Session Laws

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. To provide for supplementing certain items in the general appropriation act, the sum set forth in section two are hereby appropriated for the several purposes and subject to the conditions, specified in chapter one hundred and thirty-three of the acts of nineteen hundred and ninety-two, including fund designations in said chapter one hundred and thirty-three and subject to the provisions of law regulating the disbursement of public funds and the conditions pertaining to appropriations in said chapter one hundred and thirty-three for the fiscal year ending June thirtieth, nineteen hundred and ninety-three, the sums so appropriated to be in addition to any amounts available for said purposes.

SECTION 2. `tm;keep=no `tcol=6,B4;c1=1,9,tu,T;c2=1,78,tuc;c3=1,78,tuc;c4=12,53,tfh1;c5=16,49,tu;c6=66,13,tur `t+1 `tch `tc1 `ts Item `t+1 `tch;end `tc3 EXECUTIVE OFFICE OF LABOR. `tc1 9400-1700 `tc4 `tc6 $2,000,000 `tcol;end

SECTION 2A. To provide for certain unanticipated obligations of the commonwealth and to meet certain requirements of law, the sums set forth herein shall be appropriated from the General Fund unless specifically designated otherwise and shall be for the several purposes and subject to the conditions specified herein and subject to the provisions of law regulating the disbursement of public funds and the conditions pertaining to appropriations in chapter one hundred and thirty-three of the acts of nineteen hundred and ninety-two, for the fiscal year ending June thirtieth, nineteen hundred and ninety-three. `tm;keep=no `tcol=6,B4;c1=1,9,tu,T;c2=1,78,tuc;c3=1,78,tuc;c4=12,53,tfh1;c5=16,49,tu;c6=66,13,tur `tc3 EXECUTIVE OFFICE OF ECONOMIC AFFAIRS. `tc1 9000-0200 `tc4 For the purpose of the export finance fund established in section thirty-four A of chapter twenty-three A of the General Laws `tc6 $2,750,000 `tc1 9000-0210 `tc4 For the purpose of the export finance program established in section thirty-four B of chapter twenty-three A of the General Laws `tc6 $250,000 `tc2 Department of Employment and Training. `tc1 9081-0400 `tc4 For the purpose of supporting the Massachusetts youth service and conservation corps `tc6 $500,000 `tc2 Small Business Development Center. `tc1 9000-1850 `tc4 For a capital access reserve to provide loan guaranties to small business `tc6 $5,000,000 `tc2 Bay State Skills Corporation. `tc1 9081-7044 `tc4 For the support and creation of manufacturing networks `tc6 $1,000,000 `tcol;end

SECTION 3. Section 2 of chapter 23A of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by adding the following paragraph:-

(g) Developing a rapid economic response team, herein referred to as the team. The team shall consist of the director of MOBD or his designee, the director of the industrial service program or his designee and the division coordinators as designated by the director of MOBD. The purpose of the team shall be to aggressively market the commonwealth to attract prospective business and to intervene in situations where there exists a possibility of job loss. The team shall create and disseminate promotional information concerning available economic assistance programs offered through any state, quasi-public, public, nonprofit corporation or other entity as deemed necessary. The director of MOBD shall also be empowered to adopt rules and regulations regarding expenditures including travel expenses, lines of communication and other activities consistent with these provisions.

SECTION 4. Said chapter 23A of the General Laws is hereby further amended by inserting after section 3, as so appearing, the following eight sections:-

Section 3A. As used in sections three A to three H, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:

"Affiliate", any business which directly or indirectly controls or is controlled by or is under direct or indirect common control with another business, including, but without limitation, any business with whom a business is merged or consolidated, or which purchases all or substantially all of the assets of a business.

"Business", a private business corporation, partnership, firm, unincorporated association or other entity engaging or proposing to engage in economic activity within the commonwealth, and any affiliate thereof, which is subject to taxation under chapter sixty-two or chapter sixty-three.

"Business incubator", a facility which: (i) provides small units of space, shared support services, or financing and management assistance to new and established businesses; or (ii) is created and operated for the principal purpose of addressing conditions of unemployment and economic distress by encouraging the creation of new businesses and improving their ability to survive and grow.

"Certified project", a project that has been approved by the Economic Assistance Coordinating Council for participation in the economic development incentive program pursuant to the provisions of section three F.

"Control", the power to direct the management and policies of a business or a facility thereof, directly or indirectly, through the exercise of voting rights, by contract, or otherwise.

"Controlling business", a business which controls a business or a facility thereof.

"Distress factor", a fraction, the numerator of which is the sum of (1) the city or town's unemployment rate for the most recent three years divided by the commonwealth's unemployment rate for the same period and (2) the commonwealth's per capita personal income divided by the city or town's per capita personal income, and the denominator of which is two.

"Economic assistance coordinating council" or "EACC", the council established pursuant to section three B.

"Economic development incentive program" or "EDIP", a program designed to promote increased business development and expansion in economic target areas of the commonwealth, to be administered by the EACC.

"Economic opportunity area" or "EOA", an area of the commonwealth, located wholly within an economic target area, which is designated by the EACC pursuant to section three E as an economic opportunity area.

"Economic target area" or "ETA", an area of the commonwealth designated as such by the EACC pursuant to section three D.

"Facility", the physical location, in real property owned or leased by a business, of a commercial or industrial activity, division or component controlled by said business, or any real estate project which involves the construction or renovation of real property to serve such purpose, or any combination of the foregoing, at which are employed, or are projected to be employed, permanent full-time employees of the controlling business.

"Municipal application", an application submitted by a municipality to the EACC pursuant to section three D or three E for designation of one or more areas as an ETA or an EOA; provided, however, that: (i) the application is submitted in a timely manner, in such form and with such information as is prescribed by the EACC, and supported by independently verifiable information; (ii) the area proposed for designation in the application is located, in whole or in part, within each municipality participating in said application; (iii) each municipality within which said proposed area is located participates in the application for designation; (iv) that said application is properly authorized in advance of submission; (v) in the case of an application submitted by more than one municipality, all requirements applicable thereto, including without limitation the requirements associated with proper authorization thereof, shall, apply equally to each municipality participating in said application; and (vi) a single application may request designation of both an ETA and EOA.

"Municipality", a city or town in the commonwealth or, in a case in which two or more cities or towns agree to act jointly for some purpose hereunder then, collectively, all cities and towns participating in such a collaborative agreement.

"Permanent full-time employee", an individual who: (i) is described under the definition of "full-time employee" set forth in section thirty-one C of chapter sixty-three; (ii) at the inception the employment relationship described in clause (i) does not have a termination date which is either a date certain or determined with reference to the completion of some specified scope of work; and (iii) receives employee benefits at least equal to those provided to other full-time employees of the controlling business. The term "increase in the number of permanent full-time employees of the controlling business employed by and at the project" shall be determined with reference to this definition and to the definition of "increase in the number of full-time employees employed by the corporation" set forth in section thirty-one C of chapter sixty-three.

"Poverty rate", the poverty rate, as defined by the United States Bureau of the Census, using the most recent census data available, for purposes of identifying poverty areas.

"Project", a facility which in its entirety and as of the project proposal date is located or to be located within an EOA; provided, however, that in the case of a facility which as of the project proposal date is already located in an EOA, the term "project" shall refer only to a facility for which there is proposed an expansion of the number of permanent full-time employees at such facility by the controlling business, to occur subsequent to the project proposal date, which expansion shall represent: (i) an increase in the number of permanent full-time employees employed by the controlling business within the commonwealth; and (ii) not a replacement or relocation of permanent full-time employees employed by the controlling business at any other facility located within the commonwealth; and provided, further, that in the case of a facility to be located within an EOA after the project proposal date, the term "project" shall refer only to a facility which is: (i) the first facility of the controlling business to be located within the commonwealth; or (ii) a new facility of such business and not a replacement or relocation of an existing facility of such controlling business located within the commonwealth or expansion of an existing facility of the controlling business which results in an increase in permanent full-time employees.

"Project EOA", the EOA within which a project is located or to be located.

"Project ETA", the ETA within which a project is located or to be located, determined with reference to the project EOA.

"Project proposal", a proposal submitted by a controlling business to the EACC pursuant to section three F for designation of a project as a certified project; provided, however, that: (i) the proposal is submitted in a timely manner, in such form and with such information as is prescribed by the EACC, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the controlling business; (ii) the proposal includes specific targets by year for the subsequent five calendar year period relative to the projected increase in the number of permanent full-time employees of the controlling business to be employed by and at the project from among residents of the project ETA; provided, further that in the case of a project which as of the project proposal date is already located in the project EOA, such projected increase shall not be less than twenty-five percent over the subsequent five year period; and (iii) in the case of a project which is a new facility within the meaning of clause (ii) of the definition of project, such proposal shall include, in addition, the number of permanent full-time employees employed by the controlling business at other facilities located in the commonwealth.

"Project proposal date", the date on which a project proposal is received by the EACC; provided, however, that such project proposal had been properly approved in advance of such receipt by the municipality which contains the project EOA.

"Real estate project", real property relative to which, at a specified date subsequent to the project proposal date, there shall be initiated construction or renovation activity which, when completed, will result in an increase in the assessed value of said real property of at least one hundred percent over the assessed value of such real property as of the project proposal date; provided, however, that in the case of a real estate facility which is a business incubator facility and which is designated to be a certified project pursuant to section three F, each commercial or industrial facility which executes a binding lease for space in such incubator facility subsequent to the date at which the construction or renovation activity begins shall be eligible for designation in its own right as a certified project pursuant to section three F.

Section 3B. There shall be an economic assistance coordinating council, hereinafter referred to as EACC, established within MOBD. The EACC shall consist of: the secretary of economic affairs, or his designee, who shall serve as co-chairperson; the secretary of communities and development, or his designee, who shall serve as co-chairperson; the secretary of labor, or his designee; the executive director of MOBD or his designee; the director of the industrial service program, or his designee; the director of the Bay State Center for Applied Technology, or his designee; and three members to be appointed by the governor, one of whom shall be from the western region of the commonwealth, one of whom shall be from the central region of the commonwealth, and one of whom shall be from the eastern region of the commonwealth, and all of whom shall have expertise in issues pertaining to training, business relocation, and inner city and rural redevelopment, and who are knowledgeable in public policy and international and state economic and industrial trends. Each member appointed by the governor shall serve at the pleasure of the governor. The EACC shall adopt bylaws to govern its affairs.

Section 3C. (1) The EACC shall administer the economic development incentive program and, in so doing, shall be empowered to exercise the following powers and duties:

(a) promulgate rules and regulations and prescribe procedures to effectuate the purposes of sections three A to three H, inclusive;

(b) review applications from municipalities for the designation of areas as economic target areas and economic opportunity areas and to make such designations;

(c) certify projects for participation in the economic development incentive program and establish regulations for evaluating the proposals of said projects;

(d) assist municipalities in obtaining state and federal resources and assistance for economic opportunity areas and for certified projects within economic opportunity areas;

(e) provide appropriate coordination with other state programs, agencies, authorities, and public instrumentalities to enable activity within economic opportunity areas to be more effectively promoted by the commonwealth;

(f) monitor the implementation and operation of the economic development incentive program; and

(g) conduct a continual evaluation of economic opportunity areas and the projects certified for participation in the economic development incentive program.

(2) There shall be appointed within MOBD a director of economic assistance who shall be responsible for administering the recommendations of the EACC. The secretary of the executive office of communities and development shall designate a staff person who shall serve as a liaison to the EACC and who shall meet with the director of economic assistance on a regular basis.

