MSBA Legislative Update 06-05-09

TAX REFORM ENACTED

After trying for a number of years, Rep. John Piotti (D-Unity) has been able to see his proposed tax reform package enacted. On Friday, both the House and Senate voted to enact LD 1088. The bill proposes to reduce Maine’s top income tax rates, broaden the sales tax base to a number of other types of services, amusements and recreations, and makes a number of other structural changes to Maine’s tax laws. The bill is now sitting on the Governor’s desk, waiting to see what action Governor Baldacci may take on the proposal. Because the bill proposes to increase a number of sales tax items, and subject new items to the sales tax, it is unclear what action the Governor may take on the bill.

ENERGY EFFICIENCY BILL PASSES HOUSE

The long-awaited energy efficiency bill (LD 1485) reported out of the Select Committee on Maine’s Energy Future was overwhelmingly supported in the House by a vote of 137-0. The bill proposes to combine a number of various efficiency and conservation programs into a new Efficiency Trust, helps to coordinate the work force development activities currently undertaken by the Maine State Housing Authority, the Department of Labor, and the PUC, into a more cohesive delivery mechanism, increases available revenues for affordable housing, and places a moratorium on the permitting of certain energy facilities until a Legislative Study regarding energy corridor and facility siting may be completed by January 2010.

The bill now heads to the Senate who is expected to start its deliberations on Monday, and is also expected to pass the bill.

GREENHOUSE GAS/SITE LAW STILL PENDING

The House did not start its debate this week on LD 1333, the bill proposing to establish new review criteria under the DEP’s Site Law to include greenhouse gas emissions, energy efficiency, weatherization, and design and construction techniques. The House is expected to start its debate on Monday, and it promises to be a hotly debated bill before both the House and Senate.

LEGISLATIVE DATABASE

An updated Legislative Database is linked to this Weekly Report for your information. It contains any newly introduced bills that we have identified of interest to the MSBA along with updated status listings of previously introduced bills.

Click here for your Legislative Database.

Click here for a text document of this report.

As always, please don’t hesitate to contact us if you have any questions:
Pattie Aho at 207-622-6311 or paho@pierceatwood.com