#2022-4 February 4, 2022

Financial Services Committee Approves MBA’s Technical Corrections Bill; Delays Action on Public Bank and MBA’s “Mini Modernization” Bill until April 30; Sends Public Deposit and Credit Union Merger Bills to Study

On Wednesday, the Financial Services Committee issued reports on nearly all of the more than 330 bills pending before the Committee, meeting the Joint Rule 10 deadline for when legislation must be acted on by all legislative Committees.  Committee members sent more than half of the bills to study – a procedural maneuver that generally means that they will not advance any further in the Legislature for the balance of the session.

We were pleased that the Committee favorably reported out the Association-backed legislation, H 1140, that makes technical corrections to the bank modernization law and also sent several credit union measures, including H 1213 a bill authorizing credit unions to accept public deposits in Massachusetts and several bills – H 1108, S 656 & S 735- that sought to allow credit unions to merge with banks while being the surviving entity to study – likely killing these measures this session.

The Committee also delayed action on 22 other bills until April 30 or June 30, including the Association-backed “mini-modernization” bill, H 1052, and a measure, H 1223, which would look to establish a public bank in Massachusetts.  As previously reported, the Association testified in staunch opposition to the public bank bill during its October hearing and we will continue to oppose it if it moves further through the legislative process.

Lawmakers Send $101 Mil COVID Bill to Governor Baker

On Thursday, the Legislature sent a $101 million proposal to Governor Charlie Baker that invests in COVID-19 rapid testing, high-quality masks, and vaccination equity for public schools, congregate care facilities, health care workers, and homeless shelters.  The bill also includes extensions to COVID-19-era emergency rules allowing remote notary services, public meetings, reverse-mortgage counseling and schedules the statewide primary election on Tuesday, September 6.

The legislation, H 4435, grew by $46 million since it first emerged in the Legislature with additional dollars now targeted towards replenishing the COVID-19 Paid Sick Leave Program and to support education campaigns about an unemployment overpayment waiver process.  The bill earmarks $50 million to establish and expand COVID-19 testing at community health centers, regional vaccination clinics, urgent care centers, and other nonprofit organizations.  Locations receiving money to add more testing must provide walk-up appointments, according to the bill text.  Elementary and secondary public schools, charter schools, educational collaboratives, early education and care programs, congregate care facilities, early intervention programs, and homeless shelters will also have money to purchase COVID-19 rapid antigen tests.  Another $5 million is set aside to increase youth vaccination rates and an additional $5 million is reserved to support expanded infrastructure and staff capacity at community health centers to deliver COVID-19 vaccines in communities with low vaccination rates.

The bill boosts the COVID-19 Massachusetts Emergency Paid Sick Leave Program, which was created under a May 2021 law that called for $75 million in spending for a program offering workers up to one week of paid leave, capped at $850, by an additional $25 million.  The bill also requires the secretary of health and human services to implement a “detailed, comprehensive” plan to eliminate vaccination rate disparities within 120 days of the effective date of the bill.

Under the bill, health/care professionals and facilities are immune from lawsuits and civil liability for any alleged damages that were sustained while providing services during the COVID-19 outbreak.  The immunity does not apply if the damages were caused “by an act or omission constituting gross negligence, recklessness, or conduct with an intent to harm or to discriminate based on race, ethnicity, national origin, religion, disability, sexual orientation, or gender identity,” according to the bill’s language.

Baker now has 10 days to sign the bill, offer a veto, or return the bill to the Legislature with an amendment.

To review the COVID-19 Response Bill, click here.

Tax Receipts Already Running $1.5B Above Revised Estimate

On Thursday, as Governor Charlie Baker embarks on a push for tax relief proposals, the Department of Revenue (DOR) reported that it collected $4.026 billion in state tax revenue from people and businesses last month, a haul that surpassed expectations by $856 million or 27 percent and has helped to put the state nearly $1.5 billion ahead of its end-of-fiscal-year target.

As it did last month when it reported December revenues, DOR said that much of January’s windfall is likely temporary because many of the gains are attributed to a change in state law that allows certain businesses to avoid federal limits on state and local tax deductions.  Even after adjusting for the business tax changes, the tax-collecting department said January receipts exceeded January 2021 collections by $315 million or 9.4 percent and topped the monthly benchmark by $791 million.

In the first seven months of fiscal year 2022, DOR has so far collected approximately $21.872 billion -- $4.219 billion or about 24 percent more than actual collections during the same period of fiscal 2021 and $1.45 billion or about 7 percent more than the department’s year-to-date benchmark.  After accounting for the pass-through entity excise payments, DOR said that year-to-date collections are $2.982 billion or about 17 percent more than collections in the same period of fiscal 2021 and $794 billion or 4 percent more than the year-to-date benchmark.

In his fiscal 2023 budget plan, including corresponding bills, the governor proposed tax breaks for renters, seniors, parents and low-income workers, a cut to the tax rate on short-term capital gains, and two changes to the estate tax.  The Baker administration in January raised its estimate of fiscal 2022 tax collections by about $1.5 billion, and January’s tax haul puts the $1.5 billion above that newly revised fiscal year-end target.