An Act To Create the Competitiveness Training Fund and Improve Maine Employment Security Programs
Maine Legislature, Session 123, LD 1884
Committee: Labor
Sponsors: CAMPBELL, STRIMLING, DUPREY, HAMPER, PINGREE, TUTTLE, DOW, EDMONDS, ROSEN, SULLIVAN
Amends: 26 MRSA §1166, 26 MRSA §1, 26 MRSA §1192

Legislative Document 
No. 1884 
H.P.1317 
House of Representatives, May 1,2007 
An Act To Create the Competitiveness Training Fund and Improve 
Maine Employment Security Programs 
Reference to the Committee on Labor suggested and ordered printed. 
7lJ~/h.~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative CAMPBELL of Newfield. (GOVERNOR'S BILL) 
Cosponsored by Senator STRIMLING of Cumberland and 
Representatives: DUPREY of Hampden, HAMPER of Oxford, PINGREE of North Haven, 
TUTTLE of Sanford, Senators: DOW of Lincoln, President EDMONDS of Cumberland, 
ROSEN of Hancock, SULLIVAN of York. 
Priuted on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 26 MRSA §1166 is enacted to read: 
§1166. Competitiveness Training Fund 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Competitiveness Training Fund contributions" means the money payments 
required by this section to be made into the Competitiveness Training Fund by an 
employer as a percentage of the employer's taxable payroll based on the 
Competitiveness 
Training 
Fund 
predetermined 
yield 
m 
effect 
for 
that 
Competitiveness Training Fund rate year. 
B. "Competitiveness Training 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. 
"Competitiveness Training 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 Competitiveness Training Fund 
planned yield. The Competitiveness Training Fund predetermined yield is rounded to 
the nearest .01%. 
D. "Competitiveness Training Fund rate year" has the same meaning as "rate year" 
under section 1221, subsection 6, paragraph F. 
2. Established. The Competitiveness Training Fund, referred to in this section as 
"the fund," is established. All receipts, including interest, fines and penalties collected 
from Competitiveness Training 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. Employers liable for Competitiveness Training Fund contribution. Each 
employer, other than an employer liable for a payment in lieu of a contribution, shall pay 
a Competitiveness Training Fund contribution. 
Beginning January 1, 2008, Competitiveness Training Fund contributions are payable in 
the same manner as described under section 1221, subsection I and in accordance with 
section 1221, subsection 4-A. 
4. 
Receipts. 
All receipts collected from Competitiveness Training Fund 
contributions, including interest, fines and penalties on contributions not paid when due, 
must be paid into the fund. 
5. Experience rating records. Competitiveness Training Fund contributions may 
not be credited to an employer's experience rating record as described in s~ction 1221, 
subsection 3. 
6. 
Relationship to unemployment insurance contributions. 
Competitiveness 
Training 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 Competitiveness Training 
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: 
7. 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 
warrants that apply to the collection of contributions also apply to the collection of 
Competitiveness Training Fund contributions. 
Sec. A-2. 26 MRS A §1221, suh-§4-A, as amended by PL 1999, c. 740, §2, is 
further amended to read: 
4-A. Employer's experience classifications after January 1, 2000. For rate years 
commencing on or after January 1, 2000, the commissioner shall compute annually 
contribution rates for each employer based on the employer's own experience rating 
record and shall designate a schedule and planned yield. 
A. 
The standard rate of contributions is 5.4%. A contributing employer's rate may 
not be varied from the standard rate unless the employer's experience rating record 
has been chargeable with benefits throughout the period of 24 consecutive calendar 
months ending on the computation date applicable to such a year. A contributing 
employer newly subject to this chapter shall pay contributions at a rate equal to the 
greater of the predetermined yield or 1.0% until the employer's experience rating 
record has been chargeable with benefits throughout the period of 24 consecutive 
calendar months ending on the computation date applicable to such a year. For rate 
years thereafter, the employer's contribution rate is determined in accordance with 
this subsection and subsection 3. 
