FILED ON: 7/11/2016

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4483

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 relative to job creation, workforce development and infrastructure investment.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to further economic development and job creation in 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.  To provide for a program of economic development and job creation, the sums set forth in sections 2A, 2B and 2C, 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; provided, however, that the amounts specified in an item or for a particular project may be adjusted in order to facilitate projects authorized in this act.  These sums shall be in addition to any amounts previously authorized and made available for these purposes.

SECTION 2A.

EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT

Office of the Secretary

7002-8006  For the MassWorks infrastructure program established by section 63 of chapter 23A of the General Laws …………………..…………………………. $500,000,000             

7002-8007  For matching grants to enable institutions of higher education located in the commonwealth to participate in and receive federal funding from the National Network for Manufacturing Innovation ……………………………………..………..……… $71,000,000

7002-8008  For a program administered by the Massachusetts Development Finance Agency for site assembly, site assessment, pre-development permitting and other pre-development and marketing activities that enhance a site’s readiness for commercial,  industrial or mixed-use development; provided that a portion of such funds shall be used to facilitate the expansion or replication of successful industrial parks; and provided further that a portion of such funds shall be used to support the revitalization of downtown….….….……$15,000,000

7002-8009  For a program to be administered by the Massachusetts Development Finance Agency to make grants and loans to municipalities, private property owners, non-profit entrepreneur support organizations and business operators for design, construction and, improvement of buildings and for equipment to spur innovation and entrepreneurship across the state, including but not limited to co-working spaces, innovation centers, maker spaces and artist spaces; provided further, that $75,000 shall be expended for the purpose of structural, roofing, masonry and site work at the Colonial Theatre in the city of Pittsfield; provided further, that $250,000 shall be expended to rehabilitate, finish, or expand facilities related to the Center for the Arts in the town of Natick; provide further, that $250,000 shall be expended for site analysis and feasibility of an upper valley innovation center to provide start-up entrepreneurial maker space in the city of Greenfield ………………………………………………………………………..…… $15,575,000

7002-8011  For the Transformative Development Fund established by section 46 of chapter 23G of the General Laws …………………………………..……..………$45,000,000

7002-8012  For the Scientific and Technology Research and Development Matching Grant Fund established by section 4G of chapter 40J of the General Laws …………$15,000,000

7002-8013For the Advanced Manufacturing, Technology and Hospitality Training Trust Fund established in section 2OOOO of chapter 29 of the General Laws...........$30,000,000

7002-8014 For the Massachusetts Food Trust Program established by section 65 of chapter 23A of the General Laws; provided further, that $396,000 shall be expended to the Franklin County Community Development Corporation for costs associated with the expansion of the Western Massachusetts Food Processing Center……………………………………………… $6,396,000

7002-8016 For a Designated Port Area Pilot program to be administered by the Massachusetts Development Finance Agency to make grants, loans, or a combination thereof for the design, construction, repair, renovation, rehabilitation, or other capital improvement of existing commercial and marine industrial infrastructure and commercial and public maritime transportation infrastructure; provided that, in making such grants or loans, the agency shall consider: (i) the impacts on future economic growth and commercial and industrial development within the designated port area; (ii) the impacts on the commercial fishing industry; (iii) the impacts on wastewater and wastewater pretreatment in the designated port area; (iv) the attendant economic benefits to the commonwealth; and (v) any strategic report or other assessment created under section 94 of chapter 287 of the acts of 2014; provided further, that the agency shall reasonably anticipate that its loan will leverage additional private investment in the property or the designated port area in which the property is located; and, provided further, that the agency shall, in coordination with the executive office of housing and economic development, submit an annual report to the clerks of the house and senate who shall forward the report to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies on or before December 31. The report shall include a current assessment of the progress of each project funded through the program………….…………………………………………………………………….$1,000,000

7002-8017 For the Massachusetts Technology Park Corporation, established in section 3 of chapter 40J of the General Laws and doing business as the Massachusetts Technology Collaborative, to create a cybersecurity and data analytics technology development and training center of excellence pursuant to section 104; provided further, that $75,000 shall be expended for the purpose of extending Mass Broadband, fiber optic cable network to the William Stanley Business Park to support the operation of the Berkshire Innovation Center in the city of Pittsfield; provided further, that $200,000 shall be expended for the Haitian American Business Expo, Inc. to expand its launch of its first-of-its-kind free platform connecting the Haitian / Haitian-American business community free-of-charge- with consumers by showcasing Haitian businesses and services throughout the Commonwealth through its Haitian business and non-profit web directory, database, mobile application, media outlets and community presence.……………………………………………………..…………………..…. $4,775,000

7002-8018 For public infrastructure grants to municipalities and other public instrumentalities for design, construction, building, land acquisition, rehabilitation, repair and other improvements to publicly-owned infrastructure; provided further, that $500,000 shall be expended for the Hamilton Canal District in the city of Lowell; provided further, that $500,000 be expended for the completion of the Northampton Arts Trust building project, located on Hawley Street in the city of Northampton; provided further, that $100,000 shall be expended for the relocation and rehabilitation of Stearns Tavern in the city of Worcester to provide job training and employment opportunities, in conjunction with the Seven Hills Foundation,  for persons with disabilities, and to create an all-ages, universally-accessible playground and park to adjoin the tavern; provided further, that $500,000 shall be expended on improving wayfinding efforts in cultural districts designated pursuant to clause 5 of subsection (a) of section 63 of chapter 23A of the General Laws; provided further, that $200,000 shall be expended for infrastructure improvements in the city of Brockton; provided further, that $150,000 shall be expended for infrastructure improvements pursuant to MassDOT’s Route 107 Corridor Study in the cities of Salem and Lynn; provided further, that $500,000 shall be expended for the restoration, rehabilitation and renovation of the Lowell Memorial Auditorium in order to ensure compliance with the Americans with Disabilities Act in the city of Lowell; provided further, that $250,000 shall be expended for the engineering cost of replacing the West Park Street Bridge in the town of Lee; provided further, that $142,000 shall be expended to assist the Middlesex 3 Coalition Transportation Management Association to acquire and maintain a transportation service vehicle between the City of Lowell and the Towns of Bedford and Burlington; provided further, that $250,000 shall be expended for new sidewalks at the intersection of Randolph street and state route 138, also known as Turnpike street, in the town of Canton; provided further, that $250,000 shall be expended for the redevelopment of infrastructure in the Avon industrial park; provided further, that not less than $350,000 be expended for repairs of the Tashmoo Boat Ramp in Vineyard Haven to encourage commercial and recreational activities; provided further, that $250,000 shall be expended for the study and implementation of parking management plans in municipalities that, due to residential, commercial or industrial development, require the development of demand-based parking to meet the needs of visitors to the municipality whether they be employees, customers of businesses or tourists; provided, that municipalities that demonstrate an average daily visitor population or at least 30,000 shall be given priority; provided further, that $250,000 shall be expended for the redevelopment of Stoughton Center in the town of Stoughton; provided further, that $250,000 shall be expended for repairs, enhancements and improved pedestrian access in the Melrose downtown business and historic district; provided further, that $100,000 shall be expended for infrastructure improvements to the Lynnway route 1A in the city of Lynn; provided further, that $100,000 shall be expended to the town of Buckland for the completion of the Clesson Brook Road bridge reconstruction project; provided further, that $150,000 shall be expended for improvements to the Fall River waterfront including parking accessibility and improvements to Jefferson Street; provided further, that $500,000 shall be expended for improving infrastructure along route 140 in the town of Boylston; provided further, that $200,000 shall be expended for  a workforce development grant to Into Action Recovery, Inc for the purchase and renovation of an opiate recovery treatment facility to promote economic development, workforce development and substance abuse recovery in the town of Tewksbury; provided further, that provided that $500,000 shall be expended for economic development linking state and local land to the business districts along the Route 3A Corridor in Weymouth and Hingham and along the Back River in the towns of Weymouth and Hingham; provided further, that $230,000 shall be expended for the repair of sidewalks along Granite avenue in the town of Milton; provided further, that $100,000 shall be expended for infrastructure improvements in the town of Templeton……………$6,322,000

7002-8019 For the Massachusetts Growth Capital Corporation established pursuant to section 2 of chapter 40W of the General Laws for a program to provide matching grants to community development financial institutions certified by the United States Treasury or community development corporations certified under chapter 40H of the General Laws to enable them to leverage federal or private investments for the purpose of making loans to small businesses; provided further, that $100,000 shall be expended to SEED Corporation in Taunton……………………………………………………………………………$1,000,000

7002-8021 For the Brownfields Redevelopment Fund established by section 29A of chapter 23G of the General Laws ……………………..…………………………..…………… $45,000,000

SECTION 2B.

EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT

Department of Housing and Community Development

7004-8016For the Smart Growth Housing Trust Fund established by section 35AA of chapter 10 of the General Laws……………………………………..…………….. $15,000,000

7004-8017 For the Urban Revitalization and Development Grant Program established by section 53 of chapter 121B of the General Laws……………………………………………….$1,000,000

SECTION 2C.

EXECUTIVE OFFICE OF EDUCATION

Office of the Secretary

7009-2005For a competitive grant program to be administered by the executive office of education, in consultation with the executive office of housing and economic development and the executive office of labor and workforce development, to provide funding for the purchase and installation of equipment, and any related improvements and renovations to facilities necessary for the installation and use of such equipment, for the purpose of establishing, upgrading and expanding career technical education and training programs that are aligned to regional economic and workforce development priorities; provided further, that grant applications may facilitate collaboration to provide students enrolled in eligible vocational-technical schools with post-secondary opportunities, consistent with clause (o) the first paragraph of section 22 of chapter 15A and section 37A of chapter 74 of the General Laws; provided further, that innovation centers that receive funds from the Massachusetts Life Sciences Center shall also be eligible for funds from this program; and provided further, that the executive office of education, in consultation with the executive office of housing and economic development and the executive office of labor and workforce development, shall adopt additional guidelines as necessary for the administration of the program; provided further, that not less than $250,000 be allocated for the purpose of job training at Holyoke Works; provided further, that $250,000 shall be expended for an employment training program for unemployed or underemployed young adults with disabilities, provided that funds shall be awarded competitively by the Executive Office of Labor and Workforce Development to community-based organizations with recognized success in creating strong collaborations with employers to consider young adults with disabilities and said organization shall provide extensive training and internship programming and ongoing post-placement support for participants and employers; provided further, that $100,000 shall be expended to the Central Massachusetts Center for Business and Enterprise to support  custom workforce training curriculums in the manufacturing industry through a higher learning institution within the Blackstone Valley; provided further, that $25,000,000 shall be expended on an employer-employee training grant program pursuant to section 57 of chapter 74 of the General Laws ………………………..…….. $70,600,000

7009-2006 For competitive grants to cities, towns, regional school districts and institutions of public higher education for the establishment and implementation of early college high school programs; provided, that the programs shall support students who work simultaneously on the completion of a high school diploma from the partnering school district while also earning free college credits towards an associate degree or certificate at the partnering institution of higher education; provided further, that the programs shall provide full access to college support services, student activities and tutoring and shall ensure holistic wrap-around support which meets the academic, social and emotional needs of the student and shall ensure full access to the same for students with physical or learning disabilities; provided further, that in awarding these grants, preference shall be given to innovative joint proposals, developed by partnering school districts, colleges and local and regional nonprofits where appropriate; and provided further, that the grants shall be awarded, to the extent feasible, in a manner that reflects geographic and demographic diversity……….………………………………..$2,400,000

MASSACHUSETTS DEPARTMENT OF TRANSPORTATION

Office of the Secretary

6720-1340  To mitigate or contribute toward any costs associated with or arising out or improvements to the Conley Terminal in South Boston, including, but not limited to, berth construction and crane procurement; provided further, that funds shall be expended for investment in infrastructure improvements to the World Trade Center and other maritime facilities to accommodate future maritime uses, including Sail Boston 2017/Tall Ships ………………………………………..$109,500,000

EXECUTIVE OFFICE OF ENERGY AND ENVIRONMENTAL AFFAIRS

Department of Conservation and Recreation

2800-7109 For the design, construction, reconstruction, improvement or rehabilitation of department or navigable coastal and inland waterways projects including, but not limited to, dredging for the purpose of promoting trade, tourism and other economic benefits on a local, regional or statewide basis………………………………………….……………..$5,000,0000

EXECUTIVE OFFICE OF PUBLIC SAFETY AND HOMELAND SECURITY

Office of the Secretary

8100-0026 For the State Police and the Boston Regional Intelligence Center/Boston Police Department to enhance and expand technology and protocols to establish and improve programs for the prevention of economic cybercrime, terrorist activities, organized crime, including gangs, and to enhance emergency response and transportation infrastructure alerts and drug interdiction in accordance with an interagency agreement. The interagency agreement shall provide protocols to coordinate and share information and data aggregation developed by the parties and provide assistance and cooperation with the business community, the gateway communities, regional fusion centers, the Massachusetts Port Authority and the Mass Bay Transit Authority……………………………………………………………………….$25,000,000

SECTION 3. Section 7 of chapter 4 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in line 75, the words “and (v)” and inserting in place thereof the following words:- (v) charitable gaming conducted under said chapter 271; and (vi) a fantasy contest conducted under chapter 110I.             

SECTION 4.  Section 18 of chapter 21A of the General Laws, as so appearing , is hereby amended by striking out, in line 269, the figure “3D” and inserting in place thereof the following figure:-  3G.

SECTION 5.  Section 2 of chapter 21E of the General Laws, as so appearing, is hereby amended by striking out, in line 80, the figure “3D” and inserting in place thereof the following figure:-  3G.

SECTION 6.  Chapter 23A of the General Laws is hereby amended by striking out sections 3A to 3G, inclusive, as so appearing,  and inserting in place thereof the following 9 sections:-

Section 3A.(a)The Economic Development Incentive Program shall be administered by the EACC, under the oversight of the secretary of housing and economic development, to provide incentives that stimulate job creation and investment of private capital and to promote economic growth and expand economic opportunity to all areas of the commonwealth.  EDIP tax credits and other incentives shall be administered to stimulate job creation, attract new business activity and promote investment that would not otherwise occur in the commonwealth.

(b)As used in sections 3A to 3H, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Affiliate”, any business which directly or indirectly controls another business, is controlled by another business, or is under direct or indirect common control of at least 1 other business, including, but without limitation, any business with whom a business is merged or consolidated, or which purchases all or substantially all of the assets of a business.

“Alternative EDIP tax credits”, tax credits that may be awarded to the controlling business of a certified project that has been designated as an extraordinary economic development opportunity, or to an affiliate of the controlling business, as allowed by paragraph (3) of subsection (g) of section 6 of chapter 62, or subsection (b) of section 38N of chapter 63.

“Business”, a corporation, partnership, firm, unincorporated association or other entity engaging or proposing to engage in economic activity within the commonwealth, and any affiliate thereof, which is subject to taxation under chapter 62 or chapter 63.

“Certified project”, a proposed project that is certified by the EACC pursuant to section 3C.

“Controlling business”, a business that owns, leases or has the power to direct the operation or management of all or a portion of a facility at which the business employs, or intends to employ, permanent full-time employees.

“EACC”, the economic assistance coordinating council established pursuant to section 3B.

“EDIP contract”, a written and enforceable agreement between MOBD and the recipient of EDIP tax credits setting forth the amount of credits awarded, the schedule on which the credits may be claimed, any restriction on the carryover of unused credits, the consequences for failing to produce the projected new jobs or new investment, and such other terms and conditions as MOBD may in its discretion require.

“EDIP tax credits”, the tax credits authorized by the EACC pursuant to section 3D and claimed by a taxpayer pursuant to subsection (g) of section (6) of chapter 62 or section 38N of chapter 63.

“Expansion of an existing facility”, the relocation of business functions and employees from one location in the commonwealth to another location in the commonwealth, or the expansion of an existing facility located in the commonwealth, provided that such relocation or expansion results in a net increase in the number of permanent full-time employees at the relocated or expanded facility.

“Extraordinary economic development opportunity”, a proposed project that is jointly designated by the secretary of housing and economic development and the secretary of administration and finance as an extraordinary economic development opportunity as provided in subsection (d) of section 3C. 

“Facility”, the real property, which may include multiple buildings or locations, owned or leased, on which a business is undertaking or will undertake a commercial, manufacturing or industrial activity.

“Gateway municipality”, a municipality with a population greater than 35,000 and less than 250,000, a median household income below the commonwealth’s average and a rate of educational attainment of a bachelor’s degree or above that is below the commonwealth’s average.

“Material non-compliance”, the failure of a controlling business to substantially achieve the capital investment, job creation, job retention or other economic benefits set forth in the EDIP contract, or any other act, omission or misrepresentation by the controlling business that frustrates the public purpose of the economic development incentive program.

“MOBD”, the Massachusetts office of business development established in section 1.

“Municipal project endorsement”, an endorsement of a proposed project by the municipality in which a proposed project will be located, which must include: (i) a finding by the municipality that the proposed project is consistent with the municipality’s economic development objectives; (ii) a finding by the municipality that the proponent of the proposed project has the means to undertake and complete the proposed project; (iii) a finding by the municipality that the proposed project will have a reasonable chance of increasing or retaining employment opportunities as advanced in the proposal; (iv) a determination by the municipality that the proposed project will not overburden the municipality’s infrastructure and other supporting resources; and (v) a description of the local tax incentive, if any, offered by the municipality in support of the proposed project, together with a copy of the fully executed tax increment financing agreement or the fully executed agreement setting forth the terms of the special tax assessment, as applicable. 

“Municipality”, a city or town in the commonwealth or, in a case in which 2 or more cities or towns agree to act jointly for some purpose hereunder pursuant to a collaborative agreement, collectively, all cities and towns participating in the collaborative agreement.

“Permanent full-time employee”, an individual who is paid wages by a controlling business and who: (i) at the inception of the employment relationship does not have a termination date which is either a date certain or determined with reference to the completion of some specified scope of work; (ii) works at least 35 hours per week; and (iii) receives employee benefits at least equal to those provided to other full-time employees of the controlling business.   For purposes of this chapter, the term permanent full-time employee shall not include any contractors or part-time employees who may be included in a calculation of the controlling business’s full-time equivalent workforce.

“Proportion of compliance”, a fraction which has as its numerator the number of actual permanent full-time employees at a facility and which has as its denominator the number of permanent full-time employees required to be employed at the facility under the terms of an EDIP contract.

“Proposed project”, a proposal submitted by a controlling business to the EACC for designation as a certified project.

“Real estate project”, the construction, rehabilitation or improvement of 1 or more buildings or other structures on a parcel of real property, which, when completed, will result in an increase in the assessed value of the real property of at least 100 per cent over the assessed value of said real property prior to the project.

“Refundable credit”, a tax credit awarded pursuant to this chapter that is not limited by the amount of the controlling business’s tax liability and which may result in a payment from the department of revenue to the controlling business.

“Replacement of an existing facility”, the relocation of business functions and personnel from 1 facility located in the commonwealth to another facility in the commonwealth, or the improvement of an existing facility; provided that such relocation or improvement does not qualify as an expansion of the existing facility.

