Budget Amendment ID: FY2021-S4-384

ECO 384

Microbusiness and Minority Business Strategy Commission

Ms. DiZoglio and Mr. O'Connor moved that the proposed new text be amended by adding the following sections:-

SECTION XX. For purposes of the following section, the following terms shall have the following meanings unless the context clearly requires otherwise:

“Microbusiness”, an enterprise which has its principal place of business in the commonwealth, is independently owned and operated, and (i) if a manufacturing firm, has 25 or fewer employees, or (ii) if a service, construction or non-manufacturing firm, has 25 or fewer employees and average annual gross receipts over the 3 previous years not exceeding $3,500,000, indexed for inflation.

“Minority business”, an enterprise which has its principal place of business in the commonwealth, is independently owned and operated, and at least 51% of which is owned and dominantly controlled by adult minority principals as defined in 425 CMR 2.02(1), or any successor regulation thereto.

SECTION XX. Chapter 23A of the General Laws is hereby amended by inserting after section 66 the following section:-

Section 66A: Microbusiness and minority business strategy commission; members; powers and duties; meetings; annual report

Section 66A. (a) There shall be a microbusiness and minority business strategy commission within, but not subject to the supervision or control of, the executive office of housing and economic development. The mission of the commission shall be to enhance the economic vitality of the commonwealth’s microbusinesses and minority businesses, recognizing the fundamental role that microbusinesses and minority businesses play in the economy and the contributions made by microbusinesses and minority businesses to the general welfare of the commonwealth.

(b) The commission shall consist of the following 18 members: the secretary of housing and economic development, ex officio, or a designee; the secretary of administration and finance, ex officio, or a designee; the chair of the commission against discrimination, ex officio, or a designee; the director of the supplier diversity office, ex officio, or a designee, and 14 persons appointed by the governor, 2 of whom shall be from each of the 7 regions of the commonwealth: the western region, the central region, the northeast region, the Merrimack Valley, the metro west region, the Greater Boston region, and the southeast region. Of those 14 appointees, at least 3 shall be microbusiness owners or representatives of microbusiness owners in underserved communities or communities with a high percentage of low-income households, at least 3 shall be minority business owners or representatives of minority business owners in underserved communities or communities with a high percentage of low-income households, and at least 3 shall be founders or organizers of platforms, pop-up markets, or other vendor collaboratives serving microbusinesses organized for similar purposes or committed to similar mission outcomes as, for example, CI Works, WeWork, and Top Knots CoWorking, and/or minority businesses organized for similar purposes or committed to similar mission outcomes for advancing equity based on race, color, religious creed, national origin, sex, gender identity, sexual orientation, genetic information, ancestry, disability, or language as, for example, BLK+GRN, the e-commerce platform We Buy Black, and the Black-Owned Market. Commission members shall be persons with demonstrated interests and experience in advancing the interests of microbusinesses and/or minority businesses, and their owners. All persons appointed to the commission shall be selected without regard to political affiliation and solely on the basis of the qualifications and experience that the appointing authorities determine are necessary to fulfilling the mission of the commission, and shall as fully as possible represent a diverse and equitable array of stakeholders.

(c) Members of the commission may serve a maximum of 3 consecutive 3–year terms. A vacancy occurring on the commission shall be filled within 90 days by the original appointing authority. A person appointed to fill a vacancy shall serve initially only for the balance of the unexpired term. The commission shall annually elect from among its members a chair, a vice chair, and any other officers it considers necessary. The members of the commission shall receive no compensation for their services but shall be reimbursed for any usual and customary expenses incurred in the performance of their duties. Members shall be considered special state employees for the purposes of chapter 268A. Each member of the commission shall be a resident of the commonwealth.

(d) The commission shall serve as a research body for issues critical to the welfare and vitality of the commonwealth’s microbusinesses and minority businesses and shall: (i) study, review and report on the status of microbusinesses and minority businesses in the commonwealth; (ii) advise the general court and the executive branch of the impact of existing and proposed state laws, policies and regulations on the commonwealth’s microbusinesses and minority businesses; (iii) advance legislative and policy solutions that address the needs of the commonwealth’s microbusinesses and minority businesses; (iv) advocate to ensure that the commonwealth’s microbusinesses and minority businesses receive a fair share of state investment; (v) work with lending institutions, insurance companies, and other private businesses in the commonwealth to encourage formation of seed money and microcredit opportunities for facilitating the starting up and upscaling of microbusinesses and minority businesses in their efforts to obtain loan money and operating capital from private and public lenders; (vi) promote collaboration among the commonwealth’s microbusinesses and minority businesses to improve efficiency in delivery of services and other cost efficiencies; and (vii) develop and support access to state resources for the commonwealth’s microbusinesses and minority businesses. The executive office shall provide the commission with adequate office space and any research, analysis or other staff support that the commission reasonably requires.

(e) The commission shall meet on a quarterly basis at the discretion of the chair. Meeting locations shall rotate between the 7 regions of the commonwealth identified in subsection (b). Meetings shall be open to the public pursuant to sections 18 to 25, inclusive, of chapter 30A.

(f) The commission may accept and solicit funds, including any gifts, donations, grants or bequests or any federal funds for any of the purposes of this section. The funds shall be deposited in a separate account with the state treasurer, shall be received by the state treasurer on behalf of the commonwealth and shall be expended by the commission under the law.

(g) The commission shall annually, not later than June 2, report the results of its findings and activities of the preceding year and its recommendations to the governor and to the clerks of the senate and the house of representatives who shall forward the same to the joint committee on economic development and emerging technologies.

(h) Notwithstanding any general or special law, regulation, policy or procedure to the contrary, microbusinesses shall be exempt from the annual report fees imposed by the state secretary’s office, and minority businesses that qualify as microbusinesses shall be exempt from the diversity certification and third-party certification application fees imposed by the supplier diversity office. The state secretary is hereby authorized to promulgate regulations to assure the timely and effective implementation of this subsection.