SENATE . . . . . . . . . . . . . . No. 2422
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The Commonwealth of Massachusetts
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In the Year Two Thousand Fourteen
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SENATE, July 11, 2016
The committee on Senate Committee on Bonding, Capital Expenditures and State Assets, to whom was referred the House Bill relative to job creation, workforce development and infrastructure investment (House, No. 4883); reports, recommending that the same ought to pass with an amendment striking out all after the enacting clause and inserting in place thereof the text of Senate document numbered 2422.
For the committee,
John F. Keenan
SENATE . . . . . . . . . . . . . . No. 2422
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The Commonwealth of Massachusetts
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In the Year Two Thousand Fourteen
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SECTION 1. To provide for a program of economic development and job creation, the sums set forth in sections 2A, 2B, and 2C for the several purposes and subject to the conditions specified in this act, are hereby made available, subject to the laws regulating the disbursement of public funds. These sums shall be in addition to any amounts previously authorized and made available for these purposes; provided further, that in order to expedite these improvements, which are critical to the continued operation of the commonwealth, its economic well-being, and the immediate need for capital appropriation, the sums set forth in said sections 2A, 2B and 2C shall not be available later than July 31, 2019 unless the governor requests that the state treasurer issue and sell bonds of the commonwealth for the sums authorized in said sections 2A, 2B and 2C on or before July 31, 2019; and provided further, that upon such a request, the governor shall file a report with the general court detailing the request and a capital plan.
SECTION 2A.
EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT
Office of the Secretary
7002-8006 For the MassWorks infrastructure program established by section 63 of chapter 23A of the General Laws …………………..…………………………. $300,000,000
7002-8007 For matching grants to enable institutions of higher education, including state and municipal colleges and universities, located in the commonwealth to participate in and receive federal funding from the National Network for Manufacturing Innovation ……………………………………..………..……… $71,000,000
7002-8008 For a program administered by the Massachusetts Development Finance Agency for site assembly, site assessment, pre-development permitting and other pre-development and marketing activities that enhance a site’s readiness for commercial, industrial or mixed-use development; provided that a portion of such funds shall be used to facilitate the expansion or replication of successful industrial parks; and provided further that a portion of such funds shall be used to support the revitalization of downtown….….….……$15,000,000
7002-8009 For a program to be administered by the Massachusetts Development Finance Agency to make grants to private property owners, non-profit entrepreneur support organizations and business operators, and grants and loans to municipalities, for design, construction and, improvement of buildings and for equipment to spur innovation and entrepreneurship across the state, including but not limited to co-working spaces, innovation centers, maker spaces and artist spaces …………………………………………… $15,000,000
7002-8011 For the Transformative Development Fund established by section 46 of chapter 23G of the General Laws …………………………………..……..………$45,000,000
7002-8012 For the Scientific and Technology Research and Development Matching Grant Fund established by section 4G of chapter 40J of the General Laws …………$15,000,000
7002-8013For the Advanced Manufacturing, Technology and Hospitality Training Trust Fund established in section 2OOOO of chapter 29 of the General Laws...........$30,000,000
7002-8014For the Massachusetts Food Trust Program established by section 65 of chapter 23A of the General Laws ………………………..…………………..……… $6,000,000
7002-8017For the Massachusetts Technology Park Corporation, established in section 3 of chapter 40J of the General Laws and doing business as the Massachusetts Technology Collaborative, to create a cybersecurity and data analytics technology development and training center of excellence pursuant to section 104 ……………………..…. $4,500,000
7002-8021 For the Brownfields Redevelopment Fund established by section 29A of chapter 23G of the General Laws ……………………..……………..…………… $45,000,000
SECTION 2B.
EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT
Department of Housing and Community Development
7004-8016For the Smart Growth Housing Trust Fund established by section 35AA of chapter 10 of the General Laws ……………………………………………… $7,500,000
SECTION 2C.
EXECUTIVE OFFICE OF EDUCATION
Office of the Secretary
7009-2005For a competitive grant program to be administered by the executive office of education, in consultation with the executive office of housing and economic development and the executive office of labor and workforce development, to provide funding for the purchase and installation of equipment, and any related improvements and renovations to facilities necessary for the installation and use of such equipment, for the purpose of establishing, upgrading and expanding career technical education and training programs that are aligned to regional economic and workforce development priorities; provided further, that grant applications may facilitate collaboration to provide students enrolled in eligible vocational-technical schools with post-secondary opportunities, consistent with clause (o) the first paragraph of section 22 of chapter 15A and section 37A of chapter 74 of the General Laws; provided further, that innovation centers that receive funds from the Massachusetts Life Sciences Center shall also be eligible for funds from this program; and provided further, that the executive office of education, in consultation with the executive office of housing and economic development and the executive office of labor and workforce development, shall adopt additional guidelines as necessary for the administration of the program………………………..…….. $45,000,000
7009-2006 For competitive grants to cities, towns, regional school districts and institutions of public higher education, including state and municipal colleges and universities, for capital investments to support the establishment and implementation of early college high school programs, which may include but need not be limited to design, engineering and construction costs to create or improve facilities, equipment costs, or information technology costs associated with said programs; provided, that the programs shall support students who work simultaneously on the completion of a high school diploma from the partnering school district while also earning free college credits towards an associate degree or certificate at the partnering institution of higher education; provided further, that the programs shall provide full access to college support services, student activities and tutoring and shall ensure holistic wrap-around support which meets the academic, social and emotional needs of the student and shall ensure full access to the same for students with physical or learning disabilities; provided further, that in awarding these grants, preference shall be given to innovative joint proposals, developed by partnering school districts, colleges and local and regional nonprofits where appropriate; and provided further, that the grants shall be awarded, to the extent feasible, in a manner that reflects geographic and demographic diversity……….………………………………..$2,400,000
MASSACHUSETTS DEPARTMENT OF TRANSPORTATION
Office of the Secretary
6720-1340 To mitigate or contribute toward any costs associated with or arising out of improvements to the Conley Terminal in South Boston for the purposes of accommodating mega ships for the continued competitiveness of the Terminal, including, but not limited to, berth construction and crane procurement; provided, that the secretary, in coordination with the chief executive officer of the Massachusetts Port Authority, shall seek to maximize federal funds and reimbursement to offset, to the extent feasible, costs incurred under this item ……..$107,500,000
SECTION 3. Section 18 of chapter 21A of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in line 269, the figure “3D” and inserting in place thereof the following figure:- 3G.
SECTION 4. Section 2 of chapter 21E of the General Laws, as so appearing, is hereby amended by striking out, in line 80, the figure “3D” and inserting in place thereof the following figure:- 3G.
SECTION 5. Chapter 23A of the General Laws, as so appearing, is hereby amended by striking out sections 3A to 3G inclusive and inserting in place thereof the following 9 sections:-
Section 3A.(a)The Economic Development Incentive Program shall be administered by the EACC, under the oversight of the secretary of housing and economic development, to provide incentives that stimulate job creation and investment of private capital and to promote economic growth and expand economic opportunity to all areas of the commonwealth. EDIP tax credits and other incentives shall be administered to stimulate job creation, attract new business activity and promote investment that would not otherwise occur in the commonwealth.
(b)As used in sections 3A to 3H, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“Affiliate”, any business which directly or indirectly controls another business, is controlled by another business, or is under direct or indirect common control of at least 1 other business, including, but without limitation, any business with whom a business is merged or consolidated, or which purchases all or substantially all of the assets of a business.
“Business”, a corporation, partnership, firm, unincorporated association or other entity engaging or proposing to engage in economic activity within the commonwealth, and any affiliate thereof, which is subject to taxation under chapter 62 or chapter 63.
“Certified project”, a proposed project that is certified by the EACC pursuant to section 3C.
“Controlling business”, a business that owns, leases or has the power to direct the operation or management of all or a portion of a facility at which the business employs, or intends to employ, permanent full-time employees.
“EACC”, the economic assistance coordinating council established pursuant to section 3B.
“EDIP contract”, a written and enforceable agreement between MOBD and the recipient of EDIP tax credits setting forth the amount of credits awarded, the schedule on which the credits may be claimed, any restriction on the carryover of unused credits, the consequences for failing to produce the projected new jobs or new investment, and such other terms and conditions as MOBD may in its discretion require.
“EDIP tax credits”, the tax credits authorized by the EACC pursuant to section 3D and claimed by a taxpayer pursuant to subsection (g) of section (6) of chapter 62 or section 38N of chapter 63.
“Expansion of an existing facility”, the relocation of business functions and employees from one location in the commonwealth to another location in the commonwealth, or the expansion of an existing facility located in the commonwealth, provided that such relocation or expansion results in a net increase in the number of permanent full-time employees at the relocated or expanded facility.
“Facility”, the real property, which may include multiple buildings or locations, owned or leased, on which a business is undertaking or will undertake a commercial, manufacturing or industrial activity.
“Gateway municipality”, a municipality with a population greater than 35,000 and less than 250,000, a median household income below the commonwealth’s average and a rate of educational attainment of a bachelor’s degree or above that is below the commonwealth’s average.
“Material non-compliance”, the failure of a controlling business to substantially achieve the capital investment, job creation, job retention or other economic benefits set forth in the EDIP contract, or any other act, omission or misrepresentation by the controlling business that frustrates the public purpose of the economic development incentive program.
“MOBD”, the Massachusetts office of business development established in section 1.
“Municipal project endorsement”, an endorsement, by vote of the city council with the approval of the mayor, in a city, and by vote of the board of selectmen, in a town, of a proposed project by the municipality in which a proposed project will be located, which must include: (i) a finding by the municipality that the proposed project is consistent with the municipality’s economic development objectives; (ii) a finding by the municipality that the proponent of the proposed project has the means to undertake and complete the proposed project; (iii) a finding by the municipality that the proposed project will have a reasonable chance of increasing or retaining employment opportunities as advanced in the proposal; (iv) a determination by the municipality that the proposed project will not overburden the municipality’s infrastructure and other supporting resources; and (v) a description of the local tax incentive, if any, offered by the municipality in support of the proposed project, together with a copy of the fully executed tax increment financing agreement or the fully executed agreement setting forth the terms of the special tax assessment, as applicable.
“Municipality”, a city or town in the commonwealth or, in a case in which 2 or more cities or towns agree to act jointly for some purpose hereunder pursuant to a collaborative agreement, collectively, all cities and towns participating in the collaborative agreement.
“Permanent full-time employee”, an individual who is paid wages by a controlling business and who: (i) at the inception of the employment relationship does not have a termination date which is either a date certain or determined with reference to the completion of some specified scope of work; (ii) works at least 35 hours per week; and (iii) receives employee benefits at least equal to those provided to other full-time employees of the controlling business. For purposes of this chapter, the term permanent full-time employee shall not include any contractors or part-time employees who may be included in a calculation of the controlling business’s full-time equivalent workforce.
“Proportion of compliance”, a fraction which has as its numerator the number of actual permanent full-time employees at a facility and which has as its denominator the number of permanent full-time employees required to be employed at the facility under the terms of an EDIP contract.
“Proposed project”, a proposal submitted by a controlling business to the EACC for designation as a certified project.
“Real estate project”, the construction, rehabilitation or improvement of 1 or more buildings or other structures on a parcel of real property, which, when completed, will result in an increase in the assessed value of the real property of at least 100 per cent over the assessed value of said real property prior to the project.
“Refundable credit”, a tax credit awarded pursuant to this chapter that is not limited by the amount of the controlling business’s tax liability and which may result in a payment from the department of revenue to the controlling business.
“Replacement of an existing facility”, the relocation of business functions and personnel from 1 facility located in the commonwealth to another facility in the commonwealth, or the improvement of an existing facility; provided that such relocation or improvement does not qualify as an expansion of the existing facility.
“Special tax assessment”, a temporary reduction in real property tax offered by a municipality and approved by the EACC in accordance with subsection (c) of section 3E.
“Tax increment financing agreement”, a binding agreement between a municipality and a real property owner consistent with the requirements of subsection (b) of section 3E, and with section 59 of chapter 40.
“TIF”, tax increment financing.
Section 3B. (a) There shall be an economic assistance coordinating council established within MOBD consisting of: the secretary of housing and economic development or the secretary’s designee, who shall serve as co-chairperson; the director of housing and community development or a designee, who shall serve as co-chairperson; a second person designated by the secretary of housing and economic development; the director of career services or a designee; the secretary of labor and workforce development or a designee; the director of the office of business development or a designee; the president of the Commonwealth Corporation or a designee; and 7 persons to be appointed by the governor, 1 of whom shall be from the western region of the commonwealth, 1 of whom shall be from the central region of the commonwealth, 1 of whom shall be from the eastern region of the commonwealth, 1 of whom shall be from the southeastern region of the commonwealth, 1 of whom shall be from Cape Cod or the Islands, 1 of whom shall be a representative of a higher educational institution within the commonwealth and 1 of whom shall be from the Merrimack Valley. Persons appointed by the governor shall have expertise in issues pertaining to training, business relocation or inner-city and rural development, and shall be knowledgeable in public policy or international and state economic and industrial trends. Each member appointed by the governor shall serve at the pleasure of the governor. The council shall adopt by-laws to govern its affairs.
