Sec. 1. 36 MRSA §6652, sub-§4 is enacted to read:

4.__Temporary ineligibility.__A person that is required pursuant to section 6664 to refund a reimbursement benefit received pursuant to this chapter is ineligible to participate in the BETR program for a period of 2 years following the year for which the refund was required.

Sec. 2. 36 MRSA §6664 is enacted to read:

§6664.__Return of reimbursement for workforce reduction

A person that receives a benefit under this chapter must retain all or increase the number of its employees to remain eligible to participate in the BETR program.__Notwithstanding any other provision of this chapter, if a person reduces that person's workforce in this State, the person shall refund taxes reimbursed under this chapter for the year immediately previous to the year in which the workforce is reduced based upon the following schedule.

1.__Reduction of one to 75 positions.__If the person reduces its workforce by one to 75 positions, it must refund 25% of the reimbursement amount.

2.__Reduction of 76 to 150 positions.__If the person reduces its workforce by 76 to 150 positions, it must refund 50% of the reimbursement amount.

3.__Reduction of 151 to 250 positions.__If the person reduces its workforce by 151 to 250 positions, it must refund 75% of the reimbursement amount.

4.__Reduction of 251 or more positions.__If the person reduces its workforce by 251 or more positions, it must refund 100% of the reimbursement amount.

For purposes of this section, a person reduces that person's workforce if the person terminates or suspends positions for more than 3 months.

SUMMARY

This bill amends the Business Equipment Tax Reimbursement program to require a person that benefits under the program to return a portion of the benefits received if the person terminates or lays off a portion of that person's workforce for a