An Act To Reaffirm Maine's Commitment to Business by Amending the Pine Tree Development Zone Laws
Maine Legislature, Session 124, LD 1473
Committee Amendment CA_A_H570 (House)
Amends: 5 MRSA §1710-F, 30-A MRSA §5250-I, 30-A MRSA §5250, 30-A MRSA §5250-J, 30-A MRSA §5250-K, 30-A MRSA §5250-L, 36 MRSA §2016, 36 MRSA §6753, 36 MRSA §6754, 36 MRSA §6758

COMMITTEE AMENDMENT" A" to H.P. 1024, L.D. 1473, Bill, "An Act To 
Reaffirm Maine's Commitment to Business by Amending the Pine Tree Development 
Zone Laws" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 5 MRSA §1710-F, sub-§2, as amended by PL 1997, c. 157, §1, is further 
amended to read: 
2. Biennial revenue projections. The committee shall submit recommendations for 
state revenue projections for the next 2 fiscal biennia and analyze revenue projections for 
the current fiscal biennium, which must be approved by a majority of the committee 
members. No later than December 1st of each even-numbered year, the committee shall 
submit to the Governor, the Legislative Council, the joint standing committee of the 
Legislature having jurisdiction over appropriations and fmancial affairs and the State 
Budget Officer a report that presents the analyses, fmdings and recommendations for 
General Fund and Highway Fund revenue projections for the next 2 fiscal biennia. In its 
report the committee shall fully describe the methodology employed in reaching its 
recommendations. Revenue projections for other funds of the State may be included in 
the report at the discretion of the committee. Revenue projections for the General Fund 
may not include revenue that accrues pursuant to Title 30-A, section 5250-1, subsection 
and is deposited into the PineTree Development Zone Reserve Fund pursuant to Title 
30-A, section 5250-J, subsection 4-B that would not have accrued to the State but for the 
availability of Pine Tree Development Zone benefits as stated in Title 30-A, section 
5250-1, subsection 17, paragraph A, 
Sec. 2. 30-A MRSA §5250-I, sub-§2, as enacted by PL 2003, c. 688, Pt. D, §2, is 
repealed. 
Sec. 3. 30-A MRSA §5250-I, sub-§4, as amended by PL 2009, c. 21, §1, is 
further amended to read: 
COMMITTEE AMENDMENT 
~ 
~, 
COMMITIEE AMENDMENT·A "to H.P. 1024, L.D. 1473 
4. Base level of employment. "Base level of employment" means the greater of 
either the total employment in the State of a business as of March 31st, June 30th, 
September 30th and December 31 st of the calendar year immediately preceding the year 
of the business's application to become a certified Pine Tree Development Zone business 
divided by 4 or its average employment during the base period. Pursuant to' section 
5250-J, subsection 4-A, "base level of employment" may be adjusted to mean 25% of the 
average number of employees of that business over the 3 months immediately preceding 
the catastrophic occurrence. 
Pursuant to section 5250-J, subsection 4-C, "base level of employment" must be adjusted 
for a qualified business that has more than one location in the State and creates 250 or 
more jobs at one of these locations, so that the base level of employment is calculated 
from the location of the significant employment expansion of 250 jobs or more on the 
basis of that specific location. 
Sec. 4. 30-A MRSA §5250-I, sub-§9, as enacted by PL 2003, c. 688, Pt. D, §2, is 
amended to read: 
9. Labor market average weekly wage. "Labor market average weekly wage" 
means the average weekly wage as published by the Department of Labor for the labor 
market or markets in which potential qualified Pine Tree Development Zone employees 
are located for the 12 most recently reported months preceding the date of application fef 
none desi21lation. 
Sec. 5. 30-A MRSA §5250-I, sub:-§10, as enacted by PL 2003, c. 688, Pt. D, §2, 
is amended to read: 
,.' 
'') 
,.' 
.. Labor market unemployment rate. "Labor market unemployment rate" means 
. 
the average unemployment rate as published by the Department of Labor for the labor 
) 
market or markets in which potential qualified Pine Tree Development Zone employees 
. 
are located for the 12 most recently reported months preceding the date of application fef 
none desi21lation. 
