#2021-7 February 26, 2021

Association Files Seven Bills for Consideration in the 2021-22 Legislative Session

Late last week, the Association filed 7 bills for consideration by the 2021-22 Massachusetts Legislature.  A total of 6,546 bills -- 2,493 in the Senate and 4,053 bills in the House – were filed by last Friday’s timely filing deadline.  Along with refiling measures that did not advance last session, MBA filed new and revised bills addressing several issues, including:

• Mandating stronger standards for credit union membership by-law changes and ensuring that state-chartered credit unions are fulfilling their traditional mission, filed by Representative Frank Moran (D-Lawrence);
• Protecting Massachusetts banks against patent infringement claims, filed by Senator Eric Lesser (D-Longmeadow) and Representative Lori Ehrlich (D-Marblehead);
• Enhancing the state charter by making updates and revisions to several areas of state banking law, via our updated “mini-mod” bill filed by Representative Dan Cahill (D-Lynn);
• Correcting drafting issues contained in Chapter 482 of the Acts of 2014, the bank modernization law, filed by Representative John Lawn (D-Watertown);
• Imposing strong data security standards on retailers and other merchants, filed by Representative Michael Day (D-Stoneham);
• Increasing the penalties for bank robberies and allowing the check fraud cases to be consolidated into a single county, filed by Representative Paul Tucker (D-Salem) and Senator Michael Rush (D-West Roxbury); and
• Governing access to a person’s online accounts and assets when the owner passes away or loses the ability to manage the accounts, filed by Representative Jay Livingstone (D-Back Bay) and Senator Barry Finegold (D-Andover).

Several new provisions were added to the “mini-mod” bill this year to reflect changes in customer behavior and bank operations during the pandemic.  These include providing authority for the Commissioner of Banks to allow virtual annual meetings for state-chartered institutions during a state of emergency; updates to the use of bank name statute to reflect changes in technology and customer communication; and provisions to help facilitate electronic lending in the Commonwealth.

We are reviewing the more than 6,500 bills filed in the House and Senate and we anticipate it will be several weeks before all bills are assigned to committees.  A more detailed summary of bills of concern will be highlighted in upcoming issues of the Beacon Hill Report. 

To view the Association’s 2021-2021 Legislative Agenda, click here. 

Governor Baker Announces State is Moving to Phase III, Step 2 of Reopening Plan on March 1 and Phase IV, Step 1 on March 22

At a press conference earlier this week, Governor Charlie Baker announced that the state’s reopening plan will enter Phase III, Step 2 on Monday, March 1.  He also indicated that the Commonwealth is planning to enter Phase IV, Step 1 on March 22 if key metrics continue to improve in the coming weeks. 

With the move to Phase III, Step 2, several types of businesses, such as concert halls, theaters, and other indoor performance venues will be allowed to reopen at 50 percent capacity.  Restaurants will no longer be subject to a set percent capacity limit, although six-foot distancing, limits of six per table and a 90-minute time limit for diners remain in place.  Most importantly for the banking industry, capacity limits across all other sectors will increase to 50 percent, excluding employees.  This includes office and retail space.

If the state moves to Phase IV, Step 1 as anticipated, indoor and outdoor stadiums, arenas and ballparks will be allowed to reopen with a strict 12 percent capacity limit.  In addition, gathering limits for indoor spaces and public venues will increase to 100 people indoors and 150 people outdoors.  Outdoor gatherings at private residences and in private backyards will remain at a maximum of 25 people, with indoor house gatherings remaining at 10 people.

To read the announcement, click here.