2005 Rated Bills for the First Session of the 122nd Legislature
LD 195 An Act to Conform the Maine Tax Code with the Federal Health Savings Accounts Laws. This bill conforms Maine's income tax law to federal law regarding contributions to health savings accounts.
Roll Call Vote(s): House RC# 254 Prevails Yeas 122 Nays 10 Absent 19 Excused 0 (6/6) | Senate RC# 255 Accept the Majority Ought to Pass as Amended Report Prevails Yeas 33 Nays 0 Absent 2 Excused 0 (6/9) A Yes vote on these roll calls supported Maine's employers and economy.
Final Disposition: Carried over to any special or regular session of the 122nd Legislature pursuant to Joint Order SP 640 (6/18/2005)
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LD 309 An Act to Remove the Sunset on Part-time Unemployment Insurance Benefits. This new law removes the sunset on the expansion of unemployment benefit eligibility to workers who have a primary history of part-time work, who are laid off and are only able and available for comparable part-time work. The language expanding those benefits took effect on January 1, 2004 and was made permanent by the 122nd Maine State Legislature and the Governor. The current Administration proposed this legislation that makes part-time workers permanently eligible for unemployment benefits under Maine's unemployment insurance law. It has been estimated that this proposal will result in a tax increase on Maine business of at least $2.5 million annually. The Maine Department of Labor estimated that providing these expanded benefits would result in an unemployment insurance tax increase of approximately $12.9 million adding to the already high cost of doing business in Maine. The estimate for 2006 is $3.0 million in additional UI taxes.
Roll Call Vote(s): House RC# 172 Pass to be Engrossed Prevails Yeas 73 Nays 71 Absent 7 Excused 0 (5/19) | Senate RC# 220 Indefinitely Postpone Senate Amendment "A" (S-269) to Committee "A" Prevails Yeas 19 Nays 15 Absent 1 Excused 0 (6/2) {Non-Concurrence} | House Receded & Concurred (No RC Vote) (6/3) A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Signed into Law by the Governor Chapter 454 6/24/2005
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LD 435 An Act to Conform Maine Law to Federal Overtime Standards. This bill would have conformed Maine overtime laws to those of the federal Fair Labor Standards Act and require that rules adopted by the Director of Labor Standards within the Department of Labor conform to regulations adopted pursuant to the federal Fair Labor Standards Act, including the "white-collar exemptions" that became effective on August 23, 2004. This bill was considered a "Green" bill by MERI's Advisory Committee-good for Maine employers and economy. Rather than working from two different standards, one for the state and one for the federal government-this bill would have establish one set of standards.
Roll Call Vote(s): House RC#173 Accept the Majority Ought Not to Pass Report Prevails Yeas 77 Nays 67 Absent 7 Excused 0 (5/19) | Senate RC#192 Accept the Majority Ought Not to Pass Report Prevails Yeas 18 Nays 17 Absent 0 Excused 0 A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Dead
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LD 490 An Act to Eliminate the Offset for Social Security and Certain Other Pensions for Unemployment Benefits. This bill would have eliminated the pension offset against unemployment benefits for persons who receive Social Security or any other pension or plan to which the individual made at least 50% of the contributions. As under current law, if the person contributed some amount to the pension, but less than 50%, the offset is made after deduction of that portion of the pension that is directly attributable to the percentage of the contributions made to the pension by that person. Compared to current law this bill is estimated to cost Maine employers and additional $3 million in unemployment taxes annually.
Roll Call Vote(s): House RC#269 Engrossment Prevails Yeas 77 Nays 68 Absent 6 Excused 0 (6/7) | Senate RC#235 Accept the Majority Ought to Pass as Amended Report Fails Yeas 10 Nays 23 Absent 2 Excused 0 A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Dead
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LD 546 An Act to Promote Responsible Contracting Practices on State Projects. This bill would have required an employer on a state project to possess a federal and state tax identification number, be bonded, carry liability insurance and follow state requirements for unemployment and workers' compensation insurance. The employer would have needed to provide its employees health insurance that is Dirigo Health or the equivalent of that of state employees and construction industry safety training as provided by the United States Department of Labor, Occupational Safety and Health Administration. The employer would have also needed to participate in an apprenticeship program or equivalent training program to train construction workers. If enacted, this bill would have excluded many small Maine construction businesses from state projects.
