SENATE . . . . . . . . . . . . . . No. 2346
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The Commonwealth of Massachusetts
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In the Year Two Thousand Twelve
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SECTION 1. To provide for a program to support technology and economic development in the state that helps to enhance the economy and job growth throughout the state, and promote the well-being of those living in the state, the sum set forth in section 2, for the several purposes and subject to the conditions specified in this act, are hereby made available, subject to the laws regulating the disbursement of public funds, which sum shall be in addition to any amounts previously appropriated for these purposes.
SECTION 2.
7066-0099 For the Scientific and Technology Research and Development Matching Grant Fund established in 4G of chapter 40J of the General Laws………………… $25,000,000
SECTION 3. To provide for a program to support technology and economic development in the state that helps to enhance the economy and job growth throughout the state, and promote the well-being of those living in the state, the sum set forth in section 4, is hereby appropriated from the General Fund for the several purposes and subject to the conditions specified in section 4 and subject to laws regulating the disbursement of public funds; provided, however, appropriations made herein shall not revert.
SECTION 4.
7007-1200 For the Massachusetts Technology Park Corporation doing business as the Massachusetts Technology Collaborative, established under section 3 of chapter 40J of the General Laws, to establish a talent pipeline program that provides paid internships to technology startups and innovation companies; provided, that the Massachusetts Technology collaborative shall seek private funds necessary to match contributions equal to $1 for every $1 contributed by Massachusetts Technology Collaborative through a matching internship program; provided further, that $1,000,000 shall be used to establish an entrepreneur and startup venture capital mentoring program, in consultation with the Massachusetts Technology Development Corporation established in section 2 of chapter 40G, that would provide assistance, mentoring, and advice to start-ups and innovation companies by connecting early-stage entrepreneurs, technology startups, and small businesses with venture capital financing; provided further, that in the design and implementation of these programs, the Massachusetts Technology Collaborative shall consult with and review the talent pipeline and mentoring programs that are administered by the Venture Development Center at the university of Massachusetts at Boston established under chapter 123 of the acts of 2006 in order to model and bring to scale successful talent pipeline programs and practices; provided further, that the Massachusetts’ Technology Collaborative shall file annual reports for the duration of the programs with the chairs of the house and senate committee on ways and means and the chairs of the joint committee on economic development and emerging technologies, on or before January 1; provided further, the report shall include an overview of the activities of the programs, the number of participants in the programs, and an analysis of the impact of said programs on the innovation economy and workforce; provided further, the secretary of housing and economic development shall administer a competitive grant program consistent with programs previously administered by the secretary of labor and workforce development as provided for by line item 7003-1641; and provided further that said grant program shall receive not less than the amount provided for it in chapter 123 of the acts of 2006 …………………….................................................... $2,250,000
SECTION 5. Sections 47 and 48 of chapter 6C of the General Laws are hereby repealed.
SECTION 6. section 2 of chapter 21E of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out the definition of “Economically distressed area” and inserting in place thereof the following definition:-
“Economically distressed area”, an area or municipality that: has been designated as an economic target area, or that would otherwise meet the criteria of an economic target area as defined in clauses (i) or (ii) of subsection (a) of section 3D of chapter 23A, provided however, that if the area would otherwise meet the criteria established in said clauses (i) or (ii) of subsection (a) of section 3D, it does not need to be approved as a economic target area by the economic assistance coordinating council to be considered an economically distressed area; or, the site of a former manufactured gas plant or the site of a former Massachusetts Bay Transportation Authority; or the Massachusetts Department of Transportation right-of-way in which the municipality has acquired an interest for purposes of the installation, operation, maintenance and use of a rail-trail as defined in the definition of Owner or Operator.
SECTION 7. section 3 of chapter 23A of the General Laws, as so appearing, is hereby amended by adding the following subsection:-
(c) MOBD, with assistance from the office of small business and entrepreneurship, and in consultation with the secretary of housing and economic development, the Massachusetts office of consumer affairs and business regulation and the department of housing and community development, shall develop, operate and maintain a searchable website accessible by the public at no cost, to provide information on public and private resources available to small businesses and to promote small businesses in the commonwealth. Information made available through the searchable website shall include, but shall not be limited to:
(1) information on state, local, federal and private sector small business counseling and technical assistance programs;
(2) information on state, local and federal financing programs;
(3) information state, local and federal procurement and contracting programs and opportunities;
(4) information on state incorporation laws and regulations, as well as the changes to state incorporation laws and regulations;
(5) information on state tax credits;
(6) small business impact statements, as required under sections 2 and 3 of chapter 30A; and
(7) other information and resources, as determined by the director of the office of business development.
SECTION 8. section 3A of said chapter 23A, as so appearing, is hereby amended by inserting after the word “expansion”, the second time it appears, in line 20, the following words:- , job creation,
SECTION 9. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by inserting after the definition of “Economic assistance coordinating council” the following definition:-
“Economic benefit”, awards of tax credits approved under paragraph (5) of section 3F or any tax increment financing approved under section 3E and section 59 of chapter 40 or special tax assessment awarded under section 3E.
SECTION 10. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out the definition of “Economic opportunity area or EOA”.
SECTION 11. Said section 3A of said chapter 23A, as so appearing, is hereby further by striking out, in lines 87, 92, and 101, the word “EOA”, and inserting in place thereof the following word:- ETA.
SECTION 12. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out the definition of “Expansion project EOA”.
SECTION 13. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out, in lines 111 and 112, the words “determined with reference to the project EOA”.
SECTION 14. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out, in line 125, the word “EOA” and inserting in place thereof the following word:- ETA.
SECTION 14A. section 3A of chapter 23A of the General Laws, as so appearing, is hereby amended by striking, in lines 139 and 140, the words ‘below the commonwealth’s average’ and inserting in place thereof the following:- below 100.5 percent of the commonwealth’s average,
SECTION 15. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by inserting after the definition of “Gateway municipality” the following 2 definitions:-
"Job creation project'', (i) located or will be located within the commonwealth; (ii) generates substantial sales from outside of the commonwealth; and (iii) generates a net increase of at least 10 permanent full-time employees within 2 years after project certification, but not before January 1 of the year in which the project receives certification and which shall be maintained for a period of not less than 5 years; provided, however, that in the case of a facility that as of the project proposal date is already located in the commonwealth, job creation project shall refer only to a facility at which the controlling business has expanded or proposed to expand the number of permanent full-time employees at such facility and the expansion shall represent: (1) an increase in the number of permanent full-time employees employed by the controlling business within the commonwealth; and (2) not a replacement or relocation of permanent full- time employees employed by the controlling business at any other facility located within the commonwealth; provided, further, that in the case of a facility to be located within the commonwealth after the project proposal date, "job creation project'' shall refer only to a facility that is: (a) the first facility of the controlling business to be located within the commonwealth; or
(b) a new facility of such business and not a replacement or relocation of an existing facility of such controlling business located within the commonwealth; (c) or an expansion of an existing facility of the controlling business that results in an increase in permanent full-time employees and not a relocation of permanent full-time employees employed by the controlling business at any other facility located within the commonwealth.
"Job creation project proposal'', a proposal submitted by a controlling business to the EACC pursuant to section 3F for designation of a project as an job creation certified project, provided 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 5 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 commonwealth; provided further, that in the case of a project that is a new facility within the meaning of clause (b) of the definition of job creation 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.
SECTION 16. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out, in line 142, the following words:- and job growth.
SECTION 17. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out the definition of “Municipal application” and inserting in place thereof the following definition:- "Municipal application'', an application submitted by a municipality to the EACC pursuant to section 3D or 3E for designation of 1 or more areas as an ETA; 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 1 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.
SECTION 18. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by inserting after the word “ project”, the second time they both appears, in lines 220 and 224, the following words:- , job creation project.
SECTION 19. Said section 3A of said chapter 23A, as so appearing, is hereby further amended by striking out, in line 228, the word “ EOA ”, and inserting in place therof the following word:- ETA.
SECTION 20. Said chapter 23A is hereby further amended by striking out section 3B, as amended by section 53 of chapter 3 of the acts of 2011, and inserting in place thereof the following section:-
SECTION 3B. There shall be an economic assistance coordinating council, established within the Massachusetts office of business development. Said council shall consist of: the director of the office of business development or a designee who shall serve as co-chairperson; the director of housing and community development or a designee who shall serve as co-chairperson; the director of career services, or a designee; the secretary of labor and workforce development or a designee; the director of small business and entrepreneurship in the office of business development; the director of economic assistance in the office of business development or a designee; the president of the Commonwealth Corporation or a designee; and 8 members to be appointed by the governor, 1 of whom shall be from the western region of the commonwealth, 1 of whom shall be from the central region of the commonwealth, 1 of whom shall be from the eastern region of the commonwealth, 1 of whom shall be from the southeastern region of the commonwealth, 1 of whom shall be from Cape Cod or the islands, 1 of whom shall be from the MetroWest region, 1 of whom shall be a representative of a higher educational institution within the commonwealth and 1 of whom shall be from the Merrimack valley, all of whom shall have expertise in issues pertaining to training, business relocation and inner-city and rural development, and all of whom shall be 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. Said council shall adopt bylaws to govern its affairs.
SECTION 21. section 3C of said chapter 23A, as appearing in the 2010 Official Edition, is hereby amended by striking out subsection (1) and inserting in place thereof the following subsection:-
(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 3A to 3H, inclusive;
(b) review applications from municipalities for the designation of areas as economic target areas and to make such designations;
(c) certify tax increment finance agreements and special tax assessment areas pursuant to section 3E;
(d) certify projects for participation in the economic development incentive program and establish regulations for evaluating the proposals of said projects;
(e) assist municipalities in obtaining state and federal resources and assistance for economic target areas and for certified projects within economic target areas;
(f) provide appropriate coordination with other state programs, agencies, authorities, and public instrumentalities to enable activity within economic target areas to be more effectively promoted by the commonwealth;
(g) monitor the implementation and operation of the economic development incentive program; and
(h) conduct a continual evaluation of economic target areas and the projects certified for participation in the economic development incentive program.
SECTION 22. Subsection (b) of section 3D of said chapter 23A, as so appearing, is hereby amended by adding after the following paragraph:- Upon application from a city or town, the EACC may from time to time designate 1 or more areas of a city or town as areas presenting exceptional opportunities for increased economic development. In making such designation, the EACC shall consider whether there is a strong likelihood that 1 or more of the following will occur within the area in question within a specific and reasonably proximate period of time: (i) a significant influx or growth in business activity, (ii) the creation of a significant number of new jobs and not merely a replacement or relocation of current jobs within the commonwealth, and (iii) a significant increase in the prospects of achieving economic stability.
SECTION 23. Said chapter 23A is hereby further amended by striking out section 3E, as so appearing, and inserting in place thereof the following section:-
SECTION 3E. The EACC may from time to time certify by a vote a municipal application for a tax increment financing agreement or special tax assessment area within an economic target area or an area designated by the EACC as an area of exceptional opportunity upon compliance with the following:
(1) for the purposes of a tax increment financing agreement, receipt with the municipal application of a proposed tax increment financing agreement adopted in accordance with the provisions of section 59 of chapter 40;
(2) for the purposes of the provision of a special tax assessment area, receipt with the municipal application of a binding written offer which shall set forth the following assessment schedule for each parcel of real property in the area:
(i) in the municipality’s first fiscal year, an assessment of 0 per cent 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 25 per cent of the actual assessed valuation of the parcel;
(iii) in the third year, an assessment of up to 50 per cent of the actual assessed valuation of the parcel;
(iv) in the fourth year, an assessment of up to 75 per cent of the actual assessed valuation of the parcel;
(v) in subsequent years, assessment of up to 100 per cent of the actual assessed valuation of the parcel.
For the purposes of this section the term “municipality’s fiscal year” shall refer to a period of 365 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 within a special tax assessment area, whichever is last to occur; provided, further, that no such written offer from a municipality shall be considered to be authorized unless and until it is approved by the EACC.
SECTION 24. section 3F of said chapter 23A, as so appearing, is hereby amended by striking out, in lines 2 and 3, and in lines 40 and 41, the words “or manufacturing retention and job growth” and inserting in place thereof, in each instance, the following words:- job creation or manufacturing retention.
SECTION 25. Paragraph (b) of subsection (1) of said section 3F of said chapter 23A, as so appearing, is hereby amended by striking out subparagraph (ii) and inserting in place thereof the following subparagraph:-
(ii) the project as described in the proposal and all documentation submitted therewith:
(A) the proposal is consistent with and can reasonably be expected to benefit significantly from the municipality's plans as described in subparagraph (iii) ; and
(B) together with all other projects previously certified and located in the same ETA or municipality will not overburden the municipality's supporting resources;
SECTION 26. Said subsection (1) of said section 3F of said chapter 23A, as so appearing, is hereby further amended by striking out paragraph (c) and inserting in place thereof the following paragraph:-
(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 5 years nor more than 20 years; and
SECTION 27. Said section 3F of said chapter 23A, as so appearing, is hereby further amended by striking out subsection (2) and inserting in place thereof the following subsection:-
(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 5 years from the date of certification nor more than 20 years from such date unless such certification is revoked prior to the expiration of the specified period.
The EACC shall review certified projects at least once every 2 years. The certification of a project may be revoked only by the EACC and only upon the petition of the municipality that approved the project proposal, if applicable, if the petition satisfies the authorization requirements for a municipal application, or the petition of the director of economic development and the independent investigation and determination of the EACC that (a) the conduct of the controlling business subsequent to the certification is at material variance with the controlling business’s project proposal; or (b) the controlling business made a material misrepresentation in its project proposal or anytime thereafter in its information provided to a municipality, MOBD or EACC. Where the actual number of permanent full-time employees employed by the controlling business is less than 70 per cent of the number of such permanent full-time employees projected in the project proposal for a certified expansion project, or where the actual number of permanent full-time employees employed by the controlling business is less than 90 per cent of the number of such permanent full-time employees projected in the project proposal for an enhanced expansion, job creation or manufacturing retention project, then this shall be deemed a material variance for the purposes of a revocation determination.
If a project’s certification is revoked by the EACC, both the commonwealth and municipality, if applicable, shall have causes of action against the controlling business for the value of any economic benefits awarded pursuant to this chapter, section 59 of chapter 40, subsection (g) of section 6 of chapter 62, or section 38N of chapter 63. State tax credits shall also be subject to the recapture provision of subsection (g) of section 6 of chapter 62 and section 38N of chapter 63.
For projects certified before January 1, 2012, if the EACC revokes a project’s certification because of a (a) material variance, the value of the economic benefit that shall be recaptured or otherwise recouped by the commonwealth and municipality, if applicable, shall be the amount the controlling business would have been allowed to receive after the effective date of revocation, revocation shall take effect on the first day of the tax year in which a material variance occurred as determined by the EACC; or (b) material misrepresentation, the value of the economic benefit that shall be recaptured or otherwise recouped by the commonwealth and the municipality, if applicable, shall be the total amount of economic benefit approved by the commonwealth and municipality, if applicable, for the controlling business.
For projects certified after January 1, 2012, if the EACC revokes a project’s certification, the value of the economic benefit that shall be recaptured or otherwise recouped by the commonwealth and municipality, if applicable, shall be the total amount of economic benefit approved by the commonwealth and municipality, if applicable, for the controlling business.
Notwithstanding the above, the commissioner of revenue shall, as of the effective date of the revocation, recapture or reduce any tax credits awarded pursuant to the recapture provisions of subsection (g) of section 6 of chapter 62 and section 38N of chapter 63 and recoup any exemptions or other tax benefits allowed by the original certification under this section. Notwithstanding any general or special law to the contrary, upon such revocation, a municipality that has provided tax increment financing under this chapter and section 59 of chapter 40 or a special tax assessment pursuant to this chapter to a certified project may place a lien on the certified project for repayment of the full amount of real property taxes owed pursuant to such revocation. The commissioner of revenue shall issue regulations or other guidance to recapture state tax credits, and recoup any exemptions or other tax benefits allowed by the certification under this section.
Annually, on or before the first Wednesday in December, the EACC shall file a report detailing its findings of the review of all certified projects that it evaluated in the prior fiscal year to the commissioner of revenue, to the chairs of the joint committee on revenue “, the chairs of the joint committee on community development and small business and the chairs of the joint committee on economic development and emerging technologies.
SECTION 28. Said section 3F of said chapter 23A, as so appearing, is hereby further amended by inserting after the word “application”, in line 138, the following word:- and.
SECTION 29. Subsection (4) of said section 3F of said chapter 23A, as so appearing, is hereby further amended by striking out paragraph (d) and inserting in place thereof the following paragraph:-
(d) a certified project application will be submitted to the EACC within a reasonable period of time for the project proposing to occupy said facility and parcels.
SECTION 30. Said subsection (4) of said section 3F of chapter 23A, as so appearing, is hereby further amended by striking out paragraph (e).
SECTION 31. Subsection (5) of said section 3F of chapter 23A, as so appearing, is hereby amended by adding the following paragraph:-
(d) for job creation projects:
(1) the degree to which the project is expected to create and maintain employment opportunities;
(2) the degree to which the project is expected to create jobs for residents in a gateway municipality;
(3) the degree to which the project is expected to create a substantial amount of jobs within 2 years.
SECTION 32. Said section 3F of said chapter 23A, as so appearing, is hereby further amended by striking out, in line 171, the word “department” and inserting in place thereof the following word:- commissioner.
SECTION 33. Said chapter 23A is hereby further amended by inserting after section 10A the following new section:-
SECTION 10B. The secretary shall establish a Massachusetts Advanced Manufacturing Collaborative, hereinafter referred to as the collaborative, within the executive office of housing and economic development, which shall be responsible for developing and implementing the commonwealth’s manufacturing agenda to foster and strengthen the conditions necessary for growth and innovation of manufacturing within the commonwealth. The collaborative, at a minimum, shall include: the secretary of housing and economic development, or a designee; the secretary of labor and workforce development, or a designee; a member of the house of representatives, to be appointed by the speaker of the house of representatives; a member of the senate, to be appointed by the senate president; the director of the office of business development; the executive director of the Massachusetts Clean Energy Center; the executive director of the Massachusetts Life Science Center; the executive director of the John Adams Innovation Institute; the director of the Massachusetts Technology Transfer Center; a representative from the Associated Industries of Massachusetts; a representative from a local Chamber of Commerce; and a representative from the Massachusetts Workforce Board Association. The collaborative shall partner with stakeholders in the public and private sector in the development and operation of the state manufacturing plan, identify emerging priorities within the state’s manufacturing sector in order to make recommendations for high impact projects and initiatives, and facilitate the implementation of goals established under the plan, which shall include, but not be limited to: (1) education and workforce development, including workforce training programs and partnerships; (2) technical assistance and innovation in support of manufacturing growth, including access to capital, workforce development, compliance and certification programs, and export assistance; (3) enhancing the competitiveness of manufacturing companies, including examining ways to ease the cost of doing business and examining the current regulatory impacts upon small to medium sized manufacturers; and (4) promoting the manufacturing industry, including attracting a talented workforce and expanding opportunities for in-state marketing of the state’s supply chain capabilities.
