127th Maine State Legislature - A Year in Review

Dear MGFPA Member,

The Maine Grocers & Food Producers Association is a community dedicated to the prosperity of Maine’s grocery and food producer industry through excellence in advocacy, networking and education.

The 127th Legislative Summary – A Year in Review captures the work we do on your behalf at the Statehouse. The return on your investment is estimated to be several million dollars.

We are very proud of our work keeping our promise to represent your interests through positive working relationships with the Legislature, the LePage Administration and industry partners. We have a strategic focus targeting issues of the highest importance to the membership and we build coalitions to amplify our message. We thank you for your on-going support and engagement.

A Year in Review highlights New Laws, Failed and Carry Over proposals. All New Laws become effective on October 15 unless they were “emergency measures” in which case they are now in effect. All Carry Over proposals will be sent back to the Joint Standing Committees for further consideration in January 2016. As always, visit mgfpa.org and click on Legislative Watch for detailed information.

Thank you to the many members who engaged in the process through email, calls, testimony and meetings with Governor LePage, administrators and Legislators, and thank you to the members of the MGFPA Government Relations Committee for their outstanding contributions. There is nothing more of value than a business owner telling their story.

Currently, we’re engaged in or are monitoring a list of issues and urge you to let us know if something pops up in your community. The deadline for submitting legislative proposals is September 25th. If there are areas of interest, please let me know.

• Houlton to consider allowing beer and wine to be sold on Sundays.• Bangor and Augusta are discussing a minimum wage rate increase.• Maine People’s Alliance is gathering signatures for a statewide referendum to increase the state’s minimum

wage to $12.00 by 2020.• Freeport, Yarmouth, York, and South Portland are considering fees on paper and plastic check out bags and

bans on polystyrene food service containers. • Maine Milk Commission is considering increasing dairy farmer margins which may lead to higher retail

milk prices.• Congress is taking a hard look at eligible foods under the SNAP (food stamps) Program. • Congress is considering GMO labeling legislation. • Grocery Manufacturers Association suit against the State of Vermont’s GMO labeling law is pending.

I would like to also recognize MGFPA members that serve in the Legislature who were most helpful this session. Senator Amy Volk, Scarborough, Volk Packaging, Representative Jeff Timberlake, Turner, Ricker Hill Farms and Representative Gary Sukeforth, Appleton, The Common Market in Union. If you have a chance to say hello to your State Senator or Representative, please thank them for their service and for their support of your business. As always, please stay engaged by calling the office at 207.622.4461, by email to info@mgfpa.org, or through the mgfpa.org website.

Be well and enjoy the rest of summer,

Shelley F. Doak, Executive Director

Successes That Save You Time & Money

•FoodSafetyRegulationsUpheld •OrganizedRetailCrimeClassifiedinMainelaw•BETRProgramFullyFunded •NOWorkers’BillofRightsMandates•Beer,Wine&SpiritsMarketSharetoExpand •LiquorDistribution&SalesHoursExtended•TechnologyUpgradesatBABLO •TenantBrewersGainOpportunities•NOProductFeesorProductBans •PharmacistsVaccinationAuthorityExpanded

LD 1019, An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2016 and June 30, 2017

The State’s biennial budget took center stage this session as it typically does. Butthisyearthereasonwasn’tabouthowtofillabudgetgap(wecanallbehappy about that), but rather Governor LePage’s ambitious $6.7 billion tax reform proposal that would lower the state’s income tax from 7.9% to 5.75%, lower the corporate rate, conform the estate tax to federal levels, eliminate revenue sharing, and increase and broaden the state sales tax rates. It also called for a number of spending increases; a masterful treasure trove leaving DemocratsandmoderateRepublicansquietlysupportiveofmuchoftheproposal. Conservative Republicans, on the other hand, expressed their opposition setting up for a long and arduous and often ugly session. The Governor’s proposal recommended spending increases, including keeping the 5.5% sales tax rate, broadening and expanding the sales tax on

a very long list of personal services, amusements, and prepared foods (aka the “snack tax”). The list of spendingreductionsincludedeliminatingretailfromtheBusinessEquipmentTaxReimbursement(BETR)Program, municipal revenue sharing saving taxpayers $62.5 million, and tax reform that would gradually eliminate the state income tax and lower corporate taxes. It was crafty and strategic, but it was not to be. The state’s two-year $6.7 billion budget was wrestled away from the Governor by four Legislative leaderswhohammeredoutasmoky-back-roombudgetproposalinthefinaldaysofthesession.Overtheobjection of the Governor, who by hand exercised the line item veto, vetoing some 64 expenditures and thentheentirebudget,finallypassedwitha2/3majority;theend.TheGovernor’spushtoeliminatethestate’s income tax was only slightly met, but at the expense of grocery shoppers who will see an expanded sales tax on prepared foods. This expansion was initiated by the Governor and had cross the aisle support. Maine Revenue Services is expected to issue an updated Sales Tax Bulletin prior to the January 1, 2016 effective date. Below are budget highlights; please note effective dates.

