Session DetailsSenate Session (Full Formal with Calendar)

--will be In Order. Chair recognizes the Senator from Essex, Mr. Tarr. For what purpose does the gentleman rise?

Why, thank you, Mr. President, and good morning. What a wonderful thing it is to be joined here with you and our colleagues so that we can begin day two of what we affectionately know as the budget adventure. Mr. President, in addition to complimenting you on your outstanding purple tie, I would call attention to the outstanding purple tie of the gentleman from Westfield, who has obviously spent considerable time researching all options for such things and has been successful. Mr. President, so that all of us can partake in the splendor of your haberdashery and that of the gentleman from Westfield, and also that of the gentle lady from Worcester, who has quite an interesting interpretation, and nice one this morning, of the color purple, I doubt the presence of a quorum.

The gentleman doubts the presence of a quorum. And the Chair can ascertain that, in fact, a quorum is not present. The court offices will summon the members and secure the doors.

To the children from the Seach school in Weymouth. We're going to ask you to join the veterans who are standing in the back of the room in leading us in the Pledge of Allegiance as soon as we have a quorum of the Senate present. So be prepared to lead us. And I think the way we'll do it is I will count one, two, three. And then you'll speak. Got it?

I would ask all members to please take their seats. Members, please take your seats. And the Chair would ask all members, staff, and guests to please rise and join the children from the William Seach school in Weymouth, and the Veterans Council from Weymouth in the Pledge of Allegiance. One, two, three.

I pledge allegiance to the flag of the United States of America. And to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

Thank you.

[APPLAUSE]

It's my pleasure to ask Senator O'Connor to introduce his special guests.

Thank you, Mr. President and through you, to the membership, I'd like to welcome the Weymouth Veterans Council and Weymouth Veterans Services Director, George Pontes, to the Senate today, the members of the Veterans Council are here, fulfilling their annual tradition of visiting the Statehouse to lay a wreath at the plaque for Ralph Talbot which is outside of the house chambers. I also want to thank the fourth grade class from the William Seach Elementary School for being here today.

William Seach is one of the five Congressional Medal of Honor recipients in Weymouth, which is the most amount of Congressional Medal recipients for one community in the entire nation. Weymouth and this Senate chamber are very proud of the tradition we have for supporting our veterans. So I wanted to join my colleagues in welcoming both the Seach school, as well as our Veterans from Weymouth and the Veterans Service Office from Weymouth. So thank you for coming to the Senate today.

[APPLAUSE]

On behalf-- on behalf of the members of the Senate, we want to thank the Veterans Council members for joining us this morning. And just to let you know that later today we will be observing our annual Memorial Day Senate ceremony here in the chamber. And we want to thank all of our veterans for their service and sacrifice over the years. And now, several resolutions have been presented, which the Clerk will read.

By Mr. Rosenberg, resolutions commending, Pam Wilmont and the occasion of her receiving the John Gardner Public Service Achievement Award, by Mr. Ross, resolutions congratulating [? Cindy ?] [? Xi, ?] [? Lily ?] [? Bergstrom, ?] [? Jyah ?] [? Mills, ?] and who else?

And Megan [INAUDIBLE] all of the town of Wayland, on receiving the Silver Award of the Girl Scouts of America.

The question comes on adoption of the resolutions All those in favor, say aye. Opposed, no. The ayes have it. And the resolutions are adopted. Senate will be in a very brief recess.

The Senate will be In Order. We are now going to entertain three amendments. The first will be 605, by Mr. Hinds. The second, 425 by Mr. Timilty, and the third, 572, by Mr. Cyr.

The Chair would ask all members to please remain in their seats and cease all conversation, so that the remarks of our recently-elected members may be heard and appreciated. The next amendment is number 605, offered by the Senator from The Berkshires, Mr. Hinds, the title of which the Clerk will read.

Amendment number 605 by Mr. Hinds, Brookshire County Workforce Alignment.

Chair recognizes the Senator from The Berkshires, Mr. Hinds.

Thank you, Mr. President. And through you, to the members. I rise in support of amendment number 605, which I filed.

Good morning to all of you. And I rise today, for the first time here, filling the chair of my predecessor. And like him, I rise without a full head of hair. But I do rise as someone with a full and deep sense in the belief in the power of this body.

And the collective wisdom that it brings to bear. I stand here very conscious of the moral authority that is called upon every time this body convenes, because it represents a direct lineage from the founding fathers of this great country and the principles upon which it was established.

