AN ACT RELATIVE TO JOB CREATION AND WORKFORCE DEVELOPMENT
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to finance forthwith improvements to the Commonwealth’s economic infrastructure and promote economic opportunity, therefore, it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
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. 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; provided, however, that the amounts specified for a particular project within an item may be adjusted in order to facilitate projects authorized and that the total amount specified in each item shall not be adjusted. These sums shall be in addition to any amounts previously authorized and made available for these purposes.
SECTION 2A.
EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT
Office of the Secretary
SECTION 2B.
EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT
Department of Housing and Community Development
SECTION 2C.
EXECUTIVE OFFICE OF EDUCATION
Office of the Secretary
MASSACHUSETTS DEPARTMENT OF TRANSPORTATION
Office of the Secretary
EXECUTIVE OFFICE OF ENERGY AND ENVIRONMENTAL AFFAIRS
Department of Conservation and Recreation
EXECUTIVE OFFICE OF PUBLIC SAFETY AND HOMELAND SECURITY
Office of the Secretary
SECTION 3. Section 16G of chapter 6A of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by adding the following subsection:-
(n) There shall be a Designated Port Area Fund within the executive office of housing and economic development. The fund shall be administered and managed by a fund director, who shall be appointed by the secretary. The executive office shall adopt guidelines that are necessary to implement the program. The executive office shall consult with the Massachusetts Department of Transportation in the development of guidelines and may coordinate with other agencies, community development organizations and instrumentalities of the commonwealth to effectuate this section.
Money in or received for the fund may be deposited with and invested by an institution designated by the executive office and paid as the fund director shall direct. A return on an investment received by the fund shall be deposited and held for the use and benefit of the fund. The executive office may make payments from a deposit account for use under this section.
The executive office shall use the fund to make grants, loans or a combination thereof for the design, construction, repair, renovation, rehabilitation, or other capital improvements of existing commercial and marine industrial infrastructure and public maritime transportation infrastructure in designated port areas. In making a loan, the executive office shall consider: (i) the impacts on future economic growth, commercial and industrial development and wastewater and wastewater pretreatment within the designated port area and on the commercial fishing industry; (ii) the attendant economic benefits to the commonwealth; and (iii) the benefits to the commonwealth’s transportation system including the benefits derived from enhancing intermodal connections from the seaports to road, rail and air facilities.
The executive office shall submit an annual report to the clerks of the house of representatives and the senate, who shall forward the report to the chairs of the senate and house committees on ways and means, the chairs of the senate and house committees on rules and the senate and house chairs of the joint committee on economic development and emerging technologies on or before December 31. The report shall include a current assessment of the progress of each project funded through the program.
SECTION 4. Section 61 of chapter 7 of the General Laws, as so appearing, is hereby amended by adding the following subsection:-
(s) The SDO shall, every 2 years and in consultation with the Massachusetts Office on Disability, establish goals for participation of individuals with disabilities in all areas of state procurement contracting. Participation goals may be met by contracting or subcontracting with businesses that hire, or identify and recruit with the intent to hire, qualified applicants with disabilities. SDO shall provide assistance to the executive offices in determining opportunities for contracting with businesses that hire persons with disabilities to meet the participation goal set forth in this paragraph, including contractors and subcontractors providing goods and services under multi-year contracts or grants funded by agencies within the executive offices.
SDO shall file an annual report with the clerks of the house of representatives and the senate on or before October 31 on the progress made toward meeting the participation goal set forth in this paragraph.
SECTION 5. Section 18 of chapter 21A of the General Laws, as so appearing , is hereby amended by striking out, in line 269, the figure “3D” and inserting in place thereof the following figure:- 3G.
SECTION 6. 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 7. Chapter 23A of the General Laws is hereby amended by striking out sections 3A to 3G, inclusive, as so appearing, and inserting in place thereof the following 7 sections:-
Section 3A. (a) There shall be an economic development incentive program, or EDIP, which 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 this section and sections 3B to 3H, inclusive, the following words shall have the following meanings unless the context clearly requires otherwise:
“Affiliate”, a business which directly or indirectly controls another business, a business which is controlled by another business or a business which is under direct or indirect common control of at least 1 other business including, but not limited to, a 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 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.
“EDIP contract”, a written 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 1 location in the commonwealth to another location in the commonwealth or the expansion of an existing facility located in the commonwealth if 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 with 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 noncompliance”, 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.
“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 shall include: (i) a finding by the municipality that the proposed project will be 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 or, in a case in which 2 or more cities or towns agree to act jointly for some purpose pursuant to a collaborative agreement, 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; provided, however, that “permanent full-time employee” shall not include contractors or part-time employees who may be included in a calculation of the controlling business’ 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 any building or other structure on a parcel of real property which, when completed, will result in at least a 100 per cent increase in the assessed value of the real property over the assessed value of the 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’ tax liability and which may result in a payment from the department of revenue to the controlling business or a reimbursement of costs incurred for capital investments made as a part of a certified project.
“Replacement of an existing facility”, the relocation of business functions and personnel from 1 facility located in the commonwealth to another facility located 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”, an agreement between a municipality and a real property owner consistent with subsection (b) of section 3E and section 59 of chapter 40.
“TIF”, tax increment financing.
Section 3B. (a) There shall be an economic assistance coordinating council, or EACC, established within MOBD which shall consist of: the secretary of housing and economic development or the secretary’s designee who shall serve as co-chairperson; the undersecretary of housing and community development or a designee who shall serve as co-chairperson; 1 person to be appointed 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 8 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 northeastern 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 in the commonwealth and 1 of whom shall be from the Merrimack Valley. The 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 may:
(i) promulgate regulations and adopt policies and guidances to effectuate the purposes of sections 3A to 3H, inclusive;
(ii) certify projects for participation in the economic development incentive program and establish regulations for evaluating the proposals of those projects;
(iii) certify and approve tax increment financing agreements and special tax assessments pursuant to section 3E of this chapter and section 59 of chapter 40;
(iv) authorize municipalities to apply to the United States Foreign Trade Zone Board for the privilege of establishing, operating and maintaining a foreign trade zone in accordance with section 3G;
(v) assist municipalities in obtaining state and federal resources and assistance for certified projects and other job creation and retention opportunities;
(vi) 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
(vii) monitor the implementation of the economic development incentive program.
(c) The secretary of housing and economic development shall appoint within the 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. The MOBD shall annually submit to the governor, the chairs of senate and the house committees on ways and means and the senate and house chairs of 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 pursuant to the EDIP. The 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. Each proposed project submitted by a controlling business to the EACC for review and certification shall include: (i) a detailed description of the proposed project; (ii) a representation by the controlling business regarding the amount of capital investment to be made, the number of new jobs to be created and the number of existing jobs to be retained; (iii) 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; (iv) a municipal project endorsement; and (vi) any other information that the EACC shall require by regulation, policy or guidance.
