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Wednesday, January 3 marked the beginning of the Second Regular Session of the 131st Legislature. This short session is scheduled to adjourn on April 17, giving lawmakers just 103 days to complete their work, which includes carry overs, emergency legislation and department bills.

While we anticipate a fairly busy short session, it is predicted that the top issues will include gun control, housing issues and a supplemental budget.

Next week, the Council will testify on two bills (listed below), and we're requesting your help with one of them. On Tuesday, January 9, the Innovation, Development, Economic Advancement and Business Committee will hold a public hearing on a bill that we oppose, LD 1815, "An Act To Protect Maine's Consumers by Establishing an Abuse of Dominance Right of Action and Requiring Notification of Mergers."

Sponsored by Rep. Rebecca Millet of Cape Elizabeth, LD 1815 has been identified as a threat by the business community. Part of a national push by an interest group that has so far been unsuccessful, this bill would drastically change our antitrust laws and expose Maine businesses to litigation by allowing a plaintiff to bring an action against any person with a dominant position in the conduct of any trade, business or commerce, in any labor market or in any furnishing of a service in this state that abuses that dominant position.

A dominant position is presumed if a person has a share of 60% or more of a relevant market as a seller, or 50% or more of a relevant market as a buyer. How the size of a relevant labor market is determined is undefined, meaning this law could apply at the town level, county level, regionally or statewide, depending on the rulemaking process.

What could this mean for our industry? Here are two examples - one as a buyer and one as a seller:

• If a landowner owns 60% or more of a township and they sell wood, they could be considered to have a dominant position, leaving them open for meritless lawsuits.
• If a mill purchases more than 50% of the wood supply in an undefined "relevant market", it would be considered to have a dominant position, leaving the facility open for meritless lawsuits.

Dominance is so undefined, nearly anyone could bring action against nearly any business, large or small. Under this bill, "fair trade" is prioritized over "free trade".

When it comes down to it, our antitrust laws are well established, and have protected consumers adequately for more than 100 years. LD 1815 is a solution in search of a problem, and it would create chaos for businesses that operate in our state. Please consider submitting testimony in opposition to this bill using the instructions outlined below.

As always, if you have any questions about this bill or any others, please don't hesitate to reach out.

Best,

Pat and Krysta

Bills scheduled for a public hearing

Public hearings are livestreamed and archived here on the Legislature's Website. Testimony will be accepted in-person, via Zoom or in writing. Committee meeting guidance for public/interested parties can be found here.

To sign up to testify via Zoom or submit written testimony, click here.

LD 2063 - "An Act To Clarify The Laws Governing Disclosure Of Wood Processing Data"

Public Hearing in ACF on Monday January 8, 2024 @ 10:00 AM in Cross Building, Room 214

MFPC Position: Support

Sponsored by Rep. William Pluecker, LD 2063 amends the confidentiality provisions of the laws governing wood processor reports to authorize limited sharing of the information submitted to the Department of Agriculture, Conservation and Forestry, Bureau of Forestry with the United States Department of Agriculture, Forest Service, Northern Research Station, as long as the bureau enters into a confidentiality agreement with that entity. The bill adds penalties to ensure that the information is used only for purposes authorized by the director of the bureau.

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LD 1815 - "An Act To Protect Maine's Consumers By Establishing An Abuse Of Dominance Right Of Action And Requiring Notification Of Mergers"

Public Hearing in IDEA on Tuesday January 9, 2024 @ 1:00 PM in Cross Building, Room 206

MFPC Position: Oppose

Sponsored by Rep. Rebecca Millett, LD 1815 establishes a right of action against a person with a dominant position in the conduct of any business, trade or commerce, in any labor market or in the furnishing of any service in this State that abuses that dominant position. The bill requires any person conducting certain types of business in this State that is required to file a notification and report form prior to a merger pursuant to federal law to provide the same notification and report to the Attorney General. It establishes a penalty for failing to file the required notice. The bill increases the cap on monetary penalties from $10,000 to $50,000 for violations of provisions of law relating to the acquisition of gasoline and heating oil assets and increases the notification requirement from 30 days to 90 days. The bill increases the cap on monetary penalties from $100,000 to $250,000 for violations of provisions of law relating to antimonopoly provisions. It also clarifies that the State may recover equitable monetary relief in proceedings related to antitrust violations.

Bills scheduled for a work session

Work Sessions are livestreamed and archived here on the Legislature's Website.

LD 191 - "An Act To Amend The Laws Regarding Certain Business Equipment Tax Benefits"

Work Session in TAX on Thursday January 11, 2024 @ 1:00 PM in State House, Room 127

MFPC Position: Neither for nor against

Sponsored by Senator Stewart, LD 191 would exclude from eligibility for the business equipment tax exemption and the business equipment tax reimbursement a person that, based on a 3rd-party certification, bans, boycotts or otherwise restricts or prevents the sale or distribution of any product that is legally produced, harvested or grown in the state. This exclusion does not apply to products when a certification system is in place at the consent or request of the producer, manufacturer or grower.