Rep. Jon Hinck’s Report on the 124th Maine
Legislature, 1st Session, 2009
    This is a report to constituents on the legislative session completed in June.
It is the most thorough summary I will send out of what I have worked on and the
status of things in the state government at this time. I know that I risk
overloading email boxes and raising hackles among those who may not share
my views on the many matters of public policy addressed here. Since I work on
your behalf, however, I believe it is important to offer my perspective and
explain my votes as your State Rep. Please share any feedback you have by
replying to this email.

Session Highlights: The Maine legislature made important progress on a
number of key issues in spite of the challenging economic climate. I believe that
we took historic positive action, in line with long-honored principles of equality
and fairness, when we legalized gay marriage in Maine. In addition, we passed
some innovative energy legislature, one highlight of which was to steer federal
stimulus funds to start up a building weatherization program that aims to
weatherize all Maine homes and half of Maine businesses over twenty years.
Maine legislators achieved a long sought reduction in state income taxes as
part of a major tax reform bill. We shored up health coverage in the state,
increased transparency and oversight of health insurance products, and
created a court-supervised mediation process to prevent home foreclosures.  

    The budget, though difficult, successfully addressed major revenue
shortfalls by reducing spending and shrinking the overall size of state
government. We approved a responsible and much needed bond package to
improve the state's infrastructure among other things. I introduced and gained
passage of a bill that expanded Maine’s pioneering and successful electronic-
waste recycling program and we passed a new measure for the collection and
recycling of compact fluorescent light bulbs. We also did some strengthening of
legislative and lobbyist ethics but left more to do on that. And Disappointments:
There were disappointments this session as well. I regret that we were unable
to find an ongoing funding mechanism for weatherization.

    I also think it is a shame that we again failed to reduce the legislature’s size.
I introduced one of the bills to do that and supported the modest compromise
that came to the floor that would have reduced the size of the House from 151
to 131 members starting in 2013. I am also concerned about the impact
cumulative budgets cuts to important programs like those supporting mental
health, our courts and the state prison system among other things. I would like
to see us do more to maximize efficiencies to avoid some of the worst budget
cuts. I was also disappointed when the Taxation Committee failed to pass out
my bill L.D. 237, "An Act To Impose an Excise Tax on the Extraction of Water for
Bottling."

Overall, bearing in mind the reality of how any legislature must work, with all its
members in combination with a governor -- I believe that the Maine legislature
served the State well this year and stretched the limits of what is achievable at
times like this.

Tax Reform: The legislature passed LD1495, a tax reform package designed
to reduce the taxes paid by Mainers by $57.1 million without changing
revenues. This is accomplished, in part, by shifting some taxes to visitors and
part-time residents. These taxes are similar to those in effect other states. In
other words, visitors to Maine pay such taxes when they are home and Mainers
pay them when they visit other states. The plan reduces the state income tax
from 8.5 percent to 6.5 percent for incomes under $250,000, and from 8.5
percent to 6.85 percent for those over that income level. The drop in income
taxes is paid for by expanding the sales tax to a number of highly exportable
and discretionary services. The reform also makes a part of the Earned Income
Tax Credit refundable for lower and middle income families.

L.D. 1495 passed in the legislature on an almost entirely partisan vote with
Senator Peter Mills the sole Republican voting yes. The criticism by Republican
opponents has shifted continuously before and after passage. I cannot
summarize it. Contrary to what some other surprising detractors say, the tax
reform makes the State’s tax system more progressive. For example, under the
new law, the effective income tax rate (after accounting for all tax credits) for a
person making $250,000 is 6.5 percent, resulting in a tax bill of $16,250. A
person making $15,000 would have an effective tax rate of .16 percent,
resulting in an income tax bill of $25.
In addition to stabilizing state revenues, the tax package will help Mainers make
ends meet and spur development by leaving more money in the Maine
economy.