Effective January 1, 2008, the contribution rate must be reduced by the 
Competitiveness Training Fund predetermined yield as defined in section 1166, 
subsection 1, paragraph C, except that a contribution rate under this paragraph may 
not be reduced below 1 %. 
B. 
Subject to paragraph A, an employer's contribution rate for the 12-month period 
commencing January 1st of each year is based upon the employer's experience rating 
record and determined from the employer's reserve ratio. The employer's reserve 
ratio is the percent obtained by dividing the amount, if any, by which the employer's 
contributions, credited from the time the employer first or most recently became an 
employer, whichever date is later, up to and including June 30th of the preceding 
year, including any part of the employer's contributions due for that year paid on or 
before July 31st of that year, exceed the employer's benefits charged during the same 
period, by the employer's average annual payroll for the period of 36 consecutive 
months ending June 30th of the preceding year. The employer's contribution rate is 
determined under subparagraphs (1) to f71 ill. 
(1) The commissioner shall prepare a schedule listing all employers for whom a 
reserve ratio has been computed pursuant to this paragraph, in the order of their 
reserve ratios, beginning with the highest ratio. For each employer, the schedule 
must show: 
(a) The amount of the employer's reserve ratio; 
(b) The amount of the employer's annual taxable payroll; and 
(c) A cumulative total consisting of the amount of the employer's annual 
taxable payroll plus the amount of the annual taxable payrolls of all other 
employers preceding the employer on the list. 
(2) The commissioner shall segregate employers into contribution categories in 
accordance with the cumulative totals under subparagraph (1), division (c). The 
contribution category is determined by the cumulative payroll percentage limits 
in column B. 
Each contribution category is identified by the contribution 
category number in column A that is opposite the figures in column B, which 
represent the percentage limits of each contribution category. If an employer's 
taxable payroll falls in more than one contribution category, the employer must 
be assigned to the lower-numbered contribution category, except that an 
employer may not be assigned to a higher contribution category than is assigned 
any other employer with the same reserve ratio. 
A B C  
D 
E 
Contribution 
Category 
% of Taxable Payrolls Experience 
From 
To 
Factors 
00.00 
05.00 
.30 
05.01 
10.00 
.35 
10.01 
15.00 
.40 
15.01 
20.00 
.45 
20.01 
25.00 
.50 
25.01 
30.00 
.55 
30.01 
35.00 
.60 
35.01 
40.00 
.65 
40.01 
45.00 
.70 
45.01 
50.00 
.75 
50.01 
55.00 
.80 
55.01 
60.00 
.90 
60.01 
65.00 
1.00 
65.01 
70.00 
1.10 
Phase-in 
Experience 
Factors 
2002 
and 
2003 
.38750 
.43125 
.47500 
.51875 
.56250 
.60625 
.65000 
.69375 
.73750 
.78125 
.82500 
.91250 
1.00000 
1.08750 
Phase-in 
Experience 
Factors 
2000 
and 
2001 
.4750 
.5125 
.5500 
.5875 
.6250 
.6625 
.7000 
.7375 
.7750 
.8125 
.8500 
.9250 
1.0000 
1.0750 
70.01 
75.00 
1.25 
1.21875 
1.1875 
75.01 
80.00 
1.40 
1.35000 
1.3000 
80.01 
85.00 
1.60 
1.52500 
1.4500 
85.01 
90.00 
1.90 
1.78750 
1.6750 
90.01 
95.00 
2.20 
2.05000 
1.9000 
95.01 
100.00 
2.60 
2.40000 
2.2000 
(3) 
+he Until January 1, 2008, the commissioner shall compute a reserve 
multiple to determine the schedule and planned yield in effect for a rate year. 
The reserve multiple is determined by dividing the fund reserve ratio by the 
average benefit cost rate. 