(b) Upon receipt of a completed 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 any additional investigation that the EACC shall make and incorporate in its minutes: (i) the proposed project is located or will be located within the commonwealth;
(ii) (A) if the controlling business has at least 1 existing facility in the commonwealth, then the proposed project shall be 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 (2) of clause (B) ; or (B) the proposed project will either: (1) enable the controlling business to hire new permanent full-time employees in the commonwealth; or (2) 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; (iii) the controlling business has committed to maintaining new and retained jobs for a period of at least 5 years after the completion of the proposed project; (iv) 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; (v) 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 have undertaken the proposed project but for the EDIP tax credits and local tax incentives available to it pursuant to this chapter; and (vi) the proposed project complies with all applicable statutory requirements and with any other criteria that the EACC may prescribe by regulation, policy or guidance.
The EACC shall, by regulation, policy or guidance, 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 (v).
(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 or more than 20 years from the date of certification.
Section 3D. (a) The EACC may award to the controlling business of a certified project or to its affiliate tax credits available pursuant to subsection (g) of section 6 of chapter 62 or pursuant to section 38N of chapter 63. The amount of any such credits awarded and the schedule on which those credits may be claimed shall be determined by the EACC based on: (i) 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; (ii) 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; (iii) the amount of capital to be invested by the controlling business in the certified project; (iv) 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; (v) 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; (vi) the economic need of the municipality or region in which the certified project is to be located as determined by income levels, employment levels or educational attainment levels; and (vii) 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 or pursuant to section 38N of chapter 63, the EACC may, at its sole discretion: (i) limit the award to a specific dollar amount; (ii) specify the schedule on which the tax credits may be claimed; and (iii) limit or restrict the right of the controlling business to carry unused tax credits forward to subsequent tax years. When a controlling business expects that new jobs will be created over a period of multiple years, the EACC, in awarding tax credits, may allocate and make such credits available to the taxpayer on a schedule that ensures that the tax credits are claimed on or after the date that the jobs are created.
(b) The EACC may grant refundable tax credits to a certified project; provided, however, that the EACC shall not authorize more than $5,000,000 in refundable tax credits for any single calendar year.
(c) The total amount of tax credits that may be authorized by the EACC under this section for any calendar year shall not exceed $30,000,000 which shall 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 tax credits to a controlling business that spans multiple years if the total amount of credits due to be taken in any single calendar year does not exceed the applicable cap.
(d) The 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 of 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 pursuant to 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 that the 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 the certified project shall include a fully executed copy of the tax increment financing agreement adopted pursuant to said section 59 of said chapter 40. Any tax increment financing agreement shall be approved by the EACC before it shall be valid and enforceable. The EACC may approve a tax increment financing agreement pursuant to regulations adopted by the EACC. Any 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, 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. The agreement shall include the amount of the tax reduction and the period of time over which such reduction shall be in effect, which shall be for not less than 5 years or not 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. The reduction shall be based upon a percentage reduction in the tax that otherwise would be due on the full assessed value of the affected property. The special tax assessment shall provide for tax reduction at least equal to the following: (i) in the first year, the tax reduction shall be not less than 50 per cent of the tax that would be due based on the full assessed value of the affected property; (ii) in the second and third years, the tax reduction shall be not less than 25 per cent of the tax that would be due based on the full assessed value of the affected property; and (iii) in the fourth and fifth years, the tax reduction shall be not less than 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 (i) to (iii).
A written agreement for a special tax assessment pursuant to this subsection shall be approved by the EACC before it is valid and enforceable. The EACC may approve special tax assessments pursuant to rules and 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 of 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 shall not be amended without the approval of the EACC.
Section 3F. (a) Not 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 a report with MOBD, 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 finds that a controlling business or an affiliate is in material noncompliance 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 a 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 noncompliance 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 noncompliance shall result in revocation of a project certification, taking into account: (i) the conduct of the controlling business subsequent to the project certification; (ii) the extent to which the material noncompliance is the result of unforeseen conditions that are outside the control of the controlling business; (iii) the potential impact on the municipality in which the certified project is located; and (iv) other considerations as the EACC shall establish by regulation or policy.
Where the EACC determines that material noncompliance 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 noncompliance. 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 noncompliance 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 general law 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 pursuant to 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 as an economic target area or economic opportunity area in connection with an application from a municipality seeking the designation under the federal Empowerment Zones and Enterprise Communities Program 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 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: (i) the proposed economic target area has an unemployment rate that exceeds the statewide average by not less than 25 per cent; (ii) if the proposed economic target area is located in a metropolitan area, then not less than 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; (iii) if the proposed economic target area is not located in a metropolitan area, then not less than 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; (iv) the proposed economic target area has a poverty rate which is not less than 20 per cent higher than the average poverty rate for the commonwealth; (v) 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 greater than 20 per cent; or (vi) 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 not less than 1,000,000 square feet; (ii) the proposed establishment of a regional technology center of not less than 3,000,000 square feet; or (iii) the proposed development of a Class I renewable energy generating facility.
(c) A city or town with an economic opportunity area may make application to the United States Foreign Trade Zones Board under 19 U.S.C. 81(a) to 81(u), inclusive, for a grant to the 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 the Foreign Trade Zones Board for a grant to the city or town for the privilege of establishing, operating and maintaining a foreign trade zone.
SECTION 8. Subsection (a) of section 3J of said chapter 23A, as appearing in the 2014 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-
The Massachusetts office of business development shall partner with regional economic development organizations to 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 responses to businesses seeking assistance from the commonwealth, the office shall create a regional economic development program. To implement the program, 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 workforce 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 9. Said section 3J of said chapter 23A, as so appearing, is hereby further amended by adding the following subsection:-
(d) Contracts for services entered into under this section shall include, but not be limited to, the following services to be performed by the regional economic development organizations on behalf of the commonwealth: (i) assessing regional competitive strengths, weaknesses and opportunities; (ii) representing the regional business community in long-range workforce skills pipeline planning efforts to ensure robust skills and talent pipelines that meet regional needs; (iii) representing the regional business community in collaborative, long-range workforce skills, transportation and land use planning; (iv) promoting regionally significant industry clusters; (v) promoting connections across sectors of the regional economy; (vi) maintaining an inventory of key development parcels; (vii) marketing the region in coordination with the Massachusetts marketing partnership established under section 13A; and (viii) furnishing advice and assistance to businesses and industrial prospects which may locate in the region.
SECTION 10. Section 65 of said chapter 23A, as inserted by section 12 of chapter 286 of the acts of 2014, is hereby amended by striking out subjection (j) and inserting in place thereof the following subsection:-
(j) The executive office of housing and economic development shall consult with the department of agricultural resources to develop and implement the Massachusetts Food Trust Program. To the maximum extent feasible, the community development financial institution and the executive office of housing and economic development shall seek to align efforts with the recommendations of the most recent Massachusetts local food action plan as accepted by the Massachusetts food policy council or subsequent plans accepted by the council.
SECTION 11. Section 65 of said chapter 23A, as inserted by section 29 of chapter 287 of the acts of 2014, is hereby repealed.
SECTION 12. Said chapter 23A of the General Laws is hereby further amended by adding the following section:-
Section 67. (a) The secretary of housing and economic development shall establish a financial services advisory council in the executive office of housing and economic development, the purpose of which shall be to advise the governor or the governor's designee on policies, strategies and initiatives designed to preserve and advance the competitiveness and leadership of the commonwealth's financial services industry, including the banking, investment management and insurance sectors.