An op-ed I wrote to summarize the tax reform was printed last month in the
Portland Daily Sun and can be seen here:
http://www.theportlanddailysun.
com/cgi/story.pl?storyid=20090710026461000399
Incidentally, the tax reform package is very much in line with what I previously
reported to constituents as one of my goals. I wrote the following to you in
September 2007:

   "Our existing tax structure has high income taxes relative to other states and
a much narrower scope of sales tax collection (mostly concentrated on auto
sales and building materials). I still support shifting taxes so that more will be
paid to by visitors to Maine, reducing taxes on Maine resident taxpayers.">>
Sometimes things can work out as hoped.

   To check how this change in taxes will affects the taxes you pay, go to the
website below and use the spreadsheet from the Maine Revenue Service to
plug in the numbers from your 2008 tax return. If you have your state tax return
it only takes a few minutes. So far I have heard of nine people who checked this
out and all of them (including 2 small business owners) will save money under
the reform.
http://www.state.me.us/revenue/incomeestate/1040/taxreformindividual.
htm
I
f you like, please share your results. I would like to hear from you on what tax
reform will mean for the taxes you pay to the State of Maine. Please email me
on this. And, more important, if you support the tax reform DO NOT SIGN the
petition to put a veto on the ballot. Just putting it on the ballot it will delay
implementation and result in Mainers losing money needlessly.
Economy and Jobs: The legislature voted to send a $150 million bond package
to the voters. The bonds would help to support thousands of jobs and provide
an estimated $368 million in economic activity in the State over the coming two
years when matching funds are factored in. The multi-year package focuses on
transportation infrastructure, green energy, and capital for businesses and
communities to make environmental upgrades. It includes funding for Land For
Maine’s Future and to support weatherization efforts. Maine is conservative in
its bonding and it is particularly useful to do these kinds of public works in a
slow economy.

Another bill passed into law, LD 1473, expands Pine Tree Development Zones,
a program initiated to stimulate new business and job creation in depressed
area. To date, 213 businesses and 2,500 jobs have been supported by the
program. LD 1474 expands Pine Tree Zones to include all Maine municipalities
and notably in Cumberland County. It also expands the definition of "dislocated
workers" so that more newly unemployed workers can qualify for unemployment
benefits while in an approved training program.
Broadband: LD 1012 creates the Broadband Strategy Council to advise the
ConnectME Authority on broadband programs and related funding
opportunities in the ARRA.

Marriage Equality: On May 6, 2009, Maine enacted LD 1020 becoming the
5th U.S. state to legalize gay marriage and ensure marriage equality. Unlike
states whose courts decided the issue, Maine’s was just the second legislature
to do it (after Vermont’s) and Governor Baldacci became the first governor to
sign gay marriage legislation (the Vermont legislature was forced to override a
veto). The law makes plain that no religious organization must alter any
doctrine, policy or teaching regarding marriage. Despite this success, marriage
equality in Maine faces an uncertain future in the face of a drive to place a
citizen's veto of the measure on this November's ballot.
Preventing Unnecessary Foreclosures: LD 1418 provides a process for
homeowners to negotiate with lenders and mortgage servicers before a
foreclosure action is final. The landmark law, sponsored by Rep. Sharon Treat,
creates a court-supervised mediation process as well as a foreclosure
prevention hotline for consumers. The counseling, mediation and notice
provisions of the law complement financial incentives created by President
Obama, which establish incentives for servicers to negotiate the terms of loans
with homeowners.

Health Care: Maine passed a number of reforms to improve transparency of
insurance products, expand access to necessary services, and ensure the
future of health coverage expansions.
   This session, we improved the fiscal footing for DirigoChoice, the State’s
insurance program for individuals and small businesses. The legislation
replaces the controversial "Savings Offset Payment (SOP)" with a fixed monthly
fee by the same insurance companies that pay the fee currently and will also
reopen the program to accept new enrollees in 2011.

