Budget Amendment ID: FY2014-S3-233

ECO 233

ELIGIBILITY FOR COOPERATIVE HOUSING CORPORATIONS

Messrs. Tarr and Finegold moved that the proposed new text be amended by inserting, after section __, the following new sections:-

 

“SECTION__. Section 4 of chapter 157B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after the definition of “by-laws” the following definition:-

“Community of interest”, a cooperative corporation or corporation organized as a cooperative under the general laws for the purpose of providing or furnishing residential housing for a communal purpose; provided however, that a statement of communal purpose, in sufficient detail so that a reasonable person may understand such purpose, shall be included in the original articles of organization of such corporation or added to the articles of such corporation as set forth in subsection (g) of section 10 by amendment approved by 60 per cent of the stockholders.

 

SECTION__. Section 10 of said chapter 157B, as so appearing, is hereby amended by striking out subsection (g) and inserting in place thereof the following subsection:-

(g) standards for eligibility to become a stockholder, provided that such standards reasonably relate to: (1) the capacity to satisfy the stockholder’s financial and maintenance obligations with respect to the property; (2) the creation of the housing cooperative as a community of interest, provided however, that a detailed statement of the communal purpose and eligibility standards of the community of interest shall be contained within the articles of organization of the corporation; and/or (3) standards as a provider of affordable housing. Such standards for eligibility shall not be discriminatory under law. Denial of a party seeking to become a stockholder shall be in writing, and denial shall include the grounds for denial and specify which eligibility standards the stockholder applicant failed to meet. This act shall govern cooperative housing arrangements formed under this chapter or otherwise.

 

SECTION__. Within 90 days of the effective date of this act, the state secretary shall send written notice to each corporation organized under chapters 156D or 157B of the requirement for it to file, as applicable, articles of organization that contain the information required in paragraph (2) of subsection (g) of section 10 of chapter 157B of the General Laws.”


Budget Amendment ID: FY2014-S3-234

ECO 234

Veterans Employment Services

Mr. Tarr moved that the proposed new text be amended by inserting after section _ the following new section:-

"SECTION_. The executive office of labor and workforce development, in consultation with the department of veterans’ services, shall conduct an examination of outreach programs and initiatives relative to employment services to veterans in the commonwealth.  Said examination shall include, but not be limited to, an analysis of the number of veterans residing in each Massachusetts community; the number of veterans actively seeking employment services in each community; the number of veterans in each community currently unemployed or under-employed, and the number and geographic location of Local Veteran Employment Representatives assigned to career centers or other employment outreach locations throughout Massachusetts from January 1, 2008 through the present date, including any time when a local veteran employment representative position was left vacant or unfilled pending hiring.  The examination shall include an assessment of staffing levels, funding levels, and the outreach efforts performed by Local Veteran Employment Representatives and any recommendations as to geographic locations that are underserved, underrepresented, or otherwise in need of greater veteran outreach efforts. Said office shall report the results of the examination, together with legislative recommendations, including but not limited to, those necessary to ensure proper veteran access to employment services and any legislative recommendations shall be filed electronically to the clerks of the house of representatives and the senate, the joint committee on labor and workforce development, and the joint committee on veterans affairs on or before October 31, 2013."


Budget Amendment ID: FY2014-S3-235

ECO 235

South Worcester Neighborhood Improvement Corporation

Mr. Michael O. Moore moved that the proposed new text be amended in section 2, in item 7004-0099, by inserting, at the end thereof the following:- “provided further, that not less than $50,000 shall be expended for the South Worcester Neighborhood Improvement Corporation.”


Budget Amendment ID: FY2014-S3-236-R1

Redraft ECO 236

Consumer Price Scanners

Messrs. Michael O. Moore, Rodrigues, Welch and Knapik moved that the proposed new text be amended by inserting after section 71 the following 2 sections:-

"SECTION 71A.  Subsection (b) of section 184D of chapter 94 of the General Laws, as  appearing in section 1 of chapter 138 of the acts of 2012, is hereby amended by striking out the third and fourth sentences and inserting in place thereof the following 3 sentences:-  “Notwithstanding the method for determining the amount of civil fines under section 29A of chapter 98, a civil citation may be issued for $200 for each violation, up to a maximum of $5,000 per inspection, for a food store or a food department utilizing a consumer price scanner system.  Notwithstanding the method for determining the amount of civil fines pursuant to said section 29A of said chapter 98, a civil citation may be issued for $100 per violation, up to a maximum of $2,500 per inspection, for a food store or food department utilizing an individual item pricing system.  For a food store or a food department utilizing a consumer price scanner system, if an item is advertised either in a food store, food department or in a circular as on sale or discounted because of a loyalty card price and the item registers at a higher price at the checkout counter than indicated by a sale or loyalty card price, a civil citation shall be issued for $300 for each violation, up to a maximum of $5,000 per inspection.

SECTION 71B.  Subsection (d) of section 184E of said chapter 94, as so appearing, is hereby amended by striking out the fourth sentence and inserting in place thereof the following 2 sentences:-  A food store or food department with more than 5,000 square feet but less than 20,000 square feet shall have at least 1 fully operational consumer price scanner capable of producing an individual item pricing tag, located at the front of the food store or food department.  A food store or food department with more than 20,000 square feet shall have at least 2 fully operational consumer price scanners capable of producing an individual item pricing tag, with at least 1 located at the front of the food store or food department.”

 

 


Budget Amendment ID: FY2014-S3-237

ECO 237

FAIR MARKET CONTRACTOR PRICING

Mr. Tarr moved that the proposed new text be amended by inserting, after section __, the following new section:-

 

“SECTION _. Subsection (c) of section 19 of chapter 25 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting, in line 50, after the word “implementation” the following:-

Any licensed Massachusetts independent contractor who meets the insurance, training, and certification requirements established by the program shall be able to independently contract with program participants, at a mutually agreed fair-market price, for the installation of program-approved measures, and offer all program incentives, including rebates and financing”.


Budget Amendment ID: FY2014-S3-238

ECO 238

Protecting Small Business Investments

Mr. Joyce moved that the proposed new text be amended by inserting after Section __ the following section:-

 

“SECTION __. (a) The Legislature makes the following findings:

 

(1) Franchise businesses represent a large and growing segment of the Commonwealth’s retail and service businesses and are rapidly replacing more traditional forms of small business ownership in the Massachusetts economy.

 

(2) Franchise businesses involve a joint enterprise between the franchisor and franchisees in which each party has a vested interest and equity in the franchised business.

 

(3) Most prospective franchisees lack bargaining power and generally invest substantial amounts to obtain a franchise business when they may be unfamiliar with operating a business, with the business being franchised and with industry practices in franchising.

 

(4) Many franchises reflect a profound imbalance of contractual power in favor of the franchisor, and fail to give due regard to the legitimate business interests of the franchisee, as a result of the franchisor reserving pervasive contractual rights over the franchise relationship.

 

(5) Franchisees may suffer substantial financial losses if the franchisor does not act in good faith in the performance of the franchise agreement.

 

(6) Traditional common law doctrines have not evolved sufficiently to protect franchisees adequately from fraudulent or unfair practices in the sale and operation of franchise businesses, and significant contractual and procedural restrictions have denied franchisees adequate legal recourse to protect their interests in such businesses.

 

(7) A franchisee’s freedom to contract remains greatly limited by the disparity of bargaining power, lack of consistent legal standards, and other factors described above.  This Act is necessary to restore freedom to contract, to remove restrictive barriers impeding entry into industries and markets dominated by franchise systems, and to protect franchisee investments.

 

(b) The General Laws are hereby amended by inserting after chapter 93I the following chapter:-

 

Chapter 93J.  Regulation of Franchise Agreements.

 

Section 1. Title.

 

This chapter shall be known as the Massachusetts Fair Franchise Act.

 

Section 2. Purposes.

 

(a) This chapter shall be liberally construed and applied to promote its underlying remedial purposes and policies.

 

(b) The underlying purposes and policies of this chapter are:

 

(1) To promote the compelling interest of the public in fair business relations between franchisees and franchisors;

 

(2) To protect franchisees against unfair treatment by franchisors, who inherently have superior economic power and superior bargaining power in the negotiation of the business;

 

(3) To provide franchisees with rights and remedies in addition to those existing by contract or common law;

 

(4) To govern franchise agreements, including any renewals or amendments, to the full extent consistent with the constitutions of the Commonwealth of Massachusetts and the United States.

 

(c) The effect of this chapter may not be varied or waived by contract or agreement. Any contract or agreement purporting to do so is void and unenforceable to that extent only.

 

Section 3. Definitions.

 

For the purposes of chapter, the following words shall have the following meanings:

 

“Franchise” means a contract or agreement, either expressed or implied, whether oral or written, between two or more persons by which: (i) the franchisor will exert or has the authority to exert a significant degree of control over the franchisee’s, method of operation, or provide significant assistance in the franchisee’s method of operation; (ii) the operation of the franchisee’s business pursuant to that plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate; and (iii) as a condition of obtaining or commencing operation of the franchise, the franchisee makes a required payment or commits to make a required payment to the franchisor or its affiliate.

 

“Franchisee” means a person to whom a franchise is granted.

 

“Franchisor” means a person that grants a franchise.

 

“Affiliate” an entity controlled by, controlling, or under common control with, another entity.

 

"Person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust or an unincorporated organization.

 

“Required payment” means all consideration that the franchisee must pay to the franchisor or an affiliate, either by contract or by practical necessity, as a condition of obtaining or commencing operation of the franchise, continuing in, reinstating or renewing the operation of a franchise. A required payment does not include payments for the purchase of reasonable amounts of inventory at bona fide wholesale prices for resale or lease.

 

"Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. As used in this Act, a duty of good faith shall obligate a party to a franchise to do nothing that will have the effect of destroying or injuring the right of the other party to obtain and receive the expected fruits of the contract and to do everything required under the contract to accomplish such purpose; and require honesty of fact and observance of reasonable standards of fair dealing in the trade.

 

Section 4.  Applicability of Chapter.

 

Any person who engages directly or indirectly in purposeful contacts in the Commonwealth in connection with the offering or advertising for sale or has business dealings with respect to franchises in the Commonwealth shall be subject to this chapter and shall be subject to the jurisdiction of the courts of the Commonwealth, upon service of process in accordance with chapter 223A.

 

Section 5. Termination; Good Cause; Notice; Opportunity to Cure.

 

(a) A franchisor shall not, directly or through an officer, agent or employee, terminate or cancel a franchise, or substantially change the competitive circumstances of a franchise agreement except for good cause shown.

 

(b) Good cause shall be based upon legitimate business reason which shall include, but not be limited to, the franchisee’s refusal or failure to comply substantially with any material, reasonable and reasonably necessary express obligation of the franchise agreement, including repeated and intentional nonpayment of royalties or other payments clearly required by the franchise agreement.

 

(c) A default under one franchise agreement shall not in and of itself constitute a default under another franchise agreement to which the franchisee or an affiliate of the franchisee is a party.

 

(d) The franchisor shall bear the burden of proving good cause.

 

(e) Prior to termination or cancellation of the franchise, the franchisor shall give the franchisee written notice at least 90 days in advance of the termination. The notice shall state all of the reasons constituting good cause for termination or cancellation and shall provide that the franchisee has 60 days in which to rectify any claimed discrepancy.

 

(f) The requirement for 90 days advance written notice for termination shall not apply if the reason for termination is because: (1) the alleged grounds are voluntary abandonment by the franchisee of the franchise relationship, in which event, such notice may be given 15 days in advance of the termination or cancellation; or (2) conviction of the franchisee in a court of competent jurisdiction of an offense (a) punishable by a term of imprisonment in excess of 1 year, (b) directly related to the business conduct pursuant to the franchise, (c) which materially impairs the goodwill value of the franchise or the franchised trademark mark, and (d) which is no longer appealable. In that event, such notice may be given at any time following the date on which the conviction is no longer appealable and shall be effective upon delivery and written receipt of the notice. In no event shall any franchisor collect any financial penalty or fee, however delineated, as a consequence of such conviction.

