An Act To Create the Competitiveness Training Fund and Improve Maine Employment Security Programs
Maine Legislature, Session 123, LD 1884
Committee Amendment CA_A_H503 (House)
Amends: 26 MRSA §1166, 36 MRSA §191

COMMITTEE AMENDMENT "A " 
to H.P. 1317, L.D. 1884, Bill, "An Act To 
Create the Competitiveness Training Fund and Improve Maine Employment Security 
Programs" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Create the Competitive Skills Scholarship Fund and To Improve 
Maine Employment Security Programs' 
Amend the bill in Part A by striking out all of section 1 and inserting the following: 
'Sec. A-I. 26 MRSA §1166 is enacted to read: 
§1166. Competitive Skills Scholarship Fund 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Competitive Skills Scholarship Fund contributions" means the money payments 
required by this section to be made into the Competitive Skills Scholarship Fund by 
an employer as a percentage of the employer's taxable payroll based on the 
Competitive Skills Scholarship Fund predetermined yield in effect for that 
Competitive Skills Scholarship Fund rate year. 
B. "Competitive Skills Scholarship Fund planned yield" means the percentage of 
wages, as defined in section 1043, subsection 19, equal to .02% of the contributions 
of each contributing employer subject to this chapter. 
C. "Competitive Skills Scholarship Fund predetermined yield" means the amount 
determined by multiplying the ratio of total wages to taxable wages, as defined by 
section 1221, subsection 6, paragraph L, by the Competitive Skills Scholarship Fund 
planned yield. The Competitive Skills Scholarship Fund predetennined yield is 
rounded to the nearest .01%. 
COMMITTEE AMENDMENT 
~,~ 
~ 
... 
II 
COMMllTEE AMENDMENT" A " 
to H.P. 1317, L.D. 18" 
D. "Competitive Skills Scholarship Fund rate year" has the same meaning as "rate 
year" under section 1221, subsection 6, paragraph F. 
2. Established. The Competitive Skills Scholarship Fund, referred to in this section 
as "the fund," is established as a special fund in the State Treasury. All receipts, including 
interest, fines and penalties collected from Competitive Skills Scholarship Fund 
contributions, must be paid into the fund. Income from investment of the fund must be 
deposited to the credit of the fund. All money in the fund must be deposited, administered 
and disbursed in the same manner and under the same conditions and requirements as are 
provided by law for other special funds. 
The money in the fund must be administered by the commissioner exclusively for the 
purposes of chapter 25, subchapter 5 and for the costs of administering the fund. 
3. Unencumbered balances. Any unencumbered balance in the fund remaining at 
the end of any fiscal year remains in the fund and may not be made available for 
expenditure without specific legislative approval. 
4. No supplantation. Allocations from the fund must be used to supplement, not 
supplant, federal or state funds received by the Department of Labor, by a local board or 
by organizations that deliver workforce investment services through the career center 
provided by the department. 
S. Employers liable for Competitive Skills Scholarship Fund contribution. Each 
employer, as defined in section 1043, subsection 9, other than an employer liable for a 
payment in lieu of a contribution, shall pay a Competitive Skills Scholarship Fund 
contribution. 
Beginning January 1, 2008, Competitive Skills Scholarship Fund contributions are 
payable in the same manner as described under section 1221, subsection 1 and in 
accordance with section 1221, subsection 4-A. 
6. 
Receipts. 
All receipts collected from Competitive Skills Scholarship Fund 
contributions, including interest, fines and penalties on contributions not paid when due, 
must be paid into the fund. 
7. Experience rating records. Competitive Skills Scholarship Fund contributions 
may not be credited to an employer's experience rating record as described in section 
1221, subsection 3. 
8. Relationship to unemployment insurance contributions. Competitive Skills 
Scholarship Fund contributions may not be considered as part of the employer's 
unemployment insurance contribution rate pursuant to section 1221. Unemployment 
insurance contributions for all employers subject to the contribution provisions of this 
chapter must be reduced by a percentage equal to the total Competitive Skills Scholarship 
Fund contribution assessment as in section 1221, subsection 4-A. Exceptions pertaining 
to new employer rates and contribution rate category 20 are described in section 1221, 
subsection 4-A, paragraphs A and B. 