The determination date is October 31 st of each 
calendar year. 
The schedule and planned yield that apply for the 12-month 
period commencing every January 1st are shown on the line of the following 
table that corresponds with the applicable reserve multiple in column A, except 
that a planned yield of 1.1 % must be in effect for the 12-month period 
commencing January 1,2000. This subparagraph is repealed January 1, 2008. 
ABC 
Reserve 
Schedule 
Planned 
Multiple 
Yield 
Over 1.83 
A 
0.6% 
l.75 - 1.83 
B 
0.7% 
l.68 - 1.74 
C 
0.8% 
l.58 - 1.67 
D 
0.9% 
1.50 - 1.57 
E 
1.0% 
.50 - 1.49 
F 
1.1% 
.25 - .49 
G 
1.2% 
Under .25 
H 
1.3% 
C3-A) 
Beginning January 1, 2008, the commissioner shall compute a reserve 
multiple to determine the schedule and planned yield in effect for a rate year. The 
reserve multiple is determined by dividing the fund reserve ratio by the average 
benefit cost rate. The determination date is October 31 st of each calendar year. 
The schedule and planned yield that apply for the 12-month period commencing 
on January 1, 2008 and every January 1st thereafter are shown on the line of the 
following table that corresponds with the applicable reserve multiple in column 
A. 
A 
~ 
~ 
Reserve 
Schedule 
Planned 
Multiple 
Yield 
Over 1.58 
A 
0.6% 
1.50 - 1.57 
~ 
0.7% 
1.42 - 1.49 
~ 
0.8% 
1.33 - 1.41 
D 
0.9% 
1.25 - 1.32 
.50 - 1.24 
.25 -.49 
Under .25 
£; 
1.0% 
E 
1.1% 
G 
1.2% 
H 
1.3% 
(4) The commissioner shall compute the predetermined yield by multiplying the 
ratio of total wages to taxable wages for the preceding calendar year by the 
planned yield. 
(5) The commissioner shall determine the contribution rates effective for a rate 
year by multiplying the predetermined yield by the experience factors for each 
contribution category. Contribution category 20 in the table in subparagraph (2) 
must be assigned a contribution rate of at least 5.4%. The employer's experience 
factor is the percentage shown in column C in the table in subparagraph (2) that 
corresponds with the employer's contribution category in column A, except that 
the experience factors in column E must be used to determine the contribution 
rates for rate years 2000 and 2001 and those in column D must be used for rate 
years 2002 and 2003. 
(6) If, subsequent to the assignment of contribution rates for a rate year, the 
reserve ratio of an employer is recomputed and changed, the employer must be 
placed in the position on the schedule prepared pursuant to subparagraph (1) that 
the employer would have occupied had the corrected reserve ratio been shown on 
the schedule. The altered position on the schedule does not affect the position of 
any other employer. 
(7) In computing the contribution rates, only the wages reported by employers 
liable for payment of contributions into the fund and net benefits paid that are 
charged to an employer's experience rating record or to the fund are considered in 
the computation of the average benefit cost rate and the ratio of total wages to 
taxable wages. 
(8) Beginning January 1, 2008, all contribution rates must be reduced by the 
Competitiveness Training Fund predetermined yield as defined in section 1166, 
subsection 1, paragraph C, except that contribution category 20 under this 
paragraph may not be reduced below 5.4%. 
C. The commissioner shall: 
(1) Promptly notify each employer of the employer's rate of contributions as 
determined for the 12-month period commencing January 1st of each year. The 
determination is conclusive and binding upon the employer unless within 30 days 
after notice of the determination is mailed to the employer's last known address 
or, in the absence of mailing, within 30 days after the delivery of the notice, the 
employer files an application for review and redetermination, setting forth the 
employer's reasons. If the commission grants the review, the employer must be 
promptly notified and must be granted an opportunity for a hearing. 
