Good Morning from Augusta,
The legislative session drags on down here as the realization has come that nearly 50% of the referred bills to committees have not yet been voted out with yea or nea votes. At this point in May, the Legislature should be meeting at least three days a week or even four days a week to take up bills that have been reported out, so that it can complete its work by mid-June. That is not happening and the joint bodies are still only meeting twice a week and providing time to Committees to slog through their work. At this rate, with an expected adjournment date in the second week of June, my gut tells me that about 50% of the referred bills will be carried over to next year, making for a lively 2nd session.
Also this week, Governor Mills introduced a change package, which is essentially her “additional funding requests” for the biennial budget. This request is based upon newly revised revenue forecasts that have determined that the state is once again flush with tax revenue. The change package contains $432 million in new spending and $455 million in transfers, bringing the overall budget to just over $10.3 billion, when added to the majority budget that was passed back in March.. Priorities in this new package include transportation, housing, the School Revolving Renovation Fund, child care and more. Public hearings on the package are expected to be scheduled soon, but the bill has a long road ahead as it has become a wedge between majority Democrats and the Governor related to tribal sovereignty.
It also appears that the paid family medical leave bill, sponsored by Senator Maddie Daughtry (D-Brunswick) will be published early next week. This dense, complicated and likely expensive new bill will undoubtedly be carried over to 2024. Once printed, we will take a look at it and see how it will impact the membership.
As I reported last week, there are two bills up for public hearing on Monday, May 15th. LD 1849 An Act to Ensure Fair and Timely Payment in the Harvesting of Forest Products and LD 1874, An Act to Support Maine Loggers' and Truckers' Right to Work in Maine by Improving Labor Standards. Both bills are late session submissions by Senate President Troy Jackson.
LD 1849 would mandate the Department of Ag., Conservation and Forestry conduct random inspections to ensure service contractors are being paid timely and LD 1849 attempts to disallow the Bureau of Public Lands from holding land certification if the certification system doesn’t support labor standards.
Our belief is that LD 1849 is an attempt to remove SFI certification from state lands, in favor of FSC, but it’s hard to tell when it comes to legislation introduced by Senator Jackson. The PLC will submit written statements of support on both bills but will not testify in person.
As we approach the middle of May, the reference of new bills seems to be finally slowing down. 1,942 of the expected 2,000 bills have now progressed on the path to legislation, transitioning from an LR# (Legislative Reference - bill request) to an LD# (Legislative Document - bill reviewed and approved by the Revisor's Office) and have been referred to committees of jurisdiction by both the Senate and the House of Representatives.
I have updated our bill tracking spreadsheet so you can see the bills and the related language.
Last Week’s Legislative Activity May 8 – May 12, 2023
Tuesday, May 9, 2023
Public Hearing, Labor and Housing Committee, LD 1368, An Act to Ensure Fairness in Unemployment Benefits by Clarifying Laws Regarding Labor Organizations, This bill, sponsored by Rep. Amy Roeder (D-Bangor) establishes that a claimant for unemployment benefits who is a member of a bona fide labor union is considered to meet the requirement to actively seek work to maintain eligibility for unemployment benefits if that claimant uses and complies with the placement services of the union hiring hall in seeking employment. It also adds consideration of whether fringe benefits are substantially less favorable than those prevailing for similar work in the locality in determining whether work is suitable for purposes of the unemployment insurance program. Finally, it provides that work is unsuitable for a claimant if acceptance of that work would prevent that claimant from maintaining membership in a bona fide labor organization. The PLC monitored this bill as we decided not to testify and bring attention to the six week work search waiver and favorable relationship we have with the Maine Dept. of Labor on unemployment.
Work Session, Energy, Utilities and Technology Committee, LD 1606, An Act to Finance Clean Energy and Infrastructure in Maine, This bill, sponsored by Senator Daughtry (D-Brunswick) directs the Maine Clean Energy and Sustainability Accelerator to establish a dedicated grant program to finance energy audits and feasibility studies for renewable energy or energy efficiency retrofit projects in public elementary and secondary schools. It also directs the Efficiency Maine Trust to establish a pilot project to provide bridge funding for up to 2 years, in the form of zero-interest loans, for public elementary and secondary schools to finance the upfront costs of distributed generation solar or energy efficiency retrofit projects. The PLC testified in conditional support of the bill, but requested that it be amended to allow biomass projects to be eligible for funding in the two year bridge funding program for schools. This bill was tabled and not taken up last week.
