Legislative Bulletin
March 27, 1998

SUPPLEMENTAL BUDGET FINALIZED; $7,000 HOMESTEAD EXEMPTION INCLUDED

The Appropriations Committee banged out the FY 98-99 supplemental budget in the early hours Friday morning, after a long-night work session characterized by party-line decision-making. The work session was dominated by the Democratic majority of the Committee, which moved in dozens of amendments to the budget package, which had stalled in its development for an eight-day period while negotiations over its details were worked out behind the scenes.

Municipalities and the residential property taxpayers in Maine’s 492 communities were treated very handsomely by the final package, as the $45 million necessary to finance the property tax homestead exemption was moved into the budget document. This action puts on firm ground the implementation of the income tax and property tax relief package that awaits final action in the House and Senate (LD 2219).

At the same time, a long string of spending ideas that had been under consideration were either scaled back or scuttled altogether as a result of the Committee’s final action, and the homestead exemption did not escape entirely unscathed. As the budget bottom line was coming into focus, it became clear that the homestead exemption at the $7,500 level was a little too rich given the state’s overall funding capacity, and the decision was made to shave $3.5 million off the homestead exemption’s overall cost to the state, setting the exemption at a new level of $7,000.

Other items in the supplemental budget’s majority report that have large and not-so-large impacts on property taxes and municipal government are:

Over $16.8 million to be added to the General Purpose Aid to Education (GPA) appropriation originally budgeted for FY 99. Under current law, the GPA increase for FY 99 would be at a 3% level, yielding a total appropriation of approximately $550 million. The FY 99 GPA increase finally moved into the budget would be nearly $17 million greater, at 6%. Language would be added, however, to discount the additional 3% allocation when it comes to determining the base-level appropriation for the following fiscal year (FY 2000). In short, the additional $16.8 million would be a one-time-only boost to GPA, and would not affect the GPA base in outlying fiscal years.

$20 million for FY 99 that would provide a mix of grant and loan money to school units for the purposes of needed renovations to school facilities.

$12 million from the General Fund for highway and bridge work to be conducted by the Department of Transportation. This appropriation makes it possible for DOT to maximize federal matching dollars for the targeted projects.

$10 million to pay for the renovation of the Oak Grove Coburn school in Vassalboro to become the new Maine Criminal Justice Academy. This item was scaled back slightly in final Committee action. Before the final work session, the new Academy was in the budget at $11.3 million.

$3 million for the state share of municipal landfill closure costs. This money was originally in the environmental bond proposal, but was moved out of the bond package and into a General Fund appropriation at $3.5 million. Final Committee action reduced the appropriation to an even $3 million.

$500,000 in new funding for the Shelter Operating Subsidy program, which annually provides $500,000 of core funding for the state’s homeless shelter system. Although the action of the Committee doubles the historical appropriation for this line, the initial request was originally priced at $2.5 million.

$450,000 to restore a lake water quality assessment and protection program, administered by the DEP.

$248,000 to provide SSI benefits to certain legal immigrants.

The most significant disappointment for municipal government coming out of the Committee’s final actions was the failure to get LD 2149, the police court-time reimbursement proposal, into the budget. Representative Tom Winsor (Norway), moved the proposal into the supplemental budget and explained to the Committee the merits of finally fixing the last shift-to-municipal-government budget gimmick of 1991. That 1991 change to the law reduced the reimbursement rate for local police officers in District Court from an hourly rate to a mere $10 per day. LD 2149 would move the reimbursement level up to $40 a day, for both local police and county law enforcement officers. Representative Winsor’s proposal was not supported by a majority of the Committee, meaning that LD 2149 will have to compete for funding on what appears to be a very lean Special Appropriations Table.

