An Act To Implement the Recommendations of the Maine Economic Growth Council Regarding Prosperity
Maine Legislature, Session 126, LD 1275
Committee: Labor, Commerce, Research and Economic Development
Sponsors: WOODBURY

Legislative Document 
No. 1275 
S.P. 436 
In Senate, March 28, 2013 
An Act To Implement the Recommendations of the Maine Economic 
Growth Council Regarding Prosperity 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator WOODBURY of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
CONCEPT DRAFT 
SUMMARY 
This bill is a concept draft pursuant to Joint Rule 208. 
This bill proposes to implement the recommendations of the Maine Economic 
Growth Council, which was directed by the Legislature in Resolve 2011, chapter 148 to 
develop the Maine Prosperity Action Plan.  The recommendations are to: 
1.  Health and wellness.  Invest in preventive care, wellness and improvements in 
the current health care system to improve health, increase productivity and control costs.  
This goal would be accomplished by: 
A.  Investing in wellness and prevention for state employees and state-funded 
programs by: 
(1)  Continued use of the State's buying power to support best practices; 
(2)  Using public schools to educate children and families about healthy 
lifestyles, preventive care, wellness, physical activity and proper nutrition and 
providing nutritious foods in schools; and 
(3)  Promoting healthy nutrition through the statewide food supplement program 
under the Maine Revised Statutes, Title 22, section 3104; 
B.  Using market incentives to promote wellness and prevention by: 
(1)  Providing tax incentives for employers that offer health and wellness 
programs; and 
(2)  Providing tax incentives to health insurers for their providing discounts to 
employers providing health and wellness programs; 
C.  Investing in preventive care and education by promoting existing investments and 
systems to improve transparency in the health care system so all consumers can make 
informed decisions about health care options based on cost and quality data; and 
D.  Improving the current health care system to reduce costs by: 
(1)  Limiting high emergency department use; 
(2)  Continuing to expand telemedicine throughout the State;  
(3) Ensuring that MaineCare's reimbursement rate prevents cost-shifting to the 
private market; 
(4)  Encouraging accountable care organizations that promote health, prevent 
illness and support quality;  
(5)  Enabling the Joint Standing Committee on Health and Human Services to 
explore ways to encourage healthy behaviors for MaineCare clients consistent 
with federal law; and 
(6)  Improving efficiency and value in MaineCare by rewarding prevention and 
discouraging excessive use. 
In order to further the implementation of the health and wellness goal, this bill would 
immediately connect the Women, Infants and Children Special Supplemental Food 
Program and the Supplemental Nutrition Assistance Program with more farmers' markets; 
increase access to primary care and dental care to limit emergency department use; and 
make all state office buildings and grounds tobacco-free; 
2.  Energy.  Reduce energy costs by improving efficiency and expanding the 
portfolio of available and economically viable alternatives for residential, industrial and 
commercial customers.  This goal would be accomplished by: 
A.  Improving efficiency to lower energy costs in the near term by: 
(1)  Investing in efficiency for residential, industrial and commercial users, 
focusing on commercial and industrial users that yield the highest return on 
investment;  
(2)  Supporting the goals of the Efficiency Maine Trust by: 
(a) Leveraging existing funds from utilities and fuel suppliers; and 
(b)  Using funds available from the Efficiency Maine Trust to make low-
interest loans and grants available to manufacturing and natural resources 
businesses for infrastructure upgrades; 
(3)  Maintaining a statewide building code with efficiency standards; and 
(4)  Supporting time-of-day pricing options and smart meter technology; and 
B.  Developing new commercially viable energy sources to lower reliance on oil and 
protect against market volatility by: 
(1)  Investing in and expanding development of renewable energy that is 
economically viable as dictated by the market, such as biofuels, tidal power, 
onshore and offshore wind power, hydropower and solar power; 
(2)  Promoting development of energy production technology as an economic 
development opportunity; and 
(3)  Improving access for Maine businesses to a variety of energy sources. 
In order to further the implementation of the energy goal, this bill would immediately 
develop a statewide natural gas distribution plan that includes service center 
communities; 
3.  Government reform.  Improve the efficiency and effectiveness of the legislative 
process and regulatory framework.  This goal would be accomplished by reforming the 
Legislature by: 
A.  Reducing the size of the Legislature, which would need to be accomplished 
through an amendment to the Constitution of Maine, and identifying efficiencies in 
the law-making process; 
B.  Requiring legislative leadership and the Maine Economic Growth Council to find 
ways to incorporate measures of growth into the legislative process; 
C.  Changing accounting and legislative practices to reflect the full cost and effect of 
long-term obligations; and 
D.  Using dynamic fiscal notes to evaluate economic impact beyond direct revenue 
impact. 
