House Overwhelmingly Approves Summer Sales Tax Holiday

Bipartisan effort will provide shoppers with two-day sales tax break

BOSTON – For the fifth consecutive year, the House overwhelmingly voted today to give consumers a two-day sales tax break and provide a shot-in-the-arm to retailers and the economy.

The bill designates August 16th and 17th as the summer sales tax holiday weekend, exempting single item purchases of $2,500 or less from the state’s 5 percent sales tax. The Department of Revenue estimates, over the last two years sales tax holidays have increased overall economic activity by $3.2 million.

“Creating an incentive for consumers to shop during a traditionally slow sales period is good for business and our economy. This legislation is a win-win for buyers and sellers alike. A summer sales tax reprieve will boost sales for retailers and deliver discounts to consumers,” said Representative Barbara L’Italien (D-Andover).

“Over the last four years, the economic stimulus generated by the sales tax holiday has delivered a much-needed revenue boost to Massachusetts’ businesses during the dog days of summer. When businesses experience a growth in sales, the overall economic impact on the Commonwealth is great and I am pleased to see this bill pass with overwhelming support again this year,” said House Speaker Salvatore F. DiMasi (D-Boston).

“By offering a weekend long sales tax holiday, we are giving taxpayers a much needed break. It’s as much a psychological thing as it is economic. We remind people that we are looking out for them and are sympathetic to the tough times our constituents are facing. I am proud that we were able to accomplish such a beneficial piece of legislation in a bipartisan manner,” said House Minority Leader Bradley H. Jones, Jr. (R-North Reading).

“The sales tax holiday is important to Massachusetts consumers as well as businesses. We have seen over the last four years the sales tax holiday’s repeated success. With prices rising across the Commonwealth, the tax-free weekend is something we can do to help consumers as well as boost the economy,” said Representative John Binienda (D-Worcester), Chairman of the House Committee on Revenue.

The exemption does not apply to automobile, motor boat, meals and tobacco product sales as well as telecommunication services and gas, steam and electricity. The bill now proceeds to the Senate. It has the public support of both Senate President Murray and Governor Deval Patrick.

House Moves to Protect Military Service Members from Insurance Fraud

Legislation acts to address federal report detailing predatory insurance sale practices to members of the Armed Forces

BOSTON – The House of Representatives today unanimously passed legislation to protect military service members from insurance fraud. The bill was filed in response to Congressional findings that predatory life insurance sales to military personnel had occurred on military bases nationwide.

Under the legislation adopted by the House, the Commissioner of Insurance would be granted authority to regulate insurance sales on military bases across the Commonwealth by declaring certain identified acts or practices to be false, misleading, deceptive, or unfair.

“In light of federal reports indicating that our honorable service members have been preyed upon by insurance salesmen, I am happy to stand with my colleagues to protect our servicemen and women from these deceptive and fraudulent practices,” said Representative Barbara L’Italien (D-Andover).

“This bill goes a long way to protect our honorable servicemen and women from predatory insurance sales practices. I am proud that the House acted today to address these practices so that the Commonwealth can develop regulations that will guard our military personnel against the fraudulent and dishonest sale of insurance products,” said House Speaker Salvatore F. DiMasi (D-Boston).

“The predatory sales practices of these insurance salesmen, who took advantage of our military service personnel before being shipped out to defend their country, were unconscionable,” said Representative Ron Mariano (D-Quincy), Chair of the Joint Committee on Financial Services. “I think it is appropriate that, as we approach Memorial Day, we move to ensure that America’s bravest will no longer fall pray to unscrupulous insurance salespeople, who are only concerned with scoring a big commission.”

In November 2005, the Government Accounting Office (GAO) issued a report documenting fraudulent practices in the sale of insurance to military personnel, including: improperly selling insurance policies as investment products; allowing agents to pose as independent and objective counselors representing a nonprofit organization; sponsoring presentations made to group gatherings of service members where attendance was mandatory; soliciting service members during duty hours or in their barracks; and misrepresenting forms used to initiate pay allotments to deduct the payments for the products directly from the service members pay.

Based on the GAO report, President Bush signed into law the Military Personnel Financial Services Protection Act which directed states and the Department of Defense to work together to ensure the implementation of appropriate standards to protect members of the Armed Forces.

This legislation will now move to the Senate for consideration.