Work Session, Transportation Committee, LD 1025, An Act to Improve Maine’s Economy by Changing the Hours of Operation for Oversize Loads, This bill, sponsored by Rep. Joseph Underwood (R-Presque Isle) directs the Secretary of State to adopt rules regarding overlimit movement permits to allow movement on any day of the week, including a holiday, other than Sunday. The bill directs the Secretary of State to adopt rules allowing for permitted overlimit moves 1/2 hour before sunrise until 10 p.m. The bill directs the Secretary of State to adopt rules to allow vehicles up to 12 feet in width to be issued long-term permits. The PLC testified in support of this bill, but asked that the bill be amended to be consistent with the Aroostook County special over width permit program that was made permanent by Maine DOT in 2019. After much discussion, the Secretary of State’s office announced that it would conduct rulemaking to allow oversized loads to move on Saturdays on non-holiday weekends, from sun up to 12 pm, from April 1 to Nov. 1. The rulemaking will also finalize the Aroostook County special over width permit program, which has been delayed by four years. The Committee voted Ought Not to Pass on the bill, but will send a letter supporting the rulemaking and requesting a report back in 2024. This outcome is a huge victory for all contractors in Maine that haul equipment.
Wednesday, May 10, 2023
Work Session, Environment and Natural Resources Committee, 1 pm LD 1411, An Act to Require the Adoption of Sector-specific Greenhouse Gas Emissions Limits, This bill, sponsored by Rep. Doudera (D-Camden), requires the Department of Environmental Protection to adopt rules setting sector-specific biennial limits on greenhouse gas emissions from energy sources in the commercial sector, industrial sector, residential sector and transportation sector and for electricity and combined heat and power plants whose primary business is to sell electricity or electricity and heat to the public. The bill also requires the Department of Transportation to adopt rules as necessary to ensure compliance with the State's greenhouse gas emissions levels. The PLC testified in opposition to the bill, as did the Mills Administration. Knowing that the bill would ultimately be killed, the sponsor amended it to require further reporting and data collection on greenhouse gases by Maine DOT and DEP. The Committee voted 11-2 Ought to Pass and the legislation will not have any impact on industry at this point in time.
Work Session, Labor and Housing Committee, LD 827, An Act to Allow Employees to Request Flexible Work Schedules, This bill, sponsored by Rep. Amy Roeder (D-Bangor), provides that an employee of a public or private employer may request a flexible work schedule for up to 6 months at a time and that the employer may not discipline an employee who requests a flexible work schedule. The bill provides that the flexible work schedule continues in 6-month increments unless the employer provides written notice to the employee. The PLC testified in opposition to this bill. The sponsor provided an amendment to the Committee which essentially waters it down and tries to promote a conversation on flexible work between employees and employers. That said, it still has an enforcement provision and we are still opposed to the idea. The Committee voted Ought to Pass on straight party lines 7-6) and it will now move to the floor.
Work Session, Labor and Housing Committee, LD 1803, An Act to Improve the Maine Workers’ Compensation Act of 1992. This bill, which is being presented by the Maine Workers’ Comp. Board, seeks to clarify some pieces of the pre-determination process for independent contractors who seek an exemption from Workers Comp. because they are sole proprietors. The PLC has reviewed the proposed changes and has discussed them with the Workers’ Comp. Board and has no issue with the legislation. The PLC testified in support of the bill. The Committee voted Ought to Pass/Ought Not to Pass on party lines.
