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   User: Visitor   mba@mainebankers.com 5/16/2008 11:12 am  

 

SUMMER LEGISLATIVE UPDATE – SEPTEMBER 9, 1999

  1. UPDATE ON CARRYOVER LEGISLATIVE ISSUES
  2. MSHA PROPOSES CHANGES TO HOME LOAN PROGRAM
  3. MBA COMMENTS ON PROPOSED RULES FOR EDUCATION LOANS

I. At the conclusion of the 1999 Legislative Session, MBA identified 13 issues that were deferred for additional study or action during the summer/fall. Many of these issues have resulted in MBA participation in Studies or other active MBA involvement. The following is an update on the status on these issues:

    1. MBA co-sponsored the 1999 Legislative Re-cap Seminar on August 19th. Additionally, each MBA member organization should have received a Legislative Re-cap Book with more than 60 banking-related LDs that passed the Legislature this past Session. Please call us at the MBA office if you have questions about any of these LDs or if you did not receive your book.
    2. MBA continues to work with the State Chamber on telemarketing issues, including telemarketing fraud, the taxation of telecommunications, and the value of the telemarketing industry in the State. There were several carryover LDs dealing with telemarketing issues.
    3. MBA is planning an October meeting with the local District Attorney in York County and possibly others to review concerns raised by the business community about lack of prosecution of passing bad checks.
    4. At least one meeting has been held to review legislative language in amendments offered to LD 1824, which proposes to create a tax credit when investing in a Community Development Financial Institution. MBA is involved because one change is to the bank franchise tax. The most recent draft requires FAME to approve loans/grants to the CDFI before they are eligible for the tax credit.
    5. MBA continues to work with the King Administration to develop legislation that would make Maine’s tax laws more attractive to mutual fund companies.
    6. MBA’s Trust Committee met with trust and estate members of the Maine bar to develop legislation clarifying that fiduciaries managing assets in an estate may charge fees based on the assets in the estate. Maine trust officers are more concerned that ever about lawsuits challenging current practice which is to charge based on the size of the assets. Most Maine trust officers do not track "time" spent managing assets within an estate.
    7. The Maine Clean Elections Act is changing how candidates receive campaign contributions. Many candidates have called MBA about these changes, which are still unclear because of pending court challenges to the new law.
    8. MBA members have attended several programs to learn about the NextGen program, which is the state’s effort to offer a college savings program. The State Treasurer, FAME and Merrill Lynch have worked to bring a tax exempt savings plan for Maine citizens saving for college education. Banks are allowed to participate in two ways: 1) sign up participants in the program, for which they will receive a 75 basis point fee, and 2) hold deposits from the investment program for a part of the portion of the CD type investments. The state (State Treasurer Dale McCormick, FAME and Merrill Lynch) has launched considerable marketing efforts about the benefits of this tax exempt college savings plan.
    9. The Secretary of State, working with interested groups including MBA, is studying the 500 page legislation that enacts new Article 9 of the Uniform Commercial Code. This massive effort includes in-depth review of all substantive changes, and will require a number of related changes to other sections of Maine law including the banking code.
    10. MBA has worked with the Governor’s Retirement Industry Advisory Council to study the benefits of the retirement industry to the Maine economy. The Study includes identifying changes needed to Maine’s tax laws to retain and attract more retirees into Maine.
  1. MSHA ANNOUNCES CHANGES TO HOME LOAN PROGRAM

On Sept. 10th, the Maine State Housing Authority will introduce and discuss proposed changes to its Home Loan Program. The major change is to charge fees ($2,000) to lenders who do not make at least 10 MSHA loans per year. Currently, the MSHA program includes 42 lenders, but about a dozen of those make only one or two loans per year. The Housing Authority has identified that loans from these lenders cost the Authority 7 times as much as result of increased MSHA staff time spent to familiarize the lenders with MSHA loan requirements.

We are forwarding to all CEOS and MBA Legislative Committee mebers a packet of materials that MSHA will use in reviewing the Home Loan program.

III. MBA COMMENTS ON EDUCATION PILOT LOAN PROGRAM

MBA has filed written comments on the proposed Rules promulgated by FAME regarding the Pilot Education Loan Program which allows private lenders, for the first time, to access the state’s Private Activity Bond Program. A copy of our comments has been sent to all CEOs and Legislative Committee Members.

There is also a Study Commission, members of which will be publicly announced very shortly, that will study issues about private lenders offering subsidized higher education loans.

(c) Maine Bankers Association 2003