(b) The EACC shall administer the economic development incentive program and, in so doing, shall be empowered to exercise the following powers and duties:
(1) promulgate regulations and adopt policies and guidance to effectuate the purposes of sections 3A to 3H, inclusive;
(2) certify projects for participation in the economic development incentive program and establish regulations for evaluating the proposals of said projects;
(3) certify and approve tax increment financing agreements and special tax assessments pursuant to section 3E and section 59 of chapter 40;
(4)authorize municipalities to apply to the foreign trade zone board for the privilege of establishing, operating and maintaining a foreign trade zone in accordance with section 3G;
(5) assist municipalities in obtaining state and federal resources and assistance for certified projects and other job creation and retention opportunities within the commonwealth;
(6) provide appropriate coordination with other state programs, agencies, authorities and public instrumentalities to enable certified projects and other job creation and retention opportunities to be more effectively promoted by the commonwealth; and
(7) monitor the implementation of the economic development incentive program.
(c) The secretary of housing and economic development shall appoint within MOBD a director of economic assistance who shall be responsible for administering the EDIP in consultation with the secretary of housing and economic development, the director of MOBD and the EACC. The director of economic assistance shall advise the EACC on matters related to the EDIP, but shall not serve as a member of the EACC. MOBD shall annually submit to the governor, the senate and the house ways and means committees, and the joint committee on economic development and emerging technologies, within 90 days after the end of its fiscal year, a report setting forth its operations and accomplishments, including a listing of all projects certified under the EDIP. Such report shall also include recommended policies or actions, if any, to improve the effectiveness of the EDIP.
Section 3C.(a)A controlling business may petition the EACC to certify a proposed project that will create new permanent full-time employees within the commonwealth. Every proposed project submitted by a controlling business to the EACC for review and certification shall include a detailed description of the proposed project; a representation by the controlling business regarding the amount of capital investment to be made, the number of new jobs to be created, the number of existing jobs to be retained; a representation by the controlling business regarding any other economic benefits or other public benefits expected to result from the construction of the proposed project; a municipal project endorsement; and such other information as the EACC shall require by regulation, policy or guidance.
(b)Upon receipt of a complete project proposal and municipal project endorsement, the EACC may certify the proposed project, deny certification of the proposed project, or certify the proposed project with conditions. In order to certify a proposed project, with or without conditions, the EACC shall make the following required findings based on the project proposal, the municipal project endorsement, and such additional investigation, if any, as the EACC shall make and incorporate in its minutes:
(1)The proposed project is located or will be located within the commonwealth;
(2)If the controlling business has 1 or more existing facilities in the commonwealth, then the proposed project is an expansion of an existing facility and not merely the replacement of an existing facility, except in the case of a proposed project that will enable a controlling business to retain jobs in a gateway city as provided in subclause (ii) of clause (3) below, or
(3)The proposed project will either (i) enable the controlling business to hire new permanent full-time employees in the commonwealth, or (ii) enable the controlling business to retain at least 50 permanent full-time jobs at a facility located in a gateway city, or in an adjacent city or town that is accessible by public transportation to residents of a gateway city, and such jobs otherwise would be relocated outside of the commonwealth;
(4) The controlling business shall commit to maintain new and retained jobs for a period of at least 5 years after the completion of the proposed project;
(5)The proposed project appears to be economically feasible, and the controlling business has the financial and other means to undertake and complete the proposed project,
(6)Unless the proposed project will be located in a gateway municipality, a duly authorized representative of the controlling business has certified to the EACC that the controlling business would not undertake the proposed project but for the EDIP tax credits and local tax incentives available to it under this chapter; and
(7)The proposed project complies with all applicable statutory requirements and with such other criteria that the EACC may from time to time prescribe by regulation, policy or guidance.
The EACC shall by regulation, policy or guidelines provide for the contents of an application for project certification, which may include a requirement that the controlling business provide written evidence to support the certification provided for in clause (6) of this subsection.
(c)A certified project shall retain its certification for the period specified by the EACC in its certification decision; provided, however, that such specified period shall be not less than 5 years from the date of certification nor more than 20 years from such date.
Section 3D. (a)The EACC may award to the controlling business of a certified project, or to its affiliate, tax credits available under subsection (g) of section 6 of chapter 62 or section 38N of chapter 63. The amount of any such credits awarded, and the schedule on which such credits may be claimed, shall be determined by the EACC based on the following criteria:
(1) The degree to which the certified project is expected to increase employment opportunities for residents of the commonwealth, with consideration given to the number of new full-time jobs to be created, the number of full-time jobs to be retained, the salary or other compensation that will be paid to the employees, and the amount of new state income tax to be generated;
(2)The timeframe within which new jobs will be created and the commitment of the controlling business for how long they will be maintained, with preference given to certified projects in which a significant portion of the new jobs shall be created within 2 years;
(3)The amount of capital to be invested by the controlling business in the certified project;
(4) The degree to which the certified project is expected to generate net new economic activity within the commonwealth by generating substantial sales from outside of the commonwealth;
(5)The extent to which the certified project is expected to contribute to the economic revitalization of a gateway municipality or increase employment opportunities to residents of a gateway municipality;
(6) The economic need of the municipality or region in which the certified project is located, as determined by income levels, employment levels or educational attainment level; and
(7)Commitments, if any, made by the controlling business to use Massachusetts firms, suppliers and vendors, or to retain women or minority-owned businesses, during the construction of the certified project.
The EACC shall have discretion as to how to weigh and apply these criteria. When making an award of tax credits pursuant to subsection (g) of section 6 of chapter 62 and section 38N of chapter 63, the EACC may at its sole discretion limit the award to a specific dollar amount, may specify the schedule on which such credits may be claimed, and may limit or restrict the right of the controlling business to carry unused credits forward to future tax years. When a controlling business expects that new jobs will be created over a period of multiple years, the EACC award of tax credits may allocate and make such credits available to the taxpayer on a schedule that ensures credits are claimed on or after the date that the jobs are created.
(b)The EACC may grant refundable credits to a certified project; provided that the EACC shall not authorize more than $5,000,000 in refundable credits for any single calendar year.
(c)The total amount of credits that may be authorized by the EACC under this section for any single calendar year shall not exceed $30,000,000, to be calculated in accordance with the relevant provisions of subsection (g) of section 6 of chapter 62 and section 38N of chapter 63. The EACC may authorize an award of credits to a controlling business that spans multiple years so long as the total amount of credits due to be taken in any single calendar year does not exceed the applicable cap.
(d)MOBD shall require the recipient of tax credits awarded pursuant to this section to execute an EDIP contract after the EACC awards tax credits under this section.
(e)The decision by the EACC to certify or deny certification to a proposed project pursuant to section 3C, and the decision by the EACC to award or deny tax credits to the controlling business of a certified project pursuant to this section, including without limitation the amount of such award, and any conditions or limitations on such award, shall be decisions that are within the sole discretion of the EACC. Such decisions by the EACC shall be final and shall not be subject to administrative appeal or judicial review under chapter 30A or give rise to any other cause of action or legal or equitable claim or remedy.
Section 3E. (a) A municipality may offer a local tax incentive to the owner or controlling business of a certified project, or to the owner of a real estate project, if the municipality determines such project is consistent with the municipality’s economic development objectives and is likely to increase or retain employment opportunities for residents of the municipality.
(b)Tax increment financing may be offered by a municipality in accordance with section 59 of chapter 40 to the controlling business of a certified project, or to any person or entity undertaking a real estate project, or to any person or entity expanding a facility in an area designated by the EACC as a TIF-eligible area. The EACC may designate an area as a TIF-eligible area if it finds, upon petition from the municipality, that there is a strong likelihood that any of the following will occur within the area in question within a specific and reasonably proximate period of time: (i) a significant influx or growth in business activity; (ii) the creation of a significant number of new jobs and not merely a replacement or relocation of current jobs within the commonwealth; or (iii) a private project or investment that will contribute significantly to the resiliency of the local economy.
If a municipality offers tax increment financing to the owner of a certified project, the municipal project endorsement for said certified project shall include a fully executed copy of the tax increment financing agreement adopted in accordance with section 59 of chapter 40. Any tax increment financing agreement shall be approved by the EACC before it shall be valid and enforceable. The EACC may approve such tax increment financing agreement pursuant to regulations adopted by the EACC. Any such approval shall include a finding, reflected in the EACC’s minutes, that the tax increment financing agreement complies with said section 59 of said chapter 40 and will further the public purpose of encouraging increased industrial and commercial activity in the commonwealth.
(c)A municipality may offer a special tax assessment to the controlling business of a certified project, or to a person or entity undertaking a real estate project, or to a person or entity proposing to retain permanent full-time jobs at a facility that otherwise would be at risk of relocating outside of the commonwealth. Any special tax assessment shall be set forth in a written agreement between the municipality and the property owner. Such agreement shall set forth the amount of the tax reduction and the period of time over which such reduction shall be in effect, which shall be not fewer than 5 years or more than 20 years. Every special tax assessment approved by the EACC shall provide for a reduction of the real property tax that otherwise would be due based on a percentage reduction in the tax that otherwise would be due based on the full assessed value of the affected property. The special tax assessment shall provide for tax reduction at least equal to the following:
(1)in the first year, the tax reduction shall be at least 50 per cent of the tax that would be due based on the full assessed value of the affected property;
(2)in the second and third years, the tax reduction shall be at least 25 per cent of the tax that would be due based on the full assessed value of the affected property;
(3)in the fourth and fifth years, the tax reduction shall be at least 5 per cent of the tax that would be due based on the full assessed value of the affected property.
The municipality may at its discretion provide for greater real property tax reductions than provided in clauses (1) to (3) above.
The written agreement required by the first paragraph of this subsection shall be approved by the EACC before it shall be valid and enforceable. The EACC may approve such special tax assessments pursuant to rules or regulations adopted by the EACC if the EACC determines that: (i) the municipality has made a formal determination that the property owner is either undertaking a project or making other investment that will contribute to economic revitalization of the municipality and will significantly increase employment opportunities for residents of the municipality, or is retaining permanent full-time employees that otherwise would be relocated to a facility outside the commonwealth; (ii) the special tax assessment is reasonably necessary to enable the owner’s investment in the project or to retain the jobs that otherwise would be relocated; and (iii) the total amount of local tax foregone is reasonably proportionate to the public benefits resulting from the special tax assessment. Any such approval shall include a finding, reflected in the EACC’s minutes, that the special tax assessment complies with the requirements of this section.
(d)Any tax increment financing agreement or special tax assessment approved by the EACC may not be amended without the approval of the EACC.
Section 3F. (a)No later than 2 years after the initial certification of a project by the EACC, and annually thereafter, the controlling business or affiliate awarded EDIP tax credits shall file with MOBD a report, signed by an authorized representative of the controlling business or affiliate, certifying whether the controlling business or affiliate has achieved the job creation projections, job retention projections and other material obligations or representations set forth in the EDIP contract.
(b)In the event that MOBD shall find that a controlling business or an affiliate is in material non-compliance with a representation made to the EACC in its application for project certification or the obligations set forth in an EDIP contract, MOBD may recommend to the EACC that it revoke the project certification. Prior to making such recommendation, MOBD shall provide written notice to the controlling business stating the basis for the recommended revocation and offering the controlling business an opportunity for a hearing at which the controlling business may contest the basis for the recommendation or establish mitigating circumstances which may be relevant to the recommendation.
(c)The EACC may revoke a project certification if it determines that a controlling business or affiliate is in material non-compliance with a representation made in its application for project certification or the obligations set forth in an EDIP contract. The EACC shall have the discretion to determine whether material non-compliance shall result in revocation of a project certification, taking into account:
(1)the conduct of the controlling business subsequent to the project certification;
(2)the extent to which the material non-compliance is the result of unforeseen conditions that are outside the control of the controlling business;
(3)the potential impact on the municipality in which the certified project is located; and
(4)such other considerations as the EACC shall establish by regulation or policy.
Where the EACC determines that material non-compliance is due to factors outside the control of the controlling business, the EACC may elect to provide the controlling business with reasonable opportunity to cure the material non-compliance. If the EACC revokes a project’s certification, it shall determine the proportion of compliance with job creation requirements applicable to the certified project, and shall report the proportion of compliance to the controlling business and to the department of revenue.
