Bill > H5206

This bill provides for a program to finance improvements to the Unemployment Insurance Trust Fund and provide relief to employers in the Commonwealth of Massachusetts. The key provisions are: 1. It authorizes the state to issue up to $7 billion in special obligation bonds to reduce or avoid the need for federal advances, repay prior federal advances, and fund related costs and reserves. These bonds will be secured by a new "Special Contribution Unemployment Compensation Trust Fund" and an associated employer assessment. 2. It establishes a new "Federal Loan Interest Fund" to be used solely for paying interest on federal advances, funded by a new employer excise tax. 3. It temporarily freezes employer experience rates at 2020 levels for 2021 and 2022 to provide relief. 4. It allows the state to pursue necessary federal advances to ensure timely payment of unemployment benefits, without reducing benefit amounts or duration. The bill aims to strengthen the solvency of the state's unemployment insurance system and provide financial relief to employers during the economic impacts of the COVID-19 pandemic.