(3) The EACC shall annually submit to the governor, the senate and the house ways and means committees, and the joint committee on commerce and labor, within ninety days after the end of its fiscal year, a complete and detailed report setting forth its operations and accomplishments, including a listing of all projects certified under the EDIP.

(4) Two years after the first meeting of the EACC, and every two years thereafter, the EACC shall prepare a report which evaluates the relative effectiveness of the EDIP, and shall make recommendations to the secretary of economic affairs as necessary or advisable to improve such effectiveness. Each such report shall be made available to the senate and house ways and means committees and to the joint committee on commerce and labor.

Section 3D. The EACC may from time to time designate one or more areas of the commonwealth as ETAs, and take any and all actions necessary or appropriate thereto, upon compliance with the following:

(a) receipt of a municipal application requesting such designation and representing therein that the municipality, based on its own independent investigation, has determined that the area proposed for designation and comprised of three or more contiguous census tracts or one or more contiguous municipalities, in their entirety and either;

(i) has an unemployment rate that exceeds the statewide average by at least twenty-five percent; or

(ii) satisfies at least one of the following criteria:

(A) if the municipality is located in a metropolitan area as defined by the EACC, then at least fifty-one percent of the households in the area proposed for designation have household incomes that are below eighty percent of the median income for households in the metropolitan area in which said municipality is located;

(B) if the municipality is not located in a metropolitan area as defined by the EACC, then at least fifty-one percent of the households in the area proposed for the designation have household incomes that are below eighty percent of the median income for households (i) in the commonwealth, or (ii) in such applicable non-metropolitan area category as the EACC may from time to time establish or employ;

(C) has a poverty rate which is at least twenty percent higher than the average poverty rate for the commonwealth;

(D) if the municipality has experienced a plant closing or permanent layoffs, or military base closing resulting in job loss of two thousand or more within the four years prior to designation as an ETA;

(E) is located in a community or labor market area which has a distress factor greater than one and thirty-three one hundredths, as defined in section three A;

(F) if within the municipality there is an area owned by a state agency or authority authorized and established under the laws of the commonwealth which exceeds fifty acres and such land has, within the past ten years, been used to manufacture or repair maritime vessels and is zoned for development or industrial use which the municipality would like to designate as an ETA to develop and return to the tax rolls, and is not being developed or used by such agency or authority; or

(G) or the designated area has a commercial vacancy rate of twenty percent or more.

(b) approval of the municipal application by the EACC; provided, however, that the EACC shall find, based on the information submitted in support of the municipal application and such additional investigation as the EACC shall make, and incorporate in its minutes, that the area or areas proposed for designation in said application comport with the definition of an ETA as set forth in, clauses (i) to (iii), inclusive, of paragraph (a); provided, further, that such decision shall be effective as specified by the EACC; provided, further, that the statistical criteria employed by the EACC in making such designation shall be the most recent data available as of the date of such decision; provided, further, that the EACC shall be under no obligation to revoke or modify any designation because of changes in statistical data which are published subsequent to a designation decision; and, provided further, that in the event the statistical categories incorporated by reference as aforesaid are subsequently materially altered or superseded by the publishers thereof, the EACC is authorized and directed to develop or employ new categories of statistical criteria which most nearly comport with the aforesaid referenced criteria; provided, that said new categories of statistical criteria shall become effective when approved by the secretary of economic affairs.

Section 3E. The EACC may from time to time designate one or more areas of an ETA as an EOA, and take any and all actions necessary or appropriate thereto, upon compliance with the following:

(1) receipt of a municipal application requesting such designation for a specified period of years, which shall be not less than five years nor more than twenty years, and representing that the municipality, based on its own independent investigation, has determined that the area proposed for designation:

(a) is wholly within an area designated as an ETA pursuant to section three D;

(b) conforms to the definition of a "blighted open area", "decadent area", or "substandard area" as set forth in section one of chapter one hundred and twenty-one A or has experienced a plant closing or permanent layoff resulting in a job loss of two thousand or more within the four years prior to designation as an EOA; and

(c) satisfies such additional mandatory or permissive criteria as may be prescribed from time to time by the EACC; and

(2) receipt with the municipal application of the following documents:

(a) a detailed map of the area proposed for designation, which clearly delineates and identifies such area and which indicates with particularity existing streets, highways, waterways, natural boundaries and other physical features;

(b) a statement describing the economic development goals of the municipality for the area proposed for designation for the five year period subsequent to the date on which the application is submitted;

(c) a statement which describes the manner and extent to which the municipality shall provide for an increase in the efficiency of the delivery of local services within the area proposed for designation;

(d) a plan, if any, to link the municipality's choice of banking institutions to the performance of such institutions in complying with the requirements of the community reinvestment act;

(e) a proposal which identifies an individual who shall be authorized to review and approve project proposals for and on behalf of the municipality and the standards and procedures to be employed thereby; and

(f) in the case of a municipal application submitted, in whole or in part, by a municipality with a population in excess of fifty thousand people according to the most recent United States census, an economic development plan submitted by said municipality which contains the following elements:

(i) a proposal which provides for streamlined licensing procedures for certified projects within the area proposed for designation;

(ii) a proposal which provides for the provision of adequate infrastructure support, including transportation access, water and sewer hook-ups, lighting, and other utilities, to and for certified projects within the area proposed for designation;

(iii) a statement which describes the municipality's proposals to secure access to publicly or privately sponsored training programs to be made available to employees of certified projects, or others who reside in the ETA which contains the area proposed for designation; and

(iv) a plan by which the municipality shall increase the level of involvement by private persons and community development organizations in the economic revitalization of the area proposed for designation, which may include commitments from private persons to provide jobs and job training to residents and employees who work, or who will work, for certified projects in the area proposed for designation; and

(g) such additional documentation or information as may be prescribed by the EACC; and

(3) receipt with the municipal application of a binding written offer from the municipality, subject only to acceptance by the EACC through designation of the area proposed therefor, in the municipal application as an EOA, to provide to certified projects within the project EOA and pursuant to section fifty-nine of chapter forty either tax increment financing or a special tax assessment as follows:

(a) for the purposes of the provision of tax increment financing, said binding written offer shall contain a tax increment financing plan adopted in accordance with the provisions of, section fifty-nine of chapter forty; provided, however, that the tax incremental financing zone proposed in such plan shall in addition satisfy the requirements set forth in paragraph (1) of this section;

(b) for the purposes of the provision of a special tax assessment, said binding written offer shall set forth the following assessment schedule for each parcel of real property in and on which is located, and which is otherwise a part of, a certified project in the project EOA:

(i) in the first year, an assessment of zero percent of the actual assessed valuation of the parcel; provided, that such assessment shall be granted for the year designated in the binding written offer;

(ii) in the second year, an assessment of up to twenty-five percent of the actual assessed valuation of the parcel;

(iii) in the third year, an assessment of up to fifty percent of the actual assessed valuation of the parcel;

(iv) in the fourth year, an assessment of up to seventy-five percent of the actual assessed valuation of the parcel;

(v) in subsequent years, assessment of up to one hundred percent of the actual assessed valuation of the parcel.

For the purposes of this clause the term "municipality's fiscal year" shall refer to a period of three hundred and sixty-five days beginning, in the first instance, with the, calendar year in which the assessed property is purchased or acquired or the calendar year in which the assessed property is designated as an EOA, whichever is last to occur; provided, further, that no such written offer from a municipality shall be considered to be binding as aforesaid unless and until it is authorized.

(4) approval of the municipal application by the EACC, provided that the EACC shall find, based on the information submitted in support of the municipal application and such additional investigation as the EACC shall make, and incorporate in its minutes, that:

(a) the area or areas proposed for designation in said application comport with the definition of an EOA as set forth in clauses (a) to (c), inclusive, of paragraph (1); provided, however, that such decision shall be effective as specified by the EACC; provided, further, that the statistical criteria employed by the EACC in making its decision hereunder shall be the most recent data available as of the date of such decision; provided, further, that the EACC shall be under no obligation to withdraw or rescind any such designations because of changes in said statistical data which are published subsequent to such decision; provided, further, that in the event the statistical categories incorporated by reference in said clauses (a) to (c), inclusive, of said paragraph (1) are subsequently materially altered or superseded by the publishers thereof, the EACC is authorized and directed to develop or employ new categories of statistical criteria which most nearly comport with those incorporated by reference as aforesaid; and provided, further, that said new categories of statistical criteria shall become effective when approved by the secretary of economic affairs;

(b) the documents required pursuant to clauses (a) to (g), inclusive, of paragraph (2) are final and complete and otherwise satisfactory;

(c) the binding offer of the municipality complies with the requirements of paragraph (3); and

(d) the request for designation as set forth in the municipal application, in its entirety and including all documents and materials submitted therewith, will if approved, have a reasonable probability of inducing businesses to locate or expand within the area proposed for designation and thereby increase the prospects of achieving economic stability and reducing chronic unemployment in said area; provided, however, that (i) in evaluating requests for designation pursuant to this clause the EACC may, subject to such criteria as it shall prescribe, consider and rank the relative merits of municipal applications, ascribing to each a total score which reflects the considered judgment of the EACC as to the prospects and degree to which said applications, if approved, will further the public purposes set forth in this clause; (ii) the EACC shall, if and as directed by the secretary of economic affairs, establish an application process pursuant to which municipal applications are reviewed in a competitive fashion; (iii) the EACC shall work with interested municipalities to assist such municipalities to understand the purpose and requirements of the application process and how to best exploit the economic development potential of an affirmative designation decision and, further, to minimize the administrative burden associated with such application process; and (iv) the EACC shall, through regulations or otherwise, tailor its program specifications to maximize the extent to which the commonwealth's economic opportunity area program can benefit from similar programs sponsored by the federal government and if necessary or appropriate, file legislation with the general court which seeks amendments designed to serve such purpose.

An EOA shall retain its designation for at least five years and not more than twenty years from the date it is so designated, as determined by the EACC, unless such designation is revoked prior to the expiration of the specified period; provided, however, that the EACC shall not specify a duration in excess of that requested in the municipal application. The designation of an EOA may be revoked only by the EACC, and only upon the following grounds: (a) upon the petition of the municipality which requested the designation which petition satisfies the authorization requirements for a municipal application, and which petition shall be granted as a matter of course; or (b) if the EACC determines, based on its own investigation, that plans and commitments incorporated with the municipal application for such designation are materially at variance with the conduct of the municipality subsequent to the designation and such variance is found to frustrate the public purpose which such designation was intended to advance. Any such revocation shall only be applied prospectively to deny certification to any projects located or to be located in such EOA and not certified prior to such revocation and shall not apply to, nor revoke any benefits due to or which may become due to, any certified project already in existence in said EOA, including but without limitation any benefits included in any plans and commitments incorporated with the municipal application for such designation; provided, however, that in no event shall a certified project receive any benefits arising from its status as a certified project for a period of longer than that specified by the EACC in its certification designation, including any renewals thereof, or twenty years, whichever period is of shorter duration. The EACC shall review the designation of each EOA at least once every two years. No designation of an area as an EOA may be renewed or extended except pursuant to the provisions of paragraphs (1) to (4), inclusive. No renewal shall be granted for a period to exceed, when combined with the durations of all prior periods of designation, twenty years.

(5) notwithstanding any provision of sections three to three H, inclusive, the EACC shall not designate nor shall there exist at any one time more than twenty Economic Opportunity Areas.