(d)Revocation of a project certification shall take effect on the first day of the tax year in which the material non-compliance occurred, as determined by the EACC. If the EACC revokes a project certification, then: (i) all EDIP tax credits available to the controlling business shall be recaptured in accordance with subsection (g) of section 6 of chapter 62 and subsection (i) of section 38N of chapter 63; and (ii) the local tax incentive, if any, shall terminate unless the written agreements between the municipality and the controlling business provide otherwise. In the event of such termination, the municipality may, at its discretion, preserve the local tax incentive by amending the written agreement with the controlling business in the same manner as the municipality approved it, and submitting such amendment to the EACC for approval in accordance with this section.
(e)If a controlling business has claimed tax credits awarded under this chapter prior to the date on which the EACC makes a determination to revoke project certification, then the recapture provisions of subsection (g) of section 6 of chapter 62 and subsection (i) of section 38N of chapter 63 shall apply. If a controlling business has benefited from a local tax incentive under this chapter prior to the revocation of a project certification, then notwithstanding any provision of the general laws to the contrary, the municipality that offered the local tax incentive may recapture the value of the tax not paid by making a special assessment on the controlling business in the tax year that follows the EACC’s decision to revoke project certification. The assessment, payment and collection of the special assessment shall be governed by procedures provided for the taxation of omitted property under section 75 of chapter 59 notwithstanding the time period set forth in said chapter 59 for which omitted property assessments may be imposed for each of the fiscal years included in the special assessment.
Section 3G. (a)The EACC may designate 1 or more areas of the commonwealth as an economic target area or economic opportunity area in connection with an application from a municipality seeking such designation under the federal empowerment zones and enterprise communities program, so called, or other local, state or federal programs that contemplate such designations. Designations of new economic target areas, if any, shall be made in accordance with the criteria set forth in subsection (b). Designations of new economic opportunity areas, if any, shall be made at the discretion of the EACC in accordance with regulations to be promulgated by the EACC, or rules or policies adopted by the EACC.
(b)The EACC may from time to time designate as an economic target area an area of the commonwealth comprised of 3 or more contiguous census tracts or 1 or more contiguous municipalities, provided that the area proposed for designation meets 1 of the following criteria:
(1) the proposed economic target area has an unemployment rate that exceeds the statewide average by at least 25 per cent;
(2)if the proposed economic target area is located in a metropolitan area, then at least 51 per cent of the households in the proposed economic target area have incomes that are below 80 per cent of the median income for households in the metropolitan area;
(3)if the proposed economic target area is not located in a metropolitan area, then at least 51 per cent of the households in the proposed economic target area have incomes that are below 80 per cent of the median income for households in the commonwealth;
(4)the proposed economic target area has a poverty rate which is at least 20 per cent higher than the average poverty rate for the commonwealth;
(5)the area proposed for designation has heightened economic need due to: (i) an industrial or military base closure; (ii) the presence of underutilized maritime or electric generation facilities; or (iii) a commercial vacancy rate exceeding 20 per cent; or
(6) the area proposed for designation has exceptional potential for economic development as a result of: (i) the proposed redevelopment of blighted real estate or abandoned buildings totaling at least 1,000,000 square feet; (ii) the proposed establishment of a regional technology center of 3,000,000 or more square feet; or (iii) the proposed development of a Class I renewable energy generating facility.
(c)Any municipality which contains an economic opportunity may make application to the foreign trade zone board in accordance with 19 U.S.C. sections 81(a) to 81(u), inclusive, for a grant to said city or town for the privilege of establishing, operating and maintaining a foreign trade zone within its economic opportunity area. Upon petition from a city or town, the EACC may authorize any other city or town to make application to said foreign trade zone board for a grant to said city or town for the privilege of establishing, operating and maintaining a foreign trade zone.
SECTION 6. Subsection (a) of section 3J of said chapter 23A, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-
The Massachusetts office of business development shall establish a plan to support regionally-based efforts to grow and retain existing businesses and attract new business to the commonwealth. To implement the regional plan and to provide efficient and consistent response to businesses seeking assistance from the commonwealth, the office shall contract with regional economic development organizations, as defined in section 3K. The contracts and reimbursements shall be designed to support regionally-based efforts to stimulate, encourage, facilitate and nurture economic growth and prosperity in the commonwealth, including, but not limited to, the identification of regional competitive strengths, challenges and opportunities, regional cluster development strategies, long-range regional skills pipeline, transportation and land use planning, and other systems-based activities related to the growth and retention of existing businesses and the attraction of new businesses into the commonwealth. The contracts shall support a network of partnerships between regional economic development organizations and the Massachusetts office of business development.
SECTION 7. Chapter 7 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after Section 23B the following new section:-
Section 23B ½. For the purposes of this chapter, it shall be the official goal of the Commonwealth to achieve minority business enterprise and women business enterprise contracting goals within state procurement that are reflective of the diverse racial, ethnic, and gender make-up of the Commonwealth’s population.
SECTION 8. Said section 3J of said chapter 23A, as so appearing, is hereby further amended by striking out subsection (c) and inserting in place thereof the following subsection:-
(c) Contracts for services entered into under this section shall include, but not be limited to, the following services to be performed by the organization on behalf of the commonwealth: (i) assess regional competitive strengths, weaknesses and opportunities; (ii) represent the regional business community in long-range skills pipeline planning efforts to ensure robust skills and talent pipelines that meet regional needs; (iii) represent the regional business community in collaborative, long-range skills, transportation and land use planning; (iv) promote regionally significant industry clusters; (v) promote connections across sectors of the regional economy; (vi) maintain an inventory of key development parcels; (vii) market the region in coordination with the Massachusetts marketing partnership established under section 13A; and (viii) furnish advice and assistance to businesses and industrial prospects which may locate in the region.
SECTION 9. Section 63 of chapter 23A, of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting at the end of subsection (b) the following:-
Any project that receives EDIP tax credits as defined by Section 3A shall be ineligible to receive funding under this section, for the length of the project’s EDIP tax credit certification.
SECTION 10. Said Section 63 of Chapter 23A of the General Laws, so appearing, is further amended by inserting, in line 40, after the figure “(e)”, the words:- ; provided however that not less than 10 days prior to making such grants the secretary shall notify the clerks of the house of representatives and the senate, who shall forward such notice to the chairs of the senate and house committees on ways and means, of the intent to make a grant outside of the open solicitation period
SECTION 11. Said Section 63 of Chapter 23A, as so appearing, is further amended by inserting, in line 79, after the word “all”, the following words :- “applications, a list and description of all”.
SECTION 12. Section 65 of chapter 23A of the General Laws, added by section 12 of chapter 286 of the acts of 2014, is hereby amended by striking subjection (j) and inserting in place thereof the following subsection:-
(j) The department shall consult with the Massachusetts department of agricultural resources in the development and implementation of the Massachusetts food trust program. To the maximum extent feasible, a community development financial institution and the department shall seek to align efforts with the recommendations of the Massachusetts local food action plan accepted by the Massachusetts food policy council in 2015, or subsequent plans accepted by said council.
SECTION 13. Subsection (c) of section 5 of chapter 23G of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-
(1) that the loan is to be secured by a mortgage or security interest in, real or personal property, or a combination thereof, deemed satisfactory to the board;
SECTION 14. Said subsection (c) of said section 5 of said chapter 23G, as so appearing, is further amended by striking out paragraph (8) and inserting in place thereof the following paragraph:-
(8) that the principal amount of the loan, excluding any portion thereof the proceeds of which are to fund reserves and disregarding any other funds or other arrangements obtained for reserve purposes, does not exceed the value of the sum of all assets securing the loan as determined by the agency;
SECTION 15. Section 7 of chapter 23G of the General Laws, as so appearing, is hereby amended by striking out, in line 31, the figure “$500,000” and inserting in place thereof the following figure:- $1,000,000.
SECTION 16. Section 8 of chapter 23H of the General Laws, as so appearing, is hereby amended by striking out, in lines 7 to 8, the words “persons residing in economic opportunity areas,”.
SECTION 17. Section 5 of chapter 23I of the General Laws, as so appearing, is hereby amended by striking out, in line 69, the words “in an economic opportunity area pursuant to section 3F” and inserting in place thereof the following words:- as defined in section 3A.
SECTION 18. Section 49 of chapter 23K of the General Laws, as so appearing, is hereby amended by striking out in line 3, the figure “3F” and inserting in place thereof the following figure:- 3C.
SECTION 19. Said section 49 of said chapter 23K, as so appearing, is hereby further amended by striking out, in line 5, the figure “3E” and inserting in place thereof the following figure:- 3G.
SECTION 20. Said section 49 of said chapter 23K, as so appearing, is hereby further amended by striking out, in lines 25 to 26, the words, “the economic opportunity area” and inserting in place thereof the following words:- EDIP tax credit
SECTION 21. Section 59 of chapter 40 of the General Laws, as so appearing, is hereby amended by striking out, in lines 11 to 15, the words “an economic target area or an area presenting exceptional opportunities for increased economic development, as defined by section 3D of chapter 23A and as may be defined further by regulations adopted by the economic assistance coordinating council” and inserting in place thereof the following words:- an economic target area as defined in section 3G of chapter 23A, or an area designated by the economic assistance coordinating council as a TIF-eligible area pursuant to subsection (b) of section 3E of said chapter 23A.
SECTION 22. Said section 59 of said chapter 40, as so appearing, is hereby further amended by striking out, in lines 84 and 88, the figure “3F” and inserting in place thereof, in each instance, the figure:- 3E.
SECTION 23. Section 60 of said chapter 40, as so appearing, is hereby amended by striking out, in lines 5 to 7, the words “the director of housing and community development, in consultation with the department of economic development and” and inserting in place thereof the following words:- the department of housing and community development, in consultation with.
SECTION 24. Said section 60 of chapter 40, as so appearing, is hereby further amended by striking out, in lines 15 to 18, the words “characterized by a predominance of commercial land uses, a high daytime or business population, a high concentration of daytime traffic and parking” and inserting in place thereof the following words:- located within an area of concentrated development characterized by a predominance of commercial land uses.
SECTION 25. Subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out clause (ii) and inserting in place thereof the following clause:-
(ii) describe the construction, reconstruction, rehabilitation and related activities, public and private, contemplated for such UCH-TIF zone as of the date of the adoption of the UCH-TIF plan; provided, however, that in the case of public construction as aforesaid, the UCH-TIF plan shall include a detailed projection of the costs and a betterment schedule for the defrayal of such costs; provided further, that the UCH-TIF plan shall provide that no costs of such public construction shall be recovered through betterments or special assessments imposed on a party which has not executed an UCH-TIF agreement in accordance with clause (v); and provided, further, that in the case of private construction as aforesaid, the UCH-TIF plan shall include the types of affordable housing and residential and commercial growth which are projected to occur within such UCH-TIF zone together with such documentary evidence of the projected public benefits as are required by the regulations;
SECTION 26. Clause (iii) of subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out subclause (1)-(3), inclusive, and inserting in place thereof the following subclause:-
(1)the numerator of which shall be:
In an UCH-TIF zone where the property includes primarily residential uses, the total assessed value of all parcels of all residential real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment factor for the current fiscal year attributable to the residential real estate as determined by the commissioner of revenue pursuant to paragraph (f) of section 21C of said chapter 59; or
In an UCH-TIF zone where the property includes a mix of residential and commercial uses, the total assessed value of all parcels of all residential and commercial real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment factor for the current fiscal year attributable to the residential and commercial real estate as determined by the commissioner of revenue pursuant to said paragraph (f) of said section 21C of said chapter 59; and
(2) the denominator of which shall be the total assessed value for the preceding fiscal year of all the parcels included in the numerator; provided, however, that such ratio should not be less than 1.
SECTION 27. Subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out clause (v) and inserting in place thereof the following clause:-
(v) state that each owner of property located in an UCH-TIF zone seeking to establish eligibility for tax increment exemptions from annual property taxes pursuant to clause (iii) shall execute an agreement, hereinafter referred to as an UCH-TIF agreement, with the city or town, the form of which shall be included as an attachment to the UCH-TIF plan. The UCH-TIF agreement shall include, but not be limited to, the following: (1) all material representations of the parties which served as a basis for the granting of a UCH-TIF exemption; (2) any terms deemed appropriate by the city or town relative to compliance with the UCH-TIF agreement including, but not limited to, what shall constitute a default by the property owner and what remedies shall be allowed between the parties for any such defaults, including an early termination of the agreement; (3) provisions requiring that one of the affordability thresholds described in subsection (b) is met; (4) provisions stating that housing units that meet the affordability requirements of subsection (b) shall be subject to use restrictions as defined in this section; (5) a detailed recitation of the tax increment exemptions and the maximum percentage of the cost of public improvements that can be recovered through betterments or special assessments regarding a parcel of real property pursuant to clauses (iii) and (iv); (6) a detailed recitation of all other benefits and responsibilities inuring to and assumed by the parties to an agreement; and (7) a provision that the agreement shall be binding upon subsequent owners of the parcel of real property; and
SECTION 28. Said section 60 of said chapter 40, as so appearing, is hereby further amended by striking out subsections (b) to (e), inclusive, and inserting in place thereof the following 5 subsections:-
(b)As a condition of the granting of an UCH-TIF exemption, a property owner must satisfy 1 of the following affordability thresholds:
(i)At least 15 per cent of the housing units assisted by the UCH-TIF agreement shall be affordable to occupants or families with incomes at or below 80 per cent of the area median income where the city or town is located, as defined by the United States Department of Housing and Urban Development, hereinafter referred to as AMI; or
(ii)At least 25 per cent of the housing units assisted by the UCH-TIF agreement shall be affordable to occupants or families with incomes at or below 110 per cent of the AMI; or
(iii)The property shall satisfy the requirements of an existing inclusionary zoning ordinance or by-law in the city or town, under which the property owner is required to make a portion of the housing units assisted by the UCH-TIF agreement affordable to low- and moderate-income households.