House Brings Relief to Homeowners Facing Mortgage Foreclosure

Legislation Offers 90-day Right to Cure, Licenses Mortgage Lenders and Creates Incentives for Lenders to Help Borrowers on the Cusp of Foreclosure

BOSTON – Representative Barbara L’Italien (D-Andover) today announced that the House of Representatives passed bold new legislation to help stem the rising tide of mortgage foreclosures by encouraging banks to help borrowers, providing a new three-month window to cure defaults and mandating tough new licensing standards for mortgage loan originators.

The new legislation comes as foreclosure rates continue to rise nationwide and in Massachusetts, causing thousands of families to lose their homes.

In Massachusetts, the foreclosure rate is up 76 percent in the past year, with 1,000 foreclosures in Boston in the past six months. The wave of foreclosures is not expected to crest until 2008, when many variable-rate mortgages readjust.

“As mortgage foreclosures are sweeping across the country, the House acted to provide relief to residents of the Commonwealth who are confronting the effects of foreclosure, and to prevent future borrowers from facing foreclosure. This legislation is critical to the prosperity of so many communities in Massachusetts and to the economy of our state,” said Representative L’Italien.

“The problem of mortgage foreclosures is only going to worsen so acting now with bold measures is critically important,” said House Speaker Salvatore F. DiMasi. “In passing this legislation, the House of Representatives voted to protect future home-buyers from predatory lending and bring meaningful help to those facing foreclosure.”

“While we clearly had some unscrupulous actors working in the mortgage industry, the real problem was that homebuyers were not financially astute to see through the double talk,” said Representative Ronald Mariano (D-Quincy), chairman of the Joint Committee on Financial Services and sponsor of the bill. “This legislation takes an important step to help level the playing field and give consumers the financial information they need to make educated decisions.”

Under this legislation, homeowners would be protected from foreclosure by the 90 day right-to-cure provision, which would require lenders to give homeowners 90 days to repay the interest and payment balance accumulated, before starting foreclosure proceedings.

If the borrower successfully completes this payment, their mortgage would be reinstated without penalty or foreclosure. This clause insures that consumers are not saddled with the weight of enormous legal fees associated with a foreclosure filing for simply falling behind on payments for a short period.

This bill will also encourage mortgage lenders to work with borrowers to avoid foreclosures in the coming months and years. Under this legislation, mortgage lenders will be motivated to shift adjustable rate mortgages to fixed rates. Borrowers can request to extend the length of their loan or increase their interest rate to achieve a fixed rate if they pay lenders a 1 percent fee on the cost of their mortgage. This one-time fee would enable mortgage holders to secure a fixed rate and encourage lenders to provide this security to homeowners.

Hoping to guard against future problems, the bill would require licensure of 20,000 loan originators with an annual license fee of $750, allocating $3 million to employ regulators under the Division of Banking to more aggressively regulate mortgage lending practices across the Commonwealth.

The bill also mandates that the Division of Banks keep a record of the mortgage practices of each loan originator in Massachusetts. The DOB will evaluate this information and rate lenders performance in the market. Poor performance may result in loss of license. By giving the commissioner the authority to hold these lenders accountable, questionable lending practices will be sharply curtailed.

Unique to this bill is the creation of counseling requirements for first-time homebuyers entering into subprime loans to insure they fully understand the financial commitment of their home loan.

The bill also:
• Adds reporting requirements for non-bank lenders of more than 50 loans.
• Protects renters as tenants-at-will, post-foreclosure.
• Creates a pilot program for impacted communities provides $2 million for foreclosure and mortgage counseling centers.

Do-Not-Knock Bill Finds North Shore Hospitable

‘Do-not-knock’ bill finds North Shore hospitable

Salem News

Sandy Karcher did not get her wish for a town bylaw to keep door-to-door salesmen at bay in Boxford last month.

But state lawmakers came a-knockin’ yesterday with a “do not knock” bill of their own.

The bill, similar to the “do-not-call” lists that have thwarted telemarketers, aims to protect the elderly and others from scam artists and sexual predators. Residents who don’t want to be bothered by peddlers pitching everything from magazines to home makeovers could sign up with their local police departments. Before they could knock on your door, solicitors would have to register with police and obtain a list of addresses where they’re not welcome. Violators would be fined up to $5,000.

Nonprofits, religious organizations and other noncommercial activity, such as Girl Scouts selling cookies, would be exempt.

“It’s nice that it’s being addressed at a higher level,” said Karcher, who filed a citizens’ petition at Boxford Town Meeting last month to create a similar list in her town. Voters took no action on the measure.

In an informal door-to-door survey this week, some Beverly residents liked the idea but said they don’t get that many sales calls.

