Consumers get new safeguards

By Susan M. Cover
Appeared in the April 5th Edition of the Kennebec Journal

AUGUSTA — Lawmakers passed several bills in recent weeks to help consumers, including protections against charges on free trial offers, a ban on health-benefit caps and a significant reduction in copying fees for birth and death certificates.

Attorney General Janet Mills praised lawmakers for the passage of L.D. 1541, a first-in-the nation law in response to hundreds of complaints from consumers who accepted a free trial offer and then were committed to monthly or annual credit-card charges.

The law requires sellers to confirm billing information directly with the consumers at the time the consumer accepts the free offer, according to Mills’ office.

“Consumers have a right to know who is charging them and for how much,” Mills said in a statement. “This bill will provide more transparency in free trial offers and will prevent consumers from being charged for services they do not need or want.”

The measure was sponsored by Rep. Rob Hunt, D-Buxton.

In the area of health care, the Legislature passed another first-in-the-nation bill that prevents insurance companies from placing lifetime health benefit limits.

The measure, sponsored by House Majority Whip Seth Berry, D-Bowdoinham, will go into effect in Maine earlier than a similar limit contained in national health-care reform.

Senate Minority Leader Kevin Raye, R-Perry, sponsored a bill to reduce the copying fees for birth and death certificates. Last year, the fees increased from $15 to $60 per copy.

“It was a 400 percent increase,” Raye said. “We put in General Fund money so we can strip those (higher) fees out.”

Technically, Raye’s bill was killed, but he worked with members of the Appropriations Committee to get the funding through the budget. That made it part of the budget that passed March 30.

Rep. Sharon Treat, D-Hallowell, sponsored a bill that prohibits merchants from placing surcharges on debit-card purchases. Maine law already prohibited extra charges on credit cards, but the statute had not been updated to reflect debit cards, according to the House Majority Office.

Groups such as AARP Maine, Maine Equal Justice Partners and the Bureau of Banking supported the measure.

Steve Griffin, a lobbyist for AARP Maine, said the group was concerned about the possibility that different stores would tack on different fees.

“We like fees to be easy to see, easy to understand. And in this economy, we’re not sure it’s the time to be putting fees on things,” he said.

The measure was opposed by the Maine Merchants Association, which argues that the law is unnecessary because those types of fees are already prohibited.

They felt a federal solution, which is pending in Washington, would be better for businesses.

“Maine did not need to weigh in,” said Curtis Picard, executive director of the merchants association. “It needs to be resolved at the federal level.”

Another bill sponsored by Rep. Sean Flaherty, D-Scarborough, will give consumers more information when they need to go to arbitration to resolve a dispute.

He thinks binding arbitration, which is meant to prevents lawsuits, is often unfair to consumers. Many common contracts, such as cell phones and vehicle purchases, include a provision requiring binding arbitration.

Legislature Hitting a Busy Home Stretch
By State Rep. Sean Flaherty, D-Scarborough

From the April 2nd Edition of the Scarborough Leader

The Maine legislature is entering its final weeks of the second session.  Much of the work of the past several months goes on without much fanfare, but rarely a day goes by where there aren’t important decisions being made in the halls of Augusta.  Without a doubt, the tough economic times weigh heavy on the minds of all legislators as we work to balance the state’s budget.

But everyday work continues on range of important issues.   My committee, the Utilities and Energy Committee, has been engaged in some of the most important debates – planning for our state’s energy future and preparing us to emerge stronger from the recession. We are working to expand broadband infrastructure to previously un-served areas of our state – which is crucial to statewide economic development.

We’ve also been working to make energy efficiency dollars available to thousands of Maine’s business, residents, and schools. Last week, the town of Scarborough received $33,000 to upgrade our firehouses through an Efficiency Maine Trust grant. The trust is the body that the legislature established as a “one-stop shop” for all efficiency programs. These programs have reduced energy costs for Maine businesses while reducing our state’s carbon footprint.