In addition, to support a finding of public benefit based on residential and commercial growth in an urban center, at least one of the following conditions must be met:
(i) The UCH-TIF zone has either: (1) an unemployment rate that exceeds the statewide average by at least 25 per cent, (2) a commercial vacancy rate of 15 per cent or more; or (3) an average household income below 115 per cent of the AMI;
(ii) At least 51% of the land area within the UCH-TIF zone is located within a qualified census tract, as defined in Section 42(d)(5) of the Internal Revenue Code; or
(iii) At least 51% of the land area within the UCH-TIF zone constitutes a: (1) blighted open area, (2) decadent area or (3) sub-standard area, as defined in section 1 of chapter 121A.
(c)The department of housing and community development shall review each UCH-TIF plan to determine whether it complies with the terms of this section and any regulations adopted by the department; provided further, that the department shall certify, based upon the information submitted in support of the UCH-TIF plan by the city or town and through such additional investigation as the department may make, that the plan is consistent with the requirements of this section and will further the public purpose of encouraging increased residential growth, affordable housing and commercial growth in the commonwealth; provided further, that a city or town may, at any time, revoke its designation of a UCH-TIF zone and, as a consequence of such revocation, shall immediately cease the execution of any additional agreements pursuant to clause (v) of subsection (a); provided, further, that a revocation shall not affect agreements relative to property tax exemptions and limitations on betterments and special assessments pursuant to said clause (v) of said subsection (a), use restrictions or options to purchase and rights of first refusal required by this section which were executed before the revocation.
(d)The board, agency, or officer of the city or town authorized pursuant to clause (vi) of said subsection (a) to execute UCH-TIF agreements shall submit each executed UCH-TIF agreement to the department of housing and community development for approval. The department shall, as a condition of such approval, certify that the UCH-TIF agreement complies with the terms of this section and furthers the public purpose of encouraging increased residential growth, affordable housing and commercial growth in the commonwealth. Upon receipt of the department’s certification, the board, agency or officer of the city or town authorized pursuant to said clause (vi) of said subsection (a) to execute UCH-TIF agreements shall forward to the board of assessors a copy of the approved UCH-TIF agreement, together with a list of the parcels included therein. An executed and approved UCH-TIF shall be recorded in the registry of deeds or the registry district of the land court wherein the land lies.
(e) Notwithstanding any other general or special law to the contrary, an affordable housing development that benefits from a real estate tax exemption pursuant to this section that meets the affordability requirements of subsection (b) and subclause (3) of clause (v) of subsection (a) shall continue to meet those requirements for 30 years or for the term of any municipal bonds issued to finance the construction, reconstruction or rehabilitation of such development, whichever is shorter as may be specified in the recorded restriction. Such restriction shall be approved by the department of housing and community development in accordance with section 32 of chapter 184 and shall be recorded in the registry of deeds or the registry district of the land court wherein the land lies.
(f)The owner of property subject to an UCH-TIF agreement shall certify to the city or town the incomes of the families or occupants, upon initial occupancy, of the affordable housing units designated in the UCH-TIF agreement and such certification shall be provided to the department of housing and community development on an annual basis. If the owner fails to provide certification or otherwise fails to comply with the UCH-TIF agreement, including failing to maintain the affordability of housing units assisted pursuant to this section, the city or town may place a lien on the property in the amount of the real estate tax exemptions granted pursuant to the UCH-TIF agreement for any year in which the owner is not in compliance with this subsection. If the city or town determines, with the approval of the department of housing and community development, that the owner is unlikely to come into compliance with the affordability requirements of said subsection (b) and said subclause (3) of said clause (v) of said subsection (a), the city or town may place a lien on the property in the amount of the total real estate tax exemption granted pursuant to the UCH-TIF agreement. Any such lien shall be recorded in the registry of deeds or the registry district of the land court wherein the land lies.
(g) For the purposes of this section an “area of concentrated development” shall be a center of commercial activity within a municipality, including town and city centers, other existing commercial districts in towns and cities and existing rural village districts.
SECTION 29. Section 4 of chapter 40G of the General Laws, as so appearing, is hereby amended by striking out, in line 85, the words “as defined in section 3D” and inserting in place thereof the following words:- designated pursuant to section 3G.
SECTION 30. Section 2 of chapter 40H of the General Laws, as so appearing, is hereby amended by striking out, in lines 59 to 60, the words “section 3D of chapter 23A” and inserting in place thereof the following words:- section 3G of chapter 23A, or meeting the criteria for such designation.
SECTION 31. Section 4G of chapter 40J of the General Laws, as so appearing, is hereby amended by striking out the figure “$3” in lines 19 and 24 and inserting in place thereof the following figure:- $1.
SECTION 32. Section 6D of said chapter 40J, as so appearing, is hereby amended by adding the following subsection:-
(g)The institute shall, in consultation with the secretary of housing and economic development and informal advisers from the public and private sectors, develop strategies and action plans to facilitate the continued development and accelerating growth of the e-health cluster in the commonwealth involving a range of products, services and systems at the intersection of medicine, healthcare and information technology, including without limitation: (1) electronic health records, (2) consumer wearable devices, (3) care systems, (4) payment management systems, (5) healthcare robotics, (6) telemedicine and (7) big data analytics, for the purpose of improving health care quality, reducing costs and supporting the expansion of economic opportunities for the citizens of the commonwealth. Without limiting the generality of the foregoing, the institute is authorized to: (i) develop a market access program connecting provider and payer needs with ideas and products through pilot programs, (ii) undertake a healthcare big data initiative designed to improve healthcare data transparency and availability, (iii) create opportunities for e-health cluster stakeholders, including investors, entrepreneurs and healthcare providers, to convene to exchange ideas and make connections, and (iv) encourage the adoption of open-source software principles, which may include recommendations toward the establishment of procurement rules such that major technology systems, platforms and products purchased by the state remain open for the development of third party end-user software and application designs that improve ease of access and utilization of said major technology systems. In furtherance of the purposes of this subsection, the institute shall coordinate and collaborate with such other commonwealth agencies, authorities and public instrumentalities as the secretary of housing and economic development may suggest and shall endeavor to identify moneys and resources that could be made available for such purposes. The corporation is authorized to expend moneys credited to the e-Health Institute Fund established in section 6E for the purposes of this subsection, without compliance with any further restrictions contained in section 6E, and to expend for such purposes any other moneys available to the corporation that are not otherwise expressly restricted by law.
SECTION 33. Section 1 of chapter 40V of the General Laws, as so appearing, is hereby amended by striking out the definition of “Certified housing development project”, and inserting in place thereof the following definition:-
“Certified housing development project”, the new construction or substantial rehabilitation of a housing development project that has been approved by the department for participation in the housing development incentive program.
SECTION 34. Said section 1 of said chapter 40V, as so appearing, is hereby further amended by striking out the definitions of “Market rate residential unit” and “Qualified substantial rehabilitation expenditure” and inserting in place thereof following 2 definitions:-
“Market rate residential unit”, a residential unit priced consistently with prevailing rents or sale prices in the municipality as determined based on criteria established by the department.
“Qualified project expenditure”, an expenditure directly related to the construction or substantial rehabilitation of a certified housing development project, including the cost of site assessment and remediation of hazardous materials, but excluding the purchase of the property, provided, that: (i) the department has certified that the proposed project meets the definition of certified housing development project; (ii) prior to construction, the department has certified that all or a portion of the project costs are for new construction or substantial rehabilitation; and (iii) after the construction of the project has been completed, the department has certified that the project has been completed in compliance with this chapter and the requirements and conditions of any prior certifications.
SECTION 35. Said section 1 of said chapter 40V, as so appearing, is hereby further amended by inserting after the words “property,”, in line 34, the following words:- including site assessment and remediation of hazardous materials, but.
SECTION 36. Section 4 of said chapter 40V, as so appearing, is hereby amended by striking out, in line 12, the words “is a” and inserting in place thereof the following words:- involves either new construction or.
SECTION 37. Said section 4 of said chapter 40V, as so appearing, is hereby further amended by striking out, in line 13, the word “approve” and inserting in place thereof the following word:- certify.
SECTION 38. Said section 4 of said chapter 40V, as so appearing, is hereby further amended by striking out, in line 35, the words “HDIP zone” and inserting in place thereof the following words:- HD zone.
SECTION 39. Said section 4 of said chapter 40V, as so appearing, is hereby further amended by inserting after the word “certified” in lines 44, 56, 57 and 83, in each instance, the following words:- housing development.
SECTION 40. Section 5 of said chapter 40V, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:-
The department may award, to a sponsor of a certified housing development project, tax credits available under subsection (q) of section 6 of chapter 62 and section 38BB of chapter 63 up to but not to exceed 25 per cent of the cost of qualified project expenditures allocable to the market rate units in the project, as determined by the department.
SECTION 41. Said section 5 of said chapter 40V, as so appearing, is hereby further amended by striking out the word “project” in lines 9, 13 and 15, each time it appears, and inserting in place thereof, in each instance, the following words:- certified housing development project.
SECTION 42. The General Laws are hereby amended by inserting after Chapter 40W, the following Chapter:-
CHAPTER 40X
COMMUNITY BENEFIT DISTRICTS
Section 1. Definitions
For the purposes of this chapter, the following words shall have the following meanings:
“CBD”, a Community Benefit District formed pursuant to this chapter, which is one or more geographic areas with clearly defined boundaries.
“CBD Corporation,” the non-profit corporation designated to receive funds and otherwise implement the purposes of the CBD. References herein to the CBD Corporation shall include its Board of Directors, officers and any employees.
“CBD Fee”, a payment for services or improvements specified by the Initial Management Plan and any Management Plan.
“Initial Management Plan”, the strategic and operating plan for the CBD as approved by the local municipal governing body as part of the creation of the CBD. A “Management Plan” is any subsequent, updated version of the Initial Management Plan and is a document that is approved by the Board of Directors.
“Memorandum of Understanding with the Municipality”, The MOU describes the standard government services and supplemental services to be provided within the CBD, and how the municipality will participate in the CBD as a property owner and member.
“Local municipal governing body”, the city council or board of aldermen in a city or the board of selectmen or town council in a town.
“Petition-signer”, a property owner, or their designee, within the CBD who affirmatively signs the petition to establish such CBD.
“Property”, any real property located within the CBD, whether commercial, tax-exempt or residential;
“Property owner”, the owner of record of property. When a property is owned by other than a natural person, a petition-signer for that property must include his or her title and aver authority to sign as owner. When a property is owned by multiple persons, the signature of one owner is sufficient if that owner avers authority to sign on behalf of the other owners.
“Standard government services”, governmental functions, programs, activities, facilities, improvements and other services which a municipality is authorized to perform or provide and paid for out of the local municipal government budget.
“Supplemental services”, the provision of programs, public rights of way services, activities, amenities, or information in addition to the standard governmental services provided to the CBD.
Section 2. Rights and Powers
The rights and powers of a CBD Corporation in a CBD approved by the municipal governing body shall include: retaining or recruiting business; administering and managing central and neighborhood business districts; promoting economic development; managing parking; designing, engineering, constructing, maintaining, or operating buildings, facilities, urban streetscapes or infrastructures to further economic development and public purposes; conducting historic preservation activities; leasing, owning, acquiring, or optioning real property; owning and managing parks, public spaces and community facilities; supplementing maintenance, security, or sanitation; planning and designing services; formulating a fee structure; accumulating interest; incurring costs or indebtedness; entering into contracts; suing and being sued; employing legal and accounting services; undertaking planning, feasibility and market analyses; developing common marketing and promotional activities; engaging in placemaking, programming, and event management within the district; soliciting donations, sponsorships, and grants; operating transit services; and supporting public art and human and environmental services as related to the enhancement of the district or other supplemental services or programs that would further the purposes of this chapter.