“Special tax assessment”, a temporary reduction in real property tax offered by a municipality and approved by the EACC in accordance with subsection (c) of section 3E. 

“Tax increment financing agreement”, a binding agreement between a municipality and a real property owner consistent with the requirements of subsection (b) of section 3E, and with section 59 of chapter 40.

“TIF”, tax increment financing.

Section 3B.  (a) There shall be an economic assistance coordinating council established within MOBD consisting of: the secretary of housing and economic development or the secretary’s designee, who shall serve as co-chairperson; the director of housing and community development or a designee, who shall serve as co-chairperson; a second person designated by the secretary of housing and economic development; the director of career services or a designee; the secretary of labor and workforce development or a designee; the director of the office of business development or a designee; the president of the Commonwealth Corporation or a designee; and 7 persons 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 a representative of a higher educational institution within the commonwealth and 1 of whom shall be from the Merrimack Valley. Persons appointed by the governor shall have expertise in issues pertaining to training, business relocation or inner-city and rural development, and shall be knowledgeable in public policy or international and state economic and industrial trends.  Each member appointed by the governor shall serve at the pleasure of the governor.  The council shall adopt by-laws to govern its affairs.

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

(1) promulgate regulations and adopt policies and guidance to effectuate the purposes of sections 3A to 3H, inclusive;

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

(3) certify and approve tax increment financing agreements and special tax assessments pursuant to section 3E and section 59 of chapter 40;

(4)authorize municipalities to apply to the foreign trade zone board for the privilege of establishing, operating and maintaining a foreign trade zone in accordance with section 3G;

(5) assist municipalities in obtaining state and federal resources and assistance for certified projects and other job creation and retention opportunities within the commonwealth;

(6) provide appropriate coordination with other state programs, agencies, authorities and public instrumentalities to enable certified projects and other job creation and retention opportunities to be more effectively promoted by the commonwealth; and

(7) monitor the implementation of the economic development incentive program.

(c) The secretary of housing and economic development shall appoint within MOBD a director of economic assistance who shall be responsible for administering the EDIP in consultation with the secretary of housing and economic development, the director of MOBD and the EACC.  The director of economic assistance shall advise the EACC on matters related to the EDIP, but shall not serve as a member of the EACC.  MOBD shall annually submit to the governor, the senate and the house ways and means committees, and the joint committee on economic development and emerging technologies, within 90 days after the end of its fiscal year, a report setting forth its operations and accomplishments, including a listing of all projects certified under the EDIP.  Such report shall also include recommended policies or actions, if any, to improve the effectiveness of the EDIP.

Section 3C.(a)A controlling business may petition the EACC to certify a proposed project that will create new permanent full-time employees within the commonwealth.  Every proposed project submitted by a controlling business to the EACC for review and certification shall include a detailed description of the proposed project; a representation by the controlling business regarding the amount of capital investment to be made, the number of new jobs to be created, the number of existing jobs to be retained; a representation by the controlling business regarding any other economic benefits or other public benefits expected to result from the construction of the proposed project; a municipal project endorsement; and such other information as the EACC shall require by regulation, policy or guidance.

(b)Upon receipt of a complete project proposal and municipal project endorsement, the EACC may certify the proposed project, deny certification of the proposed project, or certify the proposed project with conditions.  In order to certify a proposed project, with or without conditions, the EACC shall make the following required findings based on the project proposal, the municipal project endorsement, and such additional investigation, if any, as the EACC shall make and incorporate in its minutes: 

(1)the proposed project is located or will be located within the commonwealth;

(2)if the controlling business has 1 or more existing facilities in the commonwealth, then the proposed project is an expansion of an existing facility and not merely the replacement of an existing facility, except in the case of a proposed project that will enable a controlling business to retain jobs in a gateway city as provided in subclause (ii) of clause (3), or

(3)the proposed project will either (i) enable the controlling business to hire new permanent full-time employees in the commonwealth, or (ii) enable the controlling business to retain at least 50 permanent full-time jobs at a facility located in a gateway city, or in an adjacent city or town that is accessible by public transportation to residents of a gateway city, and such jobs otherwise would be relocated outside of the commonwealth; 

(4) the controlling business shall commit to maintain new and retained jobs for a period of at least 5 years after the completion of the proposed project;

(5)the proposed project appears to be economically feasible, and the controlling business has the financial and other means to undertake and complete the proposed project,

(6)unless the proposed project will be located in a gateway municipality, a duly authorized representative of the controlling business has certified to the EACC that the controlling business would not undertake the proposed project but for the EDIP tax credits and local tax incentives available to it under this chapter; and

(7)the proposed project complies with all applicable statutory requirements and with such other criteria that the EACC may from time to time prescribe by regulation, policy or guidance.

The EACC shall by regulation, policy or guidelines provide for the contents of an application for project certification, which may include a requirement that the controlling business provide written evidence to support the certification provided for in clause (6) .

(c)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. 

(d) The secretary of housing and economic development and the secretary of administration and finance may from time to time jointly designate a proposed project as an extraordinary economic development opportunity if the secretaries jointly determine that the proposed project involves the construction or substantial rehabilitation of a new facility or expansion of an existing facility within the commonwealth that is not a replacement of an existing facility in the commonwealth, or involves the relocation of an existing business to the commonwealth from a facility located outside of the commonwealth, and the proposed project meets at least 1 of the following additional criteria:

(1)The proposed project, if approved and constructed, will create at least 400 new jobs; or

(2)The proposed project, if approved and constructed, will result in the creation of at least 200 new jobs in a gateway municipality or in an adjacent city or town that is accessible by public transportation to residents of a gateway municipality.

The secretary of housing and economic development shall promulgate such rules and regulations necessary to implement the provisions of this subsection. The decision by the secretaries to designate or not to designate a proposed project as an extraordinary economic development opportunity shall be a decision that is within the sole discretion of each of the secretaries, and may include such conditions as the secretaries shall in their discretion impose.  Such decisions shall be final and shall not be subject to administrative appeal or judicial review under chapter 30A or give rise to any other cause of action or legal or equitable claim or remedy.

Section 3D. (a)The EACC may award to the controlling business of a certified project, or to its affiliate, tax credits available under subsection (g) of section 6 of chapter 62 or section 38N of chapter 63.  The amount of any such credits awarded, and the schedule on which such credits may be claimed, shall be determined by the EACC based on the following criteria:

(1) the degree to which the certified project is expected to increase employment opportunities for residents of the commonwealth, with consideration given to the number of new full-time jobs to be created, the number of full-time jobs to be retained, the salary or other compensation that will be paid to the employees, and the amount of new state income tax to be generated;

(2)the timeframe within which new jobs will be created and the commitment of the controlling business for how long they will be maintained, with preference given to certified projects in which a significant portion of the new jobs shall be created within 2 years;

(3)the amount of capital to be invested by the controlling business in the certified project;

(4) the degree to which the certified project is expected to generate net new economic activity within the commonwealth by generating substantial sales from outside of the commonwealth;

(5)the extent to which the certified project is expected to contribute to the economic revitalization of a gateway municipality or increase employment opportunities to residents of a gateway municipality;

(6) the economic need of the municipality or region in which the certified project is located, as determined by income levels, employment levels or educational attainment level; and

(7)commitments, if any, made by the controlling business to use Massachusetts firms, suppliers and vendors, or to retain women or minority-owned businesses, during the construction of the certified project.

The EACC shall have discretion as to how to weigh and apply these criteria.  When making an award of tax credits pursuant to subsection (g) of section 6 of chapter 62 and section 38N of chapter 63, the EACC may at its sole discretion limit the award to a specific dollar amount, may specify the schedule on which such credits may be claimed, and may limit or restrict the right of the controlling business to carry unused credits forward to future tax years.  When a controlling business expects that new jobs will be created over a period of multiple years, the EACC award of tax credits may allocate and make such credits available to the taxpayer on a schedule that ensures credits are claimed on or after the date that the jobs are created.

(b)A certified project that has been designated as an extraordinary economic development opportunity shall be eligible, at the discretion of the secretary of housing and economic development and the secretary of administration and finance, for the alternative EDIP tax credit provided for in paragraph (3) of subsection (g) of section 6 of chapter 62 and subsection (b) of section 38N of chapter 63.  The EACC shall not make an award of alternative EDIP tax credits unless the award of such credits is expressly authorized by the secretaries in their decision to designate a certified project as an extraordinary economic development opportunity.  A controlling business that receives an award of alternative EDIP tax credits shall not be eligible to receive any other EDIP tax credits for the same certified project.

(c)The EACC may grant refundable credits to a certified project; provided that the EACC shall not authorize more than $5,000,000 in refundable credits for any single calendar year.  Refundable credits awarded to a certified project that has been designated as an extraordinary economic development opportunity shall not be counted against the cap set forth in this subsection.

(d)The total amount of credits that may be authorized by the EACC under this section for any single calendar year shall not exceed $30,000,000, to be calculated in accordance with the relevant provisions of subsection (g) of section 6 of chapter 62 and section 38N of chapter 63.  Notwithstanding the cap set forth in the preceding sentence, the EACC may authorize credits in excess of the annual cap of $30,000,000 for a certified project that is designated as an extraordinary economic development opportunity; provided that the total amount awarded shall not exceed $50,000,000 in a calendar year.  The EACC may authorize an award of credits to a controlling business that spans multiple years so long as the total amount of credits due to be taken in any single calendar year does not exceed the applicable cap. 

(e)MOBD shall require the recipient of tax credits awarded pursuant to this section to execute an EDIP contract after the EACC awards tax credits under this section.

(f)The decision by the EACC to certify or deny certification to a proposed project pursuant to section 3C, and the decision by the EACC to award or deny tax credits to the controlling business of a certified project pursuant to this section, including without limitation the amount of such award, and any conditions or limitations on such award, shall be decisions that are within the sole discretion of the EACC.  Such decisions by the EACC shall be final and shall not be subject to administrative appeal or judicial review under chapter 30A or give rise to any other cause of action or legal or equitable claim or remedy.

Section 3E. (a) A municipality may offer a local tax incentive to the owner or controlling business of a certified project, or to the owner of a real estate project, if the municipality determines such project is consistent with the municipality’s economic development objectives and is likely to increase or retain employment opportunities for residents of the municipality.

(b)Tax increment financing may be offered by a municipality in accordance with section 59 of chapter 40 to the controlling business of a certified project, or to any person or entity undertaking a real estate project, or to any person or entity expanding a facility in an area designated by the EACC as a TIF-eligible area.  The EACC may designate an area as a TIF-eligible area if it finds, upon petition from the municipality, that there is a strong likelihood that any 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; or (iii) a private project or investment that will contribute significantly to the resiliency of the local economy.  

If a municipality offers tax increment financing to the owner of a certified project, the municipal project endorsement for said certified project shall include a fully executed copy of the tax increment financing agreement adopted in accordance with section 59 of chapter 40.  Any tax increment financing agreement shall be approved by the EACC before it shall be valid and enforceable.  The EACC may approve such tax increment financing agreement pursuant to regulations adopted by the EACC.  Any such approval shall include a finding, reflected in the EACC’s minutes, that the tax increment financing agreement complies with said section 59 of said chapter 40 and will further the public purpose of encouraging increased industrial and commercial activity in the commonwealth.

(c)A municipality may offer a special tax assessment to the controlling business of a certified project, or to a person or entity undertaking a real estate project, or to a person or entity proposing to retain permanent full-time jobs at a facility that otherwise would be at risk of relocating outside of the commonwealth.  Any special tax assessment shall be set forth in a written agreement between the municipality and the property owner.  Such agreement shall set forth the amount of the tax reduction and the period of time over which such reduction shall be in effect, which shall be not fewer than 5 years or more than 20 years.  Every special tax assessment approved by the EACC shall provide for a reduction of the real property tax that otherwise would be due based on a percentage reduction in the tax that otherwise would be due based on the full assessed value of the affected property.  The special tax assessment shall provide for tax reduction at least equal to the following:

(1)in the first year, the tax reduction shall be at least 50 per cent of the tax that would be due based on the full assessed value of the affected property;

(2)in the second and third years, the tax reduction shall be at least 25 per cent of the tax that would be due based on the full assessed value of the affected property;

(3)in the fourth and fifth years, the tax reduction shall be at least 5 per cent of the tax that would be due based on the full assessed value of the affected property.

The municipality may at its discretion provide for greater real property tax reductions than provided in clauses (1) to (3) ,inclusive.

The written agreement required by the first paragraph of this subsection shall be approved by the EACC before it shall be valid and enforceable.  The EACC may approve such special tax assessments pursuant to rules or regulations adopted by the EACC if the EACC determines that: (i) the municipality has made a formal determination that the property owner is either undertaking a project or making other investment that will contribute to economic revitalization of the municipality and will significantly increase employment opportunities for residents of the municipality, or is retaining permanent full-time employees that otherwise would be relocated to a facility outside the commonwealth; (ii) the special tax assessment is reasonably necessary to enable the owner’s investment in the project or to retain the jobs that otherwise would be relocated; and (iii) the total amount of local tax foregone is reasonably proportionate to the public benefits resulting from the special tax assessment.  Any such approval shall include a finding, reflected in the EACC’s minutes, that the special tax assessment complies with the requirements of this section.

(d)Any tax increment financing agreement or special tax assessment approved by the EACC may not be amended without the approval of the EACC.

Section 3F. (a)No later than 2 years after the initial certification of a project by the EACC, and annually thereafter, the controlling business or affiliate awarded EDIP tax credits shall file with MOBD a report, signed by an authorized representative of the controlling business or affiliate, certifying whether the controlling business or affiliate has achieved the job creation projections, job retention projections and other material obligations or representations set forth in the EDIP contract. 

(b)In the event that MOBD shall find that a controlling business or an affiliate is in material non-compliance with a representation made to the EACC in its application for project certification or the obligations set forth in an EDIP contract, MOBD may recommend to the EACC that it revoke the project certification.  Prior to making such recommendation, MOBD shall provide written notice to the controlling business stating the basis for the recommended revocation and offering the controlling business an opportunity for a hearing at which the controlling business may contest the basis for the recommendation or establish mitigating circumstances which may be relevant to the recommendation.

(c)The EACC may revoke a project certification if it determines that a controlling business or affiliate is in material non-compliance with a representation made in its application for project certification or the obligations set forth in an EDIP contract.  The EACC shall have the discretion to determine whether material non-compliance shall result in revocation of a project certification, taking into account:

(1)the conduct of the controlling business subsequent to the project certification;

(2)the extent to which the material non-compliance is the result of unforeseen conditions that are outside the control of the controlling business;

(3)the potential impact on the municipality in which the certified project is located; and

(4)such other considerations as the EACC shall establish by regulation or  policy.

Where the EACC determines that material non-compliance is due to factors outside the control of the controlling business, the EACC may elect to provide the controlling business with reasonable opportunity to cure the material non-compliance.  If the EACC revokes a project’s certification, it shall determine the proportion of compliance with job creation requirements applicable to the certified project, and shall report the proportion of compliance to the controlling business and to the department of revenue.

(d)Revocation of a project certification shall take effect on the first day of the tax year in which the material non-compliance occurred, as determined by the EACC.  If the EACC revokes a project certification, then: (i) all EDIP tax credits available to the controlling business shall be recaptured in accordance with subsection (g) of section 6 of chapter 62 and subsection (i) of section 38N of chapter 63; and (ii) the local tax incentive, if any, shall terminate unless the written agreements between the municipality and the controlling business provide otherwise.  In the event of such termination, the municipality may, at its discretion, preserve the local tax incentive by amending the written agreement with the controlling business in the same manner as the municipality approved it, and submitting such amendment to the EACC for approval in accordance with this section. 

(e)If a controlling business has claimed tax credits awarded under this chapter prior to the date on which the EACC makes a determination to revoke project certification, then the recapture provisions of subsection (g) of section 6 of chapter 62 and subsection (i) of section 38N of chapter 63 shall apply.  If a controlling business has benefited from a local tax incentive under this chapter prior to the revocation of a project certification, then notwithstanding any provision of the general laws to the contrary, the municipality that offered the local tax incentive may recapture the value of the tax not paid by making a special assessment on the controlling business in the tax year that follows the EACC’s decision to revoke project certification.  The assessment, payment and collection of the special assessment shall be governed by procedures provided for the taxation of omitted property under section 75 of chapter 59 notwithstanding the time period set forth in said chapter 59 for which omitted property assessments may be imposed for each of the fiscal years included in the special assessment.

Section 3G. (a)The EACC may designate 1 or more areas of the commonwealth as an economic target area or economic opportunity area in connection with an application from a municipality seeking such designation under the federal empowerment zones and enterprise communities program, so called, or other local, state or federal programs that contemplate such designations.  Designations of new economic target areas, if any, shall be made in accordance with the criteria set forth in subsection (b).  Designations of new economic opportunity areas, if any, shall be made at the discretion of the EACC in accordance with regulations to be promulgated by the EACC, or rules or policies adopted by the EACC.

(b)The EACC may from time to time designate as an economic target area an area of the commonwealth comprised of 3 or more contiguous census tracts or 1 or more contiguous municipalities, provided that the area proposed for designation meets 1 of the following criteria: 

(1) the proposed economic target area has an unemployment rate that exceeds the statewide average by at least 25 per cent;

(2)if the proposed economic target area is located in a metropolitan area, then at least 51 per cent of the households in the proposed economic target area have incomes that are below 80 per cent of the median income for households in the metropolitan area;

(3)if the proposed economic target area is not located in a metropolitan area, then at least 51 per cent of the households in the proposed economic target area have incomes that are below 80 per cent of the median income for households in the commonwealth;

(4)the proposed economic target area has a poverty rate which is at least 20 per cent higher than the average poverty rate for the commonwealth;

(5)the area proposed for designation has heightened economic need due to: (i) an industrial or military base closure; (ii) the presence of underutilized maritime or electric generation facilities; or (iii) a commercial vacancy rate exceeding 20 per cent; or

(6) the area proposed for designation has exceptional potential for economic development as a result of: (i) the proposed redevelopment of blighted real estate or abandoned buildings totaling at least 1,000,000 square feet; (ii) the proposed establishment of a regional technology center of 3,000,000 or more square feet; or (iii) the proposed development of a Class I renewable energy generating facility.

(c)Any municipality which contains an economic opportunity may make application to the foreign trade zone board in accordance with 19 U.S.C. sections 81(a) to 81(u), inclusive, for a grant to said city or town for the privilege of establishing, operating and maintaining a foreign trade zone within its economic opportunity area.  Upon petition from a city or town, the EACC may authorize any other city or town to make application to said foreign trade zone board for a grant to said city or town for the privilege of establishing, operating and maintaining a foreign trade zone.

SECTION 7.  Subsection (a) of section 3J of said chapter 23A, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

The Massachusetts office of business development shall establish a plan to support regionally-based efforts to grow and retain existing businesses and attract new business to the commonwealth.  To implement the regional plan and to provide efficient and consistent response to businesses seeking assistance from the commonwealth, the office shall contract with regional economic development organizations, as defined in section 3K.  The contracts and reimbursements shall be designed to support regionally-based efforts to stimulate, encourage, facilitate and nurture economic growth and prosperity in the commonwealth, including, but not limited to, the identification of regional competitive strengths, challenges and opportunities, regional cluster development strategies, long-range regional skills pipeline, transportation and land use planning, and other systems-based activities related to the growth and retention of existing businesses and the attraction of new businesses into the commonwealth. The contracts shall support a network of partnerships between regional economic development organizations and the Massachusetts office of business development.

