An Act To Implement the Recommendations of the Office of Program Evaluation and Government Accountability Regarding Economic Development in Maine March 7, 2007
Maine Legislature, Session 123, LD 1163
Committee: Business, Research and Economic Development
Sponsors: ROSEN, LANSLEY, SCHNEIDER, AUSTIN, BEAUDETTE, PRESCOTT, RECTOR
Amends: 5 MRSA §13058, 5 MRSA §13070

Legislative Document 
No. 1163 
S.P.411 
An Act To Implement the Recommendations of the Office of 
Program Evaluation and Government Accountability Regarding 
Economic Development in Maine 
March 7, 2007 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator ROSEN of Hancock. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representatives: LANSLEY of Sabattus, McKANE of Newcastle and 
Senator: SCHNEIDER of Penobscot, Representatives: AUSTIN of Gray, BEAUDETTE of 
Biddeford, PRESCOTT of Topsham, RECTOR of Thomaston. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §13058, sub-§5, as amended by PL 1999, c. 776, §§4 and 5, is 
further amended to read: 
5. Review of program; report to Governor and Legislature. The commissioner 
shall review and evaluate the programs and functions of the department and the operation 
of the economic delivery system. The Maine Small Business Commission, as established 
in section 13032, shall conduct the evaluation and review required by this section with 
respect to small business programs. 
The commissioner shall report in writing the 
commissioner's findings and recommendations with respect to the issues described in this 
subsection to the Governor and to the Legislature no later than February 1 st of each first 
regular session of the Legislature. 
The commissioner shall conduct the review and 
evaluation with respect to the following: 
A. 
The purpose of these programs and the degree to which the purpose is being 
met; 
B. 
The degree of significance of the purpose of the programs and functions of the 
department; 
C. 
The extent of the coordination of programs and services as required in 
subsection 4; 
D. 
The needs, problems and opportunities that are not being met by the programs 
and services of the department; 
E. 
The types of programs and services necessary to meet the needs, problems and 
opportunities as set out in paragraph D; 
F. 
The problems and successes in the economic delivery system; 
G. 
The state of small business in this State, including economic data, the 
effectiveness of state programs to aid small business, problems of small business that 
may be affected by state policies and such other information on small business as 
desired by the commissioner; 
H. 
Within available resources, the extent of business growth and change, including 
business expansions, new businesses and business closings; 
I. 
Within available resources, the status of investments in business in the State; and 
J. 
The extent to which the purposes of the Maine Downtown Center are being met. 
Sec. 2. 5 MRSA §13070-0, sub-§l, V, 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 ofthe program; aOO 
Sec. 3. 5 MRSA §13070-0, suh-§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 1 O-year period~~ 
Sec. 4. 5 MRSA §13070-0, sub-§l, ~ 
is enacted to read: 
H. Have a clearly defined public purpose; 
Sec. 5. 5 MRSA §13070-0, sub-§l, ~ is enacted to read: 
I. In addition to standard data, report performance 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. 6. 5 MRS A §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. 7. Assessment of economic development programs. By September 1, 
2007 the Joint Standing Committee on Taxation shall review and make recommendations 
to the Government Oversight Committee of the Legislature on the necessity of an in-
depth performance evaluation to study the effectiveness of the following state programs 
and tax incentives: all state tax incentive programs, the revenue obligations securities 
program under the Maine Revised Statutes, Title 10, section 1041; the Economic 
Recovery Program under Title 10, section 1 026-J; the Governor's Training Initiative 
Program under Title 26, section 2031; the commercial loan insurance program under Title 
10, section 1026-A; the Maine Milk Commission under Title 7, section 2952; the 
Regional Economic Development Revolving Loan Program under Title 10, section 
1026-M; the Maine Manufacturing Extension Partnership under 15 United States Code, 
Sections 271 to 286; the Agricultural Marketing Loan Fund under Title 10, section 
1023-J; the Agricultural Water Management and Irrigation Fund under Title 7, section 
351; the apprenticeship program under Title 26, section 2006; the Potato Marketing 
Improvement Fund under Title 10, section 1023-N; and the Maine Farms for the Future 
Program under Title 7, section 317. 
Sec. 8. 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 for 
amending the statutory definition of "economic development incentive" and incorporating 
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. 9. 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. 10. Performance measures; incentives. By November 1,2007, the Joint 
Standing Committee on Business, Research and Economic Development shall develop 
and propose 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 economic 
development programs that are included in proposed legislation, to ensure that the 
Department of Economic and Community Development and the joint standing committee 
review such proposals with clearly defined criteria. The joint standing committee is 
authorized to submit legislation to increase reporting compliance from businesses 
receiving economic development incentives, and on a proposal to establish a new 
legislative process for the review of economic development program legislation to the 
SUMMARY 
This bill implements the recommendations of the Office of Program Evaluation and 
Government Accountability's report to the Government Oversight Committee on 
economic development programs in Maine. 
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