Work Session, Taxation Committee, LD 1303, An Act to Exempt Boats and All-terrain Vehicles Purchased for Qualified Commercial Fishing or Commercial Farming from State Sales Tax This bill, sponsored by Rep. Faulkingham (R-Winter Harbor), exempts from sales tax sales of boats and all-terrain vehicles used directly and exclusively in commercial fishing or commercial agricultural production to a qualified purchaser. The bill defines "qualified purchaser" to mean a purchaser who, pursuant to the law governing the refund of sales tax on depreciable machinery and equipment purchases, has obtained a certificate from the State Tax Assessor stating that the purchaser is engaged in commercial fishing or commercial agricultural production. It also requires the seller to obtain from the purchaser an affidavit as prescribed by the assessor attesting to the qualification of the purchase for exemption. The PLC testified in support of this bill and the sponsor presented an amendment to allow timber harvesting companies to qualify. The Committee considered the bill again and after a lively discussion, voted unanimously Ought to Pass in favor of allowing farmers, fisherman and loggers to purchase UTV’s as sales tax exempt. While not a major expense to loggers, this is a small victory in an otherwise dysfunctional session. It is unclear what the fiscal note will be, but the bill should get to the special appropriations table for consideration at the end of the session and it does have a strong advocate in Rep. Faulkingham.
Work Session, Taxation Committee, LD 1486, An Act to Exempt Tractor Trailer Trucks from the Excise Tax, This bill, sponsored by Senator Stewart (R-Presque Isle) exempts trucks and truck tractors registered for more than 26,000 pounds from the excise tax. The PLC testified in support of this legislation as it aligns with what we are trying to do with the Federal Excise Tax. The Mills Administration and Maine Municipal Association testified in opposition. The Committee voted unanimously Ought Not to Pass.
Next Week’s Legislative Activity May 15 – May 19, 2023
Monday, May 15, 2023
Public Hearing, Agriculture, Conservation and Forestry Committee, 10 am LD 1849 An Act to Ensure Fair and Timely Payment in the Harvesting of Forest Products, This bill, sponsored by Senator Troy Jackson (D-Allagash) requires the Department of Agriculture, Conservation and Forestry or a wood scaler under contract with the department to conduct random inspections to ensure that a contractor is paid within 15 days of weighing wood. The PLC has not heard that this is an issue from the membership, but will testify in support if resources exist for such a program. The PLC will also advocate that service contractors get compensated if harvested wood does not get transported within 15 days of being cut.
Public Hearing, Agriculture, Conservation and Forestry Committee, 10 am LD 1874, An Act to Support Maine Loggers' and Truckers' Right to Work in Maine by Improving Labor Standards, This bill provides that the Department of Agriculture, Conservation and Forestry may obtain certification from a forest certification program for state land only if the program requires labor standards for logging and trucking. The PLC will submit testimony in support of such a provision on state owned lands when those lands carry forest certification. We believe that this is directed at SFI.
Tuesday, May 16, 2023
Work Session, Labor and Housing Committee, 1 pm, LD 1368, An Act to Ensure Fairness in Unemployment Benefits by Clarifying Laws Regarding Labor Organizations, This bill, sponsored by Rep. Amy Roeder (D-Bangor) establishes that a claimant for unemployment benefits who is a member of a bona fide labor union is considered to meet the requirement to actively seek work to maintain eligibility for unemployment benefits if that claimant uses and complies with the placement services of the union hiring hall in seeking employment. It also adds consideration of whether fringe benefits are substantially less favorable than those prevailing for similar work in the locality in determining whether work is suitable for purposes of the unemployment insurance program. Finally, it provides that work is unsuitable for a claimant if acceptance of that work would prevent that claimant from maintaining membership in a bona fide labor organization. The PLC will testify in opposition to the bill as it creates special treatment for labor unions.
Wednesday, May 17, 2023
Work Session, Energy, Utilities and Technology Committee, 10 am LD 1606, An Act to Finance Clean Energy and Infrastructure in Maine, This bill, sponsored by Senator Daughtry (D-Brunswick) directs the Maine Clean Energy and Sustainability Accelerator to establish a dedicated grant program to finance energy audits and feasibility studies for renewable energy or energy efficiency retrofit projects in public elementary and secondary schools. It also directs the Efficiency Maine Trust to establish a pilot project to provide bridge funding for up to 2 years, in the form of zero-interest loans, for public elementary and secondary schools to finance the upfront costs of distributed generation solar or energy efficiency retrofit projects. The PLC testified in conditional support of the bill, but requested that it be amended to allow biomass projects to be eligible for funding in the two year bridge funding program for schools.
