied based on counsel’s attendance at the entire training, rather than a per-day basis, unless otherwise specified in writing by the Executive Director. This subsection shall be applicable retroactively to January 1, 2024.

Payment will be made at the authorized rate in effect on the date of the training.

Payment will be made for actual training time attended, exclusive of breaks.

Payment will also be made at the then-current hourly rate for time spent traveling to and from the training.

Payment will be made in increments of .1 hours and only for time spent attending the training or traveling to and from the training. Counsel may not record, or seek payment for, any time spent opening or closing the case file as described in section 6(3), below.

SECTION 4. REIMBURSABLE EXPENSES

Reimbursable expenses include only:

1. Training registration fees.
2. Mileage. Mileage reimbursement shall be made at the State rate applicable to confidential state employees on the date of the travel. Mileage is calculated based upon the distance between the attorney’s office address, or the location from which the attorney departs for the training, whichever is nearer to the training, and the location of the training. If multiple attorneys travel to a training in a single vehicle, only one attorney may be reimbursed for the mileage.
3. Tolls. Tolls for travel to and from the training. The attorney must have a receipt
4. Hotels. Hotel stays necessary to attend a training are reimbursable at the Standard Rate, as set by the U.S. General Services Administration, that is effective on the date of the hotel stay. 1. Counsel must receive prior written authorization from PDS for hotel stays to be reimbursable. 2. Absent exceptional circumstances and at the discretion of the Executive Director, hotel stays for attending trainings will not be authorized if the training is less than 35 miles from Counsel’s office.
5. Parking. Fees paid to park at a training.

SECTION 5. MAXIMUM.

Counsel is only eligible for payment under this Chapter for a maximum of 40 hours per fiscal year, beginning on July 1, 2023. There is no maximum number of billable hours pursuant to this Chapter prior to July 1, 2023.

The 40-hour maximum includes time spent attending and travel for the purpose of attending eligible trainings.

For purposes of calculating the maximum billable hours, the relevant date is the date of the training for which counsel is seeking payment.

SECTION 6. ADMINISTRATION.

Enforcement. PDS staff reserve the right to deny Counsel access to a training or to remove Counsel from a training to enforce compliance with this policy, Commission Rules, or eligibility requirements for a particular training. If Counsel is removed from a training by PDS staff, they will not be paid for the period during which they were removed, nor will that period count toward the 75% attendance provision of Section 3(2), above.

Itemization of Claims. Claims for all expenses must be itemized and include documentation. Claims for mileage shall be itemized and include the start and end points for the travel in question.

Payment will be made through the PDS electronic case management system. To request payment, counsel must:

Create a “case” in the PDS electronic case management system for each training for which counsel requests payment or reimbursement. Do not enter a case in the PDS electronic case management system until after the training has occurred. If one training lasts multiple days, only one case should be entered for the entire training;

Court must be set to “Training”;

The file type must be set to “TRAIN”;

Client information must reflect counsel’s first and last names. Other client demographic information does not need to be completed;

The docket number will be provided at the training and must be entered precisely as provided or payment will not be available;

Assignment date must be the first date of the training and the disposition date must be the last date of the training for which payment is sought;

The charge sequence number must be: 100031;

The disposition must be “Attend Training”;

The time entry for attendance must be “Attend PDS Training”;

The time entry for travel must be “Training Travel”;

Expenses, if any, must be itemized; and

Then create and submit a voucher.

4. Notwithstanding any other provision of any Commission rule or policy, vouchers for payment for attending a training must be submitted within 90 days of the training without exception. Untimely vouchers for payment or reimbursement of expenses governed by this Chapter will not be paid. Attorneys are encouraged to submit their vouchers at the conclusion of the training without delay.

5. The opportunity to request payment for attending trainings does not create a right to attend any specific number of trainings, or any particular training. There are, or may be, limits on the number of people who may attend a particular training. There are, or may be, limits on the eligibility to attend a particular training.

History

• STATUTORY AUTHORITY: 4 M.R.S. §1804(2)(F),
• EFFECTIVE DATE: October 2, 2023 – filing 2023-186
• AMENDED: September 1, 2024 – filing 2024-206
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• AMENDED: ADMINISTRATIVELY RECODIFIED from 94-649 C.M.R. Ch. 301-A to 94-649 C.M.R. Ch. 7-C:
• AMENDED: April 2, 2026

Chapter 7 Requirements for Payment of Paralegal and Secretarial Services (APAO Note: This chapter was formerly codified as 94-649 C.M.R. Ch. 301-B and has been re-codified as 94-649 C.M.R. Ch. 7-D, effective July 14, 2026.)

Code Me. R. 94-649 Ch. 7 -D: Requirements for Payment of Paralegal and Secretarial Services {#sec-94-649-ch.-7 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 7}

Summary: This Chapter establishes a method for Counsel to seek payment for Paralegal and Secretarial Services on assigned cases.

SECTION 1. Definitions.

PDS or Commission. “PDS” or “Commission” means the Maine Commission on Public Defense Services.

Executive Director. “Executive Director” means the Executive Director of PDS or the Executive Director’s decision-making designee.

Counsel. “Counsel” means a private attorney designated eligible by the Commission to be assigned to provide a particular service or to represent a particular client in a particular matter, and assigned by PDS or a court to provide that service or represent a client.

Paralegal. “Paralegal” means a person, qualified by education, training, or work experience who is employed or retained by a lawyer, law office, corporation, governmental agency, or other entity and who performs specifically delegated substantive legal work for which a lawyer is responsible.

Paralegal Services. “Paralegal Services” means specifically delegated substantive legal work for which a lawyer is responsible.

Secretary. “Secretary” means a person who is employed or retained by a lawyer, law office, corporation, governmental agency, or other entity to provide Secretarial Services.

Secretarial Services. “Secretarial Services” means administrative staff support services other than Paralegal Services.

Payee. “Payee” means the person or entity that Counsel has designated to receive payment for services rendered by Counsel through submitting a Designation of Payee form to PDS.

SECTION 2. Hourly Rate of Payment.

Paralegal Services and Secretarial Services will be compensated at a rate of $55 per hour subject to the limitations established by this Chapter and Chapter 301.

SECTION 3. Limitations.

Compensable Tasks. Counsel may be compensated for all Secretarial Services and Paralegal Services which would be compensable under Chapter 301, subject to the following limitations:

1. Counsel will only be compensated for tasks which may be delegated, consistent with the Maine Rules of Professional Conduct and Commission rules.
2. Secretarial Services and/or Paralegal Services must be attributable to a particular assigned client’s case to be compensable. General office or file maintenance tasks are not compensable.
3. Counsel will only be compensated for a maximum of 20 hours of Secretarial Services and/or Paralegal Services, combined, per case, unless—upon application of Counsel on a form designated by the Executive Director—additional hours are authorized by the Executive Director.
4. Counsel will not be compensated for travel time or travel-related expenses incurred by Paralegals or Secretaries unless Counsel obtains prior written authorization from the Executive Director.

SECTION 4. Administration.

Billing Method.

1. Counsel may only be compensated for Secretarial Services and Paralegal Services via vouchers submitted through the PDS electronic case management system. Invoices seeking such compensation which are submitted through any other means will not be paid. Any voucher submitted for payment may include both time for Secretarial Services and/or Paralegal Services and the legal services of Counsel. Counsel need not enter a separate voucher for Secretarial Services and/or Paralegal Services.
2. Time submitted for Paralegal Services or Secretarial Services performed by someone who is an employee of Counsel shall be submitted as a time entry by the Paralegal or Secretary under their own profile in the PDS electronic case management system.
3. Time submitted for Paralegal Services or Secretarial Services performed by someone who is a contractor of Counsel shall be submitted by Counsel as an expense and attached to the relevant voucher in the PDS electronic case management system. Said expense must be accompanied by a receipt reflecting that Counsel paid that amount to the person who preformed the Paralegal Services and/or Secretarial Services.

Timekeeping. Paralegal Services and Secretarial Services must be recorded in increments of 0.10 hours. Each distinct task performed must be itemized and include the date the task was performed, the hours expended, the name of the person who performed the task, the type of task, and a description of the task that is sufficiently specific and detailed to enable one to understand the nature and extent of the services provided.

Payment. Payment for Paralegal Services or Secretarial Services shall be made to Counsel’s Payee. No payment allowable under this Chapter shall be made directly to any Paralegal or Secretary.

Timing. Vouchers submitted greater than 90 days after the terminal case event shall be reduced in accordance with Chapter 301, Section 6.

SECTION 5. REPEALED.

History

• STATUTORY AUTHORITY: 4 MRSA § 1804(2)(G)
• APAO ACCESSIBILITY CHECK: August 12, 2025
• EFFFECTIVE DATE (NEW): August 17, 2025 – filing 2025-160
• AMENDED: July 14, 2026 – filing 2026-170 (APAO Note: This chapter was formerly codified as 94-649 C.M.R. Ch. 301-B and has been re-codified as 94-649 C.M.R. Ch. 7-D, effective July 14, 2026.)
• AMENDED: NONSUBSTANTIVE CORRECTION (correction of rule chapter number citation error in rule history section):
• AMENDED: July 20, 2026

Chapter 9 Guidelines for Determination of Financial Eligibility for Assigned Counsel and Reimbursement for Assigned Counsel Costs (formerly Ch. 401)

Code Me. R. 94-649 Ch. 9 Guidelines for Determination of Financial Eligibility for Assigned Counsel and Reimbursement for Assigned Counsel Costs {#sec-94-649-ch.-9 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 9}

Summary: This chapter establishes guidelines for determining a person’s financial eligibility for assigned counsel and for determining whether eligible persons should be required to reimburse the state for some or all of the cost of assigned counsel. These guidelines govern the work of financial screeners employed by the commission and are intended to provide guidance to courts in their determination of financial eligibility and the amount, if any, of reimbursement.

SECTION 1. DETERMINATION OF FINANCIAL ELIGIBILITY

1. Definitions. The following definitions shall be used in making a determination of financial eligibility:

A. Income. Income means actual available current annual total cash receipts before taxes of all persons who are resident members of, and contribute to, the support of a family unit. Income may also include potential wages from seasonal employment when the applicant has a history of seasonal employment. Types of income include, but are not limited to: wages, income from self-employment, rents, royalties, child support, alimony, Social Security benefits, including SSDI and SSI, TANF benefits, VA benefits, general assistance, cash benefits, unemployment compensation, workers compensation, insurance or pension benefits, strike benefits, interest, dividends, and military family allotments. Income does not include in-kind assistance such as food stamps or vouchers.

B. Cash assets. Cash assets means cash on hand; money in savings, checking, IRA, certificates of deposit or other readily accessible accounts; stocks or bonds that can be sold; and cash bail unless another person has been designated as the owner of the cash pursuant to 15 M.R.S.A. §1074(1).

C. Other assets. Other assets include equity in real estate equal to an amount necessary to obtain a home equity loan; cash value of insurance policies; cash value of pension, retirement, or profit sharing plans to which the applicant has access; equity value of major personal property items such as boats, snowmobiles, and motor vehicles that are not needed for work or family transportation; valuable jewelry; antiques or collections; and any other property that could be sold, exchanged, or used to obtain a loan.

D. Necessary Monthly Expenses. Necessary monthly expenses include only expenses necessary for the following:

(1) food;

(2) shelter, including mortgage payments on a principal residence, rent and utilities;

(3) medical care, including medical insurance premiums paid by the applicant and installment payments on debts for medical expenses;

(4) employment, including loan payments on a vehicle used to get to work and uniforms required by the employer;

(5) debts, including minimum payments on credit card debt and payments on student loans and long term (longer than 6 months) personal loans.

Expenses for items not listed above should not be included in the calculation of necessary monthly expenses.

2. Procedure for determining financial eligibility and amount of reimbursement. The following procedures shall be used for determining financial eligibility and the amount of any reimbursement obligation:

A. Determine gross income and assets of the applicant and all members of the applicant’s family unit.

B. If the cash assets of the applicant and the applicant's family unit exceed the amounts set forth below, the applicant is not eligible for assigned counsel. For adult criminal and juvenile cases: $1,000 in cases where the most serious charge alleges a Class D or E crime; $2,000 in cases where the most serious charge alleges a C crime; $3,000 in cases where the most serious charge alleges a B crime; $4,000 in cases where the most serious charge alleges a Class A crime; and $2,500 for child protective cases.

If the applicant’s cash assets are less than the amounts above, it is

necessary to determine whether the applicant can convert other assets into cash so that the applicant can retain an attorney. If the other assets are such that they can be used to hire an attorney, the applicant is not eligible. If the applicant is or has been converting cash assets into other assets, such as making a large down payment or substantial monthly payments on a motor vehicle or similar item, this fact can be taken into consideration in determining eligibility.

D. If the applicant’s cash and convertible assets equal less than the amounts listed in Paragraph 2, the income amount should be compared to the appropriate amount on the Income Table attached as Appendix A. The Income Table is based on 110% of the federal poverty guidelines and shall be updated by the Commission annually on July 1st. If the income of the applicant and applicant's family unit is less than the appropriate amount on the Income Table, the applicant is eligible for assigned counsel.

E. In order to determine whether the applicant can reimburse the State for the expense of assigned counsel, compare the monthly income of the applicant with the applicant’s necessary monthly expenses. If income exceeds necessary monthly expenses, the applicant should be required to make periodic payments based on the amount by which income exceeds necessary expenses to reimburse the State for the cost of assigned counsel. Payments should be required up to an amount equal to the maximum fee set by the Commission for the type of case for which counsel is assigned. Maximum fees are set forth on Appendix B. Cash and convertible assets that are available but are insufficient to disqualify an applicant under subsection 2 should also be considered when determining whether an applicant can make reimbursement and the amount of reimbursement.

F. Applicants whose income exceeds 110% of the federal poverty guidelines may be eligible for assigned counsel if they have extraordinary necessary monthly expenses that render them unable to retain counsel. In such cases, an order for reimbursement should be entered unless the interests of justice demand otherwise.

G. In any case where a person represented by assigned counsel subsequently retains counsel, the court should, when granting assigned counsel leave to withdraw, order the person to reimburse the State for amounts expended for representation by assigned counsel prior to the entry of appearance of retained counsel.

SECTION 2. BAIL

1. In all cases where a criminal defendant represented by assigned counsel has posted cash bail that has not been designated the property of another pursuant to 15 M.R.S.A. §1074(1), the bail should be ordered set-off pursuant to 15 M.R.S.A. §1074(3)(c) to reimburse counsel fees and other expenses paid by the state for representation in the proceeding in which bail is posted or in any unrelated proceeding.

History

• STATUTORY AUTHORITY: 4 M.R.S.A. §1804(2)(A) and (4)(D)
• EFFECTIVE DATE: June 23, 2012 – filing 2012-173
• EFFECTIVE DATE: ADMINISTRATIVELY RECODIFIED from 94-649 C.M.R. Ch. 401 to 94-649 C.M.R. Ch. 9:
• EFFECTIVE DATE: April 2, 2026
• EFFECTIVE DATE: APAO Note: Appendix A of rule updated to reflect updated federal poverty guideline information:
• EFFECTIVE DATE: August 4, 2026
• EFFECTIVE DATE: APPENDIX A
• EFFECTIVE DATE: INCOME TABLE FOR DETERMINATION OF ELIGIBILITY FOR ASSIGNED COUNSEL
• EFFECTIVE DATE: Family Size
• EFFECTIVE DATE: Gross Annual
• EFFECTIVE DATE: Income
• EFFECTIVE DATE: Monthly
• EFFECTIVE DATE: Gross
• EFFECTIVE DATE: Weekly
• EFFECTIVE DATE: Gross
• EFFECTIVE DATE: 1
• EFFECTIVE DATE: $17,556.00
• EFFECTIVE DATE: $1,463.00
• EFFECTIVE DATE: $337.62
• EFFECTIVE DATE: 2
• EFFECTIVE DATE: $23,804.00
• EFFECTIVE DATE: $1,983.67
• EFFECTIVE DATE: $457.77
• EFFECTIVE DATE: 3
• EFFECTIVE DATE: $30,052.00
• EFFECTIVE DATE: $2,504.33
• EFFECTIVE DATE: $577.92
• EFFECTIVE DATE: 4
• EFFECTIVE DATE: $36,300.00
• EFFECTIVE DATE: $3,025.00
• EFFECTIVE DATE: $698.08
• EFFECTIVE DATE: 5
• EFFECTIVE DATE: $42,548.00
• EFFECTIVE DATE: $3,545.67
• EFFECTIVE DATE: $818.23
• EFFECTIVE DATE: 6
• EFFECTIVE DATE: $48,796.00
• EFFECTIVE DATE: $4,066.33
• EFFECTIVE DATE: $938.38
• EFFECTIVE DATE: 7
• EFFECTIVE DATE: $55,044.00
• EFFECTIVE DATE: $4,587.00
• EFFECTIVE DATE: $1,058.54
• EFFECTIVE DATE: 8
• EFFECTIVE DATE: $61,292.00
• EFFECTIVE DATE: $5,107.67
• EFFECTIVE DATE: $1,178.69
• EFFECTIVE DATE: For each additional person add
• EFFECTIVE DATE: $6,248.00
• EFFECTIVE DATE: $520.67
• EFFECTIVE DATE: $120.15
• EFFECTIVE DATE: Allowable Cash Assets
• EFFECTIVE DATE: ClassA $4,000
• EFFECTIVE DATE: Class B $3,000
• EFFECTIVE DATE: Class C $2,000
• EFFECTIVE DATE: Class D & E $1.000
• EFFECTIVE DATE: Protective Custody $2,500
• EFFECTIVE DATE: APPENDIX B
• EFFECTIVE DATE: MAXIMUM FEES FOR VARIOUS CASE TYPES
• EFFECTIVE DATE: FEE SCHEDULE AND ADMINISTRATIVE PROCEDURES FOR PAYMENT OF COMMISSION ASSIGNED COUNSEL
• EFFECTIVE DATE: Type
• EFFECTIVE DATE: Amount
• EFFECTIVE DATE: Class A
• EFFECTIVE DATE: $2,500.00
• EFFECTIVE DATE: Class B & C (against person)
• EFFECTIVE DATE: $1,875.00
• EFFECTIVE DATE: Class B & C (against property)
• EFFECTIVE DATE: $1,250.00
• EFFECTIVE DATE: Class D & E (Superior or UCD)
• EFFECTIVE DATE: $625.00
• EFFECTIVE DATE: Class D & E (District Court)
• EFFECTIVE DATE: $450.00
• EFFECTIVE DATE: Post-Conviction Review
• EFFECTIVE DATE: $1,000.00
• EFFECTIVE DATE: Probation Revocation
• EFFECTIVE DATE: $450.00
• EFFECTIVE DATE: Miscellaneous
• EFFECTIVE DATE: $450.00
• EFFECTIVE DATE: Juvenile
• EFFECTIVE DATE: $450.00
• EFFECTIVE DATE: Child Protective
• EFFECTIVE DATE: $750.00
• EFFECTIVE DATE: Termination of Parental Rights (with hearing)
• EFFECTIVE DATE: $1,050.00
• EFFECTIVE DATE: Application for Involuntary Commitment
• EFFECTIVE DATE: $350.00
• EFFECTIVE DATE: Petition for Emancipation
• EFFECTIVE DATE: $350.00
• EFFECTIVE DATE: Petition for Modified Release Treatment
• EFFECTIVE DATE: $350.00
• EFFECTIVE DATE: Petition for Release or Discharge
• EFFECTIVE DATE: $350.00
• EFFECTIVE DATE: Criminal Direct Appeals & Appellate work
• EFFECTIVE DATE: $1,000.00
• EFFECTIVE DATE: Unsuccessful Application for Certificate of Probably Cause
• EFFECTIVE DATE: $750.00
• EFFECTIVE DATE: 94-649 Chapter 9 page 5

Chapter 101 Standards of Practice for Attorneys who Represent Juveniles in Juvenile Court Proceedings

Code Me. R. 94-649 Ch. 101 Standards of Practice for Attorneys Who Represent Juveniles in Juvenile Court Proceedings {#sec-94-649-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 101}

Summary: This Chapter establishes standards of practice for Commission assigned counsel providing representation in juvenile cases. Theses standards are intended to guide assigned counsel in the conduct of their representation and for use by the Commission in evaluating, supervising and training assigned counsel.

SECTION 1. SCOPE & PURPOSE

1. These Standards apply whenever defense counsel is assigned pursuant to the Maine Commission on Indigent Legal Services’ (MCILS) jurisdiction to provide representation to juveniles charged with juvenile or adult crimes who are financially unable to retain defense counsel and who are entitled to representation pursuant to the United States and Maine Constitutions.

These standards are intended as a guide for assigned defense counsel and for use by MCILS in evaluating, supervising and training assigned counsel. Although MCILS understands that not every action outlined in these standards is necessary in every case, the Commission will apply these standards, the Maine Rules of Criminal Procedure, the Maine Juvenile Code, and the Maine Rules of Professional Conduct, as well as all other Commission policies and procedures in evaluating the performance or conduct of counsel.

3. Role of defense counsel for the juvenile. The paramount obligation of defense counsel for the juvenile is to provide zealous and quality representation to the juvenile at all stages of the process. Defense counsel’s personal opinion of the juvenile’s guilt is not relevant to the defense of the case.

4. Expressed Preferences of the Juvenile

A. Defense counsel should represent the juvenile’s expressed preferences and follow the juvenile’s direction throughout the course of litigation. Defense counsel should refrain from the waiving of substantial rights or the substitution of their own view or the parents’ wishes for the position of the juvenile. In addition, defense counsel has a responsibility to advise the juvenile as to potential outcomes of various courses of action.

B. Defense counsel should advise the juvenile, present the juvenile with comprehensible choices, help the juvenile reach his or her own decisions and advocate the juvenile's viewpoint and wishes to the Court.

C. Defense counsel may request the appointment of a guardian ad litem if there are concerns for the juvenile’s safety, well-being, or physical, mental, or emotional health and defense counsel believes a guardian ad litem is necessary to advocate for the best interest of the juvenile.

5. Scope of Representation

A. Certain decisions relating to the conduct of the case are ultimately for the juvenile and other decisions are ultimately for defense counsel. The decisions which are to be made by the juvenile after full consultation with defense counsel are:

(1) What pleas to enter;

(2) Whether to accept a plea agreement;

(3) Whether to participate in a program;

(4) Whether to testify in his or her own behalf; and

(5) Whether to appeal.

B. Defense counsel should explain that final decisions concerning trial strategy, after full consultation with the juvenile and after investigation of the applicable facts and law, are ultimately to be made by defense counsel. The juvenile should be made aware that defense counsel is primarily responsible for deciding what motions to file, which witnesses to call, what questions to ask, and what other evidence to present. Implicit in the exercise of defense counsel's decision-making role in this regard is consideration of the juvenile’s input and full disclosure by defense counsel to the juvenile of the factors considered by defense counsel in making the decisions.

SECTION 2. GENERAL AUTHORITY AND DUTIES

1. Basic Competency of Defense Counsel in Juvenile Proceedings

A. Before agreeing to defend a juvenile, defense counsel has an obligation to make sure that they have sufficient time, resources, knowledge and experience to offer quality representation to the juvenile. Before defending a juvenile, defense counsel should observe juvenile court, including every stage of a juvenile proceeding, and have a working knowledge of juvenile law and practice.

B. Defense counsel should accept the more serious and complex cases only after having had experience and/or training in less complex juvenile matters. Where appropriate, defense counsel should consult with more experienced counsel to acquire knowledge and familiarity with all facets of juvenile representation, including information about the practices of judges, prosecutors, juvenile community corrections officers, and other court personnel.

C. There are special hearings for a juvenile, such as a bind-over hearing, in which defense counsel may not have the necessary skills and resources to represent the juvenile. In those proceedings defense counsel may need to consult with or seek co-counsel with adequate experience in these matters.

2 . Prior to representing a juvenile, at a minimum, defense counsel should receive training or be knowledgeable in the following areas:

A. Information about relevant federal and state statutes, court decisions and Maine court rules, including but not limited to:

(1) Maine Juvenile Code;

(2) Maine Rules of Criminal Procedure; and

(3) Maine Rules of Evidence;

B. Placement options for detention and disposition; and

C. Adolescent development, needs, and abilities.

3. Defense counsel representing juveniles should annually complete Continuing Legal Education relevant to the representation of juveniles. Additional legal education may include, but is not limited to:

A. Adolescent mental health diagnoses and treatment including the use of psychotropic medications;

B. How to read a psychological or psychiatric evaluation and how to use these in motions including but not limited to those involving issues of consent and competency relating to Miranda, search and waivers;

C. Normal childhood development (including brain development), developmental delays and mental retardation;

D. Information on the multidisciplinary input required in child-related cases, including information on local experts who can provide consultation and testimony;

E. Information on educational rights including special educational rights and services and how to access and interpret school records and how to use them in motions including but not limited to those related to consent and competency issues;

F. School suspension and expulsion procedures;

G. Use and application of the current assessment tool(s) used in your jurisdiction and possible challenges that can be used to protect the juvenile clients;

H. Immigration issues regarding juveniles; and

I. Cultural competence.

2. Basic Obligations of the Attorney

A. Defense counsel should:

(1) Obtain copies of all pleadings, discovery, and relevant notices;

(2) Participate in all proceedings, negotiations, pretrial conferences, and hearings;

(3) Advise the juvenile concerning the subject matter of the litigation, the juvenile’s rights, the court system, the proceedings, defense counsel’s role, and what to expect throughout the process; and

(4) Develop a theory and strategy of the case to implement at hearings.

3. Conflicts of Interest

A. Defense counsel must be alert to all potential and actual conflicts of interest that would impair their ability to represent a juvenile. Loyalty and independent judgment are essential elements in defense counsel’s relationship to a juvenile. Conflicts of interest can arise from defense counsel’s responsibilities to another client, a former client or a third person, or from defense counsel’s own interests.

B. Joint representation of co-defendants is not a per se violation of the constitutional guarantee of effective assistance of counsel. However, if defense counsel must forbear from doing something on behalf of a juvenile because of responsibilities or obligations to another client, there is a conflict. Similarly, if by doing something for one client, another client is harmed, there is a conflict.

C. If a conflict arises, defense counsel should be cautious about permitting a juvenile to waive the conflict. The waiver may have collateral consequences in other motions in the case regarding the juvenile’s competency to waive constitutional protections.

D. Defense counsel should not permit a parent or custodian to direct the representation or share information unless disclosure of such information has been approved by the juvenile. Especially when a parent is the alleged victim or has some other adverse interest, defense counsel needs to ensure the confidentiality of the attorney-client communication and independence of the judgment made by the juvenile.

4. Client Communications

A. Defense counsel should keep the juvenile informed of the developments in the case, and the progress of preparing the defense and should promptly comply with all reasonable requests for information.

B. Defense counsel should communicate with the juvenile in a manner that will be effective, considering the juvenile’s maturity, intellectual ability, language, educational level, special education needs, cultural background, gender, and physical, mental and emotional health. If appropriate, defense counsel should request funds pursuant to Chapter 302, Procedures Regarding Funds for Experts and Investigators, for an interpreter to facilitate communication with the client and insist that the court provide necessary interpreter services at all stages of court proceedings.

5. Client Confidentiality

A. Defense counsel should seek from the outset to establish a relationship of trust and confidence with the juvenile. Defense counsel should explain defense counsel’s obligation of confidentiality thus making privileged the juvenile’s disclosures relating to the case.

B. Defense counsel should ensure that communications with a juvenile in an institution including a detention center are confidential. One way to ensure confidentiality is to stamp all mail as legal and confidential.

6. Case Organization

A. Defense counsel should maintain a juvenile case file on each active case, and when appropriate, provide the case file to successor attorneys. Defense counsel is expected to maintain all information about the case’s history and future proceedings, deadlines, dates, etc., on or within the juvenile’s case file so that it is readily discernible.

B. All case files must reflect the procedural history of the case, and all other information necessary to render effective representation, including copies of the charging documents, all discovery, pleadings, plea offers, notes and other communications.

C. As part of the juvenile representation, defense counsel should maintain relevant updated notes that record information such as information obtained during all interviews of the juvenile; interviews of witnesses, interviews of family members; juvenile’s background and history; conversations with the prosecutor regarding discovery, dispositional issues including plea offers, trial issues; conversations with the juvenile community correction officer(s); conversations with police officers or investigators; telephone conversations regarding the case; conversations, consultation and evaluation by experts, etc.

7. Continuity of Representation

Defense counsel should continue their representation through all stages of the proceedings. Unless otherwise ordered by the court, defense counsel should continue to represent the juvenile from the point of the initial court proceedings through disposition, and any other related proceedings until the case is closed.

8. Duty of Stand-In Counsel

Defense counsel who is requested to stand in for another assigned defense counsel at any hearing must (1) represent the juvenile zealously as if it is his or her own client; (2) ensure that the juvenile knows how to contact stand-in counsel in case he or she does not hear from the defense counsel of record; (3) immediately communicate with the defense counsel of record regarding upcoming dates/hearings, how to contact the juvenile, placement of the juvenile, nature of charges, and other timely issues that the defense counsel of record may need to know or address; and (4) immediately or within a reasonable time thereafter provide to the defense counsel of record all notes, documents, and any discovery received.

9. Caseloads

Defense counsel should not have such a large number of cases that he or she is unable to comply with these guidelines. Before agreeing to accept assignment, defense counsel has an obligation to make sure that he or she has sufficient time, resources, knowledge, and experience to offer quality legal services in a particular matter.

SECTION 3. INITIAL OBLIGATIONS

1. Prompt Action to Protect the Juvenile

Many important rights of the juvenile in juvenile court proceedings can be protected only by prompt advice and action. Defense counsel should immediately inform the client of their rights and pursue any investigatory or procedural steps necessary to protect the juvenile’s interests.

2. Advocate for the Juvenile’s Release from Detention

A. Defense counsel has an obligation to attempt to secure the pretrial release of the juvenile under the conditions most favorable and acceptable to the juvenile unless contrary to the expressed wishes of the juvenile.

B. Defense counsel should be prepared to present to the juvenile judge a statement of the factual circumstances and the legal criteria supporting release including challenges to probable cause and to make a proposal concerning conditions of release.

C. Defense counsel should determine whether a parent or other adult is able and willing to assume custody of the juvenile. Defense counsel should be aware that most juvenile courts will not release a juvenile without a responsible adult in court willing to take custody. Every effort should be made to locate and contact such a responsible adult.

D. Defense counsel should arrange to have witnesses to support release and have anyone the juvenile wishes to have present at any hearing.

E. If the juvenile is released, defense counsel should fully explain the conditions of release to the juvenile and the juvenile’s custodian and advise both of the potential consequences of a violation of those conditions.

F. Following the detention hearing, defense counsel should continue to advocate for release of a juvenile or expeditious placement.

G. Whenever a juvenile is held in some form of detention, defense counsel should periodically visit the client.

H. Whenever a juvenile is held in some form of detention, defense counsel should be prepared for an expedited adjudicatory hearing.

3. Meet with Juvenile

A. Defense counsel should conduct a client interview as soon as possible after being assigned by the court/MCILS in order to obtain the information necessary to provide quality representation at the early stages of the case and to provide the juvenile with information concerning the representation and the case proceedings. Any meeting should be held sufficiently before any court proceeding so as to be prepared for that proceeding.

B. Prior to conducting the initial interview defense counsel should, where possible:

(1) Be familiar with the elements of the offense and the potential punishment where the charges against the juvenile are already known; and

(2) Obtain copies of any relevant documents which are available, including copies of any charging documents, recommendations and reports made by the Department of Correction, and law enforcement reports that might be available.

4. Defense counsel should specifically:

A. Ascertain:

(1) The juvenile’s current living arrangements, family relationships, and ties to the community, including the length of time his or her family has lived at the current, as well as the juvenile’s supervision when at home;

(2) The immigration status of the juvenile and his or her family members, if applicable;

(3) The juvenile’s educational history, including current grade level, attendance and any disciplinary history;

(4) The juvenile’s work history, if any:

(5) The juvenile’s physical and mental health, including any impairing conditions such as substance abuse or learning disabilities, and any prescribed medications and other immediate needs;

(6) The juvenile’s record, if any, including arrests, detentions, diversions, adjudications, and failures to appear in court;

(7) Whether there are any other pending charges against the juvenile and the identity of any other appointed or retained counsel;

B. Explain the nature of the attorney-client relationship to the juvenile including the requirements of confidentiality;

C. Explain the attorney-client privilege and instruct the juvenile not to talk to anyone about the facts of the case without first consulting with defense counsel;

D. Explain the nature of the allegations, what the prosecution must prove, and the likely and maximum potential consequences;

E. Explain a general procedural overview of the progression of the case;

F. Explain how and when to contact defense counsel;

G. Explain the role of each player in the system;

H. Obtain a signed release(s) authorizing defense counsel and/or his/her agent to obtain official records related to the juvenile including medical and mental health records, school records, employment records, etc;

I. Discuss arrangements to address the juvenile’s most critical needs; e.g., medical or mental health, or contact with family or employers; and

J. Assess whether the juvenile is competent to proceed or has a disability that would impact a possible defense or mitigation.

5. At the initial meeting and thereafter as appropriate, defense counsel should gather information relevant to the preparation of the defense. Such information may include, but is not limited to:

A. The facts surrounding the charges against the juvenile;

B. Any evidence of improper police investigative practices or prosecutorial conduct which affects the juvenile’s rights;

C. Any possible witnesses or other potential sources of information; and

D. Where appropriate, evidence of the juvenile’s competence to stand trial and/or mental state at the time of the offense.

6. Throughout the process, defense counsel should take the time to:

A. Keep the juvenile informed of the nature and status of the proceedings on an ongoing basis;

B. Maintain regular contact with the juvenile during the course of the case, and especially before court hearings;

C. Review all discovery with the juvenile as part of the case theory development;

D. Promptly respond to telephone calls and other types of contact from the juvenile, where possible, within one business day or a within reasonable time thereafter; and

E. Counsel the juvenile on the options available and the consequences of each, as well as decisions that need to be made by the juvenile.

SECTION 4. PRE-ADJUDICATION

1. Diversion/Informal Adjustment

Defense counsel should be familiar with diversionary programs and alternative solutions available in the community. Such programs may include diversion, mediation, or other alternatives that could result in a juvenile’s case being dismissed or handled informally. When appropriate and available, defense counsel should advocate for the use of informal mechanisms that could divert the juvenile’s case from the formal court process.

2. Mental Health Examinations

Preserve Rights in Mental Health Examinations. Throughout a juvenile proceeding, the judge may order a mental health examination of the juvenile. Admissions made during such examinations are not protected from disclosure. Defense counsel should ensure the juvenile understands the consequences of admissions during such examinations and advise the juvenile on the lack of confidentiality and that personal information about the juvenile or the juvenile’s family will be revealed to the court or other personnel.

3. Competency and Insanity

A. Competency

(1) Defense counsel should be familiar with procedures for a determination of mental incompetence under the Maine Juvenile Code and Maine Rules of Criminal Procedure;

(2) Although the juvenile’s expressed interests ordinarily control, defense counsel may question capacity to proceed without the juvenile’s approval or over the juvenile’s objection, if necessary;

(3) If at any time, the juvenile’s behavior or mental ability indicates that he or she may be incompetent, or may be mentally retarded, defense counsel should request the court issue an order for a juvenile to be examined for competency to stand trial through State Forensics. Prior to the evaluation by the expert, defense counsel should request from the child and provide to the experts all relevant documents including but not limited to prior psychological/psychiatric evaluations, school records and any other important medical records; and

(4) Defense counsel should prepare for and participate fully in the competency hearing.

B. Defense of Insanity

(1) Defense counsel should be familiar with the substantive law and procedures governing the insanity defense in Maine;

(2) If defense counsel believes that the juvenile did not appreciate the wrongfulness of his/her actions at the time of the offense, the attorney should discuss with the juvenile the possibility of an insanity defense;

(3) Before raising the issue of insanity in open court, defense counsel should consider retaining their own mental health professional to evaluate whether the juvenile appreciated the wrongfulness of his or her actions at the time of the offense. Prior to the evaluation by the expert, defense counsel should request from the child and provide to the experts all relevant documents including but not limited prior psychological/psychiatric evaluations, school records and any other important medical records;

(4) Defense counsel must fully prepare the witnesses to testify on the juvenile’s behalf in regard to the juvenile’s sanity at the time of the offense;

(5) Defense counsel must advise the juvenile of the potential dispositions available to the Court if he/she is found not guilty by reason of insanity; and

(6) Defense counsel must be prepared to advocate on behalf of the juvenile against involuntary commitment and provide other treatment options such as outpatient counseling or services.

4. Initial Appearance/Arraignment

A. If appointed prior to the juvenile’s initial appearance, defense counsel should preserve the juvenile’s rights at the initial appearance on the charges by reviewing discovery materials to determine probable cause, preserving the right to file motions, and entering a “no answer” to the charges in all but the most extraordinary circumstances where a sound tactical reason exists for not doing so.

B. However, there may be reasons to enter a plea at arraignment such as to benefit from a concurrent sentence or a unique opportunity for a favorable disposition. Defense counsel is required to explain to the juvenile the consequences of waiving counsel and the collateral consequences of a plea entered.

5. Bind-over

A. Defense counsel must be familiar with the substantive law and procedures governing bind-over under the Maine Juvenile Code;

B. Defense counsel must advise the juvenile of the consequences of bind-over and of the maximum possible sentence to which the juvenile would be exposed if tried as an adult;

C. Defense counsel must investigate the circumstances of the alleged conduct and the circumstances of the juvenile to identify specific evidence relevant to the issue of bind-over;

D. Defense counsel must identify and prepare witnesses, including expert mental health witnesses, to testify on behalf of the juvenile at any hearing on bind-over; and

E. Defense counsel must prepare for and participate fully in any bind-over hearing.

6. Investigation. Defense investigation is an essential aspect of competent representation. Defense counsel should:

A. Review the court file and any prior court records of the juvenile, and other relevant records;

B. Examine all charging documents to determine the specific charges that have been brought against the juvenile. The relevant statutes and precedents should be examined to identify: the elements of the offense(s) with which the juvenile is charged; both the ordinary and affirmative defenses that may be available; any lesser included offenses that may be available; and any defects in the charging documents, constitutional or otherwise, such as statute of limitations or double jeopardy;

C. Identify and interview any potential defense witness;

D. Interview any state witnesses;

E. Where appropriate, visit and investigate the scene of the alleged act. Defense counsel should consider obtaining photographs, maps and measurements of the area; and

F. Seek investigators and experts, as needed, to assist defense counsel in the preparation of a defense, in the understanding of the prosecution’s case or in the rebuttal of the prosecution’s case.

6. Participate in Discovery

Defense counsel should pursue discovery pursuant to the Maine Rules of Criminal Procedure in all cases and review the response to this quickly to determine what additional investigation or discovery needs to be conducted or obtained.

7. Develop a Theory of the Case

During the investigation and trial preparation, defense counsel should develop and continually reassess a theory of the case. A theory of the case is one central theory that organizes the facts, emotions, and legal basis for a finding of not guilty or adjudication of a lesser offense, while also telling the juvenile’s story of innocence, reduced culpability, or unfairness. The theory of the case furnishes the basic position from which defense counsel determines all actions in a case.

8. File Motions

A. Defense counsel should file motions, or objections as necessary to zealously represent the juvenile. Defense counsel should file motions as soon as possible due to 21 day time constraints for filing pre-trial motions as set out in Maine Rules of Criminal Procedure.

B. Motions should be filed in a timely manner, should comport with the formal requirements of the court rules and should succinctly inform the court of the authority relied upon in the case. When a hearing on a motion requires the taking of evidence, defense counsel’s preparation for the evidentiary hearing should include: investigation, discovery and research relevant to the claim advanced; the subpoenaing of all helpful evidence and the subpoenaing and preparation of all helpful witnesses; and full understanding of the burdens of proof, evidentiary principles and trial court procedures applying to the hearing, including the benefits and costs of having the juvenile testify.

C. Relief requested may include, but is not limited to:

(1) In consultation with the juvenile, a mental or physical examination of the juvenile;

(2) Relief due to mental incapacity, incompetency, mental retardation or mental illness;

(3) Relief based on the unconstitutionality of the implicated statute or statutes;

(4) Relief based on the insufficiency of the charging document;

(5) Relief based on improper or prejudicial joinder or severance of charges or defendants in the petition or adjudicatory hearing;

(6) Relief based on the failure of the state to meet its discovery obligations;

(7) The suppression of evidence gathered as the result of violations of the Fourth, Fifth or Sixth Amendments to the United States Constitution, state constitutional provisions or statutes, including:

(a) The fruits of illegal searches or seizures;

(b) Involuntary statements or confessions;

(c) Statements or confessions obtained in violation of the juvenile’s right to an attorney or privilege against self-incrimination;

(d) Unreliable identification evidence which would give rise to a substantial likelihood of irreparable misidentification.

(8) Suppression of evidence gathered in violation of any right, duty or privilege arising out of state or local law;

(9) Access to resources which or experts who may be denied to the juvenile because of his or her indigence;

(10) The juvenile’s right to a speedy trial;

(11) The juvenile’s right to a continuance in order to adequately prepare his or her case;

(12) Matters of trial evidence which may be appropriately litigated by means of a pretrial motion in limine;

(13) Motion for judgment of dismissal; or

(14) Matters of trial or courtroom procedures, including inappropriate clothing or restraints of the juvenile.

9. Plea Negotiations

A. Defense counsel should participate in plea negotiations to seek the best result possible for the juvenile consistent with the client's interests and directions to his or her attorney.

B. Prior to entering into any negotiations, defense counsel should have sufficient knowledge of the strengths and weaknesses of the case(s), or of the issue(s) under negotiation enabling defense counsel to advise the juvenile of the risks and benefits of settlement.

C. Defense counsel should keep the client fully informed of any continued plea discussion and negotiations and convey to the juvenile any offers made by the prosecution for a negotiated settlement. Defense counsel should not accept any plea agreement without the juvenile's consent. The decision to enter a plea rests solely with the juvenile client and defense counsel should not attempt to unduly influence that decision or let a parent or other adult unduly influence whether a juvenile enters a plea.

D. Notwithstanding the existence of ongoing tentative plea negotiations with the prosecution, defense counsel should continue to prepare and investigate the case in the same manner as if it were going to proceed to trial.

E. In preparing to enter a plea before the court, defense counsel must explain to the juvenile the nature of the plea hearing and prepare the juvenile for the role he or she will play in the hearing, including answering questions of the judge and providing a statement concerning the offense and the appropriate disposition. Specifically, defense counsel should:

(1) Be satisfied there is a factual basis for the plea or admission;

(2) Make certain that the juvenile understands the rights he or she will waive by entering the plea and that the juvenile's decision to waive those rights is knowing, voluntary and intelligent;

(3) Be satisfied that the plea is voluntary and that the juvenile understands the nature of the charges; and

(4) Make certain that the juvenile fully and completely understands the conditions and limits of the plea agreement and the maximum punishment in juvenile court, sanctions and other consequences the juvenile will be exposed to by entering a plea.

F. When the plea is against the advice of defense counsel or without adequate time to investigate, defense counsel should indicate this on the record.

SECTION 5. ADJUDICATORY HEARINGS

1. Client Explanation

Defense counsel should explain to the juvenile, in a developmentally appropriate manner, what is expected to happen before, during and after each hearing. The attorney should advise the juvenile as to suitable courtroom dress and demeanor.

2. Materials Available. Where appropriate, defense counsel should have the following materials available at the time of trial:

A. Copies of all relevant documents filed in the case;

B. Relevant documents prepared by investigators;

C. Outline or draft of opening statement;

D. Cross-examination plans for all possible prosecution witnesses;

E. Direct examination plans for all prospective defense witnesses;

F. Copies of defense subpoenas;

G. Prior statements of all prosecution witnesses (e.g. police reports);

H. Prior statements of all defense witnesses;

I. Reports from all experts;

J. A list of all defense exhibits, and witnesses;

K. Originals and copies of all documentary exhibits;

L. Copies of all relevant statutes and cases; and

M. Outline or draft of closing argument.

3. Motions and Objections

Defense counsel should make appropriate motions, including motions in limine and evidentiary and other objections, to advance the juvenile’s position at trial or during other hearings. Defense counsel should be aware of the burdens of proof, evidentiary principles and court procedures applying to the motion hearing. Further, during all hearings, defense counsel should preserve legal issues for appeal, as appropriate.

4. Sequestration of Witnesses

Prior to delivering an opening statement, defense counsel should ask for the rule of sequestration of witnesses to be invoked, unless a strategic reason exists for not doing so.

5. Opening Statements

A. Defense Counsel should be familiar with the law and the individual trial judge's rules regarding the permissible content of an opening statement. Defense Counsel should consider the strategic advantages and disadvantages of disclosure of particular information during the opening statement and of deferring the opening statement until the beginning of the defense case. The objective in making an opening statement may include the following:

(1) To provide an overview of the defense case;

(2) To identify the weaknesses of the prosecution's case;

(3) To emphasize the prosecution's burden of proof;

(4) To summarize the testimony of witnesses, and the role of each in relationship to the entire case;

(5) To describe the exhibits which will be introduced and the role of each in relationship to the entire case; and

(6) To state the ultimate inferences that defense counsel wishes to draw.

B. Whenever the prosecutor oversteps the bounds of a proper opening statement, defense counsel should consider objecting or requesting a mistrial unless tactical considerations weigh against any such objections or requests.

6. Confronting the Prosecutor’s Case

Defense Counsel should attempt to anticipate weaknesses in the prosecution's proof.

7. Cross Examination

A. In preparing for cross-examination, defense counsel should be familiar with the applicable law and procedures concerning cross-examinations and impeachment of witnesses. In order to develop material for impeachment or to discover documents subject to disclosure, defense counsel should be prepared to question witnesses as to the existence of prior statements which they may have made or adopted.

B. Defense counsel should be aware of the law of competency of witnesses in general and admission of expert testimony in particular in order to be able to raise appropriate objections.

8. Conclusion of Prosecution’s Evidence

Upon conclusion of the state’s evidence, defense counsel should motion for a judgment of acquittal, make appropriate argument, and present appropriate case law. See Maine Rules of Criminal Procedure 29 . If the motion of acquittal is denied, defense counsel should be prepared to renew the motion for judgment of acquittal at the end of all evidence in the case.

9. Defense Strategy

Defense counsel should develop, in consultation with the juvenile, an overall defense strategy. In deciding on a defense strategy, an attorney should consider whether the juvenile's legal interests are best served by not putting on a defense case and instead relying on the prosecution's failure to meet its constitutional burden of proving each element beyond a reasonable doubt. In developing and presenting the defense case, defense counsel should consider the implications it may have for a rebuttal by the prosecutor.

10. Affirmative Defenses

Defense counsel should be aware of the elements of any affirmative defense and know whether the juvenile bears the burden of persuasion or a burden of production.

11. Direct Examination

Defense counsel should prepare all witnesses for direct and possible cross-examination. Where appropriate, defense counsel should also advise witnesses of suitable courtroom dress and demeanor.

12. Preservation of Appellate Record

Throughout the trial process defense counsel should endeavor to establish a proper record for appellate review.

13. Client’s Right to Testify

A. It is the juvenile’s right to decide whether to testify. However, it is defense counsel’s obligation to advise the juvenile on the advantages and disadvantages of testifying. This advice should include consideration of the juvenile’s need or desire to testify, any repercussions of testifying, the necessity of the juvenile’s direct testimony, the availability of other evidence or hearsay exceptions which may substitute for direct testimony by the juvenile, and the juvenile’s developmental ability to provide direct testimony and withstand possible cross-examination.

B. Defense counsel should be familiar with his or her ethical responsibilities that may be applicable if the juvenile insists on testifying untruthfully. Defense counsel should maintain a record of the advice provided to the juvenile and the juvenile’s decision concerning whether to testify.

14. Preparation of Juvenile to Testify

Defense counsel should prepare the juvenile to testify. This should include familiarizing the juvenile with the courtroom, court procedures, and what to expect during direct and cross-examination. Often the decision whether to testify may change at trial. Thus, it is beneficial to prepare in case the juvenile chooses to testify.

15. Questioning the Juvenile

Defense counsel should seek to ensure that questions to the juvenile are phrased in a developmentally appropriate manner. Defense counsel should object to any inappropriately phrased questions by the court or an opposing counsel.

16. Renew Motion for Judgment of Dismissal

At the close of the defense case, defense counsel should renew the motion for judgment of acquittal on each charged count, renew all prior objections and motions and if appropriate submit further argument to the court.

17. Closing Arguments

A. Defense counsel should be familiar with the local rules and the individual judge's practice concerning time limits and objections during closing argument and provisions for rebuttal argument by the prosecution.

B. In developing closing argument, defense counsel should consider:

(1) Highlighting the weaknesses in the prosecution's case;

(2) Describing favorable inferences to be drawn from the evidence;

(3) Helpful testimony from direct and cross-examinations; and

(4) Responses to anticipated prosecution arguments.

C. Whenever the prosecutor exceeds the scope of permissible argument, defense counsel should consider objecting and requesting a mistrial, unless tactical considerations suggest otherwise.

SECTION 6. DISPOSITION

1. In many cases, defense counsel’s most valuable service to their clients will be rendered at this stage of the proceeding. An important part of representation in a juvenile case is planning for disposition. Defense counsel should not make or agree to a specific dispositional recommendation without the juvenile’s consent.

2. Preparation. In preparation for a disposition hearing, defense counsel should prepare as for any other evidentiary hearing including the consideration of calling appropriate witnesses, the preparation of evidence in mitigation of or support of the recommended disposition. Among defense counsel’s obligations in the disposition processes are:

A. To ensure the juvenile is not harmed by inaccurate information or information that is not properly before the court in determining the disposition to be imposed;

B. To ensure all reasonably available mitigating and favorable information that is likely to benefit the juvenile is presented to the court;

C. To develop a plan which seeks to achieve the least restrictive and burdensome disposition alternative that is most acceptable to the juvenile and which can reasonably be obtained based on the facts and circumstances of the offense and the juvenile’s background; and

D. To consider preparing any arguments to the judge that highlights the juvenile's strengths and the appropriateness of the disposition plan proposed by the defense.

E. In preparing for disposition, defense counsel should also:

(1) Explain to the juvenile the nature of the disposition hearing, the issues involved and the alternatives open to the court;

(2) Explain fully and candidly to the juvenile the nature, obligations, and consequences of any proposed dispositional plan, including the meaning of conditions of probation or conditional release, the characteristics of any institution to which commitment is possible, and the probable duration of the juvenile’s responsibilities under the proposed dispositional plan;

(3) When psychological or psychiatric evaluations are ordered by the court or arranged by defense counsel prior to disposition, defense counsel should explain the nature of the procedure to the juvenile and the potential lack of confidentiality of disclosures to the evaluator;

(4) Obtain from the juvenile relevant information concerning such subjects as his or her background and personal history, prior criminal or delinquency record, employment history and skills, education, and medical history and condition, and obtain from the juvenile sources through which the information provided can be corroborated;

(5) Access social, psychological, psychiatric or other reports. If helpful or necessary, defense counsel should seek to secure the assistance of psychiatric, psychological, medical or other expert personnel to evaluate, consult, or testify to aid the juvenile at disposition;

(6) Inform the juvenile of his or her right to speak at the disposition hearing and assist the juvenile in preparing the statement, if any, to be made to the court, considering the possible consequences that any admission of guilt may have upon an appeal, subsequent retrial or trial on other offenses; and

(7) Collect documents and affidavits to support the defense position and, where relevant, prepare witnesses to testify at the disposition hearing.

3. Disposition Options

A. Defense counsel should be familiar with the disposition options applicable to the case, including:

(1) Diversionary programs;

(2) Filings;

(3) Probation and permissible conditions of probation;

(4) Restitution;

(5) Fines;

(6) Community Service;

(7) Commitment to the Department of Corrections Juvenile Facility;

(8) Custody to the Department of Health and Human Services; and

(9) Placement in a residential program.

4. The Prosecution's Disposition Position

Defense counsel should attempt to determine whether the state attorney will advocate that a particular type or length of disposition be imposed and persuade the state attorney to support the juvenile’s requested disposition.

5. Counseling after Disposition

When a disposition order has been entered, it is defense counsel’s duty to explain the nature, obligations and consequences of the disposition to the juvenile and his or her family. The juvenile should also understand the consequences of a violation of probation, commitment, conditional release, or committing new offense.

SECTION 7. APPEAL

1. Defense counsel should advise the client of the right to appeal and should implement the client’s decision in that regard. If an appeal is taken, defense counsel should timely file the appropriate notice of appeal and request a transcript of the prior court proceedings.

2. Where there is an appeal, defense counsel should consider requesting a stay of execution of any sentence, particularly one of incarceration.

History

• STATUTORY AUTHORITY: 4 M.R.S. §1804(2)(C), §1804(2)(D), §1804(2)(E), §1804(3)(D), §1804(4)(D)
• EFFECTIVE DATE: February 27, 2012 – filing 2012-52
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• EFFECTIVE DATE: NONSUBSTANTIVE CORRECTIONS (update of name of agency in the rule header):
• EFFECTIVE DATE: April 2, 2026

Chapter 102 Standards of Practice for Attorneys who Represent Adults in Criminal Proceedings

Code Me. R. 94-649 Ch. 102 Standards of Practice for Attorneys Who Represent Adults in Criminal Proceedings {#sec-94-649-ch.-102 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 102}

Summary: This Chapter establishes standards of practice for Commission assigned counsel providing representation in adult criminal cases. Theses standards are intended to guide assigned counsel in the conduct of their representation and for use by the Commission in evaluating, supervising and training assigned counsel.

SECTION 1. SCOPE & PURPOSE

1. These Standards apply whenever defense counsel is assigned pursuant to the Maine Commission on Indigent Legal Services’ (MCILS) jurisdiction to provide representation to adults charged with crimes who are financially unable to retain defense counsel and who are entitled to representation pursuant to the United States and Maine Constitutions.

These standards are intended as a guide for assigned defense counsel and for use by MCILS in evaluating, supervising and training assigned defense counsel. Although MCILS understands that not every action outlined in these standards is necessary in every case, the Commission will apply these standards, the Maine Rules of Criminal Procedure and the Maine Rules of Professional Conduct, as well as all other Commission policies and procedures when evaluating the performance or conduct of counsel.

3. The Function of Defense Counsel

A. Defense counsel for the accused is an essential component of the administration of criminal justice. A court properly constituted to hear a criminal case must be viewed as a tripartite entity consisting of the judge (and jury, where appropriate), counsel for the prosecution, and counsel for the accused.

B. The basic duty defense counsel owes to the administration of justice as an officer of the court is to serve as the accused’s counselor and advocate and to render effective, quality representation.

C. Defense counsel, in common with all members of the bar, is subject to standards of conduct stated in statutes, rules, decisions of court, and codes, canons, or other standards of professional conduct. Defense counsel has no duty to execute any directive of the accused here thereafter “client”) which does not comport with law or such standards.

4. Defense counsel should not knowingly make a false statement of material fact or law to the court or a third person.

SECTION 2. ATTORNEY QUALIFICATIONS

1. Education, Training and Experience of Defense Counsel

A. To provide quality representation, defense counsel must be familiar with the substantive criminal law and the law of criminal procedure and its application in the particular jurisdiction. Defense counsel has a continuing obligation to stay abreast of changes and developments in the law. Where appropriate, defense counsel should also be informed of the practice of the specific judge before whom a case is pending.

B. Prior to handling a criminal matter, defense counsel should have sufficient experience or training to provide quality representation. Defense counsel should accept the more serious and complex criminal cases only after having had experience and/or training in less complex criminal matters. Where appropriate, defense counsel should consult with more experienced counsel to acquire knowledge and familiarity with all facts of criminal representation, including information about practices of prosecutors and other court personnel.

General Duties of Defense Counsel

Before agreeing to act as defense counsel or accepting assignment, defense counsel has an obligation to make sure that he or she has available sufficient time, resources, knowledge and experience to offer quality representation to a defendant in a particular matter. If it later appears that counsel is unable to offer quality representation in the case, defense counsel should move to withdraw.

SECTION 3. SCOPE OF REPRESENTATION

1. Provision of Quality Representation

Defense counsel shall provide to their clients quality representation equivalent to that provided by a skilled, knowledgeable and conscientious counsel to retained clients. The paramount obligation of defense counsel is to provide high quality, effective representation and diligent and zealous advocacy for the client at all stages of the representation.

Delays; Punctuality; Workload

A. Defense counsel should not carry a workload that, by reason of its excessive size, interferes with the rendering of quality representation, endangers the client’s interest in the speedy disposition of charge(s), or may lead to the breach of professional obligations.

B. Defense counsel should act with reasonable diligence and promptness in representing a client.

C. Defense counsel should avoid unnecessary delay in the disposition of cases. Defense counsel should be punctual in attendance at court proceedings and in the submission of all motions, briefs and other papers. Defense counsel should emphasize to the client and all witnesses the importance of punctuality in attendance in court.

D. Defense counsel should not knowingly make a false statement of fact or law to the court in order to obtain a continuance.

E. Defense counsel should not intentionally use procedural devices for delay for which there is no legitimate basis.

SECTION 4. LAWYER-CLIENT RELATIONSHIP

1. General Duties of Defense Counsel

A. Defense counsel must be alert to all potential and actual conflicts of interest that would impair defense counsel’s ability to represent a client.

B. Upon receiving notice of an assignment, counsel should contact the client to schedule an initial meeting and should maintain regular contact with the client thereafter. Counsel should initiate contact with the client by telephone or by mail as soon as practicable and in any event within at least 7 days of being notified of the assignment. If a client is in custody, counsel should meet and interview the client within at least 7 days of being notified of the assignment. If the client is not in custody, counsel should meet with the client prior to the deadline for filing initial motions. Counsel should endeavor to establish a relationship of trust and open communication with the client and should diligently advocate the client’s position within the bounds of the law and the Maine Rules of Professional Conduct.

C. Defense counsel should take all reasonable steps necessary to ensure that confidential communications between defense counsel and the client are conducted in privacy. This may include making efforts to request that the court and other officials make reasonable accommodations for private discussions between defense counsel and clients in courthouses, lockups, jails, prisons, detention centers, and other places where a client must confer with defense counsel.

SECTION 5. INITIAL INTERVIEW

1. Purpose

The purpose of the initial interview is to acquire information from the client concerning pretrial release (if needed), to provide the client with information concerning the case and to begin to develop knowledge of the facts of the case. Defense counsel should ensure at this and all successive interviews and proceedings that barriers to communication, such as differences in language or literacy, be overcome.

2. General Duties of Defense Counsel

A. Where defense counsel is unable to communicate with the client because of either language differences or mental disability, the defense counsel shall take whatever steps are necessary to insure that he/she is able to communicate with the client and that the client understands the proceedings. Such steps would include having defense counsel obtain expert assistance including an interpreter for pretrial preparation, interviews, and investigation, as well as in-court proceedings.

B. To ensure the preservation, protection and promotion of the client’s rights and interests, defense counsel must make accommodations where necessary due to a client’s special circumstances, such as youth, mental or physical disability, or foreign language barrier.

3. Preparation. Prior to conducting the initial interview, defense counsel should, to the extent possible:

A. be familiar with the elements of the offense and the potential punishment, where the charges against the client are already known;

B. obtain copies of any relevant documents which are available, including copies of any charging documents, and law enforcement reports that might be available;

C. be familiar with the legal criteria for determining pretrial release and the procedures that will be followed in setting those conditions;

D. be familiar with the different types of pretrial release conditions the court may set;

E. be familiar with any procedures available for reviewing the trial judge’s setting of bail.

4. Initial Client Interview

A. The purpose of the initial interview is to acquire information from the client concerning pretrial release, to provide the client with information concerning the case and to begin to develop knowledge of the facts of the case. The scope and focus of the initial interview will vary according to the circumstances under which it occurs.

B. Defense counsel should conduct a client interview as soon as practicable and if the client is in custody then in no event within more than seven (7) days after receiving notice of an assignment in order to obtain information necessary to provide quality representation at the early stages of the case and to provide the client with information concerning counsel’s representation and the case proceedings. If the client is not in custody, the interview should occur prior to the deadline for filing initial motions.

C. Defense counsel should convey the following types of information to the client:

(1) an explanation of the procedures that will be followed in setting the conditions of pretrial release;

(2) an explanation of the type of information that will be requested in any interview that may be conducted by a pretrial release agency and also an explanation that the client should not make statements concerning the offense;

(3) an explanation of the attorney-client privilege and instructions not to talk to anyone about the facts of the case without first consulting with the attorney;

(4) a general procedural overview of the progression of the case, where possible;

(5) an explanation that the client has the constitutional right to plead not guilty; to be tried by a judge or a jury; to the assistance of counsel; to confront and cross-examine witnesses against him/her; to testify; and to not be compelled to incriminate him/herself.

(6) the nature of the allegations, what the state must prove, and the likely and maximum potential consequences;

(7) how and when counsel can be reached;

(8) when counsel will see the client next;

(9) realistic answers, where possible, to the client’s most urgent questions;

(10) what arrangements will be made or attempted for the satisfaction of the client’s most pressing needs, e.g., medical or mental health attention, contact with family or employers.

D. Defense counsel should request the following types of information from the client:

(1) the facts surrounding the allegations against or affecting the client;

(2) any possible witnesses who should be located;

(3) any evidence of improper conduct by police or other investigative agencies, mental health departments or the prosecution which may affect the client’s rights;

(4) any evidence that should be preserved;

(5) evidence of the client’s competence to stand trial and/or mental state at the time of the offense.

(6) the client’s ties to the community, including the length of time he or she has lived at the current and former addresses, family relationships, immigration status (if applicable), employment record and history;

(7) the client’s physical and mental health, educational and armed services records;

(8) the client’s immediate medical needs;

(9) the client’s past criminal record, if any, including arrests and convictions for adult and juvenile offenses and prior record of court appearances or failure to appear in court; defense counsel should also determine whether the client has any pending charges and also whether the client is on probation or parole and the client’s past or present performance under supervision;

(10) the ability of the client to meet any financial conditions of release;

(11) the names of individuals or other sources that counsel can contact to verify the information provided by the client; counsel should obtain the permission of the client before contacting these individuals.

5. Disposition of the Case

A. Defense counsel should advise the client with complete candor concerning all aspects of the case, including a candid estimate of the probable outcome.

B. Defense counsel should not intentionally understate or overstate the risks, hazards or prospects of the case to exert undue influence on the client’s decision as to his/her plea(s).

6. Advice and Service on Anticipated Unlawful Conduct

A. Defense counsel should not counsel a client in or knowingly assist a client to engage in conduct which defense counsel knows to be illegal or fraudulent, but defense counsel may discuss the legal consequences of any proposed course of conduct with a client.

7. Duty to Keep Client Informed

A. Defense counsel should maintain regular contact with the client and should keep the client informed of the progress of the case, including:

(1) the importance of maintaining contact with defense counsel and the need to notify defense counsel of any change of address;

(2) the names and contact information regarding defense counsel and staff assisting with the case;

(3) any court dates and significant developments in the case.

B. Defense counsel should keep the client informed of any developments in the case and the progress of the preparation of the defense, and provide sufficient information to permit intelligent participation in decision making by the client.

C. Defense counsel should comply with reasonable requests for information from the client and reply to client correspondence and telephone calls.

8. Preparation for Bail Hearing

A. If identification may be an issue, defense counsel should be aware of, and consider preventing, any identification opportunities for prosecution witnesses that may arise at arraignment.

B. If the client is detained, the focus of the initial interview and investigation will be to obtain information relevant to the determination of pretrial conditions of release. Such information should generally include:

(1) client’s residence and length of time at that residence;

(2) family (names, addresses and phone numbers);

(3) health (mental and physical) and employment background;

(4) explanation of any court defaults and any other information on the record;

(5) probation/parole status;

(6) possible sources of bail money;

(7) the general circumstances of the alleged offense and/or arrest, including, where relevant, any identification procedures that occurred.

Such information should be verified whenever possible.

9. Bail or Detention Hearing

A. Defense counsel has an obligation to vigorously attempt to secure the pretrial release of the client under conditions most desirable to the client. While favorable release conditions are the principal goal of the hearing, defense counsel should also be alert to all opportunities for obtaining discovery.

B. Defense counsel’s argument to the court should include the client’s ties to the community and other factors that support a conclusion that the client, if released, will return for future court appearances. The client should not, except under the most extraordinary circumstances, speak or testify at a bail hearing. Although comments on the strength and quality of the case are appropriate and reference may be made to the general nature of the anticipated defense, the specific elements of the client’s defense should not be revealed at the arraignment or bail hearing.

C. Defense counsel should be prepared to address the special issues of “dangerousness” that are the focus of the hearings, and, where appropriate and possible, be ready to present “proffers” that address those issues.

D. Defense counsel should consider advocating for reasonable conditions of release or recognizance pursuant to pretrial probation, such as electronic monitoring, “stay away” orders, curfews, surrender of passports or licenses (motor vehicle or firearms), etc., in addition to monetary sureties. If the client wishes for defense counsel to advocate for conditions of release that may not be reasonable then counsel must do their best to explain the risks and or benefits of doing so to the client.

E. Where the client is not able to obtain release under the conditions set by the court, defense counsel should advise the client of his/her right to appeal and the advantages and disadvantages of doing so. Where appropriate, defense counsel should facilitate the bail appeal procedure, including pressing for the opportunity to be heard on the same day and be prepared to represent the client at the hearing.

F. Where the client is incarcerated and unable to obtain pretrial release, defense counsel should alert the court and the sheriff to any special needs of the client, e.g., medical problems, security needs, and request the court to direct the appropriate officials to take steps to meet such special needs.

G. Defense counsel should be familiar with the law governing the prosecution’s power to require a defendant to provide non-testimonial evidence (such as handwriting exemplars and physical specimens), the circumstances in which a defendant may refuse to do so, the extent to which counsel may participate in the proceedings, and the record of the proceedings required to be maintained.

SECTION 6. CASE REVIEW & PREPARATION

1. Defense counsel has a duty to conduct an independent case review regardless of the client’s admissions or statements to the lawyer of facts constituting guilt. The review should be conducted as promptly as possible.

2. Sources of case information may include the following:

A. Charging Documents – Copies of all charging documents in the case should be obtained and examined to determine the specific charges that have been brought against the accused. The relevant statutes and precedents should be examined to identify:

(1) the elements of the offense(s) with which the accused is charged;

(2) the defenses, ordinary and affirmative, that may be available;

(3) any defects in the charging documents, constitutional or otherwise, such as statute of limitations, double jeopardy, or irregularities in the Grand Jury proceedings.

B. The Accused – If not previously conducted, an in-depth interview of the client should be conducted as soon as possible and appropriate after appointment of counsel. The interview with the client should be used to:

(1) seek information concerning the incident or events giving rise to the charge(s) or improper police investigative practices or prosecutorial conduct which affects the client’s rights;

(2) explore the existence of other potential sources of information relating to the offense;

(3) collect information relevant to the sentencing.

C. Potential Witnesses – Defense counsel should consider whether to interview the potential witnesses, including any complaining witnesses and others adverse to the accused. If defense counsel conducts such interviews of potential witnesses, he or she should do so in the presence of a third person who will be available, if necessary, to testify as a defense witness at trial. Alternatively, counsel should have an investigator conduct such interviews.

D. The Police and Prosecution – Defense counsel should secure information in the possession of the prosecution or law enforcement authorities, including police reports through the use of M.R.Crim.P. 16 and 16A. Where necessary, defense counsel should pursue such efforts through formal and informal discovery unless a sound tactical reason exists for not doing so.

E. The Courts – Defense counsel should request and review preliminary hearing tapes/transcripts as well as Grand Jury tapes. Where appropriate, defense counsel should review the client’s prior court file(s).

F. Physical Evidence – Where appropriate, defense counsel should make a prompt request to the police or investigative agency for any physical evidence or expert reports relevant to the offense or to sentencing. Defense counsel should consider viewing the physical evidence consistent with case needs.

G. The Scene – Where appropriate, defense counsel (or an investigator) should view the scene of the alleged offense. This should be done under circumstances as similar as possible to those existing at the time of the alleged incident (e.g., weather, time of day, lighting conditions, and seasonal changes). Defense counsel should consider the taking of photographs and the creation of diagrams or charts of the actual scene of the offense.

H. Expert Assistance – Defense counsel should secure the assistance of experts where it is necessary in order to:

(1) prepare a defense;

(2) understand the prosecution’s case;

(3) rebut the prosecution’s case;

(4) investigate the client’s competence to proceed, mental state at the time of the offense, and/or capacity to make a knowing and intelligent waiver of constitutional rights.

3. During case preparation and throughout trial, defense counsel should identify potential legal issues and the corresponding objections. Defense counsel should consider the tactics of whether, when, and how to raise these objections. Defense counsel should also consider how to respond to objections which could be raised by the State.

4. Relations with Prospective Witnesses

A. Defense counsel, in representing a client , should not use means that have no substantial purpose other than to embarrass, delay, or burden a third person, or use methods of obtaining evidence that violate the legal rights of such a person.

B. Defense counsel should not compensate a witness except as provided by Commission Rule. Chapter 302: Procedures Regarding Funds for Experts and Investigators.

C. It is not necessary for defense counsel or defense counsel’s investigator, in interviewing a prospective witness, to caution the witness concerning possible self-incrimination and the need for counsel.

D. Defense counsel should not discharge or obstruct communication between prospective witnesses and the prosecutor. It is unprofessional conduct to advise any person other than a client, or cause such person to be advised, to decline to give to the prosecutor or defense counsel for co-defendants information which such person has a right to give.

E. Unless defense counsel is prepared to forego impeachment of a witness by defense counsel’s own testimony as to what the witness stated in an interview or to seek leave to withdraw from the case in order to present such impeaching testimony, defense counsel should avoid interviewing a prospective witness except in the presence of a third person.

5. Relations with Expert Witnesses

Defense counsel who engages an expert for an opinion should respect the independence of the expert and should not seek to dictate the formation of the expert’s opinion on the subject. To the extent necessary, defense counsel should explain to the expert his or her role in the trial as an impartial witness called to aid the fact finders and the manner in which the examination of witnesses is conducted.

SECTION 7. CONTROL & DIRECTION OF THE CASE

1. Theory of the Case. During investigation and trial preparation, defense counsel should develop and continually reassess a theory of the case.

2. Implementation

A. Defense counsel should develop an overall theory of the case that encompasses the best interest of the client and the realities of the client’s situation in order to assist counsel in evaluating choices throughout the course of the representation.

B. Defense counsel should allow the case theory to focus the investigation and trial preparation of the case, seeking out and developing the facts and evidence that the theory makes material, but defense counsel should not become a “prisoner” of his or her theory.

3. Certain decisions relating to the conduct of the case are ultimately for the accused and other are ultimately for defense counsel. The decisions which are to be made by the accused after full consultation with defense counsel include:

A. what pleas to enter;

B. whether to accept a plea agreement;

C. whether to waive jury trial;

D. whether to testify in his or her own behalf;

E. whether to appeal.

4. Strategic and tactical decisions should be made by defense counsel after consultation with the client where feasible and appropriate. Such decisions include what witnesses to call, whether and how to conduct cross-examination, what jurors to accept or strike, what trial motions should be made, and what evidence should be introduced.

5. If a disagreement on significant matters of tactics or strategy arises between defense counsel and the client, defense counsel should make a record of the circumstances, defense counsel’s advice and reasons, and the conclusion reached. The record should be made in a manner which protects the confidentiality of the lawyer-client relationship.

6. Defense counsel should explain that final decisions concerning trial strategy, after full consultation with the client, and after investigation of the applicable facts and law, are ultimately to be made by defense counsel. The client should be made aware that defense counsel is primarily responsible for deciding what motions to file, which witnesses to call, what questions to ask, and what other evidence to present. Implicit in the exercise of defense counsel’s decision-making role in this regard is consideration of the client’s input and full disclosure by defense counsel to the client of the factors considered by the attorney in making the decisions. Defense counsel should inform the client of an attorney’s ethical obligation, informed by professional judgment, not to present frivolous matters or unfounded actions.

7. Presentment and Arraignment

A. Defense counsel should preserve the client’s rights at the initial appearance on the charges by:

(1) advising the client to enter a plea of not guilty in all but the most extraordinary circumstances where a sound tactical reason exists for not doing so or unless the client insists on pleading guilty despite counsel’s advice to the contrary;

(2) seeking a determination of whether there is probable cause to support the charges alleged and, if there is not probable cause, or other grounds exist for dismissal, requesting that the court dismiss the charge or charges.

8. The Plea Negotiation Process and the Duties of Defense Counsel

A. Defense counsel should explore with the client the possibility and desirability of reaching a negotiated disposition of the charges rather than proceeding to a trial and in doing so should fully explain the rights that would be waived by a decision to enter a plea and not to proceed to trial.

B. Defense counsel should ordinarily obtain the consent of the client before entering into any plea negotiation.

C. Defense counsel should keep the client fully informed of any continued plea discussion and negotiations and convey to the accused any offers made by the prosecution for a negotiated settlement.

D. Defense counsel should not accept any plea agreement without the client’s express authorization. The decision to enter a plea of guilty rests solely with the client, and defense counsel should not attempt to unduly influence that decision.

E. The existence of ongoing tentative plea negotiations with the prosecution should not prevent defense counsel from taking steps necessary to preserve a defense.

9. The Decision to File Pretrial Motions

A. Defense counsel should consider filing an appropriate motion whenever there exists a good faith reason to believe that the applicable law may entitle the defendant to relief which the court has discretion to grant.

B. The decision to file pretrial motions should be made after thorough investigation, and after considering the applicable law in light of the circumstances of each case. Among the issues that defense counsel should consider addressing in a pretrial motion are:

(1) the pretrial custody of the accused;

(2) the constitutionality of the implicated statute or statutes;

(3) the potential defects in the charging process;

(4) the sufficiency of the charging document;

(5) the propriety and prejudice of any joinder of charges or co-defendants in the charging document;

(6) the discovery obligations of the prosecution and the reciprocal discovery obligations of the defense;

(7) the suppression of evidence gathered as the result of violations of the Fourth, Fifth or Sixth Amendments to the United States Constitution, or corresponding or additional state constitutional provisions, including:

(a) the fruits of illegal searches or seizures;

(b) involuntary statements or confessions;

(c) statements or confessions obtained in violation of the client’s right to counsel, or privilege against self-incrimination;

(d) unreliable identification evidence which would give rise to a substantial likelihood of irreparable misidentification.

(8) suppression of evidence gathered in violation of any right, duty or privilege arising out of state or local law;

(9) access to resources which or experts who may be denied to an accused because of his or her indigence;

(10) the defendant’s right to a speedy trial;

(11) the defendant’s right to a continuance in order to adequately prepare his or her case;

(12) matters of trial evidence which may be appropriately litigated by means of a pretrial motion in limine;

(13) matters of trial or courtroom procedure.

C. Defense counsel should withdraw a motion or decide not to file a motion only after careful consideration, and only after determining whether the filing of a motion may be necessary to protect the client’s rights against later claims of waiver or procedural default.

10. Filing and Arguing Pretrial Motions

A. Motions should be filed in a timely manner, should comport with the formal requirements of the court rules and should succinctly inform the court of the authority relied upon. In filing a pretrial motion, defense counsel should be aware of the effect it might have upon the defendant’s speedy trial rights.

B. When a hearing on a motion requires the taking of evidence, defense counsel’s preparation for the evidentiary hearing should include:

(1) investigation, discovery and research relevant to the claim advanced;

(2) the subpoenaing of all helpful evidence and the subpoenaing and preparation of all helpful witnesses;

(3) full understanding of the burdens of proof, evidentiary principles and trial court procedures applying to the hearing, including the benefits and costs of having the client testify.

11. Subsequent Filing of Pretrial Motions

Defense counsel should be prepared to raise during the subsequent proceedings any issue which is appropriately raised pretrial, but could not have been so raised because the facts supporting the motion were unknown or not reasonably available. Further, defense counsel should be prepared to renew a pretrial motion if new supporting information is disclosed in later proceedings.

12. Trial Motions

Defense counsel should be aware that certain motions are generally reserved for the trial

judge, e.g., motions in limine and motions to sequester.

13. Interlocutory Relief

Where appropriate, defense counsel should consider seeking interlocutory relief, under the applicable rule or statute, after an adverse pretrial ruling. The conduct of interlocutory hearings, including the submission of briefs and oral argument, are ordinarily the responsibility of the defense counsel, whether the hearing was initiated by defense counsel or by the prosecution.

14. Bench Trial or Jury Trial

A. The decision to proceed to trial with or without a jury rests solely with the client after complete advice of defense counsel.

B. Defense counsel should fully advise the client of the advantages and disadvantages of either a jury or jury-waived trial. Defense counsel should exercise great caution before advising a jury waiver, especially without thorough discovery, including knowledge of the likely availability of prosecution witnesses, and their likely responses to cross-examination.

15. Continuing Responsibility to Raise Issue of Client’s Incompetence

A. Defense counsel should consider the client’s competence to stand trial or to enter a plea whenever defense counsel has a good faith doubt as to the client’s competence to proceed in the criminal case. Defense counsel may move for evaluation over the client’s objection, and if necessary, defense counsel may make known to the court those facts which raise the good faith doubt of competence to proceed in the criminal case.

B. Where competency is at issue, defense counsel has a continuing duty to review and prepare the case for all court proceedings. Defense counsel should develop information relevant to the issue of dangerousness.

16. Entry of the Plea before the Court

A. Prior to the entry of the plea, defense counsel should:

(1) make certain that the client understands the rights he or she will waive by entering the plea and that the client’s decision to waive those rights is knowing, voluntary and intelligent;

(2) make certain that the client fully and completely understands the conditions and limits of the plea agreement and the maximum punishment, sanctions and other consequences the client will be exposed to by entering a plea;

(3) explain to the client the nature of the plea hearing and prepare the client for the role he or she will play in the hearing, including answering questions of the judge and providing a statement concerning the offense.

B. When entering a plea, defense counsel should make sure that the full content and conditions of the plea agreement are placed on the record by the court.

C. After entry of the plea, defense counsel should be prepared to address the issue of release pending sentencing. Where the client has been released pretrial, defense counsel should be prepared to argue and persuade the court that the client’s continued release is warranted and appropriate. Where the client is in custody prior to the entry of the plea, defense counsel should, where practicable, advocate for the client’s release on bail pending sentencing.

D. Subsequent to the acceptance of the plea, defense counsel should make every effort to review and explain the plea proceedings with the client and to respond to any client questions and concerns.

17. Consequences of Conviction

Defense counsel must also advise the client of the consequences of a conviction, including:

A. the maximum possible sentence of all offenses;

B. mandatory minimum sentences where applicable;

C. different or additional punishments where applicable, such as for second offenses, probation, violation or parole revocation consequences;

D. potential liability for enhanced punishment after subsequent arrest;

E. possible federal charges or penalty enhancements as well as the possible loss of eligibility for federal benefits;

F. conviction consequences for non-citizens;

G. Sex Offender Registration Act;

H. potential civil liabilities;

I. possible loss or suspension of driver’s license under Maine or federal law;

J. possible loss of the right to possess a firearm.

18. The Decision to Enter a Plea of Guilty

A. Defense counsel should inform the client of any tentative negotiated agreement reached with the prosecution, explain to the client the full content of the agreement, and explain the advantages, disadvantages and potential consequences of the agreement.

B. The decision to enter a plea of guilty rests solely with the client, and defense counsel should not attempt to unduly influence that decision. Where defense counsel reasonably believes that acceptance of a plea offer is in the best interests of the client, defense counsel should advise the client of the benefits of this course of action.

C. Where the client verbally rejects a fully explained and detailed plea offer, and if appropriate, defense counsel may ask the client to sign a written rejection of plea offer statement.

SECTION 8. GENERAL TRIAL PREPARATION

1. The decision to proceed to trial with or without a jury rests solely with the client. Defense counsel should discuss the relevant strategic considerations of this decision with the client.

2. Where appropriate, defense counsel should have the following materials available at the time of trial:

A. copies of all relevant documents filed in the case;

B. relevant documents prepared by investigators;

C. voir dire questions;

D. outline or draft of opening statement;

E. cross-examination plans for all possible prosecution witnesses;

F. direct examination plans for all prospective defense witnesses;

G. copies of defense subpoenas;

H. prior statements of all prosecution witnesses (e.g., transcripts, police reports);

I. prior statements of all defense witnesses;

J. reports from defense experts;

K. a list of all defense exhibits, and the witnesses through whom they will be introduced;

L. originals and copies of all documentary exhibits;

M. proposed jury instructions with supporting case citations;

N. copies of all relevant statutes and cases;

O. outline or draft of closing argument.

3. Defense counsel should be fully informed as to the rules of evidence, and the law relating to all stages of the trial process, and should be familiar with legal and evidentiary issues that can reasonably be anticipated to arise in the trial.

4. Defense counsel should decide if it is beneficial to secure an advance ruling on issues likely to arise at trial (e.g., use of prior convictions to impeach the client) and, where appropriate, defense counsel should prepare motions and memoranda for such advance rulings.

5. Throughout the trial process, defense counsel should endeavor to establish a proper record for appellate review. As part of this effort, defense counsel should request, whenever necessary, that all trial proceedings be recorded.

6. Where appropriate, defense counsel should advise the client as to suitable courtroom dress and demeanor. If the client is incarcerated, defense counsel should be alert to the possible prejudicial effects of the client appearing before the jury in jail or other inappropriate clothing.

7. Defense counsel should plan with the client the most convenient system for conferring throughout the trial. Where necessary, defense counsel should seek a court order to have the client available for conferences.

8. Throughout preparation and trial, defense counsel should consider the potential effects that particular actions may have upon sentencing if there is a finding of guilt.

9. Defense counsel should consider all steps necessary to complete investigation, discovery, and research in advance of trial, such that defense counsel is confident that the most viable defense theory has been fully developed, pursued, and refined. This preparation should include consideration of:

A. summonsing all potentially helpful witnesses, utilizing ex parte procedures if advisable.

B. summonsing all potentially helpful physical or documentary evidence;

C. arranging for defense experts to consult and/or testify on any evidentiary issues that are potentially helpful; e.g., testing of physical evidence, opinion testimony, etc.

D. obtaining and reading transcripts and/or prior proceedings in the case or related proceedings;

E. obtaining photographs or preparing charts, maps, diagrams or other visual aids of all scenes, persons, objects or information which may aid the fact finder in understanding the defense case.

SECTION 9. VOIR DIRE AND JURY SELECTION

1. Defense counsel should be familiar with the procedures by which a jury venire is selected in the particular jurisdiction and should be alert to any potential legal challenges to the composition or selection of the venire.

2. Defense counsel should be familiar with the local practices and the individual trial judge’s procedures for selecting a jury from a panel of the venire, and should be alert to any potential legal challenges to these procedures.

3. Prior to jury selection, defense counsel should review the prospective juror list and juror questionnaire.

4. Where appropriate, defense counsel should develop voir dire questions in advance of trial. Defense counsel should tailor voir dire questions to the specific case. Among the purposes voir dire questions should be designed to serve are the following:

A. to elicit information about the attitudes of individual jurors, which will inform about peremptory strikes and challenges for cause;

B. to convey to the panel certain legal principles which are critical to the defense case.

5. Defense counsel should be familiar with the law concerning discretionary voir dire inquiries so as to be able to defend any request or make a request to ask particular questions of prospective jurors.

6. Defense counsel should be familiar with the law concerning challenges for cause and peremptory strikes. Defense counsel should also be aware of any local rules concerning whether peremptory challenges need to be exhausted in order to preserve for appeal any challenges for cause which have been denied.

SECTION 10. PRESENTING THE DEFENSE CASE

1. Defense counsel should develop, in consultation with the client, an overall defense strategy. In deciding on defense strategy, defense counsel should consider whether the client’s interests are best served by not putting on a defense case, and instead relying on the prosecution’s failure to meet its constitutional burden of proving each element beyond a reasonable doubt.

2. Confronting the Prosecution’s Case

A. Defense counsel should attempt to anticipate weaknesses in the prosecution’s proof and consider researching and preparing corresponding motions for judgment of acquittal.

B. Defense counsel’s belief or knowledge that the witness is telling the truth does not preclude cross-examination.

C. In preparing for cross-examination, defense counsel should be familiar with the applicable law and procedures concerning cross-examinations and impeachment of witnesses. In order to develop material for impeachment or to discover documents subject to disclosure, defense counsel should be prepared to question witnesses as to the existence of prior statements which they may have made or adopted.

D. In preparing for cross-examination, defense counsel should:

(1) consider the need to integrate cross-examination, the theory of the defense and closing argument;

(2) consider whether cross-examination of each individual witness is likely to generate helpful information;

(3) anticipate those witnesses the prosecutor might call in its case-in-chief or in rebuttal;

(4) consider a cross-examination plan for each of the anticipated witnesses;

(5) be alert to inconsistencies in witnesses’ testimony;

(6) be alert to possible variations in witnesses’ testimony;

(7) review all prior statements of the witnesses and any prior relevant testimony of the prospective witnesses;

(8) where appropriate, review relevant statutes and local police regulations for possible use in cross-examining police witnesses;

(9) be alert to issues relating to witness credibility, including bias and motive for testifying.

3. Presentation of Evidence

A. Defense counsel should not knowingly offer false evidence, whether by documents, tangible evidence, or the testimony of witnesses, or fail to take reasonable remedial measures upon discovery of its falsity.

B. Defense counsel should not knowingly and for the purpose of bringing inadmissible matter to the attention of the judge or jury, offer inadmissible evidence, ask legally objectionable questions, or make other impermissible comments or arguments in the presence of the judge or jury.

C. Defense counsel should not permit any tangible evidence to be displayed in the view of the judge or jury which would tend to prejudice fair consideration of the case by the judge or jury until such time as a good faith tender of such evidence is made.

D. Defense counsel should not tender tangible evidence in the presence of the judge or jury if it would tend to prejudice fair consideration of the case, unless there is a reasonable basis for its admission in evidence. When there is any substantial doubt about the admissibility of such evidence, it should be tendered by an offer of proof and a ruling obtained.

4. Presenting the Defense Case

A. Defense counsel should discuss with the client all of the considerations relevant to the client’s decision to testify.

B. Defense counsel should be aware of the elements of any affirmative defense and know whether, under the applicable law of the jurisdiction, the client bears a burden of persuasion or a burden of production.

C. In preparing for presentation of a defense case, defense counsel should, where appropriate:

(1) develop a plan for direct examination of each potential defense witness;

(2) determine the implications that the order of witnesses may have on the defense case;

(3) consider the possible use of character witnesses;

(4) consider the need for expert witnesses.

D. In developing and presenting the defense case, defense counsel should consider the implications it may have for a rebuttal by the prosecutor.

E. Defense counsel should prepare all witnesses for direct and possible cross-examination. Where appropriate, defense counsel should also advise witnesses of suitable courtroom dress and demeanor.

F. Defense counsel should conduct redirect examination as appropriate.

G. At the close of the defense case, defense counsel should renew the motion for judgment of acquittal on each charged count.

5. Jury Instructions

A. Defense counsel should be familiar with the local rules and the individual judges’ practices concerning ruling on proposed instructions, charging the jury, use of standard charges and preserving objections to the instructions.

B. Where appropriate, defense counsel should submit modifications of the standard jury instructions in light of the particular circumstances of the case, including the desirability of seeking a verdict on a lesser included offense. Where possible, defense counsel should provide case law in support of the proposed instructions.

C. Where appropriate, defense counsel should object to and argue against improper instructions proposed by the prosecution.

D. If the court refuses to adopt instructions requested by defense counsel, or gives instructions over defense counsel’s objection, defense counsel should take all steps necessary to preserve the record, including, where appropriate, filing a copy of proposed instructions or reading proposed instructions into the record.

E. During delivery of the charge, defense counsel should be alert to any deviations from the judge’s planned instructions, object to deviations unfavorable to the client, and, if necessary, request additional or curative instructions.

F. If the court proposes giving supplemental instructions to the jury, either upon request of the jurors or upon their failure to reach a verdict, defense counsel should request that the judge state the proposed charge to defense counsel before it is delivered to the jury.

6. Post-Trial Motions

Defense counsel’s responsibility includes presenting appropriate post-trial motions to protect the defendant’s rights.

7. Post-Disposition Procedures

Defense counsel should be familiar with the procedures available to the client after disposition. Implementation is as follows:

A. Defense counsel should be familiar with the procedures to request a new trial including the time period for filing such a motion, the effect it has upon the time to file a notice of appeal, and the grounds that can be raised.

B. Defense counsel should inform the client of his or her right to appeal the judgment and/or the sentence or disposition of the court and the action that must be taken to perfect an appeal. In circumstances where the client wants to file an appeal but is unable to do so without the assistance of defense counsel, defense counsel should file the notice in accordance with the rules of the court and take such other steps as are necessary to preserve the client’s right to appeal.

C. Where a client indicates a desire to appeal the judgment and/or sentence or disposition of the court, defense counsel should inform the client of any right that may exist to be released pending the disposition of the appeal.

D. Where a custodial sentence has been imposed, defense counsel should consider requesting a stay of execution of the judgment to permit the client to report directly to the place of confinement.

E. Defense counsel should inform the client of procedures available for requesting a discretionary review of or reduction in the sentence imposed by the trial court, including any time limitations that apply to such a request.

8. Courtroom Professionalism

A. As an officer of the court, defense counsel should support the authority of the court and the dignity of the trial courtroom by strict adherence to codes of professionalism and by manifesting a professional attitude toward the judge, opposing counsel, witnesses, jurors, and others in the courtroom.

B. Defense counsel should not engage in unauthorized ex parte discussions with or submission of material to a judge relating to a particular case which is or may come before the judge.

C. When the court is in session, defense counsel should address the court and should not address the prosecutor directly on all matters relating to the case.

D. Defense counsel should comply promptly with all orders and directives of the court, but defense counsel has a duty to have the record reflect adverse rulings or judicial conduct which defense counsel considers prejudicial to his or her client’s legitimate interests. Defense counsel has a right to make respectful requests for reconsiderations of adverse rulings.

SECTION 11. OBLIGATIONS OF COUNSEL IN SENTENCING

Among defense counsel’s obligations in the sentencing process are:

1. Where a defendant chooses not to proceed to trial, to ensure that a plea agreement is negotiated with consideration of the sentencing, correctional, and financial implications;

2. To ensure the client is not harmed by inaccurate information or information that is not properly before the court in determining the sentence to be imposed;

3. To ensure all reasonably available mitigating and favorable information, which is likely to benefit the client, is presented to the court;

4. To develop a plan which seeks to achieve the least restrictive and burdensome sentencing alternative that is most acceptable to the client, and which can reasonably be obtained based on the facts and circumstances of the offense, the defendant’s background, the applicable sentencing provisions, and other information pertinent to the sentencing decision;

5. To ensure all information presented to the court which may harm the client and which is not shown to be accurate and truthful or is otherwise improper is stricken from the text of the pre-sentence investigation report before distribution of the report;

6. To consider the need for and availability of sentencing specialists, and to seek the assistance of such specialists whenever possible and warranted.

SECTION 12. SENTENCING OPTIONS, CONSEQUENCES AND PROCEDURES

1. Defense counsel should be familiar with the sentencing provisions and options applicable to the case, including:

A. deferred disposition, judgment without a finding, and diversionary programs;

B. probation or suspension of sentence and permissible conditions of probation;

C. restitution;

D. fines;

E court costs;

F. imprisonment, including any mandatory minimum requirements;

G. confinement in mental institution;

H. forfeiture.

2. Defense counsel should be familiar with direct and collateral consequences of the sentence and judgment, including:

A. credit for pretrial detention;

B. parole eligibility and applicable parole release ranges;

C. effect of good-time credits on the client’s release date and how those credits are earned and calculated;

D. place of confinement and level of security and classification;

E. self-surrender to place of custody;

F. eligibility for correctional programs and furloughs;

G. available drug rehabilitation programs, psychiatric treatment, and health care;

H. deportation;

I. use of the conviction for sentence enhancement in future proceedings;

J. loss of civil rights;

K. impact of a fine or restitution and any resulting civil liability;

L. restrictions on or loss of license;

M. loss of the right to possess a firearm under Maine or federal law.

3. Defense counsel should be familiar with the sentencing procedures, including:

A. the effect that plea negotiations may have upon the sentencing discretion of the court;

B. the procedural operation of any sentencing guideline system;

C. the effect of a judicial recommendation against deportation;

D. the practices of the officials who prepare the pre-sentence report and the client’s rights in that process;

E. the access to the pre-sentence report by defense counsel and the client;

F. the prosecution’s practice in preparing a memorandum on punishment;

G. the use of a sentencing memorandum by the defense;

H. the opportunity to challenge information presented to the court for sentencing purposes;

I. the availability of an evidentiary hearing to challenge information and the applicable rules of evidence and burdens of proof at such a hearing;

J. the participation that victims and prosecution or defense witnesses may have in the sentencing proceedings.

4. Preparation for Sentencing.

In preparing for sentencing, defense counsel should consider the need to:

A. inform the client of the applicable sentencing requirements, options, and alternatives, and the likely and possible consequences of the sentencing alternatives;

B. maintain regular contact with the client prior to the sentencing hearing, and inform the client of the steps being taken in preparation for sentencing;

C. obtain from the client relevant information concerning such subjects as his or her background and personal history, prior criminal record, employment history and skills, education, medical history and condition, and financial status, and obtain from the client sources through which the information provided can be corroborated;

D. ensure the client has adequate time to examine the pre-sentence report;

E. inform the client of his or her right to speak at the sentencing proceeding and assist the client in preparing the statement, if any, to be made to the court, considering the possible consequences that any admission of guilt may have upon an appeal, subsequent retrial or trial on other offenses;

F. prepare the client to be interviewed by the official preparing the pre-sentence report;

G. inform the client of the effects that admissions and other statements may have upon an appeal, retrial, parole proceedings, or other judicial proceedings, such as forfeiture or restitution proceedings;

H. inform the client of the sentence or range of sentences defense counsel will ask the court to consider; if the client and defense counsel disagree as to the sentence or sentences to be urged upon the court, defense counsel shall inform the client of his or her right to speak personally for a particular sentence or sentences;

I. collect documents and affidavits to support the defense position and, where relevant, prepare witnesses to testify at the sentencing hearing; where necessary, counsel should specifically request the opportunity to present tangible and testimonial evidence.

5. The Prosecution’s Sentencing Position

A. Defense counsel should attempt to determine, unless there is a sound tactical reason for not doing so, whether the prosecution will advocate that a particular type or length of sentence be imposed.

B. If a written sentencing memorandum is submitted by the prosecution, defense counsel should request to see the memorandum and verify that the information presented is accurate; if the memorandum contains erroneous or misleading information, defense counsel should take appropriate steps to correct the information unless there is a sound strategic reason for not doing so.

C. If defense counsel request to see the prosecution memorandum is denied, an applicable motion to examine the document should be made to the court or a motion made to exclude consideration of the report by the court and to prevent distribution of the memorandum to parole and correctional officials.

6. The Sentencing Process

A. Defense counsel should be prepared at the sentencing proceeding to take the steps necessary to advocate fully for the requested sentence and to protect the client’s interest.

B. Defense counsel should be familiar with the procedures available for obtaining an evidentiary hearing before the court in connection with the imposition of sentence.

C. In the event there will be disputed facts before the court at sentencing, defense counsel should consider requesting an evidentiary hearing. Where a sentencing hearing will be held, defense counsel should ascertain who has the burden of proving a fact unfavorable to the client, be prepared to object if the burden is placed on the defense, and be prepared to present evidence, including testimony of witnesses, to contradict erroneous or misleading information unfavorable to the client.

D. Where information favorable to the client will be disputed or challenged, counsel should be prepared to present supporting evidence, including testimony of witnesses, to establish the facts favorable to the client.

E. Where the court has the authority to do so, defense counsel should request specific orders or recommendations from the court concerning the place of confinement, parole eligibility, psychiatric treatment or drug rehabilitation, permission for the client to surrender directly to the place of confinement and against deportation of the defendant.

F. Where appropriate, defense counsel should prepare the client to personally address the court.

7. The Defense Sentencing Memorandum

A. Defense counsel should prepare and present to the court a defense sentencing memorandum where there is a strategic reason for doing so. Among the topics defense counsel may wish to include in the memorandum are:

(1) challenges to incorrect or incomplete information in any prosecution sentencing memorandum;

(2) challenges to improperly drawn inferences and inappropriate characterizations in the official presentence report and any prosecution sentencing memorandum;

(3) information contrary to that before the court which is supported by affidavits, letters and public records;

(4) information favorable to the client concerning such matters as the offense, mitigating factors and relative culpability, prior offenses, personal background, employment record and opportunities, education background, and family and financial status;

(5) information which would support a sentencing disposition other than incarceration, such as the potential for rehabilitation or the nonviolent nature of the crime;

(6) information concerning the availability of treatment programs, community treatment facilities, and community service work opportunities;

(7) presentation of a sentencing proposal.

8. Motion for a New Trial

A. Defense counsel should be familiar with the procedures available to request a new trial including the time period for filing such a motion, the effect it has upon the time to file a notice of appeal, and the grounds that can be raised.

B. When a judgment of guilty has been entered against the defendant after trial, defense counsel should consider whether it is appropriate to file a motion for a new trial with the trial court. In deciding whether to file such a motion, the factors defense counsel should consider include:

(1) the likelihood of success of the motion, given the nature of the error or errors that can be raised;

(2) the effect that such a motion might have upon the client’s appellate rights, including whether the filing of such a motion is necessary to, or will assist in, preserving the client’s right to raise on appeal the issues that might be raised in the new trial motion.

9. Bail Pending Appeal

A. Where a client indicates a desire to appeal the judgment and/or sentence of the court, defense counsel should inform the client of any right that may exist to be released on bail pending the disposition of the appeal.

B. Where an appeal is taken and the client requests bail pending appeal, defense counsel should cooperate with appellate counsel (if different counsel) in providing information to pursue the request for bail.

10. Self-Surrender

Where a custodial sentence has been imposed, defense counsel should consider requesting a stay of execution of the judgment to permit the client to report directly to the place of confinement.

11. Right to Appeal

A. Defense counsel should inform the client of his or her right to appeal the judgment of the court and the action that must be taken to perfect an appeal. In circumstances where the client wants to file an appeal but is unable to do so without the assistance of counsel, defense counsel should file the notice in accordance with the rules of the court and take such other steps as are necessary to preserve the client’s right to appeal, such as ordering transcripts of the trial proceedings.

B. Defense counsel’s advice to the client should include an explanation of the right to appeal the judgment of guilty and, in those jurisdictions where it is permitted, the right to appeal the sentence imposed by the court.

C. Where the client takes an appeal, defense counsel should cooperate in providing information to appellate counsel (if different counsel) concerning the proceedings in the trial court.

12. Sentence Reduction

Defense counsel should inform the client of procedures available for requesting a discretionary review of, or reduction in, the sentence imposed by the trial court, including any time limitations that apply to such a request.

History

• STATUTORY AUTHORITY: 4 M.R.S. §1804(2)(C), §1804(2)(D), §1804(2)(E), §1804(3)(D), §1804(4)(D)
• EFFECTIVE DATE: February 27, 2012 – filing 2012-53
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• EFFECTIVE DATE: NONSUBSTANTIVE CORRECTIONS (update of name of agency in the rule header):
• EFFECTIVE DATE: April 2, 2026

Chapter 103 Standards of Practice for Attorneys who Represent Parents in Child Protective Cases

Code Me. R. 94-649 Ch. 103 Standards of Practice for Attorneys Who Represent Parents in Child Protective Cases {#sec-94-649-ch.-103 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 103}

Summary: This Chapter establishes standards of practice for Commission assigned counsel providing representation to parents in child protective proceedings. Theses standards are intended to guide assigned counsel in the conduct of their representation and for use by the Commission in evaluating, supervising and training assigned counsel.

SECTION 1. SCOPE & PURPOSE

1. These Standards apply whenever defense counsel is assigned pursuant to the Maine Commission on Indigent Legal Services’ (MCILS) jurisdiction to provide representation to a client whose parental rights are at risk by State action who are financially unable to retain defense counsel and who are entitled to representation pursuant to Maine statute and/or the United States and Maine Constitutions.

These standards are intended as a guide for assigned defense counsel and for use by MCILS in evaluating, supervising and training assigned counsel. Although MCILS understands that not every action outlined in these standards is necessary in every case, the Commission will apply these standards, the Maine Rules of Civil Procedure and the Maine Rules of Professional Conduct, as well as all other Commission policies and procedures, in evaluating the performance or conduct of counsel.

SECTION 2. GENERAL DUTIES

1. Defense counsel should adhere to all Maine Commission on Indigent Legal Services (MCILS) training, experience, and mentoring requirements.

2. Defense counsel should acquire sufficient working knowledge of all relevant federal and Maine laws, regulations, policies, and rules. Defense counsel must be familiar with the following provisions and be able to recognize when they are relevant to a case:

A. The Adoption and Safe Families Act (ASFA), 42 U.S.C. §§ 620-679.

B. Child Abuse Prevention Treatment Act (CAPTA), P.L.108-36;

C. Indian Child Welfare Act (ICWA) 25 U.S.C. §§ 1901-1963, the ICWA Regulations, 25 C.F.R. Part 23, and the Guidelines for State Courts: Indian Child Custody Proceedings, 44 Fed. Reg. 67, 584 (Nov. 26, 1979);

D. Interstate Compact on Placement of Children (ICPC);

E. Foster Care Independence Act of 1999 (FCIA), P.L. 106-169;

F. Individuals with Disabilities Education Act (IDEA), P.L. 91-230;

G. Health Insurance Portability and Accountability Act of 1996 (HIPPA), P. L., 104-192 § 264, 42 U.S.C. § 1320d-2 (in relevant part);

H. Immigration laws relating to child welfare and child custody;

I. Title 22 Maine Revised Statutes, Health and Welfare;

J. Title 19-A Maine Revised Statutes, Domestic Relations;

K. Maine Rules of Evidence;

L. Maine Rules of Civil Procedure;

M. Maine Rules of Appellate Procedure;

N. Maine Bar Rules;

O. Current Maine Case Law.

3. Defense counsel should understand and protect the client’s rights to information and decision making. Defense counsel must explain to the client what decision making authority remains with the client and what lies with the State while the child is in the State’s custody. This includes but is not limited to:

A. Seeking updates and reports from any service provider working with the child/family;

B. Helping the client obtain information about the child’s safety, health, education and well-being when the client desires;

C. Assisting the client in exercising his or her rights to continue to make decisions regarding the child’s medical, mental health and educational services;

D. Intervening with the State, provider agencies, medical providers and the school to ensure the client has decision-making opportunities;

E. Seeking court orders when the client has been left out of important decisions about the child’s life;

F. Counseling the client and helping the parent understand his or her rights and responsibilities and trying to assist the parent in carrying them out.

4. Defense counsel should avoid continuances and work to reduce delays in court proceedings.

A. Defense counsel should not request continuances unless there is an emergency or a benefit to the client’s case.

B. If continuances are necessary, defense counsel should request the continuance in writing, as far as possible in advance of the hearing, and should request the shortest delay possible, consistent with the client’s interests.

C. Defense counsel must notify all counsel of the request for a continuance. Defense counsel should object to repeated or prolonged continuance requests by other parties if the continuance would harm the client.

5. Defense counsel should cooperate and communicate regularly with other professionals in the case.

A. Defense counsel should communicate with attorneys for the other parties, court appointed special advocates (CASAs) or guardians ad litem (GALs), the caseworker, foster parents and service providers to learn about the client’s progress and their views of the case, as appropriate, and in compliance with rules of confidentiality (22 M.R.S.A. § 4008).

B. Defense counsel should have open lines of communication with the attorney(s) representing the client in related matters such as any criminal, protection from abuse, private custody or administrative proceedings to ensure that probation orders, protection from abuse orders, private custody orders and administrative determinations do not conflict with the client’s goals in the child protection case.

SECTION 3. RELATIONSHIPS WITH CLIENT

1. Defense counsel should be an advocate for the client’s goals.

A. Defense counsel must understand the client’s goals and pursue them vigorously.

B. Defense counsel must explain that the defense counsel’s job is to represent the client’s interests and regularly inquire as to the client’s goals, including ultimate case goals and interim goals.

C. Defense counsel must explain all legal aspects of the case and provide comprehensive counsel on the advantages and disadvantages of different options.

D. Defense counsel must not usurp the client’s authority to decide the case goals.

2. Defense counsel should act in accordance with the duty of loyalty owed to the client.

A. Defense counsel should show respect and professionalism towards their clients.

B. Defense counsel should support their client and be sensitive to the client’s individual needs.

C. Defense counsel should remember that they may be the client’s only advocate in the system and should act accordingly.

3. Defense counsel should adhere to all laws and ethical obligations concerning confidentiality.

A. Defense counsel must understand confidentiality laws, as well as ethical obligations, and adhere to both with respect to information obtained from or about the client.

B. Defense counsel must fully explain to the client the advantages and disadvantages of choosing to exercise, partially waive, or waive a privilege or right to confidentiality.

C. Consistent with the client's interests and goals, defense counsel must seek to protect from disclosure confidential information concerning the client.

4. Defense counsel should provide the client with contact information in writing and establish a message system that allows regular attorney-client contact.

A. Defense counsel should ensure the client understands how to contact the defense counsel and that defense counsel wants to hear from the client on an ongoing basis.

B. Defense counsel and the client should establish a reliable communication system that meets the client’s needs.

C. Interpreters should be used when defense counsel and the client are not fluent in the same language.

5. Defense counsel should meet and communicate regularly with the client well before court proceedings.

A. Defense counsel should spend time with the client to prepare the case and address questions and concerns.

(1) Defense counsel should clearly explain the allegations made against the parent, what is likely to happen before, during and after each hearing, and what steps the client can take to increase the likelihood of reuniting with the child.

(2) Defense counsel should explain any settlement options and determine whether the client wants defense counsel to pursue such options.

(3) Defense counsel should explain courtroom procedures.

(4) Defense counsel should write to the client to ensure the client understands what happened in court and what is expected of the client.

(5) Defense counsel should be available for in-person meetings or telephone calls to answer the client’s questions and address the client’s concerns.

(6) Defense counsel and client should work together to identify and review short and long-term goals, particularly as circumstances change during the case.

(7) Defense counsel should help the client access information about the child’s developmental and other needs by speaking to service providers and reviewing the child’s records. Defense counsel needs to understand these issues to make appropriate decisions for the child’s care.

(8) Defense counsel and the client should identify barriers to the client engaging in services, such as employment, transportation, and financial issues. Defense counsel should work with the client, caseworker and service provider to resolve the barriers.

(9) Defense counsel should be aware of any special issues the parents may have related to participating in the proposed case plan, such as an inability to read or language differences, and advocate with the child welfare agency and court for appropriate accommodations.

B. Defense counsel should ensure a formal interpreter is involved when defense counsel and the client are not fluent in the same language.

(1) Defense counsel should advocate for the use of an interpreter when other professionals in the case who are not fluent in the same language as the client are interviewing the client.

6. Defense counsel should work with the client to develop a case timeline and tickler system.

A. At the beginning of a case, defense counsel and client should develop timelines that reflect projected deadlines and important dates and a tickler/calendar system to remember the dates.

(1) The timeline should specify what actions defense counsel and the client will need to take and dates by which they will be completed.

(2) Defense counsel and the client should know when important dates will occur and should be focused on accomplishing the objectives in the case plan in a timely way.

(3) Defense counsel should provide the client with a timeline/calendar, outlining known and prospective court dates, deadlines, and critical points of attorney-client contact.

(4) Defense counsel should record federal and state law deadlines in the system.

7. Defense counsel should provide the client with copies of all petitions, court orders, service plans, and other relevant case documents.

A. Defense counsel should ensure the client is informed about what is happening in the case.

(1) Defense counsel should provide all written documents to the client or ensure that they are provided in a timely manner and ensure the client understands them. If the client has difficulty reading, the attorney should read the documents to the client.

(2) In all cases, defense counsel should be available to discuss and explain the documents to the client.

(3) Defense counsel must be aware of any case-related domestic violence allegations and not share confidential information about an alleged or potential victim’s location.

8. Defense counsel should be alert to and avoid potential conflicts of interest that would interfere with the competent representation of the client. Defense counsel should always avoid representing more than one parent in a case.

9. Defense counsel should act in a culturally competent manner.

A. Defense counsel should learn about and understand the client’s background, determine how that has an impact on the client’s case, and always show the client respect.

B. Defense counsel must understand how cultural and socioeconomic differences impact interaction with clients, and must interpret the client’s words and actions accordingly.

10. Defense counsel should take diligent steps to locate and communicate with a missing client.

A. Defense counsel should take diligent steps to attempt to locate and communicate with the missing client to formulate what positions defense counsel should take at hearings, and to understand what information the client wishes defense counsel to share with the State and the court.

B. If, after diligent steps, defense counsel is unable to communicate with the client, defense counsel should assess whether the client’s interests are better served by advocating for the client’s last clearly articulated position, or declining to participate in further court proceedings, and should act accordingly.

C. After a prolonged period without contact with the client, defense counsel should consider withdrawing from representation.

11. Defense counsel should be aware of the unique issues an incarcerated client faces.

A. Defense counsel must be particularly diligent when representing an incarcerated client and be aware of the reasons for the incarceration.

(1) If the client is incarcerated as a result of an act against the child or another child in the family, the State agency may request an order from the court that reasonable efforts toward reunification are not necessary and attempt to fast-track the case toward other permanency goals.

(a) If this is the case, defense counsel must be prepared to argue against such a motion, if the client opposes it.

(b) If no motion is made to waive the reasonable efforts requirement, the agency may not undertake the same reunification efforts to assist a client who is incarcerated.

(c) Defense counsel should counsel the client as to any effects incarceration has on the agency’s obligations and know the statutory and case law concerning incarceration as a basis for TPR.

(d) Defense counsel should help the client identify potential kinship placements with relatives who can provide care for the child while the client is incarcerated.

(e) Defense counsel must understand the implications of ASFA for an incarcerated client who has difficulty visiting and planning for the child.

(2) Defense counsel should understand that obtaining services such as substance abuse treatment, parenting skills, or job training while in jail or prison is often difficult.

(a) Defense counsel may need to advocate for reasonable efforts to be made for the client, and assist the client and the agency caseworker in accessing services.

(b) Defense counsel must assist the client with these services. Without services, it is unlikely the client will be reunified with the child upon discharge from prison.

(c) Some incarcerated clients (e.g. women housed at Windham M.C.C.) may have access to a specialized unit that gives a client reasonable access to their child(ren). Defense counsel should advocate for such a placement.

(d) Defense counsel must learn about available resources, contact the placements and attempt to get the support of the agency.

B. Communication:Defense counsel should advise the client on the importance of maintaining regular contact with the child while incarcerated.

(1) Defense counsel should assist in developing a plan for communication and visitation by obtaining necessary court orders and working with the caseworker as well as the correctional facility’s social worker.

(2) If the client cannot meet defense counsel before court hearings, defense counsel must find alternative ways to communicate. This may include visiting the client in prison or engaging in more extensive phone or mail contact than with other (non-incarcerated) clients. Defense counsel should be aware of the challenges to having a confidential conversation with the client, and attempt to resolve these challenges.

(3) Defense counsel should also communicate with the client’s criminal defense attorney. There may be issues related to self-incrimination as well as concerns about delaying the abuse and neglect case to strengthen the criminal case or vice versa.

C. Appearance in Court:The client’s appearance in court frequently raises issues that require the attorney’s attention in advance.

(1) Defense counsel should find out from the client if the client wants to be present in court. In some prisons, inmates lose privileges if they are away from the prison, and the client may prefer to stay at the prison.

(2) If the client wants to be present in court, defense counsel should work with the court to obtain a writ of habeas corpus or other documentation necessary for the client to be transported from the prison.

(3) Defense counsel should explain to any client who is hesitant to appear that the case will proceed without the client’s presence and raise any potential consequences of that choice.

(4) If the client does not want to be present, or if having the client present is not possible, defense counsel should be educated about what means are available to have the client participate, such as by telephone or video conference.

(5) Defense counsel should make the necessary arrangements for the client. Note that it may be particularly difficult to get a parent transported from an out-of-state prison or a federal prison.

12. Defense counsel should be aware of the client’s mental health status and legal status.

A. Defense counsel must be able to determine whether a client’s mental status (including mental illness and mental retardation) interferes with the client’s ability to make decisions about the case.

(1) Defense counsel should be familiar with any mental health diagnosis and treatment that a client has had in the past or is presently undergoing (including any medications for such conditions). Defense counsel should get consent from the client to review mental health records and to speak with former and current mental health providers.

(2) Defense counsel should explain to the client that the information is necessary to understand the client’s capacity to work with the attorney.

(3) If the client’s situation seems severe, defense counsel should also explain that defense counsel may seek the assistance of a clinical social worker or some other mental health expert to evaluate the client’s ability to assist the attorney because if the client does not have that capacity, defense counsel may have to ask that a guardian ad litem be appointed to the client.

(4) Since this action may have an adverse effect on the client’s legal claims, defense counsel should ask for a GAL only when absolutely necessary.

(5) Defense counsel must also be able to determine, when working with a client who is a minor, whether a GAL should be appointed for the client to determine the client’s best interest.

SECTION 4. INVESTIGATION

1. Defense counsel should conduct a thorough and independent investigation at every stage of the proceeding.

A. Defense counsel must take all necessary steps to prepare each case. A thorough investigation is an essential element of preparation.

B. Defense counsel cannot rely solely on what the agency caseworker reports about the parent.

C. Defense counsel should contact service providers who work with the client, relatives who can discuss the client’s care of the child, the child’s teacher or other people who can clarify information relevant to the case. If necessary, the attorney should request that the Commission authorize the expenditure of funds to hire an investigator pursuant to Chapter 302: Procedures Regarding Funds for Experts and Investigators.

2. Defense counsel should interview the client well before each hearing.

A. Defense counsel should meet with the client regularly throughout the case. The meetings should occur well before the hearing and not at the courthouse just minutes before the case is called before the judge.

B. Defense counsel should ask the client questions to obtain information to prepare the case, and strive to create a comfortable environment so the client can ask the attorney questions. Defense counsel should use these meetings to prepare for court as well as to advise the client concerning issues that arise during the course of the case.

C. Information obtained from the client should be used to propel the investigation.

SECTION 5. INFORMAL DISCOVERY

1. Defense counsel should request and review all discoverable material in the State agency’s case file.

A. Defense counsel should request and review the agency case file as early during the course of representation as possible. The file contains useful documents that defense counsel may not yet have and that may instruct defense counsel on the agency’s case theory.

(1) If the agency case file is inaccurate, defense counsel should seek to correct it.

(2) Defense counsel must request and review the case file periodically because information is continually added by the agency.

2. Defense counsel should obtain all necessary documents.

A. As part of the discovery phase, defense counsel should gather all relevant documentation regarding the case that might shed light on the allegations, the service plan and the client’s strengths as a parent.

(1) Defense counsel should not limit the scope as information about past or present criminal, protection from abuse, private custody or administrative proceedings involving the client can have an impact on the abuse and neglect case.

(2) Defense counsel should also review the following kinds of documents: social service records; court records; medical records; school records; and, evaluations of all types.

(3) Defense counsel should be sure to obtain reports and records from service providers. Discovery is not limited to information regarding the client, but may include records of others such as the other parent, stepparent, child, relative and non-relative caregivers.

SECTION 6. FORMAL DISCOVERY

1. Defense counsel should, when needed, use formal discovery methods to obtain information.

A. Defense counsel should know what information is needed to prepare for the case and understand the best methods of obtaining that information.

(1) Defense counsel should become familiar with pretrial discovery requests and motions, and use whatever tools are available to obtain necessary information. Defense counsel should be aware of the limitations on the use of a subpoena to require the release of confidential information without a court order and should have subpoenas served in a timely manner to provide time for court involvement in the production of the documents sought.

(2) Defense counsel should consider the following types of formal discovery: depositions, interrogatories (including expert interrogatories), requests for production of documents, requests for admissions, and motions for mental or physical examination of a party.

(3) Defense counsel should file timely motions for discovery and renew these motions as needed to obtain the most recent records.

(4) Defense counsel, consistent with the client's interests and goals and where appropriate, should take all necessary steps to preserve and protect the client's rights by opposing discovery requests of other parties.

SECTION 7. COURT PREPARATION

1. Defense counsel should develop a case theory and strategy to follow at hearings and negotiations.

A. Once defense counsel has completed the initial investigation and discovery, including interviews with the client, defense counsel should develop a strategy for representation. The strategy may change throughout the case, as the client makes or does not make progress, but the initial theory is important to assist defense counsel in staying focused on the client’s wishes and on what is achievable.

B. The theory of the case should inform defense counsel’s preparation for hearings and arguments to the court throughout the case. It should also help defense counsel decide what evidence to develop for hearings and the steps to take to move the case toward the client’s ultimate goals (e.g., requesting increased visitation when a parent becomes engaged in services).

2. Defense counsel should timely file all pleadings, motions, and briefs.

A. Defense counsel must file petitions, motions, discovery requests, and responses and answers to pleadings filed by other parties that are appropriate for the case.

(1) These pleadings must be thorough, accurate and timely.

(2) When a case presents a complicated or new legal issue, defense counsel should conduct the appropriate research before appearing in court.

(3) Defense counsel must have a solid understanding of the relevant law, and be able to present it to the judge in a compelling and convincing way.

(4) Defense counsel should be prepared to distinguish case law that appears to be unfavorable. If the judge asks for memoranda of law, defense counsel will already have done the research and will be able to use it to argue the case well.

(5) If it would advance the client’s case, defense counsel should present an unsolicited memorandum of law to the court.

3. Defense counsel should engage in case planning and advocate for appropriate social services.

A. Defense counsel must advocate for the client both in and out of court.

B. Defense counsel should know about the social, mental health, substance abuse treatment and other services that are available to clients and families in the jurisdiction in which defense counsel practices so defense counsel can advocate effectively for the client to receive these services.

C. If the client wishes or agrees to engage in services, defense counsel must determine whether the client has access to the necessary services to overcome the issues that led to the case.

4. Defense counsel should aggressively advocate for regular visitation in a family-friendly setting.

5. Defense counsel should engage in settlement negotiations and mediation to resolve the case.

6. Defense counsel should thoroughly prepare the client to testify at the hearing.

A. When having the client testify will benefit the case or when the client wishes to testify, defense counsel should thoroughly prepare the client.

B. Defense counsel should discuss and practice the questions that the attorney will ask the client, as well as the types of questions the client should expect opposing counsel to ask. Defense counsel should help the client think through the best way to present information, familiarize the client with the court setting, and offer guidance on logistical issues such as how to get to court on time and appropriate court attire.

7. Defense counsel should identify, locate and prepare all witnesses.

8. Defense counsel should identify, secure, prepare and qualify expert witnesses.

A. Defense counsel must identify, as early in your representation as possible, whether you will need an expert for consultation and/or testimony.

B. Defense counsel must determine if an opposing party will be employing expert witnesses.

C. Defense counsel must locate experts and seek necessary funding in a timely manner.

D. Defense counsel must spend time preparing expert witnesses for trial.

E. Defense counsel should, when appropriate, use interrogatories, depositions and/or interviews to question opposing experts.

SECTION 8. HEARINGS

1. Defense counsel should attend and prepare for all hearings.

2. Defense counsel should prepare and make all appropriate motions and evidentiary objections.

A. Defense counsel must file motions and evidentiary objections in advance of the hearing whenever possible.

B. Defense counsel must file briefs in support of motions when necessary.

C. Defense counsel must always be aware of preserving issues for appeal.

3. Defense counsel should present and cross-examine witnesses, prepare and present exhibits.

A. Defense counsel must prepare witnesses in advance of hearings.

B. Defense counsel must prepare cross examination of opposing witnesses

C. Defense counsel must organize documents, photos and all other potential exhibits before hearing.

D. Defense counsel must be aware of potential evidentiary issues regarding admissibility of testimony and exhibits.

4. Defense counsel should request the opportunity to make opening and closing arguments.

5. If requested by the court or necessary to protect the client’s interests, Defense counsel should prepare proposed findings of fact, conclusions of law and orders.

SECTION 9. POST HEARINGS/APPEALS

1. Defense counsel should review court orders to ensure accuracy and clarity and review with client.

A. If written court order does not accurately reflect verbal order, defense counsel must take appropriate steps to correct it.

B. Defense counsel must provide the client with a copy of the final order and review it with client to ensure understanding.

C. Defense counsel must advise the client of potential consequences of failing to comply with order.

D. If the client does not agree with the court’s order, defense counsel must advise the client of any appellate or other post-judgment options for relief.

2. Defense counsel should take reasonable steps to ensure the client complies with court orders.

A. Defense counsel must ensure that the client understands and has an ability to meet the client’s obligations under a court order.

(1) Defense counsel should create action plan for client, listing individual obligations and actions the client will need to take to meet the obligation.

(2) Defense counsel should help the client contact and follow up with service agencies.