Mr. President, Amendment 605 focuses on workforce development by creating a workforce czar or czarina, who will fill a critical gap between workers and businesses alike. It ensures the regional employment board can work closely with local businesses to directly link their workforce needs with local neighborhoods, high school graduates, colleges, and training programs.

You see, I come from a district with a rich manufacturing history. We were once home to GE, which employed, at its height, 13,000 people. It spurred a range of supplier companies. And it provided something even more distinct and important than that. It provided residents in the whole community with the confidence and the comfort of knowing that if you work hard, you can retire with dignity. And your children can get a job, and they can raise a family.

And in many ways, this tradition continues today. We have a global company of General Dynamics that has a business base in Pittsfield, and continues to hire 200 people every year. And in some instances, the buildings that were once home to this rich manufacturing history have now given birth to a new incarnation in our economy, as world-class cultural institutions now fill the buildings that were the basis for that manufacturing.

And in one instance, we're talking about Mass MOCA. Which, later this week, in just a few days, we'll be expanding, opening an expansion through the great assistance of the legislature. And by doing so when it does that, it will become the largest contemporary art museum in the country right here in Massachusetts.

And yet, we're at a crossroads in our region. To be sure, we have world-class art and culture. We have unparalleled access to nature. And we have a cost of living that make it a great place to start a family and raise that family.

But we also struggle with deeply-concerning trends. In my district, we have two of the three counties in the Commonwealth experiencing population loss. And with it, all of the financial hardships on education funding and municipal budgets.

Our median household incomes are far behind the rest of the state. And yet, as we try to turn the corner and right the ship, our basic infrastructure isn't even in place. Too many of our homes, too many of our towns are without high-speed internet, in one example.

My parents still live in the house that I grew up in, in a town that I have the distinct privilege of representing as I stand here today. And across the street is a small public library.

And at night, after hours, you'll see kids on the steps, opening laptops. You'll see cars pulling up. You can see the glow of faces from their laptops. Because they don't have internet at home.

And in this day and age, that is simply unacceptable. Our transportation systems are not up to 21st-century standards, keeping our workers from regional economic centers, or keeping them from that ability to travel to their jobs. Energy costs impact development and growth.

Making progress on these challenges requires tangible action. And amendment 605 directly confronts one concerning contradiction. And that is that we have 2,000 available jobs every single day in my region. And yet, we still have people looking for work.

And so what this amendment does, is it works to provide a bridge from those folks looking for work and the training programs that already exist, and the employers looking for workers. And as a result, it becomes a critical part of growing our economy.

Now, there are a lot of potential obstacles on the pathway to sustained employment. And many of you are very familiar with them. It might be transportation. It might be child care costs or mental health, and others.

But by taking a small amount of money, 75,000 in this case, and creating a dynamic workforce czar or czarina, as this amendment does, it gives an employers an address to turn to when they need that assistance. And it fills one critical gap in creating a thriving economy.

Now, I know all of you understand the value of filling this need in a community. It really cannot be overstated. And some of my previous work with high-risk youth showed me, firsthand, the value of a job in creating self-respect and hope for a kid that's at that moment of which path they might Take

And it also can restore faith in a community that has struggled economically. It can be the difference maker for a business owner who wants to grow. And so it is for these reasons that I hope to have your support for this amendment. Mr. President, there is one final element that I wish to underscore today. It is difficult to rise in this august chamber and not also be keenly aware and acknowledge the broader context.

The choices and decisions that we make here occur in an incredibly divisive moment in our nation's history. And many analysts have pointed to the divide that has emerged between our centers of innovation in our cities and the more rural areas, experiencing the challenges that I've outlined today.

It highlights the importance of investing in our areas that are far from the capital, and ensuring the dignity of work and opportunity reach every corner of the Commonwealth. It is one more reason I hope to have your support for this amendment.

And this critical moment also calls on all of us to be very deliberate, as we work in our own communities to foster dialogue across political perspectives and experience. I, for one, am proud that the principles of this great Commonwealth, as repeatedly reaffirmed by our residents and voters, serve as a starting point for all of us to walk together, shoulder by shoulder, on the winding path towards constantly improving this great land.

Mr. President, I am honored to join you in that effort. To all of you, I am honored to join you and proud to be here. And I thank you for the opportunity to speak in support of Amendment 605. and I hope to have your support. Thank you.

[APPLAUSE]

The question comes on adoption of the Amendment. And with that rousing reaction, the answer is obviously yes. Senate will be in a brief recess.

