TRACKING REPORT ON LEGISLATION IN 2004
SECOND REGULAR AND SPECIAL SESSION – 121ST LEGISLATURE
(UPDATED APRIL 28, 2004)
NEW LAWS THAT HAVE BEEN ENACTED THIS SESSION
Chapter 38 of Public & Special Laws, LD 1838, AN ACT to Provide for the 2004 and 2005 Allocations of the State Ceiling on Private Activity Bonds was signed by the Governor March 17th, so with its Emergency Preamble is now law. This Act allocates the millions of dollars that Maine has for private activity bonds. At one time this was very contentious, but as the cap has increased and as student loan programs no longer use much cap, there is plenty of extra bond limit that should go unused in these two years. MBA POSITION: Monitor
Public Law 512, (LD 692) AN ACT to Protect Consumer Privacy Rights, prohibits certain businesses from denying the sale of goods or services if a customer does not provide their social security number. The final version of the law exempts financial institutions and their subsidiaries, as well as any extension of credit or use of a credit report. The Business Research and Economic Development Committee studied this LD
Public Law 528, (LD 1717) AN ACT to Clarify Membership on Boards of Directors for Maine Financial Institutions passed as emergency legislation makes changes to the law impacting residency requirements for Board members of mutual savings banks. MBA POSITION: Monitor
Public Law 537, (LD 1766) AN ACT to Simplify the Finance of Authority of Maine Act, amends FAME’s laws covering their diverse loan insurance programs by consolidating the administration of the loan insurance programs into one plan, much easier to administer for both FAME and for their client lending institutions. MBA POSITION: Support
Public Law 543, (LD 1638) AN ACT to Amend the Maine Consumer Credit Code Regarding Balloon Payments passed as amended with support from the Maine Bankers Association. This version allows and expands use of balloon payment plans for certain auto loans. MBA POSITION: Support
Public Law 568, (LD 1802)** AN ACT to Permit the Photocopying of Driver’s Licenses in Financial Transactions passed with an Emergency Preamble, was signed March 24th, so is now Law. This was MBA’s proposal authorizing financial institutions to take photocopies of a driver’s license for proof of identification purposes. MBA POSITION: Support
Public Law 580, (LD 1025) AN ACT to Adopt a Model Building Code, creates a Model Building Code for towns and municipalities should they desire to have a building code. The law does NOT mandate to these towns and municipalities that they must adopt a Building Code, but only requires that if they do want one, it must be the Maine Model Building Code. MBA POSITION: Monitor
Public Law 586, (LD 1854) AN ACT to Conform to Federal Law Regarding Electronically Printed Credit and Debit Card Receipts and To Delay Enforcement of Civil Penalties, first amends Maine’s truncated credit card receipt law so its exactly the same as federal law, and also delays enforcement of penalties until January 1, 2005. MBA POSITION: Monitor
Public Law 592, (LD 1662) AN ACT to Strengthen the Prohibition Against Night Hunting includes a provision protecting a lenders lien position if a warden seizes property used in night hunting.
MBA POSITION: Support as Amended
Public Law 594, (LD 1786)**, AN ACT Making Amendments to the Uniform Commercial Code Covering Provisions Dealing with Negotiable Instruments was introduced by the Maine Bankers Association and covers telephonic checks. The new law as enacted protects the bank that serves a consumer who authorizes a telephonic check and some act of fraud results, shifting the risk to the bank of the business accepting the telephonic check. MBA Position: Support
Public Law 618, (LD 921) AN ACT to Enact the Uniform Trust Code, is the result of more than 12 months of effort from trust bankers and trust and estate lawyers, meeting to draft amendments to Maine’s Probate Code so as to prepare to enact the Uniform Trust Code. The new Uniform Trust Code, more than 230 pages, includes Comment Sections explaining the rationale for including a specific change. The Code places into statute the results of prior court decisions, and should result in greater certainty for trust and estate practitioners. MBA POSITION: Support
Public Law 652, (LD 1700) Amending Maine Motor Vehicle Laws, fixes a problem that caused excessively high, and too frequent fines when titling motor vehicles. MBA and many interested parties including the Bureau of Motor Vehicles, the Corporation Division of the Secretary of State’s Office, Maine Auto Dealers, and other lenders worked on an Amendment that satisfies the needs of all parties. The final version enacted expands from 20 to 30 days the time by which dealers and lenders must file their respective paperwork to the Bureau of Motor Vehicles and the under the Uniform Commercial Code. It also reduces the fines from $125 per violation to $50. With an Emergency Preamble, this law goes into effect immediately! MBA POSITION: Support as Amended
** LDs that were introduced on behalf of the Maine Bankers Association
STATUS OF OTHER BANKING-RELATED LEGISLATION IN 2004
Paid Family Sick Leave (Was never assigned an LD number, was heard as a “Concept” before the Labor Committee as a result of a Summer Study on Paid Family Medical Leave.) This proposal would require paid sick leave in order to tend to a family member. After hours of Public testimony and much Committee debate, the Labor Committee voted it out Ought Not to Pass, and it never moved forward as an LD. MBA POSITION: Oppose
Various Unemployment Tax Proposals – The Labor Committee dealt with several unemployment tax proposals, including expanding more coverage of part-time employees. Maine Bankers Association joined other business groups opposing increases to the tax, and increasing eligibility for unemployment benefits. Even without expanding coverage, this tax is likely to increase later this year because the state’s Unemployment Fund has dropped below a certain level required by federal law, thereby triggering an increase of as much as 20%. MBA POSITION: Oppose expansion of benefits
LD 286, AN ACT to Title Mobile Homes, Snowmobiles, ATVs and Boats – Based on the Sec. of State’s Summer/Fall Study, Judiciary Committee voted unanimously Ought-not-to-Pass – its Dead for the Session. Maine Bankers Association participated in the Summer/Fall study, and originally supported titling of mobile homes and took no position on titling snowmobiles, ATVs or boats. The Secretary of State’s office recommended against titling at this time, and many of the Study participants, including the Bureau of Fish and Wildlife, Maine Snowmobile Association, Manufactured Housing Association all opposed titling.
