February 12, 2003
LEGISLATIVE UPDATE #4
· MAJOR BANKING BILLS NOW PRINTED
· GOVERNOR’S BUDGET IMPACT ON BANKING INDUSTRY
· NEXT LEGISLATIVE COMMITTEE MEETING ON FEB. 25
· BANKERS’ DAY AT THE LEGISLATURE ON APRIL 8
Approximately 650 LDs are now in print, with more than 150 new LDs printed per week. In the past 3 days, many of the proposals that will be MBA’s top priorities for 2003 have been printed in LD form. Hearings and Work Sessions will be scheduled in the very near future on these bills. The most important banking-related bills printed to date are as follows: (NOTE: As always, please call the MBA office for more information or to comment about these issues or for full copies of the LDs. MBAs Board of Directors, all CEOs and its Legislative Committee receives the full LD.)
LD 171, AN ACT to Require the Superintendent of Financial Institutions to Adopt Rules Regarding a Conversion of a Field of Membership by a Credit Union proposes to allow the Superintendent to authorize a credit union to convert from an employer-based field of membership to a community based field of membership, while at the same time continuing to serve all existing employer groups. This request from the Credit Union League goes further than federal law, though as proposed requires notice and the opportunity for a public hearing. This LD is scheduled for public hearing on Wednesday February 19th.
LD 286, AN ACT to Title Mobile Homes, Boats, All-terrain Vehicles and Snowmobiles would require certificates of title for all of the above. MBA’s Legislative Committee has recommended that MBA oppose titling for ATVs and snowmobiles (too costly and additional paperwork) but to support strongly titling mobile homes. This LD is scheduled for Public Hearing Feb. 20th at 1:00pm
LD 291, AN ACT to Provide Parity in Lending by State Chartered Lenders was introduced by the Maine Credit Union League to allow late fees in certain circumstances. While MBA does not oppose the intent of the legislation, Sec. 2 of the LD proposes to repeal some late fee provisions that were adopted into Maine’s credit card laws to make our laws the same as those in the state of Delaware. MBA may oppose or amend this Section of LD 291.
LD 494, AN ACT to Enhance Consumer Protections in Relation to Certain Mortgages is a proposal from the New England Association of Financial Services to enact a “lender friendly” predatory lending bill. MBA will support the provision that enacts state pre-emption over local ordinances affecting predatory lending.
LD 526, AN ACT to Ensure Domestic Tranquility proposes to impose a $1 fee on each telemarketing call made by out-of-state telemarketers to residential telephone subscribers. This proposal will assist balancing the budget by depositing these fees into the general fund.
LD 586, AN ACT to Clarify and Improve the Fairness of the Law of Trustee Process is MBA’s proposal to modify the trustee process system for financial institutions. This very important proposal would prevent unjustified windfall judgments against banks for procedural violations in handling the service of process. It limits the judgment to the amount of the defendant’s property actually in its possession up to the amount of the judgment, rather than have the financial institution exposed to liability for the entire judgment against the defendant.
LD 614, AN ACT to Provide Parity in Lending by State-chartered Financial Institutions is introduced on the behalf of MACB, and includes provisions on prepayment penalties, on the 3% interest on escrow requirement, and amends the loans to one borrower law. MBA should support the intent of these provisions though some of the language in the proposal may need revision to accomplish the stated intent of the bill.
LD 615, AN ACT to Protect Citizen Privacy would prohibit consumer reporting agencies from releasing information about a consumer in connection with any credit or insurance transaction without the consumer’s consent.
LD 661, AN ACT to Amend the Laws Governing Privacy of Consumer Financial Information is the major proposal from Opt-in supporters that would place an Opt In provision out to public referendum in November of the year following passage of this LD. MBA will work with other interested groups to defeat this proposal.
· GOVERNOR’S BUDGET AND ITS IMPACT ON BANKS
This past Saturday the Governor released summaries of his budget proposals to balance the state’s general fund budget. Enclosed with this Update is a 2 page summary of major changes to budget items, with information on both revenues and expenditures.
In Table 1-3, which is “Revenue Adjustments” about halfway down the page is the “Estate Tax.” By “decoupling” Maine estate tax from the federal estate tax, the state will save a total of $38 Million dollars in the two year budget. This of course means that Maine fails to adopt the federal estate tax changes, and possibly promoting wealthy Mainers to move their primary residence out of state. MBA’s Trust Committee will assist other interested parties, including CPAs and Trust and Estate lawyers in opposing this. Note also that there are many other places in this budget that does not incorporate recent federal tax changes, such as accelerated depreciation, into the Maine tax code.
Second, the very last line on the same Table 1-3, “Increase Abandoned Property Credit Through a Change in the Holding Period” means the state will gain $8 million over the two years by reducing the abandoned property holding period from 5 years to 3 years. MBA will participate in discussion as to how to implement this proposed change, and may oppose this presumption of abandonment.
· MBA’s LEGISLATIVE COMMITTEE MEETS FEB. 25
Maine Bankers Association’s Legislative Committee will meet Tuesday, February 25th at 9:30, at the Augusta branch of Northeast Bank. It will discuss these and other legislative proposals, including determining the Association’s position and testimony on important banking bills. The next Legislative Committee meetings will be March 25th, April 29th and May 27th.
· BANKERS’ DAY AT THE LEGISLATURE WILL BE APRIL 8
REGISTRATION MATERIALS WERE SENT OUT THIS WEEK.
