State officials and lawmakers are concerned about legislation before Congress that would pre-empt state authority over banking and other financial services.

"And it's not just banking," said Christine Bruenn, commissioner of the state Department of Professional and Financial Regulation. "There are some in Congress that would meddle in the right of the states to regulate insurance and other business practices within the states."

Hearings were held last month in the House of Representatives on two different bills that would pre-empt many state laws and regulations dealing with lending. Mortgage lenders are pushing for federal rules so they do not have to deal with the diverse set of state rules that range from few regulations to very strict controls.

"Not only does the new Responsible Lending Act ensure that all borrowers are treated fairly," Rep. Bob Ney, R-Ohio, said when he introduced the bill. "It also preserves lenders' access to the capital markets so that they can make affordable mortgage credit more available and enable more borrowers to purchase and maintain homes."

Ney and other supporters argue that a federal law is needed to protect consumers with bad credit histories from "predatory" lending practices allowed in some states.

Bruenn said the measure is just the most recent attempt by some in Congress, and by some federal regulators, to replace state oversight with federal regulation because it is easier to deal with one set of regulators.

"We have very strong bank regulators at the Comptroller of the Currency that are constantly trying to meddle in the states' right to govern the business practices within its borders," she said. "One size does not fit all. When they try to form some sort of federal bureaucracy we find that Maine people have to call Washington or Boston or somewhere to get help instead of calling to us here in Augusta."

It is the problem of consumer access to help that raises concerns among state lawmakers and members of the state's congressional delegation.

"The states have been working very hard in coalitions to make sure regulation stays at the state level," said Rep. Anne Perry, D-Calais, last week. She is the co-chair of the Legislature's Insurance and Financial Services Committee. "States are closer to the public and are able to innovate and respond better that the federal government."

Perry said the pre-emption issue is one that concerns lawmakers in all states, and she has been watching developments through the National Conference of State Legislatures.

Sen. Peter Mills, R-Cornville, another member of the panel, said the issue has not received much attention, although he agrees state regulation is preferable to federal regulation. He said if members of the public have a concern with a banking issue, they certainly would be more likely to get help from a state agency than from the federal government.

"That's they way it's been on anything else the federal government has taken over," he said.

U.S. Rep. Mike Michaud said regulation at the state level has been more effective. He said the trend of federal pre-emption started when he served in the Legislature, and he still believes state oversight is better now that he is in Congress.

"The more we can leave at the state level, the better off we will be, " he said, " Each state is different, and each state is different within regions of a state, and I think it 's best to have the states do the oversight."

Sen. Susan Collins agrees. She served in Bruenn's job under the administration of Gov. John McKernan.

"While it has varied from state to state, states generally have done a good job," she said. "One size does not fit all. What you find in these cases where there is a federal takeover is inevitably it is the small consumer that gets shortchanged."

But Collins said while she and other members of the state's congressional delegation do not think a federal takeover is a good idea, it has support in both branches of Congress.

"Unfortunately, most senators do not have my background in financial regulation and consumer protection," she said. "The Banking Committee in the Senate was very eager to pre-empt state laws in this area."

Bruenn said her counterparts in other states acknowledge the pre-emption effort has supporters in both branches of Congress. She said they would be lobbying against legislation that will undercut state authority.

While there is broad opposition to the pre-emption legislation, another measure that would set a nationwide floor of regulation has support. It essentially would set a minimum level of oversight that every state must provide, but would allow states to have more stringent standards and oversight.

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