This LEGISLATION page is an attempt to help keep MAOMA members informed on some of the more pressing issues important to the Maine rental housing industry.

MAOMA is active in the Maine State Legislature, supporting a lobbyist (John Royce) and making sure that our collective voices are heard.  When we hear of an issue that we feel would severely impact our membership, we will include an article about it in the MAOMA newsletter.

We encourage our members to contact us by phone or e-mail, with issues that are important to you.

Each Legislature covers a two-year period. In the first year, many bills are introduced.  There are hearings and workshops.  After compromises and revisions, numerous bills, in one form or another, will be approved by the House and Senate and signed into laws by the Governor.  The second session of each Legislature, generally deals with held-over bills from the first year, plus emergency bills.The second session of each Legislature is limited by the Constitution to budgetary matters, the Governor’s legislation, legislation of an emergency nature approved by the Legislative Council, legislation submitted pursuant to authorized studies, and legislation submitted by direct initiative petition of the electors.

John Royce has for many years represented MAOMA in the State Legislature.  He helps to guide MAOMA’s proposed bills through the legislative process.  He also keeps MAOMA’s directors informed about bills submitted by others that may impact the rental housing industry.

The 121^st Maine legislature ended December 1, 2004. Hundreds of bills that were submitted during the two-year term eventually became law. Among the new landlord-tenant laws and law changes of interest to landlords, were the following:

The 122^nd Maine Legislature

The 2005 Maine Legislative session was hectic and rewarding as far as MAOMA is concerned.  Carleton Winslow (MAOMA’s Vice President) and I spent many days and weeks working on several very important issues to apartment owners. The following is a wrap-up of the major legislative bills.

► LD 321 “An Act Relating to Unlawful Housing Discrimination.” This legislation was proposed by Senator Barry Hobbins on behalf of the Maine Human Rights Commission.  I felt very strongly that this particular legislation could have led to many more discrimination lawsuits being filed against landlords. The bill itself was quite lengthy and no one on the Judiciary Committee really completely understood all its ramifications including the very capable legal analyst for the committee. We strongly opposed the bill and the Judiciary Committee arranged a meeting of all the interested parties.  Carleton and I attended and we agreed to participate in a study committee on the subject of discrimination against recipients of public assistance. In the end the study failed passage so that the issue is completely dead for this year, a major relief for MAOMA.

► LD 611 “An Act to Strengthen Tenants Rights When There is a Failure to Correct a
Dangerous Condition.” MAOMA voted to support this legislation and I spoke in favor of it.
The legislation upped the amount from $250.00 to $500.00 that a tenant may spend to fix a
problem at the landlord’s expense if the landlord fails to fix the problem. The problem must
endanger or materially impair the health and safety of a tenant. The landlord must be notified of
the problem. This legislation passed and will be law in September.
 

► LD 644 “An Act to Prohibit Discrimination in Housing.” This legislation was sponsored by
Senator Strimling of Cumberland and was opposed by MAOMA. The legislation would have
done away with the exemption from the discrimination laws for those landlords that rent
duplexes and one unit is owner occupied. It also would have done away with the discrimination
exemption for landlords that rent rooms in their home. The legislation was defeated.

► LD 780 “An Act to Allow a Landlord to Discover Whether Sewer and Water Bills Have|
Been Paid.” MAOMA supported this legislation. If you rent a single family home and the
tenant pays sewer and water this legislation would allow you to find out if the sewer and water
bills have been paid. The legislation passed and will become law in September.

► LD 1034 “An Act to Prevent Lead Poisoning of Children and Adults.” MAOMA became
interested in this legislation when talk began of putting a 2 to 5 dollar tax per unit to pay for lead
poisoning education. That did not in the end happen. A 25¢ per gallon tax was placed on each
gallon of paint sold in Maine over the next 5 years. The money will be used to educate the public on the
dangers of lead poisoning. The legislation passed and will become law in September.

► LD 1098 “An Act to Establish Energy Standards for Residential Rental Properties.” This was a very troubling and time-consuming bill for MAOMA. The original legislation was very negative for landlords. It was sponsored by Representative Eder of Portland. The original bill would have had the PUC set energy standards for rental properties and those standards would have had to be met by 2010 or within 90 days of a sale, whichever occurs first. We felt this legislation was unrealistic.  We fought hard against it and in the end agreed to accept the PUC (in consultation with MAOMA) coming up with a disclosure form to be used that details whether your building is insulated or not insulated. The form will be fashioned after the lead paint disclosure form. The amended legislation passed.

► LD 1532 “An Act to Modify Liability to Protect Maine Citizens from Lead Hazards that Harm Maine Children and Families.” This legislation was of grave concern to MAOMA. It would have made Maine’s lead control laws similar to Massachusetts. This legislation would have dramatically lowered the minimum blood levels necessary to trigger enforcement action. The legislation imposed strict liability on the landlord if lead poisoning of a child occurred even if the child could have been poisoned from other sources. We all are very concerned about lead poisonings and will do whatever possible to prevent it happening, but strict liability was unacceptable to MAOMA. The legislation was amended to only deal with lead disclosure forms, which MAOMA did not oppose. The amended legislation passed.

► LD 549 “An Act to Expedite the Forcible Entry and Detainer Process in Nonpayment Cases.” This was legislation proposed by MAOMA in order to speed evictions for nonpayment of rent in cases where there is no defense. The legislation would have mandated that a tenant with a written lease who receives a notice to quit for nonpayment would have to place the amount of rent owed in escrow with the District Court in order to receive a hearing on the notice. If the tenant doesn’t place the amount of rent owed in escrow within 3 days after the expiration of the notice to quit, the court shall issue a writ of possession.  This proposed legislation did not pass, but the Judiciary Committee formally requested by letter that all interested parties get together and attempt to come up with ideas that will expedite the eviction process. The judiciary legal analyst has volunteered to help the group and any agreed upon ideas can be presented for legislation next session. MAOMA has the responsibility of taking the lead to organize this study.

Casual Rentals of Living Quarters in the State of Maine subject to 7% Sales Tax

Effective July 1, 2005, all rentals of living quarters to transient guests or tenants will be subject to Maine state sales tax of 7%. This includes homes, vacation homes, cottages, condominiums and camps rented to transients.  Anyone so renting such living quarters must register with Maine Revenue Services to obtain a sales tax account; then charge, collect and remit this tax to the State. Previous to this change in law, these rentals were regarded as “casual rentals” and not subject to the Maine sales tax if the person only rented one property. Rental properties handled by rental agencies or real estate agencies have always been subject to the 7% tax.

For more detailed information:

 Details on the July 1, 2005, law change, specific exemptions, and how to register:
  http://www.maine.gov/revenue/salesuse/Casualrentals.pdf

 Details on general rental of living quarters:
  http://www.maine.gov/revenue/salesuse/Bull32.pdf

KNOW THE LAW

Ignorance of state and federal laws is no excuse!  If you are in the apartment rental or management business, you need to stay informed.

• To search the status or other information on any bill currently under consideration by the Maine legislature, go to: http://janus.state.me.us/legis/LawMakerWeb/search.asp
   
• For additional Maine law and legislation, go to:
  http://www.state.me.us/legis/lawlib/melaw.htm