121st Maine Legislature
		Office of Fiscal and Program Review
		LD 505
		An Act to Promote Maine Farm and Dairy Products in Place of Soft Drinks in Public Schools and To Create a Maine Residency Program for New Dentists
		LR 0845(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Mills
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Appropriations/Allocations
	Other Special Revenue Funds		$3,686,400	$6,328,320	$6,581,453	$6,844,711
Revenue
	Other Special Revenue Funds		$3,686,400	$6,328,320	$6,581,453	$6,844,711
Fiscal Detail and Notes
	This bill establishes a new tax on soft drinks.  It is expected to increase Other Special Revenue by $3,686,400 in fiscal year 2003-04 and $6,328,320 in fiscal year 2004-05.  The bill provides for the revenues to be allocated as follows:  50% to local school administrative units that prohibit the advertising and sale of soft drinks and candy and sell Maine dairy and farm products; and 50% to establish a dental health residency program at one or more qualifying Maine hospitals. The details on how these funds will be distributed between local school administrative districts and between hospitals cannot be determined at this time.  Maine Revenue Services will also require an Other Special Revenue allocation of $139,131 in fiscal year 2003-04 and $49,289 in fiscal year 2004-05 for the administrative costs associated with this new tax.