SECTION 34. section 56 of said chapter 23A, as so appearing, is hereby amended by striking out, in lines 33 and 34, the words “and the Massachusetts Technology Transfer Center established in chapter 75” and inserting in place thereof the following words:- the Massachusetts Technology Transfer Center established in chapter 75, and the Massachusetts business development corporation established in chapter 671 of the acts of 1953,
SECTION 35. Said chapter 23A is hereby further amended by adding the following 2 sections:-
SECTION 63. (a) There shall be established within the executive office of housing and economic development a MassWorks infrastructure program, hereinafter referred to as the “program”, to issue public infrastructure grants to municipalities and other public instrumentalities for design, construction, building, land acquisition, rehabilitation, repair and other improvements to publicly-owned infrastructure including, but not limited to, sewers, utility extensions, streets, roads, curb-cuts, parking, water treatment systems, telecommunications systems, transit improvements and pedestrian and bicycle ways. The program shall provide for commercial and residential transportation and infrastructure development, improvements and various capital investment projects under the growth districts initiative administered by the executive office of housing and economic development. The grants shall be used to assist municipalities to advance projects that support job creation and expansion, housing development and rehabilitation, community development, and small town transportation projects; provided, however, that projects supporting smart growth as defined by the state’s sustainable development principles shall be preferred. The program may be used to match other public and private funding sources to build or rehabilitate transit oriented housing located within .25 miles of a commuter rail station, subway station, ferry terminal, or bus station, at least 25 per cent of which shall be affordable.
(b) Eligible public infrastructure shall be located on public land or on public leasehold, right-of- way or easement. A project that uses grants provided by this section shall be procured by a municipality in accordance with chapter 7, section 39M of chapter 30, chapter 30B and chapter 149.
(c) There shall be at least 1 open solicitation period each year to accept and consider new applications. Not less than 12 weeks before the annual open solicitation period, the executive office of housing and economic development shall release the criteria upon which the applications shall be judged including, but not limited to, a minimum project readiness standard, overall spending targets by project type, preferences for projects that align with the state’s sustainable development principles, and other preferences applying to that funding round. Grants may be made outside of the open solicitation period at the discretion of the secretary of housing and economic development subject to the foregoing criteria. All grant awards shall be made only after consultation with the appropriate regional planning agency.
(d) An eligible city or town, acting by and through its municipal officers or by and through any agency designated by such municipal officers to act on their behalf may apply to the program for a grant in a specific amount to fund a specified project. Two or more municipalities may apply jointly, with 1 municipality acting as fiscal agent, or through a regional planning agency acting as fiscal agent. Said grants may be made in addition to other forms of local, state, and federal assistance.
(e) Within the program, at least 10 per cent of the grant funds shall be dedicated annually to assist towns with populations of 7,000 or less in undertaking projects to design, construct, reconstruct, widen, resurface, rehabilitate, and otherwise improve roads and bridges or for the construction of chemical storage facilities, that support economic or community development. Such towns shall be eligible for a grant not to exceed $1,000,000, and towns shall be eligible to receive 1 grant every 3 fiscal years. Two or more towns eligible under this subsection may file a joint application for a single project serving those towns; provided, however, the total amount distributed to any 1 town shall not exceed the maximum amount allowed under this section. Receipt of a grant which is part of a joint application shall not preclude a town from receiving additional funds under a separate application.
(f) The secretary of housing and economic development may establish rules and regulations to govern the application and distribution of grants under the program. The rules and regulations may include provisions for joint applications by 2 or more eligible towns for a single project serving those towns.
(g) The secretary of housing and economic development shall report annually to the clerks of the house of representatives and the senate, the chairs of the joint committee on transportation, the chairs of the joint committee on economic development and emerging technologies, the chairs of the senate and house committees on ways and means, and the chairs of the joint committees on state administration and regulatory oversight on the activities and status of the program. The report shall include a list and description of all projects that received grant funds under the program, the amount of the grant awarded to the project, other sources of public funds that supported the project, a detailed analysis of the economic impact of each project including, where applicable, the number of construction and full time equivalent jobs to be created, number of housing units to be created, the private investment in the project, and the expected tax revenue generated from the project.
SECTION 64. (a) There shall be established within the executive office of housing and economic development a Massachusetts creative economy network, hereinafter referred to as the network, which shall be directed by a state creative economy director. The network shall consist of private, public, and non-profit organizations engaged in cross industry collaboration between many interlocking industry sectors that provide creative services including, but not limited to, advertising, architecture, or intellectual property products such as arts, films, electronic media, video games, interactive digital media, multimedia, or design. The creative economy director, in consultation with the creative economy council, established under chapter 354 of the acts of 2008, shall establish criteria for participation in the network.
(b) The duties of the network, under the leadership of the creative economy director, shall include: quantifying the creative economy sector and measuring its impact on the state economy; creating a mentorship network within the creative economy sector; developing strategies to increase access to traditional market sectors and within state government; developing a certification for Massachusetts creative economy businesses; increasing opportunities to attract private investment to creative economy businesses through venture capital, micro-lending, and other means; and marketing and branding the creative economy sector.
(c) The network may accept gifts or grants of money or property from any public, private or non- profit source, which shall be held in trust and used for the purpose of promoting the growth and development of the creative economy sector in Massachusetts.
(d) The creative economy director shall file an annual report with the clerks of the house and senate; the chairs of the house and senate committee on ways and means; the chairs of the joint committee on economic development and emerging technologies; the chairs of the joint committee on tourism, arts, and cultural development; and the chairs of the joint committee on community development and small business on or before January 1. The report shall include an overview of the activities of the network, and an update on the number of creative economy businesses in Massachusetts and their impact on the state economy, and an accounting of gifts or grants held in trust by the network and the uses of any funds expended by the trust.
SECTION 36. Chapter 23G of the General Laws is hereby amended by adding the following section:-
SECTION 45. There shall be established within the agency a Massachusetts Advanced Manufacturing Futures Program, hereafter referred to as the program. The purpose of the program shall be to support Massachusetts companies engaged in manufacturing through programs and shall be administered in a manner that takes into account the needs of manufacturers in all regions of the commonwealth and supports growth in the manufacturing sector statewide. The agency, in consultation with the secretary of housing and economic development and the manufacturing collaborative established under section 10B of chapter 23A, shall design and implement the program. The program shall be eligible to receive funds as appropriated by the general court, including from the Manufacturing Fund, established pursuant to section 98 of chapter 194 of the acts of 2011, the board, federal grants and programs, and transfers, grants and donations from state agencies, foundations and private parties, to be held in a separate account or accounts segregated from other funds. The program shall promote the development of advanced manufacturing through supporting technical assistance for small and mid-sized manufacturers; fostering collaboration and linkages among larger manufacturing companies and smaller supplier manufacturers; advancing workforce development initiatives through training, certification, and educational programs; encouraging development of innovative products, materials, and production technologies by manufacturers through the transfer of technological innovations and partnerships with research universities, colleges, and laboratories; and promoting regional approaches through sector strategies that allow for various programs, resources and strategies to be aligned and leveraged.
The agency shall, through grants or contracts, administer the program for the purpose of facilitating growth and competitiveness in the field of manufacturing. Grants under this program shall include consideration of, but not be limited to:-
(i) improving access to technical assistance for small and mid-sized manufacturers, including launching pilot demonstrations of best-practices in delivering innovation-based technical assistance;
(ii) encouraging the adoption of new technologies and advanced manufacturing capabilities into existing companies to improve manufacturing processes and operations; (iii) educating individuals about opportunities for career advancement within high tech and advanced manufacturing through middle school and high school education to support the future manufacturing worker pipeline;
(iv) education and skills training through individualized career pathways programs that develop skills and certifications for career growth and opportunities for available jobs or job openings that are anticipated in manufacturing, provided that these programs may include, but not be limited to, internships and on the job training which result in an employer or industry recognized credentials and ultimate job placement;
(v) fostering academic and industry collaboration, including encouraging technology transfer and commercialization efforts between not-for-profit research institutions, research universities, colleges, and laboratories and advanced and high-tech manufacturers; and
(vi) supporting and partnering with existing systems within the commonwealth, including the Massachusetts Manufacturing Extension partnership, Massachusetts workforce investment and regional employment boards, vocational schools, community colleges, and higher education institutions.
The agency shall solicit applications through a request for proposals and review such applications according to the criteria so established, provided, however that the applications, at a minimum, shall include: (a) a description of the parties involved in the project, including the professional expertise and qualifications of the principals; (b) a description of the scope of work that shall be undertaken by each party involved in the project; (c) the proposed budget including verification of funding from other sources; (d) a statement of the project objective including specific information on how the project shall enhance the competitiveness of the manufacturer or manufacturing sector and create or preserve jobs; (e) a statement that sets forth the plan of procedure, the facilities and resources available or needed for the project, and the proposed commencement and termination dates of the project; (f) a description of the expected significance of the project including the estimated number of manufacturers or workers served and the estimated number of jobs that could be created, retained, or filled as a result of the project; (g) timely deadlines for the submission of applications and recommendations of grant awards or contracts including provisions for an expedited process of consideration and recommendation in instances when the secretary of housing and economic development certifies the need for timely evaluation and disposition of the application; and (h) any other information that the agency shall deem necessary.
The agency shall reach agreement with each eligible entity that receives a grant or enters into a contract under this section on performance measures and indicators that shall be used to evaluate the performance of the eligible entity in carrying out the activities described in their application, or any other indicators determined to be necessary to evaluate the performance of the eligible entity. Each eligible entity shall submit an annual report for the duration of the program or partnership funded through the collaborative for its review.
The agency may promulgate such rules and regulations as are necessary to implement the purposes of the program, including procedures describing the application process and criteria that will be used to evaluate application for grants under this section.
The agency, in consultation with the collaborative under said section 10B of said chapter 23A, shall submit an annual report to the clerks of the house of representatives and the senate who shall forward the same to the senate and house committees on ways and means, the joint committee on economic development and emerging technologies and the joint committee on labor and workforce development on or before December 31. The report shall include a current assessment of the progress of each program funded through the manufacturing grant program and the progress of the advanced manufacturing collaborative activity including any recommendations for legislation.
SECTION 37. section 7 of chapter 23H of the General Laws, as most recently amended by section 88 of chapter 3 of the acts of 2011, is hereby further amended by adding the following subsection:-
(g) The board, in consultation with the secretary of labor and workforce development, the secretary of education, the secretary of housing and economic development and the president of the commonwealth corporation, shall undertake an annual review of local and regional labor market information to develop regional plans to coordinate training and education activities to target employer needs and to meet the commonwealth’s demand for workers. The board shall convene regional meetings that shall include representatives from each workforce investment area, established by the Workforce Investment Act of 1998, 29 U.S.C. § 2801, et seq. and, at a minimum, the presidents of any of the region’s community colleges, the principles of any vocational-technical high schools, the executive director of the appropriate workforce investment boards, the fiscal agents for workforce investment act funding, and labor, education and industry leaders in each of the regions to review labor market information and develop the regional plans. The Commonwealth Corporation shall aggregate these findings annually and make a report, which shall be filed with the clerks of the house of representatives and senate, no later than June 30. 548
SECTION 38. The General Laws are hereby amended by inserting after chapter 23K the following chapter:- 550
CHAPTER 23L
LOCAL INFRASTRUCTURE DEVELOPMENT PROGRAM
SECTION 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Agency”, the Massachusetts Development Finance Agency established pursuant to section 2 of chapter 23G. 556
“Amended improvement plan” a plan describing any change to the improvement plan with respect to the boundaries of a development zone, or material change to the method of assessing costs, description of improvements, the maximum cost of the improvements, or method of financing the improvements that is approved through the same procedures as the original improvement plan adopted pursuant to this chapter.
“Assessing party”, shall mean the municipality or municipalities identified in the improvement plan to assess any infrastructure assessments in the development zone.
“Cost”, shall include the cost of: (a) construction, reconstruction, renovation, demolition, maintenance and acquisition of all lands, structures, real or personal property, rights, rights-of- way, utilities, franchises, easements, and interests acquired or to be acquired by the public facilities owner; (b) all labor and materials, machinery and equipment including machinery and equipment needed to expand or enhance services from the municipality, the commonwealth or any other political subdivision thereof to the development zone; (c) financing charges and interest prior to and during construction, and for 1 year after completion of the improvements, interest and reserves for principal and interest, including costs of municipal bond insurance and any other type of credit enhancement or financial guaranty and costs of issuance; (d) extensions, enlargements, additions, and enhancements to improvements; (e) architectural, engineering, financial and legal services; (f) plans, specifications, studies, surveys and estimates of costs and of revenues; (g) administrative expenses necessary or incident to the construction, acquisition, and financing of the improvements; and (h) other expenses as may be necessary or incident to the construction, acquisition, maintenance, and financing of the improvements.
“Development zone”, one or more parcels of real estate in the municipality, contiguous or not, described in the improvement plan and to be benefited by the improvements and subject to infrastructure assessments as described in the improvement plan.
“Infrastructure assessments”, assessments, betterments, special assessments, charges or fees as described in this chapter and the improvement plan and assessed by the assessing party upon the real estate within the development zone to defray the cost of improvements financed in accordance with this chapter.
“Improvement plan”, a plan set forth in the petition for the establishment of a development zone setting forth the proposed improvements, services and programs, revitalization strategy, replacement and maintenance plan, the cost estimates for said improvements, and the replacement and maintenance program, the identity of the public facilities owner or owners and the administrator of the plan, the boundaries of the development zone, the analysis of any costs of financing said improvements, the identification of the assessing party, the method and structure of the infrastructure assessments, the selection of any or all of the assessing powers listed in section 4 that shall be utilized by the assessing party within the development zone, the description of the infrastructure development project within the development zone, the proposed use of any bonds or notes to finance such project by the agency, the participation of the agency, if any, in a district improvement financing program as described in section 7, and if so, a description of any assessing powers to be utilized, and the estimates of the costs and expenses to be levied and assessed on the real estate in the development zone.
“Improvements”, the acquiring, laying, constructing, improving and operating of capital improvements to be owned by a public facilities owner, including, but not limited to, storm drainage systems, dams, sewage treatment plants, sewers, water and well systems, roads, bridges, culverts, tunnels, streets, sidewalks, lighting, traffic lights, signage and traffic control systems, parking, including garages, public safety and public works buildings, parks, cultural and performing arts facilities, recreational facilities, marine facilities such as piers, wharfs, bulkheads and sea walls, transportation stations and related facilities, fiber and telecommunication systems, facilities to produce and distribute electricity, including alternate energy sources such as co-generation and solar installations, and other infrastructure-related improvements; provided that improvements shall not include any improvements located in, or serving gated communities, so called, not including age restricted developments operated by non-profit organizations, that prohibit access to the general public and any type of improvement that is specifically prohibited in the United States internal revenue code from using tax-exempt financing.
“Infrastructure development project”, the acquisition, construction, expansion, improvement or equipping of improvements serving any new or existing commercial, retail, or industrial project.
“Municipal governing body”, in a city, the city council with the approval of the mayor, and in a city having a Plan D or Plan E form of charter, the city council with the approval of the city manager, the town council in a town with a town council form of government, or otherwise the board of selectmen in a town with a town meeting form of government.
“Municipality”, a city or town, or cities and towns, if the development zone is located in more than 1 municipality.
“Person”, any natural or corporate person, including bodies politic and corporate, public departments, offices, agencies, authorities and political subdivisions of the commonwealth, corporations, trusts, limited liability companies, societies, associations, and partnerships and subordinate instrumentalities of any 1 or more political subdivisions of the commonwealth.
“Petition”, the document initiating the creation of a development zone as described in subsection (b) of section 2.
“Project”, an infrastructure development project.
“Public facilities owner”, means the municipality, the commonwealth or any other political subdivision, agency or public authority of the commonwealth, identified in the improvement plan as the owner of the improvements described in an improvement plan or an amended improvement plan.
SECTION 2. (a) Notwithstanding any general or special law, charter provision, by-law or ordinance to the contrary, each municipality in the commonwealth, acting through its municipal governing body, may adopt this chapter and may establish 1 or more development zones pursuant to this chapter. In the event that 2 or more municipalities wish to jointly establish or consolidate contiguous development zones, the municipal governing body of each such municipality wherein said development zone shall be located shall approve by a majority vote the petition for the establishment of such a development zone.
(b) The establishment of a development zone shall be initiated by the filing of a petition signed by all persons owning real estate within the proposed development zone in the office of the clerk of the municipality and the office of the agency. The petition, at a minimum, shall contain:
(1) a legal description of the boundaries of the development zone;
(2) the written consent to the establishment of the development zone or any amended improvement plan, by the persons with the record ownership of 100 per cent of the acreage to be included in the development zone; provided that any real estate owned by the commonwealth, or any agency, or any political subdivision thereof, included in the boundaries of the development zone shall not be included in the count of persons owning tax parcels or acreage in the development zone for the purposes of this clause;
(3) the name of the development zone;
(4) a map of the proposed development zone, showing its boundaries, and any current public improvements as are already in existence which may be added to or modified by any improvements;
(5) the estimated timetable for construction of the improvements and the maximum cost of completing said improvements;
(6) the improvement plan for the development zone; and
(7) the procedure by which the municipality shall be reimbursed for any costs incurred by it in establishing the development zone, and for any administrative costs to be incurred in the administration and collection of any infrastructure assessments imposed within the development zone.
SECTION 3. (a) Upon receipt of a petition pursuant to section 2, the municipal governing body shall, within 120 days of said receipt, hold a public hearing on said petition. Written notification of such hearing and a summary of the petition and the improvement plan shall be provided by the clerk of the municipality to all owners and tenants of properties in the proposed development zone and within one-half mile of the boundaries of said zone, within or beyond the municipality in which the zone shall be located no later than 14 days prior to such hearing, by mailing a notice to the address listed in the municipality’s property tax records and other appropriate listings of owners and residents. Notification of the hearing shall be published for 2 consecutive weeks in a newspaper of general circulation in the municipality, the first such publication to be at least 14 days prior to the date of such hearing. Such public notice shall state the proposed boundaries of the development zone, the improvements proposed to be provided in the development zone, the proposed basis for determining any infrastructure assessments with respect to such improvements, and the location or locations for viewing and copying the petition including the improvement plan.
