#2021-17 June 11, 2021

Senate Passes Pandemic Policy Extensions Including Remote Notarization

On Thursday, the Senate temporarily extended several pandemic-era policies that would otherwise expire in connection with the June 15 termination of the COVID-19 state of emergency.  The Senate bill, S 2467, extends authorizations for mail-in voting, remote public meetings, and takeout cocktails for several months.  

In addition, the measure includes an extension of the temporary provisions allowing remote notarizations in the Commonwealth.  That provision, which was set to expire on June 18, will now be extended until December 15, 2021.  In a letter to Senate leadership, the Association voiced our support for a one-time extension to the existing language with the goal of bringing a comprehensive Remote Online Notary (RON) bill to the floor later this session. 

Before passing the bill, the Senate also adopted amendments extending the emergency’s flexibilities for physician assistants and continuing to allow counseling for reverse mortgage loans to be conducted by video.  Amendments to continue the cap on fees that third-party delivery services charge restaurants and require public bodies to meet in-person while still allowing the public to observe proceedings remotely were rejected during the Senate debate.  The House is expected to take up a similar bill next week. 

To read the Association’s letter to Senate leadership, please click here.

Lawmakers Advance “Millionaire’s Tax” to 2022 Ballot

During a joint Constitutional Convention meeting of the House and Senate Wednesday afternoon, the Massachusetts Legislature voted 159-41 to let voters decide on the 2022 statewide ballot whether to impose a new 4 percent surtax on annual household income over $1 million.  The proposed constitutional amendment (S 5) needed 101 votes to advance.  The vote effectively started an 18-month ballot campaign by supporters and opponents of the amendment. 

Only one Republican, Senator Patrick O’Connor of Weymouth, voted to advance the amendment while nine Democrats -- Representatives Brian Ashe (Longmeadow), Ann-Margaret Ferrante (Gloucester), Michael Finn (West Springfield), William Galvin (Canton), Colleen Garry (Dracut), Chris Markey (Dartmouth), Angelo Puppolo (Springfield), Paul Schmid (Westport) and Jonathan Zlotnik (Gardner) -- voted in opposition.

Proponents have been advocating for the tax change for years claiming that it could generate $2 billion per year for education and transportation without increasing taxes on the vast majority of Massachusetts residents.  Opponents, including many in the business community, believe it will make the Commonwealth less competitive and drive jobs and residents to lower tax states.  

If voters approve the surtax, the first $1 million of household income would still be taxed at the current five percent rate and all income above that would be taxed at an effective rate of 9 percent.  The proposal will appear on ballots in November 2022.

Division of Banks Holding Public Hearing on Proposed Amendments to 801 CMR 4.00: Rates

The Division of Banks recently announced that it is holding a joint public hearing on Tuesday, June 22 at 10:30 a.m. regarding fees for the licensing of student loan servicers and automatic federal student loan servicers.  In addition, the Division will be considering changes to the fees to establish state-chartered bank and state-chartered credit union branches under Chapter 338 of the Acts of 2020, and regulation 801 CMR 4.02.

Under the amendment, which is being proposed pursuant to Chapter 338 of the Acts of 2020, the credit union modernization bill, the fee for a state-chartered bank to establish a new branch is lowered to $500 to be consistent and equal with the fee for a credit union.  The Association advocated for this change last legislative session, and we are pleased that it was included in Chapter 338.

Written comments may be submitted to the Division on the proposed fees until Wednesday, June 23, 2021, at 5:00 p.m.  For more information, please click here.