Government Affairs

The Labor Committee handles legislation related to wages, scheduling, benefits, and workplace oversight. Unlike most other committees where collaboration was possible, the Labor Committee advanced several partisan priorities this session, often along party lines and with little effort to find middle ground. Proposals around flexible scheduling, pay range disclosures, employee surveillance, and other workplace regulations all moved forward without serious opportunities for compromise.

One of the most notable moves was the committee's refusal to consider even modest, good-faith proposals to improve Maine's new Paid Family & Medical Leave (PFML) law. Suggestions came from both the business community and some members of the Democratic caucus; however, majority-party leadership held the line, blocking changes that would have made the program more workable for employers. With one of the most generous PFML laws in the country now on the books, the lack of flexibility raises real questions about how implementation will impact businesses across Maine.

The Taxation Committee reviews policy around income taxes, local option taxes, corporate disclosures, and related issues. This year, we led the successful effort to defeat three separate proposals that would have raised the lodging sales tax. One of those bills advanced from committee on a party-line vote but that was decisively rejected on the House and Senate floors.

We also worked closely with Maine Revenue Services and the Governor's Office on a fix to address newly implemented recurring sales tax on rentals of personal property-such as ski and golf equipment. A compromise (LD 1211) passed both chambers, but now sits on the Special Appropriations Table, where it is competing for limited funding alongside hundreds of other bills.

Soaring energy transmission and distribution costs prompted lawmakers to revisit Maine's net energy billing (NEB) program. The new law removes "front-of-the-meter" projects from eligibility, adds a kilowatt-hour charge to help offset ratepayer burden, and requires the design of a replacement program. These changes are expected to reduce costs by $77 million annually through 2042-about a 30% reduction from projected NEB costs, which were estimated at $240 million per year.

The Environment and Natural Resources Committee advanced modest improvements to Maine's Extended Producer Responsibility (EPR) law, which attempts to shift the cost of managing packaging waste onto producers. Changes included aligning definitions with other states, clarifying important terms like "consumer" and "producer," and easing the proposed payment schedule ahead of full program rollout.

Once again, efforts to pass comprehensive consumer data privacy legislation stalled. LD 1822, modeled after Maryland's restrictive law, passed committee along party lines but was not taken up by the House. This bill would have placed major restrictions on how small businesses use digital marketing tools like targeted advertising.

LD 1822 runs counter to the national trend: 17 other states have adopted consensus-based privacy frameworks that protect consumers while still allowing small businesses to stay competitive. Through direct outreach and member engagement, we highlighted the real-world impacts of a restrictive, one-size-fits-all approach. These concerns, along with growing hesitation about unintended consequences, likely contributed to the House leadership's decision not to advance the bill. It remains in "unfinished business" status and could be reconsidered when lawmakers return in January 2026.

Workforce housing remains one of the most pressing long-term challenges facing Maine's employers. While there is widespread agreement on the need for action, the legislature did not advance significant statewide housing reform this session. We continue to support policies that incentivize new housing development and are exploring how employers might play a greater role in local workforce housing solutions.