An Act To Advance the Maine Economy
Maine Legislature, Session 123, LD 2159
Committee: Business, Research and Economic Development
Sponsors: MITCHELL, RECTOR, BROMLEY, BRYANT, MARRACHE, MILLS, CUMMINGS, GERZOFSKY, JACKSON, MIRAMANT
Amends: 5 MRSA §13109-A, 35-A MRSA §3210, 35-A MRSA §3211-A

Legislative Document 
No. 2159 
S.P.827 
January 17,2008 
An Act To Advance the Maine Economy 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator MITCHELL of Kennebec. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative RECTOR of Thomaston and Senators: BROMLEY of 
Cumberland, BRYANT of Oxford, MARRACHE of Kennebec, MILLS of Somerset, 
Representatives: Speaker CUMMINGS of Portland, GERZOFSKY of Brunswick, JACKSON 
of Allagash, MIRAMANT of Camden. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §13109-A is enacted to read: 
§13109-A. Maine Expansion Fund 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Advisory board" means the Maine Expansion Fund Advisory Board established 
in subsection 3. 
B. "Eligible business" means a business entity whose business activity is directly 
related to financial services, manufacturing or a targeted technology as defined In 
section 15301, subsection 2. 
II 
C. "Fund" means the Maine Expansion Fund established in subsection 2. 
D. "Project" means a proposal to assist an eligible business to locate in a specific 
municipality. 
2. Fund established. The Maine Expansion Fund is established as a non lapsing 
Other Special Revenue Funds account administered by the office at the direction of the 
board. 
3. Advisory board established; members. The Maine Expansion Fund Advisory 
Board is established and consists of: 
A. The Commissioner of Economic and Community Development; 
B. 
One member with expertise in business development or business expansIOn 
appointed by the President of the Senate; 
C. One member who has successfully operated a midsized or large business related 
to financial services, manufacturing or a targeted technology appointed by the 
Speaker of the House; 
D. One member with experience in business financing appointed by the Governor; 
and 
E. One member appointed by the Governor who represents a nonprofit corporation 
that provides services to help midsized and large businesses locate or expand in the 
State. 
4. 
Sources of money. The office may receive donations and funding from any 
source on behalf of the fund, including appropriations and allocations made by law. 
5. Grants; eligibility. The money in the fund must be used to provide grants to 
municipalities for projects. A project is limited to one grant under this section of no more 
than $200,000. A project must meet the requirements in this subsection to be eligible for 
a grant. 
Page I - 123LR3320(Ol)-1 
• 
A. The municipality seeking the grant must match the amount of the grant under this 
section, either in kind or through tax incentives, public infrastructure investments or 
grants. 
B. The eligible business must have a business plan, cash flow statement, operating 
budget, other investors and related financial information that demonstrates the 
financial need. 
C. 
The eligible business must make an investment of at least 5 times the grant 
amount and create 25 or more net new jobs that pay at least the average labor market 
weekly wage and provide at least a 50% employer-paid health care benefit, paid sick 
leave and access to an approved retirement plan. 
D. The funds for the project must be used for facilities acquisition or renovation, 
public infrastructure investments needed for the business to locate or expand, capital 
machinery or equipment or training of workers. 
6. Approval. A grant to a municipality for a project may be made only if the 
advisory board: 
A. Finds that the project meets all the requirements under subsection 5; 
B. Determines that the project is consistent with the economic, education and science 
and technology strategies and policies of the State; and 
C. Approves the grant by a majority vote. 
The advisory board may attach terms and conditions to the grant that the board 
determines necessary, including, but not limited to, penalties or repayment requirements 
if the eligible business fails to fulfill the requirements set out under subsection 5, 
paragraph C and identifying a nonprofit corporation as facilitator and liaison with the 
advisory board. 
7. Confidentiality. The office and the advisory board shall hold as confidential any 
information provided by an eligible business. 
8. Annual report. By January 1 st annually, the office shall provide to the Governor 
and the Legislature a report that sets forth: 
A. The operations of the fund during the immediately preceding fiscal year; 
B. The assets and liabilities of the fund at the end of its most recent fiscal year; and 
C. The annual measurable goals and objectives of the fund, as established by the 
commissioner and the office, and an evaluation of the achievement of those goals and 
objectives. The goals and objectives must include, but are not limited to, attraction 
and expansion of targeted technology businesses and jobs created or retained. For 
purposes of this paragraph, "targeted technology" has the same meaning as in section 
15301, subsection 2. 
Sec. 2. 35-A MRSA §3210, sub-§5, ~C, as amended by PL 1999, c. 372, §1 and 
PL 2003, c. 20, Pt. 00, §2 and affected by §4, is further amended to read: 
C. 
Provide for a distribution of the funds to the University of Maine System, the 
Maine Maritime Academy or the Maine Community College System for renewable 
resource research and development; aHd 
Sec. 3. 35-A MRSA §3210, sub-§5, ~, as amended by PL 2007, c. 18, § 1, is 
further amended to read: 
D. 
Provide for a distribution of the funds to Maine-based nonprofit organizations 
that qualifY under the federal Internal Revenue Code, Section 501(c)(3), consumer-
owned 
transmission 
and 
distribution 
utilities, 
community-based 
nonprofit 
organizations, 
community 
action 
programs, 
municipalities, 
quasi-municipal 
corporations or districts as defined in Title 30-A, section 2351 and school 
administrative units as defined in Title 20-A, section 1 for community demonstration 
projects using renewable energy technologies~; and 
Sec. 4. 35-A MRSA §3210, sub-§5, ~ 
is enacted to read: 
E. Provide for an annual distribution of 75% of the funds transferred by operation of 
section 3211-A, subsection 5, paragraph E to the Maine Technology Institute to 
support the development and commercialization of renewable energy technologies. 