Senate will be In Order. And the next amendment, the next amendment is number 425, offered by the Senator from Bristol and Norfolk, Mr. Timilty, the title of which the Clerk will read.

Amendment number 425 by Mr. Timility, Avon Coalition for Every Student.

Chair recognizes the Senator from Bristol and Norfolk, Mr. Timilty.

Thank you, Mr. President. And through you, to the members, it is an honor to be here before you all today, to stand in support of the work underway in our communities, and to continue the steadfast advocacy of this august body to combat the deadly epidemic that is raging across our Commonwealth,

I would also like to thank the Senator from Ashland, for not only her immense assistance with this amendment, but for her outreach. This redrafted amendment will fund crucial substance abuse prevention coalitions in the 10 towns in the district that I am privileged to represent. The significant toll of the opioid crisis on all of our communities is abundantly clear. And that is something we were all painfully aware of.

From 2000 to 2015, the opioid-related death rate has multiplied more than four times over, surpassing the national average in this process. Last year in 2016, an average of 38 people per week died from opioid overdose.

While stark, these numbers tell only part of the story. Behind the numbers are real lives affected by this crisis. Behind the numbers are real lives that we have all lost. We have lost far too many fathers to overdose.

We've lost far too many mothers to overdose. Far too many brothers, far too many sisters, far too many colleagues, neighbors, and friends. We can do better and we must do better. Opioid addiction does not discriminate. There is not a community across our commonwealth that has been spared from the chilling effects of this insidious affliction.

That is why I rise today in support of this amendment that will allocate funds to community substance abuse prevention coalitions. These coalitions, as we are all well aware, are on the front lines fighting back against monumental dangers of opioid use. A diverse cross-section of residents, students, professionals, and town leaders are working to effectively address this crisis through a series of community-based responses, with missions that encompass both prevention and treatment.

Each group promotes enhanced awareness and education, serves as a gateway to resources for those in need, and seeks to address the epidemic with compassion, empathy, and understanding. By collaborating with devoted community partners, these coalitions are working to both develop and implement an evidence-based approach to this most lethal of afflictions, plaguing each and every one of our neighborhoods.

These coalitions are thoroughly invested in our communities. Now it is that time to further the investment in them, investment that has been so hardly worked on by this chamber in most recent times. With our support, these tireless advocates will be able to continue expanding their outreach, awareness, and prevention efforts.

With additional funding, further collaboration with trained mental health counselors and other professionals will be possible, allowing those in desperate need to access necessary and lifesaving resources. There is no overnight solution, as we're all painfully aware. That fact is clear.

But the people that work in our communities are signs of hope. It is time for us to renew and extend our support to these vital efforts. It is time for us to join together, as we have in the past so proudly in this chamber, with grassroots practices that are already underway in our communities. It is time for us to continue our own ongoing efforts to ensure that no more families are left to sustain the painful loss of a loved one as a result of an opioid overdose.

I am heartened by the progress that is evident in our communities progress that has been made possible in many instances by the efforts of people in this chamber and throughout the State government and the Commonwealth. I ask you to join me in supporting this amendment so we may grow those seeds of hope into tangible change on behalf of all communities of all men and women across this commonwealth. And with that, I hope this amendment is adopted, and I thank you all.

[CHEERING]

[APPLAUSE]

--no, the ayes have it. And the Amendment offered by the Senator from Norfolk, Bristol, and Plymouth, Mr. Timilty, is adopted. The Senate will stand in a brief recess.

Senate will be In Order. The next amendment is Amendment 572, offered by the Senator from the Cape and The Islands, the title of which the Clerk will read.

Amendment number 572 by Mr. Cyr, Small Business Technical Assistance

The Senator from the Cape and Islands, Mr. Cyr.

--through you to the members, I am honored to join my colleagues from Pittsfield and Milton, to join in addressing this chamber for the first time. They have set the bar very high. And just really honored to join with all of you in this unsettled and consequential time to speak in support of Amendment 572 Small Business Technical Assistance.

The Mass Growth Capital Business Technical Assistance Program provides competitive grants to community-based based organizations across the Commonwealth. These organizations, in turn, use the grants to support aspiring entrepreneurs and small business owners that dream of sustaining their own livelihood by starting or growing their own enterprise.

