An Act To Implement the Recommendations of the Office of Program Evaluation and Gov(~mment Accountability Regarding Economic Development in Maine
Maine Legislature, Session 123, LD 1163
Committee Amendment CA_A_S278 (Senate)
Amends: 5 MRSA §13056-A, 5 MRSA §13056-B, 5 MRSA §13056-C, 5 MRSA §13070

COMMITTEE AMENDMENT 'A " to S.P. 411, L.D. 1163, Bill, "An Act To 
Implement the Recommendations of the Office of Program Evaluation and Gov(~mment 
Accountability Regarding Economic Development in Maine" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §13056-A is enacted to read: 
§13056-A. Comprehensive evaluation of state investments in economic development 
By November 1, 2007, the commissioner shall develop and submit to the Governor 
and the Legislature a plan for the comprehensive evaluation of state investments in 
economic development. Beginning February 1, 2009, the commissioner shall submit an 
annual comprehensive evaluation of state investments in economic development, not to 
include programs evaluated pursuant to section 13107 or those independent evaluations 
required by federal programs, to the Governor and the Legislature. The evaluation must: 
1. 
Outcome measures. 
Establish and report on outcome measures considered 
appropriate by public and private practitioners inside and outside of this State in the field 
of economic development; 
2. Independent reviewers, 
Use independent reviewers to assess the effect of 
economic development activities on the competitiveness of industry sectors in this State; 
and 
3. Recommendations. Include recommendations to the Legislature on existing and 
proposed state-supported economic development programs and activities to affect 
economic development in this State. 
Sec. 2. 5 MRSA §13056-B is enacted to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ''A "to S.P. 411, L.D. 1163 
§13056-B. Reporting requirements of recipients of economic development funding 
To assist the department in preparing the comprehensive economic development 
evaluation pursuant to section 13056-A, a recipient of state economic development 
funding, including general obligation bond proceeds for economic development, shall, in 
addition to any other reporting requirements required by law, coHect, maintain and 
provide data as requested by the department. 
Sec.3. 5 MRSA §13056-C is enacted to read: 
§13056-C. Maine Economic Development Evaluation Fund 
1. Fund established. The Maine Economic Development Evaluation Fund, referred 
to in this section as "the fund," is established as a non lapsing Other Special Revenue 
Funds account administered by the department for the purposes of funding the 
comprehensive economic development evaluation required pursuant to section 13056-A. 
2. Fund sources. The fund receives money deposited by the Treasurer of State 
pursuant to this section and any other gift, grant or other source of revenue deposited for 
funding the comprehensive economic development evaluation required pursuant to 
section 13056-A. 
3. Payments to fund. Notwithstanding section 1585 or any other provision of law, 
the department shall assess agencies or private entities that receive General Fund 
appropriations or general obligation bonds for economic development an amount for 
contribution to the fund that is not to exceed 0.08% of General Fund appropriations 
received by or general obligation bonds issued to an agency or entity for economic 
development efforts. Private entities that receive funds from general obligation bonds for 
economic development efforts shall pay to the Treasurer of State in the fiscal year in 
which the general obligation bond was issued an assessment amount determined by the 
department that is not to exceed 0.08% of the proceeds from the bond issue in any fiscal 
year, which payment must be made from available resources other than bond proceeds. 
Only those programs that receive $250,000 or more in economic development 
appropriations in any fiscal year or those entities that receive funds from a general 
obligation bond issue of $250,000 or more for economic development efforts in any fiscal 
year, as identified and certified by the department and the Office of Fiscal and Program 
Review, may be assessed pursuant to this subsection. The department shall provide to 
each agency or private entity an annual budget for the fund and a detailed account of each 
institution's required assessment. Total payments made pursuant to this section may not 
exceed $150,000 in any fiscal year. 
Sec. 4. 5 MRSA §13070-0, sub-§l, ~, as enacted by PL 1999, c. 768, §5, is 
amended to read: 
F. 
Provide incentives for a business to meet objectives of the program and, when 
incentives are provided in anticipation of contractual performance, penalties for a 
business that does not meet the objectives of the program; aad 
Sec. 5. 5 MRSA §13070-0, sub-§l, ~G, as enacted by PL 1999, c. 768, §5, is 
amended to read: 
G. 
Provide a cost analysis of the program based on at least a 10-year period.; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A " to S.P. 411, L.D. 1163 
Sec. 6. 5 MRSA §13070-0, sub-§l, ~ 
is enacted to read: 
H. Have a clearly defined public purpose; 
Sec. 7. 5 MRSA §13070-0, sub-§l, ~ is enacted to read: 
I. In addition to standard data, report perfonnance data specific to its goals and 
objectives annually to the entity that is assigned to coordinate the State's portfolio of 
economic development programs; and 
Sec. 8. 5 MRSA §13070-0, sub-§l, ,J is enacted to read: 
J. Require that a business that receives benefits under the program have a business 
statement that includes the requirements of section 13070-J, subsection 2. 
Sec. 9. Economic development incentives; statutory duties of Department 
of Economic and Community Development. 
By November 1, 2007, the 
Department of Economic and Community Development shall develop a proposal to 
amend the statutory definition of "economic development incentive" to provide a 
comprehensive guide for detennining the criteria by which economic development 
incentives can be evaluated and incorporate the new definition into the statutory roles and 
responsibilities of the department. The department also shall submit a proposal to define 
the phrase "all economic assistance programs" in the Maine Revised Statutes, Title 5, 
section 13070-J, subsection 3, paragraph B. The Joint Standing Committee on Business, 
Research and Economic Development is authorized to submit legislation regarding the 
roles and responsibilities of the department to the Second Regular Session of the 123rd 
Legislature. 
