#2021-19 July 2, 2021

Annual Budget Negotiators Also Asked to Handle Supplemental Budget

On Thursday, the six lawmakers previously tasked with reconciling the differences between the House and Senate budgets for fiscal year 2022 added even more to their plates as all six were appointed to negotiate a compromise version of a supplemental fiscal year 2021 budget bill.

Representatives Aaron Michlewitz (D-Boston), Ann-Margaret Ferrante (D-Gloucester) and Todd Smola (R-Warren), and Senators Michael Rodrigues (D-Westport), Cindy Friedman (D-Arlington) and Patrick O'Connor (R-Weymouth) are now charged with working through the differences in both versions of a roughly $260 million supplemental spending bill after the House passed its spending bill (H 3871) on June 10 and the Senate approved its own bill (S 2485) on June 24.  Additionally, the conferees will have more than just dollars and cents to talk about as both branches included their own proposals to replace the MBTA’s Fiscal and Management Control Board, which expired on Wednesday, in their supplemental budgets and the House approved a provision that would make mail-in voting permanent for state elections. 

Secretary of State William Galvin and municipal leaders have been hoping the Legislature will resolve the issue of mail-in and early voting, at least in the short-term, for local elections scheduled to take place this summer and fall.  The Senate’s plan to extend mail-in voting until December is still in a separate conference committee that is considering which other pandemic policies the Legislature should extend.

To review the House’s supplemental budget, click here; To review the Senate’s supplemental budget, click here. 

Division of Banks Files Emergency Student Loan Servicer Regulations 

Earlier this week, the Division of Banks (Division) filed emergency regulations to implement the student loan servicer licensure provisions set forth in Chapter 358 of the Acts of 2020 (Chapter 358).  The emergency regulations, which amend 209 CMR 18.00: Conduct of the Business of Debt Collectors and Third Party Loan Servicers and 209 CMR 48.00: Licensee Record Keeping, are effective as of July 1, 2021.  Summaries of both are provided below:

209 CMR 18.00: Conduct of the Business of Debt Collectors, Student Loan Servicers, and Third Party Loan Servicers

Chapter 358 sets forth several provisions relative to student loan servicing, including the creation of G.L. c. 93L, which requires the licensure of certain student loan servicers by the Division.  The proposed amendments to 209 CMR 18.00 would expressly incorporate the new student loan servicer licenses into the current regulation setting forth the requirements for licensure, as well as providing standards for conduct and prohibited practices, among other provisions.  The amendments add the particular application requirements and licensing standards for student loan servicers, as well as the requirements for licensure as an automatic federal student loan servicer.  In addition, the amendments incorporate the student loan servicers and automatic federal student loan servicers into the applicable existing provisions governing the requirements for office locations, changes in ownership, and the filing of annual reports.

The amendments also add student loan servicers and automatic federal student loan servicers into the existing provisions identifying unfair servicing practices for loan servicers of all types, and also add a new section setting forth standards of conduct and unfair or deceptive acts or practices specifically by student loan servicers.

The amendments add a section regarding the confidentiality of examination and investigation records for the three license types (debt collectors, student loan servicers, and automatic federal student loan servicers) and one registrant (third party loan servicers) covered by the regulation, incorporating the language from the respective statutes.  The title of the regulation has been changed to Conduct of the Business of Debt Collectors, Student Loan Servicers, and Third Party Loan Servicers.

The amendments to 209 CMR 18.00 and the FAQs can be accessed by clicking here.

209 CMR 48.00: Licensee Record Keeping

The purpose of 209 CMR 48.00: Licensee Record Keeping is to establish procedures and requirements for record keeping by the Division’s licensees.  In order to implement Chapter 358, the proposed amendments to 209 CMR 48.00 would expressly incorporate the new student loan servicer license into the regulation setting forth the record keeping requirements for all of the Division’s licensees.  The amendments make the following changes: adding student loan servicers and automatic federal student loan servicers to the definition of “licensee” so that they are included within the requirements of the regulation; incorporating the specific record retention period for student loans servicers; and including the specific time period within which student loan servicers must respond to records requests from the Commissioner.

The amendments to 209 CMR 48.00 can be accessed by clicking here.  There are other technical updates to both regulations as well.  The Emergency Regulations and related FAQs are also available on the Division’s website by clicking here.