SECTION 8.  Said section 3J of said chapter 23A, as so appearing, is hereby further amended by striking out subsection (c) and inserting in place thereof the following subsection:-

(c) Contracts for services entered into under this section shall include, but not be limited to, the following services to be performed by the organization on behalf of the commonwealth: (i) assess regional competitive strengths, weaknesses and opportunities; (ii) represent the regional business community in long-range skills pipeline planning efforts to ensure robust skills and talent pipelines that meet regional needs; (iii) represent the regional business community in collaborative, long-range skills, transportation and land use planning; (iv) promote regionally significant industry clusters; (v) promote connections across sectors of the regional economy; (vi) maintain an inventory of key development parcels; (vii) market the region in coordination with the Massachusetts marketing partnership established under section 13A; and (viii) furnish advice and assistance to businesses and industrial prospects which may locate in the region.

SECTION 9. Section 65 of said chapter 23A, added by section 12 of chapter 286 of the acts of 2014, is hereby amended by striking out subsection (j) and inserting in place thereof the following subsection:-

(j) The department shall consult with the Massachusetts department of agricultural resources in the development and implementation of the Massachusetts food trust program. To the maximum extent feasible, a community development financial institution and the department shall seek to align efforts with the recommendations of the Massachusetts local food action plan accepted by the Massachusetts food policy council in 2015, or subsequent plans accepted by said council.

SECTION 10. Said chapter 23A is hereby further amended by striking out section 65, added by section 29 of chapter 287 of the acts of 2014, and inserting in place thereof the following section:-

Section 67. (a) The secretary of housing and economic development shall establish a financial services advisory council in the executive office of housing and economic development, which shall have the sole purpose of advising the governor or the governor's designee on policies, strategies and initiatives designed to preserve and advance the competitiveness and leadership of the commonwealth's financial services industry, including the banking, investment management and insurance sectors.

(b) The council shall be composed of 15 members including: the secretary of housing and economic development, who shall serve as chair; the house and senate chairs of the joint committee on economic development and emerging technologies; the house and senate chairs of the joint committee on financial services; the commissioner of higher education; the executive director of the Massachusetts international trade office established in section 13K; and 8 representatives of the business community who shall be appointed by the secretary of housing and economic development, including at least 2 business representatives from each of the following sectors: banking, investment management and insurance sectors; at least 1 business representative shall be from a company whose headquarters is located in Suffolk, Middlesex, Essex, Norfolk or Worcester county; at least 1 business representative shall be from a company whose headquarters is located in Hampshire, Hampden, Franklin or Berkshire county; and at least 1 business representative shall be from a company whose headquarters is located in Bristol, Plymouth, Nantucket, Dukes or Barnstable county. The secretary, in making such appointments, shall consider the size of the business representative's company, including its employee base within the commonwealth and the amount of assets under management or premiums in force. Business representatives shall be appointed for 2-year terms and may be reappointed without limitation on the number of terms.

(c) The council shall convene at least 3 meetings per calendar year to exchange ideas and develop strategies for business and government to work together to strengthen the financial services industry in areas such as public policy, workforce development, international trade and direct foreign investment and industry promotion.

SECTION 11.  Subsection (c) of section 5 of chapter 23G of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out clause  (1) and inserting in place thereof the following clause -

(1) that the loan is to be secured by a mortgage or security interest in, real or personal property, or a combination thereof, deemed satisfactory to the board.

SECTION 12.   Said subsection (c) of said section 5 of said chapter 23G, as so appearing, is hereby further amended by striking out clause  (8) and inserting in place thereof the following clause:-

(8) that the principal amount of the loan, excluding any portion thereof the proceeds of which are to fund reserves and disregarding any other funds or other arrangements obtained for reserve purposes,  does not exceed the value of the sum of all assets securing the loan as determined by the agency.

SECTION 13.  Section 7 of said  chapter 23G , as so appearing, is hereby amended by striking out, in line 31, the figure “$500,000” and inserting in place thereof the following figure:-  $1,000,000.  

SECTION 14.  Section 8 of chapter 23H of the General Laws, as so appearing, is hereby amended by striking out, in lines 7 and 8, the words “persons residing in economic opportunity areas,”.

SECTION 15.  Section 5 of chapter 23I of the General Laws, as so appearing, is hereby amended by striking out, in line 69, the words “in an economic opportunity area pursuant to section 3F” and inserting in place thereof the following words:- as defined in section 3A.

SECTION 16.  Section 49 of chapter 23K of the General Laws, as so appearing, is hereby amended by striking out in line 3, the figure “3F” and inserting in place thereof the following figure:- 3C.

SECTION 17. Said section 49 of said chapter 23K, as so appearing, is hereby further amended by striking out, in line 5, the figure “3E” and inserting in place thereof the following figure:- 3G.

SECTION 18.  Said section 49 of said chapter 23K, as so appearing, is hereby further amended by striking out, in lines 25and  26, the words, “the economic opportunity area” and inserting in place thereof the following words:-  EDIP tax credit and alternative EDIP tax.

SECTION 19.  Section 59 of chapter 40 of the General Laws, as so appearing, is hereby amended by striking out, in lines 11 to 15, inclusive, the words “an economic target area or an area presenting exceptional opportunities for increased economic development, as defined by section 3D of chapter 23A and as may be defined further by regulations adopted by the economic assistance coordinating council” and inserting in place thereof the following words:- an economic target area as defined in section 3G of chapter 23A, or an area designated by the economic assistance coordinating council as a TIF-eligible area pursuant to subsection (b) of section 3E of said chapter 23A.

SECTION 20. Said section 59 of said chapter 40, as so appearing, is hereby further amended by striking out, in lines 84 and 88, the figure “3F” and inserting in place thereof, in each instance, the figure:- 3E.

SECTION 21.  Section 60 of said chapter 40, as so appearing, is hereby amended by striking out, in lines 5 to 7, inclusive,  the words “the director of housing and community development, in consultation with the department of economic development and” and inserting in place thereof the following words:-  the department of housing and community development, in consultation with.

SECTION 22.  Said section 60 of chapter 40, as so appearing, is hereby further amended by striking out, in lines 15 to 18, inclusive,  the words “characterized by a predominance of commercial land uses, a high daytime or business population, a high concentration of daytime traffic and parking” and inserting in place thereof the following words:- located within an area of concentrated development, as that term is defined in section 2 of chapter 40R, characterized by a predominance of commercial land uses.

SECTION 23.  Subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii)  describe the construction, reconstruction, rehabilitation and related activities, public and private, contemplated for such UCH-TIF zone as of the date of the adoption of the UCH-TIF plan; provided, however, that in the case of public construction as aforesaid, the UCH-TIF plan shall include a detailed projection of the costs and a betterment schedule for the defrayal of such costs; provided further, that the UCH-TIF plan shall provide that no costs of such public construction shall be recovered through betterments or special assessments imposed on a party which has not executed an UCH-TIF agreement in accordance with clause (v); and provided, further, that in the case of private construction as aforesaid, the UCH-TIF plan shall include the types of affordable housing and residential and commercial growth which are projected to occur within such UCH-TIF zone together with such documentary evidence of the projected public benefits as are required by the regulations;

SECTION 24.  Clause (iii) of subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out  subclauses (1) to (3), inclusive,  and inserting in place thereof the following 2  subclauses:-

(1)the numerator of which shall be:

In an UCH-TIF zone where the property includes primarily residential uses, the total assessed value of all parcels of all residential real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment factor for the current fiscal year attributable to the residential real estate as determined by the commissioner of revenue pursuant to paragraph (f) of section 21C of said chapter 59; or

In an UCH-TIF zone where the property includes a mix of residential and commercial uses, the total assessed value of all parcels of all residential and commercial real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment factor for the current fiscal year attributable to the residential and commercial real estate as determined by the commissioner of revenue pursuant to said paragraph (f) of said section 21C of said chapter 59; and

(2) 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 such ratio should not be less than 1.

SECTION 25.   Said  subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out clause (v) and inserting in place thereof the following clause:-

(v) state that each owner of property located in an UCH-TIF zone seeking to establish eligibility for tax increment exemptions from annual property taxes pursuant to clause (iii) shall execute an agreement, hereinafter referred to as an UCH-TIF agreement, with the city or town, the form of which shall be included as an attachment to the UCH-TIF plan.  The UCH-TIF agreement shall include, but not be limited to, the following: (1) all material representations of the parties which served as a basis for the granting of a UCH-TIF exemption; (2) any terms deemed appropriate by the city or town relative to compliance with the UCH-TIF agreement including, but not limited to, what shall constitute a default by the property owner and what remedies shall be allowed between the parties for any such defaults, including an early termination of the agreement; (3) provisions requiring that one of the affordability thresholds described in subsection (b) is met; (4) provisions stating that housing units that meet the affordability requirements of subsection (b) shall be subject to use restrictions as defined in this section; (5) 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 a parcel of real property pursuant to clauses (iii) and (iv); (6) a detailed recitation of all other benefits and responsibilities inuring to and assumed by the parties to an agreement; and (7) a provision that the agreement shall be binding upon subsequent owners of the parcel of real property; and

SECTION 26.  Said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out subsections (b) to (e), inclusive, and inserting in place thereof the following 5 subsections:-

(b) As a condition of the granting of an UCH-TIF exemption, a property owner must satisfy 1 of the following affordability thresholds: 

(i)At least 15 per cent of the housing units assisted by the UCH-TIF agreement shall be affordable to occupants or families with incomes at or below 80 per cent of the area median income where the city or town is located, as defined by the United States Department of Housing and Urban Development, hereinafter referred to as AMI; or

(ii)At least 25 per cent of the housing units assisted by the UCH-TIF agreement shall be affordable to occupants or families with incomes at or below 110 per cent of the AMI; or

(iii)The property shall satisfy the requirements of an existing inclusionary zoning ordinance or by-law in the city or town, under which the property owner is required to make a portion of the housing units assisted by the UCH-TIF agreement affordable to low- and moderate-income households.

In addition, to support a finding of public benefit based on residential and commercial growth in an urban center, at least one of the following conditions must be met:

(i) The UCH-TIF zone has either: (1) an unemployment rate that exceeds the statewide average by at least 25 per cent, (2) a commercial vacancy rate of 15 per cent or more; or (3) an average household income below 115 per cent of the AMI;

(ii) At least 51 per cent of the land area within the UCH-TIF zone is located within a qualified census tract, as defined in Section 42(d)(5) of the Internal Revenue Code; or

(iii) At least 51per cent  of the land area within the UCH-TIF zone constitutes a: (1) blighted open area, (2) decadent area or (3) sub-standard area, as defined in section 1 of chapter 121A.

(c)The department of housing and community development shall review each UCH-TIF plan to determine whether it complies with the terms of this section and any regulations adopted by the department; provided further, that the department shall certify, based upon the information submitted in support of the UCH-TIF plan by the city or town and through such additional investigation as the department may make, that the plan is consistent with the requirements of this section and will further the public purpose of encouraging increased residential growth, affordable housing and commercial growth in the commonwealth; provided further, that a city or town may, at any time, revoke its designation of a UCH-TIF zone and, as a consequence of such revocation, shall immediately cease the execution of any additional agreements pursuant to clause (v) of subsection (a); provided, further, that a revocation shall not affect agreements relative to property tax exemptions and limitations on betterments and special assessments pursuant to said clause (v) of said subsection (a), use restrictions or options to purchase and rights of first refusal required by this section which were executed before the revocation.

(d)The board, agency, or officer of the city or town authorized pursuant to clause (vi) of said subsection (a) to execute UCH-TIF agreements shall submit each executed UCH-TIF agreement to the department of housing and community development for approval.  The department shall, as a condition of such approval, certify that the UCH-TIF agreement complies with the terms of this section and furthers the public purpose of encouraging increased residential growth, affordable housing and commercial growth in the commonwealth.  Upon receipt of the department’s certification, the board, agency or officer of the city or town authorized pursuant to said clause (vi) of said subsection (a) to execute UCH-TIF agreements shall forward to the board of assessors a copy of the approved UCH-TIF agreement, together with a list of the parcels included therein. An executed and approved UCH-TIF shall be recorded in the registry of deeds or the registry district of the land court wherein the land lies.

(e) Notwithstanding any other general or special law to the contrary, an affordable housing development that benefits from a real estate tax exemption pursuant to this section that meets the affordability requirements of subsection (b) and subclause (3) of clause (v) of subsection (a) shall continue to meet those requirements for 30 years or for the term of any municipal bonds issued to finance the construction, reconstruction or rehabilitation of such development, whichever is shorter as may be specified in the recorded restriction. Such restriction shall be approved by the department of housing and community development in accordance with section 32 of chapter 184 and shall be recorded in the registry of deeds or the registry district of the land court wherein the land lies.

(f) The owner of property subject to an UCH-TIF agreement shall certify to the city or town the incomes of the families or occupants, upon initial occupancy, of the affordable housing units designated in the UCH-TIF agreement and such certification shall be provided to the department of housing and community development on an annual basis. If the owner fails to provide certification or otherwise fails to comply with the UCH-TIF agreement, including failing to maintain the affordability of housing units assisted pursuant to this section, the city or town may place a lien on the property in the amount of the real estate tax exemptions granted pursuant to the UCH-TIF agreement for any year in which the owner is not in compliance with this subsection. If the city or town determines, with the approval of the department of housing and community development, that the owner is unlikely to come into compliance with the affordability requirements of said subsection (b) and said subclause (3) of said clause (v) of said subsection (a), the city or town may place a lien on the property in the amount of the total real estate tax exemption granted pursuant to the UCH-TIF agreement. Any such lien shall be recorded in the registry of deeds or the registry district of the land court wherein the land lies.

SECTION 27. Section 6 of chapter 40A of the General Laws, as so appearing, is hereby amended by striking out, in line 29, the word “six” and inserting in place thereof the following figure:- 12.

SECTION 28. Section 9 of said chapter 40A, as so appearing, is hereby amended by striking out, in line 165, the word “two” and inserting in place thereof the following figure:- 3.

SECTION 29.  Section 4 of chapter 40G of the General Laws, as so appearing, is hereby amended by striking out, in line 85, the words “as defined in section 3D” and inserting in place thereof the following words:-   designated pursuant to section 3G.

SECTION 30.  Section 2 of chapter 40H of the General Laws, as so appearing, is hereby amended by striking out, in lines 59 and  60, the words “section 3D of chapter 23A” and inserting in place thereof the following words:-  section 3G of chapter 23A, or meeting the criteria for such designation.

SECTION 31.  Section 4G of chapter 40J of the General Laws, as so appearing, is hereby amended by striking  out, in lines 19 and 24,  the figure “$3”  and inserting in place thereof, in each instance,  the following figure:-  $1.

SECTION 32.  Section 6D of said chapter 40J, as so appearing, is hereby amended by adding the following subsection:-

(g)The institute shall, in consultation with the secretary of housing and economic development and informal advisers from the public and private sectors, develop strategies and action plans to facilitate the continued development and accelerating growth of the e-health cluster in the commonwealth involving a range of products, services and systems at the intersection of medicine, healthcare and information technology, including without limitation: (1) electronic health records, (2) consumer wearable devices, (3) care systems, (4) payment management systems, (5) healthcare robotics, (6) telemedicine and (7) big data analytics, for the purpose of improving health care quality, reducing costs and supporting the expansion of economic opportunities for the citizens of the commonwealth.  Without limiting the generality of the foregoing, the institute is authorized to: (i) develop a market access program connecting provider and payer needs with ideas and products through pilot programs, (ii) undertake a healthcare big data initiative designed to improve healthcare data transparency and availability, and (iii) create opportunities for e-health cluster stakeholders, including investors, entrepreneurs and healthcare providers, to convene to exchange ideas and make connections.  In furtherance of the purposes of this subsection, the institute shall coordinate and collaborate with such other commonwealth agencies, authorities and public instrumentalities as the secretary of housing and economic development may suggest and shall endeavor to identify moneys and resources that could be made available for such purposes.  The corporation is authorized to expend moneys credited to the e-Health Institute Fund established in section 6E for the purposes of this subsection, without compliance with any further restrictions contained in section 6E, and to expend for such purposes any other moneys available to the corporation that are not otherwise expressly restricted by law.

SECTION 33.  Section 2 of chapter 40R of the General Laws, as so appearing, is hereby amended by inserting after the definition of “Approved smart growth zoning district” the following definition:

“Approved starter home zoning district”, a starter home zoning district that has been adopted by a city or town and approved by the department in accordance with this chapter and the regulations of the department, so as to be eligible for the receipt of financial and other incentives. The department may revoke its approval if the obligations of the city or town are not met.

SECTION 34.  Said section 2 of said chapter 40R, as so appearing, is hereby further amended by inserting after the definition of “Approving authority” the following definition:-

“Area of concentrated development”, a center of commercial activity within a municipality, including town and city centers, other existing commercial districts in cities and towns, and existing rural village districts.

SECTION 35. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking out the definition of “Developable land area” and inserting in place thereof the following definition:-

“Developable land area”, that area within an approved smart growth or starter home zoning district that can be feasibly developed into residential or mixed use development determined in accordance with regulations of the department. Developable land area shall not include: (1) land area that is already substantially developed, including existing parks and dedicated, perpetual open space within such substantially developed portion; (2) open space designated by the city or town as provided in section 6; or (3) areas exceeding one-half  acre of contiguous land that are unsuitable for development because of topographic features or for environmental reasons, such as wetlands.

It shall include the land area occupied by or associated with underutilized residential, commercial, industrial or institutional buildings or uses that have the potential to be recycled or converted into residential or mixed use developments as determined in accordance with regulations of the department.

SECTION 36.  Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking out the definition of “Eligible locations” and inserting in place thereof the following definition:-

“Eligible locations”, areas that by virtue of their infrastructure, transportation access, existing underutilized facilities, or location make highly suitable locations for residential or mixed use smart growth zoning districts or starter home zoning districts, including without limitation (1) areas near transit stations, including rapid transit, commuter rail and bus and ferry terminals; or (2) areas of concentrated development, including town and city centers, other existing commercial districts in cities and towns, and existing rural village districts.

SECTION 37.  Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking the definitions of “Letter of eligibility” and “Mixed use development” and inserting in place thereof the following 4 definitions:-

“Housing production plan”, an affordable housing plan adopted by a municipality and approved by the department in accordance with its regulations.

“Housing production summary”, a detailed summary of the city or town’s: (1) affordable housing production history, (2) housing needs and housing demand assessment, (3) analysis of development constraints and capacity, (4) current housing goals and strategy for achieving those goals and (5) proposed locations for affordable housing production.

“Letter of eligibility”, a letter to a city or town to be issued by the department within 60 days of receiving a complete and approvable application from a city or town for approval of a smart growth or starter home zoning district.

