Resolve, To Provide Greater Depth and Transparency to the Review of Foregone Revenue Identified in the Biennial Tax Expenditure Report

Sec. 1. Independent analysis. Resolved: That, by November 1, 2013, the Department of Administrative and Financial Services, Bureau of Revenue Services shall issue a request for proposals for the purpose of contracting with an independent academic policy analysis organization to review and analyze attempts by the Legislature and executive agencies over the past 20 years, including biennial tax expenditure reports, to determine the impact and effectiveness of tax expenditures as defined in the Maine Revised Statutes, Title 5, section 1666 and recent efforts of other states and the Federal Government to perform a similar function and to recommend options for the Legislature to analyze tax expenditures in the future. The bureau shall select a contractor to perform the work required under this resolve by March 1, 2014. The contract must require completion of the contracted work by December 15, 2014.

1. Format for analysis. The contract must require the contractor to separate tax expenditures into categories based on the general purpose of the expenditures. Categories may include tax expenditures for government entities, economic development, charitable organizations and education organizations, including those that advance knowledge in the fields of science and the humanities; conformity with federal law; efficiency of administration; and any other categories the contractor determines advisable to facilitate analysis. The contractor shall identify in its analysis any tax expenditures for which the purpose cannot be determined.

2. Options for the Legislature. The contract must require the contractor to identify and analyze options that may be used by the Legislature to measure the effectiveness of individual tax expenditures based on the purpose of those expenditures. The options may include procedures that focus on those tax expenditures with an estimated cost exceeding a cost level that the contractor considers significant. The options must include methods of identifying the objectives for each expenditure and methods of measuring the extent to which the objectives have been accomplished. The options must include an estimate of the amount of resources and funding that would be necessary to perform the described tasks.

3. Consultation. The contract must require the contractor to meet at least once with the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over taxation matters to provide a preliminary plan for performing the work required under the contract and obtain information regarding the types of data and analysis of tax expenditures that would be most helpful to those committees in performing their legislative oversight functions.

4. Report. The contract must require the contractor to submit a report providing the elements required under the contract to the bureau and to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over taxation matters of the First Regular Session of the 127th Legislature by December 15, 2014; and be it further

Sec. 2. Appropriations and allocations. Resolved: That the following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Bureau of Revenue Services

Initiative: Provides funding to contract with an independent academic policy analysis organization to review, analyze and develop options for evaluation of tax expenditures.

GENERAL FUND	2013-14	2014-15
All Other	$100,000	$0
GENERAL FUND TOTAL	$100,000	$0

summary

This resolve requires the Department of Administrative and Financial Services, Bureau of Revenue Services to contract with an independent academic policy analysis organization by March 1, 2014 to review, analyze and develop options that would permit the Legislature to evaluate the effectiveness of tax expenditures and present a report of its work to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over taxation matters of the First Regular Session of the 127th Legislature.