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The city council also rejected two other measures that would have increased the minimum wage and eliminated the tipped credit for certain workers.
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The legislation cleared the House on a narrow, mostly party-line vote on Tuesday.
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The bill, introduced by the Gov. Janet Mills, would require agricultural workers to be paid at least the state minimum wage.
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The bills would have blocked foreign government-owned entities from spending money on Maine ballot campaigns, and ensured that farmworkers earn no less than Maine's hourly minimum wage of $13.80.
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Both chambers of the Legislature have given initial approval to boosting Maine's minimum wage to $15 an hour. But the bill's prospects remain unclear.
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Maine Democrats are trying again to ensure agricultural workers have access to the state's minimum wage and overtime protections, as well as the right to unionize.
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The minimum wage increases annually in Maine based on federal cost-of-living data for northeastern states. And with inflation driving up the costs of goods, Maine's minimum wage will rise by $1.05 to a total of $13.80 a hour for the coming year.
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Supporters of the referendum also criticized donations from out-of-state groups to committees opposing the ballot measure.
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A progressive advocacy group estimates that 147,000 Mainers will see their wages increase next year when the state minimum wage jumps from $12.75 an hour to $13.80.
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Maine’s top court has ruled that Portland’s emergency minimum wage increase will not go into effect until next year.