“Mixed use development”, a development containing a mix of residential uses and non-residential uses, including, without limitation: commercial, institutional, industrial or other uses; all conceived, planned and integrated to create vibrant, workable, livable and attractive neighborhoods.

SECTION 38.  Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking out the definition of “Project” and inserting in place thereof the following 2 definitions:-

“Production bonus payment”, a one-time payment to a municipality from the Smart Growth Housing Trust Fund, established in section 35AA of chapter 10 for each housing unit of new construction that is created in a starter home zoning district pursuant to the starter home overlay provisions of the applicable zoning ordinance or by-law.              

“Project”, a proposed residential or mixed-use development within a smart growth or starter home zoning district.

SECTION 39.  Said section 2 of said chapter 40R, as so appearing, is hereby further amended by inserting after the definition of “Smart growth zoning district certificate of compliance” the following 3 definitions:-

“Starter home”, a single family home not exceeding 1,850 square feet in heated living area; provided, however that nothing herein shall preclude a city or town from adopting a starter home zoning district that would permit construction on a single lot in a starter home zoning district of an accessory dwelling unit of 600 square feet or less on the same lot as a starter home.

“Starter home zoning district'', a zoning district consisting of not less than 3 contiguous acres of developable land area, adopted by a city or town pursuant to this chapter, that is superimposed over 1 or more zoning districts in an eligible location, within which a developer may elect to either : (1) develop starter homes in accordance with requirements of the starter home zoning district ordinance or by-law or (2) develop a project in accordance with requirements of the underlying zoning district, and otherwise consistent with department guidance.

“Starter home zoning district certificate of compliance”, a written certification by the department in accordance with section 7.

SECTION 40.  Section 3 of said chapter 40R, as so appearing, is hereby amended by inserting, after the word “district”, in lines 2 and 7, the following words:-   or starter home zoning district.

SECTION 41.  Said section 3 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “districts”, in line 15, the following words:-  or starter home zoning districts.

SECTION 42.  Section 4 of said chapter 40R, as so appearing, is hereby amended by inserting after the word “growth”, in line 3,  the following words:-  or starter home.

SECTION 43.  Said section 4 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “district”, in line 14,  the following words:- or starter home zoning district.

SECTION 44.  Said chapter 40R is hereby amended by striking out sections 5 to 10, inclusive, as so appearing,  and inserting in place thereof the following 6 sections:-

Section 5.  The chief executive of a city or town desiring to adopt a smart growth zoning district or starter home zoning district ordinance or by-law shall submit the necessary materials to the department for a preliminary determination of eligibility for approval. The information in the application shall:

(a) identify and describe the boundaries of the proposed smart growth zoning district or starter home zoning district;

(b) identify and describe the developable land area within the proposed smart growth zoning district or starter home zoning district;

(c) as to smart growth zoning districts only, identify and describe other residential development opportunities for infill housing and the residential re-use of existing buildings and underutilized buildings within already developed areas;

(d) include any comprehensive housing plan or housing production plan previously adopted by the city town or, if the city or town has no comprehensive housing plan or housing production plan, a housing production summary, as set forth in section 8;

(e) include a copy of the proposed smart growth district or starter home zoning district ordinance or by-law;

(f) by narrative and exhibits, establish the elements set forth in section 6.

Section 6.  (a) A proposed smart growth zoning district or starter home zoning district shall satisfy the following minimum requirements:

(1) Each proposed district shall be located in an eligible location.

(2) The zoning for each proposed smart growth zoning district shall provide for residential use to permit a mix of housing for families, individuals, persons with special needs and the elderly.

(3) Housing density in a proposed smart growth district shall be at least: 20 units per acre for multi-family housing on the developable land area, 8 units per acre for single-family homes on the developable land area, and 12 units per acre for 2 and 3 family buildings on the developable land area.  Housing density in a proposed starter home district shall satisfy the following criteria:  (a) the density shall be no less than 4 units per acre of developable land area; (b) the development shall emphasize smart growth principles of development, such as cluster development and other forms of development providing for common open space usable for passive or active recreational activities, or the use of low-impact development techniques; and (c) at least 50 per cent of the starter homes to be developed in a proposed starter home district, excluding accessory dwelling units, must contain 3 or more bedrooms.

(4) The zoning ordinance or by-law for each proposed smart growth zoning district shall provide that not less than 20 per cent of the residential units constructed in projects of more than 12 units shall be affordable housing and shall contain mechanisms to ensure that not less than 20 per cent of the total residential units constructed in each proposed district shall be affordable housing.

(5)The zoning ordinance or by-law for each proposed starter home zoning district shall provide that, as a condition of the increased density permitted in a starter home zoning district, not less than 20 per cent of the residential units created as starter homes shall be affordable to and occupied by individuals and families whose annual income is less than 100 per cent of the area median income as determined by the United States Department of Housing and Urban Development, and shall contain mechanisms to ensure that the required percentage of the total residential units constructed in each proposed starter home district shall meet such affordability requirements, including an affordable housing restriction, as defined in section 31 of chapter 184, that has a term of not less than 30 years. 

(6) A proposed smart growth zoning district shall permit infill housing on existing vacant lots and shall allow the provision of additional housing units in existing buildings, consistent with neighborhood building and use patterns, building codes and fire and safety codes.

(7) A proposed smart growth zoning district or starter home zoning district shall not be subject to limitation of the issuance of building permits for residential uses or a local moratorium on the issuance of such permits.  In addition, a proposed starter home zoning district shall not be subject to any municipal environmental or health ordinances, bylaws or regulations that exceed applicable requirements of state law or regulation, unless the department of environmental protection has determined  that specific local conditions warrant imposition of more restrictive local standards, or  the imposition of such standards would not render infeasible the development contemplated under the comprehensive housing plan, housing production plan or housing production summary submitted as part of the application for such district.

(8) A proposed smart growth zoning district or starter home zoning district shall not impose restrictions on age or any other occupancy restrictions on the district as a whole. This shall not preclude the development of specific projects within a smart growth zoning district that may be exclusively for the elderly, the disabled or for assisted living. Not less than 25 per cent of the housing units in such a project within a smart growth zoning district shall be affordable housing, as defined in section 2.

(9) Housing in a smart growth zoning district or starter home zoning district shall comply with federal, state and local fair housing laws.

(10) A proposed smart growth zoning district or starter home zoning district may not exceed 15 per cent of the total land area in the city or town. Upon request, the department may approve a larger land area if such approval serves the goals and objectives of this chapter.

(11) The aggregate land area of all approved smart growth zoning districts and starter home zoning districts in the city or town may not exceed 25 per cent of the total land area in the city or town.  The department may approve a larger combined land area if the department determines that such approval serves the goals and objectives of this chapter.

(12) Housing density in any proposed district shall not over burden infrastructure as it exists or may be practicably upgraded in light of anticipated density and other uses to be retained in the district.

(13)A proposed smart growth zoning district or starter home zoning district ordinance or by-law shall define the manner of review by the approving authority in accordance with section 11 and shall specify the procedure for such review in accordance with regulations of the department.

(b) A city or town may modify or eliminate the dimensional standards contained in the underlying zoning in the smart growth zoning district or starter home zoning district ordinance or by-law in order to support desired densities, mix of uses and physical character. The standards that are subject to modification or waiver may include, but shall not be limited to; height, setbacks, lot coverage, parking ratios and locations and roadway design standards. Modified requirements may be applied as of right throughout all or a portion of the smart growth zoning district or starter home zoning district, or on a project specific basis through the smart growth zoning district or starter home zoning district plan review process as provided in the ordinance or by-law. A city or town may designate certain areas within a smart growth zoning district or starter home zoning district as dedicated perpetual open space through the use of a conservation restriction as defined in section 31 of chapter 184 or such other means as may be created by state law. The amount of such open space shall not be included as developable land area within the smart growth zoning district or starter home zoning district. Open space may include an amount of land equal to up to 10 per cent of what would otherwise be the developable land area if the developable land would be less than 50 acres, and 20 per cent of what would otherwise be the developable land area if the developable land area would be 50 acres or more.

(c) The zoning for a proposed smart growth zoning district may provide for mixed use development.

(d) A smart growth zoning district or starter home zoning district may encompass an existing historic district or districts. A city or town, with the approval of the department, may establish a historic district in an approved smart growth zoning district or starter home zoning district in accordance with chapter 40C, so long as the establishment of the historic district meets the requirements for such a historic district and does not render the city or town noncompliant with this chapter, as determined by the department. The historic districts may be coterminous or non-coterminous with the smart growth zoning district or starter home zoning district. Within any such historic district, the provisions and requirements of the historic district may apply to existing and proposed buildings.

(e) A city or town may require more affordability than required by this chapter, both in the percentage of units that must be affordable, and in the levels of income for which the affordable units must be accessible, provided, however, that affordability thresholds shall not unduly restrict opportunities for development.

(f) With respect to a city or town with a population of fewer than 10,000 persons, as determined by the most recent federal decennial census, for hardship shown, the department may, pursuant to regulations adopted under this chapter, approve zoning for a smart growth zoning district with lower densities than provided in this chapter, if the city or town satisfies the other requirements set forth in this section; provided, however, that such approval shall not be withdrawn solely because, in a future census, the population of the city or town exceeds 10,000 persons.

(g) Any amendment or repeal of a zoning ordinance or by-law affecting an approved smart growth zoning district or starter home zoning district shall not be effective without the written approval by the department. Each amendment or repeal shall be submitted to the department with an evaluation of the effect on the city or town's comprehensive housing plan or housing production plan, if any.  Amendments shall be approved only to the extent that the district remains in compliance with this chapter. If the department does not respond to a complete request for approval of an amendment or repeal within 60 days of receipt, the request shall be deemed approved.

(h) Nothing in this chapter shall affect a city or town's authority to amend its zoning ordinances or by-laws under chapter 40A, so long as the changes do not affect the smart growth zoning district or starter home zoning district.

Section 7.  (a)  On or before October 1 of each year after the year of approval of a district by the department, the department shall send a smart growth zoning district certificate of compliance or starter home zoning district certificate of compliance, as applicable, to each city or town with an approved district. In order to receive such a certificate, the city or town shall verify within the time specified by the department that:

(1) the city or town has adopted and approved a smart growth zoning district or a starter home zoning district, as applicable;

(2) the certification has not been revoked by the department;

(3) the district is being developed in a manner that reasonably complies with the applicable minimum requirements set forth in section 6 for housing density and affordability;

(4) the approving authority has not unreasonably denied plans for projects, or has only denied plans for projects in a manner consistent with its smart growth zoning district ordinance or by-law or starter home zoning district ordinance or by-law, as applicable, the city or town's comprehensive housing plan, housing production plan, or the housing production summary submitted with the city or town’s initial application for approval by the department, as applicable, and this chapter.

(b) If the department is unable to certify compliance, the department shall hold a public hearing subject to chapter 30A. If the department concludes that the city or town is in material noncompliance with the requirements set forth in this section, the department may revoke certification. A revocation of certification shall be recorded with the registry of deeds or land court registry district for the county or district within which the city or town is located, indexed in the grantor index under the name of the city or town. Any revocation of certification or other sanctions imposed by the department shall not affect the validity of the smart growth zoning ordinance or by-law or starter home zoning district ordinance or by-law, as applicable, or the application of such ordinance or by-law to land, development or proposed development within the smart growth zoning district.

Section 8.  A city or town shall submit to the department, concurrently with the city or town’s application for a letter of eligibility, either an existing comprehensive housing plan, an existing housing production plan, or a housing production summary.  The plan or summary shall include an estimate of the projected number of units of new construction that could be built in the proposed smart growth zoning district or starter home zoning district. If a city or town has already completed a comprehensive housing plan or housing production plan, the city or town shall submit with its application to the department a description of how the proposed smart growth zoning district or starter home zoning district relates to and will further the goals of its comprehensive housing plan or housing production plan, as well as an estimate of the projected number of units of new construction that could be built within the district.

Section 9.  Each city or town with an approved smart growth zoning district or starter home zoning district shall be entitled to payments pursuant to this section.

(a) The commonwealth shall pay from the trust fund a zoning incentive payment, according to the following schedule:

Projected Units of

New Construction Payment

Up to 20 $10,000

21 to 100 $75,000

101 to 200 $200,000

201 to 500$350,000

501 or more $600,000

Subject to any conditions imposed by the department as a condition of approving a smart growth zoning district or starter home zoning district, the zoning incentive payment shall be payable upon confirmation of approval of the district by the department.  The projected number of units shall be based upon the zoning adopted in the smart growth zoning district or starter home zoning district, and consistent with either the city or town's comprehensive housing plan or housing production plan, if any, or the housing production summary submitted in accordance with section 8.

(b) The commonwealth shall pay from the trust fund a one-time density bonus payment to each city or town with an approved smart growth zoning district and a one-time production bonus payment to each city or town with an approved starter home zoning district. This payment shall be $3,000 for each housing unit of new construction created in the smart growth zoning district and $3,000 for each housing unit of new construction created in the starter home zoning district. The amount due shall be paid on a unit-by-unit basis in accordance with department regulations, upon submission by a city or town of proof of issuance of a building permit for a particular housing unit or units within the district.

(c) The executive office of environmental affairs, the executive office of transportation, the department of housing and community development and the secretary of administration and finance shall, when awarding discretionary funds, use a methodology of awarding such funds that favors cities or towns with approved smart growth zoning districts or starter home zoning districts and other approved zoning policies or initiatives that encourage increased affordable housing production in the commonwealth including, but not limited to, inclusionary zoning.

Section 10.  A city or town may adopt, in accordance with the regulations of the department, design standards applicable to projects undergoing review by the approving authority, to ensure that the physical character of development within the smart growth zoning district or starter home zoning district is complementary to adjacent buildings and structures and is consistent with the city or town’s comprehensive housing plan or housing production plan, if any, and any applicable master plan or plans for the city or town. Such standards may address the scale and proportions of buildings, the alignment, the width and grade of streets and sidewalks, the type and location of infrastructure, the location of building and garage entrances, off-street parking, the protection of significant natural site features, the location and design of on-site open spaces, exterior signs and buffering in relation to adjacent properties. In a smart growth zoning district, the standards shall provide for high-density quality development consistent with the character of building types, streetscapes and other city or town features traditionally found in densely settled areas of the city or town or in the region of the city or town.

A design standard shall not be adopted if it will add unreasonable costs to residential or mixed-use developments. A design standard shall not unreasonably impair the economic feasibility of proposed projects. The department may disapprove a request for the determination of eligibility for a smart growth zoning district or starter home zoning district on account of a design standard adding such unreasonable costs or unreasonably impairing such feasibility.

SECTION 45.  Section 11 of said chapter 40R, as so appearing, is hereby amended by striking out, in line 2, the words “district zoning” and inserting in place thereof the following words:- zoning district or starter home zoning district.

SECTION 46.  Said section 11 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “district”, in line 11, the following words:- or starter home zoning district.

SECTION 47.  Said section 11 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “zoning”, in line 17, the following words:-  district or starter home zoning district.

SECTION 48.  Said section 11 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “district”,  in lines 70, 74 and 128,  the following words:-  or starter home zoning district.

SECTION 49.  Said chapter 40R is hereby amended by striking out section 12, as so appearing,  and inserting in place thereof the following section:- 

Section 12.  The department shall be responsible for the administration, review, and reporting on the smart growth zoning district and starter home zoning district programs as provided in this chapter.  The department shall undertake or cause to be undertaken an annual review and the preparation of a report on the programs set forth in this chapter and may require data to be provided by cities and towns with smart growth zoning districts or starter home zoning districts.  The report shall be prepared on the basis of such data and shall be made available to the general public and submitted to the general court annually, not later than November 15 of each year, and shall cover the status of the program through the end of the prior fiscal year. The report shall identify and describe the status of cities and towns that are actively seeking letters of eligibility.  It shall identify approved smart growth zoning districts and starter home zoning districts and the amounts and anticipated timing of one-time density bonus payments and one-time production bonus payments during the prior and current fiscal year. It shall summarize the amount of land areas zoned for particular types of projects in both proposed and approved districts, the number of projects being reviewed by cities and towns under section 11, including the number and type of proposed residential units, the number of building permits issued, the number of completed housing units and their type, and it shall set out the one-time density bonus payments and one-time production bonus payments made to each city or town.  For the then current and the immediately succeeding fiscal years it shall make estimates for the: (i) number and size of proposed new districts; (ii) potential number of residential units to be allowed in new districts; and (iii) anticipated construction activity.

SECTION 50.  Said chapter 40R is hereby further amended by striking out section 14, as so appearing,  and inserting in place thereof the following section:-

Section 14.  If, within 3 years, no construction has been started within the smart growth zoning district or starter home zoning district, the department shall require the cities and towns to repay to the department all monies paid to the city or town under this chapter for said smart growth zoning district or starter home zoning district.  Said 3 years shall commence on the date of the payment of the zoning incentive payment for said smart growth zoning district or starter home zoning district.  All monies repaid to the department under this section shall be returned to the trust fund.

SECTION 51.  Section 1 of chapter 40V of the General Laws, as so appearing, is hereby amended by striking out the definition of “Certified housing development project” and inserting in place thereof the following definition:-

“Certified housing development project”, the new construction or substantial rehabilitation of a housing development project that has been approved by the department for participation in the housing development incentive program.

SECTION 52.  Said section 1 of said chapter 40V, as so appearing, is hereby further amended by striking out the definitions of “Market rate residential unit” and “Qualified substantial rehabilitation expenditure” and inserting in place thereof following 2 definitions:-

“Market rate residential unit”, a residential unit priced consistently with prevailing rents or sale prices in the municipality as determined based on criteria established by the department.

“Qualified project expenditure”, an expenditure directly related to the construction or substantial rehabilitation of a certified housing development project, including the cost of site assessment and remediation of hazardous materials, but excluding the purchase of the property,  provided, that: (i) the department has certified that the proposed project meets the definition of certified housing development project; (ii) prior to construction, the department has certified that all or a portion of the project costs are for new construction or substantial rehabilitation; and (iii) after the construction of the project has been completed, the department has certified that the project has been completed in compliance with this chapter and the requirements and conditions of any prior certifications.

SECTION 53.  Said section 1 of said chapter 40V, as so appearing, is hereby further amended by inserting after the words “property”, in line 34, the following words:- including site assessment and remediation of hazardous materials, but.

SECTION 54.  Section 4 of said chapter 40V, as so appearing, is hereby amended by striking out, in line 12, the words “is a” and inserting in place thereof the following words:- involves either new construction or.

SECTION 55.  Said section 4 of said chapter 40V, as so appearing, is hereby further amended by striking out, in line 13, the word “approve” and inserting in place thereof the following word:-  certify.

SECTION 56.  Said section 4 of said chapter 40V, as so appearing, is hereby further amended by striking out, in line 35, the word “HDIP” and inserting in place thereof the following words:- HD

SECTION 57.  Said section 4 of said chapter 40V, as so appearing, is hereby further amended by inserting after the word “certified”, in lines 44, 56, 57 and 83, the following words:- housing development.

SECTION 58.  Section 5 of said chapter 40V, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- 

The department may award, to a sponsor of a certified housing development project, tax credits available under subsection (q) of section 6 of chapter 62 and section 38BB of chapter 63 up to but not to exceed 25 per cent of the cost of qualified project expenditures allocable to the market rate units in the project, as determined by the department.

