AUGUSTA, Maine (December 4, 2024) – The Maine State Chamber of Commerce expressed continued concerns about the final Paid Family and Medical Leave (PFML) program rules the Maine Department of Labor (MDOL) announced today. Specifically, the Chamber is concerned that the compressed legislative timeline to meet the statutory deadline for implementation is challenging for employers and may undermine the program's successful rollout. The Chamber continues to believe that subjecting payroll taxes on employers and employees that do not intend to use the state system is inconsistent with the state statute and with other states’ PFML programs. “The Maine State Chamber recognizes the Maine Department of Labor is operating against an extremely tight timeline to meet the state PFML program law’s January 1, 2025, implementation deadline, and we appreciate MDOL’s diligence and efforts over the last several months,” said Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce. “Maine’s PFML program is arguably the most significant regulatory initiative in decades, is extremely complex, and the Maine State Chamber and employers across the state are concerned that the tight 3–4-week timeline for implementation will impact the program rollout’s success, and that employers that will opt in to a substantially equivalent private plan are required to contribute to a program they will never use.” The Chamber notes that several states, including Maryland, Oregon, and Delaware, have revised their PFML implementation timelines to ensure their programs are launched effectively. Maryland, for instance, adjusted its timeline, with contributions now beginning in July 2025 and benefits starting in July 2026. Similarly, Oregon faced delays, pushing the benefits availability date from January 2023 to September 2023. Delaware has also extended its contribution start date from a prior date to January 2025, with benefits scheduled for January 2026. “Ultimately, the DOL should have the flexibility to implement the program unhindered by arbitrary statutory deadlines and on a timeline that works for employees, employers and ultimately the administrator of the State program,” said Woodcock. Maine businesses have consistently raised concerns regarding the taxation requirement for companies that will opt in to a substantially equivalent private plan from the onset and do not intend to use the state system. Forcing these businesses to contribute to the state fund—even temporarily—is viewed as inconsistent with statute's intent. Comments from the Maine State Chamber argued this provision is unconstitutional. Specifically, the rule amounts to an unconstitutional taking without just compensation, violates the equal protection clause of the Constitution, and violates the due process clause of the Constitution. Woodcock added, “The Maine State Chamber of Commerce urges policymakers to consider adjustments to the PFML program timeline and to remove the tax on employees and employer under existing PFML that will never utilize the state system. Maine’s PFML program should be executed in a manner to ensure an effective implementation. By addressing these concerns now, at the beginning of this upcoming legislative session, Maine can develop a successful PFML program that supports employees while minimizing unintended consequences for employers.” The Maine State Chamber has expressed its concerns and recommendations surrounding Maine’s PFML program with the goal of making Maine’s PFML program more workable for employers and employees throughout the legislative and rulemaking process, including in July 2024 and August 2024. For more information on the Maine State Chamber’s recommendations to MDOL on the proposed PFML rules, please see the Chamber’s June 10, 2024, public hearing testimony before MDOL and a recording of the Maine State Chamber’s June 6, 2024 roundtable with businesses. ###
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Proposed rule is causing concern among businesses; partners urge predictability, greater alignment with other states AUGUSTA, Maine (Monday, December 2, 2024) – The Maine State Chamber of Commerce and five other business associations delivered a letter to Governor Janet T. Mills today outlining concerns over the proposed Chapter 428: Stewardship Program for Packaging rule that is being considered by Maine’s Board of Environmental Protection (BEP). In advance of a BEP meeting this Thursday, December 5, 2024, the letter to Gov. Mills highlights significant challenges with the proposed rule, including the unknown cost to producers, new recycling access goals, and a structure that diverges from the four other states that have enacted Extended Producer Responsibility (EPR) packaging laws. Current EPR packaging law rulemaking continues following the Maine Legislature passing L.D. 1541, An Act to Support and Improve Municipal Recycling Programs and Save Taxpayer Money in July 2021. The law established the Stewardship Program for Packaging to reduce the volume of packaging material, increase recyclability, and was intended to save municipalities money by requiring producers to cover the cost of managing packaging material. While the law provided a broad framework for the program, the Maine BEP is now considering adoption of the Chapter 428 proposed rule, drafted by the Maine Department of Environmental Protection, which provides specific details on how the program will be operated, reporting requirements, payment structures, goals, and compliance enforcement. “Over the last several months, the Maine State Chamber has heard from members who are currently budgeting for 2026, but the unknown cost of this program is creating significant uncertainty,” said Patrick Woodcock, President and CEO of the Maine State Chamber of Commerce. “Maine should consider alignment with other states that are implementing the extended producer responsibility programs with clear cost controls and with additional flexibility for producers while maintaining the program’s worthy requirement of reducing waste.” The Maine State Chamber is committed to supporting effective environmental stewardship, and urges policies that are fair, predictable, and conducive to Maine’s economic growth. Among concerns outlined by signers of the letter to Gov. Mills is that the cost to be covered by businesses if recycling performance goals are unmet will significantly increase the cost of the program. In addition to outlining concerns with the proposed rule, the letter urges Gov. Mills to ask for a pause in adoption so adjustments to the rule can be made that provide for greater alignment with other states and strike a balance between environmental goals and economic sustainability. On Friday, November 29, 2024, the Maine Department of Environmental Protection emailed a public meeting and hearing notice that the BEP will meet on Chapter 428 and other issues beginning at 9:00 a.m. (ET) on Thursday, December 5, 2024. BEP will accept in-person public comment at the meeting. Organizations that signed the letter to Gov. Mills are the Maine State Chamber of Commerce, American Institute for Packaging and the Environment (AMERIPEN), Consumer Brands Association, Maine Grocers and Food Producers Association, Hospitality Maine, and the Retail Association of Maine, whose CEO authored an opinion column - Maine must take a balanced approach to packaging law - that was published in the Portland Press Herald today, Monday, December 2, 2024. ###
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