(3) If service agencies are not meeting their responsibilities in respect to the client, defense counsel must be prepared to bring the case back to court or take other steps to ensure appropriate services are available.

3. Defense counsel should consider and discuss the possibility of appeal with the client.

4. If the client decides to appeal, defense counsel should timely and thoroughly file the necessary post-hearing motions and paperwork related to the appeal and closely follow the Maine Rules of Appellate Procedure.

5. Defense counsel should request an expedited appeal, when feasible.

6. Defense counsel should communicate the results of the appeal and its implications to the client.

History

• STATUTORY AUTHORITY: 4 M.R.S. §1804(2)(C), §180)(2)(D), §1804(2)(E), §1804(3)(D), §1804(4)(D)
• EFFECTIVE DATE: February 27, 2012 – filing 2012-54
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• EFFECTIVE DATE: NONSUBSTANTIVE CORRECTIONS (update of name of agency in the rule header):
• EFFECTIVE DATE: April 2, 2026

Chapter 201 Appeals of Decisions of the Executive Director

Code Me. R. 94-649 Ch. 201 Appeals of Decisions of the Executive Director {#sec-94-649-ch.-201 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 201}

Summary: This Chapter establishes the process for an appeal from a decision of the Executive Director to the Commissioners of the Commission on Indigent Legal Services (“Commission”) pursuant to 4 M.R.S. §1804(3)(J). It provides for the appointment by the Commission Chair of a Presiding Officer to conduct an appeal process and to prepare a recommended decision for consideration and action by the Commission.

SECTION 1. DEFINITIONS

1. Appellant. “Appellant” means a person who has filed an appeal.

2. Commission or MCILS. "Commission" or “MCILS” means the Maine Commission on Indigent Legal Services.

3. Executive Director. “Executive Director” means the Executive Director of the Maine Commission on Indigent Legal Services or the Executive Director’s decision-making designee.

4. Filing. “File” or “filed” means delivery of an original document to the MCILS Central Office. Delivery may be in-hand, by regular mail, by commercial delivery service or the like. Delivery may not be by electronic means such as email or facsimile.

5. MCILS Advisor. “MCILS Advisor” means a MCILS staff member designated by the Commission Chair to act as MCILS advisor with respect to an appeal.

6. Party. "Party" means the person bringing an appeal and the MCILS Executive Director.

7. Presiding Officer. "Presiding Officer" means the individual appointed by the Commission Chair to conduct the appeal proceedings under this Chapter and make a recommended decision to the Commission.

8. Record. "Record" means those materials required by 5 M.R.S. §9059.

9. Staff. "Staff" means an employee of MCILS.

SECTION 2. APPLICABILITY; WHO MAY APPEAL

1. Application

A. This rule applies to appeals to the Commission from decisions of the Executive Director on issues specifically set forth in 4 M.R.S. §1804(3)(J).

B. A decision of the Executive Director concerning issues not specifically set forth in 4 M.R.S. §1804(3)(J) constitutes final agency action and is not subject to appeal under this Chapter.

2. Who may Appeal. A person who has been aggrieved by a decision of the Executive Director pertaining to the issues set forth in 4 M.R.S. §1804(3)(J) may appeal the decision to the Commission. An appellant may be represented by another person in accordance with 4 M.R.S. §807 or may proceed without representation.

SECTION 3. BRINGING AN APPEAL

1. Decision, reconsideration. Except as stated below, a decision of the Executive Director becomes final if no appeal is filed within the time limits set forth in this section. A person aggrieved by a decision of the Executive Director may, within 10 days after receipt of the decision of the Executive Director, request that the Executive Director reconsider that decision. Such a request must be accompanied by additional materials not previously submitted with respect to the original decision. If a request for reconsideration is filed in accordance with this subsection, the running of that period is tolled, and the time for filing a Statement of Appeal shall be 30 calendar days after receipt of the decision on reconsideration.

Statement of Appeal. An individual who wishes to appeal a decision must file a written Statement of Appeal with MCIS within 30 calendar days after receipt of the Executive Director’s decision. For purposes of this section, a statement of appeal is “filed” on the date it is received at the MCILS Central Office during normal business hours.

3. Contents of the Statement of Appeal. The Statement of Appeal shall include, but is not limited to, a copy of the Executive Director’s decision, the grounds for the appeal, and a statement of the appellant’s position.

4. Only issues that have previously been decided by the Executive Director can be appealed.

5. Assignment to Presiding Officer. When a statement of appeal is received, the Commission Chair shall assign the appeal to a Presiding Officer, in accordance with Section 5. Upon assignment of a Presiding Officer, MCILS staff shall notify the appellant in writing of the Presiding Officer’s name and contact information and provide the appellant with a copy of this Chapter.

6. Assignment of the MCILS Advisor. When the Commission Chair assigns a Presiding Officer to the appeal, the Commission Chair shall also designate the MCILS Advisor. No person authorized to make decisions subject to the appeal process may be designated as MCILS Advisor.

SECTION 4. CHOICE OF APPEALS PROCESS

1. The Presiding Officer shall notify the appellant in writing of the option to choose one of two appeal processes:

A. Expedited Appeal. The appellant may choose to rely solely on the documentary evidence considered by the Executive Director and the Statement of Appeal. The decision to proceed under the Expedited Appeal process is irrevocable once the expedited process has commenced.

B. Hearing on Appeal. Alternatively, the appellant may request to have a hearing pursuant to 5 M.R.S. §9052.

The appellant must respond in writing to the Presiding Officer as to his or her selection of the type of appeal process within 15 calendar days after the written notice by the Presiding Officer. If the appellant does not respond within the timeframe prescribed herein, the Presiding Officer shall commence the Expedited Appeal process set forth in Section 4(1)(A).

If the appellant elects a hearing process, the Presiding Officer shall notify the appellant in writing of the hearing date and provide notice that if the appellant fails to appear at any hearing, the appeal may be deemed to have been abandoned in accordance with Section 7.

SECTION 5. PRESIDING OFFICER

1. Appointment. The Commission Chair shall appoint a Presiding Officer to perform the duties and exercise the powers set forth in this Chapter. The Presiding Officer must be fair, impartial, unbiased, and able to conduct a fair, efficient and effective appeal process.

2. Who Can Serve. The Commission Chair may appoint any Commissioner or other qualified person as the Presiding Officer. The fact that the Presiding Officer is a MCILS rostered attorney does not constitute, by itself, direct or indirect personal or financial interest in an appeal or its outcome.

3. Assignment: Removal: Replacement

A. An appeal will be assigned to a Presiding Officer who has no personal or financial interest, direct or indirect, in the appeal or its outcome, and who has not been involved directly or indirectly in the matter that is the subject of the appeal.

B. If a party files a timely charge of bias, prejudice or personal or financial interest, either direct or indirect, with the Presiding Officer, the Presiding Officer will promptly determine whether to recuse from the appeal and will include that determination in the record.

C. A Presiding Officer may also independently decide to recuse from the appeal if the Presiding Officer cannot be fair, impartial and unbiased.

D. When a Presiding Officer decides to recuse or cannot continue, the Commission Chair will assign the appeal to a new Presiding Officer pursuant to this Section. The Presiding Officer will continue the ongoing appeal process, unless the Presiding Officer determines that in order to avoid substantial prejudice to any party it is necessary to start the process anew.

3. Duty and powers of the Presiding Officer. The Presiding Officer has the duty to render a fair and impartial recommended decision to the Commission in accordance with Section 12 and has all the powers and duties as set forth in 5 M.R.S. §9062. In addition, it is the duty of the Presiding Officer to disclose, upon the request of any party, the substance of the Presiding Officer’s communication with the MCILS Advisor.

4. Recommended Decision of Presiding Officer

A. If an appellant requests an Expedited Appeal pursuant to Section 4(1)(A), the Presiding Officer shall issue a recommended decision to the Commission, as set forth in Section 12, within a reasonable time period.

If an appellant requests a hearing pursuant to Section 4(1)(B), the Presiding Officer will conduct a hearing in accordance with the requirements of the Maine Administrative Procedure Act, 5 M.R.S. §9051 et seq .

SECTION 6. MCILS ADVISOR

The MCILS Advisor shall:

1. Upon request of the Presiding Officer, provide information and documents to the Presiding Officer about the operations and administrative procedures of MCILS; and

2. Provide technical and administrative assistance to the Presiding Officer at any hearing.

SECTION 7. DEFAULT

1. Failure to appear. If an appellant fails to appear at a hearing, the appellant may be deemed by the Presiding Officer to have abandoned the appeal. The Presiding Officer shall immediately notify the appellant in writing of the finding of default. If within 15 calendar days after the issuance of the notice of default the appellant submits information that demonstrates, in the judgment of the Presiding Officer, that the appellant had good cause for failing to appear, the appeal will be reinstated. If the appellant does not submit such information to the Presiding Officer within the timeframe herein, the decision of the Executive Director will become final.

2. Hearing in the absence of the appellant. A hearing may be held in the absence of the appellant when the Presiding Officer chooses to proceed with the hearing as an alternative to a default.

SECTION 8. EVIDENCE

1. Admissibility. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs.

2. Testimony. Witnesses may provide testimony orally before the Presiding Officer or in-person by deposition, by video, or by a sworn written statement. Parties must ensure that witnesses who provide sworn written statements or testimony are available for cross-examination at the hearing, although the cross-examination of a witnesses may, at the request of a party, take place at a later date.

3. Irrelevant or repetitious evidence. Evidence that is irrelevant or unduly repetitive may be excluded.

4. Weight of evidence. The fact that evidence is admitted shall not limit the authority of the Presiding Officer to determine the weight to be given the evidence.

5. Hearsay. Hearsay evidence shall not be excluded simply because of its hearsay nature. The Presiding Officer will, in accordance with law, determine the weight to be given to hearsay evidence.

6. Rules of privilege. Rules of privilege as provided in the Maine Rules of Evidence, Article 5, shall be observed.

7. Stipulation of facts. When all parties stipulate to a fact, the Presiding Officer may make a finding of fact on the basis of the stipulation. Signed statements or on-the-record oral statements by parties are sufficient as stipulations.

8. Official notice of facts. The Presiding Officer may take official notice of a fact upon his or her own initiative or at the request of a party. Official notice may be taken of any fact of which judicial notice could be taken, and in addition, of any general or technical matter within the specialized experience or knowledge of the Presiding Officer, and of any statutes, rules and non-confidential public records. The Presiding Officer will notify the parties when official notice is taken and shall afford the parties an opportunity to contest the substance or materiality of the material noticed.

SECTION 9. SUBPOENAS

1. Request for subpoenas. Any party may request the issuance of a subpoena by presenting the request to the Presiding Officer. The request must contain:

A. The name and address of the party requesting the subpoena; and

B. The name and address of the person to be subpoenaed, or other place where the person to be subpoenaed may be found; and

C. A brief statement why the testimony or evidence of the person to be subpoenaed is relevant to an issue of fact in the appeal.

2. Issuance on approval. If the Presiding Officer determines that the request pertains to testimony or evidence relevant to an issue of fact in the appeal, the Presiding Officer must submit the subpoena for approval by the Attorney General or a Deputy Attorney General who is not involved in the appeal.

Requirements. A subpoena shall comply with the requirements of 5 M.R.S. §9060.

SECTION 10. HEARINGS RECORDED

1. All hearings will be recorded in a form susceptible for transcription.

SECTION 11. DISMISSAL OF APPEAL

1. At any time before receipt of notice of the Presiding Officer’s recommended decision, the parties may enter into an agreement as to resolution of the issues subject to the appeal. If they reach such an agreement, they shall file with the Presiding Officer a stipulation of dismissal that outlines the agreement reached. Upon receipt, the Presiding Officer shall recommend dismissal to the Commission.

2. At any time before receipt of notice of the Presiding Officer’s recommended decision, the appellant may withdraw the appeal by written notice to the Presiding Officer. Upon receipt of notice withdrawal of the appeal, the Presiding Officer shall recommend dismissal of the appeal.

3. The Commission must dismiss the appeal if the Presiding Officer recommends dismissal on the grounds set forth in subsection 1 or 2.

SECTION 12. RECOMMENDED DECISION OF THE PRESIDING OFFICER

1. Contents. Following the hearing or, if the appellant has chosen an Expedited Appeal following review of the documentary record, the Presiding Officer will prepare a recommended decision, which will include:

A. A clear statement of the subject(s) of the appeal and of the issue(s) that must be resolved to decide the appeal;

B. A listing of the date of hearing, place of hearing, and participants at the hearing or, if no hearing was held, the written agreement from the appellant attorney to proceed without a hearing;

C. A listing of all evidence admitted and upon which the recommended final decision is based;

D. Findings of fact, which must be sufficient to apprise the parties of the basis for the recommended decision;

E. A clear statement of result resolving all issues under consideration;

F. A clear explanation of the reasoning underlying the result, including references to applicable law, procedures, and rules.

2. Comments, modification, and delivery to the Commission

A. The Presiding Officer will send a copy of the recommended decision to each of the parties for comment. A may submit comments regarding the recommended decision, which must be in writing and must be filed with the Presiding Officer within 10 days of receipt of the Presiding Officer’s recommended decision.

B. The Presiding Officer may, but is not required to, modify the recommended decision in response to the parties' comments. If in the judgment of the Presiding Officer the previously issued recommended decision should be substantially modified, the Presiding Officer will send the recommended decision as modified to the parties for further comment, as provided in subparagraph A.

C. The Presiding Officer will deliver copies of the recommended decision, as originally prepared and as modified, to the Commission. The Presiding Officer will deliver the written comments made by the parties with the recommended decision. When the recommended decision is not modified, the Presiding Officer will also deliver to the Commission its written response to the parties' written comments.

SECTION 13. ACTION BY THE COMMISSION

1. Commission Consideration. A quorum of the Commission will consider the Presiding Officer’s recommended decision on a timely basis.

2. Recommended decision and record. In advance of consideration, a copy of the Presiding Officer’s recommended decision must be sent to each Commissioner, with parties' comments as provided in Section 12.

3. Presiding Officer. If requested by the Commission, the Presiding Officer may be present to assist the Commission. If the Presiding Officer appointed by the Commission Chair is a Commissioner, that Commissioner shall recuse from consideration of or voting on Commission action on the recommended decision.

4. Action after consideration. After considering the recommended final decision, a quorum of the Commission shall:

A. Adopt the Presiding Officer’s recommended decision as delivered;

B. Modify the Presiding Officer’s recommended decision;

C. Send the matter back to the Presiding Officer for the taking of further evidence or for additional consideration of issues, as set forth by the Commission; or

D. Reject the Presiding Officer’s recommended decision in whole or in part and decide the appeal itself on the basis of the existing record.

5. A decision as adopted by the Commission pursuant to this Section is the final administrative decision in the appeal.

6. If the vote of the Commission to accept or not accept the Presiding Officer’s recommended decision is evenly divided, the decision of the Executive Director is affirmed.

History

• STATUTORY AUTHORITY: 4 M.R.S. §§ 1804(3)(J) and (4)(D)
• EFFECTIVE DATE: August 21, 2011 – filing 2011-282
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 301 Fee Schedule and Administrative Procedures for Payment of Commission Assigned Counsel

Code Me. R. 94-649 Ch. 301 Fee Schedule and Administrative Procedures for Payment of Counsel {#sec-94-649-ch.-301 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 301}

Summary: This Chapter establishes a fee schedule and administrative procedures for payment of Counsel. The Chapter sets a standard hourly rate and fee amounts that trigger presumptive review for specific case types. The Chapter also establishes rules for the payment of mileage and other expenses that are eligible for reimbursement by the Commission. Finally, this Chapter requires that all vouchers for attorney fees and reimbursable expenses must be submitted using the PDS electronic case management system.

SECTION 1. DEFINITIONS.

PDS or Commission. “PDS” or “Commission” means the Commissioners of the Maine Commission on Public Defense Services.

Executive Director. “Executive Director” means the Executive Director of PDS or the Executive Director’s decision-making designee.

Counsel. “Counsel” means a private attorney designated eligible by the Commission to be assigned to provide a particular service or to represent a particular client in a particular matter, and assigned by PDS or a court to provide that service or represent a client.

Employed Counsel."Employed Counsel" means an attorney employed by the Commission to provide legal services directly to persons who are eligible to receive indigent legal services in civil proceedings.

Public Defender."Public Defender" means an attorney employed by the Commission to provide legal services directly to persons who are eligible to receive indigent legal services in criminal and juvenile proceedings.

Home Court. “Home Court” means the physical location of the court in closest proximity to Counsel’s office or reasonably accessible private meeting space as contemplated by 94-649 C.M.R. ch. 2 § 3.

Commission Liaison. “Commission Liaison” means the attorney who performs services for clients as part of the specialty court team but who has not otherwise been appointed to represent a specific client in a specific docket.

Interim Voucher. “Interim Voucher” means any voucher submitted in a case before Counsel’s professional responsibility in a matter ends.

Particular Client Assignment. “Particular Client Assignment” means an assignment of Counsel to represent a particular client in a particular matter either by PDS or a court under Rule 44 of the Maine Rules of Unified Criminal Procedure or Rule 88 of the Maine Rules of Civil Procedure. For the purpose of this Rule a “particular matter” is a matter described by a particular docket number in a court.

Days. “Days” means calendar days.

Paralegal. “Paralegal” means a person, qualified by education, training, or work experience who is employed or retained by a lawyer, law office, corporation, governmental agency, or other entity and who performs specifically delegated substantive legal work for which a lawyer is responsible.

Paralegal Services. “Paralegal Services” means specifically delegated substantive legal work for which a lawyer is responsible.

Secretary. “Secretary” means a person who is employed or retained by a lawyer, law office, corporation, government agency, or other entity to provide Secretarial Services.

Secretarial Services. “Secretarial Services” means staff support services other than Paralegal Services.

Resource Counsel. “Resource Counsel” means counsel designated eligible to serve as Resource Counsel pursuant to Chapter 3 of the Commission Rules.

Final Voucher. “Final Voucher” means and includes the voucher required by Section 6 of this Chapter to be submitted within 90 days of a terminal case event.

Supplemental Voucher. "Supplemental Voucher” means any voucher submitted for work performed by Counsel on behalf of their indigent client after the terminal case event has occurred.

Case. “Case” means a Particular Client Assignment as defined by this Chapter.

SECTION 2. HOURLY RATE OF PAYMENT.

Effective March 1, 2023:

A rate of One Hundred Fifty Dollars ($150.00) per hour is authorized for time spent by Counsel, and billed using PDS electronic case management system, on an assigned case on or after March 1, 2023. A rate of Eighty Dollars ($80.00) per hour remains authorized for time spent on an assigned case between July 1, 2021 and February 28, 2023. A rate of Sixty Dollars ($60.00) per hour remains authorized for time spent on an assigned case between July 1, 2015 and June 30, 2021. A rate of Fifty-five Dollars ($55.00) per hour remains authorized for time spent on an assigned case between July 1, 2014 and June 30, 2015. A rate of Fifty Dollars ($50.00) per hour remains authorized for time spent on an assigned case between the inception of the Commission and June 30, 2014.

SECTION 3. EXPENSES.

Routine Office Expenses. Routine office expenses will not be paid by PDS. Routine office expenses include but are not limited to: postage other than overnight and express postage, regular telephone, cell telephone, fax, office overhead, utilities, the first 100 pages of any one print or copy job, local phone calls, parking (except as stated below), and office supplies. Paralegal Services and Secretarial Services may be compensated in accordance with Chapter 301-B.

Itemized Non-Routine Expenses. Itemized non-routine expenses, such as discovery from the State or other agency, long distance calls (only if billed for long distance calls by your phone carrier), overnight and express postage, collect phone calls, copy costs for print or copy jobs in excess of 100 pages, beginning with the 101^st page, printing/copying/binding of legal appeal brief(s), relevant in-state mileage (as outlined below), tolls (as outlined below), and fees paid to third parties, may be paid by PDS after review. Necessary parking fees associated with multi-day trials and hearings will be reimbursed. Parking tickets, fines, and/or fees for other violations will not be reimbursed.

Travel Reimbursement. Mileage reimbursement shall be made at the State rate applicable to confidential state employees on the date of the travel. Mileage reimbursement will be paid for travel to and from courts other than Counsel’s home court. Mileage reimbursement will not be paid for travel to and from a Counsel’s home court. Tolls will be reimbursed. All out-of-state travel, overnight travel, and any other expense associated with such travel including but not limited to airfare, lodging, and food, must be approved by PDS in writing prior to incurring the expense. Reimbursement will be subject to the State’s per diem maximum rate policies with respect to the reimbursement of any expense must be approved by PDS in writing prior to incurring the expense. Use of the telephone, video equipment, and email in lieu of travel is encouraged as appropriate.

Counsel will not be compensated for travel time or travel-related expenses incurred by Paralegals or Secretaries unless Counsel obtains prior written authorization from the Executive Director.

Itemization of Claims. Claims for all expenses must be itemized and include documentation. All expense documentation must be attached to the voucher used to seek reimbursement for the expense claimed. Claims for mileage shall be itemized and include the start and end points for the travel in question.

Discovery Materials. PDS will reimburse only for one set of discovery materials per assignment. If Counsel is permitted to withdraw, appropriate copies of discovery materials must be forwarded to new counsel within one week of notice of new counsel’s assignment. Counsel may retain a copy of a file transferred to new counsel, or to a client. Counsel shall perform any scanning or make any copies necessary to retain a copy of the file at Counsel’s expense. The client owns the file. The original file shall be tendered to new counsel, or to the client, as directed.

Expert and Investigator Expenses. Other non-routine expenses for payment to third parties, ( e.g. , investigators, interpreters, medical and psychological experts, testing, depositions, etc.) shall be approved in advance by PDS. Funds for third-party services will be provided by PDS only upon written request and a sufficient demonstration of reasonableness, relevancy, and need in accordance with PDS rules and procedures governing requests for funds for experts and investigators. See Chapter 302 Procedures Regarding Funds for Experts and Investigators.

Witness, Subpoena, and Service Fees. Witness, subpoena, and service fees will be reimbursed only pursuant to the Maine Rules of Court. Counsel should not advance these costs. These costs shall not be included as a voucher expense without prior consent from the Executive Director. Fees for service of process by persons other than the sheriff shall not exceed those allowed by 30-A M.R.S. §421. The same procedure shall be followed in civil cases.

SECTION 4. PRESUMPTIVE REVIEW.

Vouchers submitted for amounts in excess of the applicable trigger for presumptive review will be considered for payment after review by the Executive Director or designee. Vouchers submitted in excess of the trigger for presumptive review must be accompanied by an explanation of the time spent on the matter. The explanation shall be set forth in the notes section of a voucher or invoice.

Trial Court Criminal Fees

1. Triggers for presumptive review, excluding any itemized expenses, are set in accordance with this subsection. Counsel must provide PDS with written justification for any voucher that exceeds the trigger limit. 1. Murder. All murder cases shall trigger presumptive review. 2. Class A. $9,400 3. Class B and C (against person). $7,500 4. Class B and C (against property). $4,700 5. Class D and E. $4,700 6. [Repealed] 7. Post-Conviction Review. $5,600 8. Probation Revocation. $2,800 9. Miscellaneous (i.e., witness representation on 5^th Amendment grounds, etc.). $1,900 10. Juvenile. $2,800 11. Bindover. applicable criminal class trigger
2. In cases involving multiple counts against a single defendant, the triggering fee shall be that which applies to the count assigned with the highest class. In cases where a defendant is charged with multiple unrelated offenses, Counsel shall coordinate and consolidate services as much as possible.
3. Criminal and juvenile cases will include all proceedings through a terminal case event as defined in Section 6, below. Any subsequent proceedings, such as probation revocations, will require new application and appointment.

D. [Repealed]

E. Upon written request to PDS, a second Counsel may be assigned in a murder or other complicated case, to provide for mentorship, or for other good cause at the discretion of the Executive Director:

• 1. the duties of each Counsel must be clearly and specifically defined, and Counsel must avoid unnecessary duplication of effort; 2. each Counsel must submit a voucher to PDS. Counsel should coordinate the submission of vouchers so that they can be reviewed together.

District Court Child Protection

1. Triggering fees, excluding any itemized expenses, for Counsel in child protective cases are: 1. Child protective cases. $10,200 2. [Repealed]
2. [Repealed]

Other District Court Civil

1. Triggering fees in District Court civil actions, excluding any itemized expenses, are set in accordance with this subsection. Counsel must provide PDS with written justification for any voucher that exceeds the triggering fee. 1. Application for Involuntary Commitment. $1,900 2. Petition for Emancipation. $2,800 3. Petition for Modified Release Treatment. $1,900 4. Petition for Release or Discharge. $1,900

Law Court

A. [Repealed]

B. [Repealed]

Appellate: $3,750

SECTION 5. MINIMUM FEES.

Counsel may bill a minimum fee of 3 hours for appearances as Lawyer of the Day, or Commission Liaison in specialty or diversionary courts or programs. A single minimum fee may be charged for each appearance at which the Counsel serves. If Counsel serves as Lawyer of the Day for a morning session that continues into the afternoon, that will be one appearance. If Counsel serves as Lawyer for the Day for a morning session and then a subsequent afternoon session with a second appearance time and list, that will be two appearances. Vouchers seeking the minimum fee must show the actual time expended and the size of the minimum fee adjustment rather than simply stating that the minimum fee is claimed. In addition to previously scheduled representation at initial appearance sessions, Lawyer of the Day representation includes representation of otherwise unrepresented parties at the specific request of the court on a matter that concludes the same day. Only a single minimum fee may be charged per appearance regardless of the number of clients consulted at the request of the court.

SECTION 6. ADMINISTRATION.

Timing

Vouchers for payment of counsel fees and expenses associated with a particular client assignment shall be submitted within 90 (ninety) calendar days of a terminal case event. Lawyer of the Day, specialty courts, Resource Counsel, and all other services rendered on behalf of the Commission and not associated with a particular client assignment shall be billed within 90 days of the service provided.

The period for submitting a voucher established by subsection (1)(A) of this section shall run from the date that the terminal case event is docketed. Services are rendered on Lawyer of the Day assignments on the date Counsel appears in court and serves as Lawyer of the Day. Services in specialty courts as an Commission Liaison, Resource Counsel, or as part of any other PDS-sponsored program are rendered on the date the individual tasks were performed as indicated by the date associated with the time entry recorded to account for that time.

Vouchers not submitted within 90 days of a terminal case event or the timeframe otherwise established by this Chapter shall be reduced according to the schedule established by subsection (3)(C) of this section below, except on a showing by Counsel that a voucher could not have been timely submitted for reasons outside the actual or constructive control of Counsel. If an exception decision is rendered by the Executive Director’s decision-making designee, Counsel may submit an appeal in writing to the Executive Director on this issue only, within 10 days of the designee’s decision. A decision on an exception under this section is final agency action.

Counsel may submit interim vouchers not more often than once every calendar month per case.

Cases must be entered in the PDS case management system within seven days upon receipt of the Notice of Appointment. If Counsel has been informed that they have been assigned to a case but have not received the Notice of Appointment, Counsel shall exercise due diligence in obtaining a copy of the Notice as soon as possible.

Terminal Case Events

A terminal case event is the order, decision or judgment that signifies the final resolution of a particular client assignment such that substantive appearances before the court are no longer necessary to resolve the issues raised by the complaint, indictment, petition, appeal, or other initial pleading that provided the impetus of the case. There can be only one terminal case event in a particular client assignment. Terminal case events exclusively include:

The withdrawal of Counsel;

The entry of dismissal of all charges or petitions; or

Judgment or other final order or decision of the court.

[Repealed]

Reduction for Untimely Voucher Submission

The total reduction applied to vouchers submitted after the 90-day deadline is calculated by multiplying the total voucher amount by the applicable percentage according to the schedule established by subsection (3)(C) of this section.

The days elapsed since the relevant terminal case event are calculated in the same manner as in determining compliance with the 90-day deadline.

Reduction Schedule:

Days After Terminal Case Event

Reduction

91 – 104

10%

105 – 150

25%

151 – 180

50%

181 or more

100%

Any reduction for the untimely submission of a voucher may only be applied after Counsel is provided with an opportunity to request an exception pursuant to subsection (1)(C) of this section.

Voucher Submission

All vouchers must be submitted using the PDS electronic case management system and comply with all instructions for use of the system.

All time on vouchers shall be detailed and accounted for in .10 of an hour increments rounding up to the nearest .10 of an hour. The purpose of each time entry must be specifically stated by using the most relevant time entry category and providing a reasonably descriptive comment/note for each time entry.

Unless otherwise stated in this Chapter, Counsel may only record and seek payment for actual time spent working on Counsel’s appointed or assigned cases using the PDS electronic case management system. Counsel may not record a minimum amount for any time entries notwithstanding any previous policy or practice of the Commission.

All expenses claimed for reimbursement must be fully itemized on the voucher. Copies of receipts for payments to third parties shall be retained and appended to the voucher.

If a particular client assignment requires additional, supplemental work be performed by Counsel after the terminal case event occurs, Counsel may submit a supplemental voucher for the work performed after the final voucher is submitted. All time included on a supplemental voucher must be billed within a reasonable period of time after the task was completed. Notwithstanding any other provision of this Chapter, any time included on a supplemental voucher that is not submitted within a reasonable period of time is not payable except on a showing by Counsel that the voucher could not have been timely submitted for reasons outside the actual or constructive control of Counsel.

Time for work performed by Counsel before the terminal case event occurred may not be included on a supplemental voucher.

Time for work performed by Counsel after the terminal case event occurred may be included on a final voucher. If a final voucher is submitted greater than 90 days after a terminal case event, the entire voucher will be reduced according to the reduction schedule established by this Chapter including any time for work performed after the terminal case occurred.

Payments & Reimbursement of Expenses for Attending Training

1. Payments to attend and reimbursement of expenses incurred incidental to attending trainings are governed by Chapter 7-C.
2. Vouchers submitted in accordance with Chapter 7-C shall be submitted within 90 calendar days of attending the training.
3. Notwithstanding any other provision of this Chapter or other Commission rules, untimely vouchers for payment or reimbursement of expenses governed by Chapter 7-C will not be paid.

SECTION 7. RESOURCE COUNSEL.

Resource Counsel may bill pursuant to Section 6(4), above, for any billable tasks outlined in subsection 2 and subject to the limitations in subsection 3 of this section.

Billable Tasks

1. Meeting with Counsel, Employed Counsel, and Public Defenders upon the written request of the Executive Director.
2. Meetings and other communications with Counsel, Employed Counsel, and Public Defenders about the practice of law or ethical or legal issues related to assigned cases.
3. Assisting Counsel, Employed Counsel, and Public Defenders with drafting documents and with litigation preparation for assigned cases.
4. Meetings and other communications with members of the judiciary or prosecution about matters pertaining to indigent representation upon the written request of the Executive Director.
5. Preparing and presenting trainings at the request of the Executive Director or Training & Supervision staff.
6. In-court observation of Counsel if requested by the Executive Director.
7. Responding to calls, emails, and/or webform submissions from individuals who contact PDS through the PDS hotline and/or website. This includes: 1. Communication with the person who called; 2. Communication with others to address the individual’s matter; and 3. Limited scope representation undertaken to resolve urgent issues for indigent persons concerning matters for which the person would be entitled to appointment of counsel.
8. Other tasks as deemed appropriate by the Executive Director and with prior written authorization of the Executive Director.

Limitations

1. Any services rendered as Resource Counsel must be strictly limited to matters relating to assigned—not retained or pro bono—cases.
2. If Resource Counsel serves as co-counsel on an assigned case, then Resource Counsel must enter the case in the Commission’s electronic case management system and bill for it as a typical case, not as Resource Counsel.
3. Prior to preparing a training at the Commission’s request, Resource Counsel must have prior written authorization from the Executive Director, which must include a cap on the maximum number of hours the Commission will pay Resource Counsel to prepare and present the training.
4. Resource Counsel must be licensed to practice law in Maine and eligible to accept PDS case assignments at all times while performing Resource Counsel duties. Resource Counsel will not be paid for work done unless Resource Counsel is licensed to practice law in Maine and eligible to accept PDS case assignments.
5. As a condition of the opportunity to serve as Resource Counsel, Resource Counsel must maintain detailed records of the services they perform and provide copies of those records to PDS upon request. At a minimum, those records must include: 1. The number of attorneys to whom Resource Counsel services are rendered; and 2. A running log of the number of hours Resource Counsel spends on: 1. Rendering general Resource Counsel services to attorneys; 2. Rendering client-specific services; and 3. Preparing and presenting trainings.

Resource Counsel will not be paid for billing more than 40 hours in one seven-day period.

Resource Counsel do not develop any property interest in the opportunity to serve in that role. There is no guarantee that PDS will provide any number of hours to Resource Counsel.

Resource Counsel may not incur any expenses of any type on behalf of PDS without prior written approval from the Executive Director.

Counsel may bill pursuant to Section 6(4), above, for time spent receiving the services of Resource Counsel.

SECTION 8. NON-PAYMENT BASED ON MISCONDUCT.

• • 1. If Counsel submits a voucher for work completed that, upon investigation, the Executive Director concludes violated any of the Maine Rules of Professional Conduct or Commission Rules, the voucher may be rejected—in whole or in part—and the Executive Director may deny payment for the same. Pursuant to 4 M.R.S. § 1804(3)(J), a decision of the Executive Director pursuant to this subsection constitutes final agency action.

History

• STATUTORY AUTHORITY: 4 M.R.S. §§ 1804(2)(F), (3)(B), (3)(F) and (4)(D); 4 M.R.S. § 1805(12).
• EFFECTIVE DATE: August 21, 2011 – filing 2011-283
• AMENDED: March 19, 2013 – filing 2013-062
• AMENDED: July 1, 2013 – filing 2013-150 (EMERGENCY)
• AMENDED: October 5, 2013 – filing 2013-228
• AMENDED: July 1, 2015 – filing 2015-121 (EMERGENCY)
• AMENDED: June 10, 2016 – filing 2016-092
• AMENDED: July 21, 2021 – filing 2021-149 (EMERGENCY)
• AMENDED: January 17, 2022 – filing 2022-007
• AMENDED: June 23, 2022 – filing 2022-100 (Final adoption, major substantive)
• AMENDED: February 24, 2023 – filing 2023-028 (Emergency adoption)
• AMENDED: September 1, 2023 – filing 2023-122 (Final adoption, major substantive)
• AMENDED: September 1, 2024 – filing 2024-204
• NONSUBSTANTIVE EDITS: September 3, 2024 (Addition of a statutory citation in Section 8, subsection 1 of the rule, as well as in the statutory authority/rule history section).
• APAO ACCESSIBILITY CHECK: July 24, 2025
• APAO ACCESSIBILITY CHECK: August 14, 2025
• AMENDED: August 17, 2025 – filing 2025-159
• AMENDED: NONSUBSTANTIVE CORRECTIONS (cross-reference update):
• AMENDED: April 2, 2026

Chapter 302 Procedures Regarding Funds for Experts and Investigators

Code Me. R. 94-649 Ch. 302 Procedures Regarding Funds for Experts and Investigators {#sec-94-649-ch.-302 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 302}

Summary: This Chapter establishes the procedures for attorneys to request funds for experts and investigators from the Commission and provides that the Executive Director shall make the determination to grant or deny the request. It also establishes the procedures for payment of expert and investigator services authorized in this Chapter.

SECTION 1. DEFINITIONS

1. Executive Director. "Executive Director" means the Executive Director of the Maine Commission on Public Defense Services or the Executive Director’s decision-making designee.

2. PDS or Commission. "PDS” or “Commission” means the Maine Commission on Public Defense Services.

3. Applicant. “Applicant” means the client on whose behalf an attorney submits an application for funds pursuant to this Chapter.

4. Attorney. “Attorney” means the lawyer for the Applicant.

5. Employed Counsel. "Employed Counsel" means an attorney employed by the commission to provide legal services directly to persons who are eligible to receive indigent legal services in civil proceedings.

6. "Public Defender" means an attorney employed by the commission to provide legal services directly to persons who are eligible to receive indigent legal services in criminal and juvenile proceedings.

SECTION 2. APPLICATION FOR FUNDS FOR EXPERT AND INVESTIGATIVE ASSISTANCE

Who may apply.

Any person who has been appointed or assigned counsel at PDS expense, or who is represented by an Employed Counsel or Public Defender; and

Any person who is entitled to representation at state expense under the United States Constitution or the Constitution or laws of Maine who is represented by retained counsel and who is found indigent by PDS.

2. Application directed to the Executive Director. An application for funds to obtain necessary expert or investigative assistance or both shall be directed to the Executive Director.

3. Form and contents of application. The application shall:

Be completed on a form designated by the Executive Director;

Include the case caption and the docket number;

Set forth the date on which the Applicant was found indigent or, if the Applicant has not been found indigent, set forth the basis on which the Applicant claims to be without sufficient funds. For persons applying pursuant to Section 2(1)(B), the application shall be supported by an affidavit demonstrating indigency. Said affidavit shall be on the same form used to determine financial eligibility for appointment of counsel;

Describe the nature of the proceeding for which assistance is sought, and in proceedings with respect to adult or juvenile crimes, specifically identify the name and class or statutory cite of the most serious charge, or of the charge which is the basis for the request for funds;

Set forth a clear and concise statement of the reasons why the assistance is necessary for adequate presentation of the Applicant's claim or defense;

Set forth a clear and concise statement as to the work that will be done by the expert and/or investigator; and

Itemize the total amount of funds being requested, the vendor’s rate, and any anticipated expenses that may be paid out of the funds.

4. Parameters for requests.

Requests for funds must be submitted before the expert or investigator begins work on the case.

The request for funds should encompass all anticipated funds that will be needed for the expert or investigator’s work to be completed.

1. For interpreters and translators, Attorneys should estimate the total cost for the services for the life of the case, as opposed to separate requests for each instance in which the interpreter or translator will perform work.

2. When it is probable that an expert or investigator will be needed for a court appearance, the request for funds should include the total anticipated costs needed to pay for the expert or investigator’s services through disposition of the case.

3. Electronic filing permitted. The application must be filed with PDS according to the procedure directed by the Executive Director. Any procedure developed by the Executive Director shall be designed to protect privileged information from disclosure, and to promote the efficient handling of funds requests by Commission staff.

A. Repealed.

B. Repealed.

C. Repealed.

SECTION 3. DETERMINATION BY THE EXECUTIVE DIRECTOR

The Executive Director shall review the application and the grounds therefore and, in the Executive Director’s sole discretion, shall either grant the funds applied for, in whole or in part, or deny the application. When granting an application in whole or in part, the Executive Director may condition the expenditure of funds as set forth in PDS Rule Chapter 301 and other PDS procedures. The determination of the Executive Director shall be in writing and may be communicated to the Attorney by electronic means.

SECTION 4. PROCEDURE AFTER APPLICATION GRANTED

After an application for funds is granted, the attorney must:

Ensure the expert or investigator has a State of Maine Vendor Code, or is aware of the process for applying for one;

Provide the expert or investigator a copy of the funds authorization;

Inform the expert or investigator that PDS is only guaranteeing payment for services up to the amount authorized at the rate authorized; and

Inform the expert or investigator that:

1. Any travel expenses incurred must be within the applicable rates set by the Government Service Administration;
2. Mileage incurred in Maine is reimbursable up to the rate set by the State of Maine Office of State Controller;
3. PDS will not reimburse for travel insurance, cancellation protection, or the like; and
4. Absent extenuating circumstances, PDS will not reimburse for first class airfare or seat upgrades.

Upon receipt of an invoice for services for which the expenditure of funds has previously been authorized, the Attorney shall forward the invoice to PDS for processing and payment, together with the relevant authorization.

Attorneys shall comply with all procedures established by the Executive Director. The Attorney must state that the services were satisfactory and that all applicable reports and other information have been received. The Attorney must review the invoice to verify that it conforms to PDS requirements and that the appropriate rates for services and mileage were billed. The Attorney is not required by the Commission to advance funds to investigators or other service providers, subject to any professional conduct requirements. The Attorney should ensure that the expert or investigator includes a State of Maine Vendor Code number on each invoice.

Failure of the Attorney to submit an invoice for expert or investigative services to PDS within 10 calendar days of receiving a complete and accurate invoice from the expert or investigator may result in non-payment of the Attorney’s vouchers until the Attorney submits the invoice to PDS.

SECTION 5. Transition

Repealed.

History

• STATUTORY AUTHORITY: 4 M.R.S. §§ 1804(2)(G), (3)(A) and (4)(D)
• EFFECTIVE DATE: August 21, 2011 – filing 2011-284
• AMENDED: August 1, 2021 – filing 2021-150
• AMENDED: September 1, 2024 – filing 2024-207
• APAO ACCESSIBILITY CHECK (Word): March 19, 2026
• AMENDED: March 24, 2026 – filing 2026-067

Chapter 303 Procedures Regarding Legal Research Access and Materials

Code Me. R. 94-649 Ch. 303 Procedures Regarding Legal Research Access and Materials {#sec-94-649-ch.-303 omnilex-key=us-me-regs-official--dept-independent-agencies--94-649 Ch. 303}

Summary: This Chapter establishes the procedures for attorneys to request access to legal research services and to request PDS purchase of or reimbursement for the purchase of legal research materials.

SECTION 1. DEFINITIONS

1. Executive Director. "Executive Director" means the Executive Director of the Maine Commission on Public Defense Services or the Executive Director’s decision-making designee.

2. PDS or Commission. "PDS” or “Commission” means the Maine Commission on Public Defense Services.

3. Legal Research Services. “Legal Research Services” means a subscription based online provider of access to primary and/or secondary legal research materials. For the purpose of this Chapter, “Legal Research Services” are limited to the provider(s), if any, with which PDS has contracted to provide those materials.

4. Legal Research Materials. “Legal Research Materials” means other written or electronic materials an Eligible Attorney deems necessary to support the representation of a consumer of indigent legal services.

5. Eligible Attorney. For the purpose of this Chapter, “Eligible Attorney” means a Maine licensed attorney in good standing with the Board of Overseers of the Bar, who is assigned to represent a consumer of indigent legal services in a matter approved by PDS.

6. Consumer of Indigent Legal Services. “Consumer of Indigent Legal Services” means a person entitled to representation at PDS expense under the United States Constitution or the Constitution or laws of Maine and who has been found indigent or partially indigent by a state court or by PDS.

SECTION 2. ACCESS TO LEGAL RESEARCH SERVICES

Any Eligible Attorney may apply to PDS for access to legal research services. If PDS grants that Eligible Attorney access to legal research services, those services shall be used exclusively for the benefit of Consumers of Indigent Legal Services.

Access to legal research services may be granted from month-to-month and shall be limited to those Eligible Attorneys who bear present professional responsibility for one or more matters on behalf of at least one Consumer of Indigent Legal Services.

Eligible Attorneys shall not access PDS contracted legal research services when an attorney does not bear present professional responsibility for one or more matters on behalf of at least one Consumer of Indigent Legal Services.

Eligible Attorneys who have received access to PDS contracted legal research services shall inform PDS if they no longer bear professional responsibility for one or more matters on behalf of at least one Consumer of Indigent Legal Services within seven calendar days of the conclusion of the attorney’s representation of their last Consumer of Indigent Legal Services. At that time, PDS will terminate access to its legal research provider for that attorney.

As a condition of use of PDS contracted legal research services, each Eligible Attorney agrees to log the client for whom that attorney accesses that service in the manner prescribed by PDS, including through the service itself, if so directed.

Eligible Attorneys who wish to be granted access to PDS contracted legal research services shall apply in the manner directed by the Executive Director, which may include a prescribed form and may also include a directive to apply through the PDS secure website.

SECTION 3. APPLICATION FOR PDS PURCHASE OF OR REIMBURSEMENT FOR THE PURCHASE OF LEGAL RESEARCH MATERIALS

Any Eligible Attorney may apply to PDS in the manner prescribed by the Executive Director for permission to purchase legal research materials that attorney deems necessary to support the representation of a consumer of indigent legal services.

The Executive Director may approve the PDS purchase of or reimbursement for the purchase of legal research materials by an Eligible Attorney if the Executive Director finds that the proposed purchase is reasonably necessary to support the representation of a Consumer of Indigent Legal Services.

The application for PDS purchase of or reimbursement for the purchase of legal research materials shall be made in writing in the manner directed by the Executive Director, which may include a prescribed form and may also include a directive to apply through the PDS secure website.

The Executive Director shall review the application and the grounds therefore and, in the Executive Director’s sole discretion, shall either grant the funds applied for, in whole or in part, or deny the application. When granting an application in whole or in part, the Executive Director may condition the expenditure of funds as set forth in PDS Chapter 301, and other PDS procedures. The determination of the Executive Director shall be in writing and may be communicated to the applicant by electronic means.

If the Executive Director approves the application, PDS will—when practical—purchase the legal research materials on behalf of the Eligible Attorney and notify the attorney of the same. If it is impossible or impractical for PDS to purchase the approved legal research materials, only then will the Executive Director grant permission for the Eligible Attorney to purchase the materials and be reimbursed by PDS.

Eligible Attorneys who wish to be reimbursed for the purchase of legal research materials for which permission has been granted by the Executive Director pursuant to Section 3(5) shall seek reimbursement by providing the following documents in .pdf form:

The request upon which the Executive Director acted;

The decision of the Executive Director; and

Either payment confirmation from the vendor specifying the product purchased and the amount paid, or an invoice and proof of payment.

Retroactive requests for reimbursement shall not be granted except in extraordinary circumstances on a showing that for reasons outside of that attorney’s control, a timely request could not be made.

Purchases made prior to the effective date of this rule shall not be subject to reimbursement.

History

• STATUTORY AUTHORITY: 4 M.R.S. §§ 1804(2)(G), (3)(A) and (4)(D)
• EFFECTIVE DATE: November 12, 2022 – filing 2022-222
• APAO ACCESSIBILITY CHECK: February 5, 2026 (no issues detected)
• AMENDED: February 10, 2026 – filing 2026-043

94-655 Interagency Review Panel

Chapter 1 Bylaws, Administration, and the Energy Infrastructure Proposal and Review Process

Code Me. R. 94-655 Ch. 1 Bylaws, Administration, and the Energy Infrastructure Proposal and Review Process {#sec-94-655-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--94-655 Ch. 1}

Energy Infrastructure

Interagency Review Panel

94-655

Bylaws, Administration, and the Energy Infrastructure Proposal and Review Process

Adopted by Interagency Review Panel, May 7, 2012 – effective June 24, 2012

SECTION I: BYLAWS AND ADMINISTRATION

A. ADMINISTRATIVE FUNCTIONS

The Chair of the Energy Infrastructure Interagency Review Panel (the “Panel”) is authorized to carry out all administrative functions of the Panel, including execution of instruments, documents and agreements, appearing in or instituting legal proceedings, managing funds, making determinations pertaining to confidentiality of records, carrying out any resolution of the members or agreement of the Panel and employing experts, officers, agents and other personnel and determining their qualifications, duties and compensation. Compensation of Panel members and Panel consultants will be at the direction of the Panel.

B. BYLAWS OF THE MEMBERS OF THE PANEL

1. Name. The name of the Panel is the Interagency Review Panel.

2. Purpose. The Panel was created by the Maine Legislature for the purposes set forth in An Act Regarding Energy Infrastructure Development, Chapter 655 of the 2010 Public Laws (the "Act").

3. Members of the Panel. The members of the Panel shall be appointed and compensated and shall serve such terms as the Act may specify.

4. Quorum of and action by the members. If four members are present at the beginning of any meeting, then a quorum exists for the transaction of business. If any member(s) departs from a meeting at which a quorum was originally present, a quorum continues to exist. The affirmative vote of the greater of a majority of those present and voting or four members is necessary for any action taken by the members, except that (1) in the case of an action to enter into Executive Session, the affirmative vote of at least 3/5 of those present and voting is required, and (2) in the case of an action to approve the minutes of a prior meeting, the affirmative vote of a majority of those present and voting who were present at the prior meeting is sufficient. For all actions specific to one or more designated statutory corridors, as that term is defined in the Act, the Commissioner of Transportation or the Commissioner’s designee, the Executive Director of the Maine Turnpike Authority or the Executive Director’s designee, and the Executive Director of the Loring Development Authority or the Executive Director’s designee, shall be voting members only with respect to actions affecting the corridors for which they have designated responsibility.

5. Officers of the members. The Chair of the Panel shall be the Director of the Office of Energy Independence and Security (OEIS). The members shall elect from among themselves a Vice Chair who shall serve as secretary, and such other officers as it may from time to time determine. The Vice Chair or other offices other than the Chair shall have a term of one year and shall serve until the election of their successors. The Chair shall preside over meetings of the members. In the absence or incapacity of the Chair or if for any reason there is no Chair, then the Vice Chair shall perform the duties of the Chair. In addition, the Vice Chair, as Secretary, shall sign the minutes of all meetings of the members, after such minutes have been approved by the members.

6. Regular meetings. The members will ordinarily meet on the first Monday of each month. The regular meeting schedule will be available on the OEIS website. In the absence of business, the Chair may cancel a regular monthly meeting by notice to the members.

7. Special meetings. Special meetings of the members may be called by either the Chair or any three members.

8. Location of Meetings. Meetings shall ordinarily be held in Augusta, unless another location is designated by the Chair. The location of the meeting shall be included in the public notice of the meeting.

9. Notice of Meetings. Any meeting held on the first Monday of the month shall be deemed a regular meeting for which no advance notice is required other than as required by law. Meetings held on any other day shall be deemed special meetings for which notice must be delivered to the members at least two (2) business days prior to the date of the meeting, by mail, telephone, or e-mail and to the public by posting on the OEIS website and by mail, telephone or email to those interested parties who have requested notice.

10. Order of Business. The Chair shall determine the Order of Business of each meeting.

11. Open Meetings. Except for matters which may be the subject of executive session as provided in 1 M.R.S.A. §405, all meetings, public proceedings and deliberative sessions of the Commission shall be open to the public. The Chair may establish time for public comment and may impose limits on public commenters as necessary to promote the effective operation of the Panel.

12. Records. All records of the Panel and its actions shall be kept by the Governor’s Office of Energy Independence and Security and made available to the public for inspection upon reasonable request except to the extent such records are protected from disclosure by 1 M.R.S.A. §402(3) or 35-A M.R.S.A. §122 pursuant to Section II (B)(3) of this rule.

13. Subcommittees. The Chair may appoint such subcommittees as may be necessary or desirable for the efficient conduct of the Panel’s business and negotiations, provided that no action of a subcommittee is final or binding without the approval of the Panel at a public meeting. The subcommittee shall report a summary of any meetings to the Panel as a whole at its next meeting and included in the Minutes.

14. Meetings recorded. At the direction of the Chair, or upon the request of a Proposer or another party, a meeting of the Panel may be recorded. If the recording is at the request of a Proposer or another party, the requesting party will be responsible for the reasonable costs of making the recording and providing the recording to the Panel for its records.

15. Decision. The Panel shall issue a written decision on each proposal for use of a statutory corridor. The written decision shall make findings of fact and conclusions of law with respect to the applicable statutory criteria. An aggrieved person as determined by the Panel may request reconsideration based on new evidence that could not have been presented prior to the decision, a mistake of law or other grounds. The decision of the Panel on whether to reconsider a decision is final.

C. CODE OF ETHICS

The members of the Panel recognize that either the existence or the perception of a Conflict of Interest can be harmful. Therefore, the members of the Panel adopt this Code of Ethics regarding Conflict of Interest.

1. Ineligible for any benefits from the Panel

No member of the Panel or contractor or employee of the Panel and/or such person’s immediate relations may benefit from an application for use of a statutory corridor, other than as a member of the public or in connection with the Panel member’s public sector employment.

No firm, partnership, corporation or other entity, including a sole proprietorship may file or object to an application with the Panel if a member of the board or contractor or employee of the Panel, or such person’s immediate relations, is materially involved in management of that entity or has an ownership position in excess of 0.1%. This provision does not apply to the Department of Transportation, Maine Turnpike Authority or Loring Development Authority.

2. Panel members must recuse themselves from any proceeding in which there is an actual or appearance of a conflict of interest. Any potential appearance of a conflict must be disclosed to the Chair and to the Panel in public session, and the Panel shall determine whether such potential conflict is significant or not.

3. A member of the Board, contractor or employee may not accept any gift, compensation or service with a value of more than $5.00 from any person or organization that is a Proposer, a potential Proposer or an objector to an application. Compensation includes the withholding of any penalty and is also interpreted to include gifts, services or compensation to members of the employee's immediate family or household and to gifts, services or compensations which may be given to anyone on behalf of the employee.

SECTION II: ENERGY INFRASTRUCTURE PROCESS

A. GENERAL

1. Purpose

The purpose of this Rule is to comply with Maine Revised Statutes Title 35-A §122 Energy Infrastructure Corridors and to define a process for any proposal to use an energy infrastructure corridor.

2. Applicability

This Rule applies to any energy infrastructure proposal that is within the jurisdiction of the Panel as defined by Title 35-A M.R.S.A. §122.

3. Definitions

The following words and terms, when used in this Rule, shall have the following meanings, unless the context clearly indicates otherwise.

a) Conflict of interest: Situation where a person, because of other activities or relationships with other persons, gives, or may potentially give, any Proposer an unfair competitive advantage. As used in this definition, the term “person” includes both individuals and entities. Members are governed by the conflict of interest provisions of Title 5, section 18. If a member believes that a conflict of interest may require that member’s abstention in a proceeding, unless the member in question decides to abstain, the question of the conflict of interest must be submitted to a vote of the members present, excluding the member in question.

b) Energy Infrastructure: Includes electric transmission and distribution facilities, natural gas transmission lines, carbon dioxide pipelines and other energy transport pipelines or conduits. "Energy infrastructure" does not include:

(1) Generation interconnection transmission facilities;

(2) Energy generation facilities; or

(3) Electric transmission and distribution facilities or energy transport pipelines that cross an energy infrastructure corridor or are within an energy infrastructure corridor for a distance of less than 5 miles.

c) LOI: Letter of interest indicating intent to pursue a project involving the location of energy infrastructure within a designated statutory corridor(s).

d) Memorandum of Understanding (MOU): A document describing an agreement between the Panel, the Proposer and the owner/controller of the corridor on the specifics of a Proposal, including the procedures for the Technical review which shall include the terms for reimbursements of reasonable costs incurred by the Panel in evaluation of the Proposal.

e) Occupancy Agreement: A contractual relationship between the Panel, Owner and/or Controller of the corridor and the Proposer to occupy an area within an energy infrastructure corridor to construct, maintain and operate energy infrastructure for a specified period of time.

f) Panel: The Interagency Review Panel as defined in 35-A M.R.S.A. §122, 1-B.

g) Panel’s Web Site or Web Site: The Panel’s official web site is hosted by the Governor’s Office of Energy Independence and Security and is available at the following address: http://www.maine.gov/oeis/irp/ .

h) Proposal: A formal application to develop, design, construct, operate and/or maintain energy infrastructure in a statutory corridor pursuant to the requirements in Section II(D)(3).

i) Proposer: Any entity, including any division or affiliate of the entity, that has submitted a LOI or Proposal in order to initiate or participate in a procurement for the development, design, construction, operation, or maintenance of energy infrastructure.

j) State: State of Maine.

4. Criteria for Selection of Projects for Energy Infrastructure

a) The Panel will approve an application only if the proposed project:

(1) Materially enhances or does not harm transmission opportunities for energy generation within the State;

(2) Is reasonably likely to reduce electric rates or other relevant energy prices or costs for residents and businesses within the State relative to the value of those rates, prices or costs but for the proposed energy infrastructure development or, if the deciding authority is unable to determine to its satisfaction the impact of the proposal on rates, prices or costs, the owner or operator of the proposed energy infrastructure agrees to pay annually an amount of money, determined by the deciding authority, to reduce rates, prices or costs over the life of the proposed energy infrastructure; and

(3) Is in the long-term public interest of the State, based on a consideration of the extent to which the project:

i. Materially enhances or does not harm transmission opportunities for energy generation within the State;

ii. Is reasonably likely to reduce electric rates or other relevant energy prices or costs for residents and businesses within the State relative to the expected value of those electric rates or other energy prices or costs but for the proposed energy infrastructure development;

iii. Increases long-term economic benefits for the State, including but not limited to direct financial benefits, employment opportunities and economic development;

iv. Ensures efficient use of the statutory corridor through collocation of energy infrastructure, collaboration between energy infrastructure developers, potential for enhancement of other priority state policies including integrated telecommunications and broadband infrastructure expansions, and the preservation of options for future uses;

v. Minimizes conflict with the public purposes for which the state-owned land or asset is owned and any management plans for the land or asset within the statutory corridor and, when necessary, mitigates unavoidable impacts;

vi. Limits and mitigates the effects of energy infrastructure on the landscape, including but not limited to using underground installation when economically and technically feasible;

vii. Increases the energy reliability, security and independence of the State; and

viii. Reduces the release of greenhouse gases.

B. FREEDOM OF INFORMATION, PROTECTION OF PROPRIETARY INFORMATION

1. Purpose

The purpose of this Section is to provide for free public access to all records of the Panel with certain exceptions. Exceptions shall be construed strictly and narrowly. The purpose of this Section is also to provide protection for proprietary information defined by 35-A M.R.S.A. §122(F-1) and other protection provided for by law.

2. Scope

This rule applies to all records of the Panel including all books, papers, maps, photographs, recorded tapes, financial statements, statistical tabulations, or other documentary materials or data, regardless of physical form or characteristics, made or received by any member of the Panel in her or his official capacity.

3. Access to Information

a) Right to Information

Any person shall be allowed access to any record of the Panel unless the record is protected by 1 M.R.S.A. §402 (3) or 35-A M.R.S.A. §122(1-B)(G).

b) Procedure

A person seeking access to records of the Panel should request access in person at the offices of the Panel maintained by the Office of Energy Independence and Security, 62 State House Station, 111 Sewall Street, Augusta, Maine 04333-0062, by telephone 207-624-7405, or by first class mail. Inspection shall be conducted within the offices of the Panel at a date and time during ordinary working hours reasonably scheduled by the Director of the Office of Energy Independence and Security.

No charge shall be made for inspection of records.

The Panel may require a person desiring copies of any record to pay in advance the actual cost of preparing such copies.

c) Exempt Information

(1) General Principles

Records that are exempt from disclosure as described in Section II(B)(3)(d) below shall not be made available to the public. Only that part of a record which comes within an exemption shall not be made available. Those parts of a record that are not exempt from disclosure shall be made available through the procedures of Section II(B)(3)(b), provided that the Panel may require a person seeking access to information to pay the actual cost of separating exempt from non-exempt information.

(2) Exemptions

Records shall not be made available to the public if they are within any of the enumerated exemptions in 1 M.R.S.A. §302 (3), designated as proprietary information under 35-A M.R.S.A. Section 122, or otherwise protected from disclosure under applicable law.

d) Treatment of Records Claimed Proprietary

(1) General

A Proposer or any other person may assert that any records submitted to the Panel by that Proposer or person in connection with an application is either exempt from disclosure under one of the exceptions enumerated in 1 M.R.S.A. §402(3), or constitutes proprietary information as defined by 35‑A M.R.S.A. §122 (1)(F-1) and is protected from disclosure by 35-A M.R.S.A. §122 (1‑B)(G). The Proposer must mark such records with the phrase “CLAIMED PROPRIETARY” in a prominent location on each page of the document or on the outside of an instrument, such as a computer diskette. If a record is marked by an applicant as “CLAIMED PROPRIETARY” it does not necessarily mean that the record will be protected from disclosure, only that the Panel will follow the procedure below.

In the event the Panel receives a request to inspect or copy records marked by the provider of that information as Claimed Proprietary Information, the Chair will notify the provider of that information that such a request has been received. If the provider of that information wants the record to be protected from disclosure under Maine’s Freedom of Access Act, then the provider of that information shall, within five business days of receiving the Chair’s notice, provide the Panel with a confirmatory list of the records that it asserts are protected from disclosure under Title 1 M.R.S.A. §402 (3)(A) or (3)(B) or 35-A M.R.S.A. §122(1-B)(G), and a brief statement of the Proposer’s position. If the Panel determines that the law requires disclosure of the records, the Panel will not release the records for five business days in order to allow any party aggrieved by the decision to seek a court order barring disclosure.

4. Executive Session

a) The Panel may conduct Executive Sessions for the purposes and subject to the procedures established in 1 M.R.S.A. Section 405. The Panel may vote to allow others to attend the Executive Session, including, without limitation, staff, counsel, consultants, and advisors. If the purpose of an Executive Session is to discuss confidential information, the Panel may vote allow the provider of that information to attend the Executive Session.

C. VALUATION

1. Solicitation of Valuation Expert

a) The Panel shall contract for the services of one or more valuation experts to assist the Panel in its duties. Any expert must meet the following criteria, or any team of valuation experts must in combination meet the criteria in entering into a contract or contracts for valuation services with the Panel:

(1) Have demonstrated experience in the valuation and evaluation of utility corridors or transportation corridors;

(2) Hold a professional designation from a nationally recognized Organization of appraisers;

(3) Be licensed in Maine as a certified general real property appraiser in accordance with Title 32, Section 14035 or hold a comparable license from another state; and

(4) Have demonstrated experience in the valuation and evaluation of energy infrastructure assets.

2. Required Considerations for Valuation

a) Aspects of valuation that must be considered by an expert or team of valuation experts contracting with the Panel for valuation services shall include, but not be limited to the following:

(1) Costs avoided as a result of using a State or utility corridor including but not limited to costs of acquisition, lease or rental of private land;

(2) Costs of property taxes on private land;

(3) Costs of surveying, appraisal, environmental, engineering and other work necessary for use of private land;

(4) Costs of time and potential conflict regarding use of private land;

(5) The unique and limited nature of a State-owned land or asset; and

(6) All revenues or other financial benefits estimated reasonably to be generated by use of the State-owned land or asset.

3. Payment of Costs

a) The costs for the services of a valuation expert or team of valuation experts hired by the Panel under this section must be paid by one or more Proposers. In the case of multiple Proposers each making partial use of a corridor subject to the Panel’s jurisdiction, costs of valuation shall be allocated among Proposers in proportion to the amount of time spent by the experts on each potential developer’s proposal, as determined by the Panel.

D. PROPOSALS

1. Solicitation Process

a) The Panel will utilize an ongoing solicitation process for Energy Infrastructure proposals. An ongoing request for LOIs regarding proposals for projects involving the location of energy infrastructure within designated statutory corridors will be available on the Panel’s Web Site. In addition, the Panel may, from time to time, issue other solicitations, whether general or specific in nature, by using any other means/media it considers appropriate.

2. Letter of Interest (LOI)

a) Purpose

An LOI provides a conceptual proposal describing a project and the Proposer’s intended use in sufficient detail to enable the Panel and the Proposer to determine the feasibility and availability of the statutory corridor for the proposed use. Detailed plans and specifications are not required at this point. To the greatest extent practicable, the LOI should contain no proprietary or other information that would be considered exempt from disclosure under Section II(B)(3)(c).

b) Content

An LOI shall include the following information:

(1) Proposer’s name, address, contact information, and background, including that of any existing or potential partners;

(2) A description of the proposed project including a conceptual design of the facility and an identification of known or anticipated interconnections with existing or planned transportation facilities that will be required if the project is approved;

(3) Proposed project start and end points (including coordinates in decimal degrees, WGS 1984), proposed route, and total length;

(4) A topographic map with a scale of 1:2,000, or other appropriate scale, that delineates the location of the proposed transportation facility;

(5) How independent access to the site will be provided by authorized persons, both during construction and subsequent maintenance operations;

(6) A preliminary list of local, state, or federal agency permits or approvals expected to be required in order to develop or operate the proposed project and a projected schedule for obtaining such permits or approvals;

(7) Date site is needed (timeframe);

(8) Anticipated length of construction (number of months);

(9) Plans for collocation with another carrier;

(10) Legal status of the Proposer and preliminary information concerning the Proposer’s legal and financial capacity to carry out the proposal;

(11) A declaration as to whether the Proposer will also be the owner of the infrastructure to be installed, and information regarding the legal status of the owner if different from the Proposer;

(12) A brief analysis of the public benefits of the project and how the project meets the statutory project selection criteria;

(13) Diagram of the typical cross section of proposed facilities, including access and utilities, showing the potential impact it will have on the surrounding facilities; and,

(14) Any additional information that may help the Panel more fully understands the design, purpose, impact, and benefits of the project.

c) Submittal Requirements

(1) Review

The Panel will acknowledge receipt of an LOI at their next regularly scheduled meeting and may schedule a time for the Proposer to make a formal presentation to the Panel or return the proposal as incomplete and specify in writing the reasons it was returned.

The Panel shall request any additional information from the Proposer that may be necessary to determine if the proposal provides reasonable potential for long-term benefits to the State of Maine as required under Section II(A)(4)(a).

If the Panel finds that the LOI does not provide reasonable potential for long-term benefits to the State of Maine, the Proposer will be notified in writing of the finding as described in Section II(D)(5) and no further action will be required of the Panel.

Whenever these rules require or allow the filing of any paper or submission, that filing is complete upon receipt by the Panel.

3. Proposal requirements

a) General requirements. Proposal forms must be developed by the Panel and must require such information as the Panel deems necessary to make the necessary regulatory findings.

A proposal from a corporation must be submitted in the corporation’s registered corporate name, and must include either a Certificate of Good Standing or a statement signed by a corporate officer affirming that the corporation is in good standing.

b) Initial Fee

Prior to submittal of a detailed proposal, the Proposer shall pay an initial fee of $10,000 to the Panel. This fee is separate from, and will not be credited towards, any of the costs for which the Proposer is responsible under the terms of a future MOU. Upon receipt of the initial fee, the Panel will send the Proposer specific requirements for submitting a detailed Proposal.

4. Technical Review Phase

Upon finding that a proposal does provides reasonable potential to meet the technical requirements of the corridor owner/controller and to provide long-term benefits to the State of Maine, the Panel shall develop and enter into a Memorandum of Understanding (MOU) with the Proposer to conduct a “Technical Review”. The signed MOU shall be posted on the Panel’s Web Site and shall specify: the end date of the agreement, whether the proposal is known to be a competing proposal to any existing proposals pending before the Panel, and the terms of reimbursement by the Proposer for any reasonable costs incurred by the Panel to evaluate the proposal.

a) Purpose

The purpose of the Technical Review Phase is to identify or address any of the following:

(1) Whether the proposal is likely to meet the requirements of Section II(A)(4)(a).

(2) The value of the land or assets proposed for use.

(3) The concerns or considerations of any state or federal entity having ownership or control over the proposed corridor. Examples would include MaineDOT, the Maine Turnpike Authority, and the Federal Highway Administration.

(4) The concerns or considerations of any state or federal entity having a regulatory role over any aspect of the proposal.

(5) Any other questions or concerns that the Panel may deem pertinent to a final decision and the development of a final Occupancy Agreement.

b) Duration

The Technical Review Phase shall be in place for a minimum of three (3) months from the date the MOU is signed. However, the Panel may choose to extend this period as necessary to ensure that all of the above questions are adequately and thoroughly answered. During this period, the Panel may continue to consider additional LOIs and may also enter into multiple MOUs that may or may not conflict or compete with other proposals from either a physical location or market analysis standpoint.

c) Cancellation

If, at any point, the Panel determines that a proposal does not meet one or more of the requirements of Section II (A)(4)(a), cannot be reasonably located at the proposed location or the Proposer is found to be uncooperative in any manner, the Panel may end the MOU by notifying the Proposer of the reasons behind the decision and the amount of any outstanding expenses owed under the agreement. Similarly, if the Proposer determines that their proposal is no longer feasible or in their best interest, they may request to withdraw from the MOU and the Panel, upon such notice, shall notify any consultants, departments, and/or state agencies that may be working on aspects of the Technical Review to cease any further activity, and close out any necessary billing associated with the MOU. Upon payment of any outstanding expenses, the Panel shall formally release the Proposer from the MOU and shall post the release upon the Panel’s Web Site.

d) Negotiations

The Panel may elect to enter into negotiations with a single Proposer or competitive negotiations with multiple Proposers regarding the terms of the proposal, Occupancy Agreement with the selected Proposer or Proposers

e) Decision Regarding Proposal

The Panel may approve a proposal upon finding that the proposal meets the requirements of Section II (A)(4)(a). Upon approval of a proposal, the Panel will issue a written decision as described in Section II (D)(5). Approval of the proposal shall be subject to execution of the Occupancy Agreement by the successful Proposer, and satisfaction of such other conditions as may be required by the Panel. The Panel shall notify the Proposers of the Panel’s approval of the selected proposal and intent to award an Occupancy Agreement.

f) Authority to Reject

The Panel shall reject any proposal that fails to meet the requirements of Section II(A)(4)(a). The Panel may reject a proposal that meets the minimum requirements of Section II(A)(4)(a) if it finds that such rejection is likely to advance the policies of Title 35-A M.R.S.A. §122 more effectively than approving the proposal, for instance by reserving the corridor for a potentially more beneficial use.

5. Decisions

The Panel will issue a written decision with respect to any final decision approving or rejecting a proposal. A decision approving a proposal may set forth conditions for such approval. A decision either approving or rejecting a decision will set be in a manner sufficient to inform the applicant and the public of the basis of its findings. The decision will make findings of fact and conclusions of law with respect to the decision criteria set forth in 35-A M.R.S.A. §122(1-D) and Section II (A)(4)(a) of this rule.

6. Notice of appeal rights

Each decision approving or denying a proposal must be accompanied by a plain statement of the appropriate rights of administrative and judicial review and the time within which those rights must be exercised. Correspondence notifying the applicant of the Panel’s denial must be made by certified mail, return receipt requested. Any person with standing may seek judicial review of a final Panel decision by filing a petition in Superior Court in accordance with 5 M.R.S.A. Section 11001 et seq . and M.R.Civ.P. 80C.

E. PUBLIC COMMENT

1. Public notice of proposals

Following receipt and initial review of all formal proposals and prior to negotiating a final Occupancy Agreement, the Panel shall post a summary of the proposal on the Panel’s Web Site for public comment for a period of no less than two (2) weeks. All comments and the final responses of the Panel shall be posted on the Panel’s Web Site. Such postings shall include notice of availability of this rule governing the review process for proposals.

2. Public comment on proposals

Written public comments on proposals are allowed during the course of processing the proposal. The Panel may establish a deadline for the submission of written comments by posting a notice on its Web Site.

3. Public Meetings

a) The Panel will hold at least one non-testimonial public meeting on a proposal. Such meetings are not subject to the procedural requirements of the Maine Administrative Procedures Act, Title 5, Chapter 375, Subchapter IV. The purpose of non-testimonial public meetings is to allow any member of the public to appear and provide oral comment to the Panel on a pending Proposal.

b) The costs associated with providing public notice of a meeting on an application shall be paid for by the Proposer. The meeting shall be conducted substantially as follows:

(1) The Proposer shall make a statement in support of the application, addressing the findings required to be made by the Panel in considering the application.

(2) Members of the public shall be given an opportunity to comment on the application.

c) The Proposer shall be given an opportunity to respond to the comments presented. The Panel may ask questions of the Proposer and any party addressing the Panel, and may require additional information of the Proposer. The Panel may continue the meeting at its discretion to a later date or specify a period within which it will accept further information or comment.

4. Discretionary Public Hearings

a) Criteria for holding public hearings. Public evidentiary hearings will be held at the discretion of the Panel. In determining whether to hold an evidentiary hearing, the Panel may consider the availability of administrative resources required for such a hearing, the degree of public interest in the proposal, and whether receiving sworn testimony and observing cross examination of witnesses would be helpful to its consideration of the proposal.

b) Conduct of public hearings. Any evidentiary hearings will be held in accordance with the Maine Administrative Procedure Act, Title 5, Chapter 375, Subchapter IV. When scheduling evidentiary hearings, the Panel shall also establish a date by which petitions for intervention must be submitted to the Panel.

F. OCCUPANCY AGREEMENT

Prior to developing and/or operating an energy infrastructure project, the Proposer approved by the Panel shall enter into an Occupancy Agreement with the owner/controller of the corridor. The Occupancy Agreement shall include the following to the extent applicable:

a) Delivery of performance and payment bonds or other forms of performance security acceptable to the Panel in connection with the construction of or improvements to the energy corridor, in the forms and in amounts satisfactory to the Panel.

b) Review and approval of plans and specifications for the Project by the Panel and responsible public entity if the plans and specifications conform to established standards of the Panel and responsible public entity.

c) Inspection of construction or improvements to the project by the Panel and responsible public entity to ensure conformance with engineering standards acceptable to the Panel and responsible public entity.

d) Maintenance of a policy or policies of public liability insurance certificates, which shall be provided to the responsible public entity, or maintenance of self-insurance, each in form and amount satisfactory to the Panel and responsible public entity and sufficient to ensure liability coverage to the public and employees of the facility and to enable the continued operation of the Project.

e) Monitoring of the operations and maintenance practices of the private entity by the Panel and responsible public entity. The private entity shall take all actions as specified in the Comprehensive Agreement to ensure that the qualifying energy infrastructure project is properly operated and maintained.

f) Reimbursement to be paid to the Panel and responsible public entity for services provided by the responsible public entity.

g) Filing appropriate financial statements on a periodic basis.

h) The date of termination of the agreement.

i) User fees, lease payments, service payments, or the availability or other performance-related payments as may be established by agreement of the parties.

j) A copy of any lease or service contract to be filed with the Panel and responsible public entity.

k) Such other terms and conditions as the Panel may require.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §122
• EFFECTIVE DATE: June 24, 2012 – filing 2012-174
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

95-584 Northern New England Passenger Rail Authority

Chapter 1 Bylaws of the Northern New England Passenger Rail Authority

Code Me. R. 95-584 Ch. 1 Bylaws of the Northern New England Passenger Rail Authority {#sec-95-584-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--95-584 Ch. 1}

SUMMARY: This chapter contains the Bylaws governing the internal management of the Northern New England Passenger Rail Authority.

Chapter I of the Northern New England Passenger Rail Authority's rules setting forth the Bylaws of the Authority is hereby enacted to read:

SECTION I. PURPOSE.

The Authority was created by the Maine Legislature to take all actions that are reasonably necessary to initiate, establish or reinitiate regularly scheduled passenger rail service between points within this State and points within and outside this State. These actions may include, but are not limited to, the acquisition, holding, use, operation, repair, construction, reconstruction, rehabilitation, modernization, rebuilding, relocation, maintenance and disposition of railroad lines, railway facilities, rolling stock, machinery and equipment, trackage rights, real and personal property of any kind and any rights in or related to that property.

SECTION II. OFFICE.

The principal office of the Authority shall be at such location as it shall determine.

SECTION III. SEAL.

The seal of the Authority shall be in the form of a circle within which shall be the name of the Authority and the year 1995.

SECTION IV. BOARD OF DIRECTORS.

The Directors of the Authority shall be appointed, removed and replaced in accordance with, and shall serve such terms as are specified in, 23 M.R.S.A. §8112(l), which at the time of adoption of these bylaws provides:

The authority consists of a board of 5 directors appointed by the Governor each to serve for 5 years; except for those first appointed one director is appointed for one year, one director for 2 years, one director for 3 years and one director for 4 years. Immediately after their appointments, the directors of the authority shall enter upon their duties. The Governor shall name one of the appointed members as chair of the authority. ... Any vacancy must be filled for the unexpired term by the Governor. A vacancy in the authority does not impair the right of a quorum of the directors to exercise all the rights and perform all the duties of the authority. The Governor may remove a member from the authority for misconduct.

SECTION V. OFFICERS.

A. The Chair of the Authority shall be appointed, removed and replaced by the Governor in accordance with 23 M.R.S.A. §8112(l), which at the time of adoption of these bylaws is set forth in part in Section IV of these bylaws. The Chair shall preside over meetings of the Directors. In the absence or incapacity of the Chair at a meeting, or if for any reason there is no Chair, then the Vice Chair (or such other Board member as the Directors may elect in the absence of the Vice Chair) shall preside. Unless some other person is specifically authorized by vote of the Directors to do so, the Chair shall sign all deeds, leases, contracts and other instruments to be executed on behalf of the Authority. The Chair shall perform such other duties as the Directors may specify.

B. The Directors shall elect a Vice Chair, Treasurer, a Secretary, and any other officers in accordance as the Directors from time to time consider necessary. These officers need not be Directors, shall have a term of one year and shall serve until the election of their respective successors.

C. The Vice-Chair shall perform the duties and have the powers of the Chairman during the absence or incapacitation of the Chairman.

D. The Secretary shall sign the minutes of all meetings of the Directors and shall perform such other duties as the Directors may specify.

E. The Treasurer shall sign annual financial statements for the Authority and shall perform such other duties as the Directors may specify.

SECTION VI. COMMITTEES

A. The Chair, with the approval of the Directors, may form an Executive Committee and such other standing or ad hoc committees and appoint Directors to sit on those committees. As long as Directors shall occupy a majority of the seats on the committee, the Chair may appoint persons who are not Directors to these Committees,

SECTION VII. MEETINGS.

A. The annual meeting of the Directors shall be held in September of each year, at which time the Directors shall elect the officers.

B. Regular and special meetings of the Directors may be called either by the Chair or any three Directors.

C. Meetings of the Directors shall be held at such place in the State of Maine as is specified in the notice of meeting.

E. Notice of meetings must be received by the Directors at least two (2) business days prior to the date of the meeting, by mail, telephone or otherwise.

F. Public notice of any Directors' meeting shall be given in accordance with applicable law in effect from time to time, which as of the date of adoption of these bylaws provides that:

(a) Public notice of a Directors' meeting shall be given in ample time to allow public attendance and shall be disseminated in a manner reasonable calculated to notify the general public in the area served by the Authority.

(b) In the event of an emergency meeting, local representatives of the media shall be notified of the time and location of the meeting whenever practical by the same or faster means used to notify the Directors.

SECTION VIII. QUORUM AND VOTING.

A. A quorum for the transaction of business at a regular or special meeting of the Directors shall consist of a majority of the Directors then in office.

B. Action by the Authority shall be taken by an affirmative vote of a majority of Directors at a meeting at which a quorum of Directors is present. A Director will be deemed present and may vote if he or she participates in the meeting via a telephone conference call, or similar communications equipment, provided that all Directors participate in the meeting either in person or via telephone and, during any portion of the meeting that is a public meeting, members of the public as well, can plainly hear and communicate with one another.

C. There shall be no proxy voting.

SECTION IX. COMPENSATION.

A. Each Director shall be entitled to compensation in accordance with the provisions of 5 M.R.S.A. Chapter 379.

B. Requests for compensation shall be submitted to the Chair for approval.

SECTION X. INDEMNIFICATION

The Authority shall defend and indemnify its board members, officers and employees of, from and against all claims to the fullest extent required or permitted under the Maine Tort Claims Act. The Authority shall also have the discretion to defend and indemnify its board members, officers and employees to the extent provided by any other provision or principle of law.

SECTION XI. CONFLICT OF INTEREST.

All Directors, officers and employees of the Authority shall observe:

A. The provisions of 23 M.R.S.A. §8113 which, at the time of adoption of these bylaws, provided as follows:

A director, officer or employee of the authority may not acquire any interest, direct or indirect, in any contract or proposed contract of the authority. A director, officer or employee may not participate in any decision on any contract entered into by the authority if that individual has any interest, direct or indirect, in any firm, partnership, corporation or association that will be party to such a contract or financially involved in any transaction with the authority; except this prohibition does not apply to the execution of agreements by banking institutions for the deposit or handling of authority funds in connection with any contract or to utility services, the rates for which are fixed or controlled by a governmental agency; and

B. Any Code of Ethics the Authority may adopt from time to time pursuant to the requirements of Federal law pertaining to conflict of interest.

Authority: The Passenger Rail Service Act, 23 M.R.S.A. § 8114(3); 49 U.S.C. § 1609 (Section 13(c) of the Federal Transit Act of 1964, as amended); and 49 USC. § 5301 et seq. (capital assistance projects).

EFFECTIVE DATE: September 21, 1995 (EMERGENCY)

EFFECTIVE DATE OF PERMANENT RULE: December 6, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996

95-592 Small Enterprise Growth Board

Chapter 701 Small Enterprise Growth Program

Code Me. R. 95-592 Ch. 701 SMALL ENTERPRISE GROWTH PROGRAM (Amendment 7) {#sec-95-592-ch.-701 omnilex-key=us-me-regs-official--dept-independent-agencies--95-592 Ch. 701}

Summary: This Rule establishes the procedures and standards applicable to the Small Enterprise Growth Program, a program that provides for the administration of one or more funds that invest in eligible small Maine-based businesses or qualifying venture funds demonstrating potential for high-growth and significant public benefit.

SECTION 1. DEFINITIONS

A. Reference to Act Definitions. Certain terms used in this rule, which are defined in 10 M.R.S.A. §381 and following (the "Act"), shall have the meanings set forth in the Act, unless clearly specified otherwise or unless the context clearly indicates otherwise.

B. Defined Terms

1. "Administrative contract" means a contract between the Board and a service provider to administer specified aspects of the program.

2. "Applicant" means an individual or entity which has submitted a complete application to the Board.

3. "Authority" means the Finance Authority of Maine, or as the context requires, the Chief Executive Officer and employees of the Authority.

4. "Board" means the Small Enterprise Growth Board.

5. [Repealed effective July 25, 2002]

6. [Repealed effective July 25, 2002]

7. "Initial investment" means a disbursement from the SEGF of up to $500,000, which may be made in a single payment or in a series of payments to the qualifying small business or qualifying venture fund pursuant to one or more disbursement agreements.

8. "Investment agreement" means an agreement between the recipient and the Board setting out the terms on which the Board will invest in the recipient and on which the recipient will repay the Program Funds or otherwise provide a return to the Board on its investment.

9. "Managing director" means an individual or entity that has entered into an agreement with the Board to administer the program and the Program Funds, including but not limited to, the review and analysis of applications, meeting with applicants, providing analysis of the status of the Program Funds, publicizing the Program Funds, executing documents and taking other actions on behalf of the Board.

10. "Program" means the Small Enterprise Growth Program, which shall encompass administration of the Small Enterprise Growth Fund and any and all Side Funds.

11. “Program Funds” means the Small Enterprise Growth Fund and any and all Side Funds.

12. "Public benefit" means that the disbursement will advance and assist the people of the State of Maine.

13. "Qualifying small business" means

(A) For the purpose of an initial investment by the Board, a business which employs the full time equivalent of 50 or fewer individuals at the time of application or has gross sales not exceeding $5,000,000 within the most recent 12 months for which financial statements meeting the Board's requirements are available; or

(B) For the purpose of a subsequent investment by the Board, a business that has previously received an investment from the Board and that, in the judgment of the Board, evidences continued potential for high growth.

14. “Qualifying venture fund” means a venture capital fund that is managed by an entity other than the board and that the board finds demonstrates the potential to contribute venture capital funding in a manner that promotes economic growth in the State.

15. "Recipient" means a qualified small business or qualifying venture fund in which the Board makes an investment from the Funds and includes a prospective recipient where the context requires, and also includes any related entity having 50% or greater common ownership or beneficial interest with the recipient or any individual or entity having a 50% or greater ownership or beneficial interest in the recipient.

16. "SEGF" means the Small Enterprise Growth Fund.

17. “Side Fund(s)” means a fund or funds, created and administered by the Board, from sources other than monies appropriated to the SEGF (and earnings thereon) which co-invests alongside the SEGF, or makes independent investments in select qualifying small businesses or qualifying venture funds.

18. “Side Fund Investments” means investments in qualifying small businesses or qualifying venture funds by the Board from one or more Side Funds.

19. "Subsequent investment" means, an investment by the SEGF which, together with any initial investment, is in an amount which does not exceed ten percent (10%) of the capitalization of the SEGF from all appropriations received for application to the SEGF, plus any funds received from repayment, interest, royalties, equities or other interests in business enterprises, products or services to the extent the repayment, interest, royalties or equities or other interests are in excess of the amount initially invested in the recipient, as determined on the date of approval of the subsequent investment, which may be made in a single disbursement or a series of disbursements to the qualifying small business or qualifying venture fund.

SECTION 2. ADMINISTRATION

A. The Board has the power to approve investments to qualifying small businesses or qualifying venture funds from the Program Funds. The Board may not delegate the final authority to approve investments, but once having authorized a potential investment from the Program Funds within designated parameters approved by it, the Board may delegate to a subcommittee of the Board the authority to negotiate and agree to terms of the investment within those designated parameters.

B. The Board may delegate to one or more subcommittees the authority to review applications. The subcommittee may be given the authority to deny applications for investments. The Board may determine in advance that such a denial will be final agency action, not subject to appeal to the full Board.

C. The Board may create such other subcommittees as it may deem necessary for the administration of the Board's business.

D. The Board may enter into administrative contracts with one or more individuals or entities to perform the administrative functions necessary to the efficient conduct of the program and the administration of the Program Funds. Without limitation, services contracted for may include development of rules, procedures, documentation, financial reporting, publicity, analysis and recommendations with respect to applications received. The contracts may provide compensation for services rendered and reasonable expenses.

SECTION 3. SEGF ADMINISTRATION

A. The Authority shall maintain and invest the cash balances of the SEGF at the direction of the Board and shall report regularly to the Board regarding the balance of the SEGF.

B. Appropriations, interest on investments, interest on investments to recipients, principal repayments, grants, endowments and gifts will be added to the SEGF. The SEGF will be used to make investments to recipients and to pay costs and expenses associated with maintaining, servicing and administering the SEGF and the program.

SECTION 3A. SIDE FUND ADMINISTRATION

A. The Board may enter into agreements or contracts with third parties to create and fund Side Funds. Ownership interests in Side Funds may be allocated or issued by the Board in accordance with such agreements, and monies in the Side Funds, whether principal, interest, investment income, investment repayment, or profit, may be distributed by the Board to third parties in accordance w ith such agreements. Such agreements may also provide that the Board be entitled to receive and retain profits or other returns on investments by the Side Fund. Any amounts definitively earned by the Board in a Side Fund shall be transferred to the SEGF at such time as the Board may direct, but in no event later than the closing of such Side Fund.

B. Monies for the creation or funding of Side Funds may come from any lawful source, including public entities and private individuals or entities, and may be structured as revolving or non-revolving funds, and all or a portion of such monies may be returned to the contributor or investor in accordance with the terms of the agreements governing the creation of such Side Funds.

C. Interest on investments of Side Fund monies, interest on investments by Side Funds into Recipients, principal repayments, grants, endowments and gifts will be added to such Side Fund as directed by the Board. Such Side Funds may be used to make investments to Recipients and to pay costs and expenses associated with maintaining, servicing and administering the Side Funds and the program.

D. The Board may charge and accept management fees, or carried interest, for management of the Fund or Side Funds, provided that in no event shall any such management fees be charged to or paid from monies appropriated by the state to the SEGF. The board may approve payment of management fees to a fund manager hired to manage a side fund or to a fund manager for a qualifying venture fund in which the board is an investor.

E. The Authority shall maintain and invest any and all Side Funds for which it is given direction to do so by the Board and shall report regularly to the Board regarding the balance of such Side Funds.

SECTION 4. ELIGIBILITY

A qualifying venture fund or a qualifying small business may be eligible to receive financial assistance under the program. In order to be eligible for financial assistance, a qualifying venture fund must invest a portion of the money in companies based in Maine that employ fifty or fewer employees or have gross sales not exceeding $5,000,000 within the most recent twelve months for which financial statements are available.

In order to be eligible for financial assistance, a qualifying small business must meet each of the criteria in A-C below:

A. Must be engaged in or involve at least one of the following:

1. Marine Sciences

2. Biotechnology

3. Manufacturing

4. Export of goods or services to locations outside the State or activities that result in significant amounts of capital being imported into the State

5. Software development

6. Provision or development of environmental services or technologies

7. Provision or development of financial or insurance products or services

8. Production of value-added goods from natural resources

9. Other enterprises that the Board determines will further the purposes and intent of the program, including, but not limited to, retail sales, tourism and agricultural production.

B. The qualifying small business must demonstrate that it has the potential for high growth and that it will provide public benefit.

C. The qualifying small business must provide evidence of its need for financial assistance from the fund to realize its projected growth and achievement of public benefit.

SECTION 5. APPLICATION PROCEDURE AND CONTENTS

A. Prior to being considered for an investment from the Program Funds, a company seeking investment must supply, at a minimum, the following information:

1. A description of the applicant, which identifies the business of the applicant, including the legal form of the business entity.

2. A statement of how the investment will be used.

3. The background and experience of all individuals essential to the applicant. (Resumes may be attached to fulfill this requirement.)

4. A description of the goal and/or opportunity, which inspired the applicant.

5. A description of the current status of the applicant, including an assessment of the stage it is at in its effort to achieve its goal or opportunity.

6. A description of all previous investments received by the applicant.

7. An assessment of the current value of the applicant.

8. An estimate of the amount of capital needed to achieve the goal or opportunity of the applicant.

9. A description of the competition of the applicant.

10. A statement of how the applicant will obtain the required matching funds.

11. A description of the potential of the applicant for high-growth and public benefit.

12. The profit and loss statement, balance sheet and statement of cash flows for the most recent two years or such shorter time as the applicant has conducted the business.

13. The applicant's projected financial statements for the next three years, including a profit and loss statement, balance sheet, statement of cash flows and any other projections the Board requests.

14. A disclosure of any actions, suits, proceedings or investigations pending against or, to the knowledge of the applicant or the individuals managing the applicant, threatened against or affecting the applicant or the individuals managing the applicant.

A-1 Prior to being considered for an investment from the Program Funds, a qualifying venture fund seeking investment must supply, at a minimum, the following information:

1. A description of the fund, including the legal form of the entity.

2. The background and experience of all individuals that manage the fund. (Resumes may be attached to fulfill this requirement.)

3. A description of the focus of the fund.

4. A description of any current fund portfolio companies, and any identified investment targets of the fund.

5. A description of all previous investments received by the applicant, and the target amount of total fund investments sought.

6. A statement of how the investment will be used.

7. A description of how the fund expects to promote economic development in the State.

8. The performance of the fund, including profit and loss statement, balance sheet and statement of cash flows, all since fund inception.

9. A disclosure of any actions, suits, proceedings or investigations pending against or, to the knowledge of the applicant or the individuals managing the applicant, threatened against or affecting the applicant or the individuals managing the applicant.

B. The applicant shall provide such additional information related to the business or the fund as the Board may reasonably request.

SECTION 6. BOARD ACTION

A. Five (5) Board members shall constitute a quorum of the Board. If five (5) Board members are present at the beginning of any meeting, then a quorum exists for the transaction of the business. If any Board member(s) leaves a meeting at which a quorum was originally present, so that less than five (5) Board members remain, a quorum shall be deemed to continue to exist. Notwithstanding the foregoing, a majority of those present and voting is necessary for approval of an application or other action, and the affirmative vote of at least four (4) Board members is required to approve an investment.

B. No Board member may participate in a vote on an application where that member has a direct or indirect pecuniary interest in the outcome of the vote. Every interest of a Board member in any matter before the Board must be disclosed to the Board.

C. In cases where the Board approves an investment, the Board, an authorized subcommittee, or the Managing Director may issue a term sheet outlining the terms and conditions of the investment. In cases where the application for an investment from the Program Funds are denied, the Board shall issue (or cause to be issued) a letter of denial, which includes an explanation for the denial.

D. The Board may allow members to participate in a public proceeding using remote methods under the following conditions:

1. After notice and hearing the Board has adopted a written policy governing the conditions upon which members and the public may participate in a public proceeding by remote methods;

2. The policy adopted must provide members of the public a meaningful opportunity to attend by remote methods when members participate by remote methods, and reasonable accommodations may be provided when necessary to provide access to individuals with disabilities;

3. If the Board allows or is required to provide an opportunity for public input during the proceeding, an effective means of communication between the members and the public must be provided;

4. Notice of the proceeding must be provided in accordance with state law. When the public may attend by remote methods, the notice must include the means by which members of the public may access the proceeding using remote methods. The notice must also identify a location for members of the public to attend in person. The Board may limit public attendance at a proceeding solely to remote methods if there is an emergency or urgent situation that requires members to meet only by remote methods;

5. A member who participates in a public proceeding by remote methods is present for purposes of a quorum and voting;

6. All votes taken during a public proceeding using remote methods must be taken by roll call vote that can be seen and heard if using video technology, and heard if using only audio technology, by the other members and the public; and

7. The Board must make all documents and other materials considered available, electronically or otherwise, to the public who attend by remote methods to the same extent customarily available to members of the public who attend the proceedings of the Board in person, as long as additional costs are not incurred by SEGF.

The policy adopted pursuant to this subsection applies to a board or committee that is within the jurisdiction of SEGF, unless the board or committee adopts its own policy.

SECTION 7. DELEGATION OF APPLICATION REVIEW TO SUBCOMMITTEE

A. Affirmative action by the Board is necessary to delegate to a subcommittee authority to review applications or authority to negotiate and agree to terms of an approved investment within designated parameters set by the Board.

B. Each subcommittee shall be composed of 1 or more members.

C. Each decision of a subcommittee must be approved by a majority of all members of the subcommittee.

D. Subcommittees may meet and take action by means of teleconference.

SECTION 8. TERMS AND CONDITIONS OF INVESTMENTS

A. Initial investments, subsequent investments, and Side Fund Investments shall be made in an amount which is reasonable as shown by materials submitted by the qualified small business or qualified venture fund.

B. Investments from the Program Funds may be in a form determined by the Board in recognition of the degree of risk of the proposal. The investment agreement may require royalties or additional payments based on sales, net cash flow or other financial measures, or rights to equity in the enterprise in the form of debentures, warrants, stock ownership or similar rights.

C. With respect to investments from the SEGF, the qualifying small business must provide the Board satisfactory evidence that it has obtained other cash funds in an amount at least equal to the investment. The matching cash may be in the form of debt or equity, but must be at risk in the qualifying small business for a term at least equal to the Board's investment, must be invested no later than the date of the Board's investment and may be invested prior to the Board's investment as approved by the Board. If the Board approves an investment made prior to the Board's investment as the matching investment, it must remain at risk in the recipient for at least as long as the Board's investment. Side Fund investments may, in the discretion of the Board, count as matching investments to investments from the SEGF. With respect to investments in qualifying venture funds, the board may direct pursuant to an agreement with such a fund that a portion of the money go to companies based in Maine that employ fifty or fewer employees or have gross sales not exceeding $5,000,000 within the most recent twelve months for which financial statements are available.

D. The Board may make incremental investments to the recipient based on specific events or conditions established at the time of approval.

E. The recipient will be required to report to the Board at least quarterly on each of the following performance measures:

1. Financial performance;

2. Job creation;

3. Technological progress;

4. Market progress; and

5. Any other measures the Board requires.

F. The recipient may not use the investment to make distributions to or for the benefit of an owner of the recipient or a related entity.

G. No member, employee or agent of the Board may disclose to any person the contents of any business or marketing plan for any application, any financial statements or reports pertaining to any recipient, or any other records which may be confidential pursuant to 1 M.R.S.A. §401 and following and 10 M.R.S.A. §391 or any successor or similar provisions.

SECTION 9. FEES AND OTHER CHARGES

A. [Repealed Effective October 1, 1999]

The Board may require the recipient to be responsible for costs and expenses of closing, administering and collecting on the investment.

SECTION 10. ADVISORY RULINGS

The Board is authorized to issue nonbonding advisory rulings as to the applicability of the program or the Board's rules to the applicant. Requests for advisory rulings must be in writing and must specifically identify the section or provision of the statute or rule on which the ruling is sought. The Board may decline to issue any ruling if the request is not sufficiently specific, is not accompanied by adequate information, does not adequately identify the applicant or the purpose for which the ruling is sought, or if the Board determines that issuance of a ruling would not assist the applicant or would be contrary to the purposes of the program. All rulings shall be in writing. Rulings shall not be binding upon the Board. The Board may charge an applicant for a ruling the Board's actual, out-of-pocket costs and expenses, if any, in preparing any ruling.

SECTION 11. HEARING PROCEDURES

In any case, where applicable law or rule requires the Board to conduct a hearing, the hearing shall be conducted substantially as follows:

A. The proponent shall make a statement in support of its position, addressing the findings required to be made by the Board in considering the application. The Board may ask questions of the applicant. The Board may allow others to ask questions of the proponent through the chair.

B. Opponents shall be given an opportunity to state the basis of their opposition to the matter before the Board.

C. The proponent shall be given an opportunity to respond to the opposition presented.

D. The Board may require additional information, and may continue the hearing to a later date or specify a period within which it will accept further evidence, but shall not be obligated to do so.

The Board may, in its discretion, retain a court reporter or otherwise make a record of the hearing, and the proponent shall be responsible for any costs and expenses of making the record.

BASIS STATEMENT: This Amendment 7 makes changes to the rule to address changes in the program statute made by PL 2021, Ch. 502. Primarily, the rule amendment adds the ability of the Board to invest in qualifying venture funds, in addition to qualifying businesses, and establishes the terms and conditions of such fund investments. The rule amendment also makes a limited number of technical changes to the Rule to address changes in the Board’s operations, including adding the Board’s remote meeting policy requirements to comply with applicable law. No comments were received from the public during the comment period.

History

• STATUTORY AUTHORITY: 10 M.R.S.A. §385
• EFFECTIVE DATE: June 14, 1997
• AMENDED: November 2, 1998 (Amendment 1) - Section VI
• AMENDED: October 1, 1999 (Amendment 2) - changes to Sections 1.B.5., 1.B.6, 1.B.10, 3.B, 4.C., 5.A. 1-14, including the addition of a new Section 5.A.13, and the renaming of the prior 5.A.13 to 5.A.14, 5.B., 8.A., 8.B., 8.C., 8.D., 8.E., 8.F., 8.G.,9.A. and 9.B.
• NON-SUBSTANTIVE CHANGE: January 17, 2002 - moved from umbrella-unit number 94-457 to 95-592
• AMENDED: July 25, 2002 (Amendment 3) - the addition of Sections 1.B.7A., 1B.7B., 1.B.7C.,1.B.11., 1.B.12., changes to Sections 1.B.8., 1.B.10., 2.A., 2.B., 2.C., 3.B., 4., 5.A., 5.A.2., 5.A.12., 5.A.13, 6.A., 6.C., 8., 8.A., 8.B., 8.D., 8.E., 8.F., 9., and the deletion of Sections 1.B.5, 1.B.6.
• AMENDED: December 10, 2003 (Amendment 4), filing 2003-463 - Section 1.B.10.(A).
• NON-SUBSTANTIVE CORRECTION: February 18, 2004 - capitalization of "Board" on page 2
• AMENDED: November 15, 2008 (Amendment 5)
• AMENDED: September 7, 2010 (Amendment 6), filing 2010-388. Added Section 3A and other conforming changes.
• AMENDED: August 11, 2024 (Amendment 7), filing 2024-175.Incorporates legislative changes pursuant to P.L. 2021, Chapter 502 (LD 1800), including addition of -qualifying funds as permitted investments, and makes other changes to improve program administration.
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

95-648 Efficiency Maine Trust

Chapter 1 Contracting Process for Service Providers and Grant Recipients

Code Me. R. 95-648 Ch. 1 Contracting Process for Service Providers and Grant Recipients {#sec-95-648-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 1}

SUMMARY: This Chapter establishes the procedures governing the selection of service providers for energy efficiency and alternative energy programs administered by the Efficiency Maine Trust and the selection of grant recipients to receive funds administered by the Efficiency Maine Trust for energy efficiency and alternative energy projects. Grant recipients and most service providers will be selected by means of a competitive bid process conducted by issuing Requests for Proposals or similar documents. Some service providers may be selected without a competitive bid process, when another solicitation process is the most efficient and effective means to deliver programs administered by the Trust. The chapter also establishes the procedure to seek reconsideration of a selection decision.

§ 1 GENERAL PROVISIONS AND DEFINITIONS

A. Scope of Rule. This rule establishes the procedures governing the selection of service providers for energy efficiency and alternative energy programs administered by the Efficiency Maine Trust and the selection of grant recipients to receive funds administered by the Trust for energy efficiency and alternative energy projects.

B. Definitions

1. Aggrieved person. "Aggrieved person" means any person who bids in response to an RFP, RFQ or PON and who is adversely affected by the contract award decision made pursuant to the RFP, RFQ or PON.

2. Bid. "Bid" means a response to an RFP, RFQ or PON.

3. Bidder. "Bidder" means a person or entity that submits a bid.

4. Contract Administrator. "Contract Administrator" means the employee of the Efficiency Maine Trust designated to administer contracts between the Efficiency Maine Trust and service providers, grant recipients and other vendors and consultants.

5. Program. “Program” means an energy efficiency or alternative energy program developed or administered by the Efficiency Maine Trust pursuant to 35-A M.R.S.A. Chapter 97 or Chapter 99 or other applicable law.

6. Program Opportunity Notice. "Program Opportunity Notice" means a document identifying the area or market sector of interest and the energy efficiency or alternative energy goals sought to be achieved. The document will solicit proposals on how the identified goals can be achieved. As a result of the Program Opportunity Notice, the Efficiency Maine Trust may choose one or more bidders to work on one or more programs or projects. This document is also known by the initials "PON."

7. Project. “Project” means an energy efficiency or alternative energy project that is funded in part or in whole by a grant from the Efficiency Maine Trust.

8. Proposal. "Proposal" has the same meaning herein as the term "bid."

9. Request for Proposal. "Request for Proposal" means a document inviting proposals for and listing the scope of work being requested, other requirements of the Efficiency Maine Trust, and the technical evaluation criteria and cost evaluation criteria for selection of the winning bidder. The document is also known by the initials "RFP."

10. Request for Qualifications. "Request for Qualifications" means a document listing the scope of work for the being requested, other requirements of the Efficiency Maine Trust, and the technical evaluation criteria for selection of the winning bidder. The document normally requires only a technical response. The Trust may select one or more bidders in response to a Request for Qualifications and then request cost proposals from or negotiate the cost terms of agreement with the qualified bidder(s). The document is also known by the initials "RFQ."

11. Service Provider. "Service provider" means a public or private provider of energy efficiency or alternative energy services or an entity selected by the Trust to contract with such providers or otherwise arrange the delivery of programs. "Service provider" also includes entities that indirectly deliver energy efficiency or alternative energy services to customers, such as entities that process and pay coupons, and entities that provide assistance in performing program evaluations and other services required by the Trust to fulfill its duties under 35-A M.R.S.A. Chapter 97 and Chapter 99 and other applicable law.

12. Trust. “Trust” means the Efficiency Maine Trust established in 35-A M.R.S.A. §10103.

C. Computation of time periods. All time periods prescribed in this rule are computed using calendar days, including Saturdays, Sundays and Federal holidays. The day from which the designated time period beings to run shall not be included in the computation. The last day of the period shall be included unless it is a Saturday, Sunday or Federal holiday, in which case the period runs until the next day which is not a Saturday, Sunday or Federal holiday.

§ 2 COMPETITIVE PROCUREMENT

A. Competitive Bidding Process. Except as provided in Section 3, the Efficiency Maine Trust shall select service providers and grant recipients through a competitive bidding process. Competitive bidding processes shall be conducted by issuance of one of the following documents:

1. Request for Proposals (RFP)

2. Request for Qualifications (RFQ)

3. Program Opportunity Notices (PON)

The processes shall be designed to maximize participation from qualified bidders.

B. Development of RFPs/RFQs/PONs. When the Efficiency Maine Trust is to select a service provider or grant recipient by competitive bid, it shall develop and issue an RFP, RFQ, or PON.

1. Each RFP and RFQ will contain sufficient information to permit bidders to develop responsive proposals. This information will include, at a minimum:

a. A description of the scope of work required;

b. The required content and format of the bids;

c. A list of the bid evaluation criteria and scoring weights to be applied;

d. The date, time and place that the proposal is due. Open solicitations may alternately specify a notice period for closing the solicitation;

e. The name, address, and contact information for the Efficiency Maine Trust contact person; and

f. A copy of the standard agreement or applicable alternative agreement as described in Section 4.

In each RFP or RFQ, the Trust will establish reasonable timeframes for the submission of bids, the evaluation of bids, and the selection of the winning bidders.

2. Each PON will be a formal request for programs or projects within an area or market sector that require bidders to detail their own approach to the PON's topic. A PON will describe the objectives of the program opportunity but the bidder is then responsible for providing a detailed statement of work that represents a solution to the opportunity outlined in the PON. Cost-sharing by the contractor may be required.

C. Notice of RFPs, RFQs and PONs. The Efficiency Maine Trust will maintain a list of interested persons who will be notified whenever the Trust issues a RFP, RFQ or PON related to a program or project. The Trust will reasonably advertise each RFP, RFQ and PON. Each RFP, RFQ or PON will be posted on the website maintained by the Trust.

D. Written Questions and Pre-Bid Conferences. The RFP, RFQ, or PON will specify the manner in which written questions may be asked. The Efficiency Maine Trust at its option may hold a pre-bid conference. Answers to written questions and to all questions raised at a pre-bid conference will be posted on the website maintained by the Trust.

E. Submission of Bids. To the extent practicable, the Efficiency Maine Trust will accept bids electronically in response to RFPs, RFQs, or PONs. All timely submitted bids will be turned over to the Contract Administrator. The Contract Administrator shall keep a written record of the bidder's names, the date and time the bid was received, the cost/price of the bid and the bidder's contact person. The written record kept by the Contract Administrator shall be a public document as defined in 1 M.R.S.A. §401. The bids received in response to an RFP, RFQ or PON shall be treated as confidential and not subject to public disclosure from the date of submission until notification of the contract award by the Contract Administrator. After the notification of the contract award, the bids become public documents.

F. Rejection of Noncompliant or Untimely Bids; Rejection of All Bids. The Efficiency Maine Trust shall reject all bids that do not comply with the requirements of this Chapter or the RFP, RFQ or PON, or that are not submitted before the deadline for submitting bids established pursuant to subsection B of this section. The Trust may reject all bids if it finds that the bids are unreasonably high in cost or that acceptance of any bid will not be in the public interest as determined by the Trust in accordance with the Triennial Plan and laws governing the Trust.

G. Evaluation and Selection

1. Proposal Review Team. Responses to each RFP, RFQ and PON will be reviewed and evaluated by an assigned Proposal Review Team. Each Proposal Review Team shall be comprised of a minimum of three persons. The chairperson of each Proposal Review Team shall be the Executive Director of the Efficiency Maine Trust, or the Executive Director's designee. The chairperson of each Proposal Review Team will select the other members of the Proposal Review Team. The other members may be members of the Trust staff or other persons who have training or experience relevant to the program or project for which the competitive bidding process is held.

2. Criteria. Evaluation and selection criteria will be listed in each RFP, RFQ or PON. Criteria may include, but are not limited to:

a. Cost.

b. For service providers, to the extent practicable, the extent to which the proposal promotes the development of resources, infrastructure and skills within the State.

c. Experience and qualifications.

d. Responsiveness to the solicitation.

e. Other criteria as the Executive Director of the Efficiency Maine Trust may determine consistent with the Triennial Plan and the laws governing the Trust.

3. Bid Review. Each member of the Proposal Review Team will individually review all bids based on the criteria established in the RFP, RFQ or PON. The Proposal Review Team will document the scoring and the substantive information that supports the scoring, and select the winning bidder(s).

4. Review Process. The Proposal Review Team may take any of the following steps, either with respect to all of the bids received, or to a subset of bids selected as superior to the others:

a. Consult with prior clients on the performance of bidder or particular persons proposed for the program or project.

b. Schedule presentations or interviews with representatives of the bidder or persons proposed for the program or project.

c. Conduct a review of past performance, including a review of reports, analyses, or other materials that would reflect on the bidder's performance.

d. Request additional data or material to support bids from any or all bidders.

5. Bidder Discussions. The Proposal Review Team may review bids and award a contract based on the bids received without discussion with any bidders, or may conduct limited discussions or negotiations with all bidders or a selected subset of bidders determined to have presented superior bids. The Proposal Review Team may review and score bids after any amendments to the bids as a result of the discussions or negotiations. The Proposal Review Team may enter into price negotiations for a "best and final offer" with selected bidders, prior to contract award. The Proposal Review Team will not substantially change the nature of the proposals sought by the RFP without notifying bidders and permitting all bidders to modify their bids.

6. Contract Award. The Proposal Review Team may make one or more contract awards to fulfill the requirements of the RFP, RFQ or PON. The contract award will be made to the highest rated proposal or proposals that conform to the requirements of the RFP, RFQ or PON.

7. Bid Rejection. The Proposal Review Team may summarily reject any bid that it finds contains false or misleading material information. The Contract Administrator may bar any entity or person that has submitted false or misleading material information as part of a bid from participating in any contract award for a period of up to three years.

8. Notification. The Efficiency Maine Trust shall notify all bidders responding to an RFP, RFQ or PON of the contract award decision in writing, postmarked or electronically mailed a minimum of 14 calendar days prior to contract effective date.

9. Contract Execution. After 14 calendar days from the contract award notification, the Executive Director of the Efficiency Maine Trust, or the Executive Director’s designee, shall execute a written contract with the winning bidder or bidders.

10. Final Approval. Standard agreements or other agreements, as described in Section 4, between the Efficiency Maine Trust and selected service providers or grant recipients shall be given final approval by the Executive Director of the Efficiency Maine Trust, at least seven calendar days prior to the proposed contract effective date.

11. Effective Date. The effective date of the agreement shall be the date the Executive Director approves the agreement.

H. Delegations. The authority to develop and issue RFPs, RFQs and PONs, and to otherwise administer the RFP, RFQ, and PONs processes as described in this section, is delegated to the Executive Director of the Efficiency Maine Trust.

§ 3 OTHER TYPES OF SOLICITATIONS

The Efficiency Maine Trust may select a service provider for one or more programs without employing a competitive bidding process if the Trust finds that the selection of the service provider by another solicitation process will promote the efficient and effective delivery of programs and is consistent with the objectives and overall strategy of the programs. Solicitations that do not employ competitive bidding processes may include:

A. Open Solicitations. The Efficiency Maine Trust may use an open solicitation to select multiple service providers for a program through an ongoing solicitation process. The open solicitation specifies the qualifications and requirements the service provider is required to meet. Service providers meeting these qualifications must complete a cooperative program agreement, as described in Section 4(C), with the Efficiency Maine Trust to provide the specified services.

B. Sole Source Procurements. The Efficiency Maine Trust may use a sole source procurement when: (1) the service provider has unique qualifications, resources, or experience; (2) there is not enough time to use a competitive bidding process; (3) the Trust finds that the program or required service would clearly benefit from a sole source procurement; or (4) the service provider is an identified partner in a grant proposal that has been submitted by and awarded to the Trust. The decision whether to use a sole source procurement for $10,000 or less is delegated to the Executive Director of Efficiency Maine Trust. The decision to use a sole source procurement for more than $10,000 will made by the Efficiency Maine Trust Board, or may be delegated on case-by-case basis by the Efficiency Maine Trust Board.

C. Low-Income Service Providers. For the delivery of conservation programs to low-income residential customers, the Efficiency Maine Trust may, without employing a competitive bidding process, use the delivery system of the Weatherization Assistance for Low-Income Persons Program administered through the United States Department of Energy and the network of for-profit and not-for-profit entities which deliver efficiency services to low-income and residential customers.

§ 4 TYPES OF AGREEMENTS

A. Standard Agreement. Except as allowed in subsections B through E, contracts between the Efficiency Maine Trust and service providers or grant recipients must be in writing and use the Efficiency Maine Trust standard agreement form. The completed standard agreement must describe the service to be performed, the terms and conditions agreed to by the parties, the cost of the service and how payment will be made.

B. Memorandum of Understanding (MOU). The Efficiency Maine Trust may use an MOU as an alternative to the standard agreement when implementing agreements with other government or quasi-governmental agencies.

C. Cooperative Program Agreement. The Efficiency Maine Trust may use a cooperative program agreement as an alternative to the standard agreement when implementing agreements with multiple service providers under an open solicitation for a program.

D. Cooperative Agreements. The Efficiency Maine Trust may use a cooperative agreement, or memorandum of agreement (MOA), when implementing agreements for cooperative efforts with the University of Maine System or the Maine Community College System.

E. Grant Agreement. The Efficiency Maine Trust may use a grant agreement when awarding a grant to a group, organization or other recipient. The grant agreement must describe the terms and conditions and scope of performance or action which is expected of the grant recipient.

§ 5 APPEALS OF CONTRACT AWARD DECISIONS

A. Request for Reconsideration. An aggrieved person may request a hearing for reconsideration of a contract award decision by filing a written petition with the Executive Director of the Efficiency Maine Trust within 14 calendar days of the notification of the contract award pursuant to Section 2(G)(8). The petition must meet the requirements of Section 5(B). When a petition is filed under this section, the Trust may not execute a contract with a winning bidder until the Trust has taken final agency action on the petition.

B. Petition. Each petition for a hearing to reconsider a contract award decision must contain the award decision being appealed, the name of the aggrieved person, the facts that make the petitioner an aggrieved person and the specific nature of the grievance, including the Appeal Criteria specified in Section 5(D). The Chair of the Board or the Chair’s designee shall grant a hearing to reconsider a contract award decision unless it is determined that:

1. The petitioner is not an aggrieved person;

2. The request was made more than 14 calendar days after notification of award; or

3. The request is capricious, frivolous or without merit.

The Chair of the Board or the Chair’s designee shall notify the petitioner in writing of the decision regarding the request for a hearing within 15 calendar days of receipt of the request. If a request for a hearing is granted, notification must be made at least 10 calendar days before the hearing date. The notification must include the date and location of the hearing and the names of the Appeal Committee members. In the event the request for hearing is denied, the notification shall constitute final agency action.

In the event that multiple petitions for a hearing to reconsider are granted on a single contract award, the Chair of the Board or the Chair’s designee may, at its discretion, consolidate all petitions that relate to a single contract award decision.

C. Appeal Committee. The Appeal Committee consists of a quorum of the Executive Committee of the Board or, as necessary due to conflicts of Executive Committee members, a quorum of the Board. A trustee who has served on the Proposal Review Team for a contract award may not serve on the Appeal Committee for an appeal of that award.

The Appeal Committee shall appoint a person to serve as presiding officer over the hearing. This person may be one of the Appeal Committee members or any other person who has no direct or indirect personal, professional or financial conflict of interest in the appeal. The presiding officer, if not from the ranks of the Appeal Committee, shall have no vote in the decision.

D. Review Criteria; Burden. The Appeal Committee will review, hold hearings on and decide all petitions to reconsider contract award decisions. A petition to reconsider a contract award decision will be denied unless the petitioner persuades the Appeal Committee that in making the contract award decision, the Proposal Review Team:

1. Committed a material violation of statute or law;

2. Committed irregularities resulting in fundamental unfairness; or

3. Acted in an arbitrary or capricious manner.

The evidence presented must specifically address and be limited to one or more of these criteria. Evidence of any type that cannot be related to these criteria may be ruled inadmissible by the presiding officer.

The petitioner has the burden of demonstrating that reconsideration should be granted.

E. Hearing Participants. The petitioner may participate alone or be represented by Counsel or other agent. The Proposal Review Committee shall be represented by the Trust and/or its counsel. Other contract award winning bidders may petition to intervene.Such petition to intervene shall be presented in writing to the Executive Director of the Trust who shall determine and allow or disallow participation in writing within 7 calendar days of receipt of the request to intervene. Copies of this notification of participation shall be sent to the Appeal Committee members, the presiding officer and the petitioner.

F. Hearing Procedures

1. The presiding officer shall control all aspects of the hearing, rule on points of order, and rule on all objections and may set time limits and question witnesses.

2. The petitioner must present evidence to substantiate the specific grievances stated in the appeal. Brief opening statements directed to the Appeal Committee may be made by the petitioner, the Proposal Review Team and any intervenors, in that order.

a. The petitioner shall present evidence first, using witnesses and exhibits who may be cross examined by the Proposal Review Team and the intervenors. Re-direct questioning related to issues raised during cross examination only may be done by the petitioner, followed by re-cross examination by the Proposal Reviews Team and intervenors.

b. Witnesses may be called who can present factual information related directly to the appeal. All witnesses shall be sworn. To expedite the proceeding, testimony of any witness may be pre-filed in written form. If used, pre-filed testimony must be made available to the Proposal Review Team, the Appeal Committee, presiding officer and all intervenors on the preceding work day, a minimum of twenty-four (24) hours prior to the hearing. Every such witness shall be subject to cross examination.

c. Exhibits relating to any issue of fact in the proceeding may be presented. Documentary evidence may be incorporated into the record by reference when the materials so incorporated are made available for examination by the parties before being received in evidence. The petitioner must furnish copies of all documentary evidence to the presiding officer, Appeal Committee, the Proposal Review Team and all intervenors. Any costs associated with this subparagraph are the responsibility of the petitioner and shall not be recovered by any judgement of the Appeal Committee.

3. The Proposal Review Team and all intervenors shall have the opportunity to submit evidence relevant to the appeal through witnesses and exhibits. The procedures for presenting this evidence are the same as those for the petitioner, substituting the words "Proposal Review Team" or "intervenor" for petitioner. The order of examination and cross examination when the Proposal Review Team presents evidence is Proposal Review Team, all intervenors, and the petitioner. The order of the examination and cross examination when an intervenor presents evidence shall be remaining intervenors (if any), the Proposal Review Team and the petitioner.

4. The Appeal Committee may ask questions for clarification at any point throughout the direct and cross examinations. In addition, the Appeal Committee may ask questions after the direct and cross examination, may request additional witnesses, and may recall any witness for additional questioning.

5. All evidence received or considered shall be part of the record. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The presiding officer may exclude irrelevant or unduly repetitious evidence. No sworn written evidence shall be admitted unless the author is available for cross examination, except for good cause shown.

G. Additional argument. The Appeal Committee or presiding officer on its own motion or at the request of the petitioner may require additional written argument, hold an oral argument, or hold an additional hearing on the petition. The presiding officer shall invite a representative of the contract award winning bidder to participate in any additional review of a contract award.

H. Decision. The Appeal Committee shall consider all evidence entered into the record and shall determine whether the petitioner has established by a preponderance of the evidence that one or more of the standards set forth in Section 5(D) of these rules has been proven. On the basis of the record, the Appeal Committee may:

1. Deny the petition to reconsider and uphold the contract award decision; or

2. Reverse the contract award decision if it finds that the petitioner has made the demonstration required under Section 5(D) of these rules. If the Appeal Committee decides to reverse the contract award decision, the Efficiency Maine Trust Board may then:

a. Remand the matter to the original or a newly constituted Proposal Review Team to review the bids and award a contract consistent with the written decision of the Appeal Committee;

b. Decide to issue a new RFP, RFQ or PON and begin a new selection process; or

c. Decide not to proceed with the program or project.

I. Notice of Decision; Final Agency Action. The Appeal Committee or the presiding officer if so designated by the Committee shall notify the petitioner, the Proposal Review Team and all intervenors of its decision in writing within 15 calendar days following the final day of the hearing. Notification of the decision of the Appeal Committee regarding the petition to reconsider a contract award decision constitutes final agency action.

§ 6 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Efficiency Maine Trust may to the extent permitted by law, where good cause exists, waive any of the requirements of this Chapter that are not required by statute, except for the requirements of Section 5 which may not be waived. Any request for a waiver from any requirement of this Chapter shall be made in writing to the Executive Director of the Efficiency Maine Trust. Upon a finding of good cause or that compliance with the requirement in question would be unduly burdensome, the Executive Director of the Efficiency Maine Trust or its designee may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of or impair the policies of this Chapter and of Title 35-A Chapter 97 or Chapter 99 and other applicable law.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 10105(4), 10105(5), 10110(3), 10111(3), 10119(3), 10154, 10155, 10159.
• EFFECTIVE DATE: This Emergency Chapter was approved as to form and legality by the Attorney General on July 1, 2010. It was filed with the Secretary of State on July 7, 2010 and became effective on July 7, 2010.
• EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on September 29, 2010. It was filed with the Secretary of State on September 29, 2010 and became effective on October 4, 2010, filing 2010-455.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 2 Administration of Trust, Budgeting, Project Selection Criteria and Procedures, Monitoring, and Evaluation Requirements

Code Me. R. 95-648 Ch. 2 Administration of Trust, Budgeting, Project Selection Criteria and Procedures, Monitoring and Evaluation Requirements {#sec-95-648-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 2}

SUMMARY: This Chapter establishes administrative and operational requirements for the activities of the Energy and Carbon Savings Trust and its grantees. It includes provisions governing the management of competitive bid processes undertaken by the Trust and of post-grant award evaluation and monitoring of programs and projects funded by the Trust.