Roll Call Vote(s): Senate RC#130 Accept Majority Ought to Pass as Amended Report Fails Yeas 14 Nays 21 Absent 0 Excused 0 | House RC#243 Accept Majority Ought to Pass as Amended Report Fails Yeas 56 Nays 83 Absent 12 Excused 0 A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Dead
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LD 562 An Act to Improve Public Understanding in Rulemaking. This bill would have required the Department of Agriculture, Food and Rural Resources, the Department of Conservation, the Department of Environmental Protection and the Department of Inland Fisheries and Wildlife to make available to the public primary sources of information that support the primary provisions in proposed rules. LD 562 was considered a "Green" bill (supportive of Maine's employers & economy) by MERI's Advisory Committee. Had this proposal been made law the public & employers would have had the opportunity to understand if the basis for the proposed rule is sound.
Roll Call Vote(s): Senate RC#66 Accept Minority Ought Not to Pass Report Prevails Yeas 17 Nays 16 (4/14) | House Passed Majority Ought to Pass as Amended Report No RC's A No vote on this roll call supported Maine's employers and economy.
Final Disposition: Dead - Non-Concurrence
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LD 699 An Act to Repeal Tax and Match. This bill repeals the service provider tax imposed on private non-medical institution services and the tax imposed on health care providers, hospitals, and nursing homes. This bill was seen as having a direct and positive impact on the cost of healthcare in Maine.
Roll Call Vote(s): Senate RC# 133 Accept the Majority Ought Not to Pass Report Prevails Yeas 17 Nays 16 Absent 2 Excused 0 (5/18) | House RC# 193 Engrossment Prevails Yeas 133 Nays 9 Absent 9 Excused 0 (5/24) A No vote on Senate Roll Call 133 and a Yes vote on House Roll Call 193 supported Maine's employers and economy.
Final Disposition: Carried over to any special or regular session of the 122nd Legislature pursuant to Joint Order SP 640
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LD 730 An Act to Require Proof of Equipment Ownership for Employers Using Foreign Laborers. This bill requires an employer who hires a foreign worker working in the United States under what is commonly known as an "H-2B visa" to provide proof of ownership of any equipment used by that worker, on a form to be provided by the Commissioner of Labor. The bill sets fines for violations at no less than $1,000 and no more than $5,000 per violation.
Roll Call Vote(s): House RC# 343 Enactment Prevails Yeas 75 Nays 69 Absent 7 Excused 0 | Senate RC# 278 Recede & Concur Passage to be Engrossed as Amended by Committee Amendment "A" (H-372) as Amended by House Amendment "A" (H-708) thereto in concurrence Prevails Yeas 18 Nays 16 Absent 2 Excused 0 (6/17) A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Signed into Law by the Governor Chapter 461 6/30/2005
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LD 881 An Act to Amend the Maine Workers' Compensation Act of 1992 To Facilitate Timely Independent Medical Examinations and Benefit Payments. The purpose of this bill is to expand the number of qualified medical professionals who are eligible to perform independent and timelier medical assessments relating to workers' compensation medical benefits.
Current interpretation of Maine Statutes precludes the use of a physician as an independent medical examiner if that physician has examined any employee, not merely the employee whose case is at issue. This bill specifies that it is a physician who examines "the" employee, not any employee, at the request of an insurance company during the previous 52 weeks who is prohibited from serving as an independent medical examiner. LD 881 was considered a "Green" bill (supportive of Maine employers & economy) by MERI's Advisory Committee. Had this proposal become law it would have expanded the number of qualified medical professionals who are eligible to perform independent and timelier medical assessments related to Workers' Compensation cases and injuries. Savings in Workers' Compensation costs were also expected had this bill passed.
Roll Call Vote(s): Senate RC#68 Accept Majority Ought Not to Pass Report Prevails Yeas 20 Nays 15 Absent 0 Excused 0 (4/26) | House Accept Majority Ought Not to Pass Report No RC Vote A No vote on this roll call supported Maine's employers and economy.