Efficiency Maine programs helped home and business owners save hundreds of thousands of megawatt hours of energy, accounting for millions of dollars in savings since its creation several years ago.

Most legislative committees are finishing their work, but there are several, including my committee, which will work to finalize legislation, even as the full House and Senate debate and cast votes.  The result is lots of running around the State House as we are often needed in two places at once, but this legislature has insisted on completing all of our work early in an effort to save money.

As we head into the final weeks, the Appropriations Committee will finalize their amendments to the governor’s proposal and move towards a full vote of the legislature.  But many other important votes will be taken.  Most bills have been worked on, by respective committees, for months.  I presented four bills this session.  Each bill was worked by different committees, amended and adjusted, before now moving to the full House for enactment.

I was successful in garnering bipartisan unanimous support among committee members for all of the four bills I proposed. They face a vote before the full legislature and will likely pass as a result of the strong consensus reached in their respective committees.  These included LD 1693, “An Act to Protect the Natural Resources of Maine;” LD 1646, “An Act to Establish a Broadband Policy for Maine;” LD 1578, “An Act to Require Equitable Cost Sharing Among Communications Providers;” and a bill that took a full year of work and attention, LD 1256 “An Act To Provide Protections for Consumers Subject to Mandatory Arbitration Clauses.”

These bills, among a couple hundred others, are working their way towards final passage.  As a result, the legislature will take several different votes each day over the final weeks.  It’s important to reach out to us, if you have issues or concerns, especially about any specific bills, because constituent interest is always a factor before we cast our vote.

Bill seeking accountability in arbitration to become law

By David Harry
From the April 2nd Edition of the Scarborough Leader

Mandatory arbitration settlements appear in the fine print of many credit, employer or consumer contracts.

A new law initially sponsored by Maine Rep. Sean Flaherty (D-Scarborough) and signed by Gov. John Baldacci on Wednesday will enlarge the fine print by requiring companies and individuals providing arbitration services in Maine to post results of their decisions on a Web site. Basic consumer information, including potential expenses and whether an attorney may be present at a hearing, also must be posted.

Flaherty said arbitration agreements, which are useful in averting court cases, are found in real estate and car purchasing contracts, employment contracts, cell phone agreements and the licensing agreements needed to download software.

A 2009 report by the Maine Bureau of Consumer Credit Protection showed eight individual arbitration providers from Maine, New Hampshire and Vermont and three national firms helped decide 2,500 cases in Maine during 2008.

William Lund, superintendent of the bureau, said all the cases involved credit card debt and settlements totaling about $5 million were awarded while creditors had sought a total of $20 million in judgments.

Lund said the vast majority of cases are settled in favor of the creditor, often because the consumer ignores the notice to show up for a hearing. The arbitration agreements usually call for the creditor to pay expenses of the arbitration hearing, Lund said. Details of hearings are kept confidential, and only the results will be posted on a Web site when the law is enacted.

Lund said results of civil court cases to collect debts mirror the number of arbitration cases decided in favor of creditors. The process of providing arbitration was called into question last July when Minnesota Attorney General Lori Swanson filed suit on behalf of consumers against Minneapolis-based National Arbitration Forum.

The firm, listed by Lund in his report as doing business in Maine, falsely claimed it was impartial after it worked with credit card companies to include arbitration clauses in credit agreements and then arbitrate disputed cases, Swanson said in a press release.

National Arbitration Forum agreed to stop consumer arbitration cases days after the suit was filed, according to Swanson. She said she would like to see Congress ban the mandatory arbitration agreements.

While it may prevent litigation overall, the arbitration process has been costly for Tim Cason, a Bowdoinham contractor who expects to have his suit against Chase Bank heard Tuesday in Sagadahoc County Superior Court.

Cason estimated a dispute over a $22,000 credit card balance has cost him an additional $30,000 in legal fees. He said the bank did not respond to his claim before taking the case to arbitration, which he said was not stipulated in his consumer agreement.