An 
employer does not have standing in any proceedings involving the employer's 
rate of contributions or contribution liability to contest the chargeability to the 
employer's experience rating record of any benefits paid in accordance with a 
determination, redetermination or decision pursuant to section 1194, except upon 
the ground that the services for which benefits were found to be chargeable did 
not constitute services performed in employment for the employer and only when 
the employer was not a party to the determination, redetermination or decision or 
to any other proceedings under this chapter in which the character of the services 
was determined. The employer must be promptly notified of the commission's 
denial of the employer's application or the commission's redetermination, both of 
which are subject to appeal pursuant to Title 5, chapter 375, subchapter ¥II 1; 
and 
(2) Provide each employer at least monthly with a notification of benefits paid 
and chargeable to the employer's experience rating record. In the absence of an 
application for redetermination filed in the manner and within the period 
prescribed by the commission, a notification is conclusive and binding upon the 
employer for all purposes. A redetermination made after notice and opportunity 
for hearing and the commission's findings of fact may be introduced in 
subsequent administrative or judicial proceedings involving the determination of 
the rate of contributions of an employer for the 12-month period commencing 
January 1 st of any year and has the same finality as provided in this section with 
respect to the findings of fact made by the commission in proceedings to 
redetermine the contribution rates of an employer. 
D. 
Notwithstanding the provisions of this subsection, contributions may not be 
reduced by the Competitiveness Training Fund predetermined yield as defined in 
section 1166, subsection 1, paragraph C for any rate year in which contribution rate 
schedule H under paragraph B is to be in effect. 
Sec. A-3. 26 MRSA c. 25, sub-c. 5 is enacted to read: 
SUBCHAPTER 5 
COMPETITIVENESS TRAINING PROGRAM 
§2033. Competitiveness Training Program 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Department" means the Department of Labor. 
B. "Fund" means the Competitiveness Training Fund established in accordance with 
section 1166. Money in the fund may be used to pay for the operation, services and 
assistance provided through the Competitiveness Training Program as well as certain 
costs associated with the administration of the program. 
C. "Participant" means an eligible individual enrolled in the program. 
D. "Plan" means the individual career plan that must be provided to each eligible 
participant in accordance with subsection 8. 
E. "Program" means the Competitiveness Training Program established in subsection 
b 
2. 
Program established. 
The department shall establish and administer an 
employment training program known as the Competitiveness Training Program. The 
purpose of the program is to provide individuals with access to education, training and 
support leading to skilled, well-compensated jobs with anticipated high employment 
demand, to improve the economic well-being of the participants in the program and to 
provide employers with a skilled labor force in accordance with the provisions of this 
section. 
The commissioner may expend funds through the department's career centers from the 
fund for the costs of education, training and support in accordance with subsection 6, for 
career counseling and for the administration of the program. Career counseling must 
include developing a plan and assisting a participant in accessing the support necessary 
for the participant to participate in the plan. The commissioner shall establish a limit on 
or a formula that limits the proportion of program funds that are expended on career 
counseling and for administration. 
3. Notice. The department shall provide notice, including individual written notice, 
signs and other effective outreach methods, to inform people of the program and the 
education, training and support available from or through the program to individuals 
seeking work, education or training in the department's career centers. 
4. Criteria for education and training approved under the program. Education 
or training for a participant must meet the criteria set out in this subsection. 
A. The education or training provided through the program must be for employment 
in industries with significant demand for skilled labor that have been: 
(1) Identified by the Division of Labor Market Information Services as providing 
opportunity for employment in jobs with high compensation; 
(2) Recommended by the Maine Jobs Council; and 
(3) Approved by the Governor or the Governor's designee. 
B. Education or training approved under this section must result in a postsecondary 
certificate, degree or similar credential that is universally recognized and accepted by 
the trade or industry in which the participant intends to seek employment and that is 
likely to provide opportunity for employment in jobs that will provide substantial 
improvement in the participant's earnings and benefits. 