Section 3F. (1) The EACC may from time to time designate one or more projects as certified projects, and take any and all actions necessary or appropriate thereto, upon compliance with the following:

(a) receipt of a project proposal therefor requesting such designation from the controlling business;

(b) receipt of a written approval of said project proposal by the municipality which contains the project EOA, said municipality having found, based on the information submitted with said project proposal and such additional investigation as the municipality shall make, and incorporate in a formal written determination, that:

(i) the project proposal complies with the definition of a project proposal set forth in section three A;

(ii) the project as described in the proposal and all documentation submitted therewith:

(A) is consistent with and can reasonably be expected to benefit significantly from the municipality's plans relative to the project EOA, as those plans are described in paragraph (2) of section three E; and

(B) together with all other projects previously certified and located in the same project EOA, will not overburden the municipality's supporting resources, including but without limitation those set forth in clause (f) of said paragraph (2) of section three E;

(iii) the project proposal includes a workable plan, with precise goals and objectives, by which the controlling business proposes to realize the increased piece employment objectives advanced for the project in the proposal from among residents of the project ETA and, in so doing, to employ aggressive affirmative action goals, objectives and identification and recruitment techniques;

(iv) the project proposal contains documentation regarding an agreement, if any, between the controlling business and area banking institutions by which said controlling business agrees to establish one or more accounts in said banks and said banks agree to commit a specified percentage of the funds deposited in said accounts for loans made thereby to businesses located within the project EOA pursuant to the Massachusetts capital access program established pursuant to section fifty-seven of chapter twenty-three A; and

(v) the project as described in the proposal, together with the municipal resources committed thereto, will, if certified, have a reasonable chance of increasing employment opportunities for residents of the project ETA as advanced in said proposal and will thereby reduce conditions of blight, economic depression and widespread reliance on public assistance; and

(c) receipt with such written approval by the municipality of a request for a designation of the project as a certified project for a specified number of years, which shall be not less than five years nor more than: (i) twenty years or (ii) the number of years remaining on the duration of the designation of the project EOA, whichever is less; and

(d) the following findings are made by the EACC, based on the project proposal, documents submitted therewith, the municipality's written approval decision, and such additional investigation as the EACC shall make, and incorporate in its minutes, that:

(i) the project proposal complies with the definition of a project proposal set forth in section three A, with all other applicable statutory requirements, and with such other criteria that EACC may prescribe from time to time; and

(ii) the project as described in the proposal, and as further described in the written determination of the municipality made pursuant to clause (b) will, if certified, have a reasonable chance of increasing employment opportunities for residents of the project ETA as advanced in said proposal and will thereby reduce conditions of blight, economic depression and widespread reliance on public assistance; and

(2) A certified project shall retain its certification for the period specified by the EACC in its certification decision; provided, however, that such specified period shall be not less than five years from the date of certification nor more than: (i) twenty years from such date; or (ii) the number of years remaining on the duration of designation of the project EOA, including any renewals thereof; or (iii) the number of years requested by the municipality approving the project proposal, whichever is less, unless such certification is revoked prior to the expiration of said specified period. The certification of a project may be revoked only by the EACC, and only upon (a) the petition of the municipality which approved the project proposal, which petition satisfies the authorization requirements for a municipal application, or the petition of the secretary of economic affairs; and (b) the independent investigation and determination of the EACC that representations made by the controlling business in its project proposal are materially at variance with the conduct of the controlling business subsequent to the certification and such variance is found to frustrate the public purposes which such certification was intended to advance; provided, however, that the EACC shall review such certified project at least once every two years; provided, further, that where the actual number of permanent full-time employees employed by the controlling business at the project from among residents of the project ETA is less than fifty percent of the number of such permanent full-time employees projected in the project proposal, then this shall be deemed a material variance for the purposes of a revocation determination. Any such revocation shall only be applied prospectively and shall not apply to, nor revoke any benefits due to the project which relate to years prior to the year in which the revocation determination is made, unless the EACC determines that the controlling business of said project made a material misrepresentation in its project proposal, in which case both the commonwealth and the municipality shall have causes of action against the controlling business for the value of any economic benefits received subsequent to the date on which such material misrepresentation was made.

(3) The EACC shall evaluate and either grant or deny any project proposal within ninety days of its project proposal date and failure to do so by the EACC will result in approval of such project for a term of five years.

Section 3G. Any municipality which contains an economic opportunity area is hereby authorized to make application to the foreign trade zone board established by an act of Congress, Public Law 397, 19 USC 81(a) to 81(u), inclusive, for a grant to said city or town for the privilege of establishing, operating and maintaining a foreign trade zone within its economic opportunity area.

Section 3H. Each executive office in the commonwealth shall appoint a senior staff member who shall be responsible for coordinating the efforts of the commonwealth to provide one-stop licensing for all business and developments in order to expedite the process of obtaining commonwealth licenses, permits, certificates, approvals, registrations, charters and other requirements of law. Said senior staff members shall meet at least once a month with the director of economic assistance of MOBD and shall meet with each other on a regular basis. The commissioner of administration and finance shall work with said senior staff members to develop a recommended format for an application form and procedure which may be used by all executive offices wherever possible.

SECTION 5. Said chapter 23A is hereby further amended by inserting after section 10, as so appearing, the following section:-

Section 10A. The MOBD shall establish a Buy Massachusetts Program. In implementing said program the MOBD shall analyze and compile a list of products or goods that companies and businesses in the commonwealth need or that are produced for them. The raw materials listed shall include agricultural items produced in the commonwealth and parts of special services provided by said companies. Special attention shall be given to those items or products that such companies currently purchase outside the commonwealth or from foreign countries and especially an item or product needed or required for the first time. MOBD shall make inquiries as to the needs of locally-based companies and businesses and determine if other commonwealth based companies and business entities need the item or product, or are capable of making or producing the item or product with additional capital or retooling. MOBD shall utilize said lists for the purpose of bringing together the needs, as so determined, with the business entities utilizing said products or items and more than one entity may be serviced by one or more local suppliers or buyers, the purpose of said program being to connect local companies' needs with products made or services provided by other local companies.

Said department may expend such funds as may be appropriated therefor, and may accept federal funds, or private gifts and grants to assist it in carrying out the purposes as set forth in this section.

SECTION 6. Section 28A of said chapter 23A, as so appearing, is hereby amended by adding the following paragraph:-

Notwithstanding any other provision of this section, the greater Fall River area, which shall include the city of Fall River and the towns of Swansea, Westport and Somerset, shall be authorized to make application to the federal foreign trade zone board.

SECTION 7. Subsection (b) of section 30 of said chapter 23A, as so appearing, is hereby amended by inserting after the definition of "Loan" the following two definitions:-

"Massachusetts Export Finance Fund", the fund established by section thirty-four A.

"Massachusetts export finance program" or "export finance program", the program established by section thirty-four B.

SECTION 7A. Said subsection (b) of said section 30 of said chapter 23A, as so appearing, is hereby further amended by inserting after the definition of "Revenues" the following definition:-

"Small business", any business with its principal place of business within the commonwealth that has either average gross sales of less than twelve million dollars per year for the most recent two fiscal years, or has less than two hundred and fifty full-time employees, except that a business primarily engaged in wholesaling shall be considered eligible if its average gross annual sales for the most recent two fiscal years does not exceed twenty-four million dollars per year.

SECTION 8. Said chapter 23A is hereby further amended by inserting after section 34, as so appearing, the following two sections:-

Section 34A. (a) There is hereby established within the agency the Massachusetts Export Finance Fund, referred to in this section and section thirty-four B as the fund. Said fund shall receive state, federal, and private monies and the return from investment generated thereby, and allocate the same for the purposes of the export finance program. Said fund shall consist of a separate account or accounts segregated from other agency funds within the Industrial Mortgage Insurance Fund, to which shall be credited any state appropriation or funding from any other source, public or private, which may be made available to the fund.

Notwithstanding the provisions of any general or special law to the contrary, the agency shall utilize the fund, and be empowered to so utilize the fund, as provided in section thirty-four B.

(b) The liabilities or obligations of the agency for any insurance, co-insurance or loan guarantees made pursuant to the Massachusetts export finance program, shall not extend beyond the funds which are allocated and deposited in the fund and shall not constitute a debt or pledge of the faith and credit of the commonwealth or of any subdivision thereof.

(c) Those monies which are deposited in the fund, pending allocation as provided in this section, may be invested in securities issued by the Treasury of the United States government or the government of the commonwealth. Returns from such investments shall be deposited in the fund and shall be used to support loan guarantees, insurance, and co-insurance as provided in section thirty-four B and to defray the administrative and operational costs of the Massachusetts export finance program.

(d) The monies in the fund shall be paid out by the treasurer of the agency in furtherance of the purposes of this section and section thirty-four B.

Section 34B. (a) There is hereby established within the agency the Massachusetts export finance program to expand employment and income opportunities through increased exports of Massachusetts goods and services by providing actual and potential Massachusetts exporters, including in particular small and medium-sized exporters, with insurance, co-insurance, loan guarantees, and information and technical assistance on export opportunities and exporting techniques in support of increased export transactions.

(b) The agency shall utilize the fund, other than as permitted in subsection (c) of section thirty-four A, solely to insure, co-insure and guarantee loans related to export transactions, and to make extensions of the same, made pursuant to the provisions of this section and detailed regulations adopted by the board; provided, however, that the agency shall make no reservation, encumbrance, or disbursement from the fund unless and until said regulations have been reviewed and approved in writing by the secretary of economic affairs. Any determination to insure, co-insure and guarantee loans, or to make an extension of the same pursuant to this section, shall be made by the board.

(c) The agency may charge fees to defray the operating expenses of the export finance program. The amount of the fees shall be determined by the board.

(d) Loan guarantees and insured export transactions shall be secured by no less than a thirty percent reserve in the fund. The board may elect to require a higher reserve. The regulations adopted by the board as provided in subsection (b) shall include provisions regarding the terms and limits for loan guarantees to be secured by the fund; provided, however, that in no instance shall a loan guarantee secured by the fund exceed either of the following: (1) seventy percent of the required financing or (2) five hundred thousand dollars.

(e) The agency shall make no affirmative determination to insure, co-insure or guarantee any loan or any extension of the same to be secured by the fund unless and until the board has made the following findings of fact, to be incorporated in the formal records of its proceedings:

(1) that borrowers have a minimum equity interest in the business as determined by the board;

(2) that the proposed loan guarantees, insurance and coinsurance will be extended to companies that export goods and services produced primarily in Massachusetts or to companies which export goods and services and which have their principal place of business in Massachusetts;

(3) there exists adequate collateral or security agreements to ensure the full repayment of loan guarantees and solvency of any insurance or co-insurance program extended under this chapter and to assist in evaluating the program;

(4) that, to the extent possible, said loan guarantee or insurance or coinsurance is such that a definite benefit to the economy of the commonwealth may reasonably be expected therefrom; and

(5) that financing assistance secured by the fund shall only be extended in one or both of the following circumstances:

(i) as part of a governmental match which may be required to secure participation of Massachusetts firms in federal, state, or private financing programs;

(ii) if adequate financing assistance is not readily available from public or private sources in a timely manner.

(f) In administering the fund and the export finance program, the agency shall coordinate to the maximum extent possible with the programs and goals of the United States Export-Import Bank, the International Trade Administration of the United States Department of Commerce, the Foreign Credit Insurance Association, the Massachusetts office of international trade and investment, and other private and public programs, designed to provide export assistance and export-related financing; and assemble, publish, and disseminate information to Massachusetts exporters on export opportunities, techniques of exporting, sources of public and private export assistance, and sources of export-related financing.

(g) No company shall be eligible for a loan guarantee under this section until it complies with the terms of this section.

(h) The agency shall, prior to making any loan guarantee pursuant to this section comply with the following requirements: (1) develop or distribute written materials and other information it believes appropriate to familiarize any company interested in exporting with how to enter the export market; (2) to distribute said materials and information, the agency shall present a series of seminars throughout the commonwealth; and, (3) a loan guarantee may only be offered to a company which has attended at least one seminar within one year prior to its application.

