AN ACT RELATIVE TO THE MASSACHUSETTS TECHNOLOGY DEVELOPMENT CORPORATION.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 1 of chapter 40G of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by striking out, in line 16, the word "forty F" and inserting in place thereof the following:- 23A or 40F.
SECTION 2. Said section 1 of said chapter 40G, as so appearing, is hereby further amended by inserting after the word "foregoing", in line 43, the following words:- , specifically including debt of and partnership interest in, as a general or limited partner, any general or limited liability partnership organized under the laws of the commonwealth, and debt of and membership interest in any limited liability company organized under the laws of the commonwealth.
SECTION 3. Section 2 of said chapter 40G, as so appearing, is hereby amended by inserting after the second paragraph the following paragraph:-
The purposes of the MTDC shall include, but not be limited to: (a) helping to create primary employment in technology-based enterprises in the commonwealth; (b) fostering the development of such enterprises in the commonwealth through the purchase of qualified securities in order to provide seed capital; and (c) attracting and managing the investment of both public and private capital among the citizens of the commonwealth to stimulate long-term economic development and to realize appropriate financial returns that enable the MTDC to be self-sufficient.
SECTION 4. Section 3 of said chapter 40G, as so appearing, is hereby amended by striking out, in line 71, the word "one hundred and fifty-six B." and inserting in place thereof the following:- 156B;
(v) participate as a general partner or limited partner in a limited partnership; and to participate as a member or manager in a limited liability company.
SECTION 5. The fourth paragraph of section 4 of said chapter 40G, as so appearing, is hereby amended by striking out clause (4) and inserting in place thereof the following clause:-
(4) the enterprise has the reasonable potential to create a substantial amount of primary employment within the commonwealth;.
SECTION 6. Said section 4 of said chapter 40G, as so appearing, is hereby further amended by striking out, in line 68, the words "five hundred thousand dollars" and inserting in place thereof the following figure:- $1,000,000.
SECTION 7. Said section 4 of said chapter 40G, as so appearing, is hereby further amended by striking out, in line 70, the words "one million dollars" and inserting in place thereof the following figure:- $2,000,000.
SECTION 8. Said section 4 of said chapter 40G, as so appearing, is hereby further amended by striking out, in lines 73 and 74, the words "and the other findings set forth above are made as to the additional investment" and inserting in place thereof the following words:- . If the additional investment does not meet all the conditions set forth in clauses (1) to (9), inclusive, in the fourth paragraph for initial investments, the additional investment may only be made if the board of directors, after considering the purposes of this chapter, makes a good faith determination that its fiduciary responsibility to protect the initial investment in an entity requires that the additional investment be made. From time to time, the board of directors may adjust these limits to reflect changes in annual inflation of the dollar.
SECTION 9. The fifth paragraph of said section 4 of said chapter 40G, as so appearing, is hereby amended by striking out clauses (2), (3) and (4) and inserting in place thereof the following clause:-
(2) At least 50 per cent of all MTDC investments shall be made in enterprises that will:
(a) locate in, or provide substantial employment to residents of, economic target areas as defined in section 3D of chapter 23A or municipalities that satisfy the criteria for economic target areas;
(b) provide substantial employment opportunities to unskilled or semi-skilled individuals;
(c) provide substantial employment opportunities for individuals undertaking job retraining as a consequence of technological change or corporate restructuring; or
(d) provide a service that primarily benefits residents of low and moderate income communities.
SECTION 10. Said section 4 of said chapter 40G, as so appearing, is hereby further amended by striking out the last paragraph.
SECTION 11. Section 4B of said chapter 40G, as so appearing, is hereby amended by striking out, in line 13, the words "twenty percent", and inserting in place thereof the following words:- 40 per cent.
SECTION 12. Said section 4B of said chapter 40G, as so appearing, is hereby further amended by striking out, in line 37, the word "share" and inserting in place thereof the following word:- start.
SECTION 13. Said section 4B of said chapter 40G, as so appearing, is hereby further amended by striking out, in lines 48 to 57, inclusive, the words "and such employment, as far as feasible, may be expected to be for residents of target areas as defined by chapter forty F, and offer employment opportunities to unskilled and semi-skilled individuals; provided, further, that such purchases shall not be subject to, and shall not be taken into account in otherwise applying the following limitations on investments under this chapter; requires not more than twenty percent of the assets of MTDC at any time to be invested in direct investments, and requires at least fifty percent of all MTDC investments for the previous year to be made in enterprises that will locate in target areas as defined in said chapter forty F" and inserting in place thereof the following words:- , but such purchases shall not be subject to the requirements of clause (2) of the fifth paragraph of section 4.
SECTION 14. Section 5 of said chapter 40G, as so appearing, is hereby amended by striking out, in lines 10 to 12, inclusive, the words ", provided that all such investments could be made by the MTDC directly and all of the requirements of section five shall be complied with".
SECTION 15. Section 6 of said chapter 40G, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following 2 sentences:- The report shall contain the number of additional jobs created and the number of persons hired as a result of the activities of the corporation who were recipients of programs provided for in chapter 115, 117A, or 118. The report shall detail the corporation's experience over the previous year in meeting the requirements of clause (2) of the fifth paragraph of section 4.
SECTION 16. Section 10 of said chapter 40G, as so appearing, is hereby amended by striking out, in lines 13 to 17, inclusive, the words "expiration of three years from the date of purchase of such qualified security, or, in the case of such information made or received by any member or employee of the corporation after the purchase of such qualified security, three years from the date such information was made or received" and inserting in place thereof the following words:- sale of the corporation's qualified security.