With only 12 days remaining until Statutory Adjournment, the Legislature is in the full swing of floor debates. Even as time winds down, there are still a number of bills that have not yet been released from committees, and we are even engaged on one bill that has not yet been printed or assigned an LD number. The presiding officers have expressed their intention to finish their work on time, but there is always a chance that the legislature will extend session to complete it’s work. The next couple weeks are expected to include some short notices and late nights. This time of year is “all hands on deck” for our staff and lobbyists. Please watch your inboxes for updates on bills that require your attention.
The budget and bond processes remain contentious, as they often are in the short session. While the full Legislature has not yet taken up the Supplemental Budget, the Appropriations Committee worked late into the night Tuesday to advance a package that was voted along partisan lines. The following items included in the package are of interest to our members:
- 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. This brings Maine 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: Non-retail equipment eligible under the current program will remain in the program. Most forest industry reimbursements are in non-retail categories. Retail equipment will be phased out in 2029. Our full testimony on Part O is available here.
- Part UUU: Implements a new, sustainable funding source for the Land for Maine’s Future Program, moving the program away from relying on bonding.
- 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” have 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.
The Appropriations Committee also voted to approve a 2% surcharge tax on individuals with annual income above $1 million along with a withdrawal from the rainy day fund for one-time “affordability” checks to go to certain Mainers.
The Appropriations Committee also put forward a bond package using LD 2094, the Agriculture Bond, as the vehicle. This package, which did not include our CLT bond sponsored by our 2025 Legislator of the Year, Rep. Sam Zager (LD 798) was not included in the package.
After failing to receive support from the Republicans, largely in protest over the level of new spending new taxes included in the Supplemental Budget, the bond package remains tabled in the Senate for now.
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Also this week, the legislature voted to pass LD 2070, “An Act to Prohibit Landfill Expansion into Wetlands.” MFPC opposed this legislation as presented, however it was significantly amended during the committee process and renamed “An Act to Improve the Management of Landfill Leachate and Wastewater Treatment 13 Plant Sludge at Solid Waste Landfills.” MFPC did not take a position on the amended version.
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Another bill, which was a top industry priority, was finally enacted in the Senate. That bill was LD 2187, “An Act To Update Certain Water Quality Standards And To Reclassify Certain Waters Of The State.” MFPC testified in support of the bill, which became the majority report, and we have followed this legislation closely as it progresses through the process. The minority report, had it succeeded, would have upgraded the lower Androscoggin from Class C to B against recommendations from the DEP and BEP and without the lack of scientific evidence to support such a change. While we all share the desire for clean water, an unwarranted reclassification would have had significant repercussions for manufacturers and municipalities along that section of the river.
Fortunately, after some debate, both chambers adopted the majority OTP report, which appropriately keeps the lower Androscoggin at Class C. Now that this bill has been enacted in the House and the Senate, it goes to the Governor for her signature. We are extremely grateful to our members for their engagement, and to the legislators who voted in favor of the majority report.
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Also this week, the House took up LD 2018, “An Act to Amend the Requirements Governing Self-insurance Plans in the Paid Family and Medical Leave Benefits Program.” This bill, which includes the majority report, is opposed by MFPC and a number of our members. Unfortunately, the House passed Committee Amendment which does not allow for employers who are self-insuring their ‘ paid family and medical leave benefits to pool risk across companies, a practice that is common in other types of insurance policies. The amendment won by only a single vote with two votes switching at the last minute.
The Senate is expected to take the bill up early next week, so outreach to Senators is still recommended. It is critical for CA-B to prevail in the Senate.
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Also this week, MFPC signed onto a letter with the Maine State Chamber, MAME and other industries to ask that legislators oppose LD 1966, “An Act to Improve Access to Community Solar Programs in the State.” The majority report of this bill, which was supported by the House on a 76-68 vote would add a projected $20 million in stranded costs to electric bills for only 4 megawatts of new solar through a new above-market procurement. This bill will now advance to the Senate for consideration.
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On Thursday, MFPC also signed onto a letter with a number of trade associations to ask that the Appropriations Committee not fund LD 599, An Act to Raise the Salary Threshold for Overtime Pay without a careful and considered assessment of a dramatic increase in the overtime salary threshold. This bill would make Maine, already an outlier, one of the top 5 states in the nation. Maine is also significantly higher than all the other New England states.
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Finally, we will leave you with an action item.
