Session Laws

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:

SECTION 1. Section three of chapter six hundred and sixty-three of the acts of nineteen hundred and eighty-seven is hereby repealed.

SECTION 2. Section 4 of said chapter 663 is hereby amended by striking out the second sentence, as amended by section 378 of chapter 138 of the acts of 1991.

SECTION 3. The second paragraph of section 30 of chapter 26 of the acts of 1992 is hereby amended by striking out, in line 5, the word "September" and inserting in place thereof the following word:- December.

SECTION 3A. Said chapter 26 is hereby further amended by striking out section 27 and inserting in place thereof the following section:-

Section 27. Notwithstanding the provisions of section fourteen of chapter one hundred and fifty-one A of the General Laws, the experience rate of an employer qualifying therefor under subsection (b) of said section fourteen of said chapter one hundred and fifty-one A shall be the rate which appears in the column designated "D" for calendar year nineteen hundred and ninety-three, and the rate which appears in the column designated "F" for calendar years nineteen hundred and ninety-four, and nineteen hundred and ninety-five, and nineteen hundred and ninety-six.

SECTION 4. Subsection (r) of section 1 of chapter 151A of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out clause (3) and inserting in place thereof the following clause:-

(3) as termination, severance or dismissal pay, or as payment in lieu of dismissal notice, whether or not notice is required, or as payment for vacation allowance during a period of regular employment; provided, that for the purposes of this chapter, "remuneration" shall not include any payments made pursuant to subsections (b) and (c) of section one hundred and eighty-three, and subsection (b) of section one hundred and eighty-four of chapter one hundred and forty-nine, nor shall it include payment for unused vacation or sick leave nor shall this clause affect the application of subsection (d) of section twenty-nine.

SECTION 5. Said chapter 151A is hereby further amended by striking out section 12, as so appearing, and inserting in place thereof the following section:-

Section 12. The commissioner, upon his own motion, or upon application of an employing unit, after investigation, shall determine if an employing unit is an employer within the meaning of section eight, eight A, eight B, or eight C, and if the services performed by any individual for such employer constitute employment within the meaning of this chapter, and shall notify the employing unit of such determination.

Such employing unit may, within ten days after the mailing of notice of such determination, request that the commissioner grant a hearing for the purpose of reconsidering the facts submitted and to consider any additional information. The conduct of such evidentiary hearing shall be in accordance with the procedures prescribed by and pursuant to subsection (b) of section thirty-nine. If the determination arises from a claim filed for benefits, the claimant shall be deemed a party to such hearing. After such hearing, the commissioner shall affirm, modify or revoke this determination and notice of the commissioner's finding shall be mailed to the parties.

An application for review of such finding may be taken to the board of review within thirty days after the mailing of the notice of such finding to the parties. After such notice to the commissioner and to the parties as said board deems necessary, it shall review the action of the commissioner, reconsider the facts submitted and consider any additional evidence presented by the parties and shall affirm such action unless it shall appear that it was made without proper cause, in which case the decision shall be modified or revoked. Nothing in this section shall prevent the commissioner after a decision by the board of review from submitting newly discovered evidence to said board, whereupon it shall order a hearing upon the subject matter after giving due notice to all interested parties.

A determination by the commissioner that the employing unit is an employer or that the services performed by any individual for such employer constitute employment within the meaning of this chapter, where no hearing has been held, a finding after a hearing, or a decision of the board of review shall be conclusive for all purposes of this chapter, and, together with the record thereof, shall be admissible in any subsequent proceedings, involving liability for contributions or eligibility for or the amount of benefits.

The commissioner or any party aggrieved by the decision of the board of review may, within thirty days after notice of such decision has been mailed by said board, bring a complaint in the municipal court of the city of Boston or in the district court in the judicial district wherein said party has its principal place of business or lives or is or was last employed and have the same remedy as provided for in section forty-two and the practices and procedure established for in said section forty-two shall govern.

If, upon a hearing in the municipal or district court, it appears that the complaint is frivolous, immaterial, or intended for delay, the court may award against the appellant double costs.

Nothing in this section shall be construed to prevent the commissioner, after notice to the affected parties, from reconsidering his determination that the employing unit was subject or was not subject to this chapter, when in his judgment it appears that because of newly discovered evidence or for any other reasonable cause the determination should be reconsidered; provided, however, that no such reconsideration shall be made after two years from the date of the original determination. Notice of any such redetermination shall be promptly given to the parties entitled to notice of the original determination in the manner prescribed in this chapter with respect to notice of an original determination. Any party notified of a redetermination may request a hearing within ten days after the mailing of the notice of redetermination. The conduct of such hearing shall be in accordance with the procedures prescribed by this section. Any party aggrieved by the decision on redetermination may appeal such decision. Such appeal shall be in accordance with the procedures prescribed in this section.

SECTION 6. Subsection (a) of section 14 of said chapter 151A is hereby amended by striking out paragraph (4), added by section 9 of chapter 26 of the acts of 1992, and inserting in place thereof the following paragraph:-

(4) "Unemployment insurance taxable wage base", with respect to calendar years beginning on or after January first, nineteen hundred and ninety-two, the term "unemployment insurance taxable wage base" shall mean ten thousand and eight hundred dollars.

