(2)__Subparagraph (4) or (5) when the credit was first applied for with regard to a tax year beginning on or after October 1, 2001; or

(3)__Subparagraph (6) when the property that is the basis of the claim was first placed in service in Maine on or after April 1, 2002.

2.__Wage and benefit standards.__Each employer receiving a conditional economic development incentive must certify compliance with the following wage and benefit standards at the time when the incentive is applied for, claimed or renewed.

A.__Hourly wages subject to taxation under Title 36, chapter 803 paid to employees based in the State must exceed 1/60th of the average weekly wage as determined by the Department of Labor, Bureau of Employment Services for the county in which the employee is based.

B.__The employer must maintain a health benefit plan that is available to all of the employer's employees based in the State who have been employed for 60 days or more on a schedule that regularly exceeds 25 hours per week.

C.__The employer must pay at least 60% of the cost of covering each employee who is under a health benefit plan.

D.__The employer must pay at least 50% of the cost of benefits for children under 19 years of age who are covered under the health benefit plan as dependents of an employee.

E.__The employer must be able to document a reasonably accurate apportionment between the cost of benefits attributable to dependents and the cost of benefits attributable to employees.

Each agency administering a conditional economic development incentive for which standards are required under this subsection may adopt routine technical rules pursuant to chapter 375, subchapter II-A to implement this subsection.__The agency shall suspend or terminate conditional economic development incentives to an employer that does not properly certify compliance with this subsection.__The agency shall recover the value of any conditional economic development incentives paid or allowed on the basis of a false or inaccurate certification.__An employer

that intentionally violates this subsection shall reimburse the State for all conditional economic development incentives received during the period in which the violation occurred and shall pay a penalty of twice the amount of any conditional economic development incentives received on the basis of false or misleading information provided.

3.__Relocation to another municipality.__An employer that relocates after October 1, 2001 from one municipality in the State to another municipality in the State located within 100 miles of the former municipality does not qualify for an economic development incentive under section 13070-J, subsection 1, paragraph D, subparagraph (3) absent a clear and convincing showing that the relocation involves a significant expansion that could not have been made in the former municipality.

4.__Waiver.__An agency administering a conditional economic development incentive may waive any requirement for receipt of the conditional economic development incentive under subsection 2 or 3 if a claimant demonstrates that the reason for not meeting the requirement is economic hardship beyond the control of the claimant.

SUMMARY

This bill provides that future applicants for municipal tax increment financing, the jobs and investment tax credit, the research expense tax credit and business property tax reimbursement must certify that they pay hourly wages that are at least 1/60th of the average weekly wage for the county where the employee is based and provide health insurance benefits. The bill provides a waiver if the failure to meet standards results from economic hardship beyond the control of the claimant.