(b) A public hearing pursuant to subsection (a) shall be held to determine if the petition satisfies the criteria of this chapter for a development zone, and to obtain public comment regarding the improvement plan and the effect that the development zone will have on the owners of real estate, tenants and other persons within said development zone and on the municipality or adjacent communities. Within 90 days after the conclusion of said public hearing and in conjunction with regional planning agencies, the city manager with the approval of the city council in the case of a city under Plan D or E forms of government, the mayor with the approval of the city council in the case of all other cities, the town council in the case of towns with a town council form of government or otherwise the board of selectmen in the case of a town with a town meeting form of government shall issue recommendations on the petition; provided, however, that said recommendations shall include, but shall not be limited to, the following findings:-
(1) whether the establishment of the development zone is consistent with any applicable element or portion of any master plan of the municipality which shall be confirmed in writing by the municipality’s planning board ; and
(2) whether the proposed improvements in the development zone will be compatible with the capacity and uses of existing local and regional infrastructure services and facilities.
(c) Within 21 days of the receipt of the recommendation required pursuant to subsection (b), the municipal governing body shall vote to approve or not approve the petition to establish the development zone and the improvement plan.
(d) Upon the approval of the petition by majority vote of the municipal governing body in accordance with subsection (c), notice of such approval shall be promptly filed with the records of the clerk of the municipality, the agency, and the secretary of the commonwealth. Upon such filing, the development zone shall be deemed established and the improvement plan deemed approved.
(e) The public facilities owner shall have all the rights and powers necessary or convenient to carry out and effectuate this chapter that are consistent with the improvement plan as approved by the municipal governing body, including, but without limiting the generality of the foregoing, the following:
(1) to make and enter into all manner of contracts and agreements necessary or incidental to the exercise of any power granted by this chapter including agreements with the municipality, the commonwealth, the agency and any other city, town or political entity or utility for the provision of services that are necessary to the acquisition, construction, operation or financing of the improvements within the development zone;
(2) to purchase or acquire by lease, lease-purchase, sale and lease-back, gift or devise, or to obtain or grant options for the acquisition of any property, real or personal, tangible or intangible, or any interest therein, in the exercise of its powers and the performance of its duties; to acquire real estate or any interest therein, within the boundaries of the development zone itself, if authorized in the improvement plan, and to acquire real estate or any interest therein outside the boundaries of the development zone, necessary for the acquisition, construction, and operation of the improvements or services relating thereto that are located within the development zone or are related to, or provided by the public facilities owner;
(3) to construct, improve, extend, equip, enlarge, repair, maintain, and operate and administer the improvements for the benefit of the development zone within, or without the development zone; to acquire existing improvements or construct new improvements, including those located under or over any roads, public ways or parking areas, and to enter upon and dig up any private land within the development zone for the purpose of constructing said improvements and of repairing the same;
(4) to accept gifts or goods of funds, property or services from any source, public or private, and comply, subject to the provisions of this chapter and the terms and conditions hereof;
(5) to sell, lease, mortgage, exchange, transfer or otherwise dispose of, or grant options for any such purposes with respect to any of the improvements, real or personal, tangible or intangible, within the development zone, or serving the development zone or any interest therein;
(6) to pledge or assign any money, infrastructure assessments or other revenues relating to any improvements within, or related to the development zone, and any proceeds derived there from;
(7) to enter into contracts and agreements with the municipality, the agency, the commonwealth or any political subdivisions thereof, the property owners of the development zone and any public or private party with respect to all matters necessary, convenient or desirable for carrying out the purposes of this chapter including, without limiting the generality of the foregoing, the acquisition of existing improvements, collection of revenue, data processing, and other matters of management, administration and operation; to make other contracts of every name and nature; and to execute and deliver all instruments necessary or convenient for carrying out any of its purposes;
(8) to exercise the powers and privileges of, and to be subject to the limitations upon, municipalities provided in sections 38 to 42K, inclusive, of chapter 40, chapter 80 and chapter 83, in so far as such provisions may be applicable and are consistent with the provisions of this chapter; provided, however, that any requirement in said chapters for a vote by the governing body of a town or city or for a vote by the voters of a town or city, shall be satisfied by a vote or resolution duly adopted by the board of directors, board of selectmen, city council or town council as the case may be;
(9) to invest any funds in such manner and to the extent permitted under the General Laws for the investment of such funds by the treasurer of a municipality;
(10) to employ such assistants, agents, employees and persons, including consulting experts as may be deemed necessary in the public facilities owner’s judgment, and to fix their compensation, according to the terms of the improvement plan;
(11) to procure insurance against any loss or liability that may be sustained or incurred in carrying out the purposes of this chapter in such amount as the public facilities owner shall deem necessary and appropriate with 1 or more insurers who shall be licensed to furnish such insurance in the commonwealth;
(12) to apply for any loans, grants or other type of assistance from the United States Government, the commonwealth or any political subdivision thereof that are described in the improvement plan or an amended improvement plan;
(13) to adopt an annual budget and to raise, appropriate, and assess funds in amounts necessary to carry out the purposes for which development zone is formed as described in this chapter and the improvement plan; and
(14) to do all things necessary, convenient or desirable for carrying out the purposes of this chapter or the powers expressly granted or necessarily implied in this chapter.
SECTION 4. (a) Consistent with the improvement plan, the assessing party may fix, revise, charge, collect and abate infrastructure assessments, for the cost, maintenance, operation ,and administration of the improvements imposed on the real estate, leaseholds or other interests therein, located in the development zone. All real estate within a development zone owned by the commonwealth or any political subdivision, political instrumentality, agency or public authority thereof shall be exempt from such charges unless such charges are specifically accepted by the commonwealth or such political subdivision, political instrumentality, agency or public authority. In providing for the payment of the cost of the improvements or for the use of the improvements, the assessing party may avail itself of the provisions of the General Laws relative to the assessment, apportionment, division, fixing, reassessment, revision, abatement and collection of infrastructure assessments by cities and towns, or the establishment of liens therefore and interest thereon, and the procedures set forth in sections 5and 5A of chapter 254 for the foreclosure of liens arising under section 6 of chapter 183A, as it shall deem necessary and appropriate for purposes of the assessment and collection of infrastructure assessments. The assessing party shall file copies of the improvement plan and any amendments thereof, and all schedules of assessments with the appropriate registry of deeds and the municipality’s assessors’ records so that notice thereof shall be reported on a municipal lien certificate for any real estate parcel located in a development zone. Notwithstanding any general or special law to the contrary, the assessing party may pay the entire cost of any improvements, including the acquisition thereof, during construction or after completion, or the debt service of notes or bonds used to fund such costs, from infrastructure assessments, and may establish said infrastructure assessments prior to, during, or within 1 year after completion of construction or acquisition of any improvements. The assessing party may establish a schedule for the payment of infrastructure assessments not to exceed 25 years.
Notwithstanding any general or special law to the contrary, the assessing party may contract with Mass Development for any services required by the assessing party regarding the assessment, apportionment, division, fixing, reassessment, revision, collection and enforcement of infrastructure assessments hereunder, and the fees, costs and other expenses thereof may be included in the calculation of the infrastructure assessments levied by the assessing party hereunder.
The infrastructure assessments established by the assessing party in accordance with this chapter shall be fixed in respect of the aggregate thereof so as to provide revenues at least sufficient to: (i) to pay the administrative expenses of the assessing party; (ii) to pay the principal of, premium, if any, and interest on bonds, notes or other evidences of indebtedness of the agency under this chapter as the same becomes due and payable; (iii) to create and maintain such reasonable reserves as may be reasonably required by any trust agreement or resolution securing bonds; (iv) to provide funds for paying the cost of necessary maintenance, repairs, replacements and renewals of the improvements; and (v) to pay or provide for any amounts that the agency may be obligated to pay or provide for by law or contract, including any resolution or contract with or for the benefit of the holders of its bonds and notes. .
Notwithstanding any general or special law to the contrary, the agency shall not be precluded from carrying out its obligations under this chapter if it has previously provided technical, real estate, lending, financing, or other assistance to: (i) an infrastructure development project including, but not limited to, a project in which the agency may have a economic interest; (ii) a development zone; or (iii) a municipality associated with, or that may benefit from, an infrastructure development project.
(b) As an alternative to levying infrastructure assessments under any other provisions of this chapter or any other general law, the assessing party may levy special assessments on real estate, leaseholds, or other interests therein within the development zone to finance the cost of the improvements and the maintenance, repair, replacement and renewal thereof, and the expense of administration thereof, provided, however, that the ratio of the property’s value to the amount of the lien shall not exceed 3:1. In determining the basis for and amount of the special assessment, the cost of the improvements and the maintenance, repair, replacement and renewal thereof, and the expense of administration thereof, including the cost of the repayment of the debt issued or to be issued by the agency to finance the improvements, may be calculated and levied using any of the following methods that result in fairly allocating the costs of the improvements to the real estate in the development zone:
(1) equally per length of frontage or by lot, parcel, or dwelling unit or by the square footage of a lot, parcel or dwelling unit;
(2) according to the value of the property as determined by the municipality’s board of assessors; or
(3) in any other reasonable manner that results in fairly allocating the cost, administration and operation of the improvements, according to the benefit conferred or use received including, but not limited to, by classification of commercial or residential use or distance from the improvements.
The assessing party, consistent with the improvement plan, may also provide for the following:
(1) a maximum amount to be assessed with respect to any parcel;
(2) a tax year or other date after which no further special assessments under this section shall be levied or collected on a parcel;
(3) annual collection of the levy without subsequent approval of the assessing party;
(4) the circumstances under which the special assessments may be reduced or abated; and
(5) the assessing party may establish procedures allowing for the prepayment of infrastructure assessments under this chapter.
(c) Infrastructure assessments, levied under this chapter, shall be collected and secured in the same manner as property taxes, betterments, and assessments and fees owed to the municipality unless otherwise provided by the assessing party and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for such property taxes, betterments and liens owed to the municipality. Any liens imposed by the municipality for the payment of property taxes, betterments and assessments shall have priority in payment over any liens placed on real estate within the development zone.
(d) Notwithstanding any general or special act to the contrary, the agency, the municipality, or any other public facilities owner may contract with 1 or more owners of real estate within a development zone to acquire or undertake improvements within the development zone. Upon completion, such improvements shall be conveyed to the public facilities owner, provided that the consideration for said conveyance shall be limited to the cost of said improvements.
SECTION 5. (a) In addition to the powers granted pursuant to chapter 23G and chapter 40D, the agency may borrow money and issue and secure its bonds for the purpose of financing improvements as provided in and subject to, the provisions of this chapter; provided, further, that the provisions of said chapters 23G and 40D shall apply to bonds issued under this section, except that the provisions of subsection (b) of section 8 of said chapter 23G and section 12 of said chapter 40D shall not apply to bonds issued pursuant to this chapter or the improvements financed thereby; and provided further, that the improvements financed by the agency pursuant to this chapter shall constitute a project within the meaning of section 1 of said chapter 23G and section 1 of said chapter 40D, but shall not be considered facilities to be used in a commercial enterprise. With respect to the issuance of bonds or notes for the purposes of this chapter in the event of a conflict between this chapter and chapter 23G, the provisions of this chapter shall control.
Nothing in this chapter shall be construed to limit or otherwise diminish the power of the agency to finance the costs of projects authorized pursuant to said chapter 23G and said chapter 40D within the development zone or the municipality upon compliance with the provisions of said chapter 23G and said chapter 40D.
(b) The agency may provide by resolution of its board of directors, from time to time, for the issuance of bonds or notes of the agency for any of the purposes set forth in this chapter. Bonds issued hereunder shall be special obligations payable solely from particular funds and revenues generated from infrastructure assessments levied pursuant to this chapter as provided in such resolution. No bonds or notes shall be issued by the agency pursuant to this chapter until the agency’s board of directors has determined that the bonds or notes trust agreement and any related financing documents are reasonable and proper and comply with this chapter. The agency may charge a reasonable fee in connection with the review of such documentation by its staff and board of directors. Without limiting the generality of the foregoing, such bonds may be issued to pay or refund notes issued pursuant to this chapter, to pay the cost of acquiring, laying, constructing, and reconstructing the improvements. The bonds of each issue shall be dated, shall bear interest at the rates, including rates variable from time to time, and shall mature at the time or times not exceeding 25 years from their date or dates, as determined by the agency, and may be redeemable before maturity, at the option of the agency or the holder thereof, at the price or prices and under the terms and conditions fixed by the agency before the issuance of the bonds. The agency shall determine the form of the bonds and the manner of execution of the bonds, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the commonwealth and such other locations as designated by the agency. In the event an officer whose signature or a facsimile of whose signature shall appear on any bonds shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until the delivery. The bonds shall be issued in registered form. The agency may sell the bonds in a manner and for a price, either at public or private sale, as it may determine to be for the best interests of the development zone.
Before the preparation of definitive bonds, the agency may, under like restrictions, issue interim receipts or temporary bonds exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The agency may also provide for the replacement of any bonds that shall become mutilated or shall be destroyed or lost. The issuance of the bonds, the maturities, and other details thereof, the rights of the holders thereof, and the agency in respect of the same, shall be governed by this chapter insofar as the same may be applicable.
While any bonds or notes of the agency remain outstanding, its powers, duties or existence shall not be diminished or impaired in any way that will affect adversely the interests and rights of the holders of such bonds or notes. Bonds or notes issued under this chapter, unless otherwise authorized by law, shall not be deemed to constitute a debt of the commonwealth or the municipality, or a pledge of the faith and credit of the commonwealth or of the municipality, but the bonds or notes shall be payable solely by the agency as special obligations payable from particular funds collected from infrastructure assessments levied pursuant to this chapter and any revenues derived from the operation of the improvements. Any bonds or notes issued by the agency under this chapter, shall contain on the face thereof a statement to the effect that neither the commonwealth, or the municipality, shall be obliged to pay the same or the interest thereon, and that the faith and credit or taxing power of the commonwealth, the municipality, or the agency is not pledged to the payment of the bonds or notes. All bonds or notes issued under this chapter shall have and are hereby declared to have all the qualities and incidents of negotiable instruments as defined in section 3-104 of chapter 106.
Issuance by the agency of 1 or more series of bonds or notes for 1 or more purposes shall not preclude it from issuing other bonds or notes in connection with the same project or any other project; provided, however, that the resolution or trust indenture wherein any subsequent bonds or notes may be issued shall recognize and protect any prior pledge made for any prior issue of bonds or notes unless in the resolution or trust indenture authorizing such prior issue the right is reserved to issue subsequent bonds on a parity with such prior issue.
(c) In the discretion of the agency, bonds issued pursuant to this chapter may be secured by a trust agreement between the agency and the bond owners or a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the commonwealth. A trust agreement may pledge or assign, in whole or in part, the revenues, funds and other assets or property held or to be received by the assessing party, or the agency including, without limitation all monies and investments on deposit from time to time in any fund of the assessing party or the agency or any account thereof and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the assessing party or the agency, and the proceeds thereof. A trust agreement may pledge or assign, in whole or in part, development zone revenues, funds and other assets or property relating to the development zone held or to be received by the assessing party or the agency. A trust agreement may contain, without limitation, provisions for protecting and enforcing the rights, security and remedies of the bondholders, provisions defining defaults and establishing remedies, which may include acceleration and may also contain restrictions on the remedies by individual bondholders. A trust agreement may contain covenants of the agency concerning the custody, investment and application of monies, the issue of additional or refunding bonds, the use of any surplus bond proceeds, the establishment of reserves and the regulation of other matters customarily treated in trust agreements. It shall be lawful for any bank or trust company to act as a depository of any fund of the assessing party or the agency or trustee under a trust agreement, provided it furnishes indemnification and reasonable security as the agency may require. Any assignment or pledge of revenues, funds and other assets and property made by the assessing party or the agency shall be valid and binding and shall be deemed continuously perfected for the purposes of chapter 106 and other laws when made. The revenues, funds and other assets and property, rights therein and thereto and proceeds so pledged and then held or thereafter acquired or received by the assessing party or the agency shall immediately be subject to the lien of such pledge without any physical delivery or segregation or further act, and the lien of any such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the trust, whether or not such parties have notice thereof. The trust agreement by which a pledge is created need not be filed or recorded to perfect the pledge except in the records of the agency and no filing need be made pursuant to said chapter 106. Any pledge or assignment made by the agency is an exercise of its political and governmental powers, and revenues, funds, assets, property and contract or other rights to receive the same and the proceeds thereof which are subject to the lien of a pledge or assignment created under this chapter shall not be applied to any purposes not permitted by the pledge or assignment.
(d) The agency may issue, from time to time, notes of the agency in anticipation of federal, state or local grants for the cost of acquiring, constructing or improving the development zone’s improvements or in anticipation of bonds to be issued pursuant to this chapter. Said notes shall be authorized, issued and sold in the same manner as, and shall otherwise be subject to the other provisions of this chapter. Such notes shall mature at such time or times as provided by the issuing resolution of the agency and may be renewed from time to time; provided, however, that all such notes and renewals thereof shall mature on or prior to 20 years from their date of issuance.
(e) In addition to other security provided herein, or otherwise by law, bonds, notes or obligations issued by the agency under any provision of this chapter, may be secured, in whole or in part, by a letter of credit, line of credit, bond insurance policy, liquidity facility or other credit facility for the purpose of providing funds for payments in respect of bonds, notes or other obligations required by the holder thereof to be redeemed or repurchased prior to maturity or for providing additional security for such bonds, notes or other obligations. In connection therewith, the agency may enter into reimbursement agreements, remarketing agreements, standby bond purchase agreements and any other necessary or appropriate agreements. The assessing party may pledge or assign any of its revenues as security for the reimbursement by it to the agencies or providers of such letters of credit, lines of credit, bond insurance policies, liquidity facilities or other credit facilities of any payments made under the letters of credit, lines of credit, bond insurance policies, liquidity facilities or other credit facilities.
(f) In connection with, or incidental to, the issuance of bonds, notes or other obligations, the agency may enter into such contracts as the agency may determine to be necessary or appropriate relative to the issuance thereof and the interest payable thereon or to place the bonds, notes or other obligations of the agency, as represented by the bonds or notes, or other obligations in whole or in part, on such interest rate or cash flow basis as the agency may determine appropriate including, without limitation, interest rate swap agreements, insurance agreements, forward payment conversion agreements, futures contracts, contracts providing for payments based on levels of, or changes in, interest rates or market indices, contracts to manage interest rate risk including, without limitation, interest rate floors or caps, options, puts, calls and similar arrangements. Such contracts shall contain such payment, security, default, remedy and other terms and conditions as the agency may deem appropriate and shall be entered into with such party or parties as the agency may select, after giving due consideration, where applicable, for the credit worthiness of the counter party or counter parties, including any rating by a nationally recognized rating agency, the impact on any rating on outstanding bonds, notes or other obligations or any other criteria the agency may deem appropriate.
(g) The agency shall have the power out of any funds available therefore to purchase its bonds or notes. The agency may hold, pledge, cancel or resell such bonds or notes, subject to and in accordance with agreements with bondholders. The agency may issue refunding bonds for the purpose of paying any of its bonds at maturity or upon acceleration or redemption. Refunding bonds may be issued at such time or times prior to the maturity or redemption of the refunded bonds as the agency deems to be in the public interest. Refunding bonds may be issued in sufficient amounts to pay or provide for the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expense of issuing the refunding bonds, the expense of redeeming bonds being refunded and such reserves for debt service or other capital from the proceeds of such refunding bonds as may be required by a trust agreement or resolution securing the bonds and, if considered advisable by the agency, for the additional purpose of the acquisition, construction or reconstruction and extension or improvement of improvements. All other provisions relating to the issuance of refunding bonds shall be as set forth in this chapter insofar as the same may be applicable.