Final Disposition: Dead
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LD 1219 An Act to Improve the Business Climate in Maine. This bill amends the mission of the Department of Environmental Protection to include consideration of maintenance of the State's economic viability. The bill also authorizes the department, when a position becomes vacant through attrition, to hire an economist within its existing resources.
Roll Call Vote(s): House RC#122 Accept Majority Ought Not to Pass Report Prevails Yeas 72 Nays 68 Absent 11 Excused 0 (5/10) | Senate RC#112 Accept Majority Ought Not to Pass Report Prevails Yeas 19 Nays 14 Absent 2 Excused 1 A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Dead
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LD 1238 An Act to Ensure Compliance with Safety Regulations. This bill is intended to protect public safety by requiring inspections of certain industrial and commercial facilities that use potentially hazardous substances, equipment and machinery to ensure that operations will be undertaken properly.
This bill prevents the initiation or resumption of operation of any facility that employs more than 250 persons, uses hazardous substances or hazardous equipment or machinery in its operations and is being operated by an inexperienced workforce. The operator of such a facility must notify the Department of Labor, Bureau of Labor Standards of the impending initiation or resumption of operation. The Bureau of Labor Standards will schedule and conduct an inspection of the facility and consult with the employees of the facility to ensure that the facility may safely initiate or resume operation. Opportunity is provided for public comment and input from local government and the facility's employees to ensure adequate information is obtained about potential hazards caused by the facility's operation. The bureau will cooperate with the State Emergency Response Commission and local emergency planning committees to ensure that local emergency response plans are understood and followed in the event of an emergency at the facility. The facility may not begin or resume operation until it has been inspected by the Bureau of Labor Standards and found to be safe for operation.
Roll Call Vote(s): House RC#216 Engrossment Fails Yeas 70 Nays 77 Absent 4 Excused 0 | Senate RC# 210 Accept Majority Ought to Pass as Amended Report Fails Yeas 6 Nays 29 Absent 0 Excused 0 (6/1) A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Dead
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LD 1435 An Act Establishing Minimum Energy Efficiency Standards for Certain Products Sold or Installed in the State. This bill sets minimum energy efficiency standards for certain products sold or installed in Maine, including exit signs, traffic signals and ceiling fans.
This bill authorizes the Public Utilities Commission to establish higher energy efficiency standards and to adopt standards for additional products and directs the Public Utilities Commission to monitor and enforce compliance with the standards.
Roll Call Vote(s): House RC#222 Accept House Amendment "A" (H-370) to Committee Amendment "A" Prevails Yeas 86 Nays 59 Absent 6 Excused 0 (5/31) | Senate RC# 236 Engrossment as Amended by Senate Amendment "B" in Non-concurrence Prevails Yeas 20 Nays 14 Absent 1 Excused 0 (6/8) A No vote on Senate Roll Call 236 and a Yes vote on House Roll Call 222 supported Maine's employers and economy.
Final Disposition: Dead
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LD 1450 An Act to Amend Water Quality Standards. The bill amends the bacteria standard for class B, C, SB and SC waters and removes a reference to an out-of-date manual, upon the recommendation of the Department of Marine Resources.
The bill makes corrections to and clarifies changes in the dissolved oxygen standard that was enacted in the previous session. An Amendment was submitted (House Amendment "A" -- H-635) that would have provided that the 30-day average dissolved oxygen criterion of a Class C water is 6.5 parts per million rather than the adopted language that that now states "…the 1-day minimum dissolved oxygen concentration May not be less than 8.0 parts per million in identified fish spawning areas."
Roll Call Vote(s): House RC# 253 Indefinitely Postpone (House Amendment "A") Prevails Yeas 100 Nays 34 Absent 17 Excused 0 (6/3) Senate RC# 234 Enactment Prevails Yeas 30 Nays 5 Absent 0 Excused 0 (6/8) A Yes vote on these roll calls supported Maine's employers and economy.
Final Disposition: Signed into Law by the Governor Chapter 409 6/20/2005
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LD 1476 An Act to Provide an Annual Cost-of-Living Adjustment for Persons Receiving Workers' Compensation Benefits for Total Incapacity. This bill requires an annual adjustment to benefits for those receiving workers' compensation because of total incapacity.
