An Act To Facilitate Rapid Response by Out-of-state Businesses to State Disasters
Maine Legislature, Session 125, LD 1836
Committee: Labor, Commerce, Research and Economic Development
Sponsors: KNIGHT, RECTOR, BERRY, CURTIS, FITTS, PILON, PRESCOTT, STEVENS, STRANG BURGESS, VALENTINO

Legislative Document 
No. 1836 
H.P. 1357 
House of Representatives, March 1, 2012 
An Act To Facilitate Rapid Response by Out-of-state Businesses to 
State Disasters 
(AFTER DEADLINE) 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator RECTOR of Knox and 
Representatives: BERRY of Bowdoinham, CURTIS of Madison, FITTS of Pittsfield, PILON 
of Saco, PRESCOTT of Topsham, STEVENS of Bangor, STRANG BURGESS of 
Cumberland, VALENTINO of Saco. 
Printed on recycled paper 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation allows businesses from outside of Maine to come to 
Maine's assistance during times of disaster, natural or man-made, without those 
businesses being subject to certain regulations and taxes; and 
Whereas, since it is impossible to predict when the next disaster may occur that 
requires Maine to seek assistance from outside its borders, this legislation needs to take 
effect as soon as possible; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA Pt. 15 is enacted to read: 
PART 15 
STATE OF EMERGENCY PROCEDURES 
CHAPTER 1201 
WAIVERS FOR OUT-OF-STATE BUSINESSES AND EMPLOYEES 
§9901.  Findings 
The Legislature finds that in times of emergency in this State, such as during or after 
a storm, flood, fire, earthquake, hurricane or other disaster, businesses from other states 
provide assistance by bringing in resources and personnel to assist the State with the often 
enormous and overwhelming task of cleaning up, restoring and repairing damaged 
buildings, equipment and property.  This provision of assistance may require out-of-state 
businesses, including out-of-state affiliates of businesses based in the State, to bring in 
resources, property or personnel that previously have had no connection to the State to 
perform activities in the State, including, but not limited to, repairing, renovating, 
installing, building, rendering services and engaging in other business activities, some of 
which may require that personnel from the businesses be located in the State for extended 
periods of time. 
The Legislature further finds that, while these businesses are operating in the State 
providing assistance on a temporary basis solely for the purpose of helping the State 
recover from the disaster or emergency, these businesses and their employees should not 
be burdened by any requirements for business and employee taxes as a result of such 
temporary activities. The State's nexus and residency thresholds are intended for 
businesses and individuals that are located in the State as part of the conduct of regular 
business operations or that intend to reside in the State; those thresholds should not apply 
to businesses and individuals coming into the State on a temporary basis to provide 
assistance in response to a declared state disaster or emergency. 
To ensure that these businesses focus on responding quickly to the needs of the State 
and its citizens during a declared state disaster or emergency, the Legislature finds that it 
is appropriate to consider that such activity for a reasonable period of time during and 
after the disaster or emergency undertaken to repair and restore property and 
infrastructure in the State does not establish presence or residency in this State, constitute 
doing business in the State or meet any other criteria for purposes of subjecting the 
businesses to state and local taxes or licensing and regulatory requirements. 
§9902.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Declared state disaster or emergency.  "Declared state disaster or emergency" 
means a disaster or emergency event for which a Governor's state of emergency 
proclamation has been issued pursuant to Title 37-B, section 742 or that the President of 
the United States has declared to be a major disaster or emergency. 
2.  Disaster period.  "Disaster period" means the period of time that begins no later 
than 10 days following the Governor's proclamation of a state of emergency or the 
declaration by the President of the United States of a major disaster or emergency, 
whichever occurs first, and that extends for a period of 60 calendar days following the 
end of the declared disaster or emergency as proclaimed by the Governor pursuant to 
Title 37-B, section 743 or the President of the United States or pursuant to law, 
whichever occurs first. 
3.  Infrastructure.  "Infrastructure" means: 
A.  Property and equipment, including related support facilities that provide service 
to more than one customer or person, owned or used by a public utility as defined in 
Title 35-A, section 102, subsection 13 or by a communications service provider as 
defined in Title 35-A, section 9202, subsection 4. "Infrastructure" includes, without 
limitation, real and personal property such as buildings, offices, power lines, poles, 
pipes, structures and equipment; and 
B.  Public roads and bridges. 
4.  Out-of-state business.  "Out-of-state business" means a business entity: 
A.  That does not have a presence in the State; 
B.  That does not conduct business in the State; and 
C.  Whose assistance in performing work in this State, such as repairing, renovating, 
installing or building infrastructure, rendering services or engaging in other business 
activities, related to a declared state disaster or emergency is requested by the State, a 
county, city, town or other political subdivision of the State or a registered business. 
