Legislature wraps up with flurry of activity
Jon McKane
Submitted by State Rep. Jon
McKane
The Maine Legislature finished its work for this year on Friday, April
18. The last week of the session saw a flurry of activity and the passage
and defeat of numerous bills.
Earlier in the year the Legislature passed a supplemental budget that
closed a $190 million budget short- fall. Because of the insistence of
legislative Republicans, the supple-mental budget was crafted without the
inclusion of a broad-based tax increase, despite the fact that some
lawmakers were calling for an in-crease in the sales tax. The no-new-tax
pledge fell through the cracks during the last few days of the ses-sion as
the majority pushed through a bill to fund the controversial Dirigo Health
program. That bill will raise taxes on beer, wine and soda, as well as
levy a surcharge on health insurance claims.
The issues revolving around school consolidation also sparked debate in
the waning hours of the 123
rd
. After the Governor vetoed the original bill that was meant to lift
barriers for school districts in order to re-organize, a new bill was
presented for passage. The final piece of legis-lation will remove some of
the financial barriers school districts have run into, but will give the
Com-missioner of Education the ability to approve or disapprove
reorganization plans that may not fulfill all of the consolidation law's
requirements.
The Legislature also enacted a jail consolidation plan that will
overhaul the county and state correctional systems. The legislation will
create an oversight board that will manage and coordinate operations. The
state will have the ability to use free bed space in the county jails and
all facilities will save money by agree-ing to a joint drug purchasing
plan.
For those counties needing new jails, this plan will help. Counties
such as Lincoln, Sagadahoc and Somerset may find themselves on the losing
end. Time will tell.
Due to pressure from federal officials at the Department of Home-land
Security, the Legislature also took quick action to secure state driver's
licenses and identification cards. The two bills that were passed will
require an applicant to be a resident of Maine and be in the United States
legally in order to ob-tain state credentials. The stringent guidelines
contained in the original bills, however, were somewhat watered down.
New Taxes to Pay for Dirigo
During one of the last days of the legislative session, the Maine House
and Senate passed a controversial measure to raise taxes on beer, wine and
soda to fund the Dirigo Health program. In addition, the proposal will
repeal the Savings Offset Payment (SOP) tax and replace it with a 1.8
percent tax on all health insurance claims. The bill narrowly passed in
both chambers, with the vote splitting along party lines.
The tax on soda, beer and wine replaced the original proposal to
increase the cigarette tax by 50-cents a pack. The new taxes will bring in
$9.2 million from soda next year and $7.5 million from beer and wine. In
addition to the new taxes and the surcharge on paid claims the
legis-lation will also transfer $5 million from the state's Fund for
Healthy Maine and make a $3.6 million loan from the General Fund to the
Dirigo Health program.
The new Dirigo funding bill was passed by slim margins in both the
House and Senate. The House ap-proved the amendment that increased the
taxes on beer, wine and soda by a vote of 72-69. The Senate enacted the
bill 18-17.
The Dirigo Health program pro-vides subsidized health insurance
policies to less than 14,000 Maine residents and has an annual budget of
$57 million. When first approved, the Dirigo Health Agency estimated that
they would be able to cover Maine's 130,000 uninsured residents by
2009.
Driver's License Rules Tightened
Before adjourning, the 123
rd
Maine Legislature passed two bills that will put Maine into compliance
with federal demands to tighten the state's driver's license security.
One new law will require that an applicant for a driver's license or
non-driver identification card show valid evidence of legal presence in
the United States. The bill also states that a legal non-resident's
license must expire when the person's visa expires. In addition, the bill
directs the Secretary of State to participate in the federal Systematic
Alien Verification for Entitlements (SAVE) Program by December 1, 2009.
This program allows federal, state and local government agencies and
licensing bureaus to obtain immigration status information.
The bill requiring legal presence as a condition to obtain a Maine
license received a lengthy debate in the Legislature. The final vote in
the House was 79-58 with all Repub-lican legislators present voting in
favor of the measure. The Senate enacted the bill 19-15.
Another bill requiring individuals to prove their residency in the
state to obtain a license was approved. Prior to the new law, there were
no residency requirements in place to receive a Maine driver's
license.
The new rules went into effect on April 22 and require an applicant to
show two documents with proof of state residency in order to qualify for a
license. Acceptable documents for a first-time applicant will include a
tax return, W-2 form, paycheck stub, utility bill, college ID or school
transcript.
The legislative changes recently enacted will ensure that Maine
residents are able to board airplanes and enter federal buildings with a
state issued driver's license or ID card under the new rules adopted by
the Department of Homeland Sec-urity.
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