 

(g) If the reason for termination or cancellation is nonpayment of sums due under the franchise agreement, the franchisee shall be entitled to written notice of such default, and shall have ten (10) days in which to cure such default from the date of such notice. A franchisee has the right to cure three (3) times in any twelve (12) month period during the period of the dealership agreement.

(h) If the reason for termination or cancellation is violation of any law, regulation or standard relating to an imminent danger to public health or safety, the franchisee shall be entitled to immediate written notice and shall have twenty-four (24) hours following receipt of such notice to cure such violation.

 

(i) A franchisee may terminate a franchise agreement for good cause shown, without penalty or fees.  Good cause shall include but not be limited to changes to the franchise system or the competitive circumstances of the franchise agreement created or expressly required by franchisor which would cause substantial negative impact or substantial financial hardship to the franchisee in the operation of its franchise.

 

Section 6. Renewal of the Franchise; Notice.

 

(a) A franchisor shall not, directly or through an officer, agent or employee, fail to renew a franchise, except for good cause shown.

 

(b) Renewals shall not be subject to unreasonable fees. Fees shall not be deemed unreasonable if they do not exceed the amount of the average initial franchise fee or other Required Payment then being charged to all franchisees in the market.

 

(c) Good cause shall be based upon legitimate business reason which shall include, but not be limited to, the franchisee’s refusal or failure to comply substantially with any material, reasonable and reasonably necessary express obligation of the franchise agreement, including repeated and intentional nonpayment of royalties, advertising or marketing fees clearly required by the franchise agreement.

 

(d) The franchisor shall act in good faith and shall not refuse to renew a franchise for arbitrary or capricious reasons or for solely the financial gain of the franchisor or any affiliate of the franchisor.

 

(e) Before non-renewal of the franchise, the franchisor shall give the franchisee written notice at least 90 days in advance of the non-renewal. The notice shall state all of the reasons constituting good cause for the non-renewal and shall provide that the franchisee has 60 days in which to rectify any claimed discrepancy and reinstate its right to renew the franchise.

 

Section 7. Unfair Acts and Practices.

 

(a) Unfair methods of competition and unfair or deceptive acts or practices are hereby declared to be unlawful.

 

(b) In construing subsection (a) the courts may be guided by but not bound to the interpretations of the Federal Trade Commission Act, 15 U.S.C. 45.

 

(c) The attorney general may make rules and regulations interpreting subsection (a). The rules and regulations shall not be inconsistent with the rules, regulations and decisions of the Federal Trade Commission and the federal courts interpreting the Federal Trade Commission Act, 15 U.S.C. 45.

 

(d) It shall be an unfair or deceptive act or practice, within the meaning of sections 2 and 11 of chapter 93A of the General Laws to violate any of the provisions of this chapter.

 

(e) A franchisor shall not terminate, cancel or fail to renew a franchise for the failure or refusal of the franchisee to do any of the following:

 

(1) Failure to meet sales quotas suggested or required by the franchisor not expressly set forth  in the franchise agreement.

 

(2) Refusal to keep the franchised premises open and operating during hours which are unprofitable to the franchisee or to preclude the franchisee from establishing its own hours of operation or non-operation between the hours of 10 p.m. and 6 a.m.

 

(3) Refusal to give the franchisor or any supplier financial records of the operation of the franchise which are not directly related or necessary to the performance of franchisee’s express obligations under the franchise agreement

 

(f) A franchisor, directly or indirectly, through any affiliate, officer, agent, or employee shall not do any of the following:

 

(1) Restrict a franchisee from associating with other franchisees or from joining, leading or otherwise participating in a trade or other association, or retaliate against a franchisee for engaging in these activities.

 

(2) Require or prohibit any change in management of any franchise unless the requirement or prohibition of the change shall be for good cause, which cause shall be stated in writing by the franchisor and be based on violations of material, reasonable and reasonably required express provisions of the franchise agreement. Good cause shall include, but be limited to, requiring that management of the franchise be conducted by personnel who have been trained in the manner required of all franchise managers in the system or are legally eligible for employment in the United States of America.

 

(3) Impose on a franchise by contract, manual, policy, rule or regulation, whether written or oral, a standard of conduct or performance where the franchisor, its agents or representatives, cannot sustain the burden of proving the standard to be reasonable and necessary and uniformly enforced and applied throughout its system of similarly situated franchisees, franchisor-owned units and licensees in substantially the same manner. Notwithstanding the foregoing, it shall not be a violation of this chapter for a franchisor to provide forbearance to any franchisee as a means of assistance to the franchisee in performing its obligations under the franchise agreement or in operating its franchise in exigent circumstances.

 

(4) Fail to deal fairly and in good faith or fail to exercise due care with a franchisee or any association or other aggregation or incorporation of franchisees in all matters, including, without limitation, transfer of the franchise, administration of advertising funds, rewards programs, marketing funds and the interpretation, administration and performance of franchise and area development or territory agreements.

 

(5) Sell, rent or offer to sell to a franchisee any product or service for more than a fair and reasonable price or without the reasonable expectation that the sale or rental of the same will promote the profitability of the franchisee’s business.

 

(6) Discriminate between franchises in the charges offered or made for royalties, goods, services, equipment, rentals, advertising services, or in any other business dealing, unless (A) that discrimination between franchisees would be necessary to allow a particular franchisee to fairly meet competition in the open market,  (B) does not adversely affect the business of any existing franchisee, and (C) to the extent that the franchisor satisfies the burden of proving that any classification of or discrimination between franchisees is reasonable, is based on franchises granted at materially different times and the discrimination is reasonably related to the difference in time or on other proper and justifiable distinctions, and is not arbitrary or intended to be for the benefit of the franchisor at the expense of any franchisee. Nothing in this subsection shall be construed as granting to a franchisor any right which may be limited by any other state or federal statute.

 

(7) Notify the franchisee of a claimed breach of franchise agreement for good cause later than 180 days from the date good cause arises or 180 days after the franchisor knew or in the exercise of reasonable care should have known of the claimed good cause.

 

(8) Require a franchisee to sell any product or service for a price at a loss or otherwise not reasonably acceptable to the franchisee in the franchisee’s good faith discretion.

 

(9) Fail to make readily available to franchisees, without charge, true, accurate and complete copies of all records of marketing, rewards programs, advertising funds and fees that have been paid by franchisees, vendors, suppliers and licensees.

 

(10) Coerce a franchisee to assent to a release, assignment, novation, waiver or estoppel which would prospectively relieve any person from liability imposed by this chapter.

 

(11) Require or demand that a franchisee pay liquidated or other post termination damages in excess of the average monthly royalty fees paid by the franchisee during the prior 12 full calendar months (or the shorter time that the franchised location has been in the system), multiplied by the lesser of six (6) months or the number of months remaining in the term of the franchise agreement.

 

(12) Act to accomplish, either directly or indirectly through any affiliate or agent, what would otherwise be prohibited under this chapter on the part of the franchisor or an affiliate of franchisor.

 

(13) Require or demand that a franchisee pay the legal fees and related expenses of the franchisor or any affiliate of the franchisor in any dispute or proceeding, whether by contract or otherwise, unless the Franchisor is the prevailing party.  All such provisions in violation of this clause are deemed void.

 

Section  8. Transfer of the Franchise.

(a) It shall be a violation of this chapter for any franchisee to transfer, assign or sell a franchise or interest therein to another person unless the franchisee shall first notify the franchisor of such intention by written notice setting forth in the notice of intent the prospective transferee’s name, address, statement of financial qualification and business experience during the previous 5 years.

 

(b) The franchisor shall within 30 days after receipt of such notice either approve in writing to the franchisee such sale to proposed transferee or by written notice advise the franchisee of the unacceptability of the proposed transferee setting forth material reasons relating to the character, financial ability or business experience of the proposed transferee.  If the franchisor does not reply within the specified 30 days, its approval is deemed granted.

 

(c) No such transfer, assignment or sale hereunder shall be valid unless the transferee agrees in writing to comply with all the requirements of the franchise then in effect. Any fee imposed by the franchisor as a condition of such transfer shall be limited to the franchisor’s reasonable out-of-pocket expenses incurred in reviewing and approving such transfer.

 

(d) It shall be a violation of this chapter for any franchisor to prohibit or interfere with:

 

(1) The transfer of a franchise and the rights of franchisee to a qualified purchaser, including, but not limited to family members or business partners, nor shall a franchisor impose unreasonable stipulations or penalties regarding such transfer

 

(2) The transfer by will, or other lawful probate or similar procedure of any franchise and the rights of any franchisee.

 

Section 9. Effect of Termination.

 

(a) Upon termination of a franchise for whatever cause or reason, except voluntary relinquishment or abandonment of the franchise by the franchisee or the expiration of the franchise agreement where the franchisee does not elect to renew, the franchisor shall fairly compensate the franchisee or franchisee’s estate for the fair market value at the time of termination of the franchise, of the franchisees inventory, supplies, equipment and furnishings purchased by the franchisee from the franchisor or its approved sources and the fair market value of good will, if any, exclusive of personalized items which have no value to the franchisor and inventory, supplies, equipment and furnishings not reasonably required in the conduct of the franchise business; provided, however,  that

 

(1) Compensation need not be made to franchisee of good will if the franchisor agrees in writing not to enforce a covenant which restrains the franchisee from competing with the franchisor in the same or substantially similar business in the same or substantially similar manner at the same location using the same property except the franchisor’s registered trademark or trade name; and

 

(2) A franchisor may offset against amounts owed to a franchisee under this subsection any amount mutual agreed upon and owed by the franchisee to franchisor which is not the subject of a good faith dispute by the franchisee.

 

(b) The provisions of this section shall not be construed to permit the termination or nonrenewal of any franchise agreement except in accordance with the express terms of the franchise agreement and this chapter.

 

Section 10. Good Faith and Fair Dealing; Duty of Due Care.

(a) All franchisors owe a duty of good faith and fair dealing to each of its franchisees. A franchise agreement imposes on the franchisor a duty of due care.  Unless a franchisor represents that it has great skill or knowledge in its undertaking with the franchisees, or conspicuously disclaims that it has skill or knowledge, the franchisor is required to exercise the skill and knowledge normally possessed by franchisors in good standing in the same or similar types of business.

 

(b) For purposes of this subsection , term “skill or knowledge” means something more than the mere minimum level of skill or knowledge required of any person engaging in a service or business and involves a special level of expertise –

 

(1) which is the result of acquired learning and aptitude developed by special training and experience in the business to be licensed under the franchise agreement, or the result of extensive use and experience with the goods or services or the operating system of such business;

 

(2) which is the experience in organizing a franchise system and in providing training, assistance and services to franchisees; and which a prospective franchisee would expect in reasonable reliance on the written and oral commitments and representations of the franchisor.

 

Section 11.  Warranties; Indemnification.

 

(a) A franchisor shall indemnify and save harmless its franchisee from financial loss and expense, including legal fees and costs, arising out of any claim, demand, suit or judgment by reason of a defect in merchandise, methods or procedures prescribed by franchisor and required to be performed by the franchisee, except for the negligent act or willful misconduct of the franchisee which causes said loss or expense.

 

(b) No franchisee, franchisee association or cooperative of franchisees shall be liable for the negligence or misconduct of any supplier or distributer of products or services prescribed by the franchisor, or for the failure of any product or service prescribed by the franchisor which are not fit for the particular purpose for which they were prescribed or any purpose related thereto, and any contractual provisions to the contrary shall be void as against public policy.

 

(c) A franchisor shall reimburse its franchisee at the prevailing retail price for any services rendered or products or parts supplied by the franchisee in satisfaction of any warranty issued by the franchisor or any warranty issued by the franchisee which is mandated by the franchisor, and, and a franchisor shall not restrict a franchisee from rendering services or providing parts in accordance with standards of good workmanship in satisfaction of the warranty.

 

Section 12. Enforcement.

 

(a) If any franchisor violates any provision of this chapter, a franchisee may bring an action against such franchisor in any court of competent jurisdiction of the Commonwealth for damages sustained by the franchisee as a consequence of the franchisor’s violation, together with the actual costs of the action, including reasonable actual attorneys’ fees, and the franchisee also may be granted injunctive relief against unlawful termination, cancellation, or nonrenewal.

