An Act To Ensure That Tax Expenditures Create High-quality Jobs
Maine Legislature, Session 127, LD 1287
Committee: Taxation
Sponsors: JOHNSON, GOODE, BREEN, DAVIS, LIBBY, PATRICK, VALENTINO
Amends: 36 MRSA §5216-B, 36 MRSA §5219-W, 36 MRSA §5219-H, 36 MRSA §5219-N, 36 MRSA §6754

Legislative Document 
No. 1287 
S.P. 462 
In Senate, April 9, 2015 
An Act To Ensure That Tax Expenditures Create High-quality Jobs 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator JOHNSON of Lincoln. 
Cosponsored by Representative GOODE of Bangor and 
Senators: BREEN of Cumberland, DAVIS of Piscataquis, LIBBY of Androscoggin, PATRICK 
of Oxford, VALENTINO of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5216-B, sub-§6 is enacted to read: 
6.  Employment requirements.  An investor who receives a credit under this section 
shall comply with section 5219-NN. 
Sec. 2.  36 MRSA §5219-W, sub-§6 is enacted to read: 
6.  Employment requirements.  A taxpayer who receives a credit under this section 
shall comply with section 5219-NN. 
Sec. 3.  36 MRSA §5219-HH, sub-§7, ¶¶B and C, as enacted by PL 2011, c. 
548, §33 and affected by §35, are amended to read: 
B.  The qualified community development entity redeems or makes a principal 
repayment with respect to the qualified equity investment that generated the tax credit 
prior to the final credit allowance date of the qualified equity investment. In such a 
case, the recapture must be proportionate to the amount of the redemption or 
repayment with respect to the qualified equity investment; or 
C.  The qualified community development entity fails to invest at least 85% of the 
purchase price of the qualified equity investment in qualified low-income community 
investments in qualified active low-income community businesses located in the 
State within 24 months of the issuance of the qualified equity investment and 
maintain this level of investment in qualified low-income community investments in 
qualified active low-income community businesses located in the State until the last 
credit allowance date for the qualified equity investment. For purposes of calculating 
the amount of qualified low-income community investments held by a qualified 
community development entity, an investment is considered held by the qualified 
community development entity even if the investment has been sold or repaid as long 
as the qualified community development entity reinvests an amount equal to the 
capital returned to or recovered from the original investment, exclusive of any profits 
realized, in another qualified active low-income community business in this State 
within 12 months of the receipt of the capital.  A qualified community development 
entity may not be required to reinvest capital returned from qualified low-income 
community investments after the 6th anniversary of the issuance of the qualified 
equity investment, the proceeds of which were used to make the qualified low-
income community investment, and the qualified low-income community investment 
is considered to be held by the issuer through the qualified equity investment's final 
credit allowance date.; or 
Sec. 4.  36 MRSA §5219-HH, sub-§7, ¶D is enacted to read: 
D.  The qualified community development entity fails to comply with section 
5219-NN. 