Although he received a notice to appear at a hearing, he did not go because he had not agreed to the process when he got the credit card, he said.

Flaherty said he heard similar tales of conflicts caused by fine print agreements when he worked at the Washington, D.C.-based American Association of Justice. He said he made reforming the process a priority when he was elected to his first term in House District 127.

A disputed credit case that goes to court may be dismissed if the consumer has signed a contract that mandates arbitration. Federal law prohibits banning the arbitration clauses altogether, Flaherty said.

Flaherty said the intent of his bill, which Lund helped develop and revise, is to provide basic information that may help a consumer decide who will hear the arbitration case. Each side is generally allowed to pick arbitrators for the panel that hears a case.

“We found middle ground on a good and fair law,” Flaherty said. His intent, he said, is to ensure consumers are aware what the process entails and how arbitrators may be inclined to decide, without affecting rights of businesses to use arbitration.

“I did not expect it to go anywhere,” he said. “But the deck should not be stacked against either party.”

Staff writer David Harry can be reached at 282-4337, ext. 219

Federal funds provoke House battle over teacher evaluation

By Mal Leary
From the April 2nd Edition of the Bangor Daily News

AUGUSTA, Maine — To be eligible for up to $75 million in new federal funds under the Race to the Top initiative of the Obama administration, Maine must change its law that bars school districts from using student achievement data in assessing teacher performance.

In a 72-71 vote, the House gave all but final approval Wednesday evening to make that change in state law.

“Even if the teachers and principals and school board and superintendent all think this is a great idea, they can’t do it,” said Rep. Patricia Sutherland, D-Chapman, co-chairwoman of the Legislature’s Education Committee. “This simply allows them to do it. I hope you will consider the long-term implications.”

She said the bill is one of three proposed by Gov. John Baldacci to allow state schools to apply for the new funds. She said it is also likely the federal law that governs the $100 million a year that flows into the state for education programs will require using achievement data as part of the evaluation of a teacher’s performance in the future.

“This bill is about developing models that schools can use if they choose to use it,” said Rep. Ann Perry, D-Calais. “This is not about one standardized test.”

A nurse practitioner, Perry said she is subject to performance standards all the time. She said teachers also should be subject to assessment testing to make sure students are getting the education they need to compete in an increasingly complex society.

Rep. Thomas Saviello, R-Wilton, said in his employment over the years he constantly has been subject to evaluations by employers. But, he said, teachers are different than many professions.

“So here we are [in a] rush to get money that we probably aren’t going to get. We are going to cobble something together,” he said. “I promise all of you, those of you that come back, you will be fixing it, as I have said many times, just like the school consolidation law.”

Rep. Brian Bolduc, D-Auburn, a social studies teacher, said the type of assessments used in the business sector are not applicable to the teaching profession.

“Merit-based pay has some merit,” he said. “But unlike business performance, teaching performance is much more subjective. Judging good teaching is like judging good art or good music.”

Bolduc said basing teacher performance solely on test scores of their students would cause another set of problems. He said student performance is based on many factors, not just the quality of the teacher. For example, he said, what is going on in a student’s life at home can have a significant impact on that student’s performance on a test.

For many House members, the bottom line is that additional funding for schools is at risk at a time when the state has reduced its subsidies to local schools

“A couple of years ago I probably would have been opposed to this bill,” said Rep. Sean Flaherty, D-Scarborough. “And then something happened: The recession. Scarborough this year is cutting 45 teaching positions, and we are still raising property taxes. We are hurting, and we are not alone.”

He said there are teachers in his family, and he does not want to see further reductions in teachers anywhere in the future, and additional federal funds might help prevent that.

But Rep. Edward Mazurek, D-Rockland, a retired teacher, warned local schools may not be able to use any additional federal funds as they would like.

“This money is not free,” he said. “They are going to give as all this money. Are we going to be able to do what we want with it, or are they going to tell us what to do with it.”

He said the “strings” on the federal money might prevent local schools from using funds where they are most needed.

