An Act To Encourage Expansion and Development of Maine Tourism
Maine Legislature, Session 123, LD 1076
Committee: Business, Research and Economic Development
Sponsors: MIRAMANT, EDMONDS, ANNIS, CONNOR, CUMMINGS, DUCHESNE, FAIRCLOTH, KOFFMAN, PINGREE, NASS
Amends: 5 MRSA §13090-K, 5 MRSA §13090-M

Legislative Document 
No. 1076 
H.P.794 
House of Representatives, March 6, 2007 
An Act To Encourage Expansion and Development of Maine 
Tourism 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative MIRAMANT of Camden. 
Cosponsored by President EDMONDS of Cumberland and 
77/~ 
1I1.7Jld£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: ANNIS of Dover-Foxcroft, CONNOR of Kennebunk, Speaker CUMMINGS 
of Portland, DUCHESNE of Hudson, FAIRCLOTH of Bangor, KOFFMAN of Bar Harbor, 
PINGREE of North Haven, Senator: NASS of York. 
Printed on fe':ycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRS A §13058-A is enacted to read: 
. §13058-A. Governor to report 
The Governor shall, beginning in calendar year 2009, with the assistance of the 
commissioner and the Maine Tourism Commission, report to the Legislature biennially 
on the major problems facing and opportunities for expansion or improvement of the 
tourism industry in the State. The report must recommend a policy that will allow for 
future development and growth of the tourism industry and a cooperative arrangement 
between state agencies to meet opportunities for expansion or improvement. 
Sec. 2. 5 MRSA §13090-K, as enacted by PL 2001, c. 439, Pt. UUUU, §1, is 
amended to read: 
§13090-K. Tourism Marketing and Development Fund 
1. Fund established. The Tourism Marketing Promotion and Development Fund is 
established in the Department of Economic and Community Development, Office of 
Tourism as a nonlapsing dedicated account. 
2. Source of fund. Beginning July 1, 2003 and every July 1 st thereafter, the State 
Controller shall transfer to the Tourism Marketing Promotion and Development Fund an 
amount, as certified by the State Tax Assessor, that is equivalent to ~ 
8% of the 7% tax 
imposed on tangible personal property and taxable services pursuant to Title 36, section 
1811, for the first 6 months of the prior fiscal year after the reduction for the transfer to 
the Local Government Fund as described by Title 30-A, section 5681, subsection 5. 
Beginning on October 1, 2003 and every October 1 st thereafter, the State Controller shall 
transfer to the Tourism Marketing Promotion and Development Fund an amount, as 
certified by the State Tax Assessor, that is equivalent to ~ 
8% of the 7% tax imposed on 
tangible personal property and taxable services pursuant to Title 36, section 1811, for the 
last 6 months of the prior fiscal year after the reduction for the transfer to the Local 
Government Fund. The tax amount must be based on actual sales for that fiscal year and 
may not consider any accruals that may be required by law. The amount transferred from 
General Fund sales and use tax revenues does not affect the calculation for the transfer to 
the Local Government Fund. 
3. 
Restrictions. 
A minimum of 10% of the funds received by the Tourism 
Marketing Promotion and Development Fund in accordance with subsection 2 must be 
used for regional marketing promotion and regional special events promotion. 
The 
Office of Tourism shall provide the Maine Tourism Development Fund established in 
section 13090-M with the funds necessary for the Maine Tourism Development Fund to 
carry out the purposes of section 13090-M, as requested by the Board of Directors of the 
Maine Tourism Development Fund, and calculate the increase in revenue to the Tourism 
Marketing and Development Fund from the revenues dedicated to the fund from the 7% 
tax under subsection 2 of the prior fiscal year due to increased tax revenues and transfer 
the amounts required by this subsection to the Maine Tourism Development Fund 
established in section 13090-M. 
Page I - 123LR1456(Ol)-1 
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Sec. 3. 5 MRSA §13090-M is enacted to read: 
§13090-M. Maine Tourism Development Fund 
1. Fund established. The Maine Tourism Development Fund, referred to in this 
section as "the fund," is established as an interest-bearing, revolving account to fund a 
grant program created under this section. All interest earned by the fund becomes part of 
the fund. Any balance remaining in the fund at the end of a fiscal year does not lapse but 
is carried forward into the subsequent fiscal year. Revenue to the fund is collected, 
managed, deposited, invested and disbursed by the board. 
