HOUSE . . . . . . . No. 89
The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, March 10, 2021.
The committee on Ways and Means to whom was referred the message
from His Excellency the Governor recommending legislation relative to
financing a program for improvements to the Unemployment Insurance
Trust Fund and relief to employers in the Commonwealth (House, No. 55),
reports recommending that the accompanying bill (House, No. 89) ought to
pass [Bond Issue: $7,000,000,000.00].
For the committee,
AARON MICHLEWITZ.
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 FILED ON: 3/10/2021
HOUSE . . . . . . . . . . . . . . . No. 89
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Second General Court
(2021-2022)
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An Act financing a program for improvements to the Unemployment Insurance Trust Fund and
providing relief to employers and workers in the Commonwealth.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
immediately begin to restore solvency to the Unemployment Insurance Trust Fund, therefore it is
hereby declared to be an emergency law, necessary for the immediate preservation of the public
convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. To provide for a program for improvements to the Unemployment
2 Insurance Trust Fund and relief to employers in the commonwealth, the sum set forth in section
3 2, for the several purposes and subject to the conditions specified in this act, is hereby made
4 available, subject to the laws regulating the disbursement of public funds. The sum set forth in
5 section 2 shall be in addition to any amounts previously authorized and made available for these
6 purposes.
7 SECTION 2.
8 EXECUTIVE OFFICE FOR LABOR AND WORKFORCE DEVELOPMENT
9 Office of the Secretary
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10 7003-2025 For the program to reduce the amount of, or avoid the need to obtain, a
11 federal advance from the federal government or to repay federal advances made to the
12 commonwealth from the federal unemployment account for the fiscal years 2020 to 2025,
13 inclusive, and to fund any reserve account, costs of issuance, and capitalized interest, if any,
14 related to bonds issued for such purposes and the initial costs established pursuant to section 19
15 of this act and expenses of the administration of said program; provided, that the aggregate
16 principal amount shall not exceed the total amount authorized in this
17 item.........................................................................................................................$7,000,000,000.
18 SECTION 3. Paragraph (2) of subsection (a) of section 2 of chapter 62 of the General
19 Laws, as appearing in the 2018 Official Edition, is hereby amended by adding the following
20 subparagraph:-
21 (R) An amount which, but for this section, would be included in the gross income for
22 taxable year 2020, in whole or in part, of an eligible recipient, as described in subsection (a) of
23 section 1102 of the federal Coronavirus Aid, Relief, and Economic Security Act of 2020, Public
24 Law 116-136, because of the forgiveness described in subsection (b) of section 1106 of said act.
25 SECTION 4. Section 6 of said chapter 62 is hereby amended by adding the following
26 subsection:-
27 (x) (1) As used in this subsection, “unemployment compensation”, shall, unless the
28 context clearly requires otherwise, mean unemployment compensation included in gross income
29 pursuant to section 2 and as defined under section 85 of the Code, including, but not limited to,
30 benefits received under chapter 151A, or other unemployment compensation authorized by
31 federal law, including, but not limited to, the federal Federal-State Extended Unemployment
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32 Compensation Act of 1970, the federal Coronavirus Aid, Relief and Economic Security Act of
33 2020, the federal Continued Assistance for Unemployed Workers Act of 2020 or any
34 amendments to those acts.
35 (2) For taxable years 2020 and 2021, a taxpayer shall be allowed a credit against the
36 taxes imposed by this chapter in each taxable year if: (i) the taxpayer qualified for and received
37 unemployment compensation; and (ii) the taxpayer’s household income for the taxable year does
38 not exceed 200 per cent of the federal poverty level as calculated by the United States
39 Department of Health and Human Services. The allowable credit shall be equal to 5 per cent of
40 unemployment compensation received by the taxpayer and included in the taxpayer’s gross
41 income for the taxable year pursuant to section 2. If the amount of the credit allowed under this
42 subsection exceeds the taxpayer’s tax liability, the commissioner shall treat the excess as an
43 overpayment and shall pay the taxpayer the entire amount of the excess without interest.
44 (3) The total amount of credits that may be authorized in taxable year 2020 shall not
45 exceed $30,000,000; provided, however, that when the total amount of credits authorized in
46 taxable year 2020 equals $20,000,000, the commissioner shall provide written notice to the
47 house and senate committees on ways and means.
48 (4) The total amount of credits that may be authorized in taxable year 2021 shall not
49 exceed $20,000,000.
50 (5) The commissioner shall file a report with the house and senate committees on ways
51 and means and the chairs of the joint committee on revenue identifying the total amount of
52 credits claimed pursuant to this subsection for taxable year 2020 not later than September 1,
53 2021 and for taxable year 2021 not later than September 1, 2022.
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54 (6) The commissioner may promulgate regulations or guidance to implement this
55 subsection.