SECTION 7. Paragraph (1) of subsection (i) of said section 14 of said chapter 151A, as appearing in section 14 of said chapter 26, is hereby amended by adding the following paragraph:-

Notwithstanding the foregoing provisions of this paragraph, the experience rate of an employer qualifying therefor under subsection (b) shall be the rate which appears in the column designated "B-" for calendar year nineteen hundred and ninety-two, for the applicable employer account reserve percentage, as set forth in the following table:

`tcol(*)=3;c1=1,25,tf;c2=35,3,tf;c3=48,3,tf `tch `tc1=26,21,tuc;temp EXPERIENCE RATE TABLE `t+1 `tc1 Employer Account** Reserve Percentage** `t+1 `tch;end `tc1 Negative Percentage** B- `tc1 14 or more**7.4 13.0 but less than 14.0**7.3 12.0 but less than 13.0**7.1 11.0 but less than 12.0**6.9 10.0 but less than 11.0**6.7 9.0 but less than 10.0**6.5 8.0 but less than 9.0**6.3 7.0 but less than 8.0**6.1 6.0 but less than 7.0**5.9 5.0 but less than 6.0**5.7 4.0 but less than 5.0**5.5 3.0 but less than 4.0**5.3 2.0 but less than 3.0**5.1 1.0 but less than 2.0**4.9 0.0 but less than 1.0**4.7 Positive Percentage** 0.0 but less than 0.5**4.7 0.5 but less than 1.0**4.6 1.0 but less than 1.5**4.5 1.5 but less than 2.0**4.4 2.0 but less than 2.5**4.3 2.5 but less than 3.0**4.2 3.0 but less than 3.5**4.1 3.5 but less than 4.0**4.0 4.0 but less than 4.5**3.9 4.5 but less than 5.0**3.8 5.0 but less than 5.5**3.7 5.5 but less than 6.0**3.5 6.0 but less than 6.5**3.4 6.5 but less than 7.0**3.3 7.0 but less than 7.5**3.2 7.5 but less than 8.0**3.1 8.0 but less than 8.5**3.0 8.5 but less than 9.0**2.9 9.0 but less than 9.5**2.8 9.5 but less than 10.0**2.7 10.0 but less than 10.5**2.6 10.5 but less than 11.0**2.5 11.0 but less than 11.5**2.4 11.5 but less than 12.0**2.3 12.0 but less than 12.5**2.2 12.5 but less than 13.0**2.1 13.0 but less than 13.5**2.0 13.5 but less than 14.0**1.9 14.0 but less than 14.5**1.8 14.5 or more**1.7 `tcol;end

SECTION 8. Subsection (i) of section 29D of said chapter 151A, as appearing in the 1990 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- The weekly worksharing benefit amount payable to an affected individual shall be the product of the regular weekly benefit amount, as defined in section twenty-nine, plus the allowance set forth in subsection (c) of section twenty-nine, multiplied by the percentage reduction in the individual's normal weekly hours of work, rounded to the next lower full dollar amount.

SECTION 8A. Said section 29D of said chapter 151A, as so appearing, is hereby further amended by striking out, in line 157, the words "the first paragraph" and inserting in place thereof the following words:- subsection (a).

SECTION 9. Section 30 of said chapter 151A, as most recently amended by section 24 of chapter 26 of the acts of 1992, is hereby further amended by striking out subsection (c) and inserting in place thereof the following subsection:-

(c) If in the opinion of the commissioner, it is necessary for an unemployed individual to obtain further industrial or vocational training to realize appropriate employment, the total benefits which such individual may receive shall be extended by up to eighteen times the individual's benefit rate, if such individual is attending an industrial or vocational retraining course approved by the commissioner; provided, that such additional benefits shall be paid to the individual only when attending such course and only if such individual has exhausted all rights to regular and extended benefits under this chapter and has no rights to benefits or compensation under this chapter or any other state unemployment compensation law or under any federal law; provided, further, that such extension shall be available only to individuals who have applied to the commissioner for training no later than the fifteenth week of a new or continued claim; provided that the claimant shall begin training in the first available program which is a reasonable distance from the claimant's residence, as determined by the commissioner; provided, further, that the commissioner, in his discretion, may extend the period once for not more than two weeks for any applicant whose initial application is denied; and provided, further, that any benefits paid to an individual under the provisions of this paragraph which would not be chargeable to the account of any particular employer under the provisions of section fourteen shall be charged to the solvency account. An individual eligible to receive a trade readjustment allowance under Chapter 2 of Title II of the Trade Act of 1974, as amended, shall not be eligible to receive additional benefits under this section for each week the individual receives such trade readjustment allowance. An individual eligible to receive emergency unemployment compensation, so-called, under any federal law, shall not be eligible to receive additional benefits under this section for each week the individual receives such compensation.

The department shall provide each claimant with written information regarding eligibility for benefits under this section, and notify claimants that any application for benefits under this section must be submitted no later than the fifteenth week of a new or continued claim.

SECTION 10. Section 1 of chapter 151A of the General Laws, as amended by section 6 of chapter 26 of the acts of 1992, is hereby further amended by adding the following four subsections:-

(z) "Seasonal employer", an employer that, because of climatic conditions or the nature of the product or service, customarily operates all or a functionally distinct occupation within its business only during a regularly recurring period or periods of less than sixteen weeks for all seasonal periods during a calendar year and only includes an employer who voluntarily submits a written application to the commissioner. Such application shall be submitted at least sixty days prior to the beginning of the season.