Rep. Peter Johnson, R-Greenville, said he doubts the state will get any additional funds under the Race to the Top program. He said the state has done a poor job positioning itself to compete with other states for the increased federal aid.

“The Commissioner [of Education] put forth three bills, and those three bills, in my estimation, were unsatisfactory in their detail of how Maine will compete,” he said. “However, they are important for us to be able to compete.”

The measure now goes to the Senate, which has yet to consider the legislation.

Bill to promote broadband access receives initial passage in House
Expansion of broadband access in the state will benefit Maine’s economic growth

AUGUSTA— The Maine House granted initial passage on a bill that will boost broadband access throughout the state.

“It is critical for the state to clearly define standards, goals and strategies to successfully move forward to increase broadband in Maine,” said bill sponsor Rep. Sean Flaherty, D-Scarborough. “The advancement of broadband access throughout the state is essential for economic development.”

The bill sets goals to expand broadband access throughout the state by outlining policies to create universal guidelines to accomplish these goals. Policies include, increasing availability to federal and private funding for broadband access, expanding computer ownership and developing opportunities for small business usage of broadband.

The legislation aims to educate Maine residents and business owners on benefits of broadband usage, such as online business reporting, online tax filing and national and global sales opportunities.

“In a rural state like Maine, it is imperative that our businesses can connect to worldwide markets, and broadband access is how we achieve that,” said Flaherty. “This bill will not only improve the process for individual companies, but it will greatly impact the entire state in an effort to promote continued and fiscal growth.”

This bill has the support of the Telephone Association of Maine, the business association supporting over 20 independent telephone companies who serve more than 150,000 phone lines statewide.

Health Insurance Reform, What Does It Mean for Maine

Health care legislation passed by the U.S. House of Representatives will make health care affordable for the middle class, provide security for seniors, and guarantee access to health insurance for the uninsured – while reducing the federal deficit by over $100 billion over the next 10 years and $1.2 trillion in the second 10 years. This analysis examines the benefits of the legislation in Maine.

In Maine, the health care reform bill will:

• Improve coverage for 771,000 residents with health insurance.
• Give tax credits and other assistance to up to 359,000 families and 38,900 small businesses to help them afford coverage.
• Improve Medicare for 255,000 beneficiaries, including closing the donut hole.
• Extend coverage to 63,000 uninsured residents.
• Guarantee that 17,800 residents with pre-existing conditions can obtain coverage.
• Protect 1,400 families from bankruptcy due to unaffordable health care costs.
• Allow 90,000 young adults to obtain coverage on their parents’ insurance plans.
• Provide millions of dollars in new funding for 133 community health centers.
• Reduce the cost of uncompensated care for hospitals and other health care providers by $139 million annually.

Changes that would occur this year include:

• Dependent children could remain on their parents’ health insurance plans until age 26.
• Some senior citizens would get more help paying for drugs in Medicare.
• People with health problems that left them uninsurable could qualify for coverage through a federal program.
• Other first-year items include a ban on lifetime limits on medical coverage, more oversight of premium increases and tax credits for some small businesses.

New help for some uninsured: People with a medical condition that has left them uninsurable may be able to enroll in a new federally subsidized insurance program that is to be established within 90 days. The legislation appropriates $5 billion for this, although that may not be enough to cover all who apply; it’s not clear how much consumers would pay as their share of the cost. About 200,000 people are covered in similar state programs currently, at an estimated cost of $1 billion a year, says Karen Pollitz, a research professor at Georgetown University.

Discounts and free care in Medicare: The approximately 4 million Medicare beneficiaries who hit the so-called “doughnut hole” in the program’s drug plan will get a $250 rebate this year. Next year, their cost of drugs in the coverage gap will go down by 50 percent. Preventive care, such as some types of cancer screening, will be free of co-payments or deductibles starting this year.