(b) The council shall be comprised of: the secretary of housing and economic development, who shall serve as chair; the senate and house chairs of the joint committee on economic development and emerging technologies; the senate and house chairs of the joint committee on financial services; the commissioner of higher education; the executive director of the Massachusetts international trade office; and 8 representatives of the business community who shall be appointed by the secretary of housing and economic development, including not less than 2 business representatives from each of the following sectors: banking, investment management and insurance sectors; not less than 1 business representative from a company with its headquarters located in Suffolk, Middlesex, Essex, Norfolk or Worcester county or district; not less than 1 business representative from a company with its headquarters located in Hampshire, Hampden, Franklin or Berkshire county or district; and not less than 1 business representative from a company with its headquarters located in Bristol, Plymouth, Nantucket or Barnstable county or district or the county of Dukes County. The secretary, in making the appointments, shall consider the size of the business representative's company, including its employee base within the commonwealth and the amount of assets under management or premiums in force. Business representatives shall be appointed for 2-year terms and may be reappointed without limitation on the number of terms.
(c) The council shall convene at least 3 meetings per calendar year to exchange ideas and develop strategies for business and government to work together to strengthen the financial services industry in areas such as public policy, workforce development, international trade and direct foreign investment and industry promotion.
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 clause (1) and inserting in place thereof the following clause:-
(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 hereby further amended by striking out clause (8) and inserting in place thereof the following clause:-
(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 said chapter 23G, 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 and 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 and 26, the words “the economic opportunity area” and inserting in place thereof the following words:- EDIP tax.
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, inclusive, 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, inclusive, 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 said chapter 40, as so appearing, is hereby amended by striking out, in lines 15 to 18, inclusive, 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, as that term is defined in section 2 of chapter 40R, 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 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, 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, 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 said subsection (a) of said section 60 of said chapter 40, as so appearing, is hereby amended by striking out subclauses (1) to (3), inclusive, and inserting in place thereof the following 2 subclauses:-
(1) the numerator of which shall be: (A) 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 (B) 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. Said 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, 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 per cent 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 51per cent 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.
SECTION 29. Section 6 of chapter 40A of the General Laws, as so appearing, is hereby amended by striking out, in line 29, the word “six” and inserting in place thereof the following figure:- 12.
SECTION 30. Section 9 of said chapter 40A, as so appearing, is hereby amended by striking out, in line 165, the word “two” and inserting in place thereof the following figure:- 3.
SECTION 31. 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 32. Section 2 of chapter 40H of the General Laws, as so appearing, is hereby amended by striking out, in lines 59 and 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 33. Section 4G of chapter 40J of the General Laws, as so appearing, is hereby amended by striking out, in lines 19 and 24, the figure “$3” and inserting in place thereof, in each instance, the following figure:- $1.
SECTION 34. 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, but not limited to: (i) electronic health records; (ii) consumer wearable devices; (iii) care systems; (iv) payment management systems; (v) healthcare robotics; (vi) telemedicine; and (vii) 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 may: (A) develop a market access program connecting provider and payer needs with ideas and products through pilot programs; (B) undertake a healthcare big data initiative designed to improve healthcare data transparency and availability; (C) create opportunities for e-health cluster stakeholders, including investors, entrepreneurs and healthcare providers, to convene to exchange ideas and make connections; and (D) encourage the adoption of open-source software principles, which may include recommendations toward the establishment of procurement rules that enable major technology systems, platforms and products purchased by the state to remain open for the development of third party end-user software and application designs that improve ease of access and utilization of those major technology systems. In furtherance of the purposes of this subsection, the institute shall coordinate and collaborate with such other 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 those purposes. The corporation may 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 the purposes of this subsection any other moneys available to the corporation that are not expressly restricted by law.
SECTION 35. Section 6I of chapter 40J of the General Laws is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-
(b) There shall be a MassCAN advisory board to consist of 13 members to be appointed by the governor, including: 1 person recommended by the Massachusetts Competitive Partnership, Inc.; 1 person recommended by the Massachusetts Business Roundtable; 1 person recommended by the Massachusetts Technology Leadership Council, Inc.; 1 person recommended by a federally-funded research corporation; 1 person recommended by the chair of the computer science department of a public university; 1 person recommended by the Massachusetts Association of School Superintendents, Inc.; 1 person recommended by the Greater Boston chapter of the Computer Science Teachers Association; 1 person recommended by the METCO program; 1 person recommended by the Massachusetts Technology Leadership Council Education Foundation; 1 person recommended by The Partnership, Inc.; 1 person recommended by TechNet; 1 person recommended by the Society of Hispanic Professional Engineers; and 1 person recommended by the Massachusetts chapter of the Society of Women Engineers.
Governor dissaproved of the following section -- [For message see H4576]
SECTION 36. The General Laws are hereby amended by inserting after chapter 40W the following chapter:-
Chapter 40X
Community Benefit Districts
Section 1. As used in this chapter, the following words shall have the following meanings unless the context clearly requires otherwise:
“Community benefit district” or “CBD”, a district formed pursuant to this chapter which has at least 1 geographic area with clearly defined boundaries.
“CBD corporation”, the nonprofit corporation designated to receive funds and otherwise implement the CBD, including the 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 municipal governing body as part of the creation of the CBD.
“Management plan”, any subsequent, updated version of the initial management plan that is approved by the board of directors.
“Memorandum of understanding with the municipality” or “MOU”, a document which 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.
“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 the CBD.
“Property”, real property located within the CBD, whether commercial, tax exempt or residential.
“Property owner”, the owner of record of property; provided, however, that when a property is owned by an entity other than a natural person, a petition signer for that property shall include the petition-signer’s title and shall demonstrate its authority to sign as owner; and provided further, that if a property is owned by multiple persons, the signature of 1 owner shall be sufficient if that owner demonstrates authority to sign on behalf of the other owners.
“Standard government services”, governmental functions, programs, activities, facilities, improvements and other services that a municipality is authorized to perform or provide and that are paid for out of the 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. The rights and powers of a CBD corporation in a CBD approved by the municipal governing body pursuant to section 4 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, human and environmental services related to the enhancement of the district or other supplemental services or programs that would further the purposes of this chapter.
Section 3. 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 and contain the following:
(i) the signatures of the property owners or petition signers in the proposed district who support the establishment of the district and who will pay more than 50 per cent of the assessments proposed to be levied; provided, however, that the amount of the assessment attributable to property owned by the same property owner that is in excess of 20 per cent of the amount of all assessments proposed shall not be included in the calculation or, alternatively, if there are not more than 4 property owners in the proposed district, all such property owners shall sign the petition;
(ii) a description of and a site map delineating the boundaries of the proposed CBD;
(iii) the identity and address of the CBD corporation, including its initial set of directors and officers and a copy of its by-laws;
(iv) An initial management plan, which shall set forth the supplemental services and programs, vision, strategy, budget and fee structures proposed for the CBD;
(v) the criteria for waiving the fee for any property owner within the CBD who can provide evidence that the imposition of such a fee would create a significant financial hardship; and
(vi) a staffing plan, which may include private nonprofit, for profit or public agency contractors or subcontractors.
A 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 the petition shall be filed with the undersecretary of housing and community development and the secretary of housing and economic development not more than 30 days following receipt of the petition by the clerk of the municipality.