(i) Nothing contained in this section shall be deemed to be a pledge of the credit of the commonwealth.

SECTION 9. Said chapter 23A is hereby further amended by adding the following three sections:-

Section 56. (a) There shall be within MOBD a Massachusetts quasi-public corporation planning council, hereinafter referred to as the council, which shall not be subject to the supervision or control of the MOBD, except as provided in this section.

The purpose of said council shall be to ensure regular communication and coordination between the quasi-public corporations as to their economic development projects, programs and plans. Said council shall consist of the chief executive officers or their designees from the Bay State Skills Corporation, Massachusetts Community Development Finance Corporation, Industrial Services Program, Massachusetts Centers of Excellence, the Massachusetts Corporation for Educational Telecommunication, Massachusetts Government Land Bank, Massachusetts Industrial Finance Agency, Massachusetts Technology Development Corporation, Massachusetts Micro Electronics Center, and the Thrift Fund for Economic Development. The council shall meet from time to time but no less than monthly.

The director of the office of MOBD shall appoint personnel necessary to coordinate the activities of the council.

The council is hereby authorized to review and determine if the present regional offices operated by any corporation subject to this section would appropriately serve the goals of the council in establishing and implementing a more coordinated economic development policy; provided, however, that the council shall maintain no more than eight regional offices through the expansion of said offices already in operation or by establishing any new offices. Each office shall be responsible for the implementation of the coordinated plans programs and projects in each region of the state.

(b) In order to fully utilize all appropriate measures to provide risk capital to small businesses in the commonwealth the Massachusetts Community Development Finance Corporation, the Massachusetts Industrial Services Program, the Massachusetts Government Land Bank, the Massachusetts Industrial Finance Agency, and the Massachusetts Technology Development Corporation are hereby directed to establish one or more small business investment corporations (sbic) or special small business investment corporations (ssbic) as provided by the Small Businesses Equity Enhancement Act of 1992, Title iv of U.S. Public Law 102-366.

Section 57. (a) For the purposes of this section and section fifty-eight the following terms shall, unless the context clearly requires otherwise, have the following meaning:

"Agency", the Massachusetts office of business development.

"Borrower", any business that receives a loan with respect to which a reserve is created in accordance with this section.

"Business", the carrying on of any business activity for profits, whether as corporation, partnership, sole proprietorship or otherwise.

"Financial institution", any bank, trust company, savings bank, savings and loan association or cooperative bank chartered by the commonwealth or any national banking association, federal savings and loan association or federal savings bank; provided, however, that the financial institution has its principal office, located in the commonwealth.

"Loan", without limitation, a sale and lease back, a financial lease, a conditional sale or any other arrangement that is in the nature of a loan.

"Participating financial institution", any financial institution participating in the program established by this section.

"Program", the small business capital access program established by this section.

"Small business", a business that had total annual sales in its most recently completed fiscal year of less than five million dollars and which has a principal place of business within the commonwealth; provided, however, that no loan or loans to a borrower in an aggregate principal amount in excess of five hundred thousand dollars and no loan for passive real estate purposes shall be considered to be a loan to a small business borrower.

(b) Each time a participating financial institution originates a loan to a small business borrower after the effective date of this section, said institution shall set aside an amount specified by the agency or its agent, referred to in paragraph (a) of section fifty-eight, which amount shall not be less than one and one-half percent nor more than three and one-half percent of the principal amount of the loan, into a loss reserve which said institution shall maintain applicable to all such loans by said institution to small business borrowers pursuant to the program.

(c) At the time of the making of such loan to a small business borrower, the participating financial institution shall obtain from said borrower an amount equal to the reserve contribution made by the participating financial institution with respect to such loan as provided in paragraph (b) and shall set aside such amount into said loss reserve maintained by the participating financial institution applicable to all such loans by said participating financial institution to borrowers pursuant to the program. The participating financial institution may obtain such amount as payment from the borrower or may advance the amount to the borrower as part of the loan.

(d) After such loan to a small business borrower has been made, the participating financial institution shall certify to the agency or its agent, in such fashion and with such supporting information as the agency or its agent shall prescribe, that it has made such loan and has set aside its contribution and the equal contribution of the borrower into said loss reserve.

(e) The agency or its agent shall, after such certification as provided in paragraph (d) transfer to the participating financial institution an amount equal to the total of the contributions of the participating financial institution and the borrower or such additional amount up to one hundred and fifty percent of such contributions as determined by the agency or its agent, and the participating financial institution shall set aside such amount so received into said loss reserve.

(f) In the event the participating financial institution suffers a loss on any such loan, it may in its discretion draw upon the funds in such loss reserve to repay the loan in whole or in part.

(g) All amounts set aside by the participating financial institution into said loss reserve shall be deposited by it in an account at said institution. All earnings or interest on said loss reserve account shall be added to the principal of said loss reserve account and held as additional loss reserve; provided, however, that the agency or its agent may require at any time and from time to time that a portion or all of the accrued earnings or interest remaining in said loss reserve account be paid to the agency or its agent to be used to defray the costs of administering the program.

(h) Any loan made under this program shall be used predominantly for business activities within the commonwealth.

(i) Any financial institution desiring to become a participating financial institution shall execute an agreement in such form as the agency or its agent may prescribe, which agreement shall contain the terms and provisions set forth in paragraphs (a) to (h), inclusive, and such other terms and provisions as the agency or its agent may deem necessary or appropriate.

Section 58. The agency is hereby authorized to do the following:

(a) to enter into a contract with the Massachusetts business development corporation, hereinafter referred to as MBDC, established under the provisions of chapter six hundred and seventy-one of the acts of nineteen hundred and fifty-three, to act as the agent of the agency with respect to the administration of the program. Said contract: (1) shall be for a period of two years and shall be renewed for additional two year periods subject to the requirements of paragraph (b) of this section; and (2) shall provide for compensation and reimbursement of the agent on terms the agency may deem appropriate for the administration of said program for any expenses incurred by the MBDC in connection with its services as agent and for such other services as the agency may deem appropriate including, but not limited to the use of the premises, personnel and personal property of the MBDC.

(b) conduct an annual review and assessment of the performance of the MBDC in its capacity as agent for the agency to determine whether the contract referenced in paragraph (a) should be renewed for an additional two year period. Said review shall be based on whether the MBDC has satisfactorily met the terms and conditions of the contract.

Upon an initial determination by the agency that the MBDC's performance is unsatisfactory, the MBDC shall be given the opportunity to take corrective action. If, upon a final review of the MBDC's performance the agency continues to conclude that the MBDC's performance is unsatisfactory, it shall submit to the joint committee on commerce and labor its recommendation to terminate the contract with MBDC and transfer the contract to another agency.

(c) to make and publish rules and regulations respecting the implementation of the small business capital access program established by this section and any other rules and regulations necessary to fulfill the purposes of this section; and

(d) to do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this section.

SECTION 10. Paragraph (a) of section 11 of chapter 23D of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by inserting after the first sentence the following sentence:- The trust shall further be empowered to provide assistance to firms in specific mature industries for the purpose of technological investment or upgrading of management operations in order for the business to maintain future economic stability.

SECTION 11. Paragraph (a) of section 13 of said chapter 23D, as so appearing, is hereby amended by inserting after clause (1) the following clause:-

(1A) the business within a specific mature industry requires assistance for the purpose of technological investment or upgrading of management operations in order for the business to maintain future economic stability;.

SECTION 12. Chapter 40 of the General Laws is hereby amended by adding the following section:-

Section 59. Notwithstanding any general or special law to the contrary, any city or town by vote of its town meeting, town council, or city council with the approval of the mayor where required by law, on its own behalf or in conjunction with one or more cities or towns, and pursuant to regulations issued by the secretary of the executive office of communities and development, may adopt and prosecute a tax increment financing hereinafter referred to as TIF plan, and do any and all things necessary thereto; provided, however, that the TIF plan:

(i) designates or more areas of such city or town as a TIF zone; provided, however, that each area so designated is wholly within an area designated by the secretary of economic affairs, pursuant to regulations adopted by the economic assistance coordinating council established pursuant to section three B of chapter twenty-three A, as presenting exceptional opportunities for increased economic development; provided, further, that in the case of a TIF plan adopted by more than one city or town, the areas designated as TIF zones shall be contiguous areas of such cities or towns;

(ii) describes in detail all construction and construction-related activity, public and private, contemplated for such TIF zone as of the date of adoption of the TIF plan; provided, however, that in the case of public construction as aforesaid, the TIF plan shall include a detailed projection of the costs thereof and a betterment schedule for the defrayal of such costs; provided, further, that the TIF plan shall provide that no costs of such public constructions shall be recovered through betterments or special assessments imposed on any party which has not executed an agreement in accordance with the provisions of paragraph (v); and provided, further, that in the case of private construction as aforesaid, the TIF plan shall include the types of industrial and commercial developments which are projected to occur within such TIF zone, with documentary evidence of the level of commitment therefor, including but not limited to architectural plans and specifications as required by said regulations;

(iii) authorizes tax increment exemptions from property taxes, in accordance with the provisions of clause Fifty-first of section five of chapter fifty-nine, for a specified term not to exceed twenty years, for any parcel of real property which is located in the TIF zone and for which an agreement has been executed with the owner thereof in accordance with the provisions of paragraph (v); provided, however, that the TIF plan shall specify the level of such exemptions expressed as an exemption percentage, not to exceed one hundred percent to be used in calculating the exemption under clause Fifty-first of said section five of said chapter fifty-nine; provided, further, that such exemptions shall be calculated for each said parcel as provided in said clause Fifty-first using an adjustment factor for each fiscal year of the specified term equal to the total assessed value of all parcels of commercial and industrial real estate in the municipality in which the TIF zone is located, divided the total assessed value of all parcels of commercial and industrial real estate in such city or town in the fiscal year immediately prior to the fiscal year in which the parcel first became eligible for such exemption pursuant to the provisions of this paragraph.

(iv) establishes a maximum percentage of the costs of any public construction, referenced in paragraph (ii) and initiated subsequent to the adoption of the TIF plan, that can be recovered through betterments or special assessments against any parcel of real property eligible for tax increment exemptions from property taxes pursuant to paragraph (iii) during the period of such parcel's eligibility for exemption from annual property taxes pursuant to clause fifty-first of section five of chapter fifty-nine, notwithstanding the provisions of chapter eighty or any other general or special law authorizing the imposition of betterments or special assessments;

(v) includes executed agreements between such city or town and each owner of a parcel of real property which is located in such TIF zone; provided, however, that each such agreement shall include: (1) all material representations of the parties which served as the basis for the descriptions contained in the TIF plan in accordance with the provisions of paragraph (ii); (2) a detailed recitation of the tax increment exemptions and the maximum percentage of the cost of public improvements that can be recovered through betterments or special assessments regarding such parcel of real property pursuant to paragraphs (iii) and (iv); (3) a detailed recitation of all other benefits and responsibilities inuring to and assumed by the parties to such agreement; and (4) a provision that such agreement shall be binding upon subsequent owners of such parcel of real property;

(vi) delegates to one board, agency or officer of the city or town the authority to execute agreements in accordance with the provisions of paragraph (v); and

(vii) is certified as an approved TIF plan by the economic assistance coordinating council established by section three B of chapter twenty-three A pursuant to regulations adopted by said council; provided, however, that the economic assistance coordinating council shall find, based on the information submitted in support of the TIF plan by the city or town and such additional investigation as the economic assistance coordinating council shall make, and incorporate in its minutes, that the plan is consistent with the requirements of this section and will further the public purpose of encouraging increased industrial and commercial activity in the commonwealth; provided, further, that a city or town may at any time revoke its designation of a TIF zone and, as a consequence of such revocation, shall immediately cease the execution of any additional agreements pursuant to paragraph (v); provided, further, such revocation shall not affect agreements relative to property tax exemptions and limitations on betterments and special assessments pursuant to said paragraph (v) which were executed prior thereto; and provided, further, that the board, agency or officer of the city or town authorized pursuant to paragraph (vi) to execute agreements shall forward to the board of assessors a copy of each such agreement, together with a list of the parcels included therein.