 

(b) Notwithstanding any term or provision of a franchise agreement to the contrary: (1) the laws of the commonwealth shall govern the interpretation of the franchise agreement of a franchise located in the commonwealth and the performance of the parties thereunder, and (2) the courts of the commonwealth and the federal courts with jurisdiction over cases filed in the district of Massachusetts shall have exclusive jurisdiction with respect to any action brought under this chapter or any action brought by a franchisor concerning a franchise located in the commonwealth.

 

(c) Upon the written request of a franchisor or a franchisee, the attorney general may enforce compliance with this chapter in accordance with section 4 of chapter 93A.

 

 

Section 13. Void Provisions; Arbitration; Mediation; Class Action.

 

(a) A clause or provision in a franchise agreement requiring the parties to submit to arbitration shall be enforceable only if the parties have voluntarily entered into an agreement after the dispute arises to submit to arbitration and the proceeding is conducted at a location within the Commonwealth reasonably convenient to the franchisee; provided, however, that the provisions of this subsection shall not prohibit the enforceability of a clause or provision in a franchise agreement which requires the parties to submit to non-binding mediation conducted at a location within the Commonwealth reasonably convenient to the franchisee.

 

(b) No provision in a franchise agreement shall deprive the franchisee from participating as member of a class or in a consolidated action permitted under Rules 23 and 19, respectively, of the Massachusetts and Federal Rules of Civil Procedure.

 

Section 14. Time Limitations; Cause of action.

 

(a) Actions arising out of this chapter shall be commenced within 4 years next after the cause of action accrues; but if a person liable hereunder fraudulently conceals the cause of action from the knowledge of the person entitled to bring it, the period prior to the discovery of its cause of action by the person so entitled shall be excluded in determining the time limit for the commencement of the action. Any provision in a franchise agreement, which requires any party to a franchise agreement to commence an action within any shorter period than as provided in this section, shall be void as against public policy.

 

(b) If a cause of action accrues during the pendency of any civil, criminal or administrative proceeding against a person brought by the United States or any of its agencies under the anti-trust laws, the Federal Trade Commission Act, or any other federal act, or brought by the Commonwealth or any of its political subdivisions under the laws of the Commonwealth related to anti-trust laws or to franchising, the actions may be commenced within 1 year after the final disposition of the civil, criminal or administrative proceeding.

 

Section 15. Severability.

 

If any provision or clause of this section or any application of this section to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the section which can be given effect without the invalid provision or application, and to this end the provisions of this section are declared to be severable.”


Budget Amendment ID: FY2014-S3-239

ECO 239

Increased transparency at mutual banks, co-operative banks and credit unions

Mr. Joyce and Ms. Chang-Diaz moved that the proposed new text be amended by inserting, after section __, the following new section:-

 

“SECTION __. Chapter 167 of the General Laws is hereby amended by inserting after section 13 the following section:-

 

Section 13A. (a) A mutual bank, co-operative bank or credit union shall provide clear, concise and understandable disclosure of all compensation awarded to, earned by or paid to the named executive officers or directors designated in subsection (b).  A mutual bank, co-operative bank or credit union shall conspicuously publish disclosure in a format readily accessible to members.

 

(b) For the purposes of this section, a “named executive officer or director” shall mean:

 

(i) a person serving as a company’s principal chief executive officer or acting in a similar capacity during the last completed fiscal year, the “CEO”, regardless of compensation level;

 

(ii) a person serving as a company’s principal or chief financial officer or acting in a similar capacity during the last completed fiscal year, the “CFO”, regardless of compensation level;

 

(iii) a company’s 3 most highly compensated executive officers other than the CEO and CFO who were serving as executive officers at the end of the last completed fiscal year;

 

(iv) up to 2 additional persons for whom disclosure would have been provided pursuant to clause (iii), but for the fact that the individual did not serve as an executive officer of the company at the end of the last completed fiscal year; and

 

(v) a company’s directors.

 

(c) The commissioner of banks shall further promulgate regulations with the express purpose of requiring a mutual bank, co-operative bank or credit union to provide full and accurate disclosure of:

 

(i) all compensation to the named executive officers or directors, whether paid or accrued; and

 

(ii) all conflicts of interest, whether direct or indirect.”


Budget Amendment ID: FY2014-S3-240

ECO 240

Emergency Assistance Shelter Providers

Messrs. Petruccelli, DiDomenico, Donnelly and Wolf moved that the proposed new text be amended in section 2, in item 7004-0101, by adding at the end thereof the following: “provided, further, that not more than $90,406,700, less the cost of associated interdepartmental service agreements or programmatic costs, shall be expended to establish a single contract per service provider, which shall include all contracted and supportive program expenses, for the entirety of fiscal year 2014.” 


Budget Amendment ID: FY2014-S3-241

ECO 241

Homes for Families Technical Assitance

Mr. Petruccelli moved that the proposed new text be amended in section 2, in item 7004-0101, by inserting at the end the following:-

“provided further, that funds shall be expended for the purpose of technical assistance by Homes for Families.”


Budget Amendment ID: FY2014-S3-242

ECO 242

INDEPENDENT CONTRACTOR COMMISSION

Messrs. Tarr, Knapik and Ross moved that the proposed new text be amended by inserting, after section __, the following new section:-

 

“SECTION__.   Section 91 of chapter 238 of the acts of 2012, as amended by section 19 of chapter 3 of the acts of 2013, is hereby further amended by adding the following sentence:-

The commission shall convene its initial meeting not later than July 2, 2013.”


Budget Amendment ID: FY2014-S3-243

ECO 243

Holbrook Facility

Mr. Keenan moved that the proposed new text be amended in section 2, in item 7004-0099, by adding at the end thereof the following: "and provided further, that the town of Holbrook shall receive not less than the amount appropriated in Chapter 139 of the Acts of 2012 for a one-time community action grant"


Budget Amendment ID: FY2014-S3-244

ECO 244

Gardner Street Noise Abatement

Mr. Keenan moved that the proposed new text be amended in section 2, in item 7002-0021, by adding at the end thereof  the following: "provided further, that not less than seven hundred and thirty thousand dollars shall be expended for the purpose of installing sound barriers along the southbound side of Route 3 between Gardner Street and Route 3 in the town of Rockland".


Budget Amendment ID: FY2014-S3-245

ECO 245

Rockland Salt Shed

Mr. Keenan moved that the proposed new text be amended in section 2, in item 7002-0021, by adding at the end thereof  the following: "provided further, that not less than one hundred thousand dollars shall be expended for the installation of a salt shed on Market Street in the town of Rockland".


Budget Amendment ID: FY2014-S3-246

ECO 246

Subsidies to Public Housing Authorities

Messrs. Donnelly, Eldridge, Ross and Finegold and Ms. O'Connor Ives and Messrs. Keenan, Michael O. Moore and Rodrigues moved that the proposed new text be amended in section 2, in item 7004-9005, by striking the figure “$62,400,000” and replacing it with the following figure:- “$64,500,000”.


Budget Amendment ID: FY2014-S3-247-R2

2nd Redraft ECO 247

Family Homelessness Prevention

Messrs. Donnelly and Wolf and Ms. Lovely and Mr. Rosenberg and Ms. Clark moved that the proposed new text be amended in section 2, in item 7004-9316, by inserting after the word “ services;”, in line 10, the following words:- "provided further, that, effective July 1, 2013, the department of housing and community development shall promptly refer to providers of such temporary accommodations funded by this item, those families who provide credible statements or other credible evidence that they are within 24 hours of staying in a place unfit for human habitation, who appear to have income that does not exceed 150 per cent of the federal poverty level and who are not eligible for emergency shelter services from the department; provided further, that said providers shall be available to receive and act on such referrals until at least 5 o’clock each day Monday through Friday, not including state and federal holidays; provided further, that nothing in this item shall relieve the department of its obligations under item 7004-0101, including the duty immediately to place families in emergency shelter if they appear to be eligible but need more time to collect verifications; provided further, that the department shall report monthly to the house and senate committees on ways and means, the house and senate clerks and the joint committee on housing detailing: (i) the number of families receiving temporary accommodations under this item; (ii) the average length of stay in temporary accommodations; and (iii) the total amount expended on temporary accommodations to date;";

and further by inserting after the figure "$4,000," in both places that it appears, the following word:- "not".


Budget Amendment ID: FY2014-S3-248

ECO 248

Child Safety Grants

Mr. Ross moved that the proposed new text be amended in section 2, in item 7008-0900, by inserting after the words "within the commonwealth" the following words:- "; provided further, that no less than $75,000 shall be expended for a child safety grant in the town of North Attleboro".


Budget Amendment ID: FY2014-S3-249

ECO 249

Micro Entrprise Funds

Messrs. Pacheco, Knapik and Rodrigues moved that the proposed new text be amended in section 2, in item XXXX-XXXX, "For microlending grants of up to $100,000 to be issued to established Community Development Financial Institutions and Community Advantage Lenders making direct microenterprise and small business loans to borrowers on a regional basis, as well as providing technical assistance to applicants and borrowers in order to foster business establishment and success, provided that the funds will be used to support the eligible organization’s lending and technical assistance activities ………………… $200,000"


Budget Amendment ID: FY2014-S3-250

ECO 250

Wareham Anniversary Celebrations

Mr. Pacheco moved that the proposed new text be amended in section 2, in item 7008-0900, by inserting at the end there of the following new text:- “provided further, that not less than $25,000 shall be provided to the Wareham Summer of Celebration Organization, Inc., for the town’s celebration of Wareham’s 200th Anniversary of the attack on Wareham harbor by the British sloop HMS Nimrod and the 275th Anniversary of the Incorporation of the Town.”


Budget Amendment ID: FY2014-S3-251-R1

Redraft ECO 251

Health Insurance Responsibility Disclosure Forms

Mr. Michael O. Moore moved that the proposed new text be amended by inserting after section 92 the following section:-

“SECTION 92A.   Section 17 of chapter 176Q of the General Laws, inserted by section 215 of chapter 224 of the acts of 2012, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-

(b) Employers with 11 or more full-time equivalent employees shall be required to notify all employees, in a manner and form prescribed by the connector, of the employer’s compliance with subsection (a) and the opportunity for eligible employees to enroll in the employer’s sponsored health insurance plan or the employer’s chapter 151F-compliant cafeteria plan.”.

 

 


Budget Amendment ID: FY2014-S3-252

ECO 252

JAM Plan

Ms. Donoghue moved that the proposed new text be amended in section 2, in item 7007-0150, by adding at the end thereof the following:-

“; provided that $500,000 be expended on the Jackson-Appleton-Middlesex Urban and Revitalization Development Project”; and in said item, by striking out the figure “$850,000” and inserting in place thereof the figure “$1,350,000”


Budget Amendment ID: FY2014-S3-253

ECO 253

Regional Tourist Councils

Ms. Donoghue, Ms. Lovely and Ms. O'Connor Ives and Messrs. Knapik, Downing and Eldridge moved that the proposed new text be amended in section 2, in item 7008-1000, by striking out the figure “$6,000,000” and inserting in place thereof the following figure:- “$7,500,000”.


Budget Amendment ID: FY2014-S3-254

ECO 254

Cultural District Eligibility for the MassWorks Infrastructure Program

Ms. Donoghue and Messrs. Tarr, Knapik, Eldridge and McGee moved that the proposed new text be amended in section 30, , by inserting after the word “instrumentalities” the following words:- ", including, but not limited to, instrumentalities acting on behalf of state-designated cultural districts, as established by section 58A of chapter 10 of the General Laws,”


Budget Amendment ID: FY2014-S3-255

ECO 255

Friendly House

Ms. Chandler and Mr. Moore moved that the proposed new text be amended in section 2, in item 7004-0102, by adding at the end thereof the following: "provided that $40,000 be expended for support staff members in the Basic Needs Program at the Friendly House in Worcester."


