APPROVED CHAPTER
MAY 2, 2022 681
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-TWO
_____
H.P. 428 - L.D. 585
An Act To Enhance Tribal-State Collaboration, To Revise the Tax Laws
Regarding the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe
and the Penobscot Nation and To Authorize Casinos, Off-track Betting
Facilities, Federally Recognized Indian Tribes and Certain Commercial
Tracks To Conduct Sports Wagering
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1. 5 MRSA c. 376 is enacted to read:
CHAPTER 376
TRIBAL-STATE COLLABORATION
§11051. Short title
This chapter may be known and cited as "the Tribal-State Collaboration Act."
§11052. Definitions
As used in this Act, unless the context otherwise indicates, the following terms have
the following meanings.
1. Agency. "Agency" means the following:
A. The Department of Agriculture, Conservation and Forestry;
B. The Department of Corrections;
C. The Department of Economic and Community Development;
D. The Department of Education;
E. The Department of Environmental Protection;
F. The Department of Health and Human Services;
G. The Department of Inland Fisheries and Wildlife;
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 H. The Department of Labor;
I. The Department of Public Safety;
J. The Department of Administrative and Financial Services;
K. The Department of Professional and Financial Regulation;
L. The Department of Defense, Veterans and Emergency Management;
M. The Department of Marine Resources;
N. The Department of Transportation;
O. The Office of the Public Advocate; and
P. The Public Utilities Commission.
2. Indian tribe. "Indian tribe" means a federally recognized Indian tribe within the
State of Maine.
§11053. Collaboration between agencies and Indian tribes
1. Required policies. An agency shall develop and implement a policy that:
A. Promotes effective communication and collaboration between the agency and the
Indian tribes;
B. Promotes positive government-to-government relations between the State and the
Indian tribes;
C. Promotes cultural competency in the agency's interactions with the Indian tribes
and tribal members;
D. Establishes a process for collaboration between the agency and the Indian tribes
regarding the agency's programs, rules and services that substantially and uniquely
affect the Indian tribes or tribal members. In the context of emergency rulemaking
pursuant to section 8054, the policy must require notice and collaboration to the extent
practicable. Collaboration under this paragraph must be in addition to any process
available to members of the general public and must include:
(1) Providing the Indian tribes reasonable written notice of the contemplated
program, rule or service;
(2) Allowing the Indian tribes a reasonable opportunity to provide information,
advice and opinions on the contemplated program, rule or service;
(3) Requiring the agency to consider the information, advice and opinions it
receives from the Indian tribes under subparagraph (2); and
(4) Requiring the agency to make reasonable efforts to complete the collaboration
process before taking final action on the contemplated program or service or, in
the case of a rule, before publication of the proposed rule pursuant to section 8053,
subsection 5; and
E. Establishes a method for informing employees of the agency of the provisions of
this Act and the policy that the agency adopts pursuant to this section.
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 2. Consultation in policy development. An agency shall request comments from
each Indian tribe and the Maine Indian Tribal-State Commission, and consider each
comment received, before adopting a policy under subsection 1.
3. Tribal liaison. An agency shall designate an individual who reports directly to the
head of the agency to serve as the agency's tribal liaison. The tribal liaison shall:
A. Assist with developing and ensuring the implementation of the policy required by
subsection 1;
B. Serve as a contact person responsible for facilitating effective communication
between the agency and the Indian tribes; and
C. Coordinate the training of agency employees as provided in section 11054.
§11054. Mandatory training
An agency shall ensure that the tribal liaison designated pursuant to section 11053,
subsection 3, other employees responsible for tribal collaboration under this Act and other
employees whose work substantially and uniquely affects Indian tribes or tribal members
receive training designed to promote:
1. Communication and collaboration. Effective communication and collaboration
between the agency and the Indian tribes;
2. Government-to-government relations. Positive government-to-government
relations between the State and Indian tribes; and
3. Cultural competency. Cultural competency in tribal issues.
§11055. Tribal-State Summit; reports by agencies and Indian tribes
1. Annual Tribal-State Summit. The Governor shall meet at least annually with the
leaders of Indian tribes in a Tribal-State Summit to address issues of mutual concern, which
may include:
A. Implementation of the Maine Native American study provisions of Title 20-A,
section 4706;
B. Implementation of the provisions of this Act; and
C. Improving communication between the State and the Indian tribes.
2. Biennial agency reports. Beginning January 10, 2023 and biennially by January
10th thereafter, an agency shall file a report with the joint standing committee or
committees of the Legislature having jurisdiction over the agency and with the Maine
Indian Tribal-State Commission on the activities of the agency pursuant to this Act. The
report must include:
A. A copy of the current policy adopted under section 11053, subsection 1 and a
description of any changes that have been made to that policy since the filing of the
previous report. If the agency has not yet adopted a policy under section 11053,
subsection 1, the agency must describe the steps the agency has taken to adopt such a
policy;
B. The name and contact information of the tribal liaison designated by the agency
under section 11053, subsection 3;
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 C. A description of training provided pursuant to section 11054;
D. A statement of programs, rules or services, to the extent known at the time of the
report, that the agency intends to adopt, amend or provide in the coming reporting
period that substantially and uniquely affect Indian tribes or tribal members; and
E. A summary of tribal collaboration activities the agency has engaged in under the
provisions of this Act during the prior biennium and any recommendations for
improving the effectiveness of this Act, including recommendations regarding other
agency actions for which it may be appropriate to require collaboration under this Act.