(aa) "Seasonal employment", services performed for wages for a seasonal employer during the seasonal period in the employer's seasonal operations, after the effective date of a seasonal determination with respect to the seasonal employer.

(bb) "Seasonal employee", an individual who:

(1) has been employed by a seasonal employer in seasonal employment during a regularly recurring period or periods of less than sixteen weeks in a calendar year for all seasonal periods, as determined by the commissioner, and

(2) has been hired for a specific temporary seasonal period as determined by the commissioner; and

(3) has been notified in writing at the time hired, or immediately following the seasonal determination by the department, whichever is later:

(A) that the individual is performing services in seasonal employment for a seasonal employer; and

(B) that the individual's employment is limited to the beginning and ending dates of the employer's seasonal period as determined by the department.

(cc) "Seasonal determination", a determination made by the commissioner, as to the seasonal nature of the employer, the normal seasonal period or periods of the employer, and the seasonal operations of the employer covered by such determination.

SECTION 10A. Said chapter 151A is hereby further amended by adding after section 24 the following section:-

Section 24A. (a) No waiting period shall be allowed and no benefits shall be paid to an individual on the basis of service performed in seasonal employment as defined by subsection (aa) of section one unless the claim is filed within the operating period of the seasonal employment. If the claim is filed outside the operating period of the seasonal employment, benefits may be paid on the basis of nonseasonal wages only.

(b) An employer shall provide the commissioner with such information necessary to make a seasonal determination defined by subsection (cc) of section one. Until the commissioner makes a seasonal determination, no employer or employee may be considered seasonal.

(c) Any employer notified of a seasonal determination may file an appeal regarding a seasonal determination and obtain review of the determination. Such appeal and review shall be in accordance with sections thirty-nine through forty-two, inclusive.

(d) Whenever an employer is determined to be a seasonal employer, the following provisions apply:

(1) The seasonal determination becomes effective the first day of the calendar quarter commencing after the date of the seasonal determination.

(2) The seasonal determination does not affect any benefit rights of seasonal workers with respect to employment before the effective date of the seasonal determination.

(e) If a seasonal employer, after the date of its seasonal determination, operates its business or its seasonal operation during a period or periods of sixteen weeks or more in a calendar year, the employer shall be redetermined by the commissioner to have lost its seasonal status with respect to that business or operation effective at the end of the then current calendar quarter. The redetermination shall be reported in writing to the employer. An employer notified of a redetermination may file an appeal of the redetermination and obtain review of the redetermination in accordance with sections thirty-nine through forty-two, inclusive.

(f) Seasonal employers shall keep account of wages paid to seasonal workers within the seasonal period as determined by the commissioner, and shall report these wages on a special seasonal quarterly report form as prescribed by the commissioner.

SECTION 11. Section 4 of chapter 140D of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out, in line 18, the words "or health" and inserting in place thereof the following words:- health, or involuntary unemployment.

SECTION 12. Section 47 of chapter 175 of the General Laws, as so appearing, is hereby amended by adding the following paragraph:-

Twentieth, To insure debtors, guarantors or purchasers against loss of employment resulting from involuntary unemployment.

SECTION 13. Said chapter 175 is hereby further amended by inserting after section 117C the following section:-

Section 117D. (a) A licensed property and casualty insurance company may, notwithstanding any law or regulation to the contrary, issue a general or blanket policy of insurance to a bank, association, financial or other institution, vendor, or to a parent holding company, or to the trustee, trustees or agent designated by one or more banks, associations, financial or other institutions, or vendors under which debtors, guarantors or purchasers are insured against loss of employment resulting from involuntary unemployment, in an amount with respect to each obligation not to exceed the total of the scheduled payments on the obligation; provided, further, that where the coverage is for less than the full amount of said obligation, the periodic benefit payment shall cover either the full amount of each periodic payment on said obligation or the maximum periodic benefit set forth in said policy until the maximum aggregate benefit of said policy is reached.

(b) The following method of determination of premium rates with respect to credit involuntary unemployment insurance contained in clause (c) is required only for such insurance written in connection with consumer credit transactions which are subject to section twelve G of chapter two hundred and fifty-five, section ten of chapter two hundred and fifty-five B, section fourteen A of chapter two hundred and fifty-five C, or subsection C of section twenty-six of chapter two hundred and fifty-five D, for which an identifiable charge is paid by insured persons.

(c) The following are the procedures for determining the maximum premium rates permitted to be charged any account:

(A) The premium rates charged for credit involuntary unemployment insurance policies shall be reasonable in relation to the benefits provided as indicated by a minimum annual loss ratio of sixty percent. All credit involuntary unemployment insurance premium rates and applicable policies in connection therewith shall be filed for approval with the commissioner of insurance. The commissioner shall approve such rates and policies if such rates are reasonable in relation to benefits provided.

(B) Each insurer writing said involuntary unemployment insurance shall file with the commissioner of insurance annually supporting rate documentation as specified by the commissioner.