An aspect of the supplemental budget that remains unclear regards the Business Equipment Tax Refund program (BETR). The BETR program reimburses businesses for the personal property tax they pay on certain "qualified" business personality. The money needed for the state to appropriately fund the program is growing faster than predictions. Currently, the supplemental budget adds $5.2 million for the BETR program for FY 98, but leaves open a $7.6 million hole for FY 99. Immediately prior to the final meeting of the Appropriations Committee, the Taxation Committee developed a proposed change to the BETR program that would clarify two areas of the law that, if not addressed, could expose the BETR program to an even higher rate of growth over the next few years. It was intended that the developed language, after being reviewed by the Appropriations Committee, would be moved into the budget. Despite those intentions, the language was not moved into the budget and the $7.6 million hole in the FY 99 BETR program was not filled.

The majority report on the budget is not the only game in town. After the final Committee vote on the budget, which ran straight down party lines, the Republican Committee members outlined the minority report in concept. According to Representative David Ott (York), the minority report will:

Be more conservative financially;

Provide a different tax relief package, the details of which were not disclosed;

Focus on finally fixing all the gimmicks of 1991, including the so-called GPA "push" and police reimbursement in District Court;

Put more money away in the Rainy Day Fund;

Support infrastructure investment, although it was not clear if to a greater extent than the majority report;

Fund some of the smaller proposed bond issues out of surplus funds rather than borrowing; and

Leave more money on the Special Appropriations Table to let the stand-alone LD’s with fiscal notes compete on a "level playing field" rather than find protection in the supplemental budget.

Floor action on the budget package is expected to begin on Monday, March 30th.

The Committees on Inland Fisheries and Wildlife and Natural Resources entered into a joint work session to report out LD 1730 An Act to Implement the Recommendations of the Great Ponds Task Force. The majority report, which is supported by the entire Natural Resources Committee as well as three from Inland Fisheries and Wildlife Committee, proposes the following:

1. Prohibition of Personal Watercraft. Prohibits the use of personal watercraft on four categories of great ponds with the following characteristics: 1) great ponds within LURC (Land Use Regulatory Commission) jurisdiction; 2) great ponds generally not accessible by two wheel drive vehicles; 3) great ponds that have less than one developed unit per shoreland mile; and 4) great ponds with at least one outstanding resource value such as fisheries, wildlife and/or scenic/shore character.

2. State Authority to Regulate. Extends the state’s authority to develop rules regulating the horsepower of motors allowed on Maine’s great ponds to include rule-making authority over use, operation and type of watercraft. The rules adopted by the state must in some manner serve to protect wildlife and environmental values.

3. Municipal Regulation. Amends Title 12 MRSA Section 7792, subsection 4 to allow the commissioner to initiate rulemaking without being petitioned to do so. The amendment would also require 50 signatures from citizens in towns in the organized territories and 25 signatures from citizens in unorganized territories embarking on the petition process. The current petition standards call for 25 signatures from citizens in organized territories.

4. Age Limits. Adds language to Title 12 MRSA Section 4801 subsection 13-A, to require that persons operating personal watercraft are at least 16 years of age.

5. Acadia National Park. Establishes a 10 horsepower limit on motorboats permitted on two great ponds in Acadia National Parks area: Upper Hadlock Pond and Lower Hadlock Pond, and further prohibits the use of motorized boats on Witch Hole Pond; Aunt Betty’s Pond; Bubble Pond; Round Pond; and Lake Wood.

6. Certification of Rental Agencies. Requires that the Department of Inland Fisheries and Wildlife ensure that all persons renting motorboats are certified. The certification process would enable the Department to hold rental agencies accountable for promoting and teaching motorboat safety.

7. Liability Immunity for Navigational Aids. Provides lake associations, not receiving any remuneration from the state, immunity from liability when placing navigational aid markers in great ponds.

8. Restrictions Near Intake Pipes. Restricts the use of motorboats and personal watercraft from operation within a 400 feet radius of a water utility or municipal drinking water intake pipe. The current radius of protection is 200 feet.