Small businesses supported through this program provide needed services and new local products, the kind of economic activity that revitalizes local business districts, creates jobs, and builds wealth in communities across Massachusetts. The small business Technical Assistance Program has served thousands of small businesses since it was first established by this body in FY 2007. It has been especially essential to jump-starting and sustaining successful minority and women owned businesses in low and moderate-income communities across the Commonwealth.

The reach of this program is quite impressive. In FY '16, when this line item was funded at $2 million, the program achieved the following, grants of 32 nonprofit organizations across the state, between $10,000 and $120,000, and many grants for professional services to 65 small businesses to help them in areas such as accounting, legal services, marketing, and technology. Providing technical assistance and training to providers of 1,891 business clients. 1,056 new jobs were created. And 1,594 jobs were preserved, which is a 22% increase over the results from FY 2015. And 367 businesses received financing that totaled nearly $30 million. And 75% of businesses that were supported by these monies had achieved a positive outcome. Either they opened, they grew, they stabilized. That's quite an impressive track record.

The assistance provided through this program is often the difference between success and failure. The assistance to write a viable business plan, obtain new customers, secure a storefront or processing facility, obtain financing, and otherwise navigate the many complexities of owning a small business. As you can see, this modest investment by the Commonwealth does an awful lot of good. I have a deep appreciation for the opportunities and challenges that small businesses across the Commonwealth-- but especially those on Cape Cod, Martha's Vineyard, ad Nantucket face-- because I had a front-row seat witnessing how small businesses come into being, quite literally.

My parents opened their own small business, a restaurant on Cape Cod, in 1985, when they were three months pregnant with me. After working for 11 years in other people's establishments, they opened a hole-in-the-wall eatery in Truro's center with 20 seats and $7,000 that they had gotten loaned from family.

And when I came along, they put me in a bassinet on the counter and hugged my toys from the clothespin that had held order slips. Later came my sister, and the business grew to a bustling 200-seat restaurant.

I admit, this makes for a rather saccharin story. But But in the Lower Cape community where I grew up, it was nothing special. Growing up in Truro, a hamlet of 2,003 individuals, I took for granted how integral small businesses were to who we were and who we are, and how we sustained ourselves 30 miles out in the Atlantic Ocean.

It seemed that most everyone's families were involved in small business. And if their families didn't own a business outright, then they worked in one. Unless you worked for the town, taught in the schools, or served on the police force, you relied on small business.

In Truro Elementary School, it wasn't unusual if your parents were proprietors or entrepreneurs. The [? Caguines ?] started Royal Flush Plumbing. My friend's best dad was a contractor who employed a crew of 12. One [? Sousa ?] family operated the local garden center.

Another [? Sousa ?] clan [? plyed ?] the waters of Cape Cod Bay for lobster. The Johnsons lobstered too. And the Austins were among the first to grow oysters in Wellfleet's nascent shellfish industry.

The [? Yinglings ?] started in an iconic pizza joint with cash savings. The [? Endidges ?] owned a penny candy store on Commercial street. The [? Savarids ?] and the [? Maluskis, ?] and the Evans owned inns. The [? Dunns ?] and the Sears had restaurants. The Sparrows opened the first coffee shop that had an espresso bar and gourmet chocolate on the Cape. And the [? Althouse ?] bakers operated a kitschy and irreverent store that sold their fine art and poetry.

Now, growing up in your family's small business isn't necessarily always easy. Teenage angst and demanding customers, especially on a slammed August night, can be a recipe for [? picant ?] family feuds. But we persevered.

My sister and I worked and bickered in the family restaurant for 14 seasons, doing everything from cooking behind the line to waiting tables, I note with some pride that I will have to be elected to this body up to seven terms to surpass that, the time of service that I spent serving people on Cape Cod. And my family, like so many others, put our hearts fully into this family business together.

It sustained us. It defined us. Not solely paying the bills, but giving our lives purpose and agency.

My generation's parents came to the Outer Cape to build a life, and were able to do so through the opportunities of entrepreneurship and small business. Most had either grown up on the Cape or relocated from working-class enclaves in Upstate New York, in Connecticut, in Southie, or from the Blackstone Valley.

They sought to eke out a living through hard work and creativity. Not everyone was successful. And each family enterprise had their own share of woes. But the barriers to getting in and launching your dreams could be scaled.

Unfortunately, it's become harder and harder for dreams like those dreams of my parents' generation to be realized on Cape Cod, Martha's Vineyard, and Nantucket. Mounting demands, an out-of-state real estate market, a limited workforce, corporate competition that focuses on the bottom line, not the community, the sheer cost of goods, mounting health care costs, a housing shortage, and so much else provide a pretty hard high bar to start off a small business, let alone succeed.