5. Eligibility criteria. Within the limits of available program resources, enrollment 
in the program must be granted if the individual applying for enrollment: 
A. Is at least 18 years old; 
B. Does not have a marketable postsecondary degree; 
C. 
Has income less than 200% of the federal poverty level for the family size 
involved; 
D. Is applying for education or training for a job in an industry approved under 
subsection 4; and 
E. Has the aptitude to undertake and complete education or training as determined by 
the institution providing the education or training. 
6. Provision of education, training and support. Payment for education, training 
and support included in a participant's plan must be furnished promptly to, or on behalf 
of, a participant. 
A. The program must provide to a participant, in accordance with rules adopted by 
the department, when those supplies and services are not reasonably available from 
another recognized program and are necessary to cany out that participant's plan: 
(1) Books, supplies, tools and equipment required by the participant's plan; 
(2) Child care, transportation and other necessary support as determined by the 
department; and 
(3) Assistance needed to obtain remedial or prerequisite education necessary for 
the participant to participate successfully in the program. 
Money for mandatory fees or tuition may not be provided unless the participant is not 
eligible for necessary funds from other public grants or scholarships reasonably 
available to the participant for this purpose. 
B. 
The department shall establish by rule a maximum limit on the amount of 
assistance available to participants. This limit may be waived by the commissioner if 
the commissioner determines it is necessary, prudent and consistent with the goals of 
the program under the circumstances. 
7. Application; decision; appeal. An individual must be given the opportunity to 
make a written application for education, training and support available from the program 
and be given a prompt written decision from the department specifically indicating the 
type and amount of services approved or denied. Any decision related to eligibility for, 
or the provision of, services under this section must provide notice that the decision may 
be appealed by the individual through a request for a hearing within 30 days of receipt of 
the decision in accordance with rules adopted by the department and consistent with Title 
5, chapter 375, subchapter 4. The 30-day appeal period may be extended up to 15 
additional days if the claimant can show good cause for failing to appeal within the initial 
30-day period. 
8. Individual career plan. This subsection governs the development of a plan for a 
participant. 
A. When an individual's application for the program is approved, the individual must 
receive an individual career plan that must be consistent with the provisions of this 
section and reflect, to the maximum extent feasible, the preferences of the participant. 
A plan may be modified when necessary to assist a participant to participate 
successfully in the program. The plan must include the education or training program 
approved, the degree or credential expected at program completion and the services 
to be provided under the plan. 
B. Prior to the establishment of a plan, a participant must be given: 
(1) A complete list of all education, training and support available from the 
program, including nontraditional employment opportunities, so that the 
participant may identify a suitable employment goal and the services needed to 
participate in the program; 
(2) 
The opportunity to learn about and examme relevant labor market 
information related to identified industries and the participant's employment 
preference; 
(3) 
If the participant's employment goal is an occupation for which an 
apprenticeship 
may be available, 
information 
about 
the 
department's 
apprenticeship program under chapter 33; and 
(4) Information about and assistance in applying for other services that will 
assist the participant in succeeding in the plan and prevent any unnecessary 
expenditure of resources by the program, including federal financial aid provided 
under the federal Higher Education Act of 1965, 20 United States Code, Chapter 
28; the state and federal earned income tax credit; health care resources; 
unemployment compensation; dislocated worker benefits; trade adjustment 
assistance; and other services available from other departments of State 
Government including the Department of Health and Human Services. 
9. Rules. The commissioner shall adopt rules to implement the program in a manner 
that maximizes successful education and training opportunities for participants and to 
provide for its fair and efficient administration in accordance with this section. Rules 
adopted under this subsection are routine technical rules and must be adopted III 
accordance with Title 5, chapter 375, subchapter 2-A. 
