LEGISLATIVE UPDATE
Volume 6 - 1999
April 1, 1999
UPCOMING LEGISLATIVE HEARINGS:
TUESDAY, APRIL 6 - BANKING & INSURANCE COMMITTEE 1:00 pm
LD 1719, AN ACT to Amend the Maine Banking Code Regarding Extensions of Credit (MBA BILL) – sponsor: Senator Joel Abromson
LD 1732, AN ACT to Prohibit Certain Bank Penalties – (MBA Opposed)
LD 1777, AN ACT to Update the Laws Concerning Pre-arranged Funerals – (MBA will monitor, supports much of the LD)
WEDNESDAY, APRIL 7TH TAXATION COMMITTEE 1:15 pm
LD 1824, AN ACT to Encourage Equity Equivalent Loans or Investments in Community Development Financial Institutions (MBA supports)
WEEK OF APRIL 12TH BANKING & INSURANCE COMMITTEE TBA
LD 1991, AN ACT to Protect Customers of Nonbank Cash-dispensing Machines (MBA supports concept – but will request modification so as not to allow transfers between customer accounts)
- REVIEW OF MAJOR BANKING LEGISLATION
LDs 63, 1274, Regarding Sales Tax Treatment of Leased Equipment. The Taxation Committee has unanimously passed LD 1274, the narrower version of these bills, which is limited to sale/leaseback transactions for equipment used in the manufacturing process. MBA worked with Maine Revenue Services, Tax Committee members including sponsor Senate Chair Dick Ruhlin, and other business groups to convince Committee members that this is an important business development issue.
LD 292 – AN ACT to Enhance the Payment Options for Certain Employers is the LD that will be used to address this very important business issue! MBA testified in support of the LD, and is working with various business groups, including the State Chamber, Hotel and Restaurant Association and National Federation of Independent Business to pass this LD. Bankers are asked to contact local legislators on this LD during the next week. A legislative alert on LD 292 accompanies this update. As drafted, the law would allow employers to pay their employees weekly, bi-weekly or semi-monthly.
LD 458 – AN ACT to Ensure Fair Taxation of Insurance and Securities Sales has received an Ought Not to Pass report. The Taxation Committee has followed the recommendations of the special committees on Financial Service Taxation. The Maine Revenue Service will report next year on the impact of bank-owned insurance agencies paying the franchise tax.
LD 1166, the Video Display Terminal proposal, will be on the Floor of the senate in the next several weeks – the Labor Committee reported this LD out in a divided report.
LD 1206, AN ACT to Provide for the 1999 and 2000 Allocations of the State Ceiling on Private Activity Bonds has had its Public Hearing and the work session is scheduled for April 7th. Maine Bankers has taken a Neither For Nor Against position, as member banks use student loan programs from both MES and FAME/FISC. The amended version of this bill presents an interesting public policy question, making the state bond money available directly to banks, subscribing for the loan money through FAME because of questions raised. A number of legislators favor an independent study of this situation.
LDs 1245 and 1282, Regarding Maine Laws on Negotiating A Worthless Instrument. MBA and several retailer groups testified before the Criminal Justice Committee that these crimes go unprosecuted and the law (and penalties) should be strengthened. The Committee was very receptive, and while they are unsure the law needs to be changed, they will write each District Attorney in Maine and request that they fully prosecute bad check crimes. MBA will arrange meetings with local bankers, legislators and their region’s District Attorney this fall, after the letters have been written. The committee will monitor future response from the District Attorneys.
LD 1402, An Act to Create the Telemarketing Registration and Fraud Prevention Act has been significantly changed by an amendment passed by the Utilities and Energy Committee. The amendment replaces the bill by changing the title to "Resolve, Relating to Telemarketing Fraud" and by striking out everything contained in the original bill. The amendment also includes new language allowing the Committee to report out legislation related to telemarketing fraud next year. The Committee has also written to the Attorney General requesting that the Attorney General work with interested parties in developing proposals for addressing telemarketing fraud and for the Attorney General to provide a written report to the Committee. This amended version of LD 1402 will be subject to votes in the House and Senate; however, the letter to the Attorney General requesting the study and his input has already
LD 1437, AN ACT to Reorganize the Real Estate Appraisal Law has been unanimously passed as amended by the Business and Economic Development Committee. MBA supported the amended bill that retains current appraisal law.
LD 1586, AN ACT to Require a Mortgagee to Record the Discharge of a Mortgage Within 30Days was heard March 29th, and the sponsor wants Maine law to require banks to discharge mortgages within 30 days or face very very steep penalties. MBA testified against this LD, but the Committee seems likely to pass some new requirements. Other New England states have requirements that discharges must occur between 45 and 60 days, with penalties of up to $2,500. We will continue to work with the sponsor, Committee members and regulators on this issue.
- UPDATE ON MBA/MACB SPONSORED LEGISLATION
LD 496, MBA’S LD THAT REPEALS THE RULE vs PERPETUITIES has been voted out of Committee with a Unanimous Ought-to-Pass, but has been held pending final language of an Amendment. The Committee Analyst has just received information from Maryland regarding how that state worded its law on this issue.
LD 869, MBA’s AN ACT to Amend Maine’s Payroll Processing Laws has received an Unanimous Ought-to-Pass Report from the Business and Economic Development Committee. The law will require payroll processing companies to obtain either liability insurance or bonding equal to 2 times its weekly payroll processing.
LD 1155, MACB’s AN ACT to Amend Maine’s Abandoned Property Laws, makes needed changes to our Abandoned Property laws and received a Unanimous Ought-to-Pass Report from the Judiciary Committee. The LD clarifies the abandonment of certain types of accounts (Minor’s Trust Accounts, Mortuary trust accounts and renewable CDs) and when a bank must reverse fees on inactive accounts.
LD1608, MACB’s AN ACT to Conform Maine’s Consumer Credit Laws to Federal Laws has been reported out of the Banking & Insurance Committee Ought to Pass. When finalized, these changes would allow repossession fees for consumer credit leases and make Maine’s truth in lending laws more like the federal laws.