A generation ago, you could build a life and make a good living in the trades, in hospitality industry, or in our fishery. Now, without some support or unfortunately, independent wealth, this is harder to do. That's why the Small Business Technical Assistance Program is so important to Cape Cod, to Nantucket, to Martha's Vineyard, and our communities and neighborhoods all across the Commonwealth.

I'll give you three examples. J'amie and Christian Sparrow came home to Cape Cod five years ago with a dream, to open their own business that would serve up fresh local food, but also be a warm engaging place for both their staff and for our Lower Cape community.

J'amie had spent Summers in the Lower Cape as a child and a young adult. She met Christian, a native Cape Codder like me, one summer. They headed off to the West Coast to start their careers in food and hospitality.

But their families were here. The Cape was home. And they wanted to move back.

When they did, they came with an ambitious plan. But when Jamie and Chris sought financing for what they hoped would become their new livelihood, they were very discouraged.

Rejections from local banks due to the startup nature of their business in a very high-risk industry-- 9 out of 10 restaurants fail in the first five years-- landed them at the door of the Community Development Partnership, which receives funding through this amendment. A micro loan, paired with business counseling, helped them open Sunbird Food Truck in Wellfleet in 2012. With a focused vision, strong staff, and certainly some tweaks along the way, they did launch their business, the same dream my parents had a generation ago.

And it was such a success, they soon embarked on an additional adventure, Sunbird Kitchen. This time, with a business partner and yet another small loan from this program to round out local bank financing, they opened their brick-and-mortar Orleans restaurant in 2015. In four years, Sunbird has grown from one seasonal food truck with a handful of seasonal employees to a full-fledged year-round restaurant shared by 3 partners, 13 year-round employees, and a faithful customer following. And did I mention, Sunbird is open year round, which is the big deal on the Lower Cape.

Native Cape Codders Chris and Virginia Smith had found their way to growing a successful business on the Lower Cape by doing it together. The business, Full Service Landscaping, started off as a side project for Chris, who had a horticulture degree. In 2008, he transitioned it into a full-time business, Cape Cod Tree and Landscaping.

Within a few years, it became clear more hands were needed for the day-to-day operations. Virginia, who was a teacher, left her job and decided to join her husband in the rapidly-growing business. They incorporated in 2013.

And their business grew via word of mouth, Virginia's efforts with online marketing, and Chris's networking skills. They had an upward trajectory, now employing nine individuals. But with the rapid growth, challenges surfaced.

The business faced constant repair and maintenance issues with equipment, particularly a work truck. The issues resulted in mounting expenses. In spring 2015, the Smiths approached the local Community Development Corporation about a microloan funded through this program.

After presenting a compelling business plan, they were approved for a $25,000 loan to buy a newer dump truck. With four-wheel drive, the new truck expanded their season, enabled them to plow in the winter and tackle tree repair as well.

They said, "The loan bridged the gap for us to take our business to the next level," said Virginia. "Our cost for equipment, maintenance, and repairs had become too burdensome. With a new truck, those burdens have been reduced." As they contemplate a future, the Smiths are quite optimistic about their business.

And finally, Katie Murphy and Michael DeVasto wanted to take their small local business, Field Point Oyster Farm, to the next level. Again, with a sound business plan that focused on sustainable oyster cultivation, freshness and quality, they were poised to grow. The only missing piece was financing.

After working with staff-- again, funded by this program-- to hone their financial projections, they applied for and received a microloan to finance the purchase of gear and inventory. According to Michael, quote, "We wouldn't have been able to grow the volume of oysters we're now growing without the gear we purchased as a result of the microloan made possible by the Small Business Technical Assistance Program. The injection has been integral for us to grow our business."

So I rise in support of this line item because the small businesses that these programs help are inextricably linked to the Cape and Islands district. And they are also very much core to who I am, and to how I've come to serve in this historic and soon-to-be renovated chamber. Businesses like these carry the tradition of prior generations.

They also help make us a community by providing us space to work, to commune, and to eat. We have a ways to go, to restore opportunity and to ensure that those who have opportunity are not just based on their inherited wealth, whether or not you can be determined to be successful in entrepreneurship.

And while this body charts a course for a more equitable Commonwealth, this amendment is something meaningful that will make a difference to small communities and left-behind neighborhoods in cities and towns all across the Commonwealth. Mr. President, I ask for a favorable adoption of this amendment. Thank you.

