#2021-21 July 23, 2021

Administration Sets Rates for COVID-19 UI Assessments

The Baker administration announced last week that employers in Massachusetts will face additional assessments equal to 10.5 percent of their unemployment insurance rates as part of an accounting fix designed to mitigate the pandemic’s effect on the UI fund.  As we reported previously, the unemployment system stabilization law, which Governor Charlie Baker signed in May, eliminated significant increases in the bills that businesses pay to fund joblessness benefits while imposing a new COVID-related charge.

In a letter to businesses, the Department of Unemployment Assistance stated that the quarterly “COVID-19 Recovery Assessment” will be equal to 10.5 percent of each employer’s existing UI rate.  For example, businesses that pay a UI rate of 4.98 percent will face an additional COVID-19 assessment at a 0.523 percent rate.  Adjusted UI rates and COVID rates will be available beginning on July 26, with bills for the first and second quarters due by August 31. 

As of May 31, the fund had a balance nearly $1.8 billion in the red, according to the most recent state report.  Many business groups are advocating for the Legislature and administration to use a portion of state’s $5 billion American Rescue Plan Act (ARPA) funding to pay down the deficit and reduce the burden; however, it is unclear whether the Legislature and Governor Baker will set aside ARPA funds for this purpose. 

House Approves Sports Betting Legislation

On Thursday, the House voted 156-3 to approve a bill legalizing sports betting in Massachusetts.  The legislation (H 3977), put sports betting under the purview of the Gaming Commission, requires that all bettors be at least 21 years old and physically present in Massachusetts, and implements numerous consumer safeguards to protect against problem gambling; similar to those put in place for casinos when Massachusetts expanded gaming in 2011.

Under the House bill, MGM Springfield, Encore Boston Harbor, Plainridge Park Casino, the state’s two simulcasting facilities and racetracks that host live horse racing would be granted licenses to take in-person wagers as long as they meet rules and requirements of the Gaming Commission.  They would be allowed to have between one and three mobile sports betting platforms, depending on the facility.  Mobile-only operators could also seek licenses and every license would carry a $5 million fee.

The House vote is seen as a signal to the Senate, which has been less interested in pursuing sports betting.  Thirty states, including neighboring Rhode Island, Connecticut, New Hampshire and New York, have authorized gamblers to place legal bets on sports in some fashion.  It is unclear when the Senate will consider the bill as the Legislature heads into its August break. 

Division of Banks to Hold Public Hearing on Student Loan Servicer Regulations

Earlier this week, the Division of Banks announced it will hold a virtual public hearing relative to proposed amendments to 209 CMR 18.00: Conduct of the Business of Debt Collectors, Student Loan Servicers, and Third-Party Loan Servicers and 209 CMR 48.00: Licensee Record Keeping.  As we reported previously, these amendments were also filed as Emergency Regulations - effective July 1, 2021 - to implement the student loan servicer licensure provisions as set forth in Chapter 358 of the Acts of 2020.  The proposed amendments are identical to the Emergency Regulations. 

Written comments may be submitted to the Division on the proposed amendments until Wednesday, August 11, 2021, at 5:00 p.m.  The public hearing notice and proposed amendments are available on the Division’s website here.