Section 4. (a) The municipal governing body shall hold a public hearing not more than 60 days following receipt of the petition by the clerk of the municipality. Written notification of the hearing shall be sent to each property owner within the boundary of the proposed CBD not more than 30 days before a hearing by mailing notice to the address listed in the property tax records. Notification of the hearing shall be published for 2 consecutive weeks in a newspaper of general circulation in the area, the last publication being not less than 14 days before the hearing and listed on the municipality’s website. The public notice shall contain the proposed boundaries of the CBD, the proposed fee level, a summary of supplemental programs and services and where the property owner may obtain a full copy of the initial management plan.
(b) Prior to the public hearing, the municipal governing body shall direct the town clerk, city clerk or a designee to determine that the establishment criteria have been met, as set forth in section 3. 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.
(c) Not more than 45 days after the public hearing, a municipal governing body, in its sole discretion, may, by vote of the city council with approval of the mayor in a city and by vote of the board of selectmen in a town, declare the district organized and describe the boundaries and service area of the district; provided, however, that in a town with a population of not more than 10,000, the district shall not be declared organized without a vote by the board of selectmen and a town meeting. The 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 approved initial management plan. Upon such declaration, the CBD may commence operations.
(d) 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 unless the CBD is dissolved pursuant to 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.
(e) Participation in the CBD shall be permanent unless the CBD is dissolved pursuant to section 10. All property owners, including public, private and nonprofit entities, shall participate, although each shall contribute in accordance with fee structures based upon the benefits anticipated to be received, as outlined in the initial management plan.
Section 5. (a) Each CBD corporation shall have a not for 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 per cent of the board shall be composed of property owners or their designees, and the remaining members may be a balanced group of stakeholders representing the community, including residents, municipal government, business tenants and nonprofits.
(b) The initial management plan shall be updated at least once every 3 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 municipal governing body.
(c) The CBD corporation shall comply with the public charity reporting requirements of section 8F of chapter 12.
Section 6. All real property located within a proposed CBD shall be considered in the fee formula for 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 established within the CBD. A waiver is not intended to be permanent and shall 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. Upon formal approval of a CBD, the 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 1 year may not exceed 1/2 of 1 per cent of the sum of the assessed valuation of the real property owned by participating members in the CBD district.
The basis of a district fee may be determined by a formula utilizing at least 1 or a combination of the following methodologies:
(i) different levels for varying classifications of real property;
(ii) benefit zones;
(iii) assessed valuation;
(iv) building or parcel square footage;
(v) street frontage; or
(vi) 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 not more than 3 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 3.
The CBD may change the formula or the assessment level set forth in the initial management plan or management plan by 2/3 vote of its board of directors, ratified by vote of the property owners who are required to pay more than 50 per cent of the assessments. Within 30 days after amendment of the formula or assessment level, the CBD shall file notice of the changes with the municipal governing body, the 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 may receive grants, donations, revenues generated from parking fees, CBD activities or gifts on behalf of the CBD.
Section 8. The collector or treasurer of the municipality may collect district fees in designated CBDs and disburse the funds to the CBD corporation. In addition to the items identified in section 3A of chapter 60, the collector or treasurer may include notices for district fees in the envelope or electronic message in which a property bill is sent.
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 or treasurer shall disburse fee revenues to the CBD corporation not later than 30 days after the collection of such fees, together with any interest earned on those fees.
Following establishment of the CBD, all fees billed by or on behalf of the CBD and unpaid after 30 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. At any time after the establishment of a CBD pursuant to this chapter, the district boundaries upon which the establishment was based may, upon the recommendation of the CBD corporation, be amended by the 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; provided, however, that if the petition concerns an amendment to expand the district, the petition shall be accompanied by signatures of the property owners who are required to pay more than 50 per cent of the assessments in the expanded area. If the petition concerns an amendment to reduce the size of the district, it shall be accompanied by signatures of the property owners who are required to pay more than 50 per cent of the assessments levied in the existing district. The municipal governing body shall hold a public hearing not more than 60 days after its receipt of a petition to amend the district boundaries. In the case of an expansion petition, written notification of the hearing shall be sent to each property owner within the proposed expansion area of the CBD not more than 30 days before the hearing, by mailing notice to the address listed in the property tax records. In the case of a reduction petition, the notice shall 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 2 consecutive weeks in a newspaper of general circulation in the area with the last publication being not more than 14 days before the hearing and shall be listed on the municipality’s website. For an expansion petition, the public notice shall contain the proposed expanded boundaries of the CBD, the fee level, a summary of supplemental programs and services, and where the property owner may obtain a full copy of the management plan. For a reduction petition, the 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. Not more than 30 days after the hearing, and upon determination by the city or town clerk, or designee, that the petition has met the necessary criteria, the municipal governing body, in its sole discretion, may by a vote declare the district boundaries amended.
Upon the adoption of an amendment to the district boundaries which increases the size of the district, owners of property to be added to the district shall be notified of the new boundaries of the district in accordance with section 4.
Section 10. A CBD may be dissolved by petition to the municipal governing body and a subsequent decision by that governing body to authorize dissolution.
A petition to dissolve a CBD shall contain the signatures of the property owners who are required to pay more than 50 per cent of the assessments levied in the district; provided, however, that the amount of the assessment attributable to property owned by the same property owner that is in excess of 20 per cent of the amount of all assessments proposed shall not be included in the calculation.
The municipal governing body shall hold a public hearing not more than 30 days after its receipt of a petition on the issue of dissolution.
After a public hearing, the 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; until funds are on deposit and available therefore or until a repayment schedule has been formulated and municipally approved. Upon dissolution, the CBD shall not incur 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. 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 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 community benefit district.
Section 11. A CBD may include noncontiguous geographic areas within the municipality. If the petition proposes such a district, each noncontiguous area shall separately qualify by meeting the signature threshold in section 3. 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 noncontiguous areas shall be signed by property owners representing at least 50 per cent of the assessments in the CBD as a whole. A petition to expand such a CBD shall be signed by property owners representing 50 per cent of the assessments in the expanded area only. A CBD that includes noncontiguous areas may set services, programs and fees to take into account the differing circumstances of each area.
Section 12. A CBD may be located in more than 1 municipality if the petition in each municipality separately complies with this chapter. Petitioners shall 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 1 municipality shall be signed by property owners with 50 per cent of the assessments in that municipality’s portion of the district. A petition to expand such a CBD shall be signed by property owners representing 50 per cent of the assessments in the expanded area only. A petition to dissolve the entire CBD located in more than 1 municipality shall be signed by property owners representing 50 per cent of the assessments in each municipality. A CBD located in more than 1 municipality may set services, programs and fees to take into account the differing circumstances of each area.
SECTION 37. Section 2 of chapter 40R of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after the definition of “Approved smart growth zoning district” the following definition:
“Approved starter home zoning district”, a starter home zoning district that has been adopted by a city or town and approved by the department in accordance with this chapter and the regulations of the department, so as to be eligible for the receipt of financial and other incentives. The department may revoke its approval if the obligations of the city or town are not met.
SECTION 38. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by inserting after the definition of “Approving authority” the following definition:-
“Area of concentrated development”, a center of commercial activity within a municipality, including town and city centers, other existing commercial districts in cities and towns, and existing rural village districts.