SECTION 13. Section 5 of chapter 40I of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out clause (p) and inserting in place thereof the following two clauses:-

(p) to establish a technology extension service program providing technical information service and technical assistance to existing Massachusetts companies, especially manufacturers, in the following areas: (1) technology investment and modernization; (2) market identification and technology management; (3) materials usage and planning; (4) business management and maximization of the firms productivity; and (5) strategies for work force development and quality. The Bay State Center for Applied Technology located within the Bay State Skills Corporation shall conduct outreach to designated industrial sectors to select and encourage companies to seek the assistance of the technology extension service program. Said outreach shall be coordinated with the Massachusetts Small Business Development Center or local development offices.

The technology extension service program shall be partially funded through a fee for service program, the share of the cost to private sector firms shall be determined by the following formula: (i) firms in Phase I of said program, a thirty percent share of the total costs; and (ii) firms in Phase II of said program, a fifty percent share of the total costs. For the purposes of this clause, the term "Phase I" shall mean the first three visits to the technology extension service by a private sector firm and the term "Phase II" shall mean the fourth and subsequent visits to the technology extension service by a private sector firm;

(q) to do any and all things necessary or convenient to carry out the purposes of this chapter.

SECTION 14. Section 5 of chapter 59 of the General Laws, as so appearing, is hereby amended by adding the following clause:-

Fifty-first, the value of a parcel of real property which is included within an executed agreement under the provisions of paragraph (v) of section fifty-nine of chapter forty, together with all personal property situated on such parcel; provided, however, that taxes on property eligible for exemption under this clause shall be assessed only on that portion of the value of the property that is not exempt pursuant to the provisions of section fifty-nine of chapter forty; provided, further, that such exemption shall be for a term no longer than the period specified therefor in such agreement; provided, further, that the amount of the exemption under this clause for any parcel shall be the exemption percentage adopted under paragraph (iii) of said section fifty-nine of said chapter forty multiplied by the amount by which the parcel's value exceeds the product of its assessed value for the last fiscal year before it became eligible for exemption under this clause multiplied by the adjustment factor determined in accordance with said section fifty-nine of said chapter forty. Taxes on property eligible for exemption under this clause shall be assessed only on that portion of the value of the property that is not exempt hereunder.

SECTION 15. Paragraph (a) of Part B of section 3 of chapter 62 of the General Laws, as so appearing, is hereby amended by adding the following subparagraph:-

(10) An amount equal to ten percent of the cost of renovating any abandoned building within an economic opportunity area as determined by the economic assistance coordinating council established by section three B of chapter twenty-three A.

SECTION 16. Section 6 of said chapter 62, as so appearing, is hereby amended by adding the following subsection:-

(g)(1) A credit shall be allowed against the tax liability imposed by this chapter, up to an amount equal to fifty percent of such liability in any taxable year, an amount equal to five percent of the cost of any property that (i) would qualify for the credit allowed by section thirty-one A of chapter sixty-three if the property were purchased by a manufacturing corporation or a business corporation engaged primarily in research and development and (ii) is used exclusively in a certified project within the economic opportunity area as defined in section three A of chapter twenty-three A. If such property is disposed of or ceases to be in qualified use within the meaning of said section thirty-one A or if such property ceases to be used exclusively in such a certified project within such an economic opportunity area before the end of its useful life, the recapture provisions of subsection (e) of said section thirty-one A shall apply and an amount determined thereunder shall be added to the tax imposed by this chapter.

(2) Any taxpayer entitled to a credit under this subsection for any taxable year may carry over and apply to the tax for any one or more of the next succeeding ten taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax for any taxable year beginning more than five years after the certified project or economic opportunity area ceases to qualify as such under the provisions of chapter twenty-three A.

(3) For purposes of this subsection, the commissioner of revenue may aggregate the activities of all entities, whether or not incorporated, under common control as defined in subsection (f) of section forty-one of the Code.

(4) The commissioner of revenue shall promulgate such rules and regulations necessary to implement the provisions of this subsection. Such rules and regulations may provide for the adjustment of prices and elimination of transactions between related taxpayers to ensure that all amounts upon which the credit is based reasonably reflect fair market value. In addition, such rules and regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.

SECTION 17. Section 31A of chapter 63 of the General Laws, as so appearing, is hereby amended by adding the following five paragraphs:-

(i) A manufacturing corporation, or a business corporation engaged primarily in research and development, which has been deemed to be such under section thirty-eight C or forty-two B, or a corporation primarily engaged in agriculture or commercial fishing, shall be allowed a credit as hereinafter provided against its excise due under this chapter. The amount of such credit shall be three percent of the cost or other basis for federal income tax purposes of qualifying tangible property acquired, constructed, reconstructed, or erected during the taxable year, after deduction therefrom of any federally authorized tax credit taken with respect to such property. Qualifying property shall be tangible personal property and other tangible property including buildings and structural components of buildings acquired by purchase, as defined under section one hundred and seventy-nine (d) of the Federal Internal Revenue Code as amended and in effect for the taxable year is not taxable under chapter sixty A; used by the corporation in the commonwealth; situated in the commonwealth on the last day of the taxable year; and which (1) is depreciable under section one hundred and sixty-seven of said Code and has a useful life of four years or more, or (2) is considered recovery property under section one hundred and sixty-eight of said Code.

(j) A corporation renting or leasing tangible property otherwise qualifying for the credit under this section from a regional business development corporation or authority authorized under chapter forty D or a regional business development corporation organized as a non-profit corporation under any special act shall be deemed to have acquired such property by purchase as defined under Sec. 179(d) of the Federal Internal Revenue Code, as amended and in effect for the taxable year, for the purposes of this section and shall be eligible for the credit under paragraph (a). The amount of such credit shall be three percent of the value of qualifying property leased and placed in qualified use during the taxable year. Such value shall be the cost of such property to the regional business development corporation and the books and records of such corporation shall for the purposes of this section be open to the commissioner for inspection. For the purposes of this section a termination or cessation of such rental or lease for any reason other than a transfer of ownership of such property to the lessee shall be considered a disposition of such property. No further credit shall be allowed to such lessee or any successor corporation, as the case may be, on account of such property in the event of successive rentals or lease, replacement, alteration or change of the property rented or leased; transfer of ownership of such property to the lessee; or the merger, consolidation or other reorganization of such lessee.

(k) The provisions of paragraphs (a) and (f) shall not be available for the taxable years ending on or after December thirty-first, nineteen hundred and ninety-three but shall be available for the taxable years beginning on or after January first, nineteen hundred and ninety-six.

(l) The provisions of paragraphs (i) and (j) shall be available only for the taxable years ending on or after December thirty-first, nineteen hundred and ninety-three, but shall not be available for taxable years beginning on or after January first, nineteen hundred and ninety-six; provided, however, that a corporation shall not be eligible for said credit for more than three taxable years.

(m) For the purposes of this section, the provisions of paragraphs (b), (c), (d), (e), (g), and (h) shall apply to paragraphs (i) and (j) as appropriate.

SECTION 18. Said chapter 63 is hereby further amended by inserting after section 38M, as so appearing, the following two sections:-

Section 38N. (a) A corporation subject to tax under this chapter which participates in a certified project as defined in section three A of chapter twenty-three A, may take a credit against the excise imposed by this chapter in an amount equal to five percent of the cost of any property that qualifies for the credit allowed by section thirty-one A if such property is used exclusively in a certified project within the economic opportunity area as defined in said section three A of said chapter twenty-three A. The credit allowed under this section may be taken by an eligible corporation; provided, however, that neither credit allowed by said section thirty-one A or by section thirty-one H is taken by such corporation. For purposes of this paragraph, the corporation need not be a manufacturing corporation or a business corporation engaged primarily in research and development if such property is disposed of or ceases to be in qualified use within the meaning of section thirty-one A or if such property ceases to be used exclusively in a certified project within an economic opportunity area before the end of its useful life the recapture provisions of subsection (e) of section thirty-one A shall apply.

(b) The credit allowed by this section shall be subject to the provision of section thirty-two C.

(c) In the case of a corporation that is subject to a minimum excise under any provision of this chapter, the amount of the credit allowed by this section shall not reduce the excise to an amount less than such minimum excise.

(d) Any corporation entitled to a credit under this section for any taxable year may carry over and apply to its excise for any one or more of the next succeeding ten taxable years, the portion, as reduced from year to year, of those credits which were not allowed by paragraph (c) or which exceed the excise for the taxable year; provided, however, that in no event shall the corporation apply the credit to its excise for any taxable year beginning more than five years after the certified project or economic opportunity area ceases to qualify as such under the provisions of chapter twenty-three A.

(e) In the case of corporations filing a combined return of income under section thirty-two B, a credit generated by an individual member corporation under the provisions of this section shall first be applied against the separately determined excise attributable to that member, subject to the limitations of paragraph (c). A member corporation with an excess credit may apply its excess credit against the excise of another group member, to the extent that such other member corporation can use additional credits under the limitation of said paragraph (c). Unused, unexpired credits generated by member corporations shall be carried over from year to year by the individual corporation that generated the credit. Nothing in this section shall alter the provisions of paragraph (h) of section thirty-one A.

(f) For purposes of this section, the commissioner of revenue may aggregate the activities of all corporations that are members of a controlled group of corporations and, in addition, may aggregate the activities of all entities, whether or not incorporated, under common control as defined in subsection (f) of section forty-one of the Code.

(g) The commissioner of revenue shall promulgate such rules and regulations as are necessary to implement the provisions of this section. Such rules and regulations may provide the adjustment of intercompany prices and elimination of intercompany transactions to ensure that all amounts upon which the credit is based reasonably reflect fair market value. In addition, such rules and regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.

Section 38 O. A corporation whose excise under this chapter is based on net income may, in determining such net income, deduct an amount equal to ten percent of the cost of renovating any abandoned building located within an economic opportunity area as determined by the economic assistance coordinating council established by section three B of chapter twenty-three A.

SECTION 19. The General Laws are hereby amended by inserting after chapter 78 the following chapter:- `tuc CHAPTER 78A. YOUTH CONSERVATION AND SERVICE CORPS.

Section 1. As used in this chapter the following words shall have the following meanings, unless the context clearly requires otherwise:

"Commission", the Massachusetts community service commission established by executive order No. 314 dated August ninth, nineteen hundred and ninety-one.

"Corps", youth conservation and service corps, established by section two.

"Members", unless otherwise defined by the Commission, individuals sixteen to twenty-five years of age who are participating in the corps.

"Sponsor", an organization authorized to operate a corps program under this chapter.

Section 2. (a) There is hereby established within the commission a youth conservation and service corps. The commission shall administer the corps in cooperation with the Massachusetts department of employment and training and the Massachusetts executive office of environmental affairs.

(b) The corps shall offer full-time, productive employment that provides measurable and visible community benefits in a natural resource or human service setting that gives participants a mix of work experience, basic and life skills, education, training, and support services.

(c) It shall be a main objective of the corps sponsors to assist members during and after their participation in the corps in preparing for and obtaining gainful employment or additional job training or education.

