PART A
‘Sec. A-1. 30-A MRSA §5250-O, as amended by PL 2007, c. 263, §1, is repealed and the following enacted in its place:
§ 5250-O. Certification of qualified business; high-quality jobs requirement
1. Certification. A business may apply to the commissioner for certification as a qualified Pine Tree Development Zone business. Upon review and determination by the commissioner that a business is a qualified Pine Tree Development Zone business, the commissioner shall issue a certificate of qualification to the business that includes a description of the qualified business activity for which the certificate is being issued. Prior to issuing a certificate of qualification, the commissioner must find that the business activity meets the requirements of subsection 2 and will not result in a substantial detriment to existing businesses in the State. In order to make this determination, the commissioner shall consider those factors the commissioner determines necessary to measure and evaluate the effect of the proposed business activity on existing businesses, including whether any adverse economic effect of the proposed business activity on existing businesses is outweighed by the contribution to the economic well-being of the State. The State Economist must review applications under this section and provide an advisory opinion to assist the commissioner in making findings under this section.
2. Conditions of eligibility; high-quality jobs. To qualify for certification as a qualified Pine Tree Development Zone business under subsection 1, in addition to the other requirements of this chapter, the applicant must demonstrate that:
A. The business will create or retain employment positions that pay at least 80% of the statewide average for the positions created or retained as determined by the Department of Labor or 120% of the statewide average of wages for all occupations as determined by the Department of Labor, whichever is greater;
B. The business creating or retaining the positions under paragraph A agrees to provide 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 shifts; and
C. The business creating or retaining the positions under paragraph A agrees to offer a part-time employee additional hours before hiring a new employee. For purposes of this paragraph, a part-time employee is an employee who customarily works less than 30 hours each week.
3. Verification and enforcement of conditions of eligibility. The department shall require annual reporting by each person certified as a qualified Pine Tree Development Zone business under subsection 1 indicating whether the certified business continues to meet the requirements of subsection 2. The department shall determine continuing eligibility annually and shall report to the State Tax Assessor if any certified business ceases to meet the requirements of subsection 2 and shall indicate the percentage of noncompliance. The department shall adopt rules providing a process for calculating the percentage of noncompliance.
4. Rules. The department shall adopt rules to implement subsections 2 and 3. Rules adopted under this subsection are major substantive rules as defined by Title 5, chapter 375, subchapter 2-A.
Sec. A-3. 36 MRSA §5219-W, sub-§6 is enacted to read:
6. Cessation of eligibility. For tax years beginning on or after January 1, 2016, a taxpayer's eligibility for a credit under this section is reduced for any year for which the Department of Economic and Community Development has reported to the State Tax Assessor under Title 30-A, section 5250-O, subsection 3 that the taxpayer has ceased to meet the eligibility requirements for certification. The percentage reduction in the credit must be the same as the percentage of noncompliance reported by the department.
Sec. A-5. Effective date. This Part takes effect September 1, 2016.
PART B
Sec. B-1. 10 MRSA §1100-Z, sub-§3, ¶I is enacted to read:
I. The authority may not certify qualified equity investments or long-term debt securities under paragraph G as eligible for tax credits under Title 36, section 5219-HH unless the qualified community development entity seeking certification satisfies the requirements of subsection 8 or 9.
Sec. B-2. 10 MRSA §1100-Z, sub-§7, as enacted by PL 2011, c. 380, Pt. Q, §1 and affected by §7, is amended to read:
7. Rules. By December 30, 2011, the authority shall adopt rules necessary to implement this section. Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 375, subchapter 2-A except that the authority shall adopt major substantive rules to implement subsections 8 to 10.
Sec. B-3. 10 MRSA §1100-Z, sub-§§8 to 10 are enacted to read:
8. High-quality jobs requirement. To qualify for certification of a qualified equity investment or long-term debt securities for a credit under Title 36, section 5219-HH, a qualified community development entity must demonstrate that the requirements of this subsection or subsection 9 are met:
A. The business or businesses that are the subject of the investment that forms the basis for a credit under this section will create or retain employment positions that pay at least 80% of the statewide average for the positions created or retained as determined by the Department of Labor or 120% of the statewide average of wages for all occupations as determined by the Department of Labor, whichever is greater;
B. The business creating or retaining the positions under paragraph A agrees to provide 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 shifts; and
C. The business creating or retaining the positions under paragraph A agrees to offer a part-time employee additional hours before hiring a new employee. For purposes of this paragraph, a part-time employee is an employee who customarily works less than 30 hours each week.