Section 1: PURPOSE 2

Section 2: DEFINITIONS 2

Section 3: DEVELOPMENT OF PROGRAM BUDGETS 4

Section 4: GENERAL DESIGN CRITERIA 6

Section 5: THRESHOLD CRITERIA FOR PROPOSAL SCREENING 7

Section 6: CONTRACT APPLICATION PROCESS 9

Section 7: CONTRACT SELECTION PROCESS 10

Section 8: GRANTEE REPORTING AND MONITORING 10

Section 9: INDEPENDENT PROGRAM EVALUATION 11

Section 10: TRIENNIAL ENERGY EFFICIENCY & CONSERVATION PLAN 11

Section 11: PROCEDURES FOR REBATES TO CONSUMERS 12

Section 12: WAIVER OR EXEMPTION 12

Section 1: PURPOSE

The purpose of this Chapter is to implement 35-A M.R.S.A. §10008 and P.L. 2007, C. 317, §18 by establishing the criteria to be used by the Trust in selecting grantees, the requirements for ensuring cost-effectiveness of programs and projects funded by the Trust and procedures for the evaluation of expenditures by an independent entity.

Section 2: DEFINITIONS

For the purposes of this Chapter, the following terms have the following meanings:

A. Administrative Costs. “Administrative Costs” means costs of the Trust and the Department that are incurred pursuant to 35-A M.R.S.A. §10008 including but not limited to costs of program planning and oversight, costs of securing necessary expertise, costs associated with contract formation and administration, costs of monitoring and costs of enforcing contractual obligations.

B. Applicant. “Applicant” means an individual, business, organization, agency or any other entity that submits an application for funding from the Trust Fund administered by the Trust in response to an RFP or PON.

C. Bid. “Bid” means a response to an RFP or PON issued by the Trust.

D. Bidder. “Bidder” means a person or entity that submits a bid.

E. Carbon Dioxide Allowance. “Carbon Dioxide Allowance” means a limited authorization by the Department for the emission of up to one ton of carbon dioxide.

F. Carbon Dioxide Budget Unit. “Carbon Dioxide Budget Unit” means a fossil fuel fired generating unit that serves a generator with a nameplate capacity equal to or greater than 25 megawatts.

G. Collateral Efficiency Opportunity. “Collateral Efficiency Opportunity” means one or more efficiency measures, in addition to a primary measure to be installed at a customer location or building site, that has a positive benefit-to-cost ratio pursuant to section 5 of this Chapter and that can reasonably be installed at the same time and at lower cost than would otherwise occur, provided there is a physical, mechanical or other substantial nexus between the primary measure and the collateral efficiency opportunity.

H. Commission. “Commission” means the Maine Public Utilities Commission.

I. Cost Effectiveness Criteria. “Cost Effectiveness Criteria” are tests employed by the Trust in determining whether a project or program expenditure is cost effective, pursuant to section 3(D) of this Chapter.

J. Customer Class. “Customer Class” means one of the categories of end-use customers of a transmission and distribution utility.

K. Department. “Department” means the Department of Environmental Protection, State of Maine.

L. Efficiency Maine. “Efficiency Maine” means electricity conservation programs as administered pursuant to 35-A M.R.S.A. §3211-A.

M. Electricity Conservation Program. “Electricity Conservation Program” means a set of services, measures and/or incentives funded by the Trust that reliably reduces the consumption of electricity in the State.

N. Forward Capacity Market. “Forward Capacity Market” means the program that presently is in effect that compensates providers of electrical capacity with payments for the availability or reduction of capacity requirements as determined by the regional transmission organization.

O. Fossil Fuel. “Fossil Fuel” means natural gas, petroleum, coal or any form of solid, liquid or gaseous material derived from such material.

P. Fossil Fuel Conservation Program. “Fossil Fuel Conservation Program” means a set of services, measures and/or incentives funded by the Trust that reliably reduces greenhouse gas production by the combustion or distribution of fossil fuels through energy efficiency and conservation.

Q. Grantee. “Grantee” means the recipient of Trust funding by means of a grant from the Trust.

R. Maine Energy Conservation Board. “Maine Energy Conservation Board” means the board established pursuant to 35-A M.R.S.A. §10007 to assist in the development, coordination and integration of planning for the State’s energy conservation efforts and to provide advice and counsel to the Commission and the Trust on carbon dioxide reduction matters.

S. Measure. “Measure” means a device or application that is installed resulting in an improvement in the efficiency of energy consumption and/or a reduction in greenhouse gas emissions.

T. Office of Energy Independence and Security. “Office of Energy Independence and Security” means the office established pursuant to 2 M.R.S.A. §9.

U. Program Administrator. “Program Administrator” means the employee or other designee of the Trust designated to administer contracts between the Trust and service providers and other vendors and consultants.

V. Program Opportunity Notice. “Program Opportunity Notice” or “PON” means a document in which the Trust identifies a market sector, geographic area or technology type and solicits proposals from applicants for cost-effective electricity or fossil fuel conservation programs targeted at that sector, area or technology.

W. Project. “Project” means a proposal for achieving kilowatt-hour or emission reductions that is customized to achieve efficiencies at a single location or facility and that seeks Trust funds in excess of $75,000 unless this limitation is waived by the trustees for good cause.

X. Proposal. “Proposal” has the same meaning herein as the term “bid”.

Y. Regional Organization. “Regional Organization” means the entity that manages the Regional Greenhouse Gas Initiative on a regional basis and with which the Department contracts for related service.

Z. Regional Transmission Organization. “Regional Transmission Organization” means the independent system operator that administers and oversees the wholesale electric markets in which the State participates.

AA. Request for Proposal. “Request for Proposal” or “RFP” means a document in which the Trust lists: the scope of work for a requested service, such as a program or a project; other requirements of the Trust; and the technical and bid evaluation criteria for selection of a grantee.

BB. Service Provider. “Service Provider” means a public or private provider of energy conservation services funded by the Trust or an entity selected by the Trust to contract with such providers or otherwise arrange for the delivery of electricity or fossil fuel conservation programs

CC. Trade Association Aggregator. “Trade Association Aggregator” means an entity that gathers individual members of a trade association together for the purpose of receiving electrical efficiency services or bidding on electrical efficiency contracts.

DD. Transmission and Distribution Utility. “Transmission and Distribution Utility” means a transmission and distribution utility as defined in 35-A M.R.S.A. §3201, §§ 6, 12 or 16.

EE. Triennial Energy Efficiency Plan. “Triennial Energy Efficiency Plan” or “Triennial Plan” means a plan adopted pursuant to 35-A M.R.S.A. §10007(6).

FF. Trust. “Trust” means the Energy and Carbon Savings Trust established pursuant to 35-A M.R.S.A. §10008.

GG. Trust Fund. “Trust Fund” means the fund established to implement the Trust.

HH. Trustee. “Trustee” means a trustee of the Trust.

Section 3: DEVELOPMENT OF PROGRAM BUDGETS

A. Budget Planning. The trustees shall establish a twelve-month budget for all Trust operational and administrative costs following consultations with the Department, the Commission, the Office of Energy Independence and Security and the Maine Energy Conservation Board. The twelve-month period for a budget shall be determined by the trustees, need not correspond to the State fiscal year or a calendar year and shall to the extent possible, unless changed circumstances warrant otherwise, reflect the priorities established in the most recent Triennial Energy Efficiency and Conservation Plan adopted pursuant to 35-A M.R.S.A. §10007(6) and §10008(7). Any individual program areas targeted for funding in the budget period shall be identified.

B. Budget Components. Each twelve-month budget shall include but is not limited to the following components:

1. Expected total amount of funding in the Trust Fund from all sources, including any revenue generated by Trust-funded programs pursuant to subsection G of this section;

2. Costs of administering the Trust, and for the State’s share of expenses of the Regional Organization’s management of carbon dioxide allowance auctions during the budget period, provided that such costs may not exceed the ceiling on administrative funds established at 35-A M.R.S.A. §10008((6)(G);

3. Amount of funding expected to be available for programs or projects selected through an RFP, PON or other authorized process and awarded to grantees;

4. Amount of funding required by the Department to fund research for development of new categories of carbon dioxide emission offset projects pursuant to 35-A M.R.S.A. §10008(6);

5. Amount of funding expected to be provided to the Maine Energy Conservation Board pursuant to 35-A M.R.S.A. §10008(6)(K);

6. Amount of funding to be held in reserve in the current budget year, for use in a future twelve-month period or to be rebated to customers of transmission and distribution utilities pursuant to 35-A M.R.S.A. §10008(5); and

7. Any other amount of funding that the Trust intends to disburse in the budget year.

C. Sector Participation. To the extent practicable, the trustees will seek to ensure opportunity for members of all customer classes of transmission and distribution utilities and all economic sectors of the State to apply for funding from the Trust and to achieve balance in the award of contracts for projects and programs among such classes and sectors. In seeking to achieve such balance, the trustees may consider whether and to what extent it may be achieved through reliance on other sources of public funding available to a customer class.

D. Funding Criteria. Except when otherwise allowed by sections 4(B) and 4(C) of this Chapter, priority for funding under section 7 of this Chapter shall be given to programs and projects that:

1. Reliably reduce greenhouse gas production by fossil fuel combustion in the State at a cost in Trust Funds per unit of emissions that is lower than other bids or proposals; or

2. Reliably reduce the consumption of electricity in the State at a cost in Trust Funds per kilowatt-hour saved that is lower than other bids or proposals provided that the Trust may calculate reductions in greenhouse gas emissions and reductions in consumption of electricity on a basis other than simply reductions from current levels when the Trust determines it is appropriate to calculate reductions from the level of greenhouse gas emissions or consumption of electricity that would exist if alternative, less efficient technologies were used for the program or project instead of the technologies proposed by the applicant.

E. Trustee Discretion; Targeting of Funds. The trustees may target programs or individual projects to a particular geographic area of the State, to a particular customer class or a particular subset of a customer class, and to a particular sector of the State’s economy, provided that any such program or project must satisfy the threshold test for screening and evaluation that is set out in section 5 of this Chapter. For purposes of this subsection, the determination as to whether the cost effectiveness test set out in subsection D of this section has been satisfied will be made in relationship to other programs or projects in the same customer class or subset of a customer class, in the same sector of the economy or in the same geographic area.

F. Fossil Fuel Expenditure Cap. In any budget year, the trustees may not allocate a larger amount of the actual and projected Trust Fund dollars to fossil fuel conservation programs than is allowed by 35-A M.R.S.A. §10008(6)(B).

G. Revenue Generated by a Trust-funded Project or Program. In the case of a project or program that receives revenue from a Forward Capacity Market, from a Regional Transmission Organization or any other entity, that would not have been received in the absence of Trust funding, such revenue belongs to the Trust on the basis of Trust funding pro rata to the project’s or program’s total costs.

Section 4: GENERAL DESIGN CRITERIA

A. Design Criteria for Projects and Programs. Subject to the provisions of sections 6 and 7 of this Chapter, the trustees shall only consider for funding electricity and fossil fuel conservation projects and programs that have net present value benefit-to-cost ratios greater than 1.0 pursuant to section 5 of this Chapter and, among proposals that fulfill that screening criterion, shall make final selections of grantees based on section 7(C) of this Chapter.

B. Collateral Efficiency Opportunities for Programs. In the case of programs that involve collateral efficiency opportunities as defined in section 2(G) of this Chapter, applications for funding such programs must supply the information required in section 6(D) of this Chapter. If the program would satisfy the cost-effectiveness test in section 3(D) of this Chapter without the collateral efficiency opportunities, the trustees may fund the program with one or more of the collateral efficiency opportunities included, even if section 3(D) would not be satisfied with the inclusion of the collateral efficiency opportunities. In making this decision, the trustees may consider whether the collateral efficiency opportunities would likely be lost if not funded in connection with the program.

C. Collateral Efficiency Opportunities for Projects. In the case of applicants seeking funding for projects as defined in section 2(W) of this Chapter, the trustees shall allow project applicants proactively to identify possible collateral efficiency opportunities, along with one or more separate requests for Trust funding of such opportunities. The trustees may propose to the applicant the inclusion of one or more such opportunities, along with sufficient additional funding to cover the costs of pursuing those opportunities.

D. Coordination with Triennial Energy Efficiency Plan or Interim Plan. Subject to the provisions of section 10 of this Chapter, the trustees shall seek to fulfill the purposes and goals of any Interim or Triennial Energy Efficiency Plan that is adopted for a budget year or a three-year budget cycle, as it pertains to Trust-funded programs.

E. Reliance on Other Competitive Bid Processes. In selecting a service provider or grantee, the trustees may, in their discretion, rely upon the outcome of a competitive bid process undertaken for selection of service providers or grantees for Efficiency Maine programs.

Section 5: THRESHOLD CRITERIA FOR PROPOSAL SCREENING

A. Programs or Projects Designed to Reduce Electricity Consumption

1. Modified Societal Test. Eligibility to be considered for funding pursuant to section 4(A) of this Chapter for a program or project designed to reduce kilowatt-hour consumption shall be determined by means of this subsection. Electricity conservation programs that are reasonably likely to have a positive net present value will be deemed to have passed the threshold test for eligibility to compete for funding by the Trust. Costs and benefits will be considered regardless of whether they are paid or experienced by the participant, the Trust or any other individual, business, government agency or other entity.

2. Program Benefits. The test that is applicable for screening applications for Trust funding is a modified societal test under which program benefits include, without limitation, the following:

a. Electric generation costs that will not be incurred as a result of the program or project. These include energy and capacity costs, using estimates of market prices and adjusting for line losses. These estimates may be differentiated by time periods that influence market prices, including but not limited to peak and off-peak periods and summer and winter periods;

b. Transmission and distribution costs that will not be incurred as a result of the program or project, using estimates of transmission and distribution utility marginal transmission and distribution costs. These estimates may be differentiated by time periods that influence costs;

c. Fossil fuel costs that will not be incurred as a result of the program or project, using estimated savings in oil, gas or other fossil fuel use at estimated fossil fuel prices;

d. Other resource benefits, such as reduced water and sewer costs; and

e. Non-resource benefits such as reduced operations and maintenance costs, job training opportunities and workforce development, general economic development and environmental benefits, to the extent that such benefits can be accurately and reasonably quantified and attributed to the program or project.

3. Program Costs. Program costs will include the following:

a. Direct program costs, including program design, administration, implementation, marketing, evaluation and other reasonably identifiable costs associated with the program or project;

b. Measure costs, such as the incremental costs of an energy efficiency measure, including installation, over an equivalent baseline measurement, in the case of new construction or replacement programs. In the case of retrofit programs, measure costs are the full costs of the energy efficiency measure, including installation, less any salvage value for the replaced measure; and

c. Ongoing customer costs, including costs such as increased operation and maintenance costs and lost economic development opportunities, to the extent that such costs can be accurately and reasonably quantified and attributed to the program or project.

4. Net Present Value. Satisfaction of the modified societal test shall be determined based on the net present value of the costs and benefits over the expected life of each measure. The discount rate used for present value calculations shall be the current yield of long-term U.S. Treasury securities (ten years or more), adjusted for inflation.

5. Post-program effects. For those programs or projects that are expected to influence the development of self-sustaining markets, calculations under this section will be for a reasonable additional period after the program is terminated in order to capture post-program market effects.

B. Programs or Projects Designed to Reduce Greenhouse Gas Emissions

1. Modified Societal Test. Eligibility to be considered for funding pursuant to section 4(A) of this Chapter for fossil fuel conservation programs shall be determined by this subsection. Fossil fuel conservation programs and projects that are reasonably likely to have a positive net present value will be deemed to have passed the threshold test for eligibility to compete for funding by the Trust. Costs and benefits will be considered regardless of whether they are paid or experienced by the participant, the Trust or any other individual, business, government agency or other entity.

2. Program Benefits. The test that is applicable for screening applications for Trust funding is a modified societal test under which program benefits include, without limitation, the following:

a. Reduced greenhouse gas emissions measured in reductions by ton in loading of carbon dioxide or other greenhouse gases in the atmosphere from locations in the State;

b. Fossil fuel costs that will not be incurred as a result of the program or project, using estimated savings in oil, gas or other fossil fuel use, at estimated fossil fuel prices;

c. Other resource benefits, such as the value of reduced water and sewer costs and reduced electrical consumption; and

d. Non-resource benefits, such as reduced operations and maintenance costs, job training opportunities and workforce development, general economic development and environmental benefits, to the extent that such benefits can be accurately and reasonably quantified and attributed to the program or project.

3. Program Costs. Program costs will be the same as identified in subsection (A)(3) of this section.

4. Net Present Value. Satisfaction of the modified societal test shall be determined in a manner identical to subsection (A)(4) of this section.

5. Post-Program Effects. Post-program effects will be determined in a manner identical to subsection (A)(5) of this section.

Section 6: CONTRACT APPLICATION PROCESS

A. Applications for Contracts with the Trust. The trustees shall periodically conduct a competitive bid process by means of a RFP or PON that solicits bids for contract awards pursuant to section 7 of this Chapter. To the extent practicable, the Trust will accept bids electronically. The Program Administrator will accept and retain custody of all timely bids under this section. For each bid, the Program Administrator shall keep a written record of the bidder’s name, the date and time that the bid was received, the cost and/or price of the bid, any amount of customer funding or non-Trust matching funds and the bidder’s contact person. The bids received in response to an RFP or a PON shall be treated as confidential and not subject to public disclosure until the date of a final contract award in that competition. Upon a showing by a bidder that legal grounds exist to maintain the confidentiality of identified information beyond the contract award date, the Trust shall continue to treat that information as confidential after that date, to the extent permitted by law.

B. Rejection of Noncompliant or Untimely Bids; Rejection of All Bids. The Trust may reject all bids that do not comply with the requirements of this Chapter or of the RFP competition or PON process, or that are not submitted before the deadline for submitting bids established pursuant to section 7 of this Chapter. The Trust may reject all bids if it finds that the bids are unreasonably high in cost or that acceptance of any bid will not be in the public interest.

C. Notice of RFP and PON. The Program Administrator will maintain a service list of persons who are to be notified whenever the Trust issues an RFP or PON. The Trust will reasonably advertise each RFP or PON and arrange its posting on any website established for the Trust.

D. Treatment of Opportunities for Collateral Efficiency. Each bid for a program must supply the necessary information for the cost effectiveness criteria set out in section 3(D) of this Chapter to be applied both to the program standing alone, and for an expanded program that includes significant collateral efficiency opportunities at the same customer location or site. In evaluating bids and proposals in a competitive bid process or a PON when the benefits of two such bids or proposals are relatively equivalent, the trustees may give preference to applications that secure efficiency improvements or emission reductions from both primary measures and from collateral efficiency opportunities.

Section 7: CONTRACT SELECTION PROCESS (Note: this section was repealed by filing 2010‑457 effective October 4, 2010.)

Section 8: GRANTEE REPORTING AND MONITORING

A. Reporting. Each grantee who has received a contract award from the Trust is responsible for submission of reports in writing to the Program Administrator, on a schedule for reporting determined by the Trust, with the following information and such other information as the Program Administrator may prescribe:

1. Total amount of estimated reductions of greenhouse gas emissions as a result of Trust-funded programs or projects; and

2. Total amount of actual reductions in consumption of electricity in kilowatt-hours and, when known, reductions in kilowatts of peak electrical demand as a result of Trust-funded programs or projects.

B. Additional Reporting Requirements for Programs. Each grantee who has received a contract award for a program must also provide the following additional information to the Trust’s Program Administrator and such other information as the Program Administrator may prescribe:

1. In the case of programs affecting carbon dioxide budget units or other sources emitting greenhouse gasses, specification of all improvements in carbon dioxide emissions and/or energy efficiency;

2. The possibility of maximizing savings resulting from the methodology of a particular grantee if that methodology were to applied in a systematic manner to suitable locations throughout the State; and

3. The extent to which the grantee has served customers in more than one customer class of a transmission and distribution utility or more than one sector of the State’s economy.

C. Monitoring. Each grantee will accommodate periodic visits by Trust employees or contractors for the purpose of verifying the accuracy of quarterly reports and the cost-effectiveness of programs and projects paid for by the Trust.

Section 9: INDEPENDENT PROGRAM EVALUATION

A. Periodic Evaluation of Trust-funded Programs and Projects

The Trust shall arrange for the performance of periodic and comprehensive evaluations of the cost-effectiveness of all programs and projects that it has funded pursuant to this Chapter. These evaluations shall be undertaken by means of contracts with one or more independent program evaluators establishing the criteria for evaluation of grantees, areas of particular scrutiny and levels of sampling for verification of estimates and required deliverables in the contractor’s final report to the Trust. Each evaluation must include an audit of the program or project and an evaluation of its effectiveness in meeting the goals of this Chapter.

B. Periodic Competitive Bid Processes. The Trust will select one or more independent program evaluators in a manner consistent with section 7 of this Chapter. No current employee of the Trust, the Commission, the Department, the Office of Energy Independence and Security or Efficiency Maine is eligible to participate as part of a bid submitted in a competitive bid process under this section.

C. Scheduling of Independent Program Evaluation. The trustees may establish any schedule for conducting an Independent Program Evaluation of major programs and projects as long as the Independent Program Evaluation is completed prior to the commencement of the second or subsequent Triennial Plan under section 10 of this Chapter. For the purposes of this section, “major programs and projects” means activities funded with an annual budget of $500,000 or more.

Section 10: TRIENNIAL ENERGY EFFICIENCY AND CONSERVATION PLAN

A. Plan Preparation. The trustees shall participate in the preparation and adoption of a periodic Triennial Energy Efficiency and Conservation Plan. An initial draft of the components of a Plan to be funded by the Trust shall be undertaken in conjunction with the Maine Energy Conservation Board, pursuant to 35-A M.R.S.A. §§10007(6) and 10008(7) and the final Plan shall be presented to the Board for its review.

B. Plan Adoption. The trustees may designate employees, staff or contractors of the Trust to participate in the preparation of a Triennial Plan or to substitute for one or more trustees in the Plan’s preparation, provided that the vote required of each trustee in the final adoption of a Triennial Plan must be made by that trustee.

C. Interim Plan. Prior to the adoption of the first Triennial Energy Efficiency and Conservation Plan pursuant to this Chapter, the trustees shall cooperate with the Maine Energy Conservation Board in consultation with the Department, the Office of Energy Independence and Security and the Commission to create an Interim Plan establishing general program areas in which individual bid competitions, RFP’s, PON’s and sole source contract arrangements may be undertaken with service providers during the budget year. In designating program areas in an Interim Plan, the trustees may consider the following:

1. Potential to develop capacity for the delivery of cost-effective programs in the future in a more economical and efficient manner by funding programs that demonstrate program feasibility and are likely to reduce delivery and oversight costs in the future;

2. Promotion of job training, workforce development and general economic development in the State where practicable, consistent with the Trust’s legislative authority pursuant to 35-A M.R.S.A. §10008;

3. Consistency with delivery models in other states participating in the Regional Greenhouse Gas Initiative in order to permit service providers to offer programs or projects benefiting from increased economies of scale; and

4. Record of program successes, in this State or elsewhere; that increase the likelihood of more rapid implementation, increased cost effectiveness or the capture of collateral efficiency opportunities if a specific program, project or service receives Trust funding.

Public Comment. Prior to adopting the components of the Interim Plan or of a Triennial Plan, the trustees will solicit and accept comment from the public.

Section 11: PROCEDURES FOR REBATES TO CONSUMERS

A. Department Notice. At such time as the Trust receives notice from the Department that carbon dioxide allowances have traded in an auction conducted by the Regional Organization at a level in excess of the statutory emission allowance value established pursuant to 35-A M.R.S.A. §10008(5), the trustees shall request that the Department quantify in writing the total amount of revenue for which the State is eligible in that auction that corresponds to proceeds above that level.

B. Trust Transfer. The trustees shall cooperate with the Commission in arranging for the transfer to the Commission of the amount identified in the preceding subsection.

Section 12: WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or on its own motion, the Trust may waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or 35-A M.R.S.A. §10008. Where good cause exists, the Trust or its designee may grant the requested waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §10008 et seq.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 12, 2009. It was filed with the Executive Director of the Legislative Council as a Major Substantive Rule and was provisionally adopted by the Energy and Carbon Savings Trust (94-078 Ch. 2) on December 31, 2008. Following enactment of legislation approving the rule as filed with one amendment at section 3(D), the final amended rule was filed with the Secretary of State on May 29, 2009 (filing 2009-209) for effectiveness on June 28, 2009.
• HISTORY NOTES FROM THE SECRETARY OF STATE: PROPOSAL under 94-078, ENERGY AND CARBON SAVINGS TRUST:
• HISTORY NOTES FROM THE SECRETARY OF STATE: Published November 12, 2008 as 2008-P315 (major substantive)
• HISTORY NOTES FROM THE SECRETARY OF STATE: Deadline for comments: December 15, 2008
• PROVISIONAL ADOPTION (MAJOR SUBSTANTIVE): Filed January 12, 2009 as LR-2009-4
• FINAL ADOPTION (MAJOR SUBSTANTIVE): Accepted for filing May 6, 2009 as 2009-185, to be effective June 5, 2009
• FINAL ADOPTION (MAJOR SUBSTANTIVE): Corrected filing accepted May 29, 2009 as 2009-209, effective June 28, 2009
• FINAL ADOPTION (MAJOR SUBSTANTIVE): TRANSFERRED by P.L. 2009 Ch. 372 (eff. June 12, 2009) to 95-648, Efficiency Maine Trust
• AMENDED: October 4, 2010 – Section 7 repealed, filing 2010-457
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 3 Electric Efficiency and Conservation Programs (formerly Ch. 380)

Code Me. R. 95-648 Ch. 3 Electric Efficiency and Conservation Programs {#sec-95-648-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 3}

SUMMARY: This Chapter implements portions of the requirements of the State’s electric efficiency and conservation program administered by the Efficiency Maine Trust.

§ 1 PURPOSE 3

§ 2 DEFINITIONS 3

A. Administrative costs 3

B. Administrative fund 3

B-1. Board. 3

B-2. Beneficial electrification 3

B-3. Commission.. 3

C. Conservation programs 3

D. Low-income residential consumer 3

D-1. Maximum Achievable Cost-Effective Energy Efficiency (MACE) 3

E. Measure 3

F. Participant 4

G. Program fund 4

H. Small business consumer 4

I. Triennial Plan……………………………………………………………………………...4

J. Utility Procurement Order… 4

§ 3 CONSERVATION PROGRAMS 4

A. Criteria for Conservation Programs 4

B. Triennial Plan 5

C. Conservation Program Portfolio Requirements 7

§ 4 COST-EFFECTIVENESS TESTS 7

A. Cost-Effectiveness Test 7

1. Program benefits 7

2. Program costs 7

3. Discount rate assumption 8

4. Net present value 8

5. Post-program effects 8

6. Incentive Level Limitation 8

B. Non-Quantifiable Cost-Effectiveness Test 8

§ 5 FUNDING 9

A. Funds held in trust 9

B. Procurement of all cost-effective energy efficiency resources 9

C. Inclusion of procurement budgets in rates………………………………………………...9

D. Determining reliable reduction of electricity rates………………………………………..9

E. Conservation Program Fund 10

§ 6 WAIVER OR EXEMPTION 11

§ 1 PURPOSE

The purpose of this Chapter is to implement portions of the requirements of the State’s electric energy efficiency and conservation program administered by the Efficiency Maine Trust (the Trust). The Chapter establishes the definition of low-income customer, the definition of small business customer, and the definition of cost effectiveness.

§ 2 DEFINITIONS

A. Administrative costs. “Administrative costs” means costs of the Trust that are funded pursuant to and associated with the implementation of 35‑A M.R.S.A. § 10110, including, but not limited to, costs of program planning and evaluation, costs of securing necessary administrative expertise, costs associated with contract formation and administration and costs of monitoring and enforcing contractual obligations.

B. Administrative fund. "Administration fund" means the conservation administration fund established by the Trust pursuant to 35-A M.R.S.A. § 10110(8).

B-1. Board. “Board” means the Board of Trustees of the Efficiency Maine Trust.

B-2. Beneficial electrification. “Beneficial electrification” means electrification of a technology or process that results in reduction in the use of a fossil fuel, including electrification of a technology or process that would otherwise require energy from a fossil fuel, and that provides a benefit to a utility, a ratepayer or the environment, without causing harm to utilities, ratepayers or the environment, by improving the efficiency of the electricity grid or reducing consumer costs or emissions, including carbon emissions.

B-3. Commission. “Commission” means the Maine Public Utilities Commission.

C. Conservation programs. "Conservation programs" means programs developed by the Trust pursuant to 35-A M.R.S.A. § 10110 and this Chapter designed to reduce inefficient electricity use.

D. Low-income residential consumer. “Low-income residential consumer” means a customer of a transmission and distribution utility receiving benefits under the utility’s program to assist low-income customers, or a household that has qualified at any time in the prior 12 month period to receive assistance through any state or federal program in which low income and/or limited assets are criteria for eligibility.

D-1. Maximum Achievable Cost-Effective Energy Conservation (MACE). “ Maximum Achievable Cost-Effective Energy Conservation” or “MACE” means all cost-effective, reliable, and achievable energy conservation savings for purposes of 35-A M.R.S.A. §§ 10104(4) and 10110(4-A). In this Chapter, the term MACE applies to a quantity of energy savings and a budget for Trust programs that is reasonably likely to achieve that savings.

E. Measure. “Measure” means a device, application, operation, or any combination thereof, that is installed or implemented and that improves energy efficiency.

F. Participant. “Participant” means a customer who directly takes part in a Conservation Program.

G. Program fund. “Program fund" means the conservation program fund established by the Trust pursuant to 35-A M.R.S.A. § 10110(7).

H. Small business consumer. “Small business consumer” means a non-residential customer of a transmission and distribution utility that is designated in the utility’s distribution rates, based on the customer’s energy usage at a specific location or on a specific account, to receive general service through the customer class reserved for small non-residential users, including where applicable the small general service and the medium general service customer classes. This excludes any commercial utility accounts designated for large customers, customers who take power at the transmission or sub-transmission voltage, street or area lighting only, space or water heating only, municipal water pumping, agricultural produce storage, or snow making. If the utility does not make such designations in its accounts or billing, then the Trust may extend the definition to a business customer that employs 50 or fewer full-time equivalent employees across all locations in Maine, giving consideration to the average number of employees that the business employs annually.

I. Triennial Plan. “Triennial Plan” means the detailed, triennial, energy efficiency, beneficial electrification, alternative energy resources and conservation plan developed by staff of the Trust, approved by the Board, and then approved by the Commission consistent with the provisions of 35-A M.R.S.A. §10104 subsections (4) and (6).

J. Utility procurement order. “Utility procurement order” means the procurement amount to be paid by each transmission and distribution utility to the Trust each fiscal year of the Triennial Plan period, per the order of the Commission after approving the MACE budget and netting out other funding streams allocated to the MACE budget by the Board in the Trust’s Triennial Plan.

§ 3 CONSERVATION PROGRAMS

A. Criteria for Conservation Programs

1. The Trust shall consider, without limitation, conservation programs that:

(a) Increase consumer awareness of cost-effective options for conserving energy;

(b) Create more favorable market conditions for the increased use of energy-efficient products and services; and

(c) Promote sustainable economic development and reduced environmental damage.

(d) Reduce the price of electricity over time for all consumers by reducing or shifting demand for electricity or balancing load, including by the implementation of beneficial electrification and energy storage systems;

(e) Reduce total energy costs for electricity consumers in the State by increasing the efficiency with which electricity is consumed; and

(f) Are planned and implemented to advance the policy of beneficial electrification as described in the Beneficial Electrification Policy Act at title 35-A of Maine Revised Statutes, chapter 38.

2. The Trust shall:

(a) Target at least 10% of available program funds or $2.6 million, whichever is greater, to programs for low-income residential consumers;

(b) Target at least 10% of available program funds or $2.6 million, whichever is greater, to programs for small business consumers;

(c) To the greatest extent practicable, apportion remaining available funds among customer groups and geographic areas in a manner that allows all othercustomers to have a reasonable opportunity to participate in one or more conservation programs;

(d) Notwithstanding the foregoing provisions of this sub-section, the Trust may target funds received in the electric conservation program fund pursuant to §5(C)(4) of this chapter, including any funds aimed at developing non-transmission or non-distribution alternatives, to a particular geographical location, customer class, or specific conservation opportunity so long as it is otherwise consistent with this Chapter and with the terms of the applicable grants or agreements.

3. Programs shall be cost effective. Cost effectiveness tests are established in Section 4.

B. Triennial Plan

1. The staff shall develop and the Board shall vote to approve a detailed, triennial, energy efficiency, beneficial electrification, alternative energy resources and conservation plan and shall file the plan with the Commission in accordance with 35-A M.R.S.A. §10104(4). The Triennial Plan shall guide and authorize program activity for the three-year period beginning on July 1, 2019 and a new plan shall be developed and filed to authorize program activity for every subsequent three-year period.

2. The Trust may request transmission and distribution utilities to furnish data to the Trust to develop and implement the Triennial Plan or to conduct the evaluation of all cost-effective potential for electrical conservation savings subject to such confidential treatment as appropriate pursuant to 35-A M.R.S.A. §10106 and to applicable protective orders issued by the Commission.

3. The Triennial Plan shall include, but is not limited to, budget allocations, objectives, targets, performance metrics, program designs, program implementation strategies, timelines and other information relevant to the electric conservation program. It must reasonably explain how the program would achieve the objectives, implementation requirements, and performance metrics of the program.

4. The electric conservation program described in the Triennial Plan shall reflect the purposes, goals and objectives established in 35-A M.R.S.A. §§ 10103, 10104 and 10110. The goals that the Triennial Plan is expected to advance are:

(a) Reducing energy costs, including residential heating costs;

(b) For the period beginning January 1, 2020 and ending January 1, 2030, weatherizing 35,000 homes and businesses, with at least 10,000 of such weatherization projects completed in low-income households through the combined efforts of the trust and the Maine State Housing Authority;

(c) Reducing peak-load demand for electricity by the maximum achievable cost-effective amount;

(d) Achieving the maximum achievable cost-effective electricity and natural gas program savings, as defined in and determined pursuant to the performance metrics approved by the commission under section 10120;

(e) Creating stable private sector jobs providing alternative energy and energy efficiency products and services in the State;

(f) Contributing to the effort to reduce greenhouse gas emissions in the State by amounts consistent with the greenhouse gas emission levels established in Title 38, section 576‑A and in a manner consistent with the State's climate action plan adopted and updated under Title 38, section 577;

(g) Promoting the purchase of high-efficiency heat pump systems to achieve by 2030 the goal of at least 115,000 households in the State wholly heated by heat pumps and an additional 130,000 households in the State partially heated by heat pumps; and

(h) Promoting the purchase of battery electric vehicles and plug-in hybrid electric vehicles to achieve by 2030 the goal of at least 220,000 such vehicles registered in the State.

5. The Trust staff shall develop the Triennial Plan with input from the Board, stakeholders, and the Legislature pursuant to the provisions of 35-A M.R.S.A. §10104(4). All interested persons will be invited to file written comments and suggestions pertaining to the Trust’s proposed Triennial Plan. The Trust also will hold a public hearing for the purpose of receiving comments and suggestions. After reviewing the written and oral comments and suggestions, the Trust will adopt a Triennial Plan for conservation programs that will be submitted to the Commission for review and approval in an adjudicatory proceeding.

C. Conservation Program Portfolio Requirements. The Trust shall develop and implement a portfolio of conservation programs that is consistent with the goals, objectives and strategies described in subsection 3(B), meets the cost effectiveness requirements established in section 4, and is deliverable within the funding level established pursuant to section 5. When developing its portfolio of conservation programs, the Trust shall develop budgets to assist the Commission in analyzing the likely impact of the programs on utilities’ rates.

§ 4 COST EFFECTIVENESS TESTS

The following tests will be used to determine whether a program administered pursuant to this Chapter is cost effective.

A. Cost-effectiveness test. Programs that are reasonably likely to satisfy the test described in this section are cost effective. The cost-effectiveness test is satisfied when the program benefits exceed the program costs. Costs and benefits shall be considered regardless of whether they are paid or experienced by the participant, the Conservation Program Fund, or any other individual, business, or government agency.

1. Program benefits. Program benefits will include the following:

a) Avoided electric generation costs including energy and capacity costs, using estimates of market prices and adjusting for line losses. These estimates may be differentiated by time periods that influence market prices, including but not limited to peak and off-peak periods and summer and winter periods;

b) Avoided transmission and distribution costs, using estimates of the marginal impact on transmission and distribution costs. These estimates may be differentiated by time periods that influence costs and shall account for generic system-level avoidable transmission and distribution costs;

c) Avoided fossil fuel costs, using estimated savings in oil, gas or other fossil fuel use, at estimated fossil fuel prices. For beneficial electrification measures, all net energy costs shall be accounted for, including savings from avoided heating, transportation or industrial process fuels displaced by the measure;

d) Other resource benefits, such as reduced water and sewer costs;

e) Non-resource benefits, including customer benefits such as reduced operation and maintenance costs, deferred replacement costs, productivity improvements, economic development benefits and environmental benefits, to the extent such benefits can be reasonably quantified and valued.

2. Program costs. Program costs will include the following:

a) Direct program costs, including program design, administration, implementation, marketing, evaluation and other reasonably identifiable costs directly associated with the program.

b) Measure costs. For lost opportunity measures, including new construction or replace-on-burnout measures, measure costs are the incremental costs of the energy efficiency measure over an equivalent baseline measure. For retrofit measures, measure costs are the full cost of the energy efficiency measure, including installation, less any salvage for the replaced measure.

c) Ongoing customer costs, including costs such as increased operation and maintenance costs, reduced productivity, and lost economic development opportunities, to the extent such costs can be reasonably quantified and valued.

3. Discount rate assumption. The discount rate used for present value calculations shall be the current yield of 10 year U.S. Treasury securities, plus two hundred basis points, adjusted for inflation.

4. Net present value. Cost effectiveness of an energy efficiency measure will be calculated based on the net present value of the costs and benefits over the expected life of the measure.

5. Post-program effects. For those programs that are expected to influence the development of self-sustaining markets, program cost effectiveness will be calculated for a reasonable additional period after the program is terminated in order to capture post-program market effects.

6. Incentive Level Limitation. When developing a program that satisfies the cost effectiveness test, the Trust shall, when setting incentive levels, consider the value of the program savings associated with electrical production and delivery.

B. Non-Quantifiable Cost-Effectiveness Test. The Trust may implement a program without satisfying the cost-effectiveness test if:

1. Program benefits are known to exist but cannot be quantified with sufficient accuracy to conclude that the program benefits exceed the program costs;

2. The program satisfies some other statutory criterion or a goal or objective established in Maine statute in implementing the Efficiency Maine Trust Act; and

3. The entire portfolio of conservation programs produces quantifiable benefits that substantially exceed total portfolio program costs.

§ 5 FUNDING

The Triennial Plan must identify potential MACE savings and related programs that could be implemented pursuant to 35-A M.R.S.A. §10110, the costs and benefits of such programs and the basis and support for such identified costs and benefits. The trust shall conduct an evaluation of the MACE potential for electrical energy efficiency savings and beneficial electrification in the State at least once every three years.

The Trust shall propose the utility procurement order to be assessed on transmission and distribution utilities necessary to pay for the Trust’s portfolio of conservation and beneficial electrification programs and administrative costs associated with implementing the conservation programs to achieve the MACE savings in the Trust’s Triennial Plan.

A. Funds held in trust. All funds collected from electricity consumers pursuant to 35-A M.R.S.A. §10110 are collected under the authority and for the purposes of this section and are deemed to be held in trust for the purposes of benefiting electricity consumers.

Budgets for procurement of MACE resources; cap on procurement amount. The Trust’s Triennial Plan shall propose programs and an associated budget that is sufficient to procure MACE resources on behalf of electric utility ratepayers, except that the Trust shall not propose the inclusion in rates under this subsection of a total amount that exceeds 4% of total retail electricity and transmission and distribution sales in the State as determined by the Commission. In preparing the Triennial Plan for submission to the Commission, the Trust shall consider gross efficiency savings for the purpose of determining savings that are cost-effective, reliable and achievable and shall consider both net and gross efficiency savings for the purpose of determining the appropriateness of the amount identified by the Trust in its Triennial Plan as needed to capture all cost-effective electric energy efficiency resources.

Inclusion of procurement budgets in rates. When determining the amount of cost-effective electric energy efficiency resources, including beneficial electrification, to be procured under this subsection and included in electric utility rates, the Trust shall:

1. Consider electric energy efficiency resources that are reasonably foreseeable to be acquired by the Trust using all other sources of revenue, including, but not limited to, the Regional Greenhouse Gas Initiative Trust Fund under section 10109;

2. Ensure that calculations of avoided energy costs and the budget identified by the Trust in its Triennial Plan as needed to capture all cost-effective electric energy efficiency resources are reasonable, based on sound evidence and make use of best practices across the region;

3. Maximize total electricity savings for all ratepayers;

4. Include all beneficial electrification measures that are cost-effective and reliably reduce electricity rates over the life of the measures.

Determining reliable reduction of electricity rates.

1. In order for a cost-effective, beneficial electrification measure to be included in MACE resources, it must also be determined to reliably reduce utility electricity rates over the estimated useful life of the measure.
2. The estimated useful life of a measure reflects the period of time it will operate once installed. The value for a measure’s estimated useful life is determined by the Trust based on manufacturer specifications and field studies, where available, and is recorded in the Trust’s Technical Reference Manual.
3. The determination of whether a measure will reliably reduce utility electricity rates shall be made by subtracting the net present value of the projected change in utility costs from the net present value of the projected change in utility revenue, where these changes in revenues and costs are attributable to the operation of a measure over its estimated useful life. If the resulting value is greater than zero, it shall be found to reliably reduce utility electricity rates and be included as a component of MACE resources. The calculation shall compare the net present value of only those revenues and costs collected through transmission and distribution rates, which shall include:

a) Changes in utility revenue from incremental electricity sales attributable to the measure;

b) Changes in utility costs from the marginal impact on transmission and distribution system costs, which may be differentiated by time periods that influence costs and shall account for generic system-level avoidable transmission and distribution costs;

c) Costs of the financial incentive offered by the Trust in promoting adoption of the measure and costs of the Trust to run the incentive program.

Conservation Program Fund. The Trust shall establish a conservation program fund to be used solely for conservation programs.

1. The Trust shall deposit the funds from the utility procurement order, net of amounts allocated to the administration fund pursuant to 35-A M.R.S.A. 10103(5), into the electric conservation program fund.

2. Any interest earned on funds in the program fund must be credited to the program fund.

3. Funds not spent in any fiscal year remain in the program fund to be used for conservation programs. In the event funds are not expended or contracted for expenditure within 2 years of being collected from consumers, the value of those funds shall be returned to consumers.

4. The Trust may apply for and receive grants from state, federal and private sources for deposit in the program fund and also may deposit in the program fund any grants or other funds received by or from any entity with which the Trust has an agreement or contract pursuant to this section if the Trust determines that receipt of those funds would be consistent with the purposes of this section. This paragraph also applies to funds received from agreements to develop geotargeted alternative resources to transmission or distribution system needs. If the Trust receives any funds pursuant to this paragraph, it shall establish a separate account within the program fund to receive the funds and shall keep those funds and any interest earned on those funds segregated from other funds in the program fund.

§ 6 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Trust may waive any of the requirements of this Chapter that are not required by statute. Where good cause exists, the Trust or its designee may grant the requested waiver, provided that the request has been made in writing and approved by the Board, and provided further that granting of the waiver would not be inconsistent with the purposes of Chapter 97 of Title 35-A.

§ 7 FISCAL IMPACT NOTE

There is no cost to municipalities or counties for implementing or complying with this rule.

History

• STATUTORY AUTHORITY
• 35-A M.R.S.A. §§10102, 10103, 10104, 10105, 10106, 10109, 10110
• EFFECTIVE DATE
• This rule was approved as to form and legality by the Attorney General on March 15, 2024. It was filed with the Secretary of State on March 21, 2024 and became effective on March 26, 2024 (filing 2024-076).
• APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 4 Natural Gas Energy Conservation Programs (formerly Ch. 480)

Code Me. R. 95-648 Ch. 4 Natural Gas Energy Conservation Programs {#sec-95-648-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 4}

SUMMARY: This Chapter describes how the Efficiency Maine Trust must implement natural gas energy conservation programs.

§ 1 PURPOSE 3

§ 2 DEFINITIONS 3

A-1. Board 3

A. Gas Conservation programs 3

B. Gas Distribution Utility 3

C. Low-income residential consumer 3

C-1. Maximum Achievable Cost-Effective Energy Conservation (MACE) 3

D. Measure 3

E. Participant 3

F. Small business consumer 3

§ 3 GAS CONSERVATION PROGRAMS 4

A. Criteria for Conservation Programs 4

B. Program Plans 4

§ 4 COST-EFFECTIVENESS TESTS 5

A. Cost-Effectiveness Test 5

1. Program benefits 5

2. Program costs 5

3. Discount rate assumption 6

4. Net present value 6

5. Post-program effects 6

6. Incentive Level Limitation 6

B. Non-Quantifiable Cost-Effectiveness Test 6

§ 5 FUNDING LEVEL 6

§ 6 COST RECOVERY 6

§ 7 REPORTS 7

§ 8 WAIVER OR EXEMPTION 7

§ 1 PURPOSE

The purpose of this Chapter is to implement the requirements of 35-A M.R.S.A. §10111. Section 10111 requires the Efficiency Maine Trust (the Trust) to implement gas conservation programs in the territory of natural gas distribution utilities in Maine.

This Chapter describes how and for whom the Trust must implement cost-effective gas conservation programs. The Chapter also defines the standards by which the Trust will judge programs to be cost effective.

§ 2 DEFINITIONS

A-1. Board. “Board” means the Board of Trustees of the Efficiency Maine Trust.

A. Gas conservation programs. "Gas conservation programs" means programs developed by the Trust pursuant to 35-A M.R.S.A. §10111 and this Chapter.

B. Gas Distribution Utility. "Gas distribution utility" means a gas utility as defined in 35-A M.R.S.A. §102(8).

C. Low-income residential consumer. “Low-income residential consumer” means a customer of a gas utility receiving any special utility rates or programs designated for low-income customers or a household that is heated with natural gas from any utility and has qualified at any time in the prior 12 month period to receive assistance through any state or federal program in which low income and/or limited assets are criteria for eligibility.

C-1. Maximum Achievable Cost-Effective Energy Conservation (MACE). “ Maximum Achievable Cost-Effective Energy Conservation” or “MACE” means all cost-effective, reliable, and achievable energy conservation savings for purposes of 35-A M.R.S.A. §§ 10104(4) and 10111. In this Chapter, the term MACE applies to a quantity of natural gas savings and a budget for Trust programs that is reasonably likely to achieve that savings.

D. Measure. “Measure” means a device, application, operation or any combination thereof that is installed or implemented as a result of a program and that improves energy efficiency.

E. Participant. “Participant” means a customer who directly takes part in a gas conservation program.

F. Small business consumer. “Small business consumer” means a commercial customer of a gas distribution utility that has an annual usage of 40,000 ccf or less.

§ 3 GAS CONSERVATION PROGRAMS

Criteria for Conservation Programs

The Trust shall seek to encourage efficiency in natural gas use, provide incentives for the development of new, energy-efficient business activity in the State and take into account the costs and benefits of energy efficiency and conservation to existing business activity in the State.

1. Program Design. The Trust shall design and implement conservation programs that:

(a) increase consumer awareness of cost-effective options for conserving energy;

(b) create more favorable market conditions for the increased use of efficient products and services; and

(c) promote sustainable economic development and reduced environmental damage.

2. Program Targets. The Trust shall, in the budgets of its Triennial Plan:

(a) target a reasonable percentage of available funds to programs for low-income residential consumers, considering these consumers’ share of gas load and the cost-effective opportunity available at their homes;

(b) target a reasonable percentage of available funds to programs for small business consumers considering these consumers’ share of gas load and the cost-effective conservation opportunity available at their businesses; and

(c) To the greatest extent practicable, apportion remaining available funds among customer groups and geographic areas in a manner that allows all othercustomers to have a reasonable opportunity to participate in one or more conservation programs.

3. Program Cost Effectiveness. Programs shall meet the cost effectiveness tests established in Section 4.

4. Program Funding Levels. Programs shall be deliverable within the funding level established pursuant to section 5.

B. Program Plans. As required by 35-A M.R.S.A. §§ 10104 and 10111, gas conservation programs shall be implemented as part of and consistent with the Trust’s Triennial Plan approved by the Commission. New gas conservation programs and significant changes to existing gas conservation programs shall be filed with the Commission pursuant to 35-A M.R.S.A. §10104 sub-§(4) and sub-§(6).

1. Effect of Commission Approval. The Commission's approval of the Trust’s gas conservation program shall be a determination that the program is just and reasonable on the basis of the information available as of the date of approval. The Trust has a continuing obligation to monitor, evaluate and review the program to determine whether the program as implemented is cost effective and whether continuation of the program as approved is reasonable.

§ 4 COST-EFFECTIVENESS TESTS

The following tests will be used to determine whether a program is cost effective.

A. Cost-Effectiveness Test. Programs that are reasonably likely to satisfy the test described in this section are cost effective. The cost-effectiveness test is satisfied when the program benefits exceed the program costs. Costs and benefits shall be considered under this section regardless of whether they are paid or experienced by the program participant or by the Trust or any other individual, business, or government agency.

1. Program benefits. Program benefits will include the following:

(a) Avoided natural gas commodity costs. These estimates may be differentiated by time periods that influence market prices, including but not limited to peak and off-peak periods and summer and winter periods.

(b) Avoided natural gas transportation,distribution, and storage costs, using estimates of gas transportationmarginal costs. These estimates may be differentiated by time periods that influence costs.

(c) Avoided electric costs including any energy, capacity, and transmission and distribution costs avoided as a result of program implementation.

(d) Other resource benefits, such as reduced water and sewer costs.

(e) Non-resource benefits, including customer benefits such as reduced operation and maintenance costs, deferred replacement costs, productivity improvements, economic development benefits and environmental benefits, to the extent such benefits can be reasonably quantified and valued.

2. Program costs. Program costs will include the following:

(a) Direct program costs, including program design, administration, implementation, marketing, evaluation and other reasonably identifiable costs directly associated with the program.

(b) Measure costs. For new construction programs, measure costs are the incremental costs of the energy efficiency measure, including installation, over an equivalent baseline measure. For retrofit programs, measure costs are the full cost of the energy efficiency measure, including installation, less any salvage for the replaced measure.

(c) Ongoing customer costs, including costs such as increased operation and maintenance costs, reduced productivity, and lost economic development opportunities, and environmental degradation, to the extent such costs can be reasonably quantified and valued.

3. Discount rate assumption. The discount rate used for present value calculations shall be the current yield of 10 year U.S. Treasury securities, plus two hundred basis points, adjusted for inflation.

4. Net present value. Cost effectiveness of a gas efficiency measure will be calculated based on the net present value of the costs and benefits over the expected life of the measure.

5. Post-program effects. For programs expected to influence the development of self-sustaining markets, program cost effectiveness will be calculated for a reasonable additional period after the program is terminated in order to capture post-program market effects.

6. Incentive Level Limitation. When developing a program that satisfies the cost-effectiveness test, the Trust shall consider the value of the program savings associated with natural gas production and delivery when setting incentive levels.

B. Unquantifiable Cost-Effectiveness Test. The Trust may implement a program without satisfying the cost-effectiveness test prescribed in sub-section A of this section if approved by the Board based on a demonstration that:

1. program benefits are known to exist but cannot be quantified with sufficient accuracy to conclude that program benefits exceed program costs;

2. the program satisfies some unquantifiable statutory criterion or an unquantifiable goal or objective established in Maine statute; and

3. the entire portfolio of gas conservation programs taken together and including the cost of the unquantifiable program produces quantifiable benefits that substantially exceed total portfolio program costs.

The Trust shall not spend or commit to spend more than 5% of the annual conservation budget on any program found to be cost effective under this Subsection B without express Commission approval of the spending level.

§ 5 FUNDING LEVEL

The Trust shall undertake energy efficiency programs designed to operate within an annual budget sufficient to capture Maximum Achievable Cost-Effective Energy Conservation (MACE) pursuant to the Triennial Plan as approved by the Board and the Commission.

§ 6 COST RECOVERY

The assessments charged by the Commission to gas utilities pursuant to an approved Triennial Plan and this Chapter are just and reasonable costs for rate-making purposes.

§ 7 REPORTS

A. The Trust shall report by December 1^st of each year to the Commission and the Legislature a description of actions taken and progress made in the implementation of programs in the twelve month period ending on the prior June 30^th. Reports shall include at a minimum:

1. a description of each program offered;

2. the program’s projected cost effectiveness;

3. the program’s calendar year annual expenditures;

4. the number of customers who participate;

5. the estimated annual energy savings; and,

6. expenses incurred in overall program administration.

§ 8 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Trust may waive any of the requirements of this Chapter that are not required by statute. Where good cause exists, the Trust or its designee may grant the requested waiver, provided that the request has been made in writing and approved by the Board, and provided further that granting of the waiver would not be inconsistent with the purposes of Chapter 97 of Title 35-A.

History

Under 65-407, Maine Public Utilities Commission:

EFFECTIVE DATE:This rule, as Chapter 480, was approved as to form and legality by the Attorney General on August 3, 2006. It was filed with the Secretary of State on August 8, 2006 (filing 2006-361) and became effective on August 13, 2006.

Under 95-648, Efficiency Maine Trust pursuant to 35-A MRS §§ 10110 and 10104:

AMENDED:

This rule, as Chapter 4, was accepted by the Secretary of State on September 17, 2018 as filing 2018-198 and became effective on September 22, 2018.

Chapter 5 Commercial Property Assessed Clean Energy (C-PACE) Program Regulations

Code Me. R. 95-648 Ch. 5 Commercial Property Assessed Clean Energy (c-Pace) Program Regulations {#sec-95-648-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 5}

SUMMARY: The purpose of this rule is to establish elements of a commercial property assessed clean energy (C-PACE) Program in Maine. The rule enumerates underwriting standards, quality assurance provisions, and how the program will be administered, whether administered by Efficiency Maine Trust (or its agent) or by a municipality, as provided by the Commercial Property Assessed Clean Energy Act (35-A M.R.S. §§ 10201, et seq .).

SECTION 1. SCOPE

This Chapter applies to all C-PACE Loans issued and C-PACE Agreements entered into pursuant to a C-PACE Program established under the Commercial Property Assessed Clean Energy Act (35-A M.R.S. §§ 10201, et seq .), whether the C-PACE Program is administered by the Trust or its agent, or by a municipality.

SECTION 2. DEFINITIONS.

For purposes of this Chapter, the following words have meanings as defined in this section.

Board. The Efficiency Maine Trust Board established under 35-A M.R.S.A. §10103 and 5 M.R.S.A. §12004-G(10-c).

Commercial PACE (“C-PACE”). Commercial Property Assessed Clean Energy, abbreviated as “C-PACE”.

Commercial PACE (“C-PACE”) Agreement. An agreement that authorizes the creation of a C-PACE Assessment on qualifying property and that is approved in writing by all owners of the qualifying property at the time of the agreement.

Commercial PACE (“C-PACE”) Assessment. An assessment made against qualifying property to finance an energy savings improvement.

Commercial PACE (“C-PACE”) District. The area within which the City/Town establishes a C-PACE Program hereunder, which is all that area within the City/Town boundaries.

Commercial PACE (“C-PACE”) Lien. A lien secured against a qualifying property that is created by a C-PACE Assessment.

Commercial PACE (“C-PACE”) Loan. A loan, payable through a C-PACE Assessment and secured by a C-PACE Lien, made to the owner(s) of a Qualifying Property pursuant to a C-PACE Program to fund Energy Savings Improvements.

Commercial PACE (“C-PACE”) Mortgage. A mortgage securing a loan made pursuant to a C-PACE Program to fund Energy Savings Improvements on Qualifying Property.

Commercial PACE (“C-PACE”) Municipality. A municipality as defined in Title 1 M.R.S. §72(13) that has adopted a C-PACE ordinance for the purpose of participating in a C-PACE Program.

Commercial PACE (“C-PACE”) Ordinance. An ordinance adopted by the legislative body of a municipality for the purpose of participating in a C-PACE Program.

Commercial PACE (“C-PACE”) Program. A program established under the Commercial Property Assessed Clean Energy Act, administered by the Trust, a third party contracted by the Trust or a municipality, under which commercial property owners may finance Energy Savings Improvements on Qualifying Property.

Commercial PACE (“C-PACE”) Program Administrator. The Trust, a third-party contracted by the Trust or a C-PACE Municipality that has elected to administer one or more of the functions of the C-PACE Program.

Commercial PACE (“C-PACE”) Act. Title 35-A M.R.S. §10201 et seq .

Director. The Executive Director of the Trust.

Energy Savings Improvement. An improvement or series of improvements to Qualifying Property that relate to the energy production or energy consumption on the property and that meet the standards established by the Trust in Section 5 of this Chapter.

Program Guidelines.A document prepared by the Program Administrator to specify operational details by which a C-PACE Program will be administered.

Property. The real property that is the subject of the C-PACE application.

Property Owner. All of the owners (except any mortgage holder) of any Qualifying Property.

Qualifying Property. Real commercial property that has demonstrated conformity with the criteria for a Qualifying Property as defined in Section 8 of this rule.

Registered Capital Provider. “Registered Capital Provider” or “Capital Provider” means a lender providing financing for the Energy Savings Improvement(s) through a C-PACE Program and registered with the Trust.

Renewable Energy Installation. A fixture, product, system, device or interacting group of devices installed behind the meter at a Qualifying Property, or on contiguous property under common ownership, that produces energy or heat from renewable sources, including but not limited to, photovoltaic systems, solar thermal systems, highly efficient wood heating systems, geothermal systems and wind systems that do not on average generate more energy or heat than the average annual load of the property.

Technical Reviewer. A qualified entity responsible for reviewing and disclosing projected costs and savings associated with the Energy Savings Improvement(s). The Program Administrator shall publish the minimum qualifications for a Technical Reviewer in the Program Guidelines.

Trust. The Efficiency Maine Trust established in 35-A M.R.S. §10103.

SECTION 3. PROGRAM ADMINISTRATION

In implementing and administering a C-PACE Program, Property Owners, Capital Providers, Municipalities, and the Program Administrator shall complete and comply with the following provisions.

C-PACE Program Administration.

The entity that administers a C-PACE Program is referred to in these rules as a Program Administrator.

A municipality that has adopted a C-PACE ordinance may:

• 1. Enter into a contract with the Trust to serve as the Program Administrator and to administer the functions of the C-PACE Program for the Municipality, or 2. Serve as the Program Administrator itself, to administer the functions of a C-PACE Program, including, but not limited to, entering into C-PACE Agreements with commercial property owners in its jurisdiction and collecting C-PACE Assessments.

Model documents; educational materials. The Trust shall develop and provide to Municipalities model C-PACE ordinances, model C-PACE agreements, other model forms and documents and educational materials for use by Municipalities, Property Owners and Registered Capital Providers in the implementation of C- PACE Programs.

The Trust may:

enter into a contract with a C-PACE Municipality whereby the Trust will serve as the Program Administrator in the municipality;

collect fees necessary to administer the C-PACE Program; and

subcontract with one or more 3rd-parties to perform part or all of the duties of a Program Administrator on behalf of the Trust.

Notwithstanding any provision of law to the contrary, staff or trustees of the Trust, municipal officers and municipal officials, including, without limitation, tax assessors and tax collectors, are not personally liable to the Trust or to any other person for claims, of whatever kind or nature, under or related to a C-PACE Program established under the C-PACE Act and these Rules.

Other than the fulfillment of its obligations specified in a C-PACE agreement, neither the Trust nor a Municipality has any liability to a commercial property owner for or related to Energy Savings Improvements financed under a C-PACE Program.

Administrative Costs

• • • 1. Responsibility for Administrative Costs. The Program Administrator shall be responsible for the costs of administration of the C-PACE Program. Notwithstanding any provision of law to the contrary, the Program Administrator may use funds from its administrative fund, program funds or fees on C-PACE Assessments to pay reasonable administrative expenses of the Program Administrator or to pay a 3rd party contracted by the Program Administrator for costs incurred to carry out the purposes of this C-PACE Program. Such administrative costs may be included in and paid from the C-PACE Assessments collected on each C-PACE Loan in accordance with a fee schedule agreed to by the Program Administrator and Registered Capital Providers. 2. Fee Schedule. A C-PACE Municipality that elects to administer loan origination and servicing functions through its employees or a third-party agent shall be entitled to recover these costs from C-PACE Assessments on the same fee schedule as the Trust. Costs to such Municipalities, however, that exceed the fee schedule established by the Trust shall be the responsibility of the Municipality.

SECTION 4. PROGRAM GUIDELINES

This rule authorizes a C-PACE Program Administrator, and said Program Administrator reserves the right, to prepare, adopt and amend a Program Guidelines document to specify operational details of any C-PACE Program that is administered by the said Program Administrator. Such Program Guidelines document shall be made available to the public from the website of the Program Administrator or its agent. For a C-PACE Program administered by the Trust, the Program Guidelines shall be approved, and may be amended from time to time, by the Director or the Director’s designee.

SECTION 5. ENERGY SAVINGS IMPROVEMENTS

To be eligible for a C-PACE Loan under this Chapter, an improvement or series of improvements relating to a Qualifying Property’s energy production or energy consumption must satisfy the requirements of an “Energy Savings Improvement.”

The purchase and installation of an Energy Savings Improvement must satisfy all of the following, where applicable:

1. Be new and permanently affixed to the Qualifying Property;

2. If it involves weatherization, then the insulation materials used must not violate the provisions of 38 M.R.S.A §1613, which restricts the use of hydrofluorocarbons, and the project must result in increased energy efficiency or substantially reduced energy use;

3. If it involves appliances and equipment, then each appliance and piece of equipment must comply with relevant provisions of either the federal Appliance and Equipment Standards established in 10 Code of Federal Regulations Part 429 or, where applicable, the Maine Department of Environmental Protection’s Appliance Efficiency Standards established at 06-096 Code of Maine Rules Chapter 180, and the project must result in increased energy efficiency or substantially reduced energy use;

4. If it involves a Renewable Energy Installation, then it must meet the elements of that term as defined in Section 2, sub-section 21 of this Chapter;

5. If it involves electric vehicle supply equipment or any energy storage system, then the equipment must be certified by the Underwriters Laboratories, Inc., or equivalent safety standard, and comply with all National Electrical Code regulations for safety and operation requirements;

6. If it involves space heating equipment that is not a renewable energy installation, then it must produce the lowest carbon emissions of any heating equipment reasonably available to the property owner, provided that: 1. The Program Administrator shall rely on the updated US Environmental Protection Agency’s “Emission Factors for Greenhouse Gas Inventories” to compare carbon dioxide emissions per million British thermal units (Btu) of fossil fuels and biomass, which shall be published in a table in the Program Guidelines; 2. The Program Administrator shall compare the emission factors of fossil fuels, biomass and electrically powered heat pumps assuming the minimum efficiency standards allowed in the applicable appliance standards and a minimum Heating System Performance Factor of a heat pump system that would be eligible for a rebate from the Trust, and publish the results in a table in the Program Guidelines; 3. For any property that is connected to the electric utility distribution system, electric heat pumps are presumed to be the lowest carbon emission space heating option; and, 4. Upon a showing of good cause by the Property Owner, the Director may approve the use of the next lowest carbon-emitting heating system that is reasonably available;

7. If it is for the construction of a new building or facility, then it must be established that the improvements significantly exceed the energy standards of the Maine Uniform Building and Energy Code, adopted pursuant to Title 10, M.R.S.A. §9722, subsection 6, paragraph B. Pathways to establish that a new construction project meets this standard are described in the Program Guidelines; and

8. Achieve a Savings-to-Investment Ratio (SIR) that is not less than 1.0, where the process for calculating the SIR is established in the Program Guidelines.

SECTION 6. UNDERWRITING STANDARDS

Except as provided for a new construction project or a major renovation, the C-PACE Loan may cover up to 100% of an Energy Savings Improvement’s costs, including the costs of any audits, development and application fees directly associated with the improvement, less any rebate or other financial incentive provided by the Trust to the Property Owner.

For a new construction project or a major renovation, the costs that may be borrowed through a C-PACE Loan are limited to:

• • • 1. If the building’s primary space heating system will employ high-efficiency heat pumps, either the itemized costs of the heat pump system or a default cost assumption that is proportionate to the heating system’s share of the full cost of the building’s construction which shall be provided in the Program Guidelines; 2. In the case of improvements to the building envelope, the incremental costs of the envelope improvements compared to what it would have cost to meet the minimum energy requirements of the Maine Uniform Building and Energy Code for the building envelope; and, 3. For all other Energy Savings Improvements that are incremental to the minimum energy requirements of the Maine Uniform Building and Energy Code, 100% of costs of Energy Savings Improvements that are itemized and documented sufficiently to distinguish them from other costs of the construction project.

The term of the C-PACE Agreement shall not exceed the Estimated Useful Life, of the financed Energy Savings Improvements, the duration of which shall be acceptable to and disclosed by the Technical Reviewer.

The estimated cost savings from the Energy Savings Improvements over the useful life of such improvements shall achieve for the Property Owner a savings-to-investment ratio (“SIR”) of not less than 1.0.

The Qualifying Property shall have a debt service coverage ratio of not less than 1.0 at the time the C-PACE agreement is entered into.

The Qualifying Property shall have a loan-to-value ratio of not more than 1.0 at the time the C-PACE agreement is entered into, calculated by dividing the total amount of debt secured by the Property by the Property value.

The Qualifying Property's C-PACE Assessment-to-value ratio shall be no greater than 0.35.

The Qualifying Property securing a C-PACE Loan must be owned by the Property Owner.

The Qualifying Property shall:

Be current on real estate taxes, personal property taxes and municipal sewer, sanitary and water district charges;

Have no outstanding and unsatisfied tax or municipal sewer, sanitary or water district liens; and

Not be subject to a mortgage or other lien on which there is a recorded notice of default, foreclosure or delinquency that has not been cured.

The owner or owners of the Qualifying Property must certify that there are no overdue payments on mortgages secured by the Property.

A Registered Capital Provider may require escrows for C-PACE Assessment payments when appropriate.

A Registered Capital Provider may apply such other additional underwriting standards as it requires for approval of a C-PACE Loan that will be financed by the Registered Capital Provider, consistent with all applicable laws.

SECTION 7. REGISTERED CAPITAL PROVIDERS

Capital Provider Registration. If a Capital Provider wishes to participate in the C-PACE Program, it must submit a Capital Provider Application to the Program Administrator. The Program Administrator will approve Capital Providers that demonstrate to the satisfaction of the Program Administrator that the Capital Provider has the capacity and intention to:

Capitalize Qualifying Projects;

Perform the underwriting, origination, and loan servicing requirements of the Program; and

Comply with the regulations, procedures and Program Guidelines of the Program Administrator’s C-PACE Program.

Registered Capital Providers may include any:

1. federally insured bank;
2. savings and loan;
3. state or federal credit union;
4. registered investment firm authorized to do business in Maine;
5. Small Business Administration (SBA) small business investment company;
6. authorized commercial lender;
7. qualified institutional buyer, as defined in Rule 144A (17 C.F.R. 230.144A) of the federal Securities Act of 1933 (15 U.S.C. §77a et seq .), as amended;
8. accredited investor, as defined in §501(a)(1), (2), (3) and (7) of Regulation D (17 C.F.R. 230. 501(a)(1), (2), (3) and (7)) promulgated under the federal Securities Act of 1933 (15 U.S.C. §77a et seq .), as amended;
9. financial institution, as defined in 12 U.S.C §20, as amended;
10. insurance company licensed under the laws of any state;
11. trustee, custodian or depositary of a trust or a custodial or depositary arrangement, as the case may be, which provides that beneficial ownership of interests in such trust or arrangement shall be restricted to persons described in subsections (g), (h), (i), (j) and (l) of this definition; and,
12. a special purpose entity with respect to which the beneficial owners of equity interests or equity securities issued by such entity shall be restricted to those persons described in subsections (g), (h), (i), (j), and (k) of this definition.

In all cases, a Registered Capital Provider under the C-PACE Program must have the ability to fund and service C-PACE loans, including performing all accounting, reporting, billing and collection required for C-PACE Assessments, whether directly or through the lender’s agent.

When a Capital Provider is approved by the Program Administrator it is considered a Registered Capital Provider. The Program Administrator will maintain a publicly accessible listing of Registered Capital Providers on a publicly accessible page on the internet. The Program Administrator maintains sole discretion of Capital Provider approval within the program and will have the ability to withdraw approval from a Capital Provider at any time.

SECTION 8. PREPARING AND APPROVING C-PACE LOAN APPLICATIONS

Defining Project and Establishing Compliance with C-PACE Program Requirements.

An applicant for a C-PACE Loan must complete the application process and forms prescribed in the Program Guidelines to demonstrate compliance with the requirements of the C-PACE Program.

Eligibility for a C-PACE Loan is limited to a Qualifying Project sited at a Qualifying Property.

To be considered a “Qualifying Property” eligible for C-PACE financing, a property must be physically located in a C-PACE Municipality and demonstrate that it:

1. Does not have a residential mortgage;
2. Consists of five or more rental units if the property is a commercial building designed for residential use;
3. Is not owned by a residential customer or small commercial customer as defined in 35-A M.R.S. §3106(1)(C) and (D), respectively; and,
4. Is not owned by a federal, state or municipal government or public school.

To be considered a “Qualifying Project” eligible for C-PACE financing, a C-PACE Project must:

1. Comprise at least one Energy Savings Improvement where the type and quality of the improvement satisfies the minimum requirements of section 5; and
2. Satisfy the underwriting standards in section 6.

Registered Capital Provider – The Property Owner shall select a Registered Capital Provider to finance the Qualifying Project. The Registered Capital Provider shall receive and review the information about the project and shall:

1. Verify that the subject property is a Qualifying Property;
2. Verify that the proposed Energy Savings Improvements constitute a Qualifying Project;
3. Verify that the Technical Reviewer has provided the SIR certificate and completed the accompanying disclosures as required by the Program Guidelines;
4. Ensure that each financial institution that holds a lien, mortgage or security interest in or other collateral encumbrance of the property for which a C-PACE assessment is sought has been provided written notice of the Property Owner’s intention to participate in the C-PACE Program, and that each such financial institution has acknowledged to the Property Owner and the Municipality that it has received such notice and has provided written consent that the applicant may participate and enroll the Property in the C-PACE Program, in compliance with 35-A M.R.S. §10205(4); and
5. Record all written consents in the appropriate Registry of Deeds of the county in which the Property is located.

Application Completeness and Submittal. A completed C-PACE Program application form shall be submitted, with an application fee, to the Program Administrator. The schedule for the application fee shall be published in the Program Guidelines and shall reasonably reflect the Program Administrator’s costs.

C-PACE Application Review. The Program Administrator shall review the application to determine:

Whether the application has established that the property and the project meet the eligibility requirements of a Qualifying Property and Qualifying Project;

That the Technical Reviewer has prepared and executed the SIR certificate and completed the disclosures required by the Program Guidelines;

That the Capital Provider has certified that all required underwriting standards have been satisfied;

That the Capital Provider has certified that all required consents from all financial institutions holding a lien, mortgage or security interest in or other collateral encumbrance on the Property have been received; and

That all C-PACE Program terms and conditions have been satisfied.

Application Approval. If the Program Administrator determines that the application has met standards (2)(a) through (e) above, the Trust shall issue a written Notice of Approval.

Executing Agreements and Installing Energy Savings Improvements.

After receiving a Notice of Approval by the Program Administrator, the Property Owner and the Registered Capital Provider may close on the financing of the C-PACE Loan. A C-PACE Loan must be secured by a C-PACE Assessment and C-PACE Lien on Qualifying Property. A C-PACE Lien remains on the Property until the amounts due under the terms of the C-PACE Agreement are paid in full. A notice of C-PACE Agreement shall be prepared which must include, at a minimum:

The amount of funds disbursed or to be disbursed pursuant to the C-PACE Agreement;

The names and addresses of the current owners of the Qualifying Property subject to the C-PACE Assessment;

A description of the Qualifying Property subject to the C-PACE Assessment, including its tax map and lot number;

The duration of the C-PACE Agreement;

The name and address of the entity filing the notice; and

Written verification of mortgage lender consent, if there is a mortgage on the property.

A Notice of C-PACE Agreement must be filed in the appropriate Registry of Deeds by the Registered Capital Provider, the Property Owner, or an agent of either party, along with the executed Mortgage Lender Consent documents. It is the responsibility of the Registered Capital Provider to take the steps necessary to secure the lien against the commercial Property subject to the C-PACE Assessment until the amounts due under the C-PACE Agreement are paid in full.

SECTION 9. PURCHASES, DISBURSEMENTS, AND PROPERTY RIGHTS

Purchase of goods and services. A commercial property owner who has entered into a C-PACE Agreement may purchase directly all goods and services for the Energy Savings Improvements described in the C-PACE Agreement, subject to any applicable vendor certification required by the Trust and other requirements of the Trust. Goods and services purchased by a commercial property owner for the Energy Savings Improvements under a C-PACE Agreement are not subject to any public procurement ordinance or statute.

A Registered Capital Provider may disburse funds for an approved C-PACE Loan for new construction projects before project completion.

Rights. Commercial property owners retain all rights under contract or law against parties other than the Municipality or the Trust with respect to Energy Savings Improvements financed through C-PACE Agreements.

SECTION 10. COLLECTION OF C-PACE ASSESSMENTS, RECORDING OF LIENS

Priority of C-PACE Lien. A C-PACE Lien secures payment for any unpaid C- PACE Assessment and, together with all associated interest and penalties for default and associated attorney's fees and collection costs, takes precedence over all other liens or encumbrances except a lien for real property taxes of the Municipality and liens of municipal sewer, sanitary and water districts. From the date of recording, a C-PACE Lien is a priority lien against a property, subject only to liens set out in 35-A M.R.S. §6111-A, 36 M.R.S. §552 and 38 M.R.S. §§1050 and 1208, except that the priority of such a C-PACE Lien over any lien, except a lien for real property taxes of the Municipality or a lien of a municipal sewer, sanitary or water district, that existed prior to the C-PACE Lien is subject to the written consent of such existing lienholder.

Collection of C-PACE Assessments. A C-PACE Assessment constitutes a lien on the Qualifying Property until it is paid in full and must be assessed and collected by the Trust, a 3rd-party administrator contracted by the Trust, a municipality or an agent designated by the Trust or a municipality in any manner allowed under the C-PACE Program, consistent with applicable laws. If the Trust or a 3rd-party administrator contracted by the Trust collects C-PACE assessments on behalf of a Municipality, the Trust shall periodically report to the Municipality on the status of the C-PACE assessments in the Municipality and shall notify the Municipality immediately of any delinquent C-PACE Assessments. Upon receiving notification from the Trust of a delinquent C-PACE Assessment, a Municipality shall notify the holder of any mortgage on the property of the delinquent assessment.

Collection, default and foreclosure. A C-PACE Assessment for which notice is properly recorded under this section creates a lien on the Qualified Property. The portion of the Assessment that has not yet become due is not eliminated by foreclosure, and the lien may not be accelerated or extinguished until fully repaid.

A C-PACE Assessment and any interest, fees, penalties and attorney's fees incurred in its collection must be collected in the same manner as the real property taxes of the Municipality in which the Qualified Property is located. If a C-PACE Assessment is delinquent or in default and the Property Owner is delinquent in any tax debt due to the Municipality in which the Property is located, collection may occur only by the recording of liens and by foreclosure under 36 M.R.S. §§ 942 and 943. Liens must be recorded and released in the same manner as liens for real property taxes.

If only a C-PACE Assessment is delinquent but the Property Owner is current on payment of all municipal taxes due to the participating Municipality, then a C-PACE lienholder shall accept an assignment of the C-PACE Lien, as provided in the written agreement between the participating Municipality and the C-PACE Registered Capital Provider. The assignee shall have and possess all the same powers and rights at law as the participating Municipality and its tax collector with regards to the priority of the C-PACE Lien, the accrual of interest and fees and the costs of collection. The assignee shall have the same rights to enforce the C-PACE Lien as any private party or lender holding a lien on real property, including, but not limited to, the right of foreclosure consistent with 14 M.R.S. §§ 6203-A and 6321 and any other action in contract or lawsuit for the enforcement of the C-PACE Lien. The assignee shall recover costs and reasonable attorney's fees incurred as a result of any foreclosure action or other legal proceeding brought pursuant to this subsection, which may be collected by the assignee at any time after the assignee has made demand for payment.

Judicial or nonjudicial sale or foreclosure. In the event of a judicial or nonjudicial sale or foreclosure of a property subject to a C-PACE Lien by a lienholder that is not a C-PACE lienholder, the C-PACE Lien must survive the foreclosure or sale to the extent of any unpaid installment, interest, penalties or fees secured by the lien that were not paid from the proceeds of the sale. All parties with mortgages or liens on that property, including without limitation C-PACE lienholders, must receive on account of such mortgages or liens sale proceeds in accordance with the priority established in the C-PACE Act and by applicable law. A C-PACE Assessment is not eliminated by foreclosure and cannot be accelerated. Only the portion of a C-PACE Assessment that is in arrears at the time of foreclosure takes precedence over other mortgages or liens; the remainder transfers with the property at resale.

Unless otherwise agreed upon by the C-PACE lender, all payments on a C-PACE Assessment that become due after the date of transfer by judicial or nonjudicial sale or foreclosure must continue to be secured by a lien on the property and are the responsibility of the transferee.

SECTION 11. QUALITY ASSURANCE SYSTEM

Property Owners seeking financing through a C-PACE Loan must use a Registered Capital Provider as a source of capital for the loan. A Registered Capital Provider must be found by the Program Administrator to meet minimum criteria enumerated in Section 7 of this Chapter.

All projects seeking financing through a C-PACE Program must meet the minimum underwriting standards of this rule. These standards require that any Energy Savings Improvement that is the subject of a C-PACE Loan achieve an SIR of not less than 1.0. The assumptions and methods used to calculate the SIR, as well as the findings of the SIR analysis, must be reviewed and disclosed by a Technical Reviewer. The estimated useful life of the improvement(s) shall be indicated among these assumptions. The name, title, employer, and credentials of the Technical Reviewer also shall be recorded and disclosed to the Property Owner and the Registered Capital Provider.

Following completion of a C-PACE Project, the Registered Capital Provider or its agent, or such other party as the Program Administrator may authorize through the Program Guidelines, must confirm that the Energy Savings Improvements funded through the C-PACE Program were installed completely and are operating as intended.

The Program Administrator will keep a record of Energy Savings Improvements financed through a C-PACE Program. In cases where such improvements also receive a grant, discount or rebate from a program of the Trust other than the C-PACE Program, the Trust or its agents will inspect a sampling of completed Energy Savings Improvements. The sample size will range between five and 10 percent of the rebated improvements within the relevant Trust program. The inspection will review whether the rebated improvements satisfied all relevant procedures and standards of the Trust program providing the rebate.

All quality assurance inspections shall be for the Program Administrator’s benefit only. No Property Owner, Municipality, nor any other person, may rely on such inspection and such inspection shall not constitute a warranty of any kind by the Program Administrator or by any Municipality.

SECTION 12. WAIVER

Upon a determination of good cause, the Director or the Director’s designee may, subject to statutory limitations, waive any provision of this rule. The waiver must be in writing and must be supported by documentation of the pertinent facts and grounds.

SECTION 13. FISCAL IMPACT NOTE

There is no cost to municipalities or counties for implementing or complying with this rule.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §12004-G(10-c); 35-A M.R.S.A. §10105(5); 35-A M.R.S.A. §10201, et seq.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 7, 2023. It was filed with the Secretary of State on February 13, 2023 and became effective on February 18, 2023 (filing 2023-023).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 103 Renewable Resource Fund Regulations: Selection Criteria for Demonstration Projects, Cost-effectiveness Requirements for Renewable Energy Rebates and Quality Assurance System

Code Me. R. 95-648 Ch. 103 Renewable Resource Fund Regulations: Selection Criteria for Demonstration Projects, Cost-Effectiveness Requirements for Renewable Energy Rebates and Quality Assurance System {#sec-95-648-ch.-103 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 103}

SUMMARY: The basis of this rule is to establish rules to implement objectives for the Renewable Resource Fund as specified in Title 35-A MRSA §10121. The rule includes selection criteria for the competitive bid process for renewable energy research and development projects by Maine educational institutions; selection criteria for the bid process for community demonstration projects requiring use of cost-effectiveness and other criteria in selecting projects to fund. The rule designates qualification criteria for rebates of renewable energy technologies including means of determining cost-effectiveness and meeting quality assurance requirements.

SECTION 1. SCOPE

This Chapter applies to utilization of all Renewable Resource Funds for research and development projects, community demonstration projects using renewable energy technologies, and rebates for cost-effective renewable energy technologies.

SECTION 2. DEFINITIONS

1. Board. "Board" shall mean the Efficiency Maine Trust Board established under 35A M.R.S.A. §10103 and 5 M.R.S.A. §12004-G(10-c).

2. Cost-Effective Renewable Energy Technologies. "Cost-Effective Renewable Energy Technologies" means a Renewable Energy Installation where the Net Present Cost over the Estimated Useful Life of the installation is exceeded by the expected annual savings to the owner providing Simple Payback. For the purposes of evaluating the program, the cost of the incentives plus program delivery shall not exceed the Net Present Benefits.

3. Director. "Director" means the Executive Director of Efficiency Maine Trust, appointed pursuant to 35-A M.R.S.A. §10103.

4. Energy Savings Improvement. "Energy Savings Improvement" means an improvement to Qualifying Property that is new and permanently affixed to Qualifying Property and that:

A. Will result in increased energy efficiency and reduced energy use and:

(1) Meets or exceeds applicable United States Environmental Protection Agency and United States Department of Energy Star program or similar energy efficiency standards established or approved by the Trust;

or

(2) Involves weatherization, including but not limited to, an energy audit, air sealing, insulating, and other energy efficiency improvements and test out, for residential property in a manner approved by the Trust;

or

B. Involves a Renewable Energy Installation system that meets or exceeds standards established or approved by the Trust.

5. Estimated Useful Life. "Estimated Useful Life" means longest useful life of any Energy Savings Improvement as determined by the Trust and as provided by DOE National Renewable Energy Laboratory (NREL) or other nationally recognized standard.

6. Net Present Benefit. "Net Present Benefit" means the present value of all avoided costs over the Estimated Useful Life of a project.

7. Net Present Cost. "Net Present Cost" means the present value of all project costs inclusive of any rebate or tax incentives due to the owner.

8. Renewable Energy Installer. "Renewable Energy Installer" means a Registered Vendor who meets any certification or similar requirements as specified by the Trust from time to time for specified Renewable Energy Installations.

9. Renewable Energy Installation. "Renewable Energy Installation" means a fixture, product, system, device or interacting group of devices, that produces energy or heat from renewable sources, including, but not limited to, photovoltaic systems, solar thermal systems, biomass systems, landfill gas to energy systems, geothermal systems, wind systems, wood pellet systems and any other systems eligible for funding under federal Qualified Energy Conservation Bonds or federal Clean Renewable Energy Bonds.

10. Simple Payback. "Simple Payback" is that the amount of time it will take to recover the initial investment in energy savings will be less than the Expected Useful Life of the installation. Calculated by dividing the Net Present Cost by the expected annual energy cost savings and comparing to the Expected Useful Life of the installed measures.

11. Trust. "Trust" means the Efficiency Maine Trust established in 35-A M.R.S.A. §10103.

SECTION 3. SELECTION CRITERIA FOR COMPETITIVE BID PROCESSES

1. Selection criteria of renewable resource research and development projects. The following are selection criteria for distribution of funds through competitive bid process to the University of Maine System, the Maine Maritime Academy or the Maine Community College System:

A. Renewable resource research and development project bids shall be selected on the basis of providing educational value and including means for recording and reporting on project results over the duration of the project to the Trust; and

B. Renewable resource research and development project bids shall be selected on the basis of including novel use of technology, demonstration, testing or application of renewable energy technology; and

C. Renewable resource research and development project bids shall be selected on the basis of capacity to demonstrate long-term feasibility of developed or utilized technology as a scalable and cost-effective means of generating, delivering or utilizing renewable energy.

2. Selection criteria of community demonstration projects using renewable energy technologies. The following are selection criteria for distribution of funds through competitive bid process to Maine-based nonprofit organizations that qualify under the federal Internal Revenue Code, Section 50l(c)(3), consumer-owned transmission and distribution utilities, community-based nonprofit organizations, community action programs, municipalities, quasi-municipal corporations or districts as defined in Title 30-A, section 2351, community-based renewable energy projects as defined in section 3602, subsection 1 and school administrative units as defined in Title 20-A, section 1 for community demonstration projects using renewable energy technologies;

A. Community demonstration renewable energy project bids shall be selected on the basis of providing value to a community and including means for recording and reporting on project results over the duration of the project to the Trust; and

B. Community demonstration renewable energy project bids shall be selected on use of cost-effective renewable energy technologies; and

C. Community demonstration renewable energy project bids shall be selected on the basis of capacity to demonstrate broad base support of the project from the community.

SECTION 4. QUALIFICATION CRITERIA FOR REBATES

1. Cost-Effectiveness. The Trust will only provide rebates to Renewable Energy Installations where the Net Present Cost of the project is exceeded by the Net Present Benefit of avoided costs over the Estimated Useful Life of the equipment to the owner.

2. Quality Assurance. The Trust will only provide rebates for cost-effective renewable energy technologies that adhere to quality assurance requirements as follows:

A. Configuration and capacity of system is consistent with standards specified or selected by the Trust from time to time.

B. Installer provides owner and Trust an energy model using computer software approved by the Trust, demonstrating expected system output, size, configuration, and cost-effectiveness.

C. Owner agrees to random inspection of the renewable energy installation and operation by the Trust or its agent upon appropriate notification.

3. Rebate Amounts. Rebate amounts for all cost-effective renewable energy technologies will be a function of the avoided fuel costs displaced by the renewable energy installation over the Estimated Useful Life consistent with investment to return ratios provided by the Triennial Plan.

4. Consumer privacy. The provisions of the federal Gramm-Leach-Bliley Act, 15 United States Code, Section 6801 et seq. (1999), and the applicable implementing federal regulations regarding the privacy of consumer information, apply to all consumer financial information obtained by the Trust or their designees in implementing the Renewable Resource Fund under this chapter.

SECTION 5. QUALITY ASSURANCE SYSTEM

1. The Trust will institute and maintain requirements for Renewable Energy Installers.

2. The Trust will maintain a program to inspect construction and/or installation of Energy Savings Improvements under the Renewable Resource Fund by a Renewable Energy Installer to determine that the improvements were properly constructed and/or installed and are operating properly.

3. All quality assurance inspections and testing shall be for the Trust's benefit only. No Borrower, Municipality, nor any other person, may rely on such inspection or testing and such inspection or testing shall not constitute a warranty of any kind by the Trust or by any Municipality.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §3210(9); 35-A M.R.S.A. §10121(1); 35-A M.R.S.A. §10121(2); 35-A M.R.S.A. §10121(4)
• EFFECTIVE DATE: This rule, under the title "Renewable Resource Fund Regulations: Selection Criteria for Demonstration Projects, Cost-Effectiveness Requirements for Renewable Energy Rebates and Quality Assurance System," was approved as to form and legality by the Attorney General on March 20, 2012. It was filed with the Secretary of State on March 22, 2012 (filing 2012-79), and became effective on March 27, 2012.
• EFFECTIVE DATE: 95-648 Chapter 103 page 4

Chapter 110 PACE Program Regulations: Loan Underwriting Standards, Consumer Disclosure Requirements, Terms and Conditions of Participation and Quality Assurance System (in Adobe .pdf format)

Code Me. R. 95-648 Ch. 110 PACE Program Regulations: Loan Underwriting Standards, Consumer Disclosure Requirements, Terms and Conditions of Participation and Quality Assurance System (in Adobe .pdf format) {#sec-95-648-ch.-110 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 110}

CHAPTER110:PACEPROGRAMREGULATIONS:LOAN

UNDERWRITINGSTANDARDS,CONSUMER

DISCLOSUREREQIDREMENTS,TERMSAND

CONDITIONSOF PARTICIPATIONAND QUALITY

ASSURANCESYSTEM

SUMMARY:Thebasisof thisruleis to establishunderwritingstandardsandconsumer disclosurerequirementsforPACE(PropertyAssessedCleanEnergy)loansandPACE agreementswithownersof qualifyingpropertywhoareparticipatingin PACEprogramsfunded byfundsawardedto theStateunderthefederalEnergyEfficiencyandConservationBlockGrant Programor byotherfundsavailableforthispurpose,andto establishtermsandconditionsanda qualityassurancesystemforPACEprograms,whetheradministeredbyEfficiencyMaineTrust (oritsagent)or bya municipality.

SECTION1. SCOPE

ThisChapterappliesto allPACELoansandPACEAgreementsenteredintopursuantto a PACE Program,whetherthePACEProgramis administeredbytheTrustor itsagent,or bya municipality.Thetypesof propertyforwhichthePACEProgramas administeredbytheTrust or itsagentmaybeavailableshallbedeterminedbytheBoardfromtimeto time.

Thisrulegovernstheadministrationof aPACEProgramforResidentialPropertyusingfunds awardedto theStateundertheFederalEnergyEfficiencyandGeneralConservationBlockGrant SECTION2. DEFINITIONS 1. Board."Board"shallmeantheEfficiencyMaineTrustBoardestablishedunder35- A M.R.S.A.§ 10103and5 M.R.S.A.§ 12004-G(10-c).

2. Borrower."Borrower"meansallof theowners(exceptanymortgageholder)of any QualifyingPropertywhohaveappliedandbeenapprovedfora PACELoan.

3. BPI. "BPI"meansBuildingPerformanceInstitute,Inc.

4. Debt to IncomeRatio. "Debtto IncomeRatio"meanstheratioof theBorrower's MonthlyGrossExpensesto theBorrower'sMonthlyGrossIncome,expressedas a percentage.

5. Director."Director"meanstheExecutiveDirectorof EfficiencyMaineTrust, appointedpursuantto 35-AM.R.S.A.§ 10103.

6. EnergyAudit. "EnergyAudit"meansananalysisconductedbya Participating EnergyAdvisor,usingsuchproceduresandstandards,includinganysoftware programforthispurpose,approvedbytheDirector,of energylossin a Qualifying Propertyto determinethesavingsto investmentratioandEstimatedUsefulLifeof proposedEnergySavingsImprovements. 7.EnergySavingsImprovement."EnergySavingsImprovement"meansan improvementto QualifyingPropertythatis newandpermanentlyaffixedto QualifyingPropertyandthat:

A.Willresultin increasedenergyefficiencyandreducedenergyuseand:

(1)Meetsor exceedsapplicableUnitedStatesEnvironmentalProtection AgencyandUnitedStatesDepartmentof EnergyStarprogramor similar energyefficiencystandardsestablishedor approvedbytheTrust;or (2)Involvesweatherization,includingbutnotlimitedto,an energyaudit,air sealing,insulating,andotherenergyefficiencyimprovementsandtestout, forresidentialpropertyin a mannerapprovedbytheTrust;or B.Involvesa RenewableEnergyInstallationor an electricthermalstorage systemthatmeetsor exceedsstandardsestablishedor approvedbytheTrust. 8.EstimatedUsefulLife."EstimatedUsefulLife"meanslongestusefullife(notto exceed20years)of anyEnergySavingsImprovementas statedin theInternational Associationof CertifiedHomeInspectors,Inc.(InterNACHI)"EstimatedLife ExpectancyChart"attachedheretoas AppendixA. 9.MasterProvider."MasterProvider"meansanyonewhooriginatesPACELoans undera PACEProgramor a Municipalityor itsagentthatadministersits PACE 10.MasterServicer."MasterServicer"meansanyonewhoservicesPACELoansunder a PACEProgramor a Municipalityor itsagentthatadministersitsPACEProgram. 11.MonthlyGrossExpenses."MonthlyGrossExpenses"meansthesumof the followingmonthlychargesowedbytheBorrower:

A.Themonthlymortgagepayment,taxes,propertyinsurance,homeowners' associationor condominiumfeepaymentsandassessmentswhetheror not theyareincludedin a mortgagepayment,foranyproperty(notjustthe QualifyingProperty).Withrespectto adjustablerateloanswherethereis a rateresetscheduledwithin120daysafterthedateof application,themonthly mortgagepaymentusedto determineeligibilitywillbe thegreaterof (a)the Borrower'scurrentscheduledmonthlymortgagepaymentor (b)a fully amortizingmonthlymortgagepaymentbasedonthenoteresetrateusingthe indexvalueas of thedateof theapplication.Withrespectto adjustablerate loansthatresetmorethan120daysafterthedateof application,the Borrower'scurrentscheduledmonthlymortgagepaymentwillbeused.

B.Anymortgageinsurancepremiums.

C.Monthlypaymentsonallclosed-endsubordinatemortgages.

D.Paymentsonallinstallmentdebtswithmorethan6 monthsof payments remaining,includingdebtsthatarein a periodof defermentor forbearance.

E.Monthlypaymentsonrevolvingor open-endaccounts,regardlessof the balance.In theabsenceof a statedpayment,thepaymentwillbecalculated bymultiplyingtheoutstandingbalanceby3 percent.

F.Monthlypaymentsona HomeEquityLineof Credit(HELOC)usingthe minimummonthlypaymentreportedontheCreditReport(asdefinedbelow).

If theHELOChasa balancebutnomonthlypaymentis reported,then documentationshallbeobtainedverifyingthepaymentamount,or the paymentwillbe calculatedbymultiplyingtheoutstandingbalancebyI percent.

G.Alimony,childsupportandseparationmaintenancepaymentswithmorethan 9 monthsremaining.

H.Carleasepayments,regardlessof numberremaining.

I.Negativenetrentalincomefromallinvestmentpropertiesowned.

J.AssessmentsundertheproposedPACELoan. 12.MonthlyGrossIncome."MontWyGrossIncome"meanstheBorrower'sincome amountbeforeanypayrolldeductions.It includeswagesandsalaries,overtimepay, commissions,fees,tips,bonuses,housingallowances,othercompensationfor personalservices,SocialSecuritypayments,includingSocialSecurityandadoption subsidiesreceivedbyadultsonbehalfof minorsor byminorsintendedfortheirown support,andmonthlyincomefromannuities,insurancepolicies,retirementfunds, pensions,disabilityor deathbenefits,unemploymentbenefits,rentalincomeand otherincome. 13.Municipality."Municipality"shallhavethesamemeaningas "PACEMunicipality". 14.PACEAgreement."PACEAgreement"meansanagreementbetweentheBorrower andtheProgramAdministratorforthePACEMunicipalityin whichtheapplicable QualifyingPropertyis locatedthatevidencesa PACELoanandauthorizesthe creationof a PACEMortgageontheQualifyingProperty. 15.PACEAssessment."PACEAssessment"meansan assessmentmadebythe ProgramAdministratoragainstQualifyingPropertyto repaya PACELoan, specifically,anamountcalculatedbytheMasterProviderto pennitBorrowerto repaythePACELoanin periodicinstallments(thefrequencyof whichshallbeas providedin Section4 (A)(1)(i) of thisrule)of principalandaccruedinterest reflectingamortizationof theprincipalamountof thePACELoanoverthePACE Loan'stermat thePACELoan'sinterestrate. 16.PACELoan."PACELoan"meansa loan,securedbya PACEMortgage,made pursuantto a PACEProgramto fundEnergySavingsImprovementsfortermsof five, tenor fifteenyears,to bedeterminedbytheBorroweras providedin the UnderwritingStandardsin Section2 below,bearinginterestat ratestheBoard determinesfromtimeto timebasedonfactorsincludingtheavailabilityandcostof fundingforPACELoans,perfonnanceof PACELoansandpromotingavailabilityof PACELoans.Paceloantennsandinterestratesarenotin bestructuredto include negativeamortizationschedules,adjustableratesor balloonpayments. 17.PACEMortgage."PACEMortgage"meansa mortgagesecuringa PACELoan. 18.PACEMunicipality."PACEMunicipality"or "Municipality"includescities,towns andplantations,exceptthat"municipality"doesnotincludeplantationsin Title10, chapter110,subchapterIV;or Title30-A,Part2." 19.PACEOrdinance."PACEOrdinance"meansanordinanceadoptedbythe legislativebodyof a Municipalityforthepurposeof participatingin a PACE 20.PACEProgram."PACEProgram"meansa programestablishedunder35-A M.R.S.A.§ 10151et.g:g.bya PACEProgramAdministratorunderwhichproperty ownerscanfinanceEnergySavingsImprovementsonQualifyingProperty. 21.PACEProgramAdministrator."PACEProgramAdministrator"meanstheTrust or a PACEMunicipalitythathaselectedto administeroneor moreof thefunctionsof thePACEProgram. 22.ParticipatingEnergyAdvisor."ParticipatingEnergyAdvisor"meansa personor entitywhoprovidesEnergyAuditsandis qualifiedto doso as evidencedbyhavinga currentcertificationbyBPI. 23.QualifyingProperty."QualifyingProperty"meansrealpropertyas definedin MaineLawlocatedin thePACEMunicipality. 24.RegisteredVendor."RegisteredVendor"meansa contractoror installerof Energy SavingImprovementswho(i) hasregisteredwiththeTrust,(ii)hasprovidedthe Trustwithitsname,contactinfonnationandlocation,(iii)hasprovidedtheTrust witha copyof a certificateof insuranceshowingthatit hasat least$500,000in commercialgeneralliabilitycoverageandworkers'compensationliabilityinsurance as requiredbyMainelaw;and(iv)meetsanycertificationor similarrequirementsof theTrustfromtimeto time. 25.RenewableEnergyInstallation."RenewableEnergyInstallation"meansa fixture, product,system,deviceor interactinggroupof devicesinstalledbehindthemeterat a QualifyingProperty,or oncontiguouspropertyundercornmonownership,that producesenergyor heatfromrenewablesources,including,butnotlimitedto, photovo1taicsystems,solarthermalsystems,biomasssystems,landfillgasto energy systems,geothermalsystems,windsystems,woodpelletsystemsandanyother systemseligibleforfundingunderfederalQualifiedEnergyConservationBondsor federalCleanRenewableEnergyBonds. 26.ResidentialProperty."ResidentialProperty"is definedto meanQualifying Property,consistingof a residentialhousingstructurelocatedin theStateof Maine thatcontainsnomorethan4 units,eachof whichis suitableforoccupancybyoneor morepersonsandnomorethan15 percentof theareais usedin a trade,businessor othercommercialventure(exceptrentalunitsin 2 to 4 unitresidentialproperties)and includesa condominiumunit,and"manufacturedhousing"as definedin 30-A M.R.S.A.§ 4358(1)(A). 27.Trust."Trust"meanstheEfficiencyMaineTrustestablishedin 35-AM.R.S.A.§ 10103.

SECTION3. UNDERWRITINGSTANDARDS 1.Requirements.ThefollowingareunderwritingrequirementsforanyPACELoan:

A.A PACELoanmustbesecuredbya PACEMortgageonQualifyingProperty;

B.TheQualifyingPropertysecuringa PACELoanmustbeownedbythe Borrower.Proofof ownershipshallbeobtainedin theformof municipaltax records;

C.Themaximumamountof anyPACELoanshallbe fifteenthousanddollars ($15,000)andshallbe basedontotalcostsincludingEnergyAuditandother costsunderthecontractforEnergySavingsImprovements,lessanyrebateor otherfinancialincentiveprovidedbytheTrustto theBorrower;

D.TheBorrowermustdemonstratea Debtto IncomeRatioofthemaximum TotalFixedPaymentto EffectiveIncomeratioestablishedbySection 4155.1.4.F.2.c.of theU.SHousingandUrbanDevelopment'sHandbook 4155.1"MortgageCreditAnalysisforMortgageInsurance"as amended, restatedor replacedfromtime-to~time(the"HUDHandbook")upto a maximumof 50%.

(1)AllMonthlyGrossExpensesandrelateddebtshallbeverifiedusinga creditreport(includinga jointreportin thecaseof jointapplicantsas theBorrower)froma nationallyrecognizedcreditreportingagency (the"CreditReport").In addition,informationconcerningMonthly GrossExpensesobtainedin writingfromtheBorrowermustbe considered.

(2)Basedonthetypeandsourceof theBorrower'sincome,thefollowing documents,noneof whichmaybemorethansixty(60)daysoldas of thedatereceived,exceptfortaxreturnsandquarterlyprofitandloss statements,shallbe providedto verifyMonthlyGrossIncome:

(a)Tax Return:A signedcopyof themostrecentfederal incometaxreturn,includingallschedulesandforms,if available.

(b)EmploymentIncome:Copiesof thetwomostrecentpay stubsindicatingyear-to-dateearnings.

(c)Self-EmploymentIncome:Themostrecentquarterlyor year-to-dateprofitandlossstatementor a recentseriesof bankstatementsto demonstrateincomeforeachselfemployedBorrower,wheresucha profitandlossstatement is notavailable.

(d)Other Income:(e.g.,bonus,commission,fee,housing allowance,tips,overtime).A letterfromtheemployeror otherreliablethirdpartydocumentationdescribingthe natureof theincomeandindicatingthattheincomewillin allprobabilitycontinue.

(e)BenefitIncome:(e.g.,SocialSecurity,disability,death benefits,pension,publicassistance,unemployment, adoptionassistance).Evidenceof theamount,frequency anddurationof thebenefitsusuallyobtainedthrougha monetaryor awarddeterminationletter,disabilitypolicyor benefitsstatementfromtheprovider.Also,evidenceof receiptof payment,suchas copiesof theBorrower'stwo mostrecentbankstatementsshowingthedepositamounts.

TheTrustmustdeterminethattheincomewillcontinuefor at leastsix(6)monthsin orderto includeit as partof Borrower'sincome.

(f)RentalIncome:Rentalincomeshouldbedocumented throughtheScheduleE - SupplementalIncome&Lossof thefederalincometaxreturn.If theBorroweris using incomefromtherentalof a portionof theBorrower's principalresidence,theincomeshouldbe calculatedat 75 % of thegrossmonthlyrentalincome,withtheremaining 25%consideredvacancylossandmaintenanceexpenses.

If theBorroweris usingrentalincomefromproperties otherthantheBorrower'sprincipalresidencetheincome shouldbe75%of themonthlygrossrentalincomereduced bythemonthlydebtserviceontheproperty(i.e.,principal, interest,taxes,insurance,mortgageinsuranceand associationfees),if applicable.

(g)Alimony,SeparationMaintenance& Child Support:

TheBorroweris notrequiredto usealimony,separation maintenanceor childsupportincometo qualifyfora PACE Loan.If theBorrowerchoosesto usethisincome,it should be documentedwithcopiesof thedivorcedecree, separationagreementor otherlegalagreementfiledwitha court,or a courtdecreethatprovidesforthepaymentof alimony,separationmaintenanceor childsupportandstates theamountof theawardandtheperiodof timeoverwhich it willbe received.Evidenceof receiptof paymentcanbe documentedwithcopiesof theBorrower'stwomostrecent bankstatementsshowingthedeposits.

E.Thetermof thePACELoanshallnotexceedtheaverageEstimatedUseful Lifeof thefinancedEnergySavingsImprovements;

F.AllEnergySavingsImprovementsfinancedthroughthePACELoanshall meettheCost-Effectivenesstestto theBorroweras prescribedforPACE loansbytheTrustfromtime-to-time;

G.AllQualifyingPropertysecuringa PACELoanmustbe:

(1)OwnedbytheBorrower;

(2)Currentwithrespectto propertytaxesandsewercharges;

(3)Freeof outstandingandunsatisfiedtaxor sewerliens;

(4)Notbesubjectto a ReverseMortgageTransaction(asdefinedin 9-A M.R.S.A.§8-103-1A(Y));and (5)Notbesubjectto a mortgageor otherlienforwhichthereis a default, foreclosureor delinquencythathasnotbeencured,noranyunsatisfied judgment,mechanics,materialmenor architectlien;

8-3I - I I

H.Thevalueof theQualifyingPropertyshallbe nolessthan100%of thetotal amountof allmortgagesandliensthereon,andtheproposedPACELoan.

Suchvaluewillbesupportedbyanappraisalnotmorethan24monthsoldor bythetax-assessedvaluationof theMunicipalityadjustedbythe Municipality'sassessmentratioforthecurrentyear. 1.TheBorrowermustcertifythattherearenooverduepaymentsonmortgages or otherlienssecuredbysuchpropertyandprovideeithera certificatefrom eachexistingmortgageholderor a recentaccountstatementto demonstrate currentbalances;

J.In caseswherePACEAssessmentswillbebilledannuallyor biannually, monthlyescrowswillbe requiredto be paidbyBorrowerto theMaster Servicer.

K.Suchadditionalrequirementsincludinga minimumcreditscore,and considerationof bankruptcy,foreclosureandchargeoffhistoryof the BorrowermaybeadoptedbytheTrustfromtime-to-timein accordancewith prudentlendingstandards.

SECTION4. CONSUMERDISCLOSUREREQUIREMENTS 1.Truthin Lending.A PACEAgreementmustprovideconsumerdisclosure consistentwiththeprinciplesof Truthin Lending.A disclosurein substantiallythe formof the"PACELoanDisclosureStatement,"preparedbytheBureauof ConsumerCreditProtectionandattachedto thisregulationas AppendixB, complies withthissubsection.PACELoansshallnotbesubjectto theMaineConsumerCredit Code,Article8, butshallbesubjectto 9-AMRSA§§9-301(advertising);9-304 (servicingrequirementsof assignedconsumercredittransactions);9-305(interestto beheldonfundsheldin escrow);9-305-A(timelypaymentsfromescrow);9-305-B (timelyresponsesto requestsforpayofffigures);9-306(noticeof assignment);9-307 (receipts;statementof account;evidenceof payment;9-308(rightto prepay);9-310 (privacyof consumerfinancialinformation);9-311-A(realestatesettlement procedures);and9-314(prepaymentpenaltyriders). 2.Rightof Rescission.NotwithstandinganyexemptionfromArticle8 of theMaine ConsumerCreditCode,PACEMortgagesshallbesubjectto therightof rescissionas statedin 9-AMRSA§ 8-204. 3.Consumerprivacy.TheprovisionsofthefederalGramm-Leach-BlileyAct,15 UnitedStatesCode,Section6801et seq.(1999),andtheapplicableimplementing federalregulationsregardingtheprivacyofconsumerinformation,applytoall consumerfinancialinformationobtainedbytheTrustorMunicipalitiesortheir designeesin implementingPACEProgramsunderthischapter.

95-648 EFFICIENCYMAINETRUST

SECTION5. TERMSAND CONDITIONSOF PARTICIPATION

Thefollowingtermsandconditionsgoverntheparticipationof Municipalitiesand Borrowersin a PACEProgramfundedbyfundsawardedto theStateunderthefederal EnergyEfficiencyandConservationBlockGrantProgramor byanyotherfundsfromthe Trustforthispurpose.

1. PACE ProgramDesign,Implementationand Administration.

A.PACEProgramDesign.

(1)ScheduleEnergyAudit.TheproposedBorrowerschedulesan Energy Auditwitha ParticipatingEnergyAdvisor.

(2)EnergyAudit.A ParticipatingEnergyAdvisorconductsan Energy Audit,performinginitialtestingandgeneratingreportsregarding proposedEnergySavingsImprovements,theircost,EstimatedUseful Lifeandpotentialsavings,andprovidessuchreports,PACEProgram informationandPACELoanapplicationformto theproposed Borrower.

(3)Application.TheproposedBorrowercontactstheMasterProviderin themannerdesignatedbytheMasterProviderfromtimeto time (whichmayincludebutis notlimitedto contactbytelephoneor online)to begintheapplicationprocess,supplyingsufficient informationto enabletheMasterProviderto obtaintheproposed Borrower'sCreditReportandlienanddebtinformationandto calculatethecontemplatedapproximatePACELoanterms.The MasterProviderthenwillsenda writtennoticeto theBorrower:

(a)explainingwhattheproposedBorrowermustprovidein order to completetheapplicationform,includinga quotefroma RegisteredVendorto construct/installspecifiedEnergy SavingsImprovements;and (b)confirmingthespecificEnergySavingsImprovementsthe proposedBorrowerwishesto haveconstructed/installedand financedandthemaximumPACELoanamount,term,interest rateandrebatefromtheTrustpotentiallyavailablewithrespect to suchEnergySavingsImprovements;and (c)providinga GoodFaithEstimate(GFE)of thecostsrelatedto theproposedPACELoanin accordancewiththeRealEstate SettlementProceduresAct(RESPA);and (d)askingtheproposedBorrowerto advisetheMasterProviderof theproposedBorrower'spreferenceas to thetermof thePACE Loan(five,tenor fifteenyears,butnotto exceedtheaverage EstimatedUsefulLifeof theEnergySavingsImprovement(s» andthenameJ!lldlocationof thebranchofficeof a participatingbankor creditunionto be usedforclosingor to makearrangementsforan in-homeclosing.("ClosingAgent").

(4)ApplicationReviewandAction.Uponreceivinga completedPACE LoanapplicationandtheotherrequestedmaterialsfromtheBorrower, theMasterProviderreviewstheapplicationandmaterialsto determine withinthirty(30)dayswhethertheproposedBorrowermeetsthe UnderwritingStandardsin Section3 of thisRule.

(a)If theproposedPACELOlli!is approved,theMasterProvider preparesthePACEAgreement,whichdescribestheEnergy SavingsImprovementsandthetermsof thePACELoan,and thePACEMortgage,usingformspreparedbytheTrust (collectively,the"PACELoanDocuments").TheMaster ProvidersendsthePACELoanDocumentsto theClosing Agent,andnotifiestheproposedBorrowerandtheClosing Agentas to howtheyshouldcoordinateto selectthedate,time andlocationof closingwhichmustoccurwithinfourteen(14) days.

(b)If theproposedPACELoanis notapproved,theMaster Providershallsendwrittennoticeof thatfact,alongwiththe reason(s)forthedenial,to theproposedBorrower.

(5)LoanOrigination-InitialDisbursement.AttheClosing,theBorrower shallexecutethePACELoanDocuments.Afterexpirationof the rescissionperioddescribedin 9AM.R.S.A.§ 8-204theTrustor its agentissuesa checkor electronicpaymentto theBorrowerin an amountequalto 30%of thePACELoanAmountnotto exceed $5,000.

(6)Establishmentof PACEMortgage.Withintwo(2)businessdaysafter theclosing,theClosingAgentmailsthesignedPACEAgreementand PACEMortgageto theMasterServicer,whichpromptlyrecordsthe PACEMortgagein theappropriatecountyregistryof deeds.

(7)ConstructionlInstallationof EnergySavingsImprovements.The RegisteredVendorconstructsand/orinstallstheEnergySavings ImprovementsconsistentwiththeEnergyAudit.

(8)LoanOrigination- Mid-projectDisbursements.Uponreceiptof noticefromtheBorrowerthatconstructionand/orinstallationof a majorcomponentof theEnergySavingsImprovementsis complete, theTrustor itsagentmayissuepartialor totalpaymenttherefor, electronicor otherwise,upto theinvoicedamounttherefor,to the Borroweror,if directedbytheBorrower,to thecontractorproviding suchcomponent.

(9)LoanOrigination- FinalDisbursement.Uponreceiptof (i) notice fromtheRegisteredVendorthatconstructionand/orinstallationof the EnergySavingImprovementis complete;and(ii)noticefromthe ParticipatingEnergyAdvisorthatit hasconducteda test-outprocedure verifyingthattheconstructionand/orinstallationof theEnergy SavingsImprovementsmeetsBPIguidelinesandrecommendations, theTrustor itsagentshallissuepayments,electronicor otherwise,to thetheBorrower(or,if directedbytheBorrower,to thecontractor providingtheEnergySavingImprovemeni)fortheremainingamount of thePACELoan.

(10)LoanServicing.UnlesstheTrusthasestablishedan alternative arrangementwitha MunicipalityadministeringthePACEProgram underwhichthePACELoanis established,theMasterServicershall billmonthlyPACEAssessmentsto theBorrowerto bepaidto the MasterServicerwithinthirty(30)daysof eachPACEAssessment invoice.WheretheBorrowerhasfailedto timelypayitsmonthly PACEAssessment,theMasterServicershallsenda noticeof mortgagor'srightto curein accordancewiththeprovisionsof 14 MRSA§ 6111(I),14MRSA§ 6111(I-A),and14MRSA§ 6111(3).

If a PACEAssessmentremainsunpaidforsix(6)monthsafterit becomesdelinquent,theMasterServicermayinstitutecollection proceedingsthroughcollectionagenciesand/orthroughinstitutionof legalproceedingsexclusiveof foreclosure.Uponpaymentin fullof thePACELoanandallinterest,costs,feesandotherchargesin connectionwiththePACELoan,theMasterServicer,or the Municipalityif it is administeringits PACEProgram,shallrecorda dischargeof thePACEMortgageat theappropriateregistryof deeds.

B.PACEProgramImplementation.

(1)TheLoanOriginationandLoanServicingfunctionscontemplatedby or requiredforthePACELoanProgrammaybe providedbya Master ServicerselectedbytheTrustor a PACEMunicipality,as appropriate, througha competitiveproposalprocess.In thealternative,a PACE Municipalitymayelectto administerthosefunctionsthroughits employeesor a thirdpartyagent.

(2)TheTrustshallmaintainandmakepubliclyavailablea listof ParticipatingEnergyAdvisorswhomayconductEnergyAuditsof QualifyingPropertyat therequestof a proposedBorrower.

(3)TheTrustshallmaintaina listof RegisteredVendorswhomay constructand/orinstallEnergySavingsImprovementsundera PACE C.PACEProgramAdministration.

(1)Cost-Sharing.TheTrustshallbe responsibleforthecostsof administrationof thePACEProgram,whichcostsmaybeincludedin andpaidfromthePACEAssessmentscollectedoneachPACELoan in accordancewitha feescheduleagreedto bytheTrust,theMaster Provider,theMasterServicer,andtheCiosingAgent.

(2)FeeSchedule.A MunicipalitythatadoptsaPACEOrdinanceunder whichtheMunicipalityelectsto administerloanoriginationand servicingfunctionsthroughits employeesor a thirdpartyagentshall be entitledto recoverthesecostsfromPACEAssessmentsonthesame feescheduleas theTrust.Coststo suchMunicipalities,however,that exceedthefeescheduleestablishedbytheTrustshallbethe responsibilityof theMunicipality.

SECTION6. QUALITYASSURANCESYSTEM 1.TheTrustwillinstituteandmaintainrequirementsforParticipatingEnergyAdvisors' andRegisteredVendors.

2. TheTrustwillmaintaina programto inspectconstructionand/orinstallationof EnergySavingsImprovementsunderaPACEProgrambya ParticipatingEnergy Advisorto determinethattheimprovementswereproperlyconstructedand/or installedandareoperatingproperly.Thepercentageof completedprojectsfinanced throughPACELoansshallmeetor exceedthe"bestpractices"percentageestablished bytheU.S.EnvironmentalProtectionAgency'sHomePerformanceProgram.

3. If theconstructionand/orinstallationof EnergySavingsImprovementsundera PACEProgramalsois subjectto anyotherTrustrebateor otherfinancingprogram,it willbeinspectedandtestedunderthetermsof thatprogramas well.

4. AllqualityassuranceinspectionsandtestingshallbefortheTrust'sbenefitonly.No Borrower,Municipality,noranyotherperson,mayrelyonsuchinspectionor testing andsuchinspectionor testingshallnotconstitutea warrantyof anykindbytheTrust or byanyMunicipality.

STATUTORYAUTHORITY:5 M.R.S.A.§ 12004-G(IO-c);35-AM.R.S.A.§ 10105(5);35-A M.R.S.A. § 10151,et seq.

EFFECTIVEDATE:

ThisRule,underthetitle"PACEPROGRAMREGULATIONS:LOANUNDERWRITING STANDARDS,CONSUMERDISCLOSUREREQUIREMENTS,TERMSAND CONDITIONSOFPARTICIPATIONANDQUALITYASSURANCESYSTEM"was approvedbytheSecretaryof StateonDecember7,2010andbecameeffectiveonDecember7, 2010.

REPEALEDANDREPLACED:

Thisrule,underthetitle''''PACEPROGRAMREGULATIONS:LOANU_{1)ERWRITING STANDARDS,CONSUMERDISCLOSUREREQUIREMENTS,TERMSAND CONDITIONSOFPARTICIPATIONANDQUALITYASSURANCESYSTEM"was approvedas to formandlegalitybytheAttorneyGeneralon[I0 - 'f - /I ]. It wasfiledwiththe Secretaryof Stateon[ {C} tr i/ ] andbecameeffectiveon[ l D -II-II].

APPENDIXA

InterNACffi'sEstimatedLife ExpectancyChart Thefollowingchartdetailsthepredictedlifeexpectancyof householdmaterialsandcomponents.

Interiorandexteriorpaintscanlastfor]5 yearsor longer,howeverhomeownersoftenpaintmorefrequently.Surfacepreparationis like]ythe mostimportantdeterminerof paintlifeexpectancy.

ADHESIVES,CAULKANDPAINTS

YEAR

Caulking 5-10 Paint7 RoofingAdhesives ]5+ Appliancelifeexpectancydependsto a greatextentontheuseit receives.Furthermore,consumersoftenreplaceapplianceslongbeforethey becomewornoutdueto changesin styling,technologyandconsumerpreferences.Ofa home'smajorappliances,gasrangeshavethelongestlife expectancy.

APPLIANCESYEARS '.

Air-Conditioners 8-15 Boilers20-35 Compactors Dehumidifiers Dishwashers Disposers,Foodwaste12 Dryers13 ExhaustFans ]0 Freezers 10-20 Furnaces15-25 GasOvens10-18 HeatPumps Humidifiers MicrowaveOvens Range/OvenHoods ]4 ElectricRanges13-]5 GasRanges ]5-]7 Refrigerators9-13 WashingMachine 5 -15 WaterHeaters10-11 BATHROOM CastIronBathtub FiberglassBathtubandShower10-15 IShowerDoor Toilet Kitchensarein theprocessof becominglargerandmoreelaborate,andtogetherwiththefamilyroom,modernkitchensnowformthe"great room.n Greatroomsarea placeto cookas wellas a spacewherepeoplegatherto read,talk,eat,dohomework,surftheInternet,andpaybills.

CABINETRY& STORAGEYEARS

BathCabinets ClosetShelves EntertainmentCentersIHomeOffice10 Garage/LaundryCabinets KitchenCabinets MedicineCabinets20+ Modular/StockManufacturingType50 Wallsandceilingslastthefulllifespanof thehome.

CEILINGS,WALLS& FINISHESYEARS

AcousticalCeiling CeilingSuspension CeramicTile StandardGypsum Naturalstonecountertops,whichareJessexpensivethantheywerejusta fewyearsago,arebecomingmorepopularandonecanexpectthemto lasta lifetime.Culturedmarblecountertopshavea shorterlifeexpectancy,however.

COUNTERTOPS

CulturedMarble NaturalStone LaminateCounlertops 20- 30 Tile Decksareexposedto a widerangeof conditionsin differentclimates,fromwindandhailin someareasto relativelyconsistent,dryweather,in others.Underidealconditions,theyhavea lifeexpectancyof about20yearsbuttheycanfailmuchsooner.

IDEC~

DeckPlanks I::

Exteriorfiberglass,steelandwooddoorswilllastas longas thehouse,whilevinylandscreendoorshavea shorterlifeexpectancy.Closetdoors maylasta lifetime,butFrenchdoorswillfailsooner.

DOORS

Closet(Interior)

Fiberglass(Exterior)

Fire-RatedSteel(Exterior)

French(Interior) 30-50 Screen(Exterior)

Vinyl(Exterior)20 Wood(Exterior)

Wood(HollowCoreInterior)20- 30 Wood(SolidCoreInterior)30- 100+ Floorandrooftrussesandlaminatedstrandlumberaredurablehouseholdcomponents,andengineeredtrimmaylast30 years.

ENGINEEREDLUMBERYEARS

EngineeredTrim LaminatedStrandLumber100+ LaminatedVeneerLumber80+ Trusses100+ FIXTURES& FAUCETSYEARS Accessible!ADAProducts100+ EnamelSteelKitchenSinks5-10 Faucets15-20 ModifiedAcrylicKitchenSinks Saunas/SteamRooms ShowerEnclosures/Modules Showerheads SoapstoneKitchenSinks ToiletslBidets100+ WhirlpoolTubs 20-50 Naturalwoodflooringsmaylasas longas thehouse.Marble,slate,andgranitearealsoexpectedto lastforanout100years,hut requiremore maintenance.Vinylfloorslastupto 50years,linoleumabout25years,andcarpetbetween8 and10 years(withappropriatemaintenanceand normaltraffic).

FLOORINGYEARS

AI!W,xx1enFloors Bamboo100+ BrickPavers100+ Carpet8-10 Concrete50+ EngineeredWood 50+ ExoticWood Granite100+ Laminate 15-25 Linoleum25 Marble OtherDomesticWood Slate IT=,"

Tile Vinyl Concreteandpouredblockfootingsandfoundationswilllasta lifetime,assumingtheywereproperlybuilt.Termiteproofingof foundationswill lastabout12 yearsif thechemicalbarriersputin placeduringconstructionareleftintact.Waterproofingwithbituminouscoatinglasts10 years, butif it cracksit is immediatelydamaged.