(d) It shall be a main objective of the corps sponsors to work with regional employment boards to obtain commitments from interested private sector employers to participate in the training and work preparation of corps members and to hire members who have successfully completed the program.

Section 3. The corps may include the following activities:

(a) conservation, rehabilitation, and the improvement of wildlife habitat, parks, and recreational areas;

(b) urban and rural revitalization, historical and cultural site preservation, and reforestation of both urban and rural areas;

(c) fish culture, wildlife habitat maintenance and improvement, and other fishery assistance;

(d) road and trail maintenance and improvement;

(e) wetlands protection and pollution control;

(f) insect, disease, rodent, and fire prevention and control;

(g) improvement of abandoned railroad beds and rights-of-way;

(h) energy conservation projects, renewable resource enhancement, and recovery of biomass;

(i) reclamation and improvement of strip-mined land;

(j) forestry, nursery, and cultural operations;

(k) making public facilities accessible to individuals with disabilities;

(l) housing construction, rehabilitation, renovation, weatherization and repair for the purpose of providing: affordable housing for low-income and homeless individuals, older adults and senior citizens; day care facilities; recreational center facilities; and other community facilities;

(m) energy conservation;

(n) activities that focus on drug and alcohol abuse education, prevention and treatment; and

(o) other related, conservation, educational, social, health, and environmental projects that provide substantial community benefits.

Section 4. In addition to other requirements established by the commission, a proposal to provide corps services under this chapter shall demonstrate that it will:

(a) provide corps members with marketable skills commensurate with their age and experience;

(b) enhance basic skills development, self-confidence and self-esteem, leadership skills, and life skills of participants;

(c) provide long-term benefits to the public;

(d) be labor intensive and involve youth operating in crews;

(e) instill the importance of a strong work ethic; and

(f) enhance corps members' ability to earn a living or continue their education, and contribute significantly to their communities.

Section 5. (a) In making funding decisions under this chapter the commission shall give priority to qualified projects that have a substantial commitment from private sector employers to hire corps members who have successfully completed the program.

(b) The regional employment boards shall work cooperatively with the sponsor of a project to recruit and obtain commitments from private sector employers to hire corps members who have successfully completed the program.

Section 6. In addition to other requirements established by the commission, the corps shall:

(a) require members without a high school diploma to enroll in a program to attain a general equivalency diploma;

(b) require sponsors to provide pre-service and in-service training, along with general education that increases members academic, vocational, and social skills;

(c) comply with federal, state, and local health and safety standards;

(d) have the endorsement of the regional employment board chair representing the geographic area where the members serve;

(e) require sponsors to provide career and educational guidance and training;

(f) demonstrate that special-needs populations have been offered the opportunity to enroll in corps programs;

(g) not allow corps funds to be used to supplant or replace paid employees; and

(h) take steps to insure that no member or member applicant is discriminated against because of the individual's race, color, religious creed, ancestry, sex, national origin, sexual preference, or disability.

Section 7. The commission shall annually file with clerks of the senate and the house of representatives on or before January first, a report of the corps activities. Said report shall include, but not be limited to:

(1) a financial statement summarizing its expenditures and available funds;

(2) the number of projects and proposed corps placements submitted to it and the number approved;

(3) the number of members entering the corps and the number completing or substantially completing the project;

(4) a narrative of approved projects and a summary of the conservation work completed; and

(5) the race, age, sex, and geographic area of the corps members.

SECTION 20. Clause (a) of section 1 of chapter 151A of the General Laws, as most recently amended by section 6 of chapter 26 of the acts of 1992, is hereby further amended by striking out, in lines 1 and 2, the words "January first" and inserting in place thereof the following words:- October third.

SECTION 21. Paragraph (3) of subsection (r) of said section 1 of said chapter 151A, as amended by section 4 of chapter 118 of the acts of 1992, is hereby further 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, however, 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, or the payment of such termination, severance or dismissal pay, or payment in lieu of dismissal notice, made to the employee in a lump sum in connection with a plant closing, nor shall this clause affect the application of subsection (d) of section twenty-nine.

For the purposes of this clause, "plant closing" shall mean a permanent cessation or reduction of business at a facility of at least fifty employees which results or will result as determined by the commissioner in the permanent separation of at least fifty percent of the employees of a facility or facilities.

SECTION 22. Section 2 of chapter 167F of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out, in line 301, the word "and".

SECTION 22A. Said section 2 of said chapter 167F, as so appearing, is hereby further amended by striking out, in lines 312 and 313, the word "commonwealth." and inserting in place thereof the following words:- commonwealth; and.

30. To participate in the small business capital access program created under section fifty-seven of chapter twenty-three A and to make the loans and create the reserve and take any and all other actions as may be necessary or appropriate for participating in such program.

SECTION 23. Section 1 of chapter 212 of the acts of 1975, as amended by section 1 of chapter 130 of the acts of 1987, is hereby further amended by adding the following paragraph:-

It is also the purpose of the government land bank to aid businesses which develop emerging technologies and technology facilities but face obstacles in obtaining private financing. The General Court finds that the development and support of emerging technology industries creates substantial employment opportunities and is vital to the commonwealth's economic competitiveness and future prosperity.

SECTION 24. Clause (j) of section 4 of said chapter 212, as most recently amended by section 7 of chapter 130 of the acts of 1987, is hereby further amended by inserting after the word "bank", in line 6, the following words:- and then outstanding.

SECTION 25. Clause (k) of said section 4 of said chapter 212, as most recently amended by section 61 of chapter 287 of the acts of 1989, is hereby further amended by striking out subclause (3), and inserting in place thereof the following subclause:-

(3) lands declared decadent, substandard or blighted open areas by the bank, which lands shall include, but not be limited to areas that are of such a character that they are in essence detrimental to the safety, health, morals, welfare or sound growth of the community in which they are situated because fluctuations in the real estate market, a substantial change in business and economic conditions or practices or the high-risk nature of newly emerging businesses and technologies have rendered the sale or efficient use of existing, new or renovated buildings or facilities thereon impractical without the aids provided herein, or because of an abandonment or cessation of a previous use thereon or the abandonment or cessation of work on improvements, facilities or buildings begun thereon but not feasible to complete or sell without the aids provided herein, or because of the inability of certain businesses and emerging technologies to receive private financing due to the high-risk nature of these businesses and technologies or due to changes in business and economic conditions, or because of any combination of foregoing reasons or other conditions not being remedied by the ordinary operations of private enterprise, hereinafter called blighted lands; and.

SECTION 26. Section 8A of said chapter 212, as most recently amended by section 141 of chapter 164 of the acts of 1988, is hereby further amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

To provide for the acquisition, holding, protection, maintenance or use of lands as provided by this act, and to provide for making loans, loan guarantees and grants as provided by this act, to provide for personnel and administrative costs of the bank, and to refinance notes issued as provided in this act, the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth to an amount not exceeding, in the aggregate, the sum of fifty million dollars;.

SECTION 27. Said chapter 212 is hereby further amended by inserting after section 8B, inserted by section 11 of chapter 130 of the acts of 1987, the following two sections:-

Section 8C. (a) There is hereby created and placed within the bank the Emerging Technology Fund, referred to in this section and section eight D as the Fund, to which shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the bank, any pension funds, federal grants or loans or private investment capital which may properly be applied in furtherance of the objectives of the Fund, any proceeds from the sale of qualified investments secured or held by the Fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the advisory committee created pursuant to section eight D and pursuant to the rules and regulations adopted by the bank, secured or held by the Fund, and any other monies which may be available to the bank for the purposes of the Fund from any other source or sources. The bank shall hold the Fund in an account or accounts separate from other funds or accounts.

(b) The bank shall invest and reinvest the Fund and the income thereof, except as hereinafter provided, only as follows:

(1) in the making of qualified investments, as the same shall be defined by the advisory committee created pursuant to section eight D and pursuant to the rules and regulations adopted by said advisory committee;

(2) in defraying the ordinary and necessary expenses of administration and operation associated with the Fund;

(3) in the investment of any funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth;

(4) for the payment of binding obligations associated with such qualified investments which are secured by the Fund as the same become payable; and

(5) for the payment of principal or interest on qualified investments secured by the Fund or the payment of any redemption premium required to be paid when such qualified, investments are redeemed prior to maturity; provided, however, that monies in the Fund shall not be withdrawn at any time in such an amount as would reduce the amount of the Fund to less than the minimum requirement thereof established by resolution of the advisory committee created pursuant to section eight D, except for the purpose of paying binding obligations associated with qualified investments which are secured by the Fund as the same become payable and for which other monies of the bank are not available.

(c) The Fund shall be held and applied by the bank to make qualified investments designed to advance the following public purposes:

(1) to stimulate increased financing for new manufacturing, research and development and related facilities in the commonwealth by leveraging private financing for highly, productive state-of-the-art facilities, which will lead to increased and more rewarding employment opportunities for the citizens hereof: and

(2) to make matching grants to universities and public instrumentalities to induce the federal government and industry to fund advanced research and development activities in new and emerging technologies and new application of existing technologies in the commonwealth, and to thereby serve to increase and strengthen the commercial and industrial base of the commonwealth and the economic development and employment opportunities related thereto.

The bank shall make no such qualified investment pursuant to clause (1) of subsection (b) unless the bank finds that, to the extent possible, said qualified investment is such that a definite benefit to the economy of the commonwealth may reasonably be expected therefrom. In addition, the bank shall make no such qualified investment pursuant to said clause (1) of said subsection (b) unless such qualified investment is in conformity with rules and regulations approved in advance by the advisory committee, established pursuant to section eight D, and adopted by the bank, unless such qualified investment is recommended to the board of directors by the advisory committee.

Said rules and regulations shall prescribe the terms and conditions attaching to investments which are to constitute qualified investments, which may include, without limitation, loans, guarantees, loan insurance or reinsurance, equity investments, grants made only pursuant to clause (2) of subsection (c); or other financing or credit enhancing devices, as made by the bank directly or on its own behalf or in conjunction with other public instrumentalities, or private institutions, or the federal government, provided further, that said rules and regulations shall provide that each such qualified investment made pursuant to clause (1) of said subsection (c) shall involve a transaction with the participation of at least two at-risk private parties.

Said rules and regulations shall, in addition, set forth the terms, procedures, standards and conditions which the bank shall employ to identify qualified applications, process applications, make investment determinations, safeguard the Fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified investments, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified investments, provided, that said rules and regulations shall provide that each recipient of a qualified investment shall be required to pay a fee as a condition of such receipt, which fee may take the form of points, an interest rate premium or a contribution of warrants or other form of equity to the Fund as prescribed by said advisory committee; and provided, further, that said rules and regulations shall provide for negotiated agreements between the bank and each recipient of a qualified investment regarding the terms and conditions by which the Fund's support thereof could be reduced or withdrawn.

(d) The bank may solicit investments by private institutions or investors in the activities of the Fund and may reach agreements with such private institutions or investors regarding the terms of any such investments including, without limitation, the rights of such investors to participate in the income or appropriation of the Fund. In furtherance of the objective of securing investments by private institutions or investors in the activities of the Fund as set forth in the preceding sentence, the bank shall, on or before the date one year after the first qualified investment is approved by the bank, submit to the secretary of economic affairs a detailed proposal relative to the creation of a separate investment entity which allows for the commingling of the resources of the Fund with the maximum participation by such private institutions or investors in a manner which is consistent with the public purpose of the Fund and under terms and conditions calculated to protect and preserve the assets of the Fund; provided, however, that if the creation or operation of such a separate entity as proposed by the bank would require additional or clarifying amendments to the enabling act of the bank, said proposal shall include proposed statutory language with regard thereto.