Sec. 10. Proposals for expanding the role of Department of Economic and 
Community Development. 
Beginning in October 2007, the Joint Standing 
Committee on Business, Research and Economic Development shall request proposals 
from the Maine Development Foundation and other nongovernmental entities that could 
potentially fulfill the role of the State's economic development portfolio coordinator and 
compare these proposals with any similar proposals submitted by the Department of 
Economic and Community Development. The joint standing committee is authorized to 
submit legislation on the creation of a state economic development portfolio coordinator 
to the Second Regular Session of the 123rd Legislature. 
Sec. 11. Performance measures; incentives. By November 1,2007, the Joint 
Standing Committee on Business, Research and Economic Development shall consider 
statutory changes that will increase business compliance, through meaningful incentives 
and penalties, with the current reporting requirements for beneficiaries of state economic 
development incentives, as set out in the Maine Revised Statutes, Title 5, section 
13070-J, subsection 3. The joint standing committee shall also consider the establishment 
of a new legislative process for review of all proposed legislation that involves economic 
development programs that would provide the joint standing committee and the 
department with a clearly defined review process for these proposals. The joint standing 
committee is authorized to submit legislation related to the subject matter of this section 
to the Second Regular Session of the 123rd Legislature. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A " to S.P. 411, L.D. 1163 
Sec. 12. Portfolio of existing state economic development programs. The 
Commissioner of Economic and Community Development shall work with the Maine 
Development Foundation to prepare a portfolio of all existing economic development 
activities that fit within the State's criteria for economic development. For each program 
included, the portfolio must include the statutory authority for the activity or program, the 
public purpose as described in statute, the governing agency, the annual General Fund 
appropriations, the total budget, all intended recipients, a summary of program activities 
and any existing program evaluation. The commissioner shall submit the portfolio of 
economic development programs to the Joint Standing Committee on Business, Research 
and Economic Development by December 15,2007. 
Sec. 13. Appropriations and allocations. The following appropriations and 
allocations are made. 
DEVELOPMENT FOUNDATION, MAINE 
Development Foundation 0198 
Initiative: Provides one-time funds in fiscal year 2007-08 for the Maine Development 
Foundation to prepare maps as part of developing a portfolio of all existing economic 
development activities that fit within the State's criteria for economic development. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
DEVELOPMENT FOUNDATION, MAINE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL - ALL FUNDS 
2007-08 
$50,000 
$50,000 
2007-08 
$50,000 
$50,000 
2008-09 
$0 
$0 
2008-09 
$0 
$0 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Maine Economic Development Evaluation Fund N030 
Initiative: Allocates funds for a comprehensive economic development evaluation. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2007-08 
$150,000 
$150,000 
COMMITTEE AMENDMENT 
2008-09 
$150,000 
$150,000 
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COMMITTEE AMENDMENT '/4 " to S.P. 411, L.D. 1 ]63 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
SUMMARY 
2007-08 
$150,000 
$150,000 
2007-08 
$50,000 
$150,000 
$200,000 
2008-09 
$150,000 
$150,000 
2008-09 
$0 
$150,000 
$150,000 
This amendment replaces the bill and implements the recommendations of the Office 
of Program Evaluation and Government Accountability's report to the Government 
Oversight Committee to increase the State's evaluation and performance measures for 
economic development programs in Maine. The amendment also adds an appropriations 
and allocations section to the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 06111107 
;:!;?CZc:.. 
LD 1163 
LR2090(02) 
An Act To Implement the Recommendations ofthe Office of Program Evaluation and Government 
Accountability Regarding Economic Development in Maine 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Business, Research and Economic Development 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Legislative Cost/Study 
Fiscal Note Required: Yes 
Fiscal Note 
Legislative Cost/Study 
2007-08 
$50,000 
$50,000 
$150,000 
$150,000 
2008-09 
$0 
$0 
$150,000 
$150,000 
Projections 
2009-10 
$0 
$0 
$150,000 
$150,000 
Projections 
2010-11 
$0 
$150,000 
$150,000 
The general operating expenses of the Joint Standing Committee on Business, Research and Economic Development 
to fulfill certain responsibilities are projected to be $6,500 in fiscal year 2007-08. The Legislature'S proposed budget 
includes $30,000 in fiscal year 2007-08 for legislative studies. Whether the amount is sufficient to fund all studies 
will depend on the number of studies authorized by the Legislative Council and the Legislature. 
Fiscal Detail and Notes 
This bill includes a one-time General Fund appropriation of $50,000 in fiscal year 2007-08 for the Maine 
Development Foundation to compile and print a map of all existing economic development activities that fit within the 
State's criteria for economic development. 
This bill also includes ongoing Other Special Revenue Funds allocations of $150,000 per year beginning in fiscal yl 
2007-08 for the Maine Economic Development Evaluation Fund established within the Department of Economic and 
Community Development to support the costs of an annual evaluation of state investments in economic development. 
LR2090(02) - Fiscal Note - Page 1 of 2 
The source of funding for the Evaluation Fund is an annual assessment of up to 0.08% to agencies who receive 
$250,000 or more in General Fund appropriations in any fiscal year or entities who receive a general obligation bond 
issue of $250,000 in any given fiscal year for economic development efforts. Total payments are capped at $150,000 
per year. This annual assessment will reduce the amount of funding for economic development to those agencies and 
entities assessed each year. The impact to the individual agencies or entities can not be detelmined at this time. 
Additional costs to the Department of Economic and Community Development associated with developing the 
required proposal and portfolio can be absorbed within existing budgeted resources. 
LR2090(02) - Fiscal Note - Page 2 of 2