Government Affairs Committee Meetings

With slightly over four months to go in the 2021-2022 legislative formal session calendar, this month’s meeting touched on various pieces of legislation before Beacon Hill legislators including, but not limited to:

• Pay equity
• Wage theft
• Employment protection
• Health care
• energy

The Committee also discussed the current fiscal landscape for the state and potential budget items that may emerge in the coming months.

The Committee continued to have discussions about the pending 2022 ballot initiatives that are still in play and how they might impact the economy and Massachusetts businesses.

Federally, the Committee discussed the impacts of the current geo-political events on energy costs.

The Committee will be making recommendations about whether AIM should weigh in on some pending legislation.

Pay Equity

AIM’s GA team had been monitoring 2 pay equity related measures this session – H.1950/S.1208 An Act relative to wage transparency  which requires employers to provide a position’s salary range/pay scale to a prospective or current employee upon request; and H.2020/S.1196 An Act relative to transparency in the workplace which requires employers with 100 or more employees to submit an annual wage data report to be published on the Executive Office of Labor and Workforce Development’s website, said report would need to reflect average compensation for employees broken down by race and gender.

• • • The legislature’s Labor and Workforce Development Committee joined both bills into one package and issued it a favorable report. The new bill now goes before the Senate Committee on Ways and Means. AIM staff will remain engaged on the bill’s movement and continue advocating for policies – through projects such as our Pink Slip initiative – that work to alleviate racial and gender workplace discrepancies without placing onerous reporting requirements on companies and making their information public.

Data Privacy –

On February 14^th the Joint Committee on Advanced Information Technology, the Internet, and Cybersecurity released a redraft of the Massachusetts Information Privacy Act (MIPSA) currently live as S.2687, An Act establishing the Massachusetts Information Privacy Act.

• • • Although the redraft received a favorable report from Committee and is technically before Senate Ways and Means, neither House nor Senate leadership have indicated strong support for the language this session AIM staff remains engaged on the bill’s progress in the off chance that changes, and are taking meetings with concerned/affected members for feedback to provide back to lawmakers.

 Healthcare –

Three pieces of healthcare legislation have passed one branch of the legislature thus far this session:

• Senate Pharma bill – S.2651 An Act relative to pharmaceutical access, costs and transparency (PACT Act)
• Senate mental health bill – S.2584 An Act addressing barriers to care for mental health
• House market review bill – S.4262 An Act enhancing the market review process
• We expect Governor Baker to file an omnibus healthcare package in the upcoming weeks.
• • • • The Governor’s language is expected to reflect much of what was included in his 2019 healthcare legislation prior to the onset of the COVID-19 pandemic, including increased investments in primary care and behavioral health, licensure processes for urgent care centers, language addressing facility fees and streamlined out-of-network rates.
      • As we wait for the Governor’s legislation, we anticipate it will become a vehicle through which the House and Senate will work to advance their various healthcare priorities. AIM staff will continue to monitor progress on all fronts and keep members involved and informed.

Dental Medical Loss Ratio Ballot Initiative –

One of the three remaining initiatives that may still appear on the ballot this fall sets an 83% medical loss ratio for dental coverage in Massachusetts, meaning 83% of all carrier revenues must be expended on dental care and quality improvements (versus administrative costs etc.).

AIM has received feedback from at least one carrier member that the structure introduced by the ballot initiative will be infeasible for dental insurance business models, resulting in decreased dental options and increased dental costs for Massachusetts residents and employers.

• • • • AIM staff is in direct communication with affected carriers to learn more. The first option is the resolve the issue legislatively as the Legislature has until May 4^th to take action on any of the three pending ballot initiatives. If they choose not to do so, the campaign behind the ballot will need to collect an additional 13,000 signatures by July 6^th in order to appear on the November 2022 ballot.
      • Both opponents and proponents of the ballot initiative are confident enough signatures will be available to send the issue to the voters should the Legislature choose not to act.

FY23 Budget/fiscal picture –

FY 23 Governor’s Tax Proposal 

• • • • • Estate Tax reforms (raises the floor from $1million to $2million)
        • Short Term Capital Gains tax (reduced to 5%)
        • Several progressive tax reforms for seniors, tenants, primary caregivers

FY 22 Supplemental Budget 

• • • • • $2.4 Billion in spending for FY 22 surplus (not ARPA money), however $.8Billion is ​reimbursable.
        • Majority of the spending on COVID-19 mitigation costs, $400 million in grants to childcare providers

COVID leave –

• • • • Massachusetts COIVD-19 Emergency Sick Leave will end on 3/15. AIM members are strongly encouraged to apply now.

Wage Theft – 

• • • • Legislation extended until 4/4. Committe redraft would extend slightly limit vicarious liability to subcontracting within the “normal course of business”

Digital Ad Tax – 

• • • • All Digital Ad Tax Bills were extended to 5/4, which is after the house will finish the budget. All revenue bills must start in the house. The primary concern is a commission to study the legislation. Maryland is the only state that has adopted the tax which is currently tied up in litigation
• Omnibus Energy
• Local infrastructure issue –Ballot Initiative Discussions Cont. –  
  • Independent contractor ride-share –

Federal Report –

War in Ukraine will likely further disrupt supply chain issues, dominate legislative debate and increase the cost of fuel globally

US House and Senate both have passed different version of CHIPS act which would subsidise domestic semiconductor’s and make the US economy more competative with China

Kentanji Brown Jackson nominated to replace Stephen Breyer, likely to be confirmed already a few Republican Senator’s indicated support