FINAL LEGISLATIVE SUMMARY | 129th Maine Legislature ...€¦ · This Final Summary of the Second...

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FINAL LEGISLATIVE SUMMARY | 129th Maine Legislature, Second Regular Session June 2020 A session ends like no other Shortened by the pandemic, legislative session leaves hundreds of issues unresolved There have been unusual endings to legislative sessions in the past. Some have been in the middle of the night; others drag out for months before finally adjourning. Some have ended bitterly, filled with acri- mony. Still others with warm handshakes in gratitude for positive work done on behalf of Maine people. None have ever ended in isolation, with the capital barred to all members of the public, except for lawmakers, due to a global pandemic that has infected millions and killed hundreds of thousands of people. Soon after the legislature returned to Augusta in January 2020, word began to spread across the globe that an unknown virus had surfaced in China and its effects on the human body were devastating. The Chinese government began efforts to con- tain the virus. However, it soon crossed beyond their borders into the rest of Southeast Asia, Korea, Europe, and final- ly in February, into the United States. The legislature had been working at their usual pace to complete the work started in 2019 during the first session. In addition to approximately 400 “carry over” bills from the first session, the Legislative Council allowed nearly 300 new pieces of legislation – a relatively manageable number compared to previ- ous legislatures – bringing the total num- ber of bills considered during the two years to 2,167 bills. As the spread of the virus morphed into a global pandemic, it became clear that it would impact how the legislature operated, and how Maine would face the impending difficult decisions that would need to be made in order to reduce the spread of the disease. As we entered the first week of March, longtime observers realized that with more than a calendar month left in the legislature’s schedule, time would run out long before the remaining hundreds of bills left in com- mittee could be acted upon. Layered on to this was the impending shutdown of nearly all economic activity Continued on Page 2...

Transcript of FINAL LEGISLATIVE SUMMARY | 129th Maine Legislature ...€¦ · This Final Summary of the Second...

Page 1: FINAL LEGISLATIVE SUMMARY | 129th Maine Legislature ...€¦ · This Final Summary of the Second Regular Session of the 129th Maine Legislature discusses legislative initiatives that

FINAL LEGISLATIVE SUMMARY | 129th Maine Legislature, Second Regular Session June 2020

A session ends like no otherShortened by the pandemic, legislative session

leaves hundreds of issues unresolved

There have been unusual endings tolegislative sessions in the past. Some havebeen in the middle of the night; others dragout for months before finally adjourning.Some have ended bitterly, filled with acri-mony. Still others with warm handshakesin gratitude for positive work done onbehalf of Maine people. None have everended in isolation, with the capital barredto all members of the public, except forlawmakers, due to a global pandemic thathas infected millions and killed hundredsof thousands of people.

Soon after the legislature returned toAugusta in January 2020, word began tospread across the globe that an unknownvirus had surfaced in China and its effects

on the human body were devastating. TheChinese government began efforts to con-tain the virus. However, it soon crossedbeyond their borders into the rest ofSoutheast Asia, Korea, Europe, and final-ly in February, into the United States.

The legislature had been working attheir usual pace to complete the workstarted in 2019 during the first session. Inaddition to approximately 400 “carryover” bills from the first session, theLegislative Council allowed nearly 300new pieces of legislation – a relativelymanageable number compared to previ-ous legislatures – bringing the total num-ber of bills considered during the twoyears to 2,167 bills.

As the spread of the virus morphedinto a global pandemic, it became clearthat it would impact how the legislatureoperated, and how Maine would face theimpending difficult decisions that wouldneed to be made in order to reduce thespread of the disease. As we entered thefirst week of March, longtime observersrealized that with more than a calendarmonth left in the legislature’s schedule,time would run out long before theremaining hundreds of bills left in com-mittee could be acted upon.

Layered on to this was the impendingshutdown of nearly all economic activity

Continued on Page 2...

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2 III Impact III June 2020 For the most current information, visit www.mainechamber.org

Vol. 54, No. 12 Impact(207) 623-4568

Impact (ISSN 1055-3029) is published weekly Januarythrough June and monthly July through December bythe Maine State Chamber of Commerce, 128 StateStreet, Suite 101, Augusta, Maine 04330-5630.Periodicals postage paid at Augusta, Maine, and addi-tional mailing offices. Maine State Chamber membercompanies are assessed $75.00 yearly for each newslet-ter subscription (subscribers or out-of-dues assesse-ment). POSTMASTER: Please send any addresschanges to Impact, 128 State Street, Suite 101,Augusta, Maine 04330-5630.

Chairman of the Board of Directors: Larry Wold, TD Bank

President: Dana F. Connors

Information in this newsletter is intended to provide guidance, notlegal advice. Since exact language and definitions of key termsare critical to understanding the requirements of legislation, rulesor laws, we encourage you to read each carefully. Articles andinformation contained in this newsletter may be reprinted withattribution given to: Maine State Chamber of Commerce. Pleaseaddress comments to Melanie Baillargeon, director of communi-cations, by emailing [email protected]. Informationabout the Maine State Chamber of Commerce may also beviewed online at www.mainechamber.org.

About the Maine State Chamber of Commerce:Since 1889, the Maine State Chamber has been fighting tolower your cost of doing business. Through our GrassrootsAction Network and OneVoice program, we work with a net-work of approximately 5,000 companies statewide who see thevalue in such a service and provide the financial support thatkeeps our access, advocacy, and awareness efforts goingstrong. As Maine's Chamber, we make sure that the businessenvironment of the state continues to thrive. The Maine StateChamber of Commerce advocates on behalf of their interestsbefore the legislature and regulatory agencies and throughconferences, seminars, and affiliated programs.

in Maine and the nation due to COVID-19 and the crucial efforts needed to “flat-ten the curve.” When Maine announcedits first confirmed case of COVID-19 inearly March, the legislative process wasdramatically accelerated. Initially think-ing they would complete a month’s worthof work in two weeks, that timeframe wasshortened to one day, March 17, 2020.

The primary focus of that Tuesday wasto pass emergency legislation to address theCOVID-19 crisis. Usually the definition of“emergency” in these cases tends to be con-ditional, but in the case of this last day, thelegislature kept to a tight understanding ofwhat needed to be done. Furthermore, totheir credit, legislators did so in an over-whelmingly bipartisan manner.

While a number of bills were finallyenacted, the most important were passageof LD 2126, the supplemental biennialbudget adjustments, and, LD 2134,which will authorize a bond package thatconsists of $105 million for transportationinfrastructure improvements and $15 mil-lion for broadband expansion. The bondquestion will appear on the June ballot.

LD 2167, An Act To ImplementProvisions Necessary to the Health,Welfare and Safety of the Citizens ofMaine in Response to the COVID-19Public Health Emergency, was theGovernor’s bill omnibus bill. Sponsoredby Senate President Troy Jackson (D-Aroostook), it was intended to give thegovernor and state broad emergencypowers to deal with the pandemic.

When the legislature left Augusta thatTuesday evening, they adjourned “sinedie,” or without day, which means, if theyreturn – and based on statements by lead-ership, they do plan to return at somepoint – it would be for a special sessionsometime later in the summer or fall.While there has remained significant dis-cussion, for a variety of agendas to returnto Augusta, at this point neither leadershipnor the Governor have indicated they planto call lawmakers back anytime soon. Thebest educated guess would be to have

them return in the summer or early fall.There remained several very impor-

tant pieces of legislation under considera-tion in committees and in both legislativebodies. These include bills to increaseMaine’s overtime threshold; to set up afirst-in-the-nation mandatory packaging /recycling program; to authorize a localoption sales tax; to increase the estate tax;to allow for a publicly-owned utility; and,to allow private practice attorneys to pur-sue wage-and-hour violations on behalf ofthe state, to name but a few. All these pro-posals were on the table prior to the eco-nomic devastation brought about byCOVID-19 on Maine’s small businesscommunity. It is hard to put into wordshow the legislative and economic outlookhas changed in the past several months.With unemployment at record numbers dueto layoffs and businesses closing across thestate almost daily, it is hard to believe thatsome of the costly and burdensome pro-posals that remain on the table would seri-ously be considered if the legislaturereturns to finish its remaining work.

It is hard to assimilate all that has hap-pened in our state and nation in the past sev-eral months. It is even harder to imaginewhere we might be in another month, oreven a week. We share your anxiety in cop-ing with all the unknowns in our personallives and with our businesses. However, ifor when the legislature returns, the MaineState Chamber will be advocating on thethird floor of the Statehouse, probably vir-tually, for the defeat of any of the moreharmful remaining bills. We will also needyou to continue to be engaged throughemail or phone calls to urge legislators toreject these proposals.

The Maine State Chamber is open forbusiness. Whether we are working fromthe office or remotely, we are here foryou and will remain so. You should knowthat we have faced challenges before, andthe Chamber has come out better becauseof it. Our team is up to the task. While wemay call on your help, we remain com-mitted to being the “Voice of MaineBusiness” in Augusta now more thanever. For questions or additional infor-mation, please contact Peter Gore by call-ing (207) 623-4568, ext. 107, or byemailing [email protected]. r

Session Overview...(Continued from Page 1...)

Inside Impact...Affordable Housing . . . . . . . . . . . . 17Ban the Box . . . . . . . . . . . . . . . . . . 15Bottom Line Podcast . . . . . . . . . . 22College Affordability . . . . . . . . . . . 19Corporate Income Tax . . . . . . . . . . 14CTE Capital . . . . . . . . . . . . . . . . . . 18Digest of Legislation . . . . . . . . 27-47Early Childhood Training . . . . . . . 16Estate Tax . . . . . . . . . . . . . . . . . . . 15Events / Webinars . . . . . . . . . . 22-23Family / Small Biz Tax Policy . . . 19Health Care Reform . . . . . . . . . . . . . 5Immigrant Training . . . . . . . . . . . . 20Local Option Sales Tax . . . . . . . . . 10Meet the Team . . . . . . . . . . . . . 25-26Membership Matters . . . . . . . . . 4, 24NDAs . . . . . . . . . . . . . . . . . . . . . . . . . 7Overseas HQs . . . . . . . . . . . . . . . . 11Overtime Standards . . . . . . . . . . . . 3Packaging Legislation . . . . . . . . . . . 3Paid FMLA . . . . . . . . . . . . . . . . . . . . 8Pay It Forward . . . . . . . . . . . . . . . . 21Public Owned Power . . . . . . . . . . . 7Quality Childcare . . . . . . . . . . . . . . 17R&D Investment . . . . . . . . . . . . . . . 16Service Provider Tax . . . . . . . . . . . 13Tax Havens . . . . . . . . . . . . . . . . . . . . 9Tax Overview . . . . . . . . . . . . . . . . . . 5This Is ME . . . . . . . . . . . . . . . . . . . . 21Uncertified Repairs . . . . . . . . . . . . 13

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Environment andNatural Resourcescommittee spent many hours on packaging legislation

LD 2104 was ultimately carried over to a potential

special session

The Joint Standing Committee onEnvironment and Natural Resources spentmany hours working on LD 2104, An ActTo Support and Increase the Recycling ofPackaging, that would create a first in thenation extended producer responsibilityframework for the State of Maine. Thebill was one of the many bills not dealtwith and carried over to a special sessionif one is held. Regardless the legislation isstill very concerning to the Maine StateChamber, and this topic will be backwhether in a special session or in 2021.

A summary of the bill’s status atearly adjournment due to COVID-19 canbe found online at www.mainelegisla-ture.org/legis/bills/bills_129th/bill-texts/HP150001.asp. On Thursday,March 5, Sen. Everett Brownie Carson(D-Cumberland) presented an amendmentthat significantly altered the original pro-posal. The amendment proposes the fol-lowing changes to the original legislation:1 It would amend the definition of

“municipality” to include refuse dispos-al districts and regional associations.

2 It would amend the definition of “pro-ducer” to remove inclusion of personsthat sell, offer for sale or distribute forsale in the State products in or usingpackaging material and that elect to ful-fill the responsibilities of a producers. Italso excludes from that definition non-profit organization exempt from taxa-tion under the United States InternalRevenue Code, Section 501(c)(3).

3 It would amend the definition of “tox-icity” to include reference to inten-tionally introduced chemicals regulat-ed pursuant to the Maine RevisedStatutes, Title 32, chapter 26-A.

In the closing years of his administra-tion, President Barack Obama instructedthe U.S. Department of Labor to undertakerulemaking that would increase at the fed-eral level the salary test portion that deter-mines exempt versus non-exempt employ-ees. At that time, the $23,660 salarythreshold had remained unchanged since itsadoption under the Bush administration.After more than a year of work and thesubmission of hundreds of thousands ofcomments by employers and other interest-ed parties, the final rules were released in2016. The salary threshold was increasedto $47,456, or $913 a week. In addition,the rule called for indexing the thresholdevery three years, tied to changes in theConsumer Price Index (CPI).

The rule was challenged in federalcourt and the Eastern District of Texaslater invalidated this regulation on the basisthat the $47,456 annual salary ($913 perweek) was so high as to render the dutiestests for exemption irrelevant. The court’sruling left the 2004 annual salary thresholdof $23,660 ($455/week) in place national-ly. Furthermore, the court ruled that thesalary test was increased so much as to sup-plant the duties portion of the test; the newsalary test would render non-exemptemployees who should be exempt due tothe duties they perform, thereby makingthe regulation contrary to Congressionalintent and rendering it invalid.

The Trump administration beganworking on a new rule for this issue short-ly after taking office. He too proposedincreasing the salary threshold but do soin a way that kept a balance between thetwo separate tests. In December 2019,that rule was adopted, pushing the federalsalary threshold to $35,568, or $684 perweek. Therefore, Maine’s salary thresh-old is already higher now than the federalstandard and will continue to increaseeach year with CPI adjusted increases inMaine’s minimum wage.

As was with the case with the Obamaadministration’s proposed rule, LD 402would create havoc in the Maine work-

A highly controversial proposal tochange the threshold that divides salariedand hourly employees in Maine alsodivided the Joint Standing Committee onLabor in the closing days of the legislativesession. Sponsored by Rep. Ryan Tipping(D-Orono), LD 402, An Act to RestoreOvertime Protections to Maine Workers,split the committee three ways – with allfive Republicans and the Democrat SenateChair in opposition, the five otherDemocrats supporting one “ought topass” report, and one lone Democrat sup-porting yet a second, different “ought topass” report. Before the bill could bedebated by the full legislature, the pan-demic forced its early adjournment, andthe bill remains unfinished until legislatorsreturn for a special session.

LD 402 originated during the firstsession of the 129th Legislature, had apublic hearing, and was then carried overto this year’s second session. As drafted,the bill would annually raise the minimumsalary that an employee who works in anexecutive, administrative, or professionalcapacity must earn in order for thatemployee to be exempt from the laws gov-erning the minimum wage and overtimepay. The bill proposed to increase thesalary level from the current $33,000 to$40,408 by 2020, and again to $47,861 by2021, and finally again to $55,224 by2022. In addition, after the 2022 increase,the amount would be adjusted each yearby changes in the percentage annualincrease in certain earnings as publishedby the United States Department ofLabor’s Bureau of Labor Statistics.

Unlike many other states, the salarythreshold that divides Maine’s salaried andhourly employees has increased. Thatthreshold is tied to any increase in thestate’s minimum wage - “3,000 times” thestate’s minimum wage, to be precise.Mandated by a citizen’s initiative passed inNovember 2016, the past three minimumwage increases have therefore increasedthe salary threshold to $33,000. This year,even without any additional legislativeaction, the threshold increased to $36,000. Continued on Page 4... Continued on Page 4...

Changes to overtime standard left in limbo

Final bill faced bi-partisan opposition in committee

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As indicated previously, during thecommittee’s brief work session on thebill, the bill’s sponsor offered an amend-ment to the bill that adjusted the multipli-er in Maine law, rather than an actualmonetary adjustment. Regardless, thethreshold was still pushed beyond$50,000 by 2024 and failed to considerthe changes to Maine’s minimum wage asadjusted annually by the urban CPI.Interestingly, the amendment languagewas not shared with stakeholders in theaudience.

The proposed amendment failed togarner a majority vote from the commit-tee, nor did the “ought not to pass”motion by Republicans, although theywere joined in their opposition to anychanges by the Senate chair, Sen. ShennaBellows (D-Kennebec). Whether any ofthe three resulting reports are debated thissession remains unknown. It is highlylikely that, as a policy issue, the proposalwill be revisited in the next session,regardless of debate this year. For moreinformation, please contact Peter Gore bycalling (207) 623-4568, ext. 107, or byemailing at [email protected]. r

places. At $56,000 or more, managerswho are currently considered salariedcould lose this status unless employerssomehow found the financial wherewithalto increase their compensation – in manycases substantially. Workers who foundthemselves listed as hourly employeescould be forced to turn in all phones,tablets, laptops, etc., to ensure that after-hours compensable work did not takeplace. Maine’s entire economy would benegatively impacted.

What is more, Maine would be anoutlier when it comes to the differentialbetween what constitutes a salaried versushourly employee. Nearly all states use thecurrent federal designation, and only ahandful of other states have adopted a dif-ferent, more stringent standard. Mainealready is one of those states, but LD 402would put us far outside the norm – sig-nificantly increasing the cost of doingbusiness here and further hurting ourbusinesses’ ability to compete and grow.

4 It would delete the definition of “pack-aging stewardship plan” and makes anumber of changes to the bill to removethe requirement that a stewardship orga-nization contracted by the Departmentof Environmental Protection to operatethe packaging stewardship programsubmit a program plan for approval.Instead, the amendment requires thedepartment to adopt major substantiverules for the implementation, adminis-tration, and enforcement of the packag-ing stewardship law, which will set theoperational and other requirements forthe packaging stewardship program.Those rules must be adopted prior theissuance by the department of a requestfor proposals for the operation of thepackaging stewardship program by astewardship organization. The amend-ment provides that such rulemakingmust be initiated by December 31, 2021and sets forth the scope and require-ments of that rulemaking.

5 It would remove from the bill thespecific methods by which the stew-ardship organization is to calculateproducer payments and participatingmunicipality reimbursements, insteadleaving the determination of suchmethods to department rulemaking.

6 It would amend the bill in severalplaces to require the stewardship orga-nization to consider input from produc-ers and municipalities in the develop-ment and operation of certain aspectsof the packaging stewardship program.

7 It would provide that prohibitions onthe sale of products of producers notin compliance with the requirementsof the packaging stewardship law takeeffect one calendar year following theeffective date of the contract betweenthe stewardship organization and thedepartment. It also provides that pro-ducers are required to begin makingpayments to the stewardship organiza-tion 180 calendar days following theeffective date of that same contract.

8 It would provide that, to be eligiblefor reimbursement of costs as a par-ticipating municipality, a municipalityis required to submit certain informa-

Overtime Standards...(Continued from Page 3...)

Packaging Legislation...(Continued from Page 3...)

Continued on Page 6...

Your Membership Matters!As you read this Final Summary, the value of the Maine State Chamber’s

Advocacy team should become very clear to you. The sheer number and com-plexity of legislation impacting Maine businesses in this session was stagger-ing, and the potential to do harm to our business environment was verystrong.

Our Advocacy team was at the Statehouse every day this session to mon-itor and influence legislation to guard against policies that are harmful to ourbusiness environment or to ensure a favorable outcome for Maine business.

As a member organization, YOU are at the heart of our efforts. Throughyour membership dues, you provide the financial resources necessary tomaintain the state’s largest business advocacy presence at the state capitol.And the positions we take on issues are informed by and formulated with yourparticipation.

The Maine State Chamber appreciates YOU as a member!

It goes without saying that there is strength in numbers and the higher thenumber, the louder and stronger “The Voice of Maine Business” is. If youare aware of someone or some organization that would benefit from a mem-bership with the Maine State Chamber of Commerce, please put them in con-tact with Mark Ellis at (207) 623-4568 or at [email protected]. r

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Reinsurance Association (MGARA),the quasi-state agency that adminis-ters, and funds the reinsurance pro-gram for the individual market. Itwould also administer the extendedreinsurance for the small group mar-ket once merged. In the bill’s singlecost control measure, it would allowinsurance companies leverage tonegotiate prices with health providersby limiting the amount the programpays for reinsurance for certain high-priced services to no more than twicewhat Medicare pays for certain high-priced services (200%);

w Creates a state-based Marketplacerun by the State of Maine and start-ing in the fall of 2020, using the fed-eral website, HealthCare.gov, andrelated services. Maine would con-duct its own education, in-personconsumer assistance, and outreach oncoverage;

w Transitions from HealthCare.gov toa fully state-run system – operatingits own website and call center – if anevaluation of benefits and feasibilityof doing so show that this is the bestpath forward for Maine; and,

w Indicates that funding for theMarketplace would come from exist-ing user fees on insurance compa-nies, no higher than what the insur-ance companies pay now.

In testimony before the committee,Maine State Chamber’s Executive VicePresident, Peter Gore, indicated that theChamber was appreciative of theGovernor’s attempt to address one the ofthe longest-standing business challenges –the cost of health insurance – for anysmall employer operating in Maine.While Gore indicated that the Maine StateChamber was supportive of the change in

Governor Janet Mill’s signature bill,LD 2007, An Act To Enact the Made forMaine Health Coverage Act and ImproveHealth Choices in Maine, designed tolower the cost of health insurance forMaine small businesses, became law inthe closing days of the 129th Legislature.

Sponsored by Speaker of the HouseSara Gideon (D-Freeport) and co-spon-sored by Senate President Troy Jackson (D-Aroostook), the bill received a long publichearing in early February – with some pro-ponents, very few opponents, and a pre-dominant number of witnesses, includingthe Maine State Chamber of Commerce,who took a neutral position on the bill.