Section 3. Initiation of Organization; Contents of Petition
The organization of a CBD shall be initiated by a petition of the property owners within the proposed CBD which shall be filed in the office of the clerk of the municipality. Such petition shall contain:
(1) the signatures of the property owners (petition signers) in the proposed district who support the establishment of the district and who will pay more than fifty percent of the assessments proposed to be levied;
(2) a description of and a site map delineating the boundaries of the proposed CBD;
(3) the identity and address of the CBD Corporation, including its initial set of directors and officers and a copy of its bylaws;
(4) Initial Management Plan which shall set forth the supplemental services and programs, vision and strategy, and budget and fee structures proposed for the CBD;
(5) the criteria for waiving the fee for any property owner within the CBD who can provide evidence that the imposition of such fee would create a significant financial hardship; and
(6) a staffing plan, which may include private nonprofit, for-profit, or public agency contractors or subcontractors.
Such petition may include a mechanism for reimbursing the municipality for the costs incurred in establishing the CBD, and for costs incurred in collecting the district fees.
A copy of said petition shall be filed with the Director/Undersecretary of Housing and Community Development and the Secretary of Housing and Economic Development within thirty days of receipt of such petition by the clerk of the municipality
Section 4. Hearing on petition; declaration of organization; notice
The local municipal governing body shall hold a public hearing within sixty days of the receipt of a petition. Written notification of such hearing shall be sent to each property owner within the boundary of the proposed CBD at least thirty days prior to such hearing, by mailing notice to the address listed in the property tax records. Notification of the hearing shall also be published for two consecutive weeks in a newspaper of general circulation in the area at least fourteen days prior to such hearing and listed on the municipality’s website. Such public notice shall contain the proposed boundaries of the CBD, the proposed fee level, summary of supplemental programs and services and where the property owner may obtain a full copy of the Initial Management Plan.
Prior to the public hearing, the local municipal governing body shall direct the town clerk or city clerk or his or her designee to determine that the establishment criteria has been met as set forth in section Three. In determining whether a signature is authentic, the clerk shall apply the same standard used when certifying signatures for a petition to place a referendum on a local or state ballot.
Within forty-five days after the public hearing, a local municipal governing body, in its sole discretion, may by a vote declare the district organized and describe the boundaries and service area of the district. Such declaration shall include authorization to municipal staff to enter into an agreement with the CBD Corporation with respect to operations and funding consistent with the Initial Management Plan approved. Upon such declaration, the CBD may commence operations.
Notice of the declaration of the organization of the CBD shall be mailed or delivered to each property owner within the proposed CBD. The notice shall explain that membership in the CBD is irrevocable until the dissolution under section 10, and shall include a description of the basis for determining the district fee, the projected fee level and the services to be provided within the CBD. Such notice shall be published for 2 consecutive weeks in a newspaper of general circulation in the area, the last publication being not more than 30 days after the vote to declare the district organized.
Participation in the CBD shall be permanent until the dissolution of the CBD under section 10. All property owners, including public, private and nonprofit entities, shall participate, although each shall contribute based upon specified fee structures based upon the benefits anticipated to be received, as outlined in the Initial Management Plan.
Section 5. Board of Directors of the CBD Corporation
Each CBD Corporation shall have a non-profit Board of Directors that shall oversee its operations to insure the implementation of the Initial Management Plan and any Management Plan. At least 51% of the Board shall be composed of property owners or their designees, and the remaining members may be a balanced set of stakeholders representing the community, including residents, municipal government, business tenants , and nonprofits.
The Initial Management Plan shall be updated at least once every three years by the CBD Board of Directors, and a copy thereof shall be mailed, emailed, or delivered to each CBD member and filed with the local governing body.
The CBD Corporation shall conform with the Mass General Law Chapter 12 Section 8F in regards to nonprofit reporting requirements.
Section 6. Property included in the fee formula; waivers
All real property located within the proposed CBD shall be considered in the fee formula for the supplemental services and programs as outlined in the Initial Management Plan. The CBD Corporation, at its sole discretion, may grant a financial hardship waiver to any property owner, pursuant to the waiver criteria previously established within the CBD. Such waiver is not intended to be permanent and must be requested and granted on an annual basis and shall be based upon temporary, extraordinary circumstances. The CBD Corporation may also, at its discretion, approve in-kind contributions or services in addition to, or in lieu of, fees upon execution of a memorandum of agreement with a property owner.
Section 7. District fee structure
Upon formal approval of a CBD, the local municipal governing body shall adopt the district fee structure for the financing of items submitted in the Initial Management Plan for the CBD; provided, however, that the total fees assessed in any one year may not exceed one-half of one percent of the sum of the assessed valuation of the real property owned by participating members in the CBD district.
The basis of such district fee may be determined by a formula utilizing any one or a combination of the following:
(1) different levels for varying classifications of real property;
(2) benefit zones;
(3) assessed valuation;
(4) building or parcel square footage;
(5) street frontage; or
(6) any other formula which meets the objectives of the CBD.
The CBD, through its Management Plan, shall have the option to limit or cap the maximum annual fee derived from individual properties or the total annual revenue generated by the CBD.
The Initial Management Plan may also propose a “phase-in” period of up to three years, with assessments increasing over the stated period. The formula for determining the district fee structure shall be set forth in the original petition as required by section three.
The CBD may change the formula and/or the assessment level set forth in its Initial Management Plan (or updated Management Plan(s)) by two-thirds vote of its board of directors, ratified by vote of property owners who are required to pay more than fifty percent of the assessments. Within 30 days after amendment of the formula and/or assessment level, the CBD shall file notice of the changes with the local municipal governing body, the Director/Undersecretary of Housing and Community Development and the Secretary of Housing and Economic Development.
In addition to receiving funds from the district fee, the CBD Corporation shall be authorized to receive grants, donations, revenues generated from parking fees, CBD activities, or gifts on behalf of the CBD.
Section 8. Collection of fees and disbursement of funds
The collector-treasurer of the municipality is hereby authorized to collect such district fees in designated CBDs and to disburse the funds to the CBD Corporation. In addition to the items identified in Chapter 60, Section 3A, the collector-treasurer may include notices for district fees in the envelope or electronic message in which a property bill is sent.
The district fees collected shall be used solely to fund items to further the goals identified and approved in the Initial Management Plan for the CBD.
The collector-treasurer shall disburse revenues to the CBD Corporation no later than thirty days of the collection of such fees, together with the interest earned on the holding of such fees.
Following establishment of the CBD, all fees billed by or on behalf of the CBD and unpaid after thirty days from the date of billing shall become a lien on the property, which shall have priority over all other liens except municipal liens and mortgages of record prior to the recording of a notice of lien, if notice of the lien is duly recorded by the CBD Corporation in the appropriate registry of deeds or land court registry district.
Section 9. Amendment of district boundaries
At any time after the establishment of a CBD pursuant to the provisions of this chapter, the district boundaries upon which the establishment was based may, upon the recommendation of the CBD Corporation, be amended by the local municipal governing body after compliance with the procedures set forth in this section.
The CBD Corporation shall prepare a petition, consistent with the criteria described in Section 3 in all ways except for the signatures.
Instead, if the petition concerns an amendment to expand the district, the petition must be accompanied by signatures of the property owners who are required to pay more than fifty percent of the assessments in the expanded area only. If the petition concerns an amendment to reduce the size of the district, it must be accompanied by signatures of the property owners who are required to pay more than fifty percent of the assessments levied in the existing district.
The local municipal governing body shall hold a public hearing within sixty days of the receipt of a petition to amend the district boundaries. In the case of an expansion petition, written notification of such hearing shall be sent to each property owner within the proposed expansion area of the CBD at least thirty days prior to such hearing, by mailing notice to the address listed in the property tax records. In the case of a reduction petition, such public notice must be sent to each property owner in the existing district. For either an expansion or reduction petition, notification of the hearing shall also be published for two consecutive weeks in a newspaper of general circulation in the area at least fourteen days prior to such hearing and listed on the municipality’s website. For an expansion petition, such public notice shall contain the proposed expanded boundaries of the CBD, the fee level, summary of supplemental programs and services, and where the property owner may obtain a full copy of the Management Plan. For a reduction petition, such public notice shall contain the proposed reduced boundaries of the CBD and any changes in the fee level, supplemental programs and services or other material aspects of the Management Plan that will occur as a result of the boundary change. Within 30 days of the hearing, and upon determination by the city or town clerk, or designee, that the petition has met the necessary criteria, the local governing body, in its sole discretion, may by a vote declare the district boundaries amended.
Upon the adoption of any amendment to the district boundaries which increases the size of the district, any owner of property to be added to the district shall be notified of the new boundaries of the district in accordance with section four.
Section 10. Dissolution
A CBD may be dissolved by petition to the local municipal governing body and a subsequent decision by such governing body to authorize dissolution.
In order to be considered by the local municipal governing body, a petition to dissolve a CBD shall contain the signatures of the property owners who are required to pay more than fifty percent of the assessments levied in the district.
The local municipal governing body shall hold a public hearing within thirty days of receipt of a completed petition on the issue of dissolution.
Following the public hearing, the local municipal governing body may declare the CBD dissolved; provided, however, that no CBD shall be dissolved until it has satisfied or paid in full all of its outstanding indebtedness, obligations, and liabilities; or until funds are on deposit and available therefore; or until a repayment schedule has been formulated and municipally approved therefor. In addition, the CBD shall be prohibited from incurring any new or increased financial obligations.
Any liabilities, either current or future, incurred as a result of action to accomplish the purposes of the Management Plan shall not be an obligation of the municipality but said liabilities shall be paid for entirely from revenue gained from the project or facilities authorized, or from the fees on the properties in the CBD.
Upon the dissolution of a CBD, any remaining revenues derived from the sale of assets acquired with fees collected shall be refunded to the property owners in the CBD in which fees were charged by applying the same formula used to calculate the fee in the fiscal year in which the CBD is dissolved.
Nothing in this section shall prevent the filing of a subsequent petition for a similar district.
Section 11. Districts with Non-Contiguous Geographic Areas Within a Municipality
A CBD may include non-contiguous geographic areas within the municipality. If the petition proposes such a district, each non-contiguous area must separately qualify by meeting the signature threshold in Section Three. Once the clerk has determined that the establishment criteria have been met, the municipality shall consider whether the CBD as a whole should be approved. A petition to reduce or dissolve a CBD with non-contiguous areas must be signed by property owners representing at least fifty percent of the assessed value in the CBD as a whole. A petition to expand such a CBD must be signed by property owners representing fifty percent of the assessed value in the expanded area only. A CBD that includes non-contiguous areas may set services, programs and fees to take into account the differing circumstances of each area.
Section 12. CBD located in more than one Municipality
A CBD may be located in more than one municipality if the petition in each municipality separately complies with the process set forth in this Chapter for the establishment of a CBD. Petitioners must state in each petition whether they will proceed with establishment if the other municipality or municipalities involved do not approve the proposed CBD. A petition to reduce a CBD located in more than one municipality must be signed by property owners with fifty percent of the assessed valuation in that municipality’s portion of the district. A petition to expand such a CBD must be signed by property owners representing fifty percent of the assessed value in the expanded area only. A petition to dissolve the entire CBD located in more than one municipality must be signed by property with fifty prevent of the assessed valuation in each municipality. A CBD is located in more than one municipality may set services, programs and fees to take into account the differing circumstances of each area.
SECTION 43. Section 3 of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out, in lines 114 to 115, the words “established by section three B of chapter twenty-three A” and inserting in place thereof the following words:- pursuant to section 3G of chapter 23A.
SECTION 44. Paragraph (11) of subsection (a) of part B of section 3 of chapter 62 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting at the end thereof the following sentence:-
An individual who is a nonresident for all or part of the taxable year shall not be eligible to claim this deduction.
SECTION 45. Subsection (a) of part B of section 3 of chapter 62 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting at the end thereof the following new clause:-
(19) An amount equal to the amount expended in the taxable year for the purchase of an interest in, or the amount contributed in the taxable year to an account in, a prepaid tuition program or college savings program established by the commonwealth or any instrumentality or authority thereof. In the case of a single person or a married person filing a separate return or a head of household, the total amount deducted in the taxable year shall not exceed $1,000. In the case of a married couple filing a joint return, the total amount deducted in the taxable year shall not exceed $2,000.
Notwithstanding any statute of limitations on the assessment of an income tax under this chapter, any deduction taken under this subparagraph shall be subject to recapture in the taxable year or years in which distributions or refunds are made for any reason other than (i) to pay qualified higher education expenses, as defined by 26 U.S.C. section 529(e)(3), or (ii) the beneficiary's death, disability, or receipt of a scholarship. For the purposes of this subparagraph, the term “purchaser” or “contributor” means the person shown as such on the records of the qualifying prepaid tuition or college savings program as of December 31 of the taxable year. In the case of a transfer of ownership of a prepaid tuition contract or savings trust account, the transferee shall succeed to the transferor's tax attributes associated with the prepaid tuition contract or savings trust account, including, but not limited to, carryover and recapture of deductions.