FOOTING&FOUNDATIONSYEARS

BaseboardSystem BituminousCoatingWaterproofing CastIronWastePipe(AboveGround) 60+ CastIronWastePipe(Belowground) 50-60 ConcreteBlock ConcreteWastePipe100 PouredFootingsandFoundations Pumps,Sumps,andWells 5-]2 TermiteProofing Framingandstructuralsystemshaveextended]ongevities;poured-concretesystems,timberframehousesandstructuralinsulatedpanelswillall lasta lifetime.Wallpanelsandroofandfloortrusseswillalsolasta lifetime.Hardboard,softwood,andplywoodlastan averageof 30years, whileOSBandparticleboardareexpectedto lasttwicethatlong.

FRAMING&OTHERSTRUCTURALSYSTEMS

Poured-ConcreteSystems StructuralInsulatedPanels TimberFrameHomes Garagedooropenersareexpectedto last10 to 15 years.andlightinsertswilllastslightlylonger.

GARAGES

GarageDoors 20-25 GarageDoorOpeners10-15 LightInserts20 Hometechnologysystemshavediverselifeexpectancies.Whilea built-inaudiosystemwilllast20 years,securitysystemsandheat/smoke detectorshavelifeexpectanciesof 5 to 10 years.Wirelesshomenetworksandhomeautomationsystemsareexpectedto workproperlyformore than50years.

HOMETECHNOLOGYYEARS

Built-inAudio HomeAutomationSystems SecuritySystems5-10 SmokelHeatDetectors LessThan10 WirelessHomeNetworks 50+ Heating,ventilation,andairconditioningsystemsrequireregularmaintenancein orderto workproperly,butevenwell-maintainedsystemsonly last15 to 25years.Furnaces,on average,last15-20years,heatpumpslast16 years,andairconditioningunitslast10-15years.Tanklesswater heaterslastmorethan20years,whilean electricor gaswaterheaterhasa lifeexpectancyof about10 years.Thermostatsmaylast35yearsbut theyareusuallyreplacedbeforetheyfaildueto technologicalimprovements.

HVAC.YEARS

AirConditioners AirQualitySystems AtticFans 15 - 25 Boilers13-21 Burners CentralAirConditioningUnite12-15 Dampers 20+ Dehumidifiers Diffusers,Grilles,andRegisters Ducting DX,Water.OrSteam Electric ElectricRadiantHeater Furnaces HeatExchangers,shell+ tube HeatPumps HeatRecoveryVentilators HotWateror SteamRadiantHeater InductionandFan-CoilUnits MoldedInsulation ShellandTube Thermostats Ventilators WaterHeaters 20+ Aslongas theyarenotpunctured,cut,or burnedandarekeptdryandawayfromUVrays,cellulose,fiberglass,andfoaminsulationmaterials willlasta lifetime.Thisis trueregardlessof whethertheywereinstalledas loosefill,housewrap,or batts/rolls.

INSULATION& INFlLTRATION BARRIERS Batts/Rolls Cellulose Fiberglass Foam HouseWrap LooseFill Copperplatedwiring,coppercladaluminum,andbarecopperwiringareexpectedto lasta lifetime,whereaselectricalaccessoriesandlighting controlsmayneedto be replacedafter10 years.

LIGHTING& ELECTRICAL

Accessories BareCopper CopperCladAluminum ICopperPlated LlghtmgControls Masonryis oneof themostenduringhouseholdcomponents.Fireplaces,chimneys,andbrickveneerscanlastthelifetimeof a home.

MASONRY& CONCRETE

Brick100+ SealerCaulking 2-20 Stone100+ Veneer100+ Custommillworkwilllasta lifetime,andallstairs- circularandspiralstairs,prebuiltstairsandatticstairs- areexpectedto lasta lifetime.

MOLDING& MILLWORKYEARS

AtticStairs100+ CustomMillwork PrebuiltStairs StairParts100+ Stairs,Circular& Spiral100+ Ietlmeo anywoopr uct epen oneve0mOIsturemtruslOn PANELSYEARS FlooringUnderlayment Hardboard Particleboard Plywood Softwood Oriented-StrandBoard60 WallPanels L'~. f dodddI f Thelifeof a roofdependsonlocalweatherconditions,buildinganddesign,matelialquality,andadequatemaintenance.Slate,copper,and clay/concreteroofshavethelongestlifeexpectancywhileroofsmadeof asphaltshingles,fibercementor woodshakeswillfailsooner.

ROOFINGYEARS

AluminumCoating 3-7 AsphaltShingles(3 - tab)

Asphalt(Architectural)

BUR(Built-upRoof)

Clay/Concrete CoalandTar Copper100+ EPDM(EthylenePropyleneDieneMonomer)Rubber 15 - 25 FiberCement Metal 40- 50 ModifiedBitumen SimulatedSlate 95-648 EFFICIENCYMAINETRUST I:

Outsidematerialstypicallylasta lifetime.Brick,vinyl,engineeredwood,stone(bothnaturalandmannfactured),andfibercementwilllastas longthehouse.Exteriorwoodshuttersareexpectedto last20years,dependingonweatherconditions.Guttershavea lifeexpectancyof more than50yearsif madeof copperandfor20yearsif madeof aluminum.Copperdownspoutslast100yearsor more,whilealuminumoneswilllast 30years.

SIDING&ACCESSORIES

AluminumDownspouts30 AluminumGutters20 Aluminum/InteriorShutters10+ Brick CopperDownspouts CopperGUllers50+ EngineeredWood FiberCement GalvanizedSteelGUllers/Downspouts ManufacturedStone Soffits/Fascias50 Stone Stucco50- 100 Trim25 Vinyl Wood/ExteriorShutters20 Wood/InteriorShutters 15+ Mostlandscapingelementshavea lifeexpectancyof i5 to 25 years.Sprinklersandvalveslastabout20years,whiieundergroundPVCpiping hasa lifespanof 25 years.Polyvinylfencesaredesignedto lastas longas thehouse,andasphaltdrivewaysshouldlastbetween15 and20years.

Tenniscourtscanlasta lifetimeif theyarerecoated;mostcoatingslast12 to 15 years.Theconcreteshellof a swimmingpoolis expectedto last morethan25years,buttheinteriorplasterandtilehavelifeexpectanciesof about]0 to 25years.

SITE& LANDSCAPING

AmericanRedClay AsphaltDriveway15-20 AsphaltwithAcrylicCoatingor Cushion12-15 Brick& ConcretePatios15-25 ClayPaving CleaningEquipment(SwimmingPool)7-10 Coating 5-7 ConcreteShell(SwimmingPool) 25+ ConcreteWalks40-50 Controllers Decking(SwimmingPool)

Fast-DryGreenTennisCourt Fast-DrywithSubsurface GravelWalks 4-6 InteriorFinish{SwimmingPool) 10-35 PolyvinylFences Sprinklers 10-14 UndergroundPVCPiping 60+ Valves WaterlineTile( SwimmingPool)

Aluminumwindowsareexpectedto lastbetween15 and20 yearswhilewoodenwindowsshouldlastnearly30years.

SKYLIGHTS& WINDOWS

Aluminum!AluminumClad WindowGlazing VinylWindows 20-40 30+ Note:Lifeexpectancyvarieswithusage,weather,installation,maintenanceandqualityof materials.Itemslistedas lasting100+years,especially thosethatopenandclose,oftenfailprematurelydue(0misuseor overuse.Thislistshouldbe usedonlyas a generalguideline,notas a guarantee or warrantyregardingtheperformanceor lifeexpectancyof anyproduct.

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Chapter 312 Voluntary Renewable Resources, Research and Development Fund

Code Me. R. 95-648 Ch. 312 Voluntary Renewable Resource Research and Development Fund {#sec-95-648-ch.-312 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 312}

SUMMARY: This rule establishes a program allowing retail consumers of electricity to make voluntary contributions to fund renewable resource research and development.

§ 1 PURPOSE 3

§ 2 EFFECTIVE DATE 3

§ 3 DEFINITIONS 3

§ 4 TRANSMISSION AND DISTRIBUTION UTILITY OBLIGATIONS 3

A. Customer Option 3

B. Mechanism 4

1. Customer Bills 4

2. Response Cards 4

3. Telephone 4

C. Additional Mechanisms 4

D. Amount Added to Bill 4

E. Semi-Annual Notification 4

F. Notification Materials 4

G. Transfer of Funds 5

H. Cost Recovery 5

I. Annual Reports 5

§ 5 ADMINISTRATION OF FUNDS 5

A. State Planning Office 5

B. Distribution of Funds 5

C. Grants 6

D. Status Report 6

§ 6 WAIVER OR EXEMPTION 6

§ 1 PURPOSE

The purpose of this Chapter is to implement the State’s policy to encourage the development of renewable resource technologies by establishing a research and development fund to which electricity customers may make voluntary contributions.

§ 2 EFFECTIVE DATE

This Chapter shall become effective on March 1, 2000.

§ 3 DEFINITIONS

A. Commission. "Commission" means the Maine Public Utilities Commission.

B. Customer. "Customer" means any person or entity receiving transmission and distribution service from a transmission and distribution utility.

C. Transmission and Distribution Utility. "Transmission and distribution utility" means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

D. Renewable Resource. "Renewable resource" means an electric generation facility that uses a fuel or technology as specified in 35-A M.R.S.A. § 3210(2)(C)(2).

E. Renewable Resource Research and Development Fund. "Renewable resource research and development fund" means the fund established pursuant to this Chapter to which retail consumers of electricity may make voluntary contributions to support renewable resource research and development and demonstration community projects using renewable energy technologies.

§ 4 TRANSMISSION AND DISTRIBUTION UTILITY OBLIGATIONS

A. Customer Option. Each transmission and distribution utility shall provide its customers with the option to make voluntary contributions to the renewable resource research and development fund. Customers may exercise the option at any time through the check-off mechanism provided by this section, or by otherwise notifying the transmission and distribution utility.

B. Mechanism. The option to make voluntary contributions to the renewable resource research and development fund shall be provided through a mechanism that allows customers to choose to contribute $1.00, $5.00, $10.00, or "other" amount each month. Transmission and distribution utilities may provide the option to make contributions through any of the following mechanisms:

1. Customer Bills. A check-off option may be provided on transmission and distribution utility bills;

2. Response Cards. A check-off option may be provided on a response card separate from the customer bill that is mailed to customer, either with or separately from the bill, and can be mailed back to the transmission and distribution utility; or

3. Telephone. A customer may agree to make voluntary contributions through a telephone call to the transmission and distribution utility.

C. Additional Mechanisms. In addition to one of the mechanisms specified in subsection B, transmission and distribution utilities may employ additional mechanisms to solicit voluntary contributions to the renewable resource research and development fund.

D. Amount Added to Bill. Transmission and distribution utilities shall add the amount designated by customers to the customer's bills each month. Customers may terminate their contributions at any time by notifying the transmission and distribution utility.

E. Semi-Annual Notification. Each transmission and distribution utility shall provide its customers with notification of the option to make voluntary contributions to the renewable resource research and development fund pursuant to the provisions of this Chapter at least every six months.

F. Notification Materials. Each transmission and distribution utility shall prepare notification materials informing customers of the existence, purpose, and means to contribute to the renewable resource research and development fund. To the extent available, the notification materials shall include summaries of the projects that have been funded. The notification materials shall be distributed to customers at least every six months through a bill insert or a separate mailing. If the utility provides the check-off option through response cards as provided for in section 4(B)(2), the response cards shall be included as part of the notification materials. The notification materials shall be prepared in consultation with the State Planning Office, the Commission and the Public Advocate.

G. Transfer of Funds. Each transmission and distribution utility shall transfer funds collected pursuant to this Chapped to the Commission including any associated interest each quarter. The Commission shall place the funds in a specially dedicated account for use consistent with the provisions of this Chapter.

H. Cost Recovery. The Commission shall allow the transmission and distribution utilities to recover their reasonable costs of implementing the provision of this Chapter in appropriate ratemaking proceedings.

I. Annual Report. On or before May 1 of each year, each transmission and distribution utility shall submit a report to the Commission stating the number of customers, by customer class, that have contributed to the renewable resource research and development fund, the amounts of the contributions, and an accounting of its costs of administration.

§ 5 ADMINISTRATION OF FUNDS

A. State Planning Office. The State Planning Office shall administer the renewable resource research and development fund.

B. Distribution of Funds. The funds collected pursuant to this Chapter shall be distributed by the State Planning Office to one or more of the following:

1. University of Maine System, the Maine Maritime Academy, and the Maine Technical College System for renewable resource research and development.

2. Maine-based non-profit organizations that qualify under the federal Internal Revenue Code, Section 501(c)(3), consumer-owned electric cooperatives, community-based non-profit organizations and community action programs for demonstration community projects using renewable energy technologies.

C. Grants. The funds shall be distributed to the institutions and organizations specified in subsection B through a grant proposal system developed and administered by the State Planning Office.

D. Status Report. The State Planning Office shall provide annual reports to the Commission on or before May 1 of each year describing the status of the grant program, the number of grants provided, the amount of each grant, the institution to which the grant was provided, and the nature of the project for which the grant was provided. The report will be made available to any person upon request.

§ 6 WAIVER

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301, 3203(9) and 3210(5).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 15, 1998. It was filed with the Secretary of State on December 15, 1998 and became be effective on December 20, 1998.
• EFFECTIVE DATE (Amendment): This rule was approved as to form and legality by the Attorney General on August 2, 2000. It was filed with the Secretary of State on August 3, 2000 and became effective on August 8, 2000.
• EFFECTIVE DATE (Amendment): 65-407 Chapter 312 page 4
• EFFECTIVE DATE (Amendment): 65-407 Chapter 312 page 1

Chapter 930 Solar and Wind Energy Rebate Program

Code Me. R. 95-648 Ch. 930 Solar and Wind Energy Rebate Program {#sec-95-648-ch.-930 omnilex-key=us-me-regs-official--dept-independent-agencies--95-648 Ch. 930}

SUMMARY: This Chapter establishes the standards and procedures necessary to implement the solar and wind energy rebate program.

§ 1 PURPOSE 3

§ 2 DEFINITIONS 3

A. Qualified Solar Photovoltaic Installer 3

B. Qualified Solar Thermal Water System Installer 3

C. Qualified Wind Energy System Installer 3

D. Solar Energy System 3

E. Solar Photovoltaic System 3

F. Solar Thermal System 3

G. Total System Costs 3

H. Total Adjusted System Costs 4

I. Wind Energy System 4

§ 3 SOLAR AND WIND ENERGY SYSTEM REBATES 4

A. Eligibility 4

1. Solar Energy Rebates 4

2. Wind Energy Rebates 4

B. Eligible Systems 5

1. Solar Photovoltaic Systems 5

2. Solar Thermal Water Systems 5

3. Solar Thermal Air Systems 5

4. Wind Energy Systems 5

C. Rebate Amounts 5

D. Awarding of Rebates Contingent on Available Funding 5

E. Allocation of Funding Among Programs 6

F. Simple Payback Calculation/Performance Standards 6

§ 4 FUNDING LEVEL; FUND 6

A. Assessment 6

B. Fund 7

C. Assessment Procedures 7

§ 5 REBATE DISTRIBUTION 7

A. Application Approval 7

B. Available Funds 7

C. Suspension or Cancellation of Programs 8

§ 6 APPLICATION 8

A. Review Process 8

B. Requirements 9

1. Applicant .. 9

2. System Type 9

3 . Solar Energy System Description 9

4. Wind Energy System Description 9

5. Compliance With Eligibility Requirements 10

6. Failure to Meet System Eligibility and Application

Requirements 10

7. Site Evaluations 10

8. Installer Qualifications 10

9. Installation Date 11

10. Rebate 11

11. Energy Audit 11

12. Other 11

§ 7 ENERGY AUDIT 11

§ 8 REPORT 13

§ 9 PROGRAM TERMINATION 14

§ 10 WAIVER OR EXEMPTION 14

§ 1 PURPOSE

The purpose of this Chapter is to implement the solar and wind energy rebate program, including procedures and standards for qualifying for solar and wind energy system rebates.

§ 2 DEFINITIONS

A. Qualified Solar Photovoltaic System Installer. “Qualified Solar Photovoltaic System Installer” is a master electrician who is certified by the North American Board of Certified Energy Practitioners or is working in conjunction with a person who is certified by the North American Board of Certified Energy Practitioners.

B. Qualified Solar Thermal Water System Installer. “Qualified Solar Thermal Water System Installer” is a technician in good standing with the Commission who has successfully completed an approved solar thermal training course and carries a current license as a master plumber, master oil burner technician or propane and natural gas technician or is a class 2 or 3 nationally certified refrigeration technician.

C. Qualified Wind Energy System Installer. “Qualified Wind Energy System Installer” means, with respect to the electrical components of a qualified wind energy system, a Maine licensed master electrician or a person who has been certified by the dealer of the system proposed to be installed as a factory trained and approved installer who works under the supervision of a Maine licensed master electrician.

D. Solar Energy System. “Solar Energy System” means a solar photovoltaic system that has been installed by a Qualified Solar Photovoltaic System Installer or a solar thermal system that has been installed by a Qualified Solar Thermal Water System Installer.

E. Solar Photovoltaic System. “Solar Photovoltaic System” means a solar energy device with a peak generating capacity of 100 kilowatts or less used for generating electricity for use in a residence or place of business that has been installed by a Qualified Solar Photovoltaic System Installer

F. Solar Thermal System. “Solar Thermal System” means a configuration of solar collectors and a pump, heat exchanger and storage tank or fans designed to heat water or air for the purpose of space heating, domestic water heating or both space heating and domestic water heating. Solar thermal systems types include forced circulation, integral collector storage, thermosyphon and self-pumping systems that have been installed by a Qualified Solar Thermal System Installer.

G. Total System Costs. “Total System Costs” means the total installed costs of the proposed system, including, materials and labor.

H. Total Adjusted System Costs. “Total Adjusted System Costs” means the Total System Costs reduced by the amount of any state, local, or federal funding, including, but not limited to, rebates or tax incentives.

I. Wind Energy System. “Wind Energy System” means any device, such as a wind charger, windmill or wind turbine and associated facilities, that converts wind energy potential into electrical energy with a peak generating capacity of 100 kilowatts or less and that has been installed by a Qualified Wind Energy System Installer.

§3 SOLAR AND WIND ENERGY SYSTEM REBATES

A. Eligibility

1. Solar Energy Rebates. To the extent that funds are available in the solar and wind energy system rebate program fund established pursuant to section 4 of this Chapter, owners and tenants of residential or commercial properties located within Maine who are Maine residents may apply on a first-come-first-served basis to be eligible for rebates for qualified solar energy systems installed on those properties. To qualify for a solar energy system rebate, an applicant must show that the system is connected to the electrical grid and installed after July 1, 2005 in accordance with 35-A M.R.S.A. § 3211-C and this Chapter. For purposes of this section, a person may demonstrate the date a system was installed by the date of a net metering arrangement with a transmission and distribution utility or by the date on a bill of sale for the system.

2. Wind Energy Rebates. To the extent that funds are available in the solar and wind energy system rebate program fund established pursuant to section 4 of this Chapter, owners and tenants of residential or commercial properties located within Maine who are Maine residents may apply on a first-come-first-served basis to be eligible for rebates for wind energy systems installed on those properties. To qualify for a wind energy system rebate, an applicant must show that the system is connected to the electrical grid and installed after January 1, 2009 in accordance with 35-A M.R.S.A. § 3211-C and this Chapter and meets wind energy system site requirements under Section 6(B)(5). For purposes of this section, a person may demonstrate the date a system was installed by the date of a net metering arrangement with a transmission and distribution utility or by the date on a bill of sale for the system.

a. Other Eligibility Requirements for a Wind Energy System Rebate. In addition to meeting the requirements under Section 3(A)(2), that the following eligibility requirements apply:

1. The subject site for a proposed wind system (including specific longitudinal and latitudinal references) must be located in a geographic area with average wind speeds of Class II or greater as recognized by wind resource databases to be designated by the Commission staff; and,

2. The bottom of the blade of the turbine proposed at its lowest point of travel will be a minimum of thirty feet above any surrounding object within a 250 foot radius; and,

3. The subject site must be located in an area that is free of any zoning restrictions, construction requirements, home owner association rules or other laws, rules or provisions that may prohibit the erection of the subject tower and wind turbine and/or that the applicant has obtained such necessary permits and approval prior to filing the application.

B. Eligible Systems

The following systems are eligible for rebates from the solar and wind energy rebate program fund:

1. Solar Photovoltaic Systems. Solar photovoltaic systems that generate electricity.

2. Solar Thermal Water Systems. Solar thermal systems designed to heat water.

3. Solar Thermal Air Systems. Solar thermal systems designed to heat air.

4. Wind Energy Systems. Wind energy systems that generate electricity and which are located in areas of wind power potential as set forth in section 3(A)(2).

C. Rebate Amounts

The Commission shall set rebate levels by order for qualified solar and wind energy systems. In setting rebate levels, the Commission may consider market demand for qualified solar energy systems or qualified wind energy systems, program implementation experience, other financial factors such as federal or state tax incentives for systems as well as other factors relevant to the solar and wind energy rebate program. The Commission shall periodically consider revisions to the rebate levels based on the criteria in this subsection. The Commission shall post the current rebates levels on its website and include the rebate levels on the solar and wind energy rebate application forms.

Awarding of Rebates Contingent on Available Funding.

The awarding of rebates under these rules is subject to the availability of funding. An applicant’s submission of an application for a solar or wind system rebate does not create a right or entitlement to a solar or wind system rebate. The Commission may suspend the solar or wind system rebate programs for lack of funding with or without prior notice.

E. Allocation of Funding Among Programs.

The Commission shall determine, by order, the allotment of the funds in each fiscal year between solar photovoltaic systems, solar thermal systems and wind energy systems, with a minimum of 20% of the funds allocated to each. In determining any additional allocation of funding among the programs, the Commission may consider, without limitation, current market demand for systems, program implementation experience, financial and economic factors such as the availability of federal or state tax incentives for systems as well as other factors that influence program participation or present market barriers.

F. Simple Payback Calculation/Performance Standards.

Each applicant shall provide a simple payback analysis for the system for which a rebate is sought on an application form provided by the Commission. The calculation shall estimate the overall annual savings associated with the proposed system, taking into account certain assumptions for fuel costs and system efficiencies. Although it shall not constitute a bar to receiving funding under the rebate program, applicants are encouraged to choose systems for which the total adjusted system costs do not exceed savings associated with reduced energy consumption over the useful lifetime of the system.

The application form will be amended on at least an annual basis, and more frequently if needed, in order to ensure that assumptions for system efficiencies, electricity and other energy costs comport with market conditions. Electricity and natural gas costs shall be derived from using tariffs on file with the Commission. Fuel oil and propane costs shall be derived from monthly price surveys of the Governor’s Office of Energy Independence and Security (OEIS). Assumptions for system efficiencies for electricity and other energy appliances will be based on a nationally recognized standardized rating system.

§4 FUNDING LEVEL; FUND

A. Assessment

The Commission shall assess transmission and distribution utilities to collect funds for the solar and wind energy rebate program. The assessment on transmission and distribution utilities shall not exceed .005 cents per kilowatt-hour and may differ among transmission and distribution utilities. The Commission will not assess a transmission and distribution utility under this section for amounts that would lower the conservation fund assessment under 35-A M.R.S.A. § 1311-A below its statutory floor. The Commission may decline to assess a transmission and distribution utility if the assessment amount would be de minimis or would otherwise be an administrative burden. The Commission may lower the overall assessment if it determines a lower amount of funding will be needed to provide rebates to qualified solar and wind energy systems pursuant to this Chapter.

B. Fund

The Commission shall establish a solar and wind energy rebate program fund to be used for the purposes of the solar and wind energy rebate program.

1. The Commission shall deposit all assessments collected pursuant to this Chapter into the solar and wind energy rebate program fund.

2. Interest earned on funds in the solar and wind energy rebate program fund shall be credited back to the solar and wind energy program fund.

3. Funds not spent in any fiscal year will remain in the solar and wind energy rebate program fund to be used for the solar and wind energy rebate program.

C. Assessment Procedures

The Commission shall periodically assess transmission and distribution utilities based on actual sales or revenues.

§5 REBATE DISTRIBUTION

The Commission shall distribute rebates for qualifying solar and wind energy systems pursuant to this Chapter as long as funds are available in the solar and wind energy rebate program fund. To the extent that there are insufficient funds in the solar and wind energy rebate program, the Commission shall distribute available funds as specified in this section.

A. Application Approval

The Commission shall distribute rebates based on the date the Commission approves the application for a solar and wind energy rebate system pursuant to section 6 of this Chapter.

B. Available Funds

The Commission shall post on the Efficiency Maine website the amount of funds that are available for solar photovoltaic, solar thermal and wind energy systems as well as either the projected time periods for which the funds will be available for rebates or the number of rebates that will be awarded based upon available funding. The Commission shall inform applicants that the availability of future rebates could be altered by changes in law or contingent upon available funding. In the event that, due to statutory repeal, insufficient funds, or any other reason, the solar or wind energy rebate program lacks sufficient funding with which to fund rebates, the Commission shall post notice on the Efficiency Maine website that rebates for the subject programs are no longer available and that the subject programs are cancelled or suspended in accordance with subsection (C) below. In the event that there are insufficient funds in the solar and wind energy system rebate program fund at the time that the Commission determines that a wind energy system or solar energy system is eligible for a rebate, the Commission shall distribute the rebate after subsequent assessment pursuant to Section 4 of this Chapter result in sufficient funds.

C. Suspension or Cancellation of Programs

The Commission is not obligated to approve any application for a wind or solar energy rebate that otherwise complies with the requirements of this Chapter, if such approval may result in the Commission exceeding its program budget or would be contrary to existing laws. The Commission may suspend or cancel a solar or wind energy rebate program if, at any time, there are insufficient funds in the solar and wind energy rebate program fund. In the event that a program is cancelled or suspended, the Commission shall notify applicants and the general public in the following manner:

1. Notice to applicants whose materials have been submitted. For persons who have submitted applications to the Commission prior to the suspension or cancellation of a program, and whose applications have not been processed prior to suspension or cancellation of the program, the Commission shall notify each applicant in writing that the program has been suspended and shall indicate whether and how the applicant will be considered in the future when the program resumes or whether the applicant will need to submit a new application when additional funds become available.

2. Notice to prospective applicants and the public. For persons who have not submitted applications prior to cancellation or suspension of a program and the general public, the Commission will post notice of such suspension or cancellation on the Efficiency Maine website. The Commission shall update this webpage periodically and as necessary in order to ensure that information is timely and accurate. The Commission shall post such notification on Efficiency Maine website when the program is anticipated to resume and when applications may be submitted.

§6 APPLICATION

A. Review Process

Applications for solar and wind energy system rebates pursuant to this Chapter shall include the information and documentation specified in this section. The Commission shall review applications and notify applicants whether the solar or wind energy system qualifies for a rebate and whether funds are available for the rebate. Applications for solar or wind energy rebates must be filed prior to the installation of the system. Information and documentation that is not practical to provide prior to the installation of the system must be submitted after installation. Applicants who have received approval prior to installation of the system pursuant to the Commission’s application process must demonstrate that the system was installed consistent with the application before a rebate is provided. The Commission may establish a date by which applicants who have received approval prior to installation must install the system to remain eligible for a rebate. To the extent funds are currently available in the solar and wind energy rebate program fund, the Commission shall set aside funds to ensure that funds remain available for applications that have received approval prior to system installation. To the extent that funds are not currently available in the solar and wind energy rebate program fund, the Commission will set aside funds as they become available. The Commission will inform the applicant that the rebate will be provided when funds become available and the time frame in which available funds are expected.

B. Requirements

1. Applicant.Applications shall include the address of the applicant’s legal residence as demonstration of Maine residency and shall indicate whether the applicant is an owner or tenant of the premises in which the system has been installed. If system is located or will be located on premises different from the legal place of residence, the location of the system must be clearly stated. Applications shall include an affirmation by the applicant that the system location is connected to the electrical grid.

2. System Type. Applications shall indicate whether the system is solar photovoltaic, solar thermal–water, solar thermal–air or wind.

3. Solar Energy System Description. Applications for solar energy system rebates shall provide data on system components including manufacturer and model number for collectors and all peripheral equipment. Nameplate in capacity (watts) shall be provided for solar electrical systems and estimated annual energy production based on Maine specific weather data shall be provided for both solar electric and solar thermal systems. Applications shall include estimates that detail total system installed costs, as provided by vendors and/or installers.

a. For applications for solar thermal energy systems that are designed to heat potable water, applicants must show that such systems have been installed, or subject to review and final approval, by a licensed plumber.

4. Wind Energy System Description. Applications for wind energy system rebates shall also be required to provide additional data regarding the description of the system and components of the wind energy system to be installed. This information shall be specified in the wind energy rebate application and terms and conditions and shall include, but not be limited to, the following:

a. The make, model, manufacturer of the tower, turbine, inverter, batteries and other components of the wind energy system proposed to be installed;

b. The name and license number of the “Wind Energy System Installer” who is to install the electrical components of the wind energy system proposed to be installed;

c. The estimated rated power, output voltage and peak electrical power (in kW/hrs) of the turbine and the continuous AC rating of the inverter(s) to be installed;

d. Verification that the height of the tower proposed to be installed meets the minimum requirements as required by the Commission in its application process; and,

e. Verification that the proposed turbine and tower are covered by manufacturer warranties for a minimum period of five (5) years from the date that such products are installed which shall cover any defects in design, material and workmanship of these products when used under the normal use for which they are intended; and,

f. Estimates that detail anticipated costs, including materials and labor, of the proposed wind energy system as provided by vendors and/or installers.

5. Compliance With Eligibility Requirements. Applications for wind energy system rebates shall also include information that shows that a proposed wind energy system will comply with the eligibility requirements under Section 3(B)(2)(a) of these rules.

6. Failure to Meet System Eligibility and Application Requirements. If, at any time, it is found that an applicant has failed to provide any of the information required by the Commission in the application process or has failed to meet eligibility requirements under Section 3 of these rules for wind or solar energy rebates, the Commission staff may reject the subject application or refuse to provide the applicant with the requested rebate.

7. Site Evaluations. The Commission’s staff, or the Commission’s contractor may conduct in-person evaluations of the site proposed for wind energy systems in order to verify that such sites are suitable for a wind energy system and in order to ensure that the applicant is in compliance with the terms and conditions of the application as well as these rules.

8. Installer Qualifications. Applications for solar photovoltaic systems, solar thermal water systems and wind energy systems shall include proof of installer qualifications as set forth below.

a. Applications for solar photovoltaic systems that are installed after January 1, 2007 shall include a copy of the installer’s master electricians license or license number along with a copy of a North American Board of Certified Energy Practitioners certificate issued to the installer or a person working in conjunction with the installer.

b. Applications for solar thermal water systems that are installed after July 1, 2005 must include a copy of the installer’s plumbing license or license number, and a copy of a certificate of competency issued by the Commission to the installer or a person working in conjunction with the installer. For the purpose of this requirement, individuals who have completed and have maintained their solar thermal certifications as required by the Commission will be considered certified by for purposes of this Chapter.

c. Applications for solar thermal water systems that are installed after July 1, 2005, and which are designed to heat potable water, must include a copy of a certificate of competency issued by the commission to the installer and that any system that incorporates the heating of potable water must also be accompanied by a copy of the mater plumber’s license or license number.

d. Applications for wind energy systems, which are to be installed in accordance with this subsection after January 1, 2009, must be installed by a master electrician or by a factory trained and approved dealer for the qualified wind energy system working under the supervision of a master electrician.

9. Installation Date. Applications shall include the date on which the system will be or was installed and documentation supporting the installation date.

10. Rebate. Applications shall provide a clear statement of the rebate requested and a calculation of the rebate.

11. Energy Audit. Applications for a solar photovoltaic system rebate shall include a copy of the energy audit report conducted in compliance with section 7 of this Chapter signed by the energy auditor and the customer, a copy of the energy auditor’s valid certification or association card, and a copy of the audit invoice.

12. Other. Applications shall include other information or documentation that the Commission deems necessary or useful in determining whether a solar energy system qualifies for a rebate pursuant to this Chapter.

§7 ENERGY AUDIT

A. Requirement

To qualify for a solar photovoltaic system rebate, an owner or tenant of residential or commercial property located in the State must demonstrate that an energy audit has been completed in compliance with this subsection prior to receiving a rebate. For purposes of this section, an energy audit is the completion of an on-site walk through audit and delivery of written recommendations for improving electrical and thermal efficiency of the property receiving the solar photovoltaic system. The owner or tenant of the property is responsible for the costs of the energy audit.

B. Prior Audit Exemption

The owner or tenant of residential or commercial property is exempt from the requirements of this section under the following circumstances:

1. The property was previously audited on or after January 1, 2000, in a manner consistent with the provisions of this section and a copy of the audit report is submitted with the rebate application.

2. The property was previously certified as ENERGY STAR or Leadership in Energy and Environmental Design at any time.

C. Audit Content

The energy audit must include the following items:

1. Identification of lighting and appliances efficiency opportunities and recommendations;

2. Identification of thermal shell insulation and air sealing opportunities and recommendations;

3. Identification of space and water heating efficiency opportunities and recommendations;

4. Identification of other electrical or thermal efficiency opportunities and recommendations;

5. Identification of any observed or perceived energy related health and safety concerns; and

6. Referral to or delivery of additional relevant information and education materials and program opportunities as identified by the Maine Solar Energy Rebate Program website.

D. Commission Review

The Commission may review energy audit reports for compliance with the requirements of this section and may perform on-site verification. If an audit report is found to be insufficient, the Commission may contact the auditor or the accrediting institution. If the audit is found to be substantially deficient, the rebate will not be provided. The Commission review process does not endorse the workmanship of any auditor or serve as a guaranty, warranty, or assumption of liability for any work proposed or carried out by an eligible auditor or as a result of the audit.

E. Auditor Qualification

1. Residential Audits. Individuals qualified to do residential energy audits must be certified or eligible and in good standing from one of the following organizations or accrediting institutions:

a. Individuals certified as an energy auditor as determined by the Maine State Housing Authority.

b. ResidentialEnergyServicesNetwork certified home energy raters or auditors.

c. Individuals certified to participate in the Maine Home Performance with ENERGY STAR program or its successor program as determined by the Commission.

d. Individuals certified by the Building Performance Institute.

e. Individuals certified by the U.S. Green Building Council with expertise with residential buildings.

f. Architects and engineers who are licensed by Maine and possess relevant building efficiency energy expertise.

g. Individuals qualified to do commercial energy audits under subsection E (2).

2. Commercial Audits. Individuals qualified to do commercial energy audits must be licensed, certified, or eligible and in good standing from one of the following organizations or accrediting institutions:

a. Individuals or firms working on behalf of, or are authorized to work for, the Efficiency Maine small business walk through audit service.

b. Individuals who have passed the Certified Energy Managers exam.

c. Individuals certified by the U.S. Green Building Council with expertise on commercial buildings.

d. Architects and engineers who are licensed by Maine and possess relevant building efficiency energy expertise.

§8 REPORT

The Commission shall report by December 1st of each year to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters a description of actions taken pursuant to this Chapter.

§9 PROGRAM TERMINATION

This Chapter is repealed on December 31, 2015, unless the Legislature subsequently extends the solar and wind energy rebate program in which case the program shall terminate upon the effective repeal date of the authorizing statutes.

§10 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute and is not inconsistent with the purposes of this Chapter. The Commission, the Director of Energy Programs, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301, 3211-C, P.L. 2009, ch. 88

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 13, 2005. It was filed with the Secretary of State on October 14, 2005 (filing 2005-416) and became effective on October 19, 2005.

AMENDED: This rule was approved as to form and legality by the Attorney General on December 20, 2007. It was filed with the Secretary of State on December 21, 2007 as filing 2007-536, and became effective on December 26, 2007.

AMENDED: This rule was approved as to form and legality by the Attorney General on December 31, 2008. It was filed with the Secretary of State on January 5, 2009 as filing 2009-14, and became effective on January 10, 2009.

AMENDED: This rule was approved as to form and legality by the Attorney General on May 15, 2010. It was filed with the Secretary of State on May 19, 2010 and became effective on May 24, 2010, filing 2010-200.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

95-659 Maine Vaccine Board

Chapter 248 List of Vaccines to be Provided by the Universal Childhood Immunization Program

Code Me. R. 95-659 Ch. 248 List of Vaccines to Be Provided by the Universal Childhood Immunization Program {#sec-95-659-ch.-248 omnilex-key=us-me-regs-official--dept-independent-agencies--95-659 Ch. 248}

Summary: This rule is issued jointly between the Department of Health and Human Services and the Maine Vaccine Board, to implement the provisions of P.L. 2009, c. 595, An Act to Establish the Universal Childhood Immunization Program (22 M.R.S.A. §1066). It lists the vaccines to be provided by the Universal Childhood Immunization Program.

By statute, the Department of Health and Human Services and the Maine Vaccine Board are required to determine a list of vaccines to be provided by the Universal Childhood Immunization Program each year. In determining this list, the Board has considered: (1) vaccines recommended by the Advisory Committee on Immunization Practices of the United States Department of Health and Human Services, Centers for Disease Control and Prevention (“Advisory Committee”) that are available under contract with the United States Department of Health and Human Services, Centers for Disease Control and Prevention; (2) recommendations of the Department, based on the Department's review of the advisory committee recommendations; and (3) clinical and cost-benefit analyses.

The vaccine list along with estimates of population/age cohorts, estimates of current and expected immunization rates, and projections of vaccine wastage will form the basis of the Board’s determination of the total cost of the fund in the succeeding program year.

I. Definitions

A. “Advisory Committee” means the Advisory Committee on Immunization Practices (ACIP) of the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention.

B. “Board” means the Maine Vaccine Board.

C. “Department” means the Maine Department of Health and Human Services.

D. “Program” means the Universal Childhood Immunization Program

E. “Program Year” means July 1st through June 30th of each year

II. Annual Uniform Vaccine List

A. No later than January 1st of each year, the Board shall annually determine the list of childhood vaccines to be made available by the Program during the program year commencing the following July 1st.

B. In determining the list of vaccines, the Board shall consider the following:

1. the recommendations of the Advisory Committee relating to vaccines which are available to the Program under contract with the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention;

2. the recommendations of the Department, based upon the Department’s review of the Advisory Committee recommendations; and

3. clinical and cost-benefit analysis relating to potential vaccines to be included on the list of pediatric vaccines.

III. Authorized List of Uniform Childhood Vaccines

A. 2011 Base Year. For the program year commencing on July 1, 2011, the following childhood vaccines shall be available under the Program:

1. DTaP Vaccines (Diphtheria, Tetanus, acellular Pertussis)

a. Tripedia ® (Sanofi Pasteur)

b. Daptacel ® (Sanofi Pasteur)

c. Infanrix ® (GSK)

2. Hepatitis A Vaccines

a. Vaqta ® (Merck)

b. Havrix ® (GSK)

3. Hepatitis B Vaccines

a. Engerix B ® (GSK)

b. Recombivax ® (Merck)

4. Polio Vaccine

a. IPOL ® (Sanofi Pasteur)

5. Hib Vaccines (Haemophilus influenzae type b)

a. ActHIB ® (Sanofi Pasteur)

b. Pedvax HIB ® (Merck)

6. HPV Vaccines (Human Papillomavirus)

a. Gardasil ® (Merck)

7. Pneumococcal Vaccines

a. Prevnar 13 ® (Wyeth)

b. Pneumovax ® (Merck)

8. Meningococcal Conjugate Vaccines

a. Menactra ® (Sanofi Pasteur)

b. Menveo ® (Novartis)

9. Measles, Mumps and Rubella Vaccine

a. MMRII ® (Merck)

10. Rotavirus Vaccines

a. Rotarix ® (GSK)

b. RotaTeq ® (Merck)

11. TDAP Vaccines (Tetanus Toxoid, Reduced Diphtheria Toxoid and acellular Pertussis – adolescent formulation)

a. Boostrix ® (GSK)

b. Adacel ® (Sanofi Pasteur)

12. Varicella Vaccine

a. Varivax ® (Merck)

13. Combination Vaccines

a. Kinrix ® (GSK)

b. Pediarix ® (GSK)

c. Pentacel ® (Sanofi Pasteur)

d. ProQuad ® (Merck)

14. Influenza Vaccines

a. At least one preservative free, single dose vial presentation

b. At least one multidose vial presentation

c. At least one Influenza vaccine live Intranasal presentation

B. Uniform Vaccine Lists in Subsequent Years

1. The Board shall annually review new vaccines and vaccines not on the authorized list and determine the feasibility of either adding or removing vaccines to or from the authorized uniform list in accordance with the criteria established in section II(B).

2. In the event the Board whether as a result of the above annual review or for any other reason determined appropriate by the Board, determines that revision of the authorized list of uniform vaccines is warranted, it may revise the uniform vaccine list by appropriate Board vote after conducting a public hearing in accordance with 5 M.R.S.A. §8052(2), provided any revision of the list of uniform vaccines be consistent with the criteria established in 22 M.R.S.A. §1066(3)(E) and Section 2(B) of these Rules.

3. Any revision of the uniform childhood vaccine list is contingent upon the availability of adequate funding through the assessment mechanism established by 22 M.R.S.A. §1066(5).

4. The Authorized List of Uniform Childhood Vaccines shall be published on the Maine Vaccine Board Website at: http://www.mevaccine.org/mevaccine.nsf/pages/for-providers.html

5. In the event that the ACIP modifies existing product recommendations or adds a new vaccine product to the Vaccines for Children program, the Board shall meet within 90 days of the ACIP decision and determine if modifications to the authorized list of uniform vaccines is warranted.

IV. Interim Modifications to Uniform Vaccine List

The Board shall periodically review new vaccines and vaccines not on the authorized list and determine the feasibility of either adding or removing vaccines to or from the authorized uniform list in accordance with the criteria established in section II(B).

In the event the Board determines that revision of the authorized list of uniform vaccines is necessary to protect public health prior to revision of the authorized list through rulemaking, it may revise the authorized list on an interim basis, not to exceed 18 months, in accordance with the procedure established by subsection IV(C), provided that any interim revisions be included in the next scheduled Board rulemaking regarding uniform childhood vaccines.

The board may revise on an interim basis the authorized uniform list of childhood vaccines after conducting a public hearing in accordance with the requirements of 5°M.R.S.A. §8052(2).

Any revision of the uniform childhood vaccine list is contingent upon the availability of adequate funding through the assessment mechanism established by 22 M.R.S.A. §1066(5).

IV Determining the total vaccine cost for the program §1066(5)(A)(1)

A. The Department will estimate the total vaccine cost for the succeeding year based on age-cohort population estimates, the ACIP vaccination schedule, the list of vaccines determined by the board and projected immunization rates.

B. The Department will provide the Board with a projected vaccine cost for the succeeding year to be included in the assessment.

C. The Department will review vaccine usage projections and actual usage throughout the year to assure that the program remains within budget. The Department will provide quarterly reports to the board on vaccine usage and budget projections.

D. The Department will promptly notify the Board in the event of a vaccine shortage or other disruption of the vaccine supply that will affect the vaccine budget.

V. Appeals

A. General Provisions. A party aggrieved by a Board decision or action has recourse to administrative review in accordance with the provisions of the Maine Administrative Procedure Act, 5 M.R.S.A. Chapter 375, Subchapter IV.

B. Procedure for Securing Administrative Review

1. A person aggrieved by a Board decision or action may request administrative review by filing a written request for administrative review with the Maine Vaccine Board, c/o Maine Center for Disease Control and Prevention, Division of Infectious Disease Control, Department of Health and Human Services, 11 State House Station, Augusta, ME 04333-0011.

2. A written request for administrative review shall identify the decision or action under challenge, and the issue or issues which form the basis for review.

3. The written request for administrative review must be filed with the Board no later than thirty days after the Board decision or action which is the subject of the appeal.

4. Upon the timely filing of a request for administrative review, the Board shall determine whether or not the decision or action under challenge is appropriate for administrative review and notify the appellant in writing in timely fashion.

5. In the event the Board determines a request for administrative review is appropriate, it shall promptly schedule an administrative review hearing.

6. Any administrative hearing shall be conducted in accordance with the requirements of the Maine Administrative Procedure Act, 5 M.R.S.A. Chapter 375, Subchapter IV.

7. In the event a request for administrative review is granted, the Board shall designate an Administrative Hearing Officer, who shall provide appropriate notice of the hearing date, conduct the administrative review hearing, and issue a written decision upon the close of evidence, all in accordance with the relevant provisions of the Maine Administrative Procedure Act. The Maine Vaccine Board decision after administrative review shall be considered final agency action.

C. Judicial Review

1. A party aggrieved by final agency action of the Maine Vaccine Board has recourse to judicial review in accordance with 5 M.R.S.A. §§ 11001-11008 and Rule 80C of the Maine Rules of Civil Procedure.

History

• STATUTORY AUTHORITY: 22 M.R.S.A. §1066
• EFFECTIVE DATE: February 24, 2011 – filing 2011-58 (EMERGENCY) (filed under 10-144, Department of Health and Human Services)
• EFFECTIVE DATE: July 15, 2011 – filing 2011-210
• AMENDED: January 25, 2012 – relocated to 95-659, Maine Vaccine Board)
• AMENDED: November 2, 2013 – filed jointly with the Department of Health and Human Services, Maine Center for Disease Control – filings 2013-256, 257

99-346 Maine State Housing Authority

Chapter 1 Home Mortgage Program Rule

Code Me. R. 99-346 Ch. 1 Home Mortgage Program Rule {#sec-99-346-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 1}

Summary: The Maine State Housing Authority is authorized to use revenues from the sale of tax-exempt bonds and other housing monies to reduce interest rates and other costs associated with the purchase of a home by low and moderate income households. This rule sets forth the basic criteria for determining eligible borrowers and the terms governing the Maine State Housing Authority’s purchase and servicing of loans to eligible borrowers generated by participating lenders. The Maine State Housing Authority also publishes and regularly updates a procedural guide for participating lenders. The procedural guide includes specific instructions, guidelines, terms and conditions for the sale of single family mortgage loans to the Maine State Housing Authority and the servicing of the loans. The Maine State Housing Authority also enters into agreements with lenders regarding the sale and servicing of the single family mortgage loans.

Definitions

1. “Act” means the Maine Housing Authorities Act , 30-A M.R.S.A. §4701, et seq . as amended.
2. “Applicant” means one or more individuals who have applied for a Mortgage Loan, and any other individual who is expected both to live in the Eligible Residence and to be liable on the Mortgage Loan.
3. “Bond” means a bond of MaineHousing, the proceeds of which are used to purchase Mortgage Loans.
4. “Eligible Borrower” means an Applicant who meets certain criteria and thus may receive mortgage financing from Bond proceeds.
5. “Eligible Residence” means a residential housing structure which meets certain criteria and thus may be financed with Bond proceeds.
6. “Home Mortgage Program” means MaineHousing’s use of revenues from Bond sales and other housing monies to reduce interest rates and other costs associated with the purchase of a home by low and moderate income households as set forth in this rule.
7. “Internal Revenue Code” means the Internal Revenue Code of 1986 , as amended, including applicable rules and regulations proposed or promulgated thereunder.
8. “Lender” means a mortgage lending institution which originates or sells or originates and sells Mortgage Loans for MaineHousing’s purchase.
9. “MaineHousing” means the Maine State Housing Authority.
10. “Mobile Home” means a single housing unit built after June 15, 1976 in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974 , 42 U.S.C.A. §5401, et seq., and is on a permanent chassis and transportable in one or more sections which in the traveling mode are 12 body feet or more in width and when erected on site are 600 or more square feet.
11. “Mortgage” means a written instrument which provides an Eligible Borrower’s interest in an Eligible Residence as security for repayment of a loan made pursuant to this rule.
12. “Mortgage Loan” means an interest-bearing obligation which is secured by a Mortgage and provides permanent financing for an Eligible Residence.
13. “Mortgagor” means a person who receives a Mortgage Loan.
14. “Mortgage Purchase Agreement” means an agreement between MaineHousing and a Lender whereby MaineHousing agrees to purchase Mortgage Loans from the Lender in such form as may be prescribed by MaineHousing from time to time.
15. “New Home” means a previously unoccupied single-unit residence. A New Home does not include 2, 3 or 4 unit dwellings or Mobile Home.
16. “Procedural Guide” means the set of instructions, guidelines, terms and conditions for the origination of Mortgage Loans, the sale of Mortgage Loans to MaineHousing, and the servicing of Mortgage Loans provided by MaineHousing, as amended and supplemented.
17. “Qualified Rehabilitation” means rehabilitation that satisfies the criteria of a qualified rehabilitation as set forth in §143 of the Internal Revenue Code .
18. “Qualified Servicer” means a financial institution which has executed a Servicing Agreement with MaineHousing.
19. “Servicing Agreement” means an agreement between MaineHousing and a Qualified Servicer whereby the Qualified Servicer agrees to service Mortgage Loans purchased by MaineHousing, in such form as may be prescribed by MaineHousing from time to time.
20. “Targeted Area” means either a “qualified census tract” as defined in §143 of the Internal Revenue Code or “an area of chronic economic distress” designated by MaineHousing and approved by the United States as set forth in §143 of the Internal Revenue Code .

Income

1. Income Limits. Unless otherwise permitted by MaineHousing, an Applicant will not qualify as an Eligible Borrower if the Applicant’s income exceeds income limits established under §143 of the Internal Revenue Code . MaineHousing may set lower income limits after consideration of availability of volume cap pursuant to §146 of the Internal Revenue Code and market conditions, including without limitation, interest rates, availability of housing, and acquisition costs. Income limits may vary by geographic area and family size.
2. Determination of Income. Section 143 of the Internal Revenue Code governs the determination of an Applicant’s income.
3. Verification of Income. An Applicant must provide evidence of income and employment as established by MaineHousing and required under §143 of the Internal Revenue Code .

Acquisition Cost

1. Acquisition Cost Limits. Unless otherwise permitted by MaineHousing, a residence will not qualify as an Eligible Residence if the acquisition cost of the residence exceeds acquisition cost limits established under §143 of the Internal Revenue Code . MaineHousing may set lower acquisition cost limits for a particular phase of its Home Mortgage Program after consideration of availability of volume cap pursuant to §146 of the Internal Revenue Code and market conditions, including without limitation, interest rates, availability of housing, and acquisition costs. Acquisition cost limits may vary by geographic area and number of units in a residence.
2. Determination of Acquisition Cost. Section 143 of the Internal Revenue Code governs the determination of the acquisition cost.
3. Included Costs. Generally, the acquisition cost includes the following: 1. all amounts paid in cash or in kind for the residence; 2. the reasonable cost of completing the residence; and 3. the capitalized value of any ground rent.
4. Excluded Costs. Generally, the acquisition cost does not include the following: 1. the value of personal property not affixed to the residence; 2. usual and reasonable settlement or financing costs such as origination fees paid by the Borrower to the Lender, title insurance fees, survey fees, credit report fees, appraisal fees, and attorneys’ fees; 3. the value of services performed by the Applicant or members of the Applicant’s family in completing the residence; and 4. the cost of land which has been owned by the Applicant for at least 2 years prior to the date construction of the residence begins.

Eligible Residence

1. Included Residences. The following may qualify as an Eligible Residence: 1. A conventional single family residence. 2. A unit in a condominium established in compliance with the Unit Ownership Act , 33 M.R.S.A. §560, et seq . or the Maine Condominium Act 33 M.R.S.A. §1601-101, et seq. 3. A single residential structure containing two, three or four dwelling units, one of which will be occupied by the Mortgagor and which was first occupied as a residence at least five years before the date of the Mortgage. 4. Multiple detached units on a single continuous parcel of land provided: 1. all units have been used as residences for more than five years; and 2. the land on which the units are located cannot be subdivided; or if the land can be subdivided, the Mortgagor shall treat the units as one building and shall attach the units with a permanent connection financed with the Mortgagor’s own funds. 5. A tenant-shareholder’s interest in a cooperative housing corporation. 6. Mobile Home in compliance with Section 13.A. of this rule. 7. Qualified Rehabilitation. 8. A New Home with a builder’s warranty that the home is of good quality, free from faults or defects, and fit for use as a home; and the builder’s agreement to promptly correct any defects discovered within one year of purchase.
2. Quality Standards. An Eligible Residence must be located in the State of Maine; be structurally and functionally sound; comply with all applicable zoning, building and health codes and similar requirements; meet applicable private mortgage insurance, federal mortgage insurance or guaranty program requirements; and satisfy prudent lending standards.
3. Use. A residence intended to be used in a trade or business (other than the rental of units not occupied by the Mortgagor in a 2 to 4 unit residence) is not an Eligible Residence unless otherwise permitted by MaineHousing in accordance with §143 of the Internal Revenue Code . A residence used as an investment property or a vacation home is not an Eligible Residence.
4. Owner Occupancy. At the time the Mortgage Loan closes, the residence must reasonably be expected to become the principal residence of the Mortgagor within a reasonable time after the financing is provided.

Land

1. Basic Livability. Land appurtenant to a residence is part of the Eligible Residence if the land reasonably maintains the basic livability of the residence and does not provide, other than incidentally, a source of income to the Mortgagor.
2. Noncontinguous Lots. Noncontiguous lots are not included as part of an Eligible Residence unless local zoning law requires the lot to remain with the residence.
3. Maximum Lot Size. Unless local zoning laws require a larger lot or the value of the land is less than 30% of the appraised value of the residence, the lot of an Eligible Residence may not exceed one acre for New Homes, Mobile Homes being permanently attached to a new site, and farms, and three acres for other homes.
4. Payment for Excess Land. A Mortgagor shall use sources other than the Mortgage Loan proceeds to pay for excess land. However, MaineHousing will accept an appraiser’s determination that the excess land has $0 value.

Prior Ownership

1. Three Year Period. Unless otherwisepermitted by MaineHousing in accordance with §143 of the Internal Revenue Code , a Mortgagor may not have had a present ownership interest in a principal residence, other than the residence financed by the Mortgage Loan, at any time during the three-year period prior to closing of the Mortgage Loan.
2. Included Interests. The following are present ownership interests: a fee simple interest, joint tenancy, tenancy-in-common, tenancy by the entirety, the interest of a tenant-shareholder in a cooperative, a life estate, a bond-for-deed or installment sale contract, and an interest held in trust for an Applicant that would constitute a present ownership interest if held directly by the Applicant.
3. Excluded Interests. The following are not present ownership interests: a remainder interest, a lease with or without an option to purchase, a mere expectancy of inheriting an interest in a principal residence, and an interest in a purchase and sale contract.

New Mortgage

A Mortgagor may not have an existing mortgage on the residence securing the Mortgage Loan prior to closing of the Mortgage Loan unless: (i) the mortgage was for land alone, a construction loan, or a bridge loan or similar temporary initial financing; or (ii) the Mortgage Loan is for Qualified Rehabilitation.

Targeted Areas

MaineHousing shall make certain amounts of Mortgage Loan money available within Targeted Areas as prescribed by §143 of the Internal Revenue Code .

Recapture

Some Mortgagors who sell their residences within nine years of purchase must pay recapture with their federal income taxes in accordance with §143 of the Internal Revenue Code . The recapture amount depends upon the number of years that the Mortgage Loan is outstanding, family size, income and gain realized. The recapture will not exceed the lesser of 50% of the gain realized by the Mortgagor or 6.25% of the Mortgage Loan. The Lender shall inform each Mortgagor of potential recapture as required under §143 of the Internal Revenue Code .

Net Worth Limits

MaineHousing may establish a net worth limit for Eligible Borrowers including household members. If a net worth limit is established, MaineHousing will determine how it will be calculated and what assets, if any, are excluded from the calculation.

Underwriting Standards

Lenders must approve or reject Mortgage Loan applications according to prudent lending practices they use in making other residential mortgage loans in the State of Maine, standard private mortgage insurance requirements, the Procedural Guide, the Mortgage Purchase Agreement, and the requirements of any applicable federal mortgage insurance or guaranty program.

Loan Document Requirements

1. Security. The Mortgage Loan shall be evidenced by a promissory note and secured by a perfected first lien Mortgage on an Eligible Residence.
2. Binding Obligations. The Mortgage, note and any other instruments securing the Mortgage Loan shall create legal, valid, and binding obligations of the Mortgagor, enforceable in accordance with their terms, free from any right of set-off, counterclaim, or other claim or defense.
3. Use of Funds. Mortgage Loan funds shall be used only to finance the acquisition, acquisition plus improvement, or qualified rehabilitation of an Eligible Residence.
4. Term. The original term of the Mortgage Loan shall not exceed thirty years excluding any construction period.
5. Amortization. The Mortgage Loan documents shall provide for monthly payments, interest payable in arrears, and full repayment by maturity. Amortization shall commence within two months after closing. Monthly amortization payments shall be due on the first day of each month, and the final payment date shall be shown on the loan documents.
6. Late Fee. The Mortgage shall provide for a late charge in an amount not to exceed 5% on payments fifteen days or more past due.
7. Escrow. The Mortgage shall provide for the monthly collection of escrow payments for real estate taxes, any mortgage insurance premiums, and hazard insurance premiums in addition to the monthly amortization payments.
8. Good Repair. The Mortgage shall require the Mortgagor to keep the residence in good repair and condition, to keep the residence free from liens and encumbrances, and to maintain hazard insurance.
9. Lender’s Compliance with Laws. Lenders shall make the Mortgage Loans in compliance with all applicable federal and state laws, rules and regulations, including without limitation truth-in-lending laws, fair credit reporting laws, and equal opportunity laws.
10. Mortgagor’s Compliance with Rule. The Mortgage shall contain covenants and representations assuring the Mortgagor’s compliance with this rule.

K. Due-On-Sale. The Mortgage shall contain a due-on-sale clause.

Mobile Homes. Mortgage Loans for Mobile Homes must be secured by a perfected lien on real property consisting of the Mobile Home and the land and meet the following requirements:

1. Permanent Attachment. The Mobile Home must have its wheels, axles and hitch removed; be anchored to land according to the manufacturer’s specifications; and be permanently connected to utilities.
2. Permanent Skirt. The Mobile Home must have a compatible permanent exterior cover from the bottom of the unit to the ground.
3. Compliance of Mobile Home Park. If the Mobile Home is located in a mobile home park, the mobile home park must be in compliance with applicable laws; and an Eligible Borrower shall provide the mobile home park manager with a notice of lien, in form acceptable to MaineHousing, informing the mobile home park of MaineHousing’s lien interest in the Eligible Residence.
4. Leased Land. If the Mobile Home is located on leased land, the lease must meet requirements established by MaineHousing such as a minimum term, termination for cause, and assignability.
5. Additional Documents. A loan for a Mobile Home requires a mortgage, a security agreement, and a supplemental appraisal. If the Mobile Home is single wide with a manufacturing date prior to September 30, 2007 or double wide, a UCC-1 financing Statement is required. If the Mobile Home is single wide with a manufacturing date on or after October 1, 2007, a Certificate of Title from the Bureau of Motor Vehicles is required.

Insurance. Mortgage Loans generally require the following insurance:

1. Mortgage Insurance. Private mortgage insurance acceptable to MaineHousing or federal mortgage insurance or a federal guaranty of repayment, if the loan to value ratio exceeds an amount set by MaineHousing in accordance with prudent lending standards, with any resulting private mortgage insurance being subject to the provisions contained in the Homeowners Protection Act of 1998 .
2. Title Insurance. Lender’s title insurance ensuring MaineHousing has a good and valid first lien Mortgage on the Eligible Residence subject only to: 1. standard exceptions permitted by national mortgage market lenders; and 2. other minor impediments to title if the Lender warrants the impediments do not materially affect marketability and the Lender indemnifies MaineHousing against cost and damages arising from the impediment.
3. Hazard Insurance. Fire and customary extended coverage insurance in an amount equal to the lesser of replacement cost of the improvements or the original principal balance of the Mortgage Loan, unless otherwise permitted by MaineHousing.
4. Flood Insurance. Flood insurance if required in accordance with prudent lending standards or federal mandates.
5. Condominiums. Fidelity insurance, if the Eligible Residence is part of a condominium that has more than twenty units, and comprehensive public liability insurance for the association of unit owners.

Mortgage Loan Portfolio Diversification

MaineHousing reserves the right to restrict the aggregate principal balance of Mortgage Loans (1) insured by one mortgage insurer; (2) insured by a type of mortgage insurer; (3) originated pursuant to a particular MaineHousing program; or (4) secured by certain types of residences such as condominiums, 2 to 4 unit structures, Mobile Homes, and new construction in a particular bond issue or in MaineHousing’s entire portfolio consistent with §143 of the Internal Revenue Code and portfolio diversification needs.

Down Payment/Closing Cost Assistance

MaineHousing may provide down payment or closing cost assistance in addition to the Mortgage Loan.

Lenders

1. Distribution of Mortgage Money. MaineHousing may make Mortgage Loan money available to Eligible Borrowers through Lenders. MaineHousing will notify Lenders when Mortgage Loan money is available.
2. Participation of Lenders. To participate as a Lender, a financial institution must be authorized to do business in Maine and be in compliance with all applicable laws. The financial institution must submit an application including its financial statements, its current underwriting practices and guidelines for residential mortgage loans, staff experience and training, fidelity bond and errors and omissions insurance coverage, and proof that an adequate system of quality control exists for originating residential mortgage loans.
3. Eligibility Determination. A Lender shall review each application for a Mortgage Loan and take reasonable steps to verify the information provided in the application.
4. Loan Registration. A Lender shall register each loan application submitted by an Applicant in accordance with the loan registration requirements contained in the Procedural Guide.
5. Duty to Repurchase. A Lender shall repurchase any Mortgage Loan sold to MaineHousing if: 1. MaineHousing determines that any representation was untrue when made, a misstatement of a material fact exists in any of the documents delivered in connection with the Mortgage Loan, or any warranty or term required of the Lender has been breached; 2. the mortgage insurer or guarantor fails to deliver a certificate of insurance or a guaranty certificate for the Mortgage Loan, if applicable; or 3. the Lender fails to deliver any documents required by the Procedural Guide or required by MaineHousing as a condition of purchase, all in form and substance satisfactory to MaineHousing within the period provided in the Procedural Guide; or 4. the Mortgage Loan does not conform to the requirements of this rule, the Mortgage Purchase Agreement, or the Procedural Guide.
6. First Come, First Served. A Lender shall process applications on a first come, first served basis. A Lender shall not reject an application because the Applicant is not a depositor or customer. A Lender shall accept and process all applications for Mortgage Loans unless it appears from information provided that the Applicant would not be an Eligible Borrower.
7. No Discrimination. A Lender shall not discriminate against any person or group of persons on account of race, color, religion, age, familial status, physical or mental disability, sex, sexual orientation, marital status or national origin, or on any other basis prohibited by federal, state or local law.
8. Mortgage Purchase Agreement. A Lender shall enter into a Mortgage Purchase Agreement with MaineHousing.
9. Prudent Investment and Reinvestment Certificate. Unless otherwise agreed, MaineHousing shall not purchase a Mortgage Loan unless the Lender certifies that in its judgment the Mortgage Loan would in all respects be a prudent investment for its own account and that the proceeds of the sale or its equivalent shall be reinvested in mortgages or notes providing financing for housing within the State of Maine.
10. Continued Participation. MaineHousing may impose conditions on Lenders’ continued participation such as requiring Lenders to issue a certain number of Mortgage Loans or to continue to maintain a certain level of quality in originating and selling Mortgage Loans.

Loan Servicing

1. Qualified Servicers. Only a financial institution designated as a Qualified Servicer may service the Mortgage Loans. A Lender that is not designated a Qualified Servicer and has not previously designated another Qualified Servicer to service its Mortgage Loans shall release its servicing rights to MaineHousing for a release fee established by MaineHousing.
2. Servicing Agreement. A Qualified Servicer shall enter into a Servicing Agreement with MaineHousing.
3. Responsibilities. A Qualified Servicer collects all payments from the Mortgagor, remits principal and interest payments to MaineHousing, and renders an accounting to MaineHousing of all sums collected and disbursed. A Qualified Servicer shall service Mortgage Loans in accordance with prudent servicing practices, the Servicing Agreement, and the Procedural Guide.
4. Fee. A Qualified Servicer receives a monthly servicing fee from MaineHousing.
5. Default. A Qualified Servicer shall give notice of default on a Mortgage Loan to MaineHousing and shall foreclose or take other actions necessary to protect MaineHousing’s interest in accordance with MaineHousing’s instructions.
6. Indemnification. A Qualified Servicer shall purchase any Mortgage Loan serviced by it or otherwise indemnify MaineHousing as outlined in the Servicing Agreement if: 1. its negligence causes the mortgage insurance to lapse; 2. its misfeasance, nonfeasance, or malfeasance with respect to servicing of the Mortgage Loan causes or threatens MaineHousing with material loss; 3. it waives the repayment of the Mortgage Loan upon the sale of the Eligible Residence or approves the assumption of the Mortgage Loan without MaineHousing’s prior written consent; or 4. any attempted foreclosure proceeding is prevented, delayed, or judicially determined to be improper by virtue of a defect in the documents assigned to MaineHousing.

Sources Other Than Bond Proceeds

MaineHousing may appropriate funds from sources other than Bond proceeds to facilitate the Bond sales or reduce interest rates, principal amounts, or closing costs on all or some Mortgage Loans. MaineHousing may defer repayment of loans from such other sources to the sale or refinance of the Eligible Residence, the maturity of the Mortgage Loan, or any other time. MaineHousing will determine the interest rate, if any, charged on such loans.

Rule Limitations

1. Other Laws. If this rule conflicts with any provision of federal or state law, such federal or state law shall control.
2. Pool of Eligible Borrowers. This rule establishes a pool of Eligible Borrowers and does not confer any rights to Mortgage Loan money on such persons. MaineHousing may provide further or more detailed guidance on eligibility criteria and administrative procedures in other publications such as the Procedural Guide.
3. Additional Requirements. This rule does not preclude additional or alternative requirements to implement §143 of the Internal Revenue Code , the Act, or this rule, or to facilitate the Bond sales.
4. Waivers. Upon determination of good cause, the Director of MaineHousing or the Director’s designee may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

BASIS STATEMENT: This replacement rule repeals and replaces in its entirety the current Home Mortgage Program Rule. The replacement rule does the following: (i) MSHA references are changed to MaineHousing; (ii) the new mortgage requirement is clarified to state that a homebuyer may not currently have a mortgage on the residence; (iii) mobile home security requirements are updated to comply with current law; (iv) the requirement for fidelity insurance on condominiums is changed from condominiums with greater than 30 units to condominiums with greater than 20 units; (v) language allowing MaineHousing to limit mortgage insurers by type of mortgage insurer is added; (vi) the section on application requirements for lenders to participate in our single family requirements is expanded; (vii) the Servicing Agreement is referenced in the section requiring indemnification from a Qualified Servicer.

FISCAL IMPACT NOTE: The rule will not impose any cost on municipalities or counties for implementation or compliance.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §4741.1
• EFFECTIVE DATE: January 2 1980 – filing 79-590 as “Single-Family Program Basic Eligibility Criteria”
• AMENDED: March 23, 1980 – filing 80-87
• AMENDED: April 23, 1980 – filing 80-130
• REPEALED AND REPLACED: May 4, 1982 – filing 82-83 as “Home Mortgage Program Rule”
• AMENDED: May 4, 1982 - filing 82-156 (EMERGENCY)
• AMENDED: August 26, 1982 – filing 82-187 (EMERGENCY)
• AMENDED: October 10, 1982 – filing 82-204
• AMENDED: October 27, 1982 – filing 82-220
• AMENDED: November 17, 1982 – filing 82-205
• AMENDED: February 4, 1983 – filing 83-31 (EMERGENCY)
• AMENDED: April 26, 1983 – filing 83-131
• AMENDED: July 6, 1983 – filing 83-174
• AMENDED: June 26, 1985 – filing 85-115 (EMERGENCY)
• AMENDED: October 2, 1985 – filing 85-347 (EMERGENCY)
• AMENDED: November 21, 1985 – filing 85-471
• AMENDED: December 28, 1985 – filing 85-490
• AMENDED: April 1, 1986 – filing 86-96
• AMENDED: June 17, 1986 – 86-219
• AMENDED: August 29, 1987 – filing 87-308
• AMENDED: September 28, 1988 – filing 88-342
• AMENDED: June 5, 1994 – filing 94-227
• REPEALED AND REPLACED: December 29, 1996 – filing 96-588
• AMENDED: January 18, 2000 – filing 2000-37
• AMENDED: January 2, 2005 – filing 2004-601
• REPEALED AND REPLACED: May 9, 2018 – filing 2018-077
• REPEALED AND REPLACED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 5 Energy Cost and Utility Allowance Determinations

Code Me. R. 99-346 Ch. 5 Energy Cost and Utility Allowance Determinations {#sec-99-346-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 5}

Summary: This Rule outlines the procedures which the Maine State Housing Authority (“MSHA”) will utilize to determine Energy Costs and Utility Allowances, as defined in this Rule, for residents of multi-unit housing projects whose rents are subsidized under Section 8 of the United States Housing Act of 1937 or restricted by the funding source or requirements of MSHA multifamily housing programs.

1. Definitions.

A. “Baseline” is the per-unit amount of anticipated energy consumption established through an initial energy audit and subsequent changes based on actual usage data.

B. “Energy Costs” means the reasonable estimate of the average monthly utility bills (except telephone) for an energy-conscious household of modest circumstances living in a particular type of unit.

C. “Gross Rent” is an amount equal to the rental amount plus housing-related utilities for a particular unit.

D. “Owner” means the individual or entity, including any agent of such individual or entity, who owns the project containing the subject unit(s).

E. “Rule” means the MSHA rule entitled “Chapter 5 – Energy Cost and Utility Allowance Determinations”.

F. “Utility Allowance” is an amount of money equal to the estimated reasonable Energy Costs for a unit of a particular size and construction in a particular geographic area. The Utility Allowance for a unit is determined at initial occupancy and can be modified under circumstances described in this rule.

G. “Rent-restricted” means that the maximum rent an owner may charge for a unit is restricted under the terms of MSHA program requirements.

2. Applicability.

Section 3 of this Rule applies to all dwelling units for which MSHA administers a federal rental assistance contract pursuant to Section 8 of the United States Housing Act of 1937, excluding any tenant-based subsidy programs.

Section 4 of this Rule applies to low-income housing tax credit projects, MSHA-financed rental loan program projects, MSHA-financed rent restricted projects, and MSHA-financed supportive housing projects.

3. Section 8 Units.

A. Annual Review.

The Owner is responsible for gathering information and data necessary for the performance of an annual review of the projected Energy Costs for each unit and to compare the results of such annual review with the Baseline for each unit. Based on the results of each annual review and Baseline comparison, the Owner must annually recommend a Utility Allowance for each unit and unit type. The recommended Utility Allowance must represent the Owner’s best estimate of Energy Costs for that particular unit type. The recommended Utility Allowance is not intended to equal all utility costs but rather it is intended to equal an amount necessary to reimburse to the tenant an amount equal to the Energy Costs for that particular unit type. If the results of an annual review require a Baseline adjustment, the Owner must submit to MSHA a summary containing certain information, including, but not limited to, the following information supporting the proposed Baseline change (increase or decrease), and the Owner must receive MSHA approval prior to implementing the proposed Baseline change:

1. description of the type of utilities covered by the Utility Allowance;

2. statement of whether any utility rate increase or decrease took effect during the past 12 months or is expected to be implemented in the next 12 months and the amount of those increases or decreases; and

3. statement of how any energy conservation initiatives have or will impact energy consumption.

B. Utility Allowance Adjustments; Tenant Notice.

1. If at any time throughout the year the Owner determines that there has been a change in applicable Energy Costs, or there have been changes in the costs of other utilities which would result in a 10% or greater increase or decrease in Energy Costs, 5% or greater where the increase or decrease includes heating costs, as compared to the Utility Allowance currently in effect, the Owner shall notify MSHA of such changes and upon receipt of MSHA approval make necessary Utility Allowance adjustments in accordance with any MSHA directive and only after the delivery of any tenant notice as may be required by this Rule.

2. In all cases, tenants must be given at least thirty (30) days prior written notice of any change in the amount of his/her rental payment and Utility Allowance, if applicable. Such notice should include a brief explanation as to how the new amount was calculated, and a request for comments by the tenant. Such comments shall be reviewed by the Owner and the Owner shall provide an appropriate written response to the tenant. Prior to the implementation of any such change the Owner shall submit a written request for revision to MSHA along with copies of any supporting documentation including tenant comments.

C. Change in Responsibility for Payment of Utilities; Heating System Conversion.

1. Upon MSHA’s approval, the Owner may convert from tenant-paid utilities to Owner-paid utilities after initial project occupancy where the highest cost utility is paid by the tenant. In such cases MSHA may require the Owner to engage the services of a certified engineer to conduct an energy audit in accordance with all applicable state recommended standards and/or codes for multi-family developments. The audit will include comprehensive data including but not limited to actual usage data for the previous 12 months for each unit and projected utility usage for each unit. MSHA may require a heating system conversion where such audit shows that actual energy usage for the project exceeds 120% of that which is determined to be reasonable by comparison to the energy usage of comparable projects.

2. In those cases where MSHA has approved a post-occupancy change in the responsibility for the payment of utilities or a heating system conversion, the Owner must provide notice to the tenants at least 60 days prior to such change or conversion outlining the specifics of the proposed change or heating system conversion. If the effective date of the adoption of the change in responsibility for payment of utilities is other than the lease renewal date and the current lease does not provide for such change in responsibility, such notice must also state that any tenant may decline to execute any document seeking to shift the responsibility for utility payments prior to the lease renewal date.

3. MSHA recommends that the Owner hold a meeting of all affected tenants to discuss the proposed Utility Allowance change forty-five (45) days prior to implementation of the proposed change or start of any heating system conversion. The Owner shall retain all tenant comments and Owner recommendations in their files for a minimum of three (3) years.

4. Tenants must be provided a new lease or lease amendment reflecting any change in the responsibility for utility costs.

5. Insofar as possible, any change in responsibility for payment of utilities between Owner and tenant shall take place between the months of May and September.

4. Rent Restricted Units.

If the cost of any utilities (other than telephone) for a residential rental unit are paid directly by the tenant, the Gross Rent for that unit shall include the applicable Utility Allowance as determined under this Section 4. This Section 4 is applicable only for purposes of determining Gross Rent for rent restricted units administered or financed by MSHA. In determining Gross Rent, MSHA will recognize three (3) options for determining the applicable Utility Allowance amounts:

A. Department of Housing and Urban Development (“HUD”) Utility Allowance. In the event it is determined that the subject project will utilize the published HUD Section 8 Existing Housing Allowances for Tenant-Furnished Utilities and Other Services, the applicable Utility Allowance for all rent restricted dwelling units in the project shall be the applicable HUD Utility Allowance.

B. Local Public Housing Authority (“PHA”) Utility Allowance. In the event it is determined that the subject project will utilize a PHA Utility Allowance, the Utility Allowance for all rent restricted units in such project shall be the applicable PHA Utility Allowance.

C. Local Utility Company (“LUC”) Estimate. Any interested party (including a tenant, an Owner, or MSHA) may obtain an estimate from a LUC for purposes of establishing utility usage for a particular unit or unit type and thus determining the appropriate Utility Allowance. The LUC estimate must be in writing and must provide the estimated cost for utility usage for a unit of similar size and construction for the geographic area in which the project containing the unit is located. The LUC estimate may be obtained by an interested party at any time during the project’s compliance period, as determined by MSHA. Unless the parties agree otherwise, costs incurred in obtaining the estimate are borne by the initiating party. The interested party that obtains the LUC estimate (the initiating party) must retain the original of the LUC estimate and must furnish a copy of the LUC estimate to the Owner. The Owner of the project must make available copies of the LUC estimate to the tenants in the subject project.

D. Utility Allowance Changes. If at any time during the project’s compliance period, as determined by MSHA, the applicable published Utility Allowance for a residential dwelling unit changes, the new Utility Allowance must be used to compute Gross Rents within ninety (90) days after the change.

5. MSHA Approval.

Notwithstanding anything contained in this Rule, any change in the responsibility for payment of utilities from Owner-paid to tenant-paid or tenant-paid to Owner-paid must be approved by MSHA prior to implementation.

6. Energy Conservation.

To facilitate energy conservation the Owner should provide tenants with information regarding proper use of appliances and recommended thermostat settings. The Owner should advise and assist tenants wherever possible in the most energy efficient use of their apartments.

7. Budget Plans.

The Owner should provide tenants with information regarding local fuel or utility company budget plans, which may ease charges incurred during high usage months.

8. Federal Regulations.

These procedures are subject to Federal Regulations including 24 CFR Part 813.108 and 24 CFR Part 880.610 and 24 CFR Part 883.

History

• STATUTORY AUTHORITY: 30 MRSA §4651 (1)
• EFFECTIVE DATE: July 17, 1982
• AMENDED: September 3, 1985
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 8, 1996
• STATUTORY AUTHORITY: 30-A M.R.S.A. § 4741.1
• EFFECTIVE DATE: October 9, 2000
• EFFECTIVE DATE: 99-346 Chapter 5 page 6

Chapter 7 Indian Housing Mortgage Insurance Program Rule

Code Me. R. 99-346 Ch. 7 Indian Housing Mortgage Insurance Program Rule {#sec-99-346-ch.-7 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 7}

SUMMARY: This rule sets forth standards governing the administration of the Indian Housing Mortgage Insurance Program. The purpose of the Program is to make mortgage loans available to Indians living on reservations on the same terms as they are available to persons not living on reservations. Due to the restrictions on the use and ownership of land which are peculiar to some of the tribal reservations, financial institutions have been historically reluctant to provide loans to Indians living on reservations. Mortgage insurance provided under the Program offers greater assurance to lenders by removing some of the marketability risks to collateral posed by these restrictions. The Rule sets forth eligibility standards and application, closing, default, and insurance claim procedures.

1. Definitions

A. "Authority" means the Maine State Housing Authority, a body corporate and politic and an instrumentality of the State of Maine.

B. “Applicant” shall mean a tribal member who currently is or will be a resident of the Penobscot Tribal Reservation, the Indian Township Passamaquoddy Reservation, or the Pleasant Point Passamaquoddy Reservation and who applies for mortgage insurance under the Program.

C. "Lender" shall mean a financial institution authorized to do business in Maine and further, shall be that lender that originates mortgage loans insured under the Program.

D. "Committee" shall have the same meaning as set forth in Title 30-A M.R.S.A. § 4933(5), as it may be amended from time to time.

E. “Demand for Insurance Payment” shall mean the formal written demand for a payment of mortgage insurance benefits submitted by a Lender to the Authority.

F. "Fund" means the Indian Housing Mortgage Insurance Fund as defined and established in Title 30-A M. R. S. A. §§ 4933(3) and 4934-A, both as may be amended from time to time.

G. "IHA" means either the Penobscot Tribal Reservation Housing Authority, Indian Township Housing Authority or Pleasant Point Indian Housing Authority.

H. “Loan” means either a permanent mortgage loan or a construction loan originated by a Lender that is insured by the Program.

I. “Loan Insurance Certificate” means the evidence of mortgage loan insurance provided under the Program, in a form determined by the Authority, that is delivered to a Lender.

J. “Loan Insurance Commitment” means the Authority’s commitment to provide Loan insurance made available by the Program.

K. “Program” means the mortgage insurance program governed by the terms and conditions of this Rule.

L. “Property” means the real and related personal property customarily conveyed with the real property to be acquired by an Applicant that is financed by a Loan insured by the Program.

2. Eligibility

A. The Applicant must meet the following standards to be eligible for insurance of a Loan under this Program:

1. The Applicant must appear on the current “Annual Census” of the Passamaquoddy Tribe or Penobscot Nation.

2. The land to be mortgaged must be located on one of the following tribal reservations:

a. the Penobscot Tribal Reservation;

b. the Indian Township Passamaquoddy Reservation; or

c. the Pleasant Point Passamaquoddy Reservation.

3. The Applicant's monthly income must be such that (a) his or her projected monthly housing expense, which shall include mortgage principal and interest, mortgage insurance premiums, property insurance premiums and, if applicable, life and health insurance premiums shall not exceed 28% of the Applicant’s gross monthly income and (b) his or her fixed monthly payments (installment loans, alimony, child support, etc.) shall not exceed 36% of gross monthly income, provided, however, that, on recommendation of the Lender, the Authority may permit use of increased ratios up to 33% and 38% respectively.

4. The Applicant shall have a credit rating and an employment history acceptable to the Lender and the Authority in accordance with standard loan underwriting standards prevalent in the industry.

5. The Applicant shall have sufficient cash to pay closing costs and to make the payment described in Section 3(D) of this Rule.

B. The Property and any existing residential waste disposal system must satisfy applicable life and safety construction or habitability codes and regulations including, without limitation, the requirements of the Maine State Plumbing Code, as it may be amended from time to time.

3. Amount and Nature of Loan and Insurance

A. The Property must be appraised by an appraiser licensed by the Maine Board of Real Estate Appraisal. The appraisal of improvements shall be performed on a replacement cost basis.

B. The maximum principal Loan amount that will be eligible for the Program is the maximum home purchase price for the Authority’s HOME Purchase Program, as governed by Rule Chapter 1 of the Rules of the Maine State Housing Authority on the date of application.

C. Insurance under the Program will insure 100% of the principal amount of a Loan not exceeding 99% of the lesser of the sales price or appraised value.

D. Any difference between the sales price and the principal amount of the Loan shall be paid from cash of the Applicant.

E. Loans for the following purposes are eligible:

1 The construction of a home;

2. The improvement of an existing home or manufactured housing, including the improvement or installation of sewage disposal and water supply systems, the construction of a garage, or any other permanent improvement of the home, provided such improvement is located on the mortgaged land;

3. The purchase of an existing dwelling; or

4. The purchase of manufactured housing located or to be located upon land on one of the Reservations, which land will be mortgaged to secure the Loan.

F. The Lender shall charge an interest rate which does not exceed the greater of the rates charged by the Lender at the time the Loan application is submitted to the Lender for mortgage loans insured by the Federal Housing Administration or guaranteed by the US Department of Veterans’ Affairs, respectively. If the Lender is not offering loans under either of the aforementioned government programs at the time the Loan application is submitted to it, this provision shall not apply.

G. The Loan term shall not exceed 30 years.

H. The Borrower's equity in the Property and improvements to be mortgaged shall be equal to at least one percent of the lesser of the sales price or the appraised value of the Property and improvements.

4. Application

A. The Applicant shall complete an application for the Program that shall be obtained from the applicable IHA.

B. The IHA will confirm whether the Applicant is a tribal member.

C. Upon the determination required in Section 4(B), the IHA shall forward the application to the Lender. The Lender shall arrange for the appraisal of the Property and verify the application’s accuracy. The Applicant shall bear all costs for the appraisal and verification.

D. The completed Application and all supporting documentation shall be submitted to the Authority upon the Lender’s determination of eligibility. The Authority shall determine whether the application and supporting documentation are prepared in accordance with this Rule. If the application and supporting documentation is in accord with this Rule, the application will be submitted to the Committee for its approval. The Authority shall issue a Loan Insurance Commitment to the Lender and Applicant upon the Committee’s approval of the application.

5. Pre-closing Procedures

A. When the Property is located on the Penobscot Tribal Reservation, the Lender shall cause the Property’s title to be searched and a title opinion to be issued for the benefit of both the Lender and the Applicant. The Lender may reject an application if title is defective (notwithstanding the Property’s location on tribal land) provided that, the Applicant shall be given a reasonable opportunity to cure the defect(s) to the Lender’s satisfaction. When the Property is located on the Indian Township or Pleasant Point Reservations, the applicable Tribal Council shall pass a binding resolution setting forth a legal description of the Property and an authorization for the Applicant to assume possession, control, and the right to occupy the Property. A copy of the resolution shall be provided to the Lender upon request.

B. The Lender or IHA shall prepare the necessary real estate and Loan closing legal documents and confirm the availability of adequate fire insurance coverage (with an extended coverage endorsement) for the Property.

6. Closing

A. The Lender shall collect the following amounts at the time of Loan closing, which may be payable out of Loan proceeds:

1. A Lender origination fee equal to the amount charged by the Authority in its HOME Purchase Program as governed by Rule Chapter 1 of the Rules of the Maine State Housing Authority;

2. A maximum, one-time lump sum mortgage insurance premium of four percent of the Loan amount. The actual premium, based on market conditions, shall be periodically announced by the Authority;

3. Fire insurance (with extended coverage) premiums for one year;

4. Credit life insurance and disability insurance premiums, if required;

5. Appraisal costs;

6. Cost of credit verification report;

7. Legal fees.

B. The Authority, upon approval of the Application, shall send to the Lender a Loan Insurance Certificate promptly after the Authority’s receipt of the Lender’s written certification that all Loan closing agenda items have been satisfied or will be satisfied in the ordinary course. Upon a Lender’s written request, the Authority may approve a transfer of the Loan Insurance Certificate to any other financial institution as defined in 30-A M.R.S.A. § 4702(7). Upon a transfer, all of the Lender’s right, title, interest, benefits, and obligations under the Program shall cease and shall be assigned to the successor financial institution who shall then become a Lender within the meaning of this Rule.

7. Default

A. The Lender shall document its efforts to collect any unpaid amounts due under a Loan. All notices of default and other material delivered to a borrower in connection with a Loan in default and copies of any other documentation prepared in connection with a Loan in default shall be delivered to the IHA and the Authority. The Lender shall use its best collection efforts and exercise that degree of diligence customary in its business to collect any unpaid amounts due under a Loan.

B. Notwithstanding a Lender’s efforts to collect unpaid amounts due under a Loan as set forth in Section 7(A) of this Rule, no Loan shall be allowed to remain delinquent for more than 90 days. If, upon the 90th day, the borrower has not cured a default, the Lender shall deliver to the Authority a Demand for Insurance Payment.

C. Upon receipt of a Demand for Insurance Payment, the Authority shall pay an amount from the Fund to the Lender equal to the sum of the outstanding principal of the Loan, accrued interest, and accrued fire insurance premiums, if any.

D. Upon receipt of such payment, the Lender shall deliver the following documents to the IHA or the Authority, as applicable:

1. Original Loan closing documents including an assignment to the IHA of the mortgage and / or other security documents and an endorsement to the IHA of the promissory note and / or other documents evidencing the indebtedness due under the Loan;

2. A release to the Authority of all the Lender's claims arising out of or based upon the applicable Loan Insurance Certificate;

3. The fire insurance policy and all endorsements, with evidence acceptable to the IHA that it has been substituted as loss payee.

E. Within one month of the receipt of the original closing documents as assigned or endorsed to the IHA, the IHA shall either:

1. Accept a conveyance of the Property from the Borrower. In return, the IHA may release the Borrower from any or all obligations under the Loan documents but only with the written consent of the Authority;

2. Lease the Property for a term of no more than one year. A lease to the borrower or the borrower’s family members may only be for a term, rental amount, and on other conditions acceptable to the Authority; or

3. Institute legal proceedings to collect unpaid amounts and / or realize upon the collateral securing the Loan. All such proceedings must be commenced and prosecuted in recognition of the jurisdictional constraints and the rights and duties set forth in “An Act to Implement the Maine Indian Claims Settlement”, 30 M.R.S.A. § 6201 et seq. and in particular, Title 30 M.R.S.A. §§ 6202, 6204, 6205(5), and 6206(2); the federal Maine Indian Claims Settlement law, codified at 25 U.S.C. §§ 1721 et seq.; and the applicable regulations of the Bureau of Indian Affairs of the U. S. Department of the Interior, codified at 25 C.F.R. Part 152.

F. Any amount received by the IHA on account of the disposition or lease of Property shall be remitted to the Authority promptly after receipt and shall be deposited by the Authority in the Fund for additional uses consistent with this Rule. The IHA may deduct the following from any amount prior to its remittance to the Authority:

1. Legal fees and costs;

2. Property insurance premiums;

3. The cost of any repairs approved in advance by the Authority; and

4. Other reasonable expenses related to the disposition, lease, or management of the Property that are itemized and approved by the Authority prior to their incurrence.

G. The IHA may sell the Property. The Property may not be sold for less than the amount due under the Loan without the Authority’s consent. The proceeds of the sale shall be remitted to the Authority, except that the IHA may deduct all foreclosure, Property management, and sale expenses not previously deducted.

H. If the IHA shall fail to follow the procedures set forth in this Section 7 with respect to any one or more defaulted Loans for Properties on a particular reservation, or if there is outstanding for 12 or more consecutive months $50,000 or more paid from the Fund on account of defaulted Loans on a particular reservation, then no further Loans shall be made for properties on that reservation, until such compliance or until the amount paid from the Fund is reduced to below $50,000.

8. Construction Loans

Construction Loans shall be originated and administered by Lenders in accordance with their own prudent lending and loan administration guidelines as applicable to disbursements of Loan proceeds and the inspection of residential buildings except that, notwithstanding the Lender’s guidelines, improvements must satisfy applicable local codes and ordinances and federal construction and habitability standards such as the BOCA Basic National Building Code and the federal Housing Quality Standards as set forth in 24 C.F.R. § 882.109.

9. Manufactured Housing

Loans for the acquisition and / or improvement of manufactured housing may be insured under the Program. All manufactured housing must satisfy all requirements of those provisions set forth in the HOME Purchase Program promulgated as Rule Chapter 1 of the Rules of the Maine State Housing Authority that are applicable to manufactured housing.

BASIS AND BACKGROUND STATEMENT: In November, 1971, Maine voters approved an amendment to the Maine Constitution which added Article IX, Section 14-D. This section permits the State to insure payment of mortgage loans secured by housing on Maine's three Indian reservations. Statutes enabling the Indian Housing Mortgage Insurance Program (30 MRSA §4784, et seq.) were enacted in 1973. Regulations were adopted in 1974. In 1977, the section of regulations governing defaults was amended. Statutory amendments were made in late 1980 as part of the Maine Indian Claims Settlement Act. Among other things, the amendments created the Indian Housing Mortgage Insurance Committee and clarified procedures enabling the State Treasurer to obtain funds to make insurance payments. Regulations were prepared in late 1981 and a public hearing was held on the proposed regulations in April, 1982.

Representative comments received during the 1982 rulemaking process and the Authority's rationale for adopting or failing to adopt suggested changes are set forth below.

Due to the high rate of defaults under the Program (over 50% of the loans have been paid off by insurance), a number of changes were made in order to give banks and homeowners a greater incentive to maintain the loans. A downpayment requirement of 20% and insurance coverage of 90% were proposed. Commenters stated that the downpayment requirement would make the Program unaffordable to most Indians and that banks would not participate without 100% insurance (see Section 3). For the reasons given by the commenters, the Authority provided for a 5% downpayment with 100% insurance. Because of these changes, the Authority did not restore, as requested, the provision contained in the 1974 regulations allowing up to $350 of closing costs to be paid from loan proceeds. It is not standard lending practice to permit payment of closing costs from loan proceeds.

The Authority did not extend the 15-day grace period for making loan payments because there are adequate provisions for time to work out problems in the event of default beyond the 15-day period (see Section 3).

The proposed rule prohibited an Indian Housing Authority from leasing property acquired on default to the defaulting borrower or a member of his family. A commenter stated that this would be unfair in the case where the default was due to illness. For this reason, the rule was changed to require that the monthly rental payment be in an amount no less than the monthly mortgage payment under the defaulted loan (see Section 8.F.1).

The rule requires repayment to the State of funds received by an Indian Housing Authority from sale or lease of a property acquired on default and allows the Indian Housing Authority to recover certain expenses from proceeds of the sale or lease. Formerly, there was an allowance for actual legal fees and costs plus other expenses up to 10% of the proceeds. The rule allows more itemized costs but limits the unspecified category to 5%. The Authority did not restore the original rule provision as requested because the Authority believes that the current rule provides better cost control while still permitting reasonable costs to be paid for out of proceeds of sale or lease of the property (see Section 8.G and H).

By emergency rulemaking the Authority has amended Section 3.F of this rule in order to allow Banks offering loans under this program to charge market interest rates at times when they are not offering to the general public loans which are either insured by the Federal Housing Administration or guaranteed by the Veterans Administration. The adoption of this amendment as an emergency rule change will enable loans to be made under the program before the end of the current construction season. Effective October 26, 1982; Adopted as permanent February 17, 1983.

On January 27, 1983, in response to the request of a potential participating lender, the Authority amended this Rule so as to 1) impose the cost of loan application-related investigative procedures on the applicant (§4.D), 2) clarify the extent of the Bank's obligation in relation to property insurance, i.e., confirmation of its existence (§5.F), 3) reduce the number of days the IHA can grant a Borrower to cure a default from 120 to 90 (§8.C), and 4) empower the Authority to approve a transfer of the Loan Insurance Certificate to another financial institution (§7.D). The Authority believes these amendments to be appropriate in light of its policy of encouraging maximum private lender participation consistent with the overall intent of the Legislature in establishing the program. No comments were submitted on these amendments as originally proposed.

On January 27, 1983, the Authority amended §10.B of this Rule in order to limit mobile homes eligible for mortgage insurance under the program to those 1) constructed in accordance with standards promulgated under either the National Manufactured Housing Construction and Safety Standards Act of 1974 or the Maine Industrialized Housing Law, and 2) meeting certain size requirements. The Authority believes this change to be necessary in order to bring this aspect of the program into conformance with reasonably prudent standards of program administration. No comments were submitted on this amendment as originally proposed.

AUTHORITY: 30 MRSA §4789

EFFECTIVE DATE: July 17, 1982

AMENDED: October 26, 1982

AMENDED: February 9, 1983

BASIS STATEMENT: By emergency rulemaking the Authority has amended Section 3.F of this rule in order to allow Banks offering loans under this program to charge market interest rates at times when they are not offering to the general public loans which are either insured by the Federal Housing Administration or guaranteed by the Veterans Administration. The adoption of this amendment as an emergency rule change will enable loans to be made under the program before the end of the current construction season. No comments were submitted on this amendment when the Authority proposed to adopt it permanently.

EFFECTIVE DATE: March 20, 1983

BASIS STATEMENT: Many of the provisions of the current Indian Housing Mortgage Insurance Program Rule are obsolete and do not reflect current practice in the residential mortgage insurance market. The Board of Commissioners of the Maine State Housing Authority wish to repeal the Rule and replace it with one that reflects current market practices and otherwise, facilitates the efficient administration of the Indian Housing Mortgage Insurance Program. This repeal and replacement of the Rule sets forth revised standards governing the administration of the Indian Housing Mortgage Insurance Program. The purpose of the Program is to make mortgage loans available to Indians living on reservations on the same terms as they are available to persons not living on reservations. Due to the restrictions on the use and ownership of land which are peculiar to some of the tribal reservations, financial institutions have been historically reluctant to provide loans to Indians living on reservations. Mortgage insurance provided under the Program offers greater assurance to lenders by removing some of the marketability risks to collateral posed by these restrictions. The Rule sets forth eligibility standards and application, closing, default, and insurance claim procedures.

One written comment was received from Mr. Richard H. Mitchell, Executive Director of the Penobscot Tribal Reservation Housing Authority. Mr. Mitchell raises two concerns: (1) the premium charge for mortgage insurance is excessive and (2) the Rule does not authorize the Insurance Committee to delegate all or some of its powers.

Section 6(A)(2) of the Rule has been clarified to state that the premium is a one-time charge. The Rule also states that the amount will fluctuate based on the most recent premium charged in the public and private mortgage insurance markets. The statute authorizing the Rule does not allow the Authority to delegate the functions of the Insurance Committee. If and when the statute is amended to allow a delegation, the Authority will accordingly amend the Rule.

Other changes to the rule were made for grammatical and stylistic reasons.

History

• STATUTORY AUTHORITY: 30-A MRSA §4741(1); 30-A M.R.S.A., chapter 201, subchapter X; Me. Const. art. IX, § 14-D
• EFFECTIVE DATE: April 15, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• NON-SUBSTANTIVE CORRECTIONS: October 4, 1996 - removal of underlines and strikeouts which highlighted language altered by the April 15, 1996 amendment.
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• NON-SUBSTANTIVE CORRECTIONS: rul\chapt7

Chapter 12 Residential Property Municipal Securities Approval Rule

Code Me. R. 99-346 Ch. 12 Residential Property Municipal Securities Approval Rule {#sec-99-346-ch.-12 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 12}

Summary: This rule sets forth standards pursuant to which the Authority may issue certificates of approval under the Municipal Securities Approval Program for issuances of revenue obligation securities to provide financing for projects consisting of multi-family or single family residential property.

1. Definitions

A. "Authority" means the Maine State Housing Authority.

B. "Eligible project" means a project which meets the definition of 10 MRSA §963-A(10) and which requires an allocation of the state ceiling on tax-exempt bonds pursuant to Chapter 13 of the Authority's rules.

C. "Municipal Securities Approval Program" means the program established in 10 MRSA §1061 et. seq.

D. "Revenue obligation security" shall have the definition set forth in 10 MRSA §963-A(49).

E. "User" shall have the definition set forth in 10 MRSA§ 963-A(50).

2. Scope and Applicability. 10 MRSA §1061-A(4) provides that in the case of projects consisting of multi-family or single family residential property the Authority shall have the responsibility to approve or disapprove such projects under the Municipal Securities Approval Program. At the time of issuance of the certificate of approval, the Authority will determine whether a proposed project is an eligible project. The Authority's determination will be based on the reasonable expectations of projected use of the project set forth in the application and any additional documents required by the Authority. A certificate of approval issued pursuant to this rule shall be conclusive proof that the determinations required by the Municipal Securities Approval Program have been made. Issuance of a certificate of approval may not be relied upon as a determination that interest on the securities is exempt from federal and state income taxation or as an allocation or reservation under any applicable state ceiling on tax-exempt bonds. Allocation of the state ceiling on housing-related bonds is governed by Chapter 13 of the Authority's rules.

3. Application. Each application for certificate of approval shall include the following:

A. A description of the proposed project sufficient to enable the Authority to determine that it is an eligible project.

B. Any reports available from nationally recognized rating agencies with respect to the user, the issuer or any guarantor.

C. The names of all participants in the financing including the user, any guarantor, the municipality, the municipality's bond counsel and the underwriter.

D. Resolution of municipality authorizing the application.

E. A statement of the municipality that adequate provision is being made to meet any increased demand upon public facilities that might result from the project or that there is no increased demand.

F. Application to Maine Department of Environmental Protection requesting that department to issue its certificate that all licenses required by that department with respect to the project have been issued or that none are required.

G. A commitment from one or more purchasers or a letter of intent from one or more underwriters for the total amount of securities to be issued.

H. An opinion of bond counsel addressed to the Authority stating that the project constitutes an eligible project.

I. A statement by the user explaining how the project will make a contribution to the economic growth of, or the betterment of the health, welfare or safety of the inhabitants of the State.

J. A statement by the user explaining why the project will not result in a substantial detriment to existing housing in the State. The statement must set forth a name and address for any other housing in the State known by applicant to serve the same market. If there is an effect on existing housing the statement must state why any arguably adverse economic effect of the project is outweighed by the contribution which the project will make to the economic growth of, or the betterment of the health, welfare or safety of the inhabitants of the State.

K. A breakdown of the purposes and amounts for which the proceeds of the issue will be expended.

L. An application fee computed as follows:

Amount of Securities Fees

0 - $500,000 $1,000

$500,001 - $1,000,000 $1,000 + 00.2%

of amount over $500,000

$1,000,001 - over $2,000 + 00.1%

of amount over

$1,000,000

The application fee is non-refundable except as provided in section 8.

M. Applications received prior to July 15, 1986, shall also include the following:

i. Financial statements of the project user and any guarantor for at least the last three fiscal years. Audited statements are preferred.

ii. Pro forma projections of operating expenes and revenues during the construction period and for the first year of operation after completion of the project.

iii. An opinion of bond counsel that certain documents will, when executed assure that the municipality will be entitled to receive revenues sufficient to pay the principal and interest of the securities, when they become due and to pay for maintaining and repairing the project or that provision has been made for maintenance and repair.

4. Consideration of the Application. Prior to issuing a certificate of approval, the Authority shall publish, once in the state newspaper and in a newspaper of general circulation in the municipality in which the project is to be located, if other than the state newspaper, notice of the date on which the Authority will consider the application. The notice shall be published at least 7 days prior to the date of such consideration, shall set forth the name of the municipality and the proposed user of the project, describe generally the project and set forth the time and place at which the application will be considered. In addition, the applicant shall give timely notice to any and all known competitors, as set forth in the application in response to section 3, subsection N, of the time and place of which the application will be considered and shall provide the Authority with a copy of each notice. The Authority may prescribe the form of the notice. Where the Authority determines that individual notice is not practical, other or additional forms of notice may be specified.

5. Criteria for Issuance of Certificate of Approval. In determining whether or not to issue a certificate of approval for any project, the Authority shall determine that:

A. The project will make a contribution to economic growth of, or the betterment of the health, welfare, or safety of the inhabitants of the State.

B. The project will not result in a substantial detriment to existing housing in the State. In order to make this determination, the Authority shall consider such factors as it deems necessary to measure and evaluate the effect of the project on existing housing including:

i. Whether, as a result of the project, there will not be sufficient housing demand within the market area of the State to be served by the project to satisfy the existing housing stock; and

ii. Whether any adverse economic effect of the project on existing housing is outweighed by the contribution which the project will make to the economic growth of, or the betterment of the health, welfare, or safety of the inhabitants of the State.

Interested parties shall be given an opportunity to present their objections to the project on grounds that the project will result in a substantial detriment to existing housing. If any such party presents specific objections the Authority may divulge whatever information concerning the project which is permitted by statute and it deems reasonably necessary for a fair presentation by the objecting party and evaluation of such objections. The applicant shall then have the burden of demonstrating that the project will not result in a substantial detriment to existing housing. A reasonably current market analysis may be required by the Authority in order to meet this burden. In cases where no interested parties object to the project this requirement shall be deemed satisfied. If the Authority finds that the applicant has failed to meet its burden, the application shall be denied.

C. Adequate provision is being made to meet any increased demand upon public facilities that might result from the project.

D. The Department of Environmental Protection has certified to the Authority that all licenses required by the department with respect to the project have been issued or that none are required. Any subsequent enlargement or addition to the project for which approval is sought from the Authority shall also require certification by the department.

E. For certificates of approval issued in response to applications received prior to July 15, 1986, the revenue obligation securities shall bear interest at a rate or rates approved by the Authority. In giving approval for an interest rate, the Authority shall specify a rate which shall be the maximum rate for the particular revenue obligation security issue related to a single project, which rate may be a variable rate measured as a percentage of, or otherwise in relation to a prime rate or other measuring standard. In granting approval of interest rates, the Authority shall consider:

i. Interest rates in the current money market.

ii. The credit worthiness of the proposed owner, lessee or other user.

iii. Whether it is reasonable to expect, on the basis of available information that the user or any guarantor will be able to pay debt service upon the securities and to provide for the maintenance, operation and repair of the project.

In making its determination as to rates of interest allowable, the Authority shall give such weight to the factors in this section as it deems adequate and the findings of the Authority shall be final.

6. Approvals. The determination required to be made by this rule and the issuance of certificates of approval in the name of the Authority shall be done by the Director or designee of the Director pursuant to a delegation of authority. Such determination or issuance by the Director or designee shall constitute final agency action.

7. Expenses. The Authority may require the user to reimburse the Authority for its out-of-pocket expenses in connection with the application, including without limitation charges of special counsel and costs of copying, mailing, phone calls, advertising, and travel.

8. Application Fee Rebate. The Authority will rebate part of an application fee if (i) the user requests that the application be withdrawn, all existing certificates be cancelled and rebate be made; and (ii) the Authority determines that there is insufficient unreserved and unallocated state ceiling, as defined in Chapter 13 of the Authority's rules, to allow the user to commence or continue implementation of the project. The amount of any rebate will be the application fee less the Authority's out-of-pocket expenses and costs of personnel allocable to the application, as determined by the Authority.

9. Location of Collateral. Real estate and fixtures constituting a significant portion of the collateral for repayment of revenue obligation securities shall be located within the State. Other types of collateral constituting a significant portion of the collateral for repayment of revenue obligation securities shall be owned by or provided for the benefit of a person or business association with a place of business in the State.

10. Refunding Securities. With respect to any issue of revenue refunding securities to refund securities issued under current law or any predecessor provision, the Authority will not ordinarily require the issuance of a new certificate of approval where there is no expansion of the project and no increase in the outstanding principal amount of the securities unless such issue would require an allocation of the state ceiling on tax-exempt bonds pursuant to chapter 13 of the Authority's rules.

BASIS STATEMENT: This rule implements the Authority's participation in the Municipal Securities Approval Program which the Authority is authorized and directed to undertake by 10 MRSA §1061-A(4) and 30 MRSA§ 4601-A(1)(T). Since proposed Federal legislation and recently enacted State legislation has resulted in no system being in place for municipalities wishing to issue housing related bonds to comply with the Municipal Securities Approval Program, the Authority has adopted this rule by emergency enactment.

In response to the rulemaking proceedings to permanently adopt the rule one comment suggested that the authority to require reimbursement for out-of-pocket expenses should be limited to extraordinary expenses or eliminated since the application fee should cover these expenses. The fee is designed primarily to cover personnel costs, not out-of-pocket expenses. The Authority wishes to maintain flexibility in responding to expenses generated by particular applications and has decided to retain the present language.

AUTHORITY: 30 M.R.S.A. §4651(1); 30 M.R.S.A. §4601-A(1)(T)

EFFECTIVE DATE: April 30, 1986 (EMERGENCY)

EFFECTIVE DATE OF PERMANENT RULE: June 17, 1986

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 8, 1996

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

rul\chapt12

Chapter 16 Low Income Housing Tax Credit Rule

Code Me. R. 99-346 Ch. 16 Low-Income Housing Tax Credit Rule {#sec-99-346-ch.-16 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 16}

APPENDICES:

APPENDIX A: Definitions

APPENDIX B: Pre-Application Submission Requirements

APPENDIX C: Capital Needs Assessment Requirements

APPENDIX D: Owner’s Certificate of Continuing Program Compliance

APPENDIX E: Requirements for Purchase Options and Rights of First Refusal

APPENDIX F: HUD Policy Requirements

99-346 MAINE STATE HOUSING AUTHORITY

Chapter 16: LOW-INCOME HOUSING TAX CREDIT RULE

SECTION 1: INTRODUCTION

The federal Low-Income Housing Tax Credit (LIHTC) was created by the Tax Reform Act of 1986 to encourage private capital investment in the development of affordable rental housing. It is governed by Section 42 of the Internal Revenue Code of 1986, as amended, and associated regulations. As the designated housing credit agency for the State of Maine, MaineHousing is required by Section 42 of the Code and 30-A MRS §§4741(1) and (14) to adopt a Qualified Allocation Plan (QAP) for allocating and administering LIHTC; this rule is the State’s QAP.

This rule repeals and replaces in its entirety the prior Chapter 16, Low Income Housing Tax Credit Rule , except that the allocation provisions continue to apply to projects that were awarded LIHTC under a prior rule, or a program subject to a prior rule.

Capitalized terms used in this rule are defined in Appendix A , unless the context otherwise indicates, or if not defined therein, have the same meaning as set forth in Section 42 of the Code.

Statement Regarding Cost Control

MaineHousing and its development partners have worked diligently to contain costs while improving the quality of construction and ultimately the livelihoods of Maine people who live in properties funded by LIHTC. The controls on per unit costs and available developer fees are a direct result of this partnership and commitment to controlling costs.

SECTION 2: HOUSING NEEDS AND PRIORITIES

MaineHousing and the Department of Economic and Community Development annually complete a statewide needs assessment as part of the Consolidated Housing and Community Development Plan. Maine Consolidated Plan (2025-2029) establishes the following housing priorities:

expand affordable housing opportunities;

improve and preserve the quality of housing; and

help Maine people attain housing stability.

SECTION 3: SET-ASIDES AND MAXIMUM CREDIT AMOUNT

Nonprofit Set-Aside. MaineHousing will set aside at least ten percent (10%) of the annual State Ceiling for Projects in which a Qualified Nonprofit Organization owns an interest and materially participates in the development and operation throughout the Compliance Period in accordance with Section 42(h)(5)(B) of the Code. An Applicant will qualify if it is owned by either a Qualified Nonprofit Organization, or a business corporation which is 100% owned by one or more Qualified Nonprofit Organization(s), and (in accordance with Section 42(h)(5)(C) of the Code) it is the general partner or manager/managing member and controls the Project’s development and day-to-day operation.

Preservation Set-Aside. MaineHousing will set aside up to $750,000 of the annual State Ceiling for the preservation and rehabilitation of one existing multifamily rental housing project if the scope of rehabilitation meets the minimum requirements set forth in Section 5.C.2. and one of the following:

• • 1. at least 25% of its units, or those in a Related Development, are assisted under a Rural Development program; or 2. at least 25% of its units will be converted to Section 8 under HUD’s Rental Assistance Demonstration (RAD) Program, Section 18 Demolition/Disposition Program or other HUD conversion programs.

Demolition and reconstruction on an existing housing site will be treated as new construction and is not eligible for this set-aside.

Maximum Credit Amount.The maximum amount of Credit that will be allocated for each Project is the least of (i) $30,000 per Credit Unit, (ii) $1,200,000, and (iii) the amount MaineHousing determines is necessary to ensure the Project’s financial feasibility and long-term viability.

SECTION 4: ALLOCATION PROCESS

Pre-Application Submission. Each Project must undergo a mandatory Pre-Application review by MaineHousing to assess its feasibility, suitability for housing, and eligibility for Credit. Applicants must submit the information and documents set forth in Appendix B with the pre-application fee specified in Section 4.C. to MaineHousing by Wednesday, July 2, 2026 for the 2027 round and by Thursday, July 1, 2027 for the 2028 round. An Applicant will not be eligible for Credit if

it fails to provide a complete Pre-Application submission in accordance with this subsection, or

there is any material change in the Project between the Pre-Application submission and the Application unless required by MaineHousing.

Application. Applications are subject to the following limitations, conditions and requirements:

Existing Housing.

1. Acquisition and Rehabilitation Projects. Projects that involve the acquisition and rehabilitation of Affordable Housing must include the addition of at least 20 new units, or meet the requirements of the Preservation Set-Aside in Section 3.B.
2. Demolition of Existing Housing. Demolition of existing housing that has not been condemned or declared blight by a municipality is not eligible unless approved by MaineHousing.

Deadline. The deadlines for submitting Applications are Thursday, September 17, 2026 for the 2027 State Ceiling and Thursday, September 16, 2027 for the 2028 State Ceiling.

Format. The Application must be completed and submitted electronically in the form and manner prescribed by MaineHousing. Submitted exhibits must include documentation such as grant award letters, signed documentation on letterhead or evidence of official municipal action to provide evidence of all funding sources and official approvals. MaineHousing may require the Applicant to submit additional information.

Fees. Applicants must pay the following fees when due. All fees are non-refundable.

Type of Fee

Amount

Due Date

Pre-application Fee

$2,000

By Pre-application deadline in Section 4.A.

Application Fee

$2,500

Postmarked for delivery by Application deadline in Section 4.B.2

Allocation Fee

7.5% of Credit

Earlier of Carryover Allocation (Section 8.B.) or Final Allocation (Section 8.A.)

Monitoring Fee*

$1,100 per Credit Unit

Final Allocation (Section 8.A.)

*MaineHousing may charge an additional monitoring fee to cover any increased costs due to income averaging or other extraordinary monitoring requirements during the Compliance Period.

Ineligible Applicants. An Application will be deemed ineligible if one or more of the following has occurred:

The Applicant, any Principal thereof, or Affiliates of either

has an uncorrected IRS Form 8823 in connection with any LIHTC Project to the extent it is correctable unless previously waived by MaineHousing;

has been declared in default or has been 60 calendar days or more delinquent on any loan with MaineHousing, unless the default or delinquency has been cured or there is an approved payment or workout plan in good standing prior to the Application deadline;

has ever been the owner of any project in which MaineHousing has foreclosed a mortgage interest or received a deed-in-lieu of foreclosure of a mortgage interest unless previously waived by MaineHousing;

is presently debarred, suspended, proposed for debarment, or excluded from participation in any federal or state programs;

has sought to achieve early termination of an Extended Use Agreement through the written request to a housing credit agency to present a Qualified Contract;

has in the last 10 years either commenced or had commenced against it any proceeding in or for bankruptcy, receivership, reorganization or any other arrangement for relief from creditors commenced against it that affected a MaineHousing-funded project that was not dismissed within 90 calendar days; or

The tax credit syndicator, investor, or Affiliates of either

transferred its interest in any LIHTC Project after March 25, 2014 in violation of the Ownership Transfer Rule;

failed to make any required capital contributions with respect to any LIHTC Project, and has not corrected such actions prior to the Application deadline;

has sought to achieve early termination of an Extended Use Agreement through the written request to a housing credit agency to present a Qualified Contract; or

has sought to undermine the exercise of a right of first refusal or purchase option with respect to any LIHTC Project by: (i) refusing to honor a right of first refusal or purchase option; or (ii) involvement in a lawsuit challenging the exercise of a right of first refusal or purchase option.

MaineHousing may reject the Application if it determines the deficiencies are not addressed. MaineHousing may also require financial statements from the Applicant, Principal thereof, or Affiliates of either.

Notice to Local Jurisdiction. Upon receipt of an Application, MaineHousing will notify the Chief Executive Officer of the municipality with jurisdiction over the location of the proposed Project. The notice will provide for a 15-day comment period. MaineHousing will consider any comments received.

Selection Process. Applications for the State Ceiling with the highest scores will be awarded Credit until the applicable State Ceiling is fully awarded.

All Applications that meet the threshold requirements in Section 5 will be scored. Applicants must submit a self-score as part of the Application, which will be reviewed by MaineHousing as part of the selection process. Any differences in MaineHousing’s scoring from the Applicants’ self-score will be explained by MaineHousing. Applicants will be afforded five (5) business days to review MaineHousing’s scoring determination and dispute the score if there is a disagreement. Disputes may only be based on evidence submitted with the original Application. Additional information or documentation will not be accepted or considered.

The preservation set-aside is limited to one Project. If the set-aside is not sufficient to complete the Project proposed in the highest scoring eligible Application, MaineHousing may allocate additional Credit, allocate the Credit under the set-aside to the next highest-scoring eligible Application that does not need more than the set aside, or not allocate any Credit under the preservation set-aside. All Applications that participate in the preservation set-aside and do not win will be placed on a waiting list.

The highest scoring Qualified Nonprofit Organization will be the winner of the nonprofit set-asideregardless of its ranking among other Applicants. If the set-aside is not fully awarded to the highest scoring eligible Applicant, MaineHousing may allocate additional Credit to the next highest scoring eligible Applicant for the set-aside, not fully allocate Credit under the set-aside, or require an Applicant that has not indicated that it is participating in the set-aside to participate in the set-aside. MaineHousing may, if necessary, require the Applicant to change its ownership structure. All Applications that participate in the nonprofit set-aside and do not win will be scored with the other Applications.

If an individual or entity owns a direct or indirect interest in more than one Applicant, MaineHousing will not award more than 50% of the total projects awarded in any one annual State Ceiling round to Applicants associated with that individual or entity unless there are no additional Applicants under consideration.

Except as set forth above, MaineHousing will make awards in score order to select threshold-eligible Applications. If the last Application selected for an award of Credit needs more Credit than remains under the applicable State Ceiling, MaineHousing may elect to either (a) not award the remaining Credit to any Application, or (b) award additional Credit under the next annual State Ceiling to the Application. All threshold-eligible Applications that are not selected will be placed on a waiting list. Any Credit that is returned or is otherwise unused will be made available to waiting list Applications using this process.

Notice of Award. After scoring is completed and the five-business day Applicant review period expires, MaineHousing will notify the winning Applicants. Within approximately one week of notification, the winning Applicants will receive a Notice of Award and an assignment of MaineHousing staff.

Credit Allocation. Upon receipt of the fully executed Notice of Award, MaineHousing will evaluate the Application pursuant to Section 7 to determine the amount of Credit, if any, to be allocated.

Termination of Application or Notice of Award. MaineHousing will deem an Application withdrawn and any Notice of Award cancelled if one or more of the following occur without MaineHousing’s written approval after the Application is submitted:

The Application or the Notice of Award is assigned or the Applicant or any Principal thereof changes;

The location of the Project changes from the location identified in the Application;

There is any change which would result in a net reduction (loss of points) in the Application’s score;

There is a change in the Project’s design or financing from what was in the Application which results in a substantial increase in the amount of Credit or other MaineHousing funding required;

The Project’s TDC Index exceeds the TDC Index Cap;

Failure to meet the threshold requirements in Section 5;

Any event in Section 4.D. occurs and is not cured within any applicable cure period;

The Project is determined to be infeasible by MaineHousing, meaning the Applicant has not demonstrated the financial ability to develop and complete the Project and operate it through the Compliance Period; or

There is any other material or substantive amendment or change to the Application.

SECTION 5: THRESHOLD REQUIREMENTS

Applications must meet the following threshold requirements to be eligible for Credit:

Affordability.

The Project will comply with Section 42 of the Code and this QAP for a minimum period of 45 years to maintain the Project as residential rental housing, keep at least 60% of the total Credit Units in a Project occupied by persons with 50% area median income and keep the Credit Units in the Project rent-restricted in accordance with Section 42 of the Code.

The Applicant waives the right to request MaineHousing to present a Qualified Contract under Section 42(h)(6) of the Code.

The Applicant must submit a letter of intent from an investor (and, in the event of any change in investor, the replacement investor) in which the investor agrees to the granting of an option to purchase: (i) the Project; and (ii) the partnership interest of the limited partner(s) or membership interest of the non-managing member(s) of the Project owner (“Purchase Options”), to one or more of the general partner, managing member, developer or sponsor on terms that at a minimum satisfy the threshold requirements set forth in Appendix E. The investor must also agree in the letter of intent that the Purchase Options complying at a minimum with the threshold requirements in Appendix E will be included in the Project owner’s limited partnership agreement or limited liability company operating agreement.

If the Applicant, general partner, managing member, developer, or sponsor of the Project is a Qualified Nonprofit Organization, the Applicant must submit a letter of intent from an investor (and, in the event of any change in investor, the replacement investor) in which the investor agrees to the granting of a right of first refusal (“ROFR”) to the Qualified Nonprofit Organization on terms that at a minimum satisfy the threshold requirements set forth in Appendix E. The investor must also agree in the letter of intent that the ROFR complying at a minimum with the threshold requirements in Appendix E will be included in the Project owner’s limited partnership agreement or limited liability company operating agreement.

Total Development Cost (TDC). Cost reasonableness will be evaluated using an index, which is the weighted average of the TDC per unit and the TDC per bedroom. For mixed-use projects, the TDC for only the residential portion of the project, including common areas, will be used for this calculation. The weighted average will be calculated as follows:

([2 X TDC/unit] + [TDC/bedroom]) divided by 3.

The product of this calculation will be referred to throughout this document as the “TDC Index”. An Application will be rejected if the TDC Index exceeds the TDC Index Cap below for a project of its type at any time prior to the later of the construction loan closing or carryover allocation.

Type of Project

2027 TDC

Index Cap

2028 TDC

Index Cap

Adaptive Reuse

$414,750 per unit

**

New construction

$388,500 per unit

**

Acquisition and rehabilitation of existing housing

$357,000 per unit

**

**For 2028, MaineHousing will review the Consumer Price Index for New England and adjust the TDC Index Caps accordingly to reflect market adjustments.

Demolition and reconstruction of all housing on the same site or another site will be treated as new construction. If a Project involves more than one project type, the TDC Index Cap for the Project is the average of the TDC Index Caps allocable to each type, weighted by the number of units of each type.

Acquisition and Rehabilitation of Existing Housing. Projects that involve the acquisition and rehabilitation of existing multifamily housing are subject to the following:

Capital Needs Assessment. The Application must include a capital needs assessment satisfying the requirements set forth in Appendix C.

Minimum Rehabilitation Requirements. The Rehabilitation Costs per unit of existing housing must be at least $75,000.

Relocation/Displacement. The Project must comply with MaineHousing’s Temporary Relocation and Permanent Displacement Policies and, if the Project is federally-assisted, all applicable federal requirements, including the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. The Applicant must take reasonable steps to minimize the displacement of existing tenants of the Project. The Application must identify any tenants who will be permanently displaced and the reason for the displacement. The Project’s TDC must include all costs associated with permanent and temporary displacement or relocation. MaineHousing will not allocate Credit until it has approved a project’s relocation plan.

D. Development and Management Experience and Capacity. Applicant teams must have sufficient knowledge, experience and capacity to adequately design, develop, complete, maintain, manage, and operate LIHTC Projects and provide related services, such as accounting, tax and legal advice, and resident service coordination. If the Project will involve multiple subsidy sources in addition to LIHTC, which results in overlapping targeting and rental restrictions, the Applicant team must have sufficient knowledge, experience and capacity to handle the increased complexity. If MaineHousing determines the Applicant’s team lacks sufficient qualifications, the team may be required to

hire a qualified consultant,

hire additional qualified staff, or

replace a team member.