Income Tax Reductions • Expands the number of rate brackets and amends when they kick in. For joint returns:• Rate of 5.8% up to $42,100 in taxable income• Rate of 6.75% from $42,100 to $100,000• Rate of 7.15% (compared to current high rate of 7.95%) above $100,000• Makes the state EITC refundable • Eliminates state income tax on military pensions

Sales Tax • Rate for most goods remains at 5.5%• Rate on meals remains at 8%• Rate on lodging increased to 9%• Rate expanded to include additional prepared foods, remains at 8%

Estate Tax Exemption Raised - Effective after January 1, 2016, conforms to federal estate tax level of $5.5 million

Homestead Exemption – Increased for all taxpayers from $10,000 to $15,000 for property tax years beginning on April 1, 2016 and to $20,000 for tax year 2017.

Refundable Sales Tax Fairness Credit - $125 for individuals and up to $225 for families. Phased out as income increases above $20,000 for individuals and $40,000 for families.

BETE/BETR–Fullyfunded.BusinessesparticipatingintheBETRprogramsawcutsin2013and2014.Byfully funding the program, $14 million more is available to our members.

Municipal Revenue Sharing & School Funding- Flat funded at $62.5 million per year. GPA is $40 million per year.

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Biennial Budget – July 1, 2015-June 30, 2017 & Tax Reform

Carry Over

One of the more complex and controversial proposals of the session was LD 1099 to add a $.20 fee on household consumer products, an estimated 10,000 products, to raise funds to support research at the University of Maine. The University’s intention has merit as they begin to develop in-state testing capacity for Lyme disease and other vector borne diseases. In November 2014, voters approved an $8 million bond proposal to fund an Animal and Plant Health & Insect Control Laboratory.

With support from both sides of the aisle and an apparent “bye” from the Governor who indicated he wouldn’t veto the bill, retailers headed to their phones and computerstopersuadelawmakerstochangetheirminds;findfundinginthestate’sgeneral fund and vote down the bill. It wasn’t until the very last day of the session thatlawmakers,whostruggledtofindfunding,agreedtocarrythebilloverinhopesof identifying funding to support the University’s research efforts. No one is arguing against the merits of the bill, just how it would be funded. We understand that it might costtheUniversity$300,000torampupitstestingcapabilities,whereasthe$.20feeisestimatedtoraise$3million.We’reextremelyconcernedabouttheprecedentoftaxingproductsasameansoffundingaUniversity of Maine function. The 127th Legislature will tackle the issue in January.

• LD 1099, An Act To Establish a Fund for the Operations and Outreach Activities of the University of Maine Cooperative Extension Animal and Plant Disease and Insect Control Laboratory, Representative Russell Black

New Laws

LD511andLD364wereworkedinconjunctionbutarenuancedintheirpermission.LD511providesthatalicensedsalesrepresentativemayprovidespiritsforatastetestingaagencyliquorstore,aslongasthatproduct is purchased at the regular retail price from the agency store.

Effectiveimmediately,LD364permitsalicensedsalesrepresentativetopoursamplesofspirits,wineormaltliquoratataste-testingeventaton-premiseretailestablishments,agencyliquorstoresoratoff-premise retail establishments. • LD 364, An Act To Allow a Sales Representative To Serve Spirits or Wine at a Tasting Event, Representative

Richard Malaby, Hancock• LD 511, An Act To Permit a Licensed Sales Representative To Provide Spirits at an Approved Tasting Event,

Representative Sara Gideon, Freeport

Thereare500agencyliquorstoresinMaine,andthisnumbermaylikelyincreaseaslawmakersagreedtoallowtheBureauofAlcoholicBeveragesandLotteryOperations(BABLO)toissueoneadditionalliquorstore license in a municipality with a population of less than 10,000. In addition, the bureau may license upto10agencyliquorstoresinamunicipalitywithapopulationover45,000(downfrom50,000);upto9agencyliquorstoresinamunicipalitywithapopulationover30,000butlessthan45,001,andupto8agencyliquorstoresinamunicipalitywithapopulationover20,000butlessthan30,001.

• LD 508, An Act To Amend the Laws Governing the Number of Agency Liquor Stores Allowed in a Municipality, Representative Peter Lyford, Eddington

• LD 779, An Act To Increase the Minimum Population Requirement for a Municipality in Which the Bureau of Alcoholic Beverages and Lottery Operations May Locate an Additional Agency Liquor Store, Senator Roger Katz, Kennebec County

Good news for distributors, retailers and consumers. Spirits may now be delivered and offered for sale seven days a week beginning at 5:00 a.m., thereby eliminating any confusion in the marketplace.

Breweries, wineries and hard cider producers may now lease their facilities to up to nine different breweries, and restaurants may offer complimentary samples of wine, beer, and spirits to age eligible customers – good news for our members interested in expanding their product market share.

