An Act To Implement a Coordinated Strategy To Attract New Businesses, Expand Existing Businesses and Develop a Consistent and Recognizable Maine Brand
Maine Legislature, Session 125, LD 0323
Committee Amendment CA_A_H803 (House)
Amends: 5 MRSA §12004-I, 5 MRSA §13090-E, 5 MRSA §13090-F, 5 MRSA §13090-G, 36 MRSA §5219-G

COMMITTEE AMENDMENT "A" to RP. 256, L.D. 323, Bill, "An Act To 
Implement a Coordinated Strategy To Attract New Businesses, Expand Existing 
Businesses and Develop a Consistent and Recognizable Maine Brand" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 5 MRSA §12004-I, sub-§87, as corrected by RR 1995, c. 2, § 10, is 
repealed. 
Sec. 2. 5 MRS A § 13056-A, as enacted by PL 2007, c. 434, § 1, is amended to 
read: 
§13056-A. Comprehensive evaluation of state investments in economic development 
By Noyember 1,2007 February 1, 2013, the commissioner shall develop and submit 
to the Governor and the Legislature a plan for the comprehensive evaluation of state 
investments in economic development. 
Beginning February 1, :W().9 2014, the 
commissioner shall submit an annual a biennial comprehensive evaluation of state 
investments in economic development, not to include programs evaluated pursuant to 
section 13107 or those independent evaluations required by federal programs, to the 
Governor and the Legislature. The evaluation must: 
1. 
Outcome measures. 
Establish and report on outcome measures considered 
appropriate by public and private practitioners inside and outside of this State in the field 
of economic development, including measures that assess the overall economic 
performance of the programs to be evaluated under subsection I-A, as demonstrated by 
the number of jobs created and wages paid that are attributable to the program, and any 
state revenues that are attributable to the activities of the program; 
I-A. Programs identified for evaluation. Include, but is not limited to, the review· 
of the following programs: the Maine Employment Tax Increment Financing Program, 
pursuant to Title 36, chapter 917; the Governor's Training Initiative Program, pursuant to 
Title 26, section 2031; the Loring Development Authority of Maine, pursuant to Title 5, 
section 13080; the visual media production certification program, pursuant to Title 5, 
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section 13090-L; the promotion and marketing of state products through the department, 
pursuant to Title 5, section 13062; the Maine International Trade Center, pursuant to 
Title 10, section 945; municipal tax increment financing, pursuant to Title 30-A, section 
5227; and the pine tree development zone program, pursuant to Title 30-A, section 
5250-J; 
2. 
Reviewers. 
Use independent, nonpartisan reviewers to assess the effect of 
economic development activities on the competitiveness of industry sectors in this State; 
and 
3. Recommendations. Include recommendations to the Legislature on existing and 
proposed state-supported economic development programs and activities to affect 
economic development in this State. 
Sec. 3. 5 MRS A §13056-C, sub-§3, as amended by PL 2009, c. 337, §2, is 
further amended to read: 
3. Payments to fund. Notwithstanding section 1585 or any other provision of law, 
the department shall assess agencies or private entities that receive General Fund 
appropriations or general obligation bonds for economic development an amount for 
contribution to the fund that is not to exceed {M).&% 0.8% of General Fund appropriations 
received by or general obligation bonds issued to an agency or entity for economic 
development efforts. Private entities that receive funds from general obligation bonds for 
economic development efforts shall pay to the Treasurer of State in the fiscal year in 
which the general obligation bond was issued an assessment amount determined by the 
department that is not to exceed {M).&% 0.8% of the proceeds from the bond issue in any 
fiscal year, which payment must be made from available resources other than bond 
proceeds. Only those programs that receive $250,000 or more in economic development 
appropriations in any fiscal year or those entities that receive funds from a general 
obligation bond issue of $250,000 or more for economic development efforts in any fiscal 
year, as identified and certified by the department and the Office of Fiscal and Program 
Review, may be assessed pursuant to this subsection. The department shall provide to 
each agency or private entity an annual budget for the fund and a detailed account of each 
institution's required assessment. Total payments made pursuant to this section may not 
exceed $200,000 in any fiscal year. 
Sec. 4. 5 MRS A §13090-C, sub-§l, as amended by PL 2003, c. 198, §6, is 
further amended to read: 
1. Tourism; establishment. The Office of Tourism shall administer a program to 
support and expand the tourism industry and promote the State as a tourist destination. 
The Director of the Office of Tourism shall administer the office in accordance with the 
policies of the commissioner and the provisions of this article. The office includes the 
Maine Tourism Commission and the Maine State Film Commission. 