SECTION 39. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking out the definition of “Developable land area” and inserting in place thereof the following definition:-
“Developable land area”, that area within an approved smart growth or starter home zoning district that can be feasibly developed into residential or mixed use development determined in accordance with regulations of the department. Developable land area shall not include: (1) land area that is already substantially developed, including existing parks and dedicated, perpetual open space within such substantially developed portion; (2) open space designated by the city or town as provided in section 6; or (3) areas exceeding one-half acre of contiguous land that are unsuitable for development because of topographic features or for environmental reasons, such as wetlands.
It shall include the land area occupied by or associated with underutilized residential, commercial, industrial or institutional buildings or uses that have the potential to be recycled or converted into residential or mixed use developments as determined in accordance with regulations of the department.
SECTION 40. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking out the definition of “Eligible locations” and inserting in place thereof the following definition:-
“Eligible locations”, areas that by virtue of their infrastructure, transportation access, existing underutilized facilities, or location make highly suitable locations for residential or mixed use smart growth zoning districts or starter home zoning districts, including without limitation (1) areas near transit stations, including rapid transit, commuter rail and bus and ferry terminals; or (2) areas of concentrated development, including town and city centers, other existing commercial districts in cities and towns, and existing rural village districts.
SECTION 41. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking the definitions of “Letter of eligibility” and “Mixed use development” and inserting in place thereof the following 4 definitions:-
“Housing production plan”, an affordable housing plan adopted by a municipality and approved by the department in accordance with its regulations.
“Housing production summary”, a detailed summary of the city or town’s: (1) affordable housing production history, (2) housing needs and housing demand assessment, (3) analysis of development constraints and capacity, (4) current housing goals and strategy for achieving those goals and (5) proposed locations for affordable housing production.
“Letter of eligibility”, a letter to a city or town to be issued by the department within 60 days of receiving a complete and approvable application from a city or town for approval of a smart growth or starter home zoning district.
“Mixed use development”, a development containing a mix of residential uses and non-residential uses, including, without limitation: commercial, institutional, industrial or other uses; all conceived, planned and integrated to create vibrant, workable, livable and attractive neighborhoods.
SECTION 42. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by striking out the definition of “Project” and inserting in place thereof the following 2 definitions:-
“Production bonus payment”, a one-time payment to a municipality from the Smart Growth Housing Trust Fund, established in section 35AA of chapter 10 for each housing unit of new construction that is created in a starter home zoning district pursuant to the starter home overlay provisions of the applicable zoning ordinance or by-law.
“Project”, a proposed residential or mixed-use development within a smart growth or starter home zoning district.
SECTION 43. Said section 2 of said chapter 40R, as so appearing, is hereby further amended by inserting after the definition of “Smart growth zoning district certificate of compliance” the following 3 definitions:-
“Starter home”, a single family home not exceeding 1,850 square feet in heated living area; provided, however that nothing herein shall preclude a city or town from adopting a starter home zoning district that would permit construction on a single lot in a starter home zoning district of an accessory dwelling unit of 600 square feet or less on the same lot as a starter home.
“Starter home zoning district'', a zoning district consisting of not less than 3 contiguous acres of developable land area, adopted by a city or town pursuant to this chapter, that is superimposed over 1 or more zoning districts in an eligible location, within which a developer may elect to either : (1) develop starter homes in accordance with requirements of the starter home zoning district ordinance or by-law or (2) develop a project in accordance with requirements of the underlying zoning district, and otherwise consistent with department guidance.
“Starter home zoning district certificate of compliance”, a written certification by the department in accordance with section 7.
SECTION 44. Section 3 of said chapter 40R, as so appearing, is hereby amended by inserting, after the word “district”, in lines 2 and 7, the following words:- or starter home zoning district.
SECTION 45. Said section 3 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “districts”, in line 15, the following words:- or starter home zoning districts.
SECTION 46. Section 4 of said chapter 40R, as so appearing, is hereby amended by inserting after the word “growth”, in line 3, the following words:- or starter home.
SECTION 47. Said section 4 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “district”, in line 14, the following words:- or starter home zoning district.
SECTION 48. Said chapter 40R is hereby further amended by striking out sections 5 to 10, inclusive, as so appearing, and inserting in place thereof the following 6 sections:-
Section 5. The chief executive of a city or town desiring to adopt a smart growth zoning district or starter home zoning district ordinance or by-law shall submit the necessary materials to the department for a preliminary determination of eligibility for approval. The information in the application shall:
(a) identify and describe the boundaries of the proposed smart growth zoning district or starter home zoning district;
(b) identify and describe the developable land area within the proposed smart growth zoning district or starter home zoning district;
(c) as to smart growth zoning districts only, identify and describe other residential development opportunities for infill housing and the residential re-use of existing buildings and underutilized buildings within already developed areas;
(d) include any comprehensive housing plan or housing production plan previously adopted by the city town or, if the city or town has no comprehensive housing plan or housing production plan, a housing production summary, as set forth in section 8;
(e) include a copy of the proposed smart growth district or starter home zoning district ordinance or by-law;
(f) by narrative and exhibits, establish the elements set forth in section 6.
Section 6. (a) A proposed smart growth zoning district or starter home zoning district shall satisfy the following minimum requirements:
(1) Each proposed district shall be located in an eligible location.
(2) The zoning for each proposed smart growth zoning district shall provide for residential use to permit a mix of housing for families, individuals, persons with special needs and the elderly.
(3) Housing density in a proposed smart growth district shall be at least: 20 units per acre for multi-family housing on the developable land area, 8 units per acre for single-family homes on the developable land area, and 12 units per acre for 2 and 3 family buildings on the developable land area. Housing density in a proposed starter home district shall satisfy the following criteria: (a) the density shall be no less than 4 units per acre of developable land area; (b) the development shall emphasize smart growth principles of development, such as cluster development and other forms of development providing for common open space usable for passive or active recreational activities, or the use of low-impact development techniques; and (c) at least 50 per cent of the starter homes to be developed in a proposed starter home district, excluding accessory dwelling units, must contain 3 or more bedrooms.
(4) The zoning ordinance or by-law for each proposed smart growth zoning district shall provide that not less than 20 per cent of the residential units constructed in projects of more than 12 units shall be affordable housing and shall contain mechanisms to ensure that not less than 20 per cent of the total residential units constructed in each proposed district shall be affordable housing.
(5) The zoning ordinance or by-law for each proposed starter home zoning district shall provide that, as a condition of the increased density permitted in a starter home zoning district, not less than 20 per cent of the residential units created as starter homes shall be affordable to and occupied by individuals and families whose annual income is less than 100 per cent of the area median income as determined by the United States Department of Housing and Urban Development, and shall contain mechanisms to ensure that the required percentage of the total residential units constructed in each proposed starter home district shall meet such affordability requirements, including an affordable housing restriction, as defined in section 31 of chapter 184, that has a term of not less than 30 years.
(6) A proposed smart growth zoning district shall permit infill housing on existing vacant lots and shall allow the provision of additional housing units in existing buildings, consistent with neighborhood building and use patterns, building codes and fire and safety codes.