Budget Amendment ID: FY2014-S3-256-R1

Redraft ECO 256

Massachusetts Manufacturing Extension Partnership

Mr. Michael O. Moore and Ms. Spilka and Ms. Chandler and Mr. Rush and Ms. Flanagan moved that the proposed new text be amended in section 2, in item 7003-0605, by striking out the figure “500,000” and inserting in place thereof the following figure:- “$1,000,000”


Budget Amendment ID: FY2014-S3-257

ECO 257

Construction and Disposition of Certain Public Housing Units

Mr. Petruccelli moved that the proposed new text be amended in section 84, by striking, in section 84, line 1156, the words “the units were vacant as of November 1, 2012” and inserting in place thereof: --

“the department has received written confirmation from the housing authority that those units are obsolete and inappropriate to house low income families serviced by the housing authority” ;

And, further amend the bill by inserting, in said section, line 1174, after the words “shall be”, the following:--

“used by the housing authority to fund capital improvements the housing authority determines are necessary and appropriate at existing  state funded housing developments that serve households that would have been eligible for occupancy of the units that had been sited on the property, and if such use by the housing authority is impracticable, then such proceeds shall be”


Budget Amendment ID: FY2014-S3-259

ECO 259

Unemployment Insurance Commission

Messrs. Knapik, Tarr and Ross moved that the proposed new text be amended by inserting, after section 144, the following new section:-

“SECTION XX. There shall be a special commission to conduct an investigation and study of the activities and efficacy of the adjudication of unemployment insurance claims by the department of unemployment assistance under the executive office of labor and workforce development. The commission shall consist of 11 members: 2 of whom shall be appointed by the state auditor, both of whom shall have experience with the adjudication of unemployment disputes, and 1 of whom shall serve as chair; 2 of whom shall be members of the senate, 1 of whom shall be appointed by the minority leader; 2 of whom shall be members of the house of representatives, 1 of whom shall be appointed by the minority leader; the director of the department of unemployment assistance, or a designee; the president of the Massachusetts taxpayer’s foundation, or a designee; the executive vice-president of the AFL-CIO, or a designee; the executive vice-president of Associated Industries of Massachusetts, or a designee; and the executive director of the Massachusetts Municipal Association, or a designee.

The study shall include, but not be limited to, an analysis of: (1) the number of claims received by the department quarterly since January 1, 2008 and the resulting status of all claims, including any information pertinent to the description of the status of said claims, including, but not limited to (i) the results of all initial determinations of claims, (ii) the results of any appeals resulting from said initial determination, (iii) the number of rulings reversed through the appeals and review process, (iv) the number of claims arising from paragraphs (1) and (2) of subsection (e) of section 25 of chapter 151A of the General Laws, and (v) the number of claims settled in favor of the claimant and in favor of the employer; (2) the average length of time of the appeals and review process of a claim from initial determination to final disposition; (3) the procedures through which the department hires and trains new employees to implement sections 39 to 41, inclusive, of said chapter 151A, including a determination as to whether or not employment procedures have been followed under section 9K of chapter 23 of the General Laws.

The study shall also include recommendations relative to: (1) procedures through which the department may produce a quarterly report, to be posted on the department’s website, of the number of active claims and the status of said claims; (2) procedures through which any current backlog of cases may be fairly and efficiently resolved and avoided in future department proceedings; (3) procedures through which oversight and quality control principles may be implemented to ensure the continuing prompt, equitable and transparent application of current law by the commissioner and the board of review; (4) a complete review of current statute and regulations relative to the implementation of said chapter 151A and any recommendations as to possible legislative reform and streamlined procedures, including, but not limited to, recommendations and procedures for the uniform and effective implementation of said section 25 of said chapter 151A.

The commission may request from all state agencies such information and assistance as the commission may require. The commission shall report the results of its investigation and study, together with drafts of legislation, if any, necessary to carry its recommendations into effect, by filing the report with the clerks of the senate and house of representatives, who shall forward the report to the joint committee on public health and the house and senate committees on ways and means not later than July 1, 2014.”


Budget Amendment ID: FY2014-S3-260

ECO 260

Zamir Chorale of Boston

Ms. Creem and Mr. Rosenberg moved that the proposed new text be amended in section 2, in item 7008-0900, by adding at the end thereof the following:-

 

"; and provided further, that $20,000 be expended for the Zamir Chorale of Boston's musical and educational organization";

 

and in said item, by striking out the figure "$5,924,728" and inserting in place thereof the following figure:- "$5,944,728"


Budget Amendment ID: FY2014-S3-261

ECO 261

DHCD SHELTERS CONTRACTS

Mr. Tarr moved that the proposed new text be amended by inserting, after section ___, the following new section:-

“SECTION__. For fiscal year 2014, the department of housing and community development shall issue the initial contacts for family shelter services for a time period not less than six months; provided, however, that should the department not have in place the necessary funding for said contracts at the start of the fiscal year, the department shall enter into contracts for not less than three months, and shall report to the house and senate committees on ways and means and the joint committee on housing within 30 days of the passage of this act the projected need for funding for the issuance of long-term contracts for the provision of shelter services.  The department shall, in consultation with the executive office for administration and finance and the comptroller, develop a plan for fiscal years 2014 through 2019, inclusive, to minimize, to the maximum extent possible, the utilization of contracts for a duration of less than six months, and to maximize the utilization of contracts for twelve months whenever possible.  The department shall develop any legislative recommendations necessary to the achievement of the provisions of this section, and file said recommendations with the clerks of the senate and the house of representatives not later than nine months following the passage of this act.”


Budget Amendment ID: FY2014-S3-262

ECO 262

Individual Development Account Program

Mr. Eldridge moved that the proposed new text be amended in section 2, in item XXXX-XXXX, by inserting after item 7004-9316 the following item:-

XXXX-XXXX  For the Individual Development Account, or IDA, program; provided, that participants for the purposes of this pilot program shall be any individual or family who is at or below 80 per cent of the area median income, as defined by the United States Department of Housing and Urban Development, in the community in which they live, as defined by said department, for more than 3 years; provided further, that funds shall be awarded to community-based organizations to establish local IDA programs; provided further, that funds may be used for administrative costs to operate an IDA program for financial literacy and asset-specific training and as a match for program participant savings for qualified acquisition costs with respect to a qualified principal residence for a qualified first-time homebuyer, as defined by said department; provided further, that said department may determine other qualified match uses consistent with the guidelines established in federal IDA guidelines pursuant to Public Law 105-285, 42 USC 604; and provided further, that funds may be used to secure federal asset building program funds……………$250,000


Budget Amendment ID: FY2014-S3-263-R1

Redraft ECO 263

Latino Chamber of Commerce

Mr. Welch moved that the proposed new text be amended in section 2, in item 7003-1206, <w:p><w:r><w:t xml:space="preserve">by inserting at the end thereof the following:-

“; provided that no less than $75,000 shall be expended for the Massachusetts Latino Chamber of Commerce;” and in said item 7003-1206 by striking out the figure “$600,000” and inserting in place thereof the following figure:- “$675,000”


Budget Amendment ID: FY2014-S3-264

ECO 264

Springfield Partners for Community Action

Mr. Welch and Ms. Candaras moved that the proposed new text be amended in section 2, in item 7003-1206, by adding at the end thereof the following:-

"; provided further that not less than $100,000 shall be expended for Springfield Partners for Community Action and in said item 7003-1206 by striking out the figure “$600,000” and inserting in place thereof the following figure:- “$700,000”


Budget Amendment ID: FY2014-S3-265

ECO 265

New England Farm Workers’ Council

Messrs. Welch and Knapik and Ms. Candaras moved that the proposed new text be amended in section 2, in item 7003-1206, by inserting at the end thereof the following:-

 

"; provided that not less than $250,000 shall be expended for the New England Farm Workers’ Council and in said item 7003-1206 by striking out the figure “$600,000” and inserting in place thereof the following figure:- “$850,000”


Budget Amendment ID: FY2014-S3-266

ECO 266

Springfield Bilingual Veteran Outreach Center

Mr. Welch and Ms. Candaras moved that the proposed new text be amended in section 2, in item 1410-0250, by inserting at the end thereof the following:-

“; provided that no less than $51,975 shall be expended for the 247 Pine Street Homeless Services Program, formerly known as Springfield Bilingual Veteran Outreach Center for the operation of a Transitional Housing Unit, and, that no less than $75,000 shall be expended for Transition House in Springfield”


Budget Amendment ID: FY2014-S3-267-R2

2nd Redraft ECO 267

Layoff Aversion Program

Ms. Spilka and Messrs. Rosenberg and Rodrigues and Ms. Clark and Mr. DiDomenico and Ms. Candaras and Ms. Donoghue and Mr. Eldridge moved that the proposed new text be amended in section 2, <w:p><w:r><w:t xml:space="preserve">by inserting after item 7007-0952 the following item:-

“7007-1641 For a grant for the Small Business Association of New England for the layoff aversion through management assistance program for consultant and technical assistance to manufacturing companies to prevent business closure and employee displacement; provided, that the expenditure of the layoff aversion through management program in this item shall leverage at least $1 in matching funds for every $1 granted pursuant to this item; provided further, that the president of the Small Business Association of New England shall file a quarterly report with the house and senate committees on ways and means, the joint committee on economic development and emerging technologies and the joint committee on labor and workforce development on the number of employees and manufacturing-based companies that have received financial assistance through this item, a detailed description of the services provided to manufacturing companies through the layoff aversion through management program and a detailed account of the expenditures of the layoff aversion through management program, including administrative costs ...... $250,000

Manufacturing Fund……………….100%”;


Budget Amendment ID: FY2014-S3-268-R1

Redraft ECO 268

Special commission to study the economic impact of the illegal tobacco market

Messrs. Welch, Finegold and Knapik moved that the proposed new text be amended by inserting after section 139, the following new section:-

“SECTION 139A. There shall be a special commission to study the economic impact of the illegal tobacco market in the commonwealth which shall consist of: the commissioner of revenue or a designee, who shall serve as chair; the state treasurer or a designee; 1 member of the house of representatives; 1 member of the senate; the secretary of administration and finance or a designee; the attorney general or a designee; the executive director of the Northeast Association of Wholesale Distributors or a designee; the executive director of the New England Convenience Store Association or a designee; and 1 person to be appointed by the governor.

The commission shall study and report on the illegal tobacco distribution industry in the commonwealth and the resulting loss of tax revenue which shall include, but not be limited to investigating, reporting and making recommendations relative to: (1) the regulation, oversight, distribution and sale of all tobacco products sold in the commonwealth; (2) the illegal tobacco market in the commonwealth; (3) the loss of tobacco excise and sales tax revenues in the commonwealth as a result of the illegal tobacco market; (4) methods to maximize the collection of tobacco excise and sales tax revenues being lost to the illegal market; and (5) enforcement and penalties for violations of laws relative to the collection and reporting of all tobacco taxes under chapter 64C of the General Laws.

The commission shall convene not later than November 1, 2013.  The commission shall prepare a report detailing its findings and recommendations, together with drafts of legislation necessary to carry those recommendations into effect, by filing the same with the clerks of the senate and house of representatives, the chairs of the house and senate committees on ways and means and the senate and house chairs of the joint committee on revenue not later than March 1, 2014.”


Budget Amendment ID: FY2014-S3-269

ECO 269

OCEAN EXPLORIUM

Mr. Montigny moved that the proposed new text be amended in section 2, in item 7008-0900, in section 2, in line item 7008-0900, by adding at the end thereof the following:

“provided further, that not less than $100,000 shall be expended for the Ocean Explorium in New Bedford.”


Budget Amendment ID: FY2014-S3-270

ECO 270

One-Stop Career Centers

Ms. Spilka and Messrs. Donnelly, Wolf, Downing, Kennedy, Finegold, DiDomenico and Knapik and Ms. Donoghue and Messrs. Keenan, Eldridge, Brownsberger and Michael O. Moore and Ms. Clark and Mr. McGee moved that the proposed new text be amended in section 2, in item 7003-0803, by striking out the figure “$4,494,467” and inserting in place thereof the following figure:- “$6,000,000”.


Budget Amendment ID: FY2014-S3-271

ECO 271

MASSWORKS

Ms. Lovely and Ms. Donoghue and Mr. Michael O. Moore moved that the proposed new text be amended in section 2, in item 7002-0021, by striking out the figure “$19,250,000" and inserting in place thereof the following figure:- “$20,250,000“.