Roll Call Vote(s): Senate RC# 145 Accept Majority Ought to Pass as Amended Report Prevails Yeas 18 - Nays 16 - Absent 1 - Excused 0 | House No RC Vote A No vote on this roll call supported Maine's employers and economy.
Final Disposition: Dead
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LD 1496 An Act to Reduce Maine's Health Insurance Rates and Expand Consumer Choice. This bill would have:
Repealed the guaranteed issuance and community rating law for individual health plans effective April 1, 2006 and allowed carriers to treat their pre-2006 book of business separately from their post-2006 book of business. It makes changes to the continuity of coverage laws to allow underwriting when someone switches carriers in the individual market;
Created the Comprehensive Health Insurance Risk Pool Association. The purpose of the association is to spread the cost of high-risk individuals among all health insurers. The bill funds the high-risk pool through an assessment on insurers. An individual insured through the high-risk pool may be charged a premium up to 150% of the average premium rates charged by carriers for similar health insurance plans. The bill requires the State to submit an application to the Federal Government for federal assistance to create a high-risk pool.
Removed the requirement that carriers offer standard and basic plans as defined in Bureau of Insurance Rule Chapter 750 in the individual market.
Repealed the community rating law for small group health plans effective January 1, 2007 and enacts in its place provisions governing the rating of small group health plans based on a model act from the National Association of Insurance Commissioners.
Allowed a carrier to offer health plans that do not comply with geographic access standards if the carrier also offers health plans that comply with those access standards or offers a fee-for-service health plan.
Imposed a $250,000 cap on noneconomic damages awarded in medical malpractice cases.
Allowed individuals a state income tax deduction for contributions to health savings accounts and for payments made toward health insurance premiums.
Repealed the statutory provisions governing the State Health Plan and certificate of need.
Required the Department of Health and Human Services to submit legislation by January 1, 2006 to increase MaineCare reimbursement rates for health care providers by 20%. Part G also requires the Department of Professional and Financial Regulation, Bureau of Insurance to conduct a study of the State's rate and form filing laws and make recommendations for changes to reduce the costs and resources expended by health insurance carriers seeking regulatory approval of new health insurance products.
Roll Call Vote(s): House RC# 337 Adopt House Amendment "A" (H-717) Fails Yeas 69 Nays 76 Absent 6 Excused 0 (6/14) | Senate No RC's A Yea vote on this roll call supported Maine's employers and economy.
Final Disposition: Dead - (In Possession of the Senate when the Senate Adjourned Sine Die and placed in the Legislative files.) 06/18/2005
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LD 1577 An Act to Modify the Calculation and Implementation Date of Savings Offset Payments under the Dirigo Health Act. This bill clarifies and makes changes to the date the savings offset payment determination is made and the dates payments may begin under the Dirigo Health Act. The changes reflect the delay in the implementation of the Dirigo health plan. In addition, the bill changes the basis for computing savings offset payments from premiums to paid claims. This change puts the calculation of the savings offset payments on an equal footing with likely payments from self-insured plans.
Included in this bill as amended:
It allows insurers, for the calendar year 2006, to give 30 days' notice of changes in rates to policyholders instead of the 60 days' or 90 days' notice required under current law.
It amends the Dirigo Health Act in several places to bring the law into compliance with federal requirements related to pooling of funds for providing a state match for federal Medicaid dollars.
It allows for the pooling of savings offset payment revenue and clearly states that the calculation of the savings offset payment amount is limited to the amount of funds necessary to provide subsidies and to support the Maine Quality Forum, and that the calculation may not include general administrative expenses of Dirigo Health.
It changes from premiums to paid claims the assessment base for savings offset payments required from health insurance carriers and employee benefit excess insurance carriers and establishes paid claims as the assessment base for savings offset payments required from 3rd-party administrators.
It provides for savings offset payments to apply to claims paid on or after January 1, 2006, 6 months later than in current law, to reflect delays in the implementation of Dirigo Health. It provides an exception to the quarterly savings offset payments for the first 3 months of 2006, during which time monthly savings offset payments, due not less than 60 days after the close of the month, are required for plan years starting during those months. It allows 3rd-party administrators for groups of 500 or fewer members to make savings offset payments annually.
It specifies that rules regarding the definition of paid claims for the purpose of savings offset payments are major substantive rules after the first assessment year. During the first assessment year the rules are routine technical as provided in Part B of the amendment.