Sec. 5.  36 MRSA §5219-NN is enacted to read: 
§5219-NN.  Employment requirements for certain tax credit programs 
1.  Employment requirements.  Beginning January 1, 2016, in order to receive a 
credit or reimbursement of tax under section 5216-B, section 5219-W, section 5219-HH 
or chapter 917, a person must certify to the bureau that within 90 days of receiving the 
credit or reimbursement the person will: 
A.  If the receipt of the credit or reimbursement is not subject to the requirement that 
the person provide matching funds, ensure that the combined amount of salaries and 
benefits for the employment positions created by the credit or reimbursement is at 
least twice the amount of the credit or reimbursement; 
B.  Ensure that the wage of an employment position created by a credit or 
reimbursement is at least 80% of the statewide average for that position as 
determined by the Department of Labor or 120% of the statewide average as 
determined by the Department of Labor, whichever is greater; 
C.  Provide a health care plan to at least 95% of the person's employees that meets the 
standards of the federal Patient Protection and Affordable Care Act, Public Law 111-
148, and for each employee costs less than 9.5% of the employee's family income; 
D.  Provide: 
(1)  A written estimate to a newly hired employee detailing the minimum number 
of scheduled hours and scheduled shifts per month for that employee, including 
the days and hours of the shifts; and 
(2)  Two-week notice of a change in schedule of an employee and pays the 
employee an amount equal to one hour of the employee's regular wages if notice 
of a change in schedule is provided with less than one week's notice and pays the 
employee an amount equal to 3 hours of the employee's regular wages if notice of 
a change in schedule is provided less than 24 hours before the change; 
E.  Provide an amount equal to one hour of the employee's regular wages if the 
employee is scheduled for an "on-call" or "call-in" shift and is not called into work or 
if the employee is scheduled to work a shift that is interrupted by a nonworking 
period of more than 30 minutes, other than a meal break; 
F.  Provide an amount equal to one hour of an employee's regular wages for every 
hour of a shift that an employee does not work up to an amount equal to 3 hours of 
the employee's regular wages if the employee is required to report to work and is fit 
to work and does not work at the person's discretion; 
G.  Consider in good faith an employee's request for a schedule change and may not 
retaliate against an employee for requesting a schedule change; 
H.  Offer a part-time employee additional hours before hiring a new employee; and 
I.  Provide to a part-time employee the same privileges including starting pay, 
benefits and employee rights regarding time off and specific schedules that the person 
provides a full-time employee. 
For purposes of this subsection, a part-time employee is an employee who customarily 
works less than 30 hours each week and a full-time employee is an employee who 
customarily works 30 hours or more each week. 
2.  Reporting.  A person who receives a credit or reimbursement of tax under section 
5216-B, section 5219-W, section 5219-HH or chapter 917 annually shall report 
employment data to the bureau that the bureau determines necessary to carry out the 
provisions of this section. 
3.  Enforcement.  If the bureau determines that a person who receives a credit or 
reimbursement of tax under section 5216-B, section 5219-W, section 5219-HH or chapter 
is not in compliance with subsection 1, the bureau shall require the person to remit to 
the bureau a pro rata amount up to the full amount of the credit or reimbursement based 
upon the level of compliance by the person as determined by the bureau. 
4.  Alternate means of compliance.  Notwithstanding subsection 1, 2 or 3, a 
qualified community development entity under section 5219-HH may comply with the 
provisions of this section by entering into a community benefits agreement with the 
lender and borrower that provides tangible benefits to the workers in the affected 
community. A community benefits agreement under this subsection must set out specific 
measurable goals related to borrower operations and broader community improvements 
and include measurable goals, reporting requirements, penalty provisions and at least one 
of the following: 
A.  High-quality job creation; 
B.  Environmentally sustainable construction standards; 
C.  Educational scholarships for workforce development and training needs; or 
D.  Nonprofit, educational or governmental community supportive tenants. 
The Finance Authority of Maine may adopt routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A to carry out the provisions of this subsection. 
5.  Rules.  The bureau shall adopt routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A to carry out the provisions of this chapter and to create a formula to 
determine the level of compliance of a person under subsection 3. 
Sec. 6.  36 MRSA §6754, sub-§2, ¶G is enacted to read: 
G.  A qualified business that receives reimbursement under this chapter shall comply 
with section 5219-NN. 
SUMMARY 
This bill sets minimum standards in the level of wages and benefits and health care 
provided to employees and in scheduling employee shifts and hours for employers who 
receive certain tax credits or reimbursement of State tax.  The bill requires the employers 
to report their employment data to Maine Revenue Services and for Maine Revenue 
Services to require the employers who are not in full compliance with the minimum 
standards to remit back to the State a pro rata amount of the tax credit or reimbursement 
received based upon their level of compliance with the wage, benefits, health care and 
scheduling requirements.