Budget Amendment ID: FY2014-S3-272-R1

Redraft ECO 272

ZEITERION THEATER

Mr. Montigny moved that the proposed new text be amended in section 2, in item 7008-0900, , in section 2, in line item 7008-0900, by adding at the end thereof the following:-“provided further, that not less than $200,000 shall be expended for the Zeiterion Performing Arts Center in New Bedford”; and by striking the figure "$5,924,728" and inserting in place thereof the following:- "$6,124,728"


Budget Amendment ID: FY2014-S3-273

ECO 273

NORTH SHORE INNOVENTURES BIOTECH INCUBATOR

Ms. Lovely moved that the proposed new text be amended in section 2, in item 7002-0022, by adding at the end thereof the following: “provided further that $250,000 be expended for North Shore InnoVentures in the City of Beverly to support the development of early stage biotech and clean tech businesses”; and in said item, by striking out the figures “$15,000,000“and inserting in place thereof the following figure: “$15,250,000“.


Budget Amendment ID: FY2014-S3-274

ECO 274

RIVER HOUSE SHELTER

Ms. Lovely moved that the proposed new text be amended in section 2, in item 7004-0102, by adding at the end thereof the following:- “provided further that $200,000 be expended for the River House shelter in the City of Beverly”.


Budget Amendment ID: FY2014-S3-276-R2

2nd Redraft ECO 276

Poverty Reduction Commission

Ms. Spilka and Mr. Donnelly and Ms. Lovely moved that the proposed new text be amended in section 2, <w:p><w:r><w:t xml:space="preserve">by inserting, after section __, the following new section:-

 

“SECTION____. There shall be a standing commission to investigate and study how poverty in the commonwealth can be reduced by 10 per cent in the next 5 years and 20 per cent in the next 10 years by engaging the public, private, and non-profit sectors drawn from all regions of the commonwealth and representing rural, urban and suburban populations. The investigation and study shall include, but not be limited to: (1) appropriate measures of poverty; (2) the root causes of poverty; (3) analysis of income inequality in Massachusetts, in particular examining the number of people and families in the commonwealth living below 200 per cent of the federal poverty level and the socio-economic challenges they face, while also calculating the number of people and families living at multiples above the federal poverty level; (4) violence in urban areas, particularly gun violence, and its effect on youth, commercial activity, and job opportunities in the community; (5) the number and types of existing jobs and the economically competitive strengths of the commonwealth; (6) obstacles to job opportunities for the poor; (7) recent examples and categories of successful paths out of poverty for youth, families, and neighborhoods; and (8) successful approaches and innovative system change efforts to reducing poverty and violence from within the commonwealth and throughout North America. The commission shall also produce data, estimates, and conduct analysis on the potential long-term municipal and state government savings that would result from effective poverty reduction efforts throughout the commonwealth as the number of people in need of government safety net spending is reduced. The commission shall establish and methodology for calculating annually relevant and appropriate metrics of poverty in the commonwealth.

The commission shall consist of the following 26 members: the secretary of administration and finance, or a designee; the secretary of housing and economic development, or a designee; the secretary of health and human services, or a designee; the secretary of transportation, or a designee; the secretary of labor and workforce development, or a designee; the secretary of education, or a designee; the secretary of public safety and security, or a designee; 2 appointees to be chosen by the speaker of the house of representatives; 2 appointees to be chosen by the president of the senate; 1appointee to be chosen by the minority leader of the house of representatives; 1 appointee to be chosen by the minority leader of the senate; 1 appointee to be chosen by the Massachusetts Mayors Association; 1 appointee to be chosen by the Massachusetts Non-Profit Network; 1 appointee to be chosen by the MassInc.; 1 appointee to be chosen by a Massachusetts based philanthropic  foundation; 1 appointee to be chosen by FSG or similar social impact consultant; 1 appointee to be chosen by the Institute for a Competitive Inner-City; 1 appointee to be chosen by the Massachusetts AFL-CIO; 1 appointee to be chosen by the Massachusetts Budget and Policy Center; 1 appointee to be chosen by a chamber of commerce in the commonwealth; 1 appointee to be chosen by the Massachusetts Council of Churches; 1 appointee to be chosen by the Massachusetts Association for Community Action; 1 appointee to be chosen by Massachusetts Law Reform Institute on behalf of organizations providing legal services to low-income people; and 1 appointee to be chosen by the National Association of Social Workers, Massachusetts Chapter.

The commission shall report its findings to the general court, along with any legislation necessary to carry its recommendations into effect, by filing the same with the clerks of the house of representatives and the senate on or before November 30, 2013."


Budget Amendment ID: FY2014-S3-277

ECO 277

Riverside Theatre Works

Mr. Rush moved that the proposed new text be amended in section 2, in item 7008-0900,             Mr. Rush moved that the bill be amended, in section 2, in item 0340-0700, by adding at the end thereof the following: “provided further, that not less than $50,000 shall be expended for operation of the programs of the Riverside Theatre Works located in the Hyde Park section of the City of Boston”


Budget Amendment ID: FY2014-S3-278

ECO 278

Workforce Training and Educational Services

Mr. DiDomenico moved that the proposed new text be amended in section 2, by inserting after item 7002-0012 the following item:

 

"xxxx-xxxx  For Centro Latino de Chelsea to provide workforce training, educational services, and other transitional services in the city of Chelsea .........$75,000"


Budget Amendment ID: FY2014-S3-279

ECO 279

Occupancy Unit Rehabilitation

Mr. DiDomenico moved that the proposed new text be amended in section 2, in item 7004-0099, by adding at the end thereof the following:- "provided further, that no less than $100,000 shall be expended for the Chelsea Community Center for the rehabilitation of community based occupancy units"; and in said item, by striking out the figures "$6,362,790" and inserting in place thereof the figures "$6,462,790"


Budget Amendment ID: FY2014-S3-280

ECO 280

Emergency Services

Mr. DiDomenico moved that the proposed new text be amended in section 2, in item 7004-0108, by adding at the end thereof the following:- "provided further, that not less than $175,000 shall be expended annually for provision of emergency services that provide domestic violence intervention, workforce development, housing assistance, operation of food vouchers, winter coats for kids and holiday dinners operated by Community Action Programs Inter-City, Incorporated for the communities specified in item 7004-0099 of section 2 of chapter 68 of the acts of 2011"; and in said item, by striking out the figures "$58,788,556" and inserting in place thereof the figures "$58,963,556"


Budget Amendment ID: FY2014-S3-281

ECO 281

Subsidized Housing Preference and Rental Assistance

Messrs. Eldridge, Donnelly, Rush, Kennedy and Moore and Ms. Spilka and Ms. Creem and Mr. Brownsberger and Ms. Clark and Messrs. Barrett, Wolf and DiDomenico and Ms. Lovely moved that the proposed new text be amended in section 2, in item 7004-0099, by inserting after the words “any temporary or bridge subsidies provided with state or federal funds” the following additional words:-

, which shall include households receiving rental assistance under item 7004-0108 after July 1, 2013;


Budget Amendment ID: FY2014-S3-282-R1

Redraft ECO 282

HomeBASE Rental Assistance

Messrs. Eldridge, Rush, Donnelly, Kennedy and Wolf and Ms. Jehlen and Mr. Joyce and Ms. Chang-Diaz and Messrs. Brownsberger, Michael O.  Moore, Barrett and DiDomenico and Ms. Lovely moved that the proposed new text be amended in section 2, in item 7004-0108, by striking out the words “ provided further, that a family that is terminated from the program because it has received 24 successive months of rental assistance shall not be able to receive assistance under this item for 12 months from the last date it received assistance through this program;” and inserting in place thereof the following language:-

provided further, that the department will take all necessary steps to ensure that families reaching the end of their time limited rental assistance shall not become homeless again, including, but not limited to: (a) transitioning families to long-term subsidized housing, including but not limited to assistance given through housing authorities, the federal Housing Choice Voucher program, or rental assistance under item 7004-9024; or (b) providing families with assistance through this item and item 7004-9316; provided further, that, notwithstanding any general or special law or rule or regulation to the contrary, the department shall ensure that any such family who does become homeless again shall be provided access to emergency shelter under item 7004-0101 so long as such family meets the income requirements of item 7004-0101, meets the requirements of the family’s housing stabilization plan and all other options of housing assistance have been exhausted; provided further, that on the first day of each month beginning on September 1, 2013, the department shall provide a report to the house and senate committees on ways and means, the joint committee on housing and the joint committee on children, families and persons with disabilities detailing how many families reached the end of the 24 month period in the preceding month and each family’s current housing status, including what additional forms of assistance are being provided to ensure that the family does not become homeless again;

And further amended by inserting at the end thereof the following language:-

, the number of households transitioned into federal funded public housing or rental assistance, the number of households transitioned to item 7004-9024, the number of households that exited the program into alternative housing, the number of households exiting the program and unaccounted for; provided further, that the report shall include the number of families served who required further assistance at a later date, the type of assistance later provided, the current housing stability of each family who received assistance within the prior 12 months, including transitional housing or short-term housing assistance, and any obstacles encountered with the administration of this program.


Budget Amendment ID: FY2014-S3-283

ECO 283

Home and Healthy For Good Program

Messrs. Eldridge, Keenan, Knapik, Timilty and Kennedy and Ms. Spilka and Ms. Clark moved that the proposed new text be amended in section 2, in item 7004-0104, by striking out the figure $1,400,000 and inserting in place thereof the following figure:- $1,800,000.


Budget Amendment ID: FY2014-S3-285-R1

Redraft ECO 285

Cost Certification

Messrs. Hedlund, Tarr and Knapik moved that the proposed new text be amended by inserting after section ___, the following new sections:-

 

SECTION ___. Chapter 40B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out sections 20 through 23 in their entirety and inserting in place thereof the following:

 

Section 20. The following words, wherever used in this section and in sections 21 to 23B, inclusive, shall, unless a different meaning clearly appears from the context, have the following meanings:—

 

“Allowable Acquisition Cost”, the as is fair market value of land under existing zoning, without taking into account the probability of obtaining a variance, special permit, other zoning relief or the benefit of a comprehensive permit, as of the date of submittal of a site eligibility application.  The allowable acquisition cost shall not exceed the most recent arm’s length purchase price.

“Allowable Development Related Expenses”, documented reasonable, necessary and actual development related costs associated with designing, planning, constructing, marketing and selling/renting a housing development. These costs include, but are not limited to, the allowable acquisition cost; site preparation costs; related permitting costs; project financing costs; contractor and subcontractor construction costs, project monitoring costs and brokers commissions.

 

“Certified Cost and Income Statement”,  a written statement audited by a independent, certified accounting firm qualified by the department pursuant to this chapter, in a form as determined by the department, prepared by a developer, or its attorneys, accountants or other agents, following the completion of a development, itemizing the development’s expenditures and income.

 

“Consistent with local needs”, requirements and regulations shall be considered consistent with local needs if they are reasonable in view of the regional need for low and moderate income housing considered with the number of low income persons in the city or town affected and the need to protect the health or safety of the occupants of the proposed housing or of the residents of the city or town, to promote better site and building design in relation to the surroundings, or to preserve open spaces, and if such requirements and regulations are applied as equally as possible to both subsidized and unsubsidized housing. Requirements or regulations shall be consistent with local needs when imposed by a board of zoning appeals after comprehensive hearing in a city or town where (1) low or moderate income housing exists which is in excess of 10 per cent of the housing units reported in the latest federal decennial census of the city or town or on sites comprising one and one half per cent or more of the total land area zoned for residential, commercial or industrial use; (2) the application before the board would result in the commencement of construction of such housing on sites comprising more than three tenths of one per cent of such land area or 10 acres, whichever is larger, in any one calendar year; provided, however, that land area owned by the United States, the commonwealth or any political subdivision thereof, or any public authority shall be excluded from the total land area referred to above when making such determination of consistency with local needs; (3) a developer with an equity interest in the development has been barred from applying for or obtaining a comprehensive permit under paragraph (f) of section 23B; or (4) the proposed density of the project is more than four times the density of the underlying zoning, or more than eight units per acre, whichever is greater.

