Legislative Update - March 4, 2011
HEARINGS UNDERWAY ON THE GOVERNOR’S BUDGET
The Appropriations and Financial Affairs Committee began its public hearings on the Governor’s biennial budget proposal last week. The Committee scheduled hearings that began on February 28th and will continue through March 29th. On Monday and Tuesday of last week, the Appropriations and Financial Affairs Committee met jointly with the Taxation Committee to consider the taxation-related provisions of the Governor’s budget. Wednesday through Friday, the Appropriations and Financial Affairs Committee considered the public employee benefits reforms included in the Governor’s budget, prompting protests by public employee union members. This week, the Appropriations and Financial Affairs Committee will, primarily, focus on the budget of the Department of Health and Human Services.
THE GOVERNOR’S CABINET
Two additional members of the Governor’s cabinet received legislative confirmation last week. On Tuesday, Chandler Woodcock was confirmed unanimously by the Senate as Commissioner of the Department of Inland Fisheries and Wildlife. On Wednesday, Stephen Bowen was confirmed by the Senate as Commissioner of the Department of Education by a vote of 25 – 10. Governor LePage’s nominee for Executive Director of the State Workers’ Compensation Board, Paul Sighinolfi, was also confirmed unanimously by the Senate on Tuesday.
ENHANCED PENALTIES TO PROTECT SENIOR INVESTORS
On March 1, 2011, the Insurance and Financial Services Committee held a public hearing on LD 401, An Act to Enhance Penalties to Protect Senior Investors. This bill would increase penalties under the Maine Uniform Securities Act for violations that affect citizens 65 years of age or older. The Securities Administrator, Judith Shaw, testified in support of this bill as did the AARP, Legal Services for the Elderly, the Maine Association of Area Agencies on Aging and the Maine Long-Term Care Ombudsman Program. This bill is scheduled for work session on March 9, 2011.
ORIGINAL DOCUMENTS IN FORECLOSURE
On March 1, 2011, the Judiciary Committee held a public hearing on LD 145, An Act to Protect Homeowners Subject to Foreclosure by Requiring the Foreclosing Entity to Provide the Court with Original Documents. The bill’s sponsor, Representative Beavers, presented the bill and explained that she would like to amend the bill. The amendment would require a plaintiff to produce the original note and its endorsements on 30 days notice in pre-trial discovery and would also require that a judge examine the note and its endorsements before signing any judgment. Tom Cox and a number of individuals who have undergone foreclosure testified in support of this bill. Representatives of financial institutions (Maine Bankers Association, Maine Credit Union League, etc.) testified in opposition. William Lund, Bureau of Consumer Credit Protection, has provided the Committee with a letter expressing some reservations regarding this bill.
INFORMED GROWTH ACT
On March 2, 2011, the State and Local Government Committee held its work session on LD 322, An Act to Repeal the Informed Growth Act (“IGA”). After much deliberation, an amendment was crafted which does a number of things. The bill now calls for an “opt-in” approach, whereby towns will have to affirmatively choose to be subject to the IGA. In addition, the amendment: (1) eliminates the most problematic portion of the approval standard in the IGA, (2) cuts the State Planning Office out of the process, (3) eliminates the automatic, up-front payment of $40,000 for the study, and (4) deletes the exemption provisions that only allowed towns to opt-out of the IGA if they adopted standards that were at least as strict as the IGA. This is a compromise position, short of an outright repeal, that was negotiated by the regulated community and several key Committee members. This amended bill received a majority (9 – 3) “ought to pass, as amended” report from the Committee.
STATUTE OF LIMITATIONS FOR ENVIRONMENTAL VIOLATIONS
On March 3, 2011, the Judiciary Committee held a public hearing on LD 281, An Act to Create a 5-year Statute of Limitations on Environmental Violations. The bill’s sponsor, Senator Snowe-Mello (R), began the hearing by explaining that she supports amending her bill to create a six-year discovery statute of limitations. A copy of her amendment is attached. Supporters of this amended bill included the Department of Environmental Protection, the Maine Pulp and Paper Association and the Maine Energy Marketers Association. The Natural Resources Council of Maine, the Maine Audubon Society and the Maine People’s Alliance, along with a few individuals, testified in opposition to this bill, arguing that polluters will not be subject to prosecution in cases where pollution is discovered but it takes a long time to identify who caused the pollution. Interestingly, after Deputy Commissioner Pattie Aho testified in favor, a member of DEP’s enforcement staff, John Glowa, testified against the bill after making clear that he was testifying in his personal capacity only.
Click here to open a pdf of the proposed ammendents.
UPCOMING ISSUES
LD 532 (Uniform Trust Code) – March 8, 2011, 1:00 p.m., Judiciary Committee
LD 482 (Covenants Statute of Limitations) – March 8, 2011, 1:00 p.m., Judiciary Committee
LD 486 (Uniform Arbitration Act) – March 8, 2011, 1:00 p.m., Judiciary Committee
LD 325 (Unauthorized Practice, Education) – March 8, 2011, 1:00 p.m., Judiciary Committee
LD 551 (Unauthorized Practice, LLCs) – March 8, 2011, 1:00 p.m., Judiciary Committee
LD 642 (Long-Term Care Policies) – March 9, 2011, 9:30 a.m., Insurance and Financial Services Committee
LD 313 (3rd Party Notification, Insurance) Work Session – March 9, 2011, 11:00 a.m., Insurance and Financial Services Committee
LD 401 (Senior Investors) Work Session – March 9, 2011, 1:30 p.m., Insurance and Financial Services Committee
LD 165 (Divorce Mediations) Work Session – March 10, 2011, 1:00 p.m., Judiciary Committee
LR 2067 (Governor’s Budget – Judicial Department Budget) – March 11, 2011, 10:00 a.m., Appropriations and Financial Affairs Committee
LEGISLATIVE DATABASE
An updated legislative database is linked to this weekly report for your information. It contains any newly introduced bills we have identified of interest to the MSBA, along with updated status listings of previously introduced bills. Those items highlighted in red indicate new changes since the last database was made available.
As always, please don't hesitate to contact us if you have any questions or need specific information.
John Delahanty at 207-791-1222 or 