An Act to Improve Standards for Public Assistance to Employers in the State LR 1652(02)
Maine Legislature, Session 121, LD 0561
Committee Amendment CA_A_H820 (House)
Amends: 5 MRSA §13070-P, 36 MRSA §6652

COMMITTEE AMENDMENT ·A" 
Act To Improve Standards for 
the State" 
to H.P. 424, L.D. 561, Bill, "An 
Public Assistance to Employers in 
Amend 
the bill by striking out all of 
section 
and 
inserting in its place the following: 
. Sec. 1. 5 MRSA §13070-P is enacted to read: 
§13070-P. 
Wage. benefit and return-to-emP1o~nt standards for 
economic develosment incentive recipients 
Each 
recipient 
of 
an 
economic 
development 
incentive 
described in section 13070-J, 
subsection 1, paragraph D must 
comply with the following standards. 
1. 
General. 
For 
an 
economic 
development 
incentive 
described 
in 
section 
13070-J, 
subsection 
1, 
paragraph 
D. 
subparagraph (1), (3), (5) or (6). the recipient must: 
A. 
Certify upon application for or upon renewal of benefits 
under the economic development incentive that every employee 
of 
the 
recipient 
receives 
a 
living wage 
and that the 
recipient is in compliance with all federal. state and local 
laws. 
For purposes of this subsection, "living wage" means 
a wage, calculated on a calendar-year basis, that is at 
least sufficient to meet the annual basic needs budget as 
most recently published by the Executive Department, State 
Planning Office; 
B. 
Pay a living wage to every employee of the recipient. 
This paragraph does not apply if the economic development 
incentive received is pursuant to Title 36. chapter 9i5 and 
COMMITTEE AMENDMENT 
~ .• " 
COMMITTEE AMENDMENT 
to H.P. 424, L.D. 561 
the recipient does not gualify for more than $10,000 in a 
year from that economic development incentive: 
C. 
Demonstrate 
that 
every 
employee 
of 
the 
recipient 
receives a living wage: is covered by a retirement program 
subject to the Employee Retirement Income Security Act of 
1974, 
United States Code, 
Sections 1001 to 1461, 
as 
amended: 
and receives group health insurance that is at 
least as comprehensive as, and that provides similar limits 
on coinsurance, 
deductibles, 
copayments 
and out-of-pocket 
maximums as, Dir igo Health Insurance provided under Title 
24-A, 
section 6910 
and for 
which the recipient of the 
economic development incentive pays at least 50% of the 
premiums: 
D. 
Following the termination of 
any strike or 
lockout 
involving its employees, return to their former jobs all 
employees who wish to be returned to their former jobs: and 
E. 
Comply with all federal, state and local laws. 
2. 
Certain employment 
and training incentives. 
For 
an 
economic 
development 
incentive 
described in section 13070-J, 
subsection 1, paragraph D, 
subparagraph (2), 
(4) or 
(7), the 
recipient must: 
A. 
Provide to all employees the same wages and benefits 
that the recipient provides to employees whose wages and 
benefits gualify the recipient for the economic development 
incentive: and 
B. 
Following 
the 
termination of 
any strike or 
lockout 
involving its employees, 
return to their former jobs all 
employees who wish to be returned to their former jobs. 
3. 
Rules: violations. 
An agency administering an economic 
development incentive may adopt routine technical rules pursuant 
to chapter 375, subchapter 2-A to implement the provisions of 
this section. 
A. 
An 
agency 
implementing 
the 
economic 
development 
incentive shall suspend or terminate benefits of a recipient 
if that recipient fails to file a certificate as reguired by 
subsection 
or 
if 
the 
agency 
determines 
that 
the 
certificate is false or inaccurate. 
B. 
A recipient that violates the living wage standard under 
this section shall reimburse the State for any benefits 
received during the period of noncompliance. 
A recipient 
that willfully violates a provision of this section shall 
COMMITTEE AMENDMENT 
~.~\i, 
COMMITTEE AMENDMENT A .. to H.P. 424, L.D. 561 
reimburse the State for any benefits received during the 
benefit period in which 
the violation occurred plus 
a 
penalty equal to the amount of any benefits received during 
that 
benefit period 
in 
addition 
to 
any 
other 
penalty 
required by law. 
4. 
Relocation to another municipality. 
An employer that 
relocates 
from 
one 
municipality 
in 
the 
State 
to 
another 
municipality in the State within 100 miles does not qualify for 
municipal 
tax 
increment 
financing 
under 
section 
13070-J, 
subsection 1. paragraph 0, subparagraph (3) absent a showing by 
clear and convincing evidence that the relocation involves 
a 
significant expansion that could not have been made in the former 
municipality. 
Sec. 2. 36 MRSA §6652, sub-§4 is enacted to read: 
4. 
Bankruptcy. 
A person who is a debtor in a bankruptcy 
proceeding pending in United States Bankruptcy Court at the time 
reimbursement would be paid is not eligible for reimbursement 
under this chapter. 
