LEGISLATIVE UPDATE
Volume 10 - 1999
May 20, 1999
HOUSE AND SENATE VOTE "OUGHT NOT TO PASS" ON BILL WHICH WOULD HAVE PROHIBITED BANKS FROM CHARGING A FEE ON SAVINGS ACCOUNT BALANCES THAT FELL BELOW A MINIMUM
JOINT COMMITTEE ON BANKING AND INSURANCE UNAMIOUSLY RECOMMENDS THE APPOINTMENT OF HOWARD GRAY AS BANKING SUPERINTENDENT AND THE REAPPOINTMENT OF WILL LUND AS DIRECTOR OF THE OFFICE OF CONSUMER CREDIT REGULATION.
FULL LEGISLATURE VOTES ON SEVERAL BANKING BILLS – GOVERNOR SIGNS SEVERAL INTO LAW!
LD 1732, An Act to Prohibit Certain Bank Penalties officially died yesterday when The House joined the Senate in voting "Ought Not to Pass." Its death, however, was not assured until the Senate debated and voted 24 to 6 against the bill. Even then a number of Senators who voted to kill the bill expressed great concern about the fact that some banks were charging fees to savers whose accounts had fallen below a bank set minimum. These Senators and a number of Representatives have expressed that this policy seems to be discriminatory to small savers and a discouragement to savers in general. A group of Senators and Representatives have promised to keep tabs on this situation and may return with further legislation in the future.
The House vote was taken without debate. In the Senate the six senators voting in favor of the bill were Senator Anne Rand, the bill’s sponsor, Senator Neria Douglas of Auburn, Senator Jim Libby of Buxton, Senator Vin Cassidy of Calais, Senator Sharon Treat of Gardiner and Majority Leader and Senator Chelle Pingree of North Haven.
Voting "Ought Not to Pass" were Senators Joel Abromson of Portland, Jane Amero of Cape Elizabeth, Richard Bennett of Oxford, John Benoit of Rangely, Georgette Berube of Lewiston, Richard Carey of Belgrade, Mary Cathcart of Orono, Paul Davis of Piscataquis, Norm Ferguson of Hanover, Jill Goldthwait of Bar Harbor, Leo Kieffer of Caribou, Lloyd LaFountain of Biddeford, Susan Longley of Liberty, Bruce MacKinnon of Sanford, Mike Michaud of Millinocket, Peter Mills of Skowhegan, Robert Murray of Bangor, William O’Gara of Westbrook, Peggy Pendleton of Scarborough, Mary Small of Bath, and Senate President Mark Lawrence of Berwick.
On Wednesday afternoon, the Joint Committee on Banking and Insurance held public hearings on the nominations for Superintendent of Banking and Director of the Office of Consumer Credit Regulation.
MBA Executive Director Joe Pietroski testified on behalf of the Maine Bankers Association and Maine Association of Community Banks in support of the Governor’s nomination of Howard R. Gray, Jr. of Portland for Superintendent of Banking.
Following the testimony from Mr. Pietroski, Commissioner Longley, the Maine Credit Union League two associates for Mr. Gray, and a presentation and a question and answer session with the nominee, the Banking and Insurance Committee unanimously VOTED to recommended Mr. Gray’s nomination. The new Superintendent will be joining the Maine Bankers Association for our Annual Meeting and Convention, June 18-20, 1999.
During the public hearing on the nomination of Will Lund for reappointment as Director of the Office of Consumer Credit Protection, MBA Assistant Director Mark Walker testified on behalf of MBA and MACB in support of the nomination. Mr. Lund’s nomination also received a unanimous vote from the Banking and Insurance Committee.
Both Mr. Gray’s and Mr. Lund’s nominations must now be confirmed by the Senate. The Senate vote is likely next week.
UPDATE ON OTHER BANKING BILLS
The Governor signed into law LD 1719, AN ACT to Amend the Maine Banking Code Regarding Extensions of Credit (introduced by MBA) as Public Law 205. This law amends the Banking Code regarding Director approval of certain loans, and with its emergency preamble takes effect immediately upon the Governor’s signature (May 17th).
LD 1155, AN ACT to amend the Laws Affecting Abandoned Property has been enacted by both the House and Senate and awaits the Governor’s signature.
LD 1586, AN ACT to Require a Mortgagee to Record the Discharge of a Mortgage within 60 Days, has been signed by the Governor and is now Public Law 230. As you may remember this LD makes a number of changes to mortgage discharge requirements. The effective date for this Law will be January 1, 2000 – and the secondary market must be informed about these new Maine requirements.
LD 1991, AN ACT to Protect Consumers of Nonbank ATMS was signed into law as Public Law 229. This new law will take effect 90 days after adjournment, or about September 1st.
LD 2152, AN ACT to Amend the Laws Governing Financial Institutions, introduced by the Bureau of Banking, has been signed into law as Public Law 218. This law also will become effective on or about September 1st, 1999.
LD 292 – the Weekly Pay legislation – was tabled in the House yesterday and is on the House calendar again today. As you remember, MBA supports this LD, which allows employers the option to pay their employees bi-weekly or twice a month. MBA has been told that some House democrats now support the bill. IF YOU HAVE CALLED OR CONTACTED YOUR LOCAL LEGISLATOR, THANK YOU – IF NOT – YOU CAN STILL CALL THEM AT THE HOUSE AND ASK THEM TO SUPPORT THE MINORITY OUGHT TO PASS COMMITTEE REPORT, SUPPORTING PASSAGE OF LD 292! CALL 1-800-423-2900 AND LEAVE YOUR MESSAGE!