(7) A proposed smart growth zoning district or starter home zoning district shall not be subject to limitation of the issuance of building permits for residential uses or a local moratorium on the issuance of such permits. In addition, a proposed starter home zoning district shall not be subject to any municipal environmental or health ordinances, bylaws or regulations that exceed applicable requirements of state law or regulation, unless the department of environmental protection has determined that specific local conditions warrant imposition of more restrictive local standards, or the imposition of such standards would not render infeasible the development contemplated under the comprehensive housing plan, housing production plan or housing production summary submitted as part of the application for such district.
(8) A proposed smart growth zoning district or starter home zoning district shall not impose restrictions on age or any other occupancy restrictions on the district as a whole. This shall not preclude the development of specific projects within a smart growth zoning district that may be exclusively for the elderly, the disabled or for assisted living. Not less than 25 per cent of the housing units in such a project within a smart growth zoning district shall be affordable housing, as defined in section 2.
(9) Housing in a smart growth zoning district or starter home zoning district shall comply with federal, state and local fair housing laws.
(10) A proposed smart growth zoning district or starter home zoning district may not exceed 15 per cent of the total land area in the city or town. Upon request, the department may approve a larger land area if such approval serves the goals and objectives of this chapter.
(11) The aggregate land area of all approved smart growth zoning districts and starter home zoning districts in the city or town may not exceed 25 per cent of the total land area in the city or town. The department may approve a larger combined land area if the department determines that such approval serves the goals and objectives of this chapter.
(12) Housing density in any proposed district shall not over burden infrastructure as it exists or may be practicably upgraded in light of anticipated density and other uses to be retained in the district.
(13) A proposed smart growth zoning district or starter home zoning district ordinance or by-law shall define the manner of review by the approving authority in accordance with section 11 and shall specify the procedure for such review in accordance with regulations of the department.
(b) A city or town may modify or eliminate the dimensional standards contained in the underlying zoning in the smart growth zoning district or starter home zoning district ordinance or by-law in order to support desired densities, mix of uses and physical character. The standards that are subject to modification or waiver may include, but shall not be limited to; height, setbacks, lot coverage, parking ratios and locations and roadway design standards. Modified requirements may be applied as of right throughout all or a portion of the smart growth zoning district or starter home zoning district, or on a project specific basis through the smart growth zoning district or starter home zoning district plan review process as provided in the ordinance or by-law. A city or town may designate certain areas within a smart growth zoning district or starter home zoning district as dedicated perpetual open space through the use of a conservation restriction as defined in section 31 of chapter 184 or such other means as may be created by state law. The amount of such open space shall not be included as developable land area within the smart growth zoning district or starter home zoning district. Open space may include an amount of land equal to up to 10 per cent of what would otherwise be the developable land area if the developable land would be less than 50 acres, and 20 per cent of what would otherwise be the developable land area if the developable land area would be 50 acres or more.
(c) The zoning for a proposed smart growth zoning district may provide for mixed use development.
(d) A smart growth zoning district or starter home zoning district may encompass an existing historic district or districts. A city or town, with the approval of the department, may establish a historic district in an approved smart growth zoning district or starter home zoning district in accordance with chapter 40C, so long as the establishment of the historic district meets the requirements for such a historic district and does not render the city or town noncompliant with this chapter, as determined by the department. The historic districts may be coterminous or non-coterminous with the smart growth zoning district or starter home zoning district. Within any such historic district, the provisions and requirements of the historic district may apply to existing and proposed buildings.
(e) A city or town may require more affordability than required by this chapter, both in the percentage of units that must be affordable, and in the levels of income for which the affordable units must be accessible, provided, however, that affordability thresholds shall not unduly restrict opportunities for development.
(f) With respect to a city or town with a population of fewer than 10,000 persons, as determined by the most recent federal decennial census, for hardship shown, the department may, pursuant to regulations adopted under this chapter, approve zoning for a smart growth zoning district with lower densities than provided in this chapter, if the city or town satisfies the other requirements set forth in this section; provided, however, that such approval shall not be withdrawn solely because, in a future census, the population of the city or town exceeds 10,000 persons.
(g) Any amendment or repeal of a zoning ordinance or by-law affecting an approved smart growth zoning district or starter home zoning district shall not be effective without the written approval by the department. Each amendment or repeal shall be submitted to the department with an evaluation of the effect on the city or town's comprehensive housing plan or housing production plan, if any. Amendments shall be approved only to the extent that the district remains in compliance with this chapter. If the department does not respond to a complete request for approval of an amendment or repeal within 60 days of receipt, the request shall be deemed approved.
(h) Nothing in this chapter shall affect a city or town's authority to amend its zoning ordinances or by-laws under chapter 40A, so long as the changes do not affect the smart growth zoning district or starter home zoning district.
Section 7. (a) On or before October 1 of each year after the year of approval of a district by the department, the department shall send a smart growth zoning district certificate of compliance or starter home zoning district certificate of compliance, as applicable, to each city or town with an approved district. In order to receive such a certificate, the city or town shall verify within the time specified by the department that:
(1) the city or town has adopted and approved a smart growth zoning district or a starter home zoning district, as applicable;
(2) the certification has not been revoked by the department;
(3) the district is being developed in a manner that reasonably complies with the applicable minimum requirements set forth in section 6 for housing density and affordability;
(4) the approving authority has not unreasonably denied plans for projects, or has only denied plans for projects in a manner consistent with its smart growth zoning district ordinance or by-law or starter home zoning district ordinance or by-law, as applicable, the city or town's comprehensive housing plan, housing production plan, or the housing production summary submitted with the city or town’s initial application for approval by the department, as applicable, and this chapter.
(b) If the department is unable to certify compliance, the department shall hold a public hearing subject to chapter 30A. If the department concludes that the city or town is in material noncompliance with the requirements set forth in this section, the department may revoke certification. A revocation of certification shall be recorded with the registry of deeds or land court registry district for the county or district within which the city or town is located, indexed in the grantor index under the name of the city or town. Any revocation of certification or other sanctions imposed by the department shall not affect the validity of the smart growth zoning ordinance or by-law or starter home zoning district ordinance or by-law, as applicable, or the application of such ordinance or by-law to land, development or proposed development within the smart growth zoning district.
Section 8. A city or town shall submit to the department, concurrently with the city or town’s application for a letter of eligibility, either an existing comprehensive housing plan, an existing housing production plan, or a housing production summary. The plan or summary shall include an estimate of the projected number of units of new construction that could be built in the proposed smart growth zoning district or starter home zoning district. If a city or town has already completed a comprehensive housing plan or housing production plan, the city or town shall submit with its application to the department a description of how the proposed smart growth zoning district or starter home zoning district relates to and will further the goals of its comprehensive housing plan or housing production plan, as well as an estimate of the projected number of units of new construction that could be built within the district.
Section 9. Each city or town with an approved smart growth zoning district or starter home zoning district shall be entitled to payments pursuant to this section.
(a) The commonwealth shall pay from the trust fund a zoning incentive payment, according to the following schedule:
Projected Units of
New Construction Payment
Up to 20 $10,000
21 to 100 $75,000
101 to 200 $200,000
201 to 500 $350,000
501 or more $600,000
Subject to any conditions imposed by the department as a condition of approving a smart growth zoning district or starter home zoning district, the zoning incentive payment shall be payable upon confirmation of approval of the district by the department. The projected number of units shall be based upon the zoning adopted in the smart growth zoning district or starter home zoning district, and consistent with either the city or town's comprehensive housing plan or housing production plan, if any, or the housing production summary submitted in accordance with section 8.