Site Control. The Applicant must have site control of the Project throughout the Application process in the form of an option, a purchase and sale contract, ownership, or long-term lease. The Applicant, its agents, and MaineHousing must have access to the Project site, and if the Project is an existing occupied property, access to records and other information about the existing tenants, including current rent and income information.

Growth Management Limitations. A Project that involves the new construction or acquisition of newly-constructed residential rental property or the conversion of existing buildings to residential rental property must comply with the State’s Growth Management Law, 5 M.R.S. §3234, as amended. Projects must meet one of the following two sets of criteria to be eligible for a Credit allocation:

• • 1. If the municipality in which the Project is located has adopted a comprehensive plan or growth management plan that is consistent with applicable State law, then the Project must be in a designated growth area as identified in such plan; or 2. Otherwise the Project must be located in an area

served by a public sewer system with existing capacity for the Project,

identified as a census-designated place in the latest Federal Decennial Census, or

in an urban municipality and defined under 23 M.R.S. §754 as compact.

The law exempts projects that exclusively serve certain populations, such as persons with disabilities, who are homeless, or are wards of the State.

Project Feasibility. The Applicant must have the financial ability to develop and complete the Project and to operate it throughout the Compliance Period.

Development Budget. The Applicant must identify all

• • • 1. sources of funding for development and completion, whether direct or indirect, including the amount, timing, terms, conditions, and status (e.g. “applied for” or “committed”) as of the date of the Application and uses of the funding based on the projected costs of and schedule for developing and completing the Project; and 2. sources and uses of funding for the Project, whether direct or indirect and whether they are included in the development budget for the Project.

Operating Budget. The Applicant must identify all

sources of income, including rent from the residential units, any income from commercial or non-residential space, and the amount, terms and conditions of rental or operating assistance; and

costs of operating the Project as projected over the Compliance Period. The Applicant also must identify all forms of property tax relief (such as a PILOT, tax abatement or exemption, or Tax Increment Financing) and other assistance that reduces operating costs.

Related Development. Any Related Development must be completed prior to or concurrently with the completion of the Project, and there must be sufficient funding to operate the Related Development.

If MaineHousing determines that the Application includes information that is inconsistent with applicable requirements or is unreasonable based on comparable LIHTC projects, industry standards, or market conditions, MaineHousing may where it deems appropriate re-characterize such information to assess Project Feasibility notwithstanding the identified issue with the information provided.

Phased Projects. Applicants may not submit an Application for more than one phase of a multi-phase Project in an Application round. If a single phase of a multi-phase project is awarded Credit, it must comply with the timeline in the Notice of Award and cannot be delayed to align with a potential award of a future phase. If a delay occurs that is beyond the Applicant’s control, MaineHousing, in its sole discretion, may authorize a modification to the Notice of Award to allow for an extension of the Project timeline.

Project Design and Construction Requirements. The design and construction or rehabilitation of the Project must comply with MaineHousing’s Construction Standards and all applicable local, state and federal codes, regulations, statutes and ordinances. The latest version of Construction Services’ Quality Standards and Procedures Manual can be found here:

https://www.mainehousing.org/programs-services/housing-development/construction-services

When applicable, Projects must also comply with:

The Build America, Buy America Act (BABA), enacted as part of the Infrastructure Investment and Jobs Act, Infrastructure Investment and Jobs Act, Pub. L. 117-58 and 2 CFR 184. BABA established a domestic content procurement preference for all Federal financial assistance obligated for infrastructure projects after May 14, 2022. The domestic content procurement preference requires that all iron, steel, manufactured products, and construction materials used in covered infrastructure projects are produced in the United States. This requirement is known as the “Buy America Preference” (BAP).

BABA FAQs

https://www.hudexchange.info/baba/faqs/?utm_source=HUD+Exchange+Mailing+List&utm_campaign=87c88d5f1e-BABA-FAQs-Now-Available-3.4.24&utm_medium=email&utm_term=0_-87c88d5f1e-%5BLIST_EMAIL_ID%5D

Section 3 of the Housing and Development Act of 1968 (12 U.S.C § 1701u) and its associated regulations (24 C.F.R. Part 75). The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide training, employment, contracting and other economic opportunities to low- and very low-income persons, especially recipients of government assistance for housing, and to businesses that provide economic opportunities to low- and very low-income persons.

Please refer to the Section 3 Contractor, Subcontractor and Subrecipient Package on our website:

https://mainehousing.org/docs/default-source/development/construction-services/other-documents/section-3-contractor-subcontractor-subrecipient-package.pdf?sfvrsn=26f28615_5

Project Amenities. The Project must have the following amenities and services:

1. Community Room. The Project must include an on-site community room with sufficient capacity to serve tenants’ needs. For a scattered-site Project, only one community room is required and should be centrally located to the greatest extent possible to best serve all tenants.
2. Laundry Facilities. The Project must include either a washer/dryer hook-up in each unit or a fully accessible, centrally located laundry facility with sufficient capacity to serve all tenants.
3. Broadband Access. The Project must include broadband infrastructure with capacity sufficient to support the provision of Telehealth services.

Broadband infrastructure includes cables, fiber optics, CAT5e (or greater) interior wiring, or other permanent (integral to the structure) infrastructure, including wireless infrastructure, as long as the installation results in broadband infrastructure in each dwelling unit sufficient for the build-to standard of The Maine Connectivity Authority.

Healthcare service providers and the tenants receiving care may not be charged for the use of the internet or wireless and telephone services provided for telemedicine services.

1. Shared Facilities. An amenity will meet the requirements if the amenity: - - 1. is fully accessible and located on an accessible path to the Project; 2. is within an existing multifamily housing project adjacent to the subject site, 3. has sufficient capacity to serve both the Project’s tenants and the existing project, 4. will be available to the Project’s tenants during the Compliance Period on the same terms as the residents of the existing multifamily project, and 5. will not charge the tenants to use the shared amenity other than a reasonable fee that does not exceed the amount charged to any others for the same use.
2. Recreational Activities. An area(s) of recreational activity must be located on the Project site or within a ½ mile. The area(s) and activities must be free of charge to the tenants and not require membership. Projects with single-family detached style units satisfy this requirement if each unit has a private lawn with sufficient room for playground equipment, gardening or other activities acceptable to MaineHousing.
3. Exceptions. The requirements of this subsection do not apply to existing multifamily housing projects if the Applicant cannot comply with the requirements because of the nature of the site, structural limitations, zoning restrictions or other land use limitations.

Resident Service Coordination. The Applicant must make a resident service coordinator available twice weekly to the tenants on-site a minimum of one (1) hour per week for every five (5) Credit Units. The coordinator shall meet with tenants in a private and confidential manner to evaluate individual needs and make appropriate referrals. The services provided must be free of charge to the tenants. The Applicant must maintain adequate funding throughout the Compliance Period.

Smoke-free Housing. The Applicant must

implement a written occupancy policy prohibiting smoking in the units and common areas,

include a non-smoking clause in the lease for every household, and

make educational materials on tobacco treatment programs (including the phone number for the statewide Maine Tobacco HelpLine) available to all tenants through the resident service coordinator.

Waiting List Preference. The Applicant must give an occupancy preference to eligible persons whose names are on a public housing or Section 8 waiting list, except for Projects: (i) financed by Rural Development, or (ii) with Section 8 Project-Based Rental Assistance (preference will apply to any Credit Unit without project-based rental assistance).

SECTION 6: SCORING CRITERIA

The Applicant must complete all information and submit all documentation required to be eligible for points.

Project Characteristics

Rehabilitation or Reuse of Existing Housing, Structure or Site . Up to 4 Points

The Project site exhibits one or more of the following characteristics (2 points for each that applies, up to 4 points total):

• 1. Rehabilitation of existing rental housing containing 5 or more units without permanently displacing any existing tenants or increasing their housing costs (including rent and all other charges paid by the tenant) by more than 10%; 2. Rehabilitation, remediation, or reuse of an existing building or structure that has a current use other than multifamily rental housing; 3. One or more buildings or structures used for purposes other than single family residential housing or agriculture purposes, have been or will be demolished or removed for purposes of redeveloping the site; 4. Lots left vacant or nearly vacant in the development of a downtown or other city or town center, such as vacant lots or parking lots abutting commercial buildings and/or multifamily rental housing. Vacant lots in single-family residential areas are not eligible for points under this subsection. Undeveloped portions of existing sites are not eligible for points unless the existing project on the site previously satisfied one of the above criteria; or 5. Specifically designated by a municipality’s elected body, planning board, or zoning board for redevelopment to renew a blighted area (as defined by 30-A M.R.S. §5153) or remediate environmental risks to the occupants.

Historic Rehabilitation. 5 points

The Project includes the rehabilitation of a certified historic structure using capital contributions generated from federal and state historic rehabilitation tax credits.

Projects Using Wood Fiber Insulation. 1 point

The Applicant pledges that a minimum of 50% of the square footage of each building’s exterior thermal envelope will include wood fiber insulation unless it is deemed by MaineHousing, in its sole discretion, that it is infeasible due to either costs or supply chain delays.

Populations with Special Needs. 3 points

The Project gives an occupancy preference for at least 20% of all the units, but not less than 4 of the units, for Persons Experiencing Homelessness or persons who have disabilities, are victims of domestic violence, or have other special housing needs, to create permanent supportive housing for persons who require that level of intervention within the special needs populations.

The Applicant must commit to maintaining a separate waiting list for these units and make appropriate, voluntary services available through a qualified third-party provider other than the resident service coordinator required under Section 5.K. Project-Based Vouchers will not be available from MaineHousing for preference units, except in situations where an Applicant receives funding from the National Housing Trust Fund as described below in Section G.

Family Housing. Up to 6 points

The Project is for families and a minimum percentage of the Credit Units are two and/or three or more bedroom units as follows:

Project for Families with Minimum Percentage of Credit Units by Bedroom Size

Points

At least 50% of the Credit Units are two or more bedroom units and at least 20% of the Credit Units are three or more bedroom units

6 points

At least 70% of the Credit Units are two or more bedroom units

3 points

Accessibility. Up to 12 points

One (1) point for each unit that

exceeds the minimum number of such units required by applicable federal and state accessibility laws, and

meets the requirements for a Type A unit under ANSI Standard A117.1-2009, up to the maximum points by project type below.

Type of Project

Maximum Points

Projects providing Housing for Older Adults

12 points

Projects that are not specifically for Older Adults or Families, having only 1 BR and/or efficiency units

9 points

Family Projects

6 points

Financial Characteristics

National Housing Trust Fund. 3 points

The Applicant agrees to accept and use any funding from MaineHousing’s National Housing Trust Fund program for the Project. Any funding award will require a certain number of units in the Project to be affordable to and occupied by Extremely Low Income households. Project-Based Vouchers will be made available for the minimum number of required National Housing Trust Fund units, as determined by MaineHousing. National Housing Trust Fund awards require a Part 93 Environmental Review and Project-Based Vouchers require a Part 58 Environmental Review. Applicants should review the requirements before agreeing to accept funding, to avoid withdrawal of an Application if the requirements cannot be met. Awarding points is not a commitment of funding from the National Housing Trust Fund.

Acquisition Cost. Up to 5 points

Points are based on the percentage by which the acquisition costs are less than the average acquisition costs for a project of its type as follows:

Type of Project

Average Acquisition Cost

Acquisition and rehabilitation of existing housing

$60,500 per unit

New construction

$7,500 per unit

Adaptive Reuse

$10,500 per unit

For purposes of this subsection, acquisition costs include

• • • 1. the purchase price for all of the land and any existing building(s) even if donated or leased to the Applicant at below market value, 2. the cost of razing or demolishing any building(s) and structure(s), or any part thereof, on the Project site, and 3. the Capitalized Lease Value of all leases of land or land and building(s) that are part of the Project, with the exception of parking spaces.

The value of any project reserves transferred to the Project as part of the acquisition and included in the purchase price will not be included for purposes of this subsection.

Percentage of Project’s Acquisition Cost as compared to Average Acquisition Cost

Points

0% to 1% (nominal)

5 points

1% to 20%

4 points

20% to 40%

3 points

40% to 60%

2 point

60% to 80%

1 point

Property Tax Relief. Up to 3 points

Points are based on the percentage of the Project’s annual incremental property tax revenue returned to the Applicant or foregone by the taxing authority as follows:

Percentage and Duration of Tax Benefit or Relief

Points

50% to <75% for at least 15 years from the Placed in Service date

1 point

50% to <75% for at least 30 years from the Placed in Service date

2 points

≥ 75% for at least 15 years from the Placed in Service date

2 points

≥ 75% for at least 30 years from the Placed in Service date

3 points

Only Tax Increment Financing, payment in lieu of taxes, abatement, or other property tax relief arrangement approved by the taxing authority and all other applicable governing entities are eligible. A Project that is either a) located in a jurisdiction that does not assess property taxes or b) exempt from property taxes will be awarded one (1) point.

Funding made possible by an Affordable Housing TIF will not be eligible unless the Applicant submits a complete application for the Affordable Housing TIF to TIFs@mainehousing.org at least 30 calendar days before the applicable Application deadline (for the 2027 State Ceiling no later than Tuesday, August 15, 2026 and for the 2028 State Ceiling no later than Tuesday, August 14, 2027). In order to count an Affordable Housing TIF application as “complete”, the application must include all of the information required by MaineHousing’s Affordable TIF Application Form and the Affordable Housing TIF Development Plan must have been approved by the relevant municipality. Points will not be awarded for an Affordable Housing TIF unless it is ultimately approved by MaineHousing, even if it was submitted before the applicable deadline.

Project Location

Housing Need. Up to 10 points Points are based on the need for the type of housing in an area as follows:

• • 1. Projects providing Housing for Older Adults located in the following Communities:

Older Adults

Points

Auburn

Augusta

Bangor

Bar Harbor

Belfast

Biddeford

Bingham

Blue Hill

Boothbay Harbor

Brewer

Bridgton

Brunswick

Buxton

Calais

Camden

Cape Elizabeth

Caribou

Cumberland

Damariscotta

Dover-Foxcroft

Eastport

Ellsworth

Falmouth

Farmington

Fort Kent

Freeport

Gorham

Hallowell

Hampden

Houlton

Jackman

Kennebunk

Kittery

Lewiston

Lincoln

Lisbon

Machias

Madawaska

Millinocket

North Yarmouth

Norway

Orono

Patten

Pittsfield

Portland

Presque Isle

Rockland

Rockport

Rumford

Saco

Sanford

Scarborough

Skowhegan

South Portland

Topsham

Van Buren

Waterville

Westbrook

Winslow

Wiscasset

Yarmouth

10

Arundel

Benton

Boothbay

Canaan

Chelsea

Clinton

Durham

Fairfield

Farmingdale

Glenburn

Greene

Greenville

Hancock

Harrison

Hermon

Kennebunkport

Lamoine

Limestone

Lincolnville

Lyman

Madison

Manchester

Mars Hill

Mexico

Milbridge

Mount Desert

Naples

Nobleboro

Norridgewock

Oakland

Old Orchard Beach

Orland

Orrington

Oxford

Sebago

Sidney

Southwest Harbor

Vassalboro

Warren

West Bath

West Gardiner

Wilton

Windham

Woolwich

8

Ashland

Bath

Bethel

Bremen

Brooklin

Brooksville

Charleston

Chesterville

Cornish

Cornville

Dayton

Dedham

Denmark

Dexter

East Machias

Easton

Eddington

Edgecomb

Fort Fairfield

Frenchville

Fryeburg

Gardiner

Garland

Guilford

Hebron

Hodgdon

Hope

Kenduskeag

Linneus

Long Island

Machiasport

Mapleton

New Sharon

New Sweden

Newcastle

Newport

Old Town

Otis

Owls Head

Paris

Penobscot

Pownal

Randolph

Rangeley

Sangerville

Sebec

Sedgwick

South Bristol

Southport

Stonington

Strong

Surry

Thomaston

Tremont

Trenton

Veazie

Washburn

Waterford

West Paris

Westport Island

Woodland

6

• • 1. Other Housing Projects in the following Communities:

Other Housing

Projects (not

specifically for Older Adults)

Points

Auburn

Augusta

Bangor

Bar Harbor

Biddeford

Blue Hill

Boothbay Harbor

Brewer

Bridgton

Brunswick

Calais

Camden

Cape Elizabeth

Caribou

Cumberland

Damariscotta

Danforth

Dover-Foxcroft

Ellsworth

Falmouth

Farmington

Fort Kent

Freeport

Gorham

Greeneville

Hallowell

Houlton

Lewiston

Limestone

Lincoln

Machias

Madawaska

Millinocket

Orono

Patten

Portland

Presque Isle

Rockland

Rockport

Rumford

Saco

Sanford

Scarborough

Skowhegan

South Portland

Van Buren

Waterville

Westbrook

Windham

Wiscasset

Yarmouth

10

Arundel

Ashland

Belfast

Benton

Brooksville

Canaan

Charleston

Chesterville

Clinton

Cornish

Dayton

Dedham

Durham

East Machias

Frenchville

Fryeburg

Greene

Hancock

Hebron

Hermon

Hodgdon

Hope

Kenduskeag

Kittery

Lamoine

Littleton

Lyman

Machiasport

Manchester

Mapleton

Mount Desert

Naples

New Sharon

Nobleboro

Norridgewock

North Yarmouth

Old Orchard Beach

Old Town

Orland

Orrington

Owls Head

Sangerville

Sebago

Sedgwick

Sidney

Strong

Surry

Tremont

Trenton

Veazie

Warren

Waterford

West Bath

West Gardiner

West Paris

Woolwich

8

Bath

Bethel

Boothbay

Buxton

Chelsea

Dexter

Eddington

Fairfield

Fort Fairfield

Gardiner

Glenburn

Hampden

Harrison

Kennebunk

Kennebunkport

Lincolnville

Madison

Mexico

Newcastle

Newport

Norway

Oakland

Oxford

Paris

Southwest Harbor

Stonington

Thomaston

Topsham

Vassalboro

Washburn

Wilton

Winslow

6

• • 1. Projects located on Native American tribal lands will be awarded 8 points.

For the Applications submitted under the 2027-2028 QAP, Applicants may receive

the Housing Needs score outlined in the 2025-2026 QAP for the municipality in

which the Project is located, if that municipality saw a decrease in score in the 2027

2028 QAP.

Community Revitalization. Up to 5 points

Two (2) points if the Project is located within the boundaries of and contributes to the revitalization goals and efforts identified in a municipality’s comprehensive plan or a Community Revitalization Plan.

Two (2) points if the Project is located in a QCT and at least 20% of the units are market rate.

One (1) extra point if the Project also involves the preservation of existing Affordable Housing.

Smart Growth. Up to 10 points

Smart Growth Feature

Points

Access to Public Transportation. The Project is located within a Safe Walking Distance (½ mile or less) of a designated pick-up location for existing Fixed-route Public Transportation.

5 points

Demand Response Transportation. Demand Response Transportation is available to all tenants with no eligibility criteria that would limit or deny service.

5 points

Sponsor Characteristics

Readiness. Up to 10 points

MaineHousing must approve both the design to be submitted to the municipality and the State and the final design, including all plans, details and specifications. The Project and any Related Developments must have all

municipal land use approvals (except building and other permits 5 points

customarily issued during construction), and

State land use approvals (such as site plan, subdivision, storm 5 points

water, or wetlands approvals) required to proceed with and complete construction.

As of the Application date, the timeframe to appeal all such approvals must have expired with no appellate action being taken, or all appeals have been resolved.

Developer Capacity. Up to 5 points

Points are based on the development experience of the Applicant, any Principal thereof, or Affiliates of either as follows:

Successfully completed at least one multifamily rental housing project with MaineHousing funding or completed at least one LIHTC Project in another state(s).

5 points

Experience successfully developing and operating multifamily rental housing or experience managing Affordable Housing, and the Applicant has a contract with a qualified LIHTC consultant to develop the Project.

4 points

Experience successfully developing and operating multifamily rental housing.

3 points

Owner Performance. Up to a 5 Point loss

Points reductions are based on the recent performance of the Applicant. MaineHousing may reject the Application if it determines outstanding deficiencies are not addressed, or require financial statements from the Applicant, Principals thereof, or Affiliates.

Has been 60 calendar days or more delinquent in the payment of any MaineHousing loan since September 1, 2021 (except delinquencies resulting from the delay or loss of Section 8 housing assistance payments), was declared in default by MaineHousing, or needed a financial workout for any project within the last 5 years.

-2 points

Had LIHTC Projects still in their Compliance Period that had an operating deficit at year-end in any previous year unless the operating deficit was fully funded by the Application deadline.

-2 point

Was (a) issued an IRS Form 8823 for any reason other than a violation of UPCS or local inspection standards (box 11c) that was subsequently reported as “non-compliance corrected” within the correction period; or (b) had an IRS audit finding resulting in a recapture event, since September 1, 2021.

-1 point

Management Experience. Up to 2 points

The company that will manage the Project has at least

one (1) staff person with a minimum of three (3) years of experience successfully managing: (a) at least one (1) LIHTC Project; or (b) at least one (1) low income housing property developed under a Federal program that is substantially similar to LIHTC, to be determined at MaineHousing’s sole discretion.

1 point

one (1) staff person with LIHTC training for every 150 units in LIHTC Project(s) the company plans to manage.

1 point

Management Performance. Up to a 3 point loss

Point reductions for Management Companies are based on instances of poor performance measured by their management of LIHTC Projects in their portfolio that remain in their LIHTC Compliance Period as of the June 30 immediately preceding the Application deadline.

The average of the most recent physical plant inspection scores is below “Above Average” for properties that have a physical plant inspection on record dated within the three years prior to the June 30 immediately preceding the Application deadline.

-1 point

The average of Project Report submission scores, based on the most recent reporting deadlines occurring on or before June 30 preceding the Application deadline, is below “Above Average”.

-1 point

The average of the most recent Management and Occupancy Review scores is below “Above Average” for properties that have an MOR on record dated within the three years prior to the June 30 immediately preceding the Application deadline.

-1 point

Tie Breaker.

If more than one Application has the same score, the Application for the least amount of Credit and 0% deferred debt from MaineHousing per unit will have priority. If the Applications request the same amount of these resources, the Application with the most acceptable plan to convert the Project to affordable homeownership for the residents after the Extended Use Period will have priority. The plan must describe the process for transferring ownership to the residents, the purchase price or process for determining it, any financial assistance available for residents (including any reserves), how the affordability will be maintained, and must provide for homebuyer counseling and professional representation of the residents at the time of the conversion.

S. Review Process.

MaineHousing will notify each Applicant of its initial score in writing. If MaineHousing assigns a score in a scoring category which is lower than the score the Applicant assigned itself in the scoring category, the Applicant will have five business days from such written notice to demonstrate to MaineHousing that the Application as submitted should receive the higher score. MaineHousing will then make a final determination of scores and the ranking of Applications.

SECTION 7: PROJECT EVALUATION

Amount of Credit. The amount of Credit allocated will be determined as follows:

The calculation of the amount of Credit will be based on 130% of Eligible Basis. MaineHousing has designated the entire State and all buildings therein, as a DDA under Section 42(d)(5)(B)(v) of the Code because of the high cost of developing housing, the low median income, and the high annual operating costs for housing relative to other states;

To determine the amount of Credit, MaineHousing will use the lesser of (a) the market rent, based on the Application market study as approved by MaineHousing, and (b) the maximum Credit rent. For three or more bedroom units MaineHousing will use the maximum Credit rent for two-bedroom units plus $50.00;

The amount of Credit allocated for a Project will not exceed the least of

the amount the Project is eligible to receive under Section 42 of the Code,

the amount MaineHousing determines is necessary for financial feasibility and viability throughout the Credit Period, and

the Maximum Credit Amount;

The Applicant must submit financial and all other required information. MaineHousing will evaluate the need for Credit based on

all sources of financing, including the terms and conditions,

equity expected to be generated by reason of tax benefits, and

the uses of funds, including the reasonableness of development costs and operating expenditures; and

In order to determine the amount of Credit, MaineHousing must identify a gap between development sources and uses absent a Credit allocation. MaineHousing may limit recognition of Intermediary Costs, re-characterize Project sources and uses and make reasonable assumptions with respect to projected revenues and expenses. MaineHousing will also take into consideration any federal limitations when combining the Credit with other federal assistance (i.e. “subsidy layering” guidelines).

Developer Fee. Developer Fee will be determined as follows:

Maximum Developer Fee. The total Developer Fee may not exceed the sum of 15% of the Housing Development Costs, plus 10% of the costs of acquisition of land, existing buildings and equipment, determined without regard to the Developer Fee.

2. Net Developer Fee. The amount of Developer Fee not deferred may not exceed $750,000 plus any unused construction contingency returned to the Applicant after completion.

3. Additional Developer Fee. An Applicant is eligible for Developer Fee in excess of the Net Developer Fee calculated above only if it is deferred and used to:

increase the tax credit equity generated for the Project (this will not be included in the TDC Index calculation); or

reduce the taxable surplus cash distributions and increase the losses to the syndicator thereby improving the economics of the Project, within the following parameters: Additional Developer Fee up to $20,000 per LIHTC unit may be excluded from the TDC Index calculation.

Any Developer Fee that is deferred shall not be interest-bearing or secured by a mortgage

on the Project.

General Contractor Intermediary Costs. The general contractor’s Intermediary Costs must be:

separated from other construction and rehabilitation costs,

with general conditions and overhead and profit parsed out, and

no more than 14% of the Total Construction Cost, within the following ranges:

a) General conditions up to 6% of Total Construction Cost, and

b) Overhead and profit up to 8% of Total Construction Cost

Time of Credit Determination. MaineHousing will determine the amount of Credit at the time of

Application, which will be evidenced by the Notice of Award;

the allocation of Credit, including any carryover allocation;

the date each Qualified Building is Placed in Service; and

if a Qualified Building is allocated Credit pursuant to Section 9, the date of issuance of the tax-exempt bonds.

Prior to each determination, the Applicant must certify the full amounts of all funding sources and provide any other information required by MaineHousing.

Market Study. The applicant must submit a comprehensive market study prepared by a qualified professional in accordance with the National Council of Housing Market Analysis Model Standards for Market Studies for Rental Housing. MaineHousing may require the Applicant to either correct any inadequacies it identifies or submit a new market study. MaineHousing also may elect to commission its own market study.

Construction Cost Increases. MaineHousing may allocate additional Credit to a Project if its construction costs increase after the Application date and the increase is the result of market conditions or other circumstances beyond the Applicant’s control. Any additional Credit will not exceed an amount necessary to generate equity equal to 5% of the Total Construction Cost based on construction bids.

SECTION 8: ALLOCATION OF CREDIT

Allocation. MaineHousing will issue one or more IRS Form(s) 8609 after receipt of the following:

• • 1. A complete request for allocation of Credit in a form prescribed by MaineHousing. 2. An audit report on the schedule of project costs prepared by an independent, third party certified public accountant including all associated costs (such as commissions, due diligence, legal, accounting, reserves, and other similar items). 3. Certification of the Project’s sources, including all federal, state and local subsidies in any stage of commitment. This certification must include income, operating and development cost projections and methods for satisfying any deficits. 4. The allocation fee and monitoring fee less the amount of any allocation fee paid in connection with the issuance of a carryover allocation.

Carryover Allocation.

The Applicant must submit the following to receive a carryover allocation:

1. A complete request for carryover allocation in the form prescribed by MaineHousing no later than the first day of December of the year in which the carryover allocation is made.
2. Certification of the Project’s sources, including all federal, state and local funding. This certification must include income, operating and development cost projections and methods for satisfying any deficits.
3. Development progress report, including completion likelihood.

The applicant must execute a carryover allocation and return it to MaineHousing, together with the allocation fee, no later than December 31 of the year in which the carryover allocation is made.

A carryover allocation will be subject to the following conditions:

satisfactory evidence that more than 10% of the Project’s reasonably expected basis is incurred within 12 months of the carryover allocation, including an audit report prepared by an independent, certified public accountant; and

any performance conditions MaineHousing may require.

Failure to comply with these conditions may result in termination of the carryover allocation.

Tax Credit ComplianceExperience. Prior to an allocation the Applicant must demonstrate that the entity managing the Project has sufficient Credit compliance experience and training. The entity must complete a Credit compliance training or receive a certification from a MaineHousing-approved trainer.

Extended Use Agreement. Prior to an allocation of Credit, the Owner must enter into an Extended Use Agreement with MaineHousing obligating the Owner to comply with Section 42 of the Code, the threshold requirements in Section 5, and commitments for which the Application was awarded points. The Extended Use Agreement must be recorded in the appropriate registry of deeds prior to all mortgage liens and encumbrances on the Project and before MaineHousing issues any IRS Form 8609 for the Project.

Converting a Carryover Allocation. MaineHousing may convert a carryover allocation to the year in which it is terminated or the following year if there are extenuating circumstances beyond the Applicant’s control. The carryover allocation must be rescinded by the mutual consent of MaineHousing and the Applicant. There can be no change in the design or financing that would render the Application withdrawn under Section 4.I. The Project will be subject to the QAP in effect at the time of the original allocation.

Forward Allocation of Credit . MaineHousing may issue a binding commitment to allocate State Ceiling available in the subsequent year upon determining that the amount of Credit in the current year’s State Ceiling is insufficient.

SECTION 9: TAX-EXEMPT BOND FINANCED PROJECTS

Projects financed with tax-exempt bond proceeds must satisfy all QAP requirements except

the Maximum Credit Amount limitation in Section 3.C.,

the application limits in Section 4.B.1.,

the application deadlines in Section 4.B.2.,

the selection process described in Sections 4.F.,

the affordability threshold requirement set forth in Section 5.A.,

the requirement of a minimum $75,000 per unit of Rehabilitation Costs for Projects involving the acquisition and rehabilitation of existing housing in Section 5.C.2.,

the scoring criteria in Section 6, and

the Developer Fee limits in Section 7.B.

SECTION 10: MONITORING

Compliance with Applicable Laws. Owners must comply with all local, state and federal laws and regulations, including without limitation:

1. Section 42 of the Code and associated regulations and guidance;

2. UPCS and all other local, state and federal health, safety and building codes applicable to the Project;

3. the Federal Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988 (42 U.S.C. §3601 et seq. ), Title II of the Americans with Disabilities Act of 1990 (42 U.S.C. §12101 et seq. ), and the Maine Human Rights Act (5 M.R.S., Chapter 337, Subchapter IV) and all other applicable federal, state and local fair housing and accessibility requirements, and the regulations, guidance and standards associated with all of the foregoing; and

4. Title VI of the Violence Against Women Reauthorization Act of 2022, 42 USC Chapter 136, Subchapter III, Part M, and all associated regulations and guidance, as may be amended (VAWA).

Recordkeeping and Record Retention. Each Owner must keep on file and available to MaineHousing upon request the following records for each Qualified Building in its LIHTC Project(s) for each year in the Extended Use Period:

1. The total number of residential rental units including the number of bedrooms and the square footage of each unit;
2. The number of low-income units;
3. The rent charged for each unit including any utility allowances;
4. The number of occupants in each low-income unit;
5. The number of low-income unit vacancies and information showing when, and to whom, the next available units were rented;
6. Income certification and third-party documentation verifying the income of each household occupying a Credit Unit at the time of initial occupancy and for each new person added to the household after initial occupancy;
7. Annual income certifications and third-party documentation verifying the income of each household occupying a Credit Unit in a LIHTC Project are required if not all of the units in the LIHTC Project are Credit Units, or the LIHTC Project is financed or assisted under a state or federal program that requires annual certifications.

For a LIHTC Project with 100% Credit Units that are subject to more than one income limit, annual income certifications are only required for the households occupying the Credit Units subject to the lower income limits. The annual certification may be a self-certification, except that third-party documentation verifying the income of the household is required every 6 years from the date the LIHTC Project is Placed in Service and otherwise upon request by MaineHousing. The self-certification must be

1. in writing,
2. include the size of the household and annual household income,
3. state that the information is complete and accurate,
4. indicate that third-party source documentation will be provided if requested by the Owner or MaineHousing, and
5. witnessed.

Annual income certifications are not required for a LIHTC Project with 100% Credit Units subject to the same income limit.

1. The Eligible Basis and Qualified Basis of each Qualified Building at the end of the first year of the Credit Period;
2. The character and use of the nonresidential portion of a Qualified Building included in its Eligible Basis;
3. A determination of the student status of the resident household;
4. The tenant occupancy policies and procedures and lease. The lease form and content must be acceptable to MaineHousing and comply with all applicable federal, state and local laws (including VAWA); and
5. All other disclosures to tenants, certifications and other records required by applicable local, state and federal laws.

Owners must maintain these records throughout the Extended Use Period for at least 6 years after the due date (with extensions) for filing the federal income tax return for that year, except that the records for the Credit Period’s first year must be retained at least 6 years beyond the due date (with extensions) for filing the federal income tax return for the last year of the Compliance Period.

Annual Reports. Each Owner must submit the following to MaineHousing by March 1^st of each year throughout the Extended Use Period:

Certification for the prior calendar year that the Owner’s LIHTC Project(s) comply with IRS Treasury Regulation §1.42-5(c)(1) and MaineHousing’s Low Income Housing Tax Credit Program Owner’s Certificate of Continuing Program Compliance attached hereto as Appendix D. A completed and executed IRS Form 8609 for each Qualified Building must be submitted with the first certification; and

Certain information and data about the tenants in Credit Units for the prior calendar year, including household income; monthly rental payments; family composition; use of Section 8 rental assistance and other similar assistance; the race, ethnicity, age and disability status of the members of the households; and all other occupancy information required by MaineHousing.

Review. For new LIHTC Projects, MaineHousing will complete a review of tenant records within two (2) years following the year the last Qualified Building is Placed in Service. MaineHousing will give owners reasonable prior written notice of a review. To the extent required by the Internal Revenue Service (IRS), MaineHousing will inspect low income certifications and tenant records in accordance with IRS Treasury Regulation §1.42 5(c)(2)(iii)(A) through (D) and §1.42 5(d) and will give no more than 15 calendar days prior notice.

Inspections. Every one to three years after a Project is Placed in Service, MaineHousing will inspect LIHTC Projects. For new LIHTC Projects, MaineHousing will inspect Credit Units by the end of the second calendar year following the year the last Qualified Building is Placed in Service. MaineHousing will give reasonable prior written notice. To the extent required by the Internal Revenue Service, MaineHousing will inspect the LIHTC Projects in accordance with IRS Treasury Regulation §1.42 5(c)(2)(iii)(A) through (D) and §1.42 5(d) and will give no more than 15 calendar days prior notice.

Utility Monitoring

All projects funded by this QAP will require monitoring and reporting of all utilities for all units in the manner and form provided by MaineHousing.

Notification of Noncompliance. MaineHousing will notify an Owner in writing of any failure to

submit any complete certifications or information required by MaineHousing when due,

allow MaineHousing to perform any review or inspection required under this Section, or

comply with Section 42 of the Code or any others requirements under this QAP.

The Owner will have a reasonable period of time to correct the noncompliance identified in the notice. MaineHousing will file a Form 8823, “Low-Income Housing Credit Agencies Report of Noncompliance” with the Internal Revenue Service within 45 calendar days of the end of the correction period.

SECTION 11: GENERAL

Conflicts. If this rule conflicts with Section 42 of the Code or any other provision of federal or State law, the federal or State law shall control.

Full Discretion. MaineHousing is entitled to the full discretion allowed by law in making all decisions and interpretations under this rule.

Not an Entitlement.This rule establishes a pool of eligible Applicants but does not preclude additional reasonable criteria and does not confer any automatic right or entitlement to Credit on any person or entity eligible hereunder. MaineHousing may reject any and all Applications and may refuse to award any or all of the Credit.

Final Agency Action.The director of MaineHousing, individually or by exercise of the delegation of powers contained in the Act, shall make all decisions and take all action necessary to implement this rule. Such action of the director shall constitute final agency action.

Waiver.Upon a determination of good cause, the director of MaineHousing or the director’s designee may, subject to statutory limitations, waive any provision of this rule. The waiver must be in writing and must be supported by documentation of the pertinent facts and grounds.

Freedom of Access Act. MaineHousing is subject to the Freedom of Access Act, 1 M.R.S. §401 et seq. , which requires the disclosure of all information provided to MaineHousing that is not specifically excluded, such as confidential information under the Act. MaineHousing shall not be liable for the disclosure of any information that it determines must be disclosed under the Freedom of Access Act.

Liability. Compliance with Section 42 of the Code is the responsibility of the Owner. MaineHousing is in no way responsible for an Owner’s compliance or liable for an Owner’s noncompliance. Any allocation, review or inspection by MaineHousing and any determination made by MaineHousing pursuant to this QAP is for the sole benefit of MaineHousing. No liability or responsibility for Owner compliance with Section 42 of the Code or other applicable requirements and no representation or warranty of a Project’s feasibility or viability, eligibility for Credit, or compliance shall be implied or construed from any such actions and determinations by MaineHousing.

Headings/Context. The headings in this rule are for convenience only and do not define or limit the scope of the provisions of this rule. The use of Section, Subsection or Appendix without a reference to another document or source refers to a section, subsection and Appendix of this rule. All Appendices attached to this Rule are incorporated herein and made a part of this Rule.

History

• STATUTORY AUTHORITY: 30-A MRS §§4741(1) and 4741(14), §4726, Section 42 of the Internal Revenue Code of 1986, as amended
• EFFECTIVE DATE: May 25, 1987
• NON-SUBSTANTIVE CORRECTIONS: April 4, 1989 – amended to conform to federal law changes and procedural changes.
• NON-SUBSTANTIVE CORRECTIONS: March 6, 1991 – amended to conform to changes in federal law made by the Omnibus Budget Reconciliation Act of 1990 and procedural changes.
• NON-SUBSTANTIVE CORRECTIONS: February 12, 1992 – amended to make certain procedural changes.
• NON-SUBSTANTIVE CORRECTIONS: September 24, 1992 - amended to make certain procedural changes.
• NON-SUBSTANTIVE CORRECTIONS: January 30, 1993 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: February 5, 1994 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: April 26, 1995 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: April 24, 1996 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: February 16, 1997 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: January 12, 1999 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: January 9, 2000 - amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: January 13, 2001 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: July 7, 2001 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: January 20, 2002 - amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: November 25, 2002 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: January 12, 2004 - amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: November 8, 2005 - amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: November 6, 2006 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: September 17, 2007 – amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: March 15, 2010 - amended to make policy changes, procedural changes and/ or grammatical changes.
• NON-SUBSTANTIVE CORRECTIONS: October 25, 2011 – amended to make policy changes, procedural changes and/ or grammatical changes.
• REPEALED AND REPLACED: June 25, 1990
• REPEALED AND REPLACED: September 25, 2012
• REPEALED AND REPLACED: August 10, 2013
• REPEALED AND REPLACED: October 3, 2014
• REPEALED AND REPLACED: August 7, 2016
• REPEALED AND REPLACED: November 26, 2017
• REPEALED AND REPLACED: July 4, 2018
• REPEALED AND REPLACED: July 8, 2019
• REPEALED AND REPLACED: July 12, 2020
• REPEALED AND REPLACED: July 13, 2022
• REPEALED AND REPLACED: July 3, 2024
• FISCAL IMPACT OF THE RULE: The 2027 State of Maine ceiling of federal low-income housing tax credits is projected to raise approximately $40,500,000of private investor capital, and the 2028 State of Maine ceiling of federal low-income housing tax credits is projected to raise approximately $41,150,000 of private investor capital. The private investor capital generated by the federal low-income housing tax credits will be used to develop affordable housing for low-income persons. Additionally, it is estimated that 1,400 jobs a year will be created with this investment. The rule will not impose any costs on municipalities or counties for implementation or compliance.
• EFFECTIVE DATE (Repealed and Replaced): June 3, 2026 – filing 2026-127
• EFFECTIVE DATE (Repealed and Replaced): APPENDIX A
• EFFECTIVE DATE (Repealed and Replaced): Definitions
• EFFECTIVE DATE (Repealed and Replaced): “Above Average” means an average overall score of 4 in the rating category - Physical plant inspections, Project Reports submissions, or Management and Occupancy Reviews. Physical plant inspections, and Management Occupancy Reviews are scored on the following scale: 1- Unsatisfactory, 2 – Below Average, 3 – Average, 4 – Above Average, and 5 – Superior. Project Reports submissions are scored as 5-Timely Submission and 1-Late Submission for each required submission report – Audited Financial Review (AFR), Budget, and Owner Certification of Continued Compliance.
• EFFECTIVE DATE (Repealed and Replaced): “Act” means the Maine Housing Authorities Act, 30-A M.R.S. §4701 et seq., as may be amended from time to time.
• EFFECTIVE DATE (Repealed and Replaced): “Adaptive Reuse” means the conversion of an existing non-housing building or structure to multi-family residential rental housing or the reconstruction of existing housing that has become functionally obsolete, as determined by MaineHousing.
• EFFECTIVE DATE (Repealed and Replaced): “Additional Developer Fee” means Developer Fee in excess of the allowed Net Developer Fee. If this fee generates additional equity for the project, it will be exempt from the TDC Index calculation. If this fee is for purposes of reducing the taxable surplus cash distributions and increasing the losses to the syndicator thereby improving the economics of the project, up to $20,000 per LIHTC unit will be exempt from the TDC Index calculation.
• EFFECTIVE DATE (Repealed and Replaced): “Affiliates” means any person or entity directly or indirectly controlling, controlled by, or under common control with another person or entity.
• EFFECTIVE DATE (Repealed and Replaced): “Affordable Housing” means multi-family rental housing that has five or more units and is assisted under a HUD or Rural Development program or is subject to a restrictive covenant requiring units in the housing to be restricted to households with income at or below 60% of area median income, as determined by HUD.
• EFFECTIVE DATE (Repealed and Replaced): “Affordable Housing TIF” means an affordable housing development district and development program approved by MaineHousing pursuant to MaineHousing’s Affordable Housing Tax Increment Financing Program, 30-A M.R.S., Chapter 206, Subchapter 3 and the Act, as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): “Applicant” means the entity applying for Credit, its successors and assigns, which must be the entity that will be the owner of the Project for tax purposes; must be duly organized and validly existing under the laws of the state in which it is formed, and if not formed in this State, must be duly authorized to conduct business in this State; and must be in good standing under the laws of this State and its state of formation, if not this State.
• EFFECTIVE DATE (Repealed and Replaced): “Application” means an application to MaineHousing for an allocation of Credit.
• EFFECTIVE DATE (Repealed and Replaced): “Capitalized Lease Value” means the net present value of all lease payments under a lease calculated over the term of the lease using the 10-year Treasury note rate 60 calendar days before the Application deadline plus 300 basis points.
• EFFECTIVE DATE (Repealed and Replaced): “Code” means the Internal Revenue Code, Title 26 of the United States Code, and applicable regulations promulgated pursuant thereto, as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): “Community Revitalization Plan” means (1) a community that has been designated by HUD or RD as an Empowerment Zone, a Renewal Community or Enterprise Community, or a Neighborhood Revitalization Strategy Area; or (2) a written plan that was formally adopted by the governing body of a municipality no more than twelve (12) years prior to the Application deadline following a concerted planning process and public input, specifically targets a neighborhood or area in the community (not a single building or site or the entire municipality) for redevelopment or revitalization, and includes (a) an assessment of the existing physical structures and infrastructure of the area, (b) detailed policy goals with respect to economic redevelopment, the rehabilitation or development of housing (including multi-family rental housing) and the improvement or expansion of infrastructure, and (c) proposed activities and a timetable for implementing the policy goals. Plans for a single development and plans formulated by or on behalf of the Applicant are not Community Revitalization Plans. A comprehensive plan that meets all of the requirements in (2) may qualify.
• EFFECTIVE DATE (Repealed and Replaced): “Compliance Period” means the period defined in Section 42(i)(1) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Credit” or “LIHTC” means the low-income housing tax credit established pursuant to Section 42 of the Code and allocated pursuant to this rule.
• EFFECTIVE DATE (Repealed and Replaced): “Credit Period” means the period defined in Section 42(f)(1) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Credit Units” means units in a Project that are eligible for Credit.
• EFFECTIVE DATE (Repealed and Replaced): “Demand Response Transportation” means on-call transportation services that operate at least 3 days per week and provide service throughout the day.
• EFFECTIVE DATE (Repealed and Replaced): “Developer Fee” means the total compensation for the work, costs and risks associated with developing a Project, including without limitation, creating the Project concept, identifying and acquiring the Project site, obtaining construction and permanent financing, obtaining necessary subsidies, negotiating the syndication of investment interests in the Project, obtaining all necessary regulatory approvals, constructing and/or rehabilitating the Project and marketing, and includes all amounts paid to consultants to perform this work, except fees for professional services such as environmental assessments, rental market studies, soil tests, and water tests, and includes all reserves, in the form of cash, expected to be paid to the tax credit developer from the Project.
• EFFECTIVE DATE (Repealed and Replaced): “DDA” means an area of the State that is designated by HUD as a difficult development area pursuant to Section 42(d)(5)(B)(iii) of the Code or an area of the State that is designated by MaineHousing as a difficult-to-develop area in Section 7.A.1 pursuant to Section 42(d)(5)(B)(v) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Extended Use Agreement” means an agreement that satisfies the requirements of Section 42(h)(6)(B) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Extended Use Period” means the period of time specified by MaineHousing in the Extended Use Agreement executed in connection with a Project pursuant to Section 42(h)(6)(D) of the Code, which is the period set forth in Section 5.A. for Projects allocated Credit under the State Ceiling.
• EFFECTIVE DATE (Repealed and Replaced): “Extremely Low Income” means income that is at or below 30% of the area median income as determined pursuant to the regulations and guidance governing the National Housing Trust Fund.
• EFFECTIVE DATE (Repealed and Replaced): “Family Housing” means housing for families that qualifies for points under the Family Housing scoring criteria set forth in Section 6.E.
• EFFECTIVE DATE (Repealed and Replaced): “Fiscal Year” means the fiscal year for a LIHTC Project as defined in the Owner’s organizational documents.
• EFFECTIVE DATE (Repealed and Replaced): “Fixed-route Public Transportation” means year-round, regularly scheduled public transportation that operates at least 5 days per week and provides regular service throughout the day.
• EFFECTIVE DATE (Repealed and Replaced): “Housing Development Costs” means the total of all direct and indirect costs incurred in financing, creating, purchasing or rehabilitating a LIHTC Project except the costs attributable to the acquisition of the land and any existing buildings as determined by MaineHousing.
• EFFECTIVE DATE (Repealed and Replaced): “Housing for Older Adults” means a Project that is designated as elderly or senior housing and receives funding and project-based rental assistance under a RD or HUD multi-family elderly housing program (such as RD’s Section 515 Rural Rental Housing Program and HUD’s Section 202 Supportive Housing for the Elderly Program) or that meets the definition of “housing for older persons” under the federal Fair Housing Act, 42 U.S.C. §3607(b)(2) and the Maine Human Rights Act, 5 M.R.S. §4581 et seq. and all associated regulations, as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): “HUD” means the United States of America acting through the United States Department of Housing and Urban Development.
• EFFECTIVE DATE (Repealed and Replaced): “Intermediary Costs” means all Housing Development Costs except the actual construction costs or eligible rehabilitation costs under Section 42(e) of the Code attributable to the development of the units.
• EFFECTIVE DATE (Repealed and Replaced): “IRS” means the United States Department of Treasury, Bureau of Internal Revenue Service.
• EFFECTIVE DATE (Repealed and Replaced): “LIHTC Project” means a qualified low-income housing project as defined in and governed by Section 42(g) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “MaineHousing” means Maine State Housing Authority.
• EFFECTIVE DATE (Repealed and Replaced): “MaineHousing’s Construction Standards” means MaineHousing’s Quality Standards and Procedures Manual in effect 60 calendar days prior to the applicable deadline for an Application for Credit which include without limitation certain energy efficiency standards and UPCS and incorporate MaineHousing’s accessibility policy and procedures.
• EFFECTIVE DATE (Repealed and Replaced): “Maximum Credit Amount” means the maximum amount of Credit a Project is eligible to receive pursuant to Section 3.C.
• EFFECTIVE DATE (Repealed and Replaced): “National Housing Trust Fund” means the Housing Trust Fund established under Title I of the Housing and Economic Recovery Act of 2008, 12 U.S.C. §4568, together with associated regulations and guidance now or hereafter promulgated pursuant thereto.
• EFFECTIVE DATE (Repealed and Replaced): “Net Developer Fee” means the Developer Fee with respect to a Project that does not exceed the applicable limit set forth in Section 7.B.2., including any portion thereof that is deferred or loaned to pay for costs associated with the Project (and does not include any additional Developer Fee allowed under Section 7.B.3).
• EFFECTIVE DATE (Repealed and Replaced): “Notice of Award” means the notice that a Project has been selected for further evaluation to determine the Project’s eligibility for Credit and the amount of Credit to be allocated for the Project. The Notice of Award will require the submission of all information necessary for MaineHousing to determine the amount of Credit, if any, to be allocated to the Project, obligate the Applicant to fulfill all commitments made in the Application, and require the Applicant to promptly and diligently develop and complete the Project according to the deadlines specified in the notice.
• EFFECTIVE DATE (Repealed and Replaced): “Owner” means the legal owner of a LIHTC Project or Qualified Building for which an Application has been submitted to MaineHousing or which has received an allocation of Credit from MaineHousing pursuant to this Qualified Allocation Plan or a prior Qualified Allocation Plan for the State.
• EFFECTIVE DATE (Repealed and Replaced): “Ownership Transfer Rule” means Chapter 27 of MaineHousing’s rules, Transfers of Ownership Interests, and the policies and procedures related thereto, all as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): “Passive House Certification” means certification from Passive House Institute US, Inc. (PHIUS) or Passive House Institute (PHI) prior to MaineHousing’s issuance of IRS Form 8609.
• EFFECTIVE DATE (Repealed and Replaced): “Persons Experiencing Homelessness” means persons sleeping in a place not meant for human habitation, in an Emergency Shelter, or in other emergency housing; persons exiting an institution where they resided for 90 days or less and who had resided in an Emergency Shelter, other emergency housing, or place not meant for human habitation before entering that institution; and persons fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions in the individual’s or family’s current housing situation, including where the health and safety of children are jeopardized, and who have no other residence and lack the resources or support networks to obtain other permanent housing.
• EFFECTIVE DATE (Repealed and Replaced): “Placed in Service” means the date on which a Qualified Building is suitable and available for occupancy as determined in accordance with Section 42 of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Principal” means any person or entity with a controlling interest in another entity, including without limitation, a person or entity with an ownership interest in an Applicant that controls the development and day-to-day operation of a Project, such as the general partner(s) of a limited partnership or the manager(s) or member(s) invested with the management authority of a limited liability company, and all persons and entities with an ownership interest in or control of said entity.
• EFFECTIVE DATE (Repealed and Replaced): “Project” means the property described in the Application, which must be a qualified low-income housing project as defined in and governed by Section 42(g) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Project Reports” means the annual certification and tenant data required under Section 10.C., and if required for the LIHTC Project, the audited financial report (AFR) and the annual project budget.
• EFFECTIVE DATE (Repealed and Replaced): “QCT” means an area of the State designated by HUD as a qualified census tract pursuant to Section 42(d)(5)(B)(ii) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Qualified Allocation Plan” or “Plan” means the plan for allocating and administering the Credit adopted by the housing credit agency pursuant Section 42(m)(1)(B) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Qualified Building” means a qualified low-income building as defined in and governed by Section 42(c)(2) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Qualified Contract” means a contract as defined in Section 42(h)(6)(F) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Qualified Nonprofit Organization” means a qualified nonprofit organization as defined in Section 42(h)(5)(C) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Rehabilitation Costs” means with respect to a Project (1) the site costs, (2) the costs of complying with the construction requirements of other funding sources except those required by the Applicant, any Principal thereof or Affiliates of either, (3) contractor profit, overhead and general conditions, and (4) certain costs identified in the capital needs assessment required under Section 5.C.1. of the QAP, including (a) the cost of correcting all violations of applicable federal, state and local health, safety and building codes and correcting deferred maintenance, (b) the rehabilitation or replacement of all structures, systems, facilities and components that have reached or exceed their useful life or will reach their useful life within 5 years, (c) the cost of complying with MaineHousing’s Construction Standards, (d) the cost of complying with the most current accessibility requirements for new construction projects under applicable federal, state and local accessibility laws, regulations, standards and guidance, and (e) the remediation and disposal of any environmental or other hazards identified in environmental reports. Rehabilitation Costs do not include construction contingency, relocation costs, or other soft costs.
• EFFECTIVE DATE (Repealed and Replaced): “Related Development” means any development of which the Project is a part or is related and the Project cannot be completed, either structurally or financially, without the completion of the development.
• EFFECTIVE DATE (Repealed and Replaced): “RD” or “Rural Development” means the United States of America acting through the United States Department of Agriculture, Rural Housing Services.
• EFFECTIVE DATE (Repealed and Replaced): “Safe Walking Distance” means a pedestrian route appropriate to the area, as determined by MaineHousing, with sidewalks, crosswalks and traffic signals at busy roads or intersections and year-round walkability, which includes being plowed during the winter.
• EFFECTIVE DATE (Repealed and Replaced): “Section 8” means Section 8 of the United States Housing Act of 1937, 42 U.S.C. §1437f, as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): “Service Center Community” means an entire municipality that provides jobs and retail to surrounding areas and is a center for education, health care, cultural, recreational and social services, designated pursuant to the Municipal Planning Assistance Program of the State’s Department of Agriculture, Conservation and Forestry as a Regional Service Center as of January 2013.
• EFFECTIVE DATE (Repealed and Replaced): “State” means the State of Maine.
• EFFECTIVE DATE (Repealed and Replaced): “State Ceiling” means the State’s housing credit ceiling established pursuant to Section 42(h)(3)(C) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): “Tax Increment Financing” means any type of tax increment financing, including without limitation an Affordable Housing TIF, a development district and development program approved by a municipality or a tax increment financing district approved by the State’s Department of Economic and Community Development pursuant to 30-A M.R.S., Chapter 206, as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): “TDC Index” means the calculation described in Section 5.B.
• EFFECTIVE DATE (Repealed and Replaced): “TDC Index Cap” means the limit on Total Development Cost set forth in Section 5.B.
• EFFECTIVE DATE (Repealed and Replaced): “Telehealth” means the use of interactive real-time visual and audio or other electronic media for the purpose of consultation and education concerning and diagnosis, treatment, care management, and self-management of a patient's physical and mental health and includes real-time interaction between the patient and the telehealth provider, synchronous encounters, asynchronous encounters, store and forward transfers and remote patient monitoring. Telehealth includes telephonic services when interactive telehealth services are unavailable or when a telephonic service is medically appropriate for the underlying covered service.
• EFFECTIVE DATE (Repealed and Replaced): “Total Construction Cost” means the sum of site costs, costs of constructing or rehabilitating structures, systems, facilities, units and components, general requirements, bond premiums, and contractor overhead and profit as determined by MaineHousing.
• EFFECTIVE DATE (Repealed and Replaced): “Total Development Cost” or “TDC ” means Total Project Cost less (1) the fees required by MaineHousing, (2) the Project’s operating deficit account to the extent required by MaineHousing, (3) the costs associated with any commercial space developed in connection with the Project, and (4) up to $20,000 per unit in Additional Developer Fee. “Total Project Cost” means the sum of all costs associated with the development, construction and rehabilitation of a Project, as determined by MaineHousing. Total Project Cost includes, without limitation, acquisition costs, the Capitalized Lease Value of all leases of land and building(s), demolition costs, Total Construction Cost, construction contingency, costs associated with community service facilities included in the Eligible Basis of the Project, soft costs (such as permits, design and engineering fees, environmental reports, appraisals, market studies and legal fees), syndication costs, Developer Fee, financing costs and project reserves. Community service facilities are not considered commercial space for purposes of Total Project Cost.
• EFFECTIVE DATE (Repealed and Replaced): “UPCS” means the Uniform Physical Conditions Standards established by HUD pursuant to 24 CFR §5.703, as may be amended.
• EFFECTIVE DATE (Repealed and Replaced): APPENDIX B
• EFFECTIVE DATE (Repealed and Replaced): Pre-Application Submission Requirements
• EFFECTIVE DATE (Repealed and Replaced): Applicants must submit a request for pre-application review and the following information to MaineHousing at least 60 calendar days before the applicable Application deadline.
• EFFECTIVE DATE (Repealed and Replaced): A narrative description of the Project and any Related Development, including, the location, type of housing, total number of units by bedroom size, breakdown of required and/or pledged accessible units by type and location, total number of income-restricted units by bedroom size, proposed affordability, any existing affordability restrictions, any existing or proposed use restrictions, common areas and amenities at the Project, any community service facilities, any commercial space and other unique features of the Project.Conceptual, Diagrammatic Site Plan and Conceptual Floor Plans and Conceptual Building Elevations in accordance with the requirements set forth in MaineHousing’s Quality Standards and Procedures Manual which can be found at https://www.mainehousing.org/programs-services/housing-development/construction-services. The status of applicable federal, State and local land use approvals for the Project and any Related Development, and any site, subdivision and other plans for the Project and any Related Development that have been prepared for submission or have been submitted to applicable municipal, state and federal governmental entities.Details about the parking for the Project, including the number, type and location of all on-site parking and off-site parking and the terms and conditions thereof. An explanation and all supporting documentation for any exceptions from the requirement to provide a community room, laundry facilities, telemedicine facilities or area activities in accordance with Section 5.J of the QAP. All available information about any known or suspected environmental conditions on the Project site and any Related Development or adjacent sites that may impact the Project site or any Related Development, including any environmental reports and all available radon test results for the Project site. To the extent feasible, identify any and all visible (both on and off-site) fuel oil and propane tanks and include them on the site planA capital needs assessment for any existing housing that meets the requirements in Section 5.C. and Appendix C. A conceptual construction estimate(s) prepared by a qualified general contractor or third-party estimator for the Project and any Related Development, including trade breakdowns in the form of a schedule of values and a reasonable estimating contingency, if applicable, with sufficient detail to demonstrate expected construction-related costs. All exclusions and qualifications, if any, must be clearly stated in the estimate. The estimate is to be the basis of the hard cost line items contained in the project underwriting without exception.A projected development and operating budget(s) for the Project and any Related
• EFFECTIVE DATE (Repealed and Replaced): Development which must be submitted electronically in the format prescribed by MaineHousing.
• EFFECTIVE DATE (Repealed and Replaced): APPENDIX C
• EFFECTIVE DATE (Repealed and Replaced): Capital Needs Assessment Requirements
• EFFECTIVE DATE (Repealed and Replaced): 1. The assessment must include a site visit, an interview with the on-site property manager and maintenance personnel concerning prior and pending repairs and improvements and existing or chronic physical deficiencies, and a physical inspection of the interior and exterior of at least 20% of the units and all other structures, facilities, systems and components that will be part of the Project, including the following:
• EFFECTIVE DATE (Repealed and Replaced): Site, including without limitation topography, drainage, pavement, curbing, walkways, sidewalks, parking, accessible parking, accessible routes, landscaping, amenities, water, sewer, storm drainage, and all utility lines;Structural systems and components, both substructure and superstructure, including without limitation foundations, exterior walls, balconies, porches, and stairways, exterior doors and windows, chimneys and roofing;Interiors, including without limitation unit and common area finishes and substrata (e.g. flooring, underlayment, carpeting, plaster or drywall, wall coverings and paint condition), and unit and common area kitchen finishes, cabinets, countertops and appliances, and unit and common area bathroom finishes, fixtures and accessories, laundry facilities, and common area lobbies and corridors; andBuilding systems, including without limitation plumbing supplies and drainage, domestic hot water production, heating, ventilating and air-conditioning production and distributions systems, fuel storage and delivery systems, electrical power distribution and metering systems, lighting controls and fixtures, smoke, fire and any other alarm systems, fire protection systems, security systems, and elevators.
• EFFECTIVE DATE (Repealed and Replaced): The capital needs assessment must specifically identify all structures, systems, facilities, units and components that were inspected and must include a concise overview of the physical and operational condition of the existing housing and a detailed assessment of the expected useful life and the remaining useful life of each structure, system, facility, unit and component inspected. The assessment must also consider the presence of environmental and other hazards, including without limitation, asbestos, lead paint, mold, water damage and insect infestations.
• EFFECTIVE DATE (Repealed and Replaced): 2. The capital needs assessment must include a recommended scope of work and a cost estimate to complete the scope of work that addresses the following capital needs of the Project, without consideration of financial feasibility:
• EFFECTIVE DATE (Repealed and Replaced): Correction of all violations of applicable federal, state and local building, health and life safety codes and correction of all deferred maintenance;Rehabilitation or replacement of all structures, systems, facilities, units and components that have reached or exceeded their useful lives or will reach their useful lives within 5 years; Rehabilitation of all units and common areas and facilities to bring them into compliance with MaineHousing’s Construction Standards to the maximum extent feasible;Rehabilitation of the minimum number of units and all common areas and facilities that are necessary to comply with the most current requirements for new construction projects under applicable federal, state and local accessibility laws, regulations, standards and guidance (which include without limitation, Section 504 of the Rehabilitation Act of 1973, HUD's housing regulations at 24 C.F.R. Part 8 and any accessibility standard designated by HUD; Title II and Title III of the Americans with Disabilities Act of 1990 and the 2010 Standards of Accessible Design; and if the Project involves substantial rehabilitation, the Maine Human Rights Act, the Maine Human Rights Commission’s Chapter 8, Housing Regulations, and ANSI Standard A117.1-2009); and Remediation and disposal of any environmental or other hazards identified in the assessment.
• EFFECTIVE DATE (Repealed and Replaced): 3. The capital needs assessment must also identify any structures, systems, facilities, units and components with a remaining useful life of less than 30 years. The Application must include a plan for future rehabilitation or replacement of any identified structure, system, facility, unit and component with a useful life of less than 30 years that is not included in the scope of work for the Project, including possible funding sources, which will be considered in establishing the appropriate funding amounts for the Project’s reserve accounts.
• EFFECTIVE DATE (Repealed and Replaced): APPENDIX D
• EFFECTIVE DATE (Repealed and Replaced): LOW INCOME HOUSING TAX CREDIT PROGRAM
• EFFECTIVE DATE (Repealed and Replaced): OWNER'S CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE
• EFFECTIVE DATE (Repealed and Replaced): To: MaineHousing
• EFFECTIVE DATE (Repealed and Replaced): 26 Edison Drive
• EFFECTIVE DATE (Repealed and Replaced): Augusta, ME 04330
• EFFECTIVE DATE (Repealed and Replaced): Certification Dates: From: January 1, 20_______ To: December 31, 20_______ Project Name:Project No: Project Address:City: County: Zip: Tax ID # of Ownership Entity:Building Identification Number(s):(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)
• EFFECTIVE DATE (Repealed and Replaced): No buildings have been Placed in ServiceAt least one building has been placed in Service but owner elects to begin credit period in the following year.
• EFFECTIVE DATE (Repealed and Replaced): If either of the above applies, please check the appropriate box, and proceed to page 2 to sign and date this form.
• EFFECTIVE DATE (Repealed and Replaced): The undersigned___________________________________________________________________ on behalf of
• EFFECTIVE DATE (Repealed and Replaced): ______________________________________________________________ (the "Owner"), hereby certifies that:
• EFFECTIVE DATE (Repealed and Replaced): 1. The project meets the minimum requirements of: (check one)
• EFFECTIVE DATE (Repealed and Replaced): o 20 - 50 test under Section 42(g)(1)(A) of the Code
• EFFECTIVE DATE (Repealed and Replaced): o 40 - 60 test under Section 42(g)(1)(B) of the Code
• EFFECTIVE DATE (Repealed and Replaced): o 15 - 40 test for "deep rent-skewed" projects under Section 42(g)(4) and 142(d)(4)(B) of the Code
• EFFECTIVE DATE (Repealed and Replaced): o Income Averaging
• EFFECTIVE DATE (Repealed and Replaced): There has been no change in the applicable fraction (as defined in Section 42(c)(1)(B) of the Code) for any building in the project:
• EFFECTIVE DATE (Repealed and Replaced): o NO CHANGE o CHANGE
• EFFECTIVE DATE (Repealed and Replaced): If “Change”, list the applicable fraction to be reported to the IRS for each building in the project for the certification year on page 4:
• EFFECTIVE DATE (Repealed and Replaced): There have been no changes in the building’s eligible basis under Section 42(d) of any building in the project.
• EFFECTIVE DATE (Repealed and Replaced): o NO CHANGE o CHANGE
• EFFECTIVE DATE (Repealed and Replaced): If “Change”, list the changes on page 4:
• EFFECTIVE DATE (Repealed and Replaced): The owner has received an annual Tenant Income Certification from each low-income resident and documentation to support that certification, or the owner has a re-certification waiver letter from the IRS in good standing, has received an annual Tenant Income Certification from each low-income resident, and documentation to support the certification at their initial occupancy.
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): Each low-income unit in the project has been rent-restricted under Section 42(g)(2) of the Code:
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): 6. All low-income units in the project are and have been for use by the general public and used on a non-transient basis (except for transitional housing for the homeless provided under Section 42 (i)(3)(B)(iii) of the Code): o YES o NO o HOMELESS
• EFFECTIVE DATE (Repealed and Replaced): There has been no finding of discrimination under the Fair Housing Act, 42 U.S.C 3601-3619 with respect to this project. A finding of discrimination includes an adverse final decision by the Secretary of Housing and Urban Development (HUD), 24 CFR 180.680, an adverse final decision by a substantially equivalent state or local fair housing agency, 42 U.S.C 3616a(a)(1), or an adverse judgment from a federal court:
• EFFECTIVE DATE (Repealed and Replaced): o FINDING o NO FINDING
• EFFECTIVE DATE (Repealed and Replaced): If “Finding”, please explain the nature of the violation and attach a copy of the decision or judgment.
• EFFECTIVE DATE (Repealed and Replaced): There has been no finding of discrimination under any other applicable local, State or federal equal access or nondiscrimination law with respect to this project. A finding of discrimination includes an adverse final decision by the governmental agency responsible for administering such law, or an adverse judgment from a court with jurisdiction over such law:
• EFFECTIVE DATE (Repealed and Replaced): o FINDING o NO FINDING
• EFFECTIVE DATE (Repealed and Replaced): If “Finding”, please explain the nature of the violation and attach a copy of the decision or judgment.
• EFFECTIVE DATE (Repealed and Replaced): Each building in the project is and has been suitable for occupancy, taking into account local health, safety, and building codes (or other habitability standards), and the state or local government unit responsible for making building code inspections did not issue a report of a violation for any building or low income unit in the project:
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): If "No", explain the nature of violation on page 4 and attach a copy of the violation report as required by 26 CFR 1.42-5 and any documentation of correction.
• EFFECTIVE DATE (Repealed and Replaced): 10. Each building and all FedHome (HOME) assisted units are suitable for occupancy, taking into account State and local health, safety, and other applicable codes, ordinances, and requirements, and the ongoing property standards established by the participating jurisdiction (MaineHousing) to meet the requirements of 24 CFR, Part 92, HOME Investment Partnership Program, Section 92.251.
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO o N/A
• EFFECTIVE DATE (Repealed and Replaced): 11. There has been no change in the eligible basis (as defined in Section 42(d) of the Code) of any building in the project since last certification submission:
• EFFECTIVE DATE (Repealed and Replaced): o NO CHANGE o CHANGE
• EFFECTIVE DATE (Repealed and Replaced): If "Change", state nature of change (e.g., a common area has become commercial space, a fee is now charged for a tenant facility formerly provided without charge, or the project owner has received federal subsidies with respect to the project which had not been disclosed to the allocating authority in writing) on page 4:
• EFFECTIVE DATE (Repealed and Replaced): All tenant facilities included in the eligible basis under Section 42(d) of the Code of any building in the project, such as swimming pools, other recreational facilities, parking areas, washer/dryer hookups, and appliances were provided on a comparable basis without charge to all tenants in the buildings:
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): If a low-income unit in the project has been vacant during the year, reasonable attempts were or are being made to rent that unit or the next available unit of comparable or smaller size to tenants having a qualifying income before any units were or will be rented to tenants not having a qualifying income:
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): If the income of tenants of a low-income unit in any building increased above the limit allowed in Section 42(g)(2)(D)(ii) of the Code, the next available unit of comparable or smaller size in that building was or will be rented to residents having a qualifying income:
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): Project complies with an extended low-income housing commitment as described in section 42(h)(6) (not applicable to buildings with tax credits from years 1987-1989):
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO o N/A
• EFFECTIVE DATE (Repealed and Replaced): In the prior 12 month period, the owner has:terminated the tenancy of a tenant in a low income unit, including without limitation, non-renewal of the lease of an existing tenant in a low income unit, for other than good cause;increased the gross rent of a tenant with respect to a low income unit not otherwise permitted under Section 42 of the Code and any other applicable program (e.g. HOME, HUD Section 8);denied tenancy to any applicant or terminated the tenancy of any tenant solely because the applicant or tenant had a Section 8 voucher or certificate; ordenied tenancy to any applicant, terminated the tenancy of any tenant, or failed to assist a tenant in finding alternative appropriate housing in violation of Title VI of the Violence Against Women Reauthorization Act of 2013, 34 USC Subpart 2 – housing rights Chapter 121 and applicable regulations (VAWA), as amended.
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): If “Yes”, please explain the nature of the violation on page 4.
• EFFECTIVE DATE (Repealed and Replaced): The project complies with the requirements of all applicable Federal and State Housing Programs included in the development (e.g., Rural Housing Services, HOME, HUD Section 8, or Tax-Exempt Bonds).
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): If “No”, please explain the nature of the violation on page 4.
• EFFECTIVE DATE (Repealed and Replaced): The owner received its credit allocation from the portion of the state ceiling set-aside for a project involving "qualified non-profit organizations" under Section 42(h)(5) of the code and its non-profit entity materially participated in the operation of the development within the meaning of Section 469(h) of the Code.
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO o N/A
• EFFECTIVE DATE (Repealed and Replaced): 19. The property has not suffered a casualty loss resulting in the displacement of residents.
• EFFECTIVE DATE (Repealed and Replaced): o YES o NO
• EFFECTIVE DATE (Repealed and Replaced): If “Yes”, please explain the nature of the loss on page 4.
• EFFECTIVE DATE (Repealed and Replaced): 20. There has been no change in the ownership or management of the project:
• EFFECTIVE DATE (Repealed and Replaced): o NO CHANGE o CHANGE
• EFFECTIVE DATE (Repealed and Replaced): If "Change", complete page 4 detailing the changes in ownership or management of the project.
• EFFECTIVE DATE (Repealed and Replaced): Note: Failure to complete this form in its entirety will result in noncompliance with program requirements. In addition, any individual other than an owner or general partner of the project is not permitted to sign this form, unless permitted by the state agency.
• EFFECTIVE DATE (Repealed and Replaced): The project is otherwise in compliance with the Code, including any Treasury Regulations, the applicable State Allocation Plan, and all other applicable laws, rules and regulations. This Certification and any attachments are made UNDER PENALTY OF PERJURY.
• EFFECTIVE DATE (Repealed and Replaced): __________________________________
• EFFECTIVE DATE (Repealed and Replaced): (Ownership Entity)
• EFFECTIVE DATE (Repealed and Replaced): By: __________________________________
• EFFECTIVE DATE (Repealed and Replaced): Title: __________________________________
• EFFECTIVE DATE (Repealed and Replaced): Date: __________________________________
• EFFECTIVE DATE (Repealed and Replaced): PLEASE PROVIDE ANY CHANGES OR EXPLANATIONS REQUIRED UNDER QUESTIONS 1-19.
• EFFECTIVE DATE (Repealed and Replaced): Question#Explanation
• EFFECTIVE DATE (Repealed and Replaced): CHANGE IN MANAGEMENT CONTACT
• EFFECTIVE DATE (Repealed and Replaced): Date of Change:Management Co. Name:Management Address:Management city, state, zip:Management Contact:Management Contact Phone:Management Contact Fax:Management Contact Email:
• EFFECTIVE DATE (Repealed and Replaced): CHANGES IN OWNERSHIP OR MANAGEMENT
• EFFECTIVE DATE (Repealed and Replaced): (to be completed ONLY if “CHANGE” marked for question 20 above)
• EFFECTIVE DATE (Repealed and Replaced): TRANSFER OF OWNERSHIP
• EFFECTIVE DATE (Repealed and Replaced): Date of Change:Taxpayer IDNumber:Legal Owner Name:Address:Phone:General Partnership:Status of Partnership (LLC, etc.):
• EFFECTIVE DATE (Repealed and Replaced): CHANGE IN OWNER CONTACT
• EFFECTIVE DATE (Repealed and Replaced): Date of Change:Owner Contact:Owner Contact Phone:Owner Contact Fax:Owner Contact Email:
• EFFECTIVE DATE (Repealed and Replaced): APPENDIX E
• EFFECTIVE DATE (Repealed and Replaced): THRESHOLD REQUIREMENTS FOR PURCHASE OPTIONS/RIGHTS OF FIRST REFUSAL
• EFFECTIVE DATE (Repealed and Replaced): The Purchase Options must:grant to one or more of the general partner, managing member, developer or sponsor an irrevocable option to purchase the Project at a purchase price not more than the greater of: (a) its fair market value as encumbered by the Extended Use Agreement and any other restrictions of record; and (b) the sum of: (i) the outstanding debt secured by the Project, (ii) the amount of the limited partner’s or non-managing member’s federal, state and local tax liability resulting from the sale of the Project, and (iii) all amounts owed to the limited partner or non-managing member under the limited partnership agreement or limited liability company operating agreement (the “Project Option Price”);grant to one or more of the general partner, managing member, developer or sponsor an irrevocable option to purchase the interest of the limited partner(s) or non-managing member(s) in the Project ownership entity (“Ownership Interest”) at a purchase price not more than the amount the limited partner(s) or non-managing member(s) would have received on an after-tax basis if the Project had been sold at the Project Option Price and the proceeds distributed pursuant to the terms of the limited partnership agreement or limited liability company operating agreement;be exercisable beginning at the earlier of: (a) the expiration of the Compliance Period; or (b) the exit of or change of controlling interest (as defined in the Transfers of Ownership Interests Rule, Chapter 27) in the limited partner or non-managing member occurring after the expiration of the Credit Period;expire no earlier than 36 months after the expiration of the Compliance Period; andgive the holder of the option a minimum of 12 months to close on the purchase of the Project or the Ownership Interest after exercise of the option or such longer period required by any lender(s) or other party whose consent to the transfer is required.
• EFFECTIVE DATE (Repealed and Replaced): II. The right of first refusal (ROFR) must:
• EFFECTIVE DATE (Repealed and Replaced): grant to a Qualified Nonprofit Organization an irrevocable and exclusive ROFR to purchase the Project at the Minimum Purchase Price as defined in Section 42(i)(7) of the Code, excluding any indebtedness incurred within the 5-year period ending on the date of the sale pursuant to the ROFR (the “ROFR Price”);be exercisable beginning at the expiration of the Compliance Period; expire no earlier than 36 months after the later of: (i) the public offer of the Project for sale by the general partner or managing member; and (ii) the expiration of the Compliance Period;give the holder of the ROFR a minimum of 90 days to exercise its ROFR and a minimum of 12 months to close on the purchase of the Project after exercise of the ROFR or such longer period required by any lender(s) or other party whose consent to the transfer is required; andnot require more than a nominal earnest money deposit in order to exercise the ROFR.
• EFFECTIVE DATE (Repealed and Replaced): III. The Project owner’s limited partnership agreement or limited liability company operating agreement must provide that:
• EFFECTIVE DATE (Repealed and Replaced): the holder of the ROFR may assign the ROFR to a governmental unit, tenant organization or resident management corporation of the Project, or another Qualified Nonprofit Organization without the consent of the limited partner(s) or non-managing member(s);the general partner or managing member may elect to do any of the following:subject to the consent of the limited partner(s) or non-managing member(s), which consent shall not be unreasonably withheld, conditioned, or delayed, sell the Project to the holder of the ROFR in connection with the exercise of the ROFR (the limited partner(s) or non-managing member(s) may not withhold consent for a non-material breach of the Project owner’s organizational documents);at its discretion, without the consent of the limited partner(s) or non-managing member(s), sell the Project to the holder of the ROFR in connection with the exercise of the ROFR following the general partner’s or managing member’s receipt of a bona fide third party offer to purchase the Project, which offer may be solicited by the general partner/managing member or the holder of the ROFR; orat its discretion, without the consent of the limited partner(s) or non-managing member(s), offer the Project for sale publicly at any time following the expiration of the Compliance Period and thereafter accept an offer from the highest bidder to purchase the Project, as long as the sale price is not less than the ROFR Price, and provided such acceptance is subject to the rights of the holder of the ROFR to exercise the ROFR and purchase the Project at the ROFR Price;the general partner or managing member is directed and authorized to execute all documents necessary to effect the sale of the Project pursuant to the ROFR or Purchase Options; the limited partner(s) or non-managing member(s) affirmatively agree not to challenge: (i) the sale of the Project pursuant to the terms of the ROFR by the general partner or managing member to the holder of the ROFR even if the holder of the ROFR is affiliated with the general partner or managing member; (ii) the general partner’s or managing member’s acceptance of an offer from the highest bidder in response to the general partner’s or managing member’s public offer of the Project for sale, provided the offer price is not less than the ROFR Price, and/or the exercise of the ROFR by the holder of the ROFR after any such acceptance; and (iii) the exercise of the Purchase Options by the holder(s) thereof pursuant to the terms of the Purchase Option;in the event Section 42(i)(7) of the Code is amended to permit a Qualified Nonprofit Organization to hold a purchase option after the expiration of the Compliance Period, and only to the extent permitted under such revised Section 42(i)(7) of the Code, the holder of the ROFR shall be entitled to purchase the Project, or at its option, all of the interests in the owner, in either case at the ROFR Price, in lieu of exercising the ROFR;neither the ROFR or Purchase Options will be adversely affected or limited by any other rights of the limited partner(s) or non-managing member(s), or any owner of any interest in any limited partner or non-managing member, such as forced sale rights, and there are no conditions to the exercise of the ROFR or Purchase Options except as explicitly identified in the limited partnership agreement or limited liability company operating agreement; andany amendment that would modify any term or condition related to the ROFR or Purchase Options requires the prior written consent of MaineHousing.
• EFFECTIVE DATE (Repealed and Replaced): APPENDIX F
• EFFECTIVE DATE (Repealed and Replaced): HUD POLICY REQUIREMENTS
• EFFECTIVE DATE (Repealed and Replaced): [Some of these requirements are currently under a stay by the Court and may or may not ultimately be required. MaineHousing will inform Applicants of the applicable requirements.]
• EFFECTIVE DATE (Repealed and Replaced): If applicable:
• EFFECTIVE DATE (Repealed and Replaced): The Recipient shall not use grant funds to promote “gender ideology,” as defined in Executive Order (E. G. ) 14168, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government:The Recipient agrees that its compliance in all respects with all applicable Federal antidiscrimination laws is material to the U.S. Government's payment decisions for purposes of section 3729(b)(4) of title 31, United States Code;The Recipient certifies that it does not operate any programs that violate any applicable Federal anti-discrimination laws, including Title VI of the Civil Rights Act of 1964;The Recipient shall not use any grant funds to fund or promote elective abortions, as required by E.0. 14182, Enforcing the Hyde Amendment; and that,Notwithstanding anything in the NOFO or Application, this Grant shall not be governed by Executive Orders revoked by E.G. 14154, including E. 0. 14008, or NOFO requirements implementing Executive Orders that have been revoked.The Recipient must administer its grant in accordance with all applicable immigration restrictions and requirements, including the eligibility and verification requirements that apply under title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended (8_ULSj 1601-164 ) (PRWORA) and any applicable requirements that HUD, the Attorney General, or the U. S. Citizenship and Immigration Services may establish from time to time to comply with PRWORA, Executive Or 4218, or other Executive Orders or immigration laws.No state or unit of general local government that receives funding under this grant may use that funding in a manner that by design or effect facilitates the subsidization or promotion of illegal immigration or shields illegal aliens from deportation, including by maintaining policies or practices that materially impede enforcement of federal immigration statutes and regulations.The Recipient must use SAVE, or an equivalent verification system approved by the Federal government, to prevent any Federal public benefit from being provided to an ineligible alien who entered the United States illegally or is otherwise unlawfully present in the United States.Faith-based organizations may be subrecipients for funds on the same basis as any other organization. Recipients may not, in the selection of subrecipients, discriminate against an organization based on the organization's religious character, affiliation, or exercise.

Chapter 19 Homeless Solutions Rule

Code Me. R. 99-346 Ch. 19 Homeless Solutions Rule {#sec-99-346-ch.-19 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 19}

Summary: The Maine State Housing Authority uses funds from certain federal and state resources to give grants to agencies for a variety of activities to assist people who are experiencing homelessness. This Rule governs MaineHousing’s allocation of resources for such programs, program design, the publication and distribution of program guides, and potential selection criteria. Some resources are distributed according to a funding formula set forth in the applicable Program Guide and Application. Other resources may be distributed according to programs designed by MaineHousing.

Definitions

1. “Act” means the Maine Housing Authorities Act, 30-A M.R.S. §4701, et seq . as amended.

2. “Agency Participation Agreement” is a document that sets forth the obligations of service providers participating in HMIS and governs how information regarding clients and the services they receive is treated.

3. “Applicant” means the municipality or non-profit corporation applying for funds governed by this Rule.

4. “Bed Capacity” means the maximum number of year round beds in an Emergency Shelter as indicated on the agency’s Emergency Shelter and Housing Assistance Program (“ESHAP”) Program Guide and Application; provided, however, for purposes of this Rule, the Bed Capacity of a Low Barrier Shelter means its maximum number of beds as indicated on the Program Guide and Application, multiplied by 125%.

5. “Continuum of Care” or “CoC” is the group organized to carry out the responsibilities required under the CoC Program Interim Rule (24 CFR Part 578, Continuum of Care Program, [77 FR 45442, July 31, 2012, as amended at 80 FR 75940, Dec. 7, 2015]) and comprises representatives of organizations that provide a full range of emergency, transitional, and permanent housing and other service resources to address the various needs of Persons Experiencing Homelessness within the State of Maine.

6. “Coordinated Entry Process” means a process designed to coordinate program participant intake, assessment, and provision of referrals within a geographic area. A Coordinated Entry Process covers the geographic area, is easily accessed by individuals and families seeking housing or services, is well advertised, and includes a comprehensive and standardized assessment tool.

7. “Emergency Shelter” means any facility, the primary purpose of which is to provide a temporary shelter for Persons Experiencing Homelessness or for specific populations of Persons Experiencing Homelessness and which meets the criteria set forth in section 3 of this Rule.

8. “Funding Formula Allocation” means an annual allocation of funds by MaineHousing for Emergency Shelters as further described in section 4 of this Rule.

9. “General Assistance” means the programs run by cities/towns in Maine that help people in need by providing for basic necessities, such as affordable housing, utilities and food.

10. “HEARTH Act” means the Homeless Emergency and Rapid Transition to Housing Act of 2009 (P.L. 111-22), and the regulations promulgated thereunder.

11. “HMIS” means the Homeless Management Information System as further defined in the McKinney-Vento Act as amended by the HEARTH Act.

12. “HMIS Data Standards” means the baseline data collection requirements developed by each of the federal partners which require participation in HMIS, or a comparable database for Victim Service Providers, as a condition of their funding.

13. “HMIS Lead Agency” means the entity designated by the CoC to manage the CoC’s HMIS on the CoC’s behalf

14. “Homeless Prevention” means activities or programs designed to prevent persons from experiencing homelessness including without limitation subsidies for rent, utilities, security deposits, and mortgage payments.

15. “Homeless Service Hub” also referred to as “Hub” or “Service Hub” means a group of regional providers that creates local foundation for the prioritization and case conferencing of the Coordinated Entry Process, as well as working collectively toward ending homelessness. Each Hub supports regional coordination and resource alignment and provides system level data used to improve performance. Maine has nine Service Hubs.

16. “Housing Stabilization” means assessing, arranging, coordinating, and monitoring the delivery of individualized services to facilitate housing stability for a program participant who resides in permanent housing or to assist a program participant in overcoming immediate barriers to obtaining housing.

17. “HUD” means the United States Department of Housing and Urban Development.

18. “Low Barrier Shelter” means an Emergency Shelter that does not require the following for a person or persons to enter or stay at the shelter: (i) criminal background checks, (ii) passing a sex offender registry check, (ii) credit checks or income verification, (iii) payment, (iv) program participation, (iv) sobriety, or (v) identification. Low Barrier Shelters must be accessible and have staff on-site 24 hours a day. Low Barrier Shelters must conduct regular staff training on substance abuse and crisis response and must have overdose prevention and mitigation strategies in place for common spaces and sleeping quarters. All Low Barrier Shelters must maintain and enforce safety requirements for self, staff, place, and others in instances of an imminent threat to safety.

19. “MaineHousing” means Maine State Housing Authority.

20. “Mainstream Resources” means a variety of Federal and state benefit government assistance programs Persons Experiencing Homelessness may be eligible to receive. These include but are not limited to: Temporary Assistance For Needy Families (TANF), Food Supplement Program, veterans’ benefits, MaineCare, General Assistance, Supplemental Security Income Program (SSI), Social Security Disability Insurance (SSDI), and Housing Choice Voucher Program.

21. “Maine’s Job Bank” is an on-line job posting and job search system provided by Maine CareerCenter.

22. “McKinney-Vento Act” means the Stewart B. McKinney-Vento Homeless Assistance Act, 42 U.S.C. §11301 et seq ., and the regulations promulgated thereunder.

23. “Performance” means the performance of the eligible applicants with regards to performance indicators as described in the applicable Program Guide and Application.

24. “Persons Experiencing Homelessness” means persons meeting the definition of homeless as defined by 24 CFR 576.2, Definitions, [76 FR 75974, Dec. 5, 2011, as amended at 80 FR 75939, Dec. 7, 2015].

25. “Program” means an offering of grants, potentially, subject to recapture, available to prospective eligible Applicants on certain terms and for certain purposes determined by MaineHousing pursuant to this Rule.

26. “Program Guide and Application” means the written procedural and administrative guide for a particular Program governed by the terms and conditions of this Rule. It includes the application completed by Applicants.

27. “Rapid Re-housing” means housing relocation and stabilization services and short- and/or medium-term rental assistance as necessary to help Persons Experiencing Homelessness move as quickly as possible into permanent housing and achieve stability in that housing.

28. “Shelter Operations” are the costs of maintenance (including minor or routine repairs), rent, security, fuel, equipment, insurance, utilities, food, furnishings, and supplies necessary for the operation of an Emergency Shelter. The allocation of funding that an Emergency Shelter will receive for Shelter Operations will relate to the Emergency Shelter’s Bed Capacity as described further in the applicable Program Guide and Application.

29. “Victim Service Providers” means private nonprofit organizations whose primary mission is to provide direct services to victims of domestic violence.

30. “Violence Against Women Act “or “VAWA” is a United States federal law (Title IV, sec. 40001-40703 of the Violent Crime Control and Law Enforcement Act of 1994, H.R. 3355).

Eligible Applicants

To be eligible to receive funds, an Applicant must meet the eligibility criteria defined within the applicable Program Guide and Application for funding and comply with MaineHousing requirements for the applicable Program. Applicants for ESHAP will be required to participate in the Coordinated Entry Process. Applicants for other Programs may be required to participate in the Coordinated Entry Process as prescribed in the applicable Program Guide and Application.

Emergency Shelter Requirements

To be eligible to receive funding for operation of an Emergency Shelter, the following requirements must be met:

A. Provide access 365 days per year to assist Persons Experiencing Homelessness meet basic emergency shelter needs;

B. provide adequate sleeping space or beds, and clean and functioning shower and toilet facilities;

C. provide safe and nutritious food, including breakfast or arranging access to breakfast and, if open 24 hours, also provide lunch and dinner or arrange access to lunch and dinner; if meal arrangements occur offsite, arrangement must be reasonably located, comply with accommodation requests, and be safe to consume;

D. provide adequate staffing for program and facility design that ensures participant safety and access to necessary services;

E. treat all guests with dignity and respect, regardless of religious or political beliefs, cultural background, disability, gender identity or sexual orientation;

F. provide shelter, housing services, and connection to permanent housing without preconditions and barriers to entry, such as sobriety, treatment, or service participation requirements;

G. have admittance and stay policies that are appropriate for the population served and do not create unnecessary barriers to guests staying;

H. provide linkages and access to community resources such as health care, job readiness and employment services, Mainstream Resources, and educational services to assist guests in achieving housing stability;

I. assess guests for program eligibility and services to enable mobility to permanent housing with adequate supports;

J. inform guests of their rights and responsibilities, including specific shelter policies and house rules;

K. accept eligible persons regardless of their ability to pay or their eligibility for reimbursement or actual reimbursements from any third party source, including local, municipal, state, or federal funding sources;

L. refrain from collecting fees from guests’ personal assets unless approved by MaineHousing;

M. have no lease requirements for guests;

N. if serving families with children, provide space other than open dormitory style and do not require involuntary family separation for admission;

O. provide separate accommodations for male and female consumers consistent with their gender identity;

P. protect the privacy and confidentiality of guests and their personal information;

Q. provide training, policies, procedures and regular maintenance to encourage, improve, and maintain the health and safety of guests, volunteers and staff;

R. post fire, disaster, and other emergency procedures in a conspicuous place and review the procedures with each guest;

S. maintain a daily and confidential census of shelter clients including precise sleeping locations;

T. operate in compliance with all applicable federal, state and local codes, laws and regulations; and

U. have written policies and procedures for standards that address the following areas: non-discrimination, client grievance and appeal of termination, approval of financial transactions, record retention, procurement, whistleblowers, access to shelter and services, client rights and responsibilities, program personnel and facility operations, health and safety, food preparation and distribution, electronic data and security, Fair Housing, and Drug Free Workplace. All policies must meet federal guidelines.

Funding Allocation

From time to time MaineHousing will allocate a certain amount of funds to be distributed, subject to availability. The funding formula for allocations of funding will be enumerated in the applicable Program Guide and Application. Based on availability, funds will be allocated for the following Programs:

A. Emergency Shelter and Housing Assistance Program – Funding for shelter and rehousing services aimed at meeting immediate shelter needs and movement into permanent housing. Funding will be allocated according to the Funding Formula Allocation, as enumerated in the Program Guide and Application, to include a share for Shelter Operations and Housing Stabilization, and Performance.

B. Targeted Rapid Rehousing Program (TRRP) – Funding for rapid rehousing activities aimed at quickly moving Persons Experiencing Homelessness to housing.

C. Housing Problem Solving (HPS) – Funding for homelessness prevention and rapid exit activities aimed at diverting persons from the homeless system or making their time in the homeless services system rare, brief, and non-reoccurring.

D. The Student Homelessness Prevention Pilot (and any continuation thereof) – Funding to provide assistance to students and their families to prevent them from becoming homeless and/or support them in obtaining stable housing. Funding will be provided to school districts who may choose to subcontract with nonprofit organizations to administer the program.

E. Other Programs. MaineHousing may allocate other funds for Programs to assist Persons Experiencing Homelessness in accordance with applicable federal and state laws.

Program Design

A. Programs. MaineHousing shall design and offer Programs based upon available funds, restrictions attached to such funds, best practices, and needs. The funds may be used for shelter services and outreach activities; for Homeless Prevention and Rapid Re-housing activities such as rental assistance, housing search, mediation, outreach to property owners, legal services, security on utility deposits, and moving costs; and to support entities that offer an integrated array of services to meet the health, housing, employment, and other basic needs of Persons Experiencing Homelessness; to support the construction, renovation or acquisition of a new or existing building to provide emergency housing and shelter services and/or cover the costs to lease a building; and to provide assistance to homeless students in elementary school and secondary school.

B. Program Guide and Application. MaineHousing may distribute a Program Guide and Application to: parties who may be eligible for a Program and who have expressed an interest to MaineHousing in connection with the type of activities eligible under a Program; parties MaineHousing selects for marketing a particular Program; parties that request the Program Guide and Application; and the public by posting it on MaineHousing’s website.

Funding

A. Processing of Applications. MaineHousing may process applications on a first come first served basis or may set an application due date described in the Program Guide and Application for submission for review by a committee. The selection process will be outlined in the Program Guide and Application.

B. Selection for Funding. MaineHousing shall retain final discretion as to whether or not to offer funds to a particular Applicant for a particular purpose.

C. Availability of Funds. Grants are always subject to the availability of funds.

D. Selection Criteria. MaineHousing will set forth requirements and selection and approval criteria germane to a particular Program in the applicable Program Guide and Application. selection criteria may include but are not limited to the following:

• 1. Mainstream Resources 1. how well the Applicant collaborates with their respective Homeless Service Hub; 2. how well the Applicant assists clients in the completion and submission of applications for Mainstream Resources; and 3. how well the Applicant captures the results of the actual benefits received. 2. Housing 1. how well the Applicant assists clients in the completion and submission of applications for client appropriate housing; 2. how well the Applicant assists clients with housing searches; 3. how well the Applicant assists clients with landlord relationships; and 4. how well the Applicant has developed and maintained effective working relationships with local General Assistance offices in assisting clients with access and applications. 3. Health Care 1. Applicant’s relationships and links with one or more local health care providers who provide treatment for clients; and 2. Applicant’s ability to provide or refer clients for mental health or substance abuse assessments and treatment. 4. Employment 1. how well the Applicant assists clients with employment searches, including registering with Maine’s Job Bank; 2. how well the Applicant has developed and maintained effective working relationships with local career centers in assisting clients; and 3. how well the Applicant has developed and maintained effective working relationships with local employers or employment agencies in assisting clients. 5. Prevention 1. Applicant’s knowledge of and ability to refer clients to Pine Tree Legal Assistance for eviction prevention and other legal assistance; and 2. Applicant’s knowledge of and ability to actively refer clients to other local and regional resources, as appropriate.

Data Collection Requirements for Applicants

In order to receive funding, eligible Applicants must do the following, unless prohibited by VAWA or other statute or not required at MaineHousing’s sole discretion:

A. Enter into an Agency Participation Agreement with the HMIS Lead Agency to share certain Homeless Management Information System (HMIS) data with other Emergency Shelters and other providers of services for Persons Experiencing Homelessness;

B. Enter client data as prescribed by MaineHousing and HUD in accordance with requirements set forth in the HMIS Data Standards as revised, and the HEARTH Act, and ensure data completeness and quality in regard to Program performance measures on a monthly basis and submit reports as prescribed by MaineHousing or HUD;

C. Enter client data on outcomes and housing stability as prescribed by MaineHousing or HUD, which will be used for performance measurement, research, or evaluation;

D. Have the capacity to enter client level data into the system of the CoC designated vendor for HMIS data entry; and

E. Submit de-duplicated aggregate reports as required by MaineHousing.

Victim Service Providers are required to have the capacity of a comparable database that collects client level data and provides aggregate, de-duplicated data to MaineHousing in electronic form.

Reporting Requirements for Applicants

A. General Reporting Requirements. An Applicant who receives a grant (“Grantee”) must provide client data prescribed by MaineHousing in a form or forms prescribed by MaineHousing to centralized data collection systems prescribed by MaineHousing in the grant agreement.

B. Missing Reports or Data. A Grantee must provide all reports and all required client data in accordance with the reporting requirements at the time of funds disbursement in order to receive funding.

C. Complete Report. A report will not be considered submitted unless MaineHousing determines that the report is sufficiently complete and all client data is valid.

D. Final Reports. A Grantee may be required to submit a final report showing its use of a grant within 30 days of the end of the term of the grant.

Monitoring and Assessment for Applicants

A. MaineHousing will review for Program compliance based on assessment of risk or at least every three years at reasonable times.

B. MaineHousing may copy and examine all of a Grantee’s records other than medical or other confidential client information protected by VAWA or privacy laws.

C. Grantees will maintain records sufficient to meet monitoring and auditing requirements of MaineHousing and HUD including without limitation daily rosters and client files.

In the case of a physical shelter program facility, MaineHousing will inspect to a minimum for compliance with HUD’s minimum emergency shelter standards pursuant to 24 CFR §576.403(b), Minimum standards for emergency shelters, [76 FR 75974, Dec. 5, 2011, as amended at 88 FR 30498, May 11, 2023].

Rule Limitations

A. Other Laws. If this Rule conflicts with any provision of federal or state law, the federal or state law shall control.

B. Waivers. Upon determination of good cause, the Director of MaineHousing or the Director’s designee may, subject to statutory limitations, waive any provision of this Rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

History

• STATUTORY AUTHORITY: 30-A M.R.S. §§ 4741 (1) and (18); 42 U.S.C.A. §§ 11301 et seq.
• EFFECTIVE DATE: October 18, 1989 – filing 89-427 (EMERGENCY) (as “Shelter Operating Subsidy Program”)
• EFFECTIVE DATE: December 31, 1989 – filing 89-580
• AMENDED: February 28, 1996 – filing 96-70 (EMERGENCY)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 8, 1996
• REPEALED AND REPLACED: April 27, 1997 – filing 97-129 (EMERGENCY) (as “Homeless Programs Rule”)
• AMENDED: November 13, 1999 – filing 99-468
• AMENDED: December 25, 2005 – filing 2005-502
• AMENDED: March 25, 2007 – filing 2007-109
• REPEALED AND REPLACED: November 7, 2011 – filing 2011-397
• REPEALED AND REPLACED: October 7, 2015 – filing 2015-184 (as “Homeless Solutions Rule”)
• REPEALED AND REPLACED: July 11, 2017 – filing 2017-106
• REPEALED AND REPLACED: November 3, 2019 – filing 2019-185
• REPEALED AND REPLACED: December 7, 2022 – filing 2022-233
• REPEALED AND REPLACED: October 28, 2024 – filing 2024-242
• REPEALED AND REPLACED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025
• APAO ACCESSIBILITY CHECK: November 6, 2025 (no issues detected)
• REPEALED AND REPLACED: November 11, 2025 – filing 2025-219

Chapter 24 Home Energy Assistance Program Rule

Code Me. R. 99-346 Ch. 24 Home Energy Assistance Program Rule {#sec-99-346-ch.-24 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 24}

Summary: The Rule establishes standards for the Home Energy Assistance Program for the State of Maine as administered by the Maine State Housing Authority. The Home Energy Assistance Program provides Fuel Assistance and Energy Crisis Intervention Programs to income Eligible Households. The Rule also establishes standards for the HEAP Weatherization, Central Heating Improvement Program, and Heat Pump Program.

1. Definitions.

“Act” means the Maine Housing Authorities Act, 30-A M.R.S. § 4701 et seq., as it may be amended from time to time.

“Annual Consumption Report” means the annual report Vendors must submit to MaineHousing to report their HEAP customers’ Home Energy deliveries from May 1st through April 30th.

“Primary Applicant” means a person who signs the completed Application.

“Application” means forms and documents completed, signed, and provided by Primary Applicant to determine eligibility for a Benefit and ECIP.

“Application Date” means the date an Application is taken with the Primary Applicant by Subgrantee personnel both online or not online.

“Benefit” means the dollar amount of Fuel Assistance an Eligible Household receives.

“Benefit Return” means a Benefit, partial or whole, returned to MaineHousing.

“Categorical Income Eligibility” means Household Members who are included on a Maine Department of Health and Human Services (“Maine DHHS”) Notice of Decision for TANF or SNAP assistance will be considered income eligible for HEAP, as the Household Members’ incomes have already been vetted. Household Members who are not included on the Notice of Decision must provide income documentation as outlined in this Rule and the HEAP Guide.

“CHIP” means the Central Heating Improvement Program.

“Citizenship Attestation Form” means an attestation form prescribed by MaineHousing in the HEAP Guide.

“Contractor” means a provider of materials or services to Eligible Households.

“Application Received Date” means the date a signed Application is received by the Subgrantee.

“Direct Energy Cost” means an Energy Cost that is directly paid by the Household.

“Dwelling Unit” means an occupied residential housing structure with one or more rooms that was originally constructed and designed as permanent living quarters for one or more persons, when permanently connected to the required utilities (including plumbing, electricity and Heating Systems) and contains bathroom and kitchen facilities specific to that unit. A Dwelling Unit has its own private entrance from the outside or off an enclosed hallway leading from the outside that does not pass through or offer an open access to any other unit within the structure. A Dwelling Unit does not include a camper, trailer, semitrailer, truck camper, motor home, boat, railroad car, bus, yurt or other structure designed and constructed to provide temporary living quarters.

“ECIP” means the Energy Crisis Intervention Program.

“Eligible Household” means a Household that satisfies all eligibility and income requirements of the HEAP Act and requirements of this Rule.

“Energy Cost” means cost of energy used for heating a Dwelling Unit or Rental Unit.

“Energy Crisis” shall have the same meaning as set forth in 42 U.S.C. §8622(3), as same may be amended from time to time.

“Errors and Program Abuse” means the act of applying for or obtaining assistance to which one is not entitled by means of submitting false statements or withholding information pertinent to the determination of eligibility or benefits.

“Fuel Assistance” means the component of HEAP that assists Eligible Households with their Home Energy Costs.

“Functioning Heating System” means a Heating System that is working safely.

“HEAP” means the Home Energy Assistance Program established pursuant to the HEAP Act and the Act.

“HEAP Act” means 42 U.S.C. §8621 et seq., and the regulations promulgated there under, including 45 C.F.R. § 96.1 through 96.68 and 45 C.F.R. § 96.80 et seq., all as may be amended from time to time.

“HEAP Guide” means the program guide in effect for a Program Year that is used as a resource and guide for the administration of HEAP.

“HEAP Weatherization” means the weatherization component of HEAP that provides Low- cost/no-cost Weatherization Activities, as defined by 10 C.F.R. §440.20, and other cost-effective energy-related home repairs or installations.

“Heating Season” means the period of time beginning October 1 and ending April 30.

“Heating Source” means any device used to provide heat to a Dwelling Unit.

“Heating System” means a permanently installed system that is used to heat the Dwelling Unit. A portable space heater is not considered to be a Heating System.

“Home Energy” means a source of heating or cooling in residential dwellings as set forth in 42 U.S.C. §8622(6), as same may be amended from time to time.

“Household” means any individual or group of individuals who are living together as one economic unit for whom residential energy is customarily purchased in common or who make undesignated payments for

energy in the form of rent as set forth in 42 U.S.C. §8622(5), as same may be amended from time to time.

“Household Income” means the total income from all sources before taxes and deductions as further defined in this Rule.

“Household Member” or “Household Members” means those individuals who are part of the Household.

“Incidental Costs” means costs of services billed to a Household by a Vendor related to the use or delivery of Home Energy including, but not limited to: surcharges, penalty charges, reconnection charges, clean and repair service charges, security deposits, and insurance.

“Indirect Determinable Energy Cost” means a cost for Home Energy that is not directly paid for by the Household but is a cost to the Household, such as heat that is included in rent.

“Life Threatening Crisis” means the household is currently without heat or utility service to operate a Heating Source or a Heating System.

“MaineHousing” means the Maine State Housing Authority.

“Manufactured/Mobile Home” means a residence that is constructed at a manufacturing facility on a permanent chassis (i.e. the wheel assembly necessary to transport the residence is removable, but the steel undercarriage remains intact as a necessary structural component), was originally constructed and designed as permanent living quarters, and is transportable in one or more sections, which in traveling mode is 12 body feet or more in width and as erected on site is 600 or more square feet.

“Modular” means a residence that is constructed at a manufacturing facility, but not constructed on a permanent chassis, was originally constructed and designed as permanent living quarters, and is transportable in one or more sections on an independent chassis such as a truck or train.

“Overpayment” means any HEAP benefits paid to, or on behalf of, any Primary Applicant or Household that exceeds the amount the Primary Applicant or Household was eligible to receive.

“Person with a Disability” means a person with a physical or mental disability as defined pursuant to 5 M.R.S. § 4553-A.

“Programs” means Fuel Assistance, Energy Self Sufficiency, ECIP, CHIP, and HEAP Weatherization.

“Program Year” means the period of time beginning October 1 and ending September 30.

“Rental Unit” means a Dwelling Unit that is rented.

“Roomer” means a person who qualifies as a separate Household and pursuant to a rental agreement rents no more than two rooms in a Dwelling Unit occupied as separate living quarters and who may, depending upon the rental agreement, be granted privileges to use, but not reside in, other rooms located in the same Dwelling Unit. A Roomer cannot be related by birth, marriage or adoption to any member of the lessor’s Household. A Roomer also includes a boarder (meaning a Roomer who is provided meals).

“Service Area” means the geographic area, as defined by MaineHousing, within which the Subgrantee operates and administers the Programs and the Vendor provides services.

“State” means the State of Maine.

“Subgrantee” means a public or private nonprofit agency, or municipality, selected by MaineHousing to administer the Programs.

“Subsidized Housing” means Households whose rent is based on their income or the subsidy pays for any portion of their mortgage. Housing in which a tax credit or federal/state loan is applied to reduce debt burden on the property is not considered Subsidized Housing. A resident of a residential housing facility including without limitation group homes, homeless shelters, and residential care facilities or a Tenant who pays below market rent or no rent due to the landlord receiving a federal or state subsidy for rent is living in Subsidized Housing.

“Supplemental Benefits” means the benefits that are funded with supplemental HEAP funds.

“Supplemental Nutrition Assistance Program (SNAP)” means the nutrition assistance program administered by the United States Department of Agriculture.

“Tenant” means a Primary Applicant who resides in a Rental Unit.

“Vendor” means an energy supplier that has entered into an agreement (“Vendor Agreement”) with MaineHousing to provide Home Energy to Eligible Households.

Application.

• • 1. A Primary Applicant may have only one certified eligible Application per Program Year. Household Members may not submit an Application for a given Program Year if they were included on a certified eligible Application for that Program Year.
• • 1. A Primary Applicant may submit a new Application if the Primary Applicant’s Application has been denied.
• • 1. Subgrantees will process Applications in accordance with the requirements of this Section and the HEAP Guide:

Applications will be taken as prescribed by MaineHousing each Program Year, beginning on the first business day of August and will continue to be taken until the last working day of May of the Program Year or until otherwise prescribed by MaineHousing, whichever occurs sooner.

The Application forms provided or approved by MaineHousing must be used to administer the Programs and will be reviewed annually prior to the commencement of taking Applications each Program Year.

All Applicants need to return the signed Application within thirty (30) business days of the interview with the Subgrantee. If the Primary Applicant does not return the signed Application within the prescribed period, the Application will be voided. If the Primary Applicant returns the signed Application after the thirty (30) business days, the Subgrantee may reopen the Application at any time during the current application period.

Subgrantee will make all reasonable efforts during the first ninety (90) days Applications are taken to process and serve returning Households that have a Direct Energy Cost and a member in the Household who (i) is 60 years of age or older, (ii) has a disability, or (ii) is 6 years or younger.

Subgrantees must comply with MaineHousing’s Equal Access Handbook to assist Households with Limited English Proficiency (LEP) and must make reasonable accommodations for a Person with a Disability.

Subgrantee must certify or deny an Application within thirty (30) business days from the Application Received Date. Written notification of eligibility must be sent to the Primary Applicant within ten (10) calendar days of the Benefit issuance. Written notification of denial must be sent to the Primary Applicant within three (3) business days.

Written notification of eligibility. The written notification of eligibility must state the Benefit amount, the date the Benefit or credit notification was sent to the Vendor, the approved Home Energy type and the manner by which the Primary Applicant can request an Informal Review or Fair Hearing, if applicable.

Written notification of void. The written HEAP Application Voided notification must state non-receipt of a signed application.

Written notification of denial. The written notification of denial must state the facts surrounding the decision, the reason for the decision and the manner by which the Primary Applicant can request an Informal Review or Fair Hearing.

i. A denial for missing information will be reversed if the required information is received by the Subgrantee at any time during the Program Year. The Primary Applicant must provide the documentation that was required at the time of denial ora new Application must be completed.

7. The Subgrantee must verify citizenship or legal status, income and Social Security Numbers of all Household Members as well as the identity of the Primary Applicant as prescribed by the HEAP Guide and this Rule.

Eligibility.

Except as may be expressly provided for elsewhere in this Rule, eligibility shall be determined on the basis of information submitted by the Primary Applicant as of the Application Date. MaineHousing and Subgrantees reserve the right to ask for additional or clarifying information from the Primary Applicant, Household Members, or third parties to determine eligibility.

A. Household Eligibility.

1. The Primary Applicant and each additional Household Member must be one of the following: (1) a U.S. Citizen; (2) a U.S. Non-Citizen National; or (3) a Qualified Alien. If the Primary Applicant or any Household Member does not meet this requirement they must be excluded from the total number of Household Members when calculating a Benefit. All documentation must be valid. Expired or absent documentation is not acceptable.

U.S. Citizenship or U.S. Non-Citizen National status may be verified using ONE of the following documents:

U.S. Passport or U.S. Passport Card

Real ID issued by any U.S. State

Certificate of Naturalization (N-550/N-570)

Certificate of Citizenship (N-560/N-561)

U.S. Birth Certificate or similar document evidencing U.S. birth that includes all of the following information for the individual:

Name

Date of Birth

U.S. Place of Birth (including city, town or county, and State)

Parent(s) name(s)

A Certification from the appropriate state or local body (state,town/city, etc)

A seal or for newer records, the bar code

Document from federally recognized Indian Tribe that includes your name and the name of the federally recognized Indian Tribe that issued the document, and shows your membership, enrollment, or affiliation with the tribe. Documents that can be provided:

A Tribal enrollment card;

A Certificate of Degree of Indian Blood;

A Tribal census document;

Documents on Tribal letterhead signed by a Tribal official

If the documentation listed above is unavailable for the Primary Applicant or any Household Member, then Subgrantee may accept ONE document from each of the two lists (List A & List B) below to show U.S. Citizenship or U.S. Non-Citizen National status.

LIST A

LIST B

Social Security Card and Citizenship Attestation Form

Driver’s license issued by a U.S. State or

Territory

Consular Report of Birth Abroad (DS1350)

Identification card issued by the Federal, state or local government

Certification of Birth Abroad (FS-545)

School identification card

U.S. Citizen Identification Card (I-197)

Northern Mariana Card (I-873)

U.S. Military card or draft record or

Military dependent’s identification card

Military record showing a U.S. place of birth

U.S. Coast Guard Merchant Marnier card

U.S. medical record from a clinic, hospital, physician, midwife or institution showing a U.S. place of birth

Voter Registration Card

U.S. life, health or other insurance record showing U.S. place of birth

Two other documents that prove your identity, like employer identification cards, high school or college diplomas, marriage certificates, divorce decrees, property deeds or titles

Religious record showing U.S. place of birth recorded in the U.S.

School record showing the child’s name and U.S. place of birth

Federal or State census record showing U.S. citizenship or U.S. place of birth

Final adoption decree or Record of Birth After Adoption showing the person’s name and U.S. place of birth

Document evidencing U.S. birth that includes the individual’s name, date of birth, and U.S. place of birth

Documentation of a foreign-born adopted child who received automatic U.S. Citizenship (IR3 or IH3)

Qualified Alien status may be verified using ONE of the following documents:

Alien lawfully admitted for permanent residence:

Permanent Resident Card, “Green Card” (I-551); OR

Unexpired Temporary I-551 stamp in foreign passport or on INS Form I-94

Asylee

INS Form I-94 showing grant of asylum under Section 208 of the INA;

INS Form I-688B (Employment Authorization Card) annotated

“274a.12(a)(5)”;

INS Form I-766 (Employment Authorization Document) annotated “A5”;

Grant letter from the Asylum Office or INS; OR

Order of an immigration judge granting asylum

Refugee

INS Form I-94 showing admission under

§ 207 of the INA;

INS Form I-688B (Employment Authorization Card) annotated “274a.12(a)(3)”;

INS Form I-766 (Employment Authorization Document) annotated “A3”; OR

INS Form I-571 (Refugee Travel Document)

Alien Paroled into the U.S. for at least one year

INS Form I-94 showing admission for at least one year under section 212(d)(5) of the INA. (Cannot aggregate period of admission for less than one year to meet the one-year requirement)

Alien whose deportation or

removal was withheld

INS Form I–688B (Employment Authorization Card) annotated

‘‘274a.12(a)(10)’’;

INS Form I–766 (Employment Authorization Document) annotated

‘‘A10’’; OR

Order from an immigration judge showing deportation withheld under § 243(h) of the INA as in effect prior to April 1, 1997, or removal withheld under § 241(b)(3) of the INA

Alien Granted Conditional

Entry

INS Form I–94 with stamp showing admission under § 203(a)(7) of the INA;

INS Form I–688B (Employment Authorization Card) annotated

‘‘274a.12(a)(3)’’; OR

INS Form I–766 (Employment Authorization Document) annotated

‘‘A3’’

Cuban/Haitian Entrant

INS Form I–551 (Alien Registration Receipt Card, commonly known as a

‘‘green card’’) with the code CU6, CU7, or CH6;

Unexpired temporary I–551 stamp in foreign passport or on *INS Form I–94 with the code CU6 or CU7; OR

INS Form I–94 with stamp showing parole as ‘‘Cuba/Haitian Entrant’’ under Section 212(d)(5) of the INA

The Primary Applicant must also verify their identity. All documentation must be valid. Expired or absent documentation is not acceptable. If the documentation provided by the Primary Applicant to verify citizenship or legal status bears a photograph of the Primary Applicant, this will be acceptable to verify identity. Otherwise, ONE of the following documents will be acceptable:

Driver’s license

SNAP electronic benefit transfer (EBT) card with photo

State issued ID card

U.S. Military ID

U.S. Passport or U.S. Passport card

If the documentation listed above is unavailable for the Primary Applicant the Subgrantee may allow the Primary Applicant to verify identity by providing TWO of the following documents:

Adoption Decree

Document evidencing U.S. birth that includes the individual’s name, date of birth, and U.S. place of birth

Divorce Decree

Employer Identification Card

Foreign School Record that contains a photograph

High School or College Diploma

Marriage Certificate

Notice from a Public Benefits Agency (i.e. Notice of Decision from DHHS, Social Security Benefit Award Letter, MaineCare

Award Letter)

Property Deed or Title

Document

Social Security Card

Union or Worker’s Center Identification Card

Voter Registration Card

If the Primary Applicant cannot verify their identity they are not eligible for a Benefit. If the Primary Applicant is applying on behalf of other eligible Household Members, at least one of the eligible Household Members must provide the required identity documentation.

All Household Members 24 months of age or older must provide proof of their Social Security Number (SSN) in order to be counted as part of the Household. One of the following documents is acceptable provided it contains all nine digits of the Household Member’s SSN and the Household Member’s full name:

Bank tax form

Medicare card with number ending with the suffix “A”

Non SSA-1099 tax form

Social Security Card issued by the Social Security

Administration

SSA 1099 tax form

Valid unexpired U.S. Military documents such as DD Form 214 Certificate of Release or Discharge from Active Duty issued by the U.S. Department of Defense

W-2 (wage and tax statement dated within the last two (2) years)

If the documentation listed above is unavailable for any Household Member the Subgrantee may allow the Household Member to provide one of the following documents:

Two recent paystubs (within the last sixty (60) days) showing Household Member’s full SSN

A recent (within the last year) Social

Security Administration letter or notice showing Household Member’s full SSN

A Notice of Decision issued by a Public

Benefits Agency that shows the

Household member’s full SSN

An Income Withholding Order/Notice for Support showing Household Member’s full SSN

If the Household includes a foster child, an official statement from DHHS confirming the nine-digit social security number of the foster child is acceptable documentation.

If the Household includes a child under the age of 24 months old who has not received a SSN, the Application is processed. However, the Primary Applicant must provide the child’s SSN for subsequent Program Year Applications, after the child reaches the age of 24 months old.

On the Application Date, all Household Members must be full-time residents of the State and reside in the Dwelling for which they will receive benefits during the Program Year’s Heating Season and have a Direct Energy Cost or Indirect Determinable Energy Cost.

As part of the application process all Household Members 18 years of age or older must sign a release to grant permission to share their personal information between the Maine Department of Health and Human Services, the Maine Department of Labor, the Social Security Administration, Subgrantee and other organizations designated on the permission to share form and MaineHousing to determine eligibility for Benefits as well as eligibility for other programs administered by State, Federal and local agencies.

A Household’s eligibility to receive benefits from Programs is contingent on the resolution of any Overpayment as described in Section 13, Errors and Program Abuse. During repayment a Household will be eligible for ECIP if they enter into and are in compliance with the terms of the repayment agreement. The Household will not be eligible under the HEAP Weatherization and the Department of Energy Weatherization Assistance Program, CHIP, or the Heat Pump Program until repayment is complete.

Roomers may be eligible Households if the Primary Applicant can show a rental agreement that was in existence prior to the Application Date and the Roomers meet all of the other eligibility criteria. The Roomers cannot comingle funds or share expenses with the lessor’s Household.

A member of the Household who is away from the Dwelling Unit part of the time must be included as a Household Member unless the member is a full-time college student as described below in Section 3(9).

A full-time college student, up to age 23 years old, or more than 23 years of age if permanently or totally disabled, who is a dependent of the Household may be excluded from the Household if the Primary Applicant chooses as long as the student is not the Primary Applicant.

A Live-In-Care Attendant who (i) provides needed health/supportive services to a member of the Household as documented by a qualified professional; (ii) would not be living in the unit except to provide the necessary supportive services; and (iii) does not contribute financially to the Household, will not be considered part of the Household. If an individual does not meet this definition, they must be included as a Household Member.

Any eligibility documentation with mismatched names requires additional verification in accordance with the procedures set forth in the HEAP Guide.

B. Dwelling Unit Eligibility.

1. The Dwelling Unit must:

Have a Functioning Heating System;

Be occupied by the Household as its primary residence on a full-time/year-round basis;

Be permanently connected to or serviced by standard utilities such as electricity and water unless the Household can provide supporting documentation to show the Household occupies the Dwelling Unit as its primary residence on a fulltime/year-round basis; and

Be a residential housing structure with one or more rooms that was originally constructed and designed as permanent living quarters.

A Dwelling Unit does not include a camper, trailer, semitrailer, truck camper, motor home, boat, railroad car, bus, yurt or any other structure designed and constructed to provide temporary living quarters, regardless of any and all modification(s) or length. For Fuel Assistance only, a Dwelling Unit may include a hotel or motel if the Household provides documentation showing that the hotel/motel has been their permanent residence for at least sixty (60) days prior to the Application Date.

A Dwelling Unit that is considered Subsidized Housing may be eligible for Fuel Assistance if the heat is included in the rent and the Household pays a portion of their rent or utility costs.

Dwelling Units that are used partially for business activity are eligible.

C. Income Eligibility

Income Eligibility is based on documented Household Income or Categorical Income

Eligibility. MaineHousing uses the Federal Poverty Income Guidelines and State Median Income Guidelines as reported annually by the United States Department of Health and Human Services. MaineHousing reserves the right to manage the Programs within those guidelines when determining benefits.

1. Household Income is determined and verified in accordance with the information provided on the Application. Household Income means the total combined income of all Household Members over the age of 18, unless otherwise excluded from all sources before taxes and deductions and is verified in accordance with the guidelines in the HEAP Guide. Household Income includes, but is not limited to, the following:

Wages, salaries, commissions, tips, and bonuses before any taxes or deductions;

Self-employment income;

Social Security Retirement (SS), Social Security Disability Insurance (SSDI) and

Supplemental Security Income (SSI) Benefits, including Medicare deductions;

Unemployment Insurance and worker's compensation and/or strike benefits from union funds;

Spousal support or alimony received by a Household Member, or mortgage/rent payments in lieu of or in addition to payments;

Court ordered or voluntary child support payments received by a Household Member, or mortgage/rent payments in lieu of or in addition to support payments;

Veteran’s Administration (VA) Benefits;

Cash gifts from someone not living in the Household excluding loans;

Government employee pensions, private pensions, and regular annuity payments;

Income from dividends, royalties, estates, trusts, and interest.;

Rental income, including funds received from Roomers;

Contract Income;

Payments from mortgage or sales contracts;

Long Term Disability Payments

Household Income does not include:

Assets drawn down from financial institutions;

Foster care payments;

Adoption assistance;

Capital gains (except for business purposes);

Income from the sale of a primary residence, personal car, or other personal property, excluding mortgage or sales contracts;

Tax refunds;

Imputed Income

One-time insurance payments;

One-time compensation for injury;

Non-cash income such as General Assistance voucher payments;

Non-cash goods provided to aid in the support of a minor, such as diapers, clothing, or the like;

Reimbursement for expenses incurred in connection with employment;

Reimbursement for medical expenses;

Any funds received for education from grants, loans and scholarships, and work study;

Retroactive payments and overpayment adjustments from an entitlement program (i.e.

worker’s comp, social security benefits, etc.);

Income earned by a Household Member who is a full time high school student, unless they are the Primary Applicant;

Income earned by a full-time college student who is not counted as a Household Member in accordance with this Rule;

Combat zone pay from the military;

All income used to fulfill a Social Security Administration Program to Achieve Self-Sufficiency (PASS);

Federal payments or benefits excluded by law as set forth below:

Payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1902, 42 U.S.C. 4636).