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Taxes

Alcoholic Beverages & Agency Liquor Stores

The University of Maine Cooperative Extension provides assistance to food producers including breweriesandproposedLD935topermitthemtobelicensedtoassistfledglingmanufactures of beer, wine, and spirits. The Veterans & Legal Affairs (VLA) Committee voted in favor of a $100 limited manufacturing license that does not permit the University to sell products directly to consumers.

Maine lawmakers followed a number of other state legislatures in prohibiting the production, possession and sale of powdered alcohol.

InterestinwineauctionsgainedabitofgroundwiththepassageofLD983,which sets up guidelines for tightly controlled auctions.

Finally,lawsgoverningbeer,wineandspiritsdonationsto501(c)(3)organizationswererelaxedmakingiteasiertomakespecificproductdonations.

• LD 684, An Act To Amend the Authorized Hours During Which Liquor May Be Sold and Purchased, Representative Jonathan Kinney, Limington

• LD 616, An Act Regarding the Sale of Hard Cider, MGFPA Member Representative Jeffrey Timberlake, Turner

• LD 102, An Act To Strengthen the Craft Beer Industry, Senator Justin Alfond, Portland • LD 761, An Act To Authorize Free Samples of Wine by a Restaurant, Representative Ken Fredette, Newport• LD 935, An Act Regarding Alcohol Manufacturing Licenses Issued to Research Facilities, Senator Jim Dill,

Penobscot County• LD 1176, An Act To Prohibit the Sale and Possession of Powdered Alcohol in the State, Representative Michael

Devin, Newcastle• LD 983, Ac Act To Clarify Wine Auction Licenses, Senator John Patrick, Oxford County• LD 1197 An Act To Allow Certificate of Approval Holders under the Liquor Licensing Laws To Donate Alcohol to

Nonprofit Organizations, Senator Tom Saviello, Franklin County

Failed

The VLA Committee voted down three measures that would have relaxed laws governing “growlers,” and twoproposalsthatwouldhavemodifiedtaximplicationsandproductingredientsfordistilleries.Theyalsovotedagainstpermittingseasonalagencyliquorstorelicenses.

• LD 510, An Act To Increase the Number of Container Options for Breweries, Representative Sue Austin, Gray• LD 678, An Act Concerning the Ability of On-premises Liquor Licensees To Dispense Liquor in Sealed Refillable

Containers, Representative Justin Chenette, Saco• LD 1083, An Act To Facilitate the Use of Half-gallon Containers for Malt Liquor at Maine Brew Pubs,

Representative Jeff McCabe, Skowhegan• LD 777, An Act To Establish a Seasonal Agency Liquor License, Representative Louis Luchini, Ellsworth• LD 923, An Act To Create Jobs and Increase Consumer Wine Choice, Representative Sarah Gideon, Freeport• LD 986, An Act To Streamline Certain Regulations on Small Distilleries, Representative Henry Beck, Waterville• LD 1183, An Act To Strengthen the Craft Distillery Industry in Maine, Representative Nathan Wadsworth, Hiram

Carry Over

LD1331passed,butgivenits$700,000pricetagtofund5newinspectors,itwascarriedover.MGFPAisinfavor of increasing BABLO’s enforcement capabilities, but the Administration didn’t testify in favor of the bill, likely due to the large price tag. Looking ahead, the MGFPA has had preliminary discussions with the Administration about the possibility of modernizing the laws governing alcoholic beverages. The process knownas“recodification”requirespatience,timeandcommitmentfromtheAdministration,Legislatureand the regulated community. The outcome is to enhance the laws to be responsive to a changing marketplace thereby reducing the need for legislative corrective action year after year.

• LD 1331, An Act To Provide Enhanced Enforcement of the Laws Governing Alcoholic Beverage, Representative Louis Luchini, Ellsworth

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New Laws

MGFPAstoreownersandoperatorsralliedinsupportofLD310sponsoredbyMGFPA member Senator Amy Volk, Cumberland County,toestablishauniquesectioninthecriminalcodetoaddressOrganizedRetail Crime. A violation is a Class C crime if the person commits 2 or more thefts of retail merchandise, either as a principal or an accomplice, pursuant to a scheme or course of conduct engaged in by 2 or more persons involving thefts from 2 or more retail stores for the purpose of selling the stolen merchandise or conducting fraudulent returns of the stolen merchandise. MGFPA was part of a coalition advocating for this for a number of years. This is a huge win and we thank all our members who submitted testimony.

In other business related legislation, the Maine Department of Environmental ProtectionwillnowtakechargeofMaine’s30yearoldbeveragecontainerlaws(“bottlelaws”). We are monitoring the transition from the Department of Agriculture, Conservation & Forestry.

