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An Act To Repeal the Service Provider Tax on Private Nonmedical Institutions and To Offset That Revenue Loss
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §2552, sub-§1, ¶G, as amended by PL 2013, c. 331, Pt. C, §14, is further amended to read:
 
G. Private nonmedical institution or personalPersonal home care services;
Sec. 2. 36 MRSA §2552, sub-§1, ¶L, as amended by PL 2013, c. 368, Pt. OOOO, §3, is further amended to read:
 
L. Ancillary services; and
Sec. 3. 36 MRSA §2552, sub-§1, ¶M, as enacted by PL 2013, c. 368, Pt. OOOO, §4, is amended to read:
 
M. Group residential services for persons with brain injuries.;
Sec. 4.  36 MRSA §2552, sub-§1, ¶¶N and O  are enacted to read:
 
N.  Motion picture entertainment at locations where the primary activity is the showing of motion pictures; and
 
O.  Skiing, snowboarding and similar winter sports activities at locations where the primary activity is engagement in winter sports.
Sec. 5. 36 MRSA §2559, as amended by PL 2011, c. 542, Pt. A, §141, is further amended to read:
§ 2559.Application of revenues
Revenues derived by the tax imposed by this chapter must be credited to a General Fund suspense account. On or before the last day of each month, the State Controller shall transfer a percentage of the revenues received by the State Tax Assessor during the preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs A to F and L to the Local Government Fund as provided by Title 30-A, section 5681, subsection 5. The balance remaining in the General Fund suspense account must be transferred to service provider tax General Fund revenue. On or before the 15th day of each month, the State Controller shall transfer all revenues received by the assessor during the preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs G to J and M to the Medical Care Services Other Special Revenue Funds account, the Other Special Revenue Funds Mental Health Services - Community Medicaid program, the Medicaid Services - Adult Developmental Services program and the Office of Substance Abuse - Medicaid Seed program within the Department of Health and Human Services. On or before the 15th day of each month, the State Controller shall transfer all revenues received by the assessor during the preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs N and O to the Medical Care Services Other Special Revenue Funds account.
 
SUMMARY
This bill repeals the service provider tax on private nonmedical institutions and expands the tax to cover motion picture entertainment and certain winter sports. The revenue from the newly covered services is dedicated to fund medical services eligible for matching federal Medicaid funding currently funded by revenue from the tax on private nonmedical institutions. The bill also corrects an oversight by identifying the application of revenue from the service provider tax on group residential services for persons with brain injuries.