 

“Department”, the department of housing and community development, or any successor agency.

 

“Developer”, a person holding an equity interest in a limited dividend organization that holds and exercises a permit pursuant to sections 20 through 23B.

 

“Development”, a low or moderate income housing development permitted under sections 20 through 23B.

 

“Development-related Income”, any revenue derived from the development project, including but not limited to, the sale or rental of housing units; the sale of raw material from the development site such as timber, loam and other soils; the sale of existing structures or related building materials on the site; any benefits from the granting of easements or licenses to the site; and, discounts, credits and rebates received from suppliers and subcontractors as part of the development process.

 

“Homeownership Development”, a development that consists of single- or multi-family housing units for sale.

 

“Immediate Family”, the spouse of a developer, and their parents, children, brothers, sisters, sons-in-law, daughters-in-law, aunts, uncles, nieces and nephews.

 

“Local Board”, any town or city board of survey, board of health, board of subdivision control appeals, planning board, building inspector or the officer or board having supervision of the construction of buildings or the power of enforcing municipal building laws, or city council or board of selectmen.

 

“Low or moderate income housing”, any housing subsidized by the federal or state government under any program to assist the construction of low or moderate income housing as defined in the applicable federal or state statute, whether built or operated by any public agency or any nonprofit or limited dividend organization.

 

“Monitoring Agent”, an agency qualified by the department, which may include the city or town in which the development is located or the local housing authority, to provide oversight, administration and enforcement of the regulatory agreement and the reasonable return allowed.  A subsidizing agency shall not act as monitoring agent.

 

“Profit”, the net income, after all allowable development-related expenses, derived from the sale of housing units and from any other development-related income sources.

 

“Reasonable Return”, the allowable profit earned through the construction and/or operation of a development as may be determined by the applicable federal or state statute or by the applicable subsidizing agency.  For a homeownership development the projected profit shall be no less than 10 percent and no more than 20 percent of allowable development costs.  For a rental development the annual dividend, commencing on the development’s initial occupancy and each year thereafter, and shall be no more than 10 percent of the owner’s investment in the development, shall consist of the difference between the audited actual capitalized value of the development and the sum of any debt secured by the development.

 

“Related Party”, the immediate family of a developer, or any entity in which the developer or his immediate family has at least a five percent financial interest.

 

“Related Party Transactions”, a development-related transaction between a developer and a related party.

 

“Rental Development”, a development that consists of single- or multi-family housing units for rent.

 

“Substantial Completion”, the earlier of: (a) the date on which construction is sufficiently complete so that all of the units in the development are eligible for final occupancy permits under the state building code, or (b) the date on which at least 50% of the units in the development are eligible for final occupancy permits under the state building code and at least three years have elapsed from the date on which the comprehensive permit became final.

 

“Uneconomic”, any condition brought about by any single factor or combination of factors to the extent that it makes it impossible for a public agency or nonprofit organization to proceed in building or operating low or moderate income housing without financial loss, or for a limited dividend organization to proceed and still realize a reasonable return in building or operating such housing within the limitations set by the subsidizing agency of government on the size or character of the development or on the amount or nature of the subsidy or on the tenants, rentals and income permissible, and without substantially changing the rent levels and units sizes proposed by the public agency, nonprofit or limited dividend organizations.

 

Section 20A.  The department shall be responsible for the administration and enforcement of sections 20 through 23B of this chapter.  Its powers and duties shall include, but not be limited to, the following:

 

(a)Promulgating regulations relative to the operation and enforcement of sections 20 through 23B;

 

(b)Reviewing certified cost and income statements filed under section 23A;

 

(c)Qualifying monitoring agents and maintaining a list of qualified monitoring agents;

 

(d)Verifying that monitoring agents are fulfilling oversight obligations;

 

(e)Qualifying independent appraisers and maintaining a list of qualified independent appraisers for use by boards of appeals to determine the allowable acquisition cost of land;

 

(f)Qualifying certified public accounting firms to audit certified cost and income statements and maintaining a list of qualified certified public accounting firms; and

 

(g)Imposing and enforcing sanctions for violations of sections 20 through 23B.

 

Section 21. Any public agency or nonprofit or limited dividend organization proposing to build low or moderate income housing may submit to the board of appeals, established under section 12 of chapter 40A, a single application to build such housing in lieu of separate applications to the applicable local boards. All applications to any state or municipal body, including any financial information, made under sections 20 through 23B shall be made under the pains and penalties of perjury.  The board of appeals shall forthwith notify each such local board, as applicable, of the filing of such application by sending a copy thereof to such local boards for their recommendations and shall, within 30 days of the receipt of such application, hold a public hearing on the same. The board of appeals shall request the appearance at said hearing of such representatives of said local boards as are deemed necessary or helpful in making its decision upon such application and shall have the same power to issue permits or approvals as any local board or official who would otherwise act with respect to such application, including but not limited to the power to attach to said permit or approval conditions and requirements with respect to height, site plan, size or shape, or building materials as are consistent with the terms of this section. The board of appeals, in making its decision on said application, shall take into consideration the recommendations of the local boards and shall have the authority to use the testimony of consultants. The board of appeals shall also have access to all financial details of the development, including, but not limited to, any documents from the subsidizing agency regarding the development.  The board of appeals shall adopt rules, not inconsistent with the purposes of this chapter, for the conduct of its business pursuant to this chapter and shall file a copy of said rules with the city or town clerk. The provisions of section 11 of chapter 40A shall apply to all such hearings. The board of appeals shall render a decision, based upon a majority vote of said board, within 40 days after the termination of the public hearing and, if favorable to the applicant, shall forthwith issue a comprehensive permit or approval. Any negotiated agreements between the board of appeals and a developer shall be documented in the comprehensive permit, which shall be binding and enforceable by the board of appeals and shall supersede any regulatory or monitoring agreements with a subsidizing agency.  Upon issuance or approval of a comprehensive permit by the board of appeals, the board of appeals may require a developer to post a bond or escrow funds in an amount no more than five per cent of total projected allowable development costs.  If said hearing is not convened or a decision is not rendered within the time allowed, unless the time has been extended by mutual agreement between the board and the applicant, the application shall be deemed to have been allowed and the comprehensive permit or approval shall forthwith issue. Any person aggrieved by the issuance of a comprehensive permit or approval may appeal to the court as provided in section 17of chapter 40A.

At the time of application to the board of appeals, the developer shall provide a reasonable fee to the board of appeals to cover the cost of an independent appraisal of the land by a qualified appraiser chosen by the board of appeals from a list maintained by the department.  The appraisal shall be conducted using the Uniform Standards of Professional Appraisal Practice.  The appraisal shall determine the allowable acquisition cost of the land, which shall be used for the purpose of calculating total development costs and profit.  The transfer of a comprehensive permit from one party to another shall not affect the allowable acquisition cost of the land.  Also at the time of application, the developer shall disclose to the board of appeals the existence of any known related party transactions that will occur in the course of development.  After the application has been made, the developer shall notify the board of appeals in writing within 14 days of a change in related-party transactions.

 

Upon approval of a development, either by the board of appeals or by a decision of the housing appeals committee, the city or town where the development is located shall chose a qualified monitoring agent for the purpose of cost monitoring of the development from a list maintained by the department.

 

Section 22. Whenever an application filed under the provisions of section 21 is denied, or is granted with such conditions and requirements as to make the building or operation of such housing uneconomic, the applicant shall have the right to appeal to the housing appeals committee in the department for a review of the same.  During the appeal the burden of proof shall at all times be on the applicant to demonstrate the imposition of uneconomic conditions and requirements.   Such appeal shall be taken within 20 days after the date of the notice of the decision by the board of appeals by filing with said committee a statement of the prior proceedings and the reasons upon which the appeal is based. The committee shall forthwith notify the board of appeals of the filing of such petition for review and the latter shall, within 10 days of the receipt of such notice, transmit a copy of its decision and the reasons therefor to the committee. Such appeal shall be heard by the committee within 20 days after receipt of the applicant’s statement. A stenographic record of the proceedings shall be kept and the committee shall render a written decision, based upon a majority vote, stating its findings of fact, its conclusions and the reasons therefor within 30 days after the termination of the hearing, unless such time shall have been extended by mutual agreement between the committee and the applicant. Such decision may be reviewed in the superior court in accordance with the provisions of chapter 30A.

 

Section 23. The hearing by the housing appeals committee in the department shall be limited to the issue of whether, in the case of the denial of an application, the decision of the board of appeals was reasonable and consistent with local needs and, in the case of an approval of an application with conditions and requirements imposed, whether such conditions and requirements make the construction or operation of such housing uneconomic and whether they are consistent with local needs. In making its decision the committee shall review the financial details of the development including, but not limited to, the allowable acquisition cost of the land, development related income, and the allowable development expenses, to determine if the decision of the board or the conditions and requirements imposed by the board make the construction or operation of such housing uneconomic and whether they are consistent with local needs.  If the committee finds, in the case of a denial, that the decision of the board of appeals was unreasonable and not consistent with local needs, it shall vacate such decision and shall direct the board to issue a comprehensive permit or approval to the applicant. If the committee finds, in the case of an approval with conditions and requirements imposed, that the decision of the board makes the building or operation of such housing uneconomic and is not consistent with local needs, it shall order such board to modify or remove any such condition or requirement so as to make the proposal no longer uneconomic and to issue any necessary permit or approval; provided, however, that the committee shall not issue any order that would permit the building or operation of such housing in accordance with standards less safe than the applicable building and site plan requirements of the federal Housing Administration or the Massachusetts Housing Finance Agency, whichever agency is financially assisting such housing. Decisions or conditions and requirements imposed by a board of appeals that are consistent with local needs shall not be vacated, modified or removed by the committee notwithstanding that such decisions or conditions and requirements have the effect of making the applicant’s proposal uneconomic.

 

The housing appeals committee or the petitioner shall have the power to enforce the orders of the committee at law or in equity in the superior court. The board of appeals shall carry out the order of the housing appeals committee within 30 days of its entry and, upon failure to do so, the order of said committee shall, for all purposes, be deemed to be the action of said board, unless the petitioner consents to a different decision or order by such board.

 

Section 23A.  (a)  Within 180 days of substantial completion of a development, or within 120 days of the sale of the last housing unit in the development, whichever occurs first, the developer shall prepare and sign, under the pains and penalties of perjury, a certified cost and income statement, and submit the statement to the department.  Such statement shall be audited by a qualified, independent certified public accounting firm chosen by the city or town where the development is located from a list maintained by the department.  If at the time of the certified cost and income statement less than 100 percent of the total number of housing units in the development have been sold, the certified cost and income statement shall include the development’s costs and income as of the date of the statement, and supplement said statement quarterly until the development has been fully sold.

 

(b) The certified cost and income statement shall itemize every project expense in excess of $100, and itemize all development-related income, including all sales of housing units. The certified cost and income statement shall state the total income, expenses and profit of the development. The department shall promulgate regulations governing the preparation and completion of a certified cost and income statement which shall, at a minimum, include the following:

 

(i) identification of all related party transactions, and for each such transaction, document how the costs incurred, or income derived, from the transaction does or does not exceed reasonable industry standards for the cost incurred or income derived from the transaction. All direct and indirect costs due to related party transactions must be included, as well as all related party overhead, profit and general conditions;

 

(ii) for homeownership developments, copies of the HUD settlement statements for the sale of all housing units in the development;

 

(iii) when income from the sale of a housing unit is significantly less than fair market price for the housing unit, the fair market value of the unit, shall be used in determining the income derived from the unit regardless of the actual income realized in the transaction; and

 

(iv) the allowable acquisition cost of acquiring the land for the development as determined by the independent appraisal required under section 21.  Any amount paid in excess of the allowable acquisition cost shall be allowable only to the extent that the current owner can document that the party which sold the land performed services that would otherwise be includable in an allowable line item.

 

(c) Profits that exceed the applicable reasonable return as determined by a certified cost and income statement shall be deposited with the municipality in which the development is located and may be used for affordable housing, or for infrastructure, public safety and education needs created by the development.