TheLabor,Commerce,ResearchandEconomicDevelopmentCommittee(LCRED)seemedunifiedintheir interest in supporting victims of domestic violence however they were split on how to improve “leave” time for victims as provided in LD 921. The Republican’s voted to pass an amended bill that would bump up penalties for employers who violated the law, while the Democrat’s voted in favor of allowing the employee a private right of action against an employer who failed to permit leave. In the end, the Republicanproposalwasenacted,butitwasfurthermodifiedbytheAppropriationsCommitteetodisallowemployers from seeking individual social media passwords from current and prospective employees. Thanks to the efforts of the pharmacy coalition, Maine pharmacists will now be able to vaccinate children forinfluenzaovertheageof7.

• LD 310, An Act To Prevent Organized Retail Crime, MGFPA Member Senator Amy Volk, Cumberland County

• LD 921, An Act To Strengthen the Right of a Victim of Sexual Assault or Domestic Violence To Take Necessary Leave from Employment and To Promote Employee Social Media Privacy, Representative Matthea Daughtry, Brunswick

• LD 1366, An Act To Promote Recycling Program Integration and Efficiencies, Senator Tom Saviello, Franklin County

• LD 1218, An Act Regarding the Administration of Vaccines by Pharmacists, Representative Bob Nutting, Oakland

Failed

Interestinilluminatingthepresenceoftoxicchemicalsincertainconsumerproductsand/orbanningthem continues to gain interest, but lawmakers this session were focused on building consensus. The Environment&NaturalResourcesCommittee(ENR)workedtirelesslytofindbalancedsolutionsandultimately voted to allow Maine’s Kid Safe Products Act to go unchanged by rejecting LD 948 and LD 1165. Maineisunique,havingitsownlawsgoverningusageandreportingofchemicalsofconcern,whichwerebrokered by all interested parties.

The ENR Committee listened with intention, but submitted a minority report of Ought Not To Pass on LD 468thatwouldhavebannedpolystyrenefoodservicepackaging.TheyalsovoteddownLD397thatwouldhaverequiredexcessivelabelingofdisposablecleaningandpersonalhygieneproducts.

• LD 397, An Act Regarding the Packaging and Labeling of Disposable Cleaning and Personal Hygiene Products, Representative Janice Cooper, Yarmouth

• LD 468, An Act To Prohibit the Use of Certain Disposable or Polystyrene Food Service Containers, Representative Christine Berstein, Lincolnville

• LD 948, An Act To Harmonize Maine’s Laws Governing Toxic Chemicals in Children’s Products with Those of Other States, Representative Sara Gideon, Freeport

• LD 1165, An Act To Enact the Toxic Chemicals in the Workplace Act, Representative Adam Goode, Bangor

The Criminal Justice Committee (CJ) voted down increasing penalties for writing bad checks. MGFPA has supported previous bills seeking to assist grocers, but the Committee didn’t accept the notion that

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Work Place, Pharmacy & Environmental

increasingfineswouldleadtomoreprosecutions.Therealchallengeseemstobewithinconsistentpractices among District Attorneys. • LD 577, An Act To Amend the Laws Governing Penalties for Writing Bad Checks, Representative John Picchiotti,

Fairfield

Overtheyears,Maine’s“bluelaws”havebeenmodifiedonanumberofoccasions,buttherewasnointerestinallowinggrocerystoreswithlessthan10,000squarefeetofinteriorselling space to be open on Easter Day, Thanksgiving Day and Christmas Day. While MGFPA members are split on this issue, we attempted to broker a compromise, but Democrats on the LCRED Committee and in the House of Representatives voiced their opposition to making any changes to the law. • LD 613, An Act To Allow Certain Businesses To Be Open on Easter Day,

Thanksgiving Day and Christmas Day, Representative Peter Lyford, Eddington

• LD 855, An Act To Allow Grocery Stores under 10,000 Square Feet To Be Open on Sundays, Representative James Gillway, Searsport

Maine pharmacies found themselves once again fending off another proposal, LD 1422, to allow individuals to import prescription drugs from outside the US. You may recall that in 2012, it was found that certain state employees were importing drugs into Maine from Canadian companies. In response, the Retail Association of Maine and the Maine Pharmacy Association asked the Board of Pharmacy whether this was inviolationofstatelaw.Thenin2013,LD171wasintroducedtopermittheimportationofprescriptiondrugs from any place outside the US which ultimately became law without the Governor’s signature.

Thatsameyear,thepharmacycoalitionquestionedwhetherthepermissivelawinLD171wasunconstitutionalandwasplaintiffinalawsuitfiledinFederalCourt.InFebruary2015,FederalDistrictJudge Nancy Torresen ruled that the federal government alone has jurisdiction over importation and any attempt to permit the importation of prescription drugs would be in violation of the US Constitution Supremacy Clause and would be unconstitutional. This ruling didn’t stop Representative Martin from submitting LD 1422, an after deadline bill, that ultimately failed.