(h) All moneys received pursuant to the provisions of this chapter, whether as proceeds from the issue of bonds or notes or as revenue or otherwise, shall be deemed trust funds to be held and applied solely as provided in this chapter.
(i) Bonds or notes issued under this chapter are hereby made securities in which all public officers and public bodies of the commonwealth and its political subdivisions, all insurance companies, trust companies in their commercial departments and within the limits set by the General Laws, banking associations, investment companies, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of a similar nature may properly and legally invest funds, including capital in their control and belonging to them; and the bonds are hereby made obligations that may properly and legally be made eligible for the investment of savings deposits and income thereof in the manner provided by section 2 of chapter 167E. The bonds or notes are hereby made securities that may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the commonwealth for any purpose for which the deposit of bonds or other obligations of the commonwealth is now or may hereafter be authorized by law.
Notwithstanding any general or special law to the contrary, or any provision in their respective charters, agreements of associations, articles or organization, or trust indentures, domestic corporations organized for the purpose of carrying on business within the commonwealth including, without limitation any electric or gas company as defined in section 1 of chapter 164, railroad corporations as defined in section 1 of chapter 160, financial institutions, trustees and the municipality may acquire, purchase, hold, sell, assign, transfer, or otherwise dispose of any bonds, notes, securities or other evidence of indebtedness of the agency provided that they are rated similarly to other governmental bonds or notes, and to make contributions to the agency, all without the approval of any regulatory authority of the commonwealth.
(j) Any holder of bonds or notes issued under this chapter, and a trustee under a trust agreement, except to the extent its rights may be restricted by the trust agreement, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce all rights under the laws of the commonwealth or granted hereunder or under the trust agreement, and may enforce and compel the performance of all duties required by this chapter or by the trust agreement, to be performed by the agency or by any officer thereof.
(k) Notwithstanding any of the provisions of this chapter or any recitals in any bonds or notes issued under this chapter, all such bonds or notes shall be deemed to be investment securities under the provisions of chapter 106.
(l) Bonds or notes may be issued under this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the commonwealth or the municipality, and without any proceedings or the happening of any other conditions or things than those proceedings, conditions or things that are specifically required thereof by this chapter, and the validity of and security for any bonds or notes issued by the agency shall not be affected by the existence or nonexistence of any such consent or other proceeding conditions, or things.
SECTION 6. Bonds or notes issued by the agency and their transfer and their interest or income, including any profit on the sale thereof, and the improvements belonging to the public facilities owner shall at all times be exempt from taxation within the commonwealth, provided that nothing in this chapter shall act to limit or restrict the ability of the commonwealth or the municipality to otherwise tax the individuals and companies or their real or personal property or any person living or business operating within the boundaries of the development zone.
SECTION 7. For purposes of this chapter, the agency may issue bonds secured by infrastructure assessments pursuant to and according to the terms of chapter 40Q. With the approval of the municipal governing body and the economic assistance coordinating council, the agency may issue its bonds in place of those of the municipality pursuant to, and according to the terms of chapter 40Q, provided that the municipality has fulfilled all requirements set forth in said chapter 40Q that would be required of the municipality if it were itself issuing bonds pursuant to said chapter 40Q. In addition, the municipality shall include in its “invested revenue district development program” as defined in said chapter 40Q, a description of the rights and responsibilities of the assessing party, the agency and the municipality with respect to said program. In such case, the municipality may designate the agency as the issuer of bonds pursuant to said chapter 40Q for the purpose of financing any of the “project costs” as defined in said chapter 40Q and that are located in, or functionally serving the needs of the development zone. The municipality shall determine the percentage of the “captured assessed valuation,” as defined in said chapter 40Q, of property within the boundaries of the development zone that the municipality is pledging pursuant to an invested revenue district development program as defined in said chapter 40Q for the payment of the agency’s bonds. With the written agreement of the person or persons owning 1 or more specific tax parcels in the development zone, the assessing party may adopt a plan whereby any of the assessing powers described in this chapter are made applicable exclusively to said parcels in order to secure and fund the debt service for the bonds. The “project costs” as defined in said chapter 40Q, shall not be reduced by the amount of the revenues derived pursuant to this chapter and said revenues derived from such a plan, may be made contingent upon or abated, in whole or in part, by the assessing party upon the receipt of the anticipated revenues generated through the pledged captured assessed valuation. At its option, the municipality may waive any adjustment for the “inflation factor” described in said chapter 40Q, in order to increase the captured assessed valuation available to finance improvements benefiting the development zone. The assessing party, the agency and the municipality shall enter into an agreement delineating the rights and responsibilities of each pursuant to such district improvement financing.
SECTION 8. The agency may make representations and agreements for the benefit of the holders of the agency’s bonds and notes or other obligations to provide secondary market disclosure information. The agreement may include: (1) covenants to provide secondary market disclosure information (2) arrangements for such information to be provided with the assistance of a paying agent, trustee, dissemination or other agent; and (3) remedies for breach of the agreements, which remedies may be limited to specific performance.
SECTION 9. The collector-treasurer of each municipality, at the option of the municipality and the agency, may collect any infrastructure assessments including any recording fees, on behalf of the agency pursuant to an agreement between the municipality and the agency and to disburse the funds to any designated management entity or financial institution selected by agency. The collector-treasurer shall disburse revenues to the management entity or financial institution within 30 days of the collection of such fees, together with the interest earned on the holding of such fees.
SECTION 10. (a) This chapter shall be considered to provide an exclusive, additional, alternative and complete method of accomplishing the purposes of this chapter and exercising the powers authorized hereby and shall be considered and construed to be supplemental and additional to, and not in derogation of, powers conferred upon the agency, the assessing party or the public facilities owner, by law; but, insofar as the proceedings of this chapter are inconsistent with any general or specific law, administrative order or regulation, or any resolution or ordinance of the municipality, this chapter shall be controlling. Without limiting the generality of the foregoing, no provision of any resolution or ordinance of the municipality requiring ratification by the voters of certain bond issues shall apply to the issuance of bonds or notes of the agency pursuant to this chapter, nor shall be applicable to the manner of voting or the limitations as to the amount and time of payment of debts incurred by the agency.
(b) Except as specifically provided in this chapter, all other statutes, ordinances, resolutions, rules and regulations of the commonwealth and the municipality shall be fully applicable to the property, property owners, residents and businesses located in the development zone. This chapter shall not obligate the municipality or the agency to pay any costs for the acquisition, construction, equipping or operation and administration of the improvements located within the development zone. section 39. section 2WWW of chapter 29 of the General Laws, as amended by section 105 of chapter 3 of the acts of 2011, is hereby further amended by striking out subsection (d) and inserting in place thereof the following subsection:-
(d) There shall be credited to the fund any revenue from appropriations or other monies authorized by the general court and specifically designated to be credited to the fund, including funds transferred from the Gaming Economic Development Fund established under section 2DDDD, and any gifts, grants, private contributions, investment income earned on the fund's assets and all other sources. Money remaining in the fund at the end of a fiscal year shall not revert to the General Fund.
SECTION 40. Said section 2WWW of said chapter 29, as amended by section 105 of said chapter 3, is hereby further amended by inserting after subsection (h) the following subsection:-
(h ½) A portion of the grant fund shall be used to address the gap between the skills held by workers and the skills needed by employers for jobs that require more than a high school diploma but less than a 4-year degree. Grants awarded under this program shall focus on building relationships and partnerships among geographic clusters of high schools, vocational-technical schools, community colleges, state universities, institutions of higher education, local employers, industry partners, local workforce investment boards , labor organizations to support the creation of workforce investment training opportunities for civilians or for veterans who served on active duty in the armed forces during a war or in a campaign or expedition for which a campaign badge has been authorized and who have separated from the military within 48 months of the effective date of this act, and workforce development entities, in order to create multiple and seamless pathways to employment through enhanced coordination of existing institutions and resources. Each cluster shall designate 1 entity or organization as the lead partner for each cluster and approved procurements shall be jointly applied for by, at a minimum, a public educational institution including a community college, at least 1 regional workforce investment board, and at least 1 regional employer in a high growth sector. Grants made under this program shall include consideration of, but not be limited to: defining and establishing the process for students to transition from adult basic education programs to college-based programs; programs accessible to working, unemployed or underemployed adults; programs that focus on the recruitment, training and employment of older workers; programs in which one or more non-profit corporations collaborate with a community college to prepare low income or underemployed adults for employment in the workforce of regional emerging industries; support of education and workforce development initiatives that collaborate with the efforts or initiatives of public educational institutions, including development of stackable certificates and credentials, non-semester-based modular programs and accelerated associate degree programs, provided however that the grants issued from this fund shall serve to supplement, and not supplant, ongoing initiatives at community colleges; providing sector-based training including developmental education and certification programs; providing student support services; using competency-based placement assessments; leveraging regional resources, including shared equipment and funding; partnering with 2 or more training organizations in a region; adopting innovative approaches to high intensity training methodologies of periods of less than 6 months duration; and partnering with 2 or more employers in a region. This portion of the grant fund may also be used to develop regional centers of excellence, which shall be aligned to the commonwealth’s economic development strategies to meet the needs of employers in high growth sectors including, but not limited to, health care, life sciences, information technology and advanced manufacturing. Each center of excellence shall be located at a community college, state university, vocational or technical high school or collaboration between these entities.
A project grant program shall be designed by Commonwealth Corporation, in consultation with a middle skills subcommittee of the advisory committee, which shall include, at a minimum, a representative from the business community to be appointed by the secretary of labor and workforce development; the director of the Center for Labor Market Studies at Northeastern University or a designee; a representative of adult basic education or non-traditional college students in the commonwealth to be appointed by the secretary of education; the Massachusetts Workforce Board Association; and the Massachusetts AFL-CIO, as well as any representatives of the other mandatory advisory committee constituencies under paragraph (b).
SECTION 41. Said section 2WWW of said chapter 29, as amended by said section 105 of said chapter 3, is hereby further amended by striking out subsection (k) and inserting in place thereof the following subsection:-
(k) The director of workforce development and the advisory committee established under paragraph (b) shall examine and make an ongoing assessment of the effectiveness of the grant fund, considering any similar educational or workforce development grant programs funded by the commonwealth. The director and committee shall encourage coordination of existing workforce development initiatives and strategies of employers and employer associations, local workforce investment boards, labor organizations, community-based organizations, including adult basic education providers; institutions of higher education, vocational education institutions, one-stop career centers, local workforce development entities, and nonprofit education, training or other service providers, and, when applicable, shall inform grant applicants of the availability and eligibility for other workforce training funds. The establishment of the Workforce Competitiveness Trust Fund shall not be determined to replace, displace or serve as a substitute for any other workforce training fund, including community college workforce development programs or the Workforce Training Fund established in section 2RR, and award of any grant funds from the Workforce Competitiveness Trust Fund shall not make an applicant ineligible for any other funds.
SECTION 42. Said section 2WWW of said chapter 29 is hereby further amended by adding the following subsection:-
(l) Each grant recipient shall submit an annual report for the duration of the program or partnership funded through a grant to the committee for its review. Before grants are awarded, the Commonwealth Corporation shall reach agreement with each eligible entity that receives a grant on performance measures and indicators that will be used to evaluate the performance of the eligible entity in carrying out the activities described in their application.
SECTION 43. Chapter 40 of the General Laws is hereby amended by striking out section 59, as appearing in the 2010 Official Edition, and inserting in place thereof 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 1 or more cities or towns, and pursuant to regulations issued by the economic assistance coordinating council established under section 3B of chapter 23A, may adopt and prosecute a tax increment financing agreement hereinafter referred to as TIF agreement, and do any and all things necessary thereto; provided, however, that the TIF agreement:
(i) includes a description of the parcels to be included in the agreement; provided, however, that each area so designated is wholly within an economic target area or an area presenting exceptional opportunities for increased economic development, as defined in section 3D of chapter 23A, and in regulations adopted by the economic assistance coordinating council; provided, further, that in the case of a TIF area that includes parcels located in 1 or more city or towns, the areas included in the TIF agreement 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 agreement as of the date of adoption of the TIF agreement; provided, however, that in the case of public construction as aforesaid, the TIF agreement shall include a detailed projection of the costs thereof and a betterment schedule for the defrayal of such costs; provided, further, that the TIF agreement 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 clause (v); and provided, further, that in the case of private construction as aforesaid, the TIF agreement shall include the types of industrial and commercial developments which are projected to occur within such TIF area, with documentary evidence of the level of commitment therefore, including but not limited to, architectural plans and specifications as required by said regulations;
(iii) authorizes tax increment exemptions from property taxes, under clause Fifty-first of section 5 of chapter 59, for a specified term not to exceed 20 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 of the real property under clause (v); provided, however, that the TIF agreement shall specify the level of the exemptions expressed as exemption percentages, not to exceed 100 per cent to be used in calculating the exemptions for the parcel, and for personal property situated on that parcel, as provided under said clause Fifty-first of said section 5 of said chapter 59; provided, further, that the exemption for each parcel of real property shall be calculated using an adjustment factor for each fiscal year of the specified term equal to the product of the inflation factors for each fiscal year since the parcel first became eligible for an exemption under this clause; provided, further that the inflation factor for each fiscal year shall be a ratio:
(a) the numerator of which shall be the total assessed value of all parcels of commercial and industrial real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment for the current fiscal year attributable to the commercial and industrial real estate as determined by the commissioner of revenue under subsection (f) of section 21C of chapter 59; and
(b) the denominator of which shall be the total assessed value for the preceding fiscal year of all the parcels included in the numerator; provided, however, that the ratio shall not be less than 1;
(iv) establishes a maximum percentage of the costs of any public construction, referenced in clause (ii) and initiated subsequent to the adoption of the TIF agreement, 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 clause (iii) during the period of such parcel’s eligibility for exemption from annual property taxes pursuant to clause fifty-first of section 5 of chapter 59, notwithstanding the provisions of chapter 80 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 area; 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 agreement in accordance with the provisions of clause (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 clauses (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 1 board, agency or officer of the city or town the authority to execute the agreement in accordance with the provisions of clause (v);
(vii) is certified as an approved TIF agreement by the economic assistance coordinating council pursuant to section 3D of chapter 23A and regulations adopted by said council; provided, however, that the economic assistance coordinating council shall certify in its vote that the agreement is consistent with the requirements of this section and section 3D and will further the public purpose of encouraging increased industrial and commercial activity in the commonwealth;
(viii) includes the right for the city or town to revoke its designation of the TIF agreement pursuant to section 3F of chapter 23A; provided, such revocation shall not affect agreements relative to property tax exemptions and limitations on betterments and special assessments pursuant to said clause (v) which were executed prior thereto; and
(ix) requires of an owner of a parcel pursuant to clause (v) to submit to the city or town clerk and the economic assistance coordinating council a report detailing the status of the construction laid out in the agreement, the current value of the property, and the number of jobs created to date as a result of the agreement; provided, however, that a report shall be filed every 2 years for the term of the tax increment exemption allowed under clause Fifty-first of section 5 of chapter 59; and provided, further, that a final report shall be filed in the final year of the exemption.
The board, agency or officer of the city or town authorized pursuant to clause (vi) to execute agreements shall forward to the board of assessors a copy of each approved TIF agreement, together with a list of the parcels included therein.
SECTION 44. Chapter 40J of the General Laws is hereby amended by inserting after section 4F the following section:-
SECTION 4G. (a) The general court finds that scientific and technology research and development conducted at higher education institutions and non-profit research institutions in the commonwealth is vital to identifying and developing new knowledge that leads to innovations that drive the commonwealth’s economy, promote economic development and job growth opportunities throughout the diverse regions of the commonwealth, improve the quality of life for those living in the commonwealth and throughout the world, and help strengthen the commonwealth’s global competitiveness. Research leadership and the capacity to create new jobs in major growth sectors including but not limited to life sciences, IT and cybersecurity and advanced manufacturing in turn depends on a new generation of academic and industry partnerships aimed at solving national and global challenges.
(b) In order to assist in fostering additional scientific and technology research and development in the state, there is hereby established a fund to be known as the Scientific and Technology Research and Development Matching Grant Fund, hereinafter referred to as the matching grant fund, to which shall be credited the proceeds of bonds or notes of the commonwealth issued for the purpose, and any appropriations designated by the general court to be credited thereto. The matching grant fund shall be administered by the corporation. The corporation shall hold the matching grant fund in an account or accounts separate from other funds of the corporation. The purpose of the matching grant fund is to provide matching funds for capital expenditures to be made in connection with projects which are sponsored by the University of Massachusetts, research universities, non-profit entities, or non-profit research institutions in the commonwealth for scientific or technology research and development and funded in part by the federal government or other public or private funds including, but not limited to, venture capital; provided, that any grant awarded in accordance with this section shall leverage at least $3, in the aggregate during activities funded by such grant, from sources other than an agency as defined by section 39 of chapter 6, for each dollar granted; provided further, funds expended specifically for this matching fund from the higher education bond bill, established by section 258 of the acts of 2008, shall not count towards the $3 of financing that is required for the matching fund; provided further, that prior to awarding any grant under this section the corporation shall determine that the grant will advance the finding in paragraph (a); provided further, that priority shall be given to large-scale, long-term research and development activities that have the greatest potential to support scientific and technological innovation and stimulate economic and employment opportunities in the commonwealth through industry partnerships; and provided, further that at least 50 per cent of the grant funds under this section shall be reserved for award over the term of each authorization or appropriation, subject to qualification, to the University of Massachusetts. The University of Massachusetts may, if it deems necessary to help ensure efficient and effective research and development efforts, enter into collaborative agreements with other higher education institutions in the commonwealth to undertake parts of any research and development project for which grant funding under this section is sought.
(c) To support effective planning and implementation of the matching grant fund, the corporation shall develop program guidelines or regulations in consultation with the University of Massachusetts and such other institutions or persons as deemed appropriate by the corporation. The corporation shall annually file a report with the joint committee on higher education and the house and senate committees on ways and means detailing the grants awarded under this section.
SECTION 45. section 2 of chapter 40Q of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out, in lines 11 to 14, inclusive, the words “; (2) the development district has been certified as an approved development district by the economic assistance coordinating council established in section 3B of chapter 23A and pursuant to regulations adopted by said council.”
