#2022-13 June 3, 2022

Financial Services Committee Sends Public Bank Bills to Study; Green Bank, Other Initiatives Extended Further by Telecommunications, Utilities and Energy

Earlier this week, the Joint Committee on Financial Services sent two bills to establish a public bank to study - likely killing the measures this session.  The bills, S 682 & S 665, were both high on the Association’s legislative watchlist and we are pleased to see the Committee dispense of them well before final weeks of formal sessions at the end of July.  

With these bills sent to study, only one state-owned bank bill (H 1223) remains in the Committee.  MBA remains hopeful of a favorable resolution on that measure in the coming weeks as well.  The Financial Services Committee also decided to extend deadline for action on the Association-filed, H 1052, An Act amending the banking laws and related statutes, until June 30.  This procedural move keeps the bill alive until at least the end of the month.

We are also continuing to monitor another set of potentially problematic bills that were similarly extended until the end of June.  The bills, which are currently before the Joint Committee on Telecommunication, Utilities and Energy, all deal with renewable energy programs and include the establishment of a green bank (H 3340) and creation of a residential PACE program (H 3275).  The Association will continue to oppose these measures going forward.

Budget Negotiators Named With 29 Days 'til Fiscal New Year

On Thursday, the House and Senate each appointed its Ways and Means Committee chair, vice chair and ranking minority member to serve on the budget conference committee tasked with reconciling the House and Senate versions of the nearly $50 billion fiscal year 2023 state budget.  Representatives Aaron Michlewitz (D- Boston), Ann-Margaret Ferrante (D-Gloucester) and Todd Smola (R-Warren) will represent the House during the negotiations with Senators Michael Rodrigues (D-Westport), Cindy Friedman (D-Arlington) and Patrick O'Connor (R-Weymouth) negotiating on behalf of their Senate colleagues.

As we reported previously, while the overall spending levels are similar -- $49.76 billion in the House bill and $49.92 billion in the Senate’s proposal -- the two bodies have different approaches to that spending and each branch included its own suite of policy proposals.  For example, the Senate included licensing protections for doctors and other professionals involved with providing reproductive care in its budget while the House budget extends free, universal school meals for another year, makes phone calls free for incarcerated people and bans child marriage.

Last year, the same group of six lawmakers was appointed as budget conferees on June 7 and agreed on July 8 to a compromise $48.1 billion budget bill.  The state’s fiscal year begins on July 1 and 29 of the 46 states that start their fiscal years on that date have already put their budgets in place, according to the National Association of State Budget Officers.

FDIC Hosting Virtual Sessions for New Bank Directors

The FDIC is offering the Guidance for New Directors sessions virtually again this year in conjunction with the Directors College Program.  These are small-group sessions for new (or newer) directors that focus on fundamentals of board oversight and the examination process.  The sessions will focus on fundamental board governance issues and are designed for Directors with less than five years’ experience.  In addition to discussing participant questions, the session will cover Directors’ roles and responsibilities, the examination process, and effective strategies to monitor bank performance.

The first session is on June 16 with the second scheduled for October 27.  Both sessions begin at 11:00 AM and will run for 90 minutes.  Links to join the FDIC sessions are below.

June 16, 2022:  11:00 am-12:30 pm
Microsoft Teams meeting
Join on your computer or mobile app
Click here to join the meeting

October 27, 2022:  11:00 am-12:30 pm
Microsoft Teams meeting
Join on your computer or mobile app
Click here to join the meeting