It establishes a 10-member working group, convened by the Superintendent of Insurance, to advise the Board of Directors of Dirigo Health on certain issues relating to savings offset payments, including the definition of "subsidy," the definition of "paid claims," the methodology for calculating and invoicing paid claims, the board's proposed methodology for calculating aggregate measurable cost savings and a funding strategy for Dirigo Health's administrative expenses. The working group is required to provide monthly reports to the Joint Standing Committee on Insurance and Financial Services.
It provides a timeline for the start-up of savings offset payments, including deadlines for the determination of aggregate measurable cost savings and the amount of the savings offset payment.
It specifies that Dirigo Health may use the $53,000,000 in start-up funds it received pursuant to Public Law 2003, chapter 469 to cover administrative expenses but may not cover those expenses with savings offset payments. It requires the Board of Directors of Dirigo Health, with input from the working group, to make recommendations to the Joint Standing Committee on Insurance and Financial Services regarding how to finance Dirigo Health's administrative expenses and authorizes the committee to report out a bill after reviewing the board's recommendation.
Roll Call Vote(s): Senate RC# 258 Accept Committee Amendment "A" (S-359) Prevails Yeas 18 Nays 15 Absent 2 Excused 0 (6/10) | House RC# 314 Accept Majority Ought to Pass as Amended Report Prevails Yeas 76 Nays 74 Absent 1 Excused 0 (6/14) A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Signed into Law by the Governor Chapter 400 6/17/2005
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LD 1618 An Act Regarding Advertising by Drug Manufacturers. This bill requires the Department of Health and Human Services to adopt rules incorporating by reference federal laws and regulations concerning misbranded drugs and devices and prescription drug advertising. The bill also requires drug manufacturers to provide information concerning clinical trials of prescription drugs advertised in the State, provides immunity for disclosure of that information, directs the department to maintain this information on an Internet website and enables the department to collect a fee from manufacturers to support a clinical trial database. The bill makes violations of these requirements violations of the Maine Unfair Trade Practices Act, which are subject to a fine of not more than $10,000.
Roll Call Vote(s): Senate RC#256 Accept Majority Ought to Pass as Amended Report Prevails Yeas 21 Nays 14 Absent 0 Excused 0 | House RC#308 Enactment Prevails Yeas 73 Nays 72 Absent 6 Excused 0 A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Signed into Law by the Governor Chapter 392 6/15/2005
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LD 1638 An Act Concerning the Regulation of Certain Information to Protect Privacy. Currently, state law conforms to the opt-out provisions of the federal Gramm-Leach-Bliley Act regarding the disclosure of nonpublic personal information. This bill puts in place an opt-in requirement so that financial services providers, including banks, credit unions, securities firms and mortgage companies, must have permission from individuals before disclosing nonpublic personal information to nonaffiliated 3rd parties, but only upon approval by voters at a statewide referendum.
Roll Call Vote(s): House RC#235 Accept Majority Ought Not to Pass Report Prevails Yeas 98 Nays 46 Absent 7 Excused 0 (6/1) | Senate No RC's A Yea vote on this roll call supported Maine's employers and economy.
Final Disposition: Dead
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LD 1691 An Act to Eliminate Pension Cost Reduction Bonding and Provide Replacement Budgeting Measures.
This new law, in part, reverses a law previously enacted by the legislature and signed by the Governor (Public Law 2005, Chapter 12, Part PPPP, section 1--From LD 468). This borrowing provision of LD 468 was proposed by the Governor and consequently approved by the legislature earlier in the first session and provided for state borrowing through the issuance of bonds to pay what most would consider current state expenses. LD 1691, among other provisions, repeals the authority for the Maine Municipal Bond Bank to issue pension cost reduction bonds that was provided in LD 468.
While LD 1691 has many parts, the reversal of the previous decision to borrow to pay current expenses is considered to be a very positive change to the provisions in LD 468. However, the new law is also problematic to state employers in at least two provisions and thus was considered to be negative overall for Maine's employers and economy. Two provisions considered most egregious to employers and the economy are:
PART BBB
Part BBB limits reimbursement of property taxes under the Business Equipment Tax Reimbursement program for the application period that begins on August 1, 2006 to 90% of the property taxes assessed and paid on eligible property. This change directly affected employers who had already budgeted operations based on the current law.