Sec. 5. 5 MRSA §13090-E, sub-§§l and 2, as amended by PL 2003, c. 198, §9, 
are further amended to read: 
1. Development. The Office of Tourism with input from the tourism industry shall 
develop a 5-year marketing and development strategy for state tourism growth that 
maximizes the effectiveness of state and private sector contributions in attracting visitors 
to the State and increasing tourism-based revenues. 
The strategy must incorporate 
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COMMITTEE AMENDMENT "A" to H.P. 256, L.D. 323 
components of direct marketing in maintenance and primary markets, matching grants 
programs, trade markets, regional development and research. 
2. Administration. The Office of Tourism shall administer the components of the 
strategy after· development. 
Administration includes development of new markets, 
creation of an image of the State to entice visitor inquiries and provision of appropriate 
technical assistance and response mechanisms. The Office of Tourism shall support 
staffing of the visitor information centers and fulfill tourism information requests and 
shall work in partnership with the tourism industry in the State in administering the 
strategy. The Office of Tourism shall seek direct input and consultation from the tourism 
industry on the Office of Tourism's marketing and promotional plans and collaborate with 
tourism regions and industry sectors to accomplish the goals identified in the marketing 
and promotional plans and the marketing and development strategy required under 
subsection 1, including, but not limited to, the outdoor recreation industry, the lodging 
industry, the restaurant industry. representatives of large landowners, campground 
organizations, the transportation industry, the retail industry, cultural organizations, 
tourism destination marketing organizations, private businesses, statewide tourism 
associations and nonprofit organizations. 
The Office of Tourism shall seek tourism 
industry input in other areas the commissioner considers appropriate and necessary to 
ensure the successful implementation of this section. 
The Office of Tourism shall 
provide a quarterly presentation of its activities under this section beginning January 1, 
2013 to tourism industry stakeholders and provide an annual report to the Governor and 
the Legislature summarizing the goals and achievements of the Office of Tourism. 
Sec. 6. 5 MRSA §13090-F, as amended by PL 2009, c. 211, Pt. B, §2, is repealed. 
Sec. 7. 5 MRSA §13090-G, sub-§4, as amended by PL 2003, c. 198, §12, is 
further amended to read: 
4. Administration. The Office of Tourism in consultation with the tourism industry 
shall administer the Travel Promotion Matching Fund Program with such flexibility as to 
bring about the most effective and economical travel promotion program possible. 
Applications from all regions of the State must be equally considered. 
The Maine 
Tourism Commission Office of Tourism shall reeommend consult with the tourism 
industry in the development of rules and procedures necessary and appropriate to the 
proper operation of the Travel Promotion Matching Fund Program. These rules must 
establish eligibility requirements, allocation formulas, application procedures and criteria 
subject to the final approval of the commissioner. The Maine Tourism Commission 
Office of Tourism, in consultation with the tourism industry, shall establish a schedule 
and process for review and approval of grant applications and make timely 
reeommendations of grant awards to tHe Office of Tourism. Grants recommended by tfle 
Maine Tourism Commission to the Office of Tourism must be approved by the Director 
of the Office of Tourism prior to any disbursement of funds. 
Sec. 8. 5 MRS A §13107, first ~, as amended by PL 2007, c. 420, §4, is further 
amended to read: 
The office shall develop and submit to the Governor and the Legislature by July 1, 
~ 
2012 and on July 1st every ~ §. years thereafter an evaluation of state investments in 
research and development, as well as an annual ~ progress report from the office and the 
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COMMITTEE AMENDMENT" A" to H.P. 256, L.D. 323 
independent reviewers under subsection 2 beginning on February 1, 200& 2014 and on 
February 1st every even-numbered year thereafter. The evaluation must: 
Sec. 9. 5 MRS A §13107, last~, as enacted by PL 2007, c. 420, §4, is amended to 
read: 
By February 1, 2Q{}& 2014 and by February 1st every even-numbered year thereafter, 
the office and the independent reviewers under subsection 2 shall submit to the Governor 
and the Legislature a progress report related to the ~ 
6-year evaluation required 
under this section. The independent reviewers must incorporate the goals and objectives 
described in the State's innovation economy action plan, as described in Title 10, chapter 
107-D, in their analysis of the success of the State's investments in research and 
development. 
Sec. 10. 5 MRS A §13120-A, first ~, as amended by PL 2003, c. 281, §1, is 
further amended to read: 
The Maine Rural Development Authority, as established by section I2004-F, 
subsection 18 and referred to in this subchapter as the "authority," is a body both 
corporate and politic and a public instrumentality of the State established for the purpose 
of providing loans to communities for the development of commercial facilities on a 
speculative basis and for serving as lender or investor in the acquisition, development, 
redevelopment and sale of commercial facilities in areas where economic needs are not 
supported by private investment. The authority may also provide loans to businesses that 
currently do not own real estate and that are not supported by private investment. 
