LEGISLATIVE UPDATE #6 MARCH 30, 2006
I. LEGISLATURE ENACTS 2/3 SUPPLEMENTAL BUDGET
II. UPDATE ON IMPORTANT BANKING LEGISLATION
III. BANKERS’ DAY NEXT THURSDAY – APRIL 6
I. On Tuesday, March 29th, both the House and Senate enacted a Supplemental Budget (LD 1968). The fact this was enacted with a 2/3 majority, meaning both Democrats and Republicans supported the supplemental budget, means it will go into effect upon the Governor’s signature, most likely in the next few days! This is the first time in several years that both parties reached a compromise so as to pass a “2/3” budget.
There were several provisions within this budget that Maine Bankers Association supported and participated in the Appropriations Committee deliberations. Part NNN funds federal tax conformity for Health Savings Accounts. MBA testified both in 2005 and 2006 in support of conformity.
Additionally there was a provision (Part EE) that clarifies a use tax issue so as to encourage corporations that have corporate jets fly into Maine, while also expanding opportunities for the aircraft repair industry.
II. UPDATE ON IMPORTANT BANKING LEGISLATION
Many of the LDs that Maine Bankers has followed this Session have had their final resolution, including the following:
NEW LAWS ENACTED:
LD 1783, AN ACT to Amend the Maine Consumer Credit Code as it Relates to Finance Charges for Loans on Open-end Credit, has been enacted by the Legislature and signed by the Governor as Public Law 484. Maine Bankers Association had this LD introduced by Senator Sullivan. (Most new Public Laws will take effect in Mid-July!)
LD 1834, AN ACT to Accommodate Victims of Identity Theft, has been enacted and signed into law as Public Law 494. This minor change amends the Identity Theft law that passed in 2005 (which has yet to go into effect!) (MBA Monitored this LD)
LDS RESULTING IN RESOLVES OR OTHER COMMITTEE DIRECTION:
LD 1782, AN ACT to Prevent Elder and Dependent Adult Financial Abuse, was defeated as proposed, but changed so as to require the Bureau of Elder Services to prepare materials to assist banks in training employees about how to report suspected financial exploitation of the elderly. Superintendent Lloyd LaFountain of the Bureau of Financial Institutions will write each bank in Maine about using these materials to train employees. (LOOK FOR AN MBA TRAINING PROGRAM THIS SPRING!)
LD 1835, AN ACT to Protect Consumers From Credit Card and Debit Card Holds, after more than a month of Committee deliberations and many stakeholder group meetings, the Business Research and Economic Development Committee voted to support a Resolve that will ask various merchants to provide notice to consumers if that merchant places holds on debit accounts. It also requires the Bureau of Financial Institutions to develop a brochure that will inform customers of financial institutions about holds.
LDS DEFEATED THIS SESSION:
LD 1810, AN ACT Concerning Criminal Record Reports, was unanimously voted ought not to pass by the Criminal Justice Committee. An Amendment to this proposal would have limited use of credit reports for employment purposes, and also proposed to impact what would be told a consumer should their credit report be used for employment purposes. MBA opposed the Amendment, parts of which would be pre-empted by FCRA.
LD 1837, AN ACT to Protect Retirement Funds, opposed by the Maine Bankers Association, was voted unanimously ought not to pass by the Judiciary Committee.
BANKING-RELATED LDS STILL PENDING BEFORE THE LEGISLATURE:
LD 1817, AN ACT To Protect Access to Social Security Numbers (MBA opposed as originally presented) was amended so as to only impact the University System and Community Colleges, and also protects the confidentiality of social security numbers should a state agency receive a freedom of information request. The Judiciary Committee passed this proposal as amended, which no longer affects MBA, and it should pass the House and Senate within a few days.
LD 1981, Resolve, Regarding Legislative Review of Chapter 335, Significant Wildlife Habitat, which dealt with a Department of Environmental Protection Major Substantive Rule including a Section on Vernal Pools. The original proposed Rule would have restricted building around “significant” vernal pools within a 250 ft zone, plus a 75 foot buffer, and proposed a system to determine if the pool were significant. MBA joined other real estate business organizations in opposing certain sections of the Rule. After considerable Committee review, there were changes, including delaying the effective date until September 2007. This allows owners of real estate to determine if they have vernal pools on their property. The Committee also created a self-permitting mechanism so that DEP would not have to come to your property to review it. As amended, MBA was neutral on the Rule, which is likely to pass the full Legislature next week.
LD 2017, AN ACT to Amend the Notice of Risk to Personal Data Act (Security Breach), had its Public Hearing and several Work Sessions, before a stakeholders group reached a compromise that is supported by most parties. Maine Bankers Association supported much of the original proposal, but opposed the Section that dealt with a Private Cause of Action. The stakeholder group agreed to remove this private cause of action, and the Sections MBA supported generally remain intact. The Insurance and Financial Services Committee voted to pass the amended bill, which may reach the floor of the House next week.
LD 2059, AN ACT Concerning Cancellation of Life Insurance, originally proposed to allow a person whose life was insured under a policy issued to another to cancel a life insurance policy (based on threats received by domestic partners/spouses.) Most insurance groups and others, including MBA opposed this proposal, because of “unintended consequences” such as requiring amendments to estate plans, because other parties (including their children) have an interest in the insured, and the fact that courts could limit the availability of assets to a spouse or partner under existing law. The bill was first heard in Insurance and Financial Services, who referred to the Judiciary Committee for additional review. Both Committees have recommended against passage at this time.
LD 2061, AN ACT to Issue Certificate of Titles for Single-unit Mobile Homes, was introduced at the request of the Credit Union League, and has had its Public Hearing ant several Work Sessions. There was also a meeting of stakeholders. The Manufactured Housing industry opposes this proposal, which would title mobile homes between the time of purchase and time it’s affixed to real estate, in order to show proof of ownership. While several Committee members will support the proposal, its likely there will be some opposition as well. MBA’s position has been to support the titling proposal as long as there is a clearly defined means to cancel the title once the mobile home has been permanently fixed to real estate. The Judiciary Committee will next work this LD on Monday afternoon.
LD 2076, AN ACT to Regulate Pay Day Lending, had its Public Hearing on Thursday, March 30th, before the Business Research and Economic Development Committee. MBA’s position is to support the proposal as presented by Director Will Lund. CEI will offer some alternative language, which MBA won’t support at this time. This bill is the result of a Study performed by Director Lund after Legislation in 2005. Basically the LD will place payday lenders under the same consumer protections found in the Maine Consumer Credit Code.
LD 1481, AN ACT to Amend the Laws Governing the Enactment Procedures for Ordinances, was carried over from 2005 and will reach the Floor of the House on Tuesday, April 4th. This LD simply says that once an individual, non-profit or business developer has received a lawfully issued land use permit or approval from a municipality, and 45 days has passed, the criteria for issuing the permit cannot be changed retroactively so as to invalidate the permit. IN years past Maine Bankers supported this proposal, so that developers have some certainty that once they receive a permit, it will be valid! MBA will work with the realtors, Maine State Housing Authority, developers and others to pass this proposal.
PLEASE NOTE – BANKERS’ DAY AT THE STATE HOUSE WILL BE THURSDAY APRIL 6TH – NEARLY 150 BANKERS HAVE SIGNED UP FOR THIS ANNUAL EVENT. LEGISLATORS HAVE BEEN ASSIGNED BANKER SHADOWS FOR THE DAY.
