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Since the ban on surcharges was first enacted in 2011, the League has been active in fighting any attempt to allow businesses in Maine to impose surcharges upon their customers. The latest bill that attempts to remove these consumer protections is LD 151, An Act to Allow Businesses to Impose a Surcharge on Credit Card and Debit Card Transactions. The bill’s work session was held on Wednesday, and the committee voted along party lines. The seven Democrats on the committee voted against allowing surcharges, saying it amounted to additional 3% cost increase on consumers, while the six Republicans on the committee voted for the proposal and the increased flexibility it would provide small merchants who wish to pass interchange fees on to their customers. The bill will now move to the House floor, where we expect the majority report continuing the ban on surcharges to prevail.
Also tracked this week was LD 1069, An Act to Require Personal Finance to be Taught as a Separate Course in Order for a Student to Obtain a High School Diploma. The bill is a repeat of one seen last session and is sponsored by Senate President Matthea Daughtry. Testifying in front of the committee on Monday, Robert Caverly, Vice President of Advocacy & Outreach, spoke of credit unions’ longstanding commitment to financial education. “Credit unions are dedicated to helping educate their members as one of the eight principles of cooperatives. That is why, since 2004, we have been putting on Financial Fitness Fairs for students and adults throughout the state.” The bill has a strong coalition of support from financial institutions, including the League, however concerns from the Education Committee may prevent it from moving forward.
Also on Monday, the League testified against LD 1180, An Act to Prohibit Persons from Providing Incentives to Customers for Opting Out of Paper Billing. This is the second bill regarding paper statements that we have seen this legislature. The first, LD 580, An Act to Protect Maine Consumers by Prohibiting Fees Charged for Receiving Paper Statements from Financial Institutions and Credit Card Issuers, is likely to move forward despite League opposition due to strong support from the majority of the Health Coverage, Insurance and Financial Services (HCIFS) Committee.