(C) After submission of such experience, the commissioner of insurance may review said insurance claims experience and loss ratio data from said credit insurance supplement forms and determine whether the rates in effect comply with the standards set forth in paragraph (A). If the commissioner determines the rates generating such loss ratios do not comply with the standards set forth in said paragraph (A), the commissioner may require any insurer to file rates that will meet such standards or submit reasons acceptable to the commissioner why it should not be required to do so.

SECTION 14. Section 177 of said chapter 175, as so appearing, is hereby amended by inserting after the word "ten", in line 19, the following words:- or of involuntary unemployment insurance issued pursuant to clause (a) of section one hundred and seventeen D.

SECTION 15. Said section 177 of said chapter 175, as so appearing, is hereby further amended by inserting after the word "seventeen C", in line 22, the following words:- or pursuant to section one hundred and seventeen D.

SECTION 16. Section 184 of said chapter 175, as so appearing, is hereby amended by inserting after the word "ten", in line 35, the following words:- or of involuntary unemployment insurance issued pursuant to clause (a) of section one hundred and seventeen D.

SECTION 17. Said section 184 of said chapter 175, as so appearing, is hereby further amended by inserting after the word "seventeen C", in line 38, the following words:- or pursuant to section one hundred and seventeen D.

SECTION 18. Section 12G of chapter 255 of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Except as otherwise provided in section ten of chapter two hundred and fifty-five B, section fourteen A of chapter two hundred and fifty-five C and subsection C of section twenty-six of chapter two hundred and fifty-five D, in the event the charge or any portion thereof for life insurance under a policy issued pursuant to clause (c) of the first paragraph of section one hundred and thirty-three of chapter one hundred and seventy-five or for accident and health insurance under a policy issued pursuant to clause (j) of the first sentence of subdivision (A) of section one hundred and ten of chapter one hundred and seventy-five, or for involuntary unemployment insurance under a policy issued pursuant to clause (a) of section one hundred and seventeen D of chapter one hundred and seventy-five which unless otherwise authorized shall be the only types of insurance authorized in connection with a loan for personal, family or household purposes, is paid by the borrower or borrowers to the creditor, it shall not be deemed to constitute a charge in violation of sections ninety A, one hundred, one hundred and fourteen A, and one hundred and fourteen B of chapter one hundred and forty.

SECTION 19. Said section 12G of said chapter 255, as so appearing, is hereby further amended by inserting after the word "insurance", in line 30, the following words:- or said involuntary unemployment insurance.

SECTION 20. Said section 12G of said chapter 255, as so appearing, is hereby further amended by inserting, in line 34, after the words "section one hundred and seventeen C" the following words:- or section one hundred and seventeen D.

SECTION 21. Said section 12G of said chapter 255, as so appearing, is hereby further amended by adding the following sentence:- No group involuntary unemployment insurance policy shall have a waiting period in excess of thirty-one days.

SECTION 22. Said section 12G of said chapter 255, as so appearing, is hereby further amended by inserting after the word "insurance", in line 54, the following words:- or involuntary unemployment insurance.

SECTION 23. Said section 12G of said chapter 255, as so appearing, is hereby further amended by inserting after the word "insurance", in line 85, the following words:- or involuntary unemployment insurance.

SECTION 24. Said section 12G of said chapter 255, as so appearing, is hereby further amended by striking out, in lines 85 and 86, the words "the following language" and inserting in place thereof the following words:- all or part of the following language, corresponding to the types of insurance offered,.

SECTION 25. Said section 12G of said chapter 255, as so appearing, is hereby further amended by inserting after the word "INSURANCE", in lines 89 and 90, the following words:- AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE.

SECTION 26. Said section 12G of said chapter 255, as so appearing, is hereby further amended by inserting after the seventh paragraph the following paragraph:-

Said involuntary unemployment insurance shall not be offered in connection with a consumer credit transaction subject to this section until the credit decision has been made and communicated to the credit applicant; provided, however, nothing in this sentence shall prohibit making pamphlets available to credit applicants, responding to questions by credit applicants concerning said insurance, or providing credit applications which contain a written offer of insurance to credit applicants.

SECTION 27. The eighth paragraph of said section 12G of said chapter 255, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- This section shall not apply to said life insurance or accident and health insurance in connection with a loan for personal, family or household purposes secured by a first lien on real property; provided, however, this section shall apply to said involuntary unemployment insurance in connection with a loan for personal, family or household purposes secured by a first lien on real property.

SECTION 28. The second paragraph of section 10 of chapter 255B of the General Laws, as so appearing, is hereby amended by inserting after the word "five", in line 22, the following words:- or for involuntary unemployment insurance under a policy issued pursuant to clause (a) of section one hundred and seventeen D of chapter one hundred and seventy-five.

SECTION 29. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by inserting after the word "insurance", in lines 37 and 38, the following words:- or said involuntary unemployment insurance.

SECTION 30. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by inserting after the word "seventeen C", in line 42, the following words:- or section one hundred and seventeen D.

SECTION 31. The fourth paragraph of said section 10 of said chapter 255B, as so appearing, is hereby further amended by adding the following sentence:- No group involuntary unemployment insurance policy shall have a waiting period in excess of thirty-one days.

SECTION 32. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by inserting after the word "insurance", in line 62, the following words:- or involuntary unemployment insurance.

SECTION 33. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by inserting after the word "insurance", in line 94, the following words:- or involuntary unemployment insurance.

