LYNN — State Sen. Brendan Crighton (D-Lynn) announced updates to a proposed COVID-19 relief bill to assist employers and employees in the Commonwealth during a virtual government affairs meeting Wednesday morning.
The economic development bill, which has not yet been given a name, will affect unemployment insurance (UI) rates, the Paycheck Protection Program (PPP) and UI benefits.
Although the bill has not yet been voted on, the state House and Senate leadership announced an agreement on legislation to enact protections for both employees and employers as economic recovery is continued.
Crighton provided a summary of the provisions agreed to by leadership in both branches, but there is not a specific bill text yet.
“The bill hasn’t been created yet but with the two branches on board and the governor, I believe this is something we can resolve quickly,” Crighton said.
The agreement will provide protections for employers by preventing an increase in the UI rate schedule for 2021 and 2022, providing employers with stability as the state continues with its economic recovery. It will also align the state with the federal tax code to exclude forgiven PPP loans from gross income for small businesses, which will be organized as pass-through entities. The bill will allow for additional state borrowing to ensure the solvency of the UI trust fund.
Employee protections will include a targeted tax relief to unemployed workers whose income falls below 200 percent of the poverty line and waived penalties on missed tax payments on UI benefits received in 2020. Employees will also be provided access to paid leave for time off due to a COVID-19 infection, an ordered quarantine, or to get vaccinated.
Crighton said that he feels as if the proposed contents of this bill are a good balance.
“This comes with key provisions and key things that businesses and individuals were feeling anxiety over in the last year,” he said. “Moving forward, now we can shift more towards economic recovery in some of our planning.”
Crighton also acknowledged the effect that the pandemic has had on the cultural and creative sector. He said they will discuss more of the funding for that as the budget comes out, but noted a commission has been formed to create recommendations on how to address the recovery in that sector.
“Even as we’re starting to reopen, venues are, in many instances, the last to come back. We need to make sure that we have a plan in place,” he said.
Crighton said that he hopes the legislature will play a bigger role in terms of identifying areas of need and making sure the funding hits the ground as quickly as possible
He is hopeful that the bill will be passed in the next week, providing assistance and relief to many residents who have struggled with the changing economy and lifestyle. The pandemic has crumbled the economy, and Crighton hopes that this bill, as well as the Congress-approved federal stimulus checks, will contribute to restoring it.
Allysha Dunnigan can be reached at [email protected].