Today marks the official, but rarely enforced, deadline for the committees to have their work completed. At this point, the bills that are voted out of committee will start moving to the floors of the two chambers for votes and debate. MFPC will continue to engage on a number of bills as they progress through the process.
On Monday, the Governor signed LD 161, “Resolve, Directing The Maine Office Of Community Affairs To Convene A Working Group Tasked With A Comprehensive Overhaul And Modernization Of Maine’s Subdivision Laws” into law. This bill, sponsored by Representative Jack Ducharme (R-Madison) directs the Maine Office of Community Affairs to head a working group to make recommendations to overhaul and modernize the subdivision of Maine. In 2025, MFPC testified “Neither for Nor Against” this bill, and we will be actively monitoring this working group. ***
On Tuesday, the Labor and Housing Committee held a work session on LD 2018, “An Act To Amend The Requirements Governing Self-insurance Plans In The Paid Family And Medical Leave Benefits Program.” This bill, that MFPC opposed, would explicitly prohibit the use of risk pooling and cost sharing in self-insurance plans among multiple employers. The department proposed allowing cost sharing for administrative costs, but still prohibiting risk pools. Several MFPC members have stated that they attempted to utilize self-insurance risk pools for paid family medical leave plans but were told it was not permitted by the department despite it not be prohibited in the law. A few others stated that they wished to self-insure, but were uncertain regarding the legal status.
The bill was amended to allow companies to pool financial resources or administration of programs, but would not allow the pooling of risk. The amendment to the bill passed 9-3.
On Wednesday, the IFW Committee held a work session on LD 350, “An Act Regarding The Operations Of The Department Of Inland Fisheries And Wildlife.” As amended, the bill would have brought the ATV taskforce back together to address the issue of weight, width and size of allowable machines on Maine’s trails.
MFPC testified in opposition to this bill because the process outlined in LD 350 was duplicative of recent (LD 1308) or existing structures (LD 2221) with duties (Public Access to Private Land report) that were recently addressed. Additionally, MFPC finds it to be highly problematic to force an unwanted and significant weight increase (LD 19), against the consensus recommendation of the LD 1308 working group, and then turn around and reconvene a taskforce to look at the issue.
The majority report of LD 350 instead tasks the Land Owners and Land User’s Advisory Board, with additional ad-hoc non-voting members from the ATV community, with looking into the issue in order to provide recommendations, and potential legislation, for the 133rd Legislature.
Throughout the many discussions about Maine’s ATV trails, it has become apparent that our existing network has grown significantly beyond what is sustainable. MFPC will continue to advocate for the recommendations presented within the Public Access to Private Land report, many of which are included in the minority report of LD 19 (CA-B).
On Wednesday, the Taxation Committee held a work session on LD 2222, “An Act To Establish Municipal Cost Components For Unorganized Territory Services To Be Rendered In Fiscal Year 2026-27” in the Taxation Committee. Last week, MFPC testified “Neither for Nor Against” and our testimony hinged on the fact that none of the data regarding the municipal cost components of the Unorganized Territory budget were available to the public, committee, or taxpayers of the region for the hearing, making it impossible for any sort of meaningful dialogue. We were provided this information the day before the work session and were encouraged by the committee and the Fiscal Administrator’s wish to ensure a more transparent process in the future.
On Thursday, Governor Mills released her amendments to the budget commonly known as the “budget change package.” This package offers funding for a number of MFPC priorities including:
- Part N: Funding for the Pass-Through Entity Tax Credit (introduced as LD 191). The proposal would establish a pass-through entity tax on the income of partners and shareholders of S corporations and permit certain entities to elect to pay Maine income tax at the entity level. The effect of this is to allow a member of a pass-through entity a credit of 90% of the member’s share of Maine income taxes paid as a pass-through entity. The committee decided to adopt the tax credit to come into partial conformity (without retroactivity) with federal tax law. This change would improve the tax treatment of pass-through entities while being revenue positive for the State (a win-win!). Thanks to the Manufacturers Association of Maine and the State Chamber of Commerce for their advocacy on this section.
- Part O: The change package would adopt the majority report from the TAX Committee, which keeps non-retail equipment eligible under the current program. Retail equipment will be phased out in 2029 (rather than last year). This is a big win for manufacturers and loggers. Thanks to our members who weighed in on this section of the supplemental budget – your voices were heard! Our full testimony on Part O is available here.
The Council does have a few members who likely have retail property enrolled in the program. If that is the case, please reach out to members of the Appropriations Committee now so that they are aware when this section of the budget lands back on their desks. - Part UUU: Implements a new, sustainable funding source for the Land for Maine’s Future Program
- Part XXX: Finally, the content of our bill LD 1313, “An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds” has been moved into the supplemental budget.
LD 1313, sponsored by Senator Brad Farrin, is one of MFPC’s priority bills. If passed, it will make commercial wood haulers eligible for the heritage industry tax exemption, bringing treatment of this equipment in line with other forestry equipment and agricultural equipment. We are very appreciative that this bill has been selected for funding with this budget. The cost of logging trucks and trailers has increased dramatically over recent years, and this exemption will provide meaningful relief for our loggers.
Finally, the Taxation Committee discussed a committee bill to instruct the Maine Department of Administrative and Financial Services and the Bureau of Maine Revenue Services to convene a working group, as part of the Real Estate Property Tax Relief Task Force, to study the Tree Growth Tax Law program. The process will include a review of the program design and utilization to ensure that program goals are being met. The group will also study issues facing municipalities and assessors in administering and enforcing the program. Click for the current bill draft.
While we don’t anticipate a public hearing, MFPC will be submitting written comments to the committee for their consideration. Primarily, we will emphasize the importance of this program to Maine’s forest landowners and fiber supply, and we will recommend that the process include landowners. We will also urge the committee to also task the Maine Forest Service with convening this working group. While compliance within the program should be enforced, this program has been studied time and time again, most recently in 2017.