An Act To Address Maine's Immediate Workforce Needs
Maine Legislature, Session 126, LD 1489
Sponsors: LANGLEY, GRANT, CUSHING, GOODALL, KATZ, PATRICK, VALENTINO, BENNETT, MAKER
Amends: 36 MRSA §5122

Legislative Document 
No. 1489 
S.P. 554 
In Senate, May 1, 2013 
An Act To Address Maine's Immediate Workforce Needs 
Submitted by the Department of Economic and Community Development pursuant to Joint 
Rule 204. 
Reference to the Joint Select Committee on Maine's Workforce and Economic Future 
suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator LANGLEY of Hancock. 
Cosponsored by Representative GRANT of Gardiner and 
Senators: CUSHING of Penobscot, GOODALL of Sagadahoc, KATZ of Kennebec, PATRICK 
of Oxford, VALENTINO of York, Representatives: BENNETT of Kennebunk, MAKER of 
Calais. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA c. 383, sub-c. 2, art. 2-C is enacted to read: 
ARTICLE 2-C 
MAINE SKILLS GAP PROGRAM 
§13063-R.  Maine Skills Gap Program 
1.  Definitions.  As used in this article, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Departments" means the Department of Economic and Community Development 
and the Department of Labor. 
B.  "Education cost reimbursement" means the amount of money provided to a 
qualified employee toward the qualified employee's education costs under subsection 
5. 
C.  "Fund" means the Maine Skills Gap Marketing Fund established in subsection 6. 
D.  "Program" means the Maine Skills Gap Program established in subsection 2. 
E.  "Qualified employee" means an employee qualified to participate in the program 
and listed in the qualified employee registry. 
F.  "Qualified employee registry" means the electronic registry that contains a list of 
qualified employees created pursuant to subsection 3. 
G.  "Qualified employer" means an employer who has registered with the program in 
accordance with rules adopted under subsection 4. 
H.  "Qualified employer registry" means the electronic registry that contains a list of 
qualified employers created pursuant to subsection 4. 
2.  Program established.  The Maine Skills Gap Program is established as a pilot 
project that seeks to match qualified employees with positions at companies in the State 
representing industries with significant unmet demand for skilled labor by reimbursing a 
portion of a qualified employee's education costs, when applicable, or certain housing 
payments when education costs do not exist, during the employee's employment. The 
program is designed to achieve the following goals: 
A.  Promote economic opportunity and growth by providing an incentive to those 
individuals with certain skills and experience in occupations when there exists a 
demonstrable gap between the number of available jobs requiring those skills and 
experience and a smaller number of individuals willing and able to accept and 
succeed in those jobs; 
B.  Assist businesses by providing them with a registry of skilled and available 
individuals; 
C.  Offer incentives to individuals to pursue educational, training and retraining 
opportunities; 
D.  Keep individuals in the State through education and housing cost reimbursements 
and the opportunity to secure jobs in industries with significant demand; and 
E.  Provide immediate support for economic development in the State during a period 
during which comprehensive long-term workforce development solutions are 
implemented. 
3.  Creation of qualified employee registry.  Working with the Maine Community 
College System, the University of Maine System, career centers, private postsecondary 
educational institutions, relevant trade associations and other entities as appropriate, the 
Department of Labor, in accordance with rules adopted by the departments, shall create 
an electronic registry of qualified employees.  
The Department of Labor shall manage the registry within existing resources and shall 
coordinate with the Department of Economic and Community Development when 
supplying information from the qualified employee registry to qualified employers. 
4.  Creation of qualified employer registry.  Working with employers, the 
Department of Labor, the Maine Community College System, the University of Maine 
System, private postsecondary educational institutions, relevant trade associations and 
other entities as appropriate, the Department of Economic and Community Development, 
in accordance with rules adopted by the departments, shall create an electronic registry of 
qualified employers. 
The Department of Economic and Community Development shall manage the registry 
within existing resources and shall coordinate with the Department of Labor when 
supplying information from the qualified employer registry to qualified employees. 
5.  Education or mortgage or rental reimbursements.  The program shall provide 
an education cost reimbursement or mortgage or rental reimbursement to qualified 
employees. The education cost reimbursement must be used to defray the cost of a 
qualified employee's education, training or retraining that prepares that employee for a 
job with a qualified employer. The program shall provide mortgage or rental 
reimbursement to a qualified employee who does not qualify for an education cost 
reimbursement. Education cost reimbursements or mortgage or rental reimbursements 
must be paid by the program as follows. 