Public Hearing, Taxation Committee, 10 am, LD 1338, An Act to Amend the Maine Exclusion Amount in the Estate Tax, This bill, sponsored by Rep. Collings (D-Portland), is yet another attempt for the third session in a row, to return the exclusion amount, below which the Maine estate tax does not apply, to $2,000,000 from the $5,600,000 in current law for estates of decedents dying on or after January 1, 2024. The Treasurer of State must credit 100% of the revenues generated by the reduction in the exclusion amount to the Maine State Housing Authority to be used to support affordable housing. Twenty-five percent of the amount credited must be used to support affordable housing for veterans. The bill also creates an additional exclusion amount from the estate tax for family farms and aquaculture, fishing and wood harvesting businesses of up to $3,800,000. This additional exclusion applies to farmland or depreciable machinery and equipment used in agriculture, aquaculture, fishing or wood harvesting that is inherited by a family member and remains in commercial use for 5 years following transfer. The PLC will testify in opposition.
Public Hearing, Taxation Committee, 10 am, LD 1648, An Act to Make Changes to the Farm and Open Space Tax Law, This bill, sponsored by Rep. Boyle (D-Gorham) establishes a new method for the valuation of land under the farm and open space tax law. It extends eligibility for a reduced valuation to land managed under a carbon conservation management plan, which is a written agreement between the landowner and the Department of Agriculture, Conservation and Forestry that describes strategies to be used on a parcel of land at least 10 acres in size to increase carbon storage or improve carbon conservation. It removes the requirement that wildlife habitat land meet specific criteria to be eligible for a reduced valuation, such as being designated by the Department of Inland Fisheries and Wildlife as supporting important wildlife habitat or identified by the Department of Agriculture, Conservation and Forestry as supporting a natural vegetation community. Instead, such land is eligible for a reduced valuation if the landowner establishes and complies with a written management agreement between the landowner and either the Department of Inland Fisheries and Wildlife or the Department of Agriculture, Conservation and Forestry to ensure that the habitat benefits provided by the land are not lost. This bill establishes specific criteria for management plans, including requiring them to contain specific strategies for compliance, be sworn to and complied with by the landowner and renewed at least once every 10 years. This bill requires the State Tax Assessor to reimburse municipalities for revenue lost as a result of being enrolled under the farm and open space tax law in a manner similar to the method of reimbursement under the Maine Tree Growth Tax Law. This bill also removes the provision limiting to no more than 15,000 acres the amount of land that may be enrolled by a landowner under the farm and open space tax law. The PLC will testify in opposition because it creates another tax exemption for not harvesting wood.
Thursday, May 18, 2023
Public Hearing, Taxation Committee, 1 pm, LD 1894, An Act to Establish a Home Heating Tax Exclusion, This bill allows an individual taxpayer an income tax deduction for costs incurred by the taxpayer for electricity, oil, wood or other fuel used to heat the taxpayer's primary residence located in this State. The PLC will testify in support of this bill.
Work Session, Taxation Committee, 3 pm, LD 1338, An Act to Amend the Maine Exclusion Amount in the Estate Tax,
Work Session, Transportation Committee, 1 pm LD 607, Resolve, To Direct The Department Of Transportation To Examine The Feasibility Of Extending Interstate 95 To The St. John Valley. Sponsored by Representative Robert Albert, LD 607 would direct the Department of Transportation to study the feasibility of extending Interstate 95 to the St. John Valley and make a report of its findings to the Joint Standing Committee on Transportation no later than December 6, 2023. The PLC testified in support of this legislation.
Contact Your Representative or Senator
Don’t know who your Representative or Senator is? A complete roster, sortable by town, is available here: House Members Senators
In your message, clearly state the bill(s) you support and why each one is important to Loggers in Maine. Introduce yourself and/or company.
- Identify the town you live in or where your business is located. If you work in multiple towns, please identify those towns (we need to show that harvesting occurs across the state);
- # employees (gross pay roll figure would be good);
- # of subcontractors your business supports (e.g. how much you spend for repairs, fuel, how many logging crews you keep busy, etc.),
- Volume of wood you move annually;
Conclude your message by thanking the Representatives for their service to the state and asking them to support these bills.
Have a great weekend and please do not hesitate to contact me if you have any questions or concerns.
Best,
Dana