LEGISLATIVE UPDATE # 1 January 4, 2006
I. KEY BANKING LEGISLATION FOR 2006
II. OTHER IMPORTANT LEGISLATION FOR 2006
III. LEGISLATIVE COMMITTEE TO MEET JANUARY 18TH
IV. BANKERS DAY AT THE STATE HOUSE IS APRIL 6TH
THE SECOND REGULAR SESSION OF THE 122ND MAINE LEGISLATURE convened today, with more than 300 new LDs printed, more than 200 LDs carried over from last year, with a number of LDs expected as a result of Summer/Fall Study Committees and with many more LDs to come from the Administration.
On Day 1, there was great turmoil resulting from the party switch of Rep. Barbara Merrill, who changed enrollment from a Democrat to “unenrolled,” which is an Independent. She is the third Representative to make exactly this switch since the Legislature adjourned last June! The legislative count is now 73 Democrats, 73 Republicans, 4 Independents and 1 Green Party. The Republicans have already requested a “power sharing” agreement, asking for some Committee Chairs and better representation on key Committees.
Committees will begin working this week – there is no delay in the Second Session!
I. THE FOLLOWING LDS HAVE BEEN PRINTED AND IMPACT BANKING:
LD 1761, AN ACT to Offer Financial Institutions an Option for Payment of the Maine Franchise Tax (Senator Perry, on behalf of the Department of Economic and Community Development). This bill would allow banks the choice of paying the current bank franchise tax, or a tax based entirely on Maine assets. DECD believes this option simplifies the Maine franchise tax and may attract back-shop operations from several out-of-state institutions.
LD 1782, AN ACT to Prevent Elder and Dependent Adult Financial Abuse (Senator Mayo). This bill would require officers and employees of financial institutions to report suspected financial abuse of an elder or a dependent adult, making bankers mandatory reporters of suspected financial exploitation. MBA opposed a similar proposal several years ago, on the grounds that determining financial exploitation is very subjective. Bankers currently are voluntary reporters.
LD 1783, AN ACT to Amend the Maine Consumer Credit Code as It Relates to Finance Charges for Loans on Open-end Credit (Senator Sullivan). This is an MBA-requested LD! It would allow state chartered banks to offer home equity lines of credit and have customers access the line of credit by means of a credit card. Currently other lenders are allowed to do this, and consumers request this loan product.
LD 1817, AN ACT to Protect Access to Social Security Numbers (Rep. Hotham). This expands Maine’s current law prohibiting businesses from requesting social security numbers. It is very broad, and would seem to prohibit use of socials by credit reporting agencies.
LD 1834, AN ACT to Accommodate Victims of Identity Theft (Rep. Grose). This LD would require a consumer reporting agency, once a security freeze is in place, to expunge any information in the file of a consumer that resulted from ID Theft.
LD 1835, AN ACT to Protect Consumers from Credit Card and Debit Card Holds (Rep. Ash). This LD would prohibit a merchant from placing a hold on the credit or funds available to a consumer using a credit card or debit card in excess of the actual transaction amount.
LD 1837, AN ACT to Protect Retirement Funds (Rep. Bil Smith). This bill would exempt from creditors, including in bankruptcy proceedings, the full value of retirement accounts including IRAs and Roth IRAs, as established under Section 408A of the Internal Revenue Code.
LD 1855, AN ACT to Establish the Securities Investor Education and Training Fund (Rep. Perry, on behalf of the Dept. of Professional and Financial Regulation). This bill would establish the “dedicated nonlapsing Securities Investor Education and Training Fund” within the Dept of Professional and Financial Regulation, Office of Securities.
LD 1878, AN ACT to Protect Small Payroll Processors (Rep. Robinson). This bill would create a Payroll Processing Recovery Fund that processors may opt to participate rather than obtain surety bond or letter of credit. It also would clarify the law that supervised financial organizations acting as payroll processors are subject to regulation by the Superintendent of Financial Institutions.
II. OTHER BUSINESS-RELATED LEGISLATION
There will be a number of important business-related issues this Session, starting with proposed legislation to eliminate the personal property tax on business equipment. Though the actual LD has yet to be printed, the Governor and a number of legislators including Leadership have pledged support to repeal the personal property tax on business equipment.
The State Chamber of Commerce has made this one of its top priorities this Session, after the Legislature last year reduced the reimbursement rate to 90% for this tax.
Other issues will include health care-related proposals, including amendments to Dirigo Health so as to prohibit insurance carriers from passing on the Savings Offset Payment assessment. Also, there will be a proposal about monitoring what large companies pay for health insurance (the Wal-Mart bill).
III. LEGISLATIVE COMMITTEE TO MEET JANUARY 18TH, 9:30 A.M.
This meeting will be held at the MBA offices, and all banks are invited to have a representative there!
IV. BANKERS' DAY AT THE STATE HOUSE – SAVE THE DATE ITS APRIL 6TH!