9. Other provisions of this chapter. All provisions of this chapter and rules 
adopted under this chapter regarding payments, time limits, dates of payment, reports, 
interest and penalties on amounts not paid by employers when due, fines, liens and 
COMMITTEE AMENDMENT 
~~fJ:.~ 
COMMITIEE AMENDMENT ~ 
"to H.'. UI7, L.D. 1884 
warrants that apply to the collection of contributions also apply to the collection of 
Competitive Skills Scholarship Fund contributions. ' 
Amend the bill in Part A in section 2 in subsection 4-A in paragraph A in the 2nd 
paragraph in the 2nd line (page 2, line 34 in L.D.) by striking out the following: 
"Competitiveness Training" and inserting the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 2 in subsection 4-A in paragraph B in 
subparagraph (8) in the 2nd line (page 5, line 29 in L.D.) by striking out the following: 
"Competitiveness Training" and inserting the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 2 in subsection 4-A in paragraph 0 in the 2nd line 
(page 6, line 22 in L.D.) by striking out the following: "Competitiveness Training" and 
inserting the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 3 in subchapter 5 in the headnote in the 2nd line 
(page 6, line 27 in L.D.) by striking out the following: "COMPETITIVENESS 
TRAINING" 
and 
inserting 
the 
following: 
'COMPETITIVE 
SKILLS 
SCHOLARSHIP' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in first line (page 6, 
line 28 in L.D.) by striking out the following: "Competitiveness Training" and inserting 
the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in subsection 1 in 
paragraph B in the first line (page 6, line 32 in L.D.) by striking out the following: 
"Competitiveness Training" and inserting the following: 'Competitive Skills Scholarship' 
and in the 3rd line (page 6, line 34 in L.D.) by striking out the following: 
"Competitiveness Training" and inserting the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in subsection I in 
paragraph E in the first line (page 7, line 1 in L.D.) by striking out the following: 
"Competitiveness Training" and inserting the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in subsection 2 in the 
2nd line (page 7, line 4 in L.D.) by striking out the following: "Competitiveness Training" 
and inserting the following: 'Competitive Skills Scholarship' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in subsection 6 in 
paragraph A in the 2nd line (page 8, line 9 in L.D.) by striking out the following: "those 
supplies and services" and inserting the following: 'education;> training and support' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in subsection 8 by 
striking out all of paragraph A (page 8, lines 35 to 41 in L.D.) and inserting the following: 
'A. When an individual's application for the program is approved, an individual 
career plan must be developed by the program with the eligible individual consistent 
with the provisions of this section and must reflect, to the maximum extent feasible, 
the preferences of the participant, within the confines of the goals associated with this 
subchapter. 
A plan may be modified when necessary to assist a participant to 
participate successfully in the program. The plan must include the education or 
COMMITTEE AMENDMENT 
r~~. 
~'4'j. 
COMMITTEE AMENDMENT .. A· 10 H.P. 1317. L.D. 1884 
training program approved, the degree or credential expected at program completion 
and the services and support to be provided under the plan.' 
Amend the bill in Part A in section 3 in subchapter 5 in §2033 in subsection 8 in 
paragraph B by striking out all of subparagraph (1) (page 9, lines 2 to 5 in L.D.) and 
inserting the foJlowing: 
'0) A description of the program, including a list of services and supports 
available through the program and nontraditional employment opportunities, so 
that the participant may identifY a suitable employment goal and the services 
needed to participate in the program;' 
Amend the bill in Part A by inserting after section 3 the following: 
'Sec. A-4. 36 MRSA §191, sub-§2, F, as amended by PL 1999, c. 414, §11, is 
further amended to read: 
V. 
The disclosure by employees of the Bureau of Revenue Services, to designated 
representatives of the Department of Labor, of all information required by the State 
Tax Assessor and the Commissioner of Labor for the administration of the taxes 
imposed by Part 8 and by Title 26, chapter 13 and the Competitive Skills Scholarship 
Fund contribution imposed by Title 26, section 1166;' 
Amend the bill in Part D by inserting after section 2 the following: 
'Sec. D-3. Appropriations and allocations. The following appropriations and 
allocations are made. 