9. Noise Levels. Sets a 78 decibel maximum noise level at a distance of 50 feet from the operating watercraft on airmobile and motorboats, and further addresses the noise issue by making tampering with a motorboat muffler system a civil penalty punishable by a maximum fine of $100.

10. Reports. Requires that three reports be submitted to the Legislature by January 1, 1999: 1) A report from the Maine Indian Tribal-State Commission making recommendations on the use of personal watercraft on waters within the jurisdiction of the Land Use Regulatory Commission. 2) A joint agency report from LURC, Department of Inland Fisheries and Wildlife and the Bureau of Parks and Lands describing the authority of each agency to regulate surface water use. 3) A report from the Department of Inland Fisheries and Wildlife making recommendations for a program of motorboat operation education and safety.

One of the three proposed minority reports strikes everything in the majority report except: 1) the sections pertaining to the certification of motorboat rental agencies; 2) the immunity from liability language granted to lake associations placing navigational aids; and 3) the report from the Department of Inland Fisheries and Wildlife making recommendations for a program of motorboat operation education and safety.

A second minority report replaces the bill with language authorizing municipalities, LURC and Acadia National Park to petition the Department of Inland Fisheries and Wildlife to develop ordinances regulating horsepower, use, operation, noise level and type of watercraft used on great ponds.

One member of the Inland Fisheries and Wildlife Committee recommended that the bill "ought not to pass".

A solid majority of the Taxation Committee voted "ought to pass as amended" on Monday with respect to a bill that would place certain performance requirements on companies receiving substantial economic development incentives from state and local governments.

In its original printing, LD 2243, An Act to Encourage Accountability and Return on Investment for Maine Taxpayers from Economic Development Initiatives, required companies that receive at least $250,000 worth of tax breaks and other governmental incentives to provide their employees wages and benefits at certain levels and to stay located in the state. Failure to meet the established standards could result in those companies being forced to repay the value of the incentives they received. The original LD 2243 would also have formalized the process by which the various state and local incentive packages would be approved. The bill would create a standing commission and give it the responsibility of reviewing the effectiveness of the incentive programs and reporting to the Legislature with respect to the rate of return received from those types of public investments.

Before its final vote, the Committee substantially reworked the printed bill on the basis of a recommendation of a subcommittee made up of the bill’s sponsor, Senator Chellie Pingree (Knox), the Department of Economic and Community Development (DECD), the Maine Chamber and Business Alliance, and a representative of the Maine Citizens Leadership Fund.

The reworked bill, with its 10-3 Committee endorsement, would accomplish the following.

What Economic Development Incentives Would Trigger the Law?

Under the printed bill, the new requirements established by the law would be triggered if a company received any number of a wide array of economic development incentives with an aggregate value of $250,000 or more a year or $2.5 million or more over a ten-year period.

As amended, the law will focus on a narrower list of specific incentive programs, including Employment Tax Increment Financing (E-TIF’s), municipal Tax Increment Financing (TIF’s), the Research Expense Tax Credit, the Jobs and Investment Tax Credit, the Governor’s Training Initiative Program, assistance from the Maine Quality Centers, and the Business Equipment Tax Refund program (BETR). The DECD Commissioner would be authorized to expand that list through rulemaking, according to certain standards in the proposed law.

The financial trigger has been modified as well. As the obligations befalling businesses have been significantly scaled back from the original version, the requirements would kick in as a general rule when a company received more than $10,000 worth of incentives in one year.

What New Obligations Would Be Place On Participating Businesses?

With one exception, the new requirements on participating businesses have been reduced to informational reporting requirements.

The printed bill established a highly formalized process that a business would have to go through to even apply for an incentive package that crossed the financial threshold level. The amended bill reduces that to a simple application statement. A business applying for any the tax break or economic development programs listed above, except for the BETR property tax rebate or the Research Expense Tax Credit, would have to provide a written statement as part of the application process that identifies the public purpose served by the employer through the use of the governmental incentive, the specific uses to which the incentives will be put, and the employment goals of the employer with respect to the number and wage levels of the jobs retained or created.