Coverage of kids: Parents will be allowed to keep their children on their health insurance plan until age 26, unless the child is eligible for coverage through a job. Insurance plans cannot exclude pre-existing medical conditions from coverage for children under age 19, although insurers could still reject those children outright for coverage in the individual market until 2014.

Tax credits for businesses: Businesses with fewer than 25 employees and average wages of less than $50,000 could qualify for a tax credit of up to 35 percent of the cost of their premiums.

Changes to insurance: All existing insurance plans will be barred from imposing lifetime caps on coverage. Restrictions will also be placed on annual limits on coverage. Insurers can no longer cancel insurance retroactively for things other than outright fraud.

Government oversight: Insurers must report how much they spend on medical care versus administrative costs, a step that later will be followed by tighter government review of premium increases.

The big changes in the law – the ones that could affect tens of millions of people – don’t kick in until at least 2014. Those include insurance marketplaces called “exchanges”; rules requiring insurers to accept all applicants, even those with health problems, and an expansion of state Medicaid programs.
Sources:  House Committee on Energy and Commerce & US Congress

Rep. Flaherty: Free tax preparation services available in local area

AUGUSTA – State Rep. Sean Flaherty, D-Scarborough, is encouraging constituents to take advantage of free tax preparation services provided by the local area AARP Tax-Aide program.

“This is a great program that can get people the help they need in filing their taxes and getting their refund,” said Flaherty. “I encourage anyone who is eligible to take advantage of the program.”

AARP Tax-Aide is the nation’s largest free, volunteer-run tax assistance and preparation service. It is available to taxpayers with low- and moderate-incomes and gives special attention to people age 60 and older. Consultations are available by appointment during limited times at AARP’s Main office at 685 Congress Street in Portland.

The tax preparation program offers one-on-one counseling, as well as assistance on the telephone and internet to help individuals prepare basic tax forms. It is available through April 15.

Last year, AARP Tax-Aide and similar statewide programs helped Maine residents get back more than $13.9 million in federal and state refunds, including $3.62 million in Earned Income Tax Credits.

“The tax code has seen considerable changes in recent years and taxpayers may not be getting the full refund they are entitled to,” said Flaherty. “This service will make sure folks get good information so they can get the full refund they are due.”

For more information visit AARP Tax-aide; or call toll free 1-888-OUR-AARP, locally 776-6316 or the Maine state services line at 211.

Contact:
Rep. Sean Flaherty, 450-4188

Friends,

It is hard to believe, but it’s now been 2 years since I first announced my intent to represent our community in the State Legislature.  Two years ago, no one in the State could have predicted that a young political new-comer could unseat a well respected incumbent here in Scarborough.  But with your help and support, we were able to garner a sizable 12 point margin of victory.  Now, it’s time to campaign again, and the first step is qualifying for Clean Election financing.

For more info and to donate a $5 contribution here: www.maine.gov/cleanelections

Over the past two years, I’ve dedicated myself to my job in Augusta.  I’ve worked side-by-side with Legislators, residents, and businesses from across the State, on both sides of the aisle, and on a variety of issues.  Perhaps no issue has been more important to me than working aggressively to build a Greener Maine Economy.

Serving on the Utilities and Energy Committee has enabled me to shape laws encouraging business and home owners to weatherize their homes, support community renewable power generation, and create NEW jobs for Maine workers.  We were also able to support direct economic development in Scarborough by passing a State-wide Pine Tree Zone Business Tax Exemption status that will finally enable Scarborough and other communities in Cumberland County to attract new or growing businesses to the Greater Portland Area.

We lowered the State’s income tax, across the board, by roughly 20% (that issue will be up for a Statewide vote in June), to encourage small business owners to reinvest in their companies by having more disposable income each week.  And we balanced our State budget, twice already, with a third time coming, without raising taxes.

We have much to be proud of, but much more work is to be done.  And I’ll need your support to be able to continue the work we’ve started and expand on the victories we’ve earned.

The first step is to qualify for Clean Election financing of my campaign.  In the next couple of weeks, I need to collect enough $5 contributions.