"Out-of-state business" includes a business entity that is affiliated with a registered 
business solely through common ownership as long as that business entity does not have 
any registrations, tax filings or nexus in the State prior to the declared state disaster or 
emergency. 
5.  Out-of-state employee.  "Out-of-state employee" means an individual who 
performs services for an out-of-state business in return for compensation and who, prior 
to the declared state disaster or emergency, was neither a resident of this State nor had a 
nexus in the State. 
6.  Registered business.  "Registered business" means a business entity that is 
registered or licensed to do business in the State prior to the declared state disaster or 
emergency. 
§9903.  Status of out-of-state businesses and employees during disaster period 
1.  Out-of-state businesses.  Notwithstanding Title 36, section 5211 or any other 
provision of law to the contrary, and except as provided in subsection 3, during a disaster 
period an out-of-state business that conducts operations within the State for the purpose 
of performing work or providing services related to a declared state disaster or emergency 
is deemed to have not established a level of presence that would require that business to 
register, file or remit state or local taxes or that would require that business or its out-of-
state employees to be subject to any state or local employment, licensing or registration 
requirements, including, but not limited to: 
A.  Business licensing or registration requirements; 
B.  State or local taxes or fees such as unemployment insurance or workers' 
compensation insurance; 
C.  Occupational licensing fees; 
D.  Sales and use tax on equipment used or consumed by that out-of-state business or 
its out-of-state employees during the disaster period; and 
E.  Income tax withholding or remittance. 
2.  Out-of-state employees.  Notwithstanding Title 36, section 5142 or any provision 
of law to the contrary, and except as provided in subsection 3, during a disaster period an 
out-of-state employee performing work or providing services in this State related to a 
declared state disaster or emergency is deemed to have not established residency or a 
presence in the State that would require that out-of-state employee or that out-of-state 
employee's employer to file and pay income taxes or to be subject to state income tax 
withholdings or to file and pay any other state or local tax or fee during the disaster 
period. 
3.  Sales and use taxes and fees.  An out-of-state business and an out-of-state 
employee are required to pay sales and use taxes and fees, including, but not limited to, 
fuel taxes, sales and use taxes on materials and services subject to sales and use tax, 
lodging taxes and vehicle rental taxes or fees, on purchases or leases of tangible personal 
property and taxable services sold at retail for use or consumption in the State during a 
disaster period, unless those taxes or fees are otherwise waived during a disaster period. 
4.  Status after disaster period.  After the termination of a disaster period, an out-of-
state business or out-of-state employee that remains in the State is subject to the State's 
standards for establishing presence or residency or for doing business in the State and 
shall meet all business and employee tax requirements. 
§9904.  Notification 
1.  Notification by out-of-state businesses during disaster period.  An out-of-state 
business shall provide notification to the Secretary of State as soon as practicable after 
entry to the State during a disaster period that the out-of-state business is in the State for 
purposes of responding to the declared state disaster or emergency.  The out-of-state 
business shall provide to the Secretary of State information related to the out-of-state 
business including but not limited to the following: 
A.  Name; 
B.  State of domicile; 
C.  Principal business address; 
D.  Federal employer identification number; 
E.  The date when the out-of-state business entered the State; and 
F.  Contact information while the out-of-state business is in this State. 
2.  Registered businesses.  A registered business shall provide the notification 
required in subsection 1 for an affiliate of the registered business that enters the State as 
an out-of-state business.  The notification under this subsection also must include contact 
information for the registered business in the State. 
3.  Notification of intent to remain in the State.  An out-of-state business that 
remains in the State after a disaster period shall notify the Secretary of State and shall 
meet all registration, licensing and filing requirements resulting from establishing a 
business presence in the State. 
§9905.  Rulemaking 
The Secretary of State, in consultation with the Department of Administrative and 
Financial Services, Bureau of Revenue Services, the Department of Professional and 
Financial Regulation, the Department of Economic and Community Development and the 
Department of Defense, Veterans and Emergency Management, Maine Emergency 
Management Agency, shall adopt routine technical rules, as defined in Title 5, chapter 
375, subchapter 2-A, to implement the provisions of this chapter.  Notification and 
registration procedures adopted by rule must allow a person to obtain and complete any 
required forms using a publicly accessible website on the Internet. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill allows an out-of-state business to enter the State when a Governor's state of 
emergency proclamation or a declaration by the President of the United States of a major 
disaster or emergency has been issued without subjecting that out-of-state business or its 
employees to the licensing, registration and taxation requirements imposed on businesses 
and individuals that reside in the State.  Following the disaster period, which ends 60 
days after the disaster or emergency is over, any exemption ends.  A business or 
employee that continues to reside in the State after the disaster period ends is subject to 
all registration, licensing and taxation requirements normally imposed.