A series of witnesses from the banking and credit union sectors described technical banking modernization bills and a proposal (House 3993) to expand or clarify participation in the Massachusetts Share Insurance Corporation (MSIC), the state's full deposit‑insurance mechanism that covers many state‑chartered credit unions.

Mike Hanson, representing MSIC, said the program protects roughly 1,700,000 consumers and that modernizing statute language is necessary to preserve the system's effectiveness: "We insure 1,700,000 consumers in Massachusetts, in every legislative district," he told the committee.

Trade association witnesses including Brad Papalaro of the Masters of Banking Association and Jo (Mass Bank representatives) outlined multiple bills they support or oppose, including H1104 (banking modernization provisions), H1102 (protection of bank names online), H1078 (technical statutory corrections) and S740 (certificate of deposit interest changes). At the same time, the banking association reiterated strong opposition to provisions in S723/H3933 that would expand credit union powers and to proposals to alter longstanding prohibitions on director compensation for credit unions (S821/H1338 discussed in testimony).

Credit union representatives argued that modest director compensation authority and expanded collaboration tools are necessary to allow community credit unions to meet new competitive and technological challenges. The hearing surfaced technical questions about whether certain draft provisions would permit out‑of‑state credit unions to enter the MSIC program without appropriate commissioner oversight; witnesses asked the committee to check statutory cross‑references.

Committee members thanked witnesses for the technical briefing and requested continued engagement with the banking commissioner and stakeholders as the bills are refined. No votes were held at the hearing.