 

(d) The developer, the chief elected official or board of a municipality may request the department in writing to perform an audit of a certified cost and income statement of a development. The department shall within 30 days of its receipt of the request notify the developer, the chief elected official or board of its decision whether to perform the audit. The developer, the chief elected official or board aggrieved by a decision not to perform an audit may request an adjudicatory hearing before the department. If no such request is timely made, the determination whether to perform an audit shall be deemed assented to. If a timely request is received, the department shall, within a reasonable time, act upon such request. All adjudicatory proceedings before the department shall be conducted in accordance with all provisions of chapter 30A governing the conduct of adjudicatory hearings.

 

(e) Any person aggrieved by a determination made following an audit may request an adjudicatory hearing before the department. If no such request is timely made, the determination whether to perform an audit shall be deemed assented to.  If a timely request is received, the department shall, within a reasonable time, act upon such request. All adjudicatory proceedings before the department shall be conducted in accordance with all provisions of chapter 30A governing the conduct of adjudicatory hearings.

 

(f) Any person aggrieved by a final decision of the department in an adjudicatory proceeding held pursuant to this section may obtain judicial review thereof pursuant to the provisions of chapter 30A.

 

Section 23B.

 

(a) It shall be a violation of this chapter for certified cost and income statements to misrepresent or misstate the profit of a development.  The certified cost and income statement shall be filed under the pains and penalties of perjury.  It shall also be a violation of this chapter if all related party transactions are not identified at substantial completion.  In addition to any civil penalties and sanctions that may be imposed under this section, a developer of a development that the department determines earned profits that exceed the applicable reasonable return shall be personally liable for the amount by which the profit exceeds the reasonable return plus interest and penalties, payable to the subject municipality in accordance with paragraph (c) of section 23A.

 

(b) A penalty shall be assessed against a developer who does not submit a timely certified cost and income statement.  Such penalty shall be one percent of the total projected development costs for certified cost and income statements which are late by more than one week; an additional four percent of total projected development costs for certified cost and income statements which are late by more than 90 days; and an additional five percent of total projected development costs for certified cost and income statements which are late by more than 180 days.  These penalties shall be paid to the municipality in accordance with paragraph (c) of section 23A.  Developers with outstanding certified cost and income statements shall not be allowed to apply for a comprehensive permit in the commonwealth until such time as the outstanding certified cost and income statements are submitted.

 

(c) In the event that the department determines that a developer has violated a provision of this chapter or the regulations of the department, the department shall:

 

(i)bring specific charges with respect to the developer;

 

(ii) notify such developer, and provide to the developer an opportunity to defend against such charges through an adjudicatory proceeding in accordance with sections 10 and 11 of chapter 30A; and

 

(iii) keep a record of the proceedings.

 

(d) A determination by the department to impose a civil monetary penalty under this section shall be supported by a statement setting forth:

 

(i) the amount of profits in excess of the reasonable return or violation of any provision of this chapter or the regulations of the department; and

 

(ii) the sanction imposed, including a justification for that sanction.

 

(e) If the department finds, based on all of the facts and circumstances, that a developer has violated a provision of this chapter or the regulations of the department, the department may assess a civil penalty in an amount not to exceed five percent of the total development costs of the development as determined by the department following an audit, and in any case of intentional or knowing conduct, including reckless conduct, not to exceed eight percent of said total development costs. The department’s decision may be appealed pursuant to chapter 30A. The provisions of this paragraph may be enforced by suit in the superior court. In the event that a developer does not appeal the department’s decision to assess a civil penalty, and the department brings an action in superior court to enforce a penalty imposed under this chapter, and the department prevails in such action, the superior court shall award the department its reasonable costs and attorneys fees.

 

(f) In the case of intentional or knowing conduct, including reckless conduct, a developer who has been assessed a civil penalty for a development in which the profit exceeded 30 per cent of the total allowable development costs of the development shall be permanently barred from applying for or obtaining a comprehensive permit under this chapter. A decision to deny a comprehensive permit to an applicant in which such a developer has any equity interest shall be deemed consistent with local needs for purposes of this chapter.  For the purposes of this paragraph, “developer” shall include a natural person holding at a least five percent financial interest in any organization that holds an equity interest in limited dividend organization found in violation of this paragraph.

 

(g) If the department imposes a civil penalty, in accordance with this section, it shall report the sanction to:

 

(i) any appropriate state regulatory authority;

 

(ii) any appropriate prosecutorial authority;

 

(iii) the chief elected official or board of any municipality affected by the violation committed by the developer; and

 

(iiv) the public

 

The information reported under this paragraph shall include:

 

(i) the name of the sanctioned person;

 

(ii) a description of the sanction and the basis for its imposition; and

 

(iii) such other information as the department deems appropriate.

 

(h) All civil penalties assessed under this section shall be deposited with the subject municipality in accordance with paragraph (c) of section 23A, after deducting the department’s reasonable costs and attorneys fees incurred in the enforcement of this chapter.

 

(i)  Any person who knowingly makes any materially false or inaccurate statement in any application, certified cost and income statement, or statement which said person submits to the department or board of appeals, or in testimony in any adjudicatory proceeding before the department, or who knowingly tampers with, alters, destroys, or disturbs any financial records of a development so as to avoid liability for excess profits or penalties under this chapter shall be punished by imprisonment in the state prison for not more than five years, or imprisonment in the house of correction for not more than two and one-half years, or by a fine of not more than $10,000, or by both such fine and imprisonment.

 

(j) The superior court department of the trial court shall have jurisdiction to enjoin violations of, or to grant such additional relief as it deems necessary or appropriate to secure compliance with, the provisions of sections one through eleven, inclusive, or of any regulation, license, or order issued or adopted thereunder, upon the petition of the department or the attorney general.


Budget Amendment ID: FY2014-S3-287-R1

Redraft ECO 287

Eligibility Requirements for Public Housing

Messrs. Hedlund, Tarr and Knapik moved that the proposed new text be amended by inserting after section ___, the following new sections:-

 

SECTION ___. Section 32 of chapter 121B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by adding the following paragraph:-

 

Notwithstanding any general or special law or regulation to the contrary, an applicant for assisted housing under this chapter who is not eligible for federal assisted housing under 42 U.S.C. section 1436a, and who is not a person residing in the United States as defined in regulations of the federal Department of Health and Human Services, shall not displace or be given priority over any applicant who is so eligible.


Budget Amendment ID: FY2014-S3-288

ECO 288

Anne Sullivan Memorial

Mr. Knapik moved that the proposed new text be amended in section 2, in item 7008-0900, by adding at the end thereof, the following:

“provided further, that no less than $35,000 shall be expended for the renovations and improvements to the Anne Sullivan Memorial in Agawam,”


Budget Amendment ID: FY2014-S3-289

ECO 289

Year Up

Mr. DiDomenico and Ms. Clark and Mr. Joyce moved that the proposed new text be amended in section 2, by inserting after item7002-0012 the following item:

 

"xxxx-xxxx For the Year Up, Inc. program to provide employment, training and job placement through a 1-year program for young urban adults ages 18 to 24 that combines an internship with college credits and a stipend, so long as the program demonstrates at least a 6:1 private match and has a proven record of achieving at least an 80 per cent positive outcome within 6 months after graduation, defined by either a first job earning $30,000 or full-time enrollment in college........$200,000”


Budget Amendment ID: FY2014-S3-290-R4

4th Redraft ECO 290

SUSPENSION OF TOURISM FORMULA

Mr. Tarr moved that the proposed new text be amended by inserting the following new Sections:-

 

“SECTION _ .  There shall be a tourism formula commission to examine the distribution of funds in the Massachusetts Tourism Fund.  The commission shall review and evaluate the current funding formula and determine if any revisions are necessary for achieving a fair and equitable funding formula that will ensure funding is cost-effective and that funds are distributed in the most cost-effective manner to the office of travel and tourism, the Massachusetts Convention Center Authority, the tourist promotion agencies listed under section fourteen of chapter twenty-three A of the General Laws, the Cultural Facilities Fund and the Massachusetts international trade office.

 

The commission shall file a report with the clerks of the senate and house of representatives, the senate and house committees on ways and means, and the joint committee on tourism, arts and cultural development not later than May 1, 2014. The commission shall hold 1 or more public hearings before issuing said report.

 

The commission shall consist of the following members or their designee: 3 members of the senate, 1 of whom shall be the senate chair of the joint committee on tourism, arts and cultural development, who shall serve as co-chair of the commission, and one of whom shall be appointed by the minority leader; 3 members of the house of representatives, 1 of whom shall be the house chair of the joint committee on tourism, arts and cultural development, whom shall serve as co-chair of the commission, and 1 of whom shall be appointed by the minority leader; and 3 persons to be appointed by the governor. The commission shall convene not later than 60 days after the effective date of this act."


Budget Amendment ID: FY2014-S3-291

ECO 291

Homeless Services

Messrs. DiDomenico and Brownsberger moved that the proposed new text be amended in section 2, in item 7004-0099, by adding at the end thereof the following:  "provided further, that no less than $25,000 shall be expended for Solutions at Work in the city of Cambridge"; and in said item,by striking the figures "$6,362,790" and inserting in place thereof the figures "$6,387,790"


Budget Amendment ID: FY2014-S3-292

ECO 292

One-Stop Career Centers

Mr. DiDomenico moved that the proposed new text be amended in section 2, in item 7003-0803, by adding at the end thereof the following:- “provided, that not less than $2,103,747 shall be expended for one-stop career centers that were in existence on May 1, 1997, located in the Boston, Hampden county and metro north service delivery areas and any satellite offices of said centers which opened on or before December 1, 1997”.


Budget Amendment ID: FY2014-S3-294-R2

2nd Redraft ECO 294

Zoos

Ms. Candaras and Messrs. Joyce and Montigny moved that the proposed new text be amended in section 2, in item 7007-0952, by adding the following words:- “provided further, that not less than $200,000 shall be expended for a competitive grant program for zoos not operated by the commonwealth zoological corporation; and provided further, that in awarding said grants, the office of business development shall ensure that all zoos that received funding in fiscal year 2013 receive funding in fiscal year 2014 and shall award said grants to zoos in equal amounts to all grant recipients”; and by striking out the figure “$3,500,000” and inserting in place thereof the following figure:- “$3,700,000”.


Budget Amendment ID: FY2014-S3-295

ECO 295

Community Action Homelessness Prevention Program

Ms. Clark and Messrs. Wolf and Keenan moved that the proposed new text be amended in section 2, in item XXXX-XXXX, by inserting after item 7004-9316 the following item:

 

“XXXX-XXXX. Community Action Homelessness Prevention Program

 

For the purposes of a homelessness prevention program known as the Community Action Homelessness Prevention Program (CAHPP), to be administered by community action agencies, to support the delivery of services by staff and to support emergency financial assistance for families who have incomes at or below 130% of the federal poverty line and include a child under age 21 or a pregnant woman;

 

provided further, that such prevention services and financial assistance shall be offered on first-come, first-serve basis, and shall include landlord/tenant mediation, legal assistance to prevent eviction, housing search services, stabilization services and tracking to ensure that families remain housed for a minimum of 12 months, and financial assistance to pay up to $4,000 per household for rental arrearages, short-term subsidy, or first month’s rent/last month’s rent/security deposit;

 

provided further that arrearage payments shall be to landlords who have issued a notice to quit but who agree to withdraw the notice and extend the tenancy if payment is provided and that short term subsidy for first month, last month, security deposit funds shall be offered only if funds will prevent a family from becoming homeless;

 

provided further that families served shall include families that are at risk of homelessness but have not yet sought eligibility determination for HomeBASE services and shall also include families at risk of homelessness who do not yet meet eligibility criteria for HomeBASE services and are referred to community action agencies by HomeBASE agencies or other nonprofit or service organizations or government entities;

 

provided further, that community action agencies and regional housing nonprofits shall collaborate to ensure that the maximum number of households are able to secure prevention resources through either the Community Action Homelessness Prevention Program or RAFT resources;

 

provided further that that the CAHPP program shall be administered by community action agencies, as defined in section 24 of the Chapter 23B of the Massachusetts General Laws, ..………..$5,000,000”.


