With nearly 1,000 LDs now printed, action is definitely picking up at our State House. Numerous banking bills have been heard or voted out, and many more will follow in the next 2 weeks.
The biggest priority for Maine Bankers Association will be the Public Hearing on Tuesday, February 22nd at 1:00, before the Taxation Committee, on LD 476, AN ACT to Increase the Franchise Tax on Financial Institutions. This LD, introduced by Rep. Bill Smith of Van Buren, would double the portion of the franchise tax based on net income. Obviously Maine Bankers Association will testify in opposition to this proposal, and has been working the Department of Community and Economic Development (DECD) to have them oppose LD 476 also. One focus of our testimony will be how the bank franchise tax has been used to attract out-of-state financial service organizations to Maine. In the past ten years, what other industry has added as many jobs as MBNA, BankNorth, Forum Financial, Putnam, Seligman and other financial services organizations?
Recent Public Hearings & Work Sessions Held:
Proposals Dead for the Session:
LD 6, AN ACT to Prohibit a Credit Card Processing Company from Charging a Termination Fee - Unanimous Ought Not to Pass (MBA Opposed)
LD 41, AN ACT to Prohibit Credit Card Companies from Charging Late Fees on Certain Accounts – Unanimous Ought Not to Pass (MBA Opposed)
LD 414, AN ACT to Require a Credit Card to Contain the Photo and Signature of a Cardholder – Unanimous Ought Not to Pass (MBA Opposed)
Proposals Still in Committee:
LD 58, AN ACT to Support Payroll Processors (MBA Opposed), Will be held several weeks until Public Hearings held on other payroll processing LDs)
LD 83, AN ACT to Prohibit Payment Card Skimming (MBA Supported) Was referred to Criminal Law Advisory Commission for review and comment, and then will return to Criminal Justice Committee for final vote. There was no opposition to this LD.
LD 193, AN ACT to Strengthen Wildlife Habitat Protection, And LD 261, the Department of Environmental Protection’s Dept. bill, include a provision on “vernal pools” and how owners (and their lenders) will have to restrict building outside a 250 foot buffer zone from a vernal pool. MBA took no position at the original public hearing, but was asked by the Committee to report on whether this proposal would have any impact on bank lending. After some research, MBA testified that YES, there would be some impact, much like for other wetland considerations. The Committee adopted new definitions limiting the impact, and will have the DEP jointly with Inland Fisheries and Wildlife adopt Major Substantive Rules on this issue. These Rules will go back to Committee for final approval in January of 2006.
LD 432, AN ACT to Increase from 90 to 120 Days the Time Frame to File Contractor Liens (MBA Opposed) Will be held in Committee until other Mechanics lien bills have public hearings.
LD 438, Governor’s Budget. MBA participated in two Hearings this past week on the budget document. Part N (MBA supported, heard before Appropriations jointly with Taxation). This section adopts a proposal prepared and advanced by trust attorneys and others in the estate planning field, bringing partial estate tax conformity when the subject deals with “Q-tip” trusts. With the Governor’s support, which included supporting testimony by Maine Revenue Services, there is hope that this modest first step to full estate tax conformity will be passed.
Part DDD-4, Estate Recovery Superpriority, Supersecret Lien! (MBA Opposed, heard before Appropriations jointly with Health & Human Services) This provision would create a superpriority lien, one that would not have to be filed nor require any notification, in favor or MaineCare. Maine Bankers testified in strong opposition, joining the title bar of the Maine Bar Association, the Elder Law section of the Maine Bar Association, the Maine Credit Union League and Legal Services for the Elderly. Maine Bankers’ testimony included arguments that this would impede sales of mortgages on the Secondary Market, would have the greatest impact on low income borrowers, reduced the sanctity of a bank’s First Mortgage (its called a First Mortgage for a reason!), and would reduce participation in state and federal loan programs with the goal of helping lower income borrowers.
Their respective Committees and return to the Appropriation Committee will work these two sections of the Governors’ budget in the very near future. The Governor’s Budget bill should be brought to the Floor for full votes in mid-March.
PUBLIC HEARINGS SCHEDULED:
See LD 476 Above – Bank Franchise Tax – Hearing 2/22, Taxation Committee at 1:00 pm
March 1, many Public Hearings will be held, including:
Insurance and Financial Services Committee
LD 587, AN ACT to Make Changes to the Banking Laws: MBA POSITION: Support
LD 464, AN ACT to Prohibit Certain Uses of a Financial Institution’s Name: MBA Supports
LD 509, AN ACT to Adopt the Uniform Securities Act: MBA Position: Support, partially
Judiciary Committee
LD 718 – AN ACT to Increase the Amount of Equity in a Principal Residence that is Exempt from Attachment – PLEASE REVIEW THIS LD – could be major! MBA Position: Oppose
LD 469, AN ACT to Simplify the Real Estate Foreclosure Process – MBA Position: Monitor
LD 491, AN ACT to Cure an Inconsistency Regarding Judgment Liens: MBA Supports
LD 570, AN ACT to Require The Fair Application of the Mechanic’s Lien Law, MBA?
Taxation Committee
LD 626, AN ACT to Require the Net Proceeds from the Sale of Foreclosed Property to be Returned to the Former Owner – MBA Position: Oppose
LD 746, AN ACT to Exempt Tax on Leased Property Used by Maine’s Public Higher Education Institutions MBA Position: Support
Reminder: The next MBA Legislative Committee Meeting will be held March 3, 2005 at the Augusta Civic Center at 9:30 AM and Bankers' Day the State House will be April 5th.