For companies that receive more than $10,000 worth of governmental assistance in a given year, the reporting requirement is stepped up a notch. In those circumstances, an annual report must be supplied to the DECD Commissioner detailing the total value of each development incentive received, the number and wage level of the jobs created or retained because of the assistance, current employment levels of the company and changes in employment level over the previous year, and an assessment of the public purposes served by the provision of the governmental assistance.

State Agency Responsibilities.

In addition to the business reporting requirements, four state agencies would also be required to provide some reports to the Legislature. The State Tax Assessor’s biennial report would identify the value of the tax breaks provided to each participating employer. The Commissioner of Labor would report annually on the funds provided for through the Workforce Development and Training program. The Maine Technical College System would report annually on the public funds spent on job training programs. DECD would report annually on the public funds spent for the benefit of businesses under municipal TIF’s, E-TIF’s, and the Governor’s Training Initiative.

Economic Development Incentive Commission.

As was the case with the printed bill, the amended LD 2243 would create an Economic Development Incentive Commission. Four legislators, the State Tax Assessor, the DECD Commissioner, and five members of the public would make up this commission, which would have the duties of: (1) gathering information about the various tax break and incentive programs and their effectiveness; (2) making recommendations to the DECD Commissioner about what additional governmental incentives should be added to the list of programs that would trigger the reporting requirements; (3) reviewing the nature of the jobs created or retained by the various initiatives; (4) examining whether the various incentive programs inadvertently provide preferential treatment among various employers, nurture unhealthy competition among communities, or result in public benefits being provided to companies that subsequently move Maine jobs out of state; and (5) making recommendations to the Governor and the Legislature as a result of its review and analysis.

The Single Expansion of Wage and Benefit Standards

The original bill established the E-TIF wage and benefit performance standard for all business participating in any governmental incentive program over the threshold level. As amended, the bill only extends the E-TIF wage and benefit performance standard to employers participating in the Jobs and Investment Tax Credit. This particular tax credit is not widely used by its design. To obtain the corporate income tax credit there must be a capital investment of at least $5,000,000 which creates at least 100 new jobs attributable to that investment.

Miscellaneous Elements of the Amended LD 2243

As the Committee finished polishing up the amended bill, a few miscellaneous elements were added.

For example, a sunset provision was put on the bill which will automatically repeal the entire measure in four years unless the Legislature at that time finds a purpose to extend the bill for another period of time or make the provisions of the law permanent.

The bill was also amended by the Committee to make the value of the BETR reimbursements to each company a matter of public record. The way it works currently, each participating company’s property tax obligations are a public record on the local level as a matter of law. In addition, any application that a business files with the local assessor for BETR reimbursement is a public record. What is not a public record, at least according to the State Tax Assessor, is the actual value of the refund provided to the business. Accordingly, when legislators are seeking information about the BETR program, they are provided a list of the applicants and the aggregate levels of reimbursement statewide or county wide, but not the specific amounts of tax refunds provided on a company-by-company basis. LD 2243, if enacted, would make that information a matter of public record.

As of today, there are over 60 bills with fiscal notes on the Special Appropriations Table. After the supplemental budget (LD 1950) is passed, there will be a limited amount of money left over and decisions will have to be made about which bills on the Table will be funded. Eight bills on the Table were listed in last week’s Legislative Bulletin. The following are bills of municipal interest that have been added to the Table this week.

LD 1746 An Act to Amend the Laws Relating to Development and Centralized Listing of Municipal Ordinances That Apply to Forest Practices. (Described in 3/6/98 issue of Legislative Bulletin). The Department of Conservation will require future General Fund appropriations of $10,000 in FY 2000 for database updating costs and $15,000 beginning in FY 2000 to provide full reimbursement for a state mandate that requires municipalities to revise certain municipal ordinances and provide certain notifications.

