The Massachusetts legislature continues its work after convening for its new two-year cycle during the first week of January 2023. To date, more than 8,200 bills have been introduced, with the Massachusetts Bankers Association tracking 432 bills that relate to the banking industry. This year the Association has introduced ten (10) bills on behalf of the industry as part of our Legislative Agenda (details below). To see a full list of the bills the Association is tracking and the latest legislative action of each, click here.
The Association’s State Legislative and Regulatory Affairs Committee meets at least monthly to stay informed of legislative/policy activity and provide input on bill amendments, key testimony points and more. Members with an interest in having a representative on the State Legislative Committee are welcome to reach out to MBA’s Brad Papalardo, Senior Vice President, Chief of Government Affairs and Counsel at bpapalardo@massbankers.org.
Advocacy is among MBA’s top priorities!
2023-2024 Legislative Session Filings – Post Joint Rule 10 Reporting Deadline
By way of an update, our 2023-2024 Legislative Program features our new and revised industry-focused bill filings for this session. Each bill is listed with a corresponding short summary and sponsor information. Their latest bill numbers and last legislative action are listed below.
ELECTRONIC PROPERTY RECORDINGS: An Act relative to uniform real property electronic recordings Sponsor: Rep. Daniel Cahill (D‐Lynn) Docket #: HD 1618 Bill #: H. 1405 Committee Assignment: Joint Committee on Judiciary
Status: Accompanied a Study Order by the Joint Committee on Judiciary– 2/5/24 This piece of legislation aims at implementing the Uniform Real Property Electronic Recording Act (URPERA) to facilitate electronic lending in the Commonwealth. The Uniform Real Property Electronic Recording Act (URPERA) allows local recording offices to accept deeds and other property records in electronic form. The act is technology-neutral and allows for Massachusetts to determine recording standards based on current best practices.
BANK NAME PROTECTION: An Act protecting the use of bank names, trade names and trademarks in electronic communications Sponsor: Rep. Daniel Cahill (D‐Lynn) Docket #: HD 1603 Bill #: H. 954 Committee Assignment: Joint Committee on Financial Services
Status: Accompanied a Study Order by the Joint Committee on Financial Services – 2/7/24 Revises the Commonwealth’s “Use of Bank Name” statute to reflect changes in technology and customer communications. Proposed language aims to modernize the current prohibitions on unlaw use of bank names to include communications and solicitations in electronic mail, text messages, websites and more.
“MINI” MODERNIZATION BILL: An Act amending the banking laws and related statutes Sponsor: Rep. Daniel Cahill (D-Lynn) Docket #: HD1614 Bill #: H 955 Committee Assignment: Joint Committee on State on Financial Services
Status: Accompanied a Study Order by the Joint Committee on Financial Services – 7/24/24 This legislation addresses several issues in its 16 sections. Among the bill's provisions are:
BANK ROBBERIES AND CHECK FRAUD: An Act enhancing the safety of bank customers & employees Sponsors: Sen. Michael Rush (D‐West Roxbury) and Rep. Tackey Chan (D‐Quincy) Docket #: SD 548/HD 2849 Bill #: S. 1117/H. 1419 Committee Assignment: Joint Committee on the Judiciary
Status: Accompanied a Study Order by the Joint Committee on Judiciary– 2/5/24 Establishes new definitions of and increases certain penalties for crimes against banks, including bank robberies, passing fraudulent checks and debit card transactions. This bill expands the definition of bank robbery under Chapter 265 to include note passers. The bill also facilitates the consolidation of check fraud that occurs in multiple court jurisdictions to a single jurisdiction.
CREDIT UNION FIELD OF MEMBERSHIP & MISSION: An Act enhancing the mission of credit unions and promoting fair competition among financial institutions Sponsor: Rep. Frank Moran (D‐Lawrence) Docket #: HD 479 Bill #: H. 1097 Committee Assignment: Joint Committee on Financial Services
Status: Accompanied Study Order - Joint Committee on Financial Services – 2/7/24 Over the last several years, Massachusetts credit unions have expanded their powers through changes to state law and federal regulation. In particular, the National Credit Union Administration’s (NCUA) expansive rulemakings regarding membership, business lending and the low‐income designation have encouraged many credit unions to move away from their core mission as member‐driven institutions serving individuals of modest means. The proposed legislation contains four (4) sections and includes language from H 1065 from the 2019‐2020 legislative session that establishes new requirements for credit union membership by‐law amendments. Specifically, the membership vote is increased from a majority to three‐quarters and at least five percent of the credit union’s total membership must participate in the vote. In addition, in most cases membership by‐law amendments must be considered at a credit union’s annual meeting. To facilitate greater member participation in these votes, the bill also mandates that all state‐chartered cred- it unions with more than 25,000 members provide the option for members to vote by electronic means at any special or annual meeting. The bill also refocuses state‐chartered credit unions on their traditional mission by enhancing the Community Reinvestment Act (CRA)
BANK MODERNIZATION TECHNICAL CORRECTIONS: An Act making changes to certain references in the banking laws of the Commonwealth Sponsor: Rep. John Lawn (D‐Watertown) Docket #: HD 1443 Bill #: H. 1078 Committee Assignment: Joint Committee on Financial Services
Status: (Placed in Orders of the Day for next session – 5/22/2024) This legislation updates other existing provisions of the General Laws to reflect the proper cites of statutory cross references in the revised banking laws after the enactment of Chapter 482 of the Acts of 2014. Other technical updates and corrections to the General Laws are also included in the bill.