LABOR, DEPARTMENT OF 
Employment Security Services 0245 
Initiative: Allocates funds to reflect the transfer of Reed Act funds to make technological 
upgrades and improvements to the unemployment insurance and employment services 
computer systems and to the labor market information services computer systems. 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
2007-08 
$5,200,000 
$5,200,000 
2008-09 
$0 
$0 
Employment Security Services 0245 
Initiative: Allocates funds for the additional costs of continuing to provide unemployment 
benefits to persons who are not available for full-time work under certain circumstances. 
EMPLOYMENT SECURITY TRUST FUND 
2007-08 
2008-09 
COMMITTEE AMENDMENT 
~.~~~ 
.'j,I> 
I 
COMMrrrEE AMENDMENT" A 
.. to H.P. 1317, L.D. 1884 
All Other 
$0 
$3,000,000 
EMPLOYMENT SECURITY TRUST FUND TOTAL 
$0 
$3,000,000 
Employment Security Services 0245 
Initiative: Allocates funds due to the elimination of the pension offset provision against 
unemployment benefits for certain persons who receive social security or any other 
pension. 
EMPLOYMENT SECURITY TRUST FUND 
All Other 
EMPLOYMENT SECURITY TRUST FUND TOTAL 
Employment Services Activity 0852 
2007-08 
$3,500,000 
$3,500,000 
2008-09 
$5,000,000 
$5,000,000 
Initiative: Allocates Personal Services and An Other funds associated with the 
establishment of the Competitive Skills Scholarship Program to provide access to 
education, training and support to customers of the Department of Labor's career centers 
to prepare them for high-wage jobs in industries with significant demand for skilled labor. 
COMPETITIVE SKILLS SCHOLARSHIP FUND 
2007-08 
2008-09 
Personal Services 
$127,382 
$387,658 
All Other 
$1,222,618 
$2,562,342 
COMPETITNE SKILLS SCHOLARSHIP FUND 
$1,350,000 
$2,950,000 
TOTAL 
Employment Services Activity 0852 
Initiative: Reduces Personal Services allocations associated with the establishment of the 
Competitive Skills Scholarship Program to provide access to education, training and 
support to customers of the Department of Labor's career centers to prepare them for 
high-wage jobs in industries with significant demand for skilled labor. 
FEDERAL EXPENDITURES FUND 
Personal Services 
FEDERAL EXPENDITURES FUND TOTAL 
LABOR, DEPARTMENT OF 
2007-08 
($127,382) 
($127,382) 
COMMITTEE AMENDMENT 
2008-09 
($387,658) 
($387,658) 
COMMI'ITEE AMENDMENT "A " 
<.11.'. H17, L.D. 188' 
DEPARTMENT TOTALS 
FEDERAL EXPENDITURES FUND 
EMPLOYMENT SECURITY TRUST FUND 
COMPETITIVE SKILLS SCHOLARSHIP 
FUND 
DEPARTMENT TOTAL - ALL FUNDS 
SUMMARY 
2007-08 
2008-09 
$5,072,618 
($387,658) 
$3,500,000 
$8,000,000 
$1,350,000 
$2,950,000 
$9,922,618 
$10,562,342 
This amendment changes the name of the training fund to the Competitive Skills 
Scholarship Fund and the name of the program to the Competitive Skills Scholarship 
Program. The title of the bill is replaced to reflect these name changes. The amendment 
provides that unencumbered balances in the Competitive Skills Scholarship Fund remain 
in the fund and do not lapse to the General Fund. The amendment also provides that 
Competitive Skills Scholarship Fund dollars must be used to supplement, and not 
supplant, other state or local funds that are used to deliver workforce investment services 
through Maine's CareerCenters. The amendment includes technical changes to make the 
bill internally consistent and clarifies that an individual career plan is developed in 
cooperation with the participant and that it must, to the maximum extent feasible, reflect 
the preferences of the participant, provided that the individual career plan remains within 
the confines of the goals of the program. The amendment also clarifies that participants 
must be given a description of the program as well as a list of services and supports 
available through the program. 