SECTION 59.  Said section 5 of said chapter 40V, as so appearing, is hereby further amended by striking out the word “project”, in lines 9, 13 and 15,  and inserting in place thereof, in each instance, the following words:- certified housing development project.

SECTION 60.  Section 3 of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out, in lines 114 and  115, the words “established by section three B of chapter twenty-three A” and inserting in place thereof the following words:-  pursuant to section 3G of chapter 23A.

SECTION 61. Subparagraph (11) of paragraph (a) of part B of said  section 3 of said chapter 62 , as so  appearing, is hereby amended by adding the following sentence:-An individual who is a nonresident for all or part of the taxable year shall not be eligible to claim this deduction.

SECTION 62. Said paragraph (a) of said part B of said  section 3 of said  chapter 62,  as amended by section 12 of chapter 10 of the acts of 2015, is hereby further amended by adding  the following subparagraph :-

(19) An amount equal to the amount expended in the taxable year for the purchase of an interest in, or the amount contributed in the taxable year to an account in, a prepaid tuition program or college savings program established by the commonwealth or any instrumentality or authority thereof. In the case of a single person or a married person filing a separate return or a head of household, the total amount deducted in the taxable year shall not exceed $1,000. In the case of a married couple filing a joint return, the total amount deducted in the taxable year shall not exceed $2,000.

Notwithstanding any statute of limitations on the assessment of an income tax under this chapter, any deduction taken under this subparagraph shall be subject to recapture in the taxable year or years in which distributions or refunds are made for any reason other than (i) to pay qualified higher education expenses, as defined by 26 U.S.C. section 529(e)(3), or (ii) the beneficiary's death, disability, or receipt of a scholarship. For the purposes of this subparagraph, the term “purchaser” or “contributor” means the person shown as such on the records of the qualifying prepaid tuition or college savings program as of December 31 of the taxable year. In the case of a transfer of ownership of a prepaid tuition contract or savings trust account, the transferee shall succeed to the transferor's tax attributes associated with the prepaid tuition contract or savings trust account, including, but not limited to, carryover and recapture of deductions.

On or before October 15, annually of each year beginning on or after January 1, 2018, the commissioner shall submit a report to the secretary of administration and finance, the house and senate committees on ways and means, and the joint committee on revenue. The report shall provide the following information: the number of prepaid tuition contracts or savings trust accounts entered into or opened by residents of the commonwealth during the prior year; the amount of the allowable deductions claimed under this subparagraph during the prior year; and the adjusted gross income of each taxpayer qualifying for the deduction allowed under this subparagraph.

SECTION 63.  Section 6 of said chapter 62 is hereby amended by striking out subsection (g), as appearing in the 2014 Official Edition, and inserting in place thereof the following subsection:-

(g)(1) As used in this subsection, the following words shall have the same meaning as ascribed to them in section 3A of chapter 23A: “Alternative EDIP tax credits”, “Certified project”, “Controlling business”, “EACC”, “EDIP contract”, “Extraordinary economic development opportunity” and “Proposed project”.

(2) A credit shall be allowed against the tax liability imposed by this chapter on the owner or lessee of a certified project, to the extent such credit is authorized by the EACC, 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 (7).  The amount of the credit shall be determined by the EACC in accordance with criteria set forth in section 3D of chapter 23A and such other criteria or guidelines as the council shall from time to time adopt; provided, that a credit awarded in connection with a certified project that will retain permanent full-time employees in a gateway municipality without creating a net increase in permanent full-time employees shall not exceed $5,000 per retained employee.  A credit allowed under this section shall be taken only after the taxpayer executes an EDIP contract as set forth in said section 3D of said chapter 23A.

(3)An alternative EDIP tax credit may be allowed against the tax liability imposed by this chapter on the owner or lessee of a certified project that has been designated as an extraordinary economic development opportunity, but only to the extent such alternative EDIP tax credit is authorized by the EACC, up to an amount equal to 100 per cent of such liability in any taxable year; provided, however, that the 100 per cent limitation shall not apply where the credit is refundable under paragraph (7).  The amount of the alternative EDIP tax credit shall be equal to a percentage of gross wages of the new permanent full-time employees employed by the controlling business at the certified project as reportable on employee Forms W-2 wage and tax statements.  Such percentage shall be determined by the EACC but shall in no event exceed 5 per cent of such gross wages.  An alternative EDIP tax credit allowed under this section shall reduce the liability of the taxpayer under this chapter for the taxable year in which the new permanent full-time employee is first employed by the taxpayer and any subsequent years authorized by the EACC.  An alternative EDIP tax credit allowed under this section may be taken only after the taxpayer executes an EDIP contract as set forth in section 3D of chapter 23A. 

(4)The total amount of credits that may be authorized by the EACC in a calendar year pursuant to this section and section 38N of chapter 63 shall not exceed $30,000,000 annually; provided, that this total amount shall not include credits granted pursuant to subsection (q) of section of 6 of this chapter and section 38BB of said chapter 63;  and provided further, that this total amount shall include: (i) refundable credits granted during the year pursuant to this section or said section 38N of said chapter 63; (ii) nonrefundable credits granted during the year pursuant to this section or said section 38N of said chapter 63, to the extent that such nonrefundable credits are estimated by the commissioner to offset tax liabilities during the year; and (iii) carryforwards of credits from prior years under this section or said section 38N of said chapter 63, to the extent that such credit carryforwards, if any, are estimated by the commissioner to offset tax liabilities during the year.  Any portion of the annual cap not awarded by the EACC in a calendar year shall not be applied to awards in a subsequent year. 

Notwithstanding the cap set forth in the preceding paragraph, the EACC may authorize credits in excess of the annual cap of $30,000,000 for a project that is designated as an extraordinary economic development opportunity; provided that the total amount awarded shall not exceed $50,000,000 in a calendar year.

The EACC shall provide the commissioner with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming such compliance to the secretary of administration and finance and the secretary of housing and economic development.

(5) Any taxpayer entitled to a credit under this subsection for any taxable year may, to the extent authorized by the EACC, carry over and apply to the tax liability imposed by this chapter for any 1 or more of the next succeeding 10 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax liability imposed by this chapter for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax liability imposed by this chapter for any taxable year beginning more than 5 years after the certified project ceases to qualify as such under chapter 23A.  Notwithstanding the foregoing, the EACC may limit or restrict carryover of credits as set forth section 3D of said chapter 23A.

(6) For purposes of this subsection, the commissioner may aggregate the activities of all entities, whether or not incorporated, under common control as defined in 26 U.S.C. section 41(f). 

(7) The commissioner shall promulgate rules and regulations necessary to implement this subsection including, but not limited to, provisions to prevent the generation of multiple credits with respect to the same property.

(8) If a credit allowed under paragraph (2) or paragraph (3) is designated by the EACC as a refundable credit, the credit shall first be applied against the tax liability of the taxpayer imposed by this chapter, and 100 per cent of the balance of such credit may, at the option of the taxpayer and to the extent authorized by the EACC, be refundable to the taxpayer.  The EACC shall in each case specify the timing of such refund, which may be for the taxable year in which all or a portion of the certified project is placed in service, or the taxable year subsequent to the year in which the required jobs are created.  If such credit balance is refunded to the taxpayer, the credit carryover provisions of paragraph (5) shall not apply.

(9)If the EACC revokes the certification of a project as provided in section 3F of chapter 23A, then a portion of the tax credits otherwise allowed by this section and claimed by the taxpayer prior to the date  on which EACC makes the determination to revoke project certification must be added back as additional tax due and shall be reported as such on the return of the taxpayer for the taxable period in which the EACC makes the determination to revoke project certification.  The amount of credits subject to recapture shall be proportionate to the taxpayer’s compliance with the job creation requirements applicable to the certified project.  The taxpayer’s proportion of compliance shall be determined by the EACC as part of its revocation process and shall be reported to the taxpayer and the department of revenue at the time certification is revoked.

(10)If a certified project is sold or otherwise disposed of, tax credits allowed under this subsection may be transferred to the purchaser of the certified project; provided, that the EDIP contract is assigned to and assumed by the purchaser of the certified project, and such assignment and assumption is approved in writing by the EACC. 

(11)Nothing in this subsection shall limit the authority of the commissioner to make adjustments to a taxpayer’s liability upon audit.

SECTION 64.  Said section 6 of said chapter 62, , is hereby further amended by striking out, in line 893, as so appearing,  the word “ten”  and inserting in place thereof the following figure:-  25.

SECTION 65.  Said section 6 of said chapter 62 is hereby further amended by striking out, in line 894, as so appearing, the words “substantial rehabilitation” and inserting in place thereof the following word:-  project.

SECTION 66.  Said section 6 of said chapter 62 is hereby further amended by striking out, in line 905 and in lines 939 and  940, as so appearing, the word “rehabilitation” and inserting in place thereof, in each instance, the following word:-  project.

SECTION 67.  Said section 6 of said chapter 62 is hereby further amended by striking out, in lines 923 and 935, as so appearing, the figure “5” and inserting in place thereof, in each instance, the figure:- 10. 

SECTION 68.  Said section 6 of said chapter 62, as amended by section l of chapter 52 of the acts of 2015, is hereby further amended by adding the following subsection:-

      (t)(1)  As used in this subsection, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

      “Business”, a profession, sole proprietorship, trade partnership, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, non-profit entity or other business entity.

      “Gateway municipality”, a gateway municipality as defined in section 3A of chapter 23A.

      “Qualifying business”, a business which: (i) has its principal place of business in the commonwealth; (ii) has at least 50 per cent of its employees located in the business’s principal place of business; (iii) has a fully developed business plan that includes all appropriate long-term and short-term forecasts and contingencies of business operations, including research and development, profit, loss and cash flow projections and details of angel investor funding; (iv) employs 20 or fewer full-time employees at the time of the taxpayer investor’s initial qualifying investment as provided for in paragraph (2); (v) has a federal tax identification number; and (vi) has gross revenues equal to or less than $500,000 in the fiscal year prior to eligibility.

      “Qualifying investment”, a monetary investment that is at risk and is not secured or guaranteed; provided, however, that a qualifying investment shall not include venture capital funds, hedge funds or commodity funds with institutional investors or investments in a business involved in retail, real estate, professional services, gaming or financial services.

      “Taxpayer investor”, an accredited investor, as defined by the United States Securities and Exchange Commission pursuant to 15 U.S.C. section 77b(15)(ii) who is not the principal owner of the qualifying business and who is involved in the qualifying business as a full-time professional activity.

      (2)  A taxpayer investor who makes a qualifying investment in a qualifying business shall be allowed a credit against the taxes imposed by this chapter in an amount equal to 20 per cent of the amount of the taxpayer’s qualifying investment. A taxpayer investor who makes a qualifying investment in a qualifying business with its principal place of business located in a gateway municipality shall be allowed a credit against the taxes imposed by this chapter in an amount equal to 30 per cent of the amount of the taxpayer’s qualifying investment. Taxpayer investors may invest up to $125,000 per qualifying business per year with a $250,000 maximum for each qualifying business. The total of all tax credits available to a taxpayer investor under this subsection shall not exceed $50,000 in any single calendar year.

      (3)  Qualifying investments may be used by a qualifying business for the following purposes: (i) capital improvements; (ii) plant equipment; (iii) research and development; and (iv) working capital. Qualifying investments shall not be used to pay dividends, fund or repay shareholders’ loans, redeem shares, repay debt or pay wages or other benefits of the taxpayer investor.

      (4)  The credits allowed under paragraph (2) may be taken against income tax due in either the tax year of the initial investment or in any of the 3 subsequent taxable years. Any amount of the tax credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer investor to any of the 3 subsequent taxable years. If the qualifying business ceases to have its principal place of business in the commonwealth within such 3 year period, the taxpayer investor shall not claim any further credits and shall repay the total amount of credits claimed to the commonwealth.

      (5)  The Massachusetts Life Sciences Center, in consultation with the executive office of housing and economic development and the commissioner, shall authorize, administer and determine eligibility for this tax credit and allocate the credit in accordance with the standards and requirements as set forth in regulations promulgated pursuant to this subsection, and with the goal of creating and maintaining jobs including, but not limited to, jobs in the following sectors: digital e-health, information technology, and healthcare. Any tax credits authorized pursuant to this subsection shall be subject to the annual cumulative cap pursuant to subsection (d) of section 5 of chapter 23I.

      (6)  The commissioner, the Massachusetts Life Sciences Center, and the executive office of housing and economic development shall promulgate regulations necessary to carry out this subsection.

SECTION 69.  Section 6M of said chapter 62, inserted by section 29 of chapter 238 of the acts of 2012, is hereby amended by striking out, in line 89, as appearing in the 2014 Official Edition,  the words “as defined in section 3A” and inserting in place thereof the following words:-  designated under section 3G.

SECTION 70.  Chapter 63 of the General Laws is hereby amended by striking out section 38N, as appearing in the 2014 Official Edition,  and inserting in place thereof the following section:-

Section 38N.(a) (l) As used in this section, the following words  shall have the same meanings as ascribed to them in section 3A of chapter 23A: “Alternative EDIP tax credits”, “Certified project”, “Certified project proposal”, “Economic assistance coordinating council”, “EDIP contract”,  “Extraordinary economic development opportunity”, and “Gateway municipality”..

(b) A corporation subject to tax under this chapter that is the controlling business of a certified project, as defined in section 3A of chapter 23A, or an affiliate of a controlling business, may take a credit against the excise imposed by this chapter to the extent such credit is authorized by the economic assistance coordinating council, 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 subsection (e).  The amount of the credit shall be determined by the economic assistance coordinating council based on the criteria set forth in section 3D of said chapter 23A and such other criteria or guidelines as the council shall from time to time adopt; provided, that a credit awarded in connection with a certified project that will retain permanent full-time employees in a gateway municipality without creating a net increase in permanent full-time employees shall not exceed $5,000 per retained employee.  A credit allowed under this section shall be taken only after the corporation executes an EDIP contract as set forth in said section 3D of said chapter 23A. 

(c)An alternative EDIP tax credit may be allowed against the tax liability imposed by this chapter on the owner or lessee of a certified project that has been designated as an extraordinary economic development opportunity, but only to the extent such alternative EDIP tax credit is authorized by the economic assistance coordinating council, up to an amount equal to 100 per cent of such liability in any taxable year; provided, however, that the 100 per cent limitation shall not apply where the credit is refundable under subsection (e).  The amount of the alternative EDIP tax credit shall be equal to a percentage of gross wages of the new permanent full-time employees employed by the controlling business at the certified project as reportable on employee Forms W-2 wage and tax statements.  Such percentage shall be determined by the EACC but shall in no event exceed 5 per cent of such gross wages.  An alternative EDIP tax credit allowed under this section shall reduce the liability of the taxpayer under this chapter for the taxable year in which the new permanent full-time employee is first employed by the taxpayer and any subsequent years authorized by the EACC.  An alternative EDIP tax credit allowed under this section may be taken only after the taxpayer executes an EDIP contract as set forth in section 3D of chapter 23A. 

(d)The total amount of credits that may be authorized by the economic assistance coordinating council in a calendar year pursuant to this section and subsection (g) of section 6 of chapter 62 shall not exceed $30,000,000 annually; provided, however, that this total amount shall not include  credits granted pursuant to section 38BB and subsection (q) of section 6 of chapter 62; and provided further, that this total amount shall include: (i) refundable credits granted during the year pursuant to this section or said subsection (g) or said section (6) of said chapter 62; (ii) nonrefundable credits granted during the year pursuant to this section or said subsection (g) or said section (6) of said chapter 62, to the extent that such nonrefundable credits are estimated by the commissioner of revenue to offset tax liabilities during the year; and (iii) carryforwards of credits from prior years under this section or said subsection (g) of said section 6 of said chapter 62, to the extent that such credit carryforwards, if any, are estimated by the commissioner of revenue to offset tax liabilities during the year.  Any portion of the annual cap not awarded by the economic assistance coordinating council in a calendar year shall not be applied to awards in a subsequent year.

Notwithstanding the cap set forth in the preceding paragraph, the EACC may authorize credits in excess of the annual cap of $30,000,000 for a project that is designated as an extraordinary economic development opportunity; provided that the total amount awarded shall not exceed $50,000,000 in a calendar year.

The economic assistance coordinating council shall provide the commissioner of revenue with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming such compliance to the secretary of administration and finance and the secretary of housing and economic development.

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.

(e) Any corporation entitled to a credit under this section for any taxable year may, to the extent authorized by the economic assistance coordinating council, carry over and apply to the tax liability imposed by this chapter for any 1 or more of the next succeeding 10 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax liability imposed by this chapter for the taxable year; provided, however, that in no event shall the corporation apply the credit to the tax liability imposed by this chapter for any taxable year beginning more than 5 years after the certified project ceases to qualify as such under chapter 23A.  Notwithstanding the foregoing, the economic assistance coordinating council may limit or restrict carryover of credits as set forth section 3D of said chapter 23A.

(f)If a credit allowed under subsection (b) or subsection (c) is designated by the economic assistance coordinating council as a refundable credit, the credit shall first be applied against the tax liability of the corporation under this chapter, and 100 per cent of the balance of such credit may, at the option of the corporation and to the extent authorized by the economic assistance coordinating council, be refundable to the corporation.  The economic assistance coordinating council shall in each case specify the timing of such refund, which may be for the taxable year in which all or a portion of the certified project is placed in service, or the taxable year subsequent to the year in which the required jobs are created.  If such credit balance is refunded to the corporation, the credit carryover provisions of subsection (e) shall not apply.

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

(h) In the case of corporations filing a combined return of income under section 32B, a credit generated by an individual member corporation under the provisions of this section shall first be applied against the separately determined excise attributable to that member, except as otherwise provided in this section.  A member corporation with an excess credit may apply its excess credit against the excise of another group member, to the extent that such other member corporation can use additional credits.  Unused, unexpired credits generated by member corporations shall be carried over from year to year by the individual corporation that generated the credit, to the extent authorized by the economic assistance coordinating council.

(i) The commissioner of revenue may promulgate such rules and regulations as are necessary to implement this section, including, but not limited to, provisions to prevent the generation of multiple credits with respect to the same property.

(j)If the economic assistance coordinating council revokes the certification of a project as provided in section 3F of chapter 23A, then a portion of the tax credits otherwise allowed by this section and claimed by the corporation prior to the date  on which the economic assistance coordinating council makes the determination to revoke project certification must be added back as additional tax due and shall be reported as such on the return of the corporation for the taxable period in which the economic assistance coordinating council makes the determination to revoke project certification.  The amount of credits subject to recapture shall be proportionate to the corporation’s compliance with the job creation requirements applicable to the certified project.  The corporation’s proportion of compliance shall be determined by the economic assistance coordinating council as part of its revocation process and shall be reported to the corporation and the department of revenue at the time certification is revoked.

(k)If a certified project is sold or otherwise disposed of, tax credits allowed under this section may be transferred to the purchaser of the certified project; provided, that the EDIP contract is assigned to and assumed by the purchaser of the certified project, and such assignment and assumption is approved in writing by the economic assistance coordinating council. 

