PART W

Sec. W-1. 30-A MRSA §5681, sub-§5, ¶¶A and B, as amended by PL 2001, c. 714, Pt. Y, §1, are further amended to read:

A. For months beginning before July 1, 2003 2005, 5.1%; and

B. For months beginning on or after July 1, 2003 2005, 5.2%.

Sec. W-2. Local Government Fund; distribution. Notwithstanding the Maine Revised Statutes, Title 30-A, section 5681 or any other provision of law, the Treasurer of State shall withhold $1,000,000 from the amounts scheduled to be distributed in the month of July 2004 from the Local Government Fund.

The funds withheld may be authorized for distribution by the Commissioner of Administrative and Financial Services to municipalities that have demonstrated that they have adopted administrative and other service-delivery practices that achieve cost savings in operating funds related to administrative services and that the money has been directed for property tax relief.

The Department of Administrative and Financial Services shall establish criteria through which a municipality may demonstrate that it has adopted practices that have achieved or will achieve in a time period set by the department the savings and property tax relief. The department shall establish these criteria in consultation with the Executive Department, State Planning Office and the Maine Municipal Association.

Prior to the end of fiscal year 2004-05, a municipality may apply to the Commissioner of Administrative and Financial Services for a distribution from the Local Government Fund. The commissioner, or the commissioner's designee, shall apply the established criteria to determine whether, and in what amount, to disburse money to the municipality.

At the end of fiscal year 2004-05 any remaining funds must be distributed among those municipalities that have achieved savings.

PART X