Payments of land settlement judgments distributed to or held in trust for members of certain Indian Tribes under Public Laws 92-254, 93- 134, 93-531, 94-114; 94540, 97-458, 98-64, 98-123 and 98-124.

Funds available or distributed pursuant to Public Law 96-420, the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721 et. seq.) to members of the Passamaquoddy Tribe, the Penobscot Nation and the Houlton Band of Maliseet Indians.

The value of the allotment provided a household under the

Supplemental Nutrition Assistance Program (7 U.S.C.A. 51).

The value of assistance to children as excluded under the National School Lunch Act (42 U.S.C. 1760(e)) and under the Child Nutrition Act of 1966 (42 U.S.C. 1780(b)).

The value of commodities distributed under the Temporary Emergency Food Assistance Act of 1983 (Public Law. 98-8, 7 U.S.C. 612c). vii. Allowances, earnings and payments to individuals participating in programs under the Workforce Innovation and Opportunity Act https://www.congress.gov/113/bills/hr803/BILLS-113hr803enr.pdf

viii. Program benefits received under the Older Americans Act of 1965 (42 U.S.C. sub-section 3020(a)[b]) as wages under the Senior Community Service Employment Program (SCSEP).

ix. Payments to volunteers under the Domestic Volunteer Service Act of 1973 (Public Law 93-113, 42 U.S.C. 5044).

The value of any assistance paid with respect to a dwelling unit under the United States Housing Act of 1937, the National Housing Act, Section 101 of the Housing and Urban Development Act of 1965, or Title V of the Housing Act of 1949.

The tax-exempt portions of payments made pursuant to the provisions of the Alaska Native Claims Settlement Act (Public Law 92-203, 43

U.S.C. 1620(a)).

Payments for supportive services or reimbursement of out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the

Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE) and any other programs under Titles II and III, pursuant to Section 418 of Public Law 93-113.

Any wages, allowances or reimbursement for transportation and attendant care costs, unless accepted on a case-by-case basis, when received by an eligible handicapped individual employed in a project under Title VI of the Rehabilitation Act of 1973 as amended by Title II of Public Law No. 95-602.

All student financial assistance including the following programs funded under Title IV of the Higher Education Act as amended:

Pell Grants;

Supplemental Educational Opportunity Grants;

Grants to States for State Student Incentives;

Special Programs for Students from Disadvantaged Backgrounds;

Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farm work;

Robert C. Byrd Honors Scholarship Program;

Assistance to Institutions of Higher Education;

Veterans Education Outreach Program;

Special Child Care Services for Disadvantaged College Students;

Payments to veterans for Aid and Attendance benefits.

An adjustment to a Household’s gross income may be made if the Household is over income and has documented medical expenses that were paid during the income period. The amount of medical expenses deducted will be equal to only the amount necessary to make the Household eligible. Medical expenses are defined by Internal Revenue Service Publication 502, as the same may be amended from time to time.

The income of Household Members who do not meet the citizenship or legal status requirements must be included in the Household’s income.

2. Categorical Income Eligibility. Adult Household Members who are included on a Maine DHHS Notice of Decision or similar document containing the same information, as determined acceptable by the Subgrantee, for TANF or SNAP assistance will have Categorical Income Eligibility for HEAP. Household Members with Categorical Income Eligibility may have their income determined at a pre-established percentage of the federal poverty level, or using actual vetted income if provided by Maine DHHS. Adult Household Members who are not included in the Notice of Decision must provide income documentation as outlined in this Rule and HEAP Guide.

Benefit Determination.

Benefits are determined to ensure that the highest level of assistance will be furnished to Eligible Households which have the lowest incomes and the highest Energy Costs or needs. Benefit availability is based on HEAP funding availability.

• • • 1. MaineHousing, or the Subgrantee as allowed by MaineHousing, will assign a number of points to an Eligible Household that correlates to their Energy Costs. The number of points will be adjusted by an assigned percentage that correlates to the Eligible Household’s poverty level and prorated based on any ineligible Household Members. The adjusted number of points will then be multiplied by a dollar value.

MaineHousing will announce the actual dollar value of points no later than the fifteen (15) calendar days following receipt of the federal HEAP grant award.

The number of points assigned to an Eligible Household will be determined pursuant to the following:

Base Points (All eligible households will receive this)

8

Dwelling

Points

Stick-built/Modular

3

Mobile/Manufactured Home

2

Condo/Duplex

1

Apartment

1

County

Points Based on HDD

Aroostook

6

Franklin

5

Somerset

4

Piscataquis

4

Oxford

4

Hancock

4

Washington

4

Sagadahoc

3

Penobscot

3

Waldo

3

Androscoggin

2

York

2

Knox

2

Lincoln

2

Cumberland

1

Kennebec

1

Fuel Source

Points

Electric

8

LP Gas (Propane)

5

Kerosene

5

Wood Pellet

4

Oil

4

Coal

4

Natural Gas

3

Wood

3

Biobrick

3

At Risk

Points for the first in the house

60 +, child 6 and under, Disabled

5

Heating Subsidized

-3

Income

Multiplier

0-10.99%

1.8

11– 33.99%

1.6

34-75.99%

1.4

76-100.99%

1.2

101-125.99%

1

126-150.99%

0.9

151-175.99%

0.8

176%

0.7

All final point results that are fractional will be rounded up to the nearest whole number.

• • • 1. Tenants residing in Subsidized Housing with heat included in their rent, who pay a portion of their rent or utility costs, are only eligible to receive a Benefit in an amount to maximize benefits under SNAP.

Payment of Benefits.

A. The Primary Applicant shall select a Vendor that will deliver Home Energy to the Eligible Household. Payment of Benefits will be made directly to the Vendor, unless otherwise specified, by the methods prescribed below:

For payment prior to delivery, MaineHousing, or a Subgrantee as allowed by MaineHousing, will pay a Benefit to the Vendor within ten (10) business days of the date the Application is certified eligible or when HEAP grant funds are available, whichever is later.

For payment post-delivery, MaineHousing, or a Subgrantee as allowed by MaineHousing, will provide a Credit Notification Report within ten (10) business days of the date the Application is certified eligible or when HEAP grant funds are available, whichever is later. The Credit Notification Report will list the Primary Applicant’s name, address, Home Energy type, account information and Benefit amount. MaineHousing will make payment for Benefits after the Vendor makes delivery as authorized by MaineHousing.

For payment for Primary Applicants that heat with Wood, Wood Pellets, Coal, Corn, or Bio-Fuel-, MaineHousing, or a Subgrantee as allowed by MaineHousing, will make payment for a Benefit by direct check to the Primary Applicant .

For Primary Applicants with no available Vendors serving the area where the Household resides, MaineHousing, or the Subgrantee as allowed by MaineHousing, may pay Benefits directly to the Primary Applicant upon receipt of a signed Attestation from the Primary Applicant attesting the Benefit received will be used for its intended purpose.

B. Payment of Benefits may be made directly to the Primary Applicants with an Indirect Determinable Energy Cost.

Benefit Returns and Transfer:

A. Program benefits may not be sold, transferred, released or otherwise conveyed by the Eligible Household or the Vendor without written authorization from MaineHousing. MaineHousing will only authorize such conveyances when it is in the best interest of the Eligible Household and is consistent with the intent of the HEAP Act. Examples of situations where MaineHousing may authorize such conveyances include, but are not limited to:

Relocation of all Household Members within the State;

Change in Vendor by Household;

Change in Home Energy vendors available to Household;

Relocation from a Dwelling Unit with a Direct Energy Cost to a Dwelling Unit with Indirect Determinable Energy Cost (not including Subsidized Housing);

Relocation to Subsidized Housing with Direct Energy Cost;

Change in Home Energy type; and

Primary Applicant passes away and surviving eligible Household Members remain in the Household, including at least one adult.

Program benefits will only be available for reissue or transfer during the Program Year of issue up until March 31^st of the Program Year immediately following.

• • • 1. In order to reissue or transfer a Benefit MaineHousing may require the Household to provide an Application Update Form bearing the Primary Applicant’s signature and date. Failure to provide the information within 30 days, may result in delay or forfeiture of the Benefit.
• • • 1. Program Benefits may not be eligible for reissue or transfer if the Primary Applicant committed Errors and Program Abuse when completing the Application, there was an Overpayment, the

Primary Applicant’s primary residence changes to a nursing home or long term care facility and there are no remaining Household Members, the Household moves to Subsidized Housing with heat included, the Primary Applicant moves into another Household that received a Benefit in the current Program Year, the Household moves into an ineligible Dwelling Unit, the Program Benefit was not reissued before the deadline, the Primary Applicant passes away and there are no surviving Household Members or the Household moves out of State.

• • • 1. Vendors that receive a Benefit return form requesting the return of Benefits paid to Vendor on behalf of Eligible Households, shall return such Benefits to MaineHousing within fifteen (15) business days of date of Benefit return form. Once the funds are received, MaineHousing will process the reissue or transfer as appropriate within fifteen (15) calendar days of receiving all required documentation.

Energy Crisis Intervention Program (ECIP).

All ECIP services will be conducted by Subgrantees within their Service Area, unless otherwise authorized by MaineHousing, and will be subject to the availability of ECIP funds

• • • 1. A Household may be eligible for ECIP if a Household Member’s health and safety is threatened by an Energy Crisis situation and the Household does not have the financial means to avert the Energy Crisis. The Household will not be eligible if: they have any other Heating System that is safe and operable and has a supply of product; they reside in Subsidized Housing with heat included or a Rental Unit with heat included (with the exception that if the Household has a utility disconnection notice that relates to the operation of the Heating System, they may receive ECIP to restore the utility); or they have an Overpayment balance and have not entered into or complied with a repayment agreement. An Eligible Household under HEAP is income eligible for ECIP.
• • • 1. An Energy Crisis includes:

Reading of 1/4 tank or less on a standard 275 gallon heating oil tank;

Reading of 25% or less on a propane tank;

7-day or less supply for other delivered Home Energy types; and

A utility disconnection notice that relates to the operation of the Heating System,

C. Allowable expenditures may include:

Home Energy deliveries provided the Eligible Household has exhausted any remaining Benefits previously issued;

Delivery charges associated with fuel deliveries under ECIP;

Surcharges, reconnection charges, or penalties related to a final utility disconnect notice;

Heating System repair, including restart fees;

Purchase of space heaters;

Temporary relocation provided the Eligible Household is experiencing a Life Threatening Crisis that cannot be averted within 18 hours by one of the above measures.

• • • 1. ECIP will be administered pursuant to HEAP between November 1 and April 30. Conditioned on the availability of ECIP funds Energy Crisis benefits will be provided within 48 hours of the Household being certified eligible and Life Threatening Crisis funds will be provided within 18 hours of the Household being certified eligible.
• • • 1. ECIP benefits are determined each Program Year by MaineHousing based on Home Energy costs, economic conditions, and available funding.
• • • 1. Any denial of ECIP benefits will be provided to the Primary Applicant within three (3) business days.
• • • 1. ECIP Payments.

1. Payment will be made after the vendor makes delivery and returns documentation required by MaineHousing to Subgrantee. MaineHousing will make payment within ten (10) business days of Subgrantee entering required information into the MaineHousing database.

Central Heating Improvement Program (CHIP).

All CHIP services will be conducted by Subgrantees within their Service Area, unless otherwise authorized by MaineHousing, and will be subject to the availability of HEAP funds.

A. Eligibility.

1. Household Eligibility.

A Household may be eligible for CHIP if the Household is eligible for HEAP, has an eligible Application that was certified within the preceding twelve (12) months, and does not have a more recent Application that has been certified denied.

Eligible Households shall be served on a first-come, first-served basis with respect to each level of priority listed below, except when the Subgrantee is providing weatherization services to a Dwelling Unit in which case the Subgrantee can serve Eligible Households that allow the Subgrantee to leverage CHIP funds first. Subgrantees may prioritize within the priority levels listed below by Households that have a Household Member that (i) is 60 years of age or older, (ii) has a disability, or (ii) is 6 years of age or younger.

Eligible Households experiencing an Energy Crisis caused by Heating System malfunction or failure.

Preventative cleaning, tuning, evaluation and minor repairs on a nonemergency basis (owner-occupied dwelling units only). Date of the last cleaning, tuning and evaluation by a licensed technician must be more than twelve (12) months prior to the initiation of services date.

B. Dwelling Unit Eligibility.

1. Ownership will be verified for all Dwelling Units and Rental Units and additional documentation or written permission may be required for life estates and life leases or tenants.

a. A Dwelling Unit that has a life estate or life lease interest may be eligible if the document conferring the Primary Applicant rights of the life estate or life lease is recorded in the appropriate registry of deeds and states that the Primary Applicant is responsible for maintaining the Dwelling Unit or is silent as to who is responsible for maintenance.

2. A Dwelling Unit will not be eligible under CHIP if: it is a Rental Unit that has reached the life-time maximum benefit, it has been designated for acquisition or clearance by a federal, state or local program or order, it is in foreclosure, for sale, vacant, uninhabitable, it is in poor structural condition making CHIP services impractical, ineffective or impossible, it has been damaged by fire, flood or an act of God and insurance will cover the damage, there are discrepancies on the Household’s

Application, there is evidence that the Heating System was not properly maintained or the Household applied for services for more than one Dwelling Unit and did not provide the required information.

C. Heating System Replacement Eligibility. A Household may be eligible for assistance to replace a Heating System if the Household meets the eligibility requirements for CHIP. The amount of assistance shall be determined by subtracting the sum of the contributions towards the Heating System replacement cost by the Household and any person who shares a legal ownership interest in the Dwelling Unit, but does not reside in the Dwelling Unit (“Non-occupying Co-owner”).

1. Contributions. The Household and Non-occupying Co-owner (if applicable) will be required to contribute toward the cost of replacing the Heating System if there are Countable Assets in excess of $5,000, or $50,000 if a member of the Household or the Non-occupying Co-owner is 60 years of age or older. Countable Assets include cash, funds on prepaid debit cards, money in a checking or savings account (health savings accounts, educational funds, and burial accounts are excluded), stocks or bonds, U.S. Treasury bills, money market funds and retirement accounts (provided there are no penalties for withdrawals). The amount of the contribution is determined for the Household and the Non-occupying Co-owner separately by subtracting either $5,000 or $50,000 (as applicable) from total Countable Assets and multiplying that number by the percentage of ownership. All contributions are subtracted from the total Heating System replacement cost to determine the CHIP benefit amount.

D. CHIP Uses.

CHIP allowable uses include cleaning, tuning and evaluating oil, gas or solid fuel systems, repairs determined to be necessary for proper operation by a licensed heating technician, measures to bring a Heating System in compliance with applicable laws and codes or to correct measures that pose an immediate health or safety threat.

CHIP may not be used as reimbursement or payment for costs incurred by the Primary Applicant, replacement of a Heating System that was previously replaced by CHIP unless the Heating System has reached its useful life as defined by:

https://www.hud.gov/sites/documents/EUL_FOR_CNA_E_TOOL.PDF, or for fuel switching.

E. CHIP Benefit Maximums

Single-Family Owner-Occupied Dwelling Units. There is a life-time maximum benefit of $10,000.00 per dwelling unit.

Single-Family Rental Units occupied by an Eligible Household. There is a life-time maximum benefit of $600.

Multi-Family Rental Units. The maximum benefit is the lesser of $600 times the number of Heating Systems that provide heat to Eligible Households or $2,400.

F. Subgrantee Responsibilities.

Subgrantees are responsible for performing final inspections on all CHIP services for heating replacement jobs. The inspections will evaluate compliance with all applicable codes, confirm the work performed was authorized and determine the combustion efficiency level of the Heating System where technically feasible.

Subgrantees are responsible for procuring all services, including materials, equipment and services from specialized trades, such as electricians, masons and oil burner repairman, and shall follow the procedures below:

Amount

Requirements

Notes

$5,000 or less

Solicit one price quote by phone, email, vendor website, catalog, or price list, or similar means.

Choose the lowest quote or bid while taking into consideration the Contractor’s performance record and other relevant factors.

Over $5,000

Perform a price survey by making every reasonable attempt to receive price quotations or bids from at least three (3) Contractors.

Choose the lowest quote or bid while taking into consideration the

Contractor’s performance record and other relevant factors.

Subgrantees are also responsible for procuring Contractors and shall follow the procedures below:

Prepare an Invitation to Bid or a Request for Proposal that identifies all requirements and factors to be considered including a due date for bids;

Mail, fax or email the Invitation to Bid or Request for Proposal to at least three

(3) contractors; and

c. Receive by mail, fax or email by the due date all bids and keep bids in a secure location to be reviewed and tabulated.

4. Sole Source Procurement. A Subgrantee may solicit a proposal from only one source if the following circumstances are met:

Emergency or Urgent Need. An emergency situation or other urgent need exists and only one known source can provide the required goods or services within

the time needed.

Uniqueness. The item or service is available from only one source, based on a reasonable, good faith review of the market for the type of item or service needed.

Inadequate Competitive Proposals. After evaluation of all proposals submitted in a competitive procurement, all proposals are determined to be inadequate.

Subgrantee shall submit a written statement justifying the sole source procurement for any procurement over $5,000 to MaineHousing prior to the installation of services.

5. Records. Copies of all procurement records, including sole source procurement documents, correspondence, factors considered and the basis for selection must be kept in the Subgrantee’s files.

HEAP Weatherization.

Weatherization measures must be installed in accordance with the Maine Weatherization Standards. When HEAP Weatherization is used in conjunction with U.S. Department of Energy (DOE) funds, 10 C.F.R. Part 440, will govern with the exception to variations listed and approved in the LIHEAP State Model Plan Weatherization Assistance Section.

All HEAP Weatherization services will be conducted by Subgrantees within their Service Area, unless otherwise authorized by MaineHousing, and will be subject to the availability of HEAP funds.

A. Eligibility.

Household Eligibility. A Household may be eligible for HEAP Weatherization if the Household is eligible for HEAP, has an eligible Application that was certified within the preceding twelve (12) months, and does not have a more recent Application that has been certified-denied.

Dwelling Unit Eligibility. Ownership will be verified for all Dwelling Units and Rental Units and additional documentation or written permission may be required for life estates and life leases or tenants.

A Dwelling Unit that has a life estate or life lease interest may be eligible if the document conferring the Primary Applicant rights of the life estate or life lease is recorded in the appropriate registry of deeds and states that the Primary Applicant is responsible for maintaining the Dwelling Unit or is silent as to who is responsible for maintenance.

A Dwelling Unit will not be eligible under HEAP Weatherization if the Dwelling Unit received weatherization services under HEAP Weatherization or another MaineHousing program within fifteen (15) years of the certification date, it has been designated for acquisition or clearance by a federal state or local program or order, it is in foreclosure, for sale, vacant, uninhabitable, it is in poor structural condition making HEAP Weatherization services impractical, ineffective or impossible, it has been damaged by fire, flood or an act of God and insurance will cover the damage, or there are discrepancies on the

Household’s Application.

A Dwelling Unit that was previously weatherized may be reopened if the reopening occurs within six (6) months of completion of the original weatherization service and reopening is required because the previous services are the proximate cause of an immediate threat to the health and safety of the occupants or the quality of the weatherization material or installation is deficient as determined by MaineHousing.

B. HEAP Weatherization Uses:

1. HEAP Weatherization allowable uses include: Weatherization needs assessments/audits; air sealing and insulation, storm windows, Heating System modifications/repairs/replacements, Heating System cleaning, tuning and evaluating, LED lighting, energy related roof repairs, major appliance repairs/replacements, including water heaters, up to two appliances, with one being a water heater, incidental repairs, health and safety measures, replacement windows and doors after all reasonable repair options are considered.

C. Subgrantee Responsibilities.

1. Subgrantees must conduct a public bid process to secure weatherization contractors at least annually as prescribed by MaineHousing.

Administration of the Programs.

A. MaineHousing’s Responsibilities.

MaineHousing will prepare and submit to the Secretary of the United States Department of Health and Human Services an annual State Plan for HEAP in conformity with the provisions of the HEAP Act after conducting a public hearing for the purpose of taking comments.

MaineHousing will maintain this Rule, the HEAP Guide and any other guidance and documents that relate to the administration of the Programs.

MaineHousing will contract with Subgrantees and other entities to administer the Programs and may, at its discretion, make payments to Eligible Households or Vendors or provide Supplemental Benefits to the extent available. MaineHousing will assign at least one Subgrantee to each Service Area to administer the Programs and will select Subgrantees annually based on applications received by June 1^st outlining the Subgrantee’s: experience in administering the Programs or similar programs; capacity; availability of other qualified entities within a Service Area; cost efficiency; ability to enhance accessibility to the Programs; schedule for taking Applications; and ability to perform outreach and serve homebound Primary Applicants.

MaineHousing will determine the annual allocation of HEAP funds to each Subgrantee, not including any amount allocated to MaineHousing to pay Benefits.

MaineHousing will conduct program and fiscal monitoring of Subgrantees and Vendors to ensure compliance with all rules, regulations and laws applicable to this Rule.

B. Subgrantee, Vendor and Contractor Responsibilities.

1. Subgrantees, Vendors and Contractors are responsible for the following:

Conflict of Interest. No employee, officer, board member, agent, consultant or other representative of Subgrantee, Vendor, or Contractor who exercises or has exercised any function or responsibility with respect to Programs' activities or who is in a position to participate in a decision-making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from Programs' activities or have an interest in any contract, subcontract or agreement regarding the Programs' activities, or the proceeds there under, which benefits him or her or any person with whom he or she has business or family ties. Subgrantees, Vendors, and Contractors shall notify MaineHousing of any potential conflict of interest.

Confidentiality. Subgrantees, Vendors, Contractors, and their employees and agents shall keep confidential Primary Applicant or Household information obtained in the administration of the Programs, including without limitation, an individual’s name, address and phone number, household income, assets or other financial information, and benefits received (“Confidential Information”) and shall safeguard and protect from disclosure at all times Confidential Information.

Prohibited Discrimination. Subgrantees, Vendors, Contractors, and their employees and agents are prohibited from discriminating against any Household applying for or receiving goods or services in accordance with this Rule.

2. Subgrantees responsibilities also include, but are not limited to, the following as further defined in the annual Subgrant Agreement between MaineHousing and Subgrantees and in accordance with the HEAP Act and this Rule:

Conduct outreach, accept and verify Applications, determine Household eligibility, pay Benefits, coordinate with MaineHousing on denials and requests for Informal Review and Fair Hearing, use MaineHousing’s database software and equipment, address emergencies, cost effectively administer and operate the Programs, prioritize Eligible Households where required, coordinate services between Programs, submit production schedules, work plans, budgets, monthly status reports, and billing information to MaineHousing, use forms provided by MaineHousing, make reasonable accommodations upon request for a Person with a Disability, follow procurement requirements as may be required by 45 C.F.R. §§ 75.327 – 75.335 and 45 C.F.R. §§ 75.316-753.23, and inform Primary Applicants of their rights to request an Informal Review and Fair Hearing;

Maintain comprehensive, accurate and separate documentation, payroll reports, financial statements, and other records in connection with its administration of the Programs including at a minimum, the amount and disposition of the Programs' funds received by the Subgrantee and the total cost necessary to administer the Programs and provide MaineHousing with copies of any such records as requested and maintain such records for a minimum of three (3) years from the end of the relevant contract period or a longer period as prescribed by MaineHousing. In cases of litigation, other claims, audits, or other disputes the Subgrantee will retain all relevant records for at least one (1) year after the final disposition thereof;

Provide an annual budget prior to each Program Year and within ninety (90) calendar days of the close of Subgrantee’s fiscal year furnish to MaineHousing

an annual financial statement prepared by an independent certified public accountant in accordance with 45 C.F.R. Part 75, Subpart F.

C. Administrative and Program Expenses. Subgrantees shall be permitted administrative and program expenses necessary to carry out their responsibilities under this Rule and the Programs. Such expenses will be allowed in a manner consistent with the provisions of the HEAP Act and must be reasonable in amount as determined by MaineHousing. Administrative expenses for the Program Year may be spent only between October 1 and the following September 30 of the applicable Program Year, unless otherwise authorized. Allowable administrative and program expenses for each of the Programs are listed below. Other expenses may be allowed if authorized by MaineHousing before the expenses are incurred.

Fuel Assistance and ECIP

Expense Category

Salary and fringe benefit costs for the actual time an individual performs intake, processing, or eligibility determination functions associated with an active Application

Program

Salary and fringe benefit costs for the actual time an individual participates in administering Fuel Assistance or ECIP and is not performing functions associated with an active Application

Program

Salary and fringe benefits and other related and reasonable costs for specific HEAP and ECIP training and professional development of individuals performing intake, application processing, eligibility determination, and administration of HEAP fuel assistance and ECIP

Program

Space costs/rent, telephone, copier/printing, office supplies, postage, transportation/travel, data processing/computer costs, equipment repairs and maintenance, equipment purchase/lease, and consultants/professional services associated with the above referenced activities.

Program

Indirect costs

Administrative

Salary and fringe benefits and other related and reasonable costs for specific HEAP and ECIP training and professional development for individuals whose salary and fringe benefits are budgeted directly to Administrative Costs or for whom salary and fringe are included in the agency’s Indirect Rate

Administrative

Salary and fringe costs, space costs, rent, telephone, copying, printing, office supplies, postage, transportation, travel, data processing, computer costs, equipment repairs and maintenance, equipment purchase or lease, consultant fees and professional services associated with the administration of HEAP not included in the agency’s Indirect Rate or allowable from program funding

Administrative

HEAP Weatherization, CHIP, and Heat Pump Program

Expense Category

Material/labor costs for Heating system repairs/replacements and measures installed as part of weatherization

Program

Either salary and fringe benefit costs for the actual time staff participates in administering HEAP Weatherization, CHIP, Heat Pump Program or a program management fee established by MaineHousing.

Program

Space costs/rent, telephone, copier/printing, office supplies, postage, transportation/travel, equipment purchase/lease, liability insurance, pollution occurrence insurance, and consultants/professional services.

Program

Indirect costs

Administrative

Energy Self Sufficiency Services

Expense Category

Salary and fringe benefit costs for staff providing direct services and the direct administrative costs associated with providing the services, such as the costs for supplies, equipment, travel, postage, utilities, rental and maintenance of office space

Program

Indirect costs

Administrative

1. Energy Self Sufficiency Activities. Subgrantees may submit annual proposals, for MaineHousing’s consideration, describing their planned activities and expenses associated with providing services to Primary Applicants pursuant to Energy Self Sufficiency of the HEAP Act. Administration of Energy Self Sufficiency Activities will be conditioned on the availability of HEAP funds.

D. Vendors.

Eligibility. In order to participate in the Programs Vendors must demonstrate the capacity and stability of their business and supply a credit report and business plan to MaineHousing’s satisfaction. MaineHousing reserves the right to exclude Vendors in certain situations, including but not limited to, bankruptcies or judgments, prior Program terminations, violations and defaults, and in situations where the Vendor has been in business for less than a year.

Enrollment. Upon approval of a Vendor, Vendors must enter into a Vendor

Agreement during the time period as prescribed by MaineHousing. Returning Vendors must reenroll each Program Year or as prescribed by MaineHousing contingent upon performance and compliance in previous Program Years.

Use of Benefits. Benefits may not:

Be sold, released, transferred or otherwise conveyed without written authorization from MaineHousing;

Be used to pay Incidental Costs Benefits;

Be used to deliver a different Home Energy product than the one authorized by

MaineHousing or

Be used to deliver Home Energy products to a Household that is moving, has a Heating System experiencing mechanical difficulties or has storage tanks that need replacement or do not meet code.

For electricity and natural gas, Vendors may apply Benefits to past due charges for Home Energy deliveries with the oldest charges being paid first.

Annual Consumption Report. As part of the Annual Consumption Report process, Vendors must review Eligible Household accounts and identify any remaining Benefits that were issued in or prior to the preceding Program Year. All such unused Benefits must be returned to MaineHousing no later than June 30.

Return of Payments. Upon receipt of a Benefit Return form Vendor shall return such Benefits to MaineHousing or Subgrantee within fifteen (15) business days of the date of the Benefit Return form. If any of the following events occur, Vendor shall within fifteen (15) business days of becoming aware, submit to MaineHousing a completed Benefit Return form and return any Benefits paid to Vendor:

Death of an individual who is a sole member of an Eligible Household;

Institutionalization of an individual who was the sole member of an Eligible

Household;

Vendor’s receipt of a written notice from an Eligible Household that it no longer desires to receive Home Energy deliveries from Vendor in future

Program Years;

An Eligible Household has not received deliveries of Home Energy for twelve

(12) consecutive months;

An Eligible Household has moved out of Vendor’s Service Area;

An Eligible Household has moved out of State;

Vendor has been paid an excessive Benefit on behalf of the Eligible Household.

For Benefits with a balance of less than $25, Vendors may aggregate remaining Benefits and return the balance to MaineHousing when the Annual Consumption Report is submitted.

All Benefit Return forms should be accompanied by documentation evidencing: the name and address of the Vendor, the name and address of the Eligible Household; the Eligible Household's account number; the Benefit amount being returned; a concise explanation for the return of funds; a detailed account history showing delivery activity and payment from May 1^st preceding the Program Year of the Benefits being returned; and any other documentation requested by MaineHousing.

E. Noncompliance.

MaineHousing shall have the right to terminate or suspend in whole or in part the Subgrantee Agreement in its sole discretion if it determines the Subgrantee has failed to comply with any provision of this Rule, the Subgrantee Agreement, the HEAP Guide, or the provisions of other applicable law. A written notice will be sent to Subgrantee and shall set forth as applicable, the reason for termination, the specific violations and any suspensions. For non-compliance not resulting in termination or suspension a written notice setting forth the specific violation and cure period will be provided to Subgrantee. In situations of malfeasance or misfeasance MaineHousing may bar a Subgrantee’s participation in the Programs.

MaineHousing shall have the right to terminate a Vendor for failure to comply with the terms of the Vendor Agreement, State law concerning consumer home heating rights as prescribed by the Office of the Maine Attorney General, documentation, audit/investigation requirements and the requirements of this Rule. In situations of malfeasance or misfeasance MaineHousing may bar a Vendor’s participation in the Programs and pursue any other remedies available under the law. MaineHousing may also choose to place the Vendor on a watch list and monitor Vendor’s performance.

Native American Tribal Organizations.

Native American Tribal Organizations means the Penobscot Indian Nation, the Passamaquoddy Indian Tribe and the Houlton Band of Maliseet Indians as defined in the Maine Indian Claims Settlement Act, 30 M.R.S. §6201 et seq., and the Mi’kmaq Nation as defined in the Micmac Settlement Act, 30 M.R.S. §7201 et seq.

• • • 1. Direct Allocation to Native American Tribal Organizations. Native American Tribal

Organizations may receive a direct allocation of HEAP funds from the Secretary of the United States Department of Health and Human Services pursuant to the HEAP Act. The amount of the direct allocation is determined by the percentage of Maine’s total annual LIHEAP award that MaineHousing indicates will be awarded to Maine’s Native American Tribal Organizations. In its determination MaineHousing will consider the number of Eligible Households during the previous Program Year that include Household Members who are members of the Native American Tribal Organization, when that information is available.

• • • 1. Agreements with Native American Tribal Organizations. When a Native American Tribal Organization receives a direct allocation of Fuel Assistance and ECIP, MaineHousing will enter into an agreement with the Native American Tribal Organization that, at a minimum, provides for the coordination of services and administration of the Fuel Assistance and ECIP by the Native American Tribal Organization and Subgrantees to prevent duplication of services.

Informal Review and Fair Hearing.

A. Informal Review. For any dispute the Primary Applicant must submit a written request for an Informal Review no later than:

Thirty (30) calendar days from the postmarked date of the denial notification or the benefit notification;

Ninety (90) calendar days from the Application Received Date, if the Application has not been approved or denied; or

Ninety (90) calendar days from the postmarked date of the request for refund of an Overpayment.

Written requests for Informal Review may be mailed to MaineHousing, 26 Edison Drive, Augusta, Maine 04330; or emailed to LIHEAPcompliance@mainehousing.org. The Informal Review will be conducted by a person other than the one who made or approved the decision under review. MaineHousing will review the file, conduct necessary research, and give the Primary Applicant an opportunity to present written or oral objections. In rendering a decision MaineHousing will evaluate the accuracy of the calculations, the level of documentation provided by the Primary Applicant, and the accuracy of the decision. MaineHousing will communicate the results of the research/review to the Primary Applicant. If the Primary Applicant does not agree with the results of the Informal Review the Primary Applicant may submit a written request for a Fair Hearing, but only in the following limited circumstances: the Primary Applicant’s claim for assistance was denied or not acted upon with reasonable promptness (meaning it was not certified or denied within the required time-frame outline in this Rule or as approved by waiver); the Primary Applicant disputes the criteria used to calculate the amount of their Benefit; or the Primary Applicant is required to refund an Overpayment.

B. Fair Hearing.

Pursuant to the HEAP Act, 42 U.S.C. §8624(b)(13), MaineHousing will provide an Primary Applicant an opportunity for a fair administrative hearing. Fair hearings shall be conducted in accordance with the Maine Administrative Procedures Act, Title 5, Chapter 375 by the Director of MaineHousing (or their designee) or such other contractor selected by MaineHousing. The parties may receive a transcript of the hearing upon payment of the reasonable cost for the production thereof.

Within thirty (30) calendar days of the hearing's conclusion the hearing officer will prepare a recommended hearing decision. Copies of the recommended decision will be provided to the Primary Applicant.

A final decision and order will be made by the Director of MaineHousing in writing within sixty (60) calendar days of receipt of the hearing officer's recommendation. In the event the Director of MaineHousing presides over a hearing, they shall render their decision and order within sixty (60) calendar days of the hearing's conclusion or sixty (60) calendar days of the recommended decision. The Director's decision and order shall include findings of fact sufficient to apprise the parties of its basis. A copy of the decision and order will be provided promptly to each party to the proceeding or their representative of record. Written notice of the party's right to appeal the decision and other relevant information will be provided to the parties at the time of the decision and order. The decision and order will be implemented by the Subgrantee no later than ten (10) calendar days after receipt if it is in the Primary Applicant’s favor and otherwise forty-five (45) calendar days unless stayed on appeal.

Errors and Program Abuse.

• • • 1. Reporting Errors and Program Abuse. Subgrantees are required to report any suspected or alleged Errors or Program Abuse. Any individual may also report suspected Errors or Program Abuse by telephone 1800-452-4668 or (207) 626-4600, in writing to MaineHousing, Attn: HEAP Errors and Program Abuse, 26 Edison Drive, Augusta, ME 04330 or by email at LIHEAPcompliance@mainehousing.org. Any report should include at minimum, the name and address of the person being reported and any details of the suspected Errors and Program Abuse.
• • • 1. Investigation. MaineHousing will investigate all reported and alleged Errors and Program Abuse and may investigate the previous three (3) Program Years and may place Benefits on hold during the investigation.

Primary Applicants will be notified and given the opportunity to respond and provide additional documentation. MaineHousing will make a determination on the appropriate action, based on the response. If an Primary Applicant fails to respond or fails to provide the documentation requested, the Primary Applicant may be subject to denial, an Overpayment or other actions available under the law. If Errors and Program Abuse are confirmed or Primary Applicant fails to respond, Primary Applicant will receive a written notification outlining the facts of the decision, the reason for the decision, the Overpayment due (if applicable), and any avenue available to request an Informal Review or Fair Hearing. If MaineHousing determines the Errors were at no fault of the Primary Applicant, MaineHousing will not require an Overpayment from the Primary Applicant.

• • • 1. Overpayments. If a Primary Applicant is required to pay an Overpayment (including any Overpayments due from the previous three (3) Program Years) the Primary Applicant may pay the full amount of the Overpayment, enter into an agreeable payment arrangement and/or be subject to recoupment by MaineHousing.

Waivers of the Rule and HEAP Guide.

MaineHousing will only grant waivers of the Rule and/or HEAP Guide in very limited circumstances. The below is a list of the only provisions that will be considered for a waiver. Consideration does not mean the waiver will be granted. Any grant of a waiver is at MaineHousing’s discretion.

A. Subgrantee must certify or deny an Application within thirty (30) business days from the Application Received Date.

1. MaineHousing will consider providing a waiver up to forty-five (45) business days.

B. Program benefits will only be available for reissue or transfer during the Program Year of issue up until March 31^st of the Program Year immediately following.

1. MaineHousing will consider extending the deadline to April 15^th for good cause.

C. ECIP will be administered pursuant to HEAP between November 1 and April 30.

1. Depending on the availability of funds and other factors MaineHousing may extend the April 30^th ECIP end date.

D. A denial for missing information will be rescinded if the required information is received by the Subgrantee within (15) fifteen business days from the date of written notification of denial.

1. MaineHousing will consider extending the deadline to twenty-five (25) business days.

E. CHIP may not be used as reimbursement or payment for costs incurred by the Primary Applicant, replacement of a Heating System that was previously replaced by CHIP unless the Heating System has reached its useful life as defined by:

https://www.hud.gov/sites/documents/EUL_FOR_CNA_E_TOOL.PDF, or for fuel switching.

1. In the case of replacing a Heating System before the end of its useful life or fuel switching, in limited circumstances, MaineHousing may consider a waiver on a case-by-case basis review.

F. HEAP Weatherization does not allow fuel switching when replacing a Heating System.

1. MaineHousing may consider a waiver on a case-by-case basis review.

History

• STATUTORY AUTHORITY: 30-A M.R.S. §§4722(1)(W), 4741(1) and (15), and 4991 et seq.; 42 U.S.C. §§8621, et seq.
• FISCAL IMPACT NOTE: The replacement HEAP Rule will not impose any cost on municipalities or counties for implementation or compliance.
• EFFECTIVE DATE: June 29, 2026 – filing 2026-134

Chapter 25 Weatherization Assistance Program Rule

Code Me. R. 99-346 Ch. 25 Weatherization Assistance Program Rule {#sec-99-346-ch.-25 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 25}

Summary: The Maine State Housing Authority (“MaineHousing”) administers the federal Weatherization Assistance Program (“WAP”) for the State of Maine. WAP provides weatherization assistance to low-income households. This rule governs MaineHousing’s administration of WAP.

Definitions.

As used in this rule, the following terms shall have the identified meaning, unless the context otherwise requires:

1. "Administration" means the management and planning activities respecting WAP that are reimbursable under Section 2 of this Rule;
2. "Act" means the Maine Housing Authorities Act, 30-A M.R.S.A. §4701 et seq ., as it may be amended from time to time;
3. "APA" means the Maine Administrative Procedures Act, Title 5, chapter 375 of the Maine Revised Statutes;
4. “Appellant” means an individual or entity requesting a Fair Hearing under this Rule;
5. "Catchment Area" means the geographic area within which the Subgrantee administers and operates WAP;
6. "CHIP" means the Central Heating Improvement Program component of HEAP;
7. "Completion Date" means the day that the Subgrantee allocates a source of WAP funds to pay for Weatherization Materials and services respecting a Dwelling Unit and deems the unit complete for billing purposes;
8. “DOE” means the United States Department of Energy;
9. "Dwelling Unit” shall have the same meaning as set forth in 10 C.F.R. §440.3, as may be amended from time to time;
10. "ECIP" means the Energy Crisis Intervention Program component of HEAP;
11. "Elderly" shall have the same meaning as set forth in 42 U.S.C. §6962(3) and 10 C.F.R. §440.3, both as may be amended from time to time;
12. "Eligible Household" means a household which qualifies for services pursuant to this rule;
13. "Emergency" means an unexpected circumstance which poses an immediate threat to the health or safety of one or more members of an Eligible Household;
14. "Extenuating Circumstances" means substantial hardship respecting the Subgrantee's compliance with this rule or other significant program requirements;
15. “Fair Hearing” means a hearing and opportunity to be heard called for by the Weatherization Act;
16. “Fair Hearing Officer” means a hearing officer contracted for by MaineHousing to conduct Fair Hearings under this Rule;
17. "HEAP" means the Home Energy Assistance Program as administered and operated by MaineHousing;
18. “Household Income” means gross income of a household earned and/or received before taxes during applicable tax year(s) for purposes of determining whether the household is an Eligible Household and includes the following: 1. Money, wages and salaries before any deductions; 2. Net receipts from non-farm or farm self-employment (receipts from a person's own business or from an owned or rented farm after deductions for business or farm expenses); 3. Regular payments from social security, railroad retirement, unemployment compensation, strike benefits from union funds, worker's compensation, veteran's payments, training stipends, alimony, and military family allotments; 4. Private pensions, government employee pensions (including military retirement pay), and regular insurance or annuity payments; 5. Dividends and/or interest; 6. Net rental income and net royalties; 7. Periodic receipts from estates or trusts; and 8. Net gambling or lottery winnings.

Household Income does not include the following:

Capital gains;

Any assets drawn down as withdrawals from a bank;

Money received from the sale of a property, house, or car;

One-time payments from a welfare agency to a family or person who is in temporary financial difficulty;

Tax refunds;

Gifts, loans, or lump-sum inheritances;

College scholarships;

One-time insurance payments, or compensation for injury;

Non-cash benefits, such as the employer-paid or union-paid portion of health insurance;

Employee fringe benefits, food or housing received in lieu of wages;

The value of food and fuel produced and consumed on farms;

The imputed value of rent from owner-occupied non-farm or farm housing;

Depreciation for farm or business assets;

Federal non-cash benefit programs such as Medicare, Medicaid, Food Stamps, school lunches, and housing assistance;

Combat zone pay to the military;

Child support;

Reverse mortgages; and

Payments for care of foster children;

1. "Incidental Repairs" shall have the same meaning as set forth in 10 C.F.R. §440.3, as may be amended from time to time;
2. "Low-cost/no-cost Weatherization Activities" mean those activities authorized pursuant to 10 C.F.R. §440.20, as may be amended from time to time;
3. "Rework" means additional WAP activities necessary to correct significant deficiencies respecting the installation or quality of Weatherization Materials as determined by MaineHousing respecting a specific Dwelling Unit;
4. "Self-help Weatherization" means the installation of a substantial amount of Weatherization Materials by a member of the Eligible Household, by volunteer labor designated by the Eligible Household, by local community groups, or by any other non-Weatherization funded labor procured by the Eligible Household;
5. "State Plan" means that document complying with the requirements of 10 C.F.R. §440.14, as may be amended from time to time, and Section 9 of this rule;
6. "Subgrantee" shall have the same meaning as set forth in 10 C.F.R. §440.3, as may be amended from time to time;
7. "Weatherization Act" means the federal law and regulations that govern WAP including without limitation, 42 U.S.C. §6861 et seq ., 10 C.F.R. §440.1 et seq ., 2 C.F.R. Part 200, and formal guidance from DOE, all as may be amended from time to time;

Z. "Weatherization Materials" shall have the same meaning as set forth in 10 C.F.R. §440.3 as may be amended from time to time.

Administration

1. Administrative Costs. Expenditures for Administration shall be governed by 10 C.F.R. §440.18(e), as may be amended from time to time. Surplus administrative funds will be reprogrammed into direct WAP services in the next fiscal year as allowed by DOE.

Allowable administrative costs are categorized in 2 C.F.R. Part 200. Allowable costs include, without limitation:

All direct costs of Administration including but not limited to salaries, fringe benefits, travel and telephone costs, office equipment and supplies which are exclusively used in the Administration of WAP;

Any other direct administrative costs which have been allocated as WAP’s share of total agency Administration under a current cost allocation plan; and

The share of subgrant funds authorized by MaineHousing which corresponds to the current indirect cost rate for apportioning indirect administrative costs out of the Subgrantee's cost pool.

In the case of Subgrantee cost allocation plans and indirect cost rates, MaineHousing reserves the right to review pertinent documentation for such plans or rates before authorizing the expenditure of subgrant funds on this basis.

1. Responsibilities of MaineHousing. MaineHousing's responsibilities under this rule shall include, but shall not be limited to, the following: 1. Select proposed Subgrantees to receive WAP subgrants; 2. Ensure effective coordination of WAP with HEAP, CHIP and ECIP operated by MaineHousing, other human services programs, and other weatherization and conservation efforts; 3. Employ sufficient professional staff to monitor compliance and provide appropriate training and technical assistance to Subgrantees and to perform regular periodic Subgrantee monitoring; 4. Train and maintain adequate staff to administer WAP; 5. Establish requirements regarding the expenditure of funds allocated to Subgrantees and define the Subgrantee Catchment Area; and 6. Select Subgrantees in a manner consistent with the requirements of 10 C.F.R. §440.15, as may be amended from time to time. Nothing in this rule shall prevent MaineHousing from selecting Subgrantees by a request for proposals or by another form of competitive bidding.
2. Allocation of WAP Funds. WAP funds shall be allocated to Subgrantees in the manner provided for in this paragraph. 1. MaineHousing shall identify criteria indicating the need for WAP services in each Catchment Area. These criteria may include the number of applicants on a current waiting list for WAP services, number of Elderly or persons with disabilities in the Catchment Area, per capita income, percentage of income-assisted households, percentage of households in subsidized housing, heating degree days, population density and the number of HEAP assisted households. 2. MaineHousing reserves the right to reallocate funds from one Subgrantee to another in the event of an Emergency, Extenuating Circumstances, special needs, program failure or completion in any Catchment Area, or for demonstration and pilot projects.
3. Subgrant Suspension and Termination. MaineHousing may temporarily suspend or terminate a subgrant with any Subgrantee at any time for cause pursuant to the procedures set forth below. MaineHousing may take immediate steps to suspend a subgrant with a Subgrantee in the event of Subgrantee's failure to comply substantially with the provisions of the Weatherization Act. 1. Any suspension or termination must be preceded by a notice to the Subgrantee stating the grounds for suspension or termination and requiring the Subgrantee to show cause why the subgrant should not be terminated. 2. The Subgrantee shall have the opportunity to show cause why the subgrant should not be terminated by requesting, within 14 calendar days of receipt of the notice, an informal conference to be held within 14 calendar days of receipt of request. 3. The informal conference will be conducted by a person other than the one who made or approved the decision under review or a subordinate of this person. MaineHousing will review the file, conduct necessary research, and give the Subgrantee an opportunity to present written or oral objections to the decision under review. In rendering a decision MaineHousing will evaluate the details surrounding the deficiency or failure to comply with the rule, Weatherization Act, State Plan, or subgrant agreement and objections presented by the Subgrantee. MaineHousing will communicate the results of the review to the Subgrantee. 4. Action against a Subgrantee for failure to comply with the provisions of the Weatherization Act or this rule shall disqualify the Subgrantee from participating in the program until the Subgrantee again complies with the Weatherization Act, the State Plan, this rule, and the subgrant agreement.

Responsibilities of Subgrantees. Subgrantees shall be responsible for the operational management and provision of WAP services as provided for in this section.

1. Income eligibility of all applications must be determined and certified by the Subgrantee HEAP office within 30 calendar days of the date of application. In the event an application is received by a Subgrantee for a household residing in a Catchment Area other than the Subgrantee’s designated Catchment Area, the Subgrantee shall notify the applicant of the error and forward the application and supporting documentation to the applicable Subgrantee.
2. Subgrantees must recertify household eligibility in the case of any household whose initial application was completed and dated more than twelve months prior to the proposed WAP activity.
3. Subgrantees must provide allowable WAP services in accordance with this rule and the Weatherization Act. No Subgrantee employee, agent or contractor shall perform work, which under state law or local ordinances or codes, must be performed by a licensed or certified technician or repair person unless that person possesses such qualifications.
4. Subgrantees must procure Weatherization Materials, supplies, and services in accordance with the Weatherization Act.
5. Subgrantees must provide written notification to households denied WAP benefits of the grounds for denial and of the right to appeal as outlined below. 1. Any application denial or Dwelling Unit failure to be approved for WAP services shall be subject to a Fair Hearing pursuant to Section 11 below. 2. An application neither denied nor approved within a reasonable time is subject to an informal review unless the delay was caused by the household’s lack of cooperation in providing necessary and reasonable evidence. 3. An informal review will be conducted by a person other than the one who made or approved the decision under review or a subordinate of this person. MaineHousing will review the file, conduct necessary research, and give the applicant an opportunity to present written or oral objections to the decision under review. In rendering a decision MaineHousing will evaluate the accuracy of the calculations, the level of documentation provided by the applicant, and the reason for any delay. The agency conducting the informal review will communicate the results of the review to the applicant. This decision will represent final agency action in regards to that determination. 4. Subgrantees must also participate as necessary in any scheduled Fair Hearing. The Subgrantee agrees to disclose to the applicant on request, all information pertaining to a decision on eligibility for assistance.
6. Subgrantees must submit reimbursement requests and reports as required by MaineHousing.
7. Subgrantees must inform the public of the availability of WAP services and other available energy services by coordinating with HEAP outreach activities.
8. Subgrantees must maintain fiscal and program records in accordance with the requirements of 2 C.F.R. Part 200 for no less than three years.
9. Subgrantees must participate in an annual audit of WAP by MaineHousing or an auditing firm approved by MaineHousing.
10. Subgrantees must not discriminate against program participants or applicants for WAP benefits on the basis of race, color, national origin, sexual orientation, disability, age, sex, or religion.
11. Subgrantees must provide service to Eligible Households as set forth in Section 5 of this rule and the State Plan.
12. Subgrantee will not report a Dwelling Unit to MaineHousing as completed until the Subgrantee has performed a final inspection and certified that applicable work has been completed in a workmanlike manner.

Eligibility Determination

1. Eligibility for WAP shall be as provided for in the Weatherization Act.
2. Work on an eligible Dwelling Unit previously weatherized under WAP may be reopened if: 1. The reopening takes place within 6 months of completion of the original WAP service; and 2. The reopening is required because the previous service is the proximate cause of an immediate threat to the health and/or safety of the unit or its occupants; or the quality of Weatherization Materials or its installation is deemed deficient by MaineHousing.
3. Reworks 1. MaineHousing may order a Rework if it determines that the overall quality of work is poor, installed Weatherization Materials are inappropriate for the Dwelling Unit, or Weatherization Materials billed to MaineHousing have not been installed. 2. The Rework shall be completed within 30 days of the Subgrantee's receipt of a form issued by MaineHousing ordering the completion of the Rework, unless otherwise specified by MaineHousing in writing. 3. A Rework form shall be submitted to MaineHousing with a billing summary sheet.

Priorities for WAP Services

MaineHousing will base its priority ranking for WAP services on the priority categories set forth in the Weatherization Act and as further defined in the State Plan.

Permissible Weatherization Expenditures

1. Materials Expenditures 1. The cost of any Weatherization Materials which do not conform to applicable product standards will not be allowable or reimbursable by MaineHousing. 2. The cost of window and door replacements will be allowed when justified by a savings to investment ratio of at least one. 3. Priorities for the installation of Weatherization Materials. 1. The Subgrantee shall complete an on-site inspection of each Dwelling Unit in order to identify which installed Weatherization Materials would be the most cost effective as defined in the Weatherization Act. 2. The method used to address the particular needs of a Dwelling Unit shall be as set forth in the Weatherization Act and the State Plan. 4. Incidental Repairs shall be allowed to the extent permitted under the Weatherization Act and shall include, without limitation: 1. Lumber and other essential materials used to frame or repair windows, doors, walls or floors. 2. Sealants, primers and other protective materials. 3. Supplies such as nails, screws, staples and glue. 4. Shingles, clapboards, sheathing and other essential roofing materials.
2. Low cost/no-cost WAP Activities are allowable to the extent permitted under the Weatherization Act.

Procurement and Property Management

Subgrantee's responsibilities respecting the procurement and management of property, materials and services purchased with funds made available through WAP shall be as set forth in the Weatherization Act.

Monitoring and Technical Assistance

1. Program Monitoring. MaineHousing will provide technical assistance and monitor Subgrantee's compliance with the Weatherization Act, this rule, the State Plan, and each subgrant agreement.
2. Findings of Subgrantee's Failure to Comply. MaineHousing will deliver a notice of deficiency to a Subgrantee within 10 calendar days of MaineHousing's determination that the Subgrantee failed to comply with the Weatherization Act, the rule, the State Plan, or any subgrant agreement. The notice will identify the specific deficiency and will request that the deficiency be corrected within a reasonable amount of time as determined by MaineHousing. If the deficiency is not satisfactorily resolved within such period of time, MaineHousing may withhold that Subgrantee's WAP funding until compliance is again achieved or proceed with suspension or termination under Section 2D of this rule.
3. Subgrantees should refer to the WAP program guidance to determine how to perform and execute a particular responsibility or function. The program guidance is a resource and guide for the administration of WAP. It also serves as a manual designed to assist Subgrantees to understand the procedures for operating the WAP. This rule shall control in the event of any inconsistency between the program guide and the rule.

State Plan

MaineHousing will prepare and submit an annual State Plan for WAP to Efficiency Maine Trust in accordance with 35-A M.R.S.A. §10104(8) and to the Secretary of the United States Department of Energy in accordance with the Weatherization Act.

MaineHousing will notice a public hearing for the purpose of taking comments on the State Plan and will also prepare a transcript of the hearing.

Confidentiality of Records

1. No Subgrantee shall release or make available for public inspection, the name, address or phone number of any applicant for WAP services, their Household Income, assets, value of services received, or descriptions or photographs of their Dwelling Unit. Such information shall be kept confidential and shall not be released to any person or agency not directly involved in the Administration or auditing of WAP, except when: 1. The applicant gives written consent to the release; 2. The Subgrantee or other agency directly involved in the Administration of WAP requires this information for audit, management, evaluation or record keeping purposes; or 3. Disclosure is required under applicable law.
2. All WAP services subcontracts shall contain a provision setting forth confidentiality requirements.

Fair Hearings

1. MaineHousing shall provide for a Fair Hearing in accordance with the APA whenever: 1. an application for WAP is denied; 2. an application is certified as income eligible but the Dwelling Unit is not approved for WAP services; or 3. a Fair Hearing is requested by a Person facing Debarment as provided in Section 12 below.
2. The Appellant requesting a Fair Hearing must submit to MaineHousing a written request for a Fair Hearing within the respective time period called for in the applicable section of this rule. Any applicant requesting a Fair Hearing must submit the written request no later than 30 calendar days from the postmarked date of a notice of denial or Debarment from the Subgrantee.
3. Fair Hearings shall meet the following standards: 1. Fair Hearings shall be conducted by a Fair Hearing Officer. 2. The Appellant will be sent a hearing notice providing an explanation of MaineHousing’s Fair Hearing procedures, the pre-hearing right to discovery and the date, time and location of the Fair Hearing. 3. MaineHousing will provide the Appellant with any exhibit documentation to be presented free of charge no later than 5 business days prior to the scheduled Fair Hearing. If the Appellant wishes to obtain copies of additional documentation they will be allowed to copy any documents related to the hearing at a cost of $.10 per page. MaineHousing will entertain requests for waivers of the fees in the case of deminimus numbers of copies or family hardship.

MaineHousing must be given an opportunity to examine, at MaineHousing offices, before the hearing, any Appellant documents that are directly relevant to the hearing. Whenever an Appellant requests a Fair Hearing, MaineHousing will automatically mail a letter to the Appellant requesting a copy of any Appellant documents that the Appellant wishes to present or utilize at the hearing. The Appellant must make the documents available no later than 5 business days prior to the scheduled hearing date. The Appellant can satisfy this requirement by providing the documents via mail or in electronic form within the time constraints outlined above in order to allow MaineHousing the opportunity to prepare for the hearing. Failure to comply with this obligation may result in the Fair Hearing Officer not allowing the documents into evidence.

4. The Appellant may be represented by a lawyer or other representative at the Fair Hearing at their own expense.

The Fair Hearings will be conducted in accordance with the APA. The Fair Hearing officer is responsible to manage the order of business and to ensure that Fair Hearings are conducted in a professional and businesslike manner. Attendees are expected to comply with all hearing procedures established by the hearing officer and guidelines for conduct. Any person engaging in behavior that interferes with the orderly conduct of the hearing may be barred in whole or part from participation by the hearing officer.

Any evidence to be considered by the Fair Hearing Officer must be presented at the time of the Fair Hearing. Evidence may be included without regard to the rules of evidence applicable to judicial proceedings. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. If either MaineHousing or the Appellant fails to comply with the discovery requirements described above, the Fair Hearing Officer will refuse to admit such evidence. Other than the failure of a party to comply with discovery, the Fair Hearing Officer has the authority to overrule any objections to evidence.

The Fair Hearing Officer must issue a written decision, stating briefly the reasons for the decision and shall include findings of fact sufficient to apprise the parties of its basis. Factual determinations must be based on a preponderance of evidence presented at the hearing. A copy of the hearing decision must be furnished promptly to the Appellant.

A final decision and order will be made by the Director of MaineHousing in writing within 30 days of receipt of the Fair Hearing Officer’s recommendation. The Director's decision and order shall include findings of fact sufficient to apprise the parties of its basis. A copy of the decision and order will be provided promptly to each party to the proceeding or their representative of record. Written notice of the party's right to appeal the decision and other relevant information will be provided to the parties at the time of the decision and order.

Debarment

For purposes of this section and Section 11 only, the following terms shall have the following meaning:

A. "Person" shall mean any individual, corporation, partnership or other business entity, and shall include affiliates, associates and subsidiaries of any such entity. Person shall also include directors and officers who are closely connected to or associated with such an entity so as to control it or have the power to control it in any business dealings.

"Debarment" shall mean disqualification from bidding on or sub-contracting for any project administered by the MaineHousing.

"Bidding Crime" shall mean any act prohibited by state or federal law committed in any jurisdiction involving fraud, conspiracy, collusion, perjury or material misrepresentation with respect to bidding on any public or private contract, and shall include violations of state anti-trust laws, federal anti-trust laws, the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1961, et seq., and the Mail Fraud Act, 18 U.S.C. § 1341, et seq .

MaineHousing shall have the authority to Debar any Person for the following reasons for such period of time as it deems appropriate.

• 1. Conviction of a Bidding Crime resulting from either a jury or bench trial; any plea of guilty or nolo contendere to a charge of a bidding crime; or any admission by any Person of a Bidding Crime; or any testimony under oath by an unindicted co-conspirator indicating a Person's involvement in a Bidding Crime. 2. Conviction of any offense indicating a lack of moral or ethical business integrity as may reasonably be perceived to relate to or reflect upon the business practices of the Person. 3. Debarment by any other State or Federal agency for substantially any of the reasons listed in this Section. 4. Making false, deceptive, or fraudulent statements on any documents submitted to MaineHousing. 5. Any other cause affecting a Person's responsibility as a contractor of a serious and compelling nature.

Notification and Right to Hearing

1. Any Person considered for Debarment shall be sent written notice by certified mail and allowed the opportunity for a Fair Hearing to determine whether Debarment is appropriate. The notice shall state that Debarment is being considered, the reasons underlying the consideration of Debarment and that the Person under consideration shall be afforded an opportunity for a hearing on a specified date.

2. Hearings shall be conducted in accordance with Section 11.

Additional Provisions

1. Any provision of applicable Federal or Maine law including, without limitation, the Act, and the Weatherization Act shall take precedence over this rule in the event of any inconsistency.
2. This rule does not preclude such additional or alternative requirements as may be necessary to comply with the Act and the Weatherization Act.
3. This rule establishes a pool of eligible applicants but does not preclude additional reasonable criteria and does not confer any automatic right or entitlement on any person or entity eligible hereunder.
4. Waivers. Upon determination for good cause, the Director of MaineHousing, or the Director’s designee, may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing, and shall be supported by documentation of the pertinent facts and grounds for the waiver.
5. The Director of MaineHousing, individually or by exercise of the delegation powers contained in the Act, shall make all decisions and take all action necessary to implement this rule. Such action of the Director shall constitute final agency action.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §§4722(1)(W) and 4741(15)
• EFFECTIVE DATE: March 24, 1993
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 8, 1996
• REPEALED AND REPLACED: April 3, 2016 – filing 2016-057
• REPEALED AND REPLACED: January 23, 2019 – filing 2019-016
• REPEALED AND REPLACED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 27 Transfers of Ownership Interests

Code Me. R. 99-346 Ch. 27 Transfers of Ownership Interests {#sec-99-346-ch.-27 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 27}

Summary: This rule sets forth the requirements and procedures for obtaining the consent of MaineHousing to changes of ownership interests in multifamily and supportive housing projects that have funding or an allocation of tax credits from MaineHousing. The rule applies to the transfer of a project to a new owner along with the assumption by the new owner of the existing MaineHousing obligations. The rule also applies to the transfer of a direct or indirect ownership interest in a business entity that continues to own the project. This rule does not address criteria for modifying the term or amount of any MaineHousing obligation in connection with a proposed change of ownership interest.

Definitions. The following terms have the following meanings in this rule:

1. “Additional Circumstances” means any one or more of the following in connection with the Transfer of an Ownership Interest: (i) a request for additional funding or tax credit allocation from MaineHousing or for the modification, assumption or refinancing by MaineHousing of existing MaineHousing obligations; (ii) the existence of HUD project-based rental assistance for the Project; (iii) management deficiencies in the Project; (iv) a Project that is financially unstable, on MaineHousing’s watch list or in default; or (v) increased risks to a Project as assessed by MaineHousing.
2. “Affiliate” means, with respect to any entity: (i) another entity which has a Controlling Interest in the entity; (ii) another entity in which the entity has a Controlling Interest; or (iii) another entity that is subject to a common Controlling Interest with the entity.
3. “Application” means the form of application required by MaineHousing and any other information required or considered by MaineHousing in connection with the Transfer of an Ownership Interest in a Project.
4. “Code” means the Internal Revenue Code of 1986, as amended.
5. “Controlling Interest” means an Ownership Interest, contractual right, or other interest with respect to an entity which confers upon its holder the authority or right, directly or indirectly, to manage or otherwise direct any material part of all of the business or financial affairs and polices of the entity and/or any material part of or all of the day-to-day or long-term operation of the entity’s business or assets.
6. “HUD” means the United States Department of Housing and Urban Development.
7. “MaineHousing” means Maine State Housing Authority.
8. “Owner” means a person or entity having an Ownership Interest in a Project.
9. “Ownership Interest” means any right or indicia of ownership, possession or title of any kind or nature in a Project or Owner, including without limitation: 1. a fee simple interest; 2. a leasehold or sub-leasehold interest; 3. a general partner interest or a limited partner interest in a limited partnership; 4. the partner interest of a partner in a general partnership; 5. the member or manager interest in a limited liability company; 6. the interest of a shareholder in a for-profit corporation; 7. a voting member or director in a non-profit corporation; 8. a beneficial interest in a trust; or 9. a Subsidiary Interest, specifically excluding an upper-tier limited partner or non-managing member interest of an investor in a tax credit fund that has a limited partner or non-managing member interest in the Owner of a Tax Credit Project;
10. “Project” means a multifamily or supportive housing project that has funding or an allocation of tax credits, or a commitment or reservation thereof, from MaineHousing at the time of the request for MaineHousing consent to the Transfer.
11. “Qualified Rural Development Preservation Project” has the same meaning as set forth in Chapter 35 of MaineHousing’s rules, the State Low Income Housing Tax Credit Rule .
12. “Sponsor” means the entity that is the designated developer of a Tax Credit Project or has a Controlling Interest in the general partner of a limited partnership or the manager or managing member of a limited liability company that owns a Tax Credit Project.
13. “Subsidiary Interest” means the direct or indirect interest of any person or entity in an entity that has an Ownership Interest as determined by MaineHousing.
14. “Tax Credit Investor Transfer” means a Transfer of the Ownership Interest of a limited partner of a limited partnership or a non-managing member of a limited liability company that owns a Tax Credit Project.
15. “Tax Credit Project” means a Project for which MaineHousing allocated federal low-income housing tax credits pursuant to Section 42 of the Code or State of Maine affordable housing tax credits pursuant to 36 M.R.S. §5219-WW and 30-A M.R.S. §4722(1)(GG).
16. “Transfer” means a change, whether voluntary or involuntary, of all or part of an Ownership Interest in a Project regardless of the type or nature of the change or the means used to accomplish it, including but not limited to a change made by sale, mortgage, lease (except residential tenant leases in the ordinary course of business of operating a Project as a residential rental project), sub-lease, assignment, bond or contract for deed, land installment contract, like-kind (1031) exchange, merger, conversion, dissolution, substitution of partners or members, consolidation, submission to a condominium or land trust or similar construct, change of control (other than incremental change through occasional individual vacancies due to resignations or expirations of terms in the ordinary course of voting members or directors of corporations), gift, grant, death, creation of an estate or inheritance resulting from the death of an Owner, or operation of law.

Background

MaineHousing provides funding and/or tax credits for affordable multifamily and supportive housing projects through a number of multifamily and supportive housing programs.

MaineHousing documents evidencing and securing this funding or tax credits typically prohibit the assumption of these obligations in the Transfer of an Ownership Interest without MaineHousing’s prior written consent.

MaineHousing will consider a request for consent to a Transfer as set forth in this rule and the associated procedures established by MaineHousing. MaineHousing may consent to the Transfer request, with or without conditions or restrictions, or may withhold its consent to the Transfer, except that MaineHousing’s consent will not be unreasonably withheld.

MaineHousing’s consent to a Transfer does not automatically constitute MaineHousing’s consent to an assignment or assumption of any funding or tax credits. MaineHousing may require payment or satisfaction of any funding, recapture or other obligation in connection with a Transfer.

Application for Ownership Transfer

1. (1) MaineHousing’s written consent to a Transfer of an Ownership Interest is required prior to the Transfer.

Owners requesting MaineHousing’s consent to a Transfer will be required to submit an Application. The form and content of the Application will be determined by MaineHousing and may differ depending on the type of Ownership Interest or Transfer involved or whether the Transfer involves any Additional Circumstances. MaineHousing may at any time require additional information from the Owner, any other party to the Transfer, or any third party, that is reasonable or necessary to fully evaluate the request for MaineHousing’s consent to the Transfer.

The process for obtaining MaineHousing consent is simplified for the Transfers described in subsection (a) below.

The following Transfers, provided no Additional Circumstances exist as determined by MaineHousing, must comply with the requirements of subsection (b) below:

Transfer of the Ownership Interest of a general partner of a limited partnership to its Affiliate;

Transfer of the Ownership Interest of a limited partner of a limited partnership to its Affiliate;

Transfer of the Ownership Interest of a manager or managing member of a limited liability company to its Affiliate;

Transfer of the Ownership Interest of a non-managing member of a limited liability company to its Affiliate;

for a Tax Credit Investor Transfer, Transfer of the Ownership Interest of a limited partner of a limited partnership to the Sponsor of the Project owned by the limited partnership or the Sponsor’s Affiliate;

for a Tax Credit Investor Transfer, Transfer of the Ownership Interest of a non-managing member of a limited liability company to the Sponsor of the Project owned by the limited liability company or the Sponsor’s Affiliate;

Transfer of an Ownership Interest in a Qualified Rural Development Preservation Project;

Transfer of less than a Controlling Interest in an Owner, as determined by MaineHousing, with the exception of a Tax Credit Investor Transfer and, a Transfer of the Ownership Interest of any partner, member, or manager of a limited partnership or limited liability company that owns a Tax Credit Project; or

any other Transfers expressly allowed in writing by MaineHousing.

Transfers with Additional Circumstances, as determined by MaineHousing, including the above Transfers without limitation, are not eligible for the simplified process set forth in subsection (b) below.

The following are required for MaineHousing to consent to the Transfers described in subsection (a) above:

Written notice of the proposed Transfer and request for MaineHousing’s consent, which must be submitted by all of the general partners for a Transfer of Ownership Interest of any partner in a limited partnership or all of the managers or managing members for a Transfer of Ownership Interest of any member or manager of a limited liability company, including without limitation, any Transfer in connection with a Tax Credit Investor Transfer;

a written description of the proposed Transfer, including the Ownership Interest to be transferred, the transferor(s) of the Ownership Interest, the transferee(s) of the Ownership Interest, any consideration for the Transfer, any transfer taxes or other amounts due in connection with the Transfer, source(s) of funding to pay any such consideration and other amounts due, and any conditions of the Transfer;

all instruments and documents evidencing the Transfer, including without limitation, any assignment and assumption of the Ownership Interest and any amendments to the organizational documents of the entity that owns the Project in which the Ownership Interest is being transferred, all of which instruments and documents must be on terms and conditions acceptable to MaineHousing;

written consent of any lender, regulatory agency, or other person or entity that is required in connection with the Transfer; and

any other information or requirements that are reasonably related to the Transfer.

MaineHousing will consent to the Transfer of an Ownership Interest in a Qualified Rural Development Preservation Project if (i) the conditions of subsection (b) above are satisfied, (ii) Rural Development consents to the proposed Transfer, and (iii) when the Owner of the Qualified Rural Development Preservation Project changes, the new Owner executes and delivers a written assumption of all of the MaineHousing obligations in connection with the Qualified Rural Development Preservation Project.

1. All Applications will be subject to a non-refundable application fee to be determined by MaineHousing.
2. If MaineHousing consents to the Transfer, a processing fee will be charged. The amount of the processing fee for Transfers will be established by MaineHousing from time to time and will be based in part upon the estimated cost of processing Transfer Applications.
3. MaineHousing will notify each Owner requesting MaineHousing’s consent to the Transfer when the Application is complete and upon receipt of the required Transfer documents, provide an estimated date or date range by which MaineHousing will make a decision on the Transfer request.

Criteria for Consent to an Application for Transfer

In determining whether or not to consent to a request for a Transfer, MaineHousing will be guided by the following, to the extent applicable to a specific Transfer as determined by MaineHousing:

whether consenting to the request is consistent with the objectives and eligibility requirements of the applicable multifamily or supportive housing loan program under which the Project was funded or allocated tax credits;

whether, in MaineHousing’s judgment, a more efficient use of public resources will result by consenting to rather than denying the Application;

the creditworthiness of any proposed new Owner;

the management experience of any proposed new Owner;

regulatory findings and other determinations, including but not limited to debarment or other ineligibility, by MaineHousing, HUD or any other federal, state or local government agency;

the Application, including any additional information required by MaineHousing;

whether the person or entity to whom the Transfer will be made, or any Affiliate thereof, has sought to achieve early termination of an extended low-income housing commitment, as defined in Section 42(h)(6)(B) of the Code, through a written request to a housing credit agency to present a qualified contract, as defined in Section 42(h)(6)(F) of the Code, or otherwise;

whether the person or entity to whom the Transfer will be made, or any Affiliate thereof, has sought to undermine the exercise of a right of first refusal or purchase option with respect to any Tax Credit Project by refusing to honor a right of first refusal or purchase option, by involvement in a lawsuit challenging the exercise of a right of first refusal or purchase option, or otherwise;

whether the Transfer will result in a loss of affordability or adversely affect the financial stability of the Project as determined by MaineHousing;

whether the Transfer will adversely affect satisfaction of all applicable regulatory and contractual obligations;

whether the Transfer will reduce the likelihood the Project will continue to serve the lowest income tenants for the longest period of time;

whether the new Owner was responsible for (1) the physical or financial condition of another project not being maintained in a satisfactory manner, (2) the capital needs of another project not being met, or (3) another project not complying with applicable regulatory or contractual obligations, with the term “responsible for” meaning causing or not making a good faith event to prevent such events;

the existence of any Additional Circumstances; and

any additional information available to MaineHousing from any source, including third parties.

Terms of MaineHousing Consent to a Transfer Request

MaineHousing will notify each Owner requesting consent to the Transfer in writing of MaineHousing’s decision on the Transfer Application, including any conditions or restrictions, or, if the request is denied, the reason for the denial, within a reasonable time after a completed Application has been submitted.

If MaineHousing consents to the Transfer, MaineHousing may require the parties to the Transfer to execute assignment and assumption agreements, amendments to the existing loan or regulatory documents for the Project, additional security documents, extensions of affordability or use covenants, guaranties of payment, intercreditor and subordination agreements, and other documents, and may require new or updated title insurance policies and property and liability insurance, adequate funding and control of Project reserves, escrows and other accounts, evidence of and legal opinions concerning entity authority, and the satisfaction of other requirements relating to the Project.

MaineHousing’s approval of a Transfer is not intended to override any conditions to the Transfer that are contained in the limited partnership agreement, limited liability company agreement or other organizational documents of an Owner, and MaineHousing’s conditions set out in this rule are in addition to any that are contained in the organizational documents.

Waiver

Upon a determination of good cause, the Director of MaineHousing or the Director’s designee may waive any provision of this rule. The waiver must be in writing and must be supported by documentation of the pertinent facts and grounds.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §4741.1.
• EFFECTIVE DATE: April 2, 1997 – filing 97-102
• REPEAL AND REPLACE: March 24, 2014 – filing 2014-047
• REPEAL AND REPLACE: January 30, 2023 – filing 2023-017

Chapter 28 Temporary Housing Assistance Program Rule

Code Me. R. 99-346 Ch. 28 Temporary Housing Assistance Program Rule {#sec-99-346-ch.-28 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 28}

Summary: The Temporary Housing Assistance Program provides emergency assistance in obtaining housing to persons who are homeless or who are in danger of becoming homeless. This rule sets forth the basic criteria for determining eligible sub-grantees and the terms governing the provision of assistance under the Temporary Housing Assistance Program.

1. Definitions.

A. “Act” means the Maine Housing Authorities Act, 30-A §4701, et seq. as amended from time to time.

B. “Authority” means the Maine State Housing Authority.

C. “CAA” means Community Action Agency established pursuant to 22 M.R.S.A. §5321 et seq. and selected by the Authority to be a Sub-grantee.

D. “OMB Poverty Guidelines” means 150% of the poverty level for Maine as calculated under the federal government’s official poverty income guidelines.

E. “Sub-grantee” means the CAA receiving THAP funds.

F. “THAP” means the Temporary Housing Assistance Program established in 30 M.R.S.A. §4761 et seq.

2. Eligible Sub-Grantees.

To be eligible to receive THAP funds, a Sub-grantee must:

A. be a CAA;

B. timely pay any payments due to the Authority and promptly remedy any issues cited by the Authority.

C. timely submit any and all reports as required under this rule and any contract document with the Authority.

D. have the administrative and financial management capacity necessary to account for the use of THAP funds in accordance with the Act and this rule.

E. comply with all applicable federal, state and local laws and ordinances, as may be amended from time to time, including without limitation the Act and this rule.

3. Use of Funds.

THAP funds generally may be used only for the following purposes:

A. Payment of security deposits, rent arrearages and forward rent payments;

B. Payment of other expenses necessary to prevent eviction or to establish a person in a residential rental unit.

C. No more than 10% of the grant may be used to pay the administrative costs of the grant.

4. Forms of Assistance.

A. THAP funds used to provide assistance to eligible applicants may be made in the form of loans or grants. Sub-grantee shall use THAP funds repaid to the Sub-grantee for the purposes set forth in Section 3 of this rule.

B. Loans may be made for a period based on the applicant’s ability to repay the loan, not to exceed twelve (12) months. Interest may be charged on loans based on the applicant’s ability to repay the loan, not to exceed three percent (3%). When an applicant cannot repay the loan in full within the twelve (12) month period, the repayment period may be extended if the loan can be repaid during the extension period. Payment of interest or principal on any loan or portion of a loan may be deferred or waived if that payment creates an undue hardship.

C. Grants may be provided only when:

1. The grant is essential to securing a decent, safe and sanitary rental unit for the applicant;

2. The income of the applicant is insufficient to repay any loan or portion of the loan;

3. All available resource alternatives have been exhausted;

4. The applicant has satisfied any other program priorities and requirements established by the Authority.

5. Priorities of Assistance

Priority must be given to applicants who meet the following criteria.

A. Applicants whose household income does not exceed 150% of OMB Poverty Guidelines.

B. Applicants who demonstrate a need for assistance.

C. Applicants who have the ability to repay a loan. Applicants whose household income is less than 125% of OMB Poverty Guidelines shall be considered unable to repay a loan. Applicants whose household income exceeds 125% of OMB Poverty Guidelines may be considered able to repay a loan as determined by the CAA.

6. Funding Formula.

The funds shall be distributed to CAA’s based on:

A. 20% of funds will be evenly distributed; and

B. 80% of the funds will be distributed based on the total number of households in poverty in each CAA’s region, as updated from time to time by data sources including the U.S. Census.

7. Reporting Requirements.

The Sub-grantee must submit an annual report to the Authority, in a format supplied by the Authority, on the expenditure of THAP funds on a date set by the Authority.

8. Monitoring.

The Authority may copy and examine all of the Sub-grantee’s records and any other material pertinent to the grant at reasonable times. The Sub-grantee will maintain records sufficient to meet auditing requirements of the Authority.

9. Rule Limitations.

A. Other Laws. If this rule conflicts with any provision of federal or state law, the federal or state law shall control.

B. Pool of Eligible Sub-grantees. This rule establishes a pool of eligible sub- grantees and does not confer any rights to funding on the eligible applicants.

C. Availability of Funds. Assistance under this rule is conditioned on the availability of funds.

D. Waivers. Upon determination of good cause, the Director of the Authority or the Director’s designee may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §§ 4741(1), 4762
• EFFECTIVE DATE: March 11, 1998
• NON-SUBSTANTIVE CORRECTIONS: April 28, 1998 - minor spelling.
• NON-SUBSTANTIVE CORRECTIONS: 99-346 Chapter 28 page 1

Chapter 29 Multi-family Mortgage Loans

Code Me. R. 99-346 Ch. 29 Multi-Family Mortgage Loans {#sec-99-346-ch.-29 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 29}

Summary: The Maine State Housing Authority extends loans secured by mortgages to MaineHousing under programs for the acquisition, construction, rehabilitation, and preservation of rental housing for low income persons. This rule governs MaineHousing’s allocation of resources for such programs, program design, the publication and distribution of program guides, eligibility standards, loan standards, construction and rehabilitation requirements, management requirements, and potential selection criteria.

Definitions

1. “Act” means the Maine Housing Authorities Act, 30-A M.R.S.A. §4701, et seq .

2. “Applicant” means the individual, municipality or entity, or their assigns, applying for financing governed by this Rule.

3. “CMF” means the Capital Magnet Fund established by the federal Housing and Economic Recovery Act of 2008.

4. “Code” means the Internal Revenue Code of 1986, as amended.

5. “Commissioners” means the Director, the Treasurer of the State of Maine, and the eight other persons appointed to the MaineHousing board of commissioners pursuant to 30-A M.R.S.A. §4723, et seq .

6. “Developer” means an Applicant, or an assign of the Applicant, who has received a Term Sheet.

7. “Development” means the land and buildings an Applicant or Developer intends to acquire, construct, rehabilitate, or preserve as rental units for Low-income Persons with funding from a Program.

8. “Development Team” means Applicants and Developers and those working in conjunction with them on a Development, including, without limitation, consultants, architects, engineers, attorneys, real estate agents and brokers, management and marketing agents, contractors, financial institutions, insurance agents, investment brokers, and service providers.

9. “Director” means the director of MaineHousing.

10. “General Mortgage Purchase Bond Resolution” means a resolution adopted by MaineHousing on February 4, 1972, as amended and supplemented, which authorizes MaineHousing to issue bonds for the purchase of first lien single-family and multifamily mortgages.

11. “HOME Investment Partnerships Act” means Title II of the Cranston-Gonzales National Affordable Housing Act, as amended, 42 U.S.C. 12701, et seq. , and implementing regulations including 24 C.F.R. Part 92, all as may be amended.

12. “HTF” means the National Housing Trust Fund established by the federal Housing and Economic Recovery Act of 2008 and implementing regulations including 24 C.F.R. Part 93, all as may be amended.

13. “HUD” means the U.S. Department of Housing and Urban Development.

14. “Loan Documents” means the documents that evidence or secure the Developer’s indebtedness and other obligations to MaineHousing.

15. “Low-income Persons” means persons or families who lack the income which is necessary, as determined by MaineHousing, to enable them, without financial assistance, to live in or purchase decent, safe and sanitary dwellings, without overcrowding. Financial assistance includes, but is not limited to, the following kinds of assistance: (i) mortgage insurance; (ii) interest subsidies; (iii) rent subsidies; (iv) public assistance payment or services; or (v) any other assistance that may be provided by MaineHousing through the sale of bonds.

16. “Low-income Persons with Supportive Service Needs” means Low-income Persons who require assistance typically provided in the following types of projects: (i) emergency shelters; (ii) group homes; (iii) transitional housing; (iv) supported apartments; or (v) other types of housing in which supportive services are provided.

17. “MEHER” means the Maine Energy Housing and Economic Recovery program as established in 30-A M.R.S.A §4861, et seq .

18. MaineHousing” means the Maine State Housing Authority, a body corporate and politic and an instrumentality of the State of Maine, and its agents, contractors, and employees duly authorized to act on its behalf.

19. “Mortgage Purchase Program Fund Balance” means the excess of assets over liabilities held in MaineHousing’s General Mortgage Purchase Bond Resolution.

20. “Program” means an offering of financing in the form of interest-bearing debt, deferred debt, forgivable loans, grants subject to recapture, or a combination of the foregoing available to prospective eligible Applicants on certain terms and for certain purposes determined by MaineHousing pursuant to this rule.

21. “Program Guide” means the written procedural and administrative guide for a particular Program governed by the terms and conditions of this rule.

22. “Term Sheet” means MaineHousing’s official notification to an Applicant, or assignee of the Applicant, indicating that its application has been approved and stating the terms of a prospective financing.

Program Design.

1. Programs. MaineHousing shall design and offer Programs based upon available funds, restrictions attached to such funds, and State housing needs.
2. Program Guides. MaineHousing shall publish a Program Guide with respect to each Program and shall distribute the Program Guide to parties who have expressed an interest to MaineHousing in connection with the type of housing eligible under the Program, to parties MaineHousing selects for marketing the particular Program, and upon request.

Development Funding.

1. Processing of Applications. MaineHousing may process applications on a first come first served basis or may set an application due date described in the Program Guide for submission for review by a scoring committee.
2. Selection for Funding. The Director shall retain final discretion as to whether or not to offer financing to a particular Applicant for a particular Development.
3. Availability of Funds. Financing is always subject to the availability of funds.

Sources of Funds. Funds from the following sources may be made available under this rule:

taxable bonds issued by MaineHousing pursuant to 30-A M.R.S.A. §4871 et seq. , the refunding of such taxable bonds, and other surplus funds which are considered non tax-exempt funds;

tax-exempt 501(c)(3) bonds issued by MaineHousing pursuant to 30-A M.R.S.A. §4871 et seq . and Section 145 of the Code and the refunding of tax-exempt bonds;

tax-exempt residential rental project bonds, issued by MaineHousing pursuant to 30-A M.R.S.A. §4871 et seq ., Section 142 (d) of the Code;

tax-exempt essential function bonds issued by MaineHousing pursuant to 30-A M.R.S.A. §4871 et seq . and the Code and the refunding of such tax-exempt bonds;

Housing Opportunities for Maine Fund established pursuant to 30-A M.R.S.A. §4851 et seq .;

HOME Investment Partnerships Act;

HTF;

MEHER;

CMF;

Project Labor Agreement Funds established pursuant to PL 2021, Chapter 483; and

other funds.

Types of Programs. MaineHousing may offer a Program for any of the following, any combination of the following, any subset of the following, or any combination of subsets of the following:

1. Preservation of Affordability. Programs may provide financing to add or preserve low income or use restrictions pertaining to a target population or supportive services in existing housing.
2. New Construction, Rehabilitation, and Creation of Affordability. Programs may finance the creation of rental units for Low-income Persons through acquisition, new construction, rehabilitation, refinancing, or dedication of existing housing as rental units for Low-income Persons.
3. Subsequent Loans. Programs may offer financing for the repair, maintenance or expansion of assets securing existing mortgages in favor of MaineHousing.

D. Tax Credits. Programs may offer financing for use in conjunction with low-income housing tax credits allocated by MaineHousing pursuant to Section 42 of the Code and any applicable rules adopted by MaineHousing pursuant to the Maine Administrative Procedures Act.

E. Construction Loans. Programs may offer construction-period financing for the creation of rental units for Low-income Persons subject to the following limitations.

i. Public Instrumentalities and Nonprofit Corporations. MaineHousing may provide construction-period financing to nonprofit corporations, which are exempt from taxation under Section 501(c)(3) of the Code and are not private foundations pursuant to Section 509(a) of the Code, and municipal housing authorities, which are established pursuant to the Act, for the acquisition, new construction and rehabilitation of housing for Low-income Persons. Upon completion of the new construction or rehabilitation of such housing, the construction loan shall automatically convert to permanent financing.

ii. For-Profit – Participation. If less than 60% of the financing of a Development is required to be tax-exempt bonds from MaineHousing, and the Developer is a for profit entity, then MaineHousing must at a minimum use a financial institution as an escrow agent. MaineHousing may use the proceeds of tax-exempt bonds to purchase a participation in construction loans made by financial institutions in the State for a Development. A financial institution shall not sell any additional participation in a construction loan in which MaineHousing is participating without MaineHousing’s prior written consent.

iii. For-Profit - Whole Loans. If a Development’s financing requires MaineHousing to participate in the construction loan with tax-exempt financing at a level greater than 60%, MaineHousing may make the whole construction loan without using an escrow agent.

iv. Limitation on Interest. MaineHousing and any financial institution making or participating in a construction loan in which MaineHousing is participating may charge interest rates on the construction loan, or its participation in the construction loan, provided that such interest rates are as described in the applicable Program Guide and do not exceed the Wall Street Journal Prime Rate plus two percent (2%).

v. Limitation on Fees and Charges. MaineHousing and any financial institution making or participating in a construction loan in which MaineHousing is participating may charge application fees, commitment fees, origination or financing fees, document preparation fees, legal fees, construction review fees and construction management or escrow fees, late charges, and prepayment charges provided the fees and charges do not exceed the usual and customary fees and charges imposed by financial institutions in the State and are consistent with the applicable Program Guide.

Low-income and Use Restrictions.

1. Low-income Restrictions. Developments shall benefit Low-income Persons as required by applicable laws, funding source restrictions, applicable Program Guides, and the Developer’s commitments.
2. Use Restrictions. Developments may be required to serve a target population and provide supportive services as required by applicable laws, funding source restrictions, applicable Program Guides, and the Developer’s representations.
3. Assurance of Continued Restrictions. The Developer shall provide any certifications, reports, or other assurances MaineHousing requires to ensure compliance with low-income restrictions and use restrictions, including without limitation, an agreement to be recorded in the appropriate registry of deeds which will obligate the Developer and its successors to comply with the restrictions for a period of time within the applicable Program Guide.

Eligible Applicants. To be eligible for funding, Applicants must satisfy the following:

1. Creditworthiness. Applicants must demonstrate credit worthiness and repayment ability acceptable to MaineHousing. MaineHousing may independently verify credit information.
2. Funding Source Restrictions. Applicants must satisfy any criteria for qualification for receipt of funding attached by law or regulation to the funds the Applicant seeks.
3. Program Qualifications. Developments must meet the objectives of the Program under which they are applying as set forth in the applicable Program Guide.
4. Outstanding or Prior Defaults. MaineHousing will not consider the application of an Applicant if the Applicant, or any other entity in which the Applicant or one of its affiliates has a controlling interest, (i) at any time during the previous 6 months, (a) has been more than 60 days delinquent on MaineHousing financing, or (b) has been issued a notice of default; or (ii) is otherwise disqualified as described in the Program Guide.
5. Debarment. An Applicant or member of a Development Team may not participate in Programs governed by this rule if the Applicant or Development Team member (i) is debarred, suspended, or voluntary excluded from any federal program; (ii) has ever had a professional license to provide the nature of services the party seeks to provide in the Development suspended or revoked; or (iii) is debarred, suspended, or voluntarily excluded from MaineHousing Programs.
6. Debt Concentration. If the Applicant and its affiliates have, or would have after the additional loan, loans outstanding from MaineHousing’s General Mortgage Purchase Bond Resolution in an amount equal to or greater than 25% of the Mortgage Purchase Program Fund Balance, additional review will be triggered which will include an analysis of the Applicant and its affiliates as a whole and consultation with the Commissioners, and may result in denial of the loan by the Director.
7. Supportive Housing Project Concentration. If the Applicant and its affiliated entities own, or would own after the additional financing, greater than 25% of the housing units or projects for Low-income Persons with Supportive Service Needs financed by MaineHousing, additional review will be triggered which will include an analysis of the Applicant and its affiliates as a whole and consultation with the Commissioners, and may result in denial of the financing by the Director.
8. Conflict of Interest. Applicants shall disclose their current and recent financial, business, professional, and family relationships and associations with any MaineHousing employee or commissioner and comply with any restrictions imposed by MaineHousing on account of conflict of interest concerns.
9. Identity of interest. Applicants shall disclose the nature of the relationship between them and any of their principals, proposed sellers, contractors, suppliers, and service providers. MaineHousing may, at its discretion, impose restrictions, or require independent appraisals, or other third party verifications on account of identity of interest concerns.

Interest-bearing Debt. When MaineHousing financing includes interest-bearing debt payable to MaineHousing, the financing shall be subject to the following standards:

1. Underwriting Standards. MaineHousing will assess whether, in its sole discretion, a Development has an acceptable probability of providing rental units for Low-income Persons for the term required. In its assessment, MaineHousing may consider any combination of the following: capital budgets; operating budgets; long term projected cash flows; collateral value; debt service coverage ratios; the Applicant’s credit; market evaluations; the capacity of the Development Team; the capacity of proposed owners; performance history of the Applicant and its affiliates on MaineHousing financed Developments; credit enhancements such as guarantees, mortgage insurance, and letters of credit; the prior performance of the Development; the prior performance of comparable projects; the presence of rental assistance or other operating funds and the likelihood the funding will continue; a capital needs assessment; and additional factors that MaineHousing deems necessary for a thorough evaluation of an application.
2. Appraisals. MaineHousing may obtain an appraisal or appraisals to determine whether there is adequate value in a Development. Such appraisals shall conform to the then current Uniform Standards of Professional Appraisal Practice and MaineHousing’s requirements. Applicants shall reimburse MaineHousing for appraisal costs.

Financing Standards. Financing of Developments will be subject to the following:

1. Documents Evidencing Obligations of Developer. The Developer shall execute the documents MaineHousing determines are necessary or in its best interest including, without limitation and as applicable, promissory notes; mortgage and security agreements; financial assistance agreements; declarations of covenants, conditions, and restrictions; financing statements; regulatory agreements; participation agreements; escrow agreements; and certifications.
2. Developer and Consultant Fees. MaineHousing may condition financing upon a reduction of developer or consultant fees that MaineHousing finds in its discretion are excessive.
3. Title Insurance. MaineHousing may require a lender’s title insurance policy with mechanics’ lien and survey exceptions deleted.
4. Property Insurance. The Developer shall obtain and provide evidence of fire, hazard, extended coverage, and liability insurance acceptable to MaineHousing and such other insurance as MaineHousing in its discretion may reasonably require all containing the standard Maine mortgagee clause.
5. Authority Legal Opinion. For Developers which are other than individuals, MaineHousing shall require a legal opinion regarding the Developer’s legal status and authority to receive the financing.
6. Land Use Legal Opinion. MaineHousing shall require a legal opinion regarding compliance of the Development with applicable zoning and land use laws.
7. Real Estate Taxes and Municipal Charges. The Developer shall provide evidence of payment of real estate taxes and municipal charges prior to closing.
8. Escrows. The Developer shall fund escrows in the amount and on terms established by MaineHousing. Such escrows may include without limitation operating deficit escrows, rehabilitation escrows, replacement reserve escrows, tax and insurance escrows, incomplete work escrows, and relocation escrows.
9. Prepayment. MaineHousing may prohibit prepayment of loans, impose restrictions on prepayments, or impose charges in the event of prepayments.
10. Ownership Transfers. Any grant, sale, assignment or other transfer of an ownership interest in a Development or the Developer will be subject to MaineHousing’s Transfer of Ownership rule.
11. Fair Housing and Accessibility. The Development must be operated in accordance with all applicable fair housing and equal access requirements including without limitation the Federal Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988; the Maine Human Rights Act, Subchapters IV and V; Section 504 of the Rehabilitation Act of 1973; and Title II of the Americans with Disabilities Act of 1990, and all associated regulations and guidance.
12. Fees. MaineHousing may charge application fees, commitment fees, financing fees, and escrow administration fees provided such fees are described in the applicable Program Guide.
13. Other Requirements. The Developer shall satisfy requirements of funding sources and such other requirements as MaineHousing, in its discretion, determines are prudent.
14. Waivers. In the event MaineHousing offers a Program under which (i) MaineHousing lends money short term for acquisition of real estate or (ii) MaineHousing anticipates it will obtain undercollateralized mortgages, MaineHousing may waive or substitute less cumbersome requirements than those set forth in C., D., E., and F. for that Program.

Selection criteria. MaineHousing will set forth selection and approval criteria germane to a particular Program in the applicable Program Guide. Such criteria may include but are not limited to the following:

how well a Development meets the objectives of the Program;

the use of resources other than MaineHousing’s resources in the Development;

the length of commitment to affordability of the Development;

the length of commitment to a particular use of the Development;

the reasonableness of costs;

the efficiency of the use of proposed non-interest bearing resources;

financial feasibility of the Development;

income targeting;

community preference and support;

support of a state agency;

the need for the Development;

the capacity of the Development Team;

the capacity of the Applicant to own and operate;

extent of tenant displacement; and

other criteria required by a funding source or established by MaineHousing.

Relocation. Developments are subject to the following relocation standards:

1. Minimizing Displacement. Applicants must take all reasonable steps to minimize the displacement of persons from their homes as a result of rehabilitation, change of use, or rent increases.
2. Federally-assisted Developments. Developers of Developments assisted with federal funds shall comply with applicable requirements including without limitation: the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended, 42 U.S.C. §4601 et seq ., and the Uniform Relocation Assistance and Real Property Acquisition Regulations for Federal and Federally Assisted Programs Final Rule, 49 C.F.R. 24, published March 2, 1989, as amended; §104(d) of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. 5304(d)(4), and the Displacement Relocation Assistance, and Real Property Acquisition for HUD and HUD-Assisted Program Final Rule, 24 C.F.R. 42, as amended.
3. MaineHousing Financing. Developers of Developments financed by MaineHousing and not subject to 11.B. above shall comply with the following: 1. Temporary Tenant Relocation. If tenants are not required to move permanently but must relocate temporarily because of rehabilitation to a Development, the Applicant shall provide the tenants with (a) reimbursement for all reasonable out-of-pocket expenses and increased costs incurred in connection with the temporary relocation; and (b) appropriate advisory services including reasonable advance notice of the date and approximate duration of the temporary relocation; the location of a suitable, decent, safe and sanitary dwelling to be made available for the temporary period; the terms and conditions under which the tenant may lease and occupy a bed or unit in the Development upon completion of the Development; and the provisions for reimbursement of expenses and increased costs. 2. Displaced Persons. If an individual moves from a property or moves personal property from real property permanently and involuntarily as a direct result of a Developer’s acquisition, relocation, or demolition of such real property financed in whole or in part by MaineHousing, the Developer shall do the following: 1. The Developer shall provide in a form satisfactory to MaineHousing initial notices to all tenants. Failure to send such notices may cause tenants to be deemed displaced. 2. The Developer shall send each tenant a 90-day advanced written notice of the date by which the tenant must move in a form satisfactory to MaineHousing. 3. If the displaced person’s income is below 80% of area median income, the Developer must do the following: (i) prior to sending the 90-day notice, contact the person to be displaced to explain the benefits, ascertain needs, and offer transportation for up to 3 available comparable units and (ii) pay either the tenant’s actual reasonable out-of-pocket moving and related expenses or a one-time payment determined by MaineHousing. 4. If the displaced person’s income is below 60% of median family income for the area, the Developer shall in addition to 11.C. ii. (1), (2), and (3) above, make 12 months of replacement housing payments to the displaced person. The Developer may make the payments in a lump sum or on a monthly basis. The amount of the replacement housing payments is the difference between the rent and utilities at either the replacement unit or a unit comparable to the vacated unit found by the Developer, whichever is less, and the monthly rent and utilities of the vacated unit multiplied by 12.

New Construction and Rehabilitation Requirements. If the Development includes new construction or rehabilitation, the following applies:

1. Approval of Construction Documents and Budget. Funding for new construction or rehabilitation is subject to MaineHousing’s review of the drawings, specifications, construction contract, and budget for reasonableness and completeness. MaineHousing may require a competitive bidding process for any general contractors or subcontractors.
2. Payment and Performance Bonds. MaineHousing at its discretion may require any of the following or a combination of the following: (i) a payment and performance bond, (ii) a letter of credit, and (iii) a maintenance bond.
3. Escrows. MaineHousing may establish, maintain, and administer an escrow account for all construction.
4. Developments Financed with Project Labor Agreement Funds. Developers of Developments financed with Project Labor Agreement Funds shall (i) enter into pre-hire, collectively bargained project labor agreements with the workers who work on the affordable housing, including those employed by a contractor and all subcontractors of the Developer; and (ii) require any entity working on the housing to make a good faith effort at all times to promote workforce diversity, including diversity with regard to race and gender. If MaineHousing determines that a contractor, subcontractor, firm, corporation, partnership or other entity is not making a good faith effort to achieve workforce diversity, MaineHousing may refuse to permit that entity to be awarded a contract for any Development funded with Project Labor Agreement Funds for a period of two (2) years from the date of such determination.
5. Other Requirements of Funding Resources. The Developer shall comply with all applicable requirements of funding resources including without limitation: (i) taking affirmative steps to assure contracting with Women-owned and Minority-owned Business Enterprises; (ii) Davis-Bacon; (iii) Section 3 of the Housing and Urban Development Act of 1968; and (iv) the National Environmental Policy Act.
6. Codes and Standards. All elements of the Development shall meet all applicable state and local codes and ordinances. Generally, all work undertaken must meet the standards set forth in the Maine Uniform Building and Energy Code and the minimum standards outlined in MaineHousing’s Quality Standards and Procedures Manual . MaineHousing may require any or all the following: a plan review, a construction permit, a sprinkler permit, or a barrier free permit from the Department of Public Safety.
7. Accessibility and Adaptability Requirements. The design and construction of and improvements to the Development shall comply with all applicable accessibility laws, which include but are not limited to the Federal Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988; the Maine Human Rights Act, Subchapters IV and V; Section 504 of the Rehabilitation Act of 1973; and Title II of the Americans with Disabilities Act of 1990; and Title III of the Americans with Disabilities Act of 1990, MUBEC and associated regulations accessibility standards and guidance as may be amended.
8. Interpretation of Codes and Standards. If there is a question in interpretation of codes or standards, the construction or rehabilitation shall conform to MaineHousing’s interpretation of such codes and standards.
9. Incomplete Work Escrows. MaineHousing may disburse all of its funds upon completion of all but a few items if (i) (a) the incomplete work items are awaiting seasonable opportunity; (b) the incomplete work items are back-ordered and therefore unavoidably incomplete; or (c) MaineHousing determines that circumstances warrant inclusion of other non-safety related incomplete work items; and (ii) MaineHousing retains an amount equal to 150% of the cost required to complete such items.
10. Flexible Use. To the extent feasible, the Development shall comply with the physical licensing standards for residential facilities of the Department of Health and Human Services; the Department of Corrections; the Department of Education; and their successor agencies.
11. Other Requirements. The Developer shall comply with all requirements MaineHousing, in its discretion, determines are prudent.
12. Waivers. In the event MaineHousing offers a Program under which (i) MaineHousing lends money short term for acquisition of real estate or (ii) MaineHousing anticipates it will obtain undercollateralized mortgages, MaineHousing may waive or substitute less cumbersome requirements than those set forth in A., B., C., and H.

Management Requirements. The Developer shall manage the property in accordance with state and federal laws, the requirements attached to the source or sources of financing, applicable Program Guides, and the loan documents.

Maintenance Requirements.

1. Minimum Maintenance Standards. The Developer shall maintain the Development in good condition and in accordance with applicable laws and codes; the funding sources; the Loan Documents; and the International Property Maintenance Code established by the International Code Council.

2. Inspections. The Developer shall permit MaineHousing to inspect the Development as it deems reasonably necessary as a prudent lending institution and a responsible public agency.

3. Matching of Resources. MaineHousing may match resources provided by a municipality in connection with a Development (which resources may include, without limitation, land, buildings, equipment, personnel, zoning provisions, and money) on a dollar-for-dollar basis, with the value of the resources being provided by the municipality to be determined by MaineHousing.

4. Rule Limitations.

A. Other Laws. If this rule conflicts with any provision of federal or state law, the federal or state law shall control.

B. Waivers. Upon determination of good cause, the Director of MaineHousing or the Director’s designee may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

History

• STATUTORY AUTHORITY: 30-A MRSA §§ 4741(1) and 4722(1)(L)
• EFFECTIVE DATE: January 10, 2000 – filing 2000-10, also repealed Chapters 6, 9, 11, 15, 22, 23, and 26.
• AMENDED: January 13, 2001- filing 2001-11
• AMENDED: July 25, 2001 – filing 2001-279
• AMENDED: April 28, 2003 - filing 2003-107
• REPEALED AND REPLACED: February 3, 2019 – filing 2019-026
• REPEALED AND REPLACED: September 19, 2022 – filing 2022-180

Chapter 30 Single Family Home Improvement Loans

Code Me. R. 99-346 Ch. 30 Single Family Home Improvement Loan Programs {#sec-99-346-ch.-30 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 30}

Summary: The Maine State Housing Authority may offer mortgage financing for the improvement of single family housing for persons of low or moderate income, including without limitation, rehabilitation, home replacement, emergency repairs, lead paint mitigation, accessibility improvements, and energy efficiency improvements. This rule governs program design, eligibility standards, mortgage standards, and construction standards for mortgage financing of improvements to single family homes.

1. Definitions.

A. “Act” means the Maine Housing Authorities Act, 30-A M.R.S.A. §4701, et seq.

B. “Applicant” means the individual, municipality or entity applying for funds governed by this rule. Depending on the Program design, an Applicant will be (i) a Low or Moderate Income Person who owns and occupies a Single Family Home or (ii) a party who seeks to provide administrative functions or other services for the benefit of Low or Moderate Income Persons who own and occupy a Single Family Home.

C. “Beneficiary” means a Low or Moderate Income Person who owns and occupies a Single Family Home improved with funds governed by this rule.

D. “Director” means the director of MSHA.

E. “Funding Commitment” means MSHA’s official notification to an Applicant indicating that its application has been approved and stating the terms of a prospective financing.

F. “General Mortgage Purchase Bond Resolution” means a resolution adopted by MSHA on February 4, 1972, as amended and supplemented, which authorizes MSHA to issue bonds for the purchase of first lien single-family and multifamily mortgages.

G. “Governmental Entity” means a state or federal agency or instrumentality.

H. “HOME Investment Partnerships Act” means Title II of the Cranston-Gonzales National Affordable Housing Act, as amended, 42 U.S.C. 12701, et seq., and the HOME Investment Partnerships Program Final Rule, 24 C.F.R. Part 92, published September 16, 1996 with May 28, 1997 technical corrections and August 22, 1997 amendments.

I. “Low or Moderate Income Persons” means persons or families whose income is lower than limits established by MSHA for a particular Program, based on criteria determined by MSHA which may include without limitation market conditions, interest rates, availability of housing, geography, family size, and need.

J. “MSHA” means the Maine State Housing Authority, a body corporate and politic and an instrumentality of the State of Maine, and its agents, contractors, and employees duly authorized to act on its behalf.

K. “Program” means an offering of mortgage financing in the form of amortizing debt, forgivable loans, grants, or a combination of the foregoing available to prospective eligible Applicants and Beneficiaries on certain terms and for certain purposes determined by MSHA pursuant to this rule.

L. “Program Guide” means the written procedural and administrative guide for a particular Program governed by the terms and conditions of this rule.

M. “Project” means a Single Family Home owned by a Low or Moderate Income Person and improved or to be improved with funds pursuant to a Program.

N. “Recipient” means an Applicant who has received a Funding Commitment.

O. “Single Family Home” means a one, two, three or four unit owner-occupied residence.

P. “State Housing Bond” means the general fund bond issued by the State of Maine pursuant to Private and Special Laws, 2001, Chapter 35, in the amount of $12,000,000 to address the affordable housing crisis in the State.

2. Program Design.

A. Allocation. MSHA may allocate funds for the improvement of Single Family Homes of Low or Moderate Income Persons in accordance with applicable federal and state laws.

B. Conditions. Based upon such allocation, MSHA shall make funds available for use on Single Family Homes of Low or Moderate Income Persons on terms and conditions established by MSHA consistent with applicable federal and state laws.

C. Programs. MSHA shall design and offer Programs based upon available funds, restrictions attached to such funds, and State housing needs.

D. Program Guides. MSHA shall publish a Program Guide with respect to each Program and shall distribute the Program Guide to parties who have expressed an interest to MSHA in connection with the financing available under the Program, to parties MSHA selects for marketing the particular Program, and upon request. MSHA may make the Program Guide available on its web site.

E. Governmental Entities. MSHA may cooperate with and rely upon other Governmental Entities in the design and delivery of Programs consistent with this Rule.

3. Funding.

A. Processing of Applications. MSHA may process applications on a first come first served basis or set an application due date described in the Program Guide for submission for review by a scoring committee.

B. Selection for Funding. The Director shall retain final discretion as to whether or not to offer financing to a particular Applicant.

C. Availability of Funds. Financing is always subject to the availability of funds.

4. Sources of Funds. Funds from the following sources may be made available under this rule:

 taxable bonds issued by MSHA pursuant to 30-A M.R.S.A. §4871 et seq. and the refunding of such taxable bonds;

 tax-exempt mortgage revenue bonds issued by MSHA pursuant to 30-A M.R.S.A. §4871 et seq. and the Internal Revenue Code and the refunding of tax-exempt bonds;

 Housing Opportunities for Maine Fund established pursuant to 30-A M.R.S.A. §4851 et seq.;

 HOME Investment Partnerships Act funds;

 State Housing Bond;

 other funds.

5. Types of Programs. MSHA may offer a Program for any of the following or any combination of the following:

A. Single Family Home Rehabilitation. Programs may provide financing to make non-luxury improvements to Single Family Homes of Low or Moderate Income Persons.

B. Single Family Home Replacement. Programs may finance the replacement of Single Family Homes of Low or Moderate Income Persons with mobile, modular, or other Single Family Homes.

C. Emergency Repairs. Programs may offer financing for improvements which need to be made immediately for the safety and well-being of residents of Single Family Homes of Low or Moderate Income Persons.

D. Lead Paint Mitigation. Programs may offer financing for the reduction of lead hazards in Single Family Homes of Low or Moderate Income Persons.

E. Accessibility Improvements. Programs may offer financing for accessibility rehabilitation to Single Family Homes of Low or Moderate Income Persons which will improve the quality of life of an existing resident who has a physical disability.

F. Energy Programs. Programs may finance improvements to the energy efficiency of Single Family Homes of Low or Moderate Income Persons.

6. Low-income and Use Restrictions.

A. Low-income Restrictions. Projects shall benefit Low or Moderate Income Persons as required by applicable laws, funding source restrictions, applicable Program Guides, and the Recipient’s commitments.

B. Assurance of Continued Restrictions. MSHA may require certifications, reports, or other assurances to ensure compliance with affordability restrictions, including without limitation, an agreement to be recorded in the appropriate registry of deeds which will obligate Project owners and their successors to comply with the restrictions for a number of years.

7. Eligible Applicants. To be eligible for funding, Applicants must satisfy the following:

A. Funding Source Restrictions. Applicants and Beneficiaries must satisfy any criteria for qualification for receipt of funding attached by law or regulation to the funds the Applicant seeks.

B. Program Qualifications. Applicants and Beneficiaries must suit the objectives of the Program under which they are applying as set forth in the applicable Program Guide.

C. Debarment. A party may not provide rehabilitation work for Programs if that party (i) is debarred, suspended, or voluntarily excluded from any federal programs; (ii) has ever had a professional license to provide the nature of services the party seeks to provide in the Project suspended or revoked; or (iii) is debarred, suspended, or voluntarily excluded from MSHA programs.

D. Conflict of Interest. Applicants shall disclose their current and recent financial, business, professional, and family relationships and associations with any MSHA employee or commissioner and comply with any restrictions imposed by MSHA on account of conflict of interest concerns.

E. Identity of interest. Applicants shall disclose the nature of the relationship between them and any of their principals, proposed sellers, contractors, suppliers, and service providers. MSHA may, at its discretion, impose restrictions, or require independent appraisals, or other third party verifications on account of identity of interest concerns.

8. Amortizing Debt. When MSHA financing includes amortizing debt payable to MSHA, the financing shall be subject to the following:

A. Underwriting Standards. Program Guides shall set forth underwriting criteria which may include, without limitation, debt to income ratios, credit history, assets, and employment stability.

B. Appraisals. MSHA may require an appraisal in a form satisfactory to MSHA to determine whether there is adequate value in a Project and may require Applicants to reimburse MSHA for appraisal costs.

9. Financing Standards. Financing of Projects will be subject to the following:

A. Documents Evidencing Obligations of Recipients and Beneficiaries. Recipients and Beneficiaries shall execute the documents MSHA determines are necessary or in its best interest including, without limitation and as applicable, affidavits; grant agreements; promissory notes; mortgage and security agreements; financial assistance agreements; declarations of covenants, conditions, and restrictions; financing statements; regulatory agreements; escrow agreements; and certifications.

B. Fees. MSHA may limit Recipient, consultant, and other fees that MSHA finds in its discretion are excessive or inappropriate.

C. Loan Insurance. MSHA may require private mortgage insurance or loan insurance or guarantees from the federal government.

D. Property Insurance. MSHA may require evidence of fire, hazard, extended coverage, and liability insurance acceptable to MSHA and such other insurance as MSHA in its discretion may reasonably require, all containing the standard Maine mortgagee clause with loss payable to MSHA.

E. Title Insurance. MSHA may require a lender’s title insurance policy or title search.

F. MSHA Legal Opinion. MSHA may require a legal opinion regarding the Applicant’s legal status and authority to receive the financing.

G. Escrows. Programs may require the establishment of rehabilitation or other escrows in an amount and on terms established by MSHA.

H. Prepayment. MSHA may prohibit prepayment of loans, impose restrictions on prepayments, or impose charges in the event of prepayments in compliance with applicable laws.

I. Fair Housing and Accessibility. An Applicant or Recipient may be required to certify to its familiarity and compliance with the Federal Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988; the Maine Human Rights Act, Subchapters IV and V; Section 504 of the Rehabilitation Act of 1973; and Title III of the Americans with Disabilities Act of 1990.

J. Fees. MSHA may charge application fees, commitment fees, financing fees, and escrow administration fees provided such fees are described in the applicable Program Guide. MSHA may also pay fees to a Recipient or another party for administration of Program requirements in accordance with a Program Guide.

K. Other Requirements. Recipients and Beneficiaries shall satisfy such other requirements as MSHA, in its discretion, determines are prudent.

10. Selection criteria. MSHA will set forth selection and approval criteria germane to a particular Program in the applicable Program Guide. Such criteria may include but are not limited to the following:

 how well an application meets the objectives of the Program;

 the use of resources other than MSHA’s resources;

 the reasonableness of costs;

 the efficiency of the use of proposed subsidy;

 financial feasibility;

 geographic distribution;

 income targeting;

 the projected number of units to be rehabilitated;

 community preference and support;

 support of a state agency;

 needs;

 the capacity of the Applicant to perform, including without limitation capacity and experience in underwriting, Single Family Home improvement, marketing, serving Low or Moderate Income Persons, and administration of MSHA programs or other housing programs;

 the degree to which funds will be recycled for continued program activities; and

 other criteria established by MSHA.

11. Relocation. Projects are subject to the following relocation standards:

A. Federally-assisted Projects. Projects assisted with federal funds shall comply with the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended, 42 U.S.C. § 4601 et seq., and the Uniform Relocation Assistance and Real Property Acquisition Regulations for Federal and Federally Assisted Programs Final Rule, 49 C.F.R. 24, published March 2, 1989, as amended.

B. HOME-assisted Developments. In addition to complying with Section 11.A. above, Projects assisted with HOME Investment Partnerships Act, Community Development Block Grant or Urban Development Action Grant funds shall comply with the requirements of §104(d) of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. 5304(d)(4), and the Displacement Relocation Assistance, and Real Property Acquisition for HUD and HUD-Assisted Program Final Rule, 24 C.F.R. 42, published November 4, 1996, as amended.

12. Rehabilitation Requirements.

A. Approval of Construction Documents and Budget. Funding for rehabilitation may be subject to MSHA’s review of the drawings, specifications, construction contract, and budget for reasonableness and completeness. MSHA may require a competitive bidding process for any general contractors or subcontractors.

B. Women-owned and Minority-owned Business Enterprises. MSHA may require Recipients to promote the use of women-owned and minority-owned business by at a minimum: (i) placing qualified women-owned and minority-owned business enterprises on solicitation lists; (ii) assuring that women-owned and minority-owned business enterprises are solicited whenever they are potential sources; (iii) dividing total requirements, when economically feasible, into small tasks or quantities to permit maximum participation by women-owned and minority-owned business enterprises; and (iv) document efforts used to encourage the use of and contracting with women-owned and minority-owned business enterprises.

C. Codes and Standards. All elements of a Project shall meet all applicable federal, state, and local codes, ordinances, and regulations in addition to MSHA requirements.

D. Interpretation of Codes and Standards. If there is a question in interpretation of codes or standards, the construction or rehabilitation shall conform to MSHA’s interpretation of such codes and standards.

E. Inspections. Recipients and Beneficiaries shall permit MSHA to inspect Projects as it deems reasonably necessary as a prudent lending institution and a responsible public agency.

F. Other Requirements. Recipients and Beneficiaries shall comply with all requirements MSHA, in its discretion, determines are prudent.

13. Rule Limitations.

A. Other Laws. If this rule conflicts with any provision of federal or state law, the federal or state law shall control.

B. Waivers. Upon determination of good cause, the Director of MSHA or the Director’s designee may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

History

• STATUTORY AUTHORITY: 30-A MRSA §§4722(1) and 4741(1)
• EFFECTIVE DATE: October 20, 2002
• EFFECTIVE DATE: 99-346 Chapter 30 page 9
• EFFECTIVE DATE: Proofed
• EFFECTIVE DATE: 11/6/02

Chapter 31 Affordable Housing Development District - Recovery of Public Revenue

Code Me. R. 99-346 Ch. 31 Affordable Housing Development District - {#sec-99-346-ch.-31 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 31}

RECOVERY OF PUBLIC REVENUE

Summary: Subject to the satisfaction of certain conditions and the approval of the Maine State Housing Authority, municipalities may create affordable housing development districts within their corporate limits. A municipality that creates an affordable housing development district benefits from the use of increased property values relating to the district without any offsets to the municipality's State revenue sharing and education subsidies or increase in county taxes. In the event that an affordable housing development district fails to continue satisfying conditions of its creation, this rule provides for the recovery of public revenue resulting from these beneficial tax shifts.

1. Definitions. The following terms shall have the following meanings:

A. "Affordable Housing" means a decent, safe and sanitary dwelling, apartment or other living accommodation for a household whose income does not exceed 120 percent of the median income for the area as defined by the United States Department of Housing and Urban Development.

B. "Affordable Housing Development District" means a specified area within the corporate limits of a municipality that has been designated as such in accordance with the provisions of Sections 5247 and 5250 of Title 30-A M.R.S.A. for a duration of up to 30 years and that is developed under an Affordable Housing Development Program and financed under Section 5250-A of Title 30-A M.R.S.A.

C. "Affordable Housing Development Program" means a statement of means and objectives designed to encourage the development and maintenance of Affordable Housing within an Affordable Housing Development District.

D. "Authority" means the Maine State Housing Authority.

E. "Captured Assessed Value" means the amount of Increased Assessed Value that is utilized from year to year to finance the Project Costs contained in the Affordable Housing Development Program.

F. "Current Assessed Value" means the assessed value of the District certified by the municipal assessor as of April 1st of each year that the Affordable Housing Development District is in effect.

G. "Director" means the Director of the Authority.

H. "District" means an Affordable Housing Development District.

I. "Increased Assessed Value" means the valuation amount by which the Current Assessed Value of an Affordable Housing Development District exceeds the Original Assessed Value of the District.

J. "Original Assessed Value" means the assessed value of an Affordable Housing Development District as of March 31st of the tax year preceding the year in which it was designated.

K. "Project Costs" means any expenditures or monetary obligations incurred or expected to be incurred that are authorized by Section 5249 of Title 30-A M.R.S.A. and included in the Affordable Housing Development Program.

L. "Tax Shifts" means the effect on a municipality's State revenue sharing, education subsidies and county tax obligations that results from the designation of an Affordable Housing Development District and from Captured Assessed Value.

2. Recovery of Public Revenue

a. For any period of time during which conditions for approval of an Affordable Housing Development District of continuing applicability after approval of the District by the Director were not maintained, the municipality where the District is located shall not claim for that period of noncompliance the corresponding amount of local valuation as Captured Assessed Value on the municipal valuation return that the municipality is required to file with Maine Revenue Services pursuant to 36 M.R.S.A. Section 383.

b. For any period of noncompliance with conditions of approval of an Affordable Housing Development District for which the municipality where the District is located has claimed the corresponding amount of local valuation as Captured Assessed Value on the municipal valuation return filed with Maine Revenue Services for that period, the municipality is liable to the Authority and shall pay to the Authority, on demand, the value of the Tax Shifts benefiting the municipality during the period of the noncompliance. The Authority may, in its discretion, waive events of noncompliance that are insubstantial or that are being corrected diligently and in good faith or for other reasons satisfactory to the Authority.

c. The Authority shall take those steps necessary to recover the value of the Tax Shifts as provided in Section 2.b of this rule. Nothing in this rule precludes a municipality from recovering such amounts from a developer, owner, or sponsor of Affordable Housing or other responsible entity to the extent permitted by applicable law.

d. The Authority shall remit to the Treasurer, State of Maine, amounts recovered from a municipality that represent the value of the Tax Shifts described in Section 2.b of this rule.

e. A municipality seeking approval of an Affordable Housing Development District by the Director shall be required, as an additional condition of such approval, to enter into a binding agreement with the Authority in which the municipality expressly agrees to be bound by terms and conditions substantially similar to those set forth in this rule.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §§5250-E.2, 4741.1.
• EFFECTIVE DATE: June 19, 2004 - filing 2004-160, major substantive
• EFFECTIVE DATE: 99-346 Chapter 31 page 3

Chapter 32 State Low Income Home Energy Assistance Program Rule

Code Me. R. 99-346 Ch. 32 State Low Income Home Energy Assistance Program Rule {#sec-99-346-ch.-32 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 32}

Summary: The rule governs the State Low Income Home Energy Assistance Program (“State LIHEAP”). State LIHEAP provides fuel assistance to low-income persons.

1. Definitions.

A. “Act” means the Maine Housing Authorities Act, 30-A M.R.S.A. § 4701 et seq., as it may be amended from time to time.

B. “Donated Resources” means resources given to MSHA by a source other than the State for the purpose of providing fuel assistance to low-income persons.

C. “Federal LIHEAP” means the Home Energy Assistance Program established pursuant to the Federal LIHEAP Act, the Act, and the Federal Funds LIHEAP Rule.

D. “Federal LIHEAP Act” means 42 U.S.C.A. §8621 et seq., and the regulations promulgated thereunder, including 45 C.F.R. § 96.1 through 96.68 and 45 C.F.R. § 96.80 et seq., all as may be amended from time to time.

E. “Federal Funds LIHEAP Rule” means Chapter 24 of the Maine State Housing Authority’s rules, the Home Energy Assistance Program Rule.

F. “Household” means any individual or group of individuals who are living together as one economic unit for whom residential energy is customarily purchased in common.

G. “MSHA” means the Maine State Housing Authority.

H. “Program Year” means the period of time beginning October 1 and ending September 30.

I. “Rental Unit” means a unit in any multi-family residential rental structure.

J. “State” means the State of Maine.

K. “State Funds” means funds appropriated by the State Legislature to MSHA to supplement Federal LIHEAP.

L. “State LIHEAP Funds” means funds administered under this rule.

2. State Funds.

A. Eligibility. A Household is eligible for a State Funds benefit if it receives a Federal LIHEAP benefit greater than $5.00 in the current Program Year and meets any additional restrictions imposed by law.

B. Allocation of State Funds Among Eligible Households. MSHA shall allocate the State Funds among the Households eligible for State Funds according to the point system set forth in Section 5.A. of the Federal Funds LIHEAP Rule.

C. Use. State Funds may be used in a manner consistent with the Federal LIHEAP Act and applicable law.

3. Donated Resources.

A. Eligibility. Eligibility of a Household or an entity for Donated Resources shall be determined in a manner consistent with the terms of the Donated Resources and the Act.

B. Allocation of Donated Resources. MSHA shall allocate Donated Resources among Households and entities eligible for the Donated Resources in a manner consistent with the terms of the Donated Resources and the Act.

