LEGISLATIVE UPDATE - I

LEGISLATIVE UPDATE                                          VOLUME 1 – 2001
January 12, 2001 

·                     Banking and Insurance Committee named – 5 new members!

 ·                     2,500 Bills filed for First Regular Session of the 120^th Legislature 

·                      MBA Legislative Agenda for 2001 

·                     Banking-related issues from other Sources

·                     Bankers Day at the Legislature scheduled for April 10^th!

 

LEGISLATIVE LEADERSHIP NAMES BANKING & INSURANCE COMMITTEE

 Senator Lloyd LaFountain (D-York County) returns as Senate Chair and Representative Chris O’Neil (D-Saco) will serve as the House Chair of the Banking & Insurance Committee for the 120^th Maine Legislature.  They welcome 11 other legislators who will review legislation dealing with banking and insurance issues.  These legislators are: (Legislators in bold are new to the committee and also are first-term legislators.

 Senator Joel Abromson (R-Cumberland)                Senator Neria Douglas (D-Androscoggin)
Rep. Ben Dudley (D-Portland)                                  Rep. Nancy Sullivan (D-Biddeford)
Rep. Arthur Mayo (R-Bath)                                        Rep. Kevin Glynn (R- S. Portland)
Rep. Marilyn Canavan (D-Waterville)                    Rep. Lisa Marrache (D-Waterville)
Rep. William Smith (D-Van Buren)                         Rep. Phil Cressey (R-Baldwin)
Rep. Florence Young (R-Limestone)  

 APPROXIMATELY 2,500 BILLS FILED FOR FIRST REGULAR SESSION OF 120^TH MAINE LEGISLATURE

 The 2,500 LDs expected during the First Regular Session of the 120^th Maine Legislature are the second most ever in one year – yet the legislature is applauding itself for restraint since this number is nearly 500 LDs less than were filed two years ago!!  The actual number of printed LDs will be less because many are duplicates or will be withdrawn after review and “redlining” by the Revisor of the statutes office.  In any event, your Association will once again review every printed LD, pull and monitor all banking-related legislation and contribute and lobby on many important business issues this year.  The first public hearings will be in early February for the banking and insurance committee, and other committees will begin either in late January or early February.

For much of the Session, the Legislature will be focused on certain key issues:

-          the budget, as there is a structural gap of over $200,000,000.  Cutting spending or increasing revenues will be debated throughout the year.  Tax issues will certainly be on the legislature’s agenda this session.

-          Health care issues – as the cost of health care increases, and more Mainers are uninsured, the legislature will review numerous proposals that will affect the cost and availability of health care.

-          Education funding issues – local governments will again press for greater shares of the costs of education to come from the State, which of course creates budget tension when there is already a shortfall. 

MBA 2001 LEGISLATIVE AGENDA

 Maine Bankers Association is working on several important legislative issues and has had introduced on its behalf the following LDs:

 AN ACT Conforming Maine’s Telemarketing Laws to Federal Law, which would remove telemarketers from Maine’s Consumer Sales and Solicitation Act.  This law was passed in the 60s and regulates sales by door-to-door salesmen.  The definitions in the Act are broad enough to include telemarketing into the household as the same as door-to-door sales.  The AG’s office agrees that there is sufficient law directly impacting telemarketing and has not been enforcing the Consumer Sales and Solicitation Act against telemarketing companies.  Many business groups believe it is urgent to clarify Maine law so as to remove telemarketers from this Act, making Maine law consistent with federal law and FTC rules governing telemarketing.

 AN ACT to Conforming Maine Digital Signature Law to Federal Law is necessary because several non-uniform sections of Maine law would be pre-empted by more recently enacted federal laws.  Repealing the non-uniform sections of Maine law will avoid confusion and ready Maine for electronic transactions.

 AN ACT to Create Equitable Taxation of Leased Property was prepared by a trade group of leasing companies working with MBA.  This legislation is necessary because certain tax-exempt government entities gain a market advantage because leasing companies and banks have to pay sales tax on the leased equipment, whereas the government sponsored enterprises do not.  The federal law allows states to remove tax exemptions if other companies have to pay it.  Farm Credit has been leasing equipment without paying a sales tax, while Maine banks and other leasing companies have to include the sales tax in their costs.  This bill will level that playing field!