SECTION 46. section 2 of chapter 40Q of the General Laws, as so appearing, is hereby amended by striking in its entirety paragraph (a) and inserting in place thereof the following paragraph:-
(a) 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 may designate development districts within the boundaries of the city or town provided, however, a development district may consist of 1 or more parcels or lots of land, whether or not contiguous, or 1 or more buildings or structures, whether or not adjacent, on 1 or more parcels of land, provided that the total area of all development districts shall not exceed 25 per cent of the total area of a city or town; and provided that the boundaries of a development district may be altered only after meeting the requirements for adoption under this subsection. The city or town shall find that the designation of the development district is consistent with the requirements of this section and will further the public purpose of encouraging increased residential, industrial and commercial activity in the commonwealth.
SECTION 47. section 2 of chapter 43D of the General Laws, as so appearing, is hereby amended by striking the definition of “Priority development site” and inserting in place thereof the following definition:-
“Priority development site”, a privately or publicly owned property that is: (1) eligible under applicable zoning provisions, including special permits or other discretionary permits, for the development or redevelopment of a building at least 50,000 square feet of gross floor area in new or existing buildings or structures; and (2) designated as an appropriate priority development site by the board. Several parcels or projects may be included within a single priority development site. Wherever possible, priority development sites should be located adjacent to areas of existing development or in underutilized buildings or facilities or close to appropriate transit services.
SECTION 48. Subsection (g) of section 6 of chapter 62 of the General Laws, as most recently amended by section 65 of chapter 68 of the acts of 2011, is hereby amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-
(1) A credit shall be allowed against the tax liability imposed by this chapter, to the extent authorized by the economic assistance coordinating council established in section 3B of chapter 23A, up to an amount equal to 50 per cent of such liability in any taxable year; provided, however, that the 50 per cent limitation shall not apply where the credit is refundable under paragraph (5): (i) for certified expansion projects and certified enhanced expansion projects, as defined in sections 3A and 3F of said chapter 23A, an amount up to 10 per cent; (ii) for certified manufacturing retention projects, as defined in said sections 3A and 3F of said chapter 23A, an amount up to 40 per cent of the cost of property that would qualify for the credit allowed by section 31A of chapter 63 if the property were purchased by a manufacturing corporation or a business corporation engaged primarily in research and development and used exclusively in a certified project, as defined in said sections 3A and 3F of said chapter 23A; and (iii) for certified job creation projects, as defined in said sections 3A and 3F of said chapter 23A, an amount up to $5,000 per job created; provided, however, that the total award per project shall be no more than $1,000,000; provided, however, that the economic assistance coordinating council may award a greater credit in an amount not to exceed $10,000 per job created under the project if the jobs created are located in a gateway municipality, as defined by section 3A of chapter 23A; and provided, however, that a credit under this clause (iii) shall be allowed for the year subsequent to that in which the jobs are created. A lessee may be eligible for a credit pursuant to this subsection for real property leased pursuant to an operating lease. Notwithstanding any contrary provisions in section 3F of chapter 23A, if such property is disposed of or ceases to be in qualified use within the meaning of section 31A or ceases to be used exclusively in a certified project before the end of the certified project's certification period, or if a project’s certification is revoked, the recapture provisions of subsection (e) of section 31A shall apply. In the case of revocation of projects certified before January 1, 2012 because of a material variance, the revocation shall take effect on the first day of the tax year in which a material variance occurred as determined by the economic assistance coordinating council. If such property is disposed of after the certified project's certification period but before the end of such property's useful life, the recapture provisions of subsection (e) of section 31A shall apply. The expiration of a certified project's certification shall not require the application of the recapture provisions of subsection (e) of section 31A.
Notwithstanding any contrary provisions in subsection (e) of section 31A, for projects certified after January 1, 2012, if the economic assistance coordinating council revokes a project’s certification, the total amount of credits taken under this section shall be recaptured and added back as additional tax in the taxable year in which the economic assistance coordinating council makes the determination to revoke.
SECTION 49. The second paragraph of paragraph (1) of subsection (g) of said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out the second sentence .
SECTION 50. The third paragraph of said paragraph (1) of said subsection (g) of said section 6 of said chapter 62, as so appearing, is hereby amended by striking out the fourth sentence and inserting in place thereof the following sentence:- To the extent applicable, paragraph (3) of section 3F of said chapter 23A shall apply to tax benefits awarded under this section.
SECTION 51. Said subsection (g) of said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out paragraph (5) and inserting in place thereof the following paragraph:- 1403
(5) If a credit allowed under clauses (ii) and (iii) of paragraph (1) for certified manufacturing retention projects and certified job creation projects exceeds the tax otherwise due under this chapter, 100 per cent of the balance of such credit may, at the option of the taxpayer and to the extent authorized pursuant to the economic assistance coordinating council, be refundable to the taxpayer for the taxable year in which qualified property giving rise to that credit is placed in service by a manufacturing retention project or for the taxable year subsequent to the year in which the required jobs are added by the job creation project. If such credit balance is refunded to the taxpayer, the credit carryover provisions of paragraph (2) shall not apply.
SECTION 52. Said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out, in line 273, the figure “2013” and inserting in place thereof the following figure:- 2015.
SECTION 53. Said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out, in line 278, the figure “2014” and inserting in place thereof the following figure:- 2016.
SECTION 54. section 6J of said chapter 62, as so appearing, is hereby amended by striking out, in line 39, the figure “$50,000,000” and inserting in place thereof the following figure:- $60,000,000.
SECTION 55. Chapter 62 of the General Laws is hereby amended by inserting after section 6L the following section:-
SECTION 6M. (a) The purpose of this section shall be to enable local residents and stakeholders to work with and through community development corporations to partner with nonprofit, public and private entities to improve economic opportunities for low and moderate income households and other residents in urban, rural and suburban communities across the commonwealth.
(b) For purposes of this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Community development corporation”, a corporation certified as a community development corporation by the department consistent with chapter 40H.
“Community investment plan”, an organizational business plan developed by a certified community development corporation that details its goals, outcomes, strategies, programs and activities for a 3 to 5 year period and its financial plans for supporting its strategy. The plan shall be designed to engage local residents and businesses to work together to undertake community development programs, projects and activities which develop and improve urban, rural or suburban communities in sustainable ways that create and expand economic opportunities for low and moderate income households. The specific format and content of a community investment plan may be adapted to the particular organization and community, but shall include the following elements:
(i)a description of the community to be served by the organization, including the neighborhoods, towns, or cities to be served as well as any particular constituencies that the organization is dedicated to serving;
(ii)a description of how community residents and stakeholders were engaged in the development of the plan and their role in monitoring and implementing the organization’s activities during the time period of the plan;
(iii)the goals sought to be achieved during the time period of the plan, including how low and moderate income households or low and moderate income communities will benefit and how the entire community will benefit;
(iv)the activities to be pursued to achieve those goals;
(v)the manner in which success shall be measured and evaluated;
(vi)a description of the collaborative efforts that shall support implementation of the plan, including collaborative efforts with nonprofit, for-profit or public entities;
(vii)a description of how the different activities within the plan fit together and how the entire plan fits into a larger strategy or vision for the community;
(viii)the financial strategy to be deployed to support these activities; and
(ix)other information regarding the history and track record of the organization as determined by the department.
“Community investment tax credit”, the tax credit described in subsection (d).
“Community investment tax credit allocation”, an award provided by the department through a competitive process that enables the recipient of the allocation to solicit and receive qualified investments from taxpayers and to provide those taxpayers with a community investment tax credit.
“Community partner”, a community development corporation or a community support organization selected by the department through a competitive process to receive a community investment tax credit allocation.
“Community Partnership Fund”, a fund administered by a nonprofit organization selected by the department to receive qualified investments from taxpayers for the purpose of allocating such investments to community partners.
“Community support organization”, any nonprofit organization which is not a community development corporation but has a focus on and track record of providing capacity building services to community development corporations.
“Department”, the department of housing and community development.
“Gateway municipality”, a gateway municipality as defined in section 3A of chapter 23A.
“Low and moderate income community”, an economic target area as defined in section 3A of chapter 23A, an enhanced economic enterprise community or empowerment zone as designated by the United States Department of Housing and Urban Development, or 1 or more contiguous census tracts as designated by a city or town, in which either: (1) a majority of the households are low and moderate income households as defined herein; or (2) the unemployment rate is at least 25 per cent higher than the annual statewide average unemployment rate at a time when the statewide unemployment rate is less than or equal to 5 per cent or the unemployment rate is at least 10 per cent higher than the annual statewide average unemployment rate at a time when the statewide unemployment rate is greater than 5 per cent.
“Low and moderate income households”, households which have incomes that do not exceed 80 per cent of the median income for the area, with adjustments made for smaller and larger families, as such median shall be determined from time to time by the Secretary of Housing and Urban Development pursuant to 42 U.S.C. 1437(a)(B)(2) or any successor legislation and the regulations promulgated thereunder.
“Qualified investment”, a cash contribution made to a specific community partner to support the implementation of its community investment plan or to a community partnership fund, as defined by this section.
“Taxpayer”, any person, firm, or other entity subject to the personal income tax under the provisions of this chapter or any corporation subject to an excise under the provisions of chapter 63.
(c) The department shall promulgate regulations concerning the process by which community development corporations apply to become a community partner and receive qualified investments, provided that:
(1) The department shall design a competitive process to review applications by community development corporations and community support organizations. Community support organizations may qualify, provided that no more than 2 such organizations may, at any given time, be awarded community investment tax credits.
(2) The selection process shall favor community development corporations with the highest quality community investment plans and strong track records and shall strive to ensure that all regions of the commonwealth are able to fairly compete for allocations, including gateway municipalities, rural areas and suburban areas. At least 30 per cent of the community partners shall be located in or serving gateway municipalities and at least 20 per cent of the community partners shall be located in or serving rural areas, as defined by the department, unless the department finds that there are not a sufficient number of qualified applications from those areas.
(3) The department shall implement at least one such allocation process each year. Each tax credit allocation shall be valid for a period of up to 3 years, contingent upon the community partner satisfactorily meeting the reporting requirements of the department. Community partners who have not fully utilized their community investment tax credit allocations within 3 years may apply to the department for a 1 year extension. Community investment tax credit allocations may be revoked after 2 years from the date of the award by the department if (i) the community partner has been unable to secure donation commitments for at least 50 per cent of total allocation by that time, (ii) if the community partner is found to be in noncompliance with this statute or the department’s regulations promulgated hereunder, (iii) if the community partner is determined by the department to be making inadequate progress on its community investment plan, or (iv) for other good cause as determined by the department.
(4) No community partner shall receive a community investment tax credit allocation of less than $50,000 or more than $150,000 in any 1 fiscal year. No community partner may receive a subsequent allocation unless it has utilized at least 95 per cent of the 3 year total of any prior allocation.
(5) A community partner may receive qualified investments directly from 1 or more taxpayers or it may transfer some or all of its community investment tax credit allocation to a community partnership fund and receive qualified investments from that fund.
(6) Before receiving a qualified investment from a taxpayer or from a community partnership fund, the community partner shall first receive certification from the department that it has been awarded a community investment tax credit allocation.
(7) The department may authorize up to 2 nonprofit organizations to operate community investment partnership funds. In selecting 1 or 2 nonprofit organizations to serve in this function the department shall seek organizations which demonstrate that they have the capacity to solicit, administer and re-grant qualified investments and can advance the purposes of this statute.
(8) The department, in consultation with the commissioner shall prescribe regulations necessary to carry out this subsection. Such regulations shall include requirements for annual reports from community partners and community partnership funds regarding outcomes achieved during the prior year.
(d) There is hereby established a Massachusetts community investment tax credit.
(e) The commissioner, in consultation with the department, shall authorize annually an amount not to exceed $2,000,000 in 2013, $4,000,000 in 2014, and $6,000,000 in 2015 and each year thereafter for the community investment tax credit.
(f) The total of all tax credits available to a taxpayer pursuant to this section shall not exceed $1,000,000 in any 1 tax year and no tax credit shall be allowed to any taxpayer for participating in a qualified community investment activity of less than $1,000.
(g) A taxpayer that makes a qualified investment shall be allowed a credit, to be computed as hereinafter provided, against taxes owed to the commonwealth under chapter 62 or chapter 63 or other applicable law. The credit shall be equal to 50 per cent of the total qualified investments made by the taxpayer, subject to the cap described in paragraph (2) of this subsection. The department shall issue a certification to the taxpayer after the taxpayer makes a qualified investment. Such certification shall be acceptable as proof that the expenditures related to such investment qualify as qualified investment for purposes of the credit allowed under this section.
(h) The credit allowable under this section shall be allowed for the taxable year in which a qualified investment is made. A taxpayer allowed a credit under this section for a taxable year may carry over and apply against such taxpayer’s tax liability in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.
(i) Community investment tax credits allowed to a partnership or a limited liability company taxed as a partnership shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among the persons designated as partners, members or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of the entity.
(j) Taxpayers eligible for the community investment tax credit may, with prior notice to and in accordance with regulations adopted by the commissioner, transfer the credits, in whole or in part, to any taxpayer, and the transferee shall be entitled to apply the credits against the tax with the same effect as if the transferee had made the qualified investment itself. The transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferee’s tax liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, the carryover period shall not exceed 5 taxable years after the close of the taxable year during which the qualified investment was made as provided for in this section.
(k) The commissioner, in consultation with the department, shall prescribe regulations necessary to carry out the tax credit established in subsection (d).
SECTION 56. Subsection (a) of section 38N of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-
A corporation subject to tax under this chapter that participates in a certified project, as defined in sections 3A and 3F of chapter 23A, may take a credit against the excise imposed by this chapter to the extent authorized by the economic assistance coordinating council, established by section 3B of said chapter 23A, in an amount not to exceed 50 per cent of such liability in a taxable year; provided, however, that the 50 per cent limitation shall not apply if the credit is refundable under subsection (b): (i) for certified expansion projects and certified enhanced expansion projects, as defined in said sections 3A and 3F of said chapter 23A, an amount up to 10 per cent; (ii) for certified manufacturing retention projects, as defined in said sections 3A and 3F of said chapter 23A, an amount up to 40 per cent of the cost of any property that would qualify for the credit allowed by section 31A if the property were purchased by a manufacturing corporation or a business corporation engaged primarily in research and development and is used exclusively in a certified project, as defined in said sections 3A and 3F of said chapter 23A; and, (iii) for certified job creation projects, as defined in said sections 3A and 3F of said chapter 23A, an amount up to $5,000 per job created; provided, however, that the total award per project shall be no more than $1,000,000; provided, however, that the economic assistance coordinating council may award a greater credit in an amount not to exceed $10,000 per job created under the project if the jobs created are located in a gateway municipality, as defined by section 3A of chapter 23A; and provided, however, that a credit under this clause (iii) shall be allowed for the year subsequent to that in which the jobs are created A lessee may be eligible for a credit under this subsection for real property leased under an operating lease.
SECTION 57. The second paragraph of said subsection (a) of said section 38N of said chapter 63, as so appearing, is hereby further amended by striking out the second sentence.
SECTION 58. Said subsection (a) of said section 38N of said chapter 63, as so appearing, is hereby further amended by striking out the third paragraph and inserting in place thereof the following 2 paragraphs:- The credit allowed under this section may be taken by an eligible corporation; provided, however, that the credit allowed by section 31A or section 31H shall not be 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. Notwithstanding any contrary provisions in section 3F of chapter 23A, if such property is disposed of or ceases to be in qualified use within the meaning of section 31A or ceases to be used exclusively in a certified project before the end of the certified project's certification period, or if a certified project’s certification is revoked, the recapture provisions of subsection (e) of section 31A shall apply. In the case of revocation of projects certified before January 1, 2012, the revocation shall take effect on the first day of the tax year in which a material variance occurred as determined by the economic assistance coordinating council. If such property is disposed of after the certified project's certification period but before the end of such property's useful life, the recapture provisions of subsection (e) of section 31A shall apply. The expiration of a certified project's certification shall not require the application of the recapture provisions of subsection (e) of section 31A.
Notwithstanding any contrary provisions in subsection (e) of chapter 31A, for projects certified after January 1, 2012, if the economic assistance coordinating council revokes a project’s certification, the total amount of credits taken under this section shall be recaptured and added back as additional tax in the taxable year in which the economic assistance coordinating council makes the determination to revoke.
SECTION 59. The fourth paragraph of said subsection (a) of said section 38N of said chapter 63, as so appearing, is hereby further amended by striking out the fourth sentence and inserting in place thereof the following sentence:- To the extent applicable, paragraph (3) of section 3F of said chapter 23A shall apply to tax benefits awarded under this section.
SECTION 60. Said section 38N of said chapter 63, as so appearing, is hereby further amended by striking out subsection (b) and inserting in place thereof the following subsection:-
(b) If a credit allowed under clauses (ii) and (iii) of subsection (a) for certified manufacturing retention projects and certified job creation projects exceeds the tax otherwise due under this chapter, 100 per cent of the balance of such credit may, at the option of the taxpayer and to the extent authorized pursuant to the economic assistance coordinating council, be refundable to the taxpayer for the taxable year in which qualified property giving rise to that credit is placed in service by a manufacturing retention project or for the taxable year subsequent to the year in which the required jobs are added by a job creation project. If such credit balance is refunded to the taxpayer, the credit carryover provisions of subsection (d) shall not apply. The amount of credit eligible to be refunded shall be determined without regard to the limitations in subsections (a) and (c).
SECTION 61. section 38O of said chapter 63, as so appearing, is hereby further amended by striking out, in lines 4 to 6, inclusive, the words “ opportunity area as determined by the economic assistance coordinating council established by section three B of chapter twenty-three A” and inserting in place thereof the following words: - target area as defined by section 3D of chapter 23A.
SECTION 62. section 38Q of said chapter 63, as so appearing, is hereby amended by striking out, in line 3, the figure “2013” and inserting in place thereof the following figure:- 2015.
SECTION 63. Said section 38Q of said chapter 63, as so appearing, is hereby further amended by striking out, in line 8, the figure “2014” and inserting in place thereof the following figure:- 2016.
SECTION 64. section 38R of said chapter 63, as so appearing, is hereby amended by striking out, in line 37, the figure “$50,000,000” and inserting in place thereof the following figure:- $60,000,000.
SECTION 64A. Subsection (c) of section 3 of chapter 63B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking said subsection and inserting in place thereof the following:—
(c) For purposes of this chapter, there shall be four required installments for each taxable year, except as otherwise provided by this chapter. The first installment shall be paid on or before the fifteenth day of the third month of the taxable year; the second installment shall be paid on or before the fifteenth day of the sixth month of the taxable year; the third installment shall be paid on or before the fifteenth day of the ninth month of the taxable year; and the fourth installment shall be paid on or before the fifteenth day of twelfth month of the taxable year. The amount of any installment shall be 25 percent of the required annual payment.