SECTION 34. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by striking out, in line 95, the words "the following language" and inserting in place thereof the following words:- all or part of the following language, corresponding to the types of insurance offered,.

SECTION 35. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by inserting after the word "INSURANCE", in line 99, the following words:- AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE.

SECTION 36. Said section 10 of said chapter 255B, as so appearing, is hereby further amended by inserting after the eighth paragraph the following paragraph:-

Said involuntary unemployment insurance shall not be offered in connection with a consumer credit transaction subject to this section until the credit decision has been made and communicated to the credit applicant; provided, however, nothing in this sentence shall prohibit making pamphlets available to credit applicants, responding to questions by credit applicants concerning said insurance, or providing credit applications which contain a written offer of insurance to credit applicants.

SECTION 37. Section 14A of chapter 255C of the General Laws, as so appearing, is hereby amended by inserting after the word "seventy-five", in line 4, the following words:- or for accident and health insurance under a policy issued pursuant to clause (j) of the first sentence of subdivision (A) of section one hundred and ten of chapter one hundred and seventy-five or for involuntary unemployment insurance under a policy issued pursuant to clause (a) of section one hundred and seventeen D of chapter one hundred and seventy-five.

SECTION 38. Said section 14A of said chapter 255C, as so appearing, is hereby further amended by inserting after the second paragraph the following paragraph:-

The agent, broker or his assignee may make a charge for said accident and health insurance or said involuntary unemployment insurance based on a rate which shall not exceed the premium charged by the insurer pursuant to said insurer's schedule or schedules of premium rates currently on file with the commissioner of insurance for said insurance on obligations to said agent, broker or assignee pursuant to the provisions of said section one hundred and seventeen C or section one hundred and seventeen D of said chapter one hundred and seventy-five. Said charge may be collected either as a single premium on scheduled insured balances or periodically on outstanding balance basis, using a monthly term rate that is actuarially consistent with the applicable single premium rate filed with said commissioner, which monthly rate shall be applied each month to the sum of the remaining insured monthly benefits. For interest bearing agreements, other than pre-computed agreements, a uniform monthly rate filed with said commissioner may be applied to the remaining monthly agreement balances of all insured agreements, exclusive of unearned finance charges, which uniform monthly rate shall produce, for the aggregate of all said insured agreements, an aggregate premium that is actuarially consistent with the aggregate premium that would result from using said applicable single premium rates filed with said commissioner applied to the total of the monthly benefits on all said insured loans. All group accident and health insurance policies shall have a waiting period of thirty days and shall have benefits which are not retroactive. No group involuntary unemployment insurance policy shall have a waiting period in excess of thirty-one days.

SECTION 39. Said section 14A of said chapter 255C, as so appearing, is hereby further amended by striking out, in line 22, the word "insurance" and inserting in place thereof the following words:- life insurance or accident and health insurance or involuntary unemployment insurance.

SECTION 40. Said section 14A of said chapter 255C, as so appearing, is hereby further amended by striking out the fifth paragraph and inserting in place thereof the following paragraph:-

Every disclosure statement under the provisions of chapter one hundred and forty D involving said life insurance or accident and health insurance or involuntary unemployment insurance issued pursuant to this section shall contain all or part of the following language, corresponding to the types of insurance offered, printed in ten point boldface type:

YOU CANNOT BE DENIED CREDIT SIMPLY BECAUSE YOU CHOOSE NOT TO BUY CREDIT INSURANCE. CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE ARE NOT REQUIRED TO OBTAIN CREDIT. INSURANCE WILL NOT BE PROVIDED UNLESS YOU SIGN AND AGREE TO PAY THE ADDITIONAL CHARGE.

SECTION 41. Said section 14A of said chapter 255C, as so appearing, is hereby further amended by inserting after the sixth paragraph the following two paragraphs:-

Said involuntary unemployment insurance shall not be offered in connection with a consumer credit transaction subject to this section until the credit decision has been made and communicated to the credit applicant; provided, however, nothing in this sentence shall prohibit making pamphlets available to credit applicants, responding to questions by credit applicants concerning said insurance, or providing credit applications which contain a written offer of insurance to credit applicants.

Each insurer writing said involuntary unemployment insurance shall file with the commissioner all relevant marketing materials that will be distributed to consumers at the time that the application for credit is taken. Said materials will be subject to the review and approval of the commissioner.

SECTION 42. Section 26 of chapter 255D of the General Laws, as so appearing, is hereby amended by inserting after the word "seventy-five", in line 33, the following words:- or for involuntary unemployment insurance under a policy issued pursuant to clause (a) of section one hundred and seventeen D of chapter one hundred and seventy-five.

SECTION 43. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by inserting after the word "insurance", in lines 50 and 51, the following words:- or said involuntary unemployment insurance.

SECTION 44. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by inserting after the word "seventeen C", in line 55, the following words:- or section one hundred and seventeen D.

SECTION 45. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by adding the following sentence:- No group involuntary unemployment insurance policy shall have a waiting period in excess of thirty-one days.

SECTION 46. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by inserting after the word "insurance", in lines 78 and 79, the following words:- or involuntary unemployment insurance.

SECTION 47. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by inserting after the word "insurance", in line 111, the following words:- or involuntary unemployment insurance.

