The Joint Committee on Banking and Insurance will have one new state senator and five new house members this session. Senate Chair, Senator Lloyd LaFountain of Biddeford and House Chair, Representative Jane Saxl will formally welcome six new members to the Banking and Insurance Committee this week.

Replacing State Senator Robert Murray of Bangor as the second ranking Senate Democrat will be freshman Senator Neria Douglas of Auburn. Murray will continue to chair the Criminal Justice Committee and will also be on the Education and Cultural Affairs Committee. Neria Douglas defeated Representative Bob Winglass of Auburn for the Senate seat vacated by term limited Senator John Cleveland of Auburn. Senator Joel Abromson of Portland returns as the ranking Republican Senator.

Joining the Banking and Insurance Committee as new House members are Representative Benjamin Dudley (D) of Portland, Representative John Richardson (D) of Brunswick, Representative Nancy Sullivan (D) of Biddeford, Representative Kevin Glynn (R) of South Portland, and Representative Robert Nutting (R) of Oakland. All of the new members are freshmen legislators. We consider this to be an excellent representation of the freshman class. There will much educating and sharing of information to do; however, with the participation of local contact bankers like you we are confident that their questions and concerns will be successfully answered

Not returning to the Committee are Representative Joe Bruno (R) of Raymond, who has moved to Appropriations; Representative Tom Davidson (D) of Brunswick, who will be the House Chair of Utilities; Representative Steve Stanley (D) of Medway, who has moved to Taxation; and Representatives Julie Winn of Glenburn and Joe Carleton of Wells, who did not run in November.

Returning House members are Representative Christopher O'Neil (D) of Saco, Representative Joseph Perry (D) of Bangor, Representative Arthur Mayo (R) of Bath, and Representative Sumner Jones (R) of Pittsfield.

If you or any of your associates know any of the 1999 Committee Members, especially the new members, and would be willing to serve as a local contact banker with the committee members, please contact either Mark Walker or Joe Pietroski at the MBA office.

• The 1999 Banking and Insurance Committee members are:
• Senate Lloyd LaFountain, Chair, (D-Biddeford)
• Neria Douglas, (D-Auburn)
• Joel Abromson (R-Portland)
• House Jane Saxl, Chair, (D-Bangor) Christopher O'Neil (D-Saco)
• Joseph Perry (D-Bangor) Benjamin Dudley (D-Portland)
• John Richardson (D-Brunswick) Nancy Sullivan (D-Biddeford)
• Arthur Mayo (R-Bath) Sumner Jones (R-Pittsfield)
• Kevin Glynn (R-South Portland) Robert Nutting (R-Oakland)

**** OVER 3,000 BILLS WILL BE FILED FOR THE FIRST REGULAR SESSION OF THE 119^TH LEGISLATURE!

A record number of Legislative Documents (LDs) have been filed for the First Regular Session of the 119^th Maine Legislature. As of the end of December, there were 2,910 LDs filed by legislators, and there will also be LDs filed by the Administration and by Committees that have performed summer/fall Studies, bringing the total number of legislative proposals to more than 3,000. In 1997, the prior record for number of legislative proposals, there were approximately 2,200 LDs filed.

All these proposals will be reviewed by MBA staff, and those that impact banks will be distributed by our office to the MBA Board, all member CEOs, the MBA Legislative Committee members, and many will be sent to you, our contact bankers. As you read titles or discussion about these proposals, please contact either Mark Walker or Joe Pietroski with any comments or questions at the MBA office.

A) AN ACT to Amend the Maine Banking Code Regarding Extensions of Credit, which amends 9-B MRSA Sec. 439-A and grants the Superintendent of Banking authority to waive the requirement that bank directors must approve extensions of credit in excess of 10% of total capital.

B) AN ACT to Amend Maine’s Payroll Processing Laws would require payroll processing companies to be bonded or have liability insurance.

3. AN ACT to Repeal Maine’s Rule VS. Perpetuities

D) AN ACT to Attract Mutual Fund Companies to Maine would amend Maine’s tax laws so that Maine would be competitive with nearby states, like New Hampshire and Rhode Island in attracting mutual fund companies into the state.

1. MAINE ASSOCIATION OF COMMUNITY BANK PROPOSALS

1. AN ACT to Amend the Laws Regarding Abandoned Property would clarify when accounts are inactive and what banks must do to prove they have an active account with their customer. The Maine Funeral Directors will support this effort, since some mortuary trust accounts have been considered "abandoned" and therefore must be turned over to the state.
2. AN ACT to Clarify the Liability of Financial Institutions Related to the Year 2000 Bug would require privity of contract between parties before someone could bring suit against a Maine bank.
3. AN ACT to Protect Consumers in Real Estate Mortgage Transactions would amend certain provisions of Title 9-A regarding Truth-in-lending.

1. SUMMER/FALL BANKING-RELATED STUDY GROUPS

1. STUDY OF MAINE’S TAXATION OVER FINANCIAL SERVICES PROVIDERS. This study resulted in no major proposals to change the taxation of banks. It also did not propose to extend "nexus", or the state’s jurisdiction to tax, to one of economic nexus. This Study will produce a Report to the Taxation Committee, and MBA will monitor and participate in all discussion about this

   Report and any other financial service tax bills.

2. MORTUARY TRUST STUDY

This Study reviewed Maine’s laws regarding mortuary trust accounts, and what rights funderal directors have for investing funds they receive from clients for pre-need funeral expenses. Current law strongly favors deposits in insured financial institutions, and there is little change to this current law found in the final Report from the Study. Some funeral directors sought additional options such as insurance, but that was not recommended in the final report.

1. Banking Bills Printed

1. LD 17, AN ACT to Require a Mortgagee to Notify Annually the Municipality in Which Mortgaged Property is Located, would place a notification burden on mortgage servicers to notify the town in which the property is located about the name and address of the current mortgagor and mortgagee.
2. LD 20, AN ACT to Prohibit the Taxing of Veteran’s Pensions, is one of several LDs expected from Governor’s Study Group that strives to make Maine more attractive for retirees. MBA participates with and supports the efforts of this group.
3. LD 35, AN ACT to Authorize a General Fund Bond Issue to Create Affordable Housing would provide $10,000,000 in bond money for affordable housing for the homeless and mentally ill.

1. Banking bills from State agencies