128th MAINE LEGISLATURE
LD 1791 LR 2843(03)
An Act To Continue the Maine Lobster Marketing Collaborative
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Marine Resources
Fiscal Note Required: Yes
             
Fiscal Note
FY 2017-18 FY 2018-19 Projections  FY 2019-20 Projections  FY 2020-21
Revenue
Other Special Revenue Funds $0 ($1,059,611) ($1,589,417) ($1,589,417)
Fiscal Detail and Notes
This bill would make the license surcharges used to fund the Maine Lobster Marketing Collaborative (MLMC) voluntary for fiscal year 2018-19 through fiscal year 2020-21 and would prevent the Department of Marine Resources (DMR) from refusing to issue any license based upon an applicant's nonpayment of the surcharge.  This would reduce the annual revenue to the MLMC for the number of applicants who opt-out of paying the surcharges.  Using fiscal year 2017 as a baseline and assuming a 50% opt-out rate the first year and a 75% rate subequently, this revenue reduction would be $1,059,611 in fiscal year 2018-19 and $1,589,417 in each of the next two fiscal years. Such a reduction would greatly limit the ability of the MLMC to continue marketing activities past the current fiscal year.  
Any additional costs to the DMR and the MLMC as a result of changes to the organizational structure of the MLMC, the timeline for operations of the MLMC and the requirements that DMR investigate and report on possible changes to certain license surcharges used to fund the MLMC are anticipated to be minor and can be absorbed within existing budgeted resources.