An Act To Make Changes to the Pine Tree Development Zones
Maine Legislature, Session 122, LD 0449
Committee: Business, Research and Economic Development
Sponsors: MITCHELL, ROBINSON, MILLS, BEAUDETTE, CROSBY
Amends: 30-A MRSA §5250-J

Legislative Document 
No. 449 
S.P.147 
In Senate, January 27,2005 
An Act To Make Changes to the Pine Tree Development Zones 
Submitted by the Department of Economic and Community Development pursuant to Joint 
Rule 204. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator MITCHELL of Kennebec. 
Cosponsored by Representative ROBINSON of Raymond and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senator: MILLS of Somerset, Representatives: BEAUDETTE of Biddeford, CROSBY of 
Topsham. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §S2S0-I, sub-§§3 to S, as enacted by PL 2003, 
c. 688, Pt. D, §2, are amended to read: 
3. 
Average 
employment 
during 
base 
period. 
"Average 
employment during the base period" for a business means the total 
number of EjliaJ:ifiea employees of that business e:a---eaGb---&f--e 
ee:aseeli~ive-~~~-~-i:a-ea€h-~--~&&-J-~~-~r&-i:a 
0 
~:ae - ha-se- -pe-r-i~ -as--e-ae.se-:e- - By - -t.he- -hu&.i-ne-s-s--d-i-v-ided- -b-y - J: g and its 
affiliated businesses as of March 31st, June 30th, September 30th 
and December 31st of the base period, divided by 12. 
4. 
Base level of employment. 
"Base level of employment" 
means the greater of either the total employment in the State of 
a business and its affiliated businesses as of 
~:ae March 31st, 
June 30th, September 30th and December 31st of the calendar year 
immediately preceding 
i~s--£tH'·tA . .,f4€a~4eR--a&--a--EjQalifiea the year 
of the business's application to become a certified Pine Tree 
Development Zone business divided by 4 or its average employment 
during the base period. 
5. 
Base period. 
"Base period" means the 3 calendar years 
prior to the year in which a business is applies to be certified 
as a qualified Pine Tree Development Zone business. 
Sec. 2. 30-A MRSA §S2S0-I, sub-§14, "C and D, as enacted by PL 
2003, c. 688, Pt. D, §2, are amended to read: 
read: 
C. The sales tax exemptions under Title 36, section 1760, 
subsections 86 and 87; aBa 
D. 
The Pine Tree Development Zone tax credits provided by 
Title 36, sections 2529 and 5219-WTL 
Sec. 3. 30-A MRSA §S2S0-I, sub-§14, "E and F are enacted to 
E. 
Discounted 
rates 
approved 
by 
the 
Public 
Utilities 
Commission, if applicable, and offered by transmission and 
distribution utilities 
as 
authorized 
under 
Title 
35-A, 
section 3210-B, subsection 1; and 
F. 
Line extensions and conservation programs approved or 
authorized by the Public Utilities Commission under Title 
35-A, section 3210-B, subsections 2 and 3. 
Sec. 4. 30-A MRSA §S2S0-I, sub-§17, as enacted by PL 2003, c. 
688, Pt. D, §2, is amended to read: 
17. 
Qualified 
Pine 
Tree 
Development 
Zone 
business. 
"Qualified Pine Tree Development 
Zone business" or "qualified 
business" means any for-profit business in this State engaged in 
financial 
services, 
manufacturing 
or 
a 
targeted 
technology 
business that adds at least one qualified Pine Tree Development 
Zone 
eRl~±eyees employee above its base level of employment in 
this State and that meets the following criteria: 
A. 
It demonstrates that the establishment or expansion of 
operations within the Pine Tree Development Zone would not 
occur within the State absent the availability of the Pine 
Tree 
Development 
Zone 
benefits. 
The 
department 
shall 
iBves~i~a~e determine 
whether 
the 
business 
has 
met 
the 
requirements 
of 
this paragraph 
aBQ--~FeviQe--aB--aQviseFY 
e~iBieB-~~-~-EHee~~ive-~~~~-~~-~Re-~~~~-ReveB~e 
SeFviees-~~-~Re-~~~-~~-AQRliRi6~~a~ive-~-~iBaBeia± 
SeFvieesT-wRe-SRa±±-Rlake-~Re-€iBa±-Qe~eFRliBa~ieB; and 
B. It has received a certificate as a qualified business 
pursuant to section 5250-0. 
Sec. 5. 30-A MRSA §5250-J, sub-§l, as enacted by PL 2003, c. 
688, Pt. D, §2, is amended to read: 
1. 
Creation. 
One or more units of local government, or an 
organization representing one or more units of local government, 
may apply to the commissioner for the designation of a Pine Tree 
Development Zone within the boundaries of the unit or units of 
local government in accordance with the requirements of this 
subchapter. 
County 
governments 
may 
apply 
on 
behalf 
of 
unorganized territories. Groups of units of local government may 
apply 
for 
multijurisdictional 
or 
joint 
projects. 
Multijurisdictional applications require designation of one unit 
of local government as the lead applicant and consent for that 
designation 
by 
each participating unit of 
local 
government. 
Counties may also apply on behalf of a consortium of units of 
local government. The designation of a Pine Tree Develo~ment Zone 
may not conflict with the provisions of a municipal or other unit 
of local government charter. 
Zones that meet the requirements of 
subsection 2 are authorized for designation as follows: 
A. 
