HOUSE DOCKET, NO. 2738        FILED ON: 1/18/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 164

The Commonwealth of Massachusetts

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PRESENTED BY:

Geoff Diehl

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to establish a Massachusetts incubator network to be known as MassMarket.

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PETITION OF:

HOUSE DOCKET, NO. 2738        FILED ON: 1/18/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 164

The Commonwealth of Massachusetts

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In the Year Two Thousand Thirteen

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An Act to establish a Massachusetts incubator network to be known as MassMarket.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. To provide for supplementing certain items in the general appropriation act and other appropriation acts for fiscal year 2013, the sums set forth in section 2 are hereby appropriated from the General Fund unless specifically designated otherwise in this act or in those appropriation acts for the several purposes and subject to the conditions specified in this act or in those appropriation acts, and subject to the laws regulating the disbursement of public funds for the fiscal year ending June 30, 2013. These sums shall be in addition to any amounts previously appropriated and made available for the purposes of those items.

SECTION 2.

EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT.

Massachusetts Office of Business Development

7007-0800

For the MassMarket business incubator pilot located at Massasoit community college

$50,000

SECTION 3.  (a) There shall be a business incubator, as defined in section 3A of chapter 23A of the General Laws, established at Massasoit community college.  The business incubator shall serve the southeastern region and facilitate business development in its gateway municipalities, as defined in said section 3A of said chapter 23A, and in surrounding communities.  A regional partnership consisting of the Brockton area workforce investment board, Massasoit community college, and representatives from MOBD shall assist the business incubator.  The director of the Massachusetts business development office, in consultation with the Brockton area workforce investment board and Massasoit community college, shall contract with a vendor to manage and operate the business incubator.  The business incubator shall operate for 3 years. 

(b) The vendor shall:

(i)  integrate a youth entrepreneurship component or unit within the incubator to focus on youth entrepreneurship activities;

(ii)  establish a record of or plan to conform to best practices including clear policies for business entry and graduation;

(iii)  establish a record of or plan to conform to best practices and principles of publicly supported incubators;

(iv)  develop a comprehensive suite of entrepreneurial mentoring practices including but not limited to advising, coaching, planning, technical assistance, capacity building, education and connecting to funding sources;

(v)  develop the capacity to secure substantial private and other non-state governmental funding for the incubator;

(vi)  demonstrate the ability and willingness to cooperate with other local, regional and statewide economic development organizations, business support networks and venture and angel capital funding sources;

(vii)  establish such procedure as it deems appropriate for the evaluation of tenant eligibility requirements for incubator entry and graduation;              

(viii)  submit an annual report on June 30th of each year to the director of the Massachusetts office of business development that includes its revenue and expenses, the number of private sector firms that have leased space in the business incubator, the number of companies that have graduated from the business incubator, how long such graduating companies remain in the commonwealth, and best estimates as to the number of full time equivalent positions created by incubator companies and their successors during the reporting period;, and other data as required by the director of the Massachusetts office of business development;

(ix)  maintain a management information system and collect statistics and other information necessary for ongoing program evaluation, thus improving a program’s effectiveness and allowing it to evolve with the needs of the clients; and

(x)   determine, in conjunction with the director of the Massachusetts office of business development, how the basic and optional services provided at the business incubator shall be charged to a company either: (i) while at the business incubator, (ii) upon its departure from the business incubator, or (iii) as a percentage of its annual revenues after graduation from the business incubator.

(c)  There shall be an advisory board for the business incubator that shall consist of a state representative and a state senator from the southeastern region, and advocates and stakeholders in economic, workforce, education and community development from the southeastern region.  The advisory board shall evaluate public investments in the business incubator, ensure that the funded programs are implementing best practices known to contribute to program and client success, and identify new industry trends that could affect program performance.

(d)  There shall be a review panel, composed of statewide recognized experts in business incubation and representatives from the executive office of housing and community development, the executive office of labor and workforce development, the executive office of education, the Brockton area workforce investment board and Massasoit community college, whose purpose is to evaluate  the performance of the vendor and the business incubator according to the criteria listed in clause (x) of section (b) and to present its findings to the secretary of housing and economic development.

SECTION 4.  The Massachusetts office of business development shall conduct an investigation and study, in consultation with the executive office of housing and economic development, the executive office of labor and workforce development and the executive office of education, (i) to determine whether the business incubator established at Massasoit community college shall be a model for a statewide network of business incubators to be known as MassMarket; (ii) to develop a collection of state resources to the business incubators through regional MassMarket partnerships consisting of local workforce investment boards, community colleges and representatives from the Massachusetts office of business development; and (3) to create a comprehensive, collaborative and integrated state strategy for small business, entrepreneurship and business incubation to address the needs and challenges across gateway municipalities, as defined in section 3A, and surrounding communities.  The study shall consider whether the lease or sale of unused state property under the management of the division of capital asset management and maintenance for use as business incubators in gateway municipalities, as defined in section 3A of chapter 23A of the General Laws, is appropriate and cost-effective.  The Massachusetts office of business development shall report the results of its investigation and study, and its recommendations, to the secretary of housing and economic development and the general court.  The report shall be filed with the secretary of housing and economic development, the clerk of the house of representatives and the clerk of the senate no later than 3 years after the effective date of this act.