Sec. 6. 30-A MRSA §5250-I, sub-§l1, as enacted by PL 2003, c. 688, Pt. D, §2, 
is repealed and the following enacted in its place: 
11. Manufacturing. "Manufacturing" means: 
A. The production of tangible personal property intended to be sold or leased 
ultimately for [mal use or consumption; 
B. The production of tangible personal property pursuant to a contract with the 
Federal Government or any agency thereof; or 
C. To make, process, convert or transform raw materials, components or parts into 
finished goods or products for final use or consumption to meet customer 
expectations or specifications. 
Sec. 7. 30-A MRSA §5250-][, sub-§l1-A, as enacted by PL 2005, c. 650, §1, is 
amended to read: 
ll-A. Military redevelopment zone. 
"Military redevelopment zone" means a 
specified area within a municipality that is contained within a labor market that includes a 
military facility that sustained a loss of 400 or more employed workers, if the loss was 
COMMITTEE AMENDMENT 
~~co. 
(~"1 
..., 
I 
COMMITIEE A1vIENDMENT·A "to H.P. 1024, L.D. 1473 
caused by a federal military facility closure or downsizing, during the 5-year period 
immediately preceding the time of application for designation as a military 
redevelopment zone, or is projected to sustain a loss of 400 or more employed workers 
during the 5-year period immediately following the time of application, and has been 
designated by the commissioner as a military redevelopment zone under section 5250-J, 
subsection ~ 
3-A. 
Sec. 8. 30-A MRSA §5250-I, sub-§13, as enacted by PL 2003, c. 688, Pt. D, §2, 
is amended to read: 
13. Pine Tree Development Zone. "Pine Tree Development Zone" or "zone" means 
a specified area within the boundaries of a unit of local government, or '.vithin the 
bOl:Hldaries of cooperating units of local government in a m-ultijurisdictional application, 
the State that has been designated by the commissioner as a Pine Tree Development Zone 
in accordance with section 5250-J, subsection 3-A or 3-B. 
Sec. 9. 30-A MRSA §5250-I, sub-§19, as enacted by PL 2003, c. 688, Pt. D, §2, 
is amended to read: 
19. State average weekly wage. "State average weekly wage" means the average 
weekly wage as published by the Department of Labor for the State as a whole for the 12 
most recently reported months preceding the date of application for zone desilIDation. 
Sec. 10. 30-A MRSA §5250-I, sub-§20, as enacted by PL 2003, c. 688, Pt. D, 
§2, is amended to read: 
20. 
State unemployment rate. 
"State unemployment rate" means the average 
unemployment rate published by the Department of Labor for the State as a whole for the 
most recently reported months preceding the date of application for zone desilIDation. 
Sec. 11. 30-A MRSA §5250-I, sub-§21-A is enacted to read: 
21-A. 
Tier 1 location. 
"Tier 1 location" means a location designated by the 
department.to be eligible for Pine Tree Development Zone benefits for a period of 10 
years. 
Sec. 12. 30-A MRSA §5250-I, sub-§21-B is enacted to read: 
21-B. 
Tier 2 location. 
"Tier 2 location" means a location designated by the 
department to be eligible for Pine Tree Development Zone benefits for a period of 5 
years. After the 5 years, all Pine Tree Development Zone benefits expire, except for the 
expanded employment tax increment fmancing benefits under Title 36, chapter 917, 
which must be recalculated at that time to reflect the standard rates under that chapter. 
Sec. 13. 30-A MRSA §5250-J, sub-§l, as amended by PL 2007, c. 466, Pt. A, 
§53, is repealed. 
Sec. 14. 30-A MRSA §5250-J, sub-§2, as enacted by PL 2003, c. 688, Pt. D, §2, 
is amended to read: 
2. Requirements for designation. The commissioner shall adopt rules establishing 
the minimum requirements for the designation of Pine Tree Development Zones pursuant 
to subsections 3-A and 3-B. Additionallv. each narticinatin!! unit of local !!overmnent 
COMMITTEE AMENDMENT 
~Ql~ 
COMMITTEE AMENDMENT·A "to H.P. 1024, L.D. 1473 
must agree to maintain at least one prepermitied construction or development site 
available vlithin the zone on a continual basis throughout the term of the zone. 