The term “required annual payment” means the lesser of (i) 90 per cent of the tax shown on the return for the taxable year or, if no return is filed, 90 per cent of the tax for such year, or (ii) 100 per cent of the tax shown on the return of the corporation for the preceding taxable year, or (iii) 90 per cent of the tax for the taxable year or, (iv) ninety per cent of the tax that would be required to be shown on the return for taxable year if the tax were determined by using the income apportionment percentage determined for the preceding taxable year under chapter 63. Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months or the corporation did not file a return for such preceding taxable year showing a liability for tax. Clause (ii) shall not apply in the case of a large corporation, as defined in section 6655 (g) of the Internal Revenue Code of the United States, as amended on January 1,1989 and in effect for the taxable year except for purposes of determining the amount of the first required installment for any taxable year; provided, however that any reduction in such first installment by reason of this provision shall be recaptured by increasing the amount of the next required installment by the amount of such reduction.
SECTION 64C. section 4A of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “sixty-five” in line 4 and inserting in place thereof the following:— 50
SECTION 64D. section 4A of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “ten” in line 9 and inserting in place thereof the following:— 25
SECTION 64E. section 4A of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “ninety” in line 14 and inserting in place thereof the following:— 25
SECTION 64F. section 4A of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “ten” in line 16 and inserting in place thereof the following:— 25
SECTION 64G. section 4B of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “thirty” in line 7 and inserting in place thereof the following:— 25.
SECTION 64H. section 4B of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “twenty-five” in line 10 and inserting in place thereof the following:— 25.
SECTION 64I. section 4B of chapter 63B of the General Laws, as so appearing, is hereby 1708 amended by striking the word “twenty-five” in line 13 and inserting in place thereof the following:— 25.
SECTION 664J. section 4B of chapter 63B of the General Laws, as so appearing, is hereby amended by striking the word “twenty” in line 15 and inserting in place thereof the following:— 25.
SECTION 65. section 57A of chapter 121B of the General Laws is hereby repealed.
SECTION 65A. section 25 of chapter 151A of the General Laws, as appearing in the 2010 Official Edition, is amended by inserting after subsection (j) the following new subsection (k):-
(k) Any week in which the individual is barred from working for, or being paid by, the employing unit by reason of the provisions of section 91(b) of chapter 32.
SECTION 66. section 14C of chapter 167 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out the third and fourth paragraphs and inserting in place thereof the following 3 paragraphs:-
The small business loan review boards shall meet on a regular basis or, as demand for their services requires, to review small business loan denials that applicants believe were unreasonably denied. Upon commencement of a review of a small business loan denial submitted by an applicant, the small business loan review board shall be required to report the results of their findings to the applicant within 30 days of submission or request of the review; provided however, that the board may, at its discretion, extend the review period to within 60 days of a submission or request. Upon making a determination for reason of denial, the small business loan review boards shall be required to provide information on their findings to the applicant and commissioner of banks and shall provide information to the applicant on alternative sources of financing, including information on any small business financing programs or other relevant programs offered by the commonwealth. The Commissioner shall file annual reports regarding the activities of the small business loan review boards with the chairs of the joint committee on community development and small business, chairs of the joint committee on economic development and emerging technologies, and chairs of the joint committee on revenue, on or before January 1.
In addition, the small business loan review boards shall conduct annual studies and issue annual reports on the availability of credit to small businesses within their regions and report back to the commissioner of banks on their findings. The reports shall be published and made available to the public through the website of the office of consumer affairs and business regulation or the small business website established under section 3 of Chapter 23A.
Notwithstanding the provisions of this chapter, the commissioner may promulgate rules and regulations governing the establishment, operation and procedures of said small business loan review boards. In addition, the commissioner shall be required to market and promote the small business loan review boards as a resource for small businesses located in the commonwealth.
SECTION 67. Item 6033-9013 of section 2 of chapter 246 of the acts of 2002 is hereby amended by inserting after the word “item”, in line 19, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8005 within the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 68. Item 6033-0428 of section 2B of chapter 291 of the acts of 2004 is hereby amended by inserting after the figure “$500,000”, in line 17, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8010 within the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 69. Item 6033-0499 of said section 2B of said chapter 291 is hereby amended by inserting after the word “item”, in line 19, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8015 within the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets. 1790
SECTION 70. Item 6001-0421 of section 2I of said chapter 291 is hereby amended by inserting after the word “item”, in line 43, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to the item 7002-8020 within executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 71. Item 1100-8000 of section 2B of chapter 123 of the acts of 2006 is hereby amended by inserting after the word “item”, in line 31, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to item 7005-8025 within the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committee on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 72. The definition "Public infrastructure improvements" in section 5 of chapter 293 of the acts of 2006 is hereby amended by inserting after the words " facilities", in line 6, the following words:- , parking garages.
SECTION 73. Subsection (d) of section 7 of chapter 293 of the acts of 2006, as amended by section 7 of chapter 129 of the acts of 2008, is hereby further amended by striking out, in line 2, the figure "$250,000,000" and inserting in place thereof the following:- $400,000,000, excluding bonds issued to refinance bonds previously issued under section 6.
SECTION 74. The second sentence of subsection (e) of said section 7 of said chapter 293, as appearing in section 7 of said chapter 129, is hereby amended by striking out, in line 3, the figure "2" and inserting in place thereof the following figure:- 4
SECTION 75. Said chapter is hereby further amended by inserting after section 12A the following section:-
SECTION 12B. Notwithstanding any other provision of this act, new revenue and new state tax revenues may, respectively, and to the extent and in the manner approved by the secretary with consideration of economic conditions and the characteristics of the project, include revenue and state tax revenue attributable to construction-related activity and purchases in connection with an economic development project, and all calculations of any matter under the act, including, without limitation, calculation of infrastructure assessments and shortfalls, shall reflect such inclusion in the manner approved by the secretary. The commissioner shall certify the amount of new state tax revenues attributable to such construction-related activity and purchases in the manner and at the times specified in the secretary's certification of the economic development project.
SECTION 76. Item 6033-0887 of section 2B of chapter 86 of the acts of 2008 is hereby amended by inserting after the word “bridge”, in line 6, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to the item 7002-8030 within executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 77. Item 7004-0035 of section 2 of chapter 119 of the acts of 2008 is hereby amended by inserting after the word “department”, in line 14, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to the item 7005-8035 within executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred 1865 to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 78. section 2WWW of Chapter 29 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after fifth paragraph the following paragraph:-
A portion of the grant fund shall be used to address the gap between the skills held by workers and the skills needed by employers for jobs that require more than a high school diploma but less than a 4-year degree. Grants awarded under this program shall focus on building relationships and partnerships among geographic clusters of high schools, vocational-technical schools, community colleges, state universities, institutions of higher education, local employers, industry partners, local workforce investment boards, and workforce development entities, in order to create multiple and seamless pathways to employment through enhanced coordination of existing institutions and resources. Each cluster shall designate 1 entity or organization as the lead partner for each cluster and approved procurements shall be jointly applied for by, at a minimum, a public educational institution including a community college, at least one regional workforce investment board, and at least one regional employer in a high growth sector. Grants made under this program shall include consideration of, but not be limited to: defining and establishing the process for students to transition from adult basic education programs to college-based programs; programs accessible to working, unemployed or underemployed adults; support of education and workforce development initiatives that collaborate with the efforts or initiatives of public educational institutions, including development of stackable certificates and credentials, non-semester-based modular programs and accelerated associate degree programs, provided however that the grants issued from this fund shall serve to supplement, and not supplant, ongoing initiatives at community colleges; providing sector-based training including developmental education and certification programs; providing student support services; using competency-based placement assessments; leveraging regional resources, including shared equipment and funding; partnering with 2 or more training organizations in a region; and partnering with 2 or more employers in a region. This portion of the grant fund may also be used to develop regional centers of excellence, which shall be aligned to the commonwealth’s economic development strategies to meet the needs of employers in high growth sectors, including but not limited to, health care, life sciences, information technology and advanced manufacturing. Each center of excellence shall be located at a community college, state university, vocational or technical high school or collaboration between these entities.
A project grant program shall be designed by Commonwealth Corporation, in consultation with a middle skills subcommittee of the fund committee, which shall include, at a minimum, a representative from the business community to be appointed by the secretary of labor and workforce development; the director of the Center for Labor Market Studies at Northeastern University or a designee; a representative of adult basic education or non-traditional college students in the commonwealth to be appointed by the secretary of education; the Massachusetts Workforce Board Association; a representative from a non-profit trade association with a state approved apprenticeship program and the Massachusetts AFL-CIO, as well as any representatives of the other mandatory advisory committee constituencies under paragraph (b).
SECTION 79. Item 6033-0877 of section 2B of chapter 303 of the acts of 2008, as amended by section 33 of chapter 26 of the acts of 2009, is hereby amended by inserting after the word “item”, in line 12, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8045 within the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 80. Item 6033-0887 of said section 2B of said chapter 303, as amended by section 34 of said chapter 26, is hereby amended by inserting after the word “bridges”, in line 6, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to the item 7002-8040 within executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 81. Item 6001-0803 of section 2C of chapter 303 of the acts of 2008 is hereby amended by inserting after the word “Holyoke”, in line 23, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, as established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8050 within the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 82. Item 6001-0817 of said section 2C of said chapter 303 is hereby amended by inserting after the word “purpose”, in line 20, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to the item 7002-8055 within executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 83. Item 1100-8020 of section 2C of chapter 304 of the acts of 2008, is hereby amended by inserting after the word “applicable”, in line 35, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8060 within the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committees on bonding, capital expenditures and state assets.
SECTION 84. Item 6001-0817 of section 2B of chapter 240 of the acts of 2010, as amended by section 1 of chapter 412 of the acts of 2010 is hereby amended by inserting after the figure “2008”, in line 24, the following words:- ; provided, that after April 1, 2012 this item shall be used for the MassWorks infrastructure program, established by section 63 of chapter 23A of the General Laws; provided further, that any uncommitted balance as of April 1, 2012 from the aforementioned item or its successor item established as a result of chapter 25 of the acts of 2009 shall be transferred to item 7002-8060 within the executive office of housing and economic development; provided further, that any unexpended balance as of September 1, 2012 from the aforementioned item shall be transferred to the executive office of housing and economic development; and provided further, that before October 1, 2012 the executive office of housing and economic development shall submit a report on the amount of authorization expended from this item before April 1, 2012; provided further, that said report shall detail awards expected to utilize this authorization after April, 1, 2012 and the schedule plan for completing awards; and provided further that said report shall be delivered to the house and senate committees on ways and means and the house and senate committee son bonding, capital expenditures and state assets.
SECTION 85. section 171 of said chapter 240 is hereby amended by striking out, in lines 4 and 5, the words “$25,000,000 and not more than $50,000,000 in banks or financial institutions” and inserting in place thereof the following words:- $50,000,000 and not more than $100,000,000 in banks, financial institutions, or other investment funds
SECTION 86. section 173 of chapter 240 of the acts of 2010 is hereby amended by striking the definition of “Tolling period” and inserting place thereof the following definition:-
“Tolling period”, the period beginning August 15, 2008, and continuing through August 15, 2012.
SECTION 87. Subsection (b) of said section 173 of said chapter 240 is hereby amended by striking out, in line 2, the figure “2” and inserting in place thereof the following figure:- 4.
SECTION 88. Chapter 68 of the acts of 2011 is hereby amended by striking out section 171 and inserting in place thereof the following section:-
SECTION 171. (a) Notwithstanding any general or special law to the contrary, after complying with clause (a) of section 5C of chapter 29 of the General Laws, the comptroller shall dispose of the consolidated net surplus in the budgetary funds for fiscal year 2012 by transferring said funds as follows: (a) $10,000,000 shall be transferred to the Massachusetts Life Sciences Investment Fund established by section 6 of chapter 23I of the General Laws; (b) $10,000,000 shall be transferred to the Workforce Competitiveness Trust Fund, established in section 2 WWW of chapter 29; and (c) any amount remaining after the transfers pursuant to clauses (a) and (b) shall be transferred to the Commonwealth Stabilization Fund established pursuant to section 2H of chapter 29 of the General Laws.
(b) All transfer pursuant to this section shall be made from the undesignated fund balances in the budgetary funds proportionally from the undesignated fund balances; provided, however, that no such transfer shall cause a deficit in any of the funds.
SECTION 89. To meet expenditures necessary in carrying out section 2, the state treasurer shall, upon the request of the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $25,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, the Massachusetts Technology Park Corporation Scientific and Technology Research and Development Matching Grant Fund Act of 2011, and shall be issued for a maximum term of years, not exceeding 30 years as the governor may recommend to the general court under section 3 of Article LXII of the Amendments to the Constitution. The bonds shall be payable not later than June 30, 2048. All interest and payments on account of principal on these obligations shall be payable from the General Fund. Bonds and interest on bonds issued under this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth.
SECTION 91. The Commonwealth Corporation shall study and report on workforce development, education and skills training in the commonwealth with the objective of establishing baseline data for middle-skill training completion and credential attainment rates for all students at public and private colleges and universities, vocational, technical, apprenticeship and community-based training programs, including adults and those enrolled in workforce training leading to industry-recognized certification. The Commonwealth Corporation shall coordinate its reporting with existing efforts of the department of elementary and secondary education, the department of higher education, including any applicable work of the vision project, the department of labor and workforce development, the state workforce investment board and the Massachusetts community colleges executive office. The report shall include, but not be limited to, an examination of the feasibility and impact of all relevant workforce development strategies and programs including, but not limited to, ways to leverage and shape education and training to maximize responsiveness to industry needs and streamline or restructure educational and training opportunities to enable faster and increased rates of skill, credential, and educational attainment.
The Commonwealth Corporation shall file said report of its findings with the house and senate committees on ways and means, the joint committee on community development and small business, the joint committee on education, joint committee on higher education, the joint committee on economic development and emerging technologies, and the joint committee on labor and workforce development no later than December 31, 2012.
SECTION 92. Notwithstanding any general or special law to the contrary, the University of Massachusetts Building Authority shall be allowed to enter into long-term leases for the purposes of alleviating educational space overcrowding at university campuses and for the purpose of stimulating economic development in gateway municipalities, as defined by section 3A of chapter 23A of the General Laws, across the commonwealth. The University of Massachusetts Building Authority shall report annually to the house and senate committees on ways and means a list of any square footage leased pursuant to this section, the educational programs offered in said square footage, and the economic development projects leveraged by the individual leases in each gateway municipality.
SECTION 93. Notwithstanding the last paragraph of section 2H of chapter 29 of the General Laws, $4,000,000 received from proceeds of one-time settlements or judgments that would otherwise be transferred to the Commonwealth Stabilization Fund shall instead be deposited in the Smart Growth Housing Trust Fund, established in section 35AA of chapter 10 of the General Laws.
SECTION 94. The commissioner of revenue, in consultation with the department of housing and community development, shall review the effectiveness of the community investment tax credit as it relates to the purposes set forth in section 6M of chapter 62 of the General Laws and shall file a report, together with any recommendations for legislative changes to the tax credit, to the joint committee on revenue, the joint committee on economic development and emerging technologies, the chairs of the joint committee on community development and small business and the house and senate ways and means committees no later than January 1, 2019 and every 6 years thereafter, as necessary.
SECTION 95. section 55 shall take effect on January 1, 2013.
SECTION 96. Subsection (b) of section 12 of Chapter 90D of the General Laws is hereby amended by adding at the end thereof, the following new sentence:-
This section shall not apply to a vehicle described in subsection (e) of section 20 of this chapter.
SECTION 97. section 13 of Chapter 90D of the General Laws is hereby amended by striking subsection (a) and inserting in place thereof the following:-
(a) Except as provided for in subsection (e) of section 20, the applicant is not the owner of the vehicle; or
SECTION 98. section 15 of Chapter 90D of the General Laws is hereby amended by striking subsection (a) and inserting in place thereof the following:-
SECTION 15. (a) Except as provided for in subsection (e) of section 20, if an owner of a vehicle for which a certificate of title has been issued under this chapter transfers his interest therein, other than by the creation of a security interest, he shall, at the time of the delivery of the vehicle, execute an assignment including the actual odometer reading and warranty of title to the transferee in the space provided therefore on the certificate, or such other form as the registrar shall prescribe, and cause the certificate and assignment to be mailed or delivered to the transferee or to the registrar.
SECTION 99. section 19 of Chapter 90D of the General Laws is hereby amended by striking subsection (a) and inserting in place thereof the following:-
SECTION 19. (a) The registrar, upon receipt of a properly assigned certificate of title, except as provided for in subsection (e) of section 20, with an application for a new certificate of title, the required fee and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner and mail it to the first lienholder named in it or, if none, to the owner. If in accordance with subsection (e) of section 20, the outstanding certificate of title is not delivered to him, the registrar shall make demand therefor from the holder thereof.
SECTION 100. section 20 of Chapter 90D of the General Laws is hereby amended by striking subsection (a) and inserting in place thereof the following:-
SECTION 20. (a) Except as provided for in subsection (e), whenever an insurer acquires ownership of a motor vehicle which it has determined to be a total loss salvage motor vehicle, it shall, within ten days from the date of acquisition, surrender the certificate of title to the registrar and shall apply for a salvage title.
SECTION 100B. section 20 of Chapter 90D of the General Laws is hereby further amended by adding at the end thereof the following new subsection:-
(e)(1) Whenever an insurer acquires a motor vehicle which it has determined to be a total loss salvage motor vehicle but is unable to obtain the certificate of title, the insurer may apply for a salvage title in its name without surrendering the certificate of title. Such application shall be accompanied by evidence that the insurer has paid a total loss claim on the vehicle and made at least 2 written attempts, addressed to the last known owner of the vehicle and any known lienholder, to obtain the certificate of title. In lieu of a salvage title, the insurer may similarly apply for a certificate of title in its name for a vehicle if the age of the vehicle precludes issuance of a salvage title.
(2) Whenever an insurer requests that Class 2 or Class 3 dealer take possession of a motor vehicle that is the subject of an insurance claim and subsequently a total loss claim is not paid by the insurer with respect to such motor vehicle, the Class 2 or Class 3 dealer may, if such motor vehicle has been abandoned at the facility of the Class 2 or Class 3 dealer for more than 30 days, apply for a salvage title in such dealer’s name without surrendering the certificate of title. Such application shall be accompanied by evidence that the Class 2 or Class 3 dealer made at least 2 written attempts, addressed to the last known owner of the vehicle and any known lienholder, to have the vehicle removed from the facility. In lieu of a salvage title, the Class 2 or Class 3 dealer may similarly apply for a certificate of title in the dealer’s name for a vehicle if the age of the vehicle precludes issuance of a salvage title.
SECTION 101. section 20A of Chapter 90D of the General Laws is hereby amended by striking subsection (a) and inserting in place thereof the following:-
SECTION 20A. (a) The application for the salvage title shall be made by the owner, except as provided for in subsection (e) of section 20, to the registrar on such form or forms as the registrar shall prescribe and shall be accompanied by: (1) a properly assigned certificate of title, except as provided for in subsection (e) of section 20,; (2) any other information and documents the registrar may reasonably require to establish ownership of the vehicle and the existence or nonexistence of a lien to the extent not inconsistent with subsection (e) of section 20; and (3) the required fee.
