Sec. 1. 4 MRSA §173, sub-§4-B, ¶¶C and D, as enacted by PL 1997, c. 750, Pt. A, §2, are amended to read:

C. The balance remaining in the fund at the end of the fiscal year must be transferred to the General Fund distributed to municipalities and counties in accordance with subsection 4-C.

D. If there is a deficit in the fund at the end of the fiscal year, the Treasurer of State shall transfer a sufficient amount from the General Fund to balance the fund for reimbursements made pursuant to subsection 4-A to municipalities and counties.

Sec. 2. 4 MRSA §173, sub-§4-C is enacted to read:

4-C.__Municipal and county reimbursement.__Any balance remaining in the Law Enforcement Agency Reimbursement Fund, established in subsection 4-B and referred to in this subsection as "the fund," at the end of the fiscal year must be distributed to municipalities and counties in accordance with this subsection.

A.__A municipality that employs at least one full-time law enforcement officer or that has a contract with a county to provide rural patrol services is entitled to reimbursement under this paragraph.__The level of reimbursement is determined by multiplying the municipal population factor by the balance remaining in the fund at the end of the fiscal year.__For purposes of this paragraph, the municipal population factor is determined by dividing the population of the municipality by the total population of the State, as determined by the last Federal Decennial Census or as determined and certified by the Department of Health and Human Services, whichever is more current.__For purposes of this paragraph, the Department of Health and Human Services shall determine the population of each municipality at least once every 2 years.

B.__If a municipality does not employ at least one full-time law enforcement officer or have a contract with a county to provide rural patrol services, the reimbursement must be provided to the county in which the nonqualifying municipality is located.