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Amend the amendment by striking out all of Parts M, N, O and Q.
Amend the amendment in Part T by striking out all of section 10 (page 557, lines 28 to 36 in amendment) and inserting the following:
‘Sec. T-10. 5 MRSA §17806, sub-§1, ¶A, as amended by PL 2009, c. 473, §3, is further amended to read:
 
A. Except as provided in paragraph A-1, whenever there is a percentage increase in the Consumer Price Index from July 1st to June 30th, the board shall automatically make an equal percentage increase in retirement benefits, beginning in September, up to a maximum annual increase of 4%3%.’
Amend the amendment in Part T by striking out all of sections 21 and 22 (page 562, lines 1 to 22 in amendment) and inserting the following:
‘Sec. T-21. Cost-of-living increase to retirement benefits.  Notwithstanding any other provision of law, retirement benefits may not be adjusted to reflect any cost-of-living increase that would otherwise begin in September 2011.
Sec. T-22. Noncumulative cost-of-living adjustment retirement benefit. No later than August 15, 2012, the Executive Director of the Maine Public Employees Retirement System shall notify the State Controller of the total cost of providing a payment to retirees that would otherwise have been eligible for a cost-of-living adjustment but for the operation of the suspension of the annual cost-of-living adjustment pursuant to the provisions of this Part. The benefit calculation is equal to the change in the Consumer Price Index for the year ending in June of the prior calendar year, up to a maximum of 3%, but in no case may the change be less than 0%, multiplied by the retirement benefit payments for the one-year period ending August 31st of that calendar year, excluding any retirement benefits calculated pursuant to this section. The State Controller shall transfer the amounts calculated pursuant to this section up to the balance available in the reserve for retirement benefits established in the Maine Revised Statutes, Title 5, section 1522 no later than September 1, 2012. If the balance in the reserve for retirement benefits on that date is not sufficient to fully fund the total benefits calculated, the State Controller shall transfer the amount that is available in the reserve to the Maine Public Employees Retirement System and the executive director shall proportionally reduce the benefit calculated by this section to equal the amount of funding provided.’
Amend the amendment by striking out all of Parts CCCC, FFFF, GGGG and HHHH.
Amend the amendment by inserting after Part QQQQ the following:
PART RRRR
‘
Sec. RRRR-1. Appropriations and allocations. The following appropriations and allocations are made.
 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
 
Executive Branch Departments and Independent Agencies - Statewide 0017
 
Initiative: Appropriates funds to partially restore changes made to future pension obligations.

GENERAL FUND	2011-12	2012-13	
Personal Services	$7,078,754	$7,335,347	
			
GENERAL FUND TOTAL	$7,078,754	$7,335,347	

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF			
DEPARTMENT TOTALS	2011-12	2012-13	
			
GENERAL FUND	$7,078,754	$7,335,347	
			
DEPARTMENT TOTAL - ALL FUNDS	$7,078,754	$7,335,347	

EDUCATION, DEPARTMENT OF
 
Teacher Retirement 0170
 
Initiative: Appropriates funds to partially restore changes made to future pension obligations.

GENERAL FUND	2011-12	2012-13	
All Other	$32,014,194	$32,883,974	
			
GENERAL FUND TOTAL	$32,014,194	$32,883,974	

EDUCATION, DEPARTMENT OF			
DEPARTMENT TOTALS	2011-12	2012-13	
			
GENERAL FUND	$32,014,194	$32,883,974	
			
DEPARTMENT TOTAL - ALL FUNDS	$32,014,194	$32,883,974	

JUDICIAL DEPARTMENT
 
Courts - Supreme, Superior and District 0063
 
Initiative: Appropriates funds to partially restore changes made to future pension obligations.

GENERAL FUND	2011-12	2012-13	
Personal Services	$461,439	$478,180	
			
GENERAL FUND TOTAL	$461,439	$478,180	

JUDICIAL DEPARTMENT			
DEPARTMENT TOTALS	2011-12	2012-13	
			
GENERAL FUND	$461,439	$478,180	
			
DEPARTMENT TOTAL - ALL FUNDS	$461,439	$478,180	

LAW AND LEGISLATIVE REFERENCE LIBRARY
 
Law and Legislative Reference Library 0636
 
Initiative: Appropriates funds to partially restore changes made to future pension obligations.