   Also enacted was the Health Care Bill of Rights to increase transparency in
the health insurance marketplace. LD 1205 increases disclosure, enables
consumers to more easily compare insurance plans and gives the insurance
superintendent more authority to oversee rate increases. The law will ensure
that insurance policies have clearly defined terms and benefit descriptions, and
that actual policy terms, not misleading summaries, will be posted online so
consumers can see the full policies before they purchase.
LD 1078 to require regular reporting by state agencies on progress made
towards achieving efficiencies and greater coordination of in-home and
community based long-term care services.

Staph infections, including the very troubling MRSA, are finally receiving more
attention. Unfortunately, hospitals have become breeding grounds for these
infections. Maine has joined other states and the federal government in working
to prevent staph infections. LDs 1038 and 960 will increase reporting of
hospital-acquired Staph infections and require providers to work with the Maine
Quality Forum to develop safety and care guidelines to reduce the number of
staph cases in Maine.

Public Health and Safety: Key initiatives included further curbing of public
smoking, menu labeling, and a statewide wellness initiative.
New smoking laws: 1) LD 67 limits public smoking in the state's parks and
historic sites. It bans smoking within 20 feet of a beach, playground, snack bar,
group picnic shelter, park office, restroom, and other public spaces in parks
and historic sites; and 2) LD 820 bans smoking in outdoor eating areas of
restaurants.

LD 1363 creates a universal wellness initiative built on the state's existing public
health structure. The law officially recognizes Healthy Maine Partnerships,
which are community-based public health programs, to serve as district
coordinating councils for public health.

LD 1259 requires chain restaurants with 20 or more locations and at least one
in Maine to post calories on menus, menu-boards, and drive-throughs.
Under LD 6, driving while distracted is now an illegal traffic infraction if it results
in loss of control of the vehicle. Distraction may include text messaging while
driving.

Supporting Families:
Domestic Violence:
LD 324 will help domestic violence abuse survivors
protect themselves from abusers by enhancing collaboration between law
enforcement and domestic abuse service providers. The law allows law
enforcement to share investigate reports with family violence projects and other
service providers while protecting confidential information.
Access to Civil Justice: To ensure indigents and families have quality legal
services during child protective cases, the legislature passed LD 1132 to create
the Commission on Indigent Legal Services to provide legal representation
during child protective cases.

Pesticide Notification: LD1293 helps to ensure neighbors will be informed
before pesticides are applied by aerial spraying to a field. This landmark
pesticide notification system will allow those living near the aerial pesticide
applications to join a registry to receive notice prior to any spraying allowing
them take precautions to prevent exposure to chemicals. This is especially
important for young children who can suffer physical or cognitive developmental
problems from pesticide exposure.

Environment and Energy: A number of bills were enacted in line with Maine's
reputation as something an environmental leader. Key initiatives included
expanding energy efficiency programs, ensuring homes and businesses are
weatherized, and recycling programs for products with toxic chemicals.
Energy Future: LD 1485 became a landmark energy and weatherization law
combining bills sponsored by Reps Pingree and Berry and Senator Mitchell and
worked by a Joint Select Energy Committee on which I served. The new law
creates the "Efficiency Maine Trust", a single source for homeowners and
businesses to access available state and federal resources for weatherization
and other energy efficiency projects. The Trust has the explicit goal of
weatherizing 100% of Maine homes, 50% of businesses, and reducing heating
fuel use by 20% by 2030. The bill accesses $79 million in ARRA funds for low-
income household weatherization.

Renewable Energy: The Utilities & Energy Committee, which I co-chair,
developed some good energy legislation that was enacted into law this session.
These measures include the following: 1) LD 1075 creates a 50 megawatt
community renewable energy pilot program which extends long term contracts
(similar to feed-in tariffs) to qualified small to medium size projects and sets up
a green/community power standard offer; 2) LD 220 extends Maine’s solar and
wind energy rebate program through 2015 and directs the State to use ARRA
funds to expand the program by $500,000 for a 2-year period; 3) my bill, LD 73
bars local governments and homeowners'/renters' association from adopting
rules and covenants that would prevent residents from installing solar energy
devices including solar panels and clotheslines; 4) LD 1465 to provide for the
permitting of 5 renewable ocean energy test projects along the Maine coast;
and 5) LD 389 supports development of sustainable liquid biofuels.