10. Monitoring, evaluation and annual report. The department shall implement a 
comprehensive evaluation strategy that evaluates the fund, using both quantitative and 
qualitative data and including an analysis of the return on investment in the fund. The 
evaluation must consider, at a minimum, the following factors: the value of total 
compensation, including, but not limited to, health insurance and other benefits to those 
participating in training; the impact of the program on the Unemployment Compensation 
Fund; the impact on productivity and performance for employers; and the impact on 
meeting the demand for skilled workers in industries in this State. The evaluation must 
measure the impact of the program over time, including a longitudinal analysis that 
captures productivity and other outcomes related to the program. The department must 
submit a report to the joint standing committee of the Legislature having jurisdiction over 
labor matters by February 1st of each year on the status of the program and on the 
evaluation data collected and analyzed. 
PART 8 
Sec. 8-1. 26 MRSA §1l93, sub-§9, as enacted by PL 1981, c. 149, §4, 1S 
repealed. 
Sec. 8-2. 26 MRS A §1193, sub-§10 is enacted to read: 
10. Receiving pension. Except as provided in this subsection, for any week with 
respect to which the individual is receiving a governmental or other pension, retirement 
or retired pay, annuity or any other similar periodic payment under a plan maintained or 
contributed to by a base period or chargeable employer. 
A. The individual receives benefits with no reduction under this subsection if: 
(1) The individual is receiving a pension paid under the United States Social 
Security Act or any other pension or plan to which the individual made at least 
50% of the contributions; 
(2) All contributions to the plan were made by the individual and an employer or 
any other person or organization who is not a base period or chargeable 
employer; or 
(3) The services performed for the employer by the individual during the base 
period, or remuneration received for these services, did not affect the individual's 
eligibility for, or increase the amount of, that pension, retirement or retired pay, 
annuity or similar payment. 
B. If the individual contributed to the plan, but not at least 50% of the contributions, 
the individual receives a benefit reduced by the prorated. weekly amount of the 
pension after deduction of that portion of the pension that is directly attributable to 
the percentage of the contributions made to the plan by that individual. The benefit 
may not be reduced below zero. 
PARTC 
Sec. C-l. 26 MRSA §1192, sub-§3, ~A, as amended by PL 2005, c. 454, §1, is 
further amended to read: 
A. 
Notwithstanding this subsection, beginning January 1, 2004, an individual who 
is not available for full-time work as required in this subsection is not disqualified 
from receiving benefits if: 
(1) The individual worked less than full time for a majority of the weeks during 
that individual's base period and the individual is able and available for and 
actively seeking part-time work for at least the number of hours in a week 
comparable to those customarily worked in part-time employment during that 
individual's base period; or 
(2) The individual worked full time for a majority of the weeks during that 
individual's base period, but is able and available for and actively seeking only 
part-time work because of the illness or disability of an immediate family 
member or because of limitations necessary for the safety or protection of the 
individual or individual's immediate family member. 
This paragraph does not apply to a person who applies for benefits after September 
30, 2008. This paragraph 60ntiflHes to apply to a person '""ho applies for benefits on 
or before SE!ifltember 30, 2008 tlntil that person has eJffiatlsted benefits payable tlflder 
that application. 
PARTD 
Sec. D-l. Money credited to State of Maine account in Unemployment 
Trust Fund under Section 903( d) of federal Social Security Act. 
Money 
credited to the account of the State of Maine in the federal Unemployment Trust Fund by 
the United States Secretary of the Treasury on March 13,2002 pursuant to Section 903(d) 
of the federal Social Security Act may not be requisitioned from the State's account or 
used except for the payment of benefits and for the payment of expenses incurred for the 
administration of the State's unemployment compensation law and public employment 
offices. Money used for the payment of benefits is requisitioned as defined in the Maine 
Revised Statutes, Title 26, section 1162. Money requisitioned and used for the payment 
of expenses incurred for the administration of the State's unemployment compensation 
law and public employment offices requires a specific appropriation by the Legislature as 
provided in section 2 of this Part. That use is permissible only if the expenses are 
incurred and the money is requisitioned after the effective date of a law making an 
appropriation that specifies the purposes for which the money is appropriated and the 
amounts appropriated for those purposes. Any amount that may be obligated under such 
an appropriation is limited to an amount that does not exceed the amount by which the 
aggregate of the amounts transferred to the account of the State of Maine pursuant to 
Section 903( d) of the federal Social Security Act exceeds the aggregate of the amounts 
used by the State pursuant to this Part and charged against the amounts transferred to the 
account of the State of Maine. 