Sec. 15. 30-A MRSA §5250~J, sub-§2-A, as enacted by PL 2005, c. 650, §5, is 
repealed. 
Sec .. ,16. 30-A MRSA §5250-J, sub-§3, as amended by PL 2005, c. 650, §6 and 
c. 669, §1, is further amended to read: 
3. Limitations. The designation of Pine Tree Development Zones is subject to the 
following limitations: 
A. 
The total area of a zone may not e1weed 5,000 acres, which need not be 
contiguous. 
In calculating the 5,000 acre limit, only developable acres may be 
counted; 
B. A zone located in AFoostook County as described in subsection 1, paragraph A .. 
may include property that is also included ';vithin the Aroostook County 
Empowerment Zone as designated by the federal COmniunity Rene'NaI Tffi( Relief 
l"Lct of2000, Public Law 106 554; 
C. Pine Tree Development Zone benefits may not be used to encourage or facilitate 
the transfer of existing positions or property of a qualified business or affiliated 
businesses to a qualified business activity from a nonqualified activity elsewhere in 
the State; 
D. Pine Tree Development Zone benefits may not be provided based upon any 
property, employees or positions transferred by the business or affiliated businesses 
to a qualified business activity from a nonqualified activity; and 
F. One or more qualified Pine Tree Development Zone business activities must be a 
permissible activity in the Pine Tree Development Zonet.:. 
G. Except for a military redevelopment zone established pursuant to subsection 1, 
paragraph P, all property included v/ithin a Pine Tree Development Zone must meet 
one' of the follovling: 
(1) The property is located v/Hhin a market area for which the labor market 
unemployment rate is greater than the state unemployment rate at the time of the 
application; or 
(2) The property is included \vithin a county in which the average weekly '.vage 
is belm" the state a·ierage vleekly wage 'at the time of the application. 
In the case of a multijurisdictional or joint application, the requirements of this 
paragraph are met if the combined unemployment rate of the cooperating units of 
local gO''1ernment meets the requirements of subparagraph (1) or the average weekly 
wage of the cooperating units of local government, on a per employed worker basis, 
meets the requirements of subparagraph (2); and 
H. The restrictions contained in paragraph G may be '""aived for: 
(1) Property that is contained within a labor market area that has sustained a 
eeater than 5% loss of nODulation or emDloved vlOrkers durin!! the 3 vear Deriod 
COMMITTEE AMENDMENT 
') 
) 
<;: 
~~c;,. 
(/--'\, 
COMMI1TEE AMENDMENT "A" to H.P. 1024, L.D. 1473 
immediately preceding the time of application if the loss Vlas caused by business 
closinf1's: or 
~ 
. ~2) 
Property that is contained· within an i d 
. 
. 
. 
mfrastructure and zoning or other land use re 
n}lstn.al site Vlrth appropriate 
a minimum loss of 500 employed nr I 
d g~latlOns m place that has sustained 
.. 
d' 
. 
y,OHerS urmg the 5 year 
. d' 
. 
prece mg the time of application as Ion 
:: peno lIBffiedlately 
; 
this sulJp",-" is re •• Wed I>y A.,g.s! Ig 
~I'::' ~:'~atJOH for a waiver lffidor 
a base level of employment e~al to' 
.' 
.n ! a qualIfied business vlith 
Develonment Zone benefits undeq thO 
bzero IS ehgIble to receive Pine Tree 
r 
IS su nara2i'B:Bh. 
Sec. 17. 30-A MRSA §5250-J, sub-§3-A is enacted to read: 
3-A. Pine Tree Development Zone classification; tier 1 locations. Beginning 
January 1. 2009, the department shall classify the following units of local government on 
an annual basis as tier 1 locations: 
A. From January 1, 2009 to December 31, 2009, all units onocal government; and 
B. Beginning January 1, 2010, a unit of local government that is contained in a 
county other than Cumberland County or York County, as well as a unit of local 
government that is contained in Cumberland County or York County with a 
municipal unemployment rate that is 15% higher than its labor market unemployment 
rate, based upon data published by the Department of Labor from the last completed 
calendar year. 