PART FFF
Part FFF alters the income tax calculation for multistate corporations. The change apportions the total tax rather than the total income for affected corporations. This change makes the calculation of income tax for multistate corporations consistent with the calculation for nonresident individual income tax for Maine, including the individual taxation of business income from sole proprietors and members of pass-through entities that engage in multistate business activity. Raises the already high Maine tax burden on many state employers at a time when high tax burden has been identified as a major constraint on Maine's economy.
Roll Call Vote(s): House RC# 339 Enactment Prevails Yeas 74 Nays 72 Absent 5 Excused 0 (6/17) | Senate RC# 280 Enactment Prevails Yeas 19 Nays 14 Absent 2 Excused 0 (6/17) A No vote on these roll calls supported Maine's employers and economy.
Final Disposition: Signed into Law by the Governor Chapter 457 6/24/2005
LD 2023
An
Act to Implement Recommendations of the Study Commission Regarding Liveable
Wages Concerning the Definition of a Liveable Wage
Committee:
Labor Outcome:
Divided Report Majority Ought to Pass as Amended 8 Minority
Ought Not to Pass 5
Senate
Vote: RC# 494 Accept Committee Majority Ought to Pass as Amended Report Failed Yeas 13 Nays 17
House Vote: RC# 578 Accept
Committee Majority Ought to Pass as Amended Report Failed
Yeas 69 Nays 74
Final
Disposition: Killed in the Senate &
House
This bill was a recommendation
of the Study Commission Regarding Liveable Wages. The bill would have directed the Department of Labor to
annually calculate the liveable wage for various household sizes using the
methodology used by the Maine Center for Economic Policy (Christopher ‘Kit’ St. John) and to report the liveable wage
calculations to the Legislature. The
bill also defines "liveable wage." Amended to read (1): This amendment, which is the majority report of
the Joint Standing Committee on Labor, requires the Department of Labor to
report liveable wages calculations to the joint standing committee of the
Legislature having jurisdiction over labor matters and adds an appropriations
and allocations section. Amended to read
(2): This amendment, which is the
minority report of the Joint Standing Committee on Labor, replaces the bill with
a resolve. The resolve requires the Department of Labor to make a one-time
calculation of liveable wages for households in the State and report its results
to the joint standing committee of the Legislature having jurisdiction over
labor matters. It also adds an
appropriations and allocations section. Amended to read (3): This amendment delays by one year the date by
which the Department of Labor must initially calculate and report liveable
wages. This amendment also changes
the requirement that the department recalculate liveable wages annually with a
requirement that they be recalculated and reported every 2 years.
This was one among at least four bills devoted to defining and moving from the concept of “Minimum Wage” to “Liveable Wage”. The calculations can be found at the Maine Center for Economic Policy website [ www.mecep.org ] in their report entitled "Getting By: Maine Livable Wages in 2004".
ECONOMIC
DEVELOPMENT
LD
1481* An Act to Amend the Laws Governing
the Enactment Procedures for Ordinances
Committee:
State and Local Government Outcome:
Divided Report Majority Ought to Pass as Amended 11
Minority Ought Not to Pass 2 Senate
Vote:
RC# 486 Enactment Prevailed Yeas 21 Nays 12
House Vote: RC# 535 Recede and Concur (with
Senate) Prevailed Yeas 78 Nays 68
Final
Disposition: “Pocket Veto” by the
Governor
Amended to read (this
amendment replaces the bill): That
this bill would have restricted a municipality's ability to nullify or amend a
municipal land use permit by a subsequent enactment, amendment or repeal of a
local ordinance. Amended to read:
This amendment extends the period within which a municipality may nullify or
amend a land use permit to 75 days and specifies that it extends from the date a
public hearing, if required, was held on the permit.
This amendment also specifies that these requirements do not affect any
municipal ordinance that provides for a lapse of the permit or authority granted
pursuant to the permit after a certain period of time.
This bill would have provided more
certainty to real estate investments and was considered to be positive for
Maine’s economy / business environment.