Recycling E-Waste: My bill, LD 536 expands Maine's landmark electronic
waste recycling law to include desktop printers and video game consoles and
also requires manufacturers to pay an annual $3,000 registration fee to make
the recycling program sustainable. LD 973 is a bipartisan first-in-the-nation law
to require manufacturers of compact fluorescent light bulbs to share in the
costs and responsibility of recycling their mercury containing bulbs. Because
CFL's use less energy and save consumers money on their energy bills than
traditional light bulbs, this law will encourage greater use of CFLs while helping
to ensure their safe disposal.

I should add that I do not believe that Maine, other states and most countries
are really meeting the challenge presented by developing threat of global
warming. We also have the related economic and security incentive to free
ourselves of dependence on petroleum, which will never be produced here. I
am not satisfied with the progress but it is worth noting when we are at least
oriented in the right direction and moving forward.

Education:

LD 1446 creates the Maine Online Learning Program to increase course
options for students. Online teachers will be regularly certified and school
districts will develop agreements to access courses not provided in their district.

LD 969 extends Maine's Children's Growth Council and makes it eligible for
federal funding. The Council is charged with implementing the state's longer-
term plan for a statewide early childhood system.

LD 1090 waives the remaining tuition to a Maine public university or college for
veterans after federal education benefits have been exhausted.
Education is another area, starting with pre school right through post-graduate
level, where Maine would benefit by doing more. It seems with limited public
resources, that we need innovation and effort from all quarters to make the
strides that will shape a brighter future for our State/
Elections and Ethics:

LD 1111 makes several changes to increase transparency and accountability in
campaigns and legislative ethics. The bill strengthens the legislative standard
for conflict of interest; requires that lobbyist submit a digital picture and identify
committees they will lobby, calls for publishing of a lobbyist directory; prohibits
candidates and spouses from serving as campaign treasurers and deputy
treasurers.; and sets contribution limits to political action committees of $10,000
from any one source per election cycle.

LD 235 improves transparency in the citizen initiative process be requiring
financial information about how much a proposal will cost if enacted be readily
accessible to voters through various methods. A fiscal estimate will be included
on every petition to be circulated for that direct initiative. It requires initiative
petitions to include a space at the top of each page for the name of the
circulator and requires the fiscal impact statement to be printed on initiative
petitions and election ballots and to be posted in voting places and in voting
booths

I am disappointed that thus far we have not moved forward on certain other
election reforms. For example, the legislature failed to approve L.D. 56 "An Act
To Join the Interstate Compact on the National Popular Vote" designed to
overcome the needless electoral college in elections for president. No progress
was made on the issue of ranked choice voting as LD 1344 was set aside. I was
pleased that the legislature did approve a pilot project to allow for ongoing
absentee voting registration so that people who chose to vote absentee do not
have to send in a request at each election cycle.

Utilities & Energy Committee
 I will add a fuller report on the committees on which I served. U&E held
hearings on 72 bills and also received reports from the Public Utilities
Commission on such matters as Maine’s participation in the ISO-New England
power grid, and FairPoint Communications’ struggles after its acquisition of the
Verizon telecommunications system in Maine. Some of the members, like me,
were also appointed to the Select Committee on Maine’s Energy Future. The
MEF committee was assigned several major bills on policy regarding energy
generation, transmission and efficiency.

Of the U&E Committee’s 72 bills: 28 dealt with energy efficiency or renewable
energy;16 bills involved water utilities, including changes to utility charters, and
sales of water to bottled water producers; 14 bills addressed electric or gas
utility regulation; and a dozen bills related to telephone, broadband service, or
E-911 issues.