• LD 1422, An Act To Allow Maine Residents To Personally Import Medications as Permitted under the Federal Food, Drug, and Cosmetic Act, Representative John Martin, Eagle Lake

Workers’ Compensation laws remain intact, in spite of several bills that would have pitted employers againstemployees.LD188wouldhaveaddedanewprotectiveclassificationundertheworkers’compensationlawsonceagainredefiningcompensableinjuries;itwasrejected.Changestounemploymentpracticeswerealsothwarteddisallowinganemployeefrom“doubledipping”byfirstrequiringthemtouseuptheirunusedvacationpaybeforetheirunemploymentbenefitskickin.Stillanotherbillwasdefeatedthat would have allowed an employee who was terminated while out on sick leave to have their full sick leave reinstated.

• LD 81, An Act To Amend the Workers’ Compensation Laws as They Pertain to Employee Representation, Senator John Patrick, Oxford

• LD 675, An Act To Protect Earned Pay, Representative Erin Herbig, Belfast• LD 1324, An Act To Create Transparency with Regard to Large Employers in the State with Workforce Members

Who Receive Public Benefits, Representative Jeff McCabe, Skowhegan • LD 445, An Act Regarding the Sick Days of an Employee Who Is Terminated While on Sick Leave, Senator

Woodsome, York

There was not enough support to modify the work permit status for minors, nor was there enough interest in allowing the Department of Labor to establish a model business drug testing program.

• LD 1201, An Act To Standardize and Simplify the Process for Employers To Have a Drug-free Workplace Policy, Senator Andre Cushing, Penobscot

• LD 1393, An Act Regarding the Work Permitting Process for Minors, Representative Joel Stetkis, Canaan• LD 188, An Act To Protect Employees from Abusive Work Environments, Senator John Patrick, Oxford

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Carry Over

• LD 427, An Act To Address and Mitigate the Effects of Marine Debris, Representative Michael Devin, Newcastle This concept draft received supportive testimony in favor of eliminating plastic from the waste stream including plastic bags. This may, once again, elevate the debate for a statewide bag fee or ban.

• LD 1300, An Act To Create and Sustain Jobs through Development of Cooperatives, Representative Ralph Chapman, Brooksville

Thiswouldcreateafinancingschemeusingstate,federalorgrantfundstosupportcooperativebusinessventures. There is a growing number of “co-op” food related ventures.

• LD 996, An Act To Authorize a General Fund Bond Issue for Food Processing Infrastructure in Rural Areas of the State, Representative Craig Hickman, Winthrop

A $5 million bond proposal for food processing in rural areas of the state. It is unclear how “rural” would be definedandwhattypesofbusinesseswouldbeeligible.

• LD 733, An Act To Authorize a General Fund Bond Issue To Build the Infrastructure Needed To End Hunger in Central and Northern Maine, Senator Justin Alfond, Cumberland County

A $5 million bond proposal to aid the Good Shepherd Food Bank, to increase their storage capacity in the Bangor region. It would also enhance agricultural production for businesses supplying the Good Shepherd Food Bank in that region.

• LD 674, An Act To Support Maine’s Working Families, Representative Erin Herbig, Belfast A concept draft to address strategies to increase wages, predictive scheduling, and improve working conditions.

Failed

Steps to “reform” welfare programs were neatly tucked into the Governor’s Budget. Likewise, other proposals were submitted by Republicans and Democratswhichhighlighttherealchallengesoffindingacommonunderstanding of what “welfare reform” truly means and how to tackle the various issues. MGFPA members who accept EBT cards know that those cards holdmultiplebenefitsincludingSupplementalNutritionAssistanceProgram(SNAP) dollars that may only be used to purchase eligible food items. SNAP is afederallyfundedprogramthatfeedsanestimated230,000Mainersannually.Also loaded on EBT cards may be Temporary Assistance for Needy Family (TANF)fundswhichprovidecashbenefitsforrestricteduses.

Of the host of bills to come before the Legislature, MGFPA was keenly focused on LD 526 presented by Senator Roger Katz who is a member of the Council of State Governments’ Hunger and Nutrition Subcommittee that is recommending a close examination of SNAP eligible food items with the goal of reducing the number of eligible food items. LD 526 sought a legislative seal of approval mandating that the LePage Administration seek a waiver from the US Department of Agriculture to allow Maine officials to reduce the number of eligible items available to a SNAP recipient.

Inaddition,LD607wouldhavemandatedthatEBTcardholdersberequiredtohavetheirphotoonareplacement card. EBT cards holders are encouraged to have their photos put on the cards, but it is not mandated, nor can the state mandate this without approval by the US Department of Agriculture.

It wasn’t for a lack of interest that these proposals failed but rather due to a complex tug of war. Going forward, MGFPA will continue to serve as a critical resource to lawmakers and administrators as they attempt to forge legislation that balances the recipient’s needs against those who may be violating the laws.