(l)Nothing in this section shall limit the authority of the commissioner of revenue to make adjustments to a corporation's liability upon audit.

SECTION 71.  Section 38O of said chapter 63, as so appearing, is hereby amended by striking out, in lines 4 and 5, the words “as defined by section 3A” and inserting in place thereof the following words:-  designated under section 3G.

SECTION 72.   Section 38R of said chapter 63, as so appearing, is hereby amended by inserting after the word “criteria”, in line 45, the following words:- ; provided, however, that the Massachusetts historical commission shall ensure the award of tax credits pursuant to this section to allow a taxpayer that acquires a qualified historic structure to receive any tax credits for qualified rehabilitation expenditures previously awarded to the transferor of the qualified historic structure if: (A) the rehabilitation was not placed in service by the transferor; (B) no credit has been claimed by anyone other than the acquiring taxpayer as verified by the department of revenue to the commission; (C) the taxpayer completes the rehabilitation and obtains certification as provided in this section; and (D) the taxpayer conforms with all other requirements of this section; and provided further, that in the case of a multi-phase project, tax credits may be transferred for any phase that meets the criteria in subclauses (A) to (D), inclusive.

SECTION 73.  Section 38BB of said chapter 63, as so appearing, is hereby amended by striking out, in line 5, the figure “10” and inserting in place thereof the following figure:-  25.

SECTION 74.  Said section 38BB of said chapter 63, as so appearing, is hereby further  amended further by striking out, in line 6, the words “substantial rehabilitation” and inserting in place thereof the following word:-  project.

SECTION 75.  Said section 38BB of said chapter 63, as so appearing, is hereby further  amended further by striking out, in line 17 and in lines 38 and  39, the word “rehabilitation” and inserting in place thereof, in each instance, the following word:-  project.

SECTION 76.  Said section 38BB of said chapter 63, as so appearing, is hereby further amended by striking out, in lines 23 and 34, the figure “5” and inserting in place thereof, in each instance, the figure:-  10. 

SECTION 77.  Section 38EE of said chapter 63, as so appearing, is hereby amended by striking out, in line 76, the words “as defined in section 3A” and inserting in place thereof the following words:-  designated under section 3G.   

SECTION 78. The General Laws are hereby amended by inserting after chapter 110H the following chapter:-

CHAPTER 110I

FANTASY CONTESTS

Section 1. For the purposes of this chapter, the following words shall have the following meanings:

“Fantasy contest”,  includes any fantasy or simulated game or contest, in which: (i) the value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest; (ii) all winning outcomes reflect the relative knowledge and skill of the participants and shall be determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and (iii) no winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of such teams or solely on any single performance of an individual athlete or player in any single actual event.

“Fantasy contest operator”, a person or entity that offers fantasy contests for a cash prize to members of the public.

Section 2. A fantasy contest operator may offer a fantasy contest to residents of the commonwealth pursuant to and in accordance with regulations promulgated by the attorney general.

Section 3. The provisions of sections 24, 24A and 27 of chapter 10 or chapter 271 shall not apply to a fantasy contest operator conducting a fantasy contest.

SECTION 79.  Section 12 of chapter 138 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out the second paragraph.

SECTION 80.  Section 15 of said chapter 138, as so appearing, is hereby further amended by striking out, in line 97, the words “or connected therewith” and inserting in place thereof the following words:- ; provided, however, that a common victualler duly licensed to operate a restaurant under chapter 140 and holding a license under section 12 may be connected to a premises licensed under this section, provided that at least 50 per cent of the revenue generated at the premise licensed under this section is derived from the sale of grocery items as defined in section 184B of chapter 94; and provided further that the connection between, and design of, the 2  locations so licensed, including interior connections, which shall be allowed, clearly delineates the 2 premises in such a way as to make the boundaries of each licensed premises clearly separate and identifiable to customers, liquor distributors and regulatory authorities, and enables the respective licensees to maintain control of the licensed area, egress, and the sale, storage and service of alcoholic beverages, and otherwise in conformity with this chapter.

SECTION 81.  Section 17 of said chapter 138, as so appearing, is hereby amended by striking, in lines 291 through 293, the following:-  Unless expressly authorized by this chapter, local licensing authorities shall not grant licenses to any person, firm or corporation under more than one section of this chapter.

SECTION 82.  Said section 17 of said chapter 138, as so appearing, is hereby further amended by striking out, in lines 316 and 319, the figure “12,”.

SECTION 83.  Section 19B of said chapter 138 is hereby amended by striking out, in lines 108 and 109, as so appearing, the words “section twelve of this chapter” and inserting in place thereof the following words:- this section.

SECTION 84.  Said section 19B of said chapter 138 is hereby further amended by striking out subsection (n), as so appearing, and inserting in place thereof the following subsection:-

(n) Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license to sell wine for consumption on the premises at any location it deems reasonable and proper, and approves in writing, on the grounds of a farmer–winery licensed under this section and on the grounds of the vineyards operated as appurtenant and contiguous to, and in conjunction with, such farmer-winery; provided, however, that such licensees may sell for on-premises consumption only wines produced by the winery or produced for the winery and sold under the winery brand name.  All the procedures under section 15A shall apply to the granting of a license under this subsection.

SECTION 85.  Section 19C of said chapter 138, as so appearing, is hereby amended by striking out subsection (n) and inserting in place thereof the following subsection:-

(n) Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license to sell malt beverages for consumption on the premises at any location it deems reasonable and proper, and approves in writing, on the grounds of a farmer–brewery licensed under this section and on the grounds of the farm operated as appurtenant and contiguous to, and in conjunction with, such farmer-brewery; provided, however, that such licensees may sell for on-premises consumption only malt beverages produced by the brewery or produced for the brewery and sold under the brewery brand name.  All the procedures under section 15A shall apply to the granting of a license under this subsection.

SECTION 86.  Section 19E of said chapter 138, as so appearing, is hereby amended by striking out  subsection (o) and inserting in place thereof the following subsection :-

(o) Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license to sell distilled spirits for consumption on the premises at any location it deems reasonable and proper, and approves in writing, on the grounds of a farmer–distillery licensed under this section and on the grounds of the farm operated as appurtenant and contiguous to, and in conjunction with, such farmer-distillery; provided, however, that such licensees may sell for on-premises consumption only distilled spirits produced by the distillery or produced for the distillery and sold under the distillery brand name.  All the procedures under section 15A shall apply to the granting of a license under this subsection.

SECTION 87.  Said chapter 138 is hereby further amended by inserting after section 19F the following section:-

Section 19G.  Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license under this section to any person that holds any combination of a farmer-winery under section 19B, a farmer-brewery under section 19C, and a farmer-distillery under section 19E, may be granted a license under this section to sell for on-premises consumption any alcoholic beverages produced by its section 19B, section 19C, and section 19E licenses, or produced for the section 19B, section 19C, and section 19E licensee and sold under the licensee’s brand name, on any of its premises licensed under section 19B, section 19C, and section 19E, and on the grounds of the farm operated as appurtenant and contiguous to, and in conjunction with, such premises provided, however, that these premises are operated appurtenant and contiguous to each other.

SECTION 88. Section 33 of said chapter 138 as appearing in the 2014 Official Edition, is hereby amended by striking out, in lines 14 and 15, lines 17 and 18,  lines 24 and 25, and in lines 27 and 28, the words “or on the day following when Christmas occurs on a Sunday”.

SECTION 89. Section 141 of chapter 175 of the General Laws, as so appearing, is hereby amended by striking out, in line 4,  the word “twelve” and inserting in place thereof the following figure:- 20.

SECTION 90. Subsection (a) of section 162M of said chapter 175 , as so appearing, is hereby amended by inserting after paragraph (7) the following  paragraph :-

(7 1/2) Travel, limited line travel insurance, as that term is defined in section 162Z.

SECTION 91. Said chapter 175 is hereby further amended by inserting after section 162Y the following section:-

Section 162Z. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Designated responsible producer” or “DRP”, a person responsible for the limited lines travel insurance producer’s compliance with the travel insurance laws, rules and regulations of the state.

“Limited lines travel insurance producer”, a: (i) managing general underwriter; (ii) managing general agent or third party administrator; or (iii) licensed insurance producer, including a limited lines producer, designated by an insurer as the travel insurance supervising entity as set forth in subsection (g).

“Offer and disseminate”, to provide general information, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other non-licensable activities permitted by the state.

“Travel insurance”, insurance coverage for personal risks incident to planned travel, including but not limited to: (i) interruption or cancellation of trip or event; (ii) loss of baggage or personal effects; (iii) damages to accommodations or rental vehicles; or (iv) sickness, accident, disability or death occurring during travel. Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting 6 months or longer, including for example, those working overseas as an expatriate or military personnel being deployed.

“Travel retailer”, a business entity that makes, arranges or offers travel services and may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance producer.

(b) (1) The commissioner may issue to an individual or business entity that has filed with the commissioner an application for such limited license in a form and manner prescribed by the commissioner, a limited lines travel insurance producer license, which authorizes the limited lines travel insurance producer to sell, solicit or negotiate travel insurance through a licensed insurer.

(2) A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity license if the following conditions are met:

(i) The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance:

(A) a description of the material terms or the actual material terms of the insurance coverage;

(B) a description of the process for filing a claim;

(C) a description of the review or cancellation process for the travel insurance policy; and

(D) the identity and contact information of the insurer and limited lines travel insurance producer.

(ii) At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register on a form prescribed by the commissioner of each travel retailer that offers travel insurance on the limited lines travel insurance producer’s behalf. The register shall be maintained and updated annually by the limited lines travel insurance producer and shall include the name, address and contact information of the travel retailer and an officer or person who directs or controls the travel retailer’s operations, and the travel retailer’s federal tax identification number. The limited lines travel insurance producer shall submit such register to the division of insurance upon reasonable request. The limited lines travel insurance producer shall also certify that the travel retailer registered complies with 18 U.S.C. section 1033.

(iii) The limited lines travel insurance producer has designated 1 of its employees who is a licensed individual producer as the DRP.

(iv) The DRP, president, secretary, treasurer and any other officer or person who directs or controls the limited lines travel insurance producer’s insurance operations shall comply with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.

(v) The limited lines travel insurance producer has paid all applicable insurance producer licensing fees as set forth in applicable state law.

(vi) The limited lines travel insurance producer requires each employee and authorized representative of the travel retailer, whose duties include offering and disseminating travel insurance, to receive a program of instruction or training, which may be subject to review by the commissioner. The training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective customers.

(vii) Limited lines travel insurance producers, and those registered under its license, are exempt from the examination requirements under section 162K and the continuing education requirements under section 177E.

(viii) The limited lines travel insurance producer or travel retailer provides its written consumer materials to department upon reasonable request.

(c) Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers, brochures or other written materials that:

(1) provide the identity and contact information of the insurer and the limited lines travel insurance producer;

(2) explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and

(3) explain that an unlicensed travel retailer is permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer’s existing insurance coverage.

(d) A travel retailer’s employee or authorized representative who is not licensed as an insurance producer may not:

(1) evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage;

(2) evaluate or provide advice concerning a prospective purchaser’s existing insurance coverage; or

(3) hold himself out as a licensed insurer, licensed producer, or insurance expert.

(e)a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer, meeting the conditions stated in this section, is authorized to do so and receive related compensation, not in the form of commissions, upon registration by the limited lines travel insurance producer as described in subsection (b).

(f) Travel insurance may be provided under an individual policy or under a group or master policy.

(g) As the insurer designee, the limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with this section.

(h) The limited lines travel insurance producer and any travel retailer offering and disseminating travel insurance under the limited lines travel insurance producer license shall be subject to the: (i) laws regarding unfair methods of competition and unfair and deceptive acts and practices in the business of insurance; and (ii) the enforcement provisions applicable to insurance producers.

SECTION 92.  Section 1 of chapter 176J of the General Laws, as so appearing, is hereby amended by inserting after the words “separate insurance policy”, in lines 200 and 201, the following words:- ;travel insurance.

SECTION 93.  The definition of “Health benefit plan” in said section 1 of said chapter 176J, as so appearing, is hereby amended by inserting after the third sentence the following 2 sentences:-    Travel  insurance for the purpose of this chapter is insurance coverage for personal risks  incident to planned travel, including but not limited to: (i) interruption or  cancellation of trip or event; (ii) loss of baggage or personal effects; (iii) damages to  accommodations or rental vehicles; or (iv) sickness, accident, disability or death  occurring during travel, provided that the health benefits are not offered on a stand-alone basis and are incidental to other coverages.    The term, “travel  insurance” shall not include major medical plans, which provide comprehensive  medical protection for travelers with trips lasting 6 months or longer, including  for example, those working overseas as an ex-patriot or military personnel being  deployed. 

  SECTION 94.  Subsection (c ) of section 7 of chapter 293 of the acts of 2006, as amended by section 6 of chapter 129 of the acts of 2008, is hereby further amended by striking out clauses (ii), (iii) and (iv)  and inserting in place thereof the following 2 clauses:-

(ii) the secretary certifies that the developer has received commitments satisfactory to the department for financing sufficient, with equity or other amounts to be provided by the developer and other persons, to fund the costs of construction of the proposed economic development project exclusive of those public infrastructure improvements to be financed by the agency, and shall have obtained a blanket performance bond or other security satisfactory to the secretary and payable to the agency securing the developer's obligation to complete the construction of the public infrastructure improvements included in the economic development proposal in an amount equal to or greater than the outstanding principal amount of any bonds to be issued by the agency to finance costs of public infrastructure improvements; and (iii) the agency certifies that it has approved the proposal.

SECTION 95.  Subsection (d) of said section 7 of said chapter 293, as amended by section 87 of chapter 287 of the acts of 2014, is hereby further amended by striking out  the words, “31 per cent” and inserting in place thereof the following words:- 50 per cent.

SECTION 96.  Subsection (e) of said section 7 of said chapter 293, as amended by section 88 of said chapter 287, is hereby further amended by striking out the second sentence. 

SECTION 97.  Subsection (a) of section 8 of said chapter 293, as amended by section 8 of chapter 129 of the acts of 2008, is hereby further amended by striking out clauses (iii), (iv) and (v)  and inserting in place thereof the following 2 clauses:-

(iii) the municipality shall provide local infrastructure development assistance to the commonwealth with respect to the economic development project to the extent and for such time as is provided in section 10; and (iv) the commonwealth shall provide infrastructure development assistance to the agency to pay the debt service due in each fiscal year on any bonds issued by the agency to finance the costs of public infrastructure improvements included in such economic development project, subject to reimbursement of all or a portion of such state infrastructure development assistance through the collection of infrastructure assessments as provided in section 9 of this act and from local infrastructure assistance provided by the municipality as provided in section 10.

SECTION 98.  Subsection (b) of section 11 of said chapter 293, as amended by sections 13 and 14 of said chapter 129, is hereby further amended by striking out the following words:- “; provided, however, that notwithstanding any other general or special law to the contrary, a certified economic development project receiving financial assistance for public infrastructure improvements pursuant to this act shall not be eligible for:  (i) designation as a TIF zone pursuant to section 59 of chapter 40 of the General Laws; provided, however, that a certified economic development project designated as a TIF zone pursuant to said section 59 of said chapter 40 prior to January 1, 2009 shall be eligible to receive financial assistance for public infrastructure improvements pursuant to this act; (ii) the tax credit described in section 38N of chapter 63 of the General Laws; (iii) a community development action grant pursuant to section 57A of chapter 121B of the General Laws; (iv) a public works economic development program grant under clause (c) of the first paragraph of section 17 of chapter 732 of the acts of 1981; or (v) or any other economic assistance program as may be determined by the secretary or the commissioner.  The ineligibility to participate in economic assistance programs as provided in clauses (i) to (v), inclusive, shall not apply to any tenant of a certified economic development project which is not an affiliate of the developer”.

SECTION 99. Item 7100-1000 of section 2 of chapter 258 of the acts of 2008, as amended by section 66 of chapter 238 of the acts of 2012 is hereby further amended by striking out the figure “$3” and inserting in place thereof the following figure:- $1.

SECTION 100.  A controlling business or affiliate of a controlling business which has been awarded state tax credits under chapter 19 of the acts of 1993 or sections 3A to 3H, inclusive, of chapter 23A of the General Laws, and which intends to claim such credits on tax filings for tax years beginning on or after January 1, 2016 shall enter into an EDIP, as defined in section 3A of said chapter 23A, contract setting forth the amount of the credits awarded, the amount of credits claimed or carried over, and the job creation obligations of the controlling business.  Any controlling business or affiliate of a controlling business that fails to enter into an EDIP contract in form and substance acceptable to the Massachusetts office of business development  on or before December 31, 2016 shall forfeit such credits.  For purposes of this section, the terms controlling business, and EDIP contract shall have the meanings ascribed to them in said section 3A of said chapter 23A.

SECTION 101.  (a) Any and all references in the General Laws to “economic target area” or “ETA” shall be deemed to mean an economic target area designated by the economic assistance coordinating council or EACC , established pursuant to section 3B of chapter 23A of the General Laws and in existence as of the effective date of this act, or an area designated by the EACC as an economic target area in accordance with section 3G of said chapter 23A . 

(b) As of the effective date of this act, all references in the General Laws to “economic opportunity area” or “EOA” shall be deemed to mean an economic opportunity area designated by the EACC and in existence as of the effective date of this act, or an area designated by the EACC as an economic opportunity area pursuant to said section 3G of said chapter 23A.  Existing economic target areas and economic opportunity areas designated by the EACC prior to January 1, 2017 shall remain in effect until their scheduled termination date, if any.

SECTION 102.  Notwithstanding any general or special law to the contrary, sections 94 to 98, inclusive shall not apply to economic development projects approved by the secretary of administration and finance pursuant to subsection (c) of section 7 of chapter 293 of the acts of 2006 on or before January 1, 2017.

SECTION 103.  The Massachusetts Technology Park Corporation, established in section 3 of chapter 40J of the General Laws and doing business as the Massachusetts Technology Collaborative, shall, subject to appropriation, create a cybersecurity and data analytics technology development and training center of excellence, in this section referred to as the center.  The center shall convene interested public and private universities, governmental bodies and industry participants to share public and private data sets for the purposes of expanding the commonwealth’s data analytics capabilities.  The center may: (1) match public and private universities with industry participants to develop cybersecurity technology and expand data analytic capabilities; (2) provide a forum for sharing data sets for analysis; and (3) provide skills building and workforce training in cybersecurity and data analytics.

The Massachusetts Technology Park Corporation shall file a report detailing the activities of the center on or before September 1, 2017 with the clerks of the house of representatives and the senate who shall forward the same to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies.   

SECTION 104.  Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out section 2A, the state treasurer shall, upon receipt of a request by 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, $756,068,000 .  All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Commonwealth Economic Development Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2051.  All interest and payments on account of principal on such obligations shall be payable from the General Fund.  Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth. 

SECTION 105.  Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out section 2B, the state treasurer shall, upon receipt of a request by 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, $16,000,000.  All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Commonwealth Economic Development Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2051.  All interest and payments on account of principal on such obligations shall be payable from the General Fund.  Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth. 