SECTION 48. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by striking out the words "the following language", in lines 111 and 112, and inserting in place thereof the following words:- all or part of the following language, corresponding to the types of insurance offered,.

SECTION 49. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by inserting after the word "INSURANCE", in lines 115 and 116, the following words:- AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE.

SECTION 50. Said section 26 of said chapter 255D, as so appearing, is hereby further amended by inserting after the seventh paragraph the following paragraph:-

Said involuntary unemployment insurance shall not be offered in connection with a consumer credit transaction subject to this section until the credit decision has been made and communicated to the credit applicant; provided, however, nothing in this sentence shall prohibit making pamphlets available to credit applicants, responding to questions by credit applicants concerning said insurance, or providing credit applications which contain a written offer of insurance to credit applicants.

SECTION 51. The general court hereby finds that it is an essential governmental function to assure that the balance in the commonwealth's account in the federal unemployment trust fund is maintained at a level which is sufficient to pay all benefits and that the financing and repayment of any principal amount which may have been or may be advanced to the commonwealth from the federal account of the unemployment trust fund and the financing and funding of the commonwealth's account in the unemployment trust fund to the extent necessary to avoid excessive federal interest and penalty charges by the issuance of revenue bonds or bond anticipation notes by the Massachusetts Industrial Finance Agency as a purpose thereof pursuant to this section is in the public interest, will substantially result in savings of federal interest and penalty costs, will achieve a public purpose of reducing overall costs of providing employment benefits and will thereby foster and promote economic growth, provide employment opportunities for the residents of the commonwealth and assist companies by reducing their overall costs of doing business in the commonwealth.

The following words as used in this section shall have the following meanings unless the context clearly requires otherwise:

"Agency", the Massachusetts Industrial Finance Agency (MIFA) established pursuant to the provisions of section thirty-one of chapter twenty-three A of the General Laws.

"Secretary", the secretary of the executive office of economic affairs.

"Special Revenues", any contributions, receipts or other payments or amounts received or to be received from each employer on account of the surcharge on contributions pursuant to the provisions of this section, and all amounts held in the special contribution unemployment compensation advance fund, including any federal grants or advances available therefor, and interest or other income earned on the investment of moneys in said fund.

(a) The agency may issue revenue bonds in one or more series and in principal amounts necessary or estimated to be necessary as an advance to the unemployment compensation fund or to repay advances made to the commonwealth from the federal unemployment account for the fiscal years ending nineteen hundred and ninety-two through nineteen hundred and ninety-eight, inclusive, and such additional amount of bonds required to fund any debt service and reserve account in accordance with the proceedings authorizing such bonds and the costs of issuance, capitalized interest, if any, and the initial costs and expenses of the administration account, provided that in computing the total amount of bonds which may at any one time be outstanding, the principal amount of any refunding bonds issued to refund bonds shall be excluded. The bonds shall be issued by the agency upon a request filed with the agency by the secretary of economic affairs stating the amount required for the above purposes and the date or dates upon which such funds are needed in order to avoid any federal interest or penalty charges, and such other matters as the secretary and the agency shall determine as appropriate under such request, consistent with carrying out the purposes of this section. Such request can be filed with the agency only after the secretary sends a letter to the governor finding that employers in the commonwealth will benefit from the issuance of revenue bonds and documenting such savings. Such revenue bonds shall mature at such time or times not exceeding ten years from their date of issue. The principal of and interest on any bonds and bond anticipation notes issued pursuant to this section shall be secured by a pledge of the special contribution unemployment compensation advance fund created pursuant to the provisions of paragraph (b) and any special revenues, including the amounts of payments received from the surcharge on contributions established by statute, all as set forth in the proceedings authorizing such bonds or notes pursuant to this section. The bonds shall not be deemed a debt or liability of the commonwealth or a pledge of the faith and credit of the commonwealth or any political subdivision, but shall be payable solely from the pledged revenues.

(b) There is hereby established and created a fund to be known as the special contribution unemployment compensation advance fund. Such fund shall be administered by the agency as a trust fund in accordance with the provisions of this section. The agency may enter into such contracts as may be necessary or useful to the organization, establishment, operation and administration of the fund under all applicable laws of the commonwealth and of the United States and may contract with any person to provide such services to the fund as, in the discretion of the agency, are necessary for the proper operation and administration of said fund. All costs of organizing, establishing and operating the fund, including the costs of personnel and contractual services, shall be a charge upon and paid by the agency from said fund. In addition, all costs of establishing the necessary procedures for billing, payment and collection of the surcharge on the contributions established by statute upon request and with the approval of the secretary shall be a charge upon and paid by the agency from said fund. All costs related to the organization, establishment and operation of the fund and all costs related to the establishment of billing, payment and collection procedures respecting moneys received from employers in payment of the surcharge on contributions required as established by statute, to the extent not payable from said fund, may be paid from other moneys of the commonwealth pursuant to chapter one hundred and fifty-one A of the General Laws when made available thereunder for such purpose. There is hereby established and created within the fund an advance account, a debt service and reserve account and an administration account, which accounts shall be held separate and apart from each other. Additional accounts and subaccounts may be established in the proceedings under which the revenue bonds and bond anticipation notes are authorized.