On or before October 15, annually of each year beginning on or after January 1, 2018, the commissioner shall submit a report to the secretary of administration and finance, the house and senate committees on ways and means, and the joint committee on revenue. The report shall provide the following information: the number of prepaid tuition contracts or savings trust accounts entered into or opened by residents of the commonwealth during the prior year; the amount of the allowable deductions claimed under this subparagraph during the prior year; and the adjusted gross income of each taxpayer qualifying for the deduction allowed under this subparagraph.
SECTION 46. Section 6 of said chapter 62, as so appearing, is hereby amended by striking out subsection (g) and inserting in place thereof the following subsection:-
(g)(1) As used in this subsection, the following words shall have the same meaning as ascribed to them in section 3A of chapter 23A: “Certified project”, “Controlling business”, “EACC”, “EDIP contract”, and “Proposed project”.
(2) A credit shall be allowed against the tax liability imposed by this chapter on the owner or lessee of a certified project, to the extent such credit is authorized by the EACC, up to an amount equal to 50 per cent of such liability in any taxable year; provided, however, that the 50 per cent limitation shall not apply where the credit is refundable under paragraph (7). The amount of the credit shall be determined by the EACC in accordance with criteria set forth in section 3D of chapter 23A and such other criteria or guidelines as the council shall from time to time adopt; provided, that a credit awarded in connection with a certified project that will retain permanent full-time employees in a gateway municipality without creating a net increase in permanent full-time employees shall not exceed $5,000 per retained employee. A credit allowed under this section shall be taken only after the taxpayer executes an EDIP contract as set forth in said section 3D of said chapter 23A.
(3)The total amount of credits that may be authorized by the EACC in a calendar year pursuant to this section and section 38N of chapter 63 shall not exceed $30,000,000 annually; provided, that this total amount shall not include credits granted pursuant to subsection (q) of section of 6 of this chapter and section 38BB of said chapter 63; and provided further, that this total amount shall include: (i) refundable credits granted during the year pursuant to this section or said section 38N of said chapter 63; (ii) nonrefundable credits granted during the year pursuant to this section or said section 38N of said chapter 63, to the extent that such nonrefundable credits are estimated by the commissioner to offset tax liabilities during the year; and (iii) carryforwards of credits from prior years under this section or said section 38N of said chapter 63, to the extent that such credit carryforwards, if any, are estimated by the commissioner to offset tax liabilities during the year. Any portion of the annual cap not awarded by the EACC in a calendar year shall not be applied to awards in a subsequent year.
The EACC shall provide the commissioner with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming such compliance to the secretary of administration and finance and the secretary of housing and economic development.
(4) Any taxpayer entitled to a credit under this subsection for any taxable year may, to the extent authorized by the EACC, carry over and apply to the tax liability imposed by this chapter for any 1 or more of the next succeeding 10 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax liability imposed by this chapter for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax liability imposed by this chapter for any taxable year beginning more than 5 years after the certified project ceases to qualify as such under chapter 23A. Notwithstanding the foregoing, the EACC may limit or restrict carryover of credits as set forth section 3D of said chapter 23A.
(5) For purposes of this subsection, the commissioner may aggregate the activities of all entities, whether or not incorporated, under common control as defined in 26 U.S.C. section 41(f).
(6) The commissioner shall promulgate rules and regulations necessary to implement this subsection including, but not limited to, provisions to prevent the generation of multiple credits with respect to the same property.
(7) If a credit allowed under paragraph (2) is designated by the EACC as a refundable credit, the credit shall first be applied against the tax liability of the taxpayer imposed by this chapter, and 100 per cent of the balance of such credit may, at the option of the taxpayer and to the extent authorized by the EACC, be refundable to the taxpayer. The EACC shall in each case specify the timing of such refund, which may be for the taxable year in which all or a portion of the certified project is placed in service, or the taxable year subsequent to the year in which the required jobs are created. If such credit balance is refunded to the taxpayer, the credit carryover provisions of paragraph (4) shall not apply.
(8)If the EACC revokes the certification of a project as provided in section 3F of chapter 23A, then a portion of the tax credits otherwise allowed by this section and claimed by the taxpayer prior to the date on which EACC makes the determination to revoke project certification must be added back as additional tax due and shall be reported as such on the return of the taxpayer for the taxable period in which the EACC makes the determination to revoke project certification. The amount of credits subject to recapture shall be proportionate to the taxpayer’s compliance with the job creation requirements applicable to the certified project. The taxpayer’s proportion of compliance shall be determined by the EACC as part of its revocation process and shall be reported to the taxpayer and the department of revenue at the time certification is revoked.
(9)If a certified project is sold or otherwise disposed of, tax credits allowed under this subsection may be transferred to the purchaser of the certified project; provided, that the EDIP contract is assigned to and assumed by the purchaser of the certified project, and such assignment and assumption is approved in writing by the EACC.
(10)Nothing in this subsection shall limit the authority of the commissioner to make adjustments to a taxpayer’s liability upon audit.
SECTION 47. Said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out the word “ten” in line 893, and inserting in place thereof the following figure:- 25.
SECTION 48. Said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out, in line 894, the words “substantial rehabilitation” and inserting in place thereof the following word:- project.
SECTION 49. Said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out, in lines 905 and 939 to 940, the word “rehabilitation” and inserting in place thereof, in each instance, the following word:- project.
SECTION 50. Said section 6 of said chapter 62, as so appearing, is hereby further amended by striking out, in lines 923 and 935, the figure “5” and inserting in place thereof, in each instance, the figure:- 10.
SECTION 51. Said section 6 of said chapter 62, as so appearing, is hereby further amended by adding the following subsection:-
(t)(1) As used in this subsection, the following words shall have the following meanings unless the context clearly requires otherwise:-
“Business”, a profession, sole proprietorship, trade partnership, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, non-profit entity or other business entity.
“Gateway municipality”, a gateway municipality as defined in section 3A of chapter 23A.
“Qualifying business”, a business which: (i) has its principal place of business in the commonwealth; (ii) has at least 50 per cent of its employees located in the business’s principal place of business; (iii) has a fully developed business plan that includes all appropriate long-term and short-term forecasts and contingencies of business operations, including research and development, profit, loss and cash flow projections and details of angel investor funding; (iv) employs 20 or fewer full-time employees at the time of the taxpayer investor’s initial qualifying investment as provided for in paragraph (2); (v) has a federal tax identification number; and (vi) has gross revenues equal to or less than $500,000 in the fiscal year prior to eligibility.
“Qualifying investment”, a monetary investment that is at risk and is not secured or guaranteed; provided, however, that a qualifying investment shall not include venture capital funds, hedge funds or commodity funds with institutional investors or investments in a business involved in retail, real estate, professional services, gaming or financial services.
“Taxpayer investor”, an accredited investor, as defined by the United States Securities and Exchange Commission pursuant to 15 U.S.C. section 77b(15)(ii) who is not the principal owner of the qualifying business and who is involved in the qualifying business as a full-time professional activity.
(2) A taxpayer investor who makes a qualifying investment in a qualifying business shall be allowed a credit against the taxes imposed by this chapter in an amount equal to 20 per cent of the amount of the taxpayer’s qualifying investment. A taxpayer investor who makes a qualifying investment in a qualifying business with its principal place of business located in a gateway municipality shall be allowed a credit against the taxes imposed by this chapter in an amount equal to 30 per cent of the amount of the taxpayer’s qualifying investment. Taxpayer investors may invest up to $125,000 per qualifying business per year with a $250,000 maximum for each qualifying business. The total of all tax credits available to a taxpayer investor under this subsection shall not exceed $50,000 in any single calendar year.
(3) Qualifying investments may be used by a qualifying business for the following purposes: (i) capital improvements; (ii) plant equipment; (iii) research and development; and (iv) working capital. Qualifying investments shall not be used to pay dividends, fund or repay shareholders’ loans, redeem shares, repay debt or pay wages or other benefits of the taxpayer investor.
(4) The credits allowed under paragraph (2) may be taken against income tax due in either the tax year of the initial investment or in any of the 3 subsequent taxable years. Any amount of the tax credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer investor to any of the 3 subsequent taxable years. If the qualifying business ceases to have its principal place of business in the commonwealth within such 3 year period, the taxpayer investor shall not claim any further credits and shall repay the total amount of credits claimed to the commonwealth.
(5) The Massachusetts Life Sciences Center, in consultation with the executive office of housing and economic development and the commissioner, shall authorize, administer and determine eligibility for this tax credit and allocate the credit in accordance with the standards and requirements as set forth in regulations promulgated pursuant to this subsection, and with the goal of creating and maintaining jobs including, but not limited to, jobs in the following sectors: digital e-health, information technology, and healthcare. Any tax credits authorized pursuant to this subsection shall be subject to the annual cumulative cap pursuant to subsection (d) of section 5 of chapter 23I.
(6) The commissioner, the Massachusetts Life Sciences Center, and the executive office of housing and economic development shall promulgate regulations necessary to carry out this subsection.
SECTION 52. Section 6M of said chapter 62, as so appearing, is hereby amended by striking out, in line 89, the words “as defined in section 3A” and inserting in place thereof the following words:- designated under section 3G.
SECTION 53. Chapter 63 of the General Laws, as so appearing, is hereby amended by striking out section 38N and inserting in place thereof the following section:
Section 38N.(a) (l) As used in this section, the following terms shall have the same meanings as ascribed to them in section 3A of chapter 23A: “Certified project”, “Certified project proposal”, “Economic assistance coordinating council”, “EDIP contract”, and “Gateway municipality”.
(b) A corporation subject to tax under this chapter that is the controlling business of a certified project, as defined in section 3A of chapter 23A, or an affiliate of a controlling business, may take a credit against the excise imposed by this chapter to the extent such credit is authorized by the economic assistance coordinating council, up to an amount equal to 50 per cent of such liability in any taxable year; provided, however, that the 50 per cent limitation shall not apply where the credit is refundable under subsection (e). The amount of the credit shall be determined by the economic assistance coordinating council based on the criteria set forth in section 3D of said chapter 23A and such other criteria or guidelines as the council shall from time to time adopt; provided, that a credit awarded in connection with a certified project that will retain permanent full-time employees in a gateway municipality without creating a net increase in permanent full-time employees shall not exceed $5,000 per retained employee. A credit allowed under this section shall be taken only after the corporation executes an EDIP contract as set forth in said section 3D of said chapter 23A.
(c)The total amount of credits that may be authorized by the economic assistance coordinating council in a calendar year pursuant to this section and subsection (g) of section 6 of chapter 62 shall not exceed $30,000,000 annually; provided, that this total amount shall not include credits granted pursuant to section 38BB and subsection (q) of section 6 of chapter 62; and provided further, that this total amount shall include: (i) refundable credits granted during the year pursuant to this section or said subsection (g) or said section (6) of said chapter 62; (ii) nonrefundable credits granted during the year pursuant to this section or said subsection (g) or said section (6) of said chapter 62, to the extent that such nonrefundable credits are estimated by the commissioner of revenue to offset tax liabilities during the year; and (iii) carryforwards of credits from prior years under this section or said subsection (g) of said section 6 of said chapter 62, to the extent that such credit carryforwards, if any, are estimated by the commissioner of revenue to offset tax liabilities during the year. Any portion of the annual cap not awarded by the economic assistance coordinating council in a calendar year shall not be applied to awards in a subsequent year.
The economic assistance coordinating council shall provide the commissioner of revenue with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming such compliance to the secretary of administration and finance and the secretary of housing and economic development.
The credit allowed under this section may be taken by an eligible corporation; provided, however, that the credit allowed by section 31A or section 31H shall not be taken by such corporation.
(d) Any corporation entitled to a credit under this section for any taxable year may, to the extent authorized by the economic assistance coordinating council, carry over and apply to the tax liability imposed by this chapter for any 1 or more of the next succeeding 10 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax liability imposed by this chapter for the taxable year; provided, however, that in no event shall the corporation apply the credit to the tax liability imposed by this chapter for any taxable year beginning more than 5 years after the certified project ceases to qualify as such under chapter 23A. Notwithstanding the foregoing, the economic assistance coordinating council may limit or restrict carryover of credits as set forth section 3D of said chapter 23A.
(e)If a credit allowed under subsection (b) is designated by the economic assistance coordinating council as a refundable credit, the credit shall first be applied against the tax liability of the corporation under this chapter, and 100 per cent of the balance of such credit may, at the option of the corporation and to the extent authorized by the economic assistance coordinating council, be refundable to the corporation. The economic assistance coordinating council shall in each case specify the timing of such refund, which may be for the taxable year in which all or a portion of the certified project is placed in service, or the taxable year subsequent to the year in which the required jobs are created. If such credit balance is refunded to the corporation, the credit carryover provisions of subsection (d) shall not apply.
(f)In the case of a corporation that is subject to a minimum excise under any provision of this chapter, the amount of the credit allowed by this section shall not reduce the excise to an amount less than the minimum excise.