Please go to www.maine.gov/cleanelections the Clean Election fund to help me qualify.

Or, if you prefer not to donate online, please shoot me an e-mail SeanFlahertyforScarborough@gmail.com and I’d be happy to stop by your home, or meet you for coffee.  Either way, I truly appreciate your support and thank you for the honor of representing you in Augusta.

Yours truly,

Sean

Sean Flaherty, State Representative
Maine House District 127 - Scarborough

PO Box #6998
Scarborough, ME 04070

207.450.4188 (c)
RepSean.Flaherty@legislature.maine.gov

www.SeanFlaherty.org
www.twitter.com/SeanFlahertyME

House passes Rep. Flaherty’s consumer protection legislation
Bill provides transparency, protocols for mandatory binding arbitration

AUGUSTA – The Maine House of Representatives gave initial passage Wednesday to legislation sponsored by Rep. Sean Flaherty, D-Scarborough, that would protect consumers involved in mandatory arbitration contracts.

The bill requires arbitrators to disclose information about past arbitrations and the arbitration process on their Web sites. Mandatory arbitration clauses are often found in the fine print of many contracts for credit cards, cellular phone, and car purchases. They require consumers to settle disputes outside of court through an arbitrator.

“Most consumers are not even aware that they are bound by mandatory arbitration agreements,” said Flaherty.  “The passage of this bill will help protect consumers by giving them more information about arbitration and particular arbitrators, should they enter the process.”

Starting Jan. 1, 2011, those who conduct consumer arbitrations will be required to have a Web site, which will provide consumers with information including: the cost and fees of arbitration, types of disputes they have been involved in, if the consumer was the prevailing party, if attorneys were involved and the amount of an award given, if any.

“This bill protects both the consumer and businesses alike, by placing the burden on the arbitrators to provide Maine consumers with this information.” said Flaherty.

The bill underwent significant negotiations during the past year resulting in strong bipartisan support for the legislation.

The bill, L.D. 1256, faces further votes in the Senate. More information can be found at http://www.mainelegislature.org/LawMakerWeb/summary.asp?ID=280035549 .

Maine’s School Funding Formula Doesn’t Add Up!

• Our kids are paying the price
• Teachers are loosing their jobs
• We MUST re-examine how we fund education in Maine, so this doesn’t happen to us again.

At the March 4th Scarborough School Board Meeting, while working with the Scarborough School Board on the budget crisis, Representative Flaherty specifically requested that Scarborough residents e-mail him thoughts and concerns around the State’s funding formula for education.

“I will turn in a packet of responses to members of the Education Committee,” Flaherty said.  “I think it is important for those members to understand how the outdated and unfair School Funding Formula affects the every day lives of taxpayers, students, and parents.

Scarborough stood to loose more than $2,000,000 of State aid from the original 2010 budget.  Although recent revenue re-projections may restore about $500,000, Representative Flaherty has said that it is not enough.

“We get hit harder than almost any other district in the State,” Flaherty added, “There is something wrong with the equation, and the Education Committee must work fast to address these issues.”

Representative Flaherty has asked that Scarborough citizens e-mail him at RepSean.Flaherty@legislature.maine.gov or fill out the form below so that he can compile, organize, and submit your concerns.

To submit your thoughts or concerns about the School Budget crisis and how it is affecting your family, please complete the form below:

SAMPLE LETTER:
Dear Legislator,

I know you do not represent my town, but the work you do affects all Maine residents.

- Scarborough lost nearly 30% of its State Aid as a result of State the budget cuts over the last year and ½.
- Our district has some of lowest administrative costs in the State, so cuts to our district are disproportionately harming our kids.
- It may be too late to affect this year’s budget, but we can’t afford to face these types of cuts in future years.

I respectfully urge you, as a member of the Education and Cultural Affairs Committee, to not only “tinker” with this formula, but seriously look at overhauling the way the State allocates much needed school funding.

Thank you for your attention to this important matter,

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