For purposes of this section, the amounts obligated under an appropnatlOn for 
administrative purposes must be charged against transferred amounts at the exact time the 
obligation is entered into. 
The appropriation, obligation and expenditure or other 
disposition of money appropriated under this section must be accounted for in accordance 
with standards established by the United States Secretary of Labor. Money appropriated 
as provided in this Part for the payment of administration must be requisitioned as needed 
for the payment of obligations incurred under the appropriation and, upon requisition, 
must be deposited in the Employment Security Administration Fund from which 
payments are made. Money so deposited must, until expl: .. ded, remain a part of the 
unemployment fund and, if it will not be immediately expended, must be returned 
promptly to the account of the State of Maine in the federai Unemployment Trust Fund. 
Sec. D-2. Allocation maintaining state unemployment compensation and 
public employment system. There is allocated out of funds made available to the 
State under Section 903(d) of the federal Social Security Act, as amended, the sum of 
$5,200,000 in accordance with section I, to be used under the direction of the Maine 
Department of Labor, for the purpose of maintaining and operating the State's 
unemployment compensation and public employment system. The uses include making 
needed technological improvements and upgrades to the unemployment insurance, 
employment services and labor market information services computer systems as they 
pertain to the analysis of unemployment information. It also includes administrative 
funding to help unemployment benefit recipients return to work more quickly. 
The amount obligated pursuant to this Part may not exceed at any time the amount by 
which the aggregate of the amounts transferred to the account of the State of Maine 
pursuant to Section 903( d) of the federal Social Security Act exceeds the aggregate of the 
amounts obligated for administration and paid out for benefits and required by law to be 
charged against the amounts transferred to the State of Maine account. 
SUMMARY 
Part A establishes the Competitiveness Training Program to provide access to 
education, training and supports 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 
designated by the department. Part A also establishes the Competitiveness Training Fund. 
This fund receives payments from employers that are paid simultaneously with their 
unemployment insurance contributions. These payments are offset by a reduction in their 
unemployment insurance contributions. The net effect on employers of the fund payments 
and the reduction in unemployment compensation contributions is zero. 
Part A also reduces the benefit reserve cap on the Unemployment Trust Fund from 21 
months to 18 months, giving employers a reduction in unemployment taxes for the first 2 
years following implementation. 
Part B eliminates the pension offset against unemployment benefits for persons who 
receive social security or any other pension or plan to which the individual made at least 
50% of the contributions. If the person contributed some amount to the pension, but less 
than 50%, the offset is made after deduction of that portion of the pension that is directly 
attributable to the percentage of the contributions made to the pension by that person. 
Part C provides for the continuation of the unemployment compensation provision 
that permits certain people who are able and available for part-time work to receive 
unemployment benefits. 
Part D provides for the distribution to the Department of Labor federal funds under 
the Reed Act. In 2002, Maine received $32,486,816 in Reed Act funds. Under federal 
law, these funds may be used only to maintain the State's unemployment and public 
employment system or to pay regular unemployment benefits. Part D authorizes the use 
of $5,200,000 of Reed Act funds to make 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 pertain 
to the analysis of unemployment and employment data. Additionally, a portion of these 
funds will be used to pay the administrative costs associated with helping unemployment 
benefit recipients return to work more quickly and to reduce the benefit costs of the 
unemployment insurance program.