(e) Copies of the approved rules and regulations, and any modifications thereto, shall be submitted to the chairpersons of the house and senate committees on ways and means and the clerks of the house of representatives and senate.

(f) Qualified investment transactions undertaken by the bank pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter one hundred and seventy-five of the General Laws, or any successor thereto, and shall be payable solely from the Emerging Technology Fund established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth or of any subdivision thereof.

(g) The bank shall not at any time make expenditure from or commitment of the assets of the Fund, including, without limitation, the making of qualified investments secured by the Fund, if following the making of said qualified investment, the amount of the Fund shall be less than the minimum requirement established by the advisory committee pursuant to section eight D, unless the bank, at the time of making of such qualified investment, deposits in the Fund from the proceeds thereof or from any fees and charges imposed relative to the making of qualified investments, or otherwise, an amount which, together with the amount in the Fund, shall not be less than the minimum requirement; provided, however, that at no time shall the minimum requirement of the Fund established by the advisory committee be less than the greater of (i) the maximum amount of principal and interest becoming due in the current and succeeding fiscal year of the bank on all outstanding bonds and other obligations which are secured by the Fund or (ii) thirty percent of the aggregate amount of the Fund's outstanding liabilities and obligations under the qualified investments.

(h) In order to assure the maintenance of the Fund at the minimum requirement established by the advisory committee, the governor shall annually request of the general court that there shall annually be appropriated and paid to the bank for deposit in the Fund such sum, if any, as shall be certified by the chairman of the advisory committee to the governor as necessary to restore or maintain the Fund at such minimum amount provided, that the maximum amount of such appropriations should not exceed forty-five million dollars.

The chairman of the advisory committee shall annually, on or before October thirtieth, make and deliver to the secretary for administration and finance his certificate stating the amount, if any, required to restore or maintain the Fund at the amount aforesaid and an appropriation for the amount so stated, if any, shall be requested of the general court by the governor to be paid to the bank during the then current fiscal year of the commonwealth; provided, however, that while it is the present intention of the general court to appropriate the amounts as so requested, the general court at the time of any such request shall be under no obligation to appropriate any such amount.

Said secretary acting on behalf of the commonwealth shall enter into an agreement with the bank memorializing the foregoing commitment by providing that the commonwealth shall provide contract assistance to the Fund as aforesaid in the maximum aggregate amount of forty-five million dollars. The bank may pledge such agreement and the rights of the bank to receive amounts thereunder as security for the payment of obligations of the Funds. Such agreement shall contain such provisions as are necessary to ensure that such agreement does not constitute a general obligation of the commonwealth for which the faith and credit of the commonwealth may be pledged.

Section 8D. (a) There is hereby created an advisory committee relative to the Fund consisting of the secretary of economic affairs and the secretary for administration and finance, and three other persons, one to be appointed by the governor and two to be appointed by the board of the bank; provided, however, that said secretary of economic affairs and said secretary for administration and finance may designate another person from time to time to act in his place for a particular purpose, including the right to attend and vote at a meeting of the advisory committee; provided, however, that at least one member of the advisory committee shall have knowledge of financing of emerging technology companies, and one member shall have advanced scientific knowledge related to an emerging technology or technologies.

Each appointed member of the advisory committee shall serve for a term of three years and thereafter until such member's successor is appointed; provided, however, that of those initially appointed, one shall serve for a term of one year, one shall serve for a term of two years, and one shall serve for a term of three years. Any person appointed to fill a vacancy on the advisory committee shall be appointed in a like manner and shall be eligible for reappointment. Any member of the advisory committee appointed by the governor may be removed by the governor for cause. Any member of the advisory committee appointed by the board of the bank may be removed by the board for cause. The advisory committee is encouraged to award, with the consent of the bank, one or more contracts with regard to the management of the Fund, which may provide performance-based incentives with regard to such management.

(b) The members shall elect annually a chairman and vice chairman and shall adopt by-laws governing the affairs of the advisory committee. Three members of the advisory committee shall constitute a quorum and the affirmative vote of a majority of the members present and eligible to vote at a meeting shall be necessary for any action to be taken by the advisory committee; provided, however, that the written approval of the secretary for administration and finance shall be necessary for any expenditure from or commitment of the assets of the Fund; and, provided further, that except as set forth in the preceding clause, no vacancy in the membership of the advisory committee shall impair the right of a quorum to exercise the powers of the advisory committee.

The members shall serve without compensation, but each member shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of official duties. The advisory committee shall meet at least twelve times in each year and shall have final authority over the activities of the Fund. The bank shall provide such staff and supporting assistance as deemed appropriate by the board of directors of the bank to enable the advisory committee to discharge its duties in a manner consistent with its public purpose as set forth in section eight C. The provisions of subsections (d), (f) to (i), inclusive, and (1) of section thirty-one of chapter twenty-three A of the General Laws shall apply as well to the members and affairs of the board of directors of the bank and of the advisory committee created pursuant to this section.

SECTION 28. Item 2200-7880 of section 2D of chapter 199 of the acts of 1987 is hereby amended by striking out, in line 2, the words "in Westborough".

SECTION 29. Section 55 of chapter 118 of the acts of 1992 is hereby amended by striking out the first sentence and inserting in place thereof the following two sentences:- Section four of this act shall only be applicable to claims filed on or after March seventh, nineteen hundred and ninety-three. Section nine of this act shall only be applicable to claims filed on or after September sixth, nineteen hundred and ninety-two.

SECTION 30. Section 137 of chapter 133 of the acts of 1992 is hereby amended by striking out, in lines 15 and 16, the words "the corporate officers of any such organization or business or the sole proprietor" and inserting in place thereof the following words:- the executive director or chief operating officer of any such non-profit organization, or the chief operation officer, treasurer and clerk or sole proprietor of any such profit motivated or existing business.

SECTION 31. Said chapter 133 is hereby further amended by inserting after section 137 the following section:-

Section 137A. (a) There is hereby created within the urban initiative fund, as established by section one hundred and thirty-seven, a commonwealth microloan demonstration project, hereinafter referred to as CMDP.

(b) For the purposes of the CMDP, "intermediary" shall mean a private entity, a non-profit entity or a non-profit community development corporation that applies under the program to make microloans not in excess of forty thousand dollars to assist minority, low-income, and female business owners in the commonwealth.

(c) The purposes of the CMDP shall be to:

(1) assist female, low-income, and minority entrepreneurs, business owners, and other individuals located anywhere in the commonwealth who possess the capability to operated successful business concerns;

(2) assist small business concerns in those areas suffering from a lack of credit due to economic downturns; and

(3) establish a micro loan demonstration program to:

(i) make grants to eligible intermediaries that will provide small-scale loans to start-up, newly established, or growing small businesses for working capital or the acquisition of materials, supplies, or equipment;

(ii) make grants to eligible intermediaries that will provide intensive marketing, management, and technical assistance to assist low-income entrepreneurs and other low-income individuals in obtaining private sector financing for their businesses, with or without loan guarantees.

(d) An intermediary shall be eligible to receive grants under this section if it:

(1) meets the definition of intermediary specified in this section;

(2) has experience in making micro loans to start-up, newly established, or growing small business concerns and providing, as an integral part of its micro loan program, intensive marketing, management and technical assistance to its borrowers or grantees, as applicable.

(e) As part of its application for a grant, each intermediary shall submit a description to the Community Development Finance Corporation, hereinafter referred to as CDFC of:

(1) the type of business to be assisted;

(2) the size and range of loans to be made;

(3) the geographic area to be served and its economic and unemployment characteristics;

(4) the status of small business concerns in the area to be served and an analysis of their credit and technical assistance needs;

(5) any marketing, management, and technical assistance to be provided in connection with a loan made under this subsection;

(6) the local economic credit markets, including costs associated with obtaining credit locally;

(7) the qualifications of the applicant to carry out the purpose of this subsection; and

(8) any plan to involve private sector lenders in assisting selected small business concerns.

(f) As a condition of any grant made to an intermediary under this section, the CDFC shall require the intermediary to contribute not less than fifteen percent of the grant amount for marketing, management and technical assistance in cash from non-state sources, and not less than fifteen percent of the grant amount for business loans in cash from non-state sources.

(g) Each intermediary that operates a micro loan program under this section shall maintain a micro loan portfolio with an average loan size of not more than fifteen thousand dollars.

(h) The CDFC shall include in its annual report required by this section a summary of its activities in support of micro lending in the commonwealth.

(i) Said annual report shall include, but not be limited to:

(1) the numbers and locations of the intermediaries funded to conduct micro loan programs;

(2) the amounts of each loan and each grant to intermediaries;

(3) a description of the matching contributions of each intermediary;

(4) the numbers and amounts of micro loans made by the intermediaries to small businesses;

(5) the repayment history of each intermediary;

(6) a description of the loan portfolio of each intermediary including the extent to which it provides micro loans to small business concerns in rural areas; and

(7) any recommendations for legislative changes that would improve program operations.

SECTION 32. The Massachusetts quasi-public corporation planning council, established in section fifty-six of chapter twenty-three A of the General Laws, shall not later than one year from the effective date of this act file a report with the clerks of the house of representatives and the senate describing: (i) the person named to represent each corporation on said planning council; (ii) the results of said council's review to determine the location of the regional offices to be established; and (iii) the coordination policy of said council.

SECTION 33. The University of Massachusetts, hereinafter referred to as the "university", shall establish three emerging technology centers in the commonwealth for the purpose of encouraging existing Massachusetts corporations to take better advantage of new technological approaches to manufacturing and service delivery, and to encourage the establishment of new businesses to develop and utilize such new technologies. Each center shall be created to assist a particular sector within the economy, and shall be located in an area which shall be convenient to businesses operating in that sector. Each center shall be established through a competitive application process at the sole discretion of the university which shall determine, within the scope and purpose of this section, the process for the submission and evaluation of applications. Only not-for-profit corporations established pursuant to chapter one hundred and eighty of the General Laws shall be permitted to apply, and the board of directors of such corporations shall include individuals who are active in the sector for which each center is to be established, which directors shall be drawn from business, institutions of higher learning, the sciences, and such other fields as may be helpful to carrying forward the purposes of each center. Each center shall be permitted to accept funds from the commonwealth, other instrumentalities of government, and private individuals and corporations, as long as a full accounting of said receipts and all expenditures shall annually be submitted to the university for its review. Each center shall develop an annual plan, which shall be submitted to the university for its review and approval, which may include direct research activities by center staff; contracted research activities; publication of materials; convening of meetings and conferences; establishment of model manufacturing processes; testing of equipment and procedures; cooperative ventures with other corporations and institutions for the development, testing, and evaluation of new technologies; joint ventures with individual corporations or with several corporations in which, if determined to be necessary and appropriate by the university, the results of which ventures may be retained as the proprietary information of the individual corporation or corporations; and other such activities as shall be necessary for the successful completion of the aforesaid activities and for the implementation of the purposes of this section. The university shall ensure that state funding provided for the operation of the centers shall be matched on at least a dollar for dollar basis by funding from other institutions, corporations, individuals, or any other governmental entity.

SECTION 34. Chapter 40I of the General Laws is hereby amended by inserting after section 7E the following section:-

Section 7F. (a) As used in this section the following terms shall, unless the context clearly requires otherwise have the following meanings:-

"Manufacturing network", a group of five or more private sector firms engaged in trade which work cooperatively to improve competitiveness; the network may also include industry associations and universities.

"Trade", firms that sell their goods or services into markets for which national or international competition exists.

(b) The Bay State Skills Corporation, hereinafter referred to as "the corporation," shall support the creation and development of manufacturing networks to enhance the quality of Massachusetts manufactured products and improve the national and international competitiveness of Massachusetts manufacturing firms.

