The First Regular Session of the 119^th Legislature is reviewing the more than 600 LDs already printed – in just the first two weeks! As reported last time, there are more than 3,000 LDs expected this Session. The 119^th has organized its Committees and their Chairs, assigned the 600+ LDs to their appropriate Committee and now Public Hearings begin next week – our first banking bill will heard Monday, January 25^th before Banking and Insurance. Please stay tuned to these Updates, and when asked, please be ready to contact local legislators about our key banking issues. REMEMBER! If a local legislator hears from just 3 or 4 constituents about one LD, they think its of vital interest to the industry! Your calls and contacts are most important to our success!

• Banking-related LDs printed to date!

LD 17, AN ACT to Require a Mortgagee to Notify Annually the Municipality in Which Mortgaged Property is Located, would require all Maine lenders to provide every municipality with a list of those properties where they hold a mortgage. This proposal was before the Banking and Insurance Committee two years ago, and MBA successfully opposed the bill. It would add significant costs to servicing these loans.

LD 20, and LD 146, would exempt Veteran’s Pensions (LD 20) and all Pension and Retirement Benefits (LD 146) from the state income tax. These proposals will be monitored by MBA and are supported by a Retirement Study Group that hopes to make Maine more attractive as a retirement location.

LD 63, AN ACT to Exempt Leased Equipment from Sales Tax is strongly supported by MBA and other groups that want to change current tax law that disallows a sales tax exemption for equipment leased and used in the manufacturing process. Maine is the only state in the country that does not authorize such an exemption for leased equipment.

LD 97, AN ACT to Require Mortgage Holders Who Escrow Property Taxes to Reduce the Escrow Account Due to the Homestead Exemption would mandate a reduction to all escrow accounts by the current $7,000 Homestead exemption. This proposal would create administrative problems for member banks.

LD 116, AN ACT to Protect Consumers in Real Estate Mortgage Transactions originates from Director Lund of the Office of Consumer Credit Regulation that responds to public concerns that mortgage closing organizations do not always have funds available on the day of closing. Though the industry can support the concept of this bill, the current draft may affect complex commercial transactions as well as home mortgage closings. Director Lund is working with industry groups to re-draft some sections of the LD so that the impact is more limited.

LD 161, AN ACT to Establish a Lead Abatement Revolving Loan Fund… proposes to create a Tax Credit for Day Care facilities for expenditures required to comply with the Lead Poisoning Control Act. It also creates a fund administered by the Maine State Housing Authority to assist certain property owners with lead cleanup. There will be other lead poisoning legislation later during this session and MBA monitors all of these proposals.

LD 208, AN ACT to Prohibit Intrastate Telemarketers from Blocking Caller ID would prohibit entities conducting intrastate telephone solicitation from using caller-ID blocking. MBA strongly opposes this proposal and is working with other industry groups, including Bell Atlantic, to defeat this proposal. It could create administrative difficulties for any bank doing telephone banking.

LD 240, AN ACT to Amend the Maine Banking Code as it Pertains to ATM Surcharges would clarify current Maine law so that banks and credit unions are allowed to enter into agreements not to impose surcharges on ATM transactions. MBA will support this proposal as drafted and will make sure that any final bill does not interfere with any banks ability to surcharge for ATM usage if they so desire.

LD 303, AN ACT to Amend the Uniform Unclaimed Property Act has been introduced on behalf of the Maine Association of Community Banks and is supported by MBA. Key provisions clarify reporting burdens and constructive receipt definitions.

LD 318, AN ACT to Allow Counties to Retain a Larger Share of the Real Estate Transfer Tax would increase the portion of the transfer tax retained by counties by 3% per year for 5 years, reaching a maximum of 25%. There will be other proposals regarding use of the real estate transfer tax during this session. Currently the tax is split between the counties, the state general fund and MSHA.

LD 496, AN ACT to Abrogate the Rule Against Perpetuities would repeal Maine’s Rule against Perpetuities. This proposal originated from the Retirement Study Group and was introduced by MBA for the benefit of this group. More than half of the states now have repealed their rule against perpetuities, allowing so-called "dynasty" trusts.

LD 605, AN ACT to Clarify the Probate Code Regarding Durable Financial Powers of Attorney has been introduced on behalf of the Maine Bar Association and clarifies the effective date to changes made as emergency legislation last session. MBA should support this proposal, as the 1998 emergency legislation renders ineffective durable financial powers of attorney executed after Sept. 19, 1997 and prior to April 3, 1998. This bill delays the effect of the 1998 changes to December 31, 1998.

• Public Hearings have been scheduled for the following LDs:

LD 116 (Protect Consumers in Real Estate Transactions) and 240 (Amend ATM Surcharge law) Before the Banking and Insurance Committee on Monday, January 25^th at 1:30 p.m.

LD 208 (Prohibit Telemarketers from blocking Caller Ids) – Before the Utilities and Energy Committee on Tuesday, January 26^th at 9:00 a.m.

LD 17(Notify Municipality in which Mortgaged property is located) – Before State and Local Government on Wednesday, January 27^th at 1:00 p.m.

LD 97 (Escrowed Property Taxes to Consider Homestead Exemption) – Before Banking & Insurance on Monday, February 1 at 1:30 p.m.

LD 496 (Rule Vs. Perpetuities) – Before Judiciary Committee Wednesday, Feb. 3^rd at 1:30 p.m.

LD 161 (Lead Poisoning Abatement Fund) – Before Taxation Wednesday, Feb. 3^rd at 1:15 p.m.

• Maine Bankers Association to Host Legislative Functions