LD 24 (subjects: FINANCIAL INSTITUTIONS , MERCHANT BANKS )
Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=24&PID=1456&snum=127
|1/13/2015||House||Committee on Insurance and Financial Services suggested and ordered printed.
The Bill was REFERRED to the Committee on INSURANCE AND FINANCIAL SERVICES.
Sent for concurrence. ORDERED SENT FORTHWITH.
|1/14/2015||Senate||On motion by Senator Whittemore of Somerset, REFERRED to the Committee on Insurance and Financial Services, in concurrence.|
On motion of Representative BECK of Waterville, the Majority Ought Not to Pass Report was ACCEPTED.
Sent for concurrence. ORDERED SENT FORTHWITH.
On motion by Senator WHITTEMORE of Somerset the Majority Ought Not to Pass Report ACCEPTED, in concurrence.
Placed in the Legislative Files (DEAD).
An Act To Create a Public State Bank
Sec. 1. 5 MRSA 12004-F, sub- 19 is enacted to read:
|Maine Street Bank, Board of Directors||Expenses Only||9-B MRSA 1253|
Sec. 2. 5 MRSA 12004-I, sub- 2-H is enacted to read:
|Banking||Maine Street Bank Advisory Committee||Expenses Only||9-B MRSA 1254|
Sec. 3. 9-B MRSA c. 125 is enacted to read:
MAINE STREET BANK
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
1252. Bank established; purposes
The Maine Street Bank is established and is a public body corporate and politic and an instrumentality of the State. The bank is established for the following purposes:
1253. Board; duties and powers
The board may designate the president or another officer or employee as its agent with respect to the functions of the bank, subject to the supervision, limitation and control of the board. The board may discharge any person appointed and employed under this subsection.
1254. Advisory committee
The board shall appoint the Maine Street Bank Advisory Committee, as established in Title 5, section 12004-I, subsection 2-H, to actively enlist the help of private enterprise and encourage use of the bank.
1255. Deposit of funds
The bank may accept deposits of public funds. Except as provided in section 1256, the bank may not accept deposits of private funds. All income earned by the bank on public funds must be credited to and becomes a part of the revenues and income of the bank.
1256. Powers of the bank
(1) That are insured or guaranteed in whole or in part by the United States or its agencies or instrumentalities; and
(2) Obtained as security pledged for, or originated in the restructuring of, any other loan properly originated or participated in by the bank;
Except as provided in subsection 2, paragraph B, the bank may not make loans to any private individual or legal entity.
1257. Investment by Maine Public Employees Retirement System authorized
1258. Transfer to Maine Budget Stabilization Fund
Except as provided in Title 5, section 1533, as soon as possible after the end of each calendar year, the board shall determine the amount of income, if any, earned by the bank in that prior calendar year that is in excess of amounts necessary to pay for expenses of administering the activities of the bank less any reserves required pursuant to rules adopted in accordance with section 1259, subsection 1, paragraph E for delinquencies and future business and payment of debts from any initial funding. The amount of the excess must be transferred to the Maine Budget Stabilization Fund established in Title 5, section 1532.
1259. Rulemaking; oversight
Rules adopted under this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.
1260. Exempt from liability
Whenever any public funds are deposited in the bank, the public official who deposited the funds and the sureties on any bond of the public official are exempt from liability for loss of any of the funds while the funds are deposited in the bank.
1261. Use of name; execution of instruments
All business of the bank must be conducted under the name of the Maine Street Bank. Title to property pertaining to the operation of the bank must be obtained and conveyed in the name of the Maine Street Bank.
Instruments must be executed in the name of the State. Within the scope of authority granted by the board, the president of the bank may execute instruments on behalf of the bank, including any instrument granting, conveying or otherwise affecting any interest in or lien upon real or personal property.
Officers, employees or agents of and legal counsel to the bank may execute instruments on behalf of the bank when authorized by the board.
Sec. 4. 9-B MRSA c. 127 is enacted to read:
COUNTY AND MUNICIPAL BANKS
1271. County and municipal banks authorized
Sec. 5. Treasurer of State, Commissioner of Administrative and Financial Services and Chief Executive Officer of the Finance Authority of Maine to make recommendations. No later than January 15, 2016, the Treasurer of State, the Commissioner of Administrative and Financial Services and the Chief Executive Officer of the Finance Authority of Maine, in consultation with the Attorney General, shall submit a report to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs with recommendations for implementing the Maine Street Bank, as established in the Maine Revised Statutes, Title 9-B, chapter 125 and referred to in this section as “the bank.” The report must include:
1. A draft of any legislation needed to amend the Constitution of Maine to authorize the State to establish the bank;
2. A recommendation on the amount of money needed to adequately capitalize the bank;
3. A draft of any legislation needed to transfer funds to the bank;
4. A description and draft of statutory changes needed to fully use the resources and powers of the bank, to eliminate any duplication of efforts or conflict with the authority or responsibilities of the Maine Municipal Bond Bank and any other state agencies and to merge the Finance Authority of Maine into the bank. The statutory changes must provide that programs and services offered by the Finance Authority of Maine must continue to be offered by the bank and rights and obligations of the Finance Authority of Maine must be assigned to the bank;
5. Recommendations for guaranteeing funds deposited in the bank;
6. Recommendations pertaining to the liability of the State and the bank in civil actions; and
7. Recommendations regarding the confidentiality of certain records held by the bank.
Sec. 6. Initial appointments. Notwithstanding the Maine Revised Statutes, Title 9-B, section 1254, subsection 3, of the initial appointments to the Maine Street Bank Advisory Committee, one member must be appointed for a one-year term, 2 members must be appointed for a 2-year term, 2 members must be appointed for a 3-year term and 2 members must be appointed for a 4-year term.
Sec. 7. Authority to report out a bill. The joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs may report out a bill to the Second Regular Session of the 127th Legislature pertaining to the establishment, oversight and operation of the Maine Street Bank established in the Maine Revised Statutes, Title 9-B, chapter 125.
Sec. 8. Effective date. Those sections of this Act that enact the Maine Revised Statutes, Title 5, section 12004-F, subsection 19; Title 5, section 12004-I, subsection 2-H; and Title 9-B, chapters 125 and 127 take effect July 1, 2017 except that the Maine Street Bank may not make, purchase, guarantee, modify or hold loans until the bank has capital of at least $20,000,000.
This bill establishes the Maine Street Bank effective July 1, 2017 except that the bank may not make, purchase, guarantee, modify or hold loans until the bank has capital of at least $20,000,000. It specifies the purposes of the bank, establishes a board of directors and creates an advisory committee. It allows the bank to accept deposits of public funds, to make, purchase, guarantee, modify or hold certain loans and to serve as a custodian bank. It directs the Treasurer of State to deposit money into the bank. Excess income of the bank is deposited in the Maine Budget Stabilization Fund.
The bill provides for a quarterly examination of the bank by the Department of Professional and Financial Regulation, Bureau of Financial Institutions and an audit by the State Auditor every 2 years.
The bill allows counties and municipalities to establish public banks.
The bill directs the Treasurer of State, the Commissioner of Administrative and Financial Services and the Chief Executive Officer of the Finance Authority of Maine to consult with the Attorney General and report to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs by January 15, 2016 with recommendations to fully implement the bank, including recommendations regarding the merger of the Finance Authority of Maine into the bank. It authorizes the joint standing committee to report out a bill to the Second Regular Session of the 127th Legislature.
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This information about LD 24 was last updated on 2016-05-12.
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