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PUBLIC LAWS OF MAINE
First Regular Session of the 121st

CHAPTER 462
S.P. 310 - L.D. 969

An Act To Ensure Equity in Mortgage Volume Fees

     Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

     Whereas, the Committee to Study the Revenue Sources of the Office of Consumer Credit Regulation is required to submit its report to the Legislature in December 2003; and

     Whereas, the committee must begin its meetings as soon as possible in order to complete its work by December; and

     Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 9-A MRSA §6-203, sub-§2, as amended by PL 1993, c. 268, §1, is further amended to read:

     2. Persons required to file notification who are sellers, lessors or lenders shall pay an additional fee, at the time and in the manner stated in subsection 1, of $25 for each $100,000, or part thereof, of the original unpaid balances arising from consumer credit transactions entered into in this State within the preceding calendar year and held either by the seller, lessor or lender for more than 30 days after the inception of the sale, lease or loan giving rise to the obligations, or by an assignee who has not filed notification. A refinancing of a sale, lease or loan resulting in an increase in the amount of an obligation is considered a new sale, lease or loan to the extent of the amount of the increase.

     Sec. 2. 9-A MRSA §6-203, sub-§2-A is enacted to read:

     2-A. For purposes of assessing fees under this section, a refinancing of a sale, lease or loan made by the original creditor of the obligation that results in an increase in the amount of an obligation over the unpaid principal balance of the prior sale, lease or loan is considered a new sale, lease or loan to the extent of the amount of the increase, and volume fees must be paid on the amount of the increase. Volume fees must be paid on the full amount of a refinancing of a sale, lease or loan made by a creditor other than the original creditor.

     Sec. 3. Committee to Study the Revenue Sources of the Office of Consumer Credit Regulation. The Committee to Study the Revenue Sources of the Office of Consumer Credit Regulation, referred to in this section as "the committee," is established.

     1. Membership. The committee consists of 14 members, as follows:

All appointments required by this subsection must be made no later than 30 days following the effective date of this Act. The appointing authorities shall notify the Executive Director of the Legislative Council once all appointments have been completed. Within 15 days after appointment of all members, the chairs shall call and convene the first meeting of the committee.

     2. Chairs. The first-named Senator is the Senate chair of the committee and the first-named member of the House is the House chair of the committee.

     3. Duties. The committee shall study the following issues:

The committee may make recommendations in its report on any issue in this subsection, including recommendations on amending the existing creditor and nonbank lender volume fee structure.

     4. Staffing and meetings. Upon approval of the Legislative Council, the Office of Policy and Legal Analysis shall provide staffing services to the committee. The committee is authorized to meet 3 times to conduct the duties set forth in subsection 1 and to prepare the report referenced in subsection 6.

     5. Compensation. Members of the committee who are Legislators are entitled to the legislative per diem, as defined in the Maine Revised Statutes, Title 3, section 2, and reimbursement for necessary expenses incurred for their attendance at authorized meetings of the committee. Other members of the committee who are not otherwise compensated by their employers or other entities that they represent are entitled to receive reimbursement of necessary expenses and, upon a demonstration of financial hardship, a per diem equal to the legislative per diem for their attendance at authorized meetings of the committee.

     6. Report. The committee shall submit its report to the Second Regular Session of the 121st Legislature no later than December 3, 2003. The committee may submit a bill to the Legislature to implement its recommendations at the time of submission of its report. If the committee requires a limited extension of time to complete its report, it may apply to the Legislative Council, which may grant the extension.

     7. Funding. All costs of the committee are funded using unobligated Other Special Revenue funds within the office.

     Sec. 4. Appropriations and allocations. The following appropriations and allocations are made.

LEGISLATURE
Committee to Study the Revenue
Sources of the Office of Consumer
Credit Regulation

Initiative: Provides for the allocation of funds to authorize operating expenditures to support the costs of the committee. These funds are derived from unobligated dedicated funds that will be transferred from the Office of Consumer Credit Regulation in the Department of Professional and Financial Regulation to the Legislature at the beginning of the fiscal year.
Other Special Revenue Funds 2003-04 2004-05

     Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

Effective June 16, 2003.

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