Amendment ID: S35-1-R1

Redraft Amendment 1

Commission on Unemployment Trust Fund Solvency

Ms. Jehlen, Mr. Tarr, Ms. Moran, Mr. Eldridge, Ms. Rausch, Messrs. Timilty, O'Connor, Gomez and Montigny move that the proposed new text be amended by inserting after section 24 the following section:-

“SECTION 24A. (a) There shall be a special commission on solvency of the Unemployment Trust Fund established in section 14F of chapter 151A of the General Laws. The commission shall consist of: the chairs of the joint committee on labor and workforce development, who shall serve as co-chairs; the secretary of labor and workforce development; the director of unemployment assistance; 2 members appointed by the Massachusetts State Labor Council, AFL-CIO; 1 member appointed by the Associated Industries of Massachusetts, Inc.; 1 member appointed by the Massachusetts Legal Assistance Corporation representing unemployed workers; 1 member appointed by the Alliance for Business Leadership, Inc.; 1 member appointed by the Union of Minority Neighborhoods, Inc.; 1 member appointed by the Massachusetts Restaurant Association, Inc.; 1 member appointed by the Black Economic Council of Massachusetts, Inc.; 1 member appointed by the Massachusetts Building Trades Council; 1 member appointed by the National Federation of Independent Businesses; and 1 member appointed by the Retailers Association of Massachusetts, Inc.

(b) The commission shall study the long-term solvency of the trust fund, including, but not limited to: (i) evaluating whether changes are necessary to the experience rating system that would promote solvency and reduce the tax impact on small businesses; (ii) examining increasing or indexing the taxable wage base under section 14 of said chapter 151A; (iii) examining the industry specific impacts of changes to the unemployment tax rate; (iv) reviewing solvency efforts in other state unemployment tax systems; (v) determining what changes are necessary to benefit from federal tax credits and federal interest-free borrowing under the Federal Unemployment Tax Act; and (vi) examining benefit structure. The executive office of labor and workforce development and the department of unemployment assistance shall furnish any necessary information or documentation to develop recommendations on the areas of study. The commission may consult as necessary with relevant stakeholders, academic institutions and experts and may convene them as an advisory panel.

(c) The commission shall hold at least 1 public hearing, and may hold additional hearings as necessary, at which members of the public shall have an opportunity to speak.

(d) Not later than December 10, 2021, the commission shall file a report with the clerks of the house and senate and the house and senate committees on ways and means that shall include the commission’s findings and recommendations for legislation that would ensure long-term solvency of the trust fund and meet solvency criteria required by the United States Department of Labor under the Federal Unemployment Tax Act and applicable regulations and guidance.”.