Aroostook County, 
including up to 100 acres of land 
reserved for the Aroostook Band of Micmacs and the Houlton 
Band of Maliseet Indians; 
B. 
The Androscoggin Valley region, including the Lewiston 
Enterprise 
Community 
Zone 
as 
designated 
by 
the 
federal 
Agriculture, 
Rural 
Development, 
Food 
and 
Drug 
Administration, 
and Related Agencies, 
Appropriations Act, 
Public Law 105-277 (1999); 
C. 
The Penobscot Valley region, including up to 500 acres 
of land reserved for the Penobscot Nation; and 
D. 
Washington County and the Downeast region, including up 
to 500 acres of land reserved for the Passamaquoddy Tribe. 
No more than one zone may be established in each of the areas 
specified in paragraphs A to D, except that the commissioner may 
designate up to 4 additional zones and may designate additional 
acres in qualifying areas in order to respond to the needs of a 
particular development project through the process established in 
section 5250-L. 
Sec. 6. 30-A MRSA §S2S0-J, sub-§3, "A and D, as enacted by PL 
2003, c. 688, Pt. D, §2, are amended to read: 
A. 
The total area of a 
zoneT--i-nc-l-ud:i~-a-l-l--BeB€eB~i'3\:le\:l6 
~aFee16T may not exceed 5,000 developable acres, which need 
not be contiguous; 
D. 
Pine Tree Development Zone benefits may not be provided 
based upon any property, employees or positions transferred 
by the business or affiliated businesses into a Pine Tree 
Development Zone from a location elsewhere in the State; 
Sec. 7. 30-A MRSA §S2S0-J, sub-§3, tE, as enacted by PL 2003, 
c. 688, Pt. D, §2, is repealed. 
Sec. 8. 30-A MRSA §S2S0-K, sub-§§3 and 5, as enacted by PL 
2003, c. 688, Pt. D, §2, are amended to read: 
3. 
Effective date. 
The 
establishment 
of 
a 
Pine 
Tree 
Development Zone is effective upon preliminary designation by the 
commissioner. 
5. 
Amendments. 
~ae-Qe£4~R~~4~~-~~--~~r-»~&e~-aBe 
eeB€i'3\:lFa~ieB-~-~~-~a~ee±s-4R-~-~i»&-~£ee-~~~-eF 
~ae--t,e.F-Hl6 All aspects of a 
development plan as described in 
section 
5250-J, 
subsection 
4, 
including 
the 
designation 
of 
additional acreage, may be amended by 
aB-~.f.f4£Hla~ive a majority 
vote of all the participating units of local government 
as 
evidenced by either a majority vote of the municipal officers or 
legislative body of each unit of local government or their 
representatives on the zone' s governing body. 
A participating 
unit of local government may 
amend, 
or undesignate entirely, 
previously 
designated 
acreage 
within its 
jurisdiction 
by 
a 
majority vote of its municipal officers or legislative body, as 
long as the amendment does not increase its total acres. 
In no 
case mayan amendment adversely affect the Pine Tree Development 
Zone benefits of a qualified business. 
An 
amendment may 
result in the zone' s being out of compliance with any of 
requirements in section 5250-J. 
not 
the 
Sec. 9. 30-A MRSA §S2S0-L, as enacted by PL 2003, c. 688, Pte 
D, §2, is amended to read: 
§5250-L. Selection criteria 
1. 
Review and selection of zones. 
The commissioner shall 
review applications and select zones for designation based upon 
the following criteria: 
A. 
Severity of economic distress within the region affected 
by the Pine Tree Development Zone; 
B. 
Viability of a development plan described under section 
5250-J, subsection 4, paragraph E; 
C. 
Commitment of local and regional financial resources; 
D. 
Partnerships with public and private organizations; and 
E. 
Impact 
on 
surrounding 
regions 
of 
the 
Pine 
Tree 
Development Zone. 
2. 
Review 
and 
selection 
of 
department 
acres. 
The 
commissioner shall review information and select acres, referred 
to in this subsection as 
"department acres," for designation 
based upon the following criteria: 
A. 
Severity 
of 
economic 
distress 
within 
the 
affected 
community or region; 
B. 
Impact 
of 
the 
proposed 
development 
project 
on 
the 
regional economy; and 
C. 
Cooperation with regional councils of governments as 
described in chapter 119 and participating uni ts of local 
governments. 
Department 
acres 
may 
be 
added 
to 
an 
existing 
Pine 
Tree 
Development Zone and must conform generally to the requirements 
set forth in section 5250-J, subsection 4. 
SUMMARY 
This bill affects the Pine Tree Development Zone laws by: 
1. 
Clarifying the base period prior to a business applying 
for Pine Tree Development Zone status; 
2. 
Adding the utility benefits enacted by Public Law 2003, 
chapter 610; 
3. 
Removing 
the 
authority 
of 
the 
Department 
of 
Administrative and Financial Services, Bureau of Revenue Services 
to review a business certification statement; 
4. 
Clarifying the type of land included in the 5, ODD-acre 
cap; 
5. 
Allowing 
the 
Department 
of 
Economic 
and 
Community 
Development to add acreage to a zone in order to meet specific 
project needs; 
6. 
Removing the limit on the number of parcels allowed 
within a zone; 
7. 
Simplifying the amendment process for a zone; and 
8. 
Setting criteria for the department to determine when to 
add acreage to a Pine Tree Development Zone.