• LD 526, Resolve, To Require the Department of Health and Human Services To Request a Waiver To Prohibit the Use of Food Supplement Benefits for the Purchase of Taxable Food Items, Senator Roger Katz, Kennebec County

• LD 607, An Act To Stop the Abuse of Electronic Benefits Transfer Cards,Representative Wayne Parry, Arundel

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EBT Cards & Supplemental Nutrition Assistance Program (SNAP)

Failed

Maine’s minimum wage rate has not been increased since 2009. This fact clearly fueled the debate at the State House, but it couldn’t bring the two sides together. Over shadowing the State House discussions is

the mounting interest by the Maine People’s Alliance (MPA) who is now pursuing a November 2016 statewide ballot initiative to incrementally increase Maine’s minimum wage to $12.00 by 2020.

It’s difficult to account for what happened this session, but with eight different pieces of legislation coming before the Labor, Commerce, Research and Economic Development (LCRED) Committee, we certainly expected a rate increase. After a very long public hearing and staggered work sessions, the Committee decided to dispense with all but LD 92 to increase the minimum wage to $8.00 an hour without indexing. The bill was later amended to include a four-step increase through January 2018 to $9.50 an hour, without indexing.

At the same time, Senator Andre Cushing presented a counter proposal to increase the rate in $.50 incrementsoverathree-yearperiod,to$9.00anhour.Includedinhisproposalweremodificationstoeaseemployment law for minors interested in working longer hours and language to preempt municipalities from adopting their own minimum wage.

The LCRED Committee voted these two bills out of committee along party lines with three Republican’s voting “ought not to pass.” The Democratically controlled House voted to support LD 92 and the RepublicancontrolledSenatevotedtoapproveLD1361leavingtheirfateupintheair.Duringthefinaldays of the legislative session, there appeared to be a glimmer of hope for a compromise, but both bills “died in non concurrence.” • LD 36, An Act To Increase the Minimum Wage, Representative Jeffrey Evangelos, Friendship• LD 52, An Act To Adjust Maine’s Minimum Wage, Representative John Martin, Eagle Lake• LD 72, An Act To Increase the Minimum Wage, Representative Scott Hamann, South Portland • LD 77, An Act To Raise the Minimum Wage, Senator Dave Miramant, Knox County • LD 487, An Act To Provide for an Increase in the Minimum Wage, Representative Ben Chipman, Portland• LD 843, An Act To Raise the Minimum Wage and Index It to the National Average Wage, Representative Gina

Melaragno, Auburn • LD 92, An Act To Increase the Minimum Wage to $8.00 per Hour, Representative Dillon Bates, Westbrook• LD 489, An Act To Ensure the Right To Work without Payment of Dues or Fees to a Labor Union as a Condition of

Employment, Representative Larry Lockman, Amherst • LD 1361, An Act To Promote Minimum Wage Consistency, Senator Andre Cushing, Penobscot County

The LCRED Committee voted down LD 1101 and LD 1217, two workers’ “bill of rights” bills that targeted retail businesses, both modeled after a recently enacted ordinance in the City of San Francisco. MGFPA members joined a long list of business leaders and organizations opposing the measures that would have mandated employers to notify their employees two to four weeks in advance of their work schedules, pay exorbitant overtime if there were any deviations to the schedule, and pay all employees similar wage rates.

A similar bill, LD 1287, was heard by the Taxation Committee because it targeted businesses that receive certaintaxcreditsorreimbursementofStatetaxandwouldrequiresimilarprescriptiveschedulingandwagesstandards.Ifthosebusinesseswereinnoncompliance,itwouldhaverequiredthebusinesstoremitback to the State a pro rata amount of the tax credit or reimbursement received based upon their level of compliancewiththewage,benefits,healthcareandschedulingrequirements.Intheend,LD1287died.

• LD 1101, An Act To Adopt a Retail Workers’ Bill of Rights, Representative Janice Cooper, Yarmouth• LD 1217, An Act To Require at Least 2 Weeks’ Advance Notice of the Work Schedule for Hourly Employees at

Certain Businesses, Representative Gina Melaragno , Auburn • LD 1287, An To Ensure That Tax Expenditures Create High-quality Jobs, Senator Chris Johnson, Lincoln

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Labor – Minimum Wage & Retail Workers’ Bill of Rights

Failed MGFPA supports legislation furthering opportunities for food producers – growers, processors and manufacturers. All too often however we’re facing legislation designed to allow individuals wishing to sell unregulated milk and milk products, for example, from their home operation and at farmers’ markets. This session we were largely on the defensive as lawmakers rallied in favor of legislation to deregulate Maine’s highly regarded food safety regulations for dairy, poultry, meats and produce.

Twosimilarbills,LD229andLD312bothfailedafteraconcertedeffortbyMGFPAandrepresentativesfrom the farming community to educate lawmakers about the value of Maine’s food safety regulations including permitting the sale of unpasteurized milk and milk products.