9. Alternate means of establishing eligibility. To qualify for certification of a qualified equity investment or long-term debt securities for a credit under Title 36, section 5219-HH, a qualified community development entity may demonstrate that it has entered into a community benefits agreement 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. The creation of high-quality jobs;
B. Positive environmental impacts, including, but not limited to, environmentally sustainable construction standards, avoided greenhouse gas emissions, resource efficiency and avoided pollution;
C. Development of a skilled workforce through, for example, the provision of educational scholarships and workforce development programs and training; or
D. Nonprofit, educational or governmental community supportive tenants.
10. Verification and enforcement of conditions of eligibility; rules. The authority shall require annual reporting by each qualified community development entity with a tax credit approved under subsection 3, paragraph G indicating whether the entity continues to meet the requirements of eligibility. The authority shall determine continuing eligibility annually and shall report to the State Tax Assessor if any qualified equity investment or long-term debt security ceases to meet the eligibility requirements for the tax credit and shall indicate percentage of noncompliance. The authority shall adopt rules providing a process for calculating the percentage of noncompliance. Rules adopted under this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. B-4. 36 MRSA §5219-HH, sub-§8 is enacted to read:
8. Cessation of eligibility. For tax years beginning on or after January 1, 2016, a taxpayer's credit under this section is reduced for any year for which the authority has reported to the State Tax Assessor under Title 10, section 1100-Z, subsection 10 that the taxpayer has ceased to meet the eligibility requirements for the tax credit. The percentage reduction in the credit must be the same as the percentage of noncompliance reported by the authority.
Sec. B-5. Effective date. This Part takes effect September 1, 2016.
PART C
Sec. C-1. 10 MRSA §1100-T, sub-§§7 and 8 are enacted to read:
7. High-quality jobs requirement. To qualify for certification of an investment for a credit under Title 36, section 5216-B, a person seeking certification must demonstrate that the investment meets the requirements of this subsection:
A. The business or businesses that are the subject of the investment that forms the basis for a credit under this section will create or retain employment positions that pay at least 80% of the statewide average for the positions created or retained as determined by the Department of Labor or 120% of the statewide average of wages for all occupations as determined by the Department of Labor, whichever is greater;
B. The business creating or retaining the positions under paragraph A agrees to provide 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 shifts; and
C. The business creating or retaining the positions under paragraph A agrees to offer a part-time employee additional hours before hiring a new employee. For purposes of this paragraph, a part-time employee is an employee who customarily works less than 30 hours each week.
The authority shall adopt major substantive rules under Title 5, chapter 375, subchapter 2-A to implement this subsection.
8. Verification and enforcement of conditions of eligibility; rules. The authority shall require annual reporting by each person with a certified tax credit under this section indicating whether each business that is the subject of the investment continues to meet the requirements of eligibility for the certification. The authority shall determine continuing eligibility annually and shall report to the State Tax Assessor if any investment ceases to meet the eligibility requirements for certification and shall indicate the percentage of noncompliance. The authority shall adopt major substantive rules pursuant to Title 5, chapter 375, subchapter 2-A to implement this subsection.
Sec. C-2. 36 MRSA §5216-B, sub-§6, is enacted to read:
6. Cessation of eligibility. Notwithstanding subsection 2, for tax years beginning on or after January 1, 2016, a taxpayer's credit under this section is reduced for any year for which the authority has reported to the State Tax Assessor under Title 10, section 1100-T, subsection 8 that the taxpayer has ceased to meet the eligibility requirements for certification. The percentage reduction in the credit must be the same as the percentage of noncompliance reported by the authority.
Sec. C-3. Effective date. This Part takes effect September 1, 2016.
PART D
Sec. D-1. Verification of employment standards. The Department of Administrative and Financial Services, Maine Revenue Services, the Department of Economic and Community Development and the Finance Authority of Maine shall jointly evaluate options for verification of taxpayer compliance with the employment standards required as conditions of eligibility for income tax credits under this Act and shall report to the Joint Standing Committee on Taxation by January 15, 2016 their recommendations with regard to the penalties imposed for noncompliance and any statutory changes necessary to enforce the penalties for noncompliance. The committee may submit legislation to the Second Regular Session of the 127th Legislature related to the report.
PART E
Sec. E-1. Appropriations and allocations. The following appropriations and allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Business Development 0585
Initiative: Provides funds for one Project Development Officer position and related All Other necessary to verify and enforce the high-quality jobs requirement.
| GENERAL FUND | 2015-16 | 2016-17 |
|
POSITIONS - LEGISLATIVE COUNT
|
1.000 | 1.000 |
|
Personal Services
|
$49,530 | $67,954 |
|
All Other
|
$60,000 | $25,000 |
 |
|
|
| GENERAL FUND TOTAL | $109,530 | $92,954 |
| ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF | ||
| DEPARTMENT TOTALS | 2015-16 | 2016-17 |
|
GENERAL FUND
|
$109,530 | $92,954 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS | $109,530 | $92,954 |
FINANCE AUTHORITY OF MAINE
Finance Authority of Maine 0582
Initiative: Provides funds for one half-time position to verify and enforce the high-quality jobs requirement.
| GENERAL FUND | 2015-16 | 2016-17 |
|
All Other
|
$38,573 | $53,487 |
|
|
|
| GENERAL FUND TOTAL | $38,573 | $53,487 |
| FINANCE AUTHORITY OF MAINE | ||
| DEPARTMENT TOTALS | 2015-16 | 2016-17 |
|
GENERAL FUND
|
$38,573 | $53,487 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS | $38,573 | $53,487 |
| SECTION TOTALS | 2015-16 | 2016-17 |
|
GENERAL FUND
|
$148,103 | $146,441 |
|
|
|
| SECTION TOTAL - ALL FUNDS | $148,103 | $146,441 |