The corporation shall provide manufacturing network grants based on criteria established by its board. The corporation shall not grant, in any fiscal year, more than fifteen percent of funds appropriated for manufacturing networks to any one network. State funds for each network shall be matched in at least an equal amount by the members of the network, provided however that up to seventy-five percent of the matching funds may be in the form of in-kind contributions, which may include personnel and shall be included in the report required by subsection (c).

The corporation shall assist manufacturing networks to:

(1) share, develop and finance improvements and innovation in manufacturing technology;

(2) improve productivity, including but not limited to, total quality management, statistical quality control and just-in-time production;

(3) enhance work force development and employee training;

(4) access new export markets;

(5) improve work organization and management practices, including but not limited to increasing front-line employee responsibility and participation;

(6) convert from military- to civilian-based production;

(7) meet environmental standards or regulations;

(8) reduce employee health care costs and improve workplace safety; and

(9) engage in other related activities.

(c) The Bay State Skills Corporation shall annually file with the clerks of the senate and the house of representatives on or before January first, a report of its activities in support of manufacturing networks in the commonwealth. Said report shall include, but not be limited to: (1) a financial statement summarizing the corporation activities involving manufacturing networks; (2) the number and types of manufacturers assisted and a description of the assistance provided; and (3) legislative recommendations to enhance the competitiveness of Massachusetts manufacturers.

(d) Said corporation shall work cooperatively with the University of Massachusetts and Industrial Services Program.

SECTION 35. The department of revenue is hereby authorized and directed to investigate and study the impact of the tax credits authorized pursuant to this act upon the state and local economy and the revenues of state and local government. The study shall determine the amount of increased business investment attributable to such tax credits, the additional jobs resulting directly or indirectly from such investments, the gross and net impact on state and local tax revenues, and the adjustments in expenditures on the state and local level resulting directly or indirectly from these tax credits. Said department shall consult with the special commission established pursuant to section three of chapter two hundred and eighteen of the acts of nineteen hundred and ninety-two in the design and execution of the study as well as in the drafting of its report. Said special commission is hereby authorized to continue to meet and consult with said department for the purposes of this study after the date when it is otherwise scheduled to expire. Said department shall report the results of its investigation and study, together with recommendations and drafts of legislation, if any, necessary to carry out such recommendations by filing the same with the clerk of the senate on or before December thirty-first, nineteen hundred and ninety-five.

SECTION 36. There hereby is established a joint government industry task force on innovation and strategic planning. Said task force shall study strategic planning in Massachusetts including without limitation: (a) an analysis of the current world economy and its impact on the economy of Massachusetts; (b) an analysis of each sector and region of the Massachusetts economy to evaluate their strengths and possible areas for improvement; (c) development of a blueprint of state support for critical and emerging industries; (d) an evaluation and proposal to improve the efficiency and effectiveness of state economic development agencies and quasi-public authorities; and (e) to determine the feasibility of participation in the National Institute of Standards and Technology programs.

Said task force shall also study and identify state laws and regulations which may impede research, competitiveness, or hinder the innovation of Massachusetts employers. The study shall include, but not be limited to, the identification of statutes and regulations which are or may be duplicative of federal or local statutes, ordinances, by-laws or regulations, as do not reflect changing technology or business practices, that contribute to or create excessive delays and costs related to business expansion, innovation or job growth, and/or generally impose conditions which might place Massachusetts business at a competitive disadvantage with businesses in other states.

The strategic plan shall be guided by the following principles: (a) economic development programs should focus predominantly on efforts to aid new business creation in Massachusetts and to strengthen existing Massachusetts businesses; (b) economic development should involve a partnership of government, private business, local communities, education and labor; and (c) economic development and environmental protection are compatible objectives. Said task force shall have the power and authority to hire staff or to engage the services of experts.

Said task force shall consist of two members of the senate, one of whom shall be the chairman of the commerce and labor committee, two members of the house of representatives, one of whom shall be the chairman of the commerce and labor committee, the governor or his designee, the secretary of the executive office of economic affairs, the secretary of environmental affairs, the secretary of the executive office of labor, and nine persons to be appointed by the governor who shall be members of the business community, one of whom shall be a representative of industrial manufacturers, one of whom shall be a representative of small business, one of whom shall be a representative of the financial service industry, two members of organized labor, one of whom shall be an economist who shall have expertise in the area of local, state, and federal economies, two of whom shall be individuals who teach at educational institutions, one of whom shall be selected by the Association of Independent Colleges and Universities of Massachusetts, and one of whom shall teach at a public institution and who shall be selected by the Higher Education Coordinating Council, the executive directors of the Bay State Skills Corporation, the Massachusetts Industrial Finance Agency, the Community Development Finance Corporation, the Massachusetts Office of Business Development, and the Massachusetts Technology Development Corporation; and one representative appointed by the Massachusetts Association of Community Development Corporations.

Said task force shall, on or before January first, nineteen hundred and ninety-four, file a report identifying the types of statutes and regulations previously listed with the house and senate committees on ways and means. Said report shall include a recommended course of action for each statute of regulation identified. Said report shall include recommendations for legislative reforms and regulations for regulatory reform.

SECTION 37. There is hereby established a special commission to study the economic impact of the absence of a sales tax in the state of New Hampshire on the area of the commonwealth known as the Merrimack valley.

Members of said commission shall be comprised of the house and senate chairmen of the taxation committee or their designees, the secretary of economic affairs or his designee, the presidents of the five Merrimack valley chambers of commerce or their designees, the executive director of the Merrimack valley planning commission or his designee, the executive director of the lower Merrimack valley regional employment board or his designee, and the president of the joint labor council of greater-Lawrence and greater-Haverhill or his designee. The state legislative delegation from the Merrimack valley shall be ex-officio members of said commission.

Said commission shall hold a series of hearings in the Merrimack valley area to elicit ideas and establish a plan to address the problems and concerns of the businesses and consumers of the Merrimack valley as a consequence of the proximity to the border of the state of New Hampshire and the lack of a sales tax therein. Said commission shall submit a report, including any recommendations for legislation together with any remedies to enhance and develop the economic stability of the area known as the Merrimack valley, to the clerk of the house and the clerk of the senate by the first Wednesday in May, nineteen hundred and ninety-three.

SECTION 38. The Community Development Finance Corporation is hereby ordered to conduct the necessary study and investigation to ensure the preparation and submission of applications to the United States Department of Housing and Urban Development for the capitalization and operation of two community investment banks in Massachusetts, in accordance with Title VIII of the Housing and Community Development Act of 1992, or any legislation in succession thereto. The banks so authorized shall be depository institutions which shall target investment activities in economically depressed neighborhoods or municipalities for the purpose of arresting the process of disinvestment and encouraging rehabilitation, job creation, and capital improvement, with an emphasis on assisting low and moderate income residents. Each bank shall be capitalized with a combination of private funds, federal assistance, and state funds, subject to appropriation. If federal funds for this purpose are not appropriated by January first, nineteen hundred and ninety-four, the corporation shall make recommendations to the legislature within one month after such date regarding means to ensure the capitalization of said banks without federal assistance.

SECTION 39. (a) In order to promote, develop and revitalize the fishing industry in Massachusetts and identify future growth potential of the commonwealth's coastal waters, the department of fisheries, wildlife and environmental law enforcement, hereinafter "the department," shall complete a strategic plan for the future of the industry.

(b) The strategic plan shall investigate and make recommendations on a strategy for the commonwealth to fully develop aquaculture, fish farming, species enhancement, fisheries management, and industry protection and development.

(c) The department shall seek input from the executive office of economic affairs, the marine studies programs at the University of Massachusetts at Dartmouth and the University of Massachusetts at Boston, the Massachusetts Maritime Academy, and the Woods Hole Oceanographic Institute. The department will also seek the participation of other academic institutions and relevant organizations, and representatives of the fishing industry, including but not limited to, representatives from New Bedford and Gloucester.

(d) The department shall report to the general court the results of its investigation and its strategic plan, together with drafts of legislation necessary to put the strategic plan's recommendations into effect, by filing the same with the clerk of the house of representatives on or before the first Wednesday in December, nineteen hundred and ninety-four.

SECTION 40. There shall be established within the executive office of environmental affairs a Forum for Innovative and Alternative Technologies. Said Forum shall be chaired by and appointed by the secretary of environmental affairs and shall consist of the secretary of environmental affairs or his designee, the secretary of economic affairs or his designee, the commissioner of the department of environmental protection, the house and senate chairs of the joint committee on natural resources or their designees, three representatives of the environmental business council, two representatives of the environmental community, and a representative of the Boston chamber of commerce. The purpose of said Forum shall be to review developing technologies in the fields of environmental protection or environmental cleanup. The review shall be for the purpose of determining the viability of the technology.

The Forum shall examine the viability and costs relative to a research and development credit of five percent to emerging and established envirotech companies for technologies which have been reviewed and approved by said Forum. Said Forum shall examine the viability and costs of a corporate tax credit of five percent to envirotech companies for five years after being permitted and operational. Said Forum shall report their findings to the joint committee on taxation and the house and senate committees on ways and means no later than September first, nineteen hundred and ninety-three.

SECTION 41. The Forum for Innovative and Alternative Technologies established by section forty shall conduct an investigation and study into the advisability, benefits, and costs of establishing a five percent corporate excise credit for the investment in pollution control technologies by corporations in the commonwealth and a five percent corporate excise credit for corporations in the commonwealth that are engaged in the manufacturing of pollution control technologies. Said Forum shall report its findings to the house and senate committees on ways and means no later than September first, nineteen hundred and ninety-three.

SECTION 42. Chapter 133 of the acts of 1992 is hereby amended by inserting after section 596 the following section:-

Section 596A. The provisions of sections four hundred and eight and four hundred and nine shall take effect on January fifth, ninteen hundred and ninety-three.

SECTION 43. The department of revenue shall prepare a study of the credit allowed under section seventeen. The study shall evaluate and compare the revenue cost and effectiveness of these credits. The department shall report the actual tax revenue cost of the investment credits given in this section and as utilized by eligible corporations. Further, the study shall report the actual number of corporations that utilize the credit and the number of corporations that are potentially eligible to claim the credit. Further, the study shall evaluate and report the effectiveness of the Massachusetts investment tax credit allowed under this section as a means of creating jobs within the commonwealth. The department shall present the results of this study to the joint committee on taxation no later than November thirty, nineteen hundred and ninety-six.

SECTION 44. Notwithstanding the provisions of any general or special law to the contrary any proceeds up to fifteen million dollars received from bonds or other debt issued after the effective date of this act, pursuant to clause (j) of section four of chapter two hundred and twelve of the acts of nineteen hundred and seventy-five, shall be deposited in the emerging technologies fund as established by section eight C of said chapter two hundred and twelve, inserted by section twenty-seven of this act.

SECTION 45. Section forty-two shall take effect as of July first, nineteen hundred and ninety-two.

SECTION 46. Sections fifteen, sixteen and eighteen shall apply to tax years commencing on or after January first, nineteen hundred and ninety-three.

SECTION 47. Clause (3) of paragraph (3) of subsection (r) of section 1 of chapter 151A of the General Laws, as appearing in section twenty-one of this act, shall only be applicable to those claims filed on or after March seventh, nineteen hundred and ninety-three.

SECTION 48. Section twenty-nine of this act shall take effect as of September sixth, nineteen hundred and ninety-two.

SECTION 49. Section forty-seven shall take effect as of March seventh, nineteen hundred and ninety-three.

SECTION 50. This act shall take effect upon its passage.