[APPLAUSE]

--the amendment, all those in favor say aye. Opposed, no. The ayes have it. And the amendment is adopted. The Senate will be in a brief recess.

--several amendments will be considered as one. Is there objection? The Chair hears none. So the question will come at adoption of the amendments and under the Constitution. Excuse me, under the rules, not the Constitution, a call of the ayes and nays is required. The Clerk will call the roll, beginning with the [AUDIO OUT]

What roll call number is this?

24.

Yes. Michael J. Barrett.?

[? Yes. ?]

Joseph A. Boncore.

Yes.

Yes. Michael D. Brady?

Yes.

Yes. William N. Brownsburger?

Yes.

Yes. Harriette L. Chandler?

Yes.

Yes. Sonia Chang-Diaz, Cynthia Stone Creem, Julian Cyr?

Yes.

Yes. Viriata M. deMacedo?

Yes.

Yes. Sal N. DiDomenico?

Yes.

Yes.

Eileen M. Donoghue?

Yes.

Yes.

James B. Eldridge?

Yes.

Yes. Ryan C. Fattman?

Yes.

Yes. Jennifer L Flanagan?

Yes.

Yes. Linda [INAUDIBLE] Forry?

Yes.

Yes. Anne M. Gobi?

Yes.

Yes. Adam G. Hinds?

Yes.

Yes. Donald F. Humason? Jr?

Yes.

Yes. Patricia D. Jalen? Jalen?

Yes.

Yes. John F. Keenan?

Yes.

Yes. Eric P. Lesser?

Yes.

Yes. Jason M. Lewis?

Yes.

Yes. Barbara L'Italien?

Yes.

Yes. Joan B. Lovely?

Yes.

Yes.

Thomas M. McGee?

Yes.

Yes. Mark C. Montigny?

Yes.

Yes. Michael O. Moore?

Yes.

Yes.

Patrick M. O'Connor?

Yes.

Yes. Kathleen O'Connor Ives?

Yes.

Yes. Marc R. Pachedo?

Yes.

Yes. Michael J. Rodrigues?

Yes.

Yes. Richard J. Ross?

Yes.

Yes. Michael F. Rush?

Yes.

Yes. Karen E. Spilka?

Yes.

Yes. Bruce E. Tarr?

Yes.

Yes. Walter F. Timilty?

Yes.

Yes. James T. Welch?

Yes.

Yes.

Chair, have all members been recorded? The Senator from Middlesex and Norfolk [INAUDIBLE].

--from Middlesex, Mr. Barrett.

Mr. Barrett, [? that was recorded impermanent. ?]

Michael J. Barrett votes yes.

The Senator from Suffolk, Ms. [? Chang-Diaz? ?]

Mr. President, I have [INAUDIBLE].

Sonia Chang-Diaz votes yes. Yeah.

[GAVEL]

All of the body members have voted in the affirmative, none in the negative. The bundle is adopted by a single vote. And now, we will return to Amendment 266, Amendment 266. Where is Senator Brady?

--say it first, Mr. President.

The senator from Plymouth and Bristol, Mr. Brady.

Thank you, Mr. President. Through you to the members, I would like to thank yourself and the gentle lady, the Chairwoman of Ways and Means, and all the members of this body for all the work.

The Chair apologizes for interrupting the gentleman. The Chair made an error by not actually having the amendment read again by the Clerk, as is required. So the Senator from the South Coast moves an amendment, the title of which the Clerk will read.

Amendment 266 by Mr. Brady, GIC composition.

And now the chair recognizes the senator from Plymouth and Bristol, Mr. Brady, for remarks.

Again, thank you, Mr. President. And I'd also like to thank the gentle lady, the Chairwoman of Ways and Means, and all the members of this body for all the work being done today. It's a difficult year, as we know, under these tough fiscal constraints. But as we work through much deliberation on the budget, we're working to protect the consumer out there and to protect the Commonwealth and the taxpayers, but also to protect the workers, the people that work day in and day out to put food on their table, to pay for their mortgages and their rents, and to provide for their families.

So as we move through this, we also want to protect everybody and have everyone to have a seat at the table when we're making some of these decisions that affects their lives. And I think this amendment does just that, with more transparency and more openness in government which we have worked on over the past year. Like we did with the Commonwealth Conversation Tours, going out to the public, when we did with our President [INAUDIBLE] Senator Pacheco on the environment and energy, delivering our message out to the public and hearing from the public, and getting the public's input when we vote on issues that affect their lives.