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2. Board. The fund is administered by the Board of Directors of the Maine Tourism 
Development Fund, referred to in this section as "the board." The board is composed of 
members, of which the commissioner or the commissioner's designee and the Director 
of the State Planning Office within the Executive Department or the director's designee 
are ex officio members. 
The 11 appointed members of the board are appointed as 
follows: 
A. Nine members appointed by the Governor; 
B. One member appointed by the President ofthe Senate; and 
C. One member appointed by the Speaker of the House of Representatives. 
Qualifications of members ofthe board must include a wide experience in elements of the 
tourism industry, demonstrated ability and interest in creating new tourism destinations 
and demonstrated support for innovation in the tourism industry. Members serve for a 3-
year term. The members shall elect a chair, who shall serve as chair for the duration of 
that member's term. The board shall develop a budget in a form determined by the 
commissioner and submit the budget to the commissioner for funding from the Tourism 
Marketing and Development Fund established in section 13090-K. The board shall adopt 
conflict of interest guidelines for the board. 
3. Revenue sources. For purposes of funding its activities, the board is authorized 
to accept appropriations and allocations, funds from the Tourism Marketing and 
Development Fund established in section 13090-K and donations or contributions from 
private and public sources and shall consult with donors in making distribution 
determinations. 
4. Grant proerams. The board shall provide grants to: 
A. Provide seed money to undertake a feasibility study to create new tourism or to 
expand existing tourist destinations in the State that could attract a significant number 
of new visitors. A grant under this paragraph may not exceed $10,000 and must be 
matched by cash or in-kind services or materials by the recipient. Organizations 
eligible to receive a grant under this paragraph are nonprofit organizations, chambers 
of commerce and convention and visitors bureaus and associations. The board shall 
award at least one grant under this paragraph every 3 months; 
B. Develop a concept subject to a feasibility study funded by a grant under paragraph 
A that the study has demonstrated could attract a significant number of new visitors 
and is financially feasible, to allow the recipient to prepare a complete plan for 
presentation to a potential investor or partner. A grant under this pan!g!1l-p~m'!Y21Q! 
exceed $25,000 and at least 50% of the grant must be matched in cash by the 
recipient. The board shall award at least one grant under this paragraph every 6 
months; 
C. Assist a for-profit or nonprofit tourism business in developing and implementing 
best practices that would improve the marketing, promotion, operation, service and 
working force of the State's tourism industry. A grant under this paragraph may not 
exceed $25,000, and must be matched by cash or in-kind services or materials by the 
recipient. The board shall award at least one grant under this paragraph every 6 
months; 
D. Assist an arts, cultural or heritage organization to conduct market research and 
implement targeted marketing to attract in-state and out-of-state tourists. 
An 
applicant for a grant under this paragraph must create a cluster with at least one other 
partner that is a chamber of commerce, tourism development organization or 
convention and visitors bureau or association. A grant under this paragraph may not 
exceed $40,000 and must be matched by cash or in-kind services or materials by the 
recipient. The board shall award at least one grant under this paragraph every 6 
months; 
E. Assist a public or private organization in conducting market research and targeted 
marketing and creating and placing signage to attract tourists interested in nature to 
the State. An application for a grant under this paragraph must include definite and 
measurable goals for the number of new tourists that would be attracted as a result of 
the grant. An applicant for a grant under this paragraph must create a cluster with at 
least one other partner that is a chamber of commerce, tourism development 
organization or convention and visitors bureau or association. A grant under this 
paragraph may not exceed $40,000 and must be matched by cash or in-kind services 
or materials by the recipient. The board shall award at least one grant under this 
paragraph every 6 months; and 
F. 
Assist a municipality to make a main street or waterfront more attractive to 
tourists and residents. A grant under this paragraph may be used for a feasibility 
study, 
planning 
and 
infrastructure 
including 
lighting, 
seating, 
public 
accommodations, landscaping and signage for historical and other attractions in the 
municipality. A grant under this paragraph may not exceed $25,000 and must be 
matched by cash or in-kind services or materials by the recipient. The board shall 
award at least one grant under this paragraph every 6 months. 
For purposes of this subsection, "cluster" means a partnership of at least 2 dissimilar 
organizations. 
5. Report and evaluation. The board annually shall publish a report describing 
each current program and grant of the fund. At least once every 2 years the board shall 
contract with an outside contractor to evaluate the fund's grant-making process, each 
program and grant and the effectiveness of each program and grant. The board shall 
review an evaluation contracted under this subsection and make whatever changes to the 
activities of the fund that the board determines appropriate. 