(b) The commonwealth shall pay from the trust fund a one-time density bonus payment to each city or town with an approved smart growth zoning district and a one-time production bonus payment to each city or town with an approved starter home zoning district. This payment shall be $3,000 for each housing unit of new construction created in the smart growth zoning district and $3,000 for each housing unit of new construction created in the starter home zoning district. The amount due shall be paid on a unit-by-unit basis in accordance with department regulations, upon submission by a city or town of proof of issuance of a building permit for a particular housing unit or units within the district.
(c) The executive office of environmental affairs, the executive office of transportation, the department of housing and community development and the secretary of administration and finance shall, when awarding discretionary funds, use a methodology of awarding such funds that favors cities or towns with approved smart growth zoning districts or starter home zoning districts and other approved zoning policies or initiatives that encourage increased affordable housing production in the commonwealth including, but not limited to, inclusionary zoning.
Section 10. A city or town may adopt, in accordance with the regulations of the department, design standards applicable to projects undergoing review by the approving authority, to ensure that the physical character of development within the smart growth zoning district or starter home zoning district is complementary to adjacent buildings and structures and is consistent with the city or town’s comprehensive housing plan or housing production plan, if any, and any applicable master plan or plans for the city or town. Such standards may address the scale and proportions of buildings, the alignment, the width and grade of streets and sidewalks, the type and location of infrastructure, the location of building and garage entrances, off-street parking, the protection of significant natural site features, the location and design of on-site open spaces, exterior signs and buffering in relation to adjacent properties. In a smart growth zoning district, the standards shall provide for high-density quality development consistent with the character of building types, streetscapes and other city or town features traditionally found in densely settled areas of the city or town or in the region of the city or town.
A design standard shall not be adopted if it will add unreasonable costs to residential or mixed-use developments. A design standard shall not unreasonably impair the economic feasibility of proposed projects. The department may disapprove a request for the determination of eligibility for a smart growth zoning district or starter home zoning district on account of a design standard adding such unreasonable costs or unreasonably impairing such feasibility.
SECTION 49. Section 11 of said chapter 40R, as so appearing, is hereby amended by striking out, in line 2, the words “district zoning” and inserting in place thereof the following words:- zoning district or starter home zoning district.
SECTION 50. Said section 11 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “district”, in line 11, the following words:- or starter home zoning district.
SECTION 51. Said section 11 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “zoning”, in line 17, the following words:- district or starter home zoning district.
SECTION 52. Said section 11 of said chapter 40R, as so appearing, is hereby further amended by inserting after the word “district”, in lines 70, 74 and 128, each time it appears, the following words:- or starter home zoning district.
SECTION 53. Said chapter 40R is hereby further amended by striking out section 12, as so appearing, and inserting in place thereof the following section:-
Section 12. The department shall be responsible for the administration, review, and reporting on the smart growth zoning district and starter home zoning district programs as provided in this chapter. The department shall undertake or cause to be undertaken an annual review and the preparation of a report on the programs set forth in this chapter and may require data to be provided by cities and towns with smart growth zoning districts or starter home zoning districts. The report shall be prepared on the basis of such data and shall be made available to the general public and submitted to the general court annually, not later than November 15 of each year, and shall cover the status of the program through the end of the prior fiscal year. The report shall identify and describe the status of cities and towns that are actively seeking letters of eligibility. It shall identify approved smart growth zoning districts and starter home zoning districts and the amounts and anticipated timing of one-time density bonus payments and one-time production bonus payments during the prior and current fiscal year. It shall summarize the amount of land areas zoned for particular types of projects in both proposed and approved districts, the number of projects being reviewed by cities and towns under section 11, including the number and type of proposed residential units, the number of building permits issued, the number of completed housing units and their type, and it shall set out the one-time density bonus payments and one-time production bonus payments made to each city or town. For the then current and the immediately succeeding fiscal years it shall make estimates for the: (i) number and size of proposed new districts; (ii) potential number of residential units to be allowed in new districts; and (iii) anticipated construction activity.
SECTION 54. Said chapter 40R is hereby further amended by striking out section 14, as so appearing, and inserting in place thereof the following section:-
Section 14. If, within 3 years, no construction has been started within the smart growth zoning district or starter home zoning district, the department shall require the cities and towns to repay to the department all monies paid to the city or town under this chapter for said smart growth zoning district or starter home zoning district. Said 3 years shall commence on the date of the payment of the zoning incentive payment for said smart growth zoning district or starter home zoning district. All monies repaid to the department under this section shall be returned to the trust fund.
SECTION 55. 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 56. 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, however, 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 57. Said section 1 of said chapter 40V, as so appearing, is hereby further amended by inserting after the word “property”, in line 34, the following words:- , including site assessment and remediation of hazardous materials, but.
SECTION 58. 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 the.
SECTION 59. 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 60. 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 61. 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, each time it appears, the following words:- housing development.
SECTION 62. The introductory paragraph of 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 tax credits available under subsection (q) of section 6 of chapter 62 or section 38BB of chapter 63 of not more than 25 per cent of the cost of qualified project expenditures allocable to the market rate units in a project, as determined by the department, to a sponsor of a certified housing development project.
SECTION 63. Said section 5 of said chapter 40V, as so appearing, is hereby further amended by striking out, in lines 9, 13 and 15, the word “project” and inserting in place thereof, in each instance, the following words:- certified housing development project.
SECTION 64. Section 3 of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out, in lines 114 and 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 65. Subparagraph (11) of paragraph (a) of part B of said section 3 of said chapter 62, as so appearing, is hereby amended by adding 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 66. Paragraph (a) of part B of said section 3 of said chapter 62, as amended by section 12 of chapter 10 of the acts of 2015, is hereby further amended by adding the following subparagraph:-
(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 an instrumentality or authority of the commonwealth; provided, however, that in the case of a single person or a married person filing a separate return or as head of household, the total amount deducted in the taxable year shall not exceed $1,000; and provided further, that 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 a statute of limitations on the assessment of an income tax under this chapter, a deduction taken under this subparagraph shall be subject to recapture in the taxable years in which a distribution or a refund is made for a reason other than: (i) to pay qualified higher education expenses as defined in 26 U.S.C. 529(e)(3); or (ii) the beneficiary's death, disability or receipt of a scholarship. For the purposes of this subparagraph, “purchaser” or “contributor” shall mean the person shown as the purchaser or contributor 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 a deduction.
Annually, not later than October 15, the commissioner shall submit a report to the secretary of administration and finance, the chairs of the senate and house committees on ways and means and the senate and house chairs of the joint committee on revenue that provides the following information: (i) the number of prepaid tuition contracts or savings trust accounts entered into or opened by residents of the commonwealth during the prior year; (ii) the amount of the allowable deductions claimed under this subparagraph during the prior year; and (iii) the adjusted gross income of each taxpayer qualifying for the deduction allowed under this subparagraph.
SECTION 67. Section 6 of said chapter 62 is hereby amended by striking out subsection (g), as appearing in the 2014 Official Edition, and inserting in place thereof the following subsection:-
(g) (1) As used in this subsection, “certified project”, “controlling business”, “EACC”, “EDIP contract” and “proposed project” shall have the same meanings as ascribed to them in section 3A of chapter 23A.