LD 575, Amending the Workers Comp System, would authorize a penalty on employers should they lose a worker appeal of benefits offered, has been defeated in both House and Senate and should be dead for the Session. MBA POSITION – Oppose
LD 969, Amending Maine Law Regarding Mortgage Volume Fees, which resulted from a Summer/Fall Study, will propose legislation that should be neutral for MBA members. In its original form the bill shifted funding for the Office of Consumer Credit Regulation from mortgage companies to other lenders, including banks. MBA opposed this LD last year. After the Summer/Fall study many changes were made, and the final recommendation of the Study did pass and was enacted into law. This version gives the Director of the Office of Consumer Credit Regulation authority to lower the volume fees if they result in excessive revenue. It also requires continuous analysis within the Bureau of the various sources of revenue and whether the respective revenue source supports the regulatory function over that particular entity. MBA POSITION: MONITOR
LD 1360, AN ACT to Create a No-Contact List and Prohibit Unsolicited E-mail, was tabled for more than a month in the Senate at the request of the Attorney General, who may use this as a vehicle to update Maine’s do not call and anti-spam laws, to be consistent with federal law. After strong lobbying from MBA, the LD was defeated in both the House and Senate and should be dead for the Session. MBA POSITION: Monitor, possibly oppose AG changes.
LD 1551, AN ACT to License Home Building and Improvement Contractors was proposed in conjunction with LD 1025 above, authorizing a building code. Many believe a licensing requirement would reduce the availability of tradesmen who might do some work part-time, creating more delays to construction and repair projects. Also, there is concern that lenders and/or realtors would have to add checking for a contractor’s license to the long list of closing requirements. MBA POSITION: Monitor
LD 1579. AN ACT to Promote the Financial Security of Maine’s Families and Children grants domestic partners of more than one year the same testacy rights as spouses. MBA has monitored this proposal, which is likely to pass, so that there is some registration-type system to demonstrate proof of the domestic partner relationship. MBA Position: Monitor
LD 1714, AN ACT to Streamline Sales Tax Credit for Worthless Accounts has passed the House and Senate, but is waiting decision as to whether to fund the fiscal note attached to this provision. This proposal addresses an inequity in state sales tax law upon repossession of a vehicle used as collateral. The State grants a tax credit if the auto dealer finances the vehicle. This very narrow bill places a dealer owned finance company in the same position as an auto dealer, but it does not address the situation for all other lenders, including banks. MBA POSITION: Monitor
LD 1775, AN ACT to Require Written Notice of Revocation of Durable Powers of Attorney was unanimously voted ought-not-to-pass by the Judiciary Committee and is dead for the Session.
MBA Position: Oppose
LD 1781, AN ACT to Amend the Laws Governing Mechanics Liens, was voted unanimously Ought-not-to-Pass by the Judiciary Committee – is Dead for this Session. MBA POSITION: Oppose
LD 1843, AN ACT to Require Surety Bonding by Payroll Processing Companies, was introduced by Rep. Matt Dunlap and addresses problems resulting from payroll processing companies misappropriating funds. At times banks were victims of fraud as a result of criminal acts by payroll companies. The bill has passed the House, but then was tabled pending consideration of several amendments. MBA POSITION: Monitor
LD 1898, AN ACT to Prohibit Financial Institutions from Using Thumbprints or Fingerprints was debated in the House, but both the House and Senate voted overwhelmingly to defeat this proposal. It should be dead for the Session. MBA POSITION: Oppose
LD 1903, AN ACT to Further Implement the Recommendations of the Commission to Improve Sentencing, Supervision, Management and Incarceration of Prisoners proposes, as a result of a Judiciary Study on sentencing, to reduce criminal sentences and also reduce the number of days of probation for violations of certain acts. MBA became involved because one proposal would increase the dollar amount from $1,000 to $3,000 to create a felony crime for passing bad checks or committing other acts of financial fraud. The final Criminal Justice Committee Report removed this recommendation. MBA POSITION: Oppose the original Section on fraud.
LD 1919, Governor’s Supplemental Budget, Section dealing with “Non-resident Taxation.” Maine Bankers Association led the fight to keep the existing law, which allows 20 days of work in Maine prior to triggering the requirement that a non-resident pay the Maine personal income tax. The Governor originally proposed to eliminate any threshold, so that non-resident’s pay taxes on day one. After extensive Appropriation Committee debate, the Governor proposed to allow a threshold of 10 days. Maine Bankers Association, working with other business groups, lobbied for 10 days plus an exemption for training and education.