3. Reports by Indian tribes. Beginning January 10, 2023 and biennially by January
10th thereafter, an Indian tribe may file a report with the joint standing committee of the
Legislature having jurisdiction over judiciary matters and the Maine Indian Tribal-State
Commission that includes a summary of the collaboration between the Indian tribe and
agencies under this Act during the prior biennium and any recommendations for improving
the effectiveness of this Act, including recommendations regarding other agency actions
for which it may be appropriate to require collaboration under this Act.
§11056. Cause of action and right of review not conferred; savings clause
1. Cause of action and right of review not conferred. An agency's failure to comply
with the requirements of this Act does not:
A. Create a cause of action or a right of judicial review of any action by an agency;
B. Constitute grounds for a court to invalidate an agency rule under section 8058; or
C. Constitute grounds for a court to reverse or modify an agency action under section
11007, subsection 4, paragraph C or to direct an agency to engage in any further action
under section 11007, subsection 4, paragraph B.
2. Federal funding requirements. Nothing in this Act affects, modifies or replaces
any tribal collaboration or consultation requirement imposed on or assumed by an agency
as a condition of the acceptance of federal funding.
Sec. A-2. 30-A MRSA §2202, sub-§2, as enacted by PL 2009, c. 636, Pt. D, §2, is
amended to read:
2. Party. "Party" means a public agency or the following federally recognized Indian
tribes or their political subdivisions:
A. The Passamaquoddy Tribe; and
B. The Penobscot Nation.; and
C. The Houlton Band of Maliseet Indians.
PART B
Sec. B-1. Legislative findings and purpose. The Legislature finds and declares
that the changes to the State's tax laws that appear in Parts C to H of this Act will:
1. Improve the economic opportunities available to and welfare of the Penobscot
Nation, the Passamaquoddy Tribe and the Houlton Band of Maliseet Indians and their tribal
members;
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 2. Encourage economic development within the tribal lands of the Penobscot Nation,
the Passamaquoddy Tribe and the Houlton Band of Maliseet Indians, the benefits of which
will accrue not only to the tribes and their tribal members but also to surrounding
communities and the State; and
3. Clarify and simplify the application of the State's tax laws to the Penobscot Nation,
the Passamaquoddy Tribe and the Houlton Band of Maliseet Indians as well as to their
tribal lands and tribal members, in order to reduce the costs of tax compliance to the tribes
and their members and to reduce the cost to the State of administering its tax laws.
PART C
Sec. C-1. 36 MRSA §111, sub-§1-D is enacted to read:
1-D. Houlton Band of Maliseet Indians. "Houlton Band of Maliseet Indians" has
the same meaning as in Title 30, section 6203, subsection 2.
Sec. C-2. 36 MRSA §111, sub-§1-E is enacted to read:
1-E. Houlton Band Trust Land. "Houlton Band Trust Land" has the same meaning
as in the federal Houlton Band of Maliseet Indians Supplementary Claims Settlement Act
of 1986, Public Law 99-566, Section 2(2).
Sec. C-3. 36 MRSA §111, sub-§2-A is enacted to read:
2-A. Passamaquoddy Indian territory. "Passamaquoddy Indian territory" has the
same meaning as in Title 30, section 6203, subsection 6.
Sec. C-4. 36 MRSA §111, sub-§2-B is enacted to read:
2-B. Passamaquoddy Tribe. "Passamaquoddy Tribe" has the same meaning as in
Title 30, section 6203, subsection 7.
Sec. C-5. 36 MRSA §111, sub-§2-C is enacted to read:
2-C. Penobscot Indian territory. "Penobscot Indian territory" has the same meaning
as in Title 30, section 6203, subsection 9.
Sec. C-6. 36 MRSA §111, sub-§2-D is enacted to read:
2-D. Penobscot Nation. "Penobscot Nation" has the same meaning as in Title 30,
section 6203, subsection 10.
Sec. C-7. 36 MRSA §111, sub-§8 is enacted to read:
8. Tribal entity. "Tribal entity" means a business entity:
A. Wholly owned by the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe,
the Penobscot Nation, a tribal member or tribal members or some combination thereof.
For purposes of determining ownership of an entity, a married couple including at least
one tribal member is treated as one tribal member, regardless of which spouse owns
the entity; or
B. Where 75% of the ownership interests are held in aggregate by the Houlton Band
of Maliseet Indians, the Passamaquoddy Tribe or the Penobscot Nation and the entity
is controlled and managed by the Houlton Band of Maliseet Indians, the
Passamaquoddy Tribe or the Penobscot Nation, consistent with the requirements of 13
Code of Federal Regulations, Section 124.109(c)(4); as determined by the federal
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 Small Business Administration or the assessor as consistent with 13 Code of Federal
Regulations, Section 124.109(c)(4)(i)(A); or as determined by the federal Small
Business Administration as consistent with 13 Code of Federal Regulations, Section
124.109(c)(4)(i)(B).