Sec. 3. Application. 
The provisions of this Act that apply to 
municipal 
tax 
increment 
financing 
under 
the 
Maine 
Revised 
Statutes, Title 3D-A, chapter 206 apply to development districts 
designated by a municipality on or after the effective date of 
this Act. 
The provisions of this Act that apply to employment 
tax increment financing under Title 36, chapter 917 apply to 
employment tax increment financing programs approved under Title 
36, section 6755 on or after the effective date of this Act. 
Sec. 
4. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FINAJICIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 
0002 
following 
Initiative: 
Provides funds for one Revenue Agent position and 
related costs to audit the affected businesses. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
ADMINISTRATIVE AND FINAJICIAL SERVICES, 
DEPARTMENT OF 
2003-04 
(0.000) 
$0 
o 
$0 
2004-05 
(1.000) 
$55,310 
11,460 
$66,770 
COMMITTEE AMENDMENT 
\\.~,. 
COMMITTEE AMENDMENT ,A .. to H.P. 424, L.D. 561 
DEPARTMENT M'XALS 
2003-04 
2004-05 
GENERAL FUlID 
$0 
$66,770 
DEPARTMENT 'l'OTAL -
ALL FUlIDS 
$0 
$66,770 
ECON<»O:C AIm CC»8IDHITY DEVELOPMENT, DEPARTMENT OF 
Administration -
Economic and Community Development 
0069 
Initiative: 
Provides funds for one Development Project Officer 
position and related All Other costs associated with enforcing 
the certification of the wage and benefit package requirements 
for each employee in a new TIF or ETIF. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
ECONOMIC AIm COMMtJHITY DEVELOPMENT, 
DEPARTMENT OF 
DEPARTMENT M'XALS 
GENERAL FUIm 
DEPARTMENT M'XAL -
ALL FUImS 
SECTION M'XALS 
GENERAL FUIm 
SECTION 'l'OTAL -
ALL FUImS 
SUMMARY 
2003-04 
(0.000) 
$0 
a 
$0 
2003-04 
$0 
$0 
2003-04 
$0 
$0 
2004-05 
(1.000) 
$52,599 
15,000 
$67,599 
2004-05 
$67,599 
$67,599 
2004-05 
$134,369 
$134,369' 
This 
amendment 
moves 
the 
proposed 
wage, 
benefit 
and 
return-to-employment language to a more appropriate location in 
the Maine Revised Statutes. 
The amendment changes the definition 
of "living wage" to mean a wage that would provide sufficient 
funds to meet the annual basic needs budget developed pursuant to 
law by the Executive Department, State Planning Office. 
It also 
requires that the group health insurance required to be provided 
by a business receiving an economic development incentive must be 
at 
least 
as 
comprehensive 
and 
beneficial 
as 
Dirigo 
Health 
Insurance. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. #,. to H.P. 424, L.D. 561 
The amendment adds a requirement that businesses must allow 
employees to return to their jobs following a strike or lockout. 
The amendment adds a provision to the law governing the 
Business 
Equipment 
Tax 
Reimbursement 
program 
to 
deny 
reimbursement to a company that is in bankruptcy. 
The 
amendment clarifies that the provisions of the bill 
relating to tax increment financing districts and employment tax 
increment financing districts apply only to districts formed 
after the effective date of the bill. 
The amendment adds an appropriations and allocations section. 
FISCAL 'iOn: REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 03126/04 .;:fbJ?ac:.. 
12lst Maine Legislature 
Office of Fiscal and Program Review 
LD561 
An Act to Improve Standards for Public Assistance to Employers in the 
State 
LR 1652(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
$0 
2004-05 
$l34,369 
$l34,369 
Projections 
2005-06 
$128,466 
$128,466 
Projections 
2006-07 
$l35,017 
$l35,017 
This bill includes a General Fund appropriation of $67,599 in fiscal year 2004-05 for the Administration - Economic 
and Community Development program within the Department of Economic and Conununity Development for one 
Development Project Officer position and the related All Other costs associated with enforcing the certification 
requirements of this bill. This fiscal note assumes that it is the intent of this legislation that the certification 
requirements be actively enforced. If that is not the intent of this measure, then the Development Project Officer 
position would not be required and the Department of Economic and Conununity Development would be able to 
absorb the costs associated with rulemaking utilizing existing budgeted resources. 
This legislation will require agencies to grant economic development incentives only to those employers that meet 
certain wage and benefit standards. This requirement may result in fewer businesses being eligible to receive funds 
from the Governor's Training Initiative program within the Department of Labor. The number of businesses impacted 
can not be determined at this time. 
This bill also includes a General Fund appropriation of $66,770 in fiscal year 2004-05 for Maine Revenue Services for 
one Revenue Agent position and related costs to audit the affected businesses. The fiscal impact to the Business 
Equipment Tax Reimbursement Program as a result of the limitation concerning bankruptcy can not be determined at 
this time. 
LR 1652(2) - Fi<:<""j Nntp  P"o,. 1 ,..f'1