C. Use. Donated Resources may be used in a manner consistent with the terms of the Donated Resources and the Act.

4. Disbursement of State LIHEAP Funds. MSHA will disburse the State LIHEAP funds benefiting Households in the manner MSHA disburses Federal LIHEAP benefits.

5. Additional Provisions.

A. Other Laws. If this rule conflicts with any provision of applicable federal or State law, including without limitation the Act, such federal or State law shall control.

B. Additional Requirements. This rule does not preclude such additional or alternative requirements as may be necessary to comply with the Act.

C. Pool of Eligible Households. This rule establishes a pool of eligible applicants but does not preclude additional reasonable criteria and does not confer any automatic right or entitlement on any person or entity eligible hereunder.

D. Availability of Funds. Assistance provided pursuant to this rule is conditioned on the availability of State LIHEAP funds.

E. Waivers. Upon determination for good cause, the Director of MSHA or the Director's designee may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds for the waiver.

F. Final Action. The Director of MSHA, individually or by exercise of the delegation powers contained in the Act, shall make all decisions and take all action necessary to implement this rule. Such action of the Director shall constitute final agency action.

FISCAL IMPACT NOTE: The rule will not impose any cost on municipalities or counties for implementation or compliance.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. § 4722.1.W and § 4741.15
• EFFECTIVE DATE: December 28, 2005 – filing 2005-538 (EMERGENCY)
• EFFECTIVE DATE: March 5, 2006 – filing 2006-93
• EFFECTIVE DATE: 99-346 Chapter 32 page 3

Chapter 33 AccessAble Home Tax Credit Rule

Code Me. R. 99-346 Ch. 33 Accessable Home Tax Credit Rule {#sec-99-346-ch.-33 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 33}

Summary: Taxpayers whose federal adjusted gross income does not exceed $55,000 may receive an income tax credit in an amount up to $9,000 for the applicable percentage of expenses incurred for certain modifications to make a homestead accessible to an individual with a disability or physical hardship who resides or will reside in the homestead. The applicable percentage is determined on a sliding scale that ranges from 50% to 100% based on income. This rule identifies the types of home modification expenditures that qualify for the credit and the building standards applicable to the modifications. It is the intent of MaineHousing that the AccessAble Home Tax Credit be administered in a manner that is simple, flexible, accommodating, and suitable for the individual who requires the modification. National accessibility standards are used for reference, rather than as a hard and fast rule.

Definitions. The following terms shall have the following meanings:

1. “Director” means the director of MaineHousing.
2. “Homestead” means a dwelling owned or rented by the Taxpayer or held in a revocable living trust for the benefit of the Taxpayer and occupied by the Taxpayer and the Taxpayer’s dependents as a home as further defined in Title 36 MRSA Section 5219-II or any successor statute.
3. “MaineHousing” means the Maine State Housing Authority.
4. “Tax Credit” means the credit allowed against a Taxpayer’s income taxes for Homestead modifications pursuant to Title 36 MRSA Section 5219-PP or any successor statute.
5. “Taxpayer” means the individual who pays for the modifications to their existing Homestead to make all or a portion of it accessible to an individual with a disability or physical hardship who resides or will reside in the Homestead.

Types of Modifications Eligible for Tax Credit. Expenses for the following types of modifications are eligible for the Tax Credit:

1. Changes to flooring to mitigate tripping hazards
2. Moving control items such as light switches to within reach ranges
3. Adjustments to exterior site walking surfaces including any necessary grading
4. Creation of an accessible parking space
5. Installation of access ramps
6. Widening of existing doorways for ease of access
7. Installation of accessible door hardware
8. Installation or adjustment of storage shelving and closet rods to within reach ranges
9. Installation of accessible toilet, bathroom sink, or kitchen sink plumbing fixtures
10. Installation of bathroom mirrors or medicine cabinets within lines of sight or reach ranges
11. Installation of grab bars at plumbing fixtures
12. Installation of roll-in showers
13. Installation of transfer seats in showers
14. Installation of tub seats
15. Installation or height adjustment of work counters in kitchens
16. Installation of front-controlled cooking appliances
17. Installation of alarm devices or doorbells for the hearing or visually impaired
18. Installation of lifts
19. Other modifications reasonably necessary to make the Homestead accessible to an individual with a disability or physical hardship who resides or will reside in the Homestead.

Applicable Standards. To qualify for credit, the Taxpayer must demonstrate the work meets the following standards:

1. Suitability for the individual with a disability or physical hardship who resides or will reside in the Homestead
2. General consistency with American National Standards Institute (ANSI) ICC A117.1-2009 standards
3. Compliance with applicable building codes

Certification Process

1. To qualify for credit a taxpayer must request certification from MaineHousing. A taxpayer must claim the credit in the year in which the certification is issued.
2. Taxpayer’s request for certification must include the following:

i. Detailed description of the modifications made

ii. Copy of itemized invoice from contractor who completed the work or copy itemized invoice of materials used to complete job if completed by the taxpayer

iii. Copy of construction contract, if any

iv. Photograph of work completed

v. Before photograph, if available

vi. Taxpayer’s representation that:

the modifications are to make all or a portion of their Homestead accessible to an individual with a disability or physical hardship who resides or will reside in the Homestead; and

the modifications were completed in accordance with the applicable standards set forth in Section 3 of this rule.

vii. If Taxpayer hired a contractor to complete the modifications, the contractor’s certification that the modifications were completed in accordance with applicable local codes

Inspections. MaineHousing shall have the right to inspect the work upon reasonable notice to confirm that the work complies with this rule and 36 MRSA Section 5219-PP or any successor statute. MaineHousing will inspect sites both randomly and as it deems warranted.

Appeal Process. A Taxpayer may appeal MaineHousing’s determination to MaineHousing’s Director within 21 days of the date of the notice from MaineHousing. The appeal must be in writing. The Taxpayer may submit additional information not previously provided to MaineHousing with the appeal if the Taxpayer believes the information is relevant to MaineHousing’s determination. MaineHousing’s Director will respond within 21 days with a written decision on the appeal. A decision by MaineHousing’s Director pursuant to this appeal process constitutes final agency action.

Rule Limitations

1. Other Laws. If this rule conflicts with any provision of applicable federal or state law, such federal or state law shall control.
2. Waivers. Upon determination for good cause, the Director of MaineHousing, or the Director’s designee, may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds for the waiver.

History

• STATUTORY AUTHORITY: 30-A M.R.S. §4741.1 and 36 M.R.S. §5219-PP
• EFFECTIVE DATE: December 11, 2016 – filing 2016-213
• REPEALED AND REPLACED: September 1, 2018 – filing 2018-175

Chapter 34 Preservation and Relocation Rule

Code Me. R. 99-346 Ch. 34 Preservation and Relocation Rule {#sec-99-346-ch.-34 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 34}

Summary: Under Maine law, an owner of a Low-income Rental Housing Project may not take an action that would cause rental assistance or affordability restrictions in connection with the project to terminate without first giving a 90 day Notice to the Tenants, MaineHousing, and any municipal housing authority for the municipality in which the property is located. MaineHousing has a right of first refusal to purchase the project at its Current Appraised Value. The owner and any purchaser of the Low-income Rental Housing Project must ensure that the current Tenants are allowed to either remain in their units at the same rent for 6 months following the loss of rental assistance or affordability restrictions, or receive relocation assistance.

This rule does the following: (1) outlines the requirements for the Notices to the Tenants and to MaineHousing, (2) sets forth a process for determining the Current Appraised Value of the Low-income Rental Housing Project, and (3) establishes the terms of relocation assistance that must be provided if the owner opts to provide relocation assistance rather than allow Tenants to stay in their units at the same rent for 6 months following the loss of rental assistance or affordability restrictions.

Definitions. The following terms shall have the following meanings:

1. “Actual Reasonable Moving and Related Expenses” may include reasonable and necessary costs for transportation for the Tenant; packing, moving, and unpacking the Tenant’s household goods; disconnecting and reconnecting household appliances and other personal property; storage of household goods; insurance for the replacement value of Tenant’s property during the move and any necessary storage; and the replacement value of property lost, stolen or damaged in the move (not through the Tenant’s neglect) if insurance is not readily available.
2. “Comparable Unit” means a unit that is decent, safe, and sanitary; functionally equivalent and equal to or better than a Tenant’s current unit; adequate in size to accommodate the occupants; reasonably accessible to the Tenant’s place of employment; generally as well located with respect to public and commercial facilities, such as schools and shopping; not subject to unreasonable adverse environmental conditions; and affordable to the Tenant.
3. “Current Appraised Value” means the value of a Low-income Rental Housing Project determined in accordance with Section 7.
4. “Director” means the Director of MaineHousing.
5. “Low-income or Moderate-income” means gross income which does not exceed 80% of the area median income as determined by the U.S. Department of Housing and Urban Development.
6. “Low-income Rental Housing Project” means residential housing projects in which any of the units are subject to federal or state income eligibility restrictions and the rents within the projects are controlled, regulated or assisted by a federal or state agency pursuant to a regulatory or rental assistance agreement.
7. “MaineHousing” means the Maine State Housing Authority.
8. “Nonprofit Organization” means an entity that is exempt from state and federal taxation and has affordable housing as one of its purposes.
9. “Notice” means a written statement in plain easy to read format provided by hand-delivery or certified mail, return receipt requested.
10. “Tenant” or “Tenants” means the household living in a rental unit with financial assistance either in the form of rental assistance or rent restrictions, designed to make a rental unit affordable to Low-income or Moderate-income people.
11. “Uniform Relocation Act” means the Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs, 42 USC Chapter 61.

Applicability. This rule applies to owners of Low-income Rental Housing Projects who intend to take an action that would terminate rental assistance or rental restrictions, including but not limited to, prepayment of a loan, sale of the Low-income Rental Housing Project, or election to discontinue housing assistance payments. This rule does not apply when rental assistance or rental restrictions expire.

Notice. The owner of a Low-income Rental Housing Project who intends to take such action, must provide Notice to the Tenants of the project, MaineHousing, and the municipal housing authority, if any, for the municipality in which the project is located at least 90 days prior to entering into a contract for sale of the Low-income Rental Housing Project or taking any other action which will terminate rental assistance or affordability restrictions.

1. The Notice to the Tenant must include the following:

i. a statement of the action the owner intends to take;

ii. the anticipated date of the action;

iii. the impact on Tenant and the timing of the impact;

iv. whether governmental assistance is available to the Tenant, in what form, and how Tenants may obtain the assistance;

v. the name and telephone number of the municipality; the municipal housing authority, if any; and a legal services organization that can be contacted to request additional information about an owner’s responsibilities and the rights and options of the Tenant;

vi. whether the Tenants will be allowed to remain in their units at the same rent for 6 months following the loss of rental assistance or affordability restrictions; and

vii. whether the Tenant is eligible for relocation assistance as set forth below.

1. The Notice to MaineHousing and the municipal housing authority, if any, must include:

i. a copy of the above described Notice to the Tenant;

ii. a copy of any notices regarding the termination of assistance provided pursuant to Federal law;

iii. an itemized list of monthly operating expenses for the project;

iv. copies of the two most recent financial and physical inspection reports on the project, if any, filed with a federal, state, or local agency;

v. a description of capital improvements made within the two preceding calendar years at the project;

vi. the amount of project reserves;

vii. the rent paid for each unit and the subsidy, if any, paid by a governmental agency for each unit as of the date of the Notice;

viii. the vacancy rate at the project for each of the preceding two years; and

ix. the terms of assumable financing, if any, and the terms of the subsidy contract, if any.

1. An owner may at least 30 days prior to sending the above Notices, request MaineHousing to waive the Notice requirements outlined in 3.b.ii-ix. MaineHousing may waive such Notice requirements if MaineHousing is not interested in purchasing the property.

Update of Notice. The owner will notify the Tenants, MaineHousing, and the municipal housing authority, if any, within seven business days of a change in any of the items addressed in the Tenant’s Notice.

Right of First Refusal. MaineHousing has a right of first refusal to purchase the Low-income Rental Housing Project at its Current Appraised Value throughout the 90-day period.

Extension of Right of First Refusal. MaineHousing may extend the 90-day period by giving written notice to the owner within the 90-day period that MaineHousing intends to pursue the right of first refusal. The extension runs until 90 days after the Current Appraised Value is finally determined as outlined below.

Current Appraised Value. The Current Appraised Value of the Low-income Rental Housing Project is based on the value of the property based on its continued use as a Low-income Rental Housing Project as determined by an appraiser for MaineHousing and an appraiser for the owner. Both appraisers must be independent appraisers who are Certified General Real Property Appraisers licensed by the Maine Board of Real Estate Appraisers and have at least five (5) years of experience valuing income and rent restricted multifamily properties. Each party will pay for the cost of the appraiser selected by the party. If the difference between the two appraisals is within 10% of the lower of the two appraisals, the Current Appraised Value will be the average of the two appraisals. If the difference between the two appraisals is greater than 10% of the lower of the two appraisals, then the two appraisers will jointly select a third appraiser. If the two appraisers are unable jointly to select a third appraiser, either MaineHousing or the owner may, upon written notice to the other, request that the appointment be made by the American Arbitration Association or its designee. MaineHousing and the owner will share equally the cost of the third appraiser. The third appraiser will do its appraisal without reviewing the other appraisals. If the third appraisal is less than either of the first two appraisals, then the Current Appraised Value will be the average of the two lowest appraisals. If the third appraisal is greater than the first two appraisals, then the Current Appraised Value will be the average of the two highest appraisals. If the third appraisal falls between the previous two appraisals, the Current Appraised Value will be the value established by the third appraisal.

Termination of Right of First Refusal. If a bona fide purchaser enters into a contract with the owner to purchase the Low-income Rental Housing Project and to maintain the income and rent restrictions on the property for 30 additional years, MaineHousing’s right of first refusal terminates. If the property is not sold to the bona fide purchaser with the income and rent restrictions maintained on the property for 30 additional years, MaineHousing’s 90 day right of first refusal begins anew.

Six Month Stay or Relocation for Tenants. The owner and any purchaser must allow the current Tenants to remain in the units for 6 months from the loss of rental assistance or affordability restrictions, or the owner may relocate the Tenants to Comparable Units with comparable rents as set forth below. This section does not prevent termination of a tenancy for good cause in accordance with applicable state law nor abrogate a Tenant’s right to stay longer under a current lease or other document or law.

If the owner opts to provide relocation assistance, the relocation assistance will be provided as follows:

1. If the Tenant’s income is at or below 80% of area median income, the owner must do the following: (i) prior to sending the 90-day Notice, contact the person to be displaced to explain the benefits, ascertain needs, and offer transportation for up to 3 available Comparable Units and (ii) pay the greater of the Tenant’s Actual Reasonable Moving and Related Expenses or a one-time payment equal to the current fixed residential moving cost schedule established by the Federal Highway Administration or its successor agency pursuant to the Uniform Relocation Act.
2. If the Tenant’s income is at or below 60% of area median family income for the area, the owner shall in addition to 9.a above, make 12 months of replacement housing payments to the displaced person. The owner may make the payments in a lump sum or on a monthly basis. The amount of the replacement housing payments is the difference

between the rent and utilities at either the replacement unit or a Comparable Unit found by the Developer, whichever is less, and the monthly rent and utilities of the vacated unit multiplied by 12.

Rule Limitations

1. Other Laws. If this rule conflicts with any provision of applicable federal or state law, such federal or state law shall control.
2. Waivers. Upon determination for good cause, the Director of MaineHousing, or the Director’s designee, may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds for the waiver.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §4741.1, §4973, §4976.1 and §4977
• EFFECTIVE DATE: February 3, 2019 – filing 2019-027
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 35 State Low Income Housing Tax Credit Rule

Code Me. R. 99-346 Ch. 35 State Low Income Housing Tax Credit Rule {#sec-99-346-ch.-35 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 35}

Summary: The state low income housing tax credit law was enacted to provide funds for the development and preservation of multi-family affordable housing. Under the law, at least 80% of the credit to be allocated in a calendar year must be set aside for the construction or adaptive reuse of buildings for new rental units. Over time, MaineHousing must seek to allocate 30% of the credit for new rental units to senior housing and 20% of the credit for new rental units to “rural areas.” In addition, at least 10% of the credit to be allocated in a calendar year, must be set aside for qualified rural development preservation projects that incur at least $100,000 in improvements. This rule defines “rural areas” and provides for the allocation and administration of the credit and procedures for recapturing the credit for noncompliance.

Definitions.The following terms shall have the following meanings:

1. “Affordable Housing Project” means a qualified low-income housing project, as defined by Section 42(g) of the Code.
2. “Allocation of Credit Certification” means a certification that a project is allowed the State Low Income Housing Tax Credit and includes information required by the State of Maine Department of Administrative and Financial Services, Bureau of Revenue Services.
3. “Area Median Gross Income” has the same meaning as in Section 42 of the Code, as adjusted for family size.
4. “Code” means the United State Internal Revenue Code of 1986, as amended.
5. “Compliance Period” means 1. For a Qualified Maine Project, the period beginning on the date the first building of the project is placed in service and ending on the date that is 15 years after the last building in the project is placed in service; and 2. For a Qualified Rural Development Preservation Project, the period beginning on the date the rehabilitation of the first building of the project receives a certificate of occupancy, if required, or the date of Rural Development’s notice of final inspection of the building and ending on the date that is 15 years from the date the last building of the project receives a certificate of occupancy, if required, or the date of Rural Development’s notice of final inspection of the building.
6. “Credit-qualified Affordable Housing Project” means a Qualified Maine Project or a Qualified Rural Development Preservation Project, as applicable to the project.
7. “Credit Units” means all of the Federal Low-Income Housing Tax Credit units in a Qualified Maine Project or all of the units in a Qualified Rural Development Preservation Project that are assisted or financed by Rural Development.
8. “Difficult Development Area” has the same meaning as in Section 42(d) of the Code.
9. “Director” means the director of MaineHousing.
10. “Federal Low-Income Housing Tax Credit” means the federal tax credit as provided in Section 42 of the Code.
11. “MaineHousing” means the Maine State Housing Authority.
12. “Owner” is the person or entity that holds legal title to the Credit-qualified Affordable Housing Project.
13. “Qualified Allocation Plan” means the applicable Federal Low-Income Housing Tax Credit rule adopted by MaineHousing.
14. “Qualified Census Tract” has the same meaning as in Section 42(d) of the Code.
15. “Qualified Maine Project” means an Affordable Housing Project that is: 1. Either the construction of one or more new buildings or the adaptive reuse of one or more previously constructed buildings that have not been previously used for residential purposes; 2. Subject to a restrictive covenant requiring an income mix in which at least 60% of the units in the project to which credits are allocated are restricted to households with income at or below 50% of Area Median Gross Income; and 3. Eligible for the 30% present value credit as described in Section 42 of the Code as a result of tax-exempt financing described in Section 42(h)(4)(B) of the Code.
16. “Qualified Rural Development Preservation Project” means an Affordable Housing Project in which at least 75% of the residential units are assisted or financed under a Rural Development program.
17. “Rural Areas” are all parts of the State of Maine that are deemed rural for purposes of Rural Development multi-family housing (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=mfhc).
18. “Rural Development” means the United States Department of Agriculture, Office of Rural Development, Rural Housing Service.
19. “Rural Development Headquarters” means the national office of Rural Development.
20. “Rural Development Section 515 Properties” means rental housing projects financed under Section 515 of the Housing Act of 1949 (42 U.S.C. 1498).
21. “Rural Development State Director” means the state director of the Rural Development state office for the State of Maine.
22. “Senior Housing” means multifamily affordable rental housing units serving seniors that receive funding and project-based rental assistance under a Rural Development program or a United States Department of Housing and Urban Development multifamily elderly housing program or that meet the definition of “housing for older persons” under the federal Fair Housing Act, 42 United States Code, Section 3607(b)(2) and the Maine Human Rights Act.
23. “State Credit” means the tax credits awarded pursuant to the State Low Income Housing Tax Credit Law and this rule.
24. “State Low Income Housing Tax Credit Law” means36 M.R.S. §5219-WW and 30-A M.R.S. §4722, sub-§1, ¶GG, as may be amended from time to time.
25. “Supportive Housing” means housing to assist persons with special needs in achieving housing stability, including persons who have experienced chronic homelessness or who are displaced, have a disability, are a victim of domestic violence or who have other special housing needs.
26. “UPCS” means Uniform Physical Condition Standards, the physical inspection standards established by the United States Department of Housing and Urban Development for decent, safe and sanitary housing pursuant to 24 C.F.R. §5.703, as may be amended from time to time.

Set Asides.

1. Eighty percent of the State Credit available to be allocated in any calendar year, including any State Credit that has been carried forward or returned, is set aside for Qualified Maine Projects that use the Federal Low-Income Housing Tax Credit in conjunction with tax-exempt bonds issued by MaineHousing.

b. Ten percent of the State Credit first available to be allocated in any calendar year is set aside for Qualified Rural Development Preservation Projects, and if not allocated in that calendar year must be carried forward and be available to be allocated in subsequent calendar years for Qualified Rural Development Preservation Projects. Upon January 1, 2029, any amount previously set aside under this section 2.b. and not previously allocated to a Qualified Rural Development Preservation Project is released from the set aside and need not be allocated to a Qualified Rural Development Preservation Project.

Priorities.

1. In reserving and allocating the State Credit for Qualified Maine Projects, MaineHousing will prioritize: 1. use of the State Credit in Qualified Census Tracts and Difficult Development Areas; 2. efficient use of MaineHousing resources including without limitation the Federal Low-Income Housing Tax Credit, the State Credit, and 0% deferred financing resources to maximize the number of new residential units created; 3. project readiness including approvals and financing in place; 4. over time, 30% of the cumulative State Credit for Qualified Maine Projects Credits allocated to Senior Housing and 20% of the cumulative State Credit for Qualified Maine Projects allocated to Rural Areas; and 5. projects with an occupancy preference for persons who qualify for Supportive Housing in the greater of 4 units or 20% of the total number of units.

In reserving and allocating State Credit for Qualified Rural Development Preservation Projects, MaineHousing will prioritize projects that:

• 1. are Rural Development Section 515 Properties being transferred to a new Owner in accordance with Rural Development requirements; 2. incur a minimum of $100,000 in property improvements in accordance with the State Low Income Housing Tax Credit Law; and 3. are not claiming the Federal Low Income Housing Tax Credit.

Notice of Reservation of Credit.

1. MaineHousing will issue a notice of reservation of State Credit for Qualified Maine Projects as follows:

i. the notice of reservation will be issued at the same time as the Notice to Proceed described in the Qualification Allocation Plan;

ii. the notice of reservation will remain in effect as long as the Notice to Proceed remains in effect; and

iii. the notice of reservation may include State Credit to be allocated in future years.

1. MaineHousing will issue a notice of reservation of State Credit for Qualified Rural Development Preservation Projects after receipt of the following:

i. An approval of transfer issued by Rural Development Headquarters;

ii. Current appraisal and capital needs assessment in compliance with Rural Development requirements;

iii. Repair plan approved by Rural Development; and

iv. Any additional documents needed by MaineHousing to determine the amount of credit.

Allocation of Credit.

1. MaineHousing will issue an Allocation of Credit Certification for a Qualified Maine Project after: 1. MaineHousing issues a Form 8609 for the Federal Low Income Housing Tax Credit; and 2. A restrictive covenant meeting the requirements of the State Low Income Housing Tax Credit Law and this rule is executed by the Owner and MaineHousing and recorded in the appropriate registry of deeds.
2. MaineHousing will issue an Allocation of Credit Certification for a Qualified Rural Development Preservation Project after:

i. receipt of a notice of final inspection from the Rural Development State Director;

ii. Calculation by MaineHousing of the amount of State Low Income Housing Tax Credit to be awarded to the Qualified Rural Development Preservation Project; and

iii. A restrictive covenant meeting the requirements of the State Low Income Housing Tax Credit Law and this rule is executed by the Owner and MaineHousing and recorded in the appropriate registry of deeds.

Recapture.

1. MaineHousing may recapture State Credit in accordance with this section if any one or more of the following occurs: 1. For a Qualified Maine Project, failure to comply with any one or more of the following as determined in accordance with Section 42(g) of the Code; 1. The applicable income limitation on any of the Credit Units; 2. The next available unit rule; or 3. The rent restriction on any of the Credit Units; 2. For a Qualified Rural Development Preservation Project, a notice of violation or default of the Rural Development financing or rental assistance contract for the project that is not cured within any cure period specified by Rural Development in the notice, as may be extended by Rural Development; 3. Failure to maintain the project in a safe, decent, sanitary condition and in good repair in accordance with UPCS; 4. Disposition of the project through sale, foreclosure, deed-in-lieu of foreclosure, or otherwise unless the project continues to be a Credit-qualified Affordable Housing Project; 5. Failure to comply with the minimum election made by Owner pursuant Section 42(g)(1) of the Code or the project otherwise fails to qualify as an Affordable Housing Project, as determined by MaineHousing; 6. Loss of the project, any of the Credit Units, or any required amenities included in the eligible basis of the project that MaineHousing determines are essential to the operation of the project through damage, destruction, eminent domain, condemnation, or other action or event; 7. Dissolution, liquidation, termination of existence, insolvency, or business failure of or assignment for the benefit of creditors by Owner; 8. Any bankruptcy, receivership, reorganization, arrangement, insolvency, dissolution, or liquidation proceeding, or any other proceedings for the relief of debtors, under the U.S. Bankruptcy Code or any similar law, state or federal, whether now or hereafter existing, is instituted by or against Owner; or 9. Any other action or event that results in the project no longer being maintained as a Credit-qualified Affordable Housing Project.

The event of noncompliance in the above clause iv. of this subsection if the project will not continue to be a Credit-qualified Affordable Housing Project and the events of noncompliance in the above clauses v. through ix. of this subsection are considered egregious noncompliance for purposes of this section.

1. MaineHousing will not recapture State Credit for any noncompliance that is corrected by Owner before MaineHousing discovers the noncompliance.
2. MaineHousing will give Owner written notice of noncompliance and a reasonable period of time established by MaineHousing to correct the noncompliance. The notice will specify each event of noncompliance and the period of time for correcting the noncompliance, which may be different for each event. The period of time for correcting an event of noncompliance may be extended by MaineHousing. Any extension will be written and provide the reason for the extension.
3. If all of the events of noncompliance specified in the notice are corrected within their respective correction periods, MaineHousing will not recapture State Credit.
4. If any of the events of noncompliance specified in the notice are not corrected within the respective period for correcting the noncompliance, MaineHousing will recapture State Credit. Except for egregious noncompliance set forth in subsection a. above, MaineHousing will defer recapture of the State Credit until the earliest of: 1. The end of the Compliance Period; 2. Disposition of the project through sale, foreclosure, deed-in-lieu of foreclosure, or otherwise; 3. Transfer of any interest in Owner that must be approved by MaineHousing pursuant to the MaineHousing Transfers of Ownership Interests Rule ; 4. MaineHousing determines there is a pattern of uncorrected noncompliance by the Owner; or 5. Any egregious noncompliance set forth in subsection a. above.
5. The amount of the recapture of State Credit will be calculated when it is collected as follows: 1. The amount of recapture is the difference between (a) the total State Credit allocated to the project and (b) an amount equal to the product of the total State Credit allocated to the project multiplied by a fraction, the numerator of which is the number of months the project remained a Credit-qualified Affordable Housing Project since the project was placed in service and the denominator of which is 180, which difference is then prorated in proportion to the number of Credit Units that do not remain in compliance. 2. The number of months in which the project has remained a Credit-qualified Affordable Housing Project is the Compliance Period less the period of noncompliance. The period of noncompliance is the period of time from the first day of the month in which the noncompliance first occurred, not when it was discovered, to the last day of the month in which the noncompliance is corrected. If there are multiple events of noncompliance, the period of noncompliance is the first day of the first month in which any event of noncompliance, not corrected within the applicable correction period, began to the last date of the month in which all noncompliance is corrected. If recapture is collected before the end of the Compliance Period for any egregious noncompliance or other reason that results in the project no longer being maintained as a Credit-qualified Affordable Housing Project, the period of noncompliance will also include the period beginning on the first day of the month in which MaineHousing notifies Owner that recapture is due and ending on the last day of the Compliance Period.
6. MaineHousing will give Owner written notice of the recapture amount and how the recapture amount was calculated. Owner must pay the recapture amount within the period of time set forth in the notice, which will not be less than 30 days and may be extended in writing by MaineHousing. If Owner does not pay the full amount of the recapture within the required period of time, MaineHousing may lien the project for the recapture amount plus accrued interest at the pre-judgment interest rate, in effect on the date of the lien as calculated in accordance with 14 M.R.S. §1602-B, until the lien is paid in full as set forth in the State Low Income Housing Tax Credit Law.
7. All notices to Owner will be sent by registered mail or certified mail, return receipt requested, to Owner’s last known address and will be deemed received within three (3) business days of being mailed.

General.

1. MaineHousing may publish program guides for the allocation of the State Credit in accordance with the State Low Income Housing Tax Credit Law and this rule.
2. MaineHousing will track annual allocations and provide information required by the State of Maine Department of Administrative and Financial Services, Bureau of Revenue Services to determine eligibility and amount of credit allocated each calendar year.
3. MaineHousing will charge a reasonable fee for each State Credit project to defray its increased costs due to the State Credit.

Rule Limitations.

1. Other Laws. If this rule conflicts with any provision of applicable federal or state law, such federal or state law shall control.
2. Waivers. Upon determination for good cause, the Director of MaineHousing, or the Director’s designee, may, subject to statutory limitations, waive any provision of this rule. Each waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds for the waiver.
3. Full Discretion. MaineHousing is entitled to the full discretion allowed by law in making all decisions and interpretations under this rule.
4. Final Agency Action.The Director of MaineHousing, individually or by exercise of the delegation of powers contained in the Act, shall make all decisions and take all action necessary to implement this rule. Such action of the Director shall constitute final agency action.
5. Freedom of Access Act. MaineHousing is subject to the Freedom of Access Act, 1 M.R.S.A. §401 et seq. , which requires the disclosure of all information provided to MaineHousing that is not specifically excluded, such as confidential information under the Act. MaineHousing shall not be liable for the disclosure of any information that it determines must be disclosed under the Freedom of Access Act.
6. Liability. Compliance with State Low Income Housing Tax Credit Law is the responsibility of the Owner. MaineHousing is in no way responsible for an Owner’s compliance or liable for an Owner’s noncompliance. Any allocation, review or inspection by MaineHousing and any determination made by MaineHousing pursuant to this rule is for the sole benefit of MaineHousing. No liability or responsibility for Owner compliance with applicable requirements and no representation or warranty of a project’s feasibility or viability, eligibility for State Credit, or compliance shall be implied or construed from any such actions and determinations by MaineHousing.
7. Headings/Context. The headings in this rule are for convenience only and do not define or limit the scope of the provisions of this rule.

BASIS STATEMENT: This replacement rule repeals and replaces in its entirety the current State Low Income Housing Tax Credit Rule. The rule provides for the allocation and administration of the state affordable housing tax credit, a refundable credit for the development and preservation of certain affordable multifamily rental housing in Maine. The law establishing the credit requires MaineHousing to recapture credit for noncompliance and provides for a lien to enforce repayment of recapture. The replacement rule adds procedures for determining what constitutes noncompliance that causes recapture and when recapture is calculated and collected. The new procedures limit recapture to material noncompliance that is not corrected within a reasonable period of time and, except in cases of severe or repeated noncompliance, defer recapture to the end of the 15-year compliance period and limit recapture to the period of noncompliance to maintain the affordability of the projects, particularly the very low-income units, to the greatest extent possible during the compliance period and to minimize the financial impact on the projects.

PUBLIC COMMENT:

Notice of Agency Rule-making Proposal was published on MaineHousing’s website and in appropriate newspapers on Wednesday, April 27, 2022, and sent to interested parties on Thursday, April 21, 2022.

MaineHousing held a public hearing on Tuesday, May 17, 2022, to receive testimony on the proposed rule. Written comments were accepted until 5:00 p.m. EST on Friday, May 27, 2022.

No one testified or provided written comment on the rule.

History

• STATUTORY AUTHORITY: 30-A M.R.S. §§4722(1)(GG) and 4741(1) and 36 M.R.S. §5219-WW.
• FISCAL IMPACT NOTE: $10,000,000 per year tax credits.
• EFFECTIVE DATE: JULY 13, 2022
• APAO ACCESSIBILITY CHECK: July 24, 2025

Chapter 36 Housing First Program Administrative Responsibility Rule

Code Me. R. 99-346 Ch. 36 Housing First Program Administrative Responsibility Rule {#sec-99-346-ch.-36 omnilex-key=us-me-regs-official--dept-independent-agencies--99-346 Ch. 36}

Purpose of Rule. This is a joint rule by the State of Maine Department of Health and Human Services and Maine State Housing Authority setting forth the responsibilities of each agency and their joint responsibilities in administering the Housing First Program, a program to facilitate the delivery of support and stabilization services to residents of properties in the State of Maine that are established or developed to provide permanent housing for persons who are experiencing chronic homelessness.

Section 1. Definitions. The following terms have the following meanings:

1. “Affiliate” means with respect to an entity, another entity which it controls or is controlled by, or with which it is under common control, control being an ownership interest, a contractual right, or other interest with respect to an entity that confers upon its holder the authority or right, directly or indirectly, to manage or otherwise direct any material part of the business or financial affairs and policies of the entity or the operation of the entity’s business or assets.
2. “Chronic Homelessness” means a situation in which a person is living in a place not meant for human habitation, including emergency shelters, for at least twelve (12) months and for whom homelessness is correlated with a condition that makes accessing services and maintaining housing a significant challenge such as substance use disorder or a behavioral health condition, and includes a situation in which a person has been living intermittently in an institutional care facility, including but not limited to a correctional facility or health treatment facility, but is otherwise living in a place not meant for human habitation.
3. “Department” means the Department of Health and Human Services, an agency of the State.
4. “Existing Site-based Housing First Properties” mean the 30-unit residential rental property located at 52 Frederic Street in Portland, Maine now or formerly known as Logan Place, the twenty-five (25) independent apartment units in the building located at 190 Valley Street in Portland, Maine now or formerly known as Florence House, and the 30-unit residential rental property located at 72 Bishop Street in Portland, Maine now or formerly known as Huston Commons.
5. “Housing First Fund” means the fund established and administered pursuant to the Housing First Law and this rule.
6. “Housing First Law” means 22 M.R.S. § 20-A (2023).
7. “Housing First Program” means the program established pursuant to the Housing First Law to facilitate the delivery of support and stabilization services to residents of properties in the State that are established or developed to provide permanent housing for persons who are experiencing Chronic Homelessness.
8. “Housing First Team” means a team of entities described in paragraph B of subsection 2 of section 2 of this rule that together will develop, own, and operate a Site-based Housing First Property.
9. “Housing Stability Services” means services offered to residents of permanent housing for persons who are experiencing Chronic Homelessness where supportive services are not necessarily provided on site or twenty-four (24) hours per day, which services must be available to residents at least twenty (20) hours each week, must adequately meet the needs of the residents to build independent living skills, maintain housing, and access necessary community-based services, and can include outreach to persons experiencing Chronic Homelessness to establish connections and provide support that may result in securing stable permanent housing, including Site-based Housing First Properties.
10. “MaineCare” means the joint federal-state Medicaid program established at Title XIX of the Social Security Act and administered by the Department in the State pursuant to 22 M.R.S. § 3173.
11. “MaineHousing” means the Maine State Housing Authority, a public body corporate and politic and an instrumentality of the State.
12. “MaineHousing Loan Program” means a funding program established by MaineHousing pursuant to subsection 3 of section 4 of this rule.
13. “On-site Housing Support and Stabilization Services” means support and stabilization services for persons experiencing Chronic Homelessness that are available on-site at Site-based Housing First Properties twenty-four (24) hours each day, seven (7) days each week and are designed to build independent living skills and connect persons with community-based services, and can also include outreach to persons experiencing Chronic Homelessness to establish connections and provide support to facilitate occupancy at a Site-based Housing First Property.
14. “Qualified Service Provider” means a service provider that the Department has determined is qualified to provide On-site Housing Support and Stabilization Services pursuant to paragraph B of subsection 1 of section 3 of this rule.
15. “Site-based Housing First Property” means permanent residential rental housing in the State of Maine with On-site Housing Support and Stabilization Services for individuals and families who at the time of initial occupancy were experiencing Chronic Homelessness.
16. “State” means the State of Maine.

Section 2. Joint Responsibilities. The Department and MaineHousing will jointly perform the following responsibilities in administering the Housing First Program:

Site-based Housing First Properties. Eligibility of Site-based Housing First Properties for funding from the Housing First Fund will be determined by the Department and MaineHousing pursuant to this rule.

Housing First Teams.

• • 1. Other than Existing Site-based Housing First Properties, all Site-based Housing First Properties must be developed, owned and operated by a Housing First Team that is selected pursuant to this subsection. 2. A Housing First Team must include an affordable housing developer, an owner, a property management company, and a Qualified Service Provider. One entity or an Affiliate of any entity may serve in more than one capacity, except the property manager and the Qualified Service Provider cannot be Affiliates; they must be completely separate entities. 3. The Department and MaineHousing will establish a competitive process for selecting Housing First Teams which may be implemented through one or more rounds or processes as determined by the Department and MaineHousing. Housing First Teams will be selected based on their knowledge, experience, capacity, and ability to collaborate in developing and operating affordable housing and supportive housing for persons who are homeless, including persons experiencing Chronic Homelessness. 4. MaineHousing will select Housing First Teams, including the Qualified Service Provider, pursuant to the competitive process established pursuant to this subsection. MaineHousing will consult with the Department as needed in selecting Housing First Teams.

Location of Site-based Housing First Properties. The Department and MaineHousing will designate areas in the State where Site-based Housing First Properties will be located to most effectively and efficiently address Chronic Homelessness in the State based on data available to the Department and MaineHousing about the current concentrations of Chronic Homelessness in the State.

Operation of Site-based Housing First Properties. The Department and MaineHousing will establish tenant selection criteria and operational requirements for Site-based Housing First Properties to ensure tenant protection and safety and compliance with applicable federal, state, and local laws, including without limitation fair housing laws.

Enforcement. The Department and MaineHousing will cooperate in administering and enforcing compliance with the Housing First Program, the MaineHousing Loan Program, and the policies and procedures of the Department established pursuant to this rule.

Reporting. The Department and MaineHousing will prepare and submit a report annually no later than February 1, beginning February 1, 2025, to the joint standing committee or joint select committee of the State Legislature having jurisdiction over housing matters with the information required under the Housing First Law and such other information as may be required by the committee with oversight to evaluate the effectiveness of the Housing First Program.

Section 3. Department Responsibilities. The Department has the following additional responsibilities in administering the Housing First Program:

Supportive Services.

The Department will establish and administer policies and guidelines for On-site Housing Support and Stabilization Services and Housing Stability Services that are eligible for funding from the Housing First Fund and the qualifications of the providers of those services. The services must be provided by or include coordination with a MaineCare provider.

The Department will select qualified providers of On-site Housing Support and Stabilization Services and qualified providers of Housing Stability Services pursuant to the qualifications established by the Department pursuant to paragraph A of this subsection and the Department’s procurement policies and procedures.

The Department will establish and administer payment models for On-site Housing Support and Stabilization Services and Housing Stability Services that are eligible for funding from the Housing First Fund. The payment models will maximize eligibility for reimbursement under existing and future federal programs that provide funding for On-site Housing Support and Stabilization Services and the Housing Stability Services eligible for funding under the Housing First Program, including but not limited to MaineCare and the existing housing outreach and member engagement provider program administered by the Department. Funding from the Housing First Fund is intended to supplement, not supplant, the reimbursement or funding available under these existing and future federal programs.

The Department will enter into contracts with the providers of On-site Housing Support and Stabilization Services and Housing Stability Services that the Department has determined are qualified pursuant to this subsection.

Technical Assistance. The Department will provide technical assistance to service providers that receive funding under the Housing First Program and will assist providers in navigating reimbursement under MaineCare and other federal programs for those services.

Housing First Fund.

The Department will administer the Housing First Fund. An account separate from the Housing First Fund will be established to provide funding for Housing Stability Services and will be administered by the Department.

On or before July 1 of each year, the Department will determine the amount necessary to pay for On-site Housing Support and Stabilization Services provided at each Site-based Housing First Property that is eligible for funding from the Housing First Fund pursuant to the service contracts between the Department and the Qualified Service Providers for such Site-based Housing First Properties, or the anticipated cost of the On-site Housing Support and Stabilization Services based on the payment models established by the Department pursuant to this rule if a service contract has not been executed, for the current fiscal year plus the anticipated amount needed for the next fiscal year. The Department will consult with MaineHousing about the projected initial occupancy and lease-up and annual occupancy of Site-based Housing First Properties to make the determination under this paragraph.

Beginning on July 1 of each year, starting July 1, 2025, as amounts in the Housing First Fund become available, the Department will distribute those amounts for the following purposes:

First, to deposit the total annual cost of salaries and benefits for two permanent, full-time positions in the Department required to be established pursuant to the Housing First Law to administer the Housing First Program in the appropriate account for the Department to pay such costs;

Second, to deposit $1,000,000 to the account established pursuant to paragraph A of this subsection, which the Department will use to pay for Housing Stability Services that the Department determines are eligible pursuant to this rule;

Third, to pay for the On-site Housing Support and Stabilization Services that the Department has budgeted pursuant to paragraph B of this subsection plus any additional amounts needed to pay for On-site Housing Support and Stabilization Services that are agreed to in writing by the Department and MaineHousing; and

Finally, no later than June 30 of each year, any remaining amounts in the Housing First Fund will be transferred to MaineHousing to provide technical assistance pursuant to subsection 1 of section 4 of this rule and funding for Site-based Housing First Properties pursuant to subsection 3 of section 4 of this rule.

Existing Site-based Housing First Properties. Services offered at an Existing Site-based Housing First Property are eligible for funding under the Housing First Program to the extent (i) the current service funding for the Existing Site-based Housing First Property is reduced by more than fifty percent (50%) or eliminated and (ii) the owner and service provider of the Existing Site-based Housing First Property after commercially reasonable efforts are unable to replace such service funding with another source, provided that the Existing Site-based Housing First Property complies with the requirements of the Housing First Program, including the Housing First Law, this rule, and the policies and procedures and payment models established by the Department for On-site Housing Support and Stabilization Services.

Monitoring. The Department will monitor the service providers for compliance with the Housing First Program, including the policies and procedures and payment models established by the Department for On-site Housing Support and Stabilization Services and Housing Stability Services.

Qualified Service Provider Changes. Any withdrawal, replacement, or addition of a Qualified Service Provider of a Housing First Team selected pursuant to this rule, including any such change resulting from an enforcement action or a sale or transfer of the Site-based Housing First Property, must be approved in writing by the Department prior to the change.

Enforcement.

Site-based Housing First Properties.

(1) The Department is responsible for enforcing compliance with the requirements for On-site Housing Support and Stabilization Services and the qualifications of providers of those services, pursuant to the Department’s rules, guidelines, policies, procedures and contracts governing On-site Housing Support and Stabilization Services, and all other requirements of this rule that are the Department’s responsibility.

(2) The Department will give MaineHousing a copy of each written notice of violation issued by the Department concerning On-site Housing Support and Stabilization Services at a Site-based Housing First Property.

(3) The Department will coordinate with MaineHousing to enforce compliance to ensure the continued operation of the Site-based Housing First Property.

(4) If the violation is not corrected within the period specified for correction in the notice of violation, which period will depend on the nature of the violation, the Department can exercise all rights and remedies under the Department’s rules, policies, procedures, and contracts.

Housing Stability Services. The Department is responsible for enforcing compliance with the requirements for Housing Stability Services and the qualifications of providers of those services pursuant to the Department’s rules, guidelines, policies, procedures and contracts governing the Housing Stability Services.

Recordkeeping. The Department will maintain records of its selection of qualified providers of On-site Housing Support and Stabilization Services and Housing Stability Services, the specific On-site Housing Support and Stabilization Services and Housing Stability Services provided at each property and the providers of and payment for those services, and the Department’s monitoring and enforcement responsibilities under this rule pursuant to the State’s record retention requirements as they pertain to the Department.

Section 4. MaineHousing Responsibilities. MaineHousing has the following additional responsibilities in administering the Housing First Program:

Technical Assistance. MaineHousing will provide technical assistance with respect to capital and planning issues associated with developing Site-based Housing First Properties.

Site-based Housing First Properties.

A. The number of Site-based Housing First Properties developed by each Housing First Team and the number of units in each Site-based Housing First Property must be approved by MaineHousing.

B. The specific site for each Site-based Housing First Properties must be within the areas designated by the Department and MaineHousing pursuant to subsection 3 of section 2 of this rule and must be approved by MaineHousing.

C. MaineHousing will establish minimum building design requirements for Site-based Housing First Properties. All Site-based Housing First Properties must comply with these requirements.

MaineHousing Loan Program. MaineHousing will establish and implement one or more programs to provide funding for costs associated with the development, acquisition, construction of Site-based Housing First Properties approved by MaineHousing pursuant to this rule.

A. The program(s) will identify the available source(s) of funding, eligible uses of funding, funding caps based on cost reasonableness and efficient use of available funding, underwriting criteria, affordability and use restrictions, site eligibility, design and construction requirements, project reserve requirements, and the requirements of the funding sources and the Housing First Program. The program(s) will limit funding for each Site-based Housing First Property to the extent funding for the program(s) is available, the funding is necessary for the financial feasibility and long-term viability of the Site-based Housing First Property, and there are other available funding sources.

The funding may include, but is not limited to, interest bearing debt financing, federal low-income housing tax credits, and no-interest deferred payment debt funded with the portion of the Housing First Fund transferred by the Department to MaineHousing.

The program(s) will require the owner of each Site-based Housing First Property to enter into a restrictive covenant to be recorded in the appropriate registry of deeds with priority over all mortgages and other encumbrances on the Site-based Housing First Property obligating the owner, its successors and assigns, to maintain the property as a Site-based Housing First Property for at least 45 years, unless (1) MaineHousing and the Department determine there is no longer a market need for the Site-based Housing First Property, or (2) there is no service funding available for the Site-based Housing First Property under the Housing First Fund or other source after reasonable efforts made by the owner of and the service provider for the Site-based Housing First Property to secure alternative service funding.

The program(s) will comply with all applicable existing rules and regulations governing MaineHousing’s funding programs, including but not limited to MaineHousing’s rules Chapter 29, Multi-family Mortgage Loans , 99-346 C.M.R. Ch. 29, and Chapter 16, Low-Income Housing Tax Credit Rule , 99-346 C.M.R. Ch. 16, in effect at the time the program(s) are established.

Funding from MaineHousing is not required for a Site-based Housing First Property to be eligible for funding from the Department under the Housing First Program.

Rental Assistance. MaineHousing may provide rental assistance for Site-based Housing First Properties that are funded under a MaineHousing Loan Program, which may include but is not limited to Section 8 project-based vouchers pursuant to MaineHousing’s Housing Choice Voucher Program and governing federal laws and regulations.

Any rental assistance from MaineHousing will be limited by funding availability, other sources of project-based rental assistance available to a Site-based Housing First Property, and the applicable laws, regulations, and program requirements governing the rental assistance, and will be no more than is necessary to support the operating costs of a Site-based Housing First Property as determined by MaineHousing pursuant to applicable federal subsidy layering regulations and the underwriting criteria of the applicable MaineHousing Loan Program.

Monitoring. MaineHousing will monitor the design, construction, management, and operation of the Site-based Housing First Properties for compliance with all requirements of the applicable MaineHousing Loan Program, any rental assistance provided by MaineHousing, the Housing First Program, including without limitation the tenant selection criteria and operational requirements of the Housing First Program established by the Department and MaineHousing, and other applicable local, state and federal laws, rules and regulations.

Changes to Site-based Housing First Properties. Any withdrawal, replacement, addition, or other change of affordable housing developer, owner, or property management company of a Housing First Team selected pursuant to this rule, including any change resulting from any voluntary or involuntary sale or transfer of the Site-based Housing First Property or any change in an ownership interest in the Site-based Housing First Property, must be approved in writing by MaineHousing prior to the change.

Enforcement.

MaineHousing is responsible for enforcing compliance with the process for selecting Housing First Teams, the requirements set forth in subsection 2 of section 4 of this rule, the requirements of the applicable MaineHousing Loan Program and the funding provided thereunder and any rental assistance provided by MaineHousing, the tenant selection criteria and operational requirements for Site-based Housing First Properties established pursuant to this rule, and all other requirements of this rule that are MaineHousing’s responsibility.

MaineHousing will give the Department a copy of each written notice of violation or default issued by MaineHousing to the owner of a Site-based Housing First Property.

MaineHousing will coordinate with the Department to enforce compliance to ensure the continued operation of the Site-based Housing First Property.

If the violation or default is not corrected within the period specified for correction in the notice, which period will depend on the nature of the violation or default, MaineHousing can exercise any and all rights and remedies under the instruments and documents executed in connection with the funding and rental assistance from MaineHousing and under applicable laws, rules and regulations.

Recordkeeping. MaineHousing will maintain records of the selection of Housing First Teams, the development, construction, and operation of Site-based Housing First Properties, and MaineHousing’s monitoring and enforcement responsibilities through the period ending six (6) years after the end of the Housing First Program.

Section 5. General.

Joint Rule. This rule is a joint rule with the Department. Reference is made to Chapter 20 of the Department’s Office of Behavioral Health rules, Housing First Program Administrative Responsibility Rule , 14-118 C.M.R. Ch. 20.

Other Laws. If this rule conflicts with any provision of applicable federal or state law, such federal or state law will control.

Waivers.

Upon determination for good cause, the Commissioner of the Department may, subject to statutory limitations, waive any requirement of the rule within the scope of responsibility of the Department under this rule. Each waiver must be in writing and supported by documentation of the pertinent facts and grounds for the waiver. The Department may not waive any requirement of the rule within the scope of responsibility of MaineHousing under any circumstances. The Department may only waive any requirement involving a joint responsibility under the rule with the prior written approval of MaineHousing.

Upon determination for good cause, the Director of MaineHousing may, subject to statutory limitations, waive any requirement of the rule within the scope of responsibility of MaineHousing under this rule. Each waiver must be in writing and supported by documentation of the pertinent facts and grounds for the waiver. MaineHousing may not waive any requirement of the rule within the scope of responsibility of the Department under any circumstances. MaineHousing may only waive any requirement involving a joint responsibility under the rule with the prior written approval of the Department.

Context. The headings and captions in this rule are for convenience only and do not affect the meaning, construction, or effect of the provisions of this Agreement. The singular form of any word used or defined herein shall include the plural.

BASIS STATEMENT: The Housing First Program Administrative Responsibility Rule is a joint rule by the State of Maine Department of Health and Human Services, Office of Behavioral Health (the “Department”) and Maine State Housing Authority (“MaineHousing”) setting forth the responsibilities of each agency and their joint responsibilities in administering the State of Maine’s Housing First Program (the “Program”). The Program provides funding for support and stabilization services for residents of properties in the State of Maine that provide permanent housing for persons who are experiencing chronic homelessness.

The Department is responsible for administering the funding under the Program. The funding is primarily for 24-hour on-site supportive services, except for an annual amount that is set aside for housing stability services available for residents at least 20 hours each week but not necessarily on site or 24 hours per day. Any funding that is not used for these supportive services and the Department’s costs of administering the Program will be transferred to MaineHousing to develop affordable permanent housing with 24-hour on-site supportive services, which initially will be the majority of the funding to produce the housing where these services will be provided.

The Department is also responsible for establishing and administering the requirements for the two types of supportive services that are eligible for funding under the Program, the payment models for the services, and the qualifications of the providers of the services. The Department is obligated to maximize eligibility for reimbursement under existing and future federal programs that provide funding for the supportive services, such as MaineCare, to supplement and expand the use of the funding and to provide technical assistance to providers in navigating these federal programs.

MaineHousing will work with the Department to administer the permanent housing with 24-hour on-site services. The Department and MaineHousing will identify the areas in the State where the properties should be located to best serve persons who are chronically homeless. The funding under the Program will only be available to teams that are selected under one or more competitive processes and consist of a service provider that the Department has determined is qualified through its procurement process together with an experienced affordable housing developer and property manager that MaineHousing, in consultation with the Department as needed, determines can work together to successfully develop, own and operate permanent housing with 24-hour on-site services for persons who are chronically homeless. MaineHousing will provide technical assistance, approve specific sites, develop construction standards to ensure successful operation and delivery of services at the properties, and offer financing for the development of the properties, including Program funding transferred to MaineHousing, other capital funding, and low-income housing tax credits.

The rule delegates oversight of the service providers to the Department, but the Department and MaineHousing will work together to develop, administer, and enforce the operational guidelines for the permanent housing with 24-hour on-site supportive services to effectively address chronic homelessness and ensure long-term viability of these properties. The rule also addresses other administrative responsibilities of the Department and MaineHousing, including recordkeeping and reporting requirements.

Public Notice, Hearing, and Comment

The Notice of Agency Rulemaking Proposal (MAPA-3) was published on the Maine Secretary of State website on October 30, 2024 and published in the October 30, 2024 editions of the Bangor Daily News, Portland Press Herald, Lewiston Sun Journal, and Central Maine Newspapers. MaineHousing also sent the Notice of Agency Rulemaking Proposal and the proposed rule to interested parties on October 22, 2024 and October 23, 2024 and posted the proposed rule and notice of the public hearing on the Maine State Housing Authority website on October 30, 2024.

A joint public hearing was held by the Department and MaineHousing at 10:00 a.m. on November 19, 2024 at MaineHousing’s office. No oral or written comments were presented at the public hearing. The public comment period remained open until 5:00 p.m. on December 2, 2024. The Department and MaineHousing did not receive any comments.

History

• STATUTORY AUTHORITY: 22 M.R.S. § 20-A (2023) and 30-A M.R.S. § 4741(1)
• FISCAL IMPACT NOTE: The Housing First Program Administrative Responsibility Rule will not impose any cost on municipalities or counties for implementation or compliance.
• EFFECTIVE DATE: December 25, 2024
• APAO ACCESSIBILITY CHECK: July 24, 2025

99-420 Maine Turnpike Authority

Chapter 1 Rules Governing the Use of the Maine Turnpike

Code Me. R. 99-420 Ch. 1 Rules Governing the Use of the Maine Turnpike {#sec-99-420-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--99-420 Ch. 1}

SUMMARY: This chapter contains provisions describing speed limits, driving and parking practices, activities and vehicles prohibited, evasion of fare, damaging Turnpike property and permits for overlimit vehicles on the Maine Turnpike.

1. Speed Limits

Except where an exception is provided for by this rule, the maximum speed of motor vehicles on the Turnpike shall be limited to seventy (70) miles per hour, and the minimum speed shall not be less than forty-five (45) miles per hour. Notwithstanding the foregoing, the maximum speed of motor vehicles on the following portions of the Turnpike shall be as specified:

On any portion of the Turnpike lying south of mile marker .7, the maximum speed shall be fifty-five (55) miles per hour.

On any portion of the Turnpike lying north of mile marker.7 and south of I-95 mile marker 2.1 the maximum speed shall be sixty-five (65) miles per hour.

On any portion of the Turnpike lying north of mile marker 44.1 and south of mile marker 52.3 the maximum speed shall be sixty (60) miles per hour.

On the Falmouth Spur the maximum speed shall be sixty (60) miles per hour. The Falmouth spur, for purposes of this section, is defined as the segment of highway owned by the Maine Turnpike Authority between the median opening at mile marker F3.8 to the Railroad Bridge overpass at mile marker F0.5 near the ramps connecting that segment of the highway to the Turnpike mainline.

The Authority may designate different maximum speeds for construction, transitional or other reduced speed zones where operational conditions warrant, and during periods of adverse atmospheric or weather conditions. Maximum speeds within construction, transitional or reduced speed zones or during any period of adverse atmospheric or weather conditions shall be in accordance with signs displayed for such zones. All regulatory and zoning signs displayed on the Turnpike shall be obeyed.

Speed zones through toll plaza lanes where toll booths are present are reduced speed zones and shall be defined as the area 75 feet in front of a toll booth and shall continue to a point 75 feet beyond the rear of a toll booth. The maximum speed through these zones shall be ten (10) miles per hour.

Regulatory signs for reduced toll plaza speed zones shall be placed in advance of, at the beginning, and at the end of the defined speed zone. All regulatory signs displayed at the toll plaza shall be obeyed.

The Authority may designate specific lanes where tolls or information necessary for the collection of tolls are collected but which do not allow for physical payment of a toll in cash from that lane as electronic toll collection only lanes. The maximum speed in electronic toll collection only lanes shall be ten (10) miles per hour unless otherwise signed by the Authority, in which case the maximum speed shall be as signed.

Motor vehicles shall not be driven in excess of the mechanical limits of vehicles or tires. If traffic, weather, pavement or other conditions render the maximum allowable speed hazardous, the speed of motor vehicles shall be reduced consistent with such conditions.

1-A. Lane Restrictions

In order to improve the air quality in southern Maine, trucks, including truck tractors but excluding pickup trucks, all as defined in 29-A M.R.S.A. §101, may only operate in the two farthest right hand lanes on any section of the Turnpike south of Mile Marker 44 that consists of three lanes in each direction.

2. One Way Traffic

All traffic shall travel the dual or triple lanes to the right of the median strip; travel to the left of the median strip is prohibited. All traffic lanes, deceleration lanes, acceleration lanes, shoulders, and other travel ways on the Turnpike are one-way, and all motor vehicles leaving the traffic lanes, to a Toll Plaza or service station, shall leave from the right hand traffic lane to the deceleration lane to the right thereof, and follow the same one-way to such Toll Plaza or service station, and upon leaving a service station or entering the Turnpike from a Toll Plaza shall do so by way of the acceleration lane and shall enter the right traffic lane with care.

3. Parking

A. Parking Prohibited - Exceptions

Parking or stopping of vehicles on any Maine Turnpike Authority property other than an Authority designated parking area is prohibited. For the purposes of this rule, “parking area” means any Authority property on which parking is allowed, including but not limited to concession areas, park and ride lots, lots associated with other Authority facilities, and the approaches thereto. Except where specifically allowed by this rule, and without limitation of the foregoing, parking or stopping of vehicles on any portion of the right of way of the Maine Turnpike, including any traffic lane, deceleration lane, acceleration lane, breakdown lane, interchange, ramp, embankment, clear zone, or bridge is prohibited. A vehicle parked in violation of this section shall be prima facie evidence that the registered owner of that vehicle parked or allowed the vehicle in question to be so parked.

B. Breakdowns and Emergencies

If mechanical breakdown or another emergency requires that a vehicle be parked or stopped on the traveled portion of the Turnpike, the vehicle will be parked on the shoulder to the right of any traffic lane. All wheels and projecting parts of the vehicle or load of a vehicle parked for emergency or breakdown purposes shall be completely clear of the traffic lane. During the period beginning one-half (1/2) hour after sunset and ending one-half (1/2) hour before sunrise or at any other time when insufficient light or unfavorable atmospheric or weather conditions require, any vehicle parked for emergency or breakdown purposes shall display illuminated parking and tail lights, or lighted flares to indicate its location. The driver of a disabled vehicle shall arrange for its prompt removal from the Turnpike. Nothing in this paragraph shall be construed as granting any person the right to leave a vehicle on the traveled portion or shoulder of the Turnpike for any period of time, nor will anything in this paragraph limit the Authority's discretion to remove a disabled vehicle from the Turnpike under paragraph (D) below.

C. Parking in MTA Parking Areas

Signs will be posted at parking areas governing the length of time that a motor vehicle may remain parked in those areas, the purposes for which a vehicle may be parked in such area or placing other conditions upon the use of said area for parking. Use of any posted parking area constitutes agreement to abide by the conditions or restrictions posted and it is a violation of these rules to park or allow one's vehicle to be parked in violation of any posted condition or restriction. Any motor vehicle parked or standing in an Authority parking area will be parked in designated spaces wholly within the lines provided where possible. Parking at concession areas is subject to posted restrictions and is permitted only for the use of the facilities and only for so long as use of the facilities requires. Parking for over four hours is prohibited at concession areas, except that commercial vehicle drivers may park at concession areas in designated spaces for up to twelve hours in order to comply with hours of service requirements. Parking in spaces provided for electric vehicle charging will be as posted, but in no event will electric vehicles be parked in these spaces for longer than required for the vehicle to fully charge. Parking at Park and Rides is permitted only for the purpose of commuting as posted or as otherwise defined in the Authority's then current Park and Ride Policy, a copy of which available at http://www.Maineturnpike.com or by contacting the Maine Turnpike Authority . Parking at other Authority facilities is only allowed for persons there on Authority business and only for as long as the conduct of that business requires.

D. Towing

Notwithstanding any other provision of this section, any motor vehicle which, in the Authority’s judgment, has been illegally parked on Authority property, which is parked in a manner which represents a safety hazard, or which interferes with Authority operations, including but not limited to maintenance and snow removal operations, may be removed from Authority property at the owners' expense, including but not limited to the payment of any towing and storage fees. The Authority shall not be liable for any damages resulting from such removal and nothing in this rule will limit the Authority's power to remove vehicles from its property in accordance with this subsection.

E. Exceptions

These rules do not apply to Maine Turnpike Authority personnel, State Police or other emergency personnel parked in the course of their official duties or to other persons specifically exempted by the Authority for the purposes of performing work on Authority property.

F. Enforcement

Violation of this section will be enforced in accordance with 23 MRSA §1980(1). Nothing in this section shall be construed to limit the ability of the Authority from enforcing this section through any other means available to it in law or equity.

4. Median Strip

The median strip is the area between the dual or triple traffic lanes for the purpose of separating traffic proceeding in opposite directions.

Crossing, driving, parking or stopping on the median strip is prohibited. Openings through the median strip are provided for official use of maintenance, operational, police vehicles, or fire and rescue vehicles when responding to an incident, and shall not be used by the public.

5. No U-Turn

U-Turns at any point on the Turnpike are prohibited.

6. Pedestrians

Pedestrians are not permitted on the Turnpike, on any Interchange or at any Toll Plaza. Solicitation of any kind, including but not limited to solicitation of rides, signatures or donations, passing of hand bills, displaying of signs, and attempts to sell merchandise are prohibited on Authority property. The prohibitions on displaying of signs and attempts to sell merchandise do not extend to commercial vendors authorized by the Maine Turnpike Authority to provide goods and services at service plazas. Loitering on any Authority property is prohibited.

7. Prohibited Vehicles

No person shall operate any of the following on the Turnpike:

A. Bicycles or tricycles, with or without motors, and motor driven cycles, including motor scooters.

B. Animal drawn vehicles.

C. Animals – led, ridden, or driven.

D. Vehicles loaded with animals or poultry not properly confined.

E. Vehicles with flat pneumatic tires.

F. Farm implements.

G. Vehicles in the charge of intoxicated or otherwise impaired operators.

H. Vehicles with improperly secured loads which may shift or litter the highway.

I. Vehicles with metal tires or which have solid tires worn to metal.

J. Rollers, graders, power shovels, or other construction equipment, either self-propelled or in tow of another vehicle, unless such equipment is either (i) truck mounted and such truck can be operated at a minimum speed of forty-five (45) miles per hour while traveling on the Turnpike, weather and road conditions permitting, or (ii) owned or controlled by the Authority or by any contractor in connection with the performance of work authorized by the Authority.

K. Vehicles exceeding the maximum weights allowed on State highways under the motor vehicles laws of the State of Maine in effect from time to time, unless accompanied by an overweight permit issued by the State of Maine Department of Transportation.

L. Vehicles including any load thereon exceeding the following maximum dimensions, unless permitted pursuant to Rule 10 of the Rules Governing Use of the Maine Turnpike :

Height 13 feet 6 inches

Width 8 feet 6 inches

Length The maximum allowable lengths permitted on Interstate highways and other limited access roadways in Maine pursuant to the motor vehicle laws of the State of Maine, as in effect from time to time, without overlength permit.

M. Disabled vehicles in tow by tow-rope or chain.

N. Any vehicle which may be unsafe or hazardous to persons or property, except as permits for the transportation of radioactive material may be issued in accordance with the provisions contained in Section 11.

O. Any vehicle whose use is banned on similar interstate highways in Maine under state or federal law or regulation, whether because of the controlled access nature of the highway, the speed limit of the highway, or any other factor.

P. Any class of vehicle which may be prohibited by resolution of the Authority from time to time due to a finding by the Authority that said class of vehicle presents a safety hazard, is liable to cause unwarranted damage to the highway or otherwise interferes with the operation of the Maine Turnpike.

8. Evasion of Fare

Entering or leaving the Turnpike or any part of its right of way except through the regular Toll Plaza lanes, or committing any act with intent to defraud or evade payment of fare is prohibited.

9. Trees, Shrubs and Plants

Cutting, mutilating or removing trees, shrubs, or plants located within the Turnpike right of way is prohibited, except where specifically authorized by the Authority in writing.

10. Overlimit Permits

Vehicles or combinations in excess of the permitted length or width provided in Section 7(L) of these rules (“overlimit vehicles”) may be admitted to the Turnpike by permit, in accordance with all applicable provisions of these rules and such other limitations and conditions as may be provided in the permit.

A. Permits will be valid for one day only and will be issued pursuant to application submitted on forms provided by the Authority. In addition to the applicable fare in the regulator Fare Schedule, a permit fee of ten ($10.00) dollars shall be paid at the time of such application.

B. Permits will not be issued for any vehicles which, with the load thereon, exceeds 14 feet six inches (14’6”) in overall width.

C. Vehicles which, with the load thereon, exceed ten (10) feet in overall width will be allowed to enter or exit the Turnpike only at Toll Plazas designated by the Authority, from time to time, as accommodating wide loads.

D. The right is reserved to deny permits to any vehicle which may be unsafe or hazardous to persons or property and to limit the validity of any permit with respect to speed, times of travel, weather, or traffic conditions. Otherwise, the State of Maine statutes, rules and regulations from time to time in effect governing the movements of overlimit vehicles and loads in excess in eight feet, six inches (8’6”) in width, shall apply to all vehicles operated on the Turnpike pursuant to permits issued under this section, subject to the following modifications :

1. Except as otherwise authorized under subsection 5, below, movement of overlimits is permitted only between ½ hour before sunrise through ½ hour after sunset. If the destination cannot be reached within this time period , the overlimit vehicle must depart at the nearest allowable exit.

2. Overlimit vehicles will not be allowed to park at Turnpike concession areas or other parking areas overnight or for extended periods of time.

3. Overlimit vehicles will not be allowed to travel on the Turnpike during those periods of time when paving, repaving, bridge work, construction work or other type of maintenance is under way which will require the restriction of the movement of vehicles and loads in excess of 8 feet 6 inches (8’6”) in width, unless specifically authorized by a permit issued by the Maine Turnpike Authority under subsection 10(F), below.

4. Overlimit vehicles will only be permitted if such vehicles can be operated in a safe and adequate manner, at a minimum speed of forty-five (45) miles per hour while traveling on the Turnpike, weather and road conditions permitting, and construction equipment will only be permitted if such equipment is truck mounted and such truck as so loaded can be operated in a safe and adequate manner at a minimum speed of 45 miles per hour.

5. Notwithstanding subsection 1, above, the State Police and the Authority may jointly authorize night moves of overlimit vehicles at such times and in such areas where public safety will not be adversely affected. In such cases, either the Authority or the State Police may require that Maine State Police personnel be present to escort vehicles performing the night moves.

E. The operator of an overlimit vehicle operated on the Turnpike must have in his or her possession any corresponding permit required by Maine law for the operation of such vehicle on state highways.

F. Other Overdimensional Vehicles. Vehicles not otherwise eligible for a permit under this section, including but not limited to vehicles in excess of the applicable weight limits under state law or the height and width limits contained in this rule, will not be allowed to travel on the Turnpike or cross any bridge over the Maine Turnpike without a special permit granted by the Authority after an individualized analysis of the vehicle, applicable bridge load ratings, and other relevant factors. The owner of the vehicle in question will be liable to reimburse all costs incurred by the Authority in relation to the analysis as a condition of receiving the permit.

11. Permits for the Transportation of Radioactive Material

Permits for the transportation of radioactive material will be issued by the Executive Director, the Secretary-Treasurer or their authorized representatives, on the following terms and conditions:

A. Permits for a single trip only will be issued pursuant to applications submitted to the Authority not later three (3) days prior to the date of the proposed shipment on the Turnpike. Such application shall be submitted on forms provided by the Authority. In addition to the applicable fare in the regular Fare Schedule, a permit fee of ten ($10.00) dollars shall be paid at the time of such application.

B. Each such shipment shall conform in all respects to all applicable laws, rules, and regulations, including but not limited to applicable regulations of the Nuclear Regulatory Commission, the U.S. Department of Transportation and the Interstate Commerce Commission, and the Authority reserves the right to require evidence of such compliance.

C. Such shipments shall be in compliance with all other applicable provisions of these Rules Governing Use of the Maine Turnpike . The Authority reserves the right to limit the validity of any permit with respect to speed, times of travel, weather, travel or other conditions affecting the safe transit on the Turnpike of such materials.

D. For purposes of this rule and Paragraph N of Rule 7 of these Rules Governing the Use of the Maine Turnpike , the term “radioactive material” is defined as fissile radioactive material which, under the applicable regulations of the U.S. Department of Transportation, when transported on a public highway must be labeled by placards on each load of such material.

12. Payroll Information

Records filed with the Maine Turnpike Authority pursuant to 26 M.R.S.A. §1311 are public records pursuant to the Maine Freedom of Access Act and shall be made available if requested pursuant thereto, except that Social Security numbers and taxpayer identification numbers contained in those records will be treated as confidential and shall not be disclosed.

13. State Laws

All laws, rules and regulations in the State of Maine pertaining to the use of public highways and policing thereof shall apply to the Turnpike, except insofar as they may be supplemented by these Rules Governing the Use of the Maine Turnpike .

14. Penalties

In accordance with 23 M.R.S.A. §1980, any violation of these rules shall constitute a traffic infraction, except that operation of a motor vehicle which exceeds, by 30 miles an hour or more, the speed fixed by the Authority, and failure to pay tolls, fares or charges for use of the Turnpike shall constitute Class E crimes.

History

• STATUTORY AUTHORITY: 23 M.R.S.A. §§ 1965(1)(C), 1973(1), 1973(2) and 1980(3)
• EFFECTIVE DATE: Amendment and Re-adoption of Rules and Regulations Governing Use of Turnpike Effective October 24, 1983 (Properly filed with Secretary of State on October 19, 1983)
• AMENDED: March 4, 1984
• AMENDED: June 12, 1987- Section 1 (EMERGENCY)
• AMENDED: August 20, 1987 - Section 1 (EMERGENCY)
• AMENDED: August 25, 1987 - Section 1
• AMENDED: October 20, 1987 - Section 1
• AMENDED: September 14, 1992 - Section 1
• AMENDED: June 29, 1995 - Sec. 1 & 1(A)
• AMENDED: August 18, 1995 - Sec. 1 & 1(A)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 7, 1996
• AMENDED: June 23, 1997 (EMERGENCY - expires September 21, 1997) - Sec. 11(D)(1,7)
• AMENDED: August 27, 1997 - Sec. 11(D)(1,7)
• AMENDED: May 24, 2000 (EMERGENCY - expires August 22, 2000)
• AMENDED: August 21, 2000
• AMENDED: April 12, 2001 - Section 1, 1-A(3), renumbering
• AMENDED: May 5, 2004 - Section 1-B added, filing 2003-470
• AMENDED: November 29, 2009 – Section 3, filing 2009-617
• AMENDED: August 15, 2012 – filing 2012-226
• AMENDED: August 11, 2014 – filing 2014-160
• AMENDED: January 23, 2023 – filing 2023-009

Chapter 2 Regulations for the Installation of Logo Signs on the Maine Turnpike

Code Me. R. 99-420 Ch. 2 Regulations for the Installation of Logo Signs on the Maine Turnpike {#sec-99-420-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--99-420 Ch. 2}

SUMMARY: The purpose of these regulations is to provide guidance for the installation of lodging, camping, and attraction logo signs on the rural sections of the Maine Turnpike. These regulations establish the size, shape, manner and location of logo signs and describe the procedure for applying to the Authority for permission to erect a logo sign and the criteria used by the Authority to select among applicants. The Authority may contract with a private vendor to implement the logo sign program.

Section 1: General Requirements

1. The use of logo signs shall be limited to areas primarily rural in character and to areas where adequate sign spacing can be maintained.

2. Logo signs for lodging, camping, and attractions may be installed at interchanges on the Maine Turnpike that are rural in character. Applications from at least two qualified services must be approved before installation of a logo sign assembly at an interchange which is rural in character.

3. Logo signs may be installed at a Maine Turnpike interchange that is rural in character, and that connects to a non-Maine Turnpike Interstate system if subsequent interchanges on that non-Maine Turnpike system have additional signing directing motorists to the applicable services.

The Maine Turnpike Authority may allow the MaineDOT or New Hampshire DOT to install logo signs on the Maine Turnpike if in the Authority’s judgment installation of the logo sign is reasonably necessary to inform the travelling public of services available on an interchange located beyond the northern and southern limits of the Maine Turnpike. Said logo signs will only be allowed if, in the Authority’s judgment, there is adequate space available for the signs and the signs will not interfere with the Authority’s current or future operations. Said signs will be consistent with all provisions of this rule, including physical specifications and destination qualifications, except for the following:

(a) said logo signs will be installed and maintained by the applicable state agency at that agency’s expense pursuant to a revocable license granted by the Authority; and

(b) said logo signs will be allowed for destinations offering food and gas if room is available and said destinations qualify for a logo sign under the rules of the applicable state agency.

4. Logo signs shall not be permitted for food and gas on the Maine Turnpike other than for: (a) Turnpike Service Plazas, (b) at southbound locations south of mile marker 6.0 and (c) at northbound locations north of mile marker 103.

5. Logo for two or more types of service may be displayed on the same sign assembly.

6. More than one logo sign assembly may be installed at a qualified interchange exit only when three or more qualified services are available for each of two or more types of service.

7. The number of logo sign assemblies at a qualified interchange exit may not exceed two for each type of service or a total of four for all types of services.

8. Each sign assembly may display no more than six logos. Where more than six services of a specific service type qualify for a logo sign, they may be displayed on one other logo sign assembly.

9. At interchanges where conditions allow for only one logo sign assembly, signs shall be arranged to allow for a minimum of two types of service and, when applicable, one of these service types shall be attractions.

10. Logo signs shall not be permitted at locations where the directional information contained may be misinterpreted, misleading, or otherwise confusing to the traveling public. No logo signs shall be permitted at interchanges which do not provide return access to the Maine Turnpike in the direction of original travel, except as provided in subsection 3, above.

11. Each service may have not more than one mainline logo and one ramp logo in each direction on the Maine Turnpike. Logo signs permitted must be for the closest interchange to the service.

12. Each service shall be required to have a mainline as well as a ramp sign unless the Authority determines that the interchange cannot support ramp logo signing (See Section 5) in which case only mainline signs will be allowed. In the event that ramp signing is limited, the Authority will determine priority based on the criteria defined in Section 9.

13. Any service that is in violation of any provision of the Maine Traveler Information Services Act , 23 M.R.S.A. §1901 et seq . (as amended) shall not be eligible to establish or maintain a logo sign. The failure of a service to comply with any other applicable laws and/or to maintain professional standards in keeping with the prevalent practices in the service’s industry will be cause for the Authority to deny a logo sign or to remove one which has been permitted, as outlined in Section 11 below.

Section 2: Definitions

1. Authority. "Authority" means the Maine Turnpike Authority.

2. Maine Turnpike. “Maine Turnpike” means Interstate 95 from Kittery to Augusta under the jurisdiction of the Authority which is part of the interstate system as described in the United States Code , Title 23, section 103(e), as amended.

3. Logo sign. "Logo sign" means a sign provided by a service to identify the service’s trademark and/or name for facilities which provide lodging, camping or attractions.

4. Logo sign assembly. “Logo sign assembly ” is either the mainline sign assembly or the ramp sign assembly.

5. Mainline sign assembly. “Mainline sign assembly” means the base unit of a sign to which logo signs are attached and which is erected along the Maine Turnpike in advance of an exit to direct motorists to a particular service.

6. Ramp sign assembly. "Ramp sign assembly" means the base unit of a sign to which logos are attached and which are erected along an off-ramp to direct motorists to a particular service.

7. Rural in Character . For the purposes of this logo rule only, “rural in Character ” interchanges include all interchanges that provide full access to the Maine Turnpike, but specifically excludes , exits 45, 47, 52, 102 and 103 which do not qualify.

8. Attraction. A cultural, historical, natural or major recreational site, or a leisure/ recreational activity destination.

Section 3: Service Requirements

The following services shall be available on site.

1. LODGING

Eligible lodging services such as hotels, inns, motels, cabins, or bed and breakfasts shall:

A. Be licensed by the applicable state or local agency;

B. Provide adequate sleeping accommodations

C. Provide modern sanitary facilities;

D. Have adequate off-street parking for customers.

E. Be available 7 days a week.

2. CAMPING

Eligible camping services shall:

A. Be licensed by the applicable state or local agency;

B. Provide sanitary facilities and potable water.

C. Have adequate parking accommodations.

D. Be open at least 3 consecutive months per year.

3. ATTRACTIONS

4. Eligible attractions shall:

A. Provide modern sanitary facilities and potable water

B. Provide attendants on site and/or conduct tours on regular basis

C. Be open at least 3 consecutive months per year.

D. Provide adequate parking accommodations

E. Meet specific eligibility guidelines, as described in section 9, below.

2. Preference will be given to attractions that provide activities in two or more of the cultural, historical, or recreational categories.

3. GUIDELINE CRITERIA FOR SIGNING ATTRACTIONS

TYPE

SPECIFIC CRITERIA

LOCAL INTEREST

REGIONAL INTEREST

Natural Phenomenon

Visitors (Yrly)

5,000

50,000

Distance from Interchange (Ml.)

10

50

Historic Site / District

Visitors (Yrly)

5,000

50,000

Distance from Interchange (Ml.)

10

20

Cultural Site

Attendance (Yrly)

5,000

50,000

Distance from Interchange (Ml.)

10

30

Amusement Park

Attendance (Yrly)

50,000

200,000

Distance from Interchange (Ml.)

5

30

Arena

Attendance (Yrly)

100,000

250,000

Distance from Interchange (Ml.)

5

20

Area of Natural or Scenic Beauty

Attendance (Yrly)

5,000

50,000

Distance from Interchange (Ml.)

10

50

Leisure Activity

Attendance (Yrly)

10,000

50,000

Distance from Interchange (Ml.)

10

30

Museum

Attendance (Yrly)

5,000

100,000

Distance from Interchange (Ml.)

10

30

Recreational Area

Attendance (Yrly)

5,000

50,000

Distance from Interchange (Ml.)

10

100

Zoo, Botanical Garden, Wildlife Parks/Preserve & Aquariums

Distance From Interchange (MI)

10

30

Attendance

5000

100,000

Eligibility of Sites

A. Natural Phenomenon – Natural phenomenon shall be limited to features created by nature. (see also, Area of Natural or Scenic Beauty).

B. Historic Site/District – Historic sites or districts shall be limited to structures or sites that have definite historical significance as determined by the Maine Historical Society.

C. Cultural Site – Cultural sites shall be limited to any facility for the performing arts, exhibits, or concerts.

D. Amusement Park – Amusement parks shall be limited to a permanent area which is open to the general public for at least three months per year and which offer at least three of the following activities: swimming, entertainment rides, picnicking, hiking, food services, boating and/or riding.

E. Arena – Arena shall be limited to stadiums, coliseums, civic or convention centers, auditoriums, sports complex, fair grounds, or race tracks.

F. Area of Natural or Scenic Beauty – An area of natural or scenic beauty shall be limited to a naturally occurring area of interest to the general public, including State or National Parks, wilderness areas, mountain ranges, lakes, rivers, deserts, and similar areas.

G. Leisure Activity –A golf course, which shall have facilities open to the general public that offer at least 18 holes for play on a regulation size facility that operates for at least five months a year; a casino, which shall have facilities open to the public that offer gaming tables and machines operating all year.

H. Museum – A museum shall be limited to facilities open to the public at least 200 days per year, in which works of historic, artistic, or scientific value are cared for and exhibited.

Recreational Area – A recreational area shall be limited to those areas that include any of the following activities: boating, fishing, bicycling, kayaking, rafting, picnicking, snowmobiling, and skiing. A ski area shall have facilities that offer downhill, alpine, or cross-country (Nordic) skiing, with lifts and groomed trails.

J. Zoos, Botanical Gardens, Wild life park/preserves and Aquariums - Limited to facilities open to the public in which specimens are cared for and exhibited.

Section 4: Distance to Services

1. The maximum distance services shall be located from the end of an off-ramp to qualify for logo signing shall be 3 miles for camping and lodging. , In the event that no lodging or camping services are available within this distance, the Authority may in its sole discretion extend the distance in 3 mile increments up to 15 miles until an eligible service is located. See the table in section 3 for maximum distances to attractions. Any camping, lodging, and attraction not located on the connecting public highway shall be required to install additional signing to direct motorists to these services. This may include logo signs installed on Maine Department of Transportation (Maine DOT) maintained public highways. All signs shall be installed at no cost to the Authority.

2. The distance to lodging, camping, and attraction services shall be measured by computing the travel length from the terminal of an exit ramp to the nearest point along the public highway where the nearest existing driveway entrance to the service is reached. Driveway length and width shall not be considered when making such distance computations.

Section 5: Interchange Eligibility Criteria

The following criteria shall be used to determine whether any portion of a particular interchange has physical characteristics capable of supporting logo signage without detriment to motorist safety:

1. In instances of curvature, ramp curvature that does not interfere with sight distances necessary for motorists to view the signs;

2. Other sight distance restrictions which impede the safe and orderly flow of traffic or restrict the motorists ability to respond to official guide, warning or regulatory signs;

3. Any other limitations or space restrictions which may negatively impact the safety of the traveling public.

Section 6: Logo Design

Logos shall be limited to a symbol or trademark, and/or a legend message identifying the name or abbreviation of the specific service under which it commonly operates. Logos shall not be approved that resemble an official traffic control device, for example a stop or yield sign. There shall be no other trade name, trademark, or enterprise other than the specific service facility name under which it commonly operates, in conjunction with the design or layout of a logo sign.

Section 7: Logo Size and Shape

Logo signs shall be rectangular in shape, and shall be 36 inches high and 48 inches wide on mainline sign assemblies.

Logo signs shall be rectangular in shape, and shall be 18 inches high and 24 inches wide on ramp sign assemblies.

Section 8: Logo Legends

Legends shall refer to the name of the service. Logo legends on mainline signs shall not contain more than two lines of copy. The minimum legend character size shall be six inches in height on mainline signs. Ramp signs shall not contain more than three lines of copy. The minimum legend character size shall be four inches in height on ramp signs.

Highway Gothic Series B is the recommended letter style with no more than 80% condensing allowed.

Section 9: Logo Color

The logo sign shall be finished in a neat manner, free of cracks, wrinkles, blisters, discoloration, burrs, buckles and warps and shall present a smooth light surface of uniform color. All logo colors shall be made from either standard Type III white reflective sheeting, and shall meet all applicable requirements of “Section 719 Signing Material” of the State of Maine Department of Transportation Standard Specifications for Highways and Bridges, latest revision.

Section 10: Materials

Logo sign material shall be aluminum sheeting which complies with the latest revision of the State of Maine Department of Transportation Standard Specifications, Highways and Bridges for Section 719.04 “Aluminum Sheets”.

Section 11: Location of Sign Assemblies

1. MAINLINE SIGN ASSEMBLIES

A. Mainline sign assemblies shall be erected between the previous interchange and at least 800 feet in advance of the first exit direction sign closest to the interchange from which the services are available. There shall be at least 800 feet spacing between the logo sign assemblies and other highway signs.

B. If a service meets the criteria for approval at more than one interchange, signing will be allowed only from the exit providing the most direct route in each direction.

C. Once services are selected for a particular assembly, the first approved service from which an application was received will have its sign placed on the top left of the assembly and the second service facility of the same type will be on the next space horizontally. In cases where two types of services are combined on the same assembly , logos will be arranged with similar services grouped horizontally and the following priority of services displayed from top to bottom: lodging, camping, and attractions.

D. The number of sign assemblies shall be limited to one for each type of service along an approach to an interchange. At double exit interchanges the top section shall display logos for the first exit and the lower section shall display logos for the second exit. Specific service signs at double exit interchanges shall be limited to four logos each and shall be displayed successively in the direction of travel in the following order: camping, lodging, and attractions.

2. RAMP SIGN ASSEMBLIES

A. Ramp sign assemblies shall be installed along the ramp for service facilities which have logos displayed along the interstate unless the service is readily visible from the ramp terminal or if there is only one direction of travel possible at the end of the ramp and the service is less than ½ mile from the end of the ramp. Logos on ramp signs shall be duplicates of the corresponding logos installed along the main roadway and shall be grouped in the same manner as mainline signing. Ramp sign assemblies shall include distances to the nearest mile to the service if located more than ½ mile from the exit ramp. Directions shall be indicated by arrows.

B. Signs along the ramp shall be installed on the right side of the ramp, unless circumstances, including but not limited to physical layout and visibility, require left side installation. Spacing shall be provided between all ramp sign assemblies and between ramp sign assemblies and other highway signs to provide motorists adequate time to read all the messages on the ramp.

Section 12: Eligibility Survey

The Authority may survey services for which an application is submitted to determine eligibility for logo signs. Information relative to the eligibility of a specific interchange or exit ramp may be obtained from the Authority. No more than one logo sign per service shall be permitted along an approach to an interchange regardless of the number of services provided by a facility

Section 13: Logo Permits

1. Application for a logo sign shall be made on forms furnished by the Authority. Applications will be processed and permits issued based on criteria developed by the Authority. These criteria will include, but not be limited to:

A. Distance from interchange

B. Number of Annual Visitors

C. Period of Operation (Annual vs. Seasonal)

D. For Attractions, number of activity categories (i.e. cultural, historical, recreational)

2. Competing interchange services for logo signing which exhibit similar characteristics in the categories outlined above may be selected based upon order of form receipt. Prioritization will be given to those service locations that had previously been signed by the Authority on a supplemental guide sign but was removed or is planned to be removed by the Authority.

3. Eligible services who receive a permit shall furnish logo signs constructed to specifications to the Authority. Once a permit is issued, the Authority or its vendor shall be responsible for physically installing logo signs and assemblies.

Section 14: Duration of Logo Permit

Duration of logo permits will be pursuant to the terms of a rental agreement between the Authority, or its designee, if any, under section 13, and the applicant.

Section 15: Removal or Relocation of Logo Signs

1. The Authority shall permanently or temporarily remove (or relocate if possible) logo signs under the following circumstances:

A. If the space occupied by logo signage is needed for other highway signs;

B. In instances where signs will interfere with highway construction and maintenance activities; and

C. For other safety or operational reasons.

D. At the expiration or cancellation of the logo sign permit

2. Failure to comply with any of the requirements of this chapter two or with the terms of a logo sign rental agreement to be executed between the Authority and each participant shall result in cancellation of the logo permit and removal of the logo sign. The service facility shall be notified and given 30 days to come into compliance before the sign is removed and the permit cancelled.

3. For safety reasons, a logo sign may be removed immediately. The Authority shall make a reasonable attempt to notify the business of the logo sign removal.

4. In the event that an interchange is deemed to be no longer be rural in character, the logo signs shall be removed the following year when the signs are due for renewal of their annual fees.

5. Factors considered in the initial location selected for signage as set forth in this chapter two shall apply in considerations for relocation.

Section 16: Replacement

The participating service shall be responsible to provide new panels to the Authority or its vendor for reinstallation when in the opinion of the Authority existing panels require replacement, including but not limited to replacements due to wear, vandalism and accident. Damaged or worn logo panels shall be returned to the service.

Section 17: Financial Responsibility

1. Approved logo signs may be installed and maintained by a contractor approved by the Authority who may charge appropriate fees for the implementation of the logo sign program.

2. The Authority shall bear no cost for the design, implementation and maintenance of the logo sign program. All costs shall be borne by the participant as outlined in a logo sign agreement to be executed between the Authority and the participant at the time a logo sign is approved or renewed.

Section 18: Implementation

The Authority may contract for the provision of services relating to the logo sign program including recruitment and qualification of services , review of applications, permit issuance, fabrication, installation, and maintenance of logo signs.

EFFECTIVE DATE:

December 6, 2005 – filing 2005-485

AMENDED:

April 18, 2006 – Section 1 sub-section 2, filing 2006-143

August 11, 2014 – filing 2014-161

July 18, 2016 – Section 1 sub-sections 3 and 4, filing 2016-121

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 3 Rules Governing Supplemental Guide Signs on the Maine Turnpike

Code Me. R. 99-420 Ch. 3 Rules Governing Supplemental Guide Signs on the Maine Turnpike {#sec-99-420-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--99-420 Ch. 3}

SUMMARY: This chapter governs requests for changes to supplemental guide signs on the Maine Turnpike.

1. Background

The Manual on Uniform Traffic Control Devices for Streets and Highways (MUTCD) is the national standard for traffic control devices on all roads open to public travel. The MUTCD (http://mutcd.fhwa.dot.gov/) contains the standards for signing freeways and expressways for motorists who are unfamiliar with an area. The MUTCD incorporates by reference the American Association of State Highway and Transportation Officials (AASHTO) Guidelines for the Selection of Supplemental Guide Signs for Traffic Generators adjacent to freeways.

P.L. 2014 c. 549, ‘An Act to Allow Signs for Areas of Local, Regional and Statewide Interest on the Interstate System’ was modeled on AASHTO guidance on the most appropriate generators for display on interstate highway supplemental guide signs. Section two of that act, codified at 23 M.R.S.A. §1912-C, sets out standards for supplemental guide signs on the Maine Turnpike.

2. Requests for Modification of Supplemental Guide Signage – Appeals

Requests for additional interchange guide signs or modifications to existing interchange guide signs, as defined in 23 M.R.S.A. §1912-C., must be submitted in writing to the Authority’s engineering department. Any such request shall include documentation demonstrating that the proposed changes would be in compliance with 23 M.R.S.A. §1912-C. The Authority may notify other persons whom it deems has a substantial interest that might be negatively affected by granting of the request and shall give any other such person an opportunity to submit a written position on the request. The Authority’s executive director shall issue a written decision on the request within a reasonable time of receipt. The person submitting the request or any other person substantially affected may appeal the executive director’s decision to the Authority’s board by submitting a written request for appeal to the executive director within 30 days of the date of the decision. The board shall make a decision on the appeal at one of its regularly scheduled board meetings within 90 days of receipt of the appeal. The board’s hearing on the appeal shall be informal and the rules of evidence shall not apply. Any interested person may submit documentation that they wish the board to consider, but must do so at least 30 days before the hearing. Any interested person shall have the opportunity to be heard at the hearing. The board may rule immediately on the appeal or may take the appeal under advisement and issue a decision at a later date. The board’s decision on the appeal shall be final.

3. Timing of Signage Installation shall be Consistent with Authority Operations

The MUTCD states that “ sign installations are an integral part of the facility, and as such are best planned concurrently with the development of the highway locations and geometric design. Interstate signing is to be considered and developed as a planned system of installations. An engineering study is sometimes necessary for proper solution of the problems in many individual locations but in additional consideration of an entire route is necessary .”

Modification or installation of supplemental guide signs requires review of the surrounding area. Moving or eliminating other signs may be required to achieve a proper overall signing design in accordance with national standards. Signage is typically adjusted every 15-20 years as the life of most of the signs is reached and replacements are planned. In addition, as new facilities are built or new interchanges are built or under major rehabilitation considerations for adjustments in signs will be made. Therefore, requests for changes to signage under this chapter which are granted may not be actually put into effect by the Authority until a later date consistent with the Authority’s long term planning and operations.

History

• STATUTORY AUTHORITY: 23 MRSA §§ 1965(1)(C), 1965(1)(U), 1973(2)
• EFFECTIVE DATE: August 11, 2014 – filing 2014-162

99-626 Maine Rural Development Authority

Chapter 1 Community Industrial Building Program

Code Me. R. 99-626 Ch. 1 Community Industrial Buildings Program {#sec-99-626-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--99-626 Ch. 1}

Summary: The Maine Rural Development Authority was created by the 120th Legislature in 2002 and funded through a bond issue. The Authority will administer the Community Industrial Buildings Program. The Community Industrial Buildings Program was created in 1973 to provide Maine communities with financial assistance for the development of speculative industrial properties. This rule defines the application process for the Program.

Basis Statement: The overall goal of the Program is to foster job creation and encourage business development in Maine with a primary focus on rural communities. In particular, the program provides loans to Local Development Corporations for construction and/or associated costs of a speculative building. The program is a non‑lapsing revolving fund. The rule defines the application process for the program, the responsibilities of Local Development Corporations that receive a loan through the Program, and the terms and conditions of financial assistance the Authority may provide to Local Development Corporations, pursuant to 5 M.R.S.A., Chapter 383, Subchapter IX.

Section 1. Definitions.

1. Act: "Act" means 5 M.R.S.A. Chapter 383, Subchapter IX

2. Applicant: "Applicant" means a Local Development Corporation, applying for a loan under the Community Industrial Building Program.

3. Authority: "Authority" means the Maine Rural Development Authority, or as the context requires, the agents and employees of the Authority.

4. Borrower: "Borrower" means a qualified Local Development Corporation, as defined in 5 M.R.S.A., § 13120‑ B(9) that meets the threshold criteria set forth Section 2 of this rule.

5. Carrying Costs: "Carrying Costs" means reasonable costs incurred for the maintenance, protection and security of a community industrial building prior to occupancy, including, but not limited to, insurance, taxes and interest.

6. Commercial Facility: "Commercial Facility" shall mean real estate and improvements used principally for commercial purposes or suitable for commercial use as defined in 5 M.R.S.A. § 13120‑B(4). The term commercial facilities includes, but is not limited to:

a. Offices and office buildings;

b. Manufacturing, processing, assembly and other industrial buildings and related improvements;

c. Property used in connection with commercial fishing and other marine‑related industries;

d. Property used in conjunction with agricultural production, storage, processing, packing and transportation;

e. Warehouses, transportation and distribution facilities;

f. Service and repair facilities;

g. Retail establishments; and

h. Lodging, restaurant and entertainment facilities.

7. Community Industrial Building: "Community Industrial Building", as defined at 5 M.R.S.A. § 13120‑B(5), means a building of flexible design where the construction costs are financed through the Authority for the purpose of creating new jobs in a region resulting from the sale or lease of the building.

8. Comprehensive Plan: "Comprehensive Plan" shall mean a plan that is determined by the Executive Department, State Planning Office to be consistent with 30‑A M.R.S.A. § 4326, subsections 1 to 4 and has been adopted by the community.

9. Construction Costs: "Construction Costs" means any cost or expenditure involving the community industrial building which is properly chargeable under the Internal Revenue Code of 1986, as amended, to the capital account of any person or state or local government. In no event shall "Construction Costs" include either "Carrying Costs" or the cost of purchasing or otherwise acquiring the site or providing and maintaining and plowing an adequate access road from a public highway to the site or providing and maintaining water, sewer and power facilities.

10. Eligible Costs: "Eligible Costs" means Construction Costs.

11. Lease: "Lease", as defined at 5 M.R.S.A. § 13120‑B(7), means a contract providing for the use of a Project or portions of a Project for a term of years for a designated or determinable rent. A lease may include an installment sales contract.

12. Local Growth Management Program: "Local Growth Management Program" shall mean the town has adopted a growth management program that certified by the Executive Department, State Planning Office, under 30‑A M.R.S.A. § 4347‑A.

13. Loan Commitment: "Loan Commitment" means the agreement executed prior to Phase II as hereinafter defined, between the Authority and an applicant pursuant to which the Authority has agreed to make a loan to the applicant in accordance with the terms thereof.

14. Local Development Corporation: "Local Development Corporation" shall have the meaning set forth in the Act, 5 M.R.S.A. § 13120‑B(9).

15. Municipality: "Municipality", as defined at 5 M.R.S.A. § 13120‑B(10), means any county, city or town in the State.

16. Program: "Program" means the Community Industrial Buildings Program.

17. Project: "Project" means the construction of a Community Industrial Building, as defined in 5 M.R.S.A. § 13120‑B(5) and this rule.

Section 2. Eligible Projects.

1. Projects eligible for loan funding under the program are Community Industrial Buildings which meet all the following criteria, as determined by the Authority:

a. The Applicant must be a Local Development Corporation;

b. Demonstrated market need for new Commercial Facility;

c. Demonstrated economic need for new Commercial Facility;

d. Demonstrated financial commitment from the Local Development Corporation to develop successful Community Industrial Building Project and ability to repay loan;

e. Evidence that Local Development Corporation has the rights to develop a Commercial Facility and control of the subject site;

f. Evidence that there is either a lack of private interest in the Project or it is not financially viable for the private sector to solely develop the Project; and

g. Demonstrated capacity to market and manage the facility;

2. Eligible Projects within economically distressed areas of the State will be given funding preference by the Authority. Economic distress, as determined by the Authority, may include, but is not limited to:

a. Loss of or major downsizing of major employer(s) in region;

b. Chronic unemployment or underemployment in the region;

c. Lack of economic diversification; and

d. Historical lack of private investment.

3. Eligible Local Development Corporations must begin paying back loan within three years of the initial draw down at the terms specified in the loan documents.

4. The Authority will only provide loans to fund the actual construction costs associated with a Community Industrial Building. All other costs such as those associated with land assembly, site preparation, utility extensions, marketing, and administration are not eligible to be funded by the Authority.

5. No more than one unoccupied Community Industrial Building per community will be funded under this program.

6. Eligible Community Industrial Building Projects must be located on a developable site in accordance with all State, federal and local regulations. Such site must have adequate utilities and services to support highest intended use of building.

7. All Projects funded under the Program are considered State Growth Related Capital Investments and may only be undertaken in locations that meet the requirements in 30 M.R.S.A. § 4349‑A(1).

8. Only Projects that are consistent with a municipality's Local Growth Management Program or Comprehensive Plan, or meet the requirements of 30‑A M.R.S.A. § 4349‑A sub-§ 1 are eligible for monies from the Fund.

9. Under this program, the Authority will not provide loans to refinance existing facilities or to finance or refinance facilities currently being constructed. Local Development Corporations may not request funds for a Project to supplant loan funds from other state or federal programs (e.g., Rural Development, CDBG, EDA, HUD) or revenue bonds already approved by the municipality.

Section 3. Application Procedures.

A. Phase I ‑ Application

1. An Applicant shall submit an application complying with the requirements of this rule on forms developed by the Authority as may be specified with supporting information as required by this rule and additional information as requested by the Authority.

2. The Authority shall be responsible for making application forms available.

3. Applications will be rated on the following criteria: problem, solution, commitment, citizen participation and evidence that Local Development Corporation has the rights to develop a Commercial Facility and control of the subject site.

a. Problem Statement:

Scope of Problems ‑ Identification and description of the nature and magnitude of the identified problems to be addressed with Community Industrial Building, including evidence of the loss of or major downsizing of major employer(s), chronic unemployment or underemployment, lack of economic diversification or, historical lack of private investment in the region.

b. Solution:

(i) Project Description ‑ Describe how funds will be used. Include a project budget.

(ii) Comprehensive Nature of Solution ‑ Description of how the activities relate to the community's total economic development effort. Include a description of how the project will address the need for new employment; retaining or improving existing employment opportunities or improving the competitiveness of an occupant business. The application must detail how the project will address the problems identified, and a plan to market and manage the facility.

(iii) Feasibility ‑ Identification of tasks, timetables and the responsible parties to implement the proposed solution. Application must also Identify the market need for a Community Industrial Building.

(iv) Right to develop ‑ Evidence that Local Development Corporation has the rights to develop a Commercial Facility and control of the subject site.

c. Citizen Participation ‑ Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, developers, local organizations and public officials, and how the involvement contributed to this application.

d. Commitment/Match ‑ Identify and describe how the community, and other organizations including private developers will contribute financial and/or technical resources to the project, and the status of those commitments.

4. No application will be considered complete unless all questions are answered, and all supporting information is provided.

5. Upon approval of an application by the Authority, a loan commitment shall be issued at the successful conclusion of Phase I, setting forth the terms and conditions under which the loan will be included in the program. The commitment shall include a requirement that the Phase II conditions be satisfactorily met and may specify special requirements applicable to the Project and requiring the submission in final form within a time specified of all appropriate documents, drawings, plans, specifications, appraisals, bonds, guarantees, permits, approvals, surveys, title insurance, opinions, financial statements, cost, other certifications and other instruments evidencing full compliance with the Authority's requirements and in form and content satisfactory to the Authority.

6. No commitment shall become effective until the Borrower has signed it and the Borrower has agreed to pay to the Authority the loan origination fees specified in the program application, and other applicable fees. Loan origination fees will not exceed 2% of the total loan.

7. If, upon examination of the application and supporting information, the Authority rejects an application, the Borrower shall be informed of the rejection and the reasons. Rejection of a Project may occur at any time during Phase I or prior to Phase II.

B. Phase II ‑ Project Planning

1. Local Development Corporations whose applications rank the highest after the scoring of the weighted criteria will be invited to participate in Phase II. Emphasis during this second phase will be developing the best Project to meet the community's industrial space needs. The Authority will work with the Local Development Corporation in evaluating the proposed site and building conceptualization and more fully planning the Project. During Phase II the Local Development Corporation will complete the following activities at its own expense:

a. Develop site plans, including plans for landscaping and lighting the building, surface water runoff control, utilities connections, and all other non‑eligible costs.

b. Develop a building design, including the foundation, structure and architectural design.

c. Determine the suitability of the proposed site, including soil analysis and municipal services.

d. Provide evidence of insurance against loss or damage to the building as well as fire protection for and maintenance of the building until it is sold.

e. Ensure that an adequate access road exists from public highway to the building lot.

f. Secure appropriate licenses and permits to construct, operate and occupy the building.

g. Ensure the site is consistent with all applicable state and local ordinances and requirements.

h. Ensure that the building lot is either owned by the Local Development Corporation or owned by an instrumentality of state, local or federal government.

2. Submissions and Review: The Local Development Corporation shall submit plans and specifications for the proposed Project, prepared by a registered Architect and Engineer in Maine, to the Authority for review. The plans and specifications shall clearly outline the scope of work for the Project including the following:

a. Site plan showing a boundary survey indicating property lines, all utilities including water, sewer and power, building foot print, landscaping, surface water runoff control and associated parking.

b. Floor plans, elevations wall sections, foundation plan, structural system, mechanical and electrical systems and details indicating the size, height and overall scope of the proposed building.

c. Specifications indicating the type and quality of the systems and material that will be used in the construction of the building.

3. Final documents shall be submitted to the Authority for review and approval prior to the closing of a loan. Prior to the start of the construction the Borrower will provide the Authority a set of construction documents for the Project.

C. Phase III ‑ Project Construction

Local Development Corporations that successfully complete Phase I and Phase II will close a loan with the Authority for all or a portion of the Construction Costs and begin Project Implementation.

1. Loans shall be given in an amount that corresponds with the funds available in the Fund and is reasonable to construct a Community Industrial Building as demonstrated by a contractor's bid package.

2. Interest on a loan shall be up to 2% over High Wall Street Prime Rate as published in the Wall Street Journal on the date of the loan commitment.

3. Loans must be secured by collateral having a fair market value sufficient to provide adequate security for the loan, and/or such guarantees and/or other financial support, or incentives from the municipality in which the Community Industrial Building is located. The Authority shall require a first lien on collateral.

4. The term of each loan shall be based on the Borrower's circumstances and the useful life of the Community Industrial Building but in no event will it exceed five (5) years.

5. The proceeds of the loan will be used only for Construction Costs.

6. If not paid sooner, the amount payable is principal and interest on the loan.

7. Periodic payments of interest shall be established in accordance with the Borrower's individual needs. The Authority may defer up to three (3) years the collection of interest from the Borrower for a loan involving Community Industrial Building which remains unoccupied following completion of the building. The Authority may provide that such deferred interest is not payable until sale of the building or the maturity of the loan, whichever occurs first, and in appropriate circumstances at the discretion of the Authority, interest due may be abated in whole or in part.

8. The Authority may limit its disbursements so that the undisbursed portion of the loan shall be sufficient at all times to cover the Project construction costs.

9. In the event of default, the principal of and interest on the loan may be declared immediately due and payable.

10. The Borrower will agree to the following terms and conditions in the loan documentation, as may be applicable:

a. The Borrower will comply with all applicable planning, zoning, sanitary, building and environmental laws, ordinances and regulations of the federal, state and local governments.

b. The Borrower will agree not to convey, lease or transfer any collateral for the loan without the prior written consent of the Authority.

c. The Borrower will expend no portion of the loan directly or indirectly for purposes other than those approved by the Authority.

d. The Borrower will keep insured to the satisfaction of the Authority all insurable property securing the loan and will maintain the collateral in good condition and repair.

e. The Borrower will not materially alter or relocate collateral without the prior written consent of the Authority.

f. The Borrower will comply with such other covenants as the Authority impose or establish in order to protect the Authority's interests. Any such other covenants shall be expressly set forth in the loan commitment or exhibits or attachments.

11. Use of Loan Proceeds. The Borrower shall use loan proceeds for the purposes stated in the commitment, and the borrower's rights under the commitment shall not be assignable.

12. Construction Inspection. The Borrower will allow the Authority or the Authority's representative access to the building site and/or building periodically to inspect all aspects of the work to check and verify that the work is being constructed in accordance with the construction documents.

13. Certification of Payments. The Borrower shall provide the Authority certificate of payment from the architect or engineer of record based on the architect's or engineer's evaluation of the work and on the data comprising the Contractor's Application for payment, that the work has progressed to the point indicated and, that to the best of the architect's or engineer's knowledge, information and belief, the quality and quantity of the work is in accordance with the Contract Documents.

Section 4. Community Industrial Buildings Program Administration.

1. Operating expenses of the Authority must be charged to the program and all repayments of loans must be credited to the fund. Expenses of the authority that arise out of assistance to municipalities and local development corporations under the Community Industrial Building Program may be charged against the proceeds of the sale or lease of community industrial buildings constructed under this section.

2. In order to protect the integrity of the program, the Authority may charge borrowers such administration, servicing and document preparation fees as the Authority deems reasonable.

Section 5. Waiver of Rule.

The Authority may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial. Any requests for waiver of the rule shall be made prior to the execution of a loan commitment.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. section 13120‑N(1)(D)
• EFFECTIVE DATE: July 13, 2003 - major substantive, 2003-188 accepted for filing June 13, 2003.
• EFFECTIVE DATE: Replaces 19-498 CMR ch. 10.
• NON-SUBSTANTIVE CORRECTION: July 8, 2003 - Section 3.B.3.
• NON-SUBSTANTIVE CORRECTION: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 2 Commercial Facilities Development Program

Code Me. R. 99-626 Ch. 2 Commercial Facilities Development Program {#sec-99-626-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--99-626 Ch. 2}

Summary: The Maine Rural Development Authority is responsible for administering the Commercial Facilities Development Program. This rule governs the application and approval process for financial assistance from the Program.

SECTION 1. DEFINITIONS

A. Act: "Act" means 5 MRSA Chapter 383, Subchapter IX.

B. Applicant: "Applicant" means any municipality, any governmental entity, any corporation, any partnership, any limited liability company, any private, nonprofit or public entity, organization or association, any individual or any other person which applies for assistance from the Program.

C. Authority: "Authority" means the Maine Rural Development Authority, or as the context requires, any agent, employee or other representative of the Authority.

D. Carrying Costs: "Carrying Costs" means reasonable costs incurred for the maintenance, protection and security of a Project prior to its completion or its occupancy or control by the Owner, including, but not limited to, insurance, taxes and interest.

E. Commercial Facility: "Commercial Facility" shall mean real estate and improvements used principally for commercial purposes or suitable for commercial use as defined in 5 MRSA §13120-B (4). The term commercial facilities includes, but is not limited to:

(1) Offices and office buildings;

(2) Manufacturing, processing, assembly and other industrial buildings and related improvements;

(3) Property used in connection with commercial fishing and other marine-related industries;

(4) Property used in conjunction with agricultural production, storage, processing, packing and transportation;

(5) Warehouses, transportation and distribution facilities;

(6) Service and repair facilities;

(7) Retail establishments; and

(8) Lodging, restaurant and entertainment facilities.

F. Comprehensive Plan: "Comprehensive Plan" shall mean a plan that is determined by the Executive Department, State Planning Office to be consistent with 30-A MRSA §4326(1-4), and has been adopted by the city or town, as applicable.

G. Construction Costs: "Construction Costs" means any cost or expenditure with respect to a Project, which is properly chargeable under the Internal Revenue Code of 1986, as amended, to the capital account of any person or state or local government. In no event shall "Construction Costs" include either "Carrying Costs" or the cost of providing and maintaining and plowing an adequate access road from a public highway to the Commercial Facility or maintaining water, sewer and power facilities or paying any service charge for water, sewer, power or other such services or utilities.

H. Development Project: "Development Project" means the acquisition of property and development of a Commercial Facility for subsequent sale or lease into private productive use.

I. Eligible Costs: "Eligible Costs" means Construction Costs.

J. Lease: "Lease", as defined at 5 MRSA §13120-8 (7), means a contract providing for the use of a Project or portions of a Project for a term of years for a designated or determinable rent. A lease may include an installment sales contract.

K. Local Growth Management Program: "Local Growth Management Program" shall mean the town has adopted a growth management program that certified by the Executive Department, State Planning Office, under 30-A MRSA §4347-A.

L. Local Development Corporation: "Local Development Corporation" shall have the meaning set forth in the Act, 5 MRSA §13120-8(9).

M. Municipality: "Municipality," as defined in 5 MRSA §13120-8(1 0), means any county, city or town in the state.

N. Owner: "Owner" means the entity or association (a) designated by the Authority as the recipient of financial assistance for a Project pursuant to the Program and (b) in which the Authority may have an ownership interest.

O. Program: "Program" means the Commercial Facilities Development Program.

P. Project: "Project" means (a) a Redevelopment Project or (b) a Development Project.

Q. Redevelopment Project: "Redevelopment Project" means the acquisition and redevelopment of a nonproductive Commercial Facility for subsequent return to productive use through sale or lease.

SECTION 2. ELIGIBLE DEVELOPMENT AND REDEVELOPMENT PROJECTS

The Authority may undertake a Development or Redevelopment Project, as owner or lender, for subsequent use and sale under the following conditions:

A. A Development Project must involve real estate that is zoned, sited, or otherwise suitable for development as a Commercial Facility. A Redevelopment Project must have been previously and materially used as a Commercial Facility, or must be suitable for adaptation to a commercial or industrial use.

B. A Redevelopment Project or Development Project must involve real estate that is currently not in productive commercial use or, with respect to a Redevelopment Project, is expected to be taken out of productive use within the immediate future;

C. The Redevelopment Project or Development Project must involve real estate that has not been placed under a purchase option or contract under circumstances that would reasonably indicate that the property would be developed without Authority assistance, or that the proposed use would not meet the other requirements of this Section 2.

D. The Authority, using due diligence, has determined that:

(1) There is a reasonable expectation that the Development or Redevelopment Project will become financially viable following its redevelopment;

(2) With respect to a Development Project, it will create employment opportunities and other economic benefits within the region; and

(3) The economic benefits, including the creation or restoration of employment opportunities, expected to result from the Development or Redevelopment Project justify the risks associated with the Authority's equity interest in the Development or Redevelopment Project.

E. Except as provided in Section 3, at least twenty-five percent (25%) of the total cost of the Development or Redevelopment Project will be borne by the Municipality, Local Development Corporation, or another entity.

F. To the extent the Development Project involves undeveloped land or personal property, such undeveloped land or personal property is part of the overall Redevelopment or Development Project that meets the requirements of this Section 2.

SECTION 3. EXCEPTIONS TO PUBLIC CONTRIBUTION REQUIREMENT

The Authority, with the advice of the Department of Economic and Community Development, the Department of Labor, the State Planning Office and such other agencies as the Authority determines are appropriate, may waive the requirements of Section 2 (E) or (F) above, if the Municipality in which the Development Project or Redevelopment Project is located has experienced a historical lack of private investment, and it is reasonably expected that private investment will not be available to assist with financing of the Project and one of the following conditions is met:

A. The Project is located in a Municipality that has experienced a sudden and severe economic dislocation, which may include but is not limited to:

(l) The loss of a significant percentage of jobs within the Municipality due to the closure or downsizing of a business or other employer;

(2) The loss of a significant percentage of the Municipality's tax base due to the closure or downsizing of a business or other commercial taxpayer; or

(3) The unanticipated loss of a significant percentage or component of a Municipality's economic development infrastructure as a result of an accident, natural disaster or other catastrophe; or

B. The Project is located in a Municipality that has experienced long-term economic distress, as evidenced by factors that may include, but are not limited to:

(1) An unemployment rate that is significantly greater than the average state unemployment rate;

(2) The significant migration of workers or population out of the area; and

(3) An average personal income that is significantly below the state average or considered to be at or below the poverty level as defined in 22 MRSA §5321.

SECTION 4. ADDITIONAL PROJECT ELIGIBILITY REQUIREMENTS

A. In order to be eligible for financial assistance from the Program, an Applicant must demonstrate that the Project will meet all the following criteria, as determined by the Authority:

(1) Market need for the Project;

(2) Economic need for the Project;

(3) Financial capacity to provide the Authority with a return of and on its investment;

(4) The Applicant has the right, title and interest in the property required to develop the Project; and

(5) Capacity to market and manage the Project.

B. No later than one year after the initial provision of financial assistance from the Program, the Owner must provide a financial return on the Authority's investment on the terms specified in the agreement with the Authority.

C. The Authority shall not provide financial assistance from the Program greater than the sum of the total costs for acquisition development and/or redevelopment of a Project, as determined by the Authority. All other costs, such as those associated with ongoing operations, marketing and administration, are not eligible for financial assistance from the Program.

D. The Authority will consider geographic location of a Project, to avoid over concentration of Authority projects in one area of the state.

E. A Project must be located on a developable site in accordance with all state, federal and local regulations. Such site must have adequate utilities and services to support the intended use of the building and the use of the building for business and commercial purposes.

F. The Authority shall consider the state economic development strategy and the policies and activities of the Department of Economic and Community Development in evaluating a Project.

G. [Repealed]

H. The Authority will not approve an application for financial assistance from the Program where, in the Authority's judgment, the Authority's financial assistance would supplant financial assistance from other federal, state or local development assistance programs The Authority will consider restructuring existing debt, if that restructuring makes the project feasible.

SECTION 5. APPLICATION PROCEDURES

A. Application

(1) An Applicant shall submit an application complying with the requirements of this rule on forms developed by the Authority as may be specified with supporting information as required by this rule and additional information as requested by the Authority.

(2) The Authority shall be responsible for making application forms available.

(3) In its evaluation of an application, the Authority will consider the following, in addition to other requirements of this Rule:

(a) Project Description - Describe how financial assistance from the Program will be used. Include a Project capital budget.

(b) Comprehensive Nature of Project - Description of how the Project relates to the Municipality's total economic development effort. Include a description of how the Project will address the requirements of Section 2, 3 or 4 of this Rule as applicable. The application must detail how the Project will address the problems identified and must include a plan to market and manage the facility, including an operating budget and pro forma cash flow projections.

(c) Feasibility - Identification of tasks, timetables and the responsible parties to implement the proposed Project. Application must also identity the market need for the project.

(d) Right to develop - Evidence of the Applicant's right, title and interest.

(e) Evidence of local support.

(f) Commitment/Match - Identity and describe the source, amount and terms of the matching funds, as applicable.

(4) No application will be considered complete unless all questions are answered and all supporting information is provided.

(5) Upon approval of an application by the Authority, a commitment shall be issued setting forth the terms and conditions under which the financial assistance from the Program will be provided. The commitment shall include a list of conditions that must be satisfactorily met. The following requirements may be specified.

Drawings, plans, specifications

Appraisals, bonds, guaranties

Permits, approvals, surveys, title insurance, opinions

Financial statements, cost, other certifications and

Other instruments evidencing full compliance with the Authority's requirements and in form and content satisfactory to the Authority.

(6) No commitment shall become effective until the Applicant has signed it and the Applicant has agreed to pay to the Authority the fees specified in the program application, and other applicable fees. Authority fees, excluding the Authority's costs in connection with the financial assistance, will not exceed 2% of the total financial assistance.

(7) If, upon examination of the application and supporting information, the Authority rejects an application, the Applicant shall be informed of the rejection and the reasons. Rejection of a Project may occur at any time.

B. Special Terms for Construction/Development Loans

(1) Construction/Development lending is financing to be used for acquiring property or rights to property, including land or structures, with the intent to develop or convert it to income-producing property; commercial use; industrial use; or similar uses, including the necessary costs of renovation or development of property. Due to the additional risks associated with construction lending including, but not limited to cost overruns and/or failure to complete, additional application materials may be required. An applicant may be required to submit all or some of the following before a commitment can be issued.

(a) Site plans, including plans for landscaping and lighting the building, surface water runoff control, utilities connections, and all other non‑eligible costs. The plans and specifications shall clearly outline the scope of work for the Project. Plans and Specifications documenting the following may be required: a boundary survey indicating property lines, all utilities including water, sewer and power, building footprint, landscaping, surface water runoff control and associated parking. The Applicant may be required to submit plans and specifications for the proposed Project that have been prepared by either a registered architect and engineer in Maine or another party acceptable to the Authority.

(b) Floor plans, elevations, wall sections, foundation plan, structural system, mechanical and electrical systems and details indicating the size, height and overall scope of the proposed building.

(c) Specifications indicating the type and quality of the systems and material that will be used in the construction of the building.

(d) Building design, including the foundation, structure and architectural design.

(e) Evidence of the suitability of the proposed site, including soil analysis and municipal services.

(f) Evidence of construction bonding or builders risk insurance.

(g) Evidence that an adequate access road exists to the project.

(h) Evidence that all appropriate licenses and permits to construct, operate and occupy the building have been obtained.

(i) Evidence that the site is consistent with all applicable ordinances and requirements.

(j) Evidence that the Applicant has right, title and interest to the Project.

(k) Final bid documents and an assignment of construction documents for the Project.

(l) Lien waivers and independent party inspection of work completion, at the Borrower's expense.

C. General Terms

(1) Financial assistance will be provided in an amount that corresponds with the funds available to the Authority and is reasonable to develop or redevelop a Project as demonstrated by a contractor's bid package.

(2) Financial assistance must provide a return to the Authority on such terms as will be acceptable to the Authority. Interest on any loan shall be up to 2% over the Wall Street Prime Rate as published in the Wall Street Journal on the date the Letter of Commitment is executed by the parties, provided that the Authority may require higher interest rates on any loan that is not repaid within five (5) years from the date of the loan.

(3) When the Authority is acting as principal, partner or investor, the Authority must be provided with title to the Development Project, or with stock or other equity interest in the Project, on such terms as will be acceptable to the Authority. When the Authority is acting as lender, a loan must be secured by collateral having a fair market value sufficient to provide adequate security for the loan, and/or such guarantees and/or other financial support, or incentives from the Municipality or other party as may be required to assure repayment and Project feasibility. The Authority may require a first lien on collateral.

(4) The term of the financial assistance must be based on the Applicant's financial need and circumstances, and the useful life of the Project. The principal balance and all accrued and unpaid interest must be repaid in full to the Authority no later than 20 years from the date of the loan.

(5) The financial assistance will be used only for acquisition, development or redevelopment costs and/or Construction Costs.

(6) Periodic payments shall be established in accordance with the Applicant's individual needs. The Authority may defer up to one (1) year's payment of interest and principal. The Authority may allow deferred principal and/or interest to be paid at the earlier of the date when the Project is sold, or loan maturity. When the Applicant shows extreme financial need, as determined in the discretion of the Authority, interest due may be abated in whole or in part.

(7) The Authority may limit its disbursements so that the undisbursed portion of the Project financing shall be sufficient at all times to cover the Project costs.

(8) In the event of default, the financial assistance may be declared immediately due and payable.

(9) The Applicant will agree to the following terms and conditions in the loan documentation, as may be applicable:

(a) The Applicant will comply with all applicable planning, zoning, sanitary, building and environmental laws, ordinances and regulations of the federal, state and local governments.

(b) The Applicant will agree not to convey, lease or transfer any collateral for the financial assistance without the prior written consent of the Authority.

(c) The Applicant will expend no portion of the financial assistance directly or indirectly for purposes other than those approved by the Authority.

(d) While the Project remains unoccupied and is owned by the Authority, it is declared by the Act to be property held for a legitimate public use and benefit and to be exempt from all taxes and special assessments of the state or any of its political subdivisions.

(e) The Applicant will keep insured to the satisfaction of the Authority all insurable property constituting the Project and will maintain the Project in good condition and repair.