As drafted, and eventually enacted,the bill:

w Requires health plans to cover thefirst primary care visit and behav-ioral health visit each year for free –with no deductible and no out-of-pocket costs, making some of themost common health care visits lesscostly. Additionally, under the bill,the second and third primary careand behavioral health visits couldhave a co-pay, but the deductibleswould not apply;

w Proposes in a key section of the billthe merging of the small group andindividual markets in Maine, creat-ing a combined, larger pool ofenrollees – one that supporters saywill be more stable, and therefore,may help mitigate premium increas-es. Insurers would then be able todetermine premiums based on thislarger pool and offer the same plansto both individuals and small busi-nesses, thereby helping small busi-nesses to get a handle on health carecosts;

w Extends reinsurance for the first timeto small businesses, funded by thefederal government and current feesin Maine Guaranteed Access Continued on Page 6...

Governor Mill’s health care reform billbecomes law

Proposal focuses on lowering cost for small businesses

Tax policy issuesremain undecided assession adjourns dueto pandemic

In the area of taxation policy, lots ofcontentious legislation was carried overfrom the First Regular Session (2019)and remains on the table for considera-tion during any special session. Includedin this list is tax legislation that threatensto impose local option sales taxes,increased taxes on Maine estates,required disclosure of confidential infor-mation by businesses, and a whole hostof other issues that are still undecided.

In addition, the Office of ProgramEvaluation and Government Accountability(OPEGA) issued reports on several eco-nomic development programs, such as theBusiness Equipment Tax ReimbursementProgram (BETR), the Business EquipmentTax Exemption (BETE), and the MaineCapital Investment Credit. Severelyimpacting future investments, the reportswere less than favorable and will potential-ly leave these programs at risk. Critical tothe viability of Maine companies, such pro-grams have made Maine’s economyhealthy and have created and retainedimportant Maine jobs.

The Taxation committee was sup-posed to review these reports after theGovernment Oversight Committee.However, time fell short, and this didnot happen as planned. This all comesat a time when Maine needs to focus onrebuilding the economy during thispandemic and cannot afford to loseinvestment or jobs.

This coming year will prove to bevery challenging as the Legislaturenavigates the “new norm” and has toundoubtedly deal with a huge revenueshortfall related to predicted decreasesin sales taxes, income taxes, gas taxes,and the like.

If the Legislature reconvenes, theMaine State Chamber is ready to addressthese issues if any of them resurface dur-ing a special session. If you have anyquestions, please contact Linda Capraraby calling (207) 623-4568, ext. 106, or byemailing [email protected]. r

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During the work session, the com-mittee attempted to reduce concernsregarding the merging of the two marketswith an actuarial report conducted byGorman Actuarial. That report indicatedthat while costs could be reduced in theindividual market by between 4% and 5%by 2024, the reduction for the smallgroup was less – only 2.6% to 1.7%. Inboth cases, the reinsurance mechanismprovided by the additional federal dollarsand the MGARA funds would achievethese savings. However, there is notguarantee they would continue over time.

For that reason, the legislature madesure that LD 2007 contains built-in trig-gers that would cause the bill to stopshould costs increase due to its passage orif the federal reinsurance monies do notmaterialize. Despite those safeguards,there is concern among this section of theemployer community, that programmati-cally and politically, it would be difficultto abandon the entire premise shouldthese not materialize down the road.Therefore, it could open those employersup to the possibility of an even higherassessment to fund MGARA. The admin-istration has indicated they would notsupport such an action; however, the pos-sibility exists.

Despite these concerns, the full com-mittee approved an amended version ofthe bill unanimously. The bill was passed“under the hammer” in both bodies –meaning without any objection or roll callvotes on the last day of the legislative ses-sion – and sent to the Governor’s desk,where she signed it into law later thatsame day.

Whether the goals of the bill materi-alize, and its various pieces fall into placeto achieve meaningful savings for smallbusinesses, remain to be seen. TheGovernor and Legislature are to be com-mended for their work in addressing whathas been a long-standing issue for manysmall businesses and their employees inMaine. For questions or additional infor-mation, please contact Peter Gore by call-ing (207) 623-4568, ext. 107, or byemailing [email protected]. r

the Marketplace moving to a state-basedexchange, too much remained unknownat this point in the discussion to be able tosupport or oppose the rest of the bill.

While acknowledging that the intentof the bill was to lower costs, withoutactuarial information regarding the merg-ing of the individual and small groupmarkets, it is impossible to know whetherthe proposal would help or hurt smallbusinesses. Furthermore, Gore indicated,it was likely that there would be winnersand losers should such a merging occur.Knowing how this played out in bothmarkets would be critical before any finaldecisions could be made.

In addition, the keystone to the entireproposal – extending the scope of theexisting reinsurance fund from the indi-vidual market to include the small group(business) market – is dependent onprocuring what is known as “Section1332 Waiver” monies from the federalgovernment. This is extremely important– not only for the success of the proposaland the individuals and employers affect-ed by the fund, but also for large employ-ers who are not.

Currently, the MGARA is funded byan assessment of $4 per member permonth on all ratepayer premiums. So notonly are individuals currently charged theassessment, but businesses in the small,large, and self-insured groups (throughtheir third-party administrators) are aswell. The bill does not call for an extend-ed assessment, but in his testimony, Goreexpressed this concern for many largeemployers - What will be the result if the“1332 Waiver” monies come in at alower-than-expected amount, or not atall, or if the reinsurance mechanism fund-ing is overall inadequate to meet theneeds of adding the small group market?Despite not being able to access or bene-fit from the MGARA reinsurance, largeremployers are still required to pay theassessment to fund the program. Thisresults in millions of dollars in costs, insome cases, all while some of these larg-er employers are struggling to control andpay for their own higher health insurance.

Health Care Reform...(Continued from Page 5...)

tion to the stewardship organizationand must provide for the collectionand recycling of types of packagingmaterial that are generated in themunicipality and that are readily recy-clable.

9 It would clarify the order of priority tobe used by the stewardship organizationin expending funds from the packagingstewardship fund, which includes theestablishment of a reserve account toensure full reimbursements to partici-pating municipalities in future years.

10 It would provide that the departmentdetermination of the types of packag-ing that are to be considered readilyrecyclable must include a transitionalperiod between the time that a type ofpackaging material is determined tobe readily recyclable and the timethat such a determination will beeffective for the purposes of deter-mining producer payments andmunicipal reimbursements.

11 It would provide an alternativemethod, to be specified in departmentrule, for a producer to report requiredinformation to the stewardship organi-zation in the event that a producerfails to obtain sufficient informationregarding the characteristics of thepackaging material it sells, offers forsale or distributes for sale in the State.

12 It would amend the small producerexemption to increase the gross rev-enue threshold from $1,000,000 to$2,000,000; to remove the exemptionbased on a producer conducting allsales in the State at a single point ofretail sale; and, to include an exemp-tion for a producer that employs intotal 10 or fewer employees.

Even with the changes that were pro-posed in Sen. Carson’s amendment, theMaine State Chamber does not believethat the State of Maine is ready for thislegislation. When the legislature returns,this bill will have to be viewed through adifferent prism due to the economicuncertainties ahead. If you have any ques-tions, please contact Ben Gilman by call-ing (207) 623-4568, ext. 111, or by email-ing [email protected]. r

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LD 1646’s “publicpower” legislation is held to carry-oversessionMaine’s business communitycontinues to have concerns

with the proposed legislation

The Maine State Chamber ofCommerce still has deep concerns regard-ing LD 1646, An Act To Restore LocalOwnership and Control of Maine’s PowerDelivery Systems. The bill would direct theState of Maine to take over Central MainePower Company and Versant Power, cre-ate a new quasi-State agency called theMaine Power Development Authority, andhire a private company to operate theState’s electric grid. The Maine StateChamber, on behalf of its membership,strongly opposed this proposal last year.

This year, our concerns have onlygrown stronger given the February 2020report issued by the Maine Public UtilitiesCommission (PUC) regarding the expect-ed costs of “public power.” This reportshows that, using reasonable estimates ofacquisition costs and long-term borrowing,public power will actually cost more in thelong run, without any guarantee ofimproved service or local control.

The fact is, when the State overseescritical infrastructure, it does the best itcan with limited resources, but it general-ly struggles to keep up with needs. Justlook at our roads and bridges. We allknow they need investment, but our polit-ical process gets in the way of adequatefunding, and every day, the potholesgrow. Politicizing our electric systemcreates a similar risk of disinvestment,which could lead to more and longer out-ages and delay necessary grid moderniza-tion, all because political leaders inAugusta cannot agree on whether to makenecessary investments.

Furthermore, under the amendedversion of the bill, an employer cannotrequire an employee to enter into anytype of severance or settlement agreementthat would prohibit or limit that employ-ee’s right to report allegations of discrim-ination to a state agency or other enforce-ment body. According to both the bill’ssponsor and the committee co-chair,Governor Mills expressed concern overthis part of the bill. When questioned bySen. Stacey Guerin (R-Penobscot), Rep.Harnett indicated that he and other billsupporters did not reach agreement withthe administration on this part of the bill.

This is an important change to Mainelaw. While an individual cannot be deniedthe right to testify by any agreement or besubpoenaed with respect to allegations ofdiscrimination, reporting such allegationsare usually part of any NDA agreement.

What’s more, under the proposedlanguage, an NDA can only be used if itis requested by the employee. In any dis-crimination settlement negotiations, theemployer would not be able to make sucha request as part of the settlement. Inaddition, even if the employee requestedan NDA, it must specifically state that theemployee retains the right to report, tes-tify, or provide evidence in any federal orstate proceeding that might involve thecompany or individual.

The net effect of the bill is to makeNDAs meaningless, even if entered intoby both parties. While some might hailthis as something positive, NDAs have arole in protecting not only the privacy ofthe business, but also the privacy of thevictim of discrimination as well. If a busi-ness cannot rely on an agreed upon NDAas part of a settlement, then why settleany claim? In addition, the employer can-not even put the idea of an NDA as a set-tlement tool on the table, placing them ata disadvantage when it comes to trying tosettle a claim. LD 1529 sets up an unlev-

In the final days leading up to thepandemic-related abrupt end to theSecond Session of the 129th Legislature,the Joint Standing Committee on Laborand Housing approved along party lines abill designed to limit the use and enforce-ment of “non-disclosure agreements”(NDAs) for both hiring purposes and inthe settlement of discrimination claims.The net effect of the bill, should itbecome law, would be to end the use andefficacy of NDAs in Maine.

LD 1529, An Act ConcerningNondisclosure Agreements in Employment,sponsored by Rep. Thom Harnett (D-Gardiner), was heard in committee in 2019and carried over for final committee actionthis year. The bill actually passed in both theHouse and Senate, but when the bill arrivedon the Governor Mills’ desk, she had itrecalled. The bill was subsequently sentback to the Labor and Housing committee.

As originally drafted, the bill wouldhave significantly restricted the right of anemployer to use NDAs, both withprospective employees at time of hire orin cases where settlements for discrimina-tion claims contained an NDA, unless theaggrieved party agreed to the NDA as partof the settlement. However even in thosecases, the bill went on to render mostNDAs as unenforceable, because theycould not limit a victim’s right to reportand provide testimony or statements to theMaine Human Rights Commission or theMaine Department of Labor.

At the committee’s work session inearly March, the bill’s sponsor offered anamendment that is only slightly differentthan the original – and equally problem-atic for employers. The amended versionwould prohibit an employer from requir-ing any new hire enter into a non-disclo-sure agreement as a condition of employ-ment. As a matter of practice, the MaineState Chamber is not aware this is anissue in the Maine workplace, and cer-tainly not one for the average worker. Continued on Page 8...Continued on Page 8...

Bill limiting non-disclosure agreementsawaits debateGovernor Mills said to have concerns with final version

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ferent priorities will appoint a differentset of directors. Such volatility will makeit difficult for the State to sustain any par-ticular investment strategy in our electricgrid, and it make it harder for Maineelectric consumers to plan long-terminvestments in Maine.

When the legislature reconvenes fora special session or next year, the MaineLegislature will likely be debating thiscritically important issue again. As itdoes so, we urge caution. On the surface,the concept of “public power” hasappeal, but below the surface, one finds aheavy price tag, greater volatility, andstrong public pressure to defer mainte-nance in order to keep rates down. If youhave any questions regarding LD 1646,please contact Ben Gilman by calling(207) 623-4568, ext. 111, or by [email protected]. r

Maine also needs private investmentif we want to grow. Yet, LD 1646 sendsthe opposite message by proposing a statetakeover of two private companies byeminent domain. If this bill were to pass,it would loudly proclaim that Maine is ahostile, risky place for outside invest-ment. The fact is, there are many won-derful Maine companies who are notlocally owned, and foreign investmenthas re-invigorated paper mills and com-munities in all corners of our state. Mainecannot afford to reject private capitalflowing into our state.

Private ownership also means stableownership. By contrast, State ownershipof the electric grid means ever-changingpolicies depending on who sits in theBlaine House. Governors who supportcarbon reduction goals will appoint like-minded directors, and governors with dif-

el playing field when it comes to settlingdiscrimination cases of any kind. Therewill be little, if any, rush to reach settle-ments, resulting in higher legal costs, andultimately, in a higher cost of doing busi-ness in Maine compared to other states.

The Maine State Chamber opposedthis bill, as drafted last session, and weremain firmly opposed to the amendedversion approved by a partisan majorityof the Labor committee. Like other billsin legislative limbo, LD 1529 did notadvance out of committee before the leg-islature went home due to the coronavirusshutdown. If legislators for a special ses-sion, it is possible they could choose totake up the bill. If not, it is likely the con-cept will return in a future session. Foradditional information or questions,please contact Peter Gore by calling (207)623-4568, ext. 107, or by [email protected]. r

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Paid FMLA study bill fails to advance before “sine die,”despite approval from majority of Labor committee

According to the Legislature’s web-site, as of March 17, LD 1410, An Act ToCreate Paid Family and Medical LeaveBenefits, was carried over in the same pos-ture to any special session of the 129thLegislature pursuant to Joint Order SP 788.Democrats on the Joint StandingCommittee on Labor and Housing hadgiven their approval to a proposal thatwould set up a stakeholder taskforce tostudy the feasibility of implementing a paidfamily medical leave program in Maine.

Appearing to be approved alongparty lines, with Republicans on the com-mittee opposing and Democrats approv-ing, the committee amended LD 1410,sponsored by Speaker Sara Gideon (D-Freeport), from a full-fledged proposal tofund and implement such a program, to astudy group with report back require-ments of January 2022. Submitted lastsession (2019), LD 1410 proposed toestablish a new state agency, not unlike

the current Unemployment InsuranceDivision within the Maine Department ofLabor, for the purposes of administeringa paid FMLA program. The details of theproposal include providing up to 12weeks of maternity or paternity leave,and up to 20 weeks of leave for a serioushealth condition – either your own or thatof a broadly-defined “family member.”The funds used to provide the leave arethe result of a new 0.75% payroll tax onall employees in Maine. It was not clearif the intent is to include LLC and S-corpsas “employees” for the purposes of taxa-tion; however, we interpreted it as apply-ing to these entities as well.

The Maine State Chamber opposedthe initial proposal, along with severalother business associations. While theMaine State Chamber’s concerns werenumerous, one of the more overarchingissues was the lack of any actuarial studyon the soundness of the program as

defined in the bill. Specifically, an exten-sive actuarial study to ensure it is proper-ly financed and will remain fiscally sol-vent into the future.

While only a few states have electedto institute paid FMLA, a number ofthose that have used an existing Stateshort- or long-term disability insuranceprogram to do so. Maine does not havesuch a program; we would be startingfrom scratch. In no other universe shouldthis legislature or state government,authorize the startup of a short- or long-term disability insurance company with-out ensuring its long-term viability.

As amended, the bill will set up astakeholder group or commission com-posed of 11 members and appointed by theGovernor, Speaker of the House, andPresident of the Senate. The commissionconsists of legislators from both bodiesand both parties, representatives from the

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Taxation committee votes along party lines to pass tax haven bill, which if passed, would increase taxes on manufacturersexporting overseas

LD 403, An Act to Prevent Tax Haven Abuse, has been carried over to anyspecial session after the Joint Standing Committee on Taxation voted “ought topass as amended” along party lines (7-4). The Maine State Chamber testified inopposition to the bill, which was sponsored by the tax committee cochair, Rep.Ryan Tipping (D-Orono).

As amended by the committee, the bill would strip out the Foreign DerivedIntangible Income (FDII) deduction. This would result in an income tax increaseon Maine’s manufacturers that export outside the United States. FDII is one oftwo provisions enacted by Congress in the Tax Cuts and Jobs Act legislationfrom 2017. The act was intended to update the nation’s tax policies to make thetaxation system competitive with the rest of the world and to also incentivizecompanies to make investments within the United States. Among its mostnotable provisions intended to make the United States a competitive place forinvestment was the alignment of the U.S. corporate tax rate with the average taxrate of the world’s 30 largest economies.

Less noted by the public due its complexity, but equally important, wereprovisions within the law that intended to increase incentives for U.S. invest-ment using a “carrot and a stick” approach. The FDII and the Global IntangibleLow Taxed Income (GILTI) are intended to work hand-in-glove with one anoth-er and are connected to the income that is generated on sales to customers locat-ed outside the United States.

FDII – the “carrot” in this scenario – benefits companies located in theUnited States where income is recognized on their U.S. tax return that is theresultant of a non-U.S. sale. The greater the income subject to U.S. taxation, thegreater the FDII benefit. And, because more income is recognized in the U.S.if manufacturing and R&D occurs within the country, the provision encouragesU.S. investment in these activities.

GILTI – the proverbial “stick” – harms companies that make that sameinternational sale, if they recognize that income occurs outside the U.S. Prior tothis tax reform, this income would not have been taxable in the U.S., unless thecash portion of those profits were actually repatriated to the U.S., which rarelyhappened. With GILTI, the U.S. imposes immediate taxation on those interna-tional profits, which are generated by having the manufacturing and R&D occuroutside the U.S., regardless of whether the income is repatriated.

Because these two calculations and provisions have closely intertwined pol-icy goals, both were included as part of the federal provision, and according tothe Council on State Taxation (COST), the majority of states that have adoptedGILTI, have also adopted FDII.

LD 403 remains carried over to any special session. If you have any ques-tions, please contact Linda Caprara by calling (207) 623-4568, ext. 106, or byemailing [email protected]. r

June 2020 III Impact III 9For the most current information, visit www.mainechamber.org

large and small business communities,organized labor, elder care, and maternitycare. The committee is charged with look-ing at what other states have done in thisarea with respect to equity, funding, statepartnerships and consortiums, educationand outreach, technology needs, oversightand structure of the program, and theinteraction of state government and privateemployers participating in the program.

After doing so, committee membersare to develop a paid FMLA proposal, aswell as contract for an actuarial study thatis tasked with looking at start-up costs,ongoing costs, the economic impact ofthe program on our state, and the contri-bution levels needed to maintain the sol-vency of the program.

While taking the time to find out theactual costs associated with implementingsuch a program – before putting it inplace – is a step in the right direction, theproblems with a paid FMLA program aremore acute than just financing and opera-tional issues. The impact on the work-place would and could be significant.

If finally implemented, LD 1410 willcreate a new, employee-funded entitle-ment program for the purposes of provid-ing paid FMLA leave. Employers haveexpressed concern that, if the leave con-tinues to be funded through a mandatorytax versus a voluntary opt-in tax on allMaine workers, employees will rightfullyfeel entitled to access leave for whichthey have paid. Obviously, this meanshigher utilization, creating greater absen-teeism. Absenteeism in the workplace is avery real problem today, both because ofworkforce shortages and call outs.

The work of the business must con-tinue in their absence – regardless of thefact that an employee is out on leave,whether paid or unpaid. Services mustcontinue to be provided; products manu-factured; and, deliverables pushed out thedoor. That means finding a replacement,if available, for the absent employee. Ifreplacements cannot be found, the work istransferred to another worker. Businessesreport that this is a less-than-ideal solu-tion, as the increased workload results inresentment within the workplace.

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way assure that taxes would later bereduced at the local level.

w Local option sales taxes hurt smallbrick-and-mortar businesses: Manycitizens buy local to support theirneighbors – owners of small brick-and-mortar businesses in their munic-ipalities. Local businesses located inone locale compete with local busi-nesses in another. Businesses locatedin towns that enact a local optionsales tax will be at a competitive dis-advantage with businesses in munici-palities that do not enact a localoption sales tax. This will positionone community against another.Local brick-and-mortar retail busi-nesses will never be able to competein that high-taxed environment. Thetax will impact their bottom line, andthey may be unable to pass theexpense on to the consumer.Ultimately, they will lose sales toneighboring towns that do not havelocal option sales tax.

w Local option sales taxes impactlocal economic developmentefforts: Municipalities around thestate work hard to try to attract busi-nesses to their locales; many hireeconomic development directors todo just that. This will do nothing toattract businesses, but instead, woulddiscourage businesses from locatingin towns that have additional taxes.This bill will make towns that imposesales taxes less attractive. Once localoption taxes are in place, they wouldbe virtually impossible to removebecause that municipality wouldbecome dependent on the revenue.

If you have any questions, pleasecontact Linda Caprara by calling (207)623-4568, ext. 106, or by [email protected]. r

to the Taxation committee in the closingdays of the 2019 session. The other bill,LD 609, An Act to Provide MunicipalitiesAdditional Sales Tax Revenue fromLodging Sales, sponsored by Rep.Maureen Terry (D-Gorham) was neverreported out of committee last session.

This session, the committee workedboth bills again, and they remain carriedover to any special session the legislaturemight have if it returns.

LD 609 would propose to increasethe lodging tax by 1% and would returnincremental revenues generated, minusadministrative costs for Maine RevenueServices, to the generating municipality.

As originally drafted, LD 1254would have allowed a municipality toimpose a year-round or seasonal localoption sales tax, if approved by municipalreferendum, of no more than 1% on pre-pared food and short-term lodging. Atotal of 85% of revenue generated wouldhave been distributed back to the generat-ing municipality and 15% would havebeen distributed to all other municipalitiesaround the state. The money would haveto be used for preventing and treating opi-oid use. The bill was amended to changethe distribution formula to 75% back tothe generating municipality and 25% tothe Maine Rural Development Fund. Thatamendment was the same one proposedlast session.