“I’m all for it, 100 percent,” said Pete Skerry of 4 College Lane. “There are just too many intrusions now in life.”

“I think it would be a great idea,” said Jessica Anketell, mowing her lawn at 6 Presidential Circle. “They always seem to knock on your door when you are at dinner. They don’t know how to take ‘no’ for an answer.”

Annette Athanasopoulos of 12 Presidential Circle said most intrusions these days are from those who would not have to sign up.

“There are kids that solicit for schools and there are Jehovah’s Witnesses who come around … on rainy days,” she said.

Karcher said an “unpleasant situation” with a solicitor who refused to leave when “politely” asked prompted her to look into the creation of a “do-not-solicit” list in Boxford.

Last month, Boxford residents were concerned about how the list might be administered. Some feared it would make the town appear too exclusive, while others wondered if it might deter the Scouts.

The state bill is sponsored by Rep. Barbara L’Italien, D-Andover (one of Boxford’s representatives), Rep. Cleon Turner, D-Yarmouth, and Sen. Michael Morrisey, D-Quincy. Because it was filed late in the legislative session, it likely won’t be taken up until the fall.

Senate Minority Leader Brad Jones Jr., R-North Reading, has his doubts.

“Are they (criminals) only going to attack those people who are not registered?” he asked.

Jones wondered if the bill would stretch police resources. The bill calls for a $50 registration fee to offset costs.

“I think it would be an extra burden for us, and it would be hard to keep up,” said Beverly police Chief John Cassola.

The department already keeps tabs on those selling around the city, and police conduct background checks on solicitors.

But Cassola, who wanted to read the bill before passing judgment, said he liked the idea.

“I would sign up,” he said, though he does not get a lot of knocks at his door.

State Rep. Brad Hill, R-Ipswich, who helped draft the do-not-solicit warrant article in Boxford, said such a law could deter crime.

“We live in a world that is very nasty right now, and this bill may be a tool that we can use,” he said.

State Rep. Ted Speliotis, D-Danvers, a co-sponsor of the state’s do-not-call list, said he liked the notion of protecting seniors, but he had some reservations.

“You don’t want to overly restrict just communication and access,” Speliotis said. “You don’t want to be a police state. You don’t want to ban the right to door-knock.”

He pointed out that the bill would allow politicians their time-honored tradition of campaigning door to door.

“There’s no one who knows more about knocking on doors,” Speliotis said. “I’ve been doing it all my adult life.”

Material from The Associated Press was used in this report.

HEAT Legislation Passed to Assist with the High Cost of Winter Heating

HEAT legislation passed to assist with the high cost of winter heating:

http://www.mass.gov/legis/laws/seslaw05/s1050140.htm 

• $800 income tax deduction for home heating expenses for individuals who make less than $50,000 per year/families up to $75,000.

• Tax credit of up to $600 for the purchase of energy-saving products such as high-efficiency furnaces, home insulation, new window installation, etc.
• Low Income Home Energy Assistance Program (LIHEAP) funding increases from 7.5 to 20 million. Households with incomes up to 200% of Federal Poverty level would receive a maximum benefit of $545 for electric or gas heat, and a maximum of $675 for oil, propane or kerosene heat.
• Established a 15% or $300 tax credit for businesses that install solar water heating systems.
• Extends a tax credit to developers, owners and tenants of multi-family and commercial- residential buildings who invest in measures to increase energy efficiency and reduce environmental impacts.
• Renewable Energy Trust Fund to partner with state and private entities to develop fuel cell technology.

Protecting Consumers From Identity Theft

January 26, 2005 – Co-sponsor of Straus bill aimed at protecting consumers from identity theft.

H3690

Predatory Home Lending

Supports Protections from Predatory Homeowner Lending

Specifically, this bill will:

• Set limits on the financing of points and fees.
• Prohibit prepayment of fees and penalties.
• Bar lenders from increasing the interest rate, if a borrower defaults.
• Forbid lenders from charging fees for modifying a loan’s terms.
• Ban mandatory arbitration for the settlement of disputes.
• Exclude lenders from disbursing funds directly to a home improvement contractor.
• Check a lender from encouraging the borrower to default on a pre-existing debt.
• Prevent the division of a loan to avoid these provisions.
• Protect borrowers facing foreclosure.
• Make a breach of these restrictions a violation of Chapter 93A, the Massachusetts Consumer Protection Act

http://www.mass.gov/legis/laws/seslaw04/sl040268.htm