There shall be deposited in the advance account: (1) the proceeds of revenue bonds issued by the agency for the purpose of deposit therein and use in accordance with this section; (2) federal grants and awards or other federal assistance received by the commonwealth for deposit therein or for the purposes thereof, if any; and (3) interest or other income earned on the investment of moneys in the advance account pending transfer or use pursuant to this section.

(c) To the extent the proceeds of revenue bonds are available therefor and on request of the secretary pursuant to paragraph (b) hereof, the agency shall apply same to repay, not later than September thirtieth, nineteen hundred and ninety-two, and thereafter in accordance with the proceedings authorizing any revenue bonds issued pursuant to this section, the outstanding balance of all or any part of the advances made to the commonwealth from the federal unemployment account under title XII of the Social Security Act, 42 USC Sections 1321 to 1324, inclusive, and may apply same to repay any interest due thereon, and to provide advances to the unemployment compensation fund.

Within the debt service and reserve account there are established the following subaccounts: (1) a reserve subaccount into which shall be deposited the proceeds of revenue bonds issued by the agency for the purpose of deposit therein and use in accordance with this section; and (2) a debt service subaccount into which shall be deposited, in accordance with the proceedings authorizing such bonds, the proceeds of the initial issuance of revenue bonds, capitalized interest to the extent required and payments received from or on behalf of any employer in payment of the surcharge on contributions established in accordance with this section and any other special revenues attributable to the debt service requirement. Moneys in each subaccount created herein may be applied by the agency for debt service on revenue bonds. The agency shall apply amounts in the reserve subaccount to the payment of debt service on bonds whenever amounts on deposit in the debt service subaccount are insufficient therefor. The net proceeds of any refunding bonds shall be deposited in a special subaccount within the debt service and reserve account and shall be applied solely to the retirement or redemption of the bonds to be refunded.

There shall be deposited in the administration account: (1) the proceeds of revenue bonds issued by the agency for the purpose of deposit therein and use in accordance with this section; and (2) any additional moneys received from employers in payment of the surcharge on contributions required pursuant to this section or other special revenues to offset the costs and expenses of administering and operating the fund. Amounts in the administration account may be applied to offset the costs and expenses of establishing, administering and operating the fund.

The fund shall be maintained separate and apart from all other moneys, funds and accounts of the agency. Investment earnings credited to the assets of such fund and to any account and subaccount thereof shall become part of the assets of such fund, account and subaccount. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in such fund, account and subaccount for the fiscal year next succeeding.

(d) Upon the issuance of revenue bonds by the agency and to the extent there are sufficient proceeds available therefor, any advances to the unemployment compensation fund that the secretary deems necessary for the payment of benefits pursuant to the provisions of chapter one hundred and fifty-one A of the General Laws or for the repayment of advances made to the commonwealth from the federal unemployment account may be obtained from the advance account of the special contribution unemployment compensation advance fund. The agency shall, on request filed in writing by the secretary, withdraw from the advance account of the special contribution unemployment compensation advance fund and deposit in the unemployment compensation fund amounts determined by the secretary to be required for the payment of benefits pursuant to said chapter one hundred fifty-one A or for the repayment of advances made to the commonwealth from the federal unemployment account. The secretary shall determine the amount of interest, amortization, reserve and associated costs required for each advance made from the advance account computed in accordance with the requirements of the unemployment compensation fund and the proceedings under which the revenue bonds or bond anticipation notes are authorized and such amounts shall constitute the basis for the surcharge on contributions required pursuant to the provisions of section fourteen of said chapter one hundred and fifty-one A, as established by statute. For purposes of this paragraph the words, "associated costs", shall mean all costs related to the efficient establishment, operation and administration of the special contribution unemployment compensation advance fund and the proceedings under which the bonds and any bond anticipation notes are issued pursuant to this section and the costs of establishing the billing, payment and collection procedures referred to in paragraph (b).

The moneys in the advance account may also be used to pay any costs related to the issuance of revenue bonds by the agency pursuant to this section and to pay any debt service thereon for which amounts on deposit in the debt service and reserve account are insufficient.

Bonds issued pursuant to paragraph (a) shall be special obligations of the agency and shall not be payable from nor charged upon any funds other than the special contribution unemployment compensation advance fund and special revenues pledged to the payment thereof, nor shall the agency be subject to any liability thereon other than from such sources. As part of the contract of the agency with the owners of such revenue bonds, the commonwealth hereby provides that all amounts necessary for the punctual payment of the debt service requirements with respect to such revenue bonds shall be deemed appropriated by the commonwealth, but only from the special contribution unemployment compensation advance fund and any special revenues.

Whether or not any revenue bonds or bond anticipation notes issued by the agency pursuant to this section are of such form and character as to be negotiable instruments under the terms of chapter one hundred and six of the General Laws, such bonds and bond anticipation notes are hereby made negotiable instruments within the meaning of and for all purposes of said chapter one hundred and six, subject only to the provisions of such bonds and bond anticipation notes.

The commonwealth covenants with the purchasers and all subsequent owners and transferees of revenue bonds and bond anticipation notes issued by the agency pursuant to this section in consideration of the acceptance of and payment for such bonds or bond anticipation notes, that such bonds or bond anticipation notes shall be free at all times from taxes levied by any municipality or political subdivision or special district of the commonwealth having taxing powers, and the principal and interest of any bonds and bond anticipation notes issued by the agency under the provisions for this section, their transfer and the income therefrom, including any profit on the sale or transfer thereof, shall at all times be exempt from any taxation by the commonwealth or under its authority, except for estate or succession taxes. The agency is authorized to include this covenant of the commonwealth in any agreement with the owner of any such bonds or bond anticipation notes and in any credit facility or reimbursement agreement with respect thereto.