A unit of local government that has been designated by the department as a participating 
municipality in the Pine Tree Development Zone program as of December 31, 2008 will 
be classified as a tier 1 location. 
Property within a military redevelopment zone as long as the property is classified by the 
department no later than December 31, 2018. 
Sec. 18. 30-A MRSA §5250-J, sub-§3-B is enacted to read: 
3-B. Pine Tree Development Zone classification; tier 2 locations. Beginning 
January 1, 2010, the department shall classify the following units onocal government on 
an annual basis as tier 2 locations: 
A. All units of local government contained in Cumberland County or York County 
that are not classified as tier 1 locations pursuant to subsection 3-A. 
Sec. 19. 30-A MRSA §5250-J, sub-§4, as enacted by PL 2003, c. 688, Pt. D, §2, 
is repealed. 
Sec. 20. 30-A MRSA §5250-J, sub-§4-B is enacted to read: 
4-B. Pine Tree Development Zone Reserve Fund established. The Pine Tree 
Development Zone Reserve Fund, referred to in this subsection as "the fund," is 
established as a nonlapsing fund to capture all net positive revenues pursuant to section 
5250-1, subsection 14 that accrue to the State and that would not have accrued to the State 
but for the availability of Pine Tree Development Zone benefits as stated in section 
5250-1, subsection 17, paragraph A. The Office of the State Controller shall administer 
the fund, which notwithstanding Title 5, section 1666 is not subject to legislative 
COMMITTEE AMENDMENT 
~~<o. 
COMMITIEE AMENDMENT "A "to H.P. 1024, L.D. 1473 
allocation. The fund must be established and held separate from any other fund and used 
and administered exclusively for the purposes of this section. The fund consists of all 
revenues received pursuant to section 5250-1, subsection 14. 
The State Tax Assessor shall identify all revenues that accrue to the State pursuant to 
section 5250-1, subsection 14 and deposit them into the fund. The State Controller shall 
transfer or authorize the transfer of funds from the fund in accordance with Title 36, 
sections 2016 and 6758 and any other relevant provisions. Any excess revenues not 
transferred pursuant to this section must be deposited by the State Controller into the 
General Fund. 
Sec.21. 30-A MRSA §5250-J, sub-§4-C is enacted to read: 
4-C. Significant employment expansion; Pine 'free Development Zone benefits. 
A qualified Pine Tree Development Zone business that expands its employment at one of 
its locations in the State may apply for an adjustment of the base level of employment if 
it: 
A. Has more than one location in the State; 
B. Creates 250 or more jobs at one location; 
C. 
Maintains its total employment in the State above 50% of its growth at the 
location of the employment expansion; and 
D. Has appropriate infrastructure and zoning or other land use regulations in place. 
For purposes of this section and calculation of Pine Tree Development Zone benefits in 
section 5250-1, subsection 14, the base level of employment must be calculated from the 
location where the business produces significant erriployment expansion of 250 jobs or 
more. The department shall determine on an annual basis if the business has produced 
significant employment expansion. If the department determines that the business does 
not meet the requirements of this section and its total employment in the State falls below 
50% of its growth at this location of expansion, the business may not receive the 
adjustment pursuant to this section and the department shall calculate the base level of 
employment pursuantto section 5250-1, subsection 4. 
Sec. 22. 30-A MRSA §5250-J, sub-§5, as enacted by PL 2003, c. 688, Pt. D, §2, 
is repealed and the following enacted in its place: 
5. Termination. A qualified Pine Tree Development Zone business located in a tier. 
location may not be certified under this subchapter after December 31, 2018, and a' 
qualified Pine Tree Development Zone business located in a tier 2 location may not be 
certified under this subchapter after December 31, 2013. All Pine Tree Development 
Zone benefits provided under this subchapter are terminated on December 31,2028. 
Sec. 23. 30-A MRSA §5250-K, as amended by PL 2005, c. 351, §6 and affected 
by §26, is repealed. 
Sec. 24. 30-A MRSA §5250-L, as enacted by PL 2003, c. 688, Pt. D, §2, is 
repealed. 
