#2023-27, October 27, 2023

Massachusetts Bankers Association Testifies Before Financial Services Committee

Earlier this week the Joint Committee on Financial Services held a hearing on matters related to banking and regulatory legislation. The Association submitted testified and submitted written statements on 22 of the 36 bills before the Committee.

A few of the bills on which we testified included:

• The Association-supported “mini-modernization” bill to amend the banking laws passed in 2014 and provide necessary technical corrections to the existing statute. Among the updates recommended in the bill include permitting reciprocal deposit programs for public funds; allowing virtual annual meetings during a state of emergency; addressing competitive issues with bank core processors; and reconciling Massachusetts’ high-cost mortgage loan act with federal law. Read our testimony here.
• The creation of a MA public bank and climate bank, both of which the Association submitted testimony in strong opposition. Read our testimony here.
• A bill to protect seniors and adults with disabilities from financial exploitation. The Association, and its entire membership, are proud to be vocal advocates and front-line defenders against financial exploitation. Our testimony outlined concerns on certain definitions included in the legislation as well as unintended consequences that may arise should the bill pass into law. We also expressed concern with the broadening of the MA Secretary of State’s oversight over banks and financial services institutions. Read our testimony here.

We look forward to our continued conversations with MBA members and the members on the Joint Committee on Financial Services on each of these bills as the legislative process continues to unfold.

Please don’t hesitate to reach out with any questions. We will keep you updated on all developments.

Massachusetts Bankers Association Hosts Briefing for Committee on Financial Services

Last week, the Association hosted an informal briefing session for the members of the Joint Committee on Financial Services. We were pleased to have House Chair James Murphy (D- Weymouth), Senate Chair Paul Feeney (D- Foxborough), and several members of the Committee and their staff join us to learn about the Association’s legislative priorities and of the over 350 bills we are currently monitoring.

Association members also had the opportunity to network with the legislators, staff and each other to discuss various topics of the day. Special thanks to the MBA State Legislative Committee members and MBA members who joined us. We look forward to hosting similar events in the future.

Kathleen Murphy, MBA President & CEO, gives opening remarks at MBA Informal Briefing Session

Pictured L to R: Kathleen Murphy, MBA President & CEO, State Representative James Murphy, House Chair, Committee on Financial Services, State Senator Paul Feeney, Senate Chair, Committee on Financial Services, Brad Papalardo, Esq., MBA Senior Vice President, Chief of Government Affairs & Counsel, Larry Liuzzo, Vice President of Government Affairs.

Governor Healey Unveils $4 Billion Housing Bill, Transfer Tax Included

Last week, Governor Healey unveiled a $4 billion housing bond bill aimed at, among other provisions, increasing the housing stock by roughly 40,000 new homes across the Commonwealth over the span of five years. The housing bill has 28 different policy proposals, including one that would give municipalities the ability to impose a real estate transfer tax on high-dollar real estate transactions.

The Association and member institutions believe strongly that the Commonwealth needs more affordable and market rate housing; however, we oppose any proposals to implement new transfer taxes on real estate transactions to fund such initiatives. The Association recently submitted testimony to that effect to the Joint Committee on Revenue highlighting our opposition to several bills that would allow for the implementation of real estate transfer taxes on certain home sales. To read our testimony, click here.

At an event with Governor Healey earlier this week, State Representative Aaron Michlewitz (D-Boston), House Chair of the Committee on Ways and Means, stated that the housing bill will likely be acted upon by the end of this legislative session, which ends July 2024.

The Boston Globe’s Andrew Brinker has more on the Governor’s housing plan, which can be found here.

We look forward to working with the Administration, the Legislature and other stakeholders on this important issue. We will keep you posted on all developments going forward.

Massachusetts Division of Banks (MA DOB) Releases the Conference of State Bank Supervisors Ransomware Self-Assessment Tool, Version 2.0 (R-SAT, V2.0 Tool)

 On October 26, 2023, Massachusetts Commissioner of Banks, Mary Gallagher, sent the new R-SAT, V2.0 Tool to state chartered banks.  The Massachusetts Division of Banks has been a national leader in helping regulated banks assess their efforts in mitigating ransomware-specific risks and identifying gaps for increased security given that ransomware remains an evolving threat. The R-SAT provides executive management and boards of directors with an overview of the institution’s preparedness towards identifying, protecting, detecting, responding to and recovering from a ransomware attack.

The R-SAT, which was developed in collaboration with the Bankers Electronic Crimes Task Force, state bank regulators, and the U.S. Secret Service, was originally released in October 2020. It is proven to be a thought-provoking and easy-to-use and repeatable tool to help banks and credit unions periodically assess their own efforts to mitigate risks specifically associated with ransomware and to identify gaps for increasing security.

Ransomware Self-Assessment Tool 2.0 (R-SAT) - October 24, 2023 (csbs.org)

Pathway to R-SAT 2.0: Why the updates?

As the threats have both increased in frequency and complexity, state banking regulators were curious to evaluate state-chartered banks and credit unions which were victims of ransomware.  MA DOB and other banking departments conducted a study to review attacks on state regulated institutions for the period 2019-2022.  Study findings are summarized in the report Ransomware: Lessons Learned by Banks That Suffered an Attack.  Bankers who were victims of attacks helped to identify helpful prevention measures to prevent future attacks – measures that have informed the R-SAT 2.0 updates.

If you have any questions, please contact MA-DOB Director of Cybersecurity, IT, Fintech Holly Chase at Holly.Chase@mass.gov or 617 838 3696.

Department of Revenue FAQs on 4% Surtax on Income over $1 Million

Last week, MA DOR released a series of FAQs related to the treatment of the 4% surtax on income over $1 million.

For more information, click here.

Election Day is Tuesday, November 7, 2023

With under 2 weeks until Election Day, many municipalities are gearing up for a busy election season. You know better than most the vital role that municipal government plays in our daily lives and how important it is to vote in local elections.

For your convenience, find pertinent election information in the links below:

• Register to Vote
• Upcoming Elections – Primary and General Election Day Dates and Information
• Find Your Polling Place
• Vote-by-Mail Information
  • To track your mail-in ballot: Track Your Ballot

For more 2023 Election information and resources, click here.