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Good morning from Augusta,
It was a productive and eventful week at the Legislature with work on several PLC priority bills as well other issues that we are following closely.
On Monday, deliberations on the House and Senate floor began on the Paid Family and Medical Leave (PFML) bills. Unfortunately, despite extensive discussion and success, only one remaining bill advanced, LD 894, An Act to Amend Laws Governing Paid Family Medical Leave, sponsored by Senate President Daughtry. This bill, which was enacted in the House and is now awaiting action in the Senate, establishes a whole new bureaucratic agency, the “Bureau of Paid Family and Medical Leave” at the Department of Labor. It also gives authority to this new agency to collect premiums and enforce penalties for non-payment. Supposedly, this new agency will have no fiscal impact, but you know as well as I do that there will be either tax increase or a request for funding in the future to operate it.
I want to extend my sincere thanks to all the members who took the time to email their Representatives or Senators in support of common-sense reforms to the PFML program. While we didn’t achieve our goal of making common sense changes, your voices were heard, and legislators will remember that you spoke up.
In much better news, we experienced some very positive movement on three of our remaining priority bills for this session!
Actions Taken on Our Priority Bills
LD 195, “An Act to Create the Small Business Capital Savings Account Program”, Sen. Trey Stewart (R-Aroostook), Housing and Economic Development Committee. (Support)
LD 195 is our bill to create a pilot program for businesses in the farming, fishing, and forestry industries to set aside revenue tax-free, up to $250,000 at one time, in a savings account to be used in the future for capital expenditures. By creating these accounts, your business can save and later re-invest without paying state income taxes and not be forced to spend that money all in the same tax year. The PLC testimony can be found here.
I am very pleased to report that on June 4th, LD 195 passed the Senate with strong bipartisan support in a 22-12 vote. We worked closely with the bill’s sponsor to secure Republican votes and lobbied Senate Democrats with logging, fishing, and farming businesses in their districts. In the end, even with the Ought Not to Pass Report being moved by the Committee Chair, Senator Chip Curry, we were able to secure the support of eight Senate Democrats, sending a strong message of bipartisan support to House members.
LD 195 advanced to the House of Representatives on June 5. Representative Gere, Committee, introduced the committee’s "Ought Not to Pass" report in an effort to defeat the bill. However, we successfully secured the support of ten House Democrats to block that motion on a vote of 76-65 in opposition. As a result, Representative Gere tabled the bill, to give the majority party more time to determine what it is going to do with the bill.
The PLC and the Department of Economic and Community Development (DECD) have been in communication with Representative Gere regarding her concerns and plan to meet with her early next week to explore possible paths forward.
LD 1664, An Act to Repeal the Dirigo Incentives Program, Sen. Mike Tipping (D-Penobscot) – Housing and Economic Development Committee (Support)
This legislation, sponsored by Senator Mike Tipping (D-Orono), was an attempt to eliminate the program, which was just created in 2023 to replace the Pine Tree Development Zone program and is targeted toward natural resource-based industries in the state.
As background, the PLC has been working with the Mills Administration for the last year to correct an issue for logging and trucking companies that have more than 20 employees. Currently, these companies cannot qualify for Dirigo if they lay off employees seasonally. The only way to correct this issue was to amend the statute. Once it appeared that Senator Tipping’s bill was going nowhere, the PLC then worked with him and the committee to amend the bill and strip everything out of it, except to include language to correct the issue for logging companies with 20 or more employees that must lay off their employees during mud season. This change is vital to seasonal businesses, like logging companies, that are forced to lay off employees because of mud season restrictions.
I am very pleased to report that LD 1664 was finally enacted by the Senate, just after 6 pm on Thursday, June 5th and is headed to the Governor for signature, which we expect will occur.
LD 1733, An Act to Provide Reduced Interest Rates for Logging and Fishing Operations, Sen. Rick Bennett (R-Oxford) – Housing and Economic Development Committee (Support)
This bill would create a revolving loan program for logging contractors and commercial fishermen to purchase harvesting equipment with a 2% or lower interest rate. The PLC testimony can be found here.
On Thursday, June 5th, around 8:30 PM, LD 1733 was passed to be engrossed in the Senate without a roll call vote because the bill received unanimous support in committee, which is a significant achievement in the legislative process. The bill now moves to the House of Representatives for its initial vote. I’m optimistic it will receive similar support there, and we’ll be fully engaged to ensure it continues moving forward.
With only 8 legislative days remaining, we will continue to keep you informed as additional legislation moves through the final days of the session. We are still waiting for our sales tax exemption bill for log trucks and trailers to have its final language review and see a fiscal note. Please keep a close eye on your email as we may need your assistance in reaching out to legislators in your area.
Have a great weekend and let me know if you have any questions.
Best,
Dana
Bills we are tracking this session can be found here.
Priority Bills Awaiting Final Language Review - not yet officially scheduled.
LD 1313, An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds, Sen. Brad Farrin (R-Somerset) – Taxation Committee (Support)
On April 22nd, the Taxation Committee voted unanimously ought to pass as amended. LD 1313 will provide a permanent sales tax exemption for log trucks, trailers, service trucks, and pick-up trucks used primarily in intrastate commerce for commercial wood harvesting companies. Currently, we are working with the committee analyst to refine the language around the definition of “hauling.” Clarifying this language will simplify the bill and ensure Maine Revenue Services understands what equipment is considered sales tax exempt. The next step is a formal language review, after which the bill will head to the Senate for an initial vote. The PLC testimony can be found here.