January 26, 2001
· MBA’S LEGISLATIVE AGENDA TAKES SHAPE
· BANKING-RELATED LDs PRINTED
· PUBLIC HEARINGS AND WORK SESSIONS SCHEDULED
· BANKERS DAY ON APRIL 10TH AND NEXT LEG COMMITTEE MEETS FEBRUARY 8TH!
MBA’S LEGISLATIVE AGENDA TAKES SHAPE
As reported last time, Maine Bankers Association had developed its Legislative Agenda for this Session. The proposals that will be introduced with the support of MBA are:
AN ACT Conforming Maine’s Telemarketing Laws to Federal Law proposes to remove telemarketers from Maine’s Consumer Sales and Solicitation Act. There is separate Maine law and several federal laws with both FTC and FCC Rules that apply to telemarketers and Maine’s telemarketing industry needs Maine law to be consistent with these federal rules. Senator Susan Longley is the primary sponsor, and co-sponsors include Senate President Mike Michaud and House Majority Leader Pat Colwell. Senator Longley has the bill draft and expects to return it to the Revisors Office within a few days, so this LD should be printed within 7-10 days.
AN ACT to Conform Maine Digital Signature Law to Federal Law is necessary because the Federal Law, E-Sign was passed after Maine law and there are some inconsistent provisions. Members of the real estate title bar have written key legislators suggesting this change is needed.
AN ACT to Create Equitable Taxation of Leased Property is necessary because it removes a sales tax advantage that certain government sponsored enterprises have over financial institution leasing companies. House Majority Leader Pat Colwell is the primary sponsor of this proposal, and other sponsors include members of the Taxation Committee. The bill will be printed in the next two weeks.
AN ACT to Review Securities Division Licensing Prohibition against Dual Employees will be introduced at the request of the Maine Association of Community Banks with MBA’s support. The proposal will clarify how banks sell securities and will authorize activities partially approved in No Action Letters by the Securities Division.
BANKING RELATED LDS PRINTED TO DATE!
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 30days). States where card issuers domicile have a 30-day notice provision. MBA will oppose this proposal, and testify that Maine has de-regulated its credit card provisions over the past ten years and this is a step in the opposite direction. Also, this proposal if passed will apply only to state-chartered banks domiciled in Maine, and not to the banks that issue more than 95% of the cards to Mainers.
LD 57, AN ACT to Require Certain Employees Be Paid on a Weekly Basis is the return of the Bi-weekly pay issue. A number of business groups including MBA will oppose this proposal.
LD 142, AN ACT to Ensure that Persons Issuing Bad Checks are Solely Responsible for Overdraft Charges would prohibit financial institutions from assessing a fee against a depositor if a check is returned for insufficient funds. This proposal has been before the Legislature about 6 times in the past 10 years and would shift costs from those who impose them on the financial check-clearing system to others. MBA will oppose this proposal.
LD 153, AN ACT to Reduce Finance Charges on Consumer Loans amends the Maine Consumer Credit Code’s section that deals with “step-rate” loans on small dollar amounts. While most MBA members do not utilize this section to assess their interest rate charges, MBA likely will oppose this proposal because it restricts the consumer’s access to credit.
LD 157, AN ACT to Clarify Marketing Standards for Telephone Utilities and Competitive Electricity Providers is a proposal from the PUC that is somewhat similar to MBA’s proposal on telemarketing. This LD proposes to have the PUC regulate telephone companies and their telemarketing efforts by amending the Consumer Sales and Solicitations Act. MBA’s proposal affects telemarketers other than the companies.
LD 203, AN ACT to Establish Medical Savings Accounts proposes to exempt savings in Medical Savings Accounts from Maine state income tax. Similar proposals in recent years have not passed, MBA will monitor this proposal at this time.
LD 256, AN ACT to Limit the Interest Rate Charged on Debt to 29 Percent would establish 29% as the highest rate allowable under Maine law for any type of consumer debt, including credit cards. MBA will oppose this proposal that also amends the “step rate” section of the Consumer Credit Code.
LD 270, AN ACT to Create a Resource within State Government to Protect the Privacy of Personal Information, AND LD 299, AN ACT to Implement the Recommendations of the Blue Ribbon Commission to Establish a Comprehensive Internet Policy both impact state regulatory structure over use of the Internet. MBA should be able to support many of the proposals, but will oppose creating an “Office of Privacy” or similar state regulator over privacy. The former LD is a “Concept Draft” meaning the specific language of the proposal has not been printed yet. MBA will attend all hearings on these LDs.
LD 300, Governor’s Budget Proposal, makes budget recommendations for the Operation of State Government for years ending June 30th, 2002 and 2003. Concerns from the business community include major changes to the BETR Program (i.e. eliminating benefits for certain retail businesses and reducing the benefits for forest product companies) and includes amendments to the real estate transfer tax so that it applies to transfers of assets by stock sales. MBA has opposed both of these provisions in the past.
PUBLIC HEARINGS & WORK SESSIONS SCHEDULED
LD 10, Monday, Jan. 29th, Banking & Insurance Committee, 10:00 a.m. Public Hearing
(Work Session is scheduled for Monday Feb. 5 at 10:00 a.m.)
LD157, Thursday, Feb. 1st, Utilities Committee 1:30 p.m. - Public Hearing
LD 300, Governor’s Budget regarding tax changes – combined Hearing before Taxation Committee and Appropriations Committee - Monday, Feb. 5th at 3:00 p.m.
REMINDER: BANKERS DAY @ THE LEGISLATURE IS TUESDAY APRIL 10TH
NEXT JOINT MBA/MACB LEGISLATIVE COMMITTEE MEETS FEB. 8TH