56 SECTION 5. Chapter 151A of the General Laws is hereby amended by inserting after
57 section 14J the following section:-
58 Section 14J1/2. For the period from January 1, 2021 until December 31, 2022, each
59 employer required to make contributions pursuant to section 14 shall pay an excise on the wages
60 paid to its employees in accordance with the following table:
61 Employer Account
62 Reserve Percentages Contribution Rate Excise Rate
63
64 Positive Percentage
65 17 or more 0.94 0.100
66 16.0 but less than 17.0 1.08 0.115
67 15.0 but less than 16.0 1.21 0.130
68 14.0 but less than 15.0 1.34 0.145
69 13.5 but less than 14.0 1.61 0.160
70 13.0 but less than 13.5 1.75 0.175
71 12.5 but less than 13.0 1.89 0.190
72 12.0 but less than 12.5 2.01 0.205
73 11.5 but less than 12.0 2.15 0.220
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74 11.0 but less than 11.5 2.29 0.235
75 10.5 but less than 11.0 2.42 0.250
76 10.0 but less than 10.5 2.56 0.265
77 9.5 but less than 10.0 2.69 0.280
78 9.0 but less than 9.5 2.82 0.295
79 8.5 but less than 9.0 2.96 0.310
80 8.0 but less than 8.5 3.09 0.325
81 7.5 but less than 8.0 3.23 0.340
82 7.0 but less than 7.5 3.37 0.355
83 6.5 but less than 7.0 3.50 0.370
84 6.0 but less than 6.5 3.63 0.385
85 5.5 but less than 6.0 3.76 0.400
86 5.0 but less than 5.5 3.90 0.415
87 4.5 but less than 5.0 4.04 0.430
88 4.0 but less than 4.5 4.17 0.445
89 3.5 but less than 4.0 4.30 0.460
90 3.0 but less than 3.5 4.44 0.475
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 91 2.5 but less than 3.0 4.57 0.490
92 2.0 but less than 2.5 4.71 0.505
93 1.5 but less than 2.0 4.84 0.520
94 1.0 but less than 1.5 4.98 0.535
95 0.5 but less than 1.0 5.11 0.550
96 0.0 but less than .5 5.24 0.565
97 Negative Percentage
98 0.0 but less than 1.0 7.03 0.580
99 1.0 but less than 3.0 7.64 0.595
100 3.0 but less than 5.0 8.26 0.610
101 5.0 but less than 7.0 8.86 0.625
102 7.0 but less than 9.0 9.48 0.640
103 9.0 but less than 11.0 10.09 0.655
104 11.0 but less than 13.0 10.70 0.670
105 13.0 but less than 15.0 11.31 0.685
106 15.0 but less than 17.0 11.93 0.700
107 17.0 but less than 19.0 12.53 0.715
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108 19.0 but less than 21.0 13.15 0.730
109 21.0 but less than 23.0 13.76 0.745
110 23.0 or more 14.37 0.760
111 For the purpose of this section, the term “wages” shall include only that part of
112 remuneration on which the employer is required to make contributions pursuant to section 14.
113 Such excise shall be paid to the commissioner in accordance with the procedures prescribed by
114 the commissioner, and shall be due at the same time as the contributions required pursuant to
115 section 14. The commissioner shall deposit the receipts of such excise into the Federal Loan
116 Interest Fund established in section 14K. Such receipts shall not be subject to the allowable state
117 tax revenue limitations established in chapter 62F. Prior to the depositing of the receipts, the
118 commissioner may deduct all administrative costs incurred as a result of this section, including
119 an amount as determined by the United States Secretary of Labor in accordance with federal cost
120 rules, if applicable.
121 Except where inconsistent with the terms of this section, the terms and conditions of this
122 chapter which are applicable to the payment of and the collection of contributions pursuant to
123 section 14 shall apply to the payment of and the collection of said excise; provided, however,
124 that said excise shall not be credited to the employer’s account or to the solvency account
125 established pursuant to section 14 except as otherwise provided in section 14K.
126 The commissioner, after providing not less than 60 days’ written notice to the chairs of
127 the house and senate committees on ways and means and the chairs of the joint committee on
128 labor and workforce development, may adjust the excise rate specified in this section to pay
129 interest required to be paid to the Federal Loan Interest Fund established by section 14K. The
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130 notice shall include, but not be limited to: (i) the proposed adjusted excise rate; (ii) the estimated
131 amount of funds that will be raised by the adjusted excise rate; (iii) the rationale for adjusting the
132 excise rate; (iv) the balance of the Federal Loan Interest Fund established by section 14K; and
133 (v) the estimated amount of interest required to be paid under section 1202(b) of the Social