Budget Amendment ID: FY2014-S3-296

ECO 296

Massachusetts Office of Travel and Tourism

Ms. Donoghue, Ms. O'Connor Ives and Ms. Spilka and Messrs. Knapik and Wolf and Ms. Lovely moved that the proposed new text be amended in section 2, in item 7008-0900, by striking out the figure “$5,924,728” and inserting in place thereof the following figure:- “$8,424,728”.


Budget Amendment ID: FY2014-S3-297

ECO 297

MassPort Boat Building

Mr. Tarr moved that the proposed new text be amended by inserting, after section ___, the following new section:-

“SECTION _. Notwithstanding any general or special law to the contrary, the Massachusetts Port Authority shall make available the property known as Building 23/33, at 256 Marginal Street, East Boston, MA 02128 or equivalent space of up 20,000 square feet in size, for the purpose of the design, construction and repair of vessels, provided that the authority shall develop a plan for the rehabilitation of said property for this purpose and the recovery and absorption of costs required to do so, or a combination thereof, together with a plan for the solicitation and award of one or more leases for said property not later than July 30, 2013 and provided further, that such lease or leases shall be awarded not later than September 1, 2013”

 


Budget Amendment ID: FY2014-S3-298

ECO 298

Advanced Manufacturing Futures Program

Ms. Candaras and Messrs. Knapik and Eldridge moved that the proposed new text be amended in section 2, in item 7002-0022, by striking out the figure "$15,000,000" and inserting in the place thereof the following figure:- "$18,750,000".


Budget Amendment ID: FY2014-S3-299

ECO 299

Commonwealth Zoological Corporation

Ms. Clark and Mr. Rush and Ms. Donoghue moved that the proposed new text be amended in section 2, in item 7007-0952, by striking out the figure "$3,500,000" and inserting in place thereof the following figure:- "3,700,000".


Budget Amendment ID: FY2014-S3-300

ECO 300

Passport Holyoke

Mr. Knapik moved that the proposed new text be amended in section 2, in item 7008-0900, by adding at the end thereof, the following:

“provided, that no less than $50,000 shall be expended to Passport Holyoke for costs associated with programing and events,”


Budget Amendment ID: FY2014-S3-301

ECO 301

Whip City Museum

Mr. Knapik moved that the proposed new text be amended in section 2, in item 7008-0900, by adding at the end thereof, the following:

“provided further, that no less than $75,000 shall be expended for the creation and promotion of a living museum located at the Whip Manufacturing Company in Westfield, MA,”


Budget Amendment ID: FY2014-S3-302

ECO 302

Department of Professional Licensure

Mr. Kennedy moved that the proposed new text be amended in section 2, in item 7006-0040, by striking out the figure “$2,474,874” and inserting in place thereof the following figure:-

 

“$2,666,201”


Budget Amendment ID: FY2014-S3-303-R1

Redraft ECO 303

Rental Assistance for DMH Clients

Messrs. Eldridge and Brownsberger and Ms. Clark and Messrs. Joyce and McGee moved that the proposed new text be amended in section 2, in item 7004-9033, by striking out the figure “$4,000,000” and inserting in place thereof the following figure:- “$4,125,000”.


Budget Amendment ID: FY2014-S3-305

ECO 305

Cultural Diversity Festivals

Ms. Chang-Diaz and Mr. Brownsberger moved that the proposed new text be amended in section 2, in item 7008-0900, by inserting, after the words “within the commonwealth,” the following words:-

“; and provided further, that not less than $75,000 shall be expended for festivals supporting and promoting cultural heritage diversity, education, and tourism”


Budget Amendment ID: FY2014-S3-306-R1

Redraft ECO 306

Military Base Promotion

Ms. Candaras and Mr. Eldridge moved that the proposed new text be amended in section 2, by inserting after item 7007-0032 the following item: "7002-0035 For a reserve to support the commonwealth's defense sector initiatives; provided, that the executive office may allocate funds to Massachusetts development and finance agency for this purpose.......................................$350,000".


Budget Amendment ID: FY2014-S3-307

ECO 307

Homeless Individuals Assistance

Ms. Chang-Diaz and Messrs. Donnelly and Brownsberger and Ms. Clark moved that the proposed new text be amended in section 2, in item 7003-0803, by inserting, after the words “provided by the department of career services” the following words:- “; provided that $288,000 be directed towards workforce development programs for homeless individuals”; and in said item, by striking out the figure “$4,494,467” and inserting in place thereof the following figure:- “$4,782,467”


Budget Amendment ID: FY2014-S3-308

ECO 308

Construction of Certain Housing Units

Mr. Eldridge moved that the proposed new text be amended in section 84, by inserting at the end thereof the following additional language:-

Subsection (b) of section 31 of said chapter 121B, as so appearing, is hereby amended by repealing the language appearing at lines 25 through 35 and inserting in place thereof the following words:- approve such a project only if it makes the following determinations: (i) the design and layout of the proposed project is appropriate to the neighborhood in which it is to be located; and (ii) an.


Budget Amendment ID: FY2014-S3-309

ECO 309

Maintaining Access to Emergency Shelter for Certain Homeless Families

Mr. Donnelly and Ms. Spilka and Ms. Lovely moved that the proposed new text be amended in section 2, in item 7004-0101, by striking out the words “provided further, that notwithstanding any general or special law to the contrary, the department shall immediately provide shelter for up to 30 days to families who appear to be eligible for such shelter based on statements provided by the family and any other information in the possession of the department, but who need additional time to obtain any third-party verifications reasonably required by the department; provided further, that shelter benefits received under the preceding proviso shall not render a family ineligible under any regulation providing that families who previously received shelter are ineligible for shelter benefits for a period of 12 months; provided further, that families receiving such shelter benefits who are found not to be eligible for continuing shelter benefits shall be eligible for aid pending a timely appeal pursuant to chapter 23B of the General Laws;” and inserting in place thereof the following words:-

 

"provided further, that notwithstanding any general or special law to the contrary, the department shall immediately provide shelter for up to 30 days to (i) families who appear to be eligible for such shelter based on statements provided by the family and any other information in the possession of the department, but who need additional time to obtain any third-party verifications reasonably required by the department,  and (ii) families who otherwise appear eligible except for not yet appearing to meet the eligibility criteria under category (iv) in item 7004-0101 and who present credible statements or other credible evidence that they are within 24 hours of having to enter a housing situation covered by category (iv); provided further, that shelter benefits received under the preceding proviso shall not render a family ineligible under any regulation providing that families who previously received shelter are ineligible for shelter benefits for a period of 12 months; provided further, that families placed pursuant to subsection (ii) in the presumptive placement proviso shall remain eligible for emergency shelter beyond the 30 days if their eligibility is otherwise verified and if the department has been unable to identify other feasible alternative housing for them, without regard to the fact that they did not satisfy the requirements of category (iv) at the time of presumptive placement;"


Budget Amendment ID: FY2014-S3-310

ECO 310

Wilbraham Nature and Culture Council

Ms. Candaras moved that the proposed new text be amended in section 2, in item 7008-0900, by adding the following, “provided further that not less than $50,000 shall be expended for the Wilbraham Nature and Cultural Council working in collaboration with the Wilbraham Community Association and the Minnechaug Land Trust for tourism marketing and advertising purposes”.


Budget Amendment ID: FY2014-S3-311

ECO 311

Alternative Housing Voucher Program

Mr. Kennedy moved that the proposed new text be amended in section 2, in item 7004-9030, by striking out the figure "$3,450,000 " and inserting in place thereof the following figure:- "$4,345,000"


Budget Amendment ID: FY2014-S3-312

ECO 312

Regional Economic Development Organizations

Ms. Candaras and Ms. Spilka and Messrs. Wolf, Knapik and Welch and Ms. Lovely and Mr. Rodrigues and Ms. Flanagan and Messrs. Michael O. Moore, McGee and Eldridge and Ms. O'Connor Ives and Ms. Donoghue moved that the proposed new text be amended in section 2, in item 7007-0150, by striking out the figure "$850,000" and inserting in place thereof the following figure:- "$1,200,000".


Budget Amendment ID: FY2014-S3-313-R1

Redraft ECO 313

MA Service Alliance

Messrs. Wolf and Downing and Ms. Chang-Diaz and Mr. Donnelly and Ms. Candaras and Ms. Creem and Messrs. Brownsberger, Moore, Knapik, McGee and Welch moved that the proposed new text be amended in section 2, in item 7003-1206, <w:p><w:r><w:t xml:space="preserve">by striking out the figure "600,000" and inserting in place thereof the figure: "750,000."


Budget Amendment ID: FY2014-S3-314

ECO 314

Urban League Funding

Mr. Rush and Ms. Candaras and Messrs. McGee, Petruccelli and Knapik moved that the proposed new text be amended in section 2, in item 7003-1206, by adding at the end thereof the following:-  “; provided further, that not less than $600,000 shall be expended for the Urban League of Eastern Massachusetts; provided further, that not less than $300,000 shall be expended for the Urban League of Springfield”;  and in said item, by striking out the figure “$600,000” and inserting in place thereof the figure “$1,500,000”


Budget Amendment ID: FY2014-S3-315

ECO 315

Workforce Competitiveness Trust Fund

Messrs. Wolf and Donnelly and Ms. Clark and Messrs. Knapik, Eldridge, Brownsberger and McGee moved that the proposed new text be amended in section 2, by inserting after item 7002-0012 the following item:  

"xxxx  The Workforce Competitiveness Trust Fund to support employer-led training partnerships aligned to the Commonwealth's economic development strategy.   Funds will provide education and skills development for unemployed and underemployed persons that lead to jobs in high growth industry sectors: $5,000,000."


Budget Amendment ID: FY2014-S3-316

ECO 316

Grand Army of the Republic Historical Museum

Mr. McGee moved that the proposed new text be amended in section 2, in item 7008-0900, Mr. McGee moved that the bill be amended, in section 2, in item 7008-0900, by adding the following words:- “provided further, that no less than $100,000 shall be proved to the Gran Army of the Republic Historical Museum in Lynn.”


Budget Amendment ID: FY2014-S3-317

ECO 317

Russian Community Association

Mr. McGee moved that the proposed new text be amended in section 2, in item 7008-0900, Mr. McGee moved that the bill be amended in section 2, in item 7008-0900, by adding the following words:- “; provided further, that no less than $90,000 shall be expended for the Russian Community Association of Massachusetts (RCAM) in Boston.”


Budget Amendment ID: FY2014-S3-318

ECO 318

Community Outreach and Education

Mr. Richard T. Moore moved that the proposed new text be amended in section 2, in item 7003-1206, by inserting at the end thereof the following:- "; provided further, that not less than $50,000 shall be expended for community outreach and education efforts to the Hispanic senior citizens of Southbridge"; and in said item, by striking out the figures "$600,000" and inserting in place thereof the figures "$650,000"


Budget Amendment ID: FY2014-S3-319

ECO 319

Massachusetts Life Sciences Center

Ms. Candaras and Mr. Knapik and Ms. Spilka moved that the proposed new text be amended in section 112, by striking subsection (ii) in outside section 112;

 

and further moves to insert after item 7002-0022 the following item:

 

"xxxx-xxxx For a transfer to the Massachusetts Life Sciences Investment Fund established by section 6 of chapter 23I of the General Laws.......................................................$25,000,000"


Budget Amendment ID: FY2014-S3-320

ECO 320

Alternative Housing Voucher Program

Ms. Creem moved that the proposed new text be amended in section 2, in item 7004-9030, by striking out the figure “$3,450,000" and inserting in place thereof the following figure:- “$4,345,000”.


Budget Amendment ID: FY2014-S3-321

ECO 321

Gateway Cities Population Threshold

Ms. Donoghue and Ms. Candaras and Mr. Montigny and Ms. Lovely and Messrs. Keenan, Welch and Joyce moved that the proposed new text be amended in section 29, by adding at the end thereof the following: “; and by inserting, in line 141 of section 3A of chapter 23A, after the word “average” the following:- “, provided that if a qualifying municipality’s population is less than 35,000, said municipality’s median household income must be at least 15% below the commonwealth’s average.”