A.  A qualified employee receives a monthly payment, over and above the regular 
salary before taxes, while in the employ of a qualified employer.  The payment 
amount is determined at the time of employment and the total amount may not 
exceed $300 per month.  Pursuant to Title 36, section 5122, subsection 2, paragraph 
FF-1, the monthly payment is exempt from taxes imposed on income by this State. 
B.  A qualified employer is responsible for the cost associated with providing the 
education cost reimbursement or the mortgage or rental reimbursement to a qualified 
employee for each month of employment. 
C.  Notwithstanding any provision of law to the contrary, a qualified employer is 
deemed a qualified business, as defined in Title 36, section 6753, subsection 11, for 
purposes of the Maine Employment Tax Increment Financing Program established in 
Title 36, chapter 917 and is entitled to reimbursement of 50% of the employment, 
payroll and state income tax withholding taxes paid by the qualified employer for 
each qualified employee.  A qualified employer that meets the requirements of the 
Maine Employment Tax Increment Financing Program absent the provisions of this 
paragraph must choose the reimbursement level provided in this paragraph or in Title 
36, section 6754.  A qualified employer that chooses the reimbursement level 
provided in this paragraph must meet all the other requirements and is subject to all 
other provisions of the Maine Employment Tax Increment Financing Program. 
6.  Fund established.  The Maine Skills Gap Marketing Fund is established to 
receive contributions from public and private entities. 
A.  Payments from the fund must be used solely for the purpose of financing the 
marketing and promotion of the program to prospective employees, employers and 
tourists visiting this State and to a national and international audience. 
B.  The Commissioner of Economic and Community Development shall administer 
the fund.  The commissioner may adopt routine technical rules, as defined in chapter 
375, subchapter 2-A, to implement this subsection. 
7.  Eligibility limited.  A qualified employee becomes ineligible for the program if: 
A.  The qualified employee leaves the employment of the qualified employer first 
employing the qualified employee; 
B.  The qualified employee is employed in a different position with a qualified 
employer; or 
C.  The qualified employee's qualified employer opts out of the program. 
8.  Monitoring, evaluation and annual report.  For any year in which the program 
is funded, the departments shall use an independent nonpartisan reviewer to complete a 
comprehensive evaluation of the program, using both quantitative and qualitative data 
and including an analysis of the return on investment of the program. The evaluation 
must consider, at a minimum, the following factors: the effectiveness of the education or 
housing reimbursement as a catalyst for employment; the effect on employee productivity 
and performance; and the impact on the demand for skilled workers in industries in the 
State. The evaluation must measure the results of the program over time, including a 
longitudinal analysis that captures productivity and other outcomes related to the program 
and a determination of the impact on the addition of net new jobs to the State. The 
departments shall jointly 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. 
9.  Rules.  The departments shall adopt rules to implement this section. Rules adopted 
pursuant to this subsection are routine technical rules as defined in chapter 375, 
subchapter 2-A.  
10.  Insufficient funding.  Notwithstanding any other provision of this section, if the 
State does not receive sufficient funds to fund this program or if funds are deappropriated 
so as to result in insufficient funding, the State is not obligated to make payments under 
this program. 
11.  Repeal.  This section is repealed March 31, 2021. 
Sec. 2.  36 MRSA §5122, sub-§2, ¶FF-1 is enacted to read: 
FF-1.  To the extent included in federal adjusted gross income, payments made to a 
qualified employee by a qualified employer pursuant to Title 5, section 13063-R, 
subsection 5; 
SUMMARY 
This bill creates the Maine Skills Gap Program to address the immediate hiring needs 
of Maine employers.  Its goal is to encourage students and qualified experienced workers 
to take positions with Maine companies representing industries with significant unmet 
demand for skilled labor by reimbursing a portion of an employee's student debt or, in the 
absence of student debt, reimbursing a portion of an employee's housing expense during 
the employee's employment.  The reimbursement is not subject to Maine income tax.  A 
qualified employer will be considered eligible for reimbursement by the State under the 
Maine Employment Tax Increment Financing Program and will be reimbursed 50% of 
the qualified employer's employment, payroll and state income tax withholding taxes paid 
by the qualified employer for each qualified employee.  The Maine Skills Gap Program is 
repealed March 31, 2021.