The Massachusetts House and Senate have opted to reconvene and revisit legislation that stalled on the final day of session last August. This meant an economic development bill, an environment/energy bill, and a Boston tax bill were back on the table in November post-election.

The energy bill eased through both chambers with very little opposition. It was scaled back from the more onerous version presented earlier in the year, but still may add additional costs to utility bills in future years. As many of you know, it is all the additional fees that drive up the cost of energy in Massachusetts. Governor Healey signed this into law.

The Economic Development bill also coasted through the House and Senate. While it provides billions of dollars for the high tech and green energy industries, it has a provision harmful to small businesses. The bill allows municipalities to require project labor agreements for municipal works projects and will prevent many smaller businesses from bidding on these jobs. We requested Governor Healey veto the section, but it was signed into law largely unchanged.

Finally, a bill shifting more of the city of Boston’s tax burden onto commercial properties rather than residential, squeaked through the House in an informal session. Representative David DeCoste of Norwell held the bill up for two informal sessions after the bill was rushed through a Revenue Committee hearing. NFIB continued to oppose this modified version of the bill that other business groups endorsed as a “compromise.” It is unclear if any senators will hold the bill up in the Senate informal session this week. It only requires one objection to stall a bill during an informal.

Additionally, unemployment insurance taxes remain a major problem. It is looking less and less likely that the Healey administration came to any sort of agreement with the Biden Labor Department to address the $2.5 billion UI error that surfaced last year. This, coupled with the projections of an insolvent fund by 2028 and the ongoing covid assessment, is a looming crisis. NFIB will work with other stakeholders to seek solutions, calling for reforms to the current UI system and urging lawmakers to use state rainy-day funds to cover the cost of the $2.5 billion error so it does not fall on the backs of employers.