In order to further the implementation of the government reform goal, this bill would 
immediately institutionalize the legislative regulatory review process to occur on a 
regular basis and encourage the cost-effective and efficient regionalization of services by 
providing information on best practices, resources and opportunities; 
4.  Taxation.  Reform Maine's tax system to promote economic growth and minimize 
volatility.  This goal would be accomplished by: 
A.  Changing the structure of the income and sales taxes by: 
(1)  Lowering the top marginal income tax rate, thus eliminating a disincentive to 
investment; 
(2) Lowering the top income tax brackets; 
(3) Indexing the income brackets to adjust with inflation; 
(4) Bringing the estate tax into conformance with federal estate tax;  
(5) Exploring ways to export tax burdens onto visitors; and 
(6) Reforming the sales tax by removing exemptions and lowering the overall 
rate; and 
B.  Limiting government spending and investing the savings in economic growth and 
tax reform by: 
(1)  Continuing to monitor and limit state and local spending through the process 
limiting municipal property tax levies pursuant to the Maine Revised Statutes, 
Title 30-A, section 5721-A; 
(2)  Promoting government efficiencies through consolidation, technology and 
cooperation; 
(3)  Supporting inclusion of a long-range plan in the biennial budget; 
(4)  Supporting and highlighting the success of a few major pilot projects in 
regionalized service delivery; and 
(5)  Making financial incentives available for municipalities to implement 
regional services. 
In order to further the implementation of the taxation reform goal, this bill would 
immediately eliminate all sales tax exemptions and lower the general sales and use tax 
rate to 4%; 
5.  Education.  Invest in and support a comprehensive educational system that meets 
the educational needs of each individual at all levels and prepares those individuals for 
citizenship, meets the workforce needs of Maine businesses and supports economic 
growth.  This goal would be accomplished by: 
A.  A comprehensive approach of: 
(1)  Creating an overarching vision and integrated state approach to help all 
Maine residents achieve their greatest potential; 
(2)  Adopting a global budget for public funds across the birth-to-college 
spectrum; 
(3)  Including explicit student-centered outcomes at all stages of investment and 
evaluation; 
(4)  Ensuring successful, seamless transition across individual systems; and 
(5)  Supporting adult students through programs such as the Maine Career 
Advantage program and the Governor's Jobs Initiative Program; 
B.  Improving early childhood education by: 
(1)  Increasing General Fund investment to control kindergarten to grade 12 
remediation and public assistance costs; 
(2)  Developing strategies to share resources of the model used by Educare 
Central Maine in the City of Waterville with all Maine communities; 
(3)  Establishing minimum quality standards for early childhood programs 
eligible for state funding; 
(4)  Fully integrating early childhood development into Maine's educational 
system; 
(5)  Improving the quality of the early childhood care workforce by: 
(a) Investing fully in training and education of providers through 
scholarships, loan forgiveness and tax credits; and 
(b)  Expanding access to child-focused and family-focused systems that 
incorporate all components of the Early Head Start program and Head Start 
program; 
(6)  Creating a means for private funds to support and enhance access to quality 
services by: 
(a)  Establishing private endowments with private, philanthropic and public 
funds; and 
(b)  Organizing a core group with the goal of adopting market-based 
approaches to sustain investment in the public sector; and 
(7)  Supporting the Maine Children's Growth Council to engage private and 
philanthropic sectors; 
C.  Improving kindergarten to grade 12 education by: 
(1)  Bringing the student-to-teacher ratio and administrative costs closer to the 
national average; 
(2)  Providing incentives and encouragement for district administrative 
consolidations with savings going to classrooms; 
(3)  Rewarding high-performing teachers; 
(4)  Continuing to explore all alternatives to improve the overall quality of 
Maine's educational system; 
(5)  Making distance learning available to all students;  
(6)  Creating a postsecondary options program to allow high school juniors and 
seniors to take postsecondary education courses, with public funding following 
the student; and 
(7)  Developing a rational school capital plan for construction and renovation 
investments; 
D.  Improving higher education by: 
(1)  Making public higher education affordable for all Maine students; 
(2)  Increasing need-based scholarship aid through programs such as the Maine 
State Grant Program; 
(3)  Establishing a single comprehensive plan and financing for all public 
institution physical plants; 
(4) Treating the University of Maine System as a true system with campuses 
specializing in areas rather than underfunding a full curriculum at each campus; 
and 
(5) Utilizing more technology, distance and online learning to reduce costs; 
E.  Ensuring that credits transfer within and across systems easily;  
F.  Aligning curricula and courses to ensure graduates meet current and future skill 
and knowledge needs of Maine businesses, especially by supporting and expanding 
employer and institution partnerships; 
G.  Directing the University of Maine System to provide technical support to Maine 
businesses, prioritize economic development and market community assets; 
H.  Maintaining the University of Maine System and the Maine Community College 
System as separate systems coordinated by a single, integrated board of trustees; and 
I.  Eliminating the existing University of Maine System funding formula and 
establishing in its place a system that rewards excellence and results and recognizes 
changing marketplace and student needs. 