LD 925 would exempt “farm food products and homemade food products” such as eggs, dairy products, meatandmeatproducts,poultry,fishandfishproducts,mapleproducts,appleciderandfruitjuicefromstate licensing, inspection (testing in some cases) regulations allowing these products to be sold from the farm to an “informed end consumer” who theoretically is the last person to purchase, who doesn’t sell the food and who has been “informed” through a label provision. Finally, it would permit these food products tobesoldorservedata“traditionalcommunitysocial”or“agritourism”event.Itgoesontodefinetheseevents which include weddings, funeral, school events, etc.

Stillanotherbill,sponsoredbySenatorBrianLangley,LD1376,wouldestablishasevenyearpilottoexempt “local producers and processors” in the towns of Blue Hill, Brooksville, Penobscot, Sedgwick, and Brooklinfromallstatelicensureandinspectionrequirementsforsaleofproductsdirectlytoconsumers.These communities have passed local food self-governance ordinances.

LD925andLD1376ultimatelylandedontheAppropriationsTablebecausetheywouldhaveaddedregulatory compliance duties to the Department of Agriculture. The Appropriations Committee denied funding both bills.

What is striking about these proposals is the lack of understanding about food safety regulations and the potential harm to the hundreds of value added food producers (and farmers) who invest millions of dollars in their farm and processing operations to ensure that their products are safe. MGFPA worked extremely hard to inform lawmakers that food safety compliance is paramount to maintain and grow the Maine “food” brand and that Maine’s food regulations are not inhibiting growth in food production. Looking forward, we expect continued interest in relaxing food safety standards and will call upon our members to provide testimonials on why they support food safety regulations. • LD 229, An Act To Exempt Small Raw Milk Producers from Licensing Requirement, Representative Jeffrey Hanley,

Pittston• LD 312, An Act To Allow the Sale of Unregulated Farm-produced Dairy Products at the Site of Production,

Representative Bill Noon, Sanford (he died in July 2015)• LD 925, An Act To Promote Small Diversified Farms and Small Food Producer, Representative Ralph Chapman,

Brooks• LD 1376, An Act To Establish a Local Food Producers and Processors to Consumers Pilot Program, Senator Brian

Langley, Hancock County

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Food Production

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Carry Over

Maine’s GMO labeling laws don’t go into effect until four other contiguous states, including New Hampshire, pass similar legislation. To date, Vermont has passed legislation that will go into effect in July 2016. The only other state to pass similar legislation is Connecticut. New Hampshire lawmakers have rejected state proposals holding out for federal legislation.

This session, the out of state, Organic Consumers Association, targeted freshman lawmakers and knit together a small, but vocal group to support LD 991, sponsored by Representative Michelle Dunphy, afirstyearlegislatorfromOldTown.LD991wouldrepealMaine’seffectivedaterenderingthelaweffectiveimmediately.TherewasmoderatesupportforLD1326torepealtheeffectivedatecriteriaandadd livestock feed to the mix of products to be labeled. The MGFPA played a key role in orchestrating a compromisein2013thatleadtothepassageofMaine’sGeneticallyEngineeredProductslawsandvoicedourstrongobjectiontobothLD991andLD1326onthegroundsthatitwouldunderminetheworkofMaine’s interested parties.

Attorney General Janet Mills has repeatedly stated that if Maine law were to go into effect, it would only beamatteroftimebeforeacostlylawsuitwouldbefiled.TheStateofVermont,whoadoptedlabelinglegislation that goes into effect on July 1, 2016, reportedly has already spent $1.45 million in legal fees defending their law. In the mean time, there are several competing bills in the United States Congress that would address the GMO labeling. Given the enormity of the issue, Maine lawmakers agreed to carry over bothLD991andLD1326.

• LD 991, An Act To Amend Maine’s Genetically Modified Food Products Labeling Law, Representative Michelle Dunphy, Old Town

• LD 1326, An Act To Require Labeling of All Genetically Modified Products, Senator David Burns, Washington County

New Law

TheCityofPortlandbecamethefirstmunicipalityinMainetoadoptanordinancetoimposeabagfeeon paper and plastic checkout bags, mostly at grocery stores effective on April 15, 2015. In the drafting of the ordinance, the Maine Revenue Services indicated that the bag fee would be subject to the State’s sales tax – a tax on a tax. In order to remedy this situation, Senator Tom Saviello sponsored LD 590 with an emergency preamble to exempt bag fees from state sales tax in advance of the April15thordinanceeffectivedate.Asimplefixright?Notso.

TheTaxationCommitteeheldaPublicHearingonMarch23rd,withnoopponents to the bill. On April 2 the Taxation Committee voted out the bill unanimously in favor. We then learned that the Revenue Forecasting Committee had, in November 2014, budgeted roughly $70,000 in revenue, over the two year budget cycle, from the bag fees. Never mind that no sales tax had been collected, thebillwasassigneda“fiscalnote”andwasmovedtotheAppropriationsCommitteefortheirconsideration.Typically,billsthatareassigneda“fiscalnote”areworkedduringthefinaldaysofthelegislativesessionafterthebudgethasbeenapproved.InearlyApril,budgetdiscussionswereatastandstillsoitwasdecidedtotrytoremovethefiscalnotefromthebill.Afterall,itwasarelatively small amount of money. Little did we know that not only was this going to be a monumental task, but we learned that Governor LePage would likely veto the bill which he did on June 8. In his message, the Governor stated that City officials knew about state sales tax laws, and until the Legislature deals with his budget proposal, he felt it was premature to exempt bag fees from state sales tax. The very next day, the veto was overridden. State law now exempts all checkout bag fees from state sales tax. The end.