The Maine State Chamber has long-opposed local option sales taxes for avariety of reasons, all of which were out-lined in the testimony on these bills.Those concerns are:w Enacting a local option sales tax

increases the total tax burden inthe state: This bill would have addedanother layer of sales tax to itemspurchased in municipalities in whichit had been enacted. While localoption taxes are another way to raiserevenue for municipalities, they in no

In addition, the program could placereporting and tracking requirementsregarding leave, payroll deductions, andcalculations on every business of everysize in the state. In many cases, business-es with fewer than 15 employees operat-ing here have never dealt with FLMAleave before, because they have not hadto do so. LD 1410 could possibly changethat. Most of Maine’s small employershave less than 15 employees, and many,if not most, lack an HR department tohelp them administer this program prop-erly should it reach fruition.

Like hundreds of other legislativeproposals caught up in the closing days ofthe legislative session, LD 1410 did notmake it out of the Labor committee.Instead, the bill awaits a special session,should one occur later this year. If not,this version of a paid leave programwould be defeated, but would almost cer-tainly return in another session, even asearly as 2021.

For additional information or ques-tions regarding FMLA, please contactPeter Gore by calling (207) 623-4568,ext. 107, or by [email protected]. r

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Taxation committee voted on two local option tax bills Last session, local option tax bill was rejected by Senate, but passed in House

One of the more divisive tax issuescarried over from the First RegularSession dealt with allowing municipalitiesthe authority to impose local option salestaxes at the municipal level. Last session,LD 1254, An Act to Authorize a LocalOption Sales Tax on Meals and Lodgingand Provide Funding to Treat Opioid UseDisorder, sponsored by Rep. MichaelSylvester (D-Portland) made it to thefloor for debate and remained a politicalfootball between the House and Senate. Itcould not garner the votes in the Senate topass, and it was ultimately recommitted

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the equity interest in the company. Themathematical consequence of this over-broad definition is that the 49% equityownership in American hands is barredfrom participating in a referendum elec-tion that may substantially adverselyaffect the fortunes of the company. Thisis the antithesis of narrow tailoring, evenassuming that the bill is in the service ofa compelling state interest.

Nor is this legislation in any fairsense of the term an emergency. Failureto enact this legislation would not imper-il the public peace, the public health, orthe public safety. It would simply leave inplace the rules governing initiated refer-endum elections.

Analysis…There is already an abundance of state

law governing the referendum electionprocess and, if any additional legislationrestricting the participation by foreignowners of Maine businesses is both consti-tutional and prudent, the legislature wouldbe wise to stop at the federal definition offoreign national and not expand it to anyenterprise in which the ultimate indirectbeneficial ownership is 51% foreign held.

The bill would prevent a “foreignnational” or a legal entity in which theforeign national holds/controls 50% ormore of the total equity from contributing– directly or indirectly – to influence areferendum. Federal election law alreadyprohibits contributions made by foreignnationals, but this legislation goes furtherto bar local companies that are majorityowned by foreign parent companies orshareholders from the debate on referen-dum questions that may affect their abili-ty to conduct business in Maine.

Federal elections law alreadyaddresses the importance of protectingthe election process and provides suffi-

On behalf of the Maine StateChamber of Commerce, Gerald F.Petruccelli from Petruccelli, Martin &Haddow in Portland testified on March 11before the Veterans and Legal Affairscommittee. There are hundreds of busi-nesses who operate in Maine and haveheadquarters outside of the United States.A listing of those businesses that wasobtained from the Maine InternationalTrade Center was provided to the commit-tee. Below are the concerns regarding LD2136 that were delivered to the committeeduring the public hearing. Ultimately, dueto the early adjournment of the sessioncaused by the COVID-19 pandemic, thebill was carried over to “when and if” thelegislature reconvenes this year.

Introduction…The bill explicitly seeks to prohibit

political speech concerning a referendumquestion. It is the settled constitutionaljurisprudence that prohibitions or restric-tions on political speech, if constitutional atall, may be justified only under a standardof strict scrutiny demonstrating that the leg-islation is narrowly tailored to protect oradvance a compelling State interest. It istherefore essential to identify the problemto be solved and to devise a solution thatachieves the objective with minimal harmto constitutionally guaranteed liberty.

Supreme Court decisions and opin-ions of the Federal Election Commissionhave wrestled with these kinds of issuesunder existing federal law. This legisla-tion is not content to incorporate theexisting federal definitions and reinforceexisting federal prohibitions. This billsubstantially expands the definition offoreign national to sweep within it anAmerican company chartered by anAmerican state doing business only in theUnited States, if a true foreign national isindirectly the beneficial owner of 51% of Continued on Page 12...

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If enacted, LD 2136 would have impacted hundreds of Maine companies

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Similarly, the Supreme Court struckdown a North Carolina law that sought toregulate the pay and communications ofprofessional fundraisers for non-profitorganizations, because “even if the Statehad a valid interest in protecting charitiesfrom their own naivete or economicweakness, the Act would not be narrowlytailored to achieve it” because “morebenign and narrowly tailored options areavailable.” Riley v. Nat’l Fed’n of Blind,487 U.S. 781, 792, 800 (1988). In con-trast, the Supreme Court upheld a restric-tion on judges directly soliciting financialdonations because it was narrowly tai-lored to the purpose of ensuring publictrust in the judiciary. Williams-Yulee v.Fla. Bar, 575 U.S. 433 (2015). TheCourt held that it was narrowly tailoredsuch that it withstood strict scrutinybecause though the law “prevented judgesfrom personally soliciting funds, theywere still allowed to discuss any topicpublicly and could have their campaigncommittees solicit funds for them.”

Although freedom of speech covers abroad range of activities and courts havefound that some restrictions are permissi-ble, “[i]ssue advocacy is the classic heartof First Amendment protection and shouldbe burdened as little as possible.” Nat’lOrg. for Marriage & Am. Principles inAction v. McKee, 765 F. Supp. 2d 38, 46(D. Me. 2011). And as regulations growand additional requirements are added, itis possible “to ignore the burdensomeeffects on the speech of individuals andsmall organizations.” Id. Here, the billpresumably attempts to create a bright linerule, but for dozens of small and mid-sizeMaine companies who would need toensure compliance with the rule, theprospect of administrative burdens to trackdown citizenship information for everyshareholder or LLC that is a partial ownerof the company would effectively curtailtheir speech. That deterrent effect in andof itself calls into question the bill’s con-stitutionality and is particularly offensiveto First Amendment freedoms because it isaimed at issue advocacy. For example,when reviewing a California law thatsought to limit the amount of contributionsto a ballot measure committee to ensureonly small donations, the Supreme Court

is ten times as bad as any other campaignviolation within the general applicability of§ 1004. As yet, there appears to be no evi-dence in any legislative record to supportthat legislative judgment.

The Constitutional Issues…“Congress shall make no law …

abridging the freedom of speech, [or]…to petition the Government for a redressof grievances.” Amend. I, U.S. Const.See also Art. I, § 4, Maine Const.

Freedom of speech is a bedrock prin-ciple of our democracy. It is protected bythe Supreme Court’s application of astrict scrutiny analysis when reviewinglaws that attempt to curtail that speech.That analytical framework requires thatthe government “prove that the restrictionfurthers a compelling interest and is nar-rowly tailored to achieve that interest.’”Sindicato Puertorriqueno de Trabajadoresv. Burset, No. 12-1531 (PG), 2012 U.S.Dist. LEXIS 141024, at *15 (D.P.R.Sep. 27, 2012)(citing Citizens United v.Federal Election Comm’n, 558 U.S. 310,130 S.Ct. 876, 898, 175 L.Ed.2d 753(2010)). See also, NAACP v. Button,371 U.S. 415, 438 (1963)(“[O]nly a com-pelling state interest in the regulation of asubject within the State’s constitutionalpower to regulate can justify limitingFirst Amendment freedoms.”)

Whether a law attempting to limitspeech is narrowly tailored enough to sur-vive strict scrutiny has been the subject ofsignificant litigation. For example, TheSupreme Court upheld a Tennessee lawthat prohibited campaigning within 100feet of a polling place, because voterintimidation and voter fraud are so “diffi-cult to detect” that creating the bufferzone was necessary to protect anotherfundamental right, “the right to cast aballot in an election free from the taint ofintimidation and fraud.” Burson v.Freeman, 504 U.S. 191 (1992). In con-trast, the Supreme Court struck down asimilar Massachusetts law that createdbuffer zones around abortion clinics, inpart, because “[o]bstruction of abortionclinics and harassment of patients, bycontrast, are anything but subtle” andthere existed other, less restrictiveoptions for protecting patients. McCullenv. Coakley, 573 U.S. 464, 496 (2014).

cient protection from foreign interfer-ence. For example, a foreign entity witha U.S. subsidiary must not interfere with,contribute funds to, or direct the politicalefforts/speech of its U.S. subsidiary. See,e.g., 22 U.S.C. § 611(c); 11 CFR§110.4. Subsidiaries that are separatelyincorporated are considered separatelegal entities for purposes of analyzingcampaign contributions. So long as theentity establishes a separately segregatedfund (SSF) into which no foreign moneyis contributed and no direction from aforeign entity is received, a local corpo-ration can and should be allowed to par-ticipate in the legislative process, includ-ing initiated legislative proposals,through issue advocacy.

Federal law does not talk about own-ership percentages when determining ifan entity is a foreign principal. It looks atwhere the principal place of business islocated and where the organization wascreated. See, id. See also, FEC AO 1985-3 (“Under 22 U.S.C. 611(b), a corpora-tion organized under the law of any statewithin the United States whose principalplace of business is within the UnitedStates is not a foreign principal and,accordingly would not be a ‘foreignnational’ under 2 U.S.C. 441e.”)

Because that definition was enactedby Congress, the default interpretation ofthe word “person” includes “corpora-tions, companies, associations, firms,partnerships, societies, and joint stockcompanies, as well as individuals…” 1U.S.C. § 1.

In addition to the new and overbroadcharacterization of what constitutes a for-eign national for purposes of this legisla-tion, it ought not to go unnoticed that thislegislation alone singularly sets itself apartfrom the general provisions of 21-AM.R.S.A. § 1004. The maximum fineunder § 1004 is $10,000. The maximumfine in this legislation is $100,000. Perhapsthis singular sanction is intended to consti-tute evidence of narrow tailoring but con-versely it sends the message that a politicalcontribution by a company doing businessin Maine that is 49% owned by Americans

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Chamber’s amendmentto service provider tax bill prevents double taxation

On the last day of the session, a depart-ment bill sponsored by Rep. Ryan Tipping(D-Orono) – LD 2011, An Act to UpdateCertain Provisions in the Income Tax andService Provider Tax Laws – was tabled in theHouse and carried over to any special session.Linda Caprara of the Maine State Chambertestified in opposition to the bill because itwould impose a new tax on users of stream-ing services transferred for less than perma-nent use. The bill was tabled pending adoptionof either report, with the majority “ought topass” report including the language offered onbehalf of Maine State Chamber members.

Currently, the State imposes a sales-and-use tax on digital products transferredelectronically for permanent download.Digital services that are just streamed fortemporary use are not currently subject tosale and use tax. This bill would codify dif-ferent treatment for these two types oftransactions: one would be subject to 5.5%sales tax, while the other would be subjectto 6% service provider tax.

In addition, as drafted, it is not clearwho is taxed. The Maine State Chambertestified that, in the event the committeedecides to go forward with the legislation,the bill should be amended to provide aclear definition of the term “digital audiovisual” and “digital audio services.” Thedefinition clarifies that the tax applies onlyonce to the “end user,” not to additionalservice provider contractual relationshipsalong the way. Maine Revenue Servicessaid they did not object to the amendment.Without this clarification, the bill wouldprovide a lack of transparency of the taxbase and result in multiple layers of tax.Again, the amendment would clarify thatthe tax applies once and would prevent so-called double taxation of the same service.

The committee voted to accept theMaine State Chamber’s amendment, andthe majority “ought to pass” report includ-ed the proposed language. If you have anyquestions, please contact Linda Caprara bycalling (207) 623-4568, ext. 106, or byemailing [email protected]. r

As originally drafted, LD 1977 would have mandated manufacturersof devices and equipment to provide coding and repair information to uncertified repair shops or individuals

The Maine State Chamber supports policies and priorities that help Mainebusinesses prosper and our economy flourish to make Maine as competitive aspossible.  The Chamber opposed LD 1977, An Act To Ensure a Consumer’sRight To Repair Certain Electronic Products. Sponsored by Senator MichaelCarpenter (D-Aroostook), the bill would have mandated businesses that manu-facture devices and equipment to provide coding and repair information for theirproducts to uncertified repair shops or individuals.

The Maine State Chamber represents many businesses that develop productsand services for a wide range of individual consumers and businesses.Consumers rely on these products to operate safely, securely, and accurately,whether they are being used for personal or business use. With today’s modernand evolving technology, consumers are more reliant upon technological devicesand equipment. It is important to remain conscious about the safety and securi-ty of these products.

LD 1977 as drafted did not consider the complexities of the products inquestion. The manufacturers are certified and have warranties on their products.Allowing anyone who is uncertified to repair products is unfair to certified com-panies and could pose a safety risk to consumers, especially when individualspurchase third party components for those repairs. By making repair informa-tion publicly accessible, consumers are more likely to attempt repairs on theirown and to be exposed to risks of injuries and property damage. Additionally,by providing every consumer and non-authorized repair facility with the sameinformation as authorized service providers, without the requisite training andcertification, the facility can offer services of sub-standard quality insufficient tomaintain the reputational value of the product.

In addition, this legislation created privacy and security concerns. The secu-rity of user information on these products is important. Allowing anyone who isnot certified or trained to repair products would weaken the privacy and securi-ty protections of those products and create risks for consumers.

The Joint Standing Committee on Innovation, Development, EconomicAdvancement and Business (IDEA) heard opposition from many, and the billhad numerous work sessions before it was amended by the committee. The lat-est amendment would have made it so that only the screen of a cellular devicewould have been able to have been repaired by uncertified repair shops.Committee members questioned if this law was already in existence, making thisbill unnecessary. Ultimately, the committee was divided on its report, and theLegislature adjourned before acting on LD 1977. The bill is currently carriedover into any Special Session.

For more information, please contact Megan Diver by calling (207) 623-4568, ext. 108, or by emailing [email protected]. r

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type of legislation would serve as a sig-nificant deterrent to those businesses thatthe Chamber and others are working sohard to attract, because what companywould want to move operations to Maineif they would be silenced on a ballot ques-tion that could significantly and detrimen-tally impact their ability to maintain prof-itability here?

The Maine State Chamber ofCommerce truly is the voice of Mainebusiness. That is not merely a slogan.The Chamber speaks for approximately5,000 business enterprises of all sizes andshapes in every corner of the State onissues important to business generally.The Chamber has also been diligentlyworking to improve Maine’s business cli-mate to make Maine a more attractiveplace for foreign investors to generatenew economic activity for the benefit ofall of Maine’s people. Very few thingsare more harmful to any business devel-opment strategy than instability, unpre-dictability, or uncertainty. If a companycan diligently comply with all applicablerules from the inception of a project andthen be silenced by this law when othersseek to defeat their efforts by initiatedreferendum, a prudent potential investorwill be less enthusiastic about theprospect of coming here.

Finally, emergency legislation isrightly limited to “only such measures asare immediately necessary for the preser-vation of the public peace, health or safe-ty…” Maine Const. Art. IV, Part 3, § 16.The exceptions laid out to the normal leg-islative timeline are narrowly tailored andare intended for those issues that are clearcut and can be enacted without the neces-sity of significant research or input fromthe public. This bill does not appear to fallinto any of those categories and is muchtoo complicated a measure to be consid-ered in an emergency legislation context.There are significant and yet-unexploredunintended consequences of the proposedlegislation that should caution theCommittee against the current course.The Chamber represents business ownersat every level of the economic continuumin Maine and, based on the broad impactthis could have on our constituents atevery one of those levels, the Committee‘ought not to pass’ this legislation. r

struck it down, finding that the law “doesnot advance a legitimate governmentalinterest significant enough to justify itsinfringement of First Amendment rights.”Citizens Against Rent Control/Coalitionfor Fair Hous. v. Berkeley, 454 U.S. 290,299 (1981). That Court found that whatev-er the state’s interest in regulating contri-butions to a candidate, that there was nosimilar interest in “curtailing debate anddiscussion of a ballot measure.” Id. at 299.

Although Citizens United is a contro-versial Supreme Court decision, we mustanalyze the proposed legislation within theframework of that case because it is thecontrolling law. The Supreme Courtexplained that “because speech is an essen-tial mechanism of democracy—it is themeans to hold officials accountable to thepeople—political speech must prevailagainst laws that would suppress it bydesign or inadvertence.” Citizens Unitedv. FEC, 558 U.S. 310, 312 (2010). TheSupreme Court noted that the weight ofFirst Amendment protections is strongbecause it is “[p]remised on mistrust ofgovernmental power,” and therefore it“stands against attempts to disfavor certainsubjects or viewpoints or to distinguishamong different speakers, which may be ameans to control content.” Id. at 312.

If this proposed legislation were to beenacted, it would very likely draw Maineinto litigation. And Maine would verylikely lose the argument because it wouldbe committing “a constitutional wrong” byidentifying “certain preferred speakers”because there is “no basis for the proposi-tion that, in the political speech context,the Government may impose restrictionson certain disfavored speakers.” Id. In thiscase, the “disfavored speakers” areMaine-based businesses with foreign par-ent companies or shareholders.

Specific Impact on Maine Companies…Many of Maine’s companies – from

large to small – have shareholders fromother countries. This legislation wouldhave a negative impact on many busi-nesses of every size already in operationwithin our borders. Additionally, this

Bill to increase corporate income taxis defeated

The Joint Standing Committee onTaxation has defeated LD 903, An Actto Improve Corporate Tax Fairness byAmending the Rates Imposed onCorporate Income. The Maine StateChamber opposed the bill last session.

Sponsored by Rep. Scott Cuddy (D-Winterport), LD 903 would have estab-lished two new tax brackets and threenew rates for corporate income tax. Thebill would have increased the tax on cor-porate income between $2 to $3 millionfrom 8.33% to 8.5% and on corporateincome between $3 to $3.5 million from8.33% to 8.75%. In addition, it sought toraise the top rate to 9% from 8.93% onincome of $3.5 million or above. Itwould have also made Maine one of onlyseven states in the nation to have corpo-rate income tax rates 9% or above.According to the Tax Foundation,Maine’s current top corporate income taxis already higher than the top rate inneighboring New England states ofConnecticut, New Hampshire, Vermont,Rhode Island, and Massachusetts.

Linda Caprara testified on behalf ofthe Maine State Chamber, noting thatraising the corporate income tax wouldmake Maine less attractive, less competi-tive, and would impact future investmentshere. Paying higher taxes can impact theamount the business owner chooses toreinvest in their businesses in terms ofcapital and personnel, and failure to rein-vest can have a direct impact on growingthe economy and job creation.

Caprara added that, according tothe Tax Foundation, “Economic evi-dence suggests that corporate incometaxes are the most harmful type of taxand that workers bear a portion of theburden. Reducing the corporateincome tax will benefit workers asnew investments boost productivityand lead to wage growth.”

If you have any questions abouttax policy positions, please contactLinda Caprara by calling (207) 623-4568, ext. 106, or by [email protected]. r

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Opposed by the MaineChamber, estate tax billwould create two exclusion amounts

LD 420, An Act to Amend the MaineExclusion Amount in the Estate Tax, spon-sored by Rep. Benjamin Collings (D-Portland), resurfaced in the Taxation com-mittee in 2020, after failing to garner enoughvotes to pass in the House (70-75) and in theSenate (12-19) last session (2019). The billremains carried over to any special session.

In early March, the Taxation com-mittee voted 5-5 on the “ought-not-to-pass” motion. Because it was a tie, allpresent committee members agreed to letthe absent committee members vote. Thatfinal vote had not been entered in the leg-islative record as of press time.

When the legislature adjourned onMarch 17, LD 420 had not yet been votedout of committee. The amended versionwould have returned the exclusion amountfrom $5.7 million to $2 million and wouldhave provided an additional exclusionamount of $3.8 million specifically for fish-ing, farming, aquaculture, and wood har-vesting businesses. While, this is what wasreported the amendment would look like,the actual language was not yet drafted.

The Maine State Chamber opposedLD 420 because it would have lowered theexclusion amount for estate tax purposes.The Maine State Chamber has been onrecord for increasing the estate tax exclu-sion amount or eliminating the estate taxaltogether. The Maine State Chamber hasargued that the estate tax hurts Maine busi-nesses, particularly smaller businesses andfarms, that work very hard to pass longassets to their children and grandchildren.Lowering the exclusion amount would takeaway that opportunity and instead slapthem with a massive death tax. If benefi-ciaries could not pay the taxes due up front,they may be forced to deplete any capitalthey have in the business or perhaps evenneed to sell it to pay the tax. Ultimately, itpunishes and penalizes success.

If you have any questions, please contactLinda Caprara by calling (207) 623-4568, ext.106, or by emailing [email protected]. r

“Ban the Box” proposal barring employers from asking about criminal convictions on job applications in limbo

Like hundreds of bills stuck in the legislative “coronavirus quagmire,” a billthat would prohibit an employer from asking about a prospective employee’s pastcriminal history on a job application remains in public policy limbo, and contingenton a future special session of the 129th Legislature.

In February 2020, the Joint Standing Committee on Labor and Housing held apublic hearing on LD 2087, An Act Relating to Fair Chance in Employment, spon-sored by Rep. Rachel Talbot Ross (D-Portland). More than a dozen states haveenacted similar laws – the purpose of which is to encourage the hiring of peoplewith a criminal record. Rep. Talbot Ross has had similar, but more disconcerting,proposals in past sessions. This year, she took a more pragmatic approach, limit-ing her bill just to prohibiting employers from asking about a prospective employ-ee’s previous criminal convictions on any written or electronic job application.

