HOUSE DOCKET, NO. 2399        FILED ON: 1/15/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3386

The Commonwealth of Massachusetts

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PRESENTED BY:

Daniel Cullinane

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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 creating construction relevance in the Economic Development Incentive Program.

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PETITION OF:

HOUSE DOCKET, NO. 2399        FILED ON: 1/15/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3386

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act creating construction relevance in the Economic Development Incentive Program.

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. Subclause (D) of clause (ii) of paragraph (1) of subsection (a) of section 3F of chapter 23A of the General Laws, as appearing in section 25 of chapter 287 of the acts of 2014, is hereby amended by striking out the words “from among residents” and inserting in place thereof the following words:- regarding both the permanent and construction jobs among residents.

SECTION 2. Said clause (ii) of said paragraph (1) of said subsection (a) of said section 3F of said chapter 23A, as so appearing , is hereby amended by striking out subclause (F) and inserting in place thereof the following subclause:- (F) the expansion, enhanced expansion or manufacturing retention and job growth project as described in the proposal, together with the municipal resources committed thereto, will, if certified, have a reasonable chance of increasing or retaining employment opportunities regarding both the permanent jobs and construction jobs for resident s of the expansion project area, ETA or municipality as applicable, as advanced in said proposal; and

SECTION 3. Subsection (b) of section 3F of chapter 23A, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following 2 paragraphs:-

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: (i) 20 years from such date; or (ii) the number of years requested by the municipality approving the project proposal, whichever is lesser, unless such certification is revoked prior to the expiration of the specified period. The certification of a project shall be revoked only by the EACC and only upon: (1) 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 (2)  the independent investigation and determination of the EACC that representations made by the controlling business in its project proposal are materially at variance with the conduct of the controlling business subsequent to the certification and such variance is found to frustrate the public purposes that such certification was intended to advance; provided, however, that the EACC shall review the controlling business’s and its contractor’s compliance to the labor affirmation section of the preliminary EDIP application; provided,further, that the EACC shall review such certified project at least once every 2 years; provided, further, that for an expansion project where the actual number of permanent full-time employees employed by the controlling business at the project is less than 50 per cent of the number of such permanent full-time employees projected in the project proposal, then this shall be deemed a material variance for the purposes of a revocation determination. Upon such a revocation, the commonwealth, and the municipality, in the case of a certified expansion project, shall have causes of action against the controlling business for the value of any economic benefit received by the controlling business prior or subsequent to such revocation; and

During construction on EDIP and TIF funded projects, recipients of tax relief are responsible for notifying the EACC when they or 1 of their contractors or third parties violates 1 of the tenets in the labor affirmation section, including failing to provide workers compensation coverage as required by chapter 152, or serious wage and hour violations which may result in debarment from public works projects.   Contractors that violate the labor affirmation section on a TIF project that results in a state ordered stop-work-order shall be barred further participation on said project and shall be barred from participation in EDIP projects for the duration of any state ordered public works debarment. Recipient of the TIF shall be responsible to cease all contracts with contractors that violate the labor affirmation section or risk decertification. The failure to report a violation of the labor affirmation section or the continued use of a debarred contractor shall result in a EACC decertification hearing for both TIF and EDIP Investment Tax Credits for the project.

SECTION 4. Clause (i) of subsection (d) of said section 3F said chapter 23A, as so appearing, is hereby amended by striking out subclause (B) and inserting in place thereof the following subclause:-

(B) the degree to which the project is expected to increase employment opportunities for residents regarding the permanent and construction jobs of the project ETA and of the commonwealth; and

SECTION 5. Clause (ii) of said subsection (d) of said section 3F of said chapter 23A, as so appearing, is hereby amended by striking out subclause (B) and inserting in place thereof the following subclause:-

(B) the degree to which the project is expected to increase employment opportunities for residents regarding both the permanent and construction jobs of the project ETA and of the commonwealth; and

SECTION 6. Clause (iii) of said subsection (d) of said section 3F of said chapter 23A, as so appearing, is hereby amended by striking out subclause (B) and inserting in place thereof the following subclause:-

(B) the degree to which the project is expected to increase employment opportunities for residents regarding both the permanent and construction jobs.