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There has been a great deal of legislative activity in both the halls of the State House and in the U.S. Capitol. A brief summary of what has happened and what credit unions need to know is outlined below:
MAINE LEGISLATURE
Maine lawmakers met for a brief special session to vote on updating Maine’s electoral districts in advance of the midterm/gubernatorial elections next November. This type of legislative action is required every ten years following the completion of the decennial census. Maine’s apportionment process is unique as it is designed to require bipartisan cooperation.
How Maine’s Process Works
The Legislature appoints a special commission that is evenly divided between the two major political parties, with one independent member serving as Chair. The commission conducts meetings and holds public hearings on proposals to determine the best way to redraw Maine’s congressional, state senate, state house, and county commissioner districts. Upon completion of their analysis, the commission sends a proposal to the full legislature for their consideration, where a two-thirds majority vote is required. Maine’s process is very different than what is often seen in other states where the party in control of the legislature simply redraws the maps with little input from the opposing party.
Apportionment Results
This year’s Apportionment Commission faced several challenges because it received data later than usual from the U.S. Census. It was widely expected that legislative leaders would be unlikely to secure agreements on all the maps. Failure to attain agreement would have required the Maine Law Court to intervene by accepting proposals from interested parties, then drawing the districts as the court sees fit. However, the Apportionment Commission and the Legislature were able to secure the necessary agreements on all maps and Governor Mills signed that proposal into law. The new electoral districts will be in place from 2022–2030. Maps and information on new districts will be provided by the Secretary of State’s office in the coming days.
CONGRESS
Federal Spending and the Debt Ceiling
While Congress continues to debate and wrangle over two important bills in President Biden’s agenda, a physical infrastructure bill and a social/human infrastructure proposal, two new deadlines have been added to the mix making the need for a solution even more timely. First, Congress must pass a continuing resolution this week to fund the government before the budget expires. Failure to enact a continuing resolution will result in a federal government shutdown. Next, it will need to address the nation’s current debt limit. A debt ceiling increase is necessary by mid-October to prevent the government from defaulting on its payments.
Proposed IRS Reporting Requirements
The League continues to work closely with our partners at CUNA in monitoring a key IRS reporting requirement proposal that is contained in the human infrastructure package. This package is universally opposed by congressional Republicans, and will only be successful if majority Democrats can come to an agreement. An agreement, however, has been hard to obtain as Democrats in the House of Representatives want a much larger package than moderate Democrats in the Senate are willing to pass. This impasse has provided the financial services industry valuable time in advocating against the proposed IRS reporting requirements. CUNA reports that because of the impact of the grassroots advocacy lead by the financial services industry, including CUNA and the League, the proposal as originally drafted is now unlikely to pass. Congressional Democrats have not given up on the proposal entirely, as they are now working to modify it to make it more palatable or defensible.
The League will continue to watch these developments closely and provide ongoing updates to our credit unions. If you have any questions concerning this week’s legislative activity, please contact Robert Caverly, League Vice President of Governmental Affairs, at rcaverly@mainecul.org.