 AN ACT to Review Securities Division Licensing Prohibition against Dual Employees will be introduced on behalf of the Maine Association of Community Banks with support of the Maine Bankers Association. This bill would clarify how banks can sell securities.  Maine law now may be a barrier for using dual employees between a registered broker-dealer and a bank.  This proposal would authorize activity that has been at least partially approved by the Securities Division in No Action Letters.

 BANKING RELATED ISSUES FROM OTHER SOURCES 

The following issues will be heard by the Maine Legislature this Session:

 LD 10, AN ACT to Require Credit Card Issuers to Provide Greater Notice of Changes in Terms proposes to require banks to give 90 day notice prior to any changes in terms (current law is 30 day notice).  This would place Maine law in contrast to the vast majority of states and would only impact a very few Maine-based issuers of cards.  MBA has worked hard over the past decade to have Maine laws the same as those laws from states where many credit card issuers are domiciled and as a result has attracted credit card issuers to Maine.

 LD 57, AN ACT to Require Certain Employees Be Paid on a Weekly Basis, is the return of the Bi-weekly pay issue.   MBA, the State Chamber, and other business organizations will continue to oppose this legislation as a very anti-business bill.

 (The following LDs are not printed yet, but drafts have been made available to the MBA office)

 AN ACT to Amend the Maine Banking Code, proposed by the Maine Bureau of Banking and has a number of housekeeping amendments. 

 

AN ACT to Conform the State’s Financial Services Privacy Laws with Federal Law is from the Department of Professional and Financial Regulation and intends to bring Gramm Leach Bliley into Maine law.  However, in early drafts there have been some provisions that are not uniform with G/L/B.  After comments from interested parties, including MBA, the department will change certain provisions.

 

There will be groups that oppose the proposal, including the Association of Credit Bureaus which represents the credit reporting agencies.  One of their arguments against this proposal is that it incorporates into state law rules from the federal agencies – which is an unconstitutional delegation of power!  Several Maine attorneys have made this argument. 

 

MBA President Joe Pietroski is working with the Bureau of Banking and other agencies within the department to schedule a meeting so that all parties understand where the proposal is headed and if there will be additional changes to it.  

 

AN ACT to Require Privacy Policies Governing Information Obtained on the Internet may be proposed by the Internet Policy Study Commission.  One proposal presented to this study commission was to create an Office of Privacy and/or the equivalent of a “Privacy Czar.”  We will oppose this suggestion if it is offered as part of any legislation.  The Maine Civil Liberties Union introduced and recommended passage of this proposal.

 

AN ACT to Replace the Bureau of Banking Securities Division with the Office of Securities within the Department of Professional and Financial Regulation would move the state’s security regulation division into its own separate office within the department.  MBA frequently works with the securities chief and will monitor this proposal.

 AN ACT to Amend the Maine Insurance Code to Permit the Issuance of Master Policies Covering Certain Types of Property and Casualty Insurance may impact how banks may sell mortgage insurance and other credit insurance products.  The industry is still reviewing this draft proposal for its impact on groups enrolling customers into a group product.

 AN ACT to Change the Name of the Bureau of Banking in Order to Accurately Reflect the Scope and Variety of Entities Regulated by the Bureau was introduced on behalf of the Maine Credit Union League to change the Bureau of Banking’s name to the Bureau of Financial Institutions.

 BANKERS DAY AT THE LEGISLATURE SCHEDULED FOR TUESDAY APRIL 10^TH

 Last year the Maine Bankers Association and Maine Association of Community Banks sponsored Bankers Day at the Legislature, and it was a tremendous success.  Legislators welcomed the participation and shadowing by bankers and was one of the better “days” at the legislature. More than 100 bankers participated in the program.

 This year, Bankers Day will be scheduled for Tuesday, April 10^th and we hope to have even greater participation by bankers.   Our goal is to have one banker for each of the 186 legislators!  Our theme will continue recognition of the industry’s participation in America’s Promise program and our employee volunteers.  Look for more details in the next few weeks! 

 

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