• LD 590, An Act To Exempt a Fee for a Paper or Plastic Single-use Carry-out Bag from Tax, Senator Tom Saviello of Franklin County

Checkout Bags

GMO Labeling

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Failed

MGFPAtooktheleaddefeatingthreeseparatebillstorequiregrocerystoresandsupermarketstocharge$.05perplasticcheckoutbags.LawmakerswerebuoyedbyPortland’sordinancestorequireretailersselling food to charge $.05 for paper and plastic checkout bags. We support a clean state, just not a more expensive one and assert that with the exception of California and Hawaii, only municipalities have passed thesetypesofordinanceswithinconclusivesuccessrates.California’slawbansplasticbagsandrequiresretailers to charge a fee for paper bags. This law may very well be overturned by voters in a statewide referendum. Hawaii takes a different stance permitting municipalities to impose their own fee structure.

Proponents,manyofwhomweremiddleschoolstudentsfromWarsawMiddleSchoolinPittsfield,urged the Environment and Natural Resources Committee (ENR) to take action to reduce environmental impactscausedbytheseproducts.Ofinterest,theNaturalResourcesCouncilofMainetestifiedNeitherForNorAgainstsuggestingthatitmaybeprudenttoexaminetheoutcomesoflocalordinancesfirst.ThissentimentseemedtoprevailastheENRCommitteevoteddowntwoofthebagproposals,LD396andLD680.TheysplittheirvoteofLD325alongpartylinesthatsparkedashortdebateintheHouseofRepresentatives where it eventually died.

We took a positive approach in educating lawmakers to emphasize the successes of our members’ comprehensive recycling programs. We were able to share data showing that the number of plastic bags, for example, being distributed has decreased and the number of reusable bags sales has increased. We also reminded lawmakers that every retailer who distributes plastic checkout bags must have a recycling (collection)bin.Byofferingthesebins,greateramountsofplasticfilmarebeingcollectingandshippedoutof state for recycling.

Looking ahead, several municipalities are considering adopting ordinances patterned after Portland’s ordinances. We will continue to offer information and serve as a resource.

• LD 325, An Act To Strengthen Recycling of Single-use Plastic Shopping Bag, Representative Michael Devin, Newcastle

• LD 396, An Act To Encourage the Use of Alternatives to Single-use Plastic Disposable Bags, Representative Janice Cooper, Yarmouth

• LD 468 An Act to Prohibit the Use of Certain Disposable or Polystyrene Food Service Containers, Representative Christine Burstein, Lincolnville

• LD 680, An Act To Reduce Waste from Disposable Bags, Representative Deane Rykerson of Kittery

New Law

WiththepassageofLD423,Mainejoinsanumberofstate’swhorequirethatliquidnicotineusedwith electronic cigarettes must be contained in packaging that is tamper proof. The FDA is currently undergoingrulemakingonchild-resistantpackagingandhealthnotifications.Mainelawmakers,intheirsupportforLD423,wantedtobecarefultopasslegislationconsistentwithfederallegislationwhichtheybelieveLD423addresses.

In a twist of fate, the use of electronic cigarettes is now prohibited in public places. LD 1108 was one of the 65 bills that got caught up in the highly publicized battle between the Legislature and the Governor overwhethertheLegislaturehadadjournedorwas“atease”thefinaldaysofthesession.TheGovernorbelieving that the legislature had adjourned delayed vetoing the 65 bills, including LD 1108. When to Supreme Court ruled in favor of Legislature, the 65 bills became law without the Governor’s signature.

• LD 423, An Act To Require Child-resistant Packaging for Products Containing Liquid Nicotine, Representative Deb Sanderson, Chelsea

• LD 1108, An Act To Protect Children and the Public from Electronic Cigarette Vapor, Representative Jeff McCabe, Skowhegan

Carry Over

LD973includeselectroniccigaretteinthedefinitionof“cigarette”forthepurposeofassessingthecigarettetax. The Health & Human Services Committee agreed to carry over this bill pending FDA’s regulatory work.

• LD 973, An Act To Ensure That Nicotine Products Are Taxed Equally, Representative Jeff McCabe, Skowhegan

Tobacco Products

P.O. Box 5234Augusta, ME 04332Tel. 207-622-4461mgfpa.org

Save the Date!The Seventh Annual Maine Food Means Business Summit

is right around the corner!

October 13-14, 2015Hilton Garden Inn Freeport, Maine