#2022-16 July 22, 2022

Senate Finalizes Economic Development Bill; Heads to Last-Minute Conference Committee

On Thursday, after working its way through more than 630 amendments during two days of formal sessions, the Senate unanimously approved a $4.4 billion economic development bill that uses a portion of the state budget surplus and federal funding from the American Rescue Plan Act (ARPA).  The bill, S 3018, contains dozens of provisions investing in housing development, financially strained hospitals, climate resiliency, and childcare, among others.  The measure also contains $500 million in one-time tax rebates and another $500 million in permanent tax breaks.

MBA sent a letter to Senators raising concerns with several amendments harmful to the industry and we were pleased to see seven of the eight withdrawn or rejected by the Senate. The amendments, which included the establishment of a public bank, policy changes on debt collection and small business data collection requirements, and a “good faith” standard for mortgage servicing, also included two proposals to impose real estate transfer taxes on certain residential and commercial property sales.

We were also glad to see another crumbling foundation amendment – filed by Senator Gobi (D-Spencer) and supported by the Association – adopted by the Senate during debate.  Sen. Gobi’s amendment would provide $2.5 million to assist homeowners in the central and western parts of the state remediate their crumbling foundation issues.  While the Association was pleased most of the concerning proposals ultimately failed to gain any legislative momentum during the Senate’s two-day debate, one MBA-opposed amendment (#208) that restricts the use of non-licensed appraisers in property valuations, did receive the Senate’s approval.

As we reported previously, the House passed its version of the Economic Development bill last week and with this week’s Senate vote, the bills now appear bound for a conference committee where negotiators will need to resolve different spending levels and policy riders before they can send a final measure to Gov. Charlie Baker before the end of formal sessions on July 31.

To view the Association’s letter to the Senate, click here. To view the final Senate economic development bill, please click here.

Division of Banks to Host Webcast on Fair Banking and Verifying Compliance with Regulation E

On Tuesday, July 26, member bankers are encouraged to join the Division for a “DOB Connects” live webcast featuring an interview with Marla Snyder, Compliance Officer at South Shore Bank. The discussion will be centered on recent federal guidance relative to Fair Banking and best practices regarding the treatment of authorized account transactions.

To for more information and to register, click here.