10-144 C.M.R. ch. 231, § 1-A - ALTERNATIVE FUNDING MECHANISM

Pursuant to 22 M.R.S. §2660 - E(1), the Commissioner may impose a fee upon each legal entity deemed a public water system in the State for the purpose of retaining primacy. The Department will establish fee formulas by rule, according to the Administrative Procedure Act (APA). Pursuant to 22 M.R.S. §2660-E, the Department shall consult with and consider the advice of the Maine Public Drinking Water Commission (the Commission) in preparing the rules. The rules issued by the Department shall include the fee formulas and collection and transfer schedules developed by the Commission. Revenues derived through such fee formulas shall be referred to as Alternative Funding Mechanism (AFM) Fees. Further, pursuant to 22 M.R.S. §2660-E revenues generated from collection of these fees shall be used for the purpose of retaining primacy, including the funding of Department positions as stated below.

A. Fee Formulas

1. Pursuant to 22 M.R.S. §2660-E (Maine's Water for Human Consumption Act), the following AFM fee formula is established:

a. The AFM fee is equal to the base fee plus the per capita rate multiplied by the population capacity minus the exempt population.

b. AFM Fee = Base Fee + ((per capita rate) x (population capacity) - (exempt population.))

c. The base fee assessed will not exceed $75.

2. Pursuant to 22 M.R.S. Chapter 601 (Maine's Water for Human Consumption Act), the following bottled water facility and treated water vending machines AFM fee formulas are established:

a. The fee schedule for in-state water bottlers shall be based on gallons produced. (Bottler Size Factor X Fee Rate per Bottler Size). The Drinking Water Commission and the Department will set the Fee Rate per Bottler Size Factor annually.

b. The base fee assessed will not exceed $75.

c. The fee schedule for treated water vending machines shall be calculated at a rate of $10.00 per machine, with a minimum fee of $50 per vendor and not to exceed a maximum of $150. (Based Fee + (Per-machine Rate X Number of Machines).

d. Production reports are subject to annual verification by the Department. Failure to comply may result in assessment of the maximum bottled water fee.

B. Formula Parameters

1. The following parameters will be used to determine and calculate the AFM fee for regulated public water systems:

a. The minimum fee will be equal to the base fee;

b. The base fee will be no more than $75 per year per public water system;

c. The Commission and the Department will establish the per capita rate annually.

d. The population capacity will be based on, but not limited to, the population served, service connections, volume of water pumped or available seats, campsites, rooms or lots, and may include a fixed or graduated fee formula or combinations of the fee formulas; and

e. An exempt population may be determined to be part of the AFM and subtracted from the population capacity as determined by the Commission and the Department annually pursuant to 22 M.R.S. §2613.

2. The following parameters shall be used to determine and calculate the Bottled Water and Treated Water Vending Machines AFM fee for regulated public water systems:

a. All in-state bottlers shall submit gallon production reports for the year ending December 31st, and such reports are due no later than March 1st.

b. The production report, which will provide the number of gallons produced for the sale of bottled water, shall be used to calculate the AFM fee.

c. Fees collected under this section cover a one-year period beginning July 1 and shall coincide with the State fiscal year.

C. Fund Management

1. The Fund will be managed within the following parameters:

a. The Public Drinking Water Fund is established as an interest-bearing dedicated revenue account;

b. All interest earned by the account becomes part of the fund;

c. All fees collected by the Commissioner under this subchapter must be deposited into the fund;

d. Any balance remaining in the fund at the end of the fiscal year does not lapse but is carried forward into subsequent fiscal years; and

e. The Commission may use the fund only to support the cost incurred by the Department in managing the Fund, including the cost of salaries, benefits, travel, education, technical assistance, capital equipment and other allowable expenses incurred by the Department.

2. Collection and disposition of fees pursuant to 22 M.R.S. §2660-F

a. All public water systems shall pay an annual AFM fee.

b. Fees collected under this section cover a one year period beginning July 1 and shall coincide with the State fiscal year;

c. Fees collected under this section are State fees;

d. Fees shall be collected by each public water system in monthly, quarterly, or annual increments; and

e. The Department will establish schedules for the collection and transfer of fees to the State with the advice of the Commissioner.

D. Alternative Funding Revenues to be Generated

1. The fee structure shall be sufficient to generate funds to support no more than 10 positions for a full year.

E. Collection and Remittance of Fees

1. Any legal entity assessed a total fee of $500 or more may exercise the option of remitting the assessed fee on a quarterly basis. Fees so remitted shall be due and payable July 1, October 1, January 1, and April 1. Legal entities opting to remit on a quarterly basis shall remit at least 25% of the total assessment each quarter. Fees shall be deemed delinquent 30 days after the due date.

2. Any legal entity assessed a total fee of $500 or more that opts not to pay fees on a quarterly basis shall pay fees to the Department annually. Such fees shall be due and payable by July 1 of each calendar year. Fees shall be deemed delinquent 30 days after the due date.

3. Any legal entity assessed a total fee of less than $500 shall remit the assessed fee on an annual basis. Fees remitted on an annual basis shall be due and payable July 1 and shall be deemed delinquent 30 days after the due date.

4. Fees shall be made payable to the Treasurer, State of Maine and pursuant to 22 M.R.S. §2660-F shall be deposited in the Public Drinking Water Fund.

F. Records Required

1. Records documenting the collection and transfer of fees required in these rules shall be retained by the owner or other duly authorized person. The records shall be kept in-state and on-site of the public water system for a period of at least 5 years. If it is not possible to keep the records on-site, then the records must be kept such that an appropriate person from the Department may inspect such records upon request. Further, the records should be transferred to the new owner with the sale of the public water system.

2. Records documenting the collection and transfer of fees as required in these rules shall be made readily available by the owner or other duly authorized person for inspection by appropriate authorities at all times during normal business hours.

3. The Department will keep records documenting the collection and transfer of all fees assessed for at least 5 years.

G. Failure to Remit Fees to the Department

1. The Department may seek relief in a court of competent jurisdiction as provided in 22 M.R.S. §§2617 through 2620 or § 2660-G for failure to remit fees in a timely manner.

Notes

10-144 C.M.R. ch. 231, § 1-A