SECTION 106.  Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out section 2C, the state treasurer shall, upon receipt of a request by 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, $212,500,000.  All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Commonwealth Economic Development Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2051.  All interest and payments on account of principal on such obligations shall be payable from the General Fund.  Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth. 

SECTION 107. (a) There shall be a special commission to conduct a comprehensive, non-binding study relative to the regulation of fantasy contests in the commonwealth. The commission shall review all aspects of fantasy contests including, but not limited to, economic development, consumer protection, taxation, legal and regulatory structures, implications for existing gaming in the commonwealth, burdens and benefits to the commonwealth and any other factors the commission deems relevant. The special commission shall not include in its study a review of the state lottery or its ability to provide lottery products online or over the internet.

(b) The commission shall consist of: 1 person who shall be appointed by the governor who shall have industry expertise in fantasy contests; 1 person who shall be appointed by the Massachusetts gaming commission; 1 person who shall be appointed by the attorney general who shall have expertise in fantasy contest consumer protection; 2 persons who shall be appointed by the president of the senate, 1 of whom shall be the senate chair of the joint committee on economic development and emerging technologies; 1 person who shall be appointed by the minority leader of the senate; 2 persons who shall be appointed by the speaker of the house of representatives, 1 of whom shall be the house chair of the joint committee on economic development and emerging technologies; and 1 person who shall be appointed by the minority leader of the house of representatives.

(c) The commission shall convene its first meeting not later than October 1, 2016, and shall elect a chairperson. The commission shall submit its final report and its recommendations for legislation by filing the same with the clerks of the senate and the House of Representatives not later than March 1, 2017.

SECTION 108. The deduction allowed pursuant to clause (19) of subsection (a) of part B of section 3 of chapter 62 of the General Laws shall apply for taxable years beginning on or after January 1, 2017 through the tax year beginning on January 1, 2021.

SECTION 109.  Sections 4 to 6, inclusive, 14 to 20, inclusive, 29, 30, 51 to 61, inclusive, 63 to 77, inclusive, 94 to 98, inclusive, and 101 shall be effective for tax years beginning on or after January 1, 2017.

SECTION 110. Sections 4 to 6, inclusive, 14 to 20, inclusive, 29, 30, 51 to 61, inclusive, 63 to 77, inclusive, 94 to 98, inclusive, and 101 shall take effect on January 1, 2017.

SECTION 111.  Sections 21 to 26, inclusive, 33 to 53, inclusive, shall take effect on January 1, 2017.

SECTION 112. Section 6 of Chapter 62 of the General Laws, as appearing in the 2008 Official Edition, is further amended by adding the following subsection:

(t) There shall be established a live theater tax credit program under which a live theater company doing business with a Massachusetts based theater venue, theater company, theater presenter or producer may be eligible. The credit may be claimed against the taxes due pursuant to this chapter or Chapter 63. The credit shall be established to support the expansion of pre-Broadway, pre off-Broadway live theater, Broadway tour launches and World Premieres and shall assist in the development of long run show development and growth.

(1) As used in this section the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Commissioner” means the commissioner of revenue.

“Company” means a live theater company, however organized.

“Eligible theater production” means a live stage musical or theatrical production or tour being presented in a qualified production facility, as defined in this chapter that is either: (a) a Pre-Broadway production, or (b) a pre off-Broadway production, or (c) a Broadway Tour Launch or (d) a World Premiere.

“Eligible theater production certificate” means a certificate issued by the Massachusetts Office of Travel and Tourism certifying that the production is an eligible theater production that meets the guidelines of this chapter.

“Advertising and public relations expenditure” means costs incurred within the state by the Eligible theater productions for goods or services related to the marketing, public relations, creation and placement of print, electronic, television, billboards and other forms of advertising to promote the Eligible theater production.

“Office” means the Massachusetts office of travel and tourism.

"Payroll" means all salaries, wages, fees, and other compensation wages including, but not limited to, taxes, benefits, and any other consideration incurred or paid to talent and non-talent employees of the applicant who are residents of the commonwealth of Massachusetts for services rendered to and on behalf of an eligible theater production. The expenditure shall be incurred or paid by the applicant for services related to any portion of an eligible theater production from its pre-production stages, including, but not limited to, (a) the writing of the script, (b) casting, (c) hiring of service providers, (d) purchases from vendors, (e) marketing, (f) advertising, (g) public relations, (h) load in, (i) rehearsals, (j) performances, (k) other eligible theater production related activities, (l) load out; provided further, said labor expenditure shall be directly attributable to the eligible theater production and shall be limited to the first $100,000 of wages incurred or paid to each employee of an eligible theater production in each tax year.

“Pre-Broadway Production” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility having a presentation scheduled for New York City’s Broadway theater district within (12) months after its Massachusetts presentation.

“Pre-Off Broadway Production” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility having a presentation scheduled for New York City’s Off-Broadway’s theater district within (12) months after its Massachusetts presentation.

“Broadway Tour Launch” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility that was originally presented in New York City’s Broadway theater district and opens its US tour in Massachusetts.

“Production and Performance Expenditures” means a contemporaneous exchange of cash or cash equivalent for goods or services related to development, production, performance or operating expenditures incurred in this state for a qualified theater production including, but not limited to, expenditures for design, construction and operation, including sets, special and visual effects, costumes, wardrobes, make-up, accessories, costs associated with sound, lighting, staging, payroll, transportation expenditures, advertising and public relations expenditures, facility expenses, rentals, per diems, accommodations and other related costs.

“Qualified Production Facility” means a facility located in the State of Massachusetts in which live theatrical productions are, or are intended to be, exclusively presented that contains at least one stage, a seating capacity of three hundred fifty (350)or more seats, and dressing rooms, storage areas, and other ancillary amenities necessary for the Eligible theater production.

“Massachusetts Office of Travel and Tourism” means the office within the secretariat of economic development that has been established in order to market Massachusetts as a leisure travel destination in order to generate state and local tax revenues, create jobs, and support travel-related businesses.

“Transportation expenditures” means expenditures for the packaging, crating, and transportation both to the state for use in a qualified theater production of sets, costumes, or other tangible property constructed or manufactured out of state, and/or from the state after use in a qualified theater production of sets, costumes, or other tangible property constructed or manufactured in this state and the transportation of the cast and crew to and from the state. Such term shall include the packaging, crating, and transporting of property and equipment used for special and visual effects, sound, lighting, and staging, costumes, wardrobes, make-up and related accessories and materials, as well as any other performance or production-related property and equipment.

“World Premiere” means a live stage production performed in a qualified production facility of an original work which has never been commercially presented in public before.

(2) Any person, firm, partnership, trust, estate or other entity that receives an eligible theater production certificate shall be allowed a tax credit equal to thirty-five percent (35%) of production and performance expenditures which shall consist of payroll and twenty –five percent (25%) of the production and performance expenditures and transportation expenditures for the eligible theater production and to be computed as provided in this chapter against a tax imposed by this chapter. Said credit shall not exceed five million dollars ($5,000,000) and shall be limited to certified production cost directly attributable to activities in the state and transportation expenditures defined above. The total production budget shall be a minimum of one hundred thousand dollars ($100,000).

(3) No more than five million dollars ($5,000,000) in total may be issued for any tax year for musical and theatrical production tax credits pursuant to this chapter.

(4) The tax credit shall be allowed against the tax for the taxable period in which the credit is earned and can be carried forward for not more than five (5) succeeding tax years.

(5) Credits allowed to a company, which is a subchapter S corporation, partnership, or a limited liability company that is taxed as a partnership, shall be passed through respectively to persons designated as partners, members or owners of such companies on a pro rata basis or pursuant to an executed agreement among such persons designated as subchapter S corporation shareholders, partners, or members documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity.

(6) If the company has not claimed the tax credits in whole or part, taxpayers eligible for the tax credits may assign, transfer or convey the tax credits, in whole or in part, by sale or otherwise to any individual or entity and such assignee of the tax credits that have not claimed the tax credits in whole or part may assign, transfer or convey the tax credits, in whole or in part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed pursuant to this chapter or Chapter 63, as appropriate. The assignee may apply the tax credit against taxes imposed on the assignee for not more than three (3) succeeding tax years. The assignor shall perfect the transfer by notifying the commissioner of revenue, in writing, within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the commissioner to administer and carry out the provisions of this section.

(7) For purposes of this chapter, any assignment or sales proceeds received by the assignor for its assignment or sale of the tax credits allowed pursuant to this section and Section 38GG of Chapter 63 shall be exempt from this title.

(8) In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return, provided, however, that in the case of a corporation that files a consolidated return with one or more other corporations with operations in Massachusetts, the credit will be allowed to be included in a consolidated return with respect to such corporations with operations in Massachusetts only.

(9) The applicant or applicants shall properly prepare, sign and submit to the Massachusetts office of travel and tourism an application for initial certification of the theater production. The application shall include such information and data as the office deems reasonably necessary for the proper evaluation and administration of said application, including, but not limited to, any information about the theater production company or their related partners/presenters and a specific Massachusetts live theater or musical production. The office shall review the completed applications and determine whether it meets the requisite criteria and qualifications for the initial certification for the production and/or presentation. If the initial certification is granted, the office shall issue a notice of initial certification of the eligible theater production and/or presentation to the theater production company, co-producer or presenter and to the commissioner. The notice shall state that, after appropriate review, the initial application meets the appropriate criteria for conditional eligibility. The notice of initial certification will provide a unique identification number for the production/presentation and is only a statement of conditional eligibility for the production/presentation and, as such, does not grant or convey any Massachusetts tax benefits.

(10) Upon completion of an eligible theater production, the applicant or applicants shall properly prepare, sign and submit to the office an application for final certification of the eligible theater production. The final application shall also contain a cost report and an “accountant’s certification.” The office and commissioner may rely without independent investigation, upon the accountant’s certification, in the form of an opinion, confirming the accuracy of the information included in the cost report. Upon review of a duly completed and filed application and upon no later than thirty (30) days of submission thereof, the commissioner will make a determination pertaining to the final certification of the eligible theater production and the resultant tax credits.

(11)  Upon completion of an eligible theater production, the applicant or applicants shall deposit an amount equal to 15% of the tax credits received pursuant to this chapter into the Massachusetts Cultural Council Facilities Fund.  The Massachusetts Cultural Council shall use these funds to address issues related to the workforce development and sustainability of the Massachusetts live theater industry.

(12) Upon determination that the company qualifies for final certification and the resultant tax credits, the commissioner shall issue to the company: (1) an eligible theater production certificate; and (2) a tax credit certificate in an amount in accordance with this section (b) hereof. A musical and theatrical production company is prohibited from using state funds, state loans or state guaranteed loans to qualify for the live theater infrastructure tax credit. All documents that are issued by the office pursuant to this section shall reference the identification number that was issued to the production as part of its initial certification.

(13) The Massachusetts office of travel and tourism, in consultation as needed with the commissioner of revenue, shall promulgate such rules and regulations as are necessary to carry out the intent and purposes of this chapter in accordance with the general guidelines provided herein for the certification of the production and the resultant production credit.

(14) If information comes to the attention of the Massachusetts Office of Travel and Tourism that is materially inconsistent with representations made in an application, the office may deny the requested certification. In the event that tax credits or a portion of tax credits are subject to recapture for ineligible costs and such tax credits have been transferred, assigned and/or allocated, the state will pursue its recapture remedies and rights against the applicant of the theater production tax credits. No redress shall be sought against assignees, sellers, transferees or allocates of such credits.

(15) No credits shall be issued on or after January 1, 2022 unless the production has received initial certification under this section prior to January 1, 2022.

SECTION 112A. Chapter 63 of the General Laws, as appearing in the 2008 Official Edition, is further amended by adding the following section:

Section 38GG. There shall be established a live theater tax credit program under which a live theater company doing business with a Massachusetts based theater venue, theater company, theater presenter or producer may be eligible. The credit may be claimed against the taxes due pursuant to this chapter or Chapter 62. The credit shall be established to support the expansion of pre-Broadway, pre off-Broadway live theater, Broadway tour launches and World Premieres and shall assist in the development of long run show development and growth.

(a) As used in this section the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Commissioner” means the commissioner of revenue.

“Company” means a live theater company, however organized.

“Eligible theater production” means a live stage musical or theatrical production or tour being presented in a qualified production facility, as defined in this chapter that is either: (a) a Pre-Broadway production, or (b) a pre off-Broadway production, or (c) a Broadway Tour Launch or (d) a World Premiere.

“Eligible theater production certificate” means a certificate issued by the Massachusetts Office of Travel and Tourism certifying that the production is an eligible theater production that meets the guidelines of this chapter.

“Advertising and public relations expenditure” means costs incurred within the state by the Eligible theater productions for goods or services related to the marketing, public relations, creation and placement of print, electronic, television, billboards and other forms of advertising to promote the Eligible theater production.

“Office” means the Massachusetts office of travel and tourism.

"Payroll" means all salaries, wages, fees, and other compensation wages including, but not limited to, taxes, benefits, and any other consideration incurred or paid to talent and non-talent employees of the applicant who are residents of the commonwealth of Massachusetts for services rendered to and on behalf of an eligible theater production. The expenditure shall be incurred or paid by the applicant for services related to any portion of an eligible theater production from its pre-production stages, including, but not limited to, (a) the writing of the script, (b) casting, (c) hiring of service providers, (d) purchases from vendors, (e) marketing, (f) advertising, (g) public relations, (h) load in, (i) rehearsals, (j) performances, (k) other eligible theater production related activities, (l) load out; provided further, said labor expenditure shall be directly attributable to the eligible theater production and shall be limited to the first $100,000 of wages incurred or paid to each employee of an eligible theater production in each tax year.

“Pre-Broadway Production” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility having a presentation scheduled for New York City’s Broadway theater district within (12) months after its Massachusetts presentation.

“Pre-Off Broadway Production” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility having a presentation scheduled for New York City’s Off-Broadway’s theater district within (12) months after its Massachusetts presentation.

“Broadway Tour Launch” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility that was originally presented in New York City’s Broadway theater district and opens its US tour in Massachusetts.

“Production and Performance Expenditures” means a contemporaneous exchange of cash or cash equivalent for goods or services related to development, production, performance or operating expenditures incurred in this state for a qualified theater production including, but not limited to, expenditures for design, construction and operation, including sets, special and visual effects, costumes, wardrobes, make-up, accessories, costs associated with sound, lighting, staging, payroll, transportation expenditures, advertising and public relations expenditures, facility expenses, rentals, per diems, accommodations and other related costs.

“Qualified Production Facility” means a facility located in the State of Massachusetts in which live theatrical productions are, or are intended to be, exclusively presented that contains at least one stage, a seating capacity of three hundred fifty (350)or more seats, and dressing rooms, storage areas, and other ancillary amenities necessary for the Eligible theater production.

“Massachusetts Office of Travel and Tourism” means the office within the secretariat of economic development that has been established in order to market Massachusetts as a leisure travel destination in order to generate state and local tax revenues, create jobs, and support travel-related businesses.

“Transportation expenditures” means expenditures for the packaging, crating, and transportation both to the state for use in a qualified theater production of sets, costumes, or other tangible property constructed or manufactured out of state, and/or from the state after use in a qualified theater production of sets, costumes, or other tangible property constructed or manufactured in this state and the transportation of the cast and crew to and from the state. Such term shall include the packaging, crating, and transporting of property and equipment used for special and visual effects, sound, lighting, and staging, costumes, wardrobes, make-up and related accessories and materials, as well as any other performance or production-related property and equipment.

“World Premiere” means a live stage production performed in a qualified production facility of an original work which has never been commercially presented in public before.

(b) Any person, firm, partnership, trust, estate or other entity that receives an eligible theater production certificate shall be allowed a tax credit equal to thirty-five percent (35%) of production and performance expenditures which shall consist of payroll and twenty –five percent (25%) of the production and performance expenditures and transportation expenditures for the eligible theater production and to be computed as provided in this chapter against a tax imposed by this chapter. Said credit shall not exceed five million dollars ($5,000,000) and shall be limited to certified production cost directly attributable to activities in the state and transportation expenditures defined above. The total production budget shall be a minimum of one hundred thousand dollars ($100,000).

(c) No more than five million dollars ($5,000,000) in total may be issued for any tax year for musical and theatrical production tax credits pursuant to this chapter or chapter 62.

(d) The tax credit shall be allowed against the tax for the taxable period in which the credit is earned and can be carried forward for not more than five (5) succeeding tax years.

(e) If the company has not claimed the tax credits in whole or part, taxpayers eligible for the tax credits may assign, transfer or convey the tax credits, in whole or in part, by sale or otherwise to any individual or entity and such assignee of the tax credits that have not claimed the tax credits in whole or part may assign, transfer or convey the tax credits, in whole or in part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed pursuant to this chapter or Chapter 62, as appropriate. The assignee may apply the tax credit against taxes imposed on the assignee for not more than three (3) succeeding tax years. The assignor shall perfect the transfer by notifying the commissioner of revenue, in writing, within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the commissioner to administer and carry out the provisions of this section.

(f) For purposes of this chapter, any assignment or sales proceeds received by the assignor for its assignment or sale of the tax credits allowed pursuant to this section and subsection (t) of section 6 of Chapter 62 shall be exempt from this title.

(g) In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return, provided, however, that in the case of a corporation that files a consolidated return with one or more other corporations with operations in Massachusetts, the credit will be allowed to be included in a consolidated return with respect to such corporations with operations in Massachusetts only.

(h) The applicant or applicants shall properly prepare, sign and submit to the Massachusetts office of travel and tourism an application for initial certification of the theater production. The application shall include such information and data as the office deems reasonably necessary for the proper evaluation and administration of said application, including, but not limited to, any information about the theater production company or their related partners/presenters and a specific Massachusetts live theater or musical production. The office shall review the completed applications and determine whether it meets the requisite criteria and qualifications for the initial certification for the production and/or presentation. If the initial certification is granted, the office shall issue a notice of initial certification of the eligible theater production and/or presentation to the theater production company, co-producer or presenter and to the commissioner. The notice shall state that, after appropriate review, the initial application meets the appropriate criteria for conditional eligibility. The notice of initial certification will provide a unique identification number for the production/presentation and is only a statement of conditional eligibility for the production/presentation and, as such, does not grant or convey any Massachusetts tax benefits.

(i) Upon completion of an eligible theater production, the applicant or applicants shall properly prepare, sign and submit to the office an application for final certification of the eligible theater production. The final application shall also contain a cost report and an “accountant’s certification.” The office and commissioner may rely without independent investigation, upon the accountant’s certification, in the form of an opinion, confirming the accuracy of the information included in the cost report. Upon review of a duly completed and filed application and upon no later than thirty (30) days of submission thereof, the commissioner will make a determination pertaining to the final certification of the eligible theater production and the resultant tax credits.

(j) Upon determination that the company qualifies for final certification and the resultant tax credits, the commissioner shall issue to the company: (1) an eligible theater production certificate; and (2) a tax credit certificate in an amount in accordance with this section (b) hereof. A musical and theatrical production company is prohibited from using state funds, state loans or state guaranteed loans to qualify for the live theater infrastructure tax credit. All documents that are issued by the office pursuant to this section shall reference the identification number that was issued to the production as part of its initial certification.