LD 1769 An Act to Authorize Additional Adjustments to the State Share of School Funding. Directs the Commissioner of Education to repay local school administrative units the so-called "general purpose aid push" from FY 1991 by making a June 1998 subsidy payment of $39,226,420 as part of the fiscal year 1998 supplemental appropriations budget.

LD 2048 (new title) An Act to Ensure Equitable School Funding. Strikes the statutory provisions that limit both the Commissioner of Education’s recommended funding level and the Legislature’s appropriation for the General Purpose Aid to Local Schools to 105% of the corresponding appropriation for the prior fiscal year. Elimination of those limitations could possibly increase requests for General Purpose Aid for Local Schools beginning in FY 99-00.

LD 2125 An Act to Improve Public Sector Labor Relations. (Described in 3/13/98 issue of Legislative Bulletin). The requirement that municipal public employers continue to honor the grievance arbitration provisions of an expired collective bargaining agreement pending the approval of a new agreement represents a state mandate pursuant to the Constitution of Maine. If grievance arbitration is required after the expiration of a collective bargaining agreement and a new contract has not yet been agreed to, the municipal employer would be required by this mandate to pay for its share of any arbitration costs. General Fund appropriations will be required to fund at least 90% of the additional costs, which cannot be determined (the bill does not include a mandate preamble).

LD 2149 An Act to Implement the Recommendations of the Working Group on Motor Vehicle Fines, Enforcement and Reimbursement. (Described in 2/20, 3/13 and 3/20/98 issues of the Legislative Bulletin). This is a very important bill for municipal government. Revenue to the Law Enforcement Agency Reimbursement Fund established in this bill will be generated by transferring 9.5% of traffic infraction fines which will reduce General Fund revenue by $734,103 in FY 98-99. Highway Fund revenue from these fines is not affected by the assessment. The assessment is estimated to reduce General Fund revenue by $800,840 in FY 2000, the first full year of implementation. A portion of the reimbursements are budgeted in the Judicial Department’s General Fund budget.

LD 2163 (new title) An Act Regarding the Responsibility of the State for the Costs of School Employee Record Checks and Fingerprinting and to Require Record Checks and Fingerprinting for Candidates for State Office. Requires the applicant for initial certification, authorization or approval as a teacher or other educational employee to pay for the expenses involved in undergoing fingerprinting and obtaining criminal record checks. The Legislature is required to appropriate money from the General Fund to cover the expenses of obtaining fingerprinting and criminal record checks for renewals of certification, authorization or approval. The Department of Education will require future additional General Fund appropriations estimated to be $362,500 and $275,500 in FY 2000 and FY 2001, respectively, for those expenses. Candidates seeking election to a state office are required to undergo the same criminal background and fingerprint checks as required of education personnel. The additional costs associated with obtaining criminal history record information for candidates for state office can be absorbed by the Department of the Secretary of State within existing budgeted resources. Future costs and increases of dedicated revenue to the Department of Public Safety for conducting fingerprinting and criminal checks for these candidates cannot be determined at this time.

LD 2203 An Act to Create the Maine Economic Opportunity Advisory Committee. (Described in 2/27 issue of Legislative Bulletin). Fiscal note of $2,840 for the per diem and expenses of legislative members and public hearing costs of the Committee. Annual costs of the Committee beginning with FY 2000 and continuing through FY 2007 are estimated to be $3,340.

In Senate debate this week, Senator Peter Mills (Somerset) characterized the retirement plan that LD 2416, An Act to Amend the Laws Concerning Participating Local Districts in the Maine State Retirement System, authorizes for Participating Local Districts (PLDs) as the "Piggy Bank" or "Winnebago" system of retirement savings.