In order to further the implementation of the education improvement goal, this bill would 
immediately require prekindergarten screenings statewide; strengthen relationships and 
collaboration between employers and the kindergarten to grade 12 educational system to 
ensure that the system is providing students the foundation and skills they need to 
succeed in the workforce; and review the State's geographic higher education needs and 
explore all options to deliver high-quality public education opportunities to students 
throughout the State in a more cost-effective manner that fully employs online and 
distance learning; 
6.  Connectivity.  Create balanced and affordable transportation and communications 
systems to connect businesses to customers and markets beyond the State's borders.  This 
goal would be accomplished by: 
A.  Developing a sustainable funding mechanism for road infrastructure based on 
users paying the costs; 
B.  Supporting multimodal options, such as rail, marine, air, roadways and trails, by: 
(1)  Finishing the Three-Port Strategy investment plan; 
(2)  Evaluating all options to make competitive freight and passenger rail service 
available; and 
(3)  Improving regional air connections; and 
C.  Filling gaps in broadband coverage and availability to increase business activity 
statewide by: 
(1)  Supporting the mission and objectives of the ConnectME Authority to 
expand access and subscription rates to broadband; 
(2)  Exploring opportunities to lower costs and increase subscription rates; and 
(3)  Supporting modernization of federal and state communications regulations. 
In order to further the implementation of the connectivity goal, this bill would 
immediately appoint a blue ribbon commission to develop an appropriate sustainable 
mechanism for financing transportation infrastructure; and promote the benefits of 
Internet connectivity to businesses and individuals to increase the subscription rate and 
provide a level of certainty for private investment; and 
7.  Innovation and entrepreneurship.  Support the innovation of Maine's economy 
to capitalize on new markets and promote economic growth.  This goal would be 
accomplished by: 
A.  Making changes to funding, including: 
(1)  Supporting public investment in research and development that leverages 
private funds to bring total spending to 3% of Maine's gross domestic product; 
(2)  Updating the existing seed capital regime to encourage more private 
investment; and 
(3)  Supporting commercialization of innovations; and 
B.  Changing information technology capacity and education by: 
(1)  Building information technology capacity through public-private-nonprofit 
partnerships; 
(2)  Teaching innovation and entrepreneurship statewide by: 
(a)  Providing training to 10,000 small businesses over the next 8 years 
through existing organizations; and 
(b) Including entrepreneurship in kindergarten to grade 12 curricula 
statewide; 
(3)  Continuing support of the Maine Technology Institute's Cluster Initiative 
Program and the Maine Innovation Economy Advisory Board; 
(4)  Increasing the University of Maine System's research and development in 
order to leverage funding and create marketable ideas, wealth and jobs;  
(5)  Requiring the University of Maine System, the Maine Community College 
System and the Maine Maritime Academy to develop the entrepreneurial skills of 
students and faculty and support the transfer of knowledge and technology 
between the systems and the academy; and 
(6)  Requiring the University of Maine System, the Maine Community College 
System and the Maine Maritime Academy to bring research and development 
knowledge directly to businesses through relationships and public-private 
partnerships. 
In order to further the implementation of the innovation and entrepreneurship goal, this 
bill would immediately ensure that all programs supporting innovation are working 
together and that the most meaningful evaluation metrics are being utilized; and update 
existing seed capital legislation to enable crowd-funding of innovation.