(k)  Upon completion of an eligible theater production, the applicant or applicants shall deposit an amount equal to 15% of the tax credits received pursuant to this chapter into the Massachusetts Cultural Council Facilities Fund.  The Massachusetts Cultural Council shall use these funds to address issues related to the workforce development and sustainability of the Massachusetts live theater industry.

(l) The Massachusetts office of travel and tourism, in consultation as needed with the commissioner of revenue, shall promulgate such rules and regulations as are necessary to carry out the intent and purposes of this chapter in accordance with the general guidelines provided herein for the certification of the production and the resultant production credit.

(m) If information comes to the attention of the Massachusetts Office of Travel and Tourism that is materially inconsistent with representations made in an application, the office may deny the requested certification. In the event that tax credits or a portion of tax credits are subject to recapture for ineligible costs and such tax credits have been transferred, assigned and/or allocated, the state will pursue its recapture remedies and rights against the applicant of the theater production tax credits. No redress shall be sought against assignees, sellers, transferees or allocates of such credits.

(n) No credits shall be issued on or after January 1, 2022 unless the production has received initial certification under this section prior to January 1, 2022.

SECTION 113.  Chapter 301 of the acts of 1998, as amended by section 37 of chapter 303 of the acts of 2008, and as further amended by chapter 291 of the acts of 2014, is hereby further amended by striking out, in subsection (c) of section 19, the last sentence and inserting in place thereof the following 5 sentences:-

The preceding three sentences of this section 19(c) shall not apply to any portion of the parkway.  Ownership of any completed portion of the parkway, together with ownership of any associated and completed infrastructure including but not limited to public utilities and sewer and storm drain lines located within or adjacent to said portion, shall be transferred to the applicable town, or to the authority, no later than the later of thirty days following the date on which said portion of the parkway is completed or October 1, 2016, as applicable.  Prior to the date on which any portion of the parkway is completed and until such date that ownership of said portion is transferred in accordance with the provisions of this section 19(c), said portion shall remain subject to the master developer’s control.  On or after the date on which any portion of the parkway is completed and ownership of said portion is transferred in accordance with the provisions of this Section 19(c), any applicable town, or the authority, may enter into a contract with a governmental person, a nonprofit person or a private person for the operation and maintenance of said portion, together with operation and maintenance of associated infrastructure including but not limited to public utilities and sewer and storm drain lines located within or adjacent to said portion.  For purposes of this section 19(c), (i) except for that portion of the parkway constituting “Parkway-Phase 1” as defined in Article I of the Parkway financing MOA, any portion of the parkway shall be deemed completed on the date on which said portion is open and available for public use, and (ii) that portion of the parkway constituting “Parkway-Phase 1” as defined in Article I of the Parkway financing MOA shall be deemed to have been completed no later than August 19, 2013.

SECTION 114.  Section 44 of chapter 303 of the acts of 2008 is hereby amended by inserting, after the figure “$43,000,000,” the following words:- excluding bonds issued to refinance bonds previously issued under this section 44.

SECTION 115. Subsection (c) of section 233 of chapter 165 of the acts of 2014, as amended by section 30 of chapter 119 of the acts of 2015, is hereby amended by striking out in said subsection (c)  “December 31, 2016” and inserting in place thereof “June 30, 2017”.

SECTION 116.  The General Laws, as appearing in the 2014 Official Edition, are hereby amended by adding the following new chapter:-

Chapter 40X. Supplemental Infrastructure Financing for Transportation.

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

“Authority”, the Massachusetts Bay Transportation Authority, and/or a Regional Transit Authority.

“Base date”, the last assessment date of the real property tax immediately preceding the creation of the SIFT district, or any other assessment date designated as the base date in a SIFT agreement.

“Department”, the Massachusetts Department of Transportation.

“Financial plan”, a statement of the costs and sources of revenue required to complete construction of the transportation project, which shall include: (1) cost estimates; (2) the projected amount of indebtedness to be incurred by the municipality, the department and/or the authority; and (3) any other sources of anticipated capital, including but not limited to any federal funding.

“Original assessed value”, the aggregate assessed value of all properties within the SIFT district as of the base date.

“Secretary”, the secretary of the Massachusetts Department of Transportation.

“SIFT agreement”, an agreement entered into by the secretary and a municipality and approved by the municipality in accordance with section 2 authorizing a municipality to collect and remit tax increment revenue in accordance with this chapter and which shall include without limitation: (1) a detailed description of the transportation project to be financed in whole or in part by the SIFT agreement, including a financial plan for such project; (2) the boundaries of the SIFT district, including a depiction of the SIFT district on a map of the municipality and a listing of the street addresses and lot numbers of all lots within the SIFT district; (3) estimates of the amount of tax increment revenue to be remitted during the term of the SIFT agreement; (4) the method of calculating the percentage of the tax increment to be remitted together with any provisions for adjustment of the method of calculation; (5) the board or officer of the city or town responsible for calculating the tax increment; (6) any tax increment pledged or otherwise subject to chapter 40Q or section 59 of chapter 40; (7) a statement of the estimated impact of tax increment financing on all taxing jurisdictions in which the SIFT district is located; (8) the term of years of the SIFT agreement; (9) the base date; (10) the date, if any, following which the SIFT agreement must be re-approved by the city or town in accordance with section 2 if a notice to proceed has not been issued by the department or authority with respect to the transportation project; (11) anticipated or known gifts, grants, or private contributions; and (12) the department and/or authority fund to which the tax increment revenue shall be remitted.

“SIFT district”, a specified area within the corporate limits of a city or town as set forth in the SIFT agreement.

“Tax increment”, all annual increases in the municipality’s limit on total taxes assessed under section 21C(f) of chapter 59 that are attributable to parcels within the district for fiscal years with an assessment date later than the base date. The tax increment shall also include the part of increases in the limit on total taxes assessed allowed under subsection (f) of section 21C of chapter 59 that are attributable to such increases under said subsection in prior years that were part of the increment in such prior years. In any year in which the limit on total taxes assessed under section 21C is lower than the prior year’s limit on total taxes assessed, the tax increment shall be reduced in the same proportion as the limit on total taxes assessed.

“Transportation project”, any construction project, or any component thereof, undertaken by the authority and/or department, including without limitation construction, reconstruction, repair or enhancement of ways or bridges, on- or off-ramps, bikeways or multi-use paths, transit stations, passenger facilities, and rail projects and extensions.

Section 2. (a) The secretary and any municipality may enter into a SIFT agreement; provided, that no municipality may enter into or implement a SIFT agreement unless and until the SIFT agreement has been approved by the municipality in accordance with this section.

(b) Notwithstanding any general or special law or regulation to the contrary, not less than 30 days prior to any vote required under subsection (c), a municipality shall hold a public hearing regarding the SIFT agreement or amendment thereto and shall provide the public with an opportunity to submit written comments. The municipality shall create a written record of the public hearing, which shall include a description of the testimony offered by persons at such hearing. Not less than 14 days prior to the hearing: (i) public notice of the hearing shall be published in one or more local newspapers of general circulation and shall be posted in the municipality’s main governmental building and on the municipality’s web site; and (ii) the SIFT agreement or amendment shall be made available by the municipality for inspection and copying.

(c) Notwithstanding any general or special law or regulation to the contrary, a city or town shall approve the SIFT agreement by vote of its town meeting, town council or city council, with the approval of the mayor where required by law; provided, that the term of years, any provision related to calculation of the tax increment, or the boundaries of a SIFT district may only be amended, following approval by the secretary, after meeting the requirements for adoption under this section.

Section 3. (a) Within 60 days following approval of a SIFT agreement in accordance with section 2, the assessor of the city or town shall certify the original assessed value of the taxable property within the boundaries of the SIFT district. Each year after the approval of a SIFT agreement the assessor of the city or town shall certify the amount by which the assessed value has increased or decreased from the original value.

(b) Following approval of a SIFT agreement in accordance with section 2, the city or town shall set aside and remit all tax increment revenues in accordance with the SIFT agreement.

Section 4. The department shall promulgate rules and regulations necessary to implement this chapter, including, without limitation, rules and regulations establishing criteria for evaluating eligible transportation projects.

Section 117. Section 225 of Chapter 112 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in fourth paragraph, the word “three” and replacing it with the following word:- “two”.

SECTION 118. Said chapter 7 of the General Laws, as so appearing in the 2012 Official Edition, is hereby amended by inserting after Section 23B the following section:-

Section 23B ½ Contracting diversity goals

For the purposes of this chapter, it shall be the official goal of the Commonwealth to achieve minority business enterprise and women business enterprise contracting goals within state procurement that are reflective of the diverse racial, ethnic, and gender make-up of the Commonwealth’s population.

SECTION 119. Section 44A½ of said chapter 149, as so appearing, is hereby amended by inserting after the last paragraph the following paragraphs:-

(d) It shall be the goal of the Commonwealth to achieve minority business enterprise and women business enterprise contracting goals and workforce participation goals on the totality of state-funded design and construction contracts that are reflective of the diverse racial, ethnic, and gender make-up of the Commonwealth’s population.

SECTION 120. Chapter 74 of the General Laws is hereby amended by inserting the following new section:-

Section 57. The board of higher education shall establish and maintain, in cooperation with local public and vocational school authorities, post-secondary technical schools, and the boards of trustees of community colleges, a program to support training and education programs that address the workforce shortages of the advanced automotive and diesel  technician industry in the commonwealth with the goal of training students, creating new jobs, retaining and upgrading existing jobs, and re-training existing workers to implement new technologies and to help meet the workforce and talent pipeline needs of employers, including, but not limited to, a person who has obtained a class 1 license pursuant to sections 58 and 59 of chapter 140 of the General Laws.

There shall be established a grant program to implement the provisions of this section to which employers shall have access for the following purposes:

(1) identify, support, or establish collaborative regional partnerships, including, but not limited to, employers, workforce development and education organizations, regional economic development organizations established under sections 3J and 3K of chapter 23A, and economic development officials in every region of the state where said class 1 licensees and related industries demonstrate demand for automotive and diesel  repair technicians;

(2) address critical workforce shortages in the automotive and diesel  repair industry;

(3) improve and increase employment opportunities in the automotive and diesel  repair industry for low-income individuals, women, and minorities;

(4) provide training and educational or career ladder services for currently employed or unemployed automotive and diesel  repair workers who are seeking new positions or responsibilities within the automotive and diesel  repair industry;

(5) increase support for internship and apprentice training at facilities associated with said class 1 licensees;

(6) boost industry-relevant instructor capacity for high school and postsecondary programs; and

(7) direct support for succession planning, worker retention, and up-skilling strategies for older and incumbent workers.

For the purposes of this grant program, eligible applicants shall include, but not be limited to, employers and employer associations; local workforce investment boards; institutions of higher education; kindergarten through grade 12 and vocational education institutions; private for-profit and non-profit organizations providing education and workforce training, one-stop career centers; local workforce development entities; and any partnership or collaboration between eligible applicants. Any funds allocated through such program shall complement and not replace existing local, state, private, or federal funding for training and educational programs.

A grant proposal submitted pursuant to this section shall include, but not be limited to, the following:

(1) a plan that defines specific goals for advanced automotive and diesel  repair technology workforce training and educational improvements;

(2) the evidence-based programs the applicant shall use to meet the goals;

(3) a budget necessary to implement the plan, including a detailed description of any funding or in-kind contributions the applicant or applicants will be providing in support of the proposal;

(4) any other private funding or private sector participation the applicant anticipates in support of the proposal; and

(5) the proposed number of individuals who would be enrolled, complete training, and be placed into employment in the targeted industries.

The board of higher education shall, in consultation with the executive office of housing and economic development, executive office of labor and workforce development, the department of education, and entities representing parties who are eligible to participate in the grant program, develop guidelines for an annual review of the progress being made by each grantee. Each grantee shall participate in any evaluation or accountability process implemented by or authorized by the commonwealth corporation. The board shall file annual reports for the duration of the programs with the chairs of the house and senate committee on ways and means, the chairs of the joint committee on labor and workforce development, 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 the employment outcomes in the programs.

SECTION 121. Section 6I of chapter 40J of the General Laws is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-

(b) There shall be a MassCAN advisory board to consist of 13 members to be appointed by the governor, including: 1 person recommended by the Massachusetts Competitive Partnership, Inc.; 1 person recommended by the Massachusetts Business Roundtable; 1 person recommended by the Massachusetts Technology Leadership Council, Inc.; 1 person recommended by a federally-funded research corporation; 1 person recommended by the chair of the computer science department of a public university; 1 person recommended by the Massachusetts Association of School Superintendents, Inc.; 1 person recommended by the Greater Boston chapter of the Computer Science Teachers Association; 1 person recommended by the METCO program; 1 person recommended by the Massachusetts Technology Leadership Council Education Foundation; 1 person recommended by The Partnership, Inc.; 1 person recommended by TechNet; 1 person recommended by the Society of Hispanic Professional Engineers; and 1 person recommended by the Massachusetts chapter of the Society of Women Engineers.

SECTION 122. Section 22 (b) of Chapter 237 of the Acts of 2014 is hereby amended by adding the following word after the word Middleton:- “initially” and by adding the following phrase after the words Essex Sports Center, LLC:- “and any of its leasehold mortgagees.”

SECTION 123. Section 22 (c) of Chapter 237 of the Acts of 2014 is hereby amended by striking out the following phrase:- “or if Essex Sports Center, LLC ceases to be the lessee at any time before the expiration of the lease,”

SECTION  124.  Section 3 of said chapter 40R, as so appearing, is amended by inserting after the figure “40A,” in line 9, the following:-

; provided, however, that a smart growth zoning district or starter home zoning district ordinance or by-law shall be adopted, amended or repealed by a simple majority vote of all the members of the town council, or of the city council where there is a commission form of government or a single branch, or of each branch where there are 2 branches, or by a simple majority vote of a town meeting.

SECTION 125. There shall be a special commission to investigate the issue of college affordability.  The commission shall examine and make recommendations on the contributing factors to rising tuition and fee costs at institutes of higher education in the commonwealth. For the purposes of this section, the term “institutes of higher education” shall include public and private institutes of higher education. The commission may hold public hearings.

The commission’s investigation shall include, but not be limited to, the following areas: (i)employee expenditures including, but not limited to, employee issued credit cards and expense accounts;  (ii) vacation and sick time policies for administrative employees; (iii) salaries, bonuses and stipends for administrative employees and professors including, but not limited to, tenured and non-tenured, associate and part-time professors and instructors who are members of collective bargaining units and who are considering joining collective bargaining units; (iv) professor class load;  (v) the number of administrative positions at institutes of higher education and their descriptions; (vi) the cost and benefit of construction projects on campuses of institutes of higher education; (vii) endowments and annual profits of institutes of higher education; (viii) mandatory fees charged to students beyond the price of tuition charges, including technology and laboratory fees; (ix) the affordability of college textbooks including, but not limited to, the costs and benefits of open source textbooks; (x) ways for an institute of higher education to directly credit a student’s account with funds to pay for books and supplies in accordance with 34 C.F.R. 668.164(c)(2);  (xi) the cost differences and composition of online credit hours versus on-campus credit hour; (xii) and other areas the commission deems appropriate to review and investigate.

The commission shall consist of the following members:  four persons appointed by the governor, one of whom shall serve as the chair, one of whom shall have expertise in finance and investment, two of whom shall be parents or guardians of current college students; one member of the senate to be appointed by the senate president; one member of the senate to be appointed by the senate minority leader; one member of the house to be appointed by the speaker; one member of the house to be appointed by the minority leader; a representative of the University of Massachusetts office of the president; a representative of the University of Massachusetts director of libraries;  two members of the Student Advisory Council to the board of education;  a representative from the Massachusetts Office of Financial Assistance; a representative from the Massachusetts Educational Financing Authority;  a representative from the department of higher education; a member of the board of higher education; a representative of the Massachusetts State College Association; a representative of the Massachusetts Community Colleges Executive Office; a representative of Pioneer Institute; a member of the Massachusetts Society of Certified Public Accountants, Inc.; and a member of the Association of Independent Colleges and Universities in Massachusetts, Inc.

SECTION 126. Section 13 of chapter 176J of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by adding the following subsection:

(d) Notwithstanding this chapter or any other general or special law to the contrary, carriers may annually offer group purchasing cooperative members rewards or other incentives for participation in wellness programs sponsored by the cooperative.  The amount of such rewards shall be determined by the carrier in coordination with the provider of the wellness program, based upon the promotion and participation of the cooperative and its members in sponsored wellness programs that include, among other things, health care education and the use of available transparency tools. Any reward established pursuant to this subsection shall be submitted to the commissioner for informational purposes prior to the payment of any such reward. The requirements to qualify for such reward shall be applied equally and consistently to all cooperative members, treating all similarly situated cooperative members that have qualified for the reward in the same manner.

The Commissioner shall study the ability of cooperatives to use other incentives for wellness programs within the restrictions of state and federal rating rules and may also consider the use of an innovation waiver to pursue such flexibility.

SECTION 127.  Chapter 59 of the General Laws is hereby amended by inserting after section 2D the following section:-

2E.  Any charitable organization or educational institution otherwise exempt from the payment of property taxes pursuant to section 5 of chapter 59, or any nonprofit charitable corporation or public charity otherwise exempt from the payment of property taxes, that purchases real property that was subject to taxation under said chapter 59 at the time of the purchase, shall pay property taxes on the assessed value of said property for a period of 4 years after the purchase, the amount of said property taxes paid to be phased out as follows: in the first year, 100 per cent of the property tax; in the second year, 75 per cent of the property tax; in the third year, 50 per cent of the property tax; and in the fourth year, 25 per cent of the property tax.

SECTION 128.  Section 42 of chapter 52 of the acts of 2016 is hereby amended by striking the text in its entirety and inserting the following:-

Section 2A. No person shall sell, offer for sale, manufacture or possess powdered alcohol. Whoever violates this section shall be punished by a fine of not less than $100 or more than $1,000.

This section does not apply to (A) the use of powdered alcohol as an ingredient in non-powdered products or (B) the production of, sale, offering to sell, or delivery, receipt or purchasing for resale, powdered alcohol for the use as an ingredient in non-powdered products.

SECTION 129.  Paragraph (4) of subsection (c) of section 6M of chapter 62 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in line 155, the words “it has utilized at least 95 per cent of the 3 year total of any prior allocation” and inserting in place thereof the following words:- “the department has determined that it has made satisfactory progress toward utilizing any prior allocation”

SECTION 130.  Paragraph (4) of subsection (c) of section 38EE of chapter 63 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in line 141, the words “it has utilized at least 95 per cent of the 3-year total of any prior allocation” and inserting in place thereof the following words:- “the department has determined that it has made satisfactory progress toward utilizing any prior allocation”

SECTION 131.  Chapter 166A of the General Laws, as so appearing, is hereby amended by inserting after section 22 the following section:-

Section 23. All cable television operators shall locate PEG channels on the high definition tier. Cable television operators shall provide PEG channel managers with access to the electronic program guide to ensure that residents can access information about local PEG channels.