(f) The Applicant will not materially alter or relocate collateral without the prior written consent of the Authority.

(g) The Applicant will comply with such other covenants as the Authority impose or establish in order to protect the Authority's interests. Any such other covenants shall be expressly set forth in the financial assistance commitment or exhibits or attachments.

(10) Use of Financial Assistance Proceeds. The Applicant shall use financial assistance proceeds for the purposes stated in the commitment and the Applicant's rights under the commitment shall not be assignable, except to the Owner.

(11) Inspection. The Applicant will allow the Authority or its designee access to the Project at any reasonable time to inspect the construction, redevelopment or operation of the Project.

(12) Certification of Payments. The Applicant shall provide to the Authority a certificate of payment from the architect or engineer of record, or such other authorized agent, based on the architect's or engineer's or agent's evaluation of the work and on the data comprising the contractor's application for payment, that the work has progressed to the point indicated and, that to the best of the architect's or engineer's or agent's knowledge, information and belief, the quality and quantity of the work is in accordance with applicable development or redevelopment plans and agreements. Construction loan advances should be made in a manner that limits risks of intervening mechanic liens, which may include requirement of dual party checks and lien waivers exchanged with all payment to contractors, subcontractors and others working on a Project.

SECTION 6. COMMERCIAL FACILITIES DEVELOPMENT PROGRAM ADMINISTRATION

A. Operating expenses of the Authority must be charged to the Program and all repayments of financial assistance must be credited to the Program. Expenses of the Authority that arise out of financial assistance to Municipalities and Applicants under the Program may be charged against any proceeds of the sale or lease of Projects.

B. In order to protect the integrity of the Program, the Authority may charge Applicants such administration, servicing and document preparation fees as the Authority deems reasonable.

SECTION 7. LENDING POWER

The Authority may not, pursuant to the Program, make any commitment to lend, or lend, money with respect to a Project prior to the effective date of an act permitting the Authority to do so.

SECTION 8. WAIVER OF RULE

The Authority may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, or required by state, federal or municipal laws or in cases where deviation from the rule is insubstantial. Waiver of any requirement of the rule must be made prior to the execution of a financial assistance commitment.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §13120-L; 5 M.R.S.A. §13120-N(l)(D)
• EFFECTIVE DATE: August 2, 2003 - filing 2003-255
• AMENDED: January 21, 2014 – filing 2014-007 (Amendment 1)
• AMENDED: September 3, 2016 – filing 2016-147 (Amendment 2)

Chapter 3 Rural Manufacturing and Industrial Site Redevelopment Program

Code Me. R. 99-626 Ch. 3 RURAL MANUFACTURING AND INDUSTRIAL SITE REDEVELOPMENT PROGRAM-Amendment 1 {#sec-99-626-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--99-626 Ch. 3}

Summary: The Maine Rural Development Authority is responsible for administering the Rural Manufacturing and Industrial Site Redevelopment Program. The Program is intended to provide grants for technical assistance, planning or implementation related to the rehabilitation, revitalization and marketing of manufacturing and industrial sites in rural communities. This rule governs the application and approval process for financial assistance from the Program.

SECTION 1. DEFINITIONS

A. Act: "Act" means 5 MRSA Chapter 383, Subchapter IX.

B. Applicant: "Applicant" means any municipality in which an Eligible Industrial or Manufacturing Site is located, or any corporation, any partnership, any limited liability company, any private, nonprofit or public entity, organization or association, any individual or any other person which owns an Eligible Industrial or Manufacturing Site.

C. Authority: "Authority" means the Maine Rural Development Authority, or as the context requires, any agent, employee or other representative of the Authority.

D. Eligible Implementation Grant Project: "Eligible Implementation Grant Project" means the reasonable costs and expenses of redevelopment and marketing of an eligible industrial or manufacturing site that is located in a community that has experienced severe economic decline and employment loss due to the nonproductive nature of the site, in order to ready the site for productive use, including, without limitation, engineering, infrastructure, access, marketing or technology validation expenses.

E. Eligible Industrial or Manufacturing Site: "Eligible Industrial or Manufacturing Site" shall mean a site in a rural location in the State that formerly was used for manufacturing or other industrial use, and is no longer in productive use,

F. Eligible Technical Assistance or Planning Grant Project: "Eligible Technical Assistance or Planning Grant Project" means the reasonable costs and expenses of investigation, research, study, analysis or planning in connection with an effort to redevelop an Eligible Industrial or Manufacturing Site, including, without limitation, the conduct or creation of an environmental site assessment, infrastructure analysis, market study, business plan or other similar analysis, report, study or plan, and/or the technical assistance required to select or coordinate such services.

G. Eligible Forest Economy Community Grant Project: “Eligible Forest Economy Community Grant Project means either an Eligible Implementation Grant Project or an Eligible Technical Assistance or Planning Grant Project that is also eligible for grant funds for the project under the Sub-Grant Program.

H. Program: "Program" means the Rural Manufacturing and Industrial Site Redevelopment Program.

I. Project: "Project" means (a) a Planning Grant Project, or (b) an Implementation Grant.

J. Rural: "Rural" means any location in the State not within the legal limits of a municipality with a population of over 50,000 residents.

K. Sub-Grant Program: “Sub-Grant Program” means the “Increasing Prosperity in Maine’s Forest Economy Communities” sub-grant program approved for funding from the Norther Border Regional Commission pursuant to a Grant Agreement dated August 13, 2019 between the Northern Border Regional Commission and the Maine Development Foundation, NRBC Grant Agreement Number NBRC19GRF09.

SECTION 2. TECHNICAL ASSISTANCE AND PLANNING GRANTS FOR PROJECTS OTHER THAN ELIGIBLE FOREST ECONOMY COMMUNITY GRANT PROJECTS

The Authority will not provide direct technical assistance, but may provide grants for Applicants with Eligible Technical Assistance or Planning Grant Projects other than Eligible Forest Economy Community Grant Projects.

A. Grant Application Process. From time to time, the Authority may determine to make technical assistance or planning grants available. At such times, the Authority shall give public notice of the date by which applications for grants must be received, and what must be submitted for an application. The public notice may include other terms, conditions or limitations on such grants, including the maximum number or amount of such grants, that the Trustees determine are appropriate.

B. Grant Application Contents. An Applicant shall submit an application complying with the requirements of this rule on forms developed by the Authority as may be specified with supporting information as required by this rule and additional information as requested by the Authority. The Authority shall make application forms available. The following minimum information shall be required:

1. Executive Summary: Summary description of the project, work product, and desired outcome. Describe previous local level of reliance on the closed facility
2. Statement of the amount of grant funding being applied for and matching funds, if any.
3. Sources/Uses Chart: A chart identifying each of the Sources of funds for the project; the sum total of these Sources; each of the Uses of funds for the project; the sum total of these Uses. Sources and Uses totals must match.
4. Description of what State agencies and/or regional economic development organizations/resources and/or consultants would assist in providing technical assistance or the planning services.
5. Project Narrative

i. Provide data/background demonstrating severe economic decline and employment loss, event/facility closure date, including but not limited to municipal tax revenues, residents formerly directly employed, residents and supply chain businesses that provided services to the site operators or employees.

ii. Describe lack of staff capacity and thus need to hire someone to provide technical assistance;

iii. Discuss need for grant assistance, likelihood of success, economic impact;

iv. Discuss work product and expected outcome (jobs, direct and indirect; tax revenues, private investment);

v. Discuss: existing facilities (on site and other, e.g. rail, ports, etc.), community support (letters), regional collaboration/consistency with regional plan, time frame for completion of redevelopment plan, regulatory restrictions on use;

1. Collaboration / Committee Formation: Describe the nature and extent of community support for the project, as well as the plan for formation of Redevelopment Committee made up of local residents and owner of site to steer redevelopment plan.
2. Contract: Provide copies of all relevant private sector and/or government contracts or sample contracts related to the redevelopment, remediation, and/or marketing plan
3. Budget: Estimate cost of the redevelopment project, qualified expenses include future costs only, planning/technical staff, materials, travel, other resources including municipal and private funds, or other match, including in-kind match.

C. Grant Application Selection. Following the grant application deadline imposed by the Authority, the Authority shall review and score all of the applications, or ask a service provider to review and score all applications. Applicants may be asked to submit additional materials as part of the review process. Grant applications shall be selected based upon the highest scores from a review of the applications. The total number of grants awarded and total amount of each grant, as well as the aggregate amount of all grants, shall be subject to the discretion of the Authority. Grant applications may be awarded in the amount requested or in such lesser amount as the Authority may determine appropriate. All grant awards shall be made by the Authority following a vote at a regularly scheduled meeting of the Trustees.

Application scoring shall be based on the following factors:

Whether the project involves a nonproductive industrial or manufacturing sites located in communities that have experienced severe economic decline and employment loss due to the nonproductive nature of the site and insufficient technical or planning personnel or resources.

Amount of matching funds committed to the project

Demonstrated community support

Likelihood of ultimate completion of redevelopment of site.

Potential impact of successful completion of redevelopment.

Consistency with any applicable regional economic development plan.

The Trustees shall determine, in advance of review of applications, the specific weight to be given to each factor, provided however, the factor described in subsection (C)(1) shall be given more weight than any other single factor.

D. Grant Recipient Obligations

Upon receipt of a technical assistance or planning grant, the Applicant shall execute an Agreement with the Authority that contains the following minimum terms, as well as any other terms determined reasonable or necessary by the Authority:

The Applicant will use the grant only for the purposes for which it was awarded.

The Applicant will repay the full amount of the grant to the Authority in the event of a material misrepresentation in the Grant Application, or in the event the grant is not used for the purposes for which it was awarded, or there is other material breach of Grant Agreement.

The Applicant shall form a Redevelopment Committee made up of local residents and site owner (or their representative) to steer redevelopment plan.

The Applicant will provide periodic updates required by the Authority for monitoring purposes, which updates may include local Redevelopment Committee minutes and other data, and verification that grants have had the intended results

The Authority may require disbursement of the grant to be in parts over time upon completion of certain benchmarks.

SECTION 3. IMPLEMENTATION GRANTS FOR PROJECTS OTHER THAN ELIGIBLE FOREST ECONOMY COMMUNITY GRANT PROJECTS.

The Authority may provide grants for Applicants with Eligible Implementation Grant Projectsother than Eligible Forest Economy Community Grant Projects.

Grant Application Process

From time to time, the Authority may determine to make implementation grants available. At such times, the Authority shall give public notice of the date by which applications for implementation grants must be received, and what must be submitted for an application. The public notice may include other terms, conditions or limitations on such grants, including the maximum number or amount of such grants, that the Trustees determine are appropriate.

Grant Application Contents. An Applicant shall submit an application complying with the requirements of this rule on forms developed by the Authority as may be specified with supporting information as required by this rule and additional information as requested by the Authority. The Authority shall make application forms available. The following minimum information shall be required:

a. Executive Summary: Summary description of project; reason for application, work product, and desired outcome. Describe previous local level of reliance on the closed facility

Statement of the amount of grant funding being applied for and matching funds, if any.

Sources/Uses Chart: A chart identifying each of the Sources of funds for the project; the sum total of these Sources; each of the Uses of funds for the project; the sum total of these Uses. Sources and Uses totals must match.

Description of what State agencies and/or regional economic development organizations/resources and/or consultants would assist in completion of project.

Project Narrative

i. Provide data/background demonstrating severe economic decline and employment loss, event/facility closure date, including but not limited to municipal tax revenues, residents formerly directly employed, residents and supply chain businesses that provided services to the site operators or employees.

ii. Discuss need for grant assistance, likelihood of success, economic impact;

iii. Discuss work product and expected outcome (jobs, direct and indirect; tax revenues, private investment);

iv. Discuss: existing facilities (on site and other, e.g. rail, ports, etc.), community support (letters), regional collaboration/consistency with regional plan, time frame for completion of redevelopment plan, regulatory restrictions on use;

Collaboration / Committee Formation: Describe the nature and extent of community support for the project, including, if applicable, the involvement of a Redevelopment Committee made up of local residents and owner of site to steer redevelopment plan.

Contract: Provide copies of all relevant private sector and/or government contracts or sample contracts related to the redevelopment, remediation, and/or marketing plan.

Budget: Estimate cost of the redevelopment project, qualified expenses include future costs only, planning/technical staff, materials, travel, other resources including municipal and private funds, or other match, including in-kind match.

Relationship to Regional Economic Development Plan, if any.

C. Grant Application Selection. Following the grant application deadline imposed by the Authority, the Authority shall review and score all of the applications, or ask a service provider to review and score all applications. Applicants may be asked to submit additional materials as part of the review process. Grant applications shall be selected based upon the highest scores from a review of the applications. The total number of grants awarded and total amount of each grant, as well as the aggregate amount of all grants, shall be subject to the discretion of the Authority. Grant applications may be awarded in the amount requested or in such lesser amount as the Authority may determine appropriate. All grant awards shall be made by the Authority following a vote at a regularly scheduled meeting of the Trustees.

Application scoring shall be based on the following weighted factors:

Amount of matching funds committed to the project (5-25%)

Demonstrated community support (5-25%)

Likelihood of ultimate completion of redevelopment of site. (10-40%)

Potential impact of completion of redevelopment of site (10-40%)

Consistency with any applicable regional economic development plan (5-25%)

The Trustees shall determine, in advance of review of applications, the specific weight to be given to each factor.

D. Grant Recipient Obligations

Upon receipt of an implementation grant, the Applicant shall execute an Agreement with the Authority that contains the following minimum terms, as well as any other terms determined reasonable or necessary by the Authority:

The Applicant will use the grant only for the purposes for which it was awarded.

The Applicant will repay the full amount of the grant to the Authority in the event of a material misrepresentation in the Grant Application, or in the event the grant is not used for the purposes for which it was awarded, or there is other material breach of Grant Agreement.

The Applicant will provide periodic updates required by the Authority for monitoring purposes, which updates may include verification that grants have had the intended results.

The Authority may require disbursement of the grant to be in parts over time upon completion of certain benchmarks.

SECTION 3A. TECHNICAL ASSISTANCE AND PLANNING GRANTS FOR PROJECTS THAT ARE ELIGIBLE FOREST ECONOMY COMMUNITY GRANT PROJECTS

The Authority will not provide direct technical assistance, but may provide grants for Applicants with Eligible Technical Assistance or Planning Grant Projects that are Eligible Forest Economy Community Grant Projects. The Authority may, through a service provider, provide application assistance and administrative support to potential Applicants and/or successful Applicants for Eligible Forest Economy Community Grant Projects, as determined and approved by the Trustees.

A. Grant Application Process. From time to time, the Authority may determine to make technical assistance or planning grants available for Eligible Technical Assistance or Planning Grant Projects that are Eligible Forest Economy Community Grant Projects. At such times, the Authority shall ensure that notice of the availability of such grants is given to all potentially eligible Applicants within the state, as identified in the Sub-Grant Program Agreement. The Authority shall also ensure such potential Applicants are provided with the timeline for acceptance of applications, what must be submitted for an application, and such other information that the Trustees determine is appropriate. The notice and information may be provided by the Authority or by a service provider to the Authority.

B. Grant Application Contents. An Applicant shall submit an application complying with the requirements of this rule on forms developed by, or otherwise acceptable to, the Authority, with supporting information as required by this rule and additional information as requested by the Authority or its service provider. The following minimum information shall be required in the application, or in additional materials submitted by the Applicant or otherwise collected by the Authority or its service provider:

1. Executive Summary: Summary description of the project, work product, and desired outcome. Describe previous local level of reliance on the closed facility
2. Statement of the amount of grant funding being applied for and matching funds, if any, to be received from the Sub-Grant Program or other sources.
3. Sources/Uses Chart: A chart identifying each of the Sources of funds for the project; the sum total of these Sources; each of the Uses of funds for the project; the sum total of these Uses. Sources and Uses totals must match.
4. Description of what State agencies and/or regional economic development organizations/resources and/or consultants would assist in providing technical assistance or the planning services.
5. Project Narrative

i. Provide data/background demonstrating severe economic decline and employment loss, event/facility closure date, including but not limited to municipal tax revenues, residents formerly directly employed, residents and supply chain businesses that provided services to the site operators or employees.

ii. Describe lack of staff capacity and thus need to hire someone to provide technical assistance;

iii. Discuss need for grant assistance, likelihood of success, economic impact;

iv. Discuss work product and expected outcome (jobs, direct and indirect; tax revenues, private investment);

v. Discuss: existing facilities (on site and other, e.g. rail, ports, etc.), community support (letters), regional collaboration/consistency with regional plan, time frame for completion of redevelopment plan, regulatory restrictions on use;

1. Collaboration / Committee Formation Plan: Describe the nature and extent of community support for the project, as well as the plan for formation of Redevelopment Committee made up of local residents and owner of site to steer redevelopment plan. To the extent the committee is not in place at time of application, formation or identification of the committee will be required under the Grant Agreement required under Subsection (D) below, prior to grant funding, for successful grant applicants.
2. Contract: Provide copies of all relevant private sector and/or government contracts or sample contracts related to the redevelopment, remediation, and/or marketing plan. To the extent not available at time of application, such materials will be required under the Grant Agreement required under Subsection (D) below, prior to grant funding, for successful grant applicants.
3. Budget: Estimate of cost of the overall redevelopment project, qualified expenses (include future costs only), planning/technical staff, materials, travel, other resources including municipal and private funds, or other match, including in-kind match.

C. Grant Application Selection. The Authority shall review and score all of the applications, or ask a service provider to review and score all applications. Applicants may be asked to submit additional materials as part of the review process. Application scoring shall be based on a qualitative assessment and recommendation by the Authority’s service provider, based upon its review of the Application, additional due diligence, and relative comparison of the Project and the Application to other Projects and Applications for Program grants, as well as the total amount of available grant funds (from the Program and other sources) for the Project and other Eligible Projects. The assessment and recommendation shall consider the following factors:

Whether the project involves a nonproductive industrial or manufacturing sites located in communities that have experienced severe economic decline and employment loss due to the nonproductive nature of the site and insufficient technical or planning personnel or resources. Projects that meet this requirement will be given preference in the award of grants, but such preference shall not mean that all projects that meet this requirement will obtain full funding before others that do not have such preference receive any funding.

Potential impact of successful completion of redevelopment.

Alignment of intended post remedial use with available forest products market research.

The total number of grants awarded and total amount of each grant, as well as the aggregate amount of all grants, shall be subject to the discretion of the Authority. Grant applications may be awarded in the amount requested or in such lesser amount as the Authority may determine appropriate. All grant awards shall be made by the Authority following a vote at a regularly scheduled meeting of the Trustees.

D. Grant Recipient Obligations

Upon receipt of a technical assistance or planning grant, the Applicant shall execute an Agreement with the Authority that contains the following minimum terms, as well as any other terms determined reasonable or necessary by the Authority:

The Applicant will use the grant only for the purposes for which it was awarded.

The Applicant will repay the full amount of the grant to the Authority in the event of a material misrepresentation in the Grant Application, or in the event the grant is not used for the purposes for which it was awarded, or there is other material breach of Grant Agreement.

The Applicant shall form a Redevelopment Committee made up of local residents and site owner (or their representative) to steer redevelopment plan. This requirement may be met by designating an existing municipal committee in the case the municipality is the site owner, provided such committee meets the other requirements of this subparagraph.

The Applicant will provide periodic updates required by the Authority for monitoring purposes, which updates may include local Redevelopment Committee minutes and other data, and verification that grants have had the intended results

The Authority may require disbursement of the grant to be in parts over time upon completion of certain benchmarks.

To the extent not available at time of application, copies of contracts for third parties who may provide technical assistance or planning services may be required, prior to grant funding.

SECTION 3B. IMPLEMENTATION GRANTS FOR PROJECTS THAT ARE ELIGIBLE FOREST ECONOMY COMMUNITY GRANT PROJECTS.

The Authority may provide grants for Applicants with Eligible Implementation Grant Projectsthat are Eligible Forest Economy Community Grant Projects.

A. Grant Application Process

From time to time, the Authority may determine to make implementation grants available. At such times, the Authority shall ensure that notice of the availability of such grants is given to all potentially eligible Applicants within the state, as identified in the Sub-Grant Program Agreement. The Authority shall also ensure such potential Applicants are provided with the timeline for acceptance of applications, what must be submitted for an application, and such other information that the Trustees determine is appropriate. The notice and information may be provided by the Authority or by a service provider to the Authority.

B. Grant Application Contents. An Applicant shall submit an application complying with the requirements of this rule on forms developed by, or otherwise acceptable to, the Authority as may be specified with supporting information as required by this rule and additional information as requested by the Authority. The following minimum information shall be required in the application or in additional materials submitted by the Applicant or otherwise collected by the Authority or its service provide:

a. Executive Summary: Summary description of project; reason for application, work product, and desired outcome. Describe previous local level of reliance on the closed facility

Statement of the amount of grant funding being applied for and matching funds, if any, to be received from the Sub-Grant Program or other sources.

Sources/Uses Chart: A chart identifying each of the Sources of funds for the project; the sum total of these Sources; each of the Uses of funds for the project; the sum total of these Uses. Sources and Uses totals must match.

Description of what State agencies and/or regional economic development organizations/resources and/or consultants would assist in completion of project.

Project Narrative

i. Provide data/background demonstrating the project meets the requirements for an Eligible Implementation Grant Project, including information regarding the community’s severe economic decline and employment loss, the event/facility closure date, including but not limited to municipal tax revenues, residents formerly directly employed, residents and supply chain businesses that provided services to the site operators or employees.

ii. Discuss need for grant assistance, likelihood of success, economic impact;

iii. Discuss work product and expected outcome (jobs, direct and indirect; tax revenues, private investment);

iv. Discuss: existing facilities (on site and other, e.g. rail, ports, etc.), community support (letters), regional collaboration/consistency with regional plan, time frame for completion of redevelopment plan, regulatory restrictions on use;

Collaboration / Committee Formation: Describe the nature and extent of community support for the project, including, if applicable, the involvement of a Redevelopment Committee made up of local residents and owner of site to steer redevelopment plan.

Contract: Provide copies of all relevant private sector and/or government contracts or sample contracts related to the redevelopment, remediation, and/or marketing plan. To the extent not available at time of application, such materials may be required under the Grant Agreement required under Subsection (D) below, prior to grant funding, for successful grant applicants.

Budget: Estimated overall cost of the redevelopment project, qualified expenses (include future costs only), planning/technical staff, materials, travel, other resources including municipal and private funds, or other match, including in-kind match.

Relationship to Regional Economic Development Plan, if any.

C. Grant Application Selection. The Authority shall review and score all of the applications, or ask a service provider to review and score all applications. Applicants may be asked to submit additional materials as part of the review process. Application scoring shall be based upon a qualitative assessment and recommendation by the Authority’s service provider, based upon its review of the Application, additional due diligence, and relative comparison of the Project and the Application to other Projects and Applications for Program grants, as well as the total amount of available grant funds (from the Program and other sources) for the Project and other Eligible Projects. The assessment and recommendation shall consider the following factors:

Strength of plan for redevelopment and marketing of site.

Demonstrated community support

Likelihood of ultimate completion of redevelopment of site.

Potential impact of completion of redevelopment of site

Consistency with any applicable regional economic development plan

Alignment of intended post remedial use with available forest products market research.

Higher scoring applications will be given preference for grant awards, but such preference shall not mean that all projects with preference will be fully funded before those with lower preference receive any funding.

The total number of grants awarded and total amount of each grant, as well as the aggregate amount of all grants, shall be subject to the discretion of the Authority. Grant applications may be awarded in the amount requested or in such lesser amount as the Authority may determine appropriate. All grant awards shall be made by the Authority following a vote at a regularly scheduled meeting of the Trustees.

D. Grant Recipient Obligations

Upon receipt of an implementation grant, the Applicant shall execute an Agreement with the Authority that contains the following minimum terms, as well as any other terms determined reasonable or necessary by the Authority:

The Applicant will use the grant only for the purposes for which it was awarded.

The Applicant will repay the full amount of the grant to the Authority in the event of a material misrepresentation in the Grant Application, or in the event the grant is not used for the purposes for which it was awarded, or there is other material breach of Grant Agreement.

The Applicant will provide periodic updates required by the Authority for monitoring purposes, which updates may include verification that grants have had the intended results.

The Authority may require disbursement of the grant to be in parts over time upon completion of certain benchmarks.

SECTION 4. PROGRAM ADMINISTRATION

A. Operating expenses of the Authority for administration of the Program must be charged to the Program and all repayments of financial assistance must be credited to the Program. Expenses of the Authority that arise out of financial assistance to Municipalities and Applicants under the Program may be charged to the Fund.

B. In order to protect the integrity of the Program, the Authority may charge Applicants such administration, servicing and document preparation fees as the Authority deems reasonable.

The Authority may contract with a service provider to assist with certain aspects of Program Administration, the cost of which shall be considered operating expenses as referenced in subparagraph A above.

SECTION 5. GRANT POWERS AND AGGREGATE LIMITS

The Authority may not, pursuant to the Program, make any commitment to a grant with respect to a Project prior to the effective date of an act permitting the Authority to do so. In no event shall the Authority make aggregate grants under the Program for more than $600,000 for projects other than Eligible Forest Community Projects, or more than an amount equal to $650,000, less any service provider expenses for Program Administration related to Eligible Forest Community Projects, for grants for projects that are Eligible Forest Community Projects, but the Trustees may set whatever lower aggregate limits that they determine to be prudent, and nothing herein shall compel the Authority to provide any grants.

SECTION 6. WAIVER OF RULE

The Authority may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, or required by state, federal or municipal laws or in cases where deviation from the rule is insubstantial. Waiver of any requirement of the rule must be made prior to the execution of a financial assistance commitment.

History

• STATUTORY AUTHORITY: 5 M.R.S. §§ 13120-L, 13120-R
• EFFECTIVE DATE: May 9, 2018 - filing 2018-078
• EFFECTIVE DATE: June 7, 2020 – Amendment 1, filing 2020-132
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

99-639 ConnectMaine Authority

Chapter 101 ConnectMaine Authority

Code Me. R. 99-639 Ch. 101 Connectmaine Authority {#sec-99-639-ch.-101 omnilex-key=us-me-regs-official--dept-independent-agencies--99-639 Ch. 101}

SUMMARY: This Chapter describes the operation of the ConnectMaine Authority.

§ 1 PURPOSE 3

§ 2 DEFINITIONS 3

§ 3 REQUIRED FILING OF DATA 5

A. Communications Service Provider 5

§ 4 PROTECTION OF CONFIDENTIAL INFORMATION 6

A. Protected Information 6

B. Removal of Confidential Designation 6

C. Exception to Public Record Law 7

§ 5 DESIGNATION OF BROADBAND SERVICE AND ELIGIBLE AREAS 7

A. Broadband Service 7

B. Unserved Areas 7

C. Underserved Areas 8

D. Opportunity to Review Proposed Designation of Unserved and Underserved Areas 8

§ 6 CONNECTMAINE AUTHORITY SUPPORT 8

A. Eligibility Criteria 8

B. Prioritization Infrastructure Projects 8

C. Eligible Applicants 9

D. Eligible Activities 10

E. Application Process 10

F. Financial Commitment 12

G. Project Completion and Evaluation 12

H. Infrastructure Grant Tracking 13

§ 7 CONNECTME FUND 14

A. Assessment 14

B. Reporting and Remittance 14

C. Additional Funds…………………………………………………………………………15

D. Fund Administrator 15

§ 8 WAIVER OF PROVISIONS OF CHAPTER 15

§ 1 PURPOSE

The purpose of this Chapter is to implement the provisions of the Advanced Technology Infrastructure Act contained in 35-A M.R.S., Chapter 93. This Chapter describes the operation of the ConnectMaine Authority.

As stated in 35-A M.R.S. §9204-A, duties of the Authority include:

1. Establish criteria defining unserved and underserved areas;

2. Promote use of broadband service;

3. Support local and regional broadband planning;

4. Support broadband investment;

5. Facilitate state support of deployment of broadband infrastructure;

6. Collect and disseminate information; and

7. Administer funds.

§ 2 DEFINITIONS

As used in this Chapter, the following terms have the following meanings.

A. Advanced Communications Technology Infrastructure. “Advanced communications technology infrastructure” means any communications technology infrastructure or infrastructure improvement that expands the deployment of or improves the quality of broadband service or fixed wireless service coverage and can perform common applications and network service.

B. Authority. "Authority" means the ConnectMaine Authority established in 35-A M.R.S. §9203.

C. Broadband Service. “Broadband service” means a two-way, always-on, communications service that provides access to public data networks and the Internet , without usage limits and meets certain performance criteria determined annually by the Authority pursuant to §5 of this Chapter to be necessary to use common applications and network services.

D. Common Applications and Network Service. “Common Applications and Network Service” means the ability to deliver multiple commonly used applications simultaneously for consumer use over the network. Including:

Real-time, synchronous voice and video communication, including video conferencing used in remote learning, telehealth, and remote working;

Audio and video streaming;

Network and cloud-based applications; including office productivity tools, e-commerce, and government services;

Network file and data storage, sharing, retrieval, visualization, and search;

E-Sports, interactive gaming, and other recreational use;

Home and business automation, security, and telemetry; and

Any other application or network service that facilitates communication, and information exchange for the purposes of education, business use, telemedicine and other economic purposes.

E. Communications Service. “Communications service” means any wireline voice, satellite, data, fixed wireless data or video retail service.

F. Communications Service Provider. “Communications service provider” means:

1. Any entity offering communications service to customers in the State; or

2. Any facilities-based provider of mobile wireless voice or data retail service that voluntarily chooses to be assessed by the Authority under 35-A M.R.S. §9211 sub 2.

G. Infrastructure. “Infrastructure” means a physical component or collection of physical components that provide the basic support for distributing advanced communication technology services.

H. Interconnected Voice over Internet Protocol Service (Interconnected VoIP). “Interconnected Voice over Internet Protocol Service” or “interconnected VoIP” means a service that enables real-time, two-way voice communications; requires a broadband connection from the user’s location; requires internet protocol-compatible customer premises equipment (CPE); and permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

I. Line. A "line" is any wired or wireless connection capable of real-time concurrent inbound or outbound voice communication calls that are made or received to or from the public switched telephone network. For the purposes of this Chapter, private branch exchange (PBX) lines and Centrex lines are considered to be lines. For the purposes of this Chapter, the number of lines a service provider provides to a subscriber shall be deemed to equal the number of inbound or outbound calls the subscriber can maintain at the same time using the service provider’s service.

J. Subscriber Location. A “subscriber location” means any location at which there could be one or more subscribers of communications service, including but not limited to a house, apartment, apartment complex, condo complex, other dwelling unit, a business, business complex, medical facility, community building, government facility, or other facility.

K. Mobile Communications Service Provider. “Mobile communications service provider” means any facilities-based provider of retail mobile wireless voice or data.

L. Voice Network Service Provider. “Voice Network Service Provider” means a voice service provider that offers its subscribers the means to initiate or receive voice communications using the public switched telephone network.

M. Underserved Area. “Underserved Area” means any geographic area where broadband service exists, but where the Authority has determined that the service is inadequate pursuant to criteria set forth in section 5(C) of this Chapter.

N. Unserved Area. “Unserved Area” means any geographic area that the Authority has determined is without broadband service pursuant to criteria set forth in section 5(B) of this Chapter.

§ 3 REQUIRED FILING OF DATA

In order to achieve the purpose, set forth in §1, the following is required:

A. Communications Service Provider. The authority shall collect data annually from communications service providers and any wireless provider providers that own or operate advanced communications technology infrastructure in the State data concerning infrastructure deployment for the purpose of developing mapping information to assist the authority in implementing the provisions of section 9202-A: pricing data for advertised retail pricing for broadband services offered in the State and revenue data for the purpose of assessing communications service providers subject to section 9211. The authority shall permit providers that have provided data to the authority at a level of detail that the authority has determined acceptable to continue to provide the data in the same format. For mapping data, the authority, whenever possible, shall use data formats consistent with data formats used for mapping at the federal level.

1. Pricing data for advertised retail pricing for broadband services offered in the State:

a. Narrative description of any affordability option and the relevant qualifying criteria and the number of subscribers who have taken advantage of this provision within the prior year;

b. Narrative description of range of pricing and service options available in the State;

c. The cost and speeds of the most subscribed to standalone internet offering;

d. The cost, speeds, and other components of the most subscribed to bundle or package that includes internet service;

e. Cost range for 100mbps/100mpbs or faster service; and

f. Revenue data for the purpose of assessing communications service providers subject to §7.

2. Data to help the authority determine extent of broadband service in Maine:

a. Address level data that includes the technology and maximum speeds available; or

b. A map that depicts points showing the extent of broadband service provided by the provider and delineates the availability of different service speeds, including areas where 25mbps/3mbps is available; where 50mbps download and 10mbps upload is available; where 100mbps download and 20mbps upload is available; and anywhere where 100mbps/100mbpsor faster is available; or

c. Other information that depicts points showing the extent of service availability, the type of broadband service provided and actual delivered maximum service speeds and latency.

3. If a communications service provider does not provide ConnectMaine with data set forth in §3 within three months of the annual request in the format ConnectMaine requested, that provider will not be eligible for ConnectMaine funding for the following round of grants, or until the data is provided, whichever comes first, absent an affirmative vote by the board prior to opening a grant round that a provider is eligible.

4. Reports containing data set forth in §3 for the previous year are due within one month of filing the required Federal Communications 477 data or its successor. Filings shall be made via a secure electronic transmission.

5. Additional Information. The Authority may request and communications service providers may voluntarily provide additional information to determine availability of broadband service in specific geographic locations to assist in evaluating or developing infrastructure grant proposals. Any information collected pursuant to this subsection shall be held as confidential by the Authority and may be used for only the purposes set forth in this subsection.

§ 4 PROTECTION OF CONFIDENTIAL INFORMATION

A. Protected Information. Pursuant 35-A M.R.S. §9207, all data concerning infrastructure deployment, pricing and revenue data included but not limited to service area and types of service data provided to the Authority is confidential and therefore not a public record under Title 1, section 402, subsection 3. An entity submitting information protected under this section will mark the top of each page in large, conspicuous typeface “CONFIDENTIAL.”

B. Removal of Confidential Designation. The removal of the confidential designation for data provided pursuant to §3 of this chapter can only occur upon a determination made by the Authority that extenuating circumstances warrant this action; that the removal of confidential designation is as narrow as possible under the circumstances; and that any party who has provided confidential data has both actual notice of the Authority’s intent and has an opportunity to comment on the removal. In making this determination, the Authority will consider:

1. Standard. The Authority will protect from public disclosure information concerning any communication service infrastructure that could facilitate the intentional, illegal interference with a communications service or mobile communications service.

2. Criteria. In determining what information is to be removed from information protected as critical infrastructure, the Authority will consider:

a. The extent to which the information could facilitate the disruption of critical emergency or other government communication services such as E911;

b. The extent to which the information could facilitate the disruption of public communication services;

c. The ease or difficulty with which a person could acquire or duplicate the information from other sources; and

d. The degree to which third parties have placed the information in the public domain or rendered the information “readily ascertainable.”

C. Exception to Public Record Law. Information designated as confidential by the Authority is not a public record under Title 1, section 402, subsection 3, per the authority granted in 35-A M.R.S. §9207.

§ 5 DESIGNATION OF BROADBAND SERVICE AND ELIGIBLE AREAS

A. Broadband Service. In determining performance standards for Broadband Service, the Authority must base its criteria on the state of the market, the percentage of households with access to broadband service within a municipality or other appropriate geographic area, as well as the performance necessary to meet the current broadband needs of Common Applications and Network Service in use in the State. The Authority defines adequate Broadband Service as 100mbps download and 100mbps upload.

1. Criteria Governing Performance. To determine minimum performance criteria, the Authority may consider:

a. Minimum sustained bandwidth for both upstream and downstream transmission in Common Applications and Network Service;

b. Maximum monthly throughput on a flat rate service offering; and

c. Any other performance criteria necessary for the use of Common Applications and Network Service.

B. Unserved Areas. In determining an unserved designation, the Authority shall consider data collected pursuant to §3 of this Chapter, the percentage of households with access to broadband service within a municipality or other appropriate geographic area, as well as other data sources that the Authority deems credible and appropriate to help make this determination.

1. Broadband Unserved Areas. In designating an unserved area, the Authority must find the following criteria:

Unserved areas are any geographic area that the Authority has determined is to have service available of at least 50Mbps download and 10Mbps upload pursuant to criteria governing performance set forth in section 5 A sub 1 of this Chapter.

C. Underserved Areas. In determining an underserved designation, the Authority shall consider data collected pursuant to §3 of this Chapter, the percentage of households with access to broadband service within a municipality or other appropriate geographic area, as well as other data sources that the Authority deems credible and appropriate to help make this determination. The Authority shall designate any geographic area as an underserved area and, therefore, eligible for a grant.

1. Underserved areas of the state are areas that have service available at greater than 50mbps download and 10mbps upload, but less than 100mbps download and 100mbps upload pursuant to Criteria Governing Performance set forth in section 5 A sub 1 of this Chapter.

D. Opportunity to Review Proposed Designation of Unserved and Underserved Areas

1. The Authority will publish a publicly available web-based map that identifies geographic areas based on the most recent data submitted under §3 or other credible data sources utilized by the Authority.

2. The Authority shall allow 30 days for data to be submitted from any existing provider, grant applicant or other credible data sources, utilized by the Authority to confirm the availability, or lack thereof, of Broadband Service. The Authority may allow this additional data to be provided biannually.

§ 6 CONNECTMAINE AUTHORITY SUPPORT

In order to achieve the purpose set forth in §1., the Authority shall determine:

A. Eligibility Criteria. The Authority shall establish eligibility criteria, which may include criteria related to proposed broadband service performance; technical, managerial and financial capacity, and experience to operate the network of the applicant or partner; completion of required outreach to providers; proposed project timeline; and level of financial commitment. The applicant and communications service provider must be in compliance with ConnectMaine rules for data filing and grant tracking. The Authority may establish eligibility criteria related to project areas, which may include identifying, proposing or considering unserved and underserved areas eligible for grants, and the percentage of unserved and underserved subscriber locations to be served.

B. Prioritization of infrastructure projects. The Authority may divide infrastructure grant applications by project area or by type of eligible applicant and then prioritize proposals within an application period.

1. Preference Criteria. The Authority may establish one or more criteria to prioritize funding of all eligible infrastructure grant applications. The Authority shall give preference among eligible infrastructure grant applications to projects in unserved and underserved areas that provide the greatest relative improvement to existing internet service. In determining what constitutes relative improvement, the Authority will consider the following criteria:

a. The improvement in the speeds and latency of service, the level of existing internet service available and the level of broadband service proposed, the percentage of potential Subscriber Locations to be served at that proposed level of broadband service by the project, and may include other factors;

whether without the Authority’s support for the project, the installation of advanced communications technology infrastructure as defined in §5(A) and equivalent to the proposed project would not otherwise occur within the same period.

In specific circumstances, the Authority may opt to waive these criteria and determine greatest relative improvement using alternative criteria as part of an application process.

2. Evaluation of Applications for Infrastructure Grants. The application evaluation process will allow the Authority to evaluate all applications submitted during a particular application period that has been set by the Authority. In addition to eligibility and any preference criteria, the application will be judged using the following categories:

Cost-Benefit. Cost-benefit is the amount of funding requested from the Authority per subscriber location in unserved and underserved areas to be served by the project, which is then weighted by Project Scope and Project Value factors.

i. Project Scope. The weight of project scope is based on relevant factors that may include the number and/or density of potential subscriber locations to be served by the project, the applicant’s financial commitment to the project, and other factors that may increase the cost or difficulty in expanding broadband service.

ii. Project Value. The weight of project value is based on relevant factors, that may include the estimated retail price per potential subscriber location to receive service, any affordability offering proposed, and other factors that may increase the value of the proposed project.

C. Eligible Applicants. Applicants eligible to receive Authority support may include the following:

For Community Planning Grants

General-purpose local governments (municipalities, groups of municipalities and counties);

Groups or regional partnership of general-purpose local governments;

Local government authorities, and joint or multi-county development authorities; and

d. Non-profit local or regional community organizations that are providing local or regional economic development programs.

For Infrastructure Grants

a. Communications service providers;

b. Units of local government including broadband utility districts; and

c. Any other responsible entity or group determined by the Authority to be capable of installing, using, and managing advanced communications technology infrastructure in the area.

D. Eligible Activities. Eligible uses of funds provided under the ConnectMaine Fund include activities, facilities, and services described in 35-A M.R.S., Chapter 93, including the provision of public infrastructure, services, facilities and improvements needed to implement new broadband services, enhance existing broadband services, implement new mobile communications service, or enhance existing mobile communications service or the provision of technical and financial assistance to support local and regional broadband planning activities, to unserved areas. Funds may also be used for matching requirements, “gap” financing, and grants, that may assist projects in qualifying for other sources of funding, as well as any other activities that are integral and necessary for the development, installation and use of a broadband or mobile communications system.

E. Application Process. The Authority will initiate a round of grant-making through public announcement. Applicants will be provided information on how to apply for a grant and a copy of the evaluation process at the time of the announcement of the grant round. The application process is subject to change, depending on funds available for granting, but will include, at a minimum the following provisions:

1. Infrastructure Grant Application. The application for a grant to build infrastructure will include, at a minimum, the following:
2. identification of proposed project area, which must meet the eligibility criteria established by the Authority pursuant to §6(A)(1), and which shall include a description and GIS enabled map with sufficient information to establish which areas meet the Authority’s definition of an unserved or underserved area, as set forth in section 5 of this Chapter;
3. a description of the proposed project, including: public-private partnerships that have been established; evidence that the partners in the project are eligible to receive funding from the Authority; the type of service to be provided and, in the case of broadband service, the upstream and downstream speeds of the service to be provided; an estimate of the time required to complete the proposed project; the percentage distribution of potential Subscriber Locations within the area to be served by the project; and the estimated price per subscriber of the service to be provided by the proposed project;
4. a description of the financials of the proposed project, including: the total amount of funding requested from the Authority, the amount and sources of the applicant’s financial commitment to the project in addition to the funding requested from the Authority, and the maximum project cost broken down by major cost categories; and

d. the estimated number of potential Subscriber Locations in the proposed project area that will directly benefit from the project, of those the estimated number in unserved and underserved areas, and the number of locations that will be left in unserved areas of the affected community;

e. a high-level network design, including: a description identifying the network of the broadband infrastructure proposed, about which the Authority may request additional information for projects costing $1,500,000 or more;

f. certification that the applicant has contacted the incumbent service provider(s) in the project area regarding current or impending plans for broadband infrastructure expansion and a description of such contact;

g. a timeline for completion of the proposed project; and

h. certification of net neutral services in the provision of broadband internet access service across advanced communications technology infrastructure constructed with the use of the state funds, in that Net Neutral Services must be provided for all subscriber locations that were funded in full or in part with any State funds, and for the purposes of this section Net Neutral Services shall have the same meaning as 5 MRSA Section 1541 B.

2. Planning Grant Applications. The Authority may request the following information in an application for a planning grant, which may also be required as a report upon completion of:

a description of local broadband needs and goals;

an inventory of existing broadband infrastructure assets within the municipality, municipalities or region;

a gap analysis defining the additional broadband infrastructure necessary to meet identified needs and goals;

one or more potential network designs, cost estimates, operating models and potential business models based on input from broadband providers operating within the municipality, municipalities or region and any other parties that submit a network design solution in the course of developing the plan to address any broadband gaps identified in paragraph c; and

an assessment of all municipal procedures, policies, rules and ordinances that have the effect of delaying or increasing the cost of broadband infrastructure deployment.

F. Financial Commitment. The authority may give preference to applications with a financial commitment. If a community includes a financial commitment toward planning, those funds may not consist of in-kind contributions from the municipality or funds provided by a vendor or private business that proposes to build, operate or provide retail services using broadband infrastructure constructed pursuant to the planning grant.

G. Project Completion and Evaluation. A project will be considered successfully completed and eligible for final payment only if it complies with the following provisions.

1. Infrastructure Grants

a. Projects of less than $1,500,0000, that have received grant approval must be completed within one year of receipt of funds from the Authority or within 180 days of all licenses and permits or governmental approvals necessary to complete the project, whichever later occurs, unless a waiver is granted by the Authority due to unforeseen circumstances. Projects that are over $1,500,000 will have a contractually agreed to completion date; and

b. Within one year of receipt of funds from the Authority or within 180 days of all licenses and permits or governmental approvals necessary to complete the project, whichever later occurs, the recipient must submit a report demonstrating completion, or in the case of a project that has been granted an extension of the one-year time period for completion, a report of progress. Such report must include an itemization of costs for which the Authority’s funding was used including a description of the service that has been created through use of the funds.

2. Planning Grants

a. Planning projects that have received grant approval must be completed within one year of funding unless a waiver is granted by the Authority due to unforeseen circumstances; and

b. Upon the date of completion, the recipient must submit a report with sufficient detail to allow the authority to determine whether the Plan generated by the project will lead to the expansion of the availability of broadband service in unserved and underserved areas, which may include the following information:

i. Define local broadband needs and goals;

ii. Inventory existing broadband infrastructure assets within the community or region;

iii. Include a gap analysis defining the additional broadband infrastructure necessary to meet identified needs and goals;

iv. Include one or more potential network designs, cost estimates, operating models and potential business models based on input from broadband providers operating within the community or region; and

v. Include an assessment of all municipal procedures, policies, rules and ordinances that have the effect of delaying or increasing the cost of broadband infrastructure deployment.

The Authority shall make all plans developed using grant funds available on the Authority’s website.

3. Project Completion and Validation. Projects with a total cost of less than $1,500,000 and that have received grant approval, including planning projects, must be completed within one year of receipt of funds from the Authority or within 180 days of all pole licenses and permits or governmental approvals necessary to complete the project, whichever later occurs, unless a waiver is granted by the Authority due to unforeseen circumstances. Projects where the total cost exceeds $1,500,000 will have a contractually agreed to completion schedule. Within one year of receipt of funds from the Authority or of all licenses and permits or governmental approvals necessary to complete the project, whichever later occurs, the recipient must submit a report demonstrating completion, or in the case of a project that has been granted an extension of the one-year time period for completion, a report of progress.

a. When a completion or progress report is submitted for disbursement of grant funds, it shall include a description of the service or the planning study that has been created through use of the funds, an itemization of project costs, documentation supporting costs, and any other elements of the relevant report that is required by the Authority.

b. For any grants awarded by the Authority for infrastructure deployment project, the Authority shall perform an audit of the project. The grant awardee shall provide information requested by the Authority for the purposes of this audit, and the grant awardee shall provide access for inspection of plant and equipment funded by the grant award. The audit shall evaluate consistency of the constructed project with subscriber locations identified in the grant process and with project expenditures reported. The audit will also evaluate suitability of the project as constructed to provide the type of services and performance identified in the grant process, and to ensure conformance with generally-accepted industry standards.

H. Infrastructure Grant Tracking. For any grants awarded by the Authority for infrastructure deployment project, the grant awardee shall submit an annual report for 5 years after the project is completed. The report will include number of Subscriber Locations in the project area that subscribe to broadband service provided by the project on June 30th of each year.

Information collected under §6(G)(3) and §6(H) shall be considered confidential pursuant to 35-A MRSA §9207. The Authority shall aggregate the data on an annual basis and include aggregated information as deemed appropriate by the Authority in its annual report.

§ 7 ConnectME FUND

A. Assessment. The statutory assessment is imposed on the value of the following:

All retail revenues received or collected from communications services provided in Maine.

All retail revenues received or collected from mobile communications service providers that voluntarily agree to be assessed by the Authority.

Starting January 1, 2022 each of the following voice network service providers who provide service to end-user retail customers in Maine shall report the number of their Lines or Working Telephone Numbers in Maine and shall contribute to the ConnectMaine Fund under the provisions contained this Section: local exchange carriers, interconnected voice over Internet protocol service providers, and mobile communications service providers. If the voice network service providers who provide service to end-user retail customers recovers the amount from its customers, it shall identify this surcharge on each customer bill as “statewide broadband access fund” surcharge on the customer's bill.

B. Reporting and Remittance

1. Local Exchange Carriers. Subject to the limitation provided by Subsection B (4) of this Section, within thirty days after the end of each calendar quarter, each local exchange carrier shall report to the fund administrator on forms provided by the fund administrator the number of its Lines, including Centrex and PBX lines, or Working Telephone Numbers that are providing voice telephone service in Maine at the end of each month of the preceding quarter.

2. Providers of Interconnected VoIP Service. Subject to the limitation provided by Subsection B (4) of this Section, within thirty days after the end of each calendar quarter, each provider of interconnected VoIP service shall report to the fund administrator on forms provided by the fund administrator the number, at the end of each month of the preceding calendar quarter, of its active interconnected VoIP Lines or Working Telephone Numbers that have a registered location within Maine. Providers of interconnected VoIP service must adhere to the requirements of 47 CFR §9.5(d).

3. Providers of Mobile Telecommunications Services. Subject to the limitation provided by Subsection B (4) of this Section, within thirty days after the end of each calendar quarter, each provider of mobile telecommunications services, except for prepaid wireless providers, shall report to the fund administrator on forms provided by the fund administrator for the end of each month of the preceding quarter the number of its mobile telecommunications services Lines or Working Telephone Numbers whose place of primary use is in Maine.

4. Limitation on Reporting by Billing Account Number. For the purposes of Subsections B (1), (2), and (3) of this Section, the reporting service provider shall not report more than twenty-five Lines or Working Telephone Numbers per active Billing Account Number.

5. Contribution Calculation and Remittance. Each service provider that must report its lines or customers to the fund administrator under the provisions of Subsections B (1), (2), or (3), subject to the limitation provided by Subsection B (4), shall calculate its required contribution to the ConnectMaine Fund by multiplying the number of Lines or Working Telephone Numbers reported for each month by 10 cents. Under procedures established by the fund administrator, the service provider must remit its required contribution to the fund administrator at the time it files its required report for each quarter.

6. Confidentiality. For the purposes of this Chapter, the counts of Lines or Working Telephone Numbers that must be reported to the fund administrator pursuant to the provisions of Subsections B(1), (2), or (3) of this Section will be considered Confidential Business Information, pursuant to the provisions of 35-A M.R.S. §9207-sub 1 & 2.

C. Additional Funds. Any additional funds the Authority collects pursuant to 35-A M.R.S. Chapter 93 shall be paid into the ConnectME Fund to be used for the purposes authorized by statute and in accordance with this Chapter.

D. Fund Administrator. The Authority will contract with an appropriate independent fiscal agent to serve as the Fund Administrator. The administrator will establish the time and procedures for payment after consultation with the Authority.

§ 8 WAIVER OF PROVISIONS OF CHAPTER

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Authority may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or 35-A M.R.S. Chapter 93.

History

• STATUTORY AUTHORITY: 23 M.R.S. §3360-A; 35-A M.R.S. §§ 9201-9218.
• STATUTORY AUTHORITY: History
• EFFECTIVE DATE: This chapter, a major substantive Final Adoption (filing 2007-228), was approved as to form and legality by the Attorney General on May 30, 2007. It was filed with the Secretary of State on May 30, 2007 and becomes effective on June 29, 2007.
• EFFECTIVE DATE: This chapter, a major substantive Final Adoption (filing 2019-091), was approved as to form and legality by the Attorney General on May 31, 2019. It was filed with the Secretary of State on May 31, 2019 and became effective on June 30, 2019.
• EFFECTIVE DATE: This chapter, a routine technical adoption (filing 2019-215), was approved as to form and legality by the Attorney General on November 26, 2019. It was filed with the Secretary of State on November 27, 2019 and became effective on December 2, 2019.
• EFFECTIVE DATE: This chapter, a routine technical adoption (filing 2021-053), was approved as to form and legality by the Attorney General on February 25, 2021. It was filed with the Secretary of State on March 5, 2021 and became effective on March 10, 2021.
• EFFECTIVE DATE: This chapter, a routine technical adoption (filing 2021-261), was approved as to form and legality by the Attorney General on December 21, 2021. It was filed with the Secretary of State on December 28, 2021 and became effective on January 2, 2022.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

99-650 Combat Sports Authority of Maine (formerly Mixed Martial Arts Authority of Maine)

Chapter 1 General Rules for Kickboxing ContestsCh. 2 (Word) Technical Requirements for Kickboxing ContestsCh. 3 (Word) Judging/Refereeing Kickboxing ContestsCh. 4 (Word) Rules Governing Judging for Kickboxing ContestsCh. 5 (Word) Rules Governing Referees for Kickboxing ContestsCh. 6 (Word) Rules Governing Promotors of Kickboxing ContestsCh. 7 (Word) Requirements for KickboxersCh. 8 (Word) Rules Governing Managers, Trainers, Seconds, Cutpersons, Scorekeepers, and Cornerpersons for Kickboxing ContestsCh. 9 (Word) Rules Governing Attending Physicians for KickboxingCh. 10 (Word) Rules Governing Inspectors for Kickboxing ContestsCh. 11 (Word) Rules Governing Timekeepers for Kickboxing Contests

Code Me. R. 99-650 Ch. 1 General Rules for Kickboxing ContestsCh. 2 (Word) Technical Requirements for Kickboxing ContestsCh. 3 (Word) Judging/Refereeing Kickboxing ContestsCh. 4 (Word) Rules Governing Judging for Kickboxing ContestsCh. 5 (Word) Rules Governing Referees for Kickboxing ContestsCh. 6 (Word) Rules Governing Promotors of Kickboxing ContestsCh. 7 (Word) Requirements for KickboxersCh. 8 (Word) Rules Governing Managers, Trainers, Seconds, Cutpersons, Scorekeepers, and Cornerpersons for Kickboxing ContestsCh. 9 (Word) Rules Governing Attending Physicians for KickboxingCh. 10 (Word) Rules Governing Inspectors for Kickboxing ContestsCh. 11 (Word) Rules Governing Timekeepers for Kickboxing Contests {#sec-99-650-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 1}

99-650 COMBAT SPORTS AUTHORITY OF MAINE Chapter 1: GENERAL RULES FOR KICKBOXING CONTESTS

_____________________________________________________________________________

SUMMARY: This Chapter deals generally with authorized participants' certifications, conduct of participants, kickboxing event locations, and the powers of the Authority.

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SECTION 1. Compliance

All kickboxing competitions and exhibitions shall be conducted pursuant to 8 M.R.S. Chapter 20 and rules adopted by the Authority. An individual certificated by the Authority shall not engage in any activity, individually, or in concert with others, which violates 8 M.R.S. Chapter 20 or any Authority rule. An individual certificated by the Authority shall not induce or encourage any person, club, association, or corporation to violate 8 M.R.S. Chapter 20 or any Authority rule.

SECTION 2. Certificates Required

Participants in kickboxing events must be certificated in accordance with Authority rules.

SECTION 3. Location

No kickboxing contest shall be conducted except in a city or town and venue specified in a certificate issued by the Authority for that contest and location.

SECTION 4. Exhibitions

No kickboxing exhibition shall be conducted without special permission from the Authority. An "exhibition" is a kickboxing competition conducted pursuant to these rules, except that it concludes without a decision being rendered. Except for provisions specifically applicable to the rendering of a decision, reference in these rules to kickboxing "competition" shall be construed as applicable to not only contests in which a decision is rendered but also to exhibitions in which no decision is rendered.

SECTION 5. Certificates for Events and Participants

All applications for certifications shall be made on forms furnished by the Authority. Certificates are nontransferable, and no person shall loan a certificate or participate inevents under any name other than that stated in his/her certificate.

Every certificate issued by the Authority must be in the possession of the individual for whose benefit it was issued and must be shown to a proper official when requested.

All individuals who wish to participate in a kickboxing event inany capacity for which a certificate is required must submit a certificate application and any other documentation requested for certification. The Authority must receive all requested documentation no later than 24 hours prior to the start of competition. Failure to comply with these requirements is grounds for denial of a certificate.

The Authority may establish testing procedures to ascertain applicants' knowledge of its rules. Insufficient knowledge of the rules is grounds for denial of a certificate.

SECTION 6. Collections

No collection of money shall be made at any competition, unless permission has been obtained from the Authority and the person or group conducting the collection has complied with Title 9 M.R.S. Chapter 385, the Maine Charitable Solicitations Act.

SECTION 7. Wagering

Wagering on any kickboxing competition is prohibited in the venue where an event is conducted or on the venue's surrounding grounds.

SECTION 8. Profanity; Verbal Abuse

No individual certificated by the Authority shall direct profanity or verbal abuse at any authorized participant, guest, or member of the Authority.

SECTION 9. Fixed Fights

No individual certificated by the Authority shall engage in any activity designed to predetermine the result of any kickboxing contest.

SECTION 10. Arrival Time of Officials

All officials shall arrive at the fighting venue at least one hour prior to an event's first bout. Any official who has not arrived on time may be replaced with another official and prevented from officiating.

SECTION 11. Unsportsmanlike Conduct

No participant in a kickboxing event shall engage in conduct that violates a standard of behavior established for persons who perform activities for which that person is certificated. Such actions may be punishable by disqualification, removal from an event, denial or revocation of certification, or other discipline.

Unsportsmanlike conduct includes a failure to produce complete and truthful information in an individual's possession or under his/her control and relevant to the Authority's consideration of an application for certification, a possible disciplinary violation, or an individual's medical condition or eligibility for competition.

SECTION 12. Powers of Authority Members

Any Authority member in attendance at a kickboxing competition can enforce these rules and the provisions of 8 M.R.S. Chapter 20.

SECTION 13. Prohibition of Professionals Fighting as Amateurs

Any competitor who competes as an amateur may not currently be or ever have been a professional fighter in any striking sport.

SECTION 14. Amateurs Qualifying as Professionals

Any competitor who wishes to compete as a professional fighter but who has a record of fewer than three sanctioned amateur fights must apply to the Authority for the change to professional status. Factors the Authority may consider include the extent of a fighter's martial arts training, a fighter's experience outside of sanctioned competition, and whether more experienced opponents could potentially pose a risk to a fighter's safety.

SECTION 15. Adjudicatory Hearing

Authority adjudicatory hearings will be conducted pursuant to 5 M.R.S. Chapter 375, Subchapter IV.

History

• STATUTORY AUTHORITY: 8 M.R.S. § 523 EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-064

Chapter 1 General Rules for Kickboxing Contests

Code Me. R. 99-650 Ch. 1 General Rules for Kickboxing Contests {#sec-99-650-ch.-1 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 1}

99-650 COMBAT SPORTS AUTHORITY OF MAINE Chapter 1: GENERAL RULES FOR KICKBOXING CONTESTS

_____________________________________________________________________________

SUMMARY: This Chapter deals generally with authorized participants' certifications, conduct of participants, kickboxing event locations, and the powers of the Authority.

---

SECTION 1. Compliance

All kickboxing competitions and exhibitions shall be conducted pursuant to 8 M.R.S. Chapter 20 and rules adopted by the Authority. An individual certificated by the Authority shall not engage in any activity, individually, or in concert with others, which violates 8 M.R.S. Chapter 20 or any Authority rule. An individual certificated by the Authority shall not induce or encourage any person, club, association, or corporation to violate 8 M.R.S. Chapter 20 or any Authority rule.

SECTION 2. Certificates Required

Participants in kickboxing events must be certificated in accordance with Authority rules.

SECTION 3. Location

No kickboxing contest shall be conducted except in a city or town and venue specified in a certificate issued by the Authority for that contest and location.

SECTION 4. Exhibitions

No kickboxing exhibition shall be conducted without special permission from the Authority. An "exhibition" is a kickboxing competition conducted pursuant to these rules, except that it concludes without a decision being rendered. Except for provisions specifically applicable to the rendering of a decision, reference in these rules to kickboxing "competition" shall be construed as applicable to not only contests in which a decision is rendered but also to exhibitions in which no decision is rendered.

SECTION 5. Certificates for Events and Participants

All applications for certifications shall be made on forms furnished by the Authority. Certificates are nontransferable, and no person shall loan a certificate or participate inevents under any name other than that stated in his/her certificate.

Every certificate issued by the Authority must be in the possession of the individual for whose benefit it was issued and must be shown to a proper official when requested.

All individuals who wish to participate in a kickboxing event inany capacity for which a certificate is required must submit a certificate application and any other documentation requested for certification. The Authority must receive all requested documentation no later than 24 hours prior to the start of competition. Failure to comply with these requirements is grounds for denial of a certificate.

The Authority may establish testing procedures to ascertain applicants' knowledge of its rules. Insufficient knowledge of the rules is grounds for denial of a certificate.

SECTION 6. Collections

No collection of money shall be made at any competition, unless permission has been obtained from the Authority and the person or group conducting the collection has complied with Title 9 M.R.S. Chapter 385, the Maine Charitable Solicitations Act.

SECTION 7. Wagering

Wagering on any kickboxing competition is prohibited in the venue where an event is conducted or on the venue's surrounding grounds.

SECTION 8. Profanity; Verbal Abuse

No individual certificated by the Authority shall direct profanity or verbal abuse at any authorized participant, guest, or member of the Authority.

SECTION 9. Fixed Fights

No individual certificated by the Authority shall engage in any activity designed to predetermine the result of any kickboxing contest.

SECTION 10. Arrival Time of Officials

All officials shall arrive at the fighting venue at least one hour prior to an event's first bout. Any official who has not arrived on time may be replaced with another official and prevented from officiating.

SECTION 11. Unsportsmanlike Conduct

No participant in a kickboxing event shall engage in conduct that violates a standard of behavior established for persons who perform activities for which that person is certificated. Such actions may be punishable by disqualification, removal from an event, denial or revocation of certification, or other discipline.

Unsportsmanlike conduct includes a failure to produce complete and truthful information in an individual's possession or under his/her control and relevant to the Authority's consideration of an application for certification, a possible disciplinary violation, or an individual's medical condition or eligibility for competition.

SECTION 12. Powers of Authority Members

Any Authority member in attendance at a kickboxing competition can enforce these rules and the provisions of 8 M.R.S. Chapter 20.

SECTION 13. Prohibition of Professionals Fighting as Amateurs

Any competitor who competes as an amateur may not currently be or ever have been a professional fighter in any striking sport.

SECTION 14. Amateurs Qualifying as Professionals

Any competitor who wishes to compete as a professional fighter but who has a record of fewer than three sanctioned amateur fights must apply to the Authority for the change to professional status. Factors the Authority may consider include the extent of a fighter's martial arts training, a fighter's experience outside of sanctioned competition, and whether more experienced opponents could potentially pose a risk to a fighter's safety.

SECTION 15. Adjudicatory Hearing

Authority adjudicatory hearings will be conducted pursuant to 5 M.R.S. Chapter 375, Subchapter IV.

History

• STATUTORY AUTHORITY: 8 M.R.S. § 523 EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-064

Chapter 2 Technical Requirements for Kickboxing Contests

Code Me. R. 99-650 Ch. 2 Technical Requirements for K.ickboxing Contests {#sec-99-650-ch.-2 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 2}

________________________________________________________________________________

SUMMARY: This Chapter identifies technical requirements for competitions, including weight classifications; glove weights; fighting area specifications; appropriate equipment; hand bandages; apparel; physical appearance; round duration; and the presence of judges, referees, physicians, emergency medical technicians, inspectors, and ambulances.

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SECTION 1. Weighing-In

The Authority shall weigh each competitor using scales furnished by the Authority. Scales shall have a maximum deviation of 8 ounces. Both fighters in a scheduled competition must weigh in on the same scale. The Authority may require appropriate testing of the scales prior to the weigh-in, to ensure that the weights of opposing competitors comply with these rules. If the scales are not suitable or a competitor's weights do not comply with these rules, the Authority shall notify the promoter, and the contest shall not take place.

All weigh-ins must occur with an Authority member or agent of the Authority and the promoter or an agent of the promoter present. All weigh-ins must occur at a time and place chosen by the promoter and approved by the Authority. Once a weigh-in begins, the scales shall not be moved until all fighters have been weighed and the weigh-in is otherwise complete.

Competitors shall weigh in wearing clothes like those in which they will be fighting (biking shorts, trunks, for example). Male competitors shall not wear shirts or shoes. Fighters will be allowed to weigh in without clothes, if necessary.

Failure of a competitor to weigh in at the time approved by the Authority will result in disqualification.

SECTION 2. Kickboxer and Glove Weights

Weight Classes

Fighters’ Weights

Glove Weights

Atomweight

Up to 105 pounds

All competitors up to and including 154 shall wear 8-ounce gloves. Competitors 155 and above shall wear no less than 10-ounce gloves

Strawweight

Over 105 to 115 pounds

Flyweight

Over 115 to 125 pounds

Bantamweight

Over 125 to 135 pounds

Featherweight

Over 135 to 145 pounds

Lightweight

Over 145 to 155 pounds

Welterweight

Over 155 to 170 pounds

Middleweight

Over 170 to 185 pounds

Light Heavyweight

Over 185 to 205 pounds

Heavyweight

Over 205 pounds

There will be a one-pound allowance over the weight class permitted for non-title fights. If a competitor does not initially make weight, she/he will be allowed up to one hour from initial weight-in to drop weight and weigh in again. Any fighter not making weight after one hour may be suspended for up to 180 days.

SECTION 3. Fighting Area

The fighting area for each kickboxing contestt shall be either a cage or a ring. The Authority has the right to inspect all items brought into the fighting area.

Cage requirements

1. The fighting area canvas shall be no smaller than 18 feet by 18 feet and no larger than 32 feet by 32 feet. The fighting area canvas shall be padded in a manner approved by the Authority, with at least a one-inch layer of foam padding. Padding shall extend beyond the fighting area and over the edge of the cage platform. Plastic rubberized coverings shall be permitted.
2. The fighting area canvas shall not be more than four feet above the floor on which it is placed and shall have suitable steps or a ramp for use by the participants. Posts shall be made of metal not more than six inches in diameter, shall extend from the floor of the building to a minimum height of 58 inches above the fighting area canvas, and shall be padded in a manner approved by the Authority.
3. The fighting area canvas shall be enclosed by a fence made of material that will not allow a fighter to fall out or break through it onto the floor or spectators. All metal parts shall be covered and padded in a manner approved by the Authority and shall not be abrasive to the competitors.
4. The fighting area fence shall have two separate outward-opening door entries onto the fighting area canvas with a set of steps or ramp for each entry.

Ring requirements

The ring may be any one of three sizes; 18 feet x 18 feet, 20 feet x 20 feet, or 24 feet x 24 feet, measured from the inner side of the ropes.

The ring floor shall be soundly constructed with no obstructions and extend at least three feet but not more than four feet beyond the ropes.

The ring floor shall be based on either felt, rubber, or other flexible materials not less than ¼ inch and not more than ½ inch thick, entirely covered with canvas stretched tightly over the entire ring floor.

All four ring corners must be erected with ring posts of five inches in diameter. The erected height must be 60 inches from the ring floor and the inner corners of the ropes must be completely taped to prevent harm to competitors.

There shall be a minimum of four ropes at least 1.18 inches and not more than 1.97 inches in diameter, stretched tightly to the four corner posts. Each side of the rope ring shall be held rigid by two pieces of strong cloth equally spaced on each side. The tightening cloths shall not slip when the ropes are moved.

There shall be at least two sets of steps or ramps to the ring, one set each of the red and blue corners provided for the competitors and their seconds.

The Authority has the right to inspect any item brought into the fighting area.

SECTION 4. Stools

An appropriate number of stools of a type approved by the Authority shall be available outside the ring or cage for each kickboxer and his or her seconds. All stools and chairs used must be thoroughly cleaned or replaced after the conclusion of each contest.

SECTION 5. Water Bucket/Water Bottle/Towels

Each kickboxer shall be allowed a clean water bucket, a clean and clear plastic water bottle, and clean towels in his/her corner.

SECTION 6. Hand Bandages

All hand bandages shall comply with the following specifications:

In all weight classes, the bandages on each competitor's hand shall be restricted to soft gauze cloth not more than 15 yards inlength and two inches in width, held in place by not more than ten feet of surgeon's tape, two inches in width, for each hand. Surgeon's adhesive tape may be placed directly on each hand for protection near the wrist. The tape may cross the back of the hand twice and extend to within one inch of the knuckles when the hand is clenched to make a fist. Tape may be placed between the knuckles to secure the wrap but must not cover the striking surface. The bandages shall be evenly distributed across the hand. The bandages may be secured by one winding of Lightplast® or Flex Tape® bandage with the same restriction of a one-inch gap from the knuckles of a clenched fist.

Bandages and tape for competitors shall be placed on the contestant's hands

in the dressing room in the presence of a representative of the Authority. At the completion of the hand wrap, each shall be marked by an inspector indicating that it has been performed in accordance with these rules.

Each competitor shall be required to wrap their hands in accordance with these rules.

Under no circumstances are gloves to be placed on the hands of a competitor until the approval of the Authority or its representative is received.

SECTION 7. Mouthpieces

All kickboxers are required to wear a custom-made and individually fitted mouthpiece during competition. The mouthpiece shall be subject to examination and approval by an attending physician.

A round cannot begin without kickboxers' mouthpieces in place.

If a mouthpiece is accidentally dislodged during competition, without interfering with the immediate action, the referee shall call time, and the kickboxer or a cornerperson may clean and re-insert the mouthpiece.

SECTION 8. Protective Equipment

1. Male kickboxing competitors shall wear a groin protector of their own selection.
2. Female competitors must wear approved, anatomically correct groin protectors, rash guards for shirts, and approved breast protection.
3. Shin guards are optional for amateurs and must be approved by the Authority. If one competitor wears shin guards, his/her opponent must also wear shin guards. Shin guards shall not be worn by professionals.
4. The promoter shall provide the shin guards.
5. All protective equipment is subject to inspection and approval by the Authority or its representative.

SECTION 9. Gloves

The gloves for all contests shall be in good condition, or they must be replaced. Gloves must be used only once during an event.

Promoters shall provide gloves, which must be examined for suitability by an inspector. No competitor shall supply gloves for any contest.

SECTION 10. Physical Appearance

An inspector or Authority representative shall determine whether head or facial hair presents any hazard to the safety of a fighter or her/his opponent or will interfere with the supervision and conduct of the event

Jewelry or piercing accessories are prohibited during competition.

Toenails must be trimmed.

No body grease, gels, balms or lotions may be applied to a competitor, except that petroleum jelly may be applied lightly to the facial area at ringside/cageside in the presence of an inspector, referee, or other person designated by the Authority. Any competitor applying any other substance(s) or applying petroleum jelly under different circumstances may be penalized a point, disqualified, and/or disciplined.

SECTION 11. Apparel During Competition

1. All competitors shall wear kickboxing style shorts without pockets, mixed martial arts shorts without pockets, or unpadded spandex shorts without pockets. Shorts cannot extend lower than three inches from the top of the knee.
2. Contestants may wear traditional armbands secured around the biceps. No metal or abrasive material may be contained within or on them.
3. Gis or shirts are prohibited during competition for males. Females may wear an armless shirt. The shirt shall be tucked into the shorts and may not be loose or in any way impede the competitor.

D. Shoes are prohibited during competition. Competitors shall compete barefoot.

Elastic support anklets may be worn.

Elastic or neoprene style knee supports may be worn with approval of the Authority, but they may not contain any hard or solid material.

SECTION 12. Round and Rest Durations

In all kickboxing contests the number and duration of rounds must conform to the following criteria unless granted a waiver or dispensation by the Authority:

Amateur. Rounds shall be two minutes in duration. Amateur bouts shall consist of three rounds with a one-minute rest period between rounds. Amateur title bouts shall

consist of five rounds of two minutes in duration with a one-minute rest period between rounds.

Professional. Bouts may consist of a maximum of ten (10) rounds of three (3) minutes each in duration, with a minimum of one (1) minute rest period between each round.

Considerations. The three knockdowns rule will be in effect for knockdowns caused by strikes to the head. A competitor cannot be saved by the bell in any round, including the final round. The standing eight-count shall be utilized.

For events televised live, the Authority may extend the duration of rest periods beyond one minute.

SECTION 13. Judges Required

Each kickboxing contest shall be evaluated and scored according to rules adopted by the Authority.

SECTION 14. Referee Required

Each kickboxing contest shall be refereed according to rules adopted by the Authority.

SECTION 15. Physicians Required

Each kickboxing contest shall have at least two attending physicians present performing duties according to rules adopted by the Authority.

SECTION 16. Medical Technicians Required

Each kickboxing contest shall always have at least two emergency medical technicians present performing duties according to rules adopted by the Authority.

SECTION 17. Ambulance Required

There shall be an ambulance present at each kickboxing event.

SECTION 18. Inspectors

Kickboxing contests shall have inspectors approved by the Authority present and performing duties according to rules adopted by the Authority.

History

• STATUTORY AUTHORITY: 8 M.R.S. § 523 EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-065

Chapter 3 Judging/Refereeing Kickboxing Contests

Code Me. R. 99-650 Ch. 3 Judging/Refereeing Kickboxing Competitions {#sec-99-650-ch.-3 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 3}

_______________________________________________________________________________

SUMMARY: This Chapter sets forth the criteria for judging and refereeing kickboxing competitions.

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SECTION l. Stopping a Kickboxing Contest

A referee and an attending physician are the only individuals authorized to enter the fighting area during competition or authorized to stop a competition.

This rule shall not preclude use of a video or other review of a decision under the procedures of the applicable regulatory authority if a protest is filed claiming a clear rule violation.

SECTION 2. Judging

All kickboxing competitions shall be judged according to the following criteria:

All bouts shall be evaluated and scored by three judges. The 10-Point Must System shall be the standard system of scoring a bout. Under the 10-Point Must Scoring System, 10 points shall be awarded to the winner of the round and nine points or fewer shall be awarded to the loser, except for an even round, which is scored 10-10.

Awarding of Points. In determining the score, judges shall evaluate kickboxing techniques such as number of knockdowns, effective striking, clinching, control of the fighting area, and effective aggressiveness and defense.

1. Points will be awarded whenever the competitor strikes the opponent with force which lands on target without infringement and without being blocked or guarded against.
2. Effective striking is judged by determining the number of legal strikes landed by a competitor and the significance of such legal strikes.
3. Fighting area control is judged by determining who is dictating the pace, location, and position of the bout.
4. Effective aggressiveness means moving forward and landing a legal strike.
5. Effective defense means avoiding being struck while countering with offensive attacks.
6. The following objective scoring criteria shall be utilized by the judges when
7. Scoring a round:

A round is to be scored as a 10-10 round when both competitors appear to be fighting evenly and neither competitor shows dominance in a round.

a.

b. A round is to be scored as a 10-9 round when a competitor wins by a close but clear margin, landing the greater number of effective legal strikes and other maneuvers.

A round is to be scored as a 10-8 round when a competitor wins a round by a wide margin and damages his or her opponent. A round is scored a 10-8 round when a competitor receives a standing eight count, however a competitor can win back a 10-9 in that round.

c.

d. A round is to be scored as a 10-7 round when a competitor totally and completely dominates in a round and damages his or her opponent. A round is scored a 10-7 round when a competitor receives two standing eight counts in the same round.

1. Techniques. The following techniques which have a visible impact on the opponent should be weighed most heavily: 1. Knocking the opponent to the ground with a legal strike; 2. Unbalancing the opponent with a legal strike; 3. Techniques that cause the opponent to stop advancing; 4. Techniques that force an opponent to cover up and limit his or her offense; 5. Defense and ability to evade the opponent's attack; and 6. Maintenance of proper footwork, balance, stance, and stamina.

SECTION 3. Refereeing

All kickboxing contests shall be refereed according to the following criteria:

Cautions and Warnings

l. The referee may choose to caution a competitor if he or she perceives that there

may be an impending foul or if there has been an unintentional foul. A caution carries no judging penalty but may advise the referee in assessing a warning for similar fouls.

The referee may issue a warning for rule infractions or assess a one-point penalty. The point shall be subtracted from the final round score by the judges.

Severity of the penalty shall be determined by the impact the illegal act had on the bout. A competitor should never benefit from an illegal act. If the act in question results in giving the competitor a positional advantage, the referee may stop the action to take away the advantage. If the competitor uses an illegal technique to escape from a disadvantaged position, the referee may issue a warning.

Fouls

1. Only a referee can assess a foul. Judges shall not make that assessment and shall not factor such into their scoring calculations.
2. The referee may immediately terminate a bout based upon a single foul if he or she determines that it was intentional and flagrant. In that event, the fight shall be deemed a disqualification.
3. Fouls assessed by the referee will result in a point deduction by the judge from the offending competitor's score.
4. A fighter who has been struck with a low blow is allowed up to five minutes to recover from the foul as long as in the referee and/or ringside doctor's opinion the fighter may continue on in the contest. If the fighter states that she or he can continue before five minutes have expired, the referee shall as soon as practical restart the fight. If the fighter takes more than the five minutes allotted, the fight cannot be restarted, and the contest must come to an end with the outcome determined by the round and time in which the fight was stopped.
5. If a competitor is fouled by a blow that the referee deems illegal, but not a low blow, the referee should stop the action and call for time. The referee may take the injured competitor to the ringside doctor and have the ringside doctor examine the competitor as to his or her ability to continue on in the contest. The ringside doctor has up to five minutes to make a determination. If the ringside doctor determines that the competitor can continue in the contest, the referee shall as soon as practical restart the fight. However, unlike the low blow foul rule, the competitor does not have up to five minutes of time to use at his or her discretion.
6. If a foul is committed, the referee shall: 1. Call time; 2. Check the fouled competitor's condition and safety; and 3. Assess the foul to the offending contestant, deduct points, and notify each

corner's seconds, judges, and the official scorekeeper.

1. Types of Fouls

Fouls include, but are not limited to, the following conduct:

• 1. Head butts; 2. Groin strikes; 3. Thrusting or linear kicks directed at the knee joint; 4. Striking the back of the head or the spine - defined as striking any of the area beginning at the back of the head starting at the crown of the head and running directly down the center of the head, spreading from ear to ear in the back of the head, running down the entire rear portion of the neck, beginning again at the occipital junction and stopping at the top of the trapezius, and beginning again from the trapezius muscle down the spine to the tailbone; 5. Attacks to the throat; 6. Striking a downed fighter (Fighters are considered "down" whenever they have any part of their body other than the soles of their feet touching the canvas.); 7. Failure to obey the referee's commands; 8. Striking on a break; 9. Striking after a bell;

j. Holding or using the ropes while striking or clinching;

k. Timidity: Repeatedly and intentionally avoiding engagement or contact with the opponent;

l. Use of abusive language and/or gestures;

m. Causing intentional delays in the action, e.g , repeatedly spitting out the

mouthpiece or falling out of the ring to cause delay;

n. Thumbing;

o. Holding the opponent's leg without executing a legal strike or while

executing more than one striking technique. (A fighter may grab the

opponent's kicking leg and immediately execute one legal strike while

taking one step but then must immediately release the leg.);

Any effort to down a fighter by a method other than a legal strike or strikes, including but not limited to joint locks, submission attempts;

Sweeps, reaps, takedowns and throws;

Biting;

Spitting at the opponent;

Striking with the elbow, arm, wrist, or part of the glove that is not padded; and

Holding, which is defined as repeatedly grabbing, grasping, or tying up an opponent in order to prevent the opponent from striking. Clinching is allowed in order to immediately launch a credible knee attack. If in the referee's estimation, the attack and/or counter knee attack is consistent and effective, the referee may allow it to continue for up to five seconds, at which point he or she will separate the fighters. If the knee attack or counterattack wanes or appears ineffective within five seconds, the referee will immediately separate the fighters;

1. Legal Targets

Legal targets include, but are not limited to, the following:

a. Front of face (ears forward);

Front of body above the waist;

c. Ribs; and

d. Inner and outer thighs.

1. Legal Strikes

Legal strikes include, but are not limited to, the following:

a. Punches with the front padded portion of the glove;

b. Spinning backfist with padded portion of the glove above the wrist;

c. For professionals, knees to the head (illegal for amateurs);

d. Kicks to the inner and outer thigh;

e. One hand clinch around the neck, only if immediately followed by

one knee strike and then a mandatory break;

f. Punches to the front of the body above the waist;

g. Jumping knees above the waist, for professionals;

Jumping knees above the waist and below the neck for amateurs; and

Kicks to all legal targets.

There is no kick minimum, for either amateurs or professionals.

Injuries Sustained During Competition

1. If a competitor sustains an injury during competition due to a legal maneuver that is severe enough to terminate a bout, the injured contestant loses by Technical Knockout.
2. If a competitor sustains an injury during competition due to an intentional foul that is severe enough to terminate a bout, the contestant causing the injury loses by Disqualification.
3. If a competitor sustains an injury during competition due to an intentional foul and the bout continues, the referee shall immediately notify the Authority and the judges, and the judges shall deduct the points as determined by the referee and/or Authority's representative.
4. If an injury caused by an intentional foul results in the contest being stopped in a later round: 1. The injured competitor wins by Technical Decision, if he or she is ahead on the scorecards; or 2. The contest shall be declared a Technical Draw, if the injured competitor is behind or even on the scorecards.
5. If an injury sustained during competition from an accidental foul is severe enough

for the referee to stop the bout immediately, the bout shall result in a Technical Decision awarded to the competitor who is ahead on the scorecards at the time the referee stops the bout. This happens only when the referee stops the bout when the competitors have completed two rounds of a three-round bout, three rounds of a five-round bout, or four rounds of a bout of more than five rounds.

6. There should be scoring of an incomplete round. If the referee penalizes either competitor, then the appropriate points shall be deducted when the scorekeeper calculates the final score for the partial round.

D. Types of Fight Results

A knockout ("KO") is awarded when the opponent is knocked down and unable

to continue within the ten second count. Knockdowns occur when fighters touch the

mat with anything other than the souls of their feet as the result of a legal, damaging

strike or are in a defenseless position when grabbing the opponent or hanging on or

over the ropes. The referee shall have sole discretion in determining what is a

knockdown versus a slip.

If a fighter goes down from what the referee indicates is a "slip" but fails to raise after the referee's repeated commands, the referee will initiate a count and follow the procedures for a knockdown. If the fighter does not rise at the count of ten, it will be considered a technical knockout (“TKO”).

If a fighter injures him/herself and then fails to defend him/herself intelligently by turning their back on the opponent, the referee may in the proper exercise of discretion either treat the injury the same as one produced by a fair blow from the opponent and follow the procedures for a knockdown or terminate the bout and declare the opponent winner by TKO.

When any competitor falls out of the ring or cage, the referee shall start counting

immediately. If the count reaches 20 and the fallen competitor cannot come up onto the ring or cage, he or she will lose by a KO. If the fallen competitor can come up before the count reaches 20, he or she may continue the fight.

A TKO is awarded:

a. When a competitor is seriously hurt or weakened;

When a competitor cannot continue the match after a break;

On the doctor's recommendation, when the referee is unsure whether a competitor can continue the match due to injury or being seriously weakened;

The Three Knockdown Rule is in effect only where a fighter has been knocked down three times in the same round by strikes/kicks to the head;

When an opponent retires because of injury.

Winning on Points.

a. Unanimous Decision. When all three judges score the bout for the same contestant.

b. Split Decision. When two judges score the bout for one contestant and one

judge scores for the other.

c. Majority Decision. When two judges score the bout for the same contestant

and one judge scores a draw.

5. Disqualification.

a. Winning due to the opponent's violation of the rules; or

b. No decision as a result of competitors colluding to cheat or not

fight properly.

6. No Contest. A no contest shall be declared when the referee stops a contest due to

accidental injury and the requisite number of rounds have not been completed to render

a decision on the scorecards, as a result of the ring being damaged and the match not

being able to continue, if an external event causes the fight to be stopped, if both

competitors are unable to continue due to injury or disqualification, or when the

Authority determines that any other result would create a miscarriage of justice. If less

than one round of a three-round bout, less than the third round of a five-round bout, or

less than the fourth round of a bout scheduled for more than five rounds has been

completed at the time of the stoppage, the bout shall be declared a no contest. If the

requisite number of rounds has been reached, individual scores decide the victor.

7. Draws.

a. Unanimous. When all three judges score the bout a draw.

b. Majority. When two judges score the bout a draw.

c. Split. When all three judges score the bout differently and the score total results in a draw.

d. When both competitors receive a count of ten.

E. Procedure after a Knockout or Technical Knockout

When a competitor is knocked down, the referee shall order the opponent to retire to the farthest neutral corner of the ring or cage by pointing to the corner and immediately beginning the eight count over the competitor who is down. The referee shall audibly announce the passing of the seconds, accompanying the count with motions of his/her arm, with the downward motion indicating the end of each second.

No competitor who is knocked down may be allowed to resume competing until the referee has finished counting to eight. The competitor may take the count either on the floor or standing.

If the opponent of a downed competitor fails to stay in the farthest corner, the referee shall cease counting until the opponent has returned to his or her corner and shall then go on with the count from the point at which it was interrupted. If the downed competitor rises before the count of ten, the referee may step between the competitors long enough to assure himself or herself that the competitor who has just risen is in condition to continue. If so assured, the referee, without loss of time, order both competitors to go on with the contest. During the intervention by the referee, the striking of a blow by either competitor may be ruled a foul.

When a competitor is knocked out, the referee shall perform a full ten-second count unless, in the judgment of the referee, the safety of the competitor would be jeopardized by such a count. If the competitor who is knocked down is still down when the referee calls the count of ten, the referee shall wave both arms to indicate that he or she has been knocked out.

If both competitors go down at the same time, the count must be continued as long as one is still down. If both competitors remain down until the count of ten, the contest must be stopped, and the decision is a Technical Draw.

If a competitor is down and the referee is in the course of counting at the end of a round, the bell indicating the end of the round shall not be sounded, but the bell shall be sounded as soon as the downed competitor regains his or her feet.

When a competitor has been knocked down before the normal termination of a round and the round terminates before he or she has arisen from the floor of the ring or cage, the referee's count must be continued. If the competitor who is down fails to arise before the count of ten, he or she is considered to have lost the contest by a knockout in the round containing the round that was just concluded.

If a legal blow struck in the final seconds of a round causes a competitor to go down after the bell has sounded, that knockdown must be regarded as having occurred during the round just ended, and the appropriate count must continue.

If a competitor is knocked unconscious or injured, only the physician, the referee, and a representative of the Authority are allowed in the ring. Any others may only enter at the physician's discretion.

A competitor losing by a KO or TKO. shall be immediately treated and undergo a physical examination by the ringside physician.

F. Procedure When a Competitor Has Fallen Through or Been Knocked Through the Ropes

1. A competitor who has been knocked or has fallen through the ropes and over the edge of the ring or cage platform during a contest:

a. May be helped back by anyone except his or her seconds or manager; and

b. Shall be given 20 seconds to return to the fighting area.

2. A competitor who has been knocked or has fallen onto the ring or

cage platform outside the ropes, but not over the edge of the platform:

a. May not be helped back by anyone, including without limitation his or her seconds or manager; and

b. Will be given ten seconds to regain his or her feet and get back into the fighting area.

3. If the seconds or manager of the competitor who has been knocked or fallen out

of the ring helps the competitor back into the ring or cage, such help may be

cause for disqualification.

4. When one competitor has fallen through the ropes, the other competitor shall

retire to the farthest corner and stay there until ordered to continue the contest or

by the referee.

5. No fighter may leave the fighting area before the end of the bout. Should a fighter fail to resume the bout following the end of the rest period, the referee shall begin counting as though there were a knock-down. At the conclusion of the count, the fighter's opponent shall be awarded the bout by way of a TKO.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-066

Chapter 4 Rules Governing Judging for Kickboxing Contests

Code Me. R. 99-650 Ch. 4 Rules Governing Judges for Kickboxing Contests {#sec-99-650-ch.-4 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 4}

________________________________________________________________________

SUMMARY: This Chapter establishes the qualifications for and the duties of judges.

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SECTION 1. Certification Required

All judges must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority's rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, all judges must:

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and all Authority rules governing kickboxing; and

File with the Authority a completed official application form accompanied by payment of all required fees.

SECTION 3. Designation

The Authority shall designate judges for every bout. Referees shall not score a bout.

SECTION 4. Conflict of Interest; Multiple Certifications Prohibited

No otherwise certificated individual shall be certificated as a judge. Upon filing an application with the Authority for a judge's certificate, an otherwise certificated individual must surrender for cancellation any other certificate held.

No individual who has been certificated/licensed or acted as a promoter in any jurisdiction during the previous 365 days will be issued a certificate as a judge.

SECTION 5. Minimum Number of Judges Required

All kickboxing competitions shall be evaluated and scored by three judges duly certified by the Authority.

1

SECTION 6. Judges' Duties

Prior to the start of any kickboxing competition, the judges must confirm with the referee the correct identity of each kickboxer.

Judges shall not confer with each other during the contests or express in any way to anyone their opinions as to the winner of a bout, except by final written vote.

Judges shall use only criteria set forth in these rules when scoring bouts.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-067
• EFFECTIVE DATE (NEW): 2

Chapter 5 Rules Governing Referees for Kickboxing Contests

Code Me. R. 99-650 Ch. 5 Rules Governing Referees for Kickboxing Contests {#sec-99-650-ch.-5 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 5}

__________________________________________________________________________

SUMMARY: This Chapter establishes the qualifications for and the duties of referees.

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SECTION 1. Certification Required

All referees must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority's rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, referees must meet all the following requirements:

Every new applicant for a referee's certificate and any applicant who has been

inactive as a referee for three years or more years shall furnish satisfactory proof of

physical fitness.

B. All applicants shall:

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and Authority rules governing kickboxing competitions; and

File with the Authority a completed official application form accompanied by full payment of required fees.

SECTION 3. Designation

The Authority shall designate the referee for every bout.

SECTION 4. Conflict of Interest; Multiple Certifications Prohibited.

No otherwise certificated individual shall be certificated as a referee. Upon filing an application with the Authority for a referee's certificate, an otherwise certificated individual must surrender for cancellation of any other certificate held.

No individual who has been certificated/licensed or acted as a promoter in any jurisdiction during the previous 365 days will be issued a certificate as a referee.

SECTION 5. Referees' Duties

A. Referees shall be attired in apparel approved by the Authority.

B. Prior to commencement of a bout, a referee shall:

Inspect the mouthpiece of each kickboxer, to ensure that mouthpieces are correctly inserted;

Inspect any dressing on a cut, wound, abrasion, laceration, or blood swelling on the scalp or face, to determine whether a kickboxer should be allowed to compete. Unless the dressing can be removed and the injury, cut, or wound is not so serious as to endanger the kickboxer, the referee shall not allow the kickboxer to compete;

Confirm kickboxers’ identities;

Receive confirmation that each judge has the correct identity of each kickboxer;

Meet with kickboxers and their chief seconds in the dressing room to:

1. Warn the seconds that violation of applicable rules may result in their disqualification, disqualification of their kickboxer(s), and/or disciplinary action;
2. Identify the belt/hip line and clarify that equipment shall not extend above that imaginary line unless that is explicitly authorized by Authority rule;

Explain what to do when the warning that the end of a round is near sounds and when the bell ending the round sounds;

c.

d. Explain to the chief second that he/she is expected to manage the corner, e.g., clean up spills or ice, wipe off excess petroleum jelly, and ensure that the kickboxer has his/her mouthpiece in place before the start of each round;

Share how she/he will direct the kickboxers to break, e.g., "punch" or "get out" and, if necessary, "hold your punches" and step in and separate the kickboxers;

e.

Review fouls and how she/he will issue cautions and/or deductions of points; and

Answer any questions from kickboxers and chief seconds;

Meet with each physician to:

a. Determine his/her ringside experience;

b. Determine where she/he will be located at ringside during the bout;

c. Remind every physician that he/she is not to enter the ring unless

directed to do so by the referee or the Authority;

d. Specify the signal to be used to call a physician into the ring;

e. Specify the signal to be used to call a physician to a neutral corner;

f. Direct every physician to mount the ring apron quickly if called to

examine a kickboxer, make a quick examination, and communicate

with the referee;

Direct the physician not to make any statement after examining a kickboxer that could change the dynamics of the bout, e.g, "Let it go one more round"; and

Answer any questions from the physician;

Check the condition of the ring or cage to ensure that everything is ready for the bout (buckets and stairs in red and blue corners, rope tension, ring or cage floor, and canvas condition, etc.).

When kickboxers enter the ring or cage, a referee shall:

1. Make sure that no foreign substance that might be detrimental to an opponent has been applied to the gloves or body of a kickboxer;
2. Inspect gloves, trunks, hair, mouthpieces, and safety equipment;
3. Re-establish the belt line and check for jewelry;
4. After the announcer makes introductions, call the kickboxers to center ring or cage, give final instructions, direct kickboxers to return to their corners, and clear the fighting area and its apron in preparation for the contest; and
5. Before signaling the timekeeper to start the bout, check with each judge, the timekeeper, and the physician(s) to determine if they are ready.

During a bout, a referee shall:

1. Ensure the safety of the kickboxers;
2. Enforce all the rules that apply to the conduct of a kickboxer's second;
3. Maintain control of the fight and issue cautions and/or point deductions as appropriate;
4. Whenever the glove of a kickboxer touches the fighting area floor, inspect the glove and wipe it clean before the bout proceeds;
5. If a kickboxer is cut, and it is deemed appropriate, interrupt the bout to consult the ringside physician to determine if the injured kickboxer can continue;
6. If a ringside physician steps onto the ring apron, call time-out, and have the injured kickboxer examined by that physician;
7. Immediately stop a contest to inform the Authority and kickboxers of any injury caused by a head butt or foul, determine if the act was intentional or accidental, and determine if the bout can continue;
8. Instruct the judges to mark their scorecards accordingly, when he/she has assessed a foul;
9. If a kickboxer is still down when the referee calls the count of ten or, in the opinion of the referee, a kickboxer who has been knocked down is in no condition to continue, wave both arms to indicate a KO;
10. If both kickboxers go down at the same time, continue the count as long as one of them is still down. If both kickboxers remain down until the count of ten, stop the bout, and the decision shall be a technical draw;
11. At the end of each round, pick up the score cards from the judges and give them to the Authority, unless the Authority has arranged some other procedure; and
12. Exercise exclusive and final authority to stop or continue the bout, as deemed appropriate.

After a bout, a referee shall:

1. Inspect the hand wraps of both kickboxers after their gloves have been removed;
2. Call the kickboxers to center ring and raise the hand of the winner after his/her name is announced; and
3. Maintain control of the ring, kickboxers, and seconds, until the winner has been announced and all have exited the ring.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-068

Chapter 6 Rules Governing Promotors of Kickboxing Contests

Code Me. R. 99-650 Ch. 6 Rules Governing Promoters of Kickboxing Contests {#sec-99-650-ch.-6 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 6}

_____________________________________________________________________________

SUMMARY: This Chapter establishes the qualifications for and the duties of kickboxing promoters.

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SECTION 1. Certification Required

All promoters must obtain both event and authorized participant certificates from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority’s rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, every promoter must:

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and all

Authority rules governing kickboxing.

File with the Authority a completed official application form accompanied by full payment of required fees.

SECTION 3. Duties

Notify the Authority of Contest Dates and Officials

A promoter shall secure the employment of officials for a kickboxing event from a list of officials maintained by the Authority. The Authority shall provide a current list of officials to promoters upon request.

A promoter shall notify the Authority of any proposed kickboxing event date at least 30 days prior to any such competition. The Authority may, in its discretion and in consideration of other pending or potential requests for event dates, give approval to the promoter’s proposal.

A promoter shall provide the Authority with a proposed list of officials at least ten days prior to the date which the Authority has approved for an event. If an official on the promoter’s list is not properly certificated, the Authority shall require the promoter to submit the name of an alternate official who is duly certificated.

The Authority may approve a promoter’s request for an event date change, if it receives such request no later than 45 days in advance of the proposed new date. In considering a request, the Authority may take into account how that date change will affect the interests of the requesting promoter, other promoters, and other interested persons. Whether to grant a request is wholly a matter of the Authority’s discretion. The Authority may require that a new event fee be paid.

Ensure Presence of Referees

A promoter shall ensure that all kickboxing competitions are refereed by individuals certificated by the Authority. The Authority requires that there be two or more referees at each kickboxing event.

Ensure Presence of Attending Physicians

A promoter shall ensure that every kickboxing event is attended by at least two physicians licensed to practice medicine in the State of Maine and certificated by the Authority. The promoter shall ensure that attending physicians perform all duties required by Authority rules.

Ensure Certification of Participants

A promoter shall ensure that all event participants are duly certificated before permitting them to participate in any capacity at any kickboxing event. Promoters will be held liable for all unpaid fees due for certification of participants.

Persons without certificates who desire to participate in any way in a kickboxing event must apply for their certificates using forms furnished to promoters by the Authority. Application must be made as soon as possible, usually no later than ten days prior to participation in the event.

A promoter shall forward to the Authority completed applications and fees for individuals who wish to become authorized participants in any kickboxing event. Upon approval of the applications and receipt of the fees, the Authority will issue certificates. The Authority may issue a receipt for the fee paid, which will serve as a temporary certificate for ten days.

Submit Fight Card for Approval

A promoter shall submit to the Authority for its approval a proposed fight card at least 30 days in advance of a scheduled event.

A promoter shall notify the Authority immediately of any proposed changes to a fight card. Substitutions may be made only after approval of the Authority or a duly appointed Authority member. Relevant circumstances considered will include kickboxers’ win/loss records, fighting experience, demonstrated skill, and physical condition. When it approves a match, the Authority will notify the matchmaker and promoter.

Make Financial Disclosures to the Authority

A promoter shall not receive any compensation related directly or indirectly to a kickboxing match until she/he provides the Authority:

A copy of any written agreement between the promoter and a kickboxer participating in the match;

A statement made under penalty of perjury that there are no other agreements, written or oral, between the promoter and a kickboxer with respect to that match; and

A statement made under penalty of perjury of:

All fees, charges, and expenses that will be assessed on the kickboxer by the promoter or promoter’s agent, including any portion of the kickboxer’s purse that the promoter will receive and training expenses;

All payments, gifts, or benefits the promoter is providing to any sanctioning organization affiliated with the event; and

Any reduction in a kickboxer’s purse contrary to a previous agreement between the promoter and the kickboxer or a purse bid held for the event.

A promoter shall not receive any compensation related directly or indirectly to a kickboxing match until he/she discloses to a kickboxer promoted:

The amounts of any compensation or consideration contracted for the kickboxer to receive from such match;

All fees, charges, and expenses pertaining to the event that will be assessed on the kickboxer by the promoter or promoter’s agent, including any portion of the kickboxer’s purse that the promoter or promoter’s agent will receive and training expenses; and

Any reduction in a kickboxer’s purse contrary to a previous agreement between the promoter and the kickboxer or a purse bid held for the event.

A promoter shall make information required to be disclosed under this section available to the Authority and to the Attorney General upon request.

Submit a Bout Agreement

No later than 30 days prior to a bout, a promoter shall provide the Authority with a copy of a signed and dated bout agreement for each kickboxer scheduled to compete. At minimum, a bout agreement must contain the following information:

The date, time, and location of the event at which the kickboxer will compete;

The number of rounds in each competition;

The date, time, and location of the weigh-in preceding the competition;

The weight at which the kickboxer will fight;

The amount of the purse which the kickboxer will receive; and

Any financial set-off from the kickboxer’s purse.

Provide Insurance for Events and Participants

At least 30 days prior to a scheduled event, a promoter shall file with the Authority a certificate or certificates of insurance showing event liability coverage for every certificated person who will be participating in the event. Coverage must be to limits of at least $500,000 per occurrence and $1,000,000 in the aggregate for the event. The certificate(s) must show that the promoter is bonded to the Authority for financial obligations set forth in Authority rules. The certificate(s) must also show the existence of accident coverage for all kickboxers and accident or workers’ compensation insurance for all other certificated persons who will be participating in the event.

Provide Police and Fire Protection

A promoter shall provide adequate police protection at all kickboxing events. What constitutes adequate protection is solely within the purview of the Authority to determine.

A promoter shall obtain a certificate from the local fire chief that the facility where the kickboxing competition will take place is safe for public use. A promoter shall provide a copy of the certificate to the Authority at least ten days prior to the date of a scheduled event.

No kickboxing event shall be allowed to continue without adequate police protection or certification from the local fire chief that the scheduled venue is safe.

Ensure Presence of an Ambulance

A promoter shall ensure that at least one ambulance is present at all kickboxing events, from the commencement of the first contest, throughout the duration of the event, and until the last kickboxer leaves the event venue. No kickboxing event shall continue, if no ambulance is present.

Ensure Presence of Emergency Medical Technicians

A promoter shall ensure that at least two emergency medical technicians (“EMTs”) are present at kickboxing events, from commencement of the first bout, throughout the duration of the event, and until the last kickboxer leaves the event venue. No kickboxing event shall be allowed to continue if an EMT leaves the arena and thus reduces the number of EMTs present to fewer than two, until a replacement EMT is present.

Provide Emergency Medical Facilities and Equipment

A promoter must provide adequate, Authority-approved medical information, facilities, and equipment, including but not limited to a stretcher and emergency oxygen near the fighting area.

Attend Weigh-ins

A promoter or her/his representative shall always be present during a weigh-in to complete all paperwork required by the Authority.

Provide Seating for Attending Physicians

A promoter shall provide seating for attending physicians located at or near the kickboxing ring, preferably on a raised platform, commanding an unobstructed view of the entire fighting area.

Provide Seating for Judges

A promoter shall provide judges seating on several sides of the kickboxing ring, preferably on a raised platform, commanding an unobstructed view of the entire fighting area. The judges shall be isolated from all other attendees by at least the space of one seat on each side and to the rear.

Provide Seating for Authority members

A promoter shall provide Authority members ringside seating with an unobstructed view of the entire fighting area.

Provide Public Address Announcer

A promoter shall provide a public-address announcer at all kickboxing competitions and ensure that the following information is announced over the public-address system or from the center of the kickboxing ring:

1. Prior to the start of any competition, the names of the referees, judges,

physicians, and Authority members in attendance;

2. Prior to the start of any competition, the fact that the event is sanctioned by the Authority; and

3. During the program, any change of officials made.

Provide Event Equipment

A promoter shall ensure the provision of all other equipment for the proper conduct of kickboxing competitions, including, without limitation, the following:

1.Suitable watches for timekeepers and a bell or gong to start and end each round;

2.Gloves approved by the referee and/or the Authority;

3.A clean water bucket and a clean and clear plastic water bottle in each kickboxer’s corner; and

4.An adequate supply of disposable latex laboratory gloves of a type approved by

the Authority for use by seconds, referees, attending physicians, inspectors, and

other authorized participants.

Ensure Timely Arrival of Kickboxers

A promoter shall ensure that all kickboxers arrive at the event venue at least two hours prior to the first scheduled bout to be weighed-in, checked by a physician, dressed, and gloved.

Ensure Ticket Collection

A promoter shall ensure that all tickets for kickboxing events are collected in

accordance with requirements established by the Authority.

Ensure Presence and Compensation of Inspectors

A promoter shall ensure that every kickboxing event has present the number of inspectors deemed appropriate by the Authority and that those inspectors fulfill to the satisfaction of the Authority obligations set forth in Chapter 10 of these rules. A promoter shall select inspectors from a list of qualified individuals maintained by the Authority and shall ensure that inspectors are paid no less than $75.00 as an initial fee and are paid an additional fee of $15.00 per hour for each hour that an event exceeds five hours in length.

Remit Monies to the Authority

No later than three business days after an event, a promoter shall remit to the Authority monies equal to five percent of the value of all tickets distributed for event attendees. The “value of all tickets” means the total amount of money received in payment from attendees or prospective attendees plus the total face value of tickets distributed without receipt of monetary payment to attendees or prospective attendees. “The total face value of tickets distributed without receipt of monetary payment” means the total of usual dollar amounts which would have been required payment for tickets had they been issued in exchange for monetary payment. With the remittance of monies, a promoter shall file with the Authority objectively verifiable documentary proof that the amount remitted is correct. The Authority shall determine the form of such proof.

The Authority may waive a promoter’s obligation to remit up to 100 percent of the value of tickets not issued in exchange for monetary payment (“comp tickets”), if it determines that such tickets were issued for a reason justifying waiver, e.g. , provision of the tickets to a charitable organization. In determining whether such waiver is justified, the Authority must consider an objectively verifiable accounting for tickets. The promoter is responsible for providing that accounting.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-069
• EFFECTIVE DATE (NEW): APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 17, 2025

Chapter 7 Requirements for Kickboxers

Code Me. R. 99-650 Ch. 7 Requirements for Kickboxers {#sec-99-650-ch.-7 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 7}

99-650 COMBAT SPORTS AUTHORITY OF MAINE Chapter 7: REQUIREMENTS FOR KICKBOXERS

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SUMMARY: This Chapter identifies the qualifications for and the duties of kickboxers. It also outlines certain duties of the Authority regarding notices of suspension.

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SECTION 1. Certification Required

All kickboxers must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority's rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, kickboxers must meet all the following requirements:

Be at least 18 years of age;

Possess a current federal identification card;

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and Authority rules governing kickboxing;

File with the Authority a completed official application form accompanied by full payment of required fees; and

Submit to a thorough medical examination by a physician to establish his or her physical and mental fitness for competition.

1. A "thorough medical examination" shall at a minimum include assessment of: 1. Ophthalmological dilation; 2. A comprehensive medical history; 3. Physical examination; 4. For initial certification only, a complete blood count and bleeding and coagulation time; and 5. Hepatitis B, Hepatitis C, and HIV tests conducted no earlier than 180 days prior to participation in a scheduled bout.
2. A medical examination shall be made no earlier than 365 days but no later than one day prior to application for certification or the renewal thereof, except that the Hepatitis B, Hepatitis C, and HIV tests shall be conducted no earlier than 180 days prior to participation in a scheduled bout.
3. An applicant may be required to complete a urinalysis, blood test, or other procedure to detect the presence/use of any drug or performance-enhancing substance, including without limitation any substance banned by the United States Anti-Doping Agency.
4. Every applicant more than 35 years old must provide the Authority with satisfactory proof of the results of an electrocardiogram, before weigh-ins for a bout. The electrocardiogram must have been administered no earlier than 365 days prior to the date of a scheduled bout.
5. The Authority may at its discretion order such additional examinations of a kickboxer at any time to determine his or her continued fitness and qualifications to compete.

SECTION 3. Duties of Kickboxing Competitors

Upon receipt of their certificates, kickboxers must attach a passport type photo of themselves to the reverse side of the certificates.

Pre-Fight Medical Examination

All kickboxers shall submit, when weighing-in and again a short time before the kickboxing program commences, to a thorough medical examination by a physician appointed by the Authority. All such examinations shall be conducted privately, with no other person other than the physician and the kickboxer present.

1. The pre-fight examination shall include the administration of a physical; complete medical history; ophthalmological examination; neurological examination; and, at the discretion of the Authority, a urinalysis, blood test, or other procedure to detect use of prohibited substances.
2. The kickboxer shall present to the attending physician the results of Hepatitis B, Hepatitis C, and HIV tests administered no earlier than 180 days prior to participation in a bout. Any kickboxer who fails to produce negative test results for Hepatitis B, Hepatitis C, and HIV shall not participate in a kickboxing competition. Hepatitis vaccinations, in addition to testing, are recommended for all kickboxers but are not mandatory.
3. Any kickboxer 35 years old or older must provide the Authority with satisfactory proof of the results of an electrocardiogram administered no earlier than 365 days prior to the date of the scheduled bout.
4. The examination shall include a pregnancy test for all female kickboxers.

Any kickboxer determined to be pregnant shall not be permitted to compete in a kickboxing match. A female kickboxer who fails to submit to an Authority­ supervised pregnancy test will be prohibited from fighting.

1. No kickboxer shall enter the ring or cage unless an attending physician appointed by the Authority has certified his or her fitness to engage in a kickboxing contest. The physician's decision that a kickboxer is not fit to engage ina kickboxing contest shall not be subject to change by any other official.

Abstinence from the Use of Prohibited Substances

1. A kickboxer' s use before or during a match of any drug, performance-enhancing substance, mind-altering substance, narcotic, stimulant, depressant, or analgesic of any description, including without limitation alcohol, marijuana, and substances banned by the United States Anti-DopingAgency, shall result in the immediate disqualification of the kickboxer and additional disciplinary action.
2. The Authority may require that a competitor submit to: 1. A pre-fight or post-fight urinalysis, blood test, or other procedure to detect the use of any prohibited substance; and 2. At any time after the completion of a kickboxing competition, additional testing for the use of prohibited substances.
3. Kickboxers shall cooperate with Authority testing procedures and must provide any medical or other information sought by the Authority with regard to testing.
4. Collection of urine, blood, or other evidence to test for possible use of prohibited substances shall be supervised by an Authority official. Refusal to submit to such testing shall result in the immediate disqualification of a kickboxer from a contest and additional disciplinary action.
5. The Authority shall be responsible for the costs of testing for the use of prohibited substances.
6. A positive or non-negative test result for use of a prohibited substance shall constitute prima facie proof of use of the substance by a kickboxer and cause for immediate certificate suspension, disqualification from competition, and additional disciplinary action including: 1. For a first offense, 90 days' certificate suspension and a civil penalty of $500.00; and 2. For a second offense, certificate revocation and a civil penalty

of $500.00.

Post-Fight Medical Examination

Immediately following a match, each kickboxer shall be given a physical examination by a physician appointed by the Authority. The post-fight examination may include a urinalysis, blood test, breath analysis, or other procedure to detect the presence of any drug or performance-enhancing substance. Any kickboxer refusing to submit to a post­ fight medical examination shall be immediately suspended for at least 30 days and be subject to additional disciplinary action.

SECTION 4. Knockout Suspensions

All kickboxers who have been ruled "knocked out" by the referee shall be suspended as follows:

Post-Knockout Suspension

Any kickboxer who is ruled "knocked out" as determined by the referee shall be suspended from kickboxing for a period of at least 60 days. The knocked-out kickboxer shall not be permitted to participate in a match until a thorough medical examination prescribed by a physician is completed and demonstrates to the Authority that the kickboxer is fit to compete. The medical examination must include testing of neurological functions.

Post-Technical Knockout Suspension

Any kickboxer who is technically knocked out shall be suspended for a period of at least 30 days. The technically knocked-out kickboxer shall not be permitted to participate in a match until a thorough medical examination prescribed by a physician is completed and demonstrates to the Authority that the kickboxer is fit to compete. The medical examination must include testing of neurological functions.

SECTION 5. Records of Bout Results and Suspensions

The Authority shall maintain a current listing of all Maine-certificated kickboxers who are under suspension, the reasons therefor, and suspension durations. The listing shall include like information obtained from other jurisdictions. All results of all competitions and all impositions of suspensions shall be reported to the BoxRec.com database.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-070

Chapter 8 Rules Governing Managers, Trainers, Seconds, Cutpersons, Scorekeepers, and Cornerpersons for Kickboxing Contests

Code Me. R. 99-650 Ch. 8 Rules Governing Managers, Trainers, Seconds, Cutpersons, Scorekeepers, and Cornerpersons for Kickboxing {#sec-99-650-ch.-8 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 8}

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SUMMARY: This Chapter establishes the qualifications for and the duties of managers, trainers, seconds, cutpersons, cornerpersons, and scorekeepers. It also identifies certain authorized, mandated, and prohibited activities and equipment.

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SECTION 1. Certification Required

All managers, trainers, cutpersons, cornerpersons, scorekeepers, and seconds must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority’s rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, all managers, trainers, cutpersons, cornerpersons, scorekeepers, and seconds must:

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and Authority rules governing kickboxing; and

File with the Authority a completed official application form accompanied by full payment of required fees.

Managers must meet the additional requirement of filing with the Authority copies of all existing contracts between and among themselves, promoters, and kickboxers.

SECTION 3. Mandatory Activities

All members of a kickboxer’s corner who will be working the fighting area must be present for a discussion of Authority rules at the time set by the Authority on the day or night of a bout.

SECTION 4. Authorized Activities

No more than three seconds can assist a kickboxer during a contest, one inside the ring or cage and two on the ring or cage apron.

Before a contest begins:

1. The chief second and other cornerpersons for each kickboxer shall identify themselves to the inspector present and the referee. Only those so identified shall be allowed in the kickboxer’s corner.

A cornerperson shall present the kickboxer, ready to box, when the referee calls the kickboxers to ring or cage center for final instructions.

During a round, a second:

1. Must remain seated;

Must not mount the stairs or apron or enter the ring or cage until the bell indicates the end of a round, except to indicate a desire to stop a fight;

Can signal a desire to stop the fight only by mounting the fighting area apron rather than throwing towels, sponges, or anything else into the ring or cage; and

Must refrain from excessive coaching of his/her kickboxer.

During a rest period, a second:

May coach his/her kickboxer;

May treat cuts, abrasions, or swelling;

May provide the kickboxer water, ice, or other cooling techniques;

Shall leave the fighting area at the sound of the timekeeper’s whistle given ten seconds before a round begins; and

Shall remove all items in the fighting area and its platform prior to the bell sounding the beginning of the round.

SECTION 5. Prohibited Activities

No person other than kickboxers, referees, or a physician acting pursuant to Chapter 9 of these rules shall enter the ring or cage during a round.

Managers, trainers, seconds, cutpersons, scorekeepers, and cornerpersons shall not yell loudly or use profanity while working the corner. Any profanity or disobedience of the referee's instructions during the progress of a fight shall be sufficient cause for removal of an individual from the corner.

Managers, trainers, seconds, cutpersons, scorekeepers, and cornerpersons shall not leave their designated areas during a fight. If a manager or second leaves a designated area during a fight, the kickboxer will be disqualified.

Managers, trainers, seconds, cutpersons, scorekeepers, and cornerpersons shall not assist a kickboxer who is knocked out of the ring or cage onto the floor. A kickboxer who is knocked out of the ring or cage onto the floor must get back into the fighting area within twenty seconds without assistance from anyone.

Managers, trainers, seconds, cutpersons, scorekeepers, and cornerpersons shall not enter the ring or cage to assist or move a kickboxer who has been knocked down or injured, until instructed to do so by medical personnel.

Managers, trainers, seconds, cutpersons, scorekeepers, and cornerpersons shall not agree in writing, verbally, or otherwise for their kickboxer to fight when they know the kickboxer to be improperly conditioned or physically inadequate.

No individual other than a referee shall interfere in any way with the conduct of a fight or touch a kickboxer during a round.

If the referee has ordered a kickboxer to be examined by an attending physician, no other individual shall administer any aid to the kickboxer.

SECTION 6. Mandated Equipment

The following items must be available in each kickboxer’s corner:

A bucket with ice;

A towel;

Water in an unopened clear plastic bottle which an inspector has examined and approved;

A sponge; and

Surgical tape.

SECTION 7. Optional Equipment

The following items are the only non-mandatory materials which a manager or second may bring to a kickboxer’s corner:

Petroleum jelly;

Adrenaline in the original and sealed manufacturer's container as prescribed in a

1/1,000-part solution;

Cotton swabs;

Gauze pads;

Clean towels;

Thrombin;

Quickclot;

Avitene;

Pressure plates;

Hydrogen peroxide;

Mouthwash solution;

Bandage scissors;

Sterile skin closures; and

Additional clear plastic bottles of water, if examined and approved by an inspector before opening.

SECTION 8. Prohibited Equipment

The following materials are prohibited from each kickboxer’s corner:

Monsel’s solution;

Drugs of any type;

“New skin" flexible collodion;

Silver nitrate;

Any substance with an iron base;

Ammonia capsules or other “smelling salts”;

Water bottles opened before examination by an inspector; and

Any consumable liquid other than pure water.

SECTION 9. Sanctions

Any person who violates a provision of this Chapter will be disqualified from participation in the remainder of a kickboxing competition and will be subject to additional discipline.

A kickboxer may lose points or be disqualified for the misconduct of his/her chief second or corner(s).

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-071

Chapter 9 Rules Governing Attending Physicians for Kickboxing

Code Me. R. 99-650 Ch. 9 Rules Governing Attending Physicians for Kickboxing Contests {#sec-99-650-ch.-9 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 9}

SUMMARY: This Chapter establishes the qualifications for and the duties of attending physicians prior to, during, and after kickboxing events.

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SECTION 1. Certification Required

All attending physicians must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority’s rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, all attending physicians must:

Be licensed to practice medicine in the State of Maine;

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and all Authority rules governing kickboxing; and

File with the Authority a completed official application form accompanied by full payment of required fees.

SECTION 3. Duties of Attending Physicians

A. Examination of Kickboxers

Attending physicians shall conduct all medical examinations required by these rules or requested by the Authority.

Presence During Competitions

During the progress of a bout, attending physicians shall remain at the kickboxing ring or cage in a seat provided by the promoter and shall have their medical kits. An attending physician shall not enter the fighting area during the progress of a bout, unless:

Requested to do so by the referee; or

The referee has ordered the kickboxers to stop and has separated them.

Between rounds, an attending physician may enter the fighting area, if summoned by a referee.

Attending physicians shall remain at the scene of an event until it has been ascertained that any serious injury incurred by a kickboxer has been given due attention.

Provision of Medical Equipment

Attending physicians shall have a medical kit immediately available at the side of the ring or cage. It must at a minimum include the following equipment:

Stethoscope;

Manometer;

Alcohol;

Cotton;

Gauze;

An ice bag; and

Aromatic ammonia capsules.

D. Termination of a Bout

An attending physician shall direct the referee to terminate any bout, if in the physician’s opinion, a kickboxer has received severe physical injury or is in danger of serious physical injury. Any kickboxer who in the opinion of the physician suffers a serious head injury or is rendered unconscious shall not be permitted to continue to fight.

In the event of a kickboxer’s serious injury, an attending physician shall immediately render any emergency treatment necessary and order further treatment or hospitalization as is required. The attending physician may also order that the injured kickboxer and his manager remain on the premises or report to a hospital for further examination and treatment. Any kickboxer, manager, or second refusing to comply with such an order shall be subject to discipline.

E. Reports of Injuries

Within 48 hours after a contest, an attending physician shall complete and return to the Authority a printed injury insurance form reporting serious injuries. Such reports shall include any recommendations regarding an injured kickboxer. A physician must supplement a report whenever she/he obtains additional relevant evidence regarding an injury.

On the date of a bout, an attending physician shall provide to the Authority a written statement concerning any kickboxer who has been rendered unconscious or who has suffered a serious head injury while kickboxing. Any kickboxer who in the opinion of the physician suffers a serious head injury or who has been rendered unconscious shall not resume kickboxing competition until the Authority receives written certification from a physician that the kickboxer is fit to take part in competitive combat sports.

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History

• STATUTORY AUTHORITY: 8 M.R. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-072

Chapter 10 Rules Governing Inspectors for Kickboxing Contests

Code Me. R. 99-650 Ch. 10 Rules Governing Inspectors for Kickboxing Contests {#sec-99-650-ch.-10 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 10}

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SUMMARY: This Chapter establishes qualifications for and the duties of inspectors certificated by the Authority.

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SECTION 1. Certification Required

All inspectors must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority’s rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, all inspectors shall study and become thoroughly familiar with 8 M.R.S. Chapter 20 and Authority rules governing kickboxing.

SECTION 3. The Authority shall determine how many certificated inspectors are required for each event.

SECTION 4. Inspectors’ Duties

Inspectors shall assist the Authority by performing duties as assigned by the Authority during kickboxing competitions, including:

Determination that kickboxers and all other participants are certificated according to the requirements of the Authority’s rules;

Supervision of gate entrances;

When the occasion requires, submission of reports on circumstances of interest to the Authority, including reports of conduct which the Authority might wish to investigate for disciplinary purposes;

Monitoring locker rooms to ensure that only authorized participants are allowed inside and remain inside at appropriate times;

Inspection and signing of hand wrappings and gloves with visible lines, unless the Authority delegates this task to other individuals;

Escorting kickboxers to the ring or cage and from the ring or cage to a post-fight medical examination; and

Ensuring that only authorized individuals are allowed inside the fighting area.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-073

Chapter 11 Rules Governing Timekeepers for Kickboxing Contests

Code Me. R. 99-650 Ch. 11 Rules Governing Timekeepers for Kickboxing Contests {#sec-99-650-ch.-11 omnilex-key=us-me-regs-official--dept-independent-agencies--99-650 Ch. 11}

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SUMMARY: This Chapter establishes the qualifications for and the duties of timekeepers.

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SECTION 1. Certification Required

All timekeepers must obtain a certificate from the Authority prior to engaging in any act authorized by 8 M.R.S. Chapter 20 or by the Authority’s rules.

SECTION 2. Qualification for Certification

Prior to the issuance of a certificate by the Authority, all timekeepers must:

Study and become thoroughly familiar with 8 M.R.S. Chapter 20 and all Authority rules governing kickboxing; and

File with the Authority a completed official application form accompanied by full payment of required fees.

SECTION 3. Timekeepers’ Duties

Timekeepers shall ensure that rounds are of equal duration and that there is a rest period of required duration between rounds.

Timekeepers shall not leave the gong until the completion of a bout.

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History

• STATUTORY AUTHORITY: 8 M.R.S. § 523
• EFFECTIVE DATE (NEW): March 26, 2025 – filing 2025-074