#2023-31, December 8, 2023

Governor Healey Signs $3 Billion Fiscal Year 2023 “Close-Out” Budget

Governor Maura Healey signed the $3.1 billion spending bill that reached her desk on Monday. As reported, among the provisions, the bill closes out Fiscal Year 2023 and allocates $250 million in emergency funding requested by Governor Healey to help alleviate the growing pressures on state and local resources involving the increasing number of migrants seeking aid, medical attention, housing and more throughout the Commonwealth.

Separately, the salary range transparency bill that was passed by both the House and Senate remains in conference committee. We will keep you posted on all developments as we learn more.

To read more about the budget bill, click here.

Governor Healey Unveils 2023 Economic Development Plan

This week, Governor Healey unveiled her administration’s first economic development plan – “Team Massachusetts: Leading Future Generations.”

Citing Massachusetts’ long history of leadership in industries such as financial and intellectual capital, health care, higher education, and others, the plan is “drafted with this strong history and record of success in mind, and with an eye towards a vibrant future for our state, its economy and its people. This plan reflects a vision for Massachusetts which is organized around three main priorities, supported by specific initiatives for each:

1. Fundamentals: Investing in the fundamentals to enable economic growth,
2. Talent: Retaining and attracting the world’s best talent across all backgrounds, and
3. Sectors: Supporting businesses that power the state’s economy.”

According to the Governor’s office, this plan will guide her administration’s priorities over the next four years “to make Massachusetts more affordable, competitive, and equitable.”

To read more about the economic development plan click the links below:

• Team Massachusetts: Leading Future Generations
• Healey-Driscoll Administration Announces 2023 Economic Development Plan | Mass.gov

AG Campbell Releases New “Junk Fee” Regulations

Last week, Attorney General Andrea Campbell’s office released a new set of regulations aimed at prohibiting so-called “junk fees” as reported in the Boston Globe article -- 'Junk fees' are focus of new regulations from AG Campbell (bostonglobe.com). While on their face the newly proposed regulations appear mostly aimed at “junk fees” added in the sale of products, there are some advertising, solicitation and other provisions looped into the proposed regulation that merits industry review. The AG’s regulatory proposal will be subject to a hybrid public hearing on Wednesday, December 20th, 2023, at 11:00 a.m. in Boston. 

Thomas P. Quinn, Jr., Partner at Hudson Cook, LLP, provided an analysis of the draft regulation, which can be found here.

The Association is still reviewing this new set of regulations to gauge what impact, if any, they may have on the industry. MBA urges our members to review the proposed regulations and contact Brad Papalardo or Larry Liuzzo with any comments or concerns.

Massachusetts Department of Revenue (DOR): November 2023 Revenue Collections Total $2.253 Billion

The MA DOR reported November 2023 revenue collections totaled $2.253 billion -- $131 million (5.5%) less than collections in November 2022 – and $274 million (10.9%) below benchmark.

Fiscal Year 2024 (FY24) year-to-date collections totaled approximately $14.097 billion -- $146 million (1%) more than the same period last year of Fiscal Year 2023 (FY23), but $627 million (4.3% ) less than the year-to-date benchmark.

To read more about the September 2023 revenue collections, click here.

CommonWealth Beacon’s Bruce Mohl has more on the revenue picture here.

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.