Sec. 25. 36 MRSA §2016, sub-§6, as enacted by PL 2005, c. 351, §9 and 
affected by§26, is amended to read: 
COMMITTEE AMENDMENT 
) 
) 
') 
./ 
.~ ft~" 
( 
\~ 
i., 
.7 
COMMITTEE AMENDillNT·A "to H.P. 1024, L.D. 1473 
6. Payment of claims. The State Tax Assessor shall determine the benefit for each 
claimant under this section and certify to the State Controller the amount to be transferred 
from the Pine Tree Development Zone Reserve Fund, established pursuant to Title 30-A, 
section 5250-J, subsection 4-B, to the Pine Tree Development Zone reimbursement 
reserve account established, maintained and administered by the State Controller from 
General Fund undedicated revenue within the sales tax category. The assessor shall pay 
the certified amounts to each approved applicant qualifying for the benefit under this 
section within 30 days after receipt of a properly completed claim. Interest is not allowed 
on any payment made to a claimant pursuant to this section. 
Sec. 26. 36 MRSA §6753, sub-§4, as amended by PL 2009, c. 21, §6, is repealed 
and the following enacted in its place: 
4. ,Base level of employment. "Base level of employment" means the greater of 
either the total employment of a business as of the March 31 st, June 30th, September 30th 
and December 31 st of the calendar year immediately preceding the application for 
approval of the employment tax increment financing development program divided by 4 
or its average employment during the base period. 
A. 
Pursuant to Title 30-A, section 5250-J, subsection 4-A, "base level of 
employment" may be adjusted to mean 25% of the average number of employees of 
that business over the 3 months immediately preceding the catastrophic occurrence. 
B. 
Pursuant to Title 30-A, section 5250-J, subsection 4-C, "base level of 
employment" must be adjusted to be calculated from the location where the business 
produced the significant employment expansion of 250 jobs or more. 
Sec. 27. 36 MRSA §6754, sub-§l, ~, as amended by PL 2003, c. 688, Pt. D, 
§6, is further amended to read: 
D. For qualified Pine Tree Development Zone employees, as defmed in Title 30-A, 
section 5250-I, subsection 18, employed directly in the qualified business activity of 
a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 
5250-I, subsection 17, for whom a certificate of qualification has been issued in 
accordance with Title 30-A, section 5250-0, the reimbursement under this subsection 
is equal to 80% of the withholding taxes withheld each year for which reimbursement 
is requested and attributed to those qualified employees for a period of no more than 
years for tier 1 locations and no more than 5 years for tier 2 locations. In no event 
may reimbursement under this subsection be paid for years beginning after December 
31,~2028. 
Sec. 28. 36 MRSA §6758, sub-§3, as enacted by PL 1995, c. 669, §5, is amended 
to read: 
3. Deposit and payment of revenue. On or before June 30th of each year, the 
Commissioner of Administrative and Financial Services shall deposit from the Pine Tree 
Development Zone Reserve Fund, established pursuant to Title 30-A, section 5250-J, 
subsection 4-B, an amount equal to the total retained employment tax increment revenues 
for the preceding calendar year for approved employment tax increment fmancing 
programs in the state employment tax increment contingent account established, 
maintained and administered by the Commissioner of Administrative and Financial 
Services. On or before July 31 st of each year, the Commissioner of Administrative and 
COMMITTEE AMENDMENT 
~~~ 
COMMITIEE AMENDMENT "A" to H.P. 1024, L.D. 1473 
Financial Services shall pay to each approved qualified business an amount equal to the 
retained employment tax increment revenues for the preceding calendar year.' 
SUMMARY 
This amendment makes the following changes to the Pine Tree Development Zone 
laws. 
1. Beginning January 1, 2009 to December 31, 20()9, it allows for all units of local 
government statewide to be considered tier 1 locations, where qualified businesses may 
become eligible for Pine Tree Development Zone benefits for a period of 10 years. 
