LEGISLATIVE UPDATE – JANUARY 27, 2000
- UPDATE ON MBA BILLS
- OTHER BANKING-RELATED BILLS – SEE LD 2182, SUGGESTING FAME ADMINISTER A LOW COST AUTO LOAN PROGRAM!
- LEGISLATIVE COMMITTEE TO MEET FEBRUARY 3, 2000
- REMINDER – BANKERS DAY AT THE LEGISLATURE ON MARCH 21
The Second Regular Session of the Maine Legislature is working diligently to complete its work by March 31st. This is an extremely aggressive schedule and one that is driven mostly by the construction schedule to remodel the State House. Of course Legislative Leadership will save money from the Legislative budget if they adjourn earlier than the mid-April statutory adjournment date.
- MBA SPONSORED BILLS
LD 2259, AN ACT to Amend the Maine Banking Code Pertaining to Interlocking Directors
has been voted unanimous ought-to-pass by the Banking and Insurance Committee. The LD was amended to include an Emergency Preamble so that the change will take place immediately upon the Governor’s signature. The bill should be before the full House and Senate next week.
LD 2285, AN ACT to Amend Maine’s Probate Code had its Public Hearing on Jan. 19th, and its work session Jan. 26th. At the Public Hearing, an attorney representing the Legal Services for the Elderly opposed this bill, which proposes to clarify that percentage fees for trustees are authorized under Maine law. At the work session, a compromise was reached allowing percentage fees as long as they are "reasonable" under certain criteria that will be listed in the statute. MBA can support this compromise and will assist with the drafting of the amendment. The Judiciary will support this proposal once the compromise language is finalized.
LD 2400, AN ACT to Create Employment Opportunities by Clarifying Maine’s Tax Laws Regarding Mutual Fund Companies will have its Public Hearing Tuesday, Feb. 1. Maine Bankers Association is working with the Department of Economic and Community Development (DECD), the Department of Professional and Financial Regulation and with Bureau of Revenue Services to craft language that clarifies Maine’s tax code so as to attract mutual fund company operations into Maine. DECD is presently negotiating with at least one mutual fund services company to locate certain operations in this state, but this tax clarification is needed in order for Maine to be considered as a location.
- OTHER BANKING-RELATED BILLS
LD 1166, AN ACT to Establish OSHA Standards for Operators of Video Display Terminals
was carried over from last year to determine if OSHA would indeed develop new standards for operating VDTs. Many Maine business groups, including MBA, were concerned that the state standards may exceed federal rules. However, the Labor Committee agreed that OSHA is developing new rules and that Maine should adopt these rules so this LD was withdrawn.
Several Pension Taxation LDs were reviewed by the Taxation Committee, which will support amending Maine’s income tax laws to exempt a portion of pension income from the income tax. MBA’s Board has supported making Maine tax laws more attractive so retirees will move to or remain in Maine.
Telemarketing Fraud Legislation continues to be an issue, as the Attorney General’s office, represented by Assistant Attorney General Jim McKenna, will present his analysis of current telemarketing laws and fraud that occurs in the marketplace. His presentation will be before the Utilities Committee on February 2nd. AARP has developed model legislation that is under consideration by the Utilities Committee and goes beyond current state and federal laws.
LD 1824, AN ACT to Encourage Equity Equivalent Loans or Investments in Community Development Financial Institutions has had two work sessions and continues to be studied by the Taxation Committee. MBA has supported this proposal, which seems to have Committee support if they can work out agreeable language with the Maine Revenue Services.
LD 2182, AN ACT to Implement the Clean Vehicle Incentives Program, is a major proposal studied this past summer by interested groups who strive to implement an incentive program so that more Mainers buy low emission autos. MBA has become involved because one proposal now before the Natural Resources Committee is to have FAME administer a low-cost auto loan program (target interest rate is 3%) funded by Tobacco settlement revenue. The original proposal has been covered in the media and proposed a rebate of up to $2,000 or more for purchasing low emission vehicles. Some Legislators consider the loan program as less expensive and a better way to target participating purchasers.
Among MBA’s criticisms of this proposed program is that the definition of "low emission vehicle" include five of the best selling cars in the state of Maine. Some observers estimate that half of new cars sold in Maine would qualify for the low cost loan program! MBA will oppose this proposal, which at worst seems likely to be delayed for summer study and re-introduced in 2001.
LD 2283, AN ACT to Realign Capital Requirements for Specialty Bank Charters was unanimously passed by the Banking and Insurance Committee and will be before the full House and Senate next week.
LD 2373, AN ACT to Prevent Misuse of Mortuary Trust Funds is scheduled for Public Hearing on Feb. 7. This LD proposes to amend current law so that the funeral director is limited as to the circumstances when he can withdraw funds from a mortuary trust account. As drafted this LD does not change the requirement that banks must be used as depository for these accounts.
THE JOINT MBA/MACB LEGISLATIVE COMMITTEE WILL MEET THURSDAY, FEB. 3RD AT THE AUGUSTA CIVIC CENTER – PLEASE CONTACT US WITH ANY QUESTIONS ABOUT ANY LD LISTED!
REMINDER – BANKERS DAY AT THE LEGISLATURE IS MARCH 21ST !
PLAN TO ATTEND!