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6. Rules. The board may adopt routine technical rules pursuant to Title 5, chapter 
37~..L~lJPch~Pler 2-A to carry out theJ!!!IPQse.s oftb_~~ectiorL 
Sec. 4. Original terms for Maine Tourism Development Fund Board of 
Directors. Under the Maine Revised Statutes, Title 5, section 13090-M, subsection 2, 4 
of the original appointments of the Governor shall serve 2 years as an initial term and 4 of 
the original appointments of the Governor shall serve one year as an initial term. 
Sec. 5. 
Priorities in nature tourism grants. 
In the first 2 years of 
implementation of a grant under Title 5, section 13090-M, subsection 4, paragraph E, the 
Board of Directors of the Maine Tourism Development Fund shall give priority to any 
grant that proposes a cluster as identified in the "Strategic Plan for Implementing the 
Maine Nature Tourism Initiative," published by Fermata, Inc. in September 2005. 
Sec. 6. Disbursement of funds from the Maine Tourism Development 
Fund. For the first fiscal year of implementation, the Board of Directors of the Maine 
Tourism Development Fund shall disburse at least $500,000 for the grant program 
established under the Maine Revised Statutes, Title 5, section 13090-M, subsection 4, 
paragraph A; $500,000 for the grant program established under Title 5, section 13090-M, 
subsection 4, paragraph B; $500,000 for the grant program established under Title 5, 
section 13090-M, subsection 4, paragraph C; $500,000 for the grant program established 
under Title 5, section 13090-M, subsection 4, paragraph D; $500,000 for the grant 
program established under Title 5, section 13090-M, subsection 4, paragraph E; and 
$400,000 for the grant program established under Title 5, section 13090-M, subsection 4, 
paragraph F. 
The board shall increase the disbursements under this section in a 
subsequent fiscal year by an amount proportional to an increase in revenue to the fund. 
Sec. 7. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Office of Tourism 
Initiative: Provides additional funds to purchase print, television, radio, digital and other 
media to promote tourism in the State. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Office of Tourism 
2007-08 
2008-09 
$2,600,000 
$2,665,000 
$2,600,000 
$2,665,000 
Initiative: Provides additional funds to contract with member campuses of the University 
of Maine System or the Maine Community College System or another person to offer a 
new or expanded degree program for future managers or owners of tourism-related 
businesses or organizations or a certificate program for key staff members or middle-level 
managers or special skills training for front-line supervisors or staff members in tourism-
related businesses or organizations. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Office of Tourism 
2007-08 
$500,000 
$500,000 
2008-09 
$512,500 
$512,500 
Initiative: 
Provides funds for the University of Maine System, Center for Tourism 
Research and Outreach to identify best practices in tourism in other states and sectors and 
promote these practices to the tourism industry in the State, to research, analyze and 
disseminate facts on the State's tourism competitive position, to develop new tools for 
tourism forecasting, to provide small seed grants for University of Maine System faculty 
at all campuses to conduct research useful to the tourism industry and for special events 
aimed at increasing investments in tourism in the State. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL - ALL FUNDS 
SUMMARY 
2007-08 
$300,000 
$300,000 
2007-08 
$3,400,000 
$3,400,000 
2008-09 
$307,500 
$307,500 
2008-09 
$3,485,000 
$3,485,000 
This bill makes ongoing appropriations of $3,400,000 for fiscal year 2007-08 and 
$3,485,000 for fiscal year 2008-09 to the Department of Economic and Community 
Development, Office of Tourism for additional funding for advertising to promote 
tourism in the State, for contracting with the University of Maine System and Maine 
Community College System and others to provide education and training for managers, 
owners and staff of tourism-related businesses and organizations and for funding of the 
University of Maine System, Center for Tourism Research. This bill also: 
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1. Requires the Governor with the assistance of the Commissioner of Economic and 
Community Development and the Maine Tourism Commission to report biennially on 
tourism in the State; 
2. Changes the name of the Tourism Marketing Promotion Fund to the Tourism 
Marketing and Development Fund and increases the fund's revenue from 5% to 8% of a 
portion of the sales and use tax and directs the fund to fund and annually transfer the 
yearly increase in its revenue to the Maine Tourism Development Fund created by this 
Act; and 
3. Creates the Maine Tourism Development Fund to provide grants to various for-
profit and nonprofit organizations and municipalities for tourism-related projects . 
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