Sec. 11. 5 MRS A §13120-P, sub-§2, as amended by PL 2005, c. 425, §18, is 
further amended to read: 
2. 
Redevelopment of property. 
Except as provided in section 13I20-Q, the 
authority may undertake the redevelopment of property as an owner or lender for 
subsequent use and sale under the following conditions: 
A. The property has been previously and materially used as a commercial facility or 
the property is suitable for adaptive use as a commercial or industrial facility; 
B. The property is currently not in productive commercial use or is expected to be 
taken out of productive commercial use within the immediate future; 
C. The property has not been placed under a purchase option or contract; 
D. The authority, using due diligence, has determined that: 
(1) There is a reasonable expectation that the property will become financially 
viable following its redevelopment; and 
(2) 
The economic benefits, including the restoration of employment 
opportunities, expected to result from the redevelopment justify the risks 
associated with the authority's equity, security or other interest in the property; 
and 
E. The municipality, local development corporation or another entity will provide 
funding for the project equal to 25% of the funding that the authority provides to the 
project. 
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COMMITTEE AMENDMENT" A" to H.P. 256, L.D. 323 
The authority may finance undeveloped land or personal property only if the undeveloped 
land or personal property is part of the overall redevelopment project. The authority may 
take custody of any machinery and equipment held as collateral for a loan issued to the 
commercial facility being redeveloped. 
Sec. 12. 5 MRS A §13120-P, sub-§3, as amended by PL 2005, c. 425, §18, is 
further amended to read: 
3. Development of property. Except as provided in section 13120-Q, the authority 
may undertake the development of property as an owner or lender for subsequent use and 
sale under the following conditions: 
A. The property consists of real estate that is zoned, sited or otherwise suitable for 
development as a commercial facility; 
B. The property is currently not in productive commercial use; 
C. The property has not been placed under a purchase option or contract; 
D. The authority, using due diligence, has determined that: 
(1) There is a reasonable expectation that the property will become financially 
viable following its development; 
(2) The development of the property will create employment opportunities and 
other economic benefits within the region; and 
(3) The economic benefits expected to result from the development justify the 
risks associated with the authority's equity, loan or other interest in the property; 
and 
E. The municipality, local development corporation or another entity will provide 
funding for the project equal to 25% of the funding that the authority provides to the 
project. 
The authority may finance undeveloped land or personal property only if the undeveloped 
land or personal property is part of the overall development project. The authority may 
take custody of any machinery and equipment held as collateral for a loan issued to the 
commercial facility being redeveloped. 
Sec. 13. 36 MRSA §5219-GG, sub-§I, ~G, as enacted by PL 2011, c. 380, Pt. 
Q, §6 and affected by §7, is amended to read: 
G. "Qualified active low-income community business" has the same meaning as in 
the Code, Section 45D~ and includes any entity making an investment under this 
section if, for the most recent calendar year ending prior to the date of the investment: 
(1) At least 50% of the total gross income of the entity was derived from the 
active conduct of business activity of the entity within any municipality where 
the average annual unemployment rate for that year was higher than the state 
average unemployment rate; 
(2) A substantial portion of the use of the tangible property of the entity was 
within any location of the State where the average annual unemployment rate for 
that year was higher than the state average unemployment rate; or 
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COMMITTEE AMENDMENT" A 
"to H.P. 256, L.D. 323 
(3) A substantial portion of the services performed by the entity by its employees 
was performed in a municipality where the average annual unemployment rate 
for that year was higher than the state average unemployment rate. 
Sec. 14. Commissioner of Economic and Community Development to 
convene meetings to streamline marketing efforts. Beginning August 1,2012, the 
Commissioner of Economic and Community Development shall convene at least 5 
meetings by December 15, 2012 with marketing personnel from the following state 
agencies: the Department of Agriculture, Food and Rural Resources; the Department of 
Labor; the Department of Environmental Protection; the Department of Education; the 
Department of Conservation; the Department of Inland Fisheries and Wildlife; the 
Department of Marine Resources; and the Department of Transportation. 
The 
Commissioner of Economic and Community Development shall gather information at the 
meetings regarding the marketing efforts, budgets and strategies used by these agencies in 
order to determine if the State can market its products and services more efficiently. The 
Commissioner of Economic and Community Development shall provide a report with 
recommendations for streamlining the State's marketing efforts to the joint standing 
committee of the Legislature having jurisdiction over labor, commerce, research and 
economic development matters no later than February 1, 2013. 
The joint standing 
committee of the Legislature having jurisdiction over labor, commerce, research and 
economic development matters is authorized to report out a bill to implement the 
recommendations to the First Regular Session of the 126th Legislature.' 