(g)In the case of corporations filing a combined return of income under section 32B, a credit generated by an individual member corporation under the provisions of this section shall first be applied against the separately determined excise attributable to that member, except as otherwise provided in this section. A member corporation with an excess credit may apply its excess credit against the excise of another group member, to the extent that such other member corporation can use additional credits. Unused, unexpired credits generated by member corporations shall be carried over from year to year by the individual corporation that generated the credit, to the extent authorized by the economic assistance coordinating council.
(h) The commissioner of revenue may promulgate such rules and regulations as are necessary to implement this section, including, but not limited to, provisions to prevent the generation of multiple credits with respect to the same property.
(i)If the economic assistance coordinating council revokes the certification of a project as provided in section 3F of chapter 23A, then a portion of the tax credits otherwise allowed by this section and claimed by the corporation prior to the date on which the economic assistance coordinating council makes the determination to revoke project certification must be added back as additional tax due and shall be reported as such on the return of the corporation for the taxable period in which the economic assistance coordinating council makes the determination to revoke project certification. The amount of credits subject to recapture shall be proportionate to the corporation’s compliance with the job creation requirements applicable to the certified project. The corporation’s proportion of compliance shall be determined by the economic assistance coordinating council as part of its revocation process and shall be reported to the corporation and the department of revenue at the time certification is revoked.
(j)If a certified project is sold or otherwise disposed of, tax credits allowed under this section may be transferred to the purchaser of the certified project; provided, that the EDIP contract is assigned to and assumed by the purchaser of the certified project, and such assignment and assumption is approved in writing by the economic assistance coordinating council.
(k)Nothing in this section shall limit the authority of the commissioner of revenue to make adjustments to a corporation's liability upon audit.
SECTION 54. Section 38O of said chapter 63, as so appearing, is hereby amended by striking out, in lines 4 to 5, the words “as defined by section 3A” and inserting in place thereof the following words:- designated under section 3G.
SECTION 55. Subsection (b) of section 38R of said chapter 63, as so appearing, is hereby amended by inserting after the word “criteria”, in line 45, the following words:- ; provided, however, that the Massachusetts historical commission shall ensure the award of tax credits pursuant to this section to allow a taxpayer that acquires a qualified historic structure to receive any tax credits for qualified rehabilitation expenditures previously awarded to the transferor of the qualified historic structure if: (A) the rehabilitation was not placed in service by the transferor; (B) no credit has been claimed by anyone other than the acquiring taxpayer as verified by the department of revenue to the commission; (C) the taxpayer completes the rehabilitation and obtains certification as provided in this section; and (D) the taxpayer conforms with all other requirements of this section; and provided further, that in the case of a multi-phase project, tax credits may be transferred for any phase that meets the criteria in subclauses (A) to (D), inclusive.
SECTION 56. Section 38BB of said chapter 63, as so appearing, is hereby amended by striking out, in line 5, the figure “10” and inserting in place thereof the following figure:- 25.
SECTION 57. Said section 38BB of said chapter 63, as so appearing, is hereby amended further by striking out, in line 6, the words “substantial rehabilitation” and inserting in place thereof the following word:- project.
SECTION 58. Said section 38BB of said chapter 63, as so appearing, is hereby amended further by striking out, in line 17 and in lines 38 to 39, the word “rehabilitation” and inserting in place thereof, in each instance, the following word:- project.
SECTION 59. Said section 38BB of said chapter 63, as so appearing, is hereby further amended by striking out, in lines 23 and 34, the figure “5” and inserting in place thereof, in each instance, the figure:- 10.
SECTION 60. Section 38EE of said chapter 63, as so appearing, is hereby amended by striking out, in line 76, the words “as defined in section 3A” and inserting in place thereof the following words:- designated under section 3G.
SECTION 61. Section 12 of chapter 138 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking the second paragraph.
SECTION 62. Said section 15 of said chapter 138, as so appearing, is hereby further amended by striking out, in line 97, the words “or connected therewith” and inserting in place thereof the following words:- ; except that a common victualler duly licensed to operate a restaurant under chapter 140 and holding a license under section 12 of this chapter can be connected to a premises licensed under this section, provided that at least 50 percent of the revenue generated at the premise licensed under this section is derived from the sale of grocery items as defined in section 184B of chapter 94; and provided further that the connection between, and design of, the two locations so licensed, including interior connections, which shall be allowed, clearly delineates the two premises in such a way as to make the boundaries of each licensed premises clearly separate and identifiable to customers, liquor distributors and regulatory authorities, and enables the respective licensees to maintain control of the licensed area, egress, and the sale, storage and service of alcoholic beverages, and otherwise in conformity with all sections of this chapter.
SECTION 63. Said section 15 of said chapter 138, as so appearing, is hereby further amended by striking out, in line 149, the words “or connected therewith” and inserting in place thereof the following words:- ; except that a common victualler duly licensed to operate a restaurant under chapter 140 and holding a license under section 12 of this chapter can be connected to a premises licensed under this section, provided that at least 50 percent of the revenue generated at the premise licensed under this section is derived from the sale of grocery items as defined in section 184B of chapter 94; and provided further that the connection between, and design of, the two locations so licensed, including interior connections, which shall be allowed, clearly delineates the two premises in such a way as to make the boundaries of each licensed premises clearly separate and identifiable to customers, liquor distributors and regulatory authorities, and enables the respective licensees to maintain control of the licensed area, egress, and the sale, storage and service of alcoholic beverages, and otherwise in conformity with all sections of this chapter.
SECTION 64. Section 17 of said chapter 138, as so appearing, is hereby amended by striking, in lines 291 through 293, the following:- Unless expressly authorized by this chapter, local licensing authorities shall not grant licenses to any person, firm or corporation under more than one section of this chapter.
SECTION 65. Said section 17 of said chapter 138, as so appearing, is hereby further amended by striking, in lines 316 and 319, each time it appears, the figure “12”.
SECTION 66. Subsection (g) of section 19B of said chapter 138, as so appearing, is hereby amended by striking out in paragraph (5) the words “section twelve of this chapter” and inserting in place thereof the following words:- this section.
SECTION 67. Said section 19B of said chapter 138, as so appearing, is hereby further amended by striking subsection (n) and inserting in place thereof the following subsection:-
(n) Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license to sell wine for consumption on the premises at any location it deems reasonable and proper, and approves in writing, on the grounds of a farmer–winery licensed under this section and on the grounds of the vineyards operated as appurtenant and contiguous to, and in conjunction with, such farmer-winery; provided, however, that such licensees may sell for on-premises consumption only wines produced by the winery or produced for the winery and sold under the winery brand name. All the procedures under section 15A of this chapter shall apply to the granting of a license under this paragraph.
SECTION 68. Section 19C of said chapter 138, as so appearing, is hereby amended by striking subsection (n) and inserting the following paragraph:-
(n) Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license to sell malt beverages for consumption on the premises at any location it deems reasonable and proper, and approves in writing, on the grounds of a farmer–brewery licensed under this section and on the grounds of the farm operated as appurtenant and contiguous to, and in conjunction with, such farmer-brewery; provided, however, that such licensees may sell for on-premises consumption only malt beverages produced by the brewery or produced for the brewery and sold under the brewery brand name. All the procedures under section 15A of this chapter shall apply to the granting of a license under this paragraph.
SECTION 69. Section 19E of said chapter 138, as so appearing, is hereby amended by striking subsection (o) and inserting the following paragraph:-
(o) Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license to sell distilled spirits for consumption on the premises at any location it deems reasonable and proper, and approves in writing, on the grounds of a farmer–distillery licensed under this section and on the grounds of the farm operated as appurtenant and contiguous to, and in conjunction with, such farmer-distillery; provided, however, that such licensees may sell for on-premises consumption only distilled spirits produced by the distillery or produced for the distillery and sold under the distillery brand name. All the procedures under section 15A of this chapter shall apply to the granting of a license under this paragraph.
SECTION 70. Said chapter 138, as so appearing, is hereby amended by inserting after section 19F the following new section:-
Section 19H. Notwithstanding section 17, a local licensing authority, subject to the approval of the commission, may grant a license under this section to any person that holds any combination of a farmer-winery under section 19B, a farmer-brewery under section 19C, and a farmer-distillery under section 19E, may be granted a license under this section to sell for on-premises consumption any alcoholic beverages produced by its section 19B, section 19C, and section 19E licenses, or produced for the section 19B, section 19C, and section 19E licensee and sold under the licensee’s brand name, on any of its premises licensed under section 19B, section 19C, and section 19E, and on the grounds of the farm operated as appurtenant and contiguous to, and in conjunction with, such premises, provided, however, that these premises are operated appurtenant and contiguous to each other.
SECTION 71. Section 33 of chapter 138 of the General Laws, as so appearing, is hereby amended by striking out, in lines 14 and 15, 17 and 18, 24 and 25, and 27 and 28, the words “or on the day following when Christmas occurs on a Sunday”.
SECTION 72. Section 44A½ of chapter 149 of the General Laws, as appearing in the 2014 Official addition, is hereby amended by inserting after subsection (c) the following subsection:-
(d) It shall be the goal of the Commonwealth to achieve minority business enterprise and women business enterprise contracting goals and workforce participation goals on the totality of state-funded design and construction contracts that are reflective of the diverse racial, ethnic, and gender make-up of the Commonwealth’s population.
SECTION 73. Chapter 166A of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after section 22 the following section:-
Section 23. All cable television operators shall locate PEG channels on the high definition tier. Cable television operators shall provide PEG channel managers with access to the electronic program guide to ensure that residents can access information about local PEG channels.
SECTION 74. Section 162M of chapter 175 of the General Laws, as so appearing, is hereby amended by inserting after subsection (7) the following subsection:-
(7 1/2) Travel, limited line travel insurance, as that term is defined in section 162Z.
SECTION 75. Said chapter 175 is hereby further amended by inserting after section 162Y the following section:-
Section 162Z. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Designated responsible producer” or “DRP”, a person responsible for the limited lines travel insurance producer’s compliance with the travel insurance laws, rules and regulations of the state.
“Limited lines travel insurance producer”, a: (i) managing general underwriter; (ii) managing general agent or third party administrator; or (iii) licensed insurance producer, including a limited lines producer, designated by an insurer as the travel insurance supervising entity as set forth in subsection (g).
“Offer and disseminate”, to provide general information, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other non-licensable activities permitted by the state.
“Travel insurance”, insurance coverage for personal risks incident to planned travel, including but not limited to: (i) interruption or cancellation of trip or event; (ii) loss of baggage or personal effects; (iii) damages to accommodations or rental vehicles; or (iv) sickness, accident, disability or death occurring during travel. Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting 6 months or longer, including for example, those working overseas as an expatriate or military personnel being deployed.
“Travel retailer”, a business entity that makes, arranges or offers travel services and may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance producer.
(b)
(1) The commissioner may issue to an individual or business entity that has filed with the commissioner an application for such limited license in a form and manner prescribed by the commissioner, a limited lines travel insurance producer license, which authorizes the limited lines travel insurance producer to sell, solicit or negotiate travel insurance through a licensed insurer.
(2) A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity license if the following conditions are met:
(i) The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance:
(A) a description of the material terms or the actual material terms of the insurance coverage;
(B) a description of the process for filing a claim;
(C) a description of the review or cancellation process for the travel insurance policy; and
(D) the identity and contact information of the insurer and limited lines travel insurance producer.
(ii) At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register on a form prescribed by the commissioner of each travel retailer that offers travel insurance on the limited lines travel insurance producer’s behalf. The register shall be maintained and updated annually by the limited lines travel insurance producer and shall include the name, address and contact information of the travel retailer and an officer or person who directs or controls the travel retailer’s operations, and the travel retailer’s federal tax identification number. The limited lines travel insurance producer shall submit such register to the division of insurance upon reasonable request. The limited lines travel insurance producer shall also certify that the travel retailer registered complies with 18 U.S.C. section 1033.
(iii) The limited lines travel insurance producer has designated 1 of its employees who is a licensed individual producer as the DRP.
(iv) The DRP, president, secretary, treasurer and any other officer or person who directs or controls the limited lines travel insurance producer’s insurance operations shall comply with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.
(v) The limited lines travel insurance producer has paid all applicable insurance producer licensing fees as set forth in applicable state law.
(vi) The limited lines travel insurance producer requires each employee and authorized representative of the travel retailer, whose duties include offering and disseminating travel insurance, to receive a program of instruction or training, which may be subject to review by the commissioner. The training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective customers.
(vii) Limited lines travel insurance producers, and those registered under its license, are exempt from the examination requirements under section 162K and the continuing education requirements under section 177E.
(viii) The limited lines travel insurance producer or travel retailer provides its written consumer materials to department upon reasonable request.
(c) Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers, brochures or other written materials that:
(1) provide the identity and contact information of the insurer and the limited lines travel insurance producer;
(2) explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
(3) explain that an unlicensed travel retailer is permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer’s existing insurance coverage.