U&E held hearings and work sessions on every bill, with the following outcomes:
19 Ought Not to Pass (ONTP) - Unanimous
38 Ought to Pass as Amended – Unanimous
9 Ought to Pass – Unanimous
3 Carry over to 2nd session
4 Divided report (Majority and minority reports with different amendments).
Our committee may have had the most consensus and fewest divided reports of
any.

Additional Details on Bills I Worked on in Committee.

LD 1075 – "An Act to Establish the Community-based Renewable Energy Pilot
Program." This bill creates a 50 megawatt community-based renewable energy
pilot program. The bill defines a community-based energy project which
requires support from the municipality where the project will be located. The bill
directs the Maine PUC to create a technology-specific pricing schedule for
projects less than 1 MW, and a competitive bidding system (with a ceiling price)
for projects larger than 1 MW with a maximum size of 10 MW. Generators will
receive either a long term contract up to 20 years or a renewable energy credit
multiplier. The program has a 5 year sunset. The bill also provides for creation
and promotion of a community-based green energy standard offer to be
available to all residential and small commercial electricity customers.
The bill passed on the House floor with a vote of 145-0 and was strongly
supported in the Senate where it went under the hammer.

Emergency bill LD 276 refines the development of Maine’s CO2 trading
program, and allocate funding to the Energy and Carbon Savings Trust Fund.
LD 389 "An Act To Facilitate the State's Existing Commitment to the Production
of Liquid Biofuels". supports the development of liquid biofuels by eliminating
the Agriculturally Derived Fuel Fund and amends the Clean Fuel Vehicle Fund
to include sustainable biofuel projects and allows the Secretary of State to
develop and administer a cost-effective method for a person to contribute to
the fund through an online process.
LD 220 expands the wind and solar rebate program,
LD 792 requires a study on how to set up an on-bill financing program for small
business energy efficiency investments.

LD 935 "An Act To Rate Energy Efficiency and Carbon Emissions of Buildings"
creates a voluntary program for building energy efficiency and carbon emission
performance with standardized rating and reporting protocols and a voluntary
library with results. LD 935 was unanimously approved by the Committee, and
passed both houses.

LD 1012 - "A Resolve Directing the ConnectME Authority To Create the
Broadband Strategy Council," This measure directs the ConnectME Authority to
establish the Broadband Strategy Council to advise the authority on all matters
pertaining to broadband opportunities available under the American Recovery
and Reinvestment Act of 2009, as well as advise the University of Maine System
with respect to matters pertaining to the lease or sale of excess broadband
capacity as a result of the conversion of the education broadband spectrum.
The Broadband Strategy Council consists of 11 members, including 2 members
of the Senate and 3 members of the House of Representatives, and is staffed
by the ConnectME Authority.

LD 650 – "An Act to Create A Sustainable Funding Mechanism for Water and
Wastewater Infrastructure in the State. "

LD 1485 – "An Act Regarding Maine’s Energy Future" will help save money for
Maine families and businesses, create jobs, and reduce global warming
pollution by expanding and improving efficiency and weatherization programs.
Overall the bill accomplishes three important things: 1) consolidates Maine’s
energy efficiency and weatherization programs to apply to homes and
businesses that use any fuel; 2) creates a plan for green energy workforce
development, along with clear standards for training and certification; and; 3)
helps finance construction of new and rehabilitated energy-efficient housing,
providing quality housing for Mainers by putting Maine builders to work. The
goal of the plan is to weatherize nearly all Maine homes and half Maine
businesses by 2030 and reduce heating fuel consumption by 20 percent.
However, the law does not provide for additional funding for weatherization—
such progress will not be made until dedicated long-term funding for
weatherization is established. The law does require the Efficiency Maine Trust
to develop and bring to the Legislature a detailed weatherization plan for Maine
that includes a specific long-term funding mechanism.
Notice: All Non-Emergency Laws Enacted This Session Took Effect on
September 11, 2009.

Contact Info. I would be pleased to hear from you about these matters or any
others. Please respond to this email address:
RepJon.Hinck@legislature.maine.
gov or call 450-0003.

Rep. Jon Hinck