January 24, 2003
LEGISLATIVE UPDATE #2 January 24, 2003
· INSURANCE AND FINANCIAL SERVICES COMMITTEE ACTIVITIES
· MANY INDUSTRY-RELATED PROPOSALS PRINTED
· MBA LEGISLATIVE COMMITTEE MEETS JAN. 28TH
The pace of activity has picked up, with more than 270 Legislative Documents (LDs) printed, with Committees holding orientation and introductory sessions, with Leadership setting priorities and rules for the Session, and budget issues still the predominant item of discussion. Public Hearings on LDs will begin for some Committees next week, but the first week of February will find the Committees with full schedules.
*INSURANCE AND FINANCIAL SERVICES COMMITTEE ACTIVITIES
The Insurance And Financial Services Committee (formerly the Banking and Insurance Committee) held its Lobbyist introduction session on Wednesday, Jan. 22nd. This session is for lobbyists who appear before the Committee on insurance, banking or financial service to introduce themselves to the Committee, explain the interests of their clients before this Committee and briefly mention some of the expected issues these organizations might expect this Session. Maine Bankers Association attended this session and talked about banking and other issues they would appear on this year.
On Monday January 27th, there will be a joint meeting between the Appropriations Committee and the Insurance and Financial Services Committee, to discuss funds held by the Department, specifically including the Bureau of Financial Institutions, and whether they can be transferred to the General Fund. Of course the Bureau of Financial Institutions hold more than $1,000,000 raised from banks and credit unions that it regulates, funds that are to cover future examination and administration costs and other Bureau budget items. Maine Bankers will monitor this session, and opposes any “sweep” of Bureau funds into the General Fund.
On Monday, February 3rd the Committee will consider the Nomination of Buddy Murray for the position of Commissioner of the Department of Professional and Financial Regulation. Murray is a former legislator who served on the Committee with jurisdiction over banking issues, and is a lawyer from Bangor. His nomination should be strongly supported by the Committee.
· MANY INDUSTRY-RELATED BANKING PROPOSALS PRINTED
The following LDs relating to banking have been printed:
LD 76, AN ACT to Ease Congestion in the Courts, proposes to ease court congestion by eliminating the requirement that executions be issued by the clerks to initiate disclosure proceedings and to perfect liens. Some filings in County Courts are taking many weeks, and this should speed the perfection of liens and other filings.
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 would require the Superintendent of Financial Institutions to establish criteria by rule, allowing a credit union to expand its field of membership from one or more select employer groups, to combine with a community-based field. Currently federal law does not allow or authorize this type of field of membership expansion and under State Law, the Superintendent doesn’t have authority to go beyond federal law.
LD 202, AN ACT to Make Certain Housing an Acceptable Use of Tax Increment Financing, expand TIF financing to include affordable housing development costs as approved by the Maine State Housing Authority.
LD 216, AN ACT to Provide Income Tax Deductions for a Qualified State-sponsored 529 Plan for Higher Education Expenses would expand the tax advantages of Maine’s College Savings Program. There will be additional Section 529 Plan legislation filed this Session, and banks have been allowed to offer 529 Plans, as well as sign on with the State to hold some of the deposits from these funds.
LD 255, AN ACT to Control Internet Spam, sponsored by Rep. Goodwin, would restrict unsolicited commercial e-mail including solicitations for credit. This will be one of several SPAM bills.
In the next few weeks we expect legislation on privacy, predatory lending, various tax proposals regarding the estate tax, BETR and the bank franchise tax, paid family medical leave and a host of workers comp and other labor initiatives. Also expected soon are a number of banking specific bills, including two originating from Maine Bankers Association.
* MBA LEGISLATIVE COMMITTEE TO MEET JAN. 28TH
These and other issues will be discussed at the Maine Bankers Association Legislative Committee on Tuesday, January 28th, 9:30 a.m. at the Northeast Bank branch in Augusta. One goal of this meeting is to prioritize Association issues for 2003.