The goal of the bill, as previously described in more depth in the March 13 Bulletin, is to allow public employees in PLDs to enroll in a defined contribution retirement plan instead of the Maine State Retirement System. Employees who do not remain in the state retirement system long enough to be vested need pension portability in order to maximize their retirement savings. Senator Mills offered his perception that it is bad policy to cast people loose without mandating a defined benefit plan because of the potential that the money would be squandered on a Winnebago rather than annuitized to provide life-long income. Senator Mary Cathcart (Penobscot) summarized the testimony in support of the option for employee choice, including the unanimous recommendation of the PLD Advisory Committee. The Senate agreed with the testimony and debate favoring the option and supported choice for public employees by voting 28 to 5 for passage of this bill.

The Labor Committee has proposed major changes to the unemployment compensation system through LD 2230, An Act to Implement the Majority Report Recommendations of the Commission to Study the Unemployment Compensation System. Employers, including municipal employers, are concerned with portions of the proposal that would increase Maine’s taxable wage base to among the highest in the country and provide an array tax schedule that is unclear and the impact of which can not be assessed. The Committee’s minority report may provide for a more comprehensive and permanent strategy for ensuring unemployment fund solvency.

LD 1551, now titled An Act to Amend the Amount of Retainage on Public Building Contracts, has been discussed at some length in previous editions of the Legislative Bulletin (see the January 30th, February 20th, and March 6th editions). The bill is coming out of the State and Local Government Committee with a slim majority "ought to pass as amended" vote.

In summary, the bill would amend the current law that both requires and limits state government (except for DOT) and local government (only with respect to school construction projects that are partially funded by the state) to retain from the general contractor 5% of the cost of construction project pending final acceptance of the completed project.

LD 1551 would amend that simple retainage authority by requiring state construction contracts and local government school contracts to manage the contracts differently. The contracts would be written and administered according to specific line items. With respect to a school building, for example, there would be a line item for the foundation and concrete work, a line item for the erection of the structural steel, etc.

The core element of the retainage proposal that will now be going to the full Legislature is the provision that would require the "owner" of a school construction project to release the retained funds to the general contractor that pertain to each line item in the contract when that line item is completed during the course of the construction project. Furthermore, upon "substantial completion" of the entire project, but before final acceptance, a certain amount of the remaining retained funds would be have to be turned over to the general contractor as well, except for an amount limited to 150% of the identified punch list items and 100% of the identified incomplete items.

From the perspective of local government, that incremental release of retainage has the effect of weakening the essential purpose of retaining a small percentage of the total project; that is, ensuring there is a financial incentive for the general contractor to satisfactorily and completely finish the project. If the retained funds are whittled away during the construction project, there may not be enough left in the account to pay for the construction problems that need to be rectified at the critical final stage of project completion.

Last minute changes to LD 1551 that were moved into the bill by the Committee’s 7-member majority are:

The current retainage law, which does not require any line item management, pertains to state construction contracts that are over $100,000 in value and school construction projects that have some state funding which are over $25,000 in value. The new retainage provisions would apply to those same contracts, but only if they exceeded $1 million in value.

Before being amended by the Committee, LD 1551 specified 7-day and 14-day time frames within which the owner would have to inspect the project to determine if it was substantially complete and prepare the punch list and ascribe value to each punch list item. The requirement for local government to perform according to certain time frames that do not exist in current law raised the question as to whether LD 1551 was a mandate. To avoid the mandate preamble, the finally-amended bill removes those time frames and requires instead that those functions be conducted not later than the next regularly scheduled inspection under the contract.

Municipal and school officials who participate in the oversight of construction contracts should thoroughly review the new retainage and contract management standards that would be implemented with the enactment of LD 1551 and contact their legislators immediately. The Legislature will be taking up LD 1551 within the next few days.

In fragmented sessions squeezed between roll call votes and caucuses this week, the Natural Resources Committee managed to work three complex bills: LD 2262, An Act to Reduce Non-point Source Pollution from Existing Sources, LD 2111, An Act to Reauthorize the Toxics and Hazardous waste Reduction Laws, and LD 2267, An Act to Reduce Mercury Use and Emissions. These goals of these bills were described in more detail in the March 20 Bulletin.

