Sec. 1. 37-B MRSA §1059-A is enacted to read:

§1059-A.__Dam Repair and Reconstruction Fund

1.__Fund established.__The Dam Repair and Reconstruction Fund, referred to in this section as the "fund," is established.__The department shall administer the fund and make low-interest loans from the fund for purposes pursuant to this section.

2.__Purposes.__The fund provides low-interest loans to municipalities for engineering, legal and construction costs involved in acquiring title to, establishing a long-term management plan for, repairs to and reconstruction of a dam.

3.__Rulemaking.__The department shall adopt rules to implement this section, including criteria and procedures for the application for and award of low-interest loans from the fund and for repayment of loans to the fund.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

4.__Nonlapsing.__Any balance in the fund at the end of the fiscal year may not lapse but must be carried forward to the next fiscal year.

Sec. 2. 38 MRSA §844, as enacted by PL 1999, c. 782, §1, is repealed.

Sec. 3. State Controller to transfer balance. The State Controller shall transfer any balance held in the former Dam Repair and Reconstruction Fund established in the Maine Revised Statutes, Title 38, section 844 to the Dam Repair and Reconstruction Fund established in Title 37-B, section 1059-A on the effective date of this Act.

Sec. 4. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.

2001-02

DEFENSE, VETERANS AND EMERGENCY

MANAGEMENT, DEPARTMENT OF

Dam Repair and Reconstruction

Fund

All Other $250,000