LEGISLATIVE UPDATE/TRACKING REPORT February 8, 2005
As of Monday, February 7th, more than 600 LDs have been printed – approximately 1/3 of the total! To date, none of our Maine Bankers Association proposals have been printed. The Maine Association of Community Banks one proposal, LD 464, AN ACT to Prohibit Certain Uses of a Financial Institution’ Name will have a Hearing in early March.
We know that there will be 4-6 LDs dealing with Gift Cards; several additional ID Theft proposals; Health Savings Accounts and other important issues facing our industry that have not been printed as of yet.
Yet most of Maine Bankers Association’s attention will be on tax issues – LD 476, AN ACT to Increase the Bank Franchise Tax, will require local banker contacts – watch for Legislative Alert Notices! There will be a proposal to tax credit unions for the first time – again – watch for Contact requests! Also, Maine Bankers Association will seek amendments to the Non-resident income tax provisions passed last year, and LD 236 would repeal that provision. The industry is also supporting changes to Maine’s estate tax, seeking at least partial conformity with the federal estate tax provisions.
Hearings have been scheduled through February 28th – LDs on this list that have not been scheduled for hearing, as well as LDs not yet printed, will be scheduled for March or after.
I. PUBLIC HEARINGS/WORK SESSIONS HELD -
a. LD 6, AN ACT to Prohibit a Credit Card Processing Company from Charging a Termination Fee (Unanimous Ought Not to Pass) MBA opposed.
b. LD 41, AN ACT to Prohibit Credit Card Companies from Charging Late Fees on Certain Accounts (Unanimous Ought Not to Pass) MBA opposed
c. LD 24, AN ACT to Provide for Efficient Administration of Family Development Accounts – Hearing held, Work Session 2/9 – MBA Position: Monitor
d. LD 58, AN ACT to Support Payroll Processors – Hearing Held, Work Session TBA Later in Session – MBA Position: Oppose (See LDs 208, etc)
e. LD 83, AN ACT to Prohibit Payment Card Skimming – Hearing held, Work Session 2/9 – MBA Position: Support
f. LD 162, AN ACT to Protect the Rights of Leaseholders and Ensure Their Continued Access to Land – Hearing held on 2/2, Work Session Later in Session MBA Position: Monitor
II. MAJOR LDS PRINTED, AWAITING HEARINGS
a. LD 112, AN ACT to Conform Maine Estate Tax Law with Federal Estate Tax Laws – MBA Position: Support (Public Hearing before Appropriations, dealing with “all tax conformity issues, generally” will be held on 2/15 at 1:30 pm
b. LD 159, AN ACT to Restrict Undocumented Mortgage Agreements, Hearing 2/10 at 1:00 pm Bill will have Amendment proposed completely replacing the LD – MBA Position: Monitor
c. LD 195, AN ACT to Conform the Maine Tax Code with the Federal Health Savings Accounts Laws – MBA Position: Support (See also LD 442)
d. LD 227, AN ACT to Ban ATMs from within 500 feet of Slot Machine Facilities, Hearing is 2/14 at 1:00 pm, MBA Position: Monitor
e. LD 236, AN ACT to Change Nonresident Income Tax Filing Requirements – MBA Position: Support
f. LD 260, AN ACT to Amend the Laws Governing Mechanics Liens, Hearing is 2/8, 2:30 pm MBA Position: Monitor
g. LD 414, AN ACT to Require a Credit Card to Contain the Photo and Signature of the Cardholder – MBA Position: Oppose Hearing is 2/17 at 10:00 a.m.
h. LD 432, AN ACT to Increase from 90 to 120 Days the Time Frame to File Contractor Liens – MBA Position: Oppose
i. LD 436, AN ACT to Eliminate Estate Taxes on Family –Owned Businesses – MBA Position - ?
j. LD 464, AN ACT to Prohibit Certain Uses of a Financial Insitution’s Name – Introduced at the Request of MACB – MBA Position - ?
k. LD 471, AN ACT to Prohibit State Agencies from doing business with firms who Outsource – MBA Position: Oppose – No Hearing scheduled to date
l. LD 476, AN ACT to Increase the Franchise Tax on Financial Institutions – MBA Position – Oppose?
m. LD 509, AN ACT to Adopt the Maine Uniform Securities Act – MBA Position: ?
III. MAINE BANKERS ASSOCIATION PROPOSALS
a. Non-resident Income Tax Proposal
b. Wholesale sales or securitization of automobile loans
c. “Q-tip” Estate Tax Conformity
IV. ISSUES CONTAINED WITHIN THE GOVERNOR’S BUDGET
a. Q-tip Estate Tax Conformity (Page 62)
b. Part M – Expands estate taxes to “pass through”entities if real estate is held in the name of the pass through entity
c. Part DDD – Creates a Super Priority Lien in favor of MaineCare
V. LEGISLATIVE COMMITTEE BREAKFAST WITH INSURANCE & FINANCIAL SERVICES COMMITTEE – Tentatively schedule 2/15, 7:45 a.m
VI. DISCUSSIONS WITH COMMISSIONER CASHMAN REGARDING BANK FRANCHISE TAX – Option to base tax entirely on assets, or pay existing tax.
VII. BANKERS' DAY – APRIL 5TH, 2005
VIII. Sponsor Withdraws “AN ACT to Cap Interest Rates on Credit Cards at the Prime Rate”