LD 2265. The non-point source bill, with its alternative shoreland expansion provision intact, was largely complete last week but returned to the Committee for final review and vote. The revised bill received unanimous committee support.

LD 2111. The exemption for municipal drinking water and wastewater treatment facilities from the reporting and fee requirements of the toxics reduction program remained in the final version of this bill voted out of committee this week. That exemption applies in the current toxic use reduction statute and was supported by MMA throughout the process. A minority report seeks to extend the current law for one year to allow more time for consideration of the impacts of the program.

LD 2267. With last week’s emotionally-charged testimony on both sides of the mercury deposition issue as a backdrop and an immutable Thursday deadline for completing committee work on the near horizon, the Committee began the task of sorting through the conflicting issues presented by the bill. The Committee was able to craft environmentally acceptable compromises to deal with the HoltraChem mercury problems, while allowing the company to remain economically viable.

The municipal waste recovery facilities offered amendments that sought reductions in the amount of mercury introduced into the waste stream, the most effective way to remove mercury from stack emissions. The two facilities affected by the reduced emissions limits in this bill, Mid-Maine Waste Action Corporation (MMWAC) and Regional Waste Systems, Inc. (RWS), plan to install new carbon injection technology to reduce emissions but will also need public cooperation in sorting and removing mercury-added products from waste sent to the facilities. RWS asked the Committee to use newly- adopted Chapter 121 rules for determining emission limits, rather than the weight limits that are part of the original bill. MMWAC, as a small facility, is not regulated by the Chapter 121 rules and will be subject to the weight limits until allowed to "opt into" the Chapter 121 program. An MMWAC/RWS proposed amendment requires the Land and Water Resource Council to report next year and submit draft legislation concerning:

1) establishment of collection systems for return of mercury-added products to manufacturers for recycling;

2)-labeling of mercury-added products sold at retail, including thermostats, thermometers, electrical devices, batteries and medical or scientific instruments to ensure consumer awareness of mercury content and recycling provisions; and

3) imposition of a fee on the sale of mercury-added products with revenue dedicated to cover the municipal cost of achieving mercury emissions reductions and research and public education.

The Committee responded to information provided by HoltraChem concerning municipal and industrial waste water mercury discharges and to the DEP’s recognition of uncertainty in the accuracy of currently used measurement by directing submission of a report by February 1, 1999. In the report, the DEP will evaluate current discharge of mercury into State waters, effluent testing protocols, and the levels of natural concentrations of mercury in receiving waters.

In the first session of the 118th, the Agriculture, Conservation and Forestry Committee unanimously agreed to carryover into the second session any bill that could possibility impact the November 1997 Forestry Compact referendum. Due to the failure of the referendum, the Committee in the second session worked the dozens of forestry-related carryover bills and reported out three revised bills. The most comprehensive of which is LD 2286, a forestry measure that approaches the sustainability of Maine’s forests incrementally.

LD 1746 An Act to Amend the Laws Relating to Development and Centralized Listing of Municipal Ordinances that Apply to Forest Practices. This bill: 1) requires municipalities to notify by mail all landowners whose land is in or abuts a zone or district affected by a proposed timber harvesting ordinance or proposed amendment to a timber-harvesting ordinance at least 14 days prior to a public hearing; 2) requires municipalities to meet with representatives of Department of Conservation when working on an amendment or developing a new timber harvesting ordinance; 3) requires that representatives of the Department of Conservation be given an opportunity at the public hearing to present information that relates to the proposed ordinance or amendments; 4) states that municipal ordinances may not be "unreasonable, arbitrary or capricious and must employ means appropriate to the protection of public health, safety and welfare"; and 5) requires the Department of Conservation to pay municipalities for costs associated with landowner notification and public notice requirements and for costs associated with the amendment of certain ordinances adopted before 9/1/90 mandated by this legislation to come into definitional compliance.