As drafted, LD 2087 would allow an employer to ask such questions during thejob interview and to conduct criminal background checks. In addition, it would notmake people with a previous criminal history a protected class for the purposes ofhiring. It would also allow an employer to decline to hire the individual for that orany reason, other than those already prohibited under Maine and federal law.

The idea behind the proposal is to give good workers who have rehabilitatedthemselves and are willing and able to work a chance to get into the interviewprocess without being disqualified just because of their criminal history. ManyMaine employers already hire applicants with a previous criminal history, in partbecause of the acute workforce shortage, and in part because they are willing totake a chance on someone who is working to rebuild their lives for the better. Inmany cases, Maine State Chamber members have indicated that these hires haveworked out for the better for both parties. Supporters of the proposal indicated that,if a prospective hire can at least get through the door, they have the chance to sellthemselves and become an asset to the business.

The bill would provide exemptions for employers who operate under any fed-eral or state law or regulation or rule that creates a mandatory or presumptive dis-qualification based on any conviction, such as banking, finance, or health care.

During the public hearing earlier this session, the Maine State Chamber testified“neither for nor against.” Its public policy committee members did not have an issuedropping the question from any job application – as long as they were able to ask thequestion during an interview and could conduct a criminal background check.Employers also wanted the final decision of hiring any employee to remain in thehands of the employer, allowing them to be the best judge of whether a prospectiveemployee, with a criminal past or not, was the best fit for their workplace.

Just before the pandemic shut down the legislative process, the Labor commit-tee had held a work session with bill’s sponsor and other stakeholders. At the worksession, the sponsor agreed to several changes the Maine State Chamber hadrequested regarding some of the provisions in the language. The committee agreedwith those changes, and the bill was voted out. The vote was divided along partylines, with Democrats supporting and Republicans opposing. Before the bill couldbe released from committee, the session was adjourned. Therefore, like many oth-ers, the outcome of the bill is unresolved.

If the legislature returns for a special session, it is possible the issue might betaken up again. If not, it is a safe assumption that someone will bring this propos-al back for further consideration in a future session. For questions or additionalinformation, please contact Peter Gore by calling (207) 623-4568, ext. 107, or byemailing [email protected]. r

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experience of the individual andother factors.

Last year, ReadyNation released anational report that sheds light on ournation’s childcare crisis. The reportshows that inadequate access to afford-able, quality childcare for infants and tod-dlers is costing our economy billions ofdollars each year. Business leaders recog-nize that this lost productivity is hinder-ing economic growth and harming bothemployers and employees.

The childcare predicament is felt byparents as well as businesses. Nearly one-third of parents report having difficultyfinding childcare. This leads to reducedproductivity for working parents, andover 10% of parents report being demot-ed, transferred, or fired due to childcareproblems. Businesses feel these impactsas well, through decreased output andextra costs to manage workforce disrup-tions. The ReadyNation report states thatthe cumulative impact on the nationaleconomy is $57 billion – a significantsum that could contribute to stronger eco-nomic growth if the underlying issues ofthe childcare crisis are resolved.

While we do not have a similar reportspecifically on the status of Maine’s child-care system, we do know that 73 percentof all children under age 6 have all parentsin the workforce. And the Maine StateChamber of Commerce hears from localchamber members – specifically those onthe coast and in Central Maine – that thelack of childcare is impeding area busi-nesses’ ability to hire and keep employ-ees. Earlier in the year, the Central Mainenewspapers published a series of articleson the lack of quality, affordable earlychildhood care and education in the areaand how it has grown to be an ongoingconcern for businesses and organizationswhose employees need it.

The lack of quality, affordable earlychildhood care and education in Mainehas been an ongoing concern for busi-nesses and organizations whose employ-ees need it. We know that we need toattract and retain more early childhoodworkers to support these programs. LD1584, An Act to Attract, Build and Retainan Early Childhood Education WorkforceThrough Increased Training, Educationand Career Pathways, seeks to addressthis need and the challenges if presents toemployees, employers, and families.Sponsored by Assistant House MajorityLeader Ryan Fecteau (D-Biddeford), thisbill requires the Commissioners of Healthand Human Services, Education and theLabor to jointly develop and implementan early childhood educator’s workforcesupport program to recruit and retainearly childhood educators working withchildren up to five years of age.

LD 1584 had its public hearing dur-ing the First Regular Session (2019) ofthe 129th Maine Legislature and was car-ried over into the Second Regular Session(2020). Components of the program, ifpassed, include:w Expansion of educational programs

at career and technical education cen-ters, and the financial support ofthose programs;

w Comprehensive scholarships for peo-ple taking classes toward the attain-ment of an early childhood educationcredential or an associate or bache-lor’s degree that allow the persons tograduate without student debt as longas the persons agree to work for ayear with an approved employer;

w An increased number of apprentice-ships; and,

w Salary supplements awarded to indi-viduals who provide childcare orwho are early childhood educators.The amount of the supplement isbased on the level of education and

Significant R&D investmentcrucial to achievelong-term success

The Joint Standing Committee onAppropriations and Financial Affairsheard LD 602, An Act to Authorize aGeneral Fund Bond Issue to SupportResearch and Development in Maine, inearly January. Sponsored by Sen. JimDill (D-Penobscot), LD 602 would askvoters to borrow $50 million for biotech-nical and biomedical research and forestproducts research.

The Maine State Chamber testified insupport for LD 602 due to the importanceof research and development (R&D)investment to Maine’s economy and busi-nesses. The Chamber supports policiesand priorities that help Maine businessesprosper and our state’s economy to flour-ish, making Maine as competitive as pos-sible. R&D play a vital role in Maine’seconomic future.

Maine remains reliant on industriesthat are expected to be stagnant or losejobs over the next decade. R&D is impor-tant to existing companies in Maine andespecially important to new Maine com-panies. R&D is important across manybusiness sectors – manufacturing,biotechnology, software development,engineering, pharmaceuticals, and manymore. Today, Maine businesses competeglobally. R&D is crucial to any companydeveloping its own product(s) and criticalto innovation to help companies bringforth new products and services. It’s nec-essary for companies to stay ahead of thecompetition at all times and continuedR&D investments ensure this is possible.Investments in R&D creates businessopportunities, high-wage jobs, and taxrevenues through development of newproducts and improvements in the current

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Early childhood education workforcelegislation divided in committee and carried over to special session

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An act to createaffordable workforceand senior housingand preserve affordable rural housing signed intolaw this session

LD 1645, An Act To CreateAffordable Workforce and SeniorHousing and Preserve Affordable RuralHousing, was passed by the Legislatureand signed into law as Public Law,Chapter 555. This law doubles the cur-rent rate of new affordable housing pro-duction by creating the MaineAffordable Housing Tax Credit pro-gram. The refundable credit is adminis-tered by the Maine State HousingAuthority and is available to individualsor corporations who invest in afford-able housing. The program is capped at$10 million per year for eight years,with portions earmarked for seniorhousing and rural housing. It also lever-ages an equal amount of federal low-income housing tax credit dollars.

The bill’s sponsor, AssistantHouse Majority Leader Ryan Fecteau,worked with a bipartisan coalition ofhousing advocates, contractors, engi-neers, and local officials to developthe proposal. It draws on the existingstate Historic Rehabilitation TaxCredit as well as similar laws in morethan a dozen other states, includingVermont, Massachusetts, andConnecticut. According to the MaineAffordable Housing Coalition, onlyabout 52 available affordable housingunits exist for every 100 Maine fami-lies earning 30 percent or less of themedian income.

For more information, pleasecontact Megan Diver by calling (207)623-4568, ext. 108, or by [email protected]. r

out of the labor force, constrainingemployers’ ability to fill open positions.This hinders families’ abilities to flourishand takes away great developmentalexperiences from Maine’s youngest chil-dren, who we will depend on to strength-en our communities and continue to buildour economy when they are adults.

We know that 73% of all Maine chil-dren under age 6 have all parents in theworkforce. We know that working parentswant their children enrolled in high-qualityearly learning programs and that full dayprograms, especially those that includewrap around care before- and after-school,are what is most needed for working par-ents’ schedules. Such continuity of careprovides young students with the ability tocreate attachments to the same caregiver –which is one component of quality.

That’s the kind of programmingembraced by LD 1760, which seeks totransform community service coordinationby using all of the assets of a local com-munity and breaking down the silosbetween services to reduce fragmentationin services to children and families. LD1760 is designed as a community-basedapproach, it is comprehensive and multi-generational, and it also supports the much-needed training and technical assistance tothose working in the childcare field.

Without question, childcare is a keypiece of Maine’s future workforce devel-opment, and the Maine State Chamber ispleased to see that the Administration hasrecognized that fact and has made increas-ing access to childcare part of Maine’snew 10-year economic plan. LD 1760 isthe first step in achieving this goal. 

LD 1760 was one of the many carry-over bills this session. It is possible thatthe Legislature could take LD 1760 up ina Special Session. However, if theychoose not to, the Maine State Chamberhopes that this bill is introduced again inthe 130th Legislature. For more informa-tion, please contact Megan Diver by call-ing (207) 623-4568, ext. 108, or byemailing [email protected]. r

The Maine State Chamber ofCommerce is proud to be a co-leader ofthe MaineSpark Coalition, dedicated toachieving the state’s education attainmentgoal that 60 percent of Maine adults havea credential of value by 2025. The MaineState Chamber supports high-quality earlylearning programs and the importance ofsupporting proposals like LD 1760, AnAct To Support Children’s HealthyDevelopment and School Readiness, as atool to build and strengthen Maine’sfuture workforce. Maine needs to attractand retain young working families. Thefuture of our economy depends upon it. Inorder for Maine to be able to do this, oneof the steps requires access to quality,affordable early care and education.

The Maine State Chamber and ourbusiness members believe strongly thateducation is the single most importantinvestment that can be made to ensure suc-cessful participation in the new, knowl-edge-based economy, earnings growth andimproved health status. Post-secondaryeducation and training are critical buildingblock to ensure success in the work force.High-quality early education and K-12 areimperative building blocks to ensure post-secondary success. Moving each andevery Mainer along the educational contin-uum to their highest educational potentialis imperative. We have all seen the chartsand know that there is a huge different inlifetime earnings between a college gradu-ate and someone who drops out of highschool: $1.5 million per drop out. Thesestaggering earning losses translate into lessspending power, fewer contributions to thetax base, and less productivity.

Not only does quality childcare sup-port the development of young childrenand lead to a vibrant future workforce,but its presence also provides importantworkforce infrastructure right now thatallows parents to be productive at theirjobs or higher education pursuits. Thereare great consequences for families whocannot obtain childcare for their children;it has resulted in parents having to step

LD 1760 provides as a community-basedapproach to increasing access to childcare, supports training and technical assistance in childcare field

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Legislature carries over bills to provide funding for capitalimprovements and equipment for career and technical educationcenters to special session

With education-attainment levels rising and trade skills and technology con-stantly evolving in the modern economy, there is an increasing need for well-trained and well-educated employees. Therefore, the Maine State Chamberbelieves that education or training is needed beyond a high school diploma.

Maine is faced with a workforce shortage across all sectors and regions, and by2025, Maine will need approximately 158,000 more workers than exist here today.For a state facing an enormous workforce shortage, we need to establish alternativepathways for our future workforce that ultimately lead to an increase of workers intothe workforce earning a paycheck and helping our local businesses thrive.

The Maine State Chamber supported LD 1947, An Act To Fund CapitalImprovements to Career and Technical Education Centers, and LD 2022, An ActTo Provide Funding for Capital Improvements and Equipment for Career andTechnical Education Centers and Regions. Both would help Maine studentsacquire the necessary skills to succeed in today’s high-skilled workforce. Thesebills would benefit and advance career and technical education (CTE) programsin Maine and increase student participation in work- based learning and fosterindustry-recognized and postsecondary credentials.

Increased funding to CTE programs is crucial to helping Maine studentsacquire the skills needed to be successful in today’s workplace. Because employ-ers are reporting a shortage of skilled workers to fill in-demand positions, ensur-ing that secondary and postsecondary institutions offer modern, quality, and rel-evant career and technical education (CTE) programs remains a priority so thatwe can develop and grow our state’s workforce. As competition for high-skilledlabor increases and as Maine’s economy reaches full employment, every effortmust be made to close the skills gaps that many industries face.

CTE offers students opportunities for career awareness and preparation by pro-viding them with the academic and technical knowledge and work-related skills.

Research shows that several states have benefitted from investments intoCTE programs, such as Connecticut, Washington, and Tennessee. For example,Tennessee attributes $13 million in annual tax revenues to CTE program gradu-ates. The U.S. Department of Education data explores and highlights CTEaccess, participation, and educational and labor market outcomes. The datashows that participating in CTE can provide students with a strong foundation oftechnical knowledge and employability skills to complement their academic stud-ies and prepare them for both college and career options.

LD 2022 was amended and passed unanimously out of committee, while LD1947 came out of committee with a divided report. Both bills didn’t make it tothe full Legislature to act upon before it adjourned and have been carried overinto any Special Session the Legislature may have.

For more information, please contact Megan Diver by calling (207) 623-4568, ext. 108, or by emailing [email protected]. r

It is important that we improveaccess and affordability to high-qualitychildcare. We only achieve the education-al outcomes we seek for Maine’syoungest learners when their programsare high-quality. That means the earlyeducators need the sort of trainings andprofessional development outlined in thisbill. We thank Rep. Fecteau for puttingthis forward to begin the conversation tosupport a more productive workforce andeconomy, both now and in the future.After all, the childcare workforce isthe workforce behind the workforce!

Unfortunately, the committee wasdivided on its report, and the Legislatureadjourned before voting on this bill. LD1584 remains carried over into SpecialSession. For more information, pleasecontact Megan Diver by calling (207)623-4568, ext. 108, or by emailing [email protected]. r

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R&D Investment...(Continued from Page 16...)

technology of existing businesses.According to the U.S. Department of

Commerce’s Bureau of EconomicAnalysis, “Innovation has long been rec-ognized as an important driver of eco-nomic growth. New ideas can spark waveupon wave of new goods and services thatliterally transforms an economy, makingit robust and vibrant.”

The Maine State Chamber believesthat the State should make a long-termcommitment to support research anddevelopment here. Maine is far behindwhere it needs to be in funding for R&D,and it will take a significant investment toachieve long-term success.

For more information, please contactMegan Diver by calling (207) 623-4568, ext.108, or by emailing [email protected]. r

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Taxation committeeapproves commissionto study impacts ofstate’s tax policy onsmall business andworking families

Commission excludes medium- and large-sized

businesses in Maine

On Thursday, January 30, the JointStanding Committee on Taxation voted 8-3 “ought-to-pass as amended” on LD1929, Resolve, Establishing theCommission to Study Fair, Equitable andCompetitive Tax Policy for Maine’sWorking Families and Small Businesses,sponsored Rep. Ryan Fecteau (D-Augusta). The bill would establish an 11-member commission to study the impactof the state’s tax policy on working fam-ilies and small businesses and developrecommendations designed to ensure thetax policy is fair and equitable whileensuring the state remains competitive.

At its public hearing, the Maine StateChamber testified in opposition to the billfor several reasons. First, there were norequirements that an expert in tax policywould serve on the commission.Secondly, the focus of the report wasonly on one segment of the business com-munity. The state’s tax policy impactsmore than just small businesses. Large-and medium-sized businesses are asimportant and were not considered toserve on the commission.

The Taxation committee amended thebill to include a representative from MaineMunicipal Association and a representa-tive from Maine’s farming community,and also to require that one commissionmember be an expert in tax policy. Thebill remains engrossed in both the Houseand Senate and was carried over to anypotential special session. If you have anyquestions, please contact Linda Caprara bycalling (207) 623-4568, ext. 106, or byemailing [email protected]. r

LD 509 seeks to address college affordability

The Maine State Grant Program provides need-based grants to Maine

undergraduate students. Currently, the maximum grant award amount is

$1,500. LD 509, An Act To Increase the Minimum Grant Amount under the

Maine State Grant Program, would raise the minimum grant amount to

$2,500 and appropriates the funds necessary to achieve this while continuing

to help the roughly 12,000 students that benefit from the program annually.

This change will have a meaningful impact on Maine students who

would otherwise, despite their best efforts, fall short of paying for a post-

secondary education, without the burden of massive student loan debt.

The Maine State Chamber and its business members believe strongly

that education is the most important investment that can be made to ensure

successful participation in the new, knowledge-based economy. Post-sec-

ondary education and training is critical for creating a strong economy and

to ensure success in the workforce. Education is the best means for individ-

uals to create a better future for themselves or their families, and an educat-

ed workforce benefits all of us by making the economy more productive and

making Maine a place that families want to live and for businesses to thrive,

expand and be successful.

The Maine State Chamber continues to hear about the predicament that

lies before our state in terms of college affordability and student debt.

Investing in Maine’s higher education institutions is the best way to address

student debt. Many Maine college students experience an “Affordability

Gap” in their ability to pay for the complete costs associated with college.

Some of this is associated with the result of a sustained trend of underfund-

ing of our public higher education institutions and grant programs. Too

many in the state choose not to pursue higher education or fail to complete

programs due to an inability to afford the price or financial pressures once

enrolled, creating a worse situation for themselves by being burdened by col-

lege debt but with no credential to show for it.

Increasing the State of Maine Grant Program would help Maine’s econ-

omy work and ensure that Mainers’ education and career choices aren’t dic-

tated by their financial situation, allowing them the opportunity to succeed,

regardless of income.

LD 509 had a public hearing during the First Regular Session of the

129th Legislature, and committee members were divided on their vote. The

Legislature adjourned prior to voting on the bill, and it was carried over into

any Special Session the Legislature may have. For more information, please

contact Megan Diver by calling (207) 623-4568, ext. 108, or by emailing

[email protected]. r

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age across all sectors and regions. By 2025,Maine will need approximately 158,000more workers than exist here today. Maineis the oldest state in the nation and gettingolder. More people are dying than beingborn. Our median age has gone up. Ourworkforce is smaller than it was 10 yearsago, and baby boomers are exiting the work-force with fewer younger workers to taketheir place. Unless this trend is reversed, theMaine economy will begin to suffer. Capitalinvestment simply will not flow to a placewith a shrinking and aging workforce.

There is some great work being done inattracting people to move to our state, butwe must do more. Just as we are the oldeststate in the nation, we are also the leastdiverse. Maine has experienced a recentpopulation growth, which has been dueentirely to immigrants. Maine is home toroughly 49,000 immigrants. These peoplehave higher educational levels than Mainers,on average, and if they are asylums seekers,they tend to have advanced degrees and areprofessionals. They have become entrepre-neurs and opened new businesses.

We constantly hear about the work-force shortage across the state of Maine andacross of fields, health care, construction,and hospitality. Communities are all experi-encing more immigrants in the communityand the corresponding need for ESL classes.

There are many Maine people who arenot employed to their full potential, but immi-grants face a more unique barrier. Maine needsspecific strategies and supports to integratethem into the workforce. Some immigrantshave limited English skills, a lack of familiari-ty with the job application and interviewprocess, lack of U.S. work experience, diffi-culties with credential recognition and recertifi-cation challenges, lack of transportation, andthe list goes on. Maine needs a coordinated ini-tiative to invest in this new workforce.

The bill was approved in both theHouse and Senate in the First RegularSession and was left on the SpecialAppropriations Table as unfinished busi-ness and a carry over. LD 647 remains acarryover bill and could be considered dur-ing a Special Legislative Session. For moreinformation, please contact Megan Diverby calling (207) 623-4568, ext. 108, or byemailing [email protected]. r

20 III Impact III June 2020 For the most current information, visit www.mainechamber.org

During the second session, the MaineState Chamber continued its work on LD647, An Act To Attract, Educate and RetainNew State Residents To Strengthen theWorkforce, with Rep. Kristen Cloutier (D-Lewiston), as well as with members of theAppropriations and Financial Affairs (AFA)committee, House and Senate leadership,and the administration. LD 647 would createvarious programs to provide education, ser-vices, and training for the state’s workforceimmigrant populations. The bill wouldaddress some of the basic barriers to inte-grating immigrants into the workforce and tobecoming a welcoming state so that we willbe able to attract people of all nationalities.

First and foremost, this bill proposesmore resources to help immigrants learnEnglish, with an emphasis on English lan-guage classes tailored to specific workplacesand industries. The more English-proficientpeople are, the higher their earnings andability to contribute to the local economy.

The bill would help immigrantsunderstand the economic landscape, theneeds of employers, and the process forapplying and interviewing for jobs.

LD 647 places responsibility in theOffice of Adult Education at the Departmentof Education to administer competitive grantprograms to spread money beyond just theurban areas and to communicate withemerging immigrant populations.

It would establish the Welcome CenterInitiative to operate welcome centers inadult education programs to provide educa-tion, services and training for foreign-trained workers in municipalities or regionsof the state that have immigrant populationsor that have industries that are experiencinga shortage of trained workers, patternedafter the New Mainers Resource Centeroperated by the City of Portland adult edu-cation program through a pilot program cre-ated by the 126th Legislature. These centerswould work particularly with higher-skilledimmigrants to provide services and trainingto prepare them to enter Maine’s job marketwithin a period of six to 18 months.

Additionally, the bill tasks theDepartment of Education to providegrants for English Language instructionfor adult education programs.

Maine is faced with a workforce short-

LD 647 seeks to attract, educate, and retain new state residents to strengthen the workforceStay connected

with the latest updates!

youtube.com/MaineChamber

linkedin.com/company/mainechamber

instagram.com/mainechamber

facebook.com/MaineChamber

twitter.com/MaineChamber

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June 2020 III Impact III 21For the most current information, visit www.mainechamber.org

Maine State Chamberlaunches “This is MECounting on You” campaign, encouragingMainers to safely and responsibly do their part to stop the spread of COVID-19

On May 20, the Maine StateChamber of Commerce launched a publicawareness campaign – called “This is MECounting on You” – encouragingMainers to do their part to stop the spreadof COVID-19. Following recommendedhealth and safety guidelines, such aswearing a mask and gloves and practicingsocial distancing, will ensure Mainereopens safely and successfully so Mainecan get back to business, Maine peoplecan get back to work, and Maine’s eco-nomic recovery can begin.