Ask your Legislators to Support LD 19 CA-B!
SAY NO to a 950 lb. Oversize ATV weight increase (CA-A) and SAY NO to a new open-ended/unenforceable exemption (CA-C)!
*LD 19 is expected to receive its first votes in the Senate on MONDAY!
Next week, the Maine Senate will take up LD 19, “An Act to Change the Definition of “Oversized ATV” in the Laws Governing the Registration of All-terrain Vehicles.” LD 19 is coming to the Senate with three committee amendments.
- CA-A, the majority report, would increase the weight limit on oversized ATVs allowed to be registered in Maine from 2,000 to 2,950 pounds, against the consensus recommendation of the LD 1308 working group report.
- CA-B, Senator Stacey Guerin’s report, would advance a number of the consensus recommendations from the LD 1308 report to strengthen Maine’s trail network, support landowners who host ATV trails and address the top priority recommendation to strengthen the enforcement of existing laws. This report would also allow for a handicapped exemption with clear guardrails and enforcement support for our game wardens.
- CA-C, supported only by one member of the IFW Committee, would allow for a broad handicapped exemption with no guardrails to prevent abuse. It also fails to consider the recommendations from the LD 1308 working group.
Last session, the Senate unanimously supported LD 1308 to pull together a working group, which included a thorough stakeholder engagement process with three state departments (ACF, IFW and DECD), representatives of all types of landowners and recreational user groups, worked diligently to tackle access issues through a collaborative consensus process. The final consensus report, which directly speaks to the issue of oversize ATVs, includes “a comprehensive set of recommendations to strengthen the access tradition.”
CA-A, the majority report, completely ignores the work of this group, advancing an unsupported weight increase that threatens the future of Maine’s connected and expansive trail network – the envy of the Northeast.
Page 7 of the LD 1308 report back states: “Any efforts to increase the current weight restrictions for UTVs would likely result in significant closures of hundreds of miles of trail, fragmenting the connected trail system that recreators enjoy today. Off-highway vehicle use represents a significant and expanding sector of Maine’s outdoor recreation economy; however, most of these trails are located on private land, and landowners typically receive no direct financial benefit despite bearing the risks of damage, liability, and maintenance.”
The lack of enforcement of the current rules coupled with increased pressure over recent years has pushed Maine’s ATV trail network to the brink. CA-A rewards those who have taken advantage of the lack of enforcement, betraying landowners who graciously host these trails. We urge lawmakers to consider the following:
- When the current size restrictions went into place in 2020, there were roughly 350 “oversized” ATVs registered in Maine that were grandfathered. The IFW Committee heard an estimation recently from ATV Maine that we now have between 10,000-15,000 oversized ATVs registered illegally because ATV dealers have largely disregarded Maine’s regulations.
- DIFW provided statistics to IFW on the number of violations that have been addressed related to oversized ATVs since 2024. Of the potentially thousands of illegally registered machines, only seven summonses have been issued since 2024 and out of that seven, less than half have resulted in a conviction. This disparity is a major, multi-faceted problem that must be addressed before any discussions about liberalizing our regulations move forward. CA-B would address this issue, in accordance with the LD 1308 recommendations.
Recently, we widely distributed a survey to all stakeholders regarding LD 19. Of the 172 responses, 162 OPPOSE CA-A and SUPPORT CA-B. This result includes Maine Woodland Owners, NRCM, Maine Tourism Association, Maine Professional Guides Association, Maine Snowmobile Association and Maine ATV Coalition. It also include landowners of all sizes, recreational users, land trusts and clubs. The ratio was 95% support and 5% oppose for CA-B of LD 19.
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In related ATV news, LD 276, “An Act Regarding Inland Fisheries and Wildlife” was passed in the House. This bill started as a problematic change in classifications of ATVs based on their diagonal length, but was heavily amended to only address the ATV dealer loophole that has been openly exploited. Requiring the oversized ATV disclaimer signed at time of purchase to be sent to DIFW and the town clerks to reduce the number of illegally registered oversized ATVs is an important step that we support.
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A bill to survey property assessors regarding the application of the Tree Growth Tax Program has gone through several iterations this week as well. The bill has not yet been finally printed and the tax committee has until 4pm today to weigh in on this version. Time does not allow for this bill to receive a public hearing before advancing to the full body for consideration. MFPC will continue to monitor this legislation closely to engage as needed.