A tribal entity must be a separate and distinct legal entity organized or chartered by federal,
state or tribal authorities.
Sec. C-8. 36 MRSA §111, sub-§9 is enacted to read:
9. Tribal land. "Tribal land" means land within the Houlton Band Trust Land, the
Passamaquoddy Indian territory or the Penobscot Indian territory.
Sec. C-9. 36 MRSA §111, sub-§10 is enacted to read:
10. Tribal member. "Tribal member" means an enrolled member of the Houlton
Band of Maliseet Indians, the Passamaquoddy Tribe or the Penobscot Nation.
Sec. C-10. 36 MRSA §194-E is enacted to read:
§194-E. Tribes deemed as acting in a governmental capacity
For purposes of Parts 3 and 8 of this Title, the Passamaquoddy Tribe and the Penobscot
Nation are deemed to act in a governmental capacity as described in Title 30, section 6208,
subsection 3 and not in a business capacity. For purposes of Parts 3 and 8 of this Title, the
Houlton Band of Maliseet Indians is deemed to act in a governmental capacity and not in
a business capacity.
PART D
Sec. D-1. 36 MRSA §1760, sub-§112 is enacted to read:
112. Tribes. Sales to the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe
or the Penobscot Nation. For purposes of section 1760-C, sales to the tribes identified in
this subsection for any purpose are exempt.
Sec. D-2. 36 MRSA §1760, sub-§113 is enacted to read:
113. Tribal members. Sales to a tribal member that are sales sourced to tribal land,
except that, if the property or service is used by the purchaser, including any lessee,
primarily outside of tribal land, the purchaser is liable for use tax based on the original sale
price, unless otherwise exempt under this Part.
For purposes of this subsection:
A. "Primarily" means more than 50% of that period of time that begins on the date on
which the property or service is first placed in service by the purchaser and ends one
year from that date or at the time that the property or service is sold, scrapped,
destroyed or otherwise permanently removed from service, whichever occurs first; and
B. "Sales sourced to tribal land" means sales sourced pursuant to section 1819 to a
location on tribal land.
Sec. D-3. 36 MRSA §1760, sub-§114 is enacted to read:
114. Tribal entities. Sales to a tribal entity that are sales sourced to tribal land, except
that, if the property or service is used by the purchaser, including any lessee, primarily
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outside of tribal land, the purchaser is liable for use tax based on the original sale price,
unless otherwise exempt under this Part.
For purposes of this subsection:
A. "Primarily" means more than 50% of that period of time that begins on the date on
which the property or service is first placed in service by the purchaser and ends one
year from that date or at the time that the property or service is sold, scrapped,
destroyed or otherwise permanently removed from service, whichever occurs first; and
B. "Sales sourced to tribal land" means sales sourced pursuant to section 1819 to a
location on tribal land.
Sec. D-4. Application. This Part applies to sales occurring on or after January 1,
2023.
PART E
Sec. E-1. 36 MRSA §191, sub-§2, ¶QQQ is enacted to read:
QQQ. The disclosure of information to the Houlton Band of Maliseet Indians, the
Passamaquoddy Tribe or the Penobscot Nation necessary for the administration of sales
tax revenue transfers under section 1815.
Sec. E-2. 36 MRSA §1815, as enacted by PL 1999, c. 477, §1, is amended to read:
§1815. Tax from sales occurring on Passamaquoddy reservation tribal land
1. Passamaquoddy Sales Tax Fund. The Passamaquoddy Sales Tax Fund, referred
to in this section as "the "Passamaquoddy fund," is established as a dedicated account to be
administered by the Treasurer of State for the purpose of returning sales tax revenue to the
Passamaquoddy Tribe pursuant to subsections 2 and 3.
1-A. Penobscot Sales Tax Fund. The Penobscot Sales Tax Fund, referred to in this
section as "the Penobscot fund," is established as a dedicated account to be administered
by the Treasurer of State for the purpose of returning sales tax revenue to the Penobscot
Nation pursuant to subsections 2 and 3.
1-B. Maliseet Sales Tax Fund. The Maliseet Sales Tax Fund, referred to in this
section as "the Maliseet fund," is established as a dedicated account to be administered by
the Treasurer of State for the purpose of returning sales tax revenue to the Houlton Band
of Maliseet Indians pursuant to subsections 2 and 3.
2. Monthly transfer. By the 20th day of each month, the assessor shall notify the
State Controller and the Treasurer of State of the amount of revenue attributable to the tax
collected under this Part chapter in the previous month on sales occurring on the
Passamaquoddy reservation at either Pleasant Point or Indian Township Indian territory,
the Penobscot Indian territory and the Houlton Band Trust Land, respectively, reduced by
the transfer to the Local Government Fund required by Title