So with this being said, I think this amendment does just that, giving everyone a chance at the table to have a chance up to the plate, and to do just what we're trying to do, to protect the consumers and get everyone a plate at the table. So when the vote is said, can I ask for a standing vote, Mr. President?

The gentleman the vote on this matter be taken by a standing vote. This is Amendment 266, a Redrafted amendment. Those voting in favor, please rise and be counted.

One, two, three, four, five, six, seven, [INAUDIBLE]. Yourself, Mr. President?

Those opposed, please rise.

One.

One, Mr. President.

How many?

25 in the affirmative, 1 in the negative.

25?

25. 25 having voted in the affirmative, 1 in the negative, the amendment is adopted. Mr. Leader?

[GAVEL]

Now we're going to return to the amendments in order, starting with number one, those that were not completed yesterday in the first three subject matters that we dealt with yesterday are up first. And then we will proceed in order, starting with number one. And that amendment is offered by the Senator from Essex, Mr. Tarr, the title of which the Clerk will read.

Amendment number one by Mr. Tarr, Community Preservation Act, Consolidated Net Surplus.

The Chair recognizes the Senator from Essex, Mr. Tarr.

Mr. President, I move the Senate be in a brief recess.

The Senate will be in a brief recess.

--recognized the Senator from Essex, Mr. Tarr.

Thank you, Mr. President. And through you to the members, Mr. President, I request unanimous consent to withdraw the pending amendment.

The gentlemen asks unanimous consent to withdraw the pending amendment. Is there an objection? The chair hears none. It is withdrawn. The Senate will be in a brief recess.

--Order. The next amendment is number 10, offered by the senator from Essex, Mr. Tarr, the title of which-- oh, I'm sorry, that is on hold. And the next item is number 11, offered by the same Senator, the title of which the Clerk will read.

Amendment 11 by Mr. Tarr, Room Occupancy Tax Modernization.

Chair recognizes the Senator from Essex, Mr. Tarr.

Thank you, Mr. President--

Vinnie, it's recess.

Senate will be in order. We are on Amendment number 11, the title of which the Clerk will re-read.

Amendment 11 by Mr. Tarr, Room Occupancy Tax Modernization.

Chair recognizes the Senator from Essex, Mr. Tarr.

Why, thank you, Mr. President, and through you , to the members. Mr. President, it was clear that at the outset of putting the budget together, somebody threw a switch and the tax-omatic went on. And there was a search far and wide to find additional things to be able to impose a tax on.

And one of the very interesting ones is this hybridized situation, if I can use that term, for those that are renting rooms through the use of electronic platforms. And Mr. President, it has long been said-- and I believe there is some merit to this argument that for those that are running what amounts to an accommodation business through that electronic platform, then the current means of shielding them from taxation is inappropriate.

And so Mr. President, the question left to us is what the best way is to approach what is an inequity between those who are in the business of renting hotel rooms and such, and those who are in the business of renting other occupiable spaces using an electronic platform. And Mr. President, what is presently in the budget is certainly the most extreme version of that, which is to suggest that anyone, who for any amount of time, at any moment, who engages in using an electronic platform, to be able to make available their home or sub component thereof, is engaged in the business of public accommodation. Now, Mr. President, we know that in many cases that is simply not the case.

And so earlier in looking at this, the administration proposed that someone that did this for a period of greater than 150 days would be considered to be in the business of providing public accommodation and subject to the hotel and motel tax. Well, clearly, Mr. President, there was room for some other considerations in that. And so it really left the question to determine what is and what is not someone who is in the business of doing this.

Now, if we were having the discussion about the intermediary that is brokering these arrangements, I think we could have a fair discussion that they are actually in the business of providing these units. But when we're talking about someone who is offering their home or sub component they thereof for a shorter period of time, and does it incidentally, they don't appear to be someone who was engaged in the business of providing public accommodation.

So Mr. President, this particular amendment would leave intact that component of the budget that currently stands relative to applying this tax, but suggests that it be applied to those who are actually in the business of doing this, and sets the standard, the benchmark for that, at a period of 30 days or greater, which really reflects someone who is in this business.

So we know, Mr. President, that we can't certainly not fulfill what the tax somatic has identified. And I know why there's a lot of consultation going on, Mr. President in the chamber about this, about what the 30 days means. And it's clear that someone who is doing this for that short period of time cannot fairly be said to be in this business.

