Sec. 3. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.

2002-03

ECONOMIC AND COMMUNITY DEVELOPMENT,

DEPARTMENT OF

Office of Tourism

Positions - Legislative Count (-7.000)

Personal Services ($438,314)

All Other (4,210,132)

DEPARTMENT OF ECONOMIC AND COMMUNITY

DEVELOPMENT ____________

TOTAL ($4,648,446)

Sec. 4. Allocation. The following funds are allocated from Other Special Revenue to carry out the purposes of this Act.

2001-02 2002-03

ECONOMIC AND COMMUNITY

DEVELOPMENT, DEPARTMENT OF

Office of Tourism

Positions - Legislative Count (7.000)

Personal Services $438,314

All Other $4,500,000 6,403,976

DEPARTMENT OF ECONOMIC AND

COMMUNITY DEVELOPMENT __________ __________

TOTAL

$4,500,000 $6,842,290

Sec. 5. Effective date. That section of this Act that amends the Maine Revised Statutes, Title 36, section 1811, first paragraph, takes effect October 1, 2001.

SUMMARY

This bill establishes the Tourism Marketing Promotion Fund that will be funded by a transfer of 5% of the tax revenue

collected from sales tax imposed on meals and lodging. This transfer will not affect the amount transferred for state- municipal revenue sharing. The Maine Tourism Commission must approve the annual budget of the fund, which, beginning in fiscal year 2002-03, will fund the entire budget of the Office of Tourism program.

This bill also equalizes the tax on all prepared food or meals at the 7% tax that is currently assessed on meals sold in establishments that are licensed for on-premises consumption of liquor pursuant to the Maine Revised Statutes, Title 28-A, chapter 43. Currently, meals sold at establishments not licensed for the on-premises consumption of liquor are taxed at 5%.