As part of the initiative, a televisionPSA is airing on cable stations soon andcan be viewed online at www.mecountin-gonyou.org/video. The initiative’s website,www.MeCountingOnYou.org, launchedby Maine State Chamber, hosts resourcesand links to recommended health and safe-

#PayItForwardMaine campaignlaunched to encourage local supportin the face of COVID-19 pandemic

On March 20, as Maine businesses and their employees  faced the initial,unprecedented  challenges posed by the COVID-19 pandemic, the PortlandRegional Chamber  of Commerce, Maine Department of Economic andCommunity Development, Maine State Chamber of Commerce, and the RetailAssociation of Maine partnered with several organizations across Maine tolaunch a campaign to support our community: #PayItForwardMaine. 

Supported by several Chambers of Commerce and community partners, the#PayItForwardMaine campaign continues to ask individuals, businesses, andorganizations to support local businesses and their employees as local business-es, service providers, and organizations navigate this new world of virtual store-fronts and social distanced workplaces.

“Maine people count on small businesses every day, not just for goods andservices, but for the contributions they make to our economy and our commu-nities,” said Dana Connors, president of the Maine State Chamber. “Our localbusinesses and their employees and families need our support now more thanever. Think of the impact if we all take action to #PayItForwardMaine.”

#PayItForwardMaine  encourages Mainers to consider the many ways  toshow support and to share your support through social media posts, photos, andactions by using the hashtag #PayItForwardMaine. Tagging family, friends, andfollowers in these posts challenges them to do the same. Suggested ways to con-tribute include:

w Buying a gift card, gift certificate, class pass, etc. – this may be the sim-plest and most effective way to continue supporting local businessesthroughout this crisis.  Think of a business you would have visited thatday/week/month and buy a gift card instead! 

w Utilizing take-out and curbside to-go services (websites like Portland FoodMap  are keeping updated lists of restaurants offering these services).Always call first and consider tipping more than usual!

w Purchasing merchandise from the business’ website – obviously retail loca-tions, but  many businesses and organizations  in all industries  offer mer-chandise such as clothing, hats, glassware, posters, and more. Buy onlineand have it shipped to your door! 

w Seeing if your service providers (accountants, business coaches, fitnessinstructors, etc.) offer virtual options;

w If you can’t afford to show monetary support, sharing the website or socialmedia account of  your favorite business or  organization  and encouragingothers to support them.  

w Offering up to help in any way you can, such as helping to deliver productsto those in need, volunteering your time to help feed the hungry, puttingtogether packets for school children, providing child-care for those stillworking (especially those in health care and medical fields) and in need ofa helping hand, or posting a video of teaching others about a favorite skillor technique.

To learn more, please visit PayItForwardMaine.com. r

Continued on Page 22...

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22 III Impact III June 2020 For the most current information, visit www.mainechamber.org

ty guidance and protocols. Printableposters are available for employers to placein their establishments to help providereminders for employees, customers, andvisitors to practice safe behavior. The ini-tiative is also on Facebook(facebook.com/MEcountingonYOU) withthe hashtag #MECountingOnYou.

“Maine businesses take very serious-ly their role in keeping their employeesand customers safe and preventing thespread or a resurgence of COVID-19,”said Dana Connors, president and CEOof the Maine State Chamber ofCommerce. “We hope ‘This is MECounting on You’ serves as a reminderthat every one of us also has an importantrole to play in defeating COVID-19. Weare all in this together and are countingon each other to act safely and responsi-bly. That is the best way we can supportone another, our communities, and Mainebusinesses so we reopen successfully, andeconomic recovery can begin.”

The Maine State Chamber is workingwith its members, local and regionalchambers of commerce, and other organi-zations throughout Maine to spread the“This is ME Counting on You” message.

“Now that Maine is graduallyreopening, ‘This is ME Counting onYou’ is an important reminder foremployers and patrons across Maine thatwe need to continue heeding the recom-mended health and safety precautions tostop COVID-19 from spreading orresurging,” said Jessie Perkins, executivedirector of the Bethel Area Chamber ofCommerce and current president of theMaine Association of Chamber ofCommerce Executives, (MACCE). “Thisinitiative reinforces the message that weall have a responsibility to stay on course,so Maine can get back to work and theway life should be safely and swiftly.” r

Counting on You...(Continued from Page 21...)

In mid-March, the Maine StateChamber decided to increase the produc-tion of its “The Bottom Line” podcast toa weekly frequency. During the COVID-19 pandemic outbreak, the podcast can beheard live on Thursdays at 10:00 a.m.

Launched in late September 2019,the Maine State Chamber of Commerce’podcast, “The Bottom Line,” features avariety of guests and highlight the variouspriority areas of the Chamber and issuesof importance to Maine’s business com-munity and economy. Airing at 10:00a.m. on the second and fourth Thursdayof each month, each 30-minute episode of“The Bottom Line” podcast livestreamstwice a month through WilliamsBroadcasting and is also archived onwww.mainechamber.org. “The BottomLine” can also be heard on iTunes, iHeartRadio, Soundcloud, Stitcher Radio,Spotify and radio.com.

To date, weekly guests have includedCommissioner Pender Makin of the MaineDepartment of Education; Dan Belyea,chief workforce development officer forthe Maine Community College System;Steve Hewins, president and CEO ofHospitality Maine; Laurie Lachance, pres-ident of Thomas College; Josh Broder,CEO of Tilson Tech; David Barber, busi-ness development specialist at TysonFoods; Kurt W. Adams, President & CEOof Summit Utilities, Inc.; Governor JanetMills; Chancellor Dannel Malloy of theUniversity of Maine System; KimberlySmith, Maine Department of LaborDeputy Commissioner; Matt Marks, CEOof the Associated General ContractorsMaine; Amy K. Bassett, district directorof SBA’s Maine district office; U.S.Senator Susan Collins; U.S. Sen. AngusKing; and, Bruce Wagner, CEO of theFinance Authority of Maine. r

Podcast shifts to weeklyschedule to share state andfederal pandemic resources

For the past 21 years, the MaineState Chamber’s annual LeadershipSummit has provided board membersand business leaders an opportunity todiscuss critical public policy issues withkey public officials from both sides of theaisle, as well as with administrators andrepresentatives of the executive branch.Again this year, the Chamber’s board ofdirectors and key business leaders gath-ered with legislative leaders and membersof the Mills administration on Thursdayand Friday, February 6 and 7, at SundayRiver with the shared goal of finding

Remember when events were in person?

On Thursday, March 12, the MaineState Chamber hosted its annual BusinessDay at the Statehouse in the Hall ofFlags. We didn’t know it at the time butit was the last public event held in theStatehouse, as the announcement ofMaine’s first case of COVID-19 occuredthat afternoon.

ways to attracting and building talent,fostering innovation, and the building thecritical support tools necessary to achievethe goals laid out in Governor Mills’recently-released 10-year EconomicDevelopment Strategy for Maine.

2020Leadership Summit

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June 2020 III Impact III 23For the most current information, visit www.mainechamber.org

In addition to our webinars, the MaineState Chamber shifted its annual LegislativeStrictly Social and its series of RegionalBusiness Breakfasts to a virtual format inorder for our members to have the opportu-nity to connect with each other and with leg-islators, as well as to hear about the legisla-tive happenings in the last days of the session.

Thank you to the many presenters,partners, and sponsors who made thesewebinars possible, including these webi-nar series sponsors: Bangor SavingsBank, Central Maine Power Company,and Maine Department of Economic andCommunity Development. Additionalwebinars are being developed, and spon-sorship opportunities are ongoing.

For more information, please contactAngela Arno, director of programs andevents for the Maine State Chamber, byemailing [email protected] orcalling (207) 623-4568, ext. 104. r

Like any other business, the onset ofthe COVID-19 pandemic required theMaine State Chamber of Commerce toshift gears quickly and nimbly. TheStatehouse closed to the public and ouradvocacy team navigated the public policyprocess remotely and virtually. The sametransitions occured with our full calendarof events and programs. Thankfully, wewere able to not only offer all of theevents on our traditional calendar, but wealso created a series of timely webinarsin response to the needs of our membersin the face of the global pandemic.

Webinar topics included human rela-tions, workers’ compensation, health careand insurance, financial and legal issues,working from home, state and federal sup-port programs, energy, international trade,sole proprietors, and manufacturers. Therecording of each webinar can be viewedat www.MaineChamber.org/webinars.

Maine State Chamber’s webinars provide valuableinformation and resources during pandemic

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24 III Impact III June 2020 For the most current information, visit www.mainechamber.org

Your Membership Matters!Someone has to speak up for Maine businesses. That’s where we come in.

The Maine State Chamber of Commerce is here, because you have a businessto run, product to produce, service to provide, people to employ, and a com-munity to support. You cannot do all those things and make sure the legisla-ture in Augusta is acting in your best interests. We’re here to influence the out-comes in the legislature, as well provide you with information, programs, andevents that are a real return on investment of your membership dues. We aretaking care of business in Augusta, so that you can take care of yours.

ADVOCACYThe Maine State Chamber has the largest and most respected advocacy pres-

ence of any business association in Maine. No other association covers as manyissues with broad public policy implications as the Chamber. From workers’compensation, to workplace issues, health care, energy, tax policy, education,workforce development, and environmental policy, our team of advocates is thelargest in the statehouse. With a combined experience totaling nearly, we arewithout question “The Voice of Maine Business” in the halls of Augusta.

It goes without saying that there is strength in numbers and the higher the number, the louder and stronger “TheVoice of Maine Business” is. If you are aware of someone or some organization that would benefit from a member-ship with the Maine State Chamber of Commerce, please put them in contact with Mark Ellis at (207) 623-4568 or [email protected]. r

ACCESSThrough our various networking events, our membership of more than

5,000 business owners and employees share best practices and create solidbusiness contacts each year. A Chamber of Commerce membership providesyou instant access to these area businesses and organizations. Our policy-ori-ented events give members the opportunity to interact with issue experts, opin-ion leaders, and policy makers in a meaningful way. Through these events, ourmembers not only learn more about issues, they add value to the dialogue bysharing their own perspectives.

AWARENESSWhether it’s the Impact newslet-

ter, the Chamber Minute and“Legislative Week Ahead” videoupdates, the news coverage archive,“The Bottom Line” podcast, or anythe other Chamber Newsroomresources, the Maine State Chamberof Commerce makes it easy for mem-bers to stay current on what’s goingon in Maine’s business community.

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Linda CapraraSenior Government RelationsSpecialist; Director of GrassrootsAdvocacy

[email protected]; ext. 106

Linda focuses primarily on taxationand budget issues. She also coordinates theassociation’s grassroots advocacy effortsand its annual Business Day at theStatehouse. In addition, Linda oversees theChamber’s Manufacturing Council, work-ing closely with Maine manufacturers onlegislative issues. Prior to joining theChamber in 2008, she served as theDirector of Government and Public Affairsfor the Maine Pulp and Paper Association.

June 2020 III Impact III 25For the most current information, visit www.mainechamber.org

Ben GilmanGeneral Counsel; CEO of the MSCC EducationFoundation

[email protected]; ext. 111

Ben brings to the Chamber a uniquecombination of experience in environ-mental and energy lobbying and, since1995, politics. He also oversees the

Maine Economic Research Institute, an affiliate of the Chamber. Hislegislative focus areas include utilities and energy, natural resources,business regulation issues, and education. Prior to joining theChamber, he was Director of Government Affairs for the MaineEnergy Marketers Association (formerly Maine Oil Dealers).

Megan DiverSenior Government RelationsSpecialist

[email protected]; ext. 108

Megan focuses primarily on educationand workforce development issues. Prior tojoining the Chamber in, Megan served asGovernment Relations Specialist at PierceAtwood, Government Relations andCommunications Manager at the MaineAssociation of Realtors andCommunications Director for Secretary ofState Charlie Summers.

Peter GoreExecutive Vice President

[email protected]; ext. 107

Peter is responsible for oversight andmanagement of the Chamber’s Advocacyteam, policy directives, and governmentrelations. His legislative focus areasinclude workers’ compensation law, labor/ management issues, health care / healthinsurance, economic development, andworkforce development.

Dana Connors, President [email protected]; ext. 103

As president of the state’s largest and most diverse business association since 1994, Connors oversees theChamber’s broad range of activities on behalf of its members as well as several affiliates. His leadership has positionedthe Chamber to be respected as “the voice of Maine business,” providing reasoned advocacy efforts, access to Maine’sAdministrative, Legislative and business leaders, and leadership ensuring that Maine’s employers and businesses areat the table on key issues that impact Maine’s ability to grow and prosper.

Connors’ vision and ability to build partnerships have been instrumental in the development of numerous pro-grams and initiatives over the years that have and continue to serve our members in a meaningful way.

MEET THE MAINE STATE CHAMBER TEAM128 State Street, Suite 100, Augusta, Maine 04330

tel (207) 623-4568 w fax (207) 622-7723 w www.mainechamber.org

Collectively our staff represents 200+ years of experience

The Maine State Chamber has been around for approximately 200 years, and represents Maine businesses, both large and small. Our members cover nearly every sector of our economy, and can be found in every geographic region of our state. Collectively, our membersprovided tens of thousands of jobs in Maine and contribute significantly to our state’s overall economic well-being.

Below is our staff list. Please feel free to reach out to us with questions or if we can help you in any way.

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Simon WestFinancialAssistant

[email protected];

ext. 117

In addition to his finance duties, Simoncoordinates the Maine Economic ResearchInstitute, a Chamber affiliate. After completinghis Bachelor’s in finance at the University ofMaine Augusta in December 2019, he hasbegun Thomas College’s MBA program.Simon has worked in banking and finance since2010. Aside from his position with the MaineState Chamber, which he began in 2019, Simonserves as Treasurer for the Pine GroveProgram, a non-profit organization aimed atserving Veterans and First Responders.

26 III Impact III June 2020 For the most current information, visit www.mainechamber.org

Mark EllisMembershipSpecialist

[email protected];

ext. 109

For more than 30 years, Mark helpedbusinesses like Douglas Dynamics, VermontYankee Nuclear Power Corp., and Hewlett-Packard add value to their business endeavorsthrough information technology. In the publicsector, he has held leadership positions instatewide and national political campaigns,political party operations, and legislative com-munications.

Melanie BaillargeonDirector of Communications

[email protected]; ext. 110

Melanie’s responsibilities include oversight and production of allof the Chamber’s publications from concept to completion, includingthe weekly IMPACT newsletter and the Making Maine Work series.She is also involved in event support and management of web andsocial media content, as well as media and public relations.

Scott SamsonFinancialCoordinator

[email protected];

ext. 114

Scott has served as the FinancialCoordinator for the Maine State Chambersince 2010, after working on a contract basissince 2003. In addition to his financial duties,Scott is also responsible for state and federalreporting and management of the Chamber’shuman resources. A graduate of theUniversity of Maine-Augusta with a BA inAccounting, he also received his MBA fromthe Keller Graduate School.

Angela MorinExecutiveAssistant to thePresident

[email protected];

ext. 101

As Executive Assistant to the President,Angela’s duties tend to vary from day to day.Her main focus includes coordination of allscheduling for the President, social mediamarketing, planning for Board of Directorsmeetings and events, management of ourmembership database, and support for ourevent planning team.

MelodyRousseauSponsorship andAdvertising SalesManager

[email protected];

ext. 102

Melody serves as Sponsorship andAdvertising Sales Manager for the MaineState Chamber of Commerce. Among herduties are publication and event programadvertising, event sponsorship and exhibitopportunities, assistance with membershiprenewals, and assistance to FinanceDepartment. She would love to discuss ourmany advertising opportunities with you!

MEET THE MAINE STATE CHAMBER TEAM128 State Street, Suite 100, Augusta, Maine 04330

tel (207) 623-4568 w fax (207) 622-7723 w www.mainechamber.org

Collectively our staff represents 200+ years of experience

Angie ArnoDirector ofPrograms and Events

[email protected];

ext. 104

As an independent marketing consultantand former director of a small chamber, Angiejoined our team in March of 2019 with muchexperience in events and programs manage-ment. Her duties include managing all aspectsof the Maine State Chamber’s events and pro-grams, as well as managing the MaineAlliance of Chamber of Commerce Executivesactivities and semi-annual conferences.Additionally, Angie assists with marketingand social media campaigns.

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June 2020 III Impact III 27For the most current information, visit www.mainechamber.org

BOND ISSUES LEGISLATION

BOND ISSUES CARRIED OVER TOFUTURE SPECIAL SESSION… LD 148, An Act To Authorize a GeneralFund Bond Issue To Recapitalize theSchool Revolving Renovation Fund and ToGive Priority Status to Certain SchoolFacility Upgrades. (Sen. Millett, D-Cumberland) Joint Standing Committee onAppropriations and Financial Affairs. Thefunds provided by the bond issue in Part Aof this bill, in the amount of $50,000,000,will be used to recapitalize the SchoolRevolving Renovation Fund for the pur-pose of providing funds to public schoolsfor renovation and capital repairs. Part Bof this bill gives upgrades of facilitiesrequired to meet prekindergarten facilitystandards and for prekindergarten capacitybuilding Priority 4 status for loans fromthe fund to school administrative units forschool repair and renovation.LD 295, An Act To Authorize a GeneralFund Bond Issue To Increase RuralMaine’s Access to Broadband Internet

Service. (Rep. Berry, D-Bowdoinham)Joint Standing Committee onAppropriations and Financial Affairs. Thefunds provided by this bond issue, in theamount of $100,000,000, will be used forthe provision of broadband Internet ser-vice in unserved and underserved areasthrough ConnectME Authority grants topartnerships between private, municipaland nongovernmental service providers.LD 394, An Act To Authorize a GeneralFund Bond Issue To Provide for Student LoanDebt Relief. (Rep. Hobbs, D-Wells) JointStanding Committee on Innovation,Development, Economic Advancement andCommerce. The funds provided by this bondissue, in the amount of $50,000,000, will beused to provide funds to the FinanceAuthority of Maine for zero-interest studentloans and loan consolidation or refinancinginterest rate reductions for certain Maine res-idents who agree to live and work in Mainefor at least 5 years. The bill creates the MaineStudent Loan Debt Relief Program. Underthe program, zero-interest loans up to$10,000 per year for a maximum of 5 yearsare available to certain Maine residents whostudy at qualified in- state institutions of high-er education and agree to live and work inMaine for at least 5 years following gradua-

tion. Loans bearing an annual interest rate ofthe prime rate of interest plus 2% are avail-able to those who do not live and work in theState upon graduation. The FinanceAuthority of Maine may provide interest ratereduction payments to residents who use theauthority’s existing loan consolidation andrefinancing program. This option is availableto individuals who studied in Maine or out-side of Maine and agree to live and work inMaine for at least 5 years. The bill exemptsfrom Maine income tax any benefits receivedunder the program to the extent included infederal adjusted gross income and prohibitsindividuals who have received benefits underthe program from receiving the Maine edu-cational opportunity tax credit.LD 469, An Act To Authorize a GeneralFund Bond Issue To Provide Funding forUpgrades of Learning Spaces and OtherProjects Funded by the School RevolvingRenovation Fund. (Rep. Farnswoth, D-Portland) Joint Standing Committee onAppropriations and Financial Affairs. Thefunds provided by this bond issue, in theamount of $50,000,000 in fiscal year 2019-20 and $50,000,000 in fiscal year 2020-21,will be used to provide funds to the SchoolRevolving Renovation Fund for the purpose

Continued on Page 28...

DIGEST OF LEGISLATION THIS SESSIONThis Final Summary of the Second Regular Session of the 129th Maine Legislature discusses legislative initiatives that

impact Maine businesses. Elsewhere, we have discussed some of the bills we believe were most significant to the state’s busi-ness community. In the following pages, we summarize the wide variety of legislative proposals that the Maine State Chambertracked this year.

As in past years, we have divided the legislation by principal policy area: Taxation, Health Care, etc. Within each sec-tion, we have included a summary for enacted legislation and for bills that are technically carried over to a future special sesionif the legislature returns this year. Defeated legislation is also listed within each policy theme.

Entries are in numerical order by their Legislative Document (LD) number. This is the number used throughout the ses-sion to refer to a particular bill. Where applicable, the current Public Law (PL), Private and Special Law (P&S), or Resolve(R) number appears in parentheses. Listed at the beginning of the summary of each public law is the name of the bill’s spon-sor and the committee to which the bill was assigned.

The Maine Legislature adjourned sine die Tuesday, March 17, 2020. In total this session, 145 bills were signed into publiclaw by Governor Mills and there were 30 resolves enacted. Pursuant to the Constitution of Maine, Article IV, Part Third, Section16, the general effective date for non-emergency laws passed in the Second Regular Session of the 129th Legislature is Tuesday,June 16, 2020 (90 days following adjournment). Emergency measures are effective when signed by the Governor. In this FinalSummary, the effective date for emergency legislation is provided in brackets at the end of each write-up.

