Impact_2021-05-27

The latest edition of our Impact newsletter is now available!

Weekly edition of IMPACT, a publication of the Maine State Chamber of Commerce | May 27, 2021

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Employment-at-Will Update:

Labor committee reconsiders LD 553, but fails to improve it

Citing his party’s need to make “structural reforms” in this legislative session, including the issue of ending “at-will” employment in Maine, Labor and Housing Senate Chair Sen. Craig Hickman (D-Kennebec) led the effort to reconsider LD 553, An Act to End Employment at Will, sponsored by Rep. Michael Sylvester (D-Portland), in what is likely to be the committee’s final work session on Wednesday, May 26.

Tax committee votes “ought to pass as amended” on water tax bill to study issue

On Tuesday, May 25, the Joint Standing Committee on Taxation voted 7-5 along party lines “ought-to-pass as amended” on LD 1569, An Act Regarding an Excise Tax on Water Extracted for Commercial Bottling. Sponsored by Rep. Lori Gramlich (D-Old Orchard Beach), the bill as amended would turn the bill into a resolve and initiate a study of imposing a tax on water extracted for commercial bottling use. Committee discussion indicated that the presiding officers would convene the legislative study, although no definitive parameters were discussed. Republicans on the committee voted “ought not to pass” on LD 1569 as amended, while Democrats supported the proposed study. The bill proposes a 5-cent per gallon excise tax on water extracted for commercial bottling use. The Maine State Chamber testified in strong opposition to the bill last week. If you have any questions, please contact Linda Caprara by calling (207) 623-4568, ext. 106, or by emailing [email protected].

Labor committee approves extensive unemployment insurance changes

All of them are without business input and will increase UI taxes

Maine’s current Unemployment Insurance (UI) Trust fund, and its overall insurance system in place today, were shaped by reforms put in place nearly 20 years ago. These reforms included, among other things, an increase in the amount of the taxable wage base, the adoption of the “array system” of taxation used in Maine, our benefit structure, and the adoption of a cap on the total amount of trust fund reserves. Getting to a place where these reforms could be adopted and accepted by the business community was not easy – in fact, it took nearly two years and two stakeholder groups to reach a compromise. However, a compromise was reached because legislators and the administration took the time to involve all impacted parties in the discussions and drafting of the bill.

Democrats on Judiciary committee vote ‘no’ on safe harbor bill, which would protect Maine businesses, municipalities, non-profits, and educational institutions during the COVID-19 pandemic

Sponsor’s request to carry the bill over was denied

On Thursday, May 27, members of the Joint Standing Committee on Judiciary held a work session on LD 1403, An Act to Protect Maine Businesses, Non-Profits, Educational Institutions and Municipalities During COVID-19 Pandemic. The Maine State Chamber testified in strong support of the bill, which would have provided liability protections for the above entities for exposure from COVID-19 lawsuits. Sen. Anne Carney, Rep. Lois Reckitt, Sen. Heather Sanborn, Rep. Erin Sheehan, Rep. Jeff Evangelos, Rep. Chris Babbidge, and Rep. Jay McCreight all voted “ought not to pass.” Sen. Lisa Keim, Rep. David Haggan, and Rep. Jennifer Poirier voted “ought to pass as amended” and wanted to carry-over the bill.

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LD 1712 seeks to create greater access to quality early childcare and education through community-based hubs

On May 26, the Joint Standing Committee on Health and Human Services held a work session on LD 1712, An Act To Support Children's Healthy Development and School Success. This bill, sponsored by Senate President Jackson (D-Aroostook), aims to create greater access to quality early childcare and education through community-based hubs. These hubs aim to increase the accessibility to services, as well as guide families through an assessment of their needs, navigating them toward the most appropriate services. Part of the care hub’s ability to generate greater access is through the decentralization of services and community-based support.

Reimagining higher education to help ensure a bright economic future for Maine

To power a vibrant economy, inclusive education and workforce investments and strong partnerships are critical

Editor’s Note: This May 25 “Maine Voices” Special to the Portland Press Herald was published by Maine State Chamber board chair Clif Greim, P.E., president of Frosty Hill Consulting. We are sharing it with you here for your review and consideration.

As Maine emerges from the coronavirus pandemic, our state’s business, education and civic leaders are grappling daily with how to make the right decisions to ensure future health and economic prosperity. From my vantage point, informed by roles in both business and education, it is clear that education is one of the most important investments Maine can make for the future of our people and our collective economic recovery.

Maine State Chamber’s Simon West selected for U.S. Chamber Foundation’s Education and Workforce Fellowship program

Fellowship provides state and local business leaders with opportunities to engage nationally on critical education and workforce issues

Simon West, government relations specialist at the Maine State Chamber of Commerce, has been selected by the U.S. Chamber of Commerce Foundation to participate in the fifth cohort of its premiere business leadership program. The Business Leads Fellowship Program trains and equips leaders from state and local chambers of commerce, economic development agencies, and trade associations with resources, access to experts, and a network of peers to build their capacity to address the most pressing education and workforce challenges.

Maine Jobs and Recovery Plan helps small businesses and employees afford health insurance

Governor Mills visits Coffee By Design to promote proposal providing financial relief for small businesses and workers

During a May 27 visit to Coffee by Design in Portland, Governor Janet Mills highlighted her proposal through the Maine Jobs & Recovery Plan to help Maine small businesses afford the cost of health insurance for their employees.

Governor Mills, Treasurer Beck announce Moody’s and S&P affirm Maine’s strong credit rating

Affirmation of Maine’s credit ratings come as other states struggle to mitigate the economic impacts of COVID-19

On May 24, Governor Janet Mills and State Treasurer Henry Beck announced that Moody’s Investors Service and S&P Global Ratings, global companies that analyze and issue reports of credit worthiness, have affirmed their strong credit ratings and stable outlooks on the State of Maine’s general obligation debt. Moody’s affirmed both their Aa2 rating and stable outlook while S&P affirmed their AA rating and stable outlook.

DHS to Issue Additional H-2B Visas That Will Support Maine’s Tourism Industry

Small businesses can begin applying for the 22,000 supplemental visas on Tuesday, May 25

Following a push spearheaded by U.S. Senators Susan Collins (R-ME) and Angus King (I-ME) and Representative Chellie Pingree (D-ME), the Department of Homeland Security (DHS) and the Department of Labor (DOL) issued a joint rule on Friday, May 21 making available an additional 22,000 H-2B visas that will help small businesses fill seasonal job openings. Qualifying employers can begin applying on May 25. These visas will supplement the previous supply of 33,000 H-2B visas for the second half of the current fiscal year, all of which have been claimed.

To read more, click on the links above.

Relief for Maine H-2B Employers:

U.S. DOL, DHS release 22,000 H-2B visas nationally for returning foreign workers

In a May 25 news release the Maine Department of Labor announced that Maine employers who are already certified by the U.S. Department of Labor now have another chance to apply for H-2B, or nonagricultural nonimmigrant temporary worker visas. The Secretary of Homeland Security has decided, after consultation with Secretary of the U.S. Department of Labor, to increase the H-2B cap for FY 2021 by up to 22,000 additional visas.