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General Laws

Section 16G. (a) In the executive office of housing and economic development, there shall be a department of business development, the Massachusetts office of consumer affairs and business regulation and a department of housing and community development. Subject to appropriation, the departments shall be provided with offices in Boston and elsewhere as may be approved by the governor and may expend sums for necessary expenses of those departments. The executive office may accept gifts or grants of money or property whether real or personal, from any source, public or private, including, but not limited to, the United States of America or its agencies, for the purpose of assisting the departments in the discharge of their duties.

(b) The following state agencies shall be within the department of business and technology: the office of business development, the office of small business and entrepreneurship, the office of science and technology, the office of travel and tourism, and the trade office.

(c) The following state agencies shall be within the department of consumer affairs and business regulation: the division of banks, the division of insurance, the division of standards and the division of professional licensure.

[There are no subsections (d) or (e).]

(f) The secretary of housing and economic development shall be appointed by the governor and shall be a person of skill and experience in the fields of housing and economic development. The secretary shall serve at the pleasure of the governor, shall receive such salary as the governor shall determine and shall devote full time to the duties of his office.

(g) In the case of a vacancy in the office of the secretary or in the case of a disability, as determined by the governor, or in his absence, the governor may designate an acting secretary to serve until the vacancy is filled or the absence or disability, as determined by the governor, ceases. The acting secretary shall have all the powers and duties of the secretary and shall have like qualifications.

(h) The secretary shall appoint a director for each department within the executive office. Any such director and any inspectors and other full-time employees appointed shall devote their full time during business hours to the duties of their offices and shall not engage in other employment or business activities during business hours. In accordance with the provisions of chapter 30A, and with the advice of the directors of the various departments, the secretary shall promulgate regulations with respect to the departments under the secretariat’s control.

(i) The secretary shall establish in the executive office an office of performance management and oversight. The secretary shall appoint a director to operate and administer said office who shall have experience with economic development in the public or private sector. The director shall establish performance measurements for all public and quasi-public entities engaged in economic development or subject to section 56 of chapter 23A and any private organizations under contract with the commonwealth to perform economic development services in order to improve the effectiveness of the economic development efforts of the commonwealth. In developing these measurements, the secretary shall seek out private sector advice and models that can be adapted to the needs of the commonwealth. Clear measurements shall be developed and effectuated while ensuring that no undue administrative burden is placed on agencies and organizations subject to this section. The director shall prepare an annual report for publication on progress to improve the effectiveness of the commonwealth’s economic development efforts and shall report regularly to the public on the progress the office and agencies within the office are making towards achieving stated goals.

Agencies to which the system applies shall file an annual report with the office of performance management and oversight. The annual report, which shall be in a form and manner prescribed by the secretary, shall include but not be limited to:

(1) a secretary approved agency plan for the year including the goals set for the year and the performance measurements by which to evaluate those goals and programs or initiatives; and

(2) the agency’s:

(i) operations and accomplishments;

(ii) performance on the goals and programs or initiative outlined in the agency’s approved plan;

(iii) receipts and expenditures during the agency’s fiscal year; and

(iv) assets and liabilities at the end of the agency’s fiscal year;

(3) audited financial reports of the agency;

(4) the number, nature and amounts of investments made and grants awarded by the agency;

(5) information detailing debt or equity investment of the agency;

(6) the number, nature and amounts of any loans, real estate loans, working capital loans and guarantees approved by the agency;

(7) other forms of financing or financial assistance that the agency provided;

(8) a report of patents or products resulting from agency-funded activities; and

(9) a description of technical assistance that the agency provided.

Performance measurements shall include at least the then-current fiscal year and the previous 3 fiscal years. All information in the performance measurement system shall be a public record unless otherwise exempted by law. The annual reports of each agency shall be made available to the public not later than December 31 and shall be published on the official website of the commonwealth and be electronically submitted to the clerks of the senate and house of representatives, the chairs of the house and senate committees on ways and means and the house and senate chairs of the joint committee on economic development and emerging technologies.

(j) The office shall annually re-evaluate the goals and measures established by the office and agencies within the office and monitor the results that the agencies report. The office shall recommend changes to proposed goals and measures as are appropriate to align goals and measures with the statewide economic development policy and plan required under this section.

The secretary shall use the performance measurements established under this section to determine the quality of service of all private entities, including regional economic development organizations that perform economic development services under contract with the office. The results of such performance measures shall be criteria used in negotiating any such contracts.

(k) The secretary shall establish in the executive office an office of planning and research for economic development. The office shall compile and produce statistics and analyses regarding labor markets and the general economic situation, in order to assist workers and businesses and to assist departments within the executive office in carrying out their missions. The office shall prepare and annually update a state economic data book, which shall contain a statistical and economic profile of the state and its regions. A copy of said data book shall be placed in the state library and in the central offices of the department of unemployment assistance, the department of career services, and the executive office of labor and workforce development and shall be made available to any person for review. The secretary may accept gifts or grants of money or property, whether real or personal, from any source, public or private, including, but not limited to, the United States of America or its agencies, for the purpose of assisting the office in the discharge of its duties. Nothing in this section shall confer any powers or impose any duties upon the secretary with respect to the foregoing agencies except as expressly provided by law.

(l) During the first year of each new gubernatorial administration, the governor shall convene an economic development planning council consisting of no fewer than 12 members: 1 of whom shall be the secretary of housing and economic development, who shall serve as chair; 1 of whom shall be the secretary of administration and finance; 1 of whom shall be the secretary of labor and workforce development; 1 of whom shall be the secretary of energy and environmental affairs; 1 of whom shall be the secretary of transportation; 1 of whom shall be appointed by speaker of the house of representatives; 1 of whom shall be appointed by the president of the senate; and 5 of whom shall be appointed by the governor: 1 of whom shall be the president of the University of Massachusetts or a president from a community college, 1 of whom shall be a representative from Associated Industries of Massachusetts, 1 of whom shall be a representative from the Massachusetts municipal association, 1 of whom shall be a representative from a chamber of commerce, and 1 of whom shall be from a venture capital firm with a principal place of business in the commonwealth. The governor may also appoint additional members of regional and local economic development groups and members of the business community to serve on the council. Members of the council shall serve for a term of 1 year or until an economic development policy has been approved by the governor under this section.

The secretary of housing and economic development, with the assistance of economic development planning council appointed under this section, shall develop and implement a written comprehensive economic development policy for the commonwealth and a strategic plan for implementing the policy. The policy shall set long term goals and measurable benchmarks which are not limited to a particular gubernatorial administration and shall give consideration to any impacts the plan may have on businesses employing 10 or fewer people. The strategic plan shall include any major economic development initiatives and programs of the secretariat and any agencies subject to this section. In developing the policy, the council shall review the published economic development policy and plan in effect at the commencement of the governor’s term of office and may hold public hearings throughout the commonwealth.

Once the policy and plan have been adopted by the secretary and the council, the council shall submit the policy and plan to the clerks of the senate and house of representatives and the joint committee on economic development and emerging technologies. The committee shall conduct a public hearing on the policy and plan prior to final approval by the governor. The approved policy and plan shall be published in writing and on the official website of the commonwealth not later than December 31 of that year.

The economic development planning council shall organize a yearly economic development summit. The summit shall be a forum for discussion of the following:— (i) major economic development initiatives of the administration; (ii) updates from regional workforce development councils; and (iii) any industry-specific policy concerns or initiatives.

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