Sec. 5. 35-A MRSA §3210, sub-§6, as amended by PL 2007, c. 18, §2, is further 
amended to read: 
6. Fund. There is established the Renewable Resource Fund, referred to in this 
subsection as the "fund." The fund is a nonlapsing fund administered by the commission. 
All funds transferred by operation of section 3211-A, subsection 5, paragraph E and all 
funds collected by the commission pursuant to subsection 5 must be deposited in the fund 
for distribution by the commission in accordance with subsection 5. The commission 
may seek and accept funding for the program established pursuant to subsection 5 from 
other sources, public or private. Any funds accepted for use in the program established 
pursuant to subsection 5 must be deposited in the fund. 
Sec. 6. 35-A MRSA §3211-A, sub-§5, ~ 
is enacted to read: 
E. 
At the beginning of each fiscal year, the Treasurer of State shall transfer an 
amount that represents 20% of the average amount in the program fund for the 
immediately preceding fiscal year to the Renewable Resource Fund under section 
3210. 
Sec. 7. Alignment of business support resources with Maine's potential 
growth sectors. The Department of Economic and Community Development, Office of 
Innovation and Office of Business Development shall work directly with the Small 
Business Development Center Program, the Maine Manufacturing Extension Partnership, 
the Maine Technology Institute and trade organizations to develop and implement a 
strategic action plan to align the State's business development support network with 
potential high economic growth areas, specifically its potential high-growth companies. 
The plan must consider the so-called "cluster analysis" recently done by the Maine 
Technology Institute as well as other economic data on industries that have great growth 
potential in Maine and identifY specific roles for each partner in the development and 
support of potential high-growth companies. 
For purposes of this section, "potential 
high-growth company" means a company that has the potential to grow at least 15% a 
year. 
The plan must include an aggressive outreach plan, technical assistance, 
entrepreneurial training and support and financing, including seed, start-up, early debt 
and venture funds. The Office of Innovation and the Office of Business Development 
shall jointly report to the joint standing committee of the Legislature having jurisdiction 
over business and economic development matters on the implementation of the strategic 
plan to the First Regular Session ofthe 124th Legislature by March 2, 2009. 
Sec. 8. Leadership and entrepreneurial development. The Department of 
Economic and Community Development, Office of Innovation shall work with the 
University of Maine's Student Innovation Center to develop a collaborative effort with the 
Technology Institute, the Small Business Development Centers, the Department of 
Economic and Community Development's business development specialists, the Maine 
Manufacturing Extension Partnership, the Target Technology Incubator and the Small 
Enterprise Growth Fund to design a leadership and entrepreneurial development program. 
The program must match up to 10 high-growth potential entrepreneurs per year with best-
in-class training, resources and mentors. The program may seek outside funds from 
8 
foundations, government or other sources to fund the program. The Office of Innovation 
shall submit a report to the joint standing committee ofthe Legislature having jurisdiction 
over business and economic development matters on the program by March I, 2009 to 
the First Regular Session of the 124th Legislature. The report must include a detailed 
implementation plan, including, but not limited to, funding needs and recommended 
sources of funding. 
Sec. 9. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Office of Innovation 
Initiative: 
Provides ongoing funding for the Maine Expansion Fund to assist in the 
location or expansion of businesses in Maine under the Maine Revised Statutes, Title 5, 
section 131 09-A. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2007-08 
$0 
$0 
2008-09 
$500,000 
$500,000 
Sec. 10. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMUNITY COLLEGE SYSTEM, BOARD OF TRUSTEES OF THE MAINE 
Community College System - Maine Quality Centers 0804 
Initiative: Provides additional ongoing funds for specialized education and training to 
meet the needs of new and expanding businesses in the State and to provide new 
employment and career advancement opportunities for Maine people. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
COMMUNITY COLLEGE SYSTEM, BOARD OF 
TRUSTEES OF THE MAINE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
LABOR, DEPARTMENT OF 
Governor's Training Initiative Program 0842 
2007-08 
$0 
$0 
2007-08 
$0 
$0 
2008-09 
$250,000 
$250,000 
2008-09 
$250,000 
$250,000 
Initiative: Provides additional ongoing funds to expand workforce training opportunities 
leading to high-quality jobs, increasing the competitiveness of Maine businesses. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
LABOR, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
2007-08 
$0 
$0 
2007-08 
$0 
$0 
2007-08 
$0 
2008-09 
$250,000 
$250,000 
2008-09 
$250,000 
$250,000 
2008-09 
$500,000 
SECTION TOTAL - ALL FUNDS 
$0 
$500,000 
SUMMARY 
This bill creates and provides funding for the Maine Expansion Fund, to be 
administered by the Department of Economic and Community Development, Office of 
Innovation. 
The fund consists of ongoing appropriations and will provide grants to 
municipalities, which must match the grants, to aid eligible businesses to locate or expand 
in the State. 
The bill amends current law to enhance the development of green energy in Maine by 
transferring annually 20% of the money in the conservation program fund to the 
Renewable Resource Fund and annually 75% of that money to the Maine Technology 
Institute to support the development and commercialization of renewable energy 
resources. 
The bill also requires the Department of Economic and Community Development, 
Office of Innovation and Office of Business Development to work with other entities to 
develop and implement a strategic action plan to align the State's business development 
support network with potential high-growth companies and to report to the Legislature on 
the progress of the plan by March 2, 2009. 
The bill provides additional ongoing funds to the Maine Quality Centers in the Maine 
Community College System and to the Governor's Training Initiative Program in the 
Department of Labor.