The amendment also permits the Department of 
Administrative and Financial Services, Bureau of Revenue Services to disclose to 
designated employees of the Department of Labor information necessary to administer 
the contributions to the Competitive Skills Scholarship Fund. 
It also adds an 
appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 06/06/07 Mac: 
LD 1884 
LR 2571{02) 
An Act To Create tbe Competitiveness Training Fund and Improve Maine Employment Security 
. 
Programs 
Fiscal Note for Bill as Amended by Committee Amendment ,A" 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Future biennium cost increase - An Funds 
Projections 
2007-08 
2008-09 
2009-10 
Appropriations! Allocations 
Federal Expenditures Fund 
$5,072,618 
($387,658) 
($399,288) 
Employment Security Trust Fund 
$3,500,000 
$8,000,000 
$9,000,000 
Competitive Skills Scholarship Fund 
$1,350,000 
$2,950,000 
$3,200,000 
Revenue 
Employment Security Trust Fund 
($18,250,000) 
($37,250,000) 
($20,700,000) 
Competitive Skills Scholarship Fund 
$1,350,000 
$2,950,000 
$3,200,000 
Transfers 
Federal Expenditures Fund 
$5,200,000 
$0 
$0 
Employment Security Trust Fund 
($5,200,000) 
$0 
$0 
Fiscal Detail and Notes 
This legislation includes initiatives to improve the State's employment security programs. 
Projections 
2010-11 
($411,267) 
$9,300,000 
$3,300,000 
($3,300,000) 
$3,300,000 
$0 
$0 
First, the bill creates the Competitive Skills Scholarship Program to provide access to ~ducation, training and support 
to prepare 'career center clients for high-wage jobs in industries with significant demand for skilled labor. The 
program is funded by employer contributions based on a predetermined yield. The Department of Labor estimates 
total contributions to the Competitive Skills Scholarship Fund to be $1.35 million in fiscal year 2007-08 and $2.95 
million in fiscal year 2008~09. Employer contributions to the Employment Security Trust Fund are reduced by the 
same amount so that the net impact of this initiative to employers is zero. This bill also allocates personal services 
and all other resources to the Competitive Skills Scholarship Program to reflect the services that will be provided by 
current employees within the Department of Labor. 
LR2S71(02) - Fiscal Note - Page 10f2 
This legislation also lowers the benefit reserve cap on the Unemployment Trust Fund from 21 months to 18 months 
which will reduce unemployment contributions for all employers by $16.9 million in fiscal year 2007-08 and $34.3 
million in fiscal year 2008-09. 
This bill includes Other Fund allocations of $3,500,000 in fiscal year 2007-08 and $5,000,000 in fiscal year 2008-0~ 
to the Unemployment Compensation Benefit Account within the Department of Labor for the cost associated with 
eliminating the pension offset against unemployment benefits for persons who receive social security or any other 
pension provided the person contributed at least 50% of the contributions to that pension. The cost increase in this 
bill is not expected to impact the unemployment contributions schedule until after the 2011 rate year. The State and 
all other direct reimbursement employers will be required to repay the Unemployment Compensation Trust Fund for 
the additional benefit payments. 
This legislation also includes Other Fund allocations of$3,000,000 in fiscal year 2008-09 to the Unemployment 
Compensation Benefit Account for the costs associated with eliminating the September 30,2008 sunset of the 
provision that allows a person to collect unemployment benefits if that person is able and available for part-time work. 
Eliminating the sunset will increase benefits paid from the Unemployment Compensation Trust Fund beginning in 
fiscal year 2008-09. 
Finally, this bill authorizes the use of$5.2 million of Reed Act funds to make certain technological upgrades and 
improvements to the unemployment insurance and employment services computer systems as well as improvements to 
the labor market information services computer systems as they relate to the analysis of unemployment and 
employment data. It provides that a portion of these funds will be used for the administrative costs associated with 
helping unemployment benefit recipients return to work more quickly. 
LR257 I (02) - Fiscal Note - Page 2 of 2