GENERAL FUND	2011-12	2012-13	
Personal Services	$21,189	$21,957	
			
GENERAL FUND TOTAL	$21,189	$21,957	

LAW AND LEGISLATIVE REFERENCE LIBRARY			
DEPARTMENT TOTALS	2011-12	2012-13	
			
GENERAL FUND	$21,189	$21,957	
			
DEPARTMENT TOTAL - ALL FUNDS	$21,189	$21,957	

LEGISLATURE
 
Legislature 0081
 
Initiative: Appropriates funds to partially restore changes made to future pension obligations.

GENERAL FUND	2011-12	2012-13	
Personal Services	$273,097	$283,005	
			
GENERAL FUND TOTAL	$273,097	$283,005	

LEGISLATURE			
DEPARTMENT TOTALS	2011-12	2012-13	
			
GENERAL FUND	$273,097	$283,005	
			
DEPARTMENT TOTAL - ALL FUNDS	$273,097	$283,005	

PROGRAM EVALUATION AND GOVERNMENT ACCOUNTABILITY, OFFICE OF
 
Office of Program Evaluation and Government Accountability 0976
 
Initiative: Appropriates funds to partially restore changes made to future pension obligations.

GENERAL FUND	2011-12	2012-13	
Personal Services	$13,341	$13,825	
			
GENERAL FUND TOTAL	$13,341	$13,825	

PROGRAM EVALUATION AND GOVERNMENT ACCOUNTABILITY, OFFICE OF			
DEPARTMENT TOTALS	2011-12	2012-13	
			
GENERAL FUND	$13,341	$13,825	
			
DEPARTMENT TOTAL - ALL FUNDS	$13,341	$13,825	

SECTION TOTALS	2011-12	2012-13	
			
GENERAL FUND	$39,862,014	$41,016,288	
			
SECTION TOTAL - ALL FUNDS	$39,862,014	$41,016,288	
 
’
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
 
SUMMARY
This amendment strikes the following Parts from Committee Amendment "A":
1. Part M, which increases the amount excluded from the estate tax;
2. Part N, which establishes a new individual income tax rate schedule, conforms the Maine standard deduction amounts to the federal amounts, repeals the exclusion of mortgage insurance premiums from Maine itemized deductions, conforms the Maine personal exemption amount to the federal amount, eliminates the Maine alternative minimum tax on individuals, reduces the lump-sum retirement plan distribution tax and reduces the early distribution from retirement plan tax;
3. Part O, which repeals the income tax addition modifications related to the federal Section 179 business expensing thresholds for tax years beginning on or after January 1, 2011 and provides a credit equal to 10% of the federal bonus depreciation on property placed in service in Maine during tax years beginning in 2011 and 2012, excluding certain utility and telecommunications property;
4. Part Q, which enacts the Maine New Markets Capital Investment Program, which is modeled after the federal tax credit to attract investment in economically distressed areas;
5. Part CCCC, which provides new minimum taxability thresholds for nonresidents. The new thresholds permit greater income-earning activity by nonresidents in the State before Maine income tax liability is triggered. This Part also excludes from the determination of taxability in the State up to 24 days of personal services related to certain training, management functions, equipment upgrades and new investment;
6. Part FFFF, which exempts from sales tax plastic bags used by redemption centers to sort, store or transport returnable beverage containers;
7. Part GGGG, which expands the current exemption from sales and use tax for aircraft to apply to all aircraft, regardless of weight or the state of residency of the purchaser and expands the exemption to include sales of repair and replacement parts used exclusively in aircraft and in the overhauling and rebuilding of aircraft and aircraft parts; and
8. Part HHHH, which provides an income tax credit for investment in or contributions to eligible public fishery infrastructure projects in the State. The credit applies to both freshwater and saltwater fisheries.
The amendment amends Part T to eliminate the $20,000 cap on the amount of retirement benefits subject to a cost-of-living adjustment and limits the freeze on adjustments of retirement benefits for members of these retirement programs to one year, instead of 3 as proposed in Committee Amendment “A.”
The amendment adds an appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)