Please keep in mind that the contents of this newsletter are intended for informational use only and should not be relied uponas legal advice in any sense. All laws and regulations must be applied to each individual situation by experienced legal counsel. r

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28 III Impact III June 2020 For the most current information, visit www.mainechamber.org

of providing funds to public schools toupgrade learning spaces in school buildingsand make other necessary repairs.LD 547, An Act To Authorize a GeneralFund Bond Issue To Support MaineAquaculture. (Sen. Chipman, D-Cumberland) EMERGENCY JointStanding Committee on Appropriations andFinancial Affairs. The funds provided bythis bond issue, in the amount of$25,000,000, will be used to provide fundsto the Gulf of Maine Research Institute tostudy and promote Maine aquaculture.LD 602, An Act To Authorize a GeneralFund Bond Issue To Support Research andDevelopment in Maine. (Sen. Dill, D-Penobscot) Joint Standing Committee onAppropriations and Financial Affairs. Thefunds provided by this bond issue, in theamount of $50,000,000, will be used forin-vestment in research, development andcommercialization in the State’s 7 targetedtechnology sectors to be used for infra-structure, equipment and technologyupgrades that enable organizations to gainand hold market share, to increase rev-enues and to expand employment or pre-serve jobs, including in the biotechnicaland biomedical sectors by attracting moreresearch capacity and in the forest productssector by using Maine fiber to reduce car-bon emissions. The funds must be awardedthrough a competitive process to Maine-based public and private entities, leverag-ing other funds in a one-to-one ratio.LD 923, An Act To Authorize a GeneralFund Bond Issue To Upgrade MunicipalCulverts at Stream Crossings. (SpeakerGideon, D-Freeport) Joint StandingCommittee on Appropriations andFinancial Affairs. The funds provided bythis bond issue, in the amount of$5,000,000, will be used for a competitivegrant program that matches local fundingfor the upgrade of municipal culverts atstream crossings in order to enhance andrestore rivers, streams and fish and wildlifehabitats and to allow communities to betterprepare for extreme storms and floods.LD 1836, An Act To Authorize a GeneralFund Bond Issue for Infrastructure,Economic Development, WorkforceDevelopment and Energy and EnvironmentInvestment. (Sen. Breen, D-Cumberland)

Joint Standing Committee on Appropriationsand Financial Affairs. PART A provides abond issue in the amount of $105,000,000.Funds in the amount of $100,000,000 willbe used for reconstruction and rehabilitationof highways and bridges and for facilities orequipment related to ports, harbors, marinetransportation, freight and passenger rail-roads, aviation, transit and bicycle andpedestrian trails, matching an estimated$137,000,000 per year in federal and otherfunds. Funds in the amount of $4,000,000will be used for a competitive grant programthat matches local funding for the upgradeof municipal culverts at stream crossings inorder to improve fish and wildlife habitatsand to allow communities to better preparefor extreme storms and floods. Funds in theamount of $1,000,000 will be used to com-plete the renovation of a wharf and bulkheadat the Gulf of Maine Research Institute inPortland to bring the wharf back into opera-tion for a fishing vessel berthing resource tosupport marine research at sea, for com-mercial fishing access and for continuedlong-term marine job development.

PART B: The funds provided by thisbond issue, in the amount of

$50,000,000, will be used to invest incommunity broadband infrastructure,economic development and job creation.

PART C: The funds provided by thisbond issue, in the amount of $19,000,000,will be used to invest in MaineCommunity College training, in child careservices, in Maine Army National Guardreadiness centers and support facilities andin career and technical education centers.

PART D: The funds provided by thisbond issue, in the amount of $65,000,000,will be used to protect Maine’s environ-ment by investing in land conservation,water access, wildlife habitat, outdoorrecreation opportunities, including huntingand fishing, farmland and working water-fronts and by supporting environmentalclean-up efforts and promotion of renew-able energy projects. Funds provided inthis Part for the Efficiency Maine Trust, inthe amount of $15,000,000, will be usedto purchase solar arrays, high-efficiencyductless heat pumps and high-efficiencymodern wood heating systems for build-ings and property owned by municipalitiesand school administrative units and will

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fund the Municipal Energy Efficiency andRenewable Energy Program under Part E.

PART E: Part E establishes theMunicipal Energy Efficiency andRenewable Energy Program within theEfficiency Maine Trust to support munici-palities and municipally authorized citizencommittees and school administrative unitsacross the State in reducing energy costs,reducing carbon emissions, facilitating thedevelopment of renewable energyresources and creating local jobs related tothe building of renewable energy facilitiesand the installation of energy-efficientequipment. It funds the program with theproceeds of bonds, including bonds issuedpursuant to Part D, any other funds allo-cated by the trust and matching funds fromparticipating municipalities. Part E takeseffect only if the bond issue under Part Dis approved by the voters of the State.

BUDGET AND FINANCE LEGISLATION

BUDGET AND FINANCEENACTED…LD 2126 (PL 616), An Act MakingSupplemental Appropriations and Allocationsfor the Expenditures of State Government,General Fund and Other Funds andChanging Certain Provisions of the LawNecessary to the Proper Operations of StateGovernment for the Fiscal Years Ending June30, 2020 and June 30, 2021. (Rep. Gattine,D-Westbrook) Joint Standing Committee onAppropriations and Financial Affairs.

BUDGET AND FINANCECARRIED OVER TO FUTURESPECIAL SESSION…LD 1947, An Act To Fund CapitalImprovements to Career and TechnicalEducation Centers. (Rep. Fecteau, D-Biddeford) Joint Standing Committee onAppropriations and Financial Affairs. Thisbill authorizes the issuance and use of up to$20,000,000 in Maine GovernmentalFacilities Authority securities for capitalimprovements to career and technical edu-cation centers and regions.

June 2020 III Impact III 29For the most current information, visit www.mainechamber.org

ECONOMIC DEVELOPMENTLEGISLATION

ECONOMIC DEVELOPMENTDEFEATED…LD 814, An Act To Strengthen Maine’sEconomy through Research and Innovationled by the University of Maine System.(Sen. Herbig, D-Waldo) Joint StandingCommittee on Education and CulturalAffairs.

ECONOMIC DEVELOPMENTCARRIED OVER TO FUTURESPECIAL SESSION…LD 859, An Act To Authorize a GeneralFund Bond Issue To Fund Equipment forCareer and Technical Education Centersand Regions. (Rep. Fecteau, D-Biddeford) Joint Standing Committee onEducation and Cultural Affairs. Thefunds provided by this bond issue, in theamount of $40,000,000, will be used toprovide funds to make capital improve-ments to and purchase equipment forcareer and technical education centersand regions for high school students.LD 860, An Act To Establish the MaineCommunity College System No-costTuition Program. (Rep. Brennan, D-Portland) Joint Standing Committee onEducation and Cultural Affairs. This billestablishes the Maine CommunityCollege System No-cost TuitionProgram. Under the program, Maine res-idents who are determined to be eligiblestudents and who are enrolled in an eligi-ble course of study at a college within theMaine Community College System areeligible for a grant to cover the cost oftuition and mandatory fees, less any fed-eral financial aid or other financial assis-tance that the student receives that is notrequired to be repaid. The MaineCommunity College System must includein its biennial budget for presentation tothe Governor and the Legislature the esti-mated full funding for the MaineCommunity College System No-costTuition Program.

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30 III Impact III June 2020 For the most current information, visit www.mainechamber.org

EDUCATION LEGISLATION

EDUCATION ENACTED… LD 359 (PL 556), An Act To Address StudentHunger with a “Breakfast after the Bell”Program. (Sen. Moore, R-Washington) JointStanding Committee on Education andCultural Affairs. This law requires a schooladministrative unit with a public school inwhich at least 50% of students qualified for afree or reduced-price lunch during the pre-ceding school year to operate an alternativebreakfast delivery service that providesbreakfast after the start of the school day forstudents at that public school. It also providesa process for a school administrative unit toopt out of the alternative breakfast deliveryservice. This law requires the Department ofEducation to adopt rules to develop an appli-cation process and to adopt standards toaddress evaluation criteria based on need forfunding assistance for alternative breakfastdelivery services in school administrativeunits. It also requires the department to devel-op a means to track health and academic out-comes of students and schools that participatein alternative breakfast delivery services.LD 2014 (PL 654), An Act To Amend theLaws Governing the Maine State GrantProgram. (Rep. Daughtry, D-Brunswick)Joint Standing Committee on Educationand Cultural Affairs. This law allows anadult learner benefiting from a grant underthe Maine State Grant Program to receiveup to 12 semesters’ worth of grant funding.LD 2072 (R 132), Resolve, RegardingLegislative Review of Portions of Chapter132: Learning Results: Parameters forEssential Instruction, a Major SubstantiveRule of the Department of Education.(Rep. Kornfield, D-Bangor) JointStanding Committee on Education andCultural Affairs. This resolve provides forlegislative review of portions of Chapter132: Learning Results: Parameters forEssential Instruction, a major substantiverule of the Department of Education.

EDUCATION DEFEATED…LD 791, An Act To Provide School Districtswith Full State Funding for Students withHigh-cost Special Education Needs. (Sen.Miramant, D-Knox) Joint StandingCommittee on Education and Cultural Affairs.LD 882, Resolve, To Require the Examination

of the System of Learning Results. (Rep.Sampson, R-Alfred) Joint Standing Committeeon Education and Cultural Affairs.LD 1607, An Act To Create the Departmentof Early Care and Learning. (Sen. Millett, D-Cumberland) Joint Standing Committee onEducation and Cultural Affairs.

EDUCATION CARRIED OVERTO FUTURE SPECIAL SESSION…LD 149, An Act To Authorize a GeneralFund Bond Issue To Provide Student DebtForgiveness To Support WorkforceAttraction and Retention. (Sen. Libby, D-Androscoggin) Joint Standing Committee onInnovation, Development, EconomicAdvancement and Commerce. 1. Requires aGeneral Fund bond obligation in the amountof $250,000,000 for a program adminis-tered by the Finance Authority of Maine toprovide funds for payment of student loandebt for individuals who agree to live andwork in Maine for 5 years and to reimburseemployers that make student loan debt pay-ments on behalf of their employees whoagree to live and work in Maine for 5 years;and 2. Establishes the Maine Student LoanDebt Relief Program and the Maine Student

Loan Debt Relief Fund and requires theFinance Authority of Maine to adopt majorsubstantive rules to implement the programand submit the rules to the Second RegularSession of the 129th LegislatureLD 427, An Act To Require the State ToFund Teacher Retirement. (Rep. Brennan,D-Portland) Joint Standing Committee onEducation and Cultural Affairs. This billchanges the method for funding teacherretirement costs. It repeals those provisionsof law enacted pursuant to Public Law 2013,chapter 368 that require school administra-tive units and private schools to pay a portionof the costs for teacher retirement.LD 502, An Act To Establish the SummerSuccess Program Fund. (Rep. Pierce, D-Falmouth) Joint Standing Committee onEducation and Cultural Affairs. This billestablishes the Summer Success ProgramFund, a dedicated fund to be directed andadministered by the Commissioner ofEducation and held by the Treasurer ofState, to encourage the facilitation of high-quality summer success programs inschool administrative units throughout theState. The bill accomplishes the following:

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June 2020 III Impact III 31For the most current information, visit www.mainechamber.org

1. It provides that money paid into thefund may include General Fund appro-priations, as well as grants, gifts andother money from any unit of federal,state or local government or from anyperson, firm, partnership or corpora-tion for deposit to the fund, moneyreceived from a social impact bond andinterest, dividends and other pecuniarygains. It requires that school adminis-trative units ensure that grants provid-ed from the fund for expanding accessto summer success programs supple-ment and not supplant federal funding.

2. It requires the commissioner to admin-ister the fund within the Department ofEducation and to establish standardsand approval for the allocation and useof fundmoney for summer success pro-grams offered at elementary and sec-ondary schools in the State. It alsoallows the commissioner to include thefollowing in the standards: A. Guidelines similar to the federal

21st Century Community

Learning Centers program toclose the achievement gapbetween high-performing andlow-performing students;

B. Effective models of summer suc-cess programs that involve net-working and partnerships withcommunity-based organizationsthat provide a range of high-qual-ity services to support studentlearning and development; and

C. Implementation of the formativeand summative assessment meth-ods to measure student achieve-ment in order to monitor theprogress of students participatingin summer success programs.

3. It provides that, beginning in fiscalyear 2020-21, the department isrequired to provide grant funding,through a grant application process, tocover 90% of the costs of summer suc-cess programs in school administrativeunits with greater than 50% studentparticipation in the federal free andreduced-price lunch program.

4. It adds the fund to the enhancing stu-dent performance and opportunity pro-visions of the Essential Programs and

Services Funding Act. 5. It requiresthe commissioner to submit a report tothe Joint Standing Committee onEducation and Cultural Affairs byDecember 15, 2019 that outlines theproposed rules to implement the fundby the 2020-2021 school year.

LD 509, An Act To Increase the MinimumGrant Amount under the Maine State GrantProgram. (Rep. Pierce, D-Falmouth) JointStanding Committee on Education andCultural Affairs. This bill provides that theminimum grant amount under the MaineState Grant Program may not be less than$2,500 if sufficient funds are appropriatedfor this purpose, subject to the current grantamount modifications under the program.LD 512, Resolve, To Create the Task ForceTo Study and Plan for the Implementation ofMaine’s Early Childhood Special EducationServices. (Rep. Farnsworth, D-Portland)EMERGENCY Joint Standing Committeeon Education and Cultural Affairs. Thisresolve establishes the Task Force To Studyand Plan for the Implementation of Maine’sEarly Childhood Special Education Servicesto examine the national trends and relevantmodels of governing and delivering earlychildhood special education systems and theshort-term and long-term costs and benefitsto the Department of Education’s proposedplan to restructure the Child DevelopmentServices System and to make recommenda-tions for an early childhood special educa-tion services program plan.LD 647, An Act To Attract, Educate andRetain New State Residents To Strengthenthe Workforce. (Rep. Cloutier, D-Lewiston) Joint Standing Committee onEducation and Cultural Affairs. This billcreates various programs to provide edu-cation, services and training for theState’s workforce immigrant populationsin the following ways: 1. It establishes theWelcome Center Initiative to operate wel-come centers in adult education programsto provide education, services and trainingfor foreign-trained workers in municipali-ties or regions of the State that have immi-grant populations or that have industriesthat are experiencing a shortage of trainedworkers, patterned after the New MainersResource Center operated by the City ofPortland adult education program througha pilot program created by the 126thLegislature. The bill provides funds forgrants for proposed welcome centers.

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32 III Impact III June 2020 For the most current information, visit www.mainechamber.org

GENERAL FUND 2019-20 2020-21All Other $150,000 $150,000GEN FND TOTAL $150,000 $150,000

GENERAL FUND 2019-20 2020-21All Other $400,000 $400,000GEN FND TOTAL $400,000 $400,000

EDUCATION, DEPARTMENT OFDEPT TOTALS 2019-20 2020-21GEN FUND $1,500,000 $1,500,000DEPT TOTAL - ALL FUNDS

$1,500,000 $1,500,000

2. It directs the Department ofEducation’s office of adult educationand family literacy to: A. Administer avocation-specific English languageacquisition and workforce training pro-gram for immigrants in the State andestablish a statewide competitive grantprocess to carry out the purposes of theprogram; B. Establish and implement alocal community planning support pro-gram to provide a planning process for

communities to provide English lan-guage acquisition and training in voca-tional skills, identify employers orareas that would benefit from immi-grant residency or employment andcultivate community support to inte-grate immigrants into the communitiesand local workforce. The office mustestablish a grant process to carry outthe purposes of the program; and C.Develop and implement a grantprocess to award grants to adult educa-tion programs to increase English lan-guage acquisition instruction. The billprovides funding for the vocation-spe-cific English language acquisition andworkforce training program, the localcommunity planning support programand grants to increase English languageacquisition instruction; and,

3. It directs the Department of Educationto establish a welcome center underthe Welcome Center Initiative withinthe City of Lewiston’s adult educationprogram to attract, educate and retainin employment foreign-trained work-ers, patterned after the New MainersResource Center in Portland, and pro-vides funding for that purpose. It also

provides ongoing funding for the NewMainers Resource Center in Portland.

LD 703, An Act To Help Maine StudentsSucceed. (Sen. Millett, D-Cumberland)Joint Standing Committee on Education andCultural Affairs. This bill is a concept draft.LD 712, An Act To Fully Fund After-school and Preschool Programs in theSchool Funding Formula, Increase theEconomically Disadvantaged StudentFactor in the School Funding Formula andIncrease the School Construction DebtService Limit. (Rep. Brennan, D-Portland)Joint Standing Committee on Educationand Cultural Affairs. This bill amends theschool funding formula to fund after-school programs based on the state sharepercentage and to fund public preschoolprograms at 50% of the cost of the pro-grams, or if a school administrative unit’sstate share percentage is greater than 50%,to fund the unit’s public preschool pro-gram at the state share percentage. The billalso increases the additional weight foreconomically disadvantaged students from0.15 to 1.5. The bill also raises the maxi-mum debt service limit for school con-

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June 2020 III Impact III 33For the most current information, visit www.mainechamber.org

struction projects from $126,000,000 to$150,000,000 beginning in 2020.LD 772, An Act To Encourage ContinuedLearning. (Rep. Daughtry, D-Brunswick)Joint Standing Committee on Innovation,Development, Economic Advancementand Commerce. This bill is a conceptdraft pursuant to Joint Rule 208. This billproposes to enact measures designed toencourage continued learning by Maineresidents, including, but not limited to,creating incentives and implementingstrategies to enable so-called strandedlearners who have some college credit butno degree to complete degree and certifi-cate programs and graduate from college.LD 1584, An Act To Attract, Build andRetain an Early Childhood EducationWorkforce through Increased Training,Education and Career Pathways. (Rep.Fecteau, D-Biddeford) Joint StandingCommittee on Education and CulturalAffairs. This bill requires the Commissionerof Health and Human Services, theCommissioner of Education and theCommissioner of Labor jointly to developand implement an early childhood educatorsworkforce support program to recruit andretain early childhood educators workingwith children up to 5 years of age.Components of the program include:1. Expansion of educational programs at

career and technical education centersand financial support of those programs;

2. Comprehensive scholarships for personstaking classes toward the attainment of anearly childhood education credential or anassociate or bachelor’s degree that allowthe persons to graduate without studentdebt as long as the persons agree to workfor a year with an approved employer;

3. An increased number of apprentice-ships; and,

4. Salary supplements awarded to indi-viduals who provide child care orwho are early childhood educators.The amount of the supplement isbased on the level of education andexperience of the individual andother factors.This bill also provides funding to

carry out the program.LD 1606, An Act To Increase Funding forCareer and Technical Education Programs.

(Sen. Dill, D-Penobscot) Joint StandingCommittee on Education and CulturalAffairs. This bill provides an additional$1,500,000 per year for the cost of careerand technical education pursuant to the MaineRevised Statutes, Title 20-A, section 15688-A, subsection 1. This bill also removes theso-called hold harmless provision that limitsthe amount of any decrease or increase in thetotal allocation for a career and technical edu-cation center or career and technical educa-tion region, effective January 1, 2020.LD 1760, An Act To Support Children’sHealthy Development and SchoolReadiness. (Senate President Jackson, D-Aroostook) Joint Standing Committee onHealth and Human Services. This bill cre-ates the First 4 ME Early Care andEducation Program under the Departmentof Health and Human Services to providecomprehensive, high-quality early childcare and education services for at-risk chil-dren under 6 years of age who have notentered kindergarten and the children’sparents by funding projects that integratecomprehensive resources and serviceswith traditional center-based and familychild care settings. The projects are spon-sored by coalitions of stakeholders,providers and other community memberswithin the communities that the projectsserve. Each project is led and coordinatedby a community contractor who staffs theproject’s operations and contracts withcommunity providers to provide healthcare, education or parenting services,which may include services provided in alicensed child care center or by a licensedfamily child care provider, in a home visitor by an individual providing services to afamily member within the individual’s orfamily member’s residence. The commu-nity contractor employs or contracts withcommunity coaches who train and providesupport to community providers. This billalso directs the department to request pro-posals for up to 10 pilot projects to imple-ment the program and to report to theLegislature on the progress of the pilotprojects toward the objectives, goals andintended outcomes of the projects in 2024.LD 1916, An Act To Increase High SchoolGraduation Rates for Students ExperiencingHomelessness or in Foster Care. (Sen. Libby,D-Lewiston) Joint Standing Committee onEducation and Cultural Affairs. This bill doesthe following:

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34 III Impact III June 2020 For the most current information, visit www.mainechamber.org

1. It amends the process for applying fora Department of Education diploma byrequiring that the responsible schoolapply on behalf of a student who hasexperienced one or more educationdisruptions on request. The student’sparent or guardian or a student who isover 18 years of age may still applydirectly to the Department ofEducation, and the school must assistthe student in the application process.

2. It provides that the Commissioner ofEducation must award a Department ofEducation diploma to a student who hasexperienced homelessness or has been infoster care who meets certain criteria andmay not require that student to provideadditional information or be interviewed.

3. It provides that a secondary schoolmust award a diploma to a studentwho has experienced homelessnessor foster care placement if the stu-dent meets specified criteria.

4. It provides that the responsible school fora student whose education disruption isdue to multiple transfers or homelessnessor foster care placement must compile forthe student partial and full credits receivedby the student to date, provide priorityenrollment in classes in which the studenthas received partial credit and immediate-ly enroll the student in classes or programsto close gaps between the compilation ofcredits by the student and the credits typi-cally earned by the student’s peers.

5. It requires the responsible school to pro-vide an adult mentor to students whoexperience education disruption due tohomelessness or foster care placementto facilitate transition into the school.

6. It requires that if the responsible schooldetermines that a student who experi-ences education disruption will not beable to graduate by the end of the stu-dent’s 4th year of secondary school,the responsible school must provide thestudent information regarding aDepartment of Education diploma andapply on behalf of the student or assistthe student in making the application.

LD 1999, An Act To Amend the MaineEducation Savings Program. (Sen. Herbig,D-Waldo) Joint Standing Committee onEducation and Cultural Affairs. This bill

amends the Maine Education SavingsProgram by making permissive rather thanmandatory the investment of fund dollarsby the Finance Authority of Maine in state-based financial institutions.LD 2022, An Act To Provide Funding forCapital Improvements and Equipment forCareer and Technical Education Centers andRegions. (Sen. Herbig, D-Waldo) JointStanding Committee on Education andCultural Affairs. This bill authorizes theCommissioner of Education to expend anddisburse funds to career and technical educa-tion centers and career and technical educa-tion regions to make capital improvementsand to purchase equipment that has a usefullife of at least 5 years and provides a one-timeGeneral Fund appropriation of $4,000,000 infiscal year 2020-21 for that purpose.