SUMMARY 
This amendment replaces the bill, which was a concept draft. 
It amends the 
provisions governing the Commissioner of Economic and Community Development's 
comprehensive economic development evaluation by changing the report's outcome 
measures to include measures that assess the overall economic performance of the 
program being evaluated, as demonstrated by the number of jobs created and wages paid 
by the agency or entity and any state revenues that are attributable to the activities of the 
agency or entity. It specifies that the economic development evaluation must include, but 
is not limited to, a review of the following programs: the Maine Employment Tax 
increment Financing Program, pursuant to the Maine Revised Statutes, Title 36, chapter 
917; the Governor's Training Initiative Program, pursuant to Title 26, section 2031; the 
Loring Development Authority of Maine, pursuant to Title 5, section 13080; the visual 
media production certification program, pursuant to Title 5, section 13090-L; the 
promotion and marketing of state products through the Department of Economic and 
Community Development, pursuant to Title 5, section 13062; the Maine International 
Trade Center, pursuant to Title 10, section 945; municipal tax increment financing, 
pursuant to Title 30-A, section 5227; and the pine tree development zone program, 
pursuant to Title 30-A, section 5250-1. 
It also changes the economic development 
evaluation from an annual to a biennial report, requires the independent reviewers to also 
be nonpartisan reviewers, makes a technical correction to the funding mechanism for the 
evaluation and aligns the reporting dates with the research and development evaluation. 
The amendment eliminates the Maine Tourism Commission and requires the 
Department of Economic and Community Development, Office of Tourism to seek direct 
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COMMITTEE AMENDMENT "A" to H.P. 256, L.D. 323 
input and consultation from the tourism industry on its marketing and promotional plans 
and to collaborate with tourism regions and industry sectors to accomplish the goals 
identified in its marketing and promotional plans and the marketing and development 
strategy. It also requires the Office of Tourism to seek tourism industry input in other 
areas the Commissioner of Economic and Community Development considers 
appropriate and necessary. It also requires the Office of Tourism to provide a quarterly 
presentation beginning January 1,2014 to the tourism industry stakeholders and provide 
an annual report to the Governor and the Legislature summarizing the goals and 
achievements of the office. 
The amendment changes the Department of Economic and Community Development, 
Office of Innovation's comprehensive research and development evaluation from a 5-year 
to a 6-year evaluation and changes its progress report from an annual to a biennial report. 
The amendment amends the laws governing the Maine Rural Development Authority 
to allow the authority to also provide loans to businesses that currently do not own real 
estate and that are not supported by private investment and allows the authority to collect 
any machinery and equipment that is being held as collateral for a loan issued to a 
specific business. 
The amendment expands the definition of "qualified active low-income community 
business" within the laws governing the new markets capital investment credit to allow a 
business to qualify for the credit if it meets specific requirements for activity within 
municipalities where the average annual unemployment rate is higher than the state 
average unemployment rate. 
The amendment requires the Commissioner of Economic and Community 
Development beginning August 1, 2012 to convene at least 5 meetings with marketing 
personnel from the following state agencies: the Department of Agriculture, Food and 
Rural Resources; the Department of Labor; the Department of Environmental Protection; 
the Department of Education; the Department of Conservation; the Department of Inland 
Fisheries and Wildlife; the Department of Marine Resources; and the Department of 
Transportation. 
It requires the commissioner to gather information at the meetings 
regarding the marketing efforts, budgets and strategies used by these agencies in order to 
determine if the State can market its products and services more efficiently. It authorizes 
the joint standing committee of the Legislature having jurisdiction over labor, commerce, 
research and economic development matters to report out a bill to the First Regular 
Session of the 126th Legislature. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/14112 .;tvac:.. 
LD323 
LR 402(02) 
An Act To Implement a Coordinated Strategy To Attract New Businesses, Expand Existing Businesses 
and Develop a Consistent and Recognizable Maine Brand 
\ 
Fiscal Note for Bill as Amended by Committee Amendment "A" ( H-~o 3) 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Additional costs to the Department of Economic and Community Development associated with conducting the 
required meetings and to the Office of Tourism, within the department, to seek the required input from the tourism 
industry and to provide the quarterly presentation can be absorbed within existing budgeted resources. 
Additional costs to the Department of Labor, the Department of Education, the Department of Agriculture, Food and 
Rural Resources, the Department of Conservation, the Department ofInland Fisheries and Wildlife, the Department of 
Marine Resources, the Department of Environmental Protection and the Department of Transportation to participate in 
the 5 monthly meetings can be absorbed within each department's existing budgeted resources. 
LR0402(02) - Fiscal Note - Page 1 of 1