ENVIRONMENT
House Vote:
RC# 444 Enactment Failed Yeas
67 Nays 73
LD
484 An
Act to Enact the Tax Fairness Act
Committee:
Taxation Outcome: Divided
Report Majority Ought
to Pass as Amended 6 Minority Ought Not to Pass 5
Senate
Vote: RC# 471 Accept Majority Ought to Pass as Amended in Non-concurrence (with
the House) Prevailed Yeas 19 Nays 15
House Vote: RC# 550 Accept
Majority Ought to Pass as Amended Fails
Yeas 67 Nays 72
Final
Disposition: Defeated in Senate &
House
This bill was a concept draft pursuant to Joint Rule 208. This bill proposed to increase the sales tax and expand the types of products subject to the sales tax. The increased revenue would be used for education funding. The bill would be sent to referendum. Amended to read: This amendment replaces the bill with an advisory referendum, submitting to the voters the question of whether they favor repealing certain sales tax exemptions in order to provide income tax relief and property tax relief in a revenue-neutral manner.
LD
1328 An
Act to Amend the Maine Tree Growth Tax Law To Encourage Public Access
Committee:
Taxation Outcome: Divided
Report Majority Ought Not to Pass 10 Minority Ought to Pass as
Amended 1
Senate
Vote: No roll call vote
House Vote: RC# 361 Commit to
Taxation (send back to Committee –
sometimes used to try to save a bill) Failed
Yeas 61 Nays 72
Final
Disposition: Indefinitely Postponed in
Senate & House (dead)
This
bill would have exempted from the Maine Tree Growth Tax Law benefits a parcel of
land to which public access for recreational use is restricted or prohibited.
This bill was opposed by most forestry businesses and associations including the Maine Forestry Product Council and Maine Pulp & Paper Association.
LD
2056 An
Act to Replace Municipal Revenues
Subject to Business Equipment Property Tax Exemption
Committee: Taxation
Outcome: Divided Report Majority Ought to Pass as Amended
12 Minority Ought Not to Pass 1
Senate
Vote: RC# 467 Accept Committee Majority Ought to Pass as Amended Report Prevailed
Yeas 34 Nays 0
House Vote: RC# 552 Enactment Prevailed
Yeas 123 Nays 18
Final Disposition:
Signed into law by the Governor
This bill establishes a property tax exemption for eligible business equipment that is first subject to property tax assessment on or after April 1, 2008 in the absence of the exemption. The bill requires the State to reimburse municipalities for 50% of the lost property tax revenue associated with the exemption, as is provided by the Constitution of Maine.
Property that was first subject to property tax assessment prior to April 1, 2008 will remain taxable and eligible for the Business Equipment Tax Reimbursement, "BETR," program for the duration of the 12 years of BETR program entitlement. Property that is no longer eligible for the BETR program because it has received BETR reimbursement for the full 12 years becomes exempt business equipment. The bill requires the State to reimburse municipalities for 100% of the lost property tax revenue associated with this type of property, referred to as "BETR-expired property."
Property that was placed in service on or before April 1, 1995 remains fully taxable.
The bill also provides for additional state reimbursements to municipalities in which the taxable value of exempt business equipment, other than BETR-expired property, exceeds 10% of the entire taxable value in the municipality.
The bill also contains provisions that protect the expectations of municipalities with respect to the sheltering and revenues related to tax increment financing revenues to be used by municipalities on their own qualifying tax increment financing projects.
Amended to read: This amendment removes so-called "BETR-expired" property and certain retail property from eligibility for the new property tax exemption but leaves that property eligible for reimbursement to the taxpayer under the BETR program.
The generally applicable rate of reimbursement to municipalities for revenue losses from the new exemption are changed to 100% in the first year of the exemption and are reduced 10% each year until they reach 50%. Municipalities with more than 5% of their valuation in exempt property may choose alternative reimbursement. Alternative reimbursement is 50% plus 1/2 of the percentage that business personal property represents of the total taxable value plus exempt business personal property value in the municipality.
Reimbursement is provided for property remaining in the BETR program after 12 years at the rate of 75% in the 13th year and decreasing 5% a year until it reaches 50%.
Additional funds are provided for the Disproportionate Tax Burden Fund beginning at $2,000,000 in fiscal year 2009-10 and increasing $500,000 each year until funding reaches $4,000,000.