2. Beginning January 1, 2010, it allows a unit of local government that is contained, 
in a county other than Cumberland County or York County, as well as a unit of local 
government that is contained in Cumberland County or York County with a municipal 
unemployment rate that is 15% higher than its labor market unemployment rate, a unit of 
local government that has been designated by the DepartInent of Economic and 
Community Development as a participating municipality in the Pine Tree Development 
Zone program as of December 31, 2008 and property within a military redevelopment 
zone to be classified as a tier 1 location, where qualified businesses may become eligible 
for Pine Tree Development Zone benefits for a period of 10 years. 
3. 
Beginning January 1, 2010, it allows any unit of local government that is 
contained in Cumberland County or York County that is not classified as a tier 1 location 
to be classified as a tier 2 location, where qualified businesses may become eligible for 
Pine Tree Development Zone benefits for a period of 5 years. After the 5 years, all Pine 
Tree Development Zone benefits expire, except for the expanded employment tax 
increment fmancing benefits under the Maine Revised Statutes, Title 36, chapter 917, 
which must be recalculated at that time to reflect the standard rates under that chapter. 
4. It extends the duration of benefits through the year 2028. 
5. 
It allows significant business development projects to have a base level of 
employment adjustment, determined by a single location versus a statewide aggregate. 
6. It amends the definition of "manufacturing." 
7. It repeals several provisions of the Pine Tree Development Zone laws that relate to 
the designation of zones that are no longer necessary. 
8. It establishes the Pine Tree Development Zone Reserve Fund as a nonlapsing fund 
to capture all net positive revenues gained by the program that accrue to the State and that 
would not have accrued to the State but for the availability of Pine Tree Development 
Zone benefits. 
FJrSCAL NOTE REQUltE:JJ 
, 
(~ee attached) 
COMMITTEE AMENDMENT 
) 
") 
i 
) 
~\ 
( 
,) 
Revised: 0611 0/09 ;:!:Pac:.. 
LD 1473 
LR 1987(02) 
An Act ToReaffir~ Maine's Commitment to Business by Amending the Pine Tree Development Zone 
Laws 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Notefor Bill as Amended by Committee Amendment ,A" 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
$0 
2010-11 
$412,916 
Projections 
2011-12 
$788,749 
Other Special Revenue Funds 
$0 
$0 
($412,916) 
($21,732) 
($788,749) 
($41,513) 
Fiscal Detail and Notes 
Projections 
2012-13 
$1,166,285 
($1,166,285) 
($61,383) 
This expansion of Pim: Tree Development Zone benefits will result in reductions of sales tax revenue from 
exemptions for purchases of certain building materials and tangible personal property purchased by qualified 
businesses. Individiual and corporate income tax~s will be also be reduced by credits and Maine Employment Tax 
Inc~ement Financing equal to 80% of qualified employees' state income tax withholding reimbursed to qualified 
businesses. 
This bill will set aside revenue reSUlting from any new economic activity that would not have occurred but for the 
availability of Pine Tree Development Zone benefits. The amount of the initial reduction of General Fund revenue 
that will be deposited in the Pine Tree Development Zone Fund can not be estimated at this time as it will depend on 
the amount of additional economic activity that has already occurred or will occur as a result fo the Pine Tree 
Development Zone benefits and a calculation of the resulting revenue generated by that economic activity. This 
would need to be determined within the State's economic and revenue forecasts. The revenue not required to 
administer and provide benefits under the Pine Tree Development Zone program would be transferred back to the 
General Fund. 
LRI987(02) - Fiscal Note - Page I of2 
',., 
, 
CA (H-57D) 
Based on the current economic and revenue forecasts, this bill will result in net reductions of budgeted General Fund 
\ 
revenue beginning in fiscal year 2010-11. The total General Fund revenue loss is estimated at $412,916 in fiscal year . 
2010-11, $788,749 in fiscal year 2011-12 and $1,166,285 in fiscal year 2012-13. Local Government Fund revenue 
, 
, will ~Iso be reduced by $21,732 in fiscal year 2010-11 and proportionately to the General Fund revenue loss in futu 
') , 
fiscal years. 
. 
The amount of the additional administrative costs incurred by Maine Revenue Services to detennine the amount of 
revenue accruing from Pine Tree Development Zones can not be detennined at this time. 
LRI987(02) - Fiscal Note - Page 2 of2 
') 
, .. )