ENERGY, UTILITIES, ANDTECHNOLOGY LEGISLATION

ENERGY, UTILITIES, ANDTECHNOLOGY CARRIED OVERTO FUTURE SPECIAL SESSION…LD 1646, An Act To Restore LocalOwnership and Control of Maine’s PowerDelivery Systems. (Rep. Berry, D-Bowdoinham) Joint Standing Committee onEnergy, Utilities and Technology. This billcreates the Maine Power Delivery Authorityas a consumer-owned utility to acquire andoperate all transmission and distribution sys-tems in the State currently operated by theinvestor-owned transmission and distribu-tion utilities known as Central Maine PowerCompany and Emera Maine.LD 1748, An Act To Allow for theEstablishment of Commercial PropertyAssessed Clean Energy Programs. (Sen.Sanborn, D-Cumberland) Joint StandingCommittee on Energy, Utilities andTechnology. This bill allows the EfficiencyMaine Trust or a municipality to establish

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June 2020 III Impact III 35For the most current information, visit www.mainechamber.org

a commercial property assessed cleanenergy program to finance energy savingsimprovements on qualifying property.

ENVIRONMENTAL LEGISLATION

ENVIRONMENTAL ENACTED…LD 401 (PL Ch. 601), An Act ToPreserve State Landfill Capacity andPromote Recycling. (Rep. Tipping, D-Orono) Joint Standing Committee onEnvironment and Natural Resources. Thebill adds definitions to the State’s solidwaste management laws for the terms“recycling facility” and “waste generatedwithin the State” and amends certainother related definitions and provisionswithin the solid waste management lawsconsistent with those new definitions. Italso provides that at least 50% of thewaste characterized as recycled by a solid

waste processing facility that generatesresidue requiring disposal must have beenreused or recycled through methods otherthan landfilling but includes specificalternative provisions applicable to cer-tain solid waste processing facilities thatprocess exclusively construction anddemolition debris.

ENVIRONMENTAL DEFEATED…LD 327, An Act To Revise Maine’sEnvironmental Laws. (Rep. Tucker, D-Brunswick) Joint Standing Committee onEnvironment and Natural Resources.

ENVIRONMENTAL CARRIED OVERTO FUTURE SPECIAL SESSION…LD 16, An Act To Authorize a GeneralFund Bond Issue To Invest inInfrastructure To Address Sea Level Rise.(Rep. Brennan, D-Brennan) JointStanding Committee on Appropriationsand Financial Affairs. The funds provid-ed by this bond issue, in the amount of$50,000,000, will be used to improvewaterfront and coastal infrastructure inmunicipalities to address sea level rise.LD 102, An Act To Improve theManufacturing of Plastic Bottles and

Bottle Caps. (Rep. Doudera, D-Camden)Joint Standing Committee on Environmentand Natural Resources. This bill prohibits,beginning January 1, 2020, a manufactur-er from selling, offering for sale or dis-tributing for sale in the State a single-useplastic beverage container unless the con-tainer is composed of at least 15% post-consumer recycled plastic. BeginningJanuary 1, 2022, this threshold for the per-centage of postconsumer recycled plasticin single-use plastic beverage containersincreases to 20% and, beginning January1, 2024, the threshold increases to 25%.

The bill also prohibits, beginningJanuary 1, 2020, a manufacturer fromselling, offering for sale or distributingfor sale in the State a single-use plasticbeverage container with a plastic beveragecap unless the cap is composed of thesame plastic as the beverage container andthe cap is tethered to the container in amanner that prevents the separation of thecap from the container when the cap isremoved or the cap includes an openingfrom which the beverage can be con-sumed while the cap remains screwed

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36 III Impact III June 2020 For the most current information, visit www.mainechamber.org

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June 2020 III Impact III 37For the most current information, visit www.mainechamber.org

onto or otherwise affixed to the container.LD 1224, An Act To Authorize GeneralFund Bond Issues To Address Changes inSea Level, Geospatial Data Acquisitionby Communities and the Increase inOcean Acidity. (Rep. Devin, D-Newcastle) Joint Standing Committee onAppropriations and Financial Affairs.This bill authorizes the issuance of bonds.1. Part A of this bill authorizes the issuance

of bonds, in the amount of $5,000,000,to be used to support improvements tosea level prediction models by provid-ing more detailed mapping of coastalzones and monitoring sea level changesin order to mitigate the impact of andhelp prepare for rising sea levels.

2. Part B of this bill authorizes the issuanceof bonds, in the amount of $6,000,000,to be used to provide partnership fundsand matching grants for geospatial dataacquisition to communities that are cre-ating or improving digital parcel mapsto accurately identify existing bound-aries and land use, identify potentialcommunity development areas and pro-tect environmental resources.

3. Part C of this bill authorizes theissuance of bonds, in the amount of$3,000,000, to be used to collect data,monitor waterways and perform testsrelated to the known increasing oceanacidity along the Maine coast and itsimpact on natural wildlife and com-mercially important species in Mainewaters, such as lobsters and clams.

LD 2104, An Act To Support and Increasethe Recycling of Packaging. (Rep. Tucker,D-Brunswick) Joint Standing Committee onEnvironment and Natural Resources. Thisbill, which is reported out by the JointStanding Committee on Environment andNatural Resources pursuant to Resolve2019, chapter 42, section 2, establishes astewardship program for packaging to beoperated by a stewardship organization con-tracted by the Department ofEnvironmental Protection following a com-petitive bidding process. Under that pro-gram, producers of packaging pay into afund based on the amount by weight ofpackaging material they sell, offer for saleor distribute for sale in the State. Producerscan wholly or partially offset this payment

obligation by implementing independentprograms to recycle packaging of the samematerial type for which they have a pay-ment obligation and can further reduce theirpayment obligation by reducing the amountof packaging they sell, offer for sale or dis-tribute for sale in the State, by redesigningthat packaging to make it more valuable asa recyclable material or by meeting otherprogram incentive requirements.

Producer payments received by thestewardship organization are used to reim-burse eligible municipalities for certainincurred recycling and waste managementcosts. To be eligible for such reimburse-ments, a municipality must share with thestewardship organization certain dataregarding its incurred recycling and wastemanagement costs. Recycling-related reim-bursements to municipalities will be basedon the median recycling costs incurred bysimilarly situated municipalities, while dis-posal-related reimbursements will be basedon per capita disposal costs. The steward-ship organization is authorized to use pro-ducer payments remaining after all reim-bursements are paid to cover operationalcosts for the program, department fees,investments by the organization in educa-tion and infrastructure aimed at improvingrecycling outcomes in the State and fundingfor the Maine Solid Waste Diversion GrantProgram established under the MaineRevised Statutes, Title 38, section 2201-B.

The committee has not taken a posi-tion on the substance of the bill and byreporting this bill out the committee is notsuggesting and does not intend to suggestthat it agrees or disagrees with any aspectof this bill. The committee is reporting thebill out for the sole purpose of obtaining aprinted bill that can be referred to the com-mittee for a public hearing and subsequentcommittee action in the normal course.LD 2112, An Act To Limit the Use ofHydrofluorocarbons To Fight ClimateChange. (Rep. Tucker, D-Brunswick)Joint Standing Committee on Environmentand Natural Resources. This bill prohibitsthe selling, leasing, renting, installing, useor entering into commerce of any productor equipment that uses or will use a sub-stance that is a hydrofluorocarbon withhigh global warming potential intended forany air conditioning, refrigeration, foam oraerosol propellant end use as determinedby the Department of EnvironmentalProtection in rules. It directs the depart-

Legislative Digest...(Continued from Page 35...)

ment to adopt rules to implement the pro-hibition and specifies the substances andend uses that are to be addressed in therules. In adopting the initial rules, thedepartment must regulate each substanceand end use as specifically provided for inthe bill and may not regulate any substanceor end use not addressed in the bill. In thefuture, the department may adopt rulesadding or removing substances from thelist of prohibited substances or adding orremoving end uses.

HEALTH CARE LEGISLATION

HEALTH CARE ENACTED… LD 1975 (PL 605), An Act To FacilitateDental Treatment for Children. (Sen.Sanborn, D-Cumberland) Joint StandingCommittee on Health Coverage,Insurance and Financial Services. Thisbill prohibits a health insurance carrierfrom imposing a waiting period for anydental or oral health service or treatment,

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health visits without the applicationof any deductible.

LD 2096 (PL 666), An Act To Save Lives byCapping the Out-of-pocket Cost of CertainMedications. (Speaker Gideon, D-Freeport)EMERGENCY Joint Standing Committeeon Health Coverage, Insurance and FinancialServices. This law provides that a healthinsurance carrier that provides coverage forprescription insulin drugs may not impose acost-sharing requirement on an enrollee thatresults in out-of-pocket costs to the enrollee inexcess of $35 per prescription for a 30-daysupply of insulin. The requirements apply toall health insurance policies issued or renewedon or after January 1, 2021.

The second half of the law authorizes apharmacist to dispense emergency refills ofinsulin and associated insulin-related supplies.The amendment requires that the insulin dis-pensed be in a quantity that is the lesser of a30-day supply and the smallest available pack-age. The amendment also requires the MaineBoard of Pharmacy to adopt rules to establishadequate training requirements and protocolsfor dispensing insulin. [3/17/2020]LD 2105 (PL 668), An Act To ProtectConsumers from Surprise Emergency MedicalBills. (Speaker Gideon, D-Freeprt) Joint

38 III Impact III June 2020 For the most current information, visit www.mainechamber.org

except for orthodontic treatment, for anenrollee under 19 years of age.LD 2007 (PL 653), An Act To Enact theMade for Maine Health Coverage Act andImprove Health Choices in Maine. (SpeakerGideon, D-Freeport) Joint StandingCommittee on Health Coverage, Insuranceand Financial Services. This bill:1. Establishes the Made for Maine

Health Coverage Act;2. Establishes the Maine Health

Insurance Marketplace Trust Fund;3. Authorizes the State to enter into

state-federal health coverage partner-ships that support the availability ofaffordable health coverage;

4. Establishes a pooled market for indi-vidual health plans and small grouphealth plans and changes reinsuranceto be retrospective and applied to thepooled market; and

5. Creates clear choice design for costsharing and requires coverage of cer-tain primary care and behavioral

Standing Committee on Health Coverage,Insurance and Financial Services. This billamends the law providing consumer protec-tion for surprise medical bills to include sur-prise bills for emergency services. In theevent of a dispute with respect to a surprisemedical bill, the bill directs the Superintendentof Insurance to develop an independent dis-pute resolution process to determine a reason-able payment for health care services.

HEALTH CARE DEFEATED…LD 51, An Act To Implement theRecommendations of the Task Force onHealth Care Coverage for All of Maine.(Sen. Sanborn, D-Cumberland) JointStanding Committee on Health Coverage,Insurance and Financial Services.LD 1617, An Act To Create a Single-payer Health Care Program in Maine.(Rep. Sylvester, D-Portland) JointStanding Committee on Health Coverage,Insurance and Financial Services.LD 2095, An Act To Require AppropriateCoverage of and Cost-sharing forGeneric Drugs and Biosimilars.(President Jackson, D-Aroostook) Joint

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Maine Department of Economic & Community DevelopmentWorking to make Maine a better place to live, work and do business.

Office of Business Development Office of Community Development Office of InnovationOffice of Tourism Maine Business Answers Maine Film OfficeMaine International Trade Center Maine Technology Institute Maine Made Products Program

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June 2020 III Impact III 39For the most current information, visit www.mainechamber.org

Standing Committee on Health Coverage,Insurance and Financial Services.

HEALTH CARE CARRIED OVERTO FUTURE SPECIAL SESSION…LD 1085, An Act To Ensure That MaineResidents Have Adequate and AffordableAccess to Health Care. (Sen. Sanborn, D-Cumberland) Joint Standing Committee onHealth Coverage, Insurance and FinancialServices. A concept draft, this bill proposesto ensure that consumer protections in healthinsurance are maintained under state law.LD 1611, An Act To Support Universal HealthCare. (Rep. Brooks, D-Lewiston) JointStanding Committee on Health Coverage,Insurance and Financial Services. This billestablishes the Maine Health Plan to provideuniversal health care coverage to all residentsof this State. The bill is modeled on proposedlegislation considered in Minnesota.LD 2106, An Act Regarding PriorAuthorizations for Prescription Drugs.(Sen. Gratwick, D-Penobscot) Joint

Standing Committee on Health Coverage,Insurance and Financial Services. Thisbill makes the following changes.1. It adds a definition of “prior authoriza-

tion” and clarifies the definitions of“medically necessary health care” and“participating provider” used in theMaine Insurance Code, chapter 56-A.

2. It sets forth additional requirementsfor carriers to facilitate the process-ing of prior authorization requestsfor prescription drugs by providers.

LD 2110, An Act To Lower Health CareCosts. (President Jackson, D-Aroostook)Joint Standing Committee on HealthCoverage, Insurance and FinancialServices. This bill establishes the MaineCommission on Affordable Health Care tomonitor health care spending growth inthe State and also set health care qualitybenchmarks. The bill also requires thecommission to establish health care spend-ing targets for public payors, includingseparate targets for prescription drugs.

JUDICIARY LEGISLATION

JUDICIARY ENACTED… LD 1294 (R 113), Resolve, Directing theMaine Human Rights Commission ToImplement a Pilot Program To Investigate andReport on Incidents of Harassment Due toHousing Status, Lack of Employment andOther Issues. (Rep. Talbot Ross, D-Portland)Joint Standing Committee on Judiciary. Thisresolve directs the Maine Human RightsCommission to create a 2-year pilot program toreceive, review and investigate incidents andcomplaints of harassment due to a person’s lackof employment or housing status and otherreports of interference with a person’s access topublic accommodations. In carrying out thepilot program, the commission must investigateand respond to incidents and complaints ofharassment as set out in the Maine RevisedStatutes, Title 5, sections 4611 and 4612. Thecommission is authorized to use any of its pow-ers under Title 5, section 4566 to carry out thepilot program and may limit its scope. Thecommission is directed to produce an interimreport for submission to the Joint StandingCommittee on Judiciary by September 15,2021 and a final report to the joint standingcommittee of the Legislature having jurisdic-tion over judiciary matters by September 15,2022. The reports are authorized to containrecommendations on changes to the programor for its continuation as well as proposed leg-islation to carry out any recommendations.

JUDICIARY CARRIED OVERTO FUTURE SPECIAL SESSION…LD 1703, An Act To Improve Consistencywithin the Maine Human Rights Act. (Rep.Bailey, D-Saco, for the Maine Human RightsCommission) Joint Standing Committee onJudiciary. The purpose of this bill is toaddress inconsistencies in the protections pro-vided in different areas of jurisdiction underthe Maine Human Rights Act. The bill pro-vides more inclusive protection by:1. Including adult family members

dependent for care in the definitionof “familial status;”

2. Including familial status as a protect-ed class in employment;

3. Including age as a protected class inpublic accommodations;

4. Providing that public entities cannotContinued on Page 40...

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40 III Impact III June 2020 For the most current information, visit www.mainechamber.org

discriminate on the basis of protectedclass; and,

5. Clarifying the scope of the MaineHuman Rights Act application ineducation.The bill also clarifies the protections

provided to pregnant persons in employ-ment and that the sexual orientation pro-visions already in the Maine HumanRights Act extend to gender identity.

LABOR LEGISLATION

LABOR DEFEATED… LD 2015, An Act To Provide for Leavefrom Work for Victims of DomesticViolence, Sexual Assault or Stalking. (Rep.Daughtry, D-Brunswick) Joint StandingCommittee on Labor and Housing.

LABOR CARRIED OVER TOFUTURE SPECIAL SESSION…LD 402, An Act To Restore OvertimeProtections for Maine Workers. (Rep.Tipping, D-Orono) Joint StandingCommittee on Labor and Housing. Thisbill annually raises the minimum salarythat an employee who works in an execu-tive, administrative or professional capac-ity must earn in order for that employee tobe exempt from the laws governing theminimum wage and overtime pay until it is$55,224 on January 1, 2022. The bill pro-vides for an annual adjustment, beginningJanuary 1, 2023, based on the percentageannual increase in certain earnings as pub-lished by the United States Department ofLabor, Bureau of Labor Statistics.LD 507, An Act To Amend the LawsGoverning Employer Recovery ofOvercompensation Paid to an Employee.(Rep. Doore, D-Augusta) Joint StandingCommittee on Labor and Housing. Thisbill amends the definition of “overcompen-sation” by an employer to include compen-sation in the form of paid leave. It changesthe maximum amount an employer canwithhold from an employee’s pay to recov-er overcompensation from 10% to 5%. It

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June 2020 III Impact III 41For the most current information, visit www.mainechamber.org

prohibits an employer from recoveringmore than the amount of overcompensationpaid to an employee in the 3 years preced-ing the discovery of the overcompensation.The bill also specifies that the section oflaw regarding overcompensation byemployers that includes these provisionsdoes not limit or affect an employee’s gen-eral civil remedies against an employer.LD 857, An Act To IncreaseAccountability for Wage Violations. (Rep.Collings, D-Portland) Joint StandingCommittee on Labor and Housing. Thisbill amends the law regarding employ-ment practices by increasing the fine for aviolation of certain state wage and benefitslaws to $500 for the first violation and$2,500 for each subsequent violation andby providing a private right of action fora person aggrieved of such a violation. Itamends the law regarding employees’remedies to provide that in a judgment foran employee an additional amount of 3times the unpaid wages must be awardedthe employee. It also provides ongoingfunds for 10 labor and safety inspectorpositions within the Department of Labor,Bureau of Labor Standards, wage andhour division beginning October 1, 2019.LD 1051, An Act To Create the MaineFamily First Employer Program. (Sen.Herbig, D-Waldo) Joint StandingCommittee on Labor and Housing. Thisbill creates the Maine Family FirstEmployer Program under the Departmentof Labor to award employers that createfamily-friendly workplaces by providing,for all full-time employees, advancementand leadership opportunities; the same payrates for similar work; stipends or assis-tance for child care; paid leave for the birthor adoption of a child and medical care foremployees or family members of employ-ees; flexible work accommodations forother family obligations; and health insur-ance and retirement plan options. Theawards are presented by the Governor andcome with a logo that a designated employ-er may use for promotional purposes.LD 1410, An Act To Create Paid Familyand Medical Leave Benefits. (SpeakerGideon, D-Freeport) Joint StandingCommittee on Labor and Housing. Thisbill establishes a paid family and medical

leave benefits program administered bythe Department of Labor. The programprovides up to 12 weeks of family leaveand up to 20 weeks of medical leave to eli-gible covered individuals. No more than20 weeks of family leave and medicalleave in the aggregate may be taken in a12-month period. An individual is eligiblefor leave under the program after working26 weeks or more for any employer in the12 months prior to submitting an applica-tion or if the individual is self-employedand has elected to be part of the program.

The maximum weekly benefitamount is capped at 100% of the stateaverage weekly wage. The weekly bene-fit amount is 90% of the portion of thecovered individual’s average weeklywage that is equal to or less than 50% ofthe state average weekly wage and 67%of the portion of the covered individual’saverage weekly wage that is more than50% of the state average weekly wage.

Covered individuals are required tofile claims for benefits in accordance withrules adopted by the department and toprovide certification that they qualify forfamily leave or medical leave.

This bill establishes the Family andMedical Leave Insurance Fund to supportthe program. The funds for administrativecosts and payment of benefits will comefrom payroll contributions by employees.

The bill requires payroll contributionsto begin January 1, 2021, and benefits willbe paid out beginning January 1, 2022.LD 1529, An Act ConcerningNondisclosure Agreements in Employment.(Rep. Harnett, D-Gardiner) Joint StandingCommittee on Labor and Housing. Thisbill prohibits employers from requiringagreements that prevent an employee orprospective employee from disclosing ordiscussing discrimination, includingharassment, occurring between employeesor between an employer and an employee.

The bill prohibits settlement agree-ments, unless requested by the employee,prospective employee or former employ-ee, from including a provision that pre-vents the disclosure of factual informationrelating to a claim of discrimination,including harassment. Agreements maynot explicitly or implicitly limit an indi-vidual’s ability to provide testimony orevidence, file claims or make reports toany federal or state agency that enforcesemployment or discrimination laws,

including, but not limited to, the MaineHuman Rights Commission and theDepartment of Labor.

An employee, prospective employeeor former employee is not liable for dam-ages for breaching a prohibited nondisclo-sure agreement or a settlement agreement.LD 1639, An Act To RequireComprehensive Responsible ContractingPractices for Public ConstructionProjects. (President Jackson, D-Aroostook) Joint Standing Committee onLabor and Housing. Part A, for the pur-pose of ensuring that the work on publicconstruction contracts is performed byresponsible, qualified contractors thatmaintain the capacity, expertise, person-nel and other qualifications and resourcesnecessary to successfully perform publiccontracts in a timely, reliable and cost-effective manner, establishes responsiblecontractor requirements for publiclyfunded construction projects that receivestate funds. The Part outlines a responsi-ble contractor certification process to beadministered by the Department ofAdministrative and Financial Services,

Continued on Page 43...

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42 III Impact III June 2020 For the most current information, visit www.mainechamber.org

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June 2020 III Impact III 43For the most current information, visit www.mainechamber.org

Bureau of General Services.Part A also clarifies that, for the pur-

pose of the law requiring fair minimumrate of wages and benefits on publicworks contracts, “public works” includesany construction projects funded all or inpart with state funds. Part A also amendsthe method of determining the prevailingwage and benefits rate paid in the con-struction industry to require theDepartment of Labor, Bureau of LaborStandards to ascertain the applicable wageand benefits rates established in collectivebargaining agreements in private con-struction and includes in benefits wagespaid to apprentices in apprenticeship pro-grams registered with the department.

