122nd MAINE LEGISLATURE
		LD 1064		LR 0455(01)
	An Act To Clarify the Laws Governing Agricultural Composting Operations
	Fiscal Note for Original Bill
	Sponsor: Sen. Woodcock of Franklin
	Committee: Agriculture, Conservation and Forestry
	Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2005-06	2006-07	2007-08	2008-09
Net Cost (Savings)
	General Fund		$250,272	$21,690	$22,558	$23,460
Revenue
	General Fund		($250,272)	($21,690)	($22,558)	($23,460)
	Other Special Revenue Funds		($13,728)	($1,190)	($1,237)	($1,287)
Fiscal Detail and Notes
	Proposing to add agricultural composting to the definition of agricultural labor and allowing a person to receive a refund for contributions paid into the Unemployment Compensation Fund may raise conformity issues with the Federal Unemployment Tax Act and the Social Security Act.  Being ruled out of conformity with the Federal Unemployment Tax Act could potentially jeopardize employers' FUTA tax credits and the State's employment security administrative grants.  Employer FUTA tax credits are estimated to be over $200 million for 2005.  Administrative grants received by the Bureau of Unemployment Compensation in 2004-2005 are $13,700,000.  Other employment security programs in the Department of Labor, including the Bureau of Employment Services and the Division of Labor Market Information Services could also lose administrative funding.
	The provision that would allow an employer to apply retroactively for reimbursement of funds paid in to the Unemployment Compensation Fund under certain conditions may create a conformity issue under FUTA section 3303(a)(1) and could jeopardize employers' FUTA additional tax credit, estimated to be between $145 - $150 million for 2005.
	This bill is expected to reduce General Fund revenue by $250,272 in fiscal year 2005-06 and $21,690 in fiscal year 2006-07 as a result of applying retroactively a sales tax exemption for agricultural composting.