The commonwealth further covenants with the purchasers and all subsequent owners and transferees of bonds and bond anticipation notes issued by the agency pursuant to this section in consideration of the acceptance of the payment for the bonds and bond anticipation notes, until such bonds and bond anticipation notes, together with the interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceeding on behalf of such owners, are duly met and discharged or unless expressly permitted or otherwise authorized by the term of each contract and agreement made or entered into by or on behalf of the agency with or for the benefit of such owners, that the commonwealth will cause the secretary to impose, charge, raise, levy, collect and apply the pledged surcharge on contributions and other revenues, receipts, funds or moneys pledged for the payment of debt service requirements in each year in which bonds or bond anticipation notes are outstanding and further, that the commonwealth (1) will not limit or alter the duties imposed on the commonwealth, the agency and other officers of the commonwealth by the proceedings authorizing the issuance of bonds or bond anticipation notes with respect to application of pledged special contributions or other revenues, receipts, funds or moneys pledged for the payment of debt service requirements; (2) will not create or cause to be created any lien or charge on such pledged amounts, including the special revenues, other than a lien or pledge created thereon pursuant to this section; provided, however, that nothing in this paragraph shall prevent the agency from issuing evidences of indebtedness (A) which are secured by a pledge or lien which is and shall on the face thereof be expressly subordinate and junior in all respects to every lien and pledge created by or pursuant to this section; or (B) which are secured by a pledge of or lien on moneys or funds derived on or after such date as every pledge or lien thereon created by or pursuant to this section shall be discharged and satisfied; (3) will not in any way impair the rights, exemptions or remedies of such owners; and (4) will not limit, modify, rescind, repeal or otherwise alter the rights or obligations of the appropriate officers of the commonwealth to impose, maintain, charge or collect the surcharge on contributions and other revenues or receipts constituting the special revenues as may be necessary to produce sufficient revenues to fulfill the terms of the proceedings authorizing the issuance of the bonds, including pledged revenue coverage requirements, and provided, further, that nothing herein shall preclude the commonwealth from exercising its power, through a change in law, to limit, modify, rescind, repeal or otherwise alter the character of such pledged surcharge on contributions or special revenues or to substitute like or different sources of contributions, assessments, taxes, fees, charges or other receipts as pledged revenues if, and when adequate provisions shall be made by law for the protection of the holders of outstanding bonds or bond anticipation notes pursuant to the proceedings under which such bonds or notes are issued including changing or altering the method of establishing the surcharge on contributions as authorized by statute. The agency is authorized to include this covenant of the commonwealth, as a contract of the commonwealth, in any agreement with the owner of any such bonds or bond anticipation notes and in any credit facility or reimbursement agreement with respect thereto.

SECTION 51A. The department of employment and training shall utilize the state benefits financing model established by the United States Department of Labor.

SECTION 52. There shall be established a pilot program for standard industrial classification number 7996 to examine and implement changes regarding benefits for seasonal employees, and for certain low-wage workers.

SECTION 53. In addition to the information required to be provided in section fourteen F of chapter one hundred and fifty-one A of the General Laws, the commissioner of the department of employment and training shall include in each quarterly report a five year projection, using applicable schedules, for the private contributory system which indicates for each calendar year estimated contributions, benefit payments, trust fund balance, total estimated interest owed to the federal government as of September thirtieth of the calendar year, interest to be collected by employers through the surcharge imposed under section fourteen J of said chapter one hundred and fifty-one A on an accrued basis, and the aggregate dollar amount of FUTA employer credit reduction that will be applicable in the calendar year. Such quarterly reports shall include the economic assumptions on which the projections are based including the total covered payroll, taxable payroll, covered employment, the effective tax rate on taxable wages for the applicable schedule which shall include the solvency assessment, the taxable wage proportion, the total unemployment rate, and the total insured unemployment rate. The quarterly reports shall be audited by a private, independent organization by December thirty-first of each year.

SECTION 54. The report of the commissioner of the department of employment and training provided each October fifteenth shall include a recommendation regarding the amount of contributions necessary for the succeeding calendar year to achieve a positive trust fund balance, at reasonable increments, by December thirty-first, nineteen hundred and ninety-five and ninety-six and shall include a statement, if applicable, that the total contributions for the succeeding calendar year may exceed one and seventy-five hundredths percent of total wages in such year and any recommendations to prevent the same.

SECTION 55. Sections four and nine of this act shall only be applicable to those claims filed on or after September sixth, nineteen hundred and ninety-two. Section five of this act shall be applicable with respect to determinations issued on or after the effective date of this act. Sections ten and ten A shall be applicable only with respect to new claims field on or after January first, nineteen hundred and ninety-three. Sections eight and eight A of this act shall be applicable with respect to new claims for worksharing benefits filed on or after the effective date of this act. Sections one and two of this act shall take effect as of June thirtieth, nineteen hundred and ninety-two. `tuc ENDORSEMENTS FOLLOW ON PAGE 25 `t+99