SECTION 102. Notwithstanding any general or special law to the contrary, the commissioner of the division of capital asset management and maintenance, in consultation with the president of Massasoit community college and the department of higher education, is hereby authorized to enter into a lease or other contractual arrangement with Marine and Environmental Education Alliance, Inc., a not-for-profit corporation, to allow the college to utilize facilities now or hereafter owned, leased or operated by the corporation for the purpose of providing post- secondary career and training opportunities in marine and environmental studies. The lease or other contractual arrangement shall be for a term, including extensions, of up to 30 years, and shall be on such terms and conditions as the commissioner of the division of the division of capital asset management and maintenance, in consultation with the president of Massasoit community college and the department of higher education, deems appropriate.
SECTION 103. Notwithstanding anything in subsection (g) of section 3 of chapter 152 of the acts of 1997 to the contrary, in addition to the construction and development of an expansion to the hotel located in the northeast corner of the convention center development area, as defined in said chapter 152, not more than 7 additional hotels may be constructed and developed within a BCEC Hotel Zone, so called, within the city of Boston, such BCEC Hotel Zone to include the portion of the convention center finance district located south of Summer Street and east of Fort Point Channel, provided that (i) such hotels shall include not more than a total of 2700 rooms, including not more than 1 additional headquarters hotel, so called, with not more than 1200 rooms; and (ii) the developer or operator of each such hotel shall enter into a contract with the Massachusetts Convention Center Authority with provisions regarding the cooperative marketing, pricing and use of such hotels to encourage the use of the Boston convention and exhibition center and incorporating community input from the neighborhoods surrounding the BCEC Hotel Zone.
SECTION 104. In accordance with section 38N of chapter 190 of the acts of 1982, as amended, capital facility projects described in the report titled “Top 5 Initiative - Phase 1 Feasibility Study and Program,” dated May 16, 2012 shall be filed with the clerks of the senate and house of representatives and the senate and house committees on ways and means. Said capital facility projects and the acquisition of lands for the purpose of said projects are facilities of the Authority and may be funded pursuant to section 10(c)(iv) of chapter 152 of the acts of 1997, as amended.
SECTION 105: The joint committee on telecommunications, utilities and energy, in consultation with the state 911 department and department of revenue, shall study and report on the amount of revenue collected from the current enhanced 911 system surcharge for prepaid wireless service and any uncollected revenue from the current system. The study shall include an investigation on collecting the enhanced 911 system surcharge for prepaid wireless service at the point of sale and an estimate of the annual revenue collected from a prepaid wireless service surcharge at the point of sale. The joint committee on telecommunications, utilities and energy shall report its findings and recommendations, together with drafts of legislation necessary to carry the recommendations into effect, by filing the same with the clerks of the house of representatives and senate and the house and senate committees on ways and means not later than November 1, 2012.
SECTION 106. Notwithstanding any general or special law to the contrary, the comptroller may, on or before June 30, 2014, transfer no more than $200,000,000 to the General Fund from the Commonwealth Stabilization Fund; provided, the amount of the transfer shall be Commonwealth Stabilization Fund shall be reimbursed the full amount of the transfer by December 31, 2014. The comptroller, in consultation with the secretary of administration and finance, may take the overall cash flow needs of the commonwealth into consideration in determining the timing of any transfer of funds. The comptroller shall provide a schedule of transfers to the secretary of administration and finance and to the house and senate committees on ways and means.
SECTION 107. Sections 64B through 64J, inclusive, shall take effect beginning January 1, 2014.
SECTION 108. Item 7100-1000 of section 2 of chapter 258 of the acts of 2008 is hereby amended by inserting after the words “in the city of Worcester;” the following words:- provided further that not less than $25,000,000 shall be expended in collaboration and coordination with funds granted pursuant to the provisions of section 4G of chapter 40J of the General Laws, provided that funds expended for this purpose shall leverage at least $3, in the aggregate during activities funded by such grant, from sources other than an agency as defined by section 39 of chapter 6, for each dollar granted and that funds expended for this purpose shall not qualify as meeting the requirements for leveraged dollars required under said section 4G;”
SECTION 109. section 1. section 27C of chapter 149 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting after the figure 148B, in lines 4 and 14, each time it appears, the following words:- , 152A. section 2. section 152A of said chapter 149, as so appearing, is hereby amended by inserting, after the word responsibility in line 8, the following words:- ; provided, however, that a shift supervisor in a quick service restaurant whose only managerial responsibilities include: (i) providing on-the-job training for regular wait staff as to an employer's policies and procedures; or (ii) assigning employees to their posts; but (iii) has no authority to hire or fire employees or effectively recommend these actions, shall qualify as a wait staff employee for purposes of this section; provided further, that reporting of workplace infractions or making suggestions for employment by a shift supervisor shall not be considered as authority to hire or fire. section 3. Said section 152A of said chapter 149, as so appearing, is hereby further amended by inserting after the definition of Patron, the following definition:- Quick Service Restaurant, an establishment selling food or beverages where products are served to patrons primarily over a sales counter or a drive up window sales point, where there is minimal or no service to patrons seated at tables and where all employees are paid at least the minimum required hourly wage for non-service employees.
SECTION 109. Whereas, The deferred operation of this act would tend to defeat its purpose, which is forthwith to promote energy conservation and renewable energy projects within the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 23G of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after section 44 the following section:
SECTION 45. Energy Conservation Loan Program.
(a)(1) As used in this section, the following terms shall, unless the context clearly requires otherwise, have the following meanings: --
“Agency”, the Massachusetts Development Finance Agency.
“Department”, the Department of Public Utilities established pursuant to chapter 25 of the General Laws.
“Eligible borrower” shall include the following, all as defined in section 1 of this chapter, any public body, municipality, institution, or person, provided that an owner of privately-held real property may participate through the Municipal PACE program.
“Eligible Project” shall mean the acquisition, design, construction, repair, renovation, rehabilitation or other capital improvement or deferred maintenance of an energy conservation project undertaken by an eligible borrower, and in the case of owners of privately-held real property, shall include, but not be limited to, energy conservation projects eligible under MGL. c. 44 section 53 ¾.
“Energy Project Bonds”, bonds, notes, certificates of participation or beneficial interest, or other evidences of indebtedness or ownership, issued pursuant to an executed indenture, financing document or other agreement of the financing entity, the proceeds of which are used to finance Loans for Eligible Projects, and that are payable from Loan Repayments, and are further secured by SBC charges.
“Financing entity”, (i) the agency or (ii) any special purpose entity. “Financing order”, an order of the department issued in accordance with section 19 of chapter 25 of the General Laws which shall provide for a first priority lien on all or a portion of the SBC charges to further secure Energy Project Bonds.
“Fund” shall mean the Massachusetts Energy Conservation Project Fund created hereunder and held by the agency, within which the agency shall create a loan account and a reserve account.
“Loan” shall mean a direct loan of monies or any other financing arrangement from the agency to an eligible borrower to finance all or a portion of an eligible project.
“Municipal PACE program” means a program implemented and administered by a city or town pursuant to section 53E3/4 of chapter 44 of the General Laws.
“SBC charges” means the mandatory charge imposed pursuant to section 19 of chapter 25 of the General Laws.
“Special purpose entity”, any partnership, limited partnership, association, corporation, limited liability corporation, or other entity established and authorized by the agency to issue energy project bonds, subject to approval by the agency as provided by the agency in its resolution authorizing the special purpose entity to issue energy project bonds.
(b) As set forth in this section, the agency shall make loans to or enter into other financing arrangements directly with eligible borrowers for eligible projects or, in the case of eligible projects under the Municipal PACE program, shall fund loans made by municipalities to property owners in accordance with such program. Such loans shall be funded from energy project bonds issued by the agency or a special purpose entity in accordance with this section and this chapter or from amounts held in the fund. The agency shall pledge loan repayments received directly from eligible borrowers, or from cities and towns on behalf of real-property owners pursuant to the Municipal PACE program to the repayment of the related energy project bonds issued by the agency or by a special purpose entity, as applicable. As further security for any such bonds or debt obligations, the department shall issue one or more financing orders in accordance with section 19 of chapter 25 of the General Laws, granting a statutory first priority lien in all or a portion of the SBC charges as set forth in such financing order.
(c) There shall be the Massachusetts Energy Conservation Project Fund under the control of the agency, and all energy project bond proceeds of the agency or a special purpose entity, together with any other monies lawfully made available to the fund in order to make loans, shall be credited to the loan account within the fund. The purpose of the loan account within the fund shall be to make loans to finance eligible projects. The agency may make loans to eligible borrowers for eligible projects from amounts on deposit or credited to the loan account within the fund. The agency shall hold the fund in a separate account, segregated from all other agency funds. Except as hereinafter provided, the agency may invest and reinvest the loan account within the fund and the income thereon: (i) in making loans to eligible borrowers for eligible projects and (ii) in investing funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth.
(d) Each loan shall be made pursuant to a loan agreement between the agency and the eligible borrower. In the case of the Municipal PACE program, the agency may accept loan agreements entered into by the municipality and the property owner. All loan agreements, including those entered into under the Municipal PACE program, shall specify the security for such loan, and the repayment and other terms of such loan.
(e) Pursuant to the financing order, the agency has been granted a first priority lien on all or a portion of the SBC charges to provide additional security for any energy project bonds it issues or that are issued by the special purpose entity. Amounts transferred to the agency pursuant to such financing order that are not needed to pay debt service on energy project bonds shall be held in the reserve account within the fund or in a reserve fund created under the financing documents, in either case, as a reserve securing the energy project bonds, in accordance with the provisions of the financing documents governing the energy project bonds. Any amounts in excess of such required reserve shall be transferred by the agency to the department in accordance with the provisions of the financing documents governing the energy project bonds. The agency shall hold the reserve account within the fund in a separate account, segregated from all other agency funds. The commonwealth does hereby pledge and agree with the holders of energy project bonds that the commonwealth shall not (1) alter the provisions of section 19 of chapter 25 of the General Laws which imposes the SBC charges in a manner that limits or otherwise adversely affects the amount of SBC charges pledged to secure any energy project bond in accordance with a financing order; or (ii) limit or alter the financing order and all rights thereunder until the energy project bonds, together with the interest thereon, are fully met and discharged.
(f) The exercise of the powers granted by this section shall be in all respects for the benefit of the people of the commonwealth by increasing the energy efficiency of buildings in the commonwealth. As the exercise of such powers shall constitute the performance of essential government functions, the financing entity shall not be required to pay any taxes or assessments upon the property acquired or used by the financing entity pursuant to the provisions of this section or upon the income therefrom. The energy project bonds issued pursuant to the provisions of this section, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation within the commonwealth.
(g) Upon the written approval of the Secretary for Administration and Finance and the Secretary for Energy and Environmental Affairs, the agency or the special purpose entity may issue energy project bonds on behalf of the fund. Proceeds of energy project bonds shall be used for the purposes authorized by this section. Any such agency energy project bonds shall be issued as revenue bonds and shall be recourse only to the related loan repayments by eligible borrowers and other monies available in the reserve account within the fund or held under the related financing documents. The agency’s energy project bonds shall not be general obligations of the agency or the commonwealth. The agency’s energy project bonds shall be issued in accordance with the provisions of section 8 of chapter 23G of the General Laws, except that the agency shall not be required to make the findings set forth in section 8(a) or 8(b) of said chapter 23G. Agency bonds issued in furtherance of this section shall not be subject to, or otherwise included in, the principal amount of debt obligations issued under section 29 of said chapter 23G.
(h) The agency shall be reimbursed from the loan account within the fund for all reasonable and necessary direct costs and expenses incurred in any fiscal year associated with its bond issuance, administration, management and operation of the funds, including reasonable staff time and out-of-pocket expenses and the reasonable and approved administrative costs incurred by any qualified organizations which the agency may contract for services. The agency is authorized to establish a minimum reserve to be maintained by the fund for the purpose of ensuring the satisfaction of the agency’s and its agents’ administrative costs.
(i) In accordance with applicable law, the agency may enter into contracts with one or more qualified organizations to manage some or all of the administrative aspects of managing the loan program on behalf of the agency, and on behalf of municipalities participating in the Municipal PACE program. Contracts executed pursuant to this section shall address, but shall not be limited to: proposed rules and guidelines for the funds, providing technical assistance to potential eligible borrowers and to municipalities in implementing and managing their Municipal PACE programs, reviewing and evaluating loan applications, providing findings and recommendations to the agency as to which loans should be approved and awarded, and serving such loans once they are awarded and funded.
(j) If the agency makes a loan directly to a city or town of the commonwealth for an eligible project owned or leased by the city or town, in accordance with this section, and such city or town fails to pay to the agency when due and after demand any principal, interest or other charges payable under its loan agreement, in addition to other remedies of the agency under the applicable loan agreement, the agency may certify to the state treasurer the amount owing to the agency by such city or town. The state treasurer shall promptly pay over to the agency for application in accordance with the agency’s trust agreement, without further appropriation any local aid distributions otherwise certified to the state treasurer as payable to such city or town. Payment by the state treasurer under this section shall continue to be made until any deficiency in such city or town’s payments to the agency shall have been offset by the payments from the state treasurer. Any amount paid to the agency by the state treasurer under this section which is later determined, upon audit, to be in excess of the actual amount due to the agency shall, upon demand of such city or town, be repaid from the fund to the state treasurer. The agency may also recover from a city or town in an action in superior court any amount due to the center together with any other actual damages the agency shall have sustained from the failure or refusal of the city or town to make payments owing to the agency.
SECTION 2. section 19 of chapter 25 of the General Laws is hereby amended by inserting the following section after paragraph (a) thereof:
(a1/2) Notwithstanding the foregoing, upon receiving notice from the Massachusetts Development Finance Agency that energy project bonds are to be issued in accordance with section 45 of chapter 23G of the General Laws, the department shall issue one or more financing orders, granting a first priority lien on the mandatory charge established by the first sentence of this section, and all or a portion of the amounts collected pursuant thereto, as set forth in such financing order to secure such energy project bonds. Upon the effective date of a financing order, unless otherwise directed by the department, there shall exist a first priority lien on all mandatory charges imposed by paragraph (a) of this section then existing or thereafter arising pursuant to the terms of the financing order. This lien shall arise by operation of this subsection automatically without any action on the part of the department, the agency, any such special purpose entity or any other person. This lien shall secure all obligations then existing or subsequently arising to the holders of such energy project bonds, the trustee or representative for such holders, and any other entity specified in the financing order. The persons for whose benefit this lien is established shall upon the occurrence of any defaults specified in the financing order, have all the rights and remedies of a secured party upon default pursuant to article 9 of chapter 106 and shall be entitled to foreclose or otherwise enforce this statutory lien in the mandatory charges. This lien shall attach to such mandatory charges regardless of who shall own, or shall subsequently be determined to own, the mandatory charges, including any electric distribution companies and municipal aggregators, any affiliate thereof, the agency or special purpose entity, or any other person. This lien shall be valid, perfected and enforceable against all third parties upon the effectiveness of the financing order without any further public notice; provided, however, that any person may, but, shall not be required to, file a financing statement. A perfected statutory lien in the mandatory charges shall be a continuously perfected lien in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued.
The department may issue financing orders in accordance with this section to facilitate the financing or refinancing of energy projects, as defined in section 45 of chapter 23G of the General Laws. A financing order shall specify that amounts collected pursuant to the mandatory charges set forth in paragraph (a) of this section shall be allocated first to the energy project bonds, and shall be paid over to the agency upon receipt, and second to other projects financed in accordance with this section. Financing orders issued pursuant to the provisions of this section shall not constitute a debt or liability of the commonwealth or of any political subdivision thereof, and shall not constitute a pledge of the full faith and credit of the commonwealth or any of its political subdivisions, but, shall be payable solely from the funds provided therefore pursuant to the provisions of section 45 of chapter 23G of the General Laws and this subsection.
SECTION 3. section 53E3/4 of chapter 44 of the General Laws, as appearing in the 2010 Official Edition is hereby amended by inserting the following paragraph at the end of paragraph (e) thereof:
In furtherance of the provisions of this section, a city or town may participate in the Massachusetts Development Finance Agency’s Energy Conservation Loan Program established pursuant to section 45 of chapter 23G of the General Law for the purposes of obtaining funds to make loans in accordance with this section. To the extent that the city or town receives funds pursuant to such program, it shall enter into a loan agreement with the property owner that has been approved by the agency, and will pledge such loan agreement and all amounts received pursuant thereto to the agency. In the event of a payment default by the property owner, the city or town shall enforce its rights under any betterments or other security granted under the applicable loan agreement. All amounts realized by the city or town as a result of such enforcement, or otherwise realized under the betterments or other security granted under the applicable loan agreement or as a result of this section shall be immediately transferred to the agency.
SECTION 110. Title XXII of the General Laws is hereby amended by inserting after Chapter 156D the following chapter:-
CHAPTER 156E: BENEFIT CORPORATIONS.
SECTION 1.
SECTION 1.01 Short Title.
This chapter shall be known and may be cited as the “Massachusetts Benefit Corporation Act”.
SECTION 1.02 Purpose and Application.
(1) The purpose of this Chapter is to create the benefit corporation classification in the Commonwealth for the purpose of incorporating a business that has either a general public benefit or a specific public benefit. This chapter shall be applicable to all benefit corporations.
(2) The existence of a provision of this Chapter shall not of itself create an implication that a contrary or different rule of law is applicable to a business corporation that is not a benefit corporation. This chapter shall not affect a statute or rule of law that is applicable to a business corporation that is not a benefit corporation.
(3) Except as otherwise provided in this Chapter, a benefit corporation doing business in the Commonwealth must comply with other applicable Massachusetts General Laws regarding that corporation including: M.G.L. Chaps. 155, 156, 156A, 156B, 156C, 156D, and 158. The specific provisions of this Chapter shall control over the general provisions of the applicable M.G.L. Chapter. The existence of a provision of this chapter does not excuse or exempt any business organized under the laws of this Commonwealth from complying with all relevant laws and regulations in the Commonwealth.
(4) A provision of the articles of incorporation, bylaws, or shareholder agreement of a benefit corporation may not relax, be inconsistent with or supersede a provision of this Chapter. A provision in a benefit corporation’s articles of incorporation, bylaws, or shareholder agreement that is inconsistent with the purpose and provisions of this Chapter shall be void and unenforceable. A provision in a benefit corporation’s articles of incorporation, bylaws, or shareholder agreement that is void and unenforceable by operation of this subsection shall not render the entirety or remaining provisions of the articles, bylaws, or shareholder agreement void or unenforceable.
(5) A professional corporation may own real and personal property necessary or appropriate for rendering the professional service it was organized to render, and may invest its funds in real estate, mortgages, stocks, bonds, or any other type of investment
SECTION 1.03 Definitions.