LD 1746 has been given all but final approval in the House and Senate and is currently on the Special Appropriations Table with a fiscal note of $10,000 for FY 99 to reflect the state funds necessary to cover the mandate of this law.

LD 1405 An Act to License Timber Harvesters and Deter Timber Trespass. Among other changes, this bill requires municipalities to be notified prior to the commencement of harvesting operations within the municipality. The harvesters would be required to file notice with the Maine Forest Service who would in turn notify the municipality of harvesting activity.

LD 1405 has been passed to be engrossed by both the House and the Senate.

LD 2286 An Act to Implement the Recommendations of the Majority of the Joint Standing Committee on Agriculture, Conservation and Forestry Regarding Enhancing Forest Resource Assessment. This bill: 1) grants rulemaking authority to the Commissioner of Conservation to implement the forest practices laws; 2) redefines a clear-cut as a residual basal area of less than 30 square feet of trees over to 4.5 inches dbh, which is down from 6 inches dbh, but the one inch dbh standard is repealed; 3) defines the term "parcel" to mean a contiguous tract or plot of forest land; 4) requires a 250 ft. separation zone between clear-cut areas: 5) changes the requirement for a forest management plan for a clear-cut from 50 to 35 acres; 6) directs the Bureau of Forestry to establish a process to assess forest sustainability including the development of standards in soil productivity; water quality; timber supply; aesthetic impacts of timber harvesting; biological diversity; public accountability; and traditional recreation; 7) requires the Bureau of Forestry to publish an annual report summarizing clear-cutting activities; 8) requires a biennial report on the State’s forests; and 9) requires the Bureau of Forestry to publish stumpage prices annually rather than semiannually.

LD 2286 was passed to be engrossed, without amendment, by the House on Tuesday, March 24 and sent to the Senate. On Thursday, March 26 the Senate voted to amend LD 2286 and sent the bill to the House for concurrence. The amendment proposed by Senator Vin Cassidy (Washington) changes the original bill to include a 75-acre clear-cut limit on a landowner who owns more that 500 acres. The amendment provides the Commissioner of Conservation authority to grant an exemption of the 75-acre limit if a natural disturbance (fire, insect infestation, disease, etc.) necessitates a larger clear-cut. Senator Cassidy’s amendment also requires the Department of Conservation to hold 14 seminars per year throughout the state to educate landowners, harvesters and the general public on sustainable forest practices.

The following is a partial list of bills of particular municipal interest that have been finally addressed by the Legislature.

LD 1972 An Act to Implement the Recommendations of the Interagency Committee on Outdoor Trash Burning. Enacted in House and Senate (described in 3/6/98 issue of Legislative Bulletin).

LD 2069 An Act to Improve Public Health Protection Against Rabies Infection. Enacted in House and Senate described in 2/27/98 issue of Legislative Bulletin).

LD 2082 An Act to Improve the Integrity of the Citizen Initiative Process. Enacted in House and Senate (described in 3/13/98 issue of Legislative Bulletin).

LD 2195 An Act Concerning Enforcement of Parking Spaces for Persons with Physical Disabilities. Enacted in House and Senate (described in 3/13/98 issue of Legislative Bulletin).

LD 2202 An Act Regarding Veterans’ Benefits. Final Ought Not to Pass.

LD 2238 An Act to Create the Kennebec Regional Development Authority. Emergency enacted in

House and Senate (described in 3/13/98 issue of Legislative Bulletin).

LD 2239 An Act to Amend the Law Concerning Tax Base Sharing. Enacted in House and Senate.

LD 2263 An Act to Allow a Municipality to Request a Joint check from the Maine Residents Property Tax Program in the Event of Nonpayment of Taxes. Final Ought Not to Pass.