134 Security Act.
135 SECTION 6. Said chapter 151A is hereby further amended by striking out section 14K
136 and inserting in place thereof the following section:-
137 Section 14K. There is hereby established a separate fund to be known as the Federal Loan
138 Interest Fund which shall be administered by the commissioner, without liability on the part of
139 the commonwealth beyond the amount credited to and earned by the fund. Said fund shall consist
140 of all amounts received under section 14J1/2, which shall be credited to such fund, except as
141 otherwise provided in said section 14J1/2 and any other monies authorized by law to be credited
142 to said fund. The monies credited to said fund shall be used only for the payment of interest
143 required to be paid under section 1202(b) of the Social Security Act. The monies in said fund
144 shall be continuously available to the commissioner for the payment of said interest without
145 further appropriation and shall not lapse at any time or be transferred to any other fund or
146 account except as provided in this section. On September 30 of each calendar year, the
147 commissioner shall transfer from said fund to the Unemployment Compensation Fund any
148 amounts deposited therein pursuant to section 14J1/2 prior to the immediately preceding 36
149 month period which have not been expended for the payment of interest. The commissioner shall
150 credit such amounts transferred to the solvency account pursuant to paragraph (1) of subsection
151 (e) of section 14 as of October 1 of said calendar year.
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152 SECTION 7. Paragraph (b) of subsection (1) of section 30A of said chapter 151A, as
153 appearing in section 8 of chapter 201 of the acts of 2020, is hereby amended by striking out
154 subparagraph (2) and inserting in place thereof the following subparagraph:-
155 (2) There shall be a state “off” indicator for the commonwealth for the purposes of this
156 paragraph for weeks of unemployment if at any time the provisions of subparagraph (1) are not
157 met or 100 per cent federal sharing is not available under section 4105 of the federal Families
158 First Coronavirus Response Act, Public Law 116-127, hereinafter the “Families First Act”, or
159 any subsequent amendment to the Families First Act, or other federal law and the funding is
160 sufficient to meet the requirements of this subparagraph, including, but not limited to the federal
161 Continued Assistance for Unemployed Workers Act of 2020.
162 SECTION 8. Paragraph (c) of said subsection 1 of said section 30A of said chapter 151A,
163 as so appearing, is hereby amended by striking out subparagraph (3) and inserting in place
164 thereof the following 2 subparagraphs:-
165 (3) There shall be a state “off” indicator for the purposes of this paragraph for weeks of
166 unemployment if at any time the provisions of subparagraph (1) are not met or 100 per cent
167 federal sharing is not available under section 4105 of the Families First Act, or any subsequent
168 amendment to the Families First Act, or other federal law and the funding is sufficient to meet
169 the requirements of this subparagraph, including, but not limited to, the federal Continued
170 Assistance for Unemployed Workers Act of 2020.
171 (4) With respect to determining whether the state is in an extended benefit period from
172 November 1, 2020 to December 31, 2021, inclusive, the commonwealth shall disregard the
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173 requirement of paragraph (a) that no extended benefit period may begin before the 14th week
174 following the end of a prior extended benefit period which was in effect.
175 SECTION 9. Section 50 of chapter 201 of the acts of 2020 is hereby amended by striking
176 out the words “June 30” and inserting in place thereof the following words:- December 31.
177 SECTION 10. Notwithstanding chapter 62C of the General Laws or any other general or
178 special law to the contrary, in order to address disruptions caused by the outbreak of the 2019
179 novel coronavirus, also known as COVID-19, and the effects of the governor’s March 10, 2020
180 declaration of a state of emergency, for taxable year 2020, no tax penalty shall be imposed by the
181 commissioner of revenue on a taxpayer solely for failure to remit taxes imposed by chapter 62 of
182 the General Laws on unemployment compensation, as defined in section 85 of the Internal
183 Revenue Code, received by a taxpayer during taxable year 2020; provided, however, if such
184 penalty has been assessed, it shall be abated by the commissioner of revenue in whole.
185 SECTION 11. Notwithstanding section 14 of chapter 151A of the General Laws, for
186 calendar years 2021 and 2022, the experience rate of an employer qualifying under subsection
187 (b) of said section 14 of said chapter 151A shall be the rate which appears in column “E” of
188 paragraph (1) of subsection (i) of said section 14 of said chapter 151A.
189 SECTION 12. Notwithstanding any federal interest charges for necessary federal
190 advances, the commissioner, as defined in subsection (e 1/2) of section 1 of chapter 151A of the
191 General Laws, may pursue any necessary federal advances to provide for timely payment of
192 benefits. Nothing in this act shall contribute to or allow for a reduction in benefits including, but
193 not limited to, the amount or length of benefits, pursuant to said chapter 151A.
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194 SECTION 13. The following definitions shall apply to sections 13 to 16, inclusive, and
195 shall have the following meanings, unless the context clearly requires otherwise:
196 “Child”, a biological, adopted or foster child, a stepchild or legal ward, a child to whom
197 the employee stands in loco parentis, or a person to whom the employee stood in loco parentis
198 when the person was a minor child.
199 “COVID