RESTRICTING PATENT TROLLS: An Act to protect innovation and entrepreneurship in the Commonwealth Sponsor: Rep. Edward Coppinger (D‐Boston) Docket #: HD 1263 Bill #: H. 277 Committee Assignment: Joint Committee on Consumer Protection & Professional Licensure
Status: (Placed in Orders of the Day for next session – 5/22/2024) The proposed legislation creates a new Chapter 93L, Bad Faith Assertions of Patent Infringement that establishes a private right of action for Massachusetts businesses against patent trolls. The legislation defines a broad range of assertions of patent infringement and creates standards by which the assertion of patent infringement could be found to be in bad faith. These include demand letters that do not include necessary information; the letter requests the payment of a license fee or response within an unreasonably short period of time; or the offers to license the patent for an amount that is not based on a reasonable estimate of the value of the license, among others. The Attorney General is also given enforcement authority for the new Chapter.
DATA SECURITY STANDARDS: An Act relative to the security of personal financial information Sponsor: Rep. Michael Day (D‐Stoneham) Docket #: HD 3727 Bill #: H. 281 Committee Assignment: Joint Committee on Consumer Protection & Professional Licensure
Status: Extension Order Filed Until 7/31/24 by the Joint Committee on Consumer Protection & Professional Licensure – 2/8/24 This bill imposes strong data security standards modeled on the Gramm‐Leach‐Bliley data security requirements that banks and other financial firms must adhere to on non‐financial entities that use or store sensitive personal financial information. The legislation also deletes the language in Massachusetts law, (Chapter 93 H) that currently prohibits a bank from informing its customers of the nature of the breach who caused the breach or the number of residents affected.
RUFADAA: Revised Uniform Access to Digital Assets Act Sponsor: Sen. Barry Finegold (D‐Andover) and Rep. Jay Livingstone (D‐Boston) Docket #: SD 1822/HD 1772 Bill #: S. 974/ H. 1641 Committee Assignment: Joint Committee on the Judiciary
Status: Accompanied a Study Order by the Joint Committee on Judiciary– 2/5/24 The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) governs access to a person’s online accounts when the account owner dies or can no longer manage the account. Under the legislation, the powers of a fiduciary, such as the executors of a decedent’s estate, trustees, conservators, and agents under a power of attorney, are extended to include management of digital assets. Specifically, the bill allows fiduciaries to manage digital property like computer files, web domains, and virtual currency, but restricts a fiduciary’s access to electronic communications such as email, text messages, and social media accounts unless the original user consent- ed to fiduciary access in a will, trust, power of attorney, or other record. More than 40 other states have adopted RUFADAA.
REMOTE ONLINE NOTARIZATION (RON): An Act modernizing notary services Sponsor: Sen. Brenden Crighton (D‐Lynn) and Rep. Carmine Gentile (D‐Sudbury) Docket #: SD 927/HD 416 Bill #: S. 943/ H. 1525 Committee Assignment: Joint Committee on the Judiciary
Status: Signed by Gov. Healey, Chapter 2 of the Acts of 2023 RON is a modern form of notarization that allows anyone to appear before a commissioned notary using audio/video technology. RON is designed with a multi-layered approach to fraud prevention, using technology not available in the traditional paper-based process, including having the document signer be identified through at least two forms of identity proofing and an A/V recording of a signing would be created by employing tamper-evident technologies to secure electronic records. Utilizing RON, a notary can provide services to individuals located anywhere in the state without leaving home or an office. The bill aims at making it easier for notaries who speak multiple languages to provide services to the thousands of residents in the Commonwealth who may not speak English - a critical tool to assist in the completion of important financial and other personal transactions. Currently, 42 other states have adopted RON.