Part B requires the Executive Directorof the Workers’ Compensation Board or theexecutive director’s designee to immediatelyissue a stop-work order to an employer whofails to procure workers’ compensationinsurance coverage. It requires the executivedirector or the executive director’s designeeto issue a stop-work order to an employer ifthe executive director or the executive direc-tor’s designee finds after a hearing that theemployer knowingly misrepresentedemployees as independent contractors orprovided false, incomplete or misleadinginformation to an insurance company on thenumbers of employees the employer has forthe purpose of paying a lower payment.

Part C encourages the State to use pro-ject labor agreements for large-scale state-funded construction projects of $10,000,000or more. A project labor agreement is a pre-hire collective bargaining agreement withone or more labor unions that establishes theterms and conditions of employment for aspecific construction project.

Part D requires an employer with apublic works contract with the State of$50,000 or more to provide to all employ-ees who will be on the construction worksite a safety training program that uses acurriculum approved by the United StatesDepartment of Labor, OccupationalSafety and Health Administration and thatis at least 10 hours in duration. Flaggers,security workers and certain otheremployees not considered to be on thework site are exempt from this require-ment. A contractor that violates this safe-

ty training program requirement may beassessed a fine of up to $2,500 and anadditional fine of $100 per employee foreach day of noncompliance.

Part E provides that for public worksconstruction contracts that involve fundingfrom the Federal Government the prevail-ing wage requirements in state law applyunless the prevailing wage requirementsthat would otherwise apply under the feder-al Davis-Bacon Act would result in highertotal wages under the contract. An excep-tion is provided for funds received underthe United States Housing Act of 1937 ifthe application of a state prevailing wage isexpressly preempted by federal law.LD 1693, An Act To EnhanceEnforcement of Employment Laws.(President Jackson, D-Aroostook) JointStanding Committee on Labor andHousing. This bill authorizes private per-sons, acting in the public interest, toenforce the laws governing employmentpractices and prohibiting unfair discrimi-nation in the workplace. Under this bill:1. Private persons or whistleblowers,

acting as relators, may bring publicenforcement actions of employmentlaws on behalf of the State;

2. Civic organizations may assistaggrieved persons in reporting viola-tions of employment laws; and

3. Persons who are injured by viola-tions of employment laws are pro-tected from retaliation.

LD 1965, An Act To Set a MinimumWage for School Support Staff. (Rep.Collings, D-Portland) Joint StandingCommittee on Labor and Housing. Thisbill establishes a minimum wage of$16.00 per hour for school support staff.LD 2087, An Act Relating to Fair Chancein Employment. (Rep. Talbot Ross, D-Portland) EMERGENCY Joint StandingCommittee on Labor and Housing. Thisbill prohibits an employer from requestingcriminal history record information on aninitial employee application form, subjectto certain exceptions. An employer mayinquire about a prospective employee’scriminal history record information dur-ing an interview or once the prospectiveemployee has been determined otherwisequalified for the position. The bill pro-hibits an employer from stating on an ini-tial employee application form or adver-tisement or otherwise asserting that a per-son with a criminal history may not apply

or will not be considered for a position,subject to certain exceptions. The bill pro-vides that if an employer inquires about aprospective employee’s criminal historyrecord information, the prospectiveemployee, if still eligible for the positionunder applicable federal or state law, mustbe afforded an opportunity to explain theinformation and the circumstances regard-ing any convictions, including post-con-viction rehabilitation.

TAXATION LEGISLATION

TAXATION ENACTED…LD 2008 (PL 607), An Act MakingTechnical Changes to the Maine Tax Laws.(Rep. Tipping, D-Orono) Joint StandingCommittee on Taxation. The bill makestechnical changes to Maines tax laws. Thebill among other things clarifies that infor-mation regarding the tax credit for majorfood processing and manufacturing provid-ed to OPEGA is considered exempt from

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44 III Impact III June 2020 For the most current information, visit www.mainechamber.org

confidentialy statutes. It also delays the StateTax Assessor’s reporting requirement forthe Maine Shipbuilding Credit and the taxcredit for major food processing and manu-facturing to December 31st of each year.

TAXATION DEFEATED…LD 731, An Act to Amend the Maine TaxLaws. (Rep.Tipping, D-Orono) JointStanding Committee on Taxation.LD 903, An Act to Improve CorporateTax Fairness by Amending the RatesImposed on Corporate Income. (Rep.Cuddy, D-Winterport) Joint StandingCommittee on Taxation.LD 1898, An Act Regarding PropertyTaxes on Certain Energy GenerationProjects. (Sen. Sanborn, D-Cumberland)Joint Standing Committee on Taxation.

TAXATION CARRIED OVERTO FUTURE SPECIAL SESSION…LD 70, An Act to Support the TradesThrough a Tax Credit for Apprenticeship.(Sen. Herbig, D-Waldo) Joint StandingCommittee on Taxation. The bill wouldprovide an employer,who employs anapprentice, with a tax credit of up to$2,500 or a partial tax credit dependingon how long the apprentice is employed.It also would provide for a partial creditif the appretice is employed for fewerthan 2,000 hours during a calendar year.LD 71, An Act to Reinstate the IncomeTax Deduction for Contributions toCollege Savings Accounta. (Sen. Guerin,R-Penobscot) Joint Standing Committeeon Taxation. The bill would reinstate theincome tax deduction for certain contribu-tions to qualified tuition programs underSection 529 of the Internal Revenue Codeup to $250 per beneficiary.LD 73, An Act to Provide an Income TaxCredit for Certain Student LoanRepayments. (Sen. Pouliot, R-Kennebec)Joint Standing Committee on Taxation.The bill would provide an income taxcredit for certain student loans made by theFinance Authority of Maine or adminis-tered by the Finance Authority of Maine.LD 335, An Act to Require the State toDistribute 25% of Adult Use MarijuanaRetail Sales and Excise Tax Revenue to

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Generating Municipalities. (Rep. Warren,D-Hallowell) Joint Standing Committee onTaxation. The bill does what the title sug-gests. It proposes to distribute 25% of adultuse marijuana retail sales tax to municipal-ities where the revenue was generated.LD 403, An Act to Prevent Tax HavenAbuse. (Rep. Tipping, D-Orono) JointStanding Committee on Taxation. The billwould require that corporations that fileunitary tax returns in Maine to includeincome from other certain jurisdictionsoutside the US in net income when appor-tioning among tax jurisdictions.LD 420, An Act to Amend the MaineExclusion Amount in the Estate Tax. (Rep.Collings, D-Portland) Joint StandingCommittee on Taxation. The bill wouldlower the exclusion amount for Maineestate tax from $5,400,000 to $2,000,000.LD 607, An Act to Provide Equitable Taxationfor the Food and Beverage Industry. (Sen.Guerin, R-Glenburn) Joint StandingCommittee on Taxation. The bill would allowa deductiont from Maine individual and corpo-rate taxable income for the federal tax creditallowed to an employer for the employer’sshare of federal social security taxes paid on theportion of the employee’s tips that cause theemployee’s wages to exceed $5.15 per hour.LD 609, An Act to Provide MuniciapalitiesAdditional Sales Tax Revenue from LodgingSales. (Rep. Terry, D-Gorham) JointStanding Committee on Taxation. This billprovides an incremental sales tax of 1% forthose sales currently subject to the 9% salestax on lodging. The incremental revenue,after reduction for administrative costs, isreturned to the municipality or unorganizedterritory to which the revenue is attributable.The amount received may not be used toreduce any other state aid or revenue sharingto municipalities or the unorganized territory.LD 611, An Act to Provide SupplementalAppropriations and Allocations for theOperations of State Government. (Rep.Jorgensen, D-Portland) Joint StandingCommittee on Taxation. The bill is a con-cept draft that proposes to provide supple-mental appropriations and allocations neces-sary for the operations of state governmentfor the fiscal year ending June 30, 2019.LD 625, An Act to Phase out the InsurancePremium Tax on Annuities. (Rep. Stanley,

D-Medway) Joint Standing Committee onTaxation. The bill would phase out theinsurance premium tax on annuity consider-ations over 4 years beginning in 2020.LD 977, An Act to Restore the Super Creditfor Substantially Increased Research andDevelopment. (Rep. Hepler, D-Woolwich)Joint Standing Committee on Taxation. Thebill would reinstate the super credit forqualified research and development expens-es that expired back in 2014, for tax yearsbeginning on or after January 1, 2019.LD 989, An Act to Improve Maine’s TaxLaws. (Sen. Chipman, D-Cumberland)Joint Standing Committee on Taxation.The bill proposes to make changes to thetax laws to improve the application andefficacy of the tax laws.LD 1164, An Act to Improve theEducational Opportunity Tax Credit. (Sen.Pouliot, R-Kennebec) Joint StandingCommittee on Taxation. The bill replacesthe exisiting educational opportunity taxcredit with a new proposed simplified ver-sion applicable to tax years after January 1,2020. The credit for employers is the less-er of the amount the employer paid onbehalf of the qualified employee and20%of the outstanding student loan debt.The credit for the employee would be thelesser of the amount paid on eligible stu-dent loans and 15% of the outstdning stu-dent loan debt on the date the first educa-tion loan is made after degree earned.LD 1254, An Act to Authorize a Localoption Sales Tax on Meals and Lodging andProvide Funding to Treat Opioid Disorder.(Rep. Sylvester, D-Portland) Joint StandingCommittee on Taxation. The bill wouldallow a municipality by referendum toestablish a local option tax of no more than1% on prepared food, and short term lodg-ing if approved by a local referendum. Thegenerating muncipality would receive 85%of the revenues and the other 15% of rev-enues would be distributed to all othermunicipalities across the state.LD 1929, Resolve Establishing aCommission to Study Fair, Equitable andCompetitive Tax Policy for Maine’sWorking Families and Small Businesses.(Rep. Fecteau, D-Biddeford) Joint StandingCommittee on Taxation. The bill would dowhat the title suggests, that is, to establish acommission to study the impacts of theState’s tax policy on working families andsmall businesses, The Commission wouldbe responsible for developing recommenda-

tions designed to ensure that tax policy ofthe state is fair and equitable while ensuringthe State remains competitive. TheCommission is directed to submit a reportto the Legislature by November 4, 2020.LD 2010, An Act to Update ReferencesContained in the Maine Revised Statutes tothe Unites State Interanl Revenue Code of1986. (Rep. Tipping, D-Orono) JointStanding Committee on Taxation. The billaffects the States income tax laws andupdate references to the US InternalRevenue Code of 1986 contained in theMaine Revised Statutes, Title 36 to referto the US IRS Code of 1986 as amendedthrough December 31, 2019 for tax yearsbeginning on or after January 1, 2019 andfor any priior tax years as specifically pro-vided by the US IRS of 1986 as amended.LD 2011, An Act to Update CertainProvisions in the Income Tax and ServiceProvider Tax Laws. (Rep. Tipping, D-Orono) Joint Standing Committee onTaxation. The bill makes changes to theincome tax and service provider tax laws.The bill extends the service provider tax of6% to digital audio and visual services or“streaming service”. The bill also conformsMaine income tax laws to the federal netoperating loss limitation retroatively to taxyears beginning or after january 1, 2018.LD 2123, An Act to Create Fairness in theRevitatlization of Maine’s Paper Industry.(Pres. Jackson, D-Aroostook) Joint StandingCommittee on Taxation. The bill creates a4% refundable tax credit for a paper industrymanufacturer that meets certain require-ments. The manufacturer must be headquar-tered or will be headquartered in the State;employs at least 400 employees; make a qual-ifying investment before January 1, 2024 ofat least $15,000,000 to acquire, modernize orimprove machinery for the production ofpaper products at a paper manufacturingfacility in this state; does not receive a Mainenew markets capital investment credit for thesame investment and is located in a highunemployment area.

TRANSPORTATION LEGISLATION

TRANSPORTATION DEFEATED…LD 1034, An Act To Provide Revenue To

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Fix and Rebuild Maine’s TransportationInfrastructure. (Rep. McClean, D-Gorham) Joint Standing Committee onTransportation.

TRANSPORTATIONCARRIED OVER TOFUTURE SPECIAL SESSION…LD 1093, An Act To Authorize a GeneralFund Bond Issue To Invest in Maine’sRailroad Infrastructure. (Sen. Claxton,D-Auburn) Joint Standing Committee onAppropriations and Financial Affairs.The funds provided by this bond issue, inthe amount of $50,000,000, will be usedfor investments in railroad infrastructureto expand passenger rail service, with apriority for railroad track corridors thatcould support passenger and freight inter-modal operations and enhance the move-ment of agricultural products.

UTILITIES AND ENERGYLEGISLATION

UTILITIES AND ENERGYDEFEATED…LD 564, An Act To Encourage theInstallation of Solar Panels onResidential Property. (Rep. Blume, D-York) Joint Standing Committee onEnergy, Utilities and Technology.LD 790, An Act To Eliminate the Cap on theNumber of Accounts or Meters Designatedfor Net Energy Billing. (Sen. Mirament, D-Knox) Joint Standing Committee on Energy,Utilities and Technology.LD 1127, An Act To Expand Community-based Solar Energy in Maine. (Sen. Sanborn,D-Cumberland) Joint Standing Committee onEnergy, Utilities and Technology.LD 1163, An Act Regarding Energy,Utilities and Technology. (Sen. Lawrence,D-York) Joint Standing Committee onEnergy, Utilities and Technology.

UTILITIES AND ENERGYCARRIED OVER TO FUTURESPECIAL SESSION…LD 13, An Act To Allow Microgrids ThatAre in the Public Interest. (Rep. Devin, D-Newcastle) Joint Standing Committee onEnergy, Utilities and Technology. This billdirects the Public Utilities Commission toapprove a petition to construct and operatea new microgrid if the commission finds theproposal to be in the public interest and thenew microgrid meets other specifiedrequirements. It provides the commissionwith the ability to impose such terms, con-ditions or requirements as, in its judgment,it considers necessary in approving a newmicrogrid and also gives the commissionoversight to ensure reliability and securityof the electrical system and consumer pro-tections for new microgrid consumers. Itspecifies that a new microgrid does notbecome a public utility as a result of its fur-nishing electrical service to participatingconsumers. It provides that a new micro-grid that has been approved by the commis-sion may construct, maintain or operate itslines in, upon, along, over, across or underthe roads and streets. The bill directs thePublic Utilities Commission to submit areport to the joint standing committee of theLegislature having jurisdiction over energyand utility matters by January 15, 2021.LD 173, An Act To Promote EconomicDevelopment and CriticalCommunications for Family Farms,Businesses and Residences by StrategicPublic Investment in High-speed Internet.(Rep. McCrea, D-Fort Fairfield) JointStanding Committee on Energy, Utilitiesand Technology. This bill is a conceptdraft pursuant to Joint Rule 208. This billproposes to increase funding to theConnectME Authority from $1,000,000to $5,000,000 to expand universal broad-band and high-speed Internet into ruralareas identified as the 6% of the Stateunserved by high-speed Internet. This billproposes to make expanding high-speedInternet into unserved rural areas a keyemphasis in the economic development ofand to multiply the return to the State bydirecting the ConnectME Authority to usethe increased funding to increase the rateof strategic broadband investment andleverage additional federal funding toprovide middle-mile and last-mile infra-structure in the unserved areas and to cor-rect broadband deficiencies identified in

the ConnectME Authority’s baselineupdate of 2013.LD 354, An Act To Authorize a GeneralFund Bond Issue To Encourage theProvision of Reliable High-speed Internetin Rural Underserved Areas of Maine.(Sen. Herbig, D-Waldo) Joint StandingCommittee on Energy, Utilities andTechnology. The funds provided by thisbond issue, in the amount of $20,000,000,will be used for encouraging the provisionof reliable high-speed Internet in ruralunderserved areas of Maine.LD 912, An Act To Establish the WoodEnergy Investment Program. (PresidentJackson, D-Aroostook) Joint StandingCommittee on Energy, Utilities andTechnology. This bill establishes thewood energy investment fund and createsthe Wood Energy Investment Programwithin the Efficiency Maine Trust. Thebill specifies that, if the Public UtilitiesCommission finds that an entity awardeda contract for biomass resources pursuantto Public Law 2015, chapter 483 is notmeeting contract requirements and there-fore is not qualified to receive the fullcontract payment or any contract pay-ment, those funds that would have beenpaid had contract requirements been metmust be transferred to the wood energyinvestment fund. It also specifies that anyfunds remaining in the cost recovery fundestablished in Public Law 2015, chapter483, section 1, subsection 5 that are notneeded to pay above-market costs for bio-mass resources must also be transferredby the Public Utilities Commission to thewood energy investment fund. It requiresthe trust to use funds from the fund, ifthere are any, to provide incentives andlow-interest or no-interest loans for newwood-derived thermal energy or cogener-ation projects. It requires that the trustconsult with the Finance Authority ofMaine, when appropriate, in the develop-ment of any Wood Energy InvestmentProgram incentives and the distribution ofmoney from the wood energy investmentfund. It prohibits the use of funds forincentives or loans for the refurbishmentor maintenance of existing facilities.LD 1080, Resolve, Regarding Biofuel inNumber 2 Heating Oil. (Rep. Riley, D-Jay) EMERGENCY Joint StandingCommittee on Energy, Utilities and

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Technology. This resolve directs theExecutive Department, Governor’sEnergy Office to oversee a study of andreport to the Joint Standing Committee onEnvironment and Natural Resources onthe feasibility of setting a requirement forthe percentage of biofuel to be used in #2heating oil.

WORKFORCEDEVELOPMENT LEGISLATION

WORKFORCE DEVELOPMENTDEFEATED…LD 1521, An Act To Expand SkillDevelopment Opportunities for MaineYouth. (Sen. Keim, R-Oxford) JointStanding Committee on Education andCultural Affairs.

WORKFORCE DEVELOPMENTCARRIED OVER TO FUTURESPECIAL SESSION…LD 1258, An Act To Increase Access toTransportation for Workforce and OtherEssential Transportation Needs. (Rep.Sheats, D-Auburn) Joint Standing Committeeon Transportation. This bill requires thequinquennial locally coordinated plan forregional transit submitted by each regionalpublic transportation agency to focus onmeeting workforce needs. This bill also pro-vides funding to the Department ofTransportation to support and expand localvolunteer driver networks; to create a pilotpurchase of service program in a selectedregion of the State to provide senior citizensand persons with disabilities vouchers to pur-chase their own transportation services; andfor regional transportation providers through-out the State, split evenly between rural andurban areas, to expand their services, includ-ing addressing regional workforce needs.LD 1520, An Act To Create and SustainJobs through Development of Cooperativesand Employee-owned Businesses. (Sen.Libby, D-Androscoggin) Joint StandingCommittee on Innovation, Development,Economic Advancement and Commerce.This bill supports employee-owned business-

es and cooperatives in the following ways.1. It excludes from Maine income tax

the amount of gain, up to a maximumof $750,000 recognized by a businessowner in transferring the business toan employee stock ownership plan,eligible worker-owned cooperative,consumer cooperative or affordablehousing cooperative.

2. It excludes from Maine income taxinterest from loans that finance trans-fers of ownership from a business toan employee stock ownership plan,eligible worker-owned cooperative,consumer cooperative or affordablehousing cooperative.

3. It requires the Department ofEconomic and CommunityDevelopment, Office of BusinessDevelopment to encourage and assistemployee-owned businesses byrequiring the office to: develop educa-tional programs, including conveningan annual conference on employeeownership issues; provide informationabout employee ownership and techni-cal assistance to retiring businessowners, employees of plants threat-ened with closure and entrepreneursinterested in creating businesses withbroadly shared ownership; link Mainebusinesses interested in implementingemployee ownership to availablefinancial, technical and legalresources; and help businesses inter-ested in implementing some form ofemployee ownership to obtain financ-ing, as well as undertake other duties.

4. It requires the Commissioner ofEconomic and CommunityDevelopment to give priority toemployee-owned businesses, eitherestablished or in the process of becom-ing employee-owned, when providingloans or grants from funds or pro-grams maintained by the department.

5. It requires the Maine Public EmployeesRetirement System to conduct a studyto determine how funds held by the sys-tem may be invested responsibly inemployee-owned businesses in thisState and to report its findings to theJoint Standing Committee onInnovation, Development, EconomicAdvancement and Business, which isauthorized to report out a bill to theSecond Regular Session of the 129thLegislature based on the study and rec-

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ommendations of the system.LD 2109, An Act To Implement theRecommendations of the Commission ToStudy Long-term Care Workforce Issues.(Rep. Hymanson, D-York) JointStanding Committee on Health andHuman Services. This bill implements therecommendations of the Commission ToStudy Long-term Care Workforce Issues,which was established by Public Law2019, chapter 343, Part BBBBB, section1. The bill does the following:1. It requires direct care workers across

the long-term care spectrum to bepaid no less than 125% of the mini-mum wage. It requires theDepartment of Health and HumanServices to adopt rules that take intoaccount the cost of this increasedwage in its reimbursement rates.

2. It requires the Department of Healthand Human Services to adopt rules toincrease reimbursement rates underChapter 101: MaineCare BenefitsManual and any state-funded pro-grams to take into account costs ofproviding care and services in con-formity with applicable state and fed-eral laws, rules, regulations, trainingrequirements and quality and safetystandards, including, but not limitedto, increases in the minimum wage,earned paid leave, electronic visitverification, background checks andother costs that are not provided forin the current reimbursement rates.

3. It establishes a long-term care work-force oversight advisory committee tocollect and compile data related toworkforce shortages and services pro-vided to clients, review progress bythe Department of Health and HumanServices regarding recommendationsprovided to the department and thejoint standing committee of theLegislature having jurisdiction overhealth and human services matters,including the recommendations of theCommission To Study Long-termCare Workforce Issues, identify barri-ers to implementing recommendationsand make recommendations on pro-posals to address long-term care work-force shortages. The oversight com-mittee must submit an annual report tothe joint standing committee of theLegislature having jurisdiction overhealth and human services matters. r

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