And so this amendment very simply says that for 30 days, if it's longer than that, then clearly you are in the business and the tax should apply. Mr. President, I hope the amendment is adopted.

The senator from Plymouth and Barnstable, Mr. DeMacedo.

Thank you, Mr. President. I too rise in support of this amendment.

We all know that this is an issue that has been evolving here in the Commonwealth of Massachusetts much like the Uber situation of here in the Commonwealth of Massachusetts. And we, those of us who deal with public policy, have to find a way to address this.

And so we've had many iterations of this particular piece of legislation and how to address this. As the gentleman from Gloucester said, the administration came out with their perception of how they think we should address this, with the 150 days. We know the gentleman from the north end over in the House of Representatives, Aaron Michlewitz, put together a piece of legislation that addressed this the way that he sees how it would go. And certainly, this body put together a piece of legislation.

My sense is, what we're trying to do here is we want to make sure that for those individuals who just incidentally put a piece of property up for a short window of time because they have this stranded asset and there's a way to make a little bit of revenue for friends or family or whatnot under 30 days, that they are not in the business of renting these properties out, because they are already being taxed. They're being taxed on their property taxes. And they have already addressed that issue there. And any income would be taxed.

But in this particular case, this addresses it. So it is my understanding that, how do we do this in a way that creates a level playing field so that we do address the bigger players, those individuals that are actually buying facilities to rent them out through this platform that we see happening nowadays?

I think that's something that's fair. It should be looked at. But I also think we should encourage those individuals that have an opportunity, a stranded asset that they own. There's clearly creativity in what we're seeing here, entrepreneurism that we want to foster here.

And we believe the 30 days allows for that opportunity so that individuals who are already having probably trouble paying their property taxes and some of the expenses of their home can be helped in this regard. So it is my hope that we encourage this new platform. We encourage it to foster. It's creative. But we also don't stifle it with greater tax burden. So we believe this is a great compromise, and I hope the amendment is adopted.

The question comes on the adoption of the amendment. All those in favor say-- oh, the chair recognizes the senator from Bristol and Plymouth, Mr. Rodrigues.

[AUDIO OUT]

--me. I just want to take this opportunity to express why I do not think it's a good idea that we adopt this amendment. And I appreciate the gentleman from Gloucester and the gentleman from Plymouth trying to establish or create a timeline of when someone is engaged in the business of room sharing, room renting, or in the lodging business.

I will argue that it is from the first day that you rent a room or your house or your condo or whatever you're renting for money, for revenue, you are gaining, you are generating revenue. You are engaged in the business.

At that point in time, you are responsible for all of the items that it takes in order to be in business. You are responsible to ensure that your premise is properly insured so there's public safety. You are responsible for all of the components of being in business.

And it's from day one, if you are renting a room, your house, your cottage for revenue, you have revenue, you're making money, you are engaged in the business of lodging.

Now, I also appreciate the fact that we want to do everything we can to encourage this. But I'll say that the millennials are encouraging it. Today, short-term rental, the nontraditional lodging market, is 15% of the market in the Commonwealth of Massachusetts, and growing exponentially.

Just in the city of Boston alone, there were over 10,000 hosts on the Airbnb platform. And that's only one platform. There are many, many other platforms. So I hope this amendment is not adopted, Mr. President.

[? Question on the ?] adoption of the amendment. All those in favor say aye. Opposed, no? The no's have it. The amendment is not adopted.

The next is Amendment #12, offered by the same senator, the title of which the clerk will read.

[AUDIO OUT], Restoring the income tax to 5%.

The chair recognizes the senator from Essex, Mr. Tarr.

Thank you, Mr. President. For the members' edification or refreshment, this was an amendment that was put on hold yesterday at our request so that we could get an accurate count of the foregone revenue from this amendment. And Mr. President, to update members from the Department of Revenue, this would be about approximately $175 million when it's fully phased in.

And Mr. President, I would point out-- and if folks want to come over and look at our charts-- we've identified at least $268 million in savings opportunities that are not currently included in the Senate Ways and Means budget.

So if we wanted to strike a balance and comply with the mandate of the voters at the ballot box, we could do that. And at the same time, we could also make state government more efficient. I hope that we would all agree to a proposition like that, and therefore I hope the amendment is adopted.

The question comes on adoption of the amendment. All those in favor, say aye. Opposed, no. The nos have it. The amendment is not adopted.

The next is offered by the same senator, Amendment #13 the title of which the clerk will read.