(d) A travel retailer’s employee or authorized representative who is not licensed as an insurance producer may not:
(1) evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage;
(2) evaluate or provide advice concerning a prospective purchaser’s existing insurance coverage; or
(3) hold himself out as a licensed insurer, licensed producer, or insurance expert.
(e)a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer, meeting the conditions stated in this section, is authorized to do so and receive related compensation, not in the form of commissions, upon registration by the limited lines travel insurance producer as described in subsection (b).
(f) Travel insurance may be provided under an individual policy or under a group or master policy.
(g) As the insurer designee, the limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with this section.
(h) The limited lines travel insurance producer and any travel retailer offering and disseminating travel insurance under the limited lines travel insurance producer license shall be subject to the: (i) laws regarding unfair methods of competition and unfair and deceptive acts and practices in the business of insurance; and (ii) the enforcement provisions applicable to insurance producers.
SECTION 76. Section 1 of chapter 176J of the General Laws, as so appearing, is hereby amended by inserting after the words “separate insurance policy” the following words:- travel insurance
SECTION 77. Said section 1 of said chapter 176J, as so appearing, is hereby further amended by after the words “said chapter 15A” the following words: - Travel insurance for the purpose of this chapter is insurance coverage for personal risks incident to planned travel, including but not limited to: (i) interruption or cancellation of trip or event; (ii) loss of baggage or personal effects; (iii) damages to accommodations or rental vehicles; or (iv) sickness, accident, disability or death occurring during travel, provided that the health benefits are not offered on a stand-alone basis and are incidental to other coverages. The term, “travel insurance” shall not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six (6) months or longer, including for example, those working overseas as an ex-patriot or military personnel being deployed.
SECTION 78. Section 7 of chapter 293 of the acts of 2006, as amended by section 6 of chapter 129 of the acts of 2008, is hereby further amended by striking out clauses (ii), (iii) and (iv) of subsection (c) and inserting in place thereof the following 2 clauses:-
(ii) the secretary certifies that the developer has received commitments satisfactory to the department for financing sufficient, with equity or other amounts to be provided by the developer and other persons, to fund the costs of construction of the proposed economic development project exclusive of those public infrastructure improvements to be financed by the agency, and shall have obtained a blanket performance bond or other security satisfactory to the secretary and payable to the agency securing the developer's obligation to complete the construction of the public infrastructure improvements included in the economic development proposal in an amount equal to or greater than the outstanding principal amount of any bonds to be issued by the agency to finance costs of public infrastructure improvements; and (iii) the agency certifies that it has approved the proposal.
SECTION 79. Said section 7 of said chapter 293, as most recently amended by section 87 of chapter 287 of the acts of 2014, is hereby further amended by striking out in subsection (d) the words, “31 per cent” and inserting in place thereof the following words:- 50 per cent.
SECTION 80. Subsection (e) of said section 7 of said chapter 293, as most recently amended by section 88 of said chapter 287, is hereby further amended by striking out the second sentence.
SECTION 81. Section 8 of said chapter 293, as amended by section 8 of chapter 129 of the acts of 2008, is hereby further amended by striking out clauses (iii), (iv) and (v) of subsection (a) and inserting in place thereof the following 2 clauses:-
(iii) the municipality shall provide local infrastructure development assistance to the commonwealth with respect to the economic development project to the extent and for such time as is provided in section 10; and (iv) the commonwealth shall provide infrastructure development assistance to the agency to pay the debt service due in each fiscal year on any bonds issued by the agency to finance the costs of public infrastructure improvements included in such economic development project, subject to reimbursement of all or a portion of such state infrastructure development assistance through the collection of infrastructure assessments as provided in section 9 of this act and from local infrastructure assistance provided by the municipality as provided in section 10.
SECTION 82. Subsection (b) of section 11 of said chapter 293, as amended by sections 13 and 14 of said chapter 129, is hereby further amended by striking out the following words:- “; provided, however, that notwithstanding any other general or special law to the contrary, a certified economic development project receiving financial assistance for public infrastructure improvements pursuant to this act shall not be eligible for: (i) designation as a TIF zone pursuant to section 59 of chapter 40 of the General Laws; provided, however, that a certified economic development project designated as a TIF zone pursuant to said section 59 of said chapter 40 prior to January 1, 2009 shall be eligible to receive financial assistance for public infrastructure improvements pursuant to this act; (ii) the tax credit described in section 38N of chapter 63 of the General Laws; (iii) a community development action grant pursuant to section 57A of chapter 121B of the General Laws; (iv) a public works economic development program grant under clause (c) of the first paragraph of section 17 of chapter 732 of the acts of 1981; or (v) or any other economic assistance program as may be determined by the secretary or the commissioner. The ineligibility to participate in economic assistance programs as provided in clauses (i) to (v), inclusive, shall not apply to any tenant of a certified economic development project which is not an affiliate of the developer”.
SECTION 83. Item 7100-1000 of section 2 of chapter 258 of the acts of 2008, as amended by section 66 of chapter 238 of the acts of 2012 is hereby amended by striking out the figure “$3” and inserting in place thereof the following figure:- $1.
SECTION 84. Chapter 301 of the acts of 1998, as amended by section 37 of chapter 303 of the acts of 2008, and as further amended by chapter 291 of the acts of 2014, is hereby further amended by striking out, in subsection (c) of section 19, the last sentence and inserting in place thereof the following 5 sentences:-
The preceding three sentences of this section 19(c) shall not apply to any portion of the parkway. Ownership of any completed portion of the parkway, together with ownership of any associated and completed infrastructure including but not limited to public utilities and sewer and storm drain lines located within or adjacent to said portion, shall be transferred to the applicable town, or to the authority, no later than the later of thirty days following the date on which said portion of the parkway is completed or October 1, 2016, as applicable. Prior to the date on which any portion of the parkway is completed and until such date that ownership of said portion is transferred in accordance with the provisions of this section 19(c), said portion shall remain subject to the master developer’s control. On or after the date on which any portion of the parkway is completed and ownership of said portion is transferred in accordance with the provisions of this Section 19(c), any applicable town, or the authority, may enter into a contract with a governmental person, a nonprofit person or a private person for the operation and maintenance of said portion, together with operation and maintenance of associated infrastructure including but not limited to public utilities and sewer and storm drain lines located within or adjacent to said portion. For purposes of this section 19(c), (i) except for that portion of the parkway constituting “Parkway-Phase 1” as defined in Article I of the Parkway financing MOA, any portion of the parkway shall be deemed completed on the date on which said portion is open and available for public use, and (ii) that portion of the parkway constituting “Parkway-Phase 1” as defined in Article I of the Parkway financing MOA shall be deemed to have been completed no later than August 19, 2013.
SECTION 85. Section 44 of chapter 303 of the acts of 2008 is hereby amended by inserting, after the figure “$43,000,000,” the following words:- excluding bonds issued to refinance bonds previously issued under this section 44.
SECTION 86. Subsection (c) of section 233 of chapter 165 of the acts of 2014, as amended by section 30 of chapter 119 of the acts of 2015, is hereby amended by striking out in said subsection (c) “December 31, 2016” and inserting in place thereof “June 30, 2017”.
SECTION 87. A controlling business or affiliate of a controlling business which has been awarded state tax credits under chapter 19 of the acts of 1993 or sections 3A to 3H, inclusive, of chapter 23A of the General Laws, and which intends to claim such credits on tax filings for tax years beginning on or after January 1, 2016 shall enter into an EDIP, as defined in section 3A of said chapter 23A, contract setting forth the amount of the credits awarded, the amount of credits claimed or carried over, and the job creation obligations of the controlling business. Any controlling business or affiliate of a controlling business that fails to enter into an EDIP contract in form and substance acceptable to the Massachusetts office of business development on or before December 31, 2016 shall forfeit such credits. For purposes of this section, the terms controlling business, and EDIP contract shall have the meanings ascribed to them in said section 3A of said chapter 23A.
SECTION 88. (a) Any and all references in the General Laws to “economic target area” or “ETA” shall be deemed to mean an economic target area designated by the economic assistance coordinating council (EACC), established pursuant to section 3B of chapter 23A of the General Laws and in existence as of the effective date of this act, or an area designated by the EACC as an economic target area in accordance with section 3G of said chapter 23A.
(b) As of the effective date of this act, all references in the General Laws to “economic opportunity area” or “EOA” shall be deemed to mean an economic opportunity area designated by the EACC and in existence as of the effective date of this act, or an area designated by the EACCas an economic opportunity area pursuant to said section 3G of said chapter 23A. Existing economic target areas and economic opportunity areas designated by the EACC prior to January 1, 2017 shall remain in effect until their scheduled termination date, if any.
SECTION 89. Notwithstanding any general or special law to the contrary, sections 78 to 82, inclusive shall not apply to economic development projects approved by the secretary of administration and finance pursuant to subsection (c) of section 7 of chapter 293 of the acts of 2006, as amended by section 6 of chapter 129 of the acts of 2008, before January 1, 2017.
SECTION 90. The Massachusetts Technology Park Corporation, established in section 3 of chapter 40J of the General Laws and doing business as the Massachusetts Technology Collaborative, shall, subject to appropriation, create a cybersecurity and data analytics technology development and training center of excellence, in this section referred to as the center. The center shall convene interested public and private universities, governmental bodies and industry participants to share public and private data sets for the purposes of expanding the commonwealth’s data analytics capabilities. The center may: (1) match public and private universities with industry participants to develop cybersecurity technology and expand data analytic capabilities; (2) provide a forum for sharing data sets for analysis; and (3) provide skills building and workforce training in cybersecurity and data analytics.
The Massachusetts Technology Park Corporation shall file a report detailing the activities of the center on or before September 1, 2017 with the clerks of the house of representatives and the senate who shall forward the same to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies.
SECTION 91. (a) There shall be a special commission to conduct a comprehensive study relative to the practical, economic, fiscal, and health related impacts for Massachusetts if the commonwealth were to remain on Eastern Daylight Time, four hours behind coordinated universal time and also known as Atlantic Standard Time, throughout the calendar year. Said study shall focus on the impact to local and regional economies, education, public health, transportation, energy consumption, commerce and trade if the time zone is altered.
(b) The special commission shall consist of 11 members: 3 persons to be appointed by the governor, 1 of whom shall be a member of the executive office of health and human resources and 1 of whom shall be a member of the executive office of education; 3 persons to be appointed by the president of the senate, one of whom shall have expertise in economic development and one of whom shall have expertise in energy, 1 person to be appointed by the minority leader of the senate, 3 persons to be appointed by the speaker of the house of representatives, one of whom shall have expertise in interstate commerce and one of whom shall have expertise in transportation, and 1 person to be appointed by the minority leader of the house of representatives.
(c) The special commission shall convene its first meeting on or before October 1, 2016 and shall submit its final report, and any recommendations for legislative reforms, no later than March 31, 2017, to be filed with the clerks of the senate and the house of representatives who shall forward a copy of the report to the house and senate chairs of the joint committee on economic development and emerging technologies, the joint committee on public health, and the joint committee on education.
(d) The special commission may receive and expend grants, gifts, contributions, bequests and in-kind contributions, including volunteer services, from individuals, corporations or other business entities, foundations and state or other government bodies for the purpose of completing this study.
(e) The special commission shall be dissolved after the submission of the final report.
SECTION 92. Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out section 2A, the state treasurer shall, upon receipt of a request by the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $546,500,000; provided, however, that such request by the governor shall be made on or before July 31, 2019. All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Commonwealth Economic Development Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2049. All interest and payments on account of principal on such obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth.
SECTION 93. Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out section 2B, the state treasurer shall, upon receipt of a request by the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $7,500,000 provided, however, that such request by the governor shall be made on or before July 31, 2019. All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Commonwealth Economic Development Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2049. All interest and payments on account of principal on such obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth.
SECTION 94. Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out section 2C, the state treasurer shall, upon receipt of a request by the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $154,900,000; provided, however, that such request by the governor shall be made on or before July 31, 2019. All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Commonwealth Economic Development Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2049. All interest and payments on account of principal on such obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth.
SECTION 95. The deduction allowed pursuant to clause (19) of subsection (a) of part B of section 3 of chapter 62 of the General Laws shall apply for taxable years beginning on or after January 1, 2017 through the tax year beginning on January 1, 2021.
SECTION 96. Sections 3 to 5, inclusive, 16 to 22, inclusive, 29, 30, 33 to 41, inclusive, 43, 44, 46 to 60, inclusive, 78 to 82, inclusive and 86 shall be effective for tax years beginning on or after January 1, 2017.
SECTION 97. Sections 3 to 5, inclusive, 16 to 22, inclusive, 29, 30, 33 to 41, inclusive, 43, 44, 46 to 60, inclusive, 78 to 82, inclusive and 86 shall take effect on January 1, 2017.
SECTION 98. Sections 23 to 28, inclusive, shall take effect on October 1, 2016.