(1) In General. In this chapter, the following words and phrases when used in this Chapter have the meanings given to them in this section, unless the context clearly indicates otherwise:
(a) Benefit Corporation: means a corporation either incorporated in Massachusetts or registered to do business in Massachusetts that incorporated as a benefit corporation in accordance with section 3.01 of this Chapter, or elected to become a benefit corporation in accordance with section 3.02 of this Chapter, and has not ceased to be a benefit corporation by means of terminating its benefit corporation status through the operation of section 3.03 of this chapter. This term also includes foreign corporations organized under their state’s benefit corporation law that are registered and authorized to do business in the Commonwealth.
(b) General Public Benefit: a material, positive impact on society and the environment, taken as a whole, as measured by a third-party standard, from the business and operations of a benefit corporation.
(c) Specific Public Benefits: includes: (i) Providing low-income or underserved individuals or communities with beneficial products or services; (ii) Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business; (iii) Promoting the preservation and conservation of the environment; (iv) Improving human health; (v) Promoting the arts, sciences, access to and advancement of knowledge; (vi) Increasing or facilitating the flow of capital and assets to entities with a public benefit purposes; and (vii) Conferring any other particular benefit on society or the environment.
(d) Benefit Director: Either (i) The director designated as the benefit director of a benefit corporation under subsection 4.02(1); or (ii) A person with one or more of the powers, duties or rights of a benefit director to the extent provided in the bylaws under subsection 4.02(4).
(e) Benefit Officer: The individual designated as the benefit officer of a benefit corporation under section 4.04.
(f) Benefit Enforcement Proceeding: Any claim or action brought directly by a benefit corporation, or derivatively by shareholders on behalf of a benefit corporation, against a director or officer for: (i) Failure to pursue the general public benefit purpose of the benefit corporation or a specific public benefit purpose set forth in its articles; or (ii) Violation of any obligation, duty or standard of conduct under this Chapter.
(g) Third-party standard: a standard for defining, reporting, and assessing overall corporate social and environmental performance which is:
(i) Comprehensive in that it assesses the effect of the business and its operations upon the interests listed in subsections 4.01(1)(A)(ii), (iii), (iv), and (v);
(ii) Developed or performed by a person or organization independent of the benefit corporation and not more than one-third of the members of the governing body of the organization are representatives of any of the following:
(1) An association of businesses operating in a specific industry the performance of whose members is measured by the standard.
(2) Businesses from a specific industry or an association of businesses in that industry.
(3) Business whose performance is assessed against the standard.
(iii) The organization is not materially financed by an association of business described in subparagraph (ii);
(iv) Credible because the standard is developed by a person that both:
(1) Has access to necessary expertise to assess overall corporate social and environmental performance.
(2) Uses a balanced multistake holder approach, including a public comment period of at least 30 days to develop the standard.
(v) Transparent, because the following information is publicly available about the standard:
(1) The criteria considered when measuring the overall social and environmental performance of a business.
(2) The relative weighting of those criteria.
(3) The identity of the directors, officers, material owners and governing body of the organization that developed and controls revisions to the standard.
(4) An accounting of the sources of financial support for the organization, with sufficient detail to disclose any relationship that could reasonably be considered to present a potential conflict of interest.
(h) Independent: Having no material relationship with a benefit corporation or a subsidiary of the benefit corporation. Serving as benefit director or benefit officer does not make a person not independent. A material relationship between a person and a benefit corporation or any of its subsidiaries will be presumed to exist if one or more of the following apply:
(i) The person is, or has been within the last year, an employee other than a benefit officer of the benefit corporation or a subsidiary of the benefit corporation.
(ii) An immediate family member of the person is, or has been within the last year, an executive officer other than a benefit officer of the benefit corporation or its subsidiary.
(iii) There is beneficial or record ownership of 5% or more of the outstanding shares of the benefit corporation by:
(1) The person; or
(2) An association of which the person is a director, an officer or a manager; or, in which the person owns beneficially or of record 5% or more of the outstanding equity interests.
(i) Minimum Status Vote.
(i) In the case of a business corporation, in addition to any other required approval or vote, the satisfaction of the following conditions:
(1) The shareholders of every class or series shall be entitled to vote on the corporate action regardless of a limitation stated in the articles of incorporation or bylaws on the voting rights of any class or series.
(2) The corporate action must be approved by vote of the shareholders of each class or series entitled to cast at least two-thirds of the votes that all shareholders of the class or series are entitled to cast on the action. (ii) In the case of a domestic entity other than a business corporation, in addition to any other required approval, vote or consent, the satisfaction of the following conditions:
(1) The holders of every class or series of equity interest in the entity that are entitled to receive a distribution of any kind from the entity shall be entitled to vote on or consent to the action regardless of any otherwise applicable limitation on the voting or consent rights of any class or series.
(2) The action must be approved by vote or consent of the holders described in subparagraph (i) entitled to cast at least two-thirds of the votes or consents that all of those holders are entitled to cast on the action.
SECTION 1.04. Reservation of Power to Amend or Appeal.
The General Court of the commonwealth has power to amend or repeal all or part of this Act pursuant to its legislative power.
SECTION 2.
SECTION 2.01. Organization as a Benefit Corporation.
A benefit corporation must be organized under the laws of the Commonwealth with the exception that a benefit corporation’s articles of incorporation must make clear reference that it is a benefit corporation.
SECTION 2.02 Election to Become a Benefit Corporation.
An existing corporation or limited liability company, organized under the laws of this Commonwealth may elect to become a benefit corporation by amending its articles of incorporation, pursuant to M.G.L. Chaps. 156D, § 10.01(Authority to Amend) and 156C, § 13 (Amendment of Certificate of Organization) respectively, to include a statement that the corporation is a benefit corporation. In order to be effective, the amendment must be adopted by at least the minimum status vote.
SECTION 2.03 Termination of Status as a Benefit Corporation.
A benefit corporation may terminate its status as such and cease to be subject to this Chapter by amending its articles of incorporation to delete the statement required by Sections 2.01 and 2.02 of this Chapter that the corporation is a benefit corporation. In order to be effective, the amendment must be adopted by at least the minimum status vote.
SECTION 2.04. Presentment as a Benefit Corporation.
A business corporation organized under the laws of the Commonwealth may not hold itself out as, advertise itself as, or indicate in any way that it is a benefit corporation, unless organized under and in full compliance with the requirements of this Chapter.
SECTION 2.05 Fundamental Transactions.
(1) An entity that is not a benefit corporation will become a benefit corporation, and will be subject to the provisions of this Chapter, if:
(a) The entity that is not a benefit corporation is a party to a merger, consolidation, division, or is acquired by a benefit corporation, or the entity that is not a benefit corporation is the exchanging corporation in a share exchange; and
(b) The surviving, acquiring, or any resulting corporation in the merger, consolidation, division, or share exchange is to be a benefit corporation.
(2) In order to effective, a plan of merger, consolidation, division, or share exchange subject to this subsection must be adopted by the minimum status vote.
SECTION 3. Corporate Purpose.
SECTION 3.01 Corporate Purpose.
(1) General Public Benefit Purpose. A benefit corporation shall have the purpose of creating general public benefit. This purpose is in addition to its purpose under Chapter 156D (relating to a corporation’s purpose).
(2) Optional Specific Public Benefit Purpose. The articles of a benefit corporation may identify one or more specific public benefits that it is the purpose of the benefit corporation to create in addition to its purpose as required under Chapter 156D and subparagraph (1) above. The identification of a specific public benefit under this subsection does not limit the obligation of a benefit corporation under subparagraph (1) above.
(3) Effect of Purposes. The creation of general public benefit and specific public benefit under subsections (1) and (2) is in the best interest of the benefit corporation.
(4) Amendment. A benefit corporation may amend its articles to add, amend, or delete the identification of a specific public benefit under M.G.L. Chap. 156D, § 10.01 (Authority to Amend) and M.G.L. Chap. 156C, § 13 (Amendment of Certificate of Organization). However, the elimination of an optional specific public benefit cannot significantly diminish or eliminate the general public benefit required in this subsection.
(5) Professional corporations. A professional corporation that is a benefit corporation does not violate M.G.L. Chap. 156A, § 3 (Professional Services Provided) by having the purpose to create general public benefit or a specific public benefit.
SECTION 4. Accountability and Liability.
4.01 Standard of Conduct for Directors.
(1) Consideration of Interests. In discharging the duties of their respective positions and in considering the best interests of the benefit corporation, the board of directors, committees of the board and individual directors of a benefit corporation:
(A) Shall consider the effects of any action upon:
(i) The shareholders of the benefit corporation;
(ii) The employees and workforce of the benefit corporation, its subsidiaries and its suppliers;
(iii) The interest of customers or clients as beneficiaries of the general public benefit or specific public benefit purposes of the benefit corporation;
(iv) Community and societal factors, including those of each community in which offices or facilities of the benefit corporation, its subsidiaries or its suppliers are located;
(v) The local, regional, and global environment;
(vi) The short-term and long-term interests of the benefit corporation, including benefits that may accrue to the benefit corporation from its long-term plans and the possibility that these interests may be best served by the continued independence of the benefit corporation; and
(vii) The ability of the benefit corporation to accomplish its general public benefit purpose and any specific public benefit purpose; and
(B) May consider:
(i) The interests of the economy of the state and the region and the nation under M.G.L. Chap. 156D, § 8.30(a)(3) (General Standards for Directors);
(ii) Other pertinent factors or the interests of any other group that they deem appropriate; but
(2) Directors shall consider the factors in subsection 4.01(1)(A) using sound and reasonable judgment in determining corporate actions and the best interests of the benefit corporation. Directors need not give priority to the interests of a particular person or group referred to in subparagraphs (1)(A) or (1)(B) over the interests of any other person or group unless the benefit corporation has stated in its articles its intention to give priority to certain interests related to its accomplishment of its general public benefit purpose or of a specific public benefit purpose identified in its articles.
(3) Coordination With Other Provisions of Law. The consideration of interests and factors in the manner required by subsection (1) does not constitute a violation of M.G.L. Chap. 156D § 8.01.
(4) A director is not personally liable for monetary damages for:
(a) Any action or inaction as a director if the director performed the duties of office in compliance with M.G.L. Chap. 156D, § 8.30 (General Standard for Directors) and this Section; or
(b) Failure of the benefit corporation to pursue or create general public benefit or a specific public benefit.
(5) A director does not have a fiduciary duty to a person that is a beneficiary of the general or specific public benefit purposes of a benefit corporation arising from the status of the person as a beneficiary.
4.02 Standard of Conduct for Benefit Director.
(1) General Rule. The board of directors of a benefit corporation shall include one director, who:
(a) Shall be designated the benefit director; and
(b) Shall have, in addition to the powers, duties, rights, and immunities of the other directors of the benefit corporation, the powers, duties, rights, and immunities provided in this subchapter.
(2) Election, Removal and Qualifications. The benefit director shall be elected, and may be removed, in the manner provided under M.G.L. Chap. 156D, and shall be an individual who is independent. The benefit director may serve as the benefit officer at the same time as serving as the benefit director. The articles, bylaws, or shareholder agreement of a benefit corporation may prescribe additional qualifications of the benefit director not inconsistent with this subsection.
(3) Annual Compliance Statement. The benefit director shall prepare, and the benefit corporation shall include in the annual shareholder’s report, the opinion of the benefit director on all of the following:
(a) Whether the benefit corporation acted in accordance with its general public benefit and any specific public benefit purpose in all material respects during the period covered by the report.
(b) Whether the directors and officers complied with subsections 4.01(1) and 4.03(1).
(c) Whether, in the opinion of the benefit director, the benefit corporation or its directors or officers failed to comply with subsection (2), and if so, a description of the ways in which the benefit corporation or its directors or officers failed to comply.
(d) What impact the corporation’s status as a benefit corporation is having on its business, including client or consumer opinion, return on investment, impact on shareholders, and impact on employees.
(4) Status of Actions. The act or inaction of an individual in the capacity of a benefit director shall constitute for all purposes an act or inaction of that individual in the capacity of a director of the benefit corporation.
(5) Alternative Governance Arrangements.
(a) The bylaws or shareholder agreement of a benefit corporation must provide that the persons or shareholders who perform the duties of the board of directors include a person with the powers, duties, rights and immunities of a benefit director if:
(i) The bylaws of a benefit corporation provide that the powers and duties conferred or imposed upon the board of directors be exercised or performed by a person other than the directors; or
(ii) The bylaws of a closely held corporation that is a benefit corporation provide that the business and affairs of the corporation be managed by or under the direction of the shareholders.
(b) A person that exercises one or more of the powers, duties or rights of a benefit director under this subsection:
(i) Does not need to be independent of the benefit corporation;
(ii) Shall have the immunities of a benefit director;
(iii) May share the powers, duties and rights of a benefit director with one or more other persons; and
(iv) Shall not be subject to the procedures for election or removal of directors in M.G.L. Chap. 156D unless the person is also a director of the benefit corporation or the bylaws make those procedures applicable.
(5) Professional Corporations. The benefit director of a professional corporation does not need to be independent.
(6) Exoneration from Personal Liability. Regardless of whether the bylaws of a benefit corporation include a provision eliminating or limiting the personal liability of directors authorized by M.G.L. Chap. 156D, a benefit director shall not be personally liable for an act or omission in the capacity of a benefit director unless the act or omission constitutes self-dealing, willful and intentional misconduct, or a knowing violation of the law.
4.03 Standard of Conduct for Officers.
(1) General Rule. Each officer of a benefit corporation shall consider the interests and factors described in section 4.01(1)(A) (standard of conduct for directors) in the manner provided in that subsection if: (a) The officer has discretion to act with respect to a matter; and (b) It reasonably appears to the officer that the matter may have a material effect on the creation of a general public benefit or a specific public benefit by the benefit corporation.
(2) Coordination With Other Provisions of Law. The consideration of interests and factors in the manner described in subsection (a) shall not constitute a violation of M.G.L. Chap. 156D § 8.41 (Duties of Officers).
(3) Exoneration From Personal Liability. An officer is not personally liable for monetary damages for: (a) Any action or inaction as an officer if the officer performed the duties of the position in compliance with Chapter 156D and this Section; or (b) Failure of the benefit corporation to pursue or create general public benefit or specific public benefit.
(4) Limitation on Standing. An officer does not have a fiduciary duty to a person that is a beneficiary of the general or specific public benefit purposes of a benefit corporation arising from the status of the person as a beneficiary.
4.04 Election of Benefit Officer.
(1) Designation. A benefit corporation may have an officer designated the benefit officer. A benefit officer shall have:
(a) Powers and duties relating to the purpose of the corporation to create general public benefit or specific public benefit provided:
(i ) By the bylaws; or
(ii) Absent controlling provisions in the bylaws, by resolutions or orders of the Board of Directors.
(b) The duty to oversee and prepare the annual benefit report required by section 5.01.
4.05 Right of Action.
(1) Limitations. The duties under this Chapter, and the general public benefit purpose and any specific public benefit purpose of a benefit corporation, may be enforced only in a benefit enforcement proceeding.
(a) Except in a benefit enforcement proceeding, no person may bring an action or assert a claim against a benefit corporation or its directors or officers with respect:
(i) Failure to pursue or create general or specific public benefit set forth in its articles; or
(ii) Violation of a duty or standard of conduct under this Chapter.
(b) A benefit corporation shall not be liable for monetary damages under this Chapter for any failure of the benefit corporation to pursue or create general public benefit or a specific public benefit.
(2) Standing. A benefit enforcement proceeding may be commenced or maintained only:
(a) Directly by the benefit corporation; or
(b) Derivatively by:
(i) A shareholder;
(ii) A director;
(iii) A person or group of persons that owns beneficially or of record 5% or more of the equity interests in an association of which the benefit corporation is a subsidiary; or
(iv) Other persons as specified in the articles, bylaws, or shareholder agreement of the benefit corporation.
SECTION 5. Transparency.
5.01 Annual Benefit Report.
(1) Contents. A benefit corporation shall prepare an annual benefit report including all of the following information:
(a) A narrative description of:
(i) The ways in which the benefit corporation pursued general public benefit during the year and the extent to which general public benefit was created.
(ii) The ways in which the benefit corporation pursued a specific public benefit that the articles state it is the purpose of the benefit corporation to create, and the extent to which that specific public benefit was created.
(iii) Any circumstances that have hindered the creation by the benefit corporation of general public benefit or specific public benefit.
(iv) The process and rationale for selecting or changing the third-party standard used to prepare the benefit report.
(b) An assessment of the overall social and environmental performance of the benefit corporation against a third-party standard:
(i) Applied consistently with any application of that standard in prior benefit reports; or
(ii) Accompanied by an explanation of the reasons for any inconsistent application.
(c) The name of the benefit director and the benefit officer, if any, and the address to which correspondence to each of them may be directed.
(d) The compensation paid by the benefit corporation during the year to each director in the capacity of a director.
(e) The name of each person that owns 5% or more of the outstanding shares of the benefit corporation either:
(i) Of record; or
(ii) Beneficially, to the extent known to the benefit corporation without independent investigation.
(f) The statement of the benefit director described in subsection 4.02(3).
(g) A statement of any connection between the organization that established the third-party standard, or its directors, officers or any holder of 5 percent or more of the governance interests in the organization, and the benefit corporation or its directors, officers or any holder of 5 percent or more of the outstanding shares of the benefit corporation, including any financial or governance relationship which might materially affect the credibility of the use of the third-party standard.
(h) If the benefit corporation has dispensed with, or restricted the discretion or powers of, the board of directors, a description of:
(i) The persons that exercise the powers, duties and rights and who have the immunities of the board of directors; and
(ii) The benefit director, as required by subsection 4.02(4).
(2) Audit Not Required. Neither the benefit report nor the assessment of the performance of the benefit corporation in the benefit report required by subsection (1)(B) needs to be audited or certified by a third party standards provider.
SECTION 5.02 Publication and Filing of Annual Benefit Report.
(1) Timing of Report. The Annual Benefit Report shall be sent annually to each shareholder at the same time that the benefit corporation delivers any other annual report to its shareholders, or within 120 days following the end of the fiscal year of the benefit corporation.
(2) Internet Website Posting. A benefit corporation shall post its most recent annual benefit report on the public portion of its Internet website, if any, but the compensation paid to directors and financial, confidential, or proprietary information included in the benefit report may be omitted from the benefit report as posted.
(3) Availability of copies. If a benefit corporation does not have an Internet website, the benefit corporation shall provide a copy of its most recent benefit report, without charge, to any person that requests a copy, but the compensation paid to directors and financial or proprietary information included in the benefit report may be omitted from the copy of the benefit report provided.
(4) Filing of Report. The benefit corporation shall deliver a copy of the benefit report to the Office of the Secretary of the Commonwealth for filing, but the compensation paid to directors and financial, confidential, or proprietary information included in the benefit report may be omitted from the benefit report as filed. The Office of the Secretary of the Commonwealth shall charge a fee of $75 for filing a benefit report.
SECTION 6. Effective Date. (1) This act shall take effect September 1, 2012.