(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 the credit is authorized by the EACC, up to an amount equal to 50 per cent of the liability in a taxable year; provided, however, that the 50 per cent limitation shall not apply where the credit is refundable under paragraph (6). The amount of the credit shall be determined by the EACC under section 3D of chapter 23A and other criteria or guidance that the council shall from time to time adopt; provided further, 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 under 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, however, that the 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 the 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 the credit carryforwards, if any, are estimated by the commissioner to offset tax liabilities during the year. A portion of the annual cap not awarded by the EACC in a calendar year shall not be applied to an award in a subsequent year. The EACC shall provide the commissioner with the documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance to the secretary of administration and finance and the secretary of housing and economic development.
(4) A taxpayer entitled to a credit under this subsection for a taxable year may, to the extent authorized by the EACC, carry over and apply to the tax liability imposed by this chapter for any of the next succeeding 10 taxable years the portion, as reduced from year to year, of those credits that exceed the tax liability imposed by this chapter for the taxable year; provided, however, that the taxpayer shall not apply the credit to the tax liability imposed by this chapter for a taxable year beginning more than 5 years after the certified project ceases to qualify as a certified project under chapter 23A; and provided further, that notwithstanding the foregoing, the EACC may limit or restrict the carryover of credits under section 3D of said chapter 23A.
(5) For the purposes of this subsection, the commissioner may aggregate the activities of entities, whether or not incorporated, under common control as established in 26 U.S.C. 41(f).
(6) The commissioner shall promulgate the 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 the credit may, at the option of the taxpayer and to the extent authorized by the EACC, be refundable to the taxpayer. In each case, the EACC shall specify the timing of the 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 the 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 under section 3F of chapter 23A, a portion of the tax credit otherwise allowed by this section and claimed by the taxpayer prior to the date on which EACC makes the determination to revoke its certification of the project shall 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 the certification of the project. 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 that certification is revoked.
(9) If a certified project is sold or otherwise disposed of, a tax credit allowed under this subsection may be transferred to the purchaser of the certified project; provided, however, that the EDIP contract shall be assigned to and assumed by the purchaser of the certified project and the assignment and assumption shall be approved in writing by the EACC.
(10) Nothing in this subsection shall limit the authority of the commissioner to make an adjustment to a taxpayer’s liability upon audit.
SECTION 68. Said section 6 of said chapter 62 is hereby further amended by striking out, in line 893, as so appearing, the word “ten” and inserting in place thereof the following figure:- 25.
SECTION 69. Said section 6 of said chapter 62 is hereby further amended by striking out, in line 894, as so appearing, the words “substantial rehabilitation” and inserting in place thereof the following word:- project.
SECTION 70. Said section 6 of said chapter 62 is hereby further amended by striking out, in line 905, and in lines 939 and 940, as so appearing, the word “rehabilitation” and inserting in place thereof, in each instance, the following word:- project.
SECTION 71. Said section 6 of said chapter 62 is hereby further amended by striking out, in lines 923 and 935, as so appearing, the figure “5” and inserting in place thereof, in each instance, the figure:- 10.
SECTION 72. Said section 6 of said chapter 62, as most recently amended by section l of chapter 52 of the acts of 2015, 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 USC 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 may 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 may 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 pursuant to this subsection shall not exceed $50,000 in a 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 pursuant to 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 that 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 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. 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 73. Subsection (a) of section 6I of said chapter 62, as appearing in the 2014 Official Edition, is hereby amended by inserting after the definition of “Median income” the following definition:-
“Qualified donation", real or personal property given to a sponsor for the use of purchasing, constructing or rehabilitating a qualified Massachusetts project.
SECTION 74. Said subsection (a) of said section 6I of said chapter 62, as so appearing, is hereby further amended by inserting after the definition of “Regulatory agreement” the following definition:-
“Sponsor”, a nonprofit organization which: (i) has been issued a ruling from the United States Internal Revenue Service that the organization is exempt from income taxation pursuant to section 501(c)(3) of the Internal Revenue Code; (ii) has material control over the operations of a qualified Massachusetts project; and (iii) either: (1) is a certified Community Development Corporation as defined in chapter 40H; (2) is a certified Community Housing Development Organization pursuant to 24 CFR section 92.2; or (3) is determined by the department to have a history of successful development of affordable housing projects in the commonwealth.
SECTION 75. Subsection (b) of said section 6I of said chapter 62, as so appearing, is hereby amended by adding the following paragraph:-
(4) The department may allocate Massachusetts low-income housing tax credits pursuant to this section for a qualified donation by a taxpayer. The total Massachusetts low-income housing tax credit available to a taxpayer for a qualified donation shall be equal to 50 per cent of the donation’s value as determined by the department; provided, however, that the department may increase the amount of available credit for a qualified donation to not more than 65 per cent of the donation’s value if it deems the increase to be necessary to the project’s viability.
For the purposes of counting an authorization of a Massachusetts low-income housing tax credit towards the total sum that the department may authorize annually pursuant to part (i) of paragraph (1) of subsection (b), the department and the commissioner shall count any amount of Massachusetts low-income housing tax credit authorized to a taxpayer for a qualified donation as 1/5 of the amount authorized for the qualified donation.
SECTION 76 Said section 6I of said chapter 62, as so appearing, is hereby further amended by inserting after the word “project”, in line 81, the following words:- , whether by qualified donation or otherwise.
SECTION 77. Subsection (c) of said section 6I of said chapter 62, as so appearing, is hereby amended by striking out paragraph (3) and inserting in place thereof the following paragraph:-
(3) The Massachusetts low-income housing tax credit authorized to a taxpayer with respect to a qualified Massachusetts project other than a qualified donation shall be taken against the taxes imposed pursuant to this chapter, claimed equally for 5 years and subtracted from the amount of state tax otherwise due for each taxable period and shall not be refundable.
The Massachusetts low-income housing tax credit authorized to a taxpayer with respect to a qualified Massachusetts project attributable to a qualified donation shall be taken against the taxes imposed pursuant to this chapter, claimed in a single year and subtracted from the amount of state tax otherwise due for the taxable year and shall not be refundable.
Any amount of the low-income housing tax credit, whether by qualified donation or otherwise, that exceeds the tax due for a taxable year may be carried forward to any of the 5 subsequent taxable years.
SECTION 78. Section 6M of said chapter 62, inserted by section 29 of chapter 238 of the acts of 2012, is hereby amended by striking out, in line 89, as so appearing, the words “as defined in section 3A” and inserting in place thereof the following words:- designated under section 3G.
SECTION 79. Paragraph (4) of subsection (c) of said section 6M of said chapter 62, as so inserted, is hereby amended by striking out, in lines 155 and 156, the words “it has utilized at least 95 per cent of the 3 year total of” and inserting in place thereof the following words:- the department has determined that it has made satisfactory progress toward utilizing.
SECTION 80. Subsection (a) of section 31H of chapter 63 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after the definition of “Median income”, the following definition:-
“Qualified Donation”, real or personal property given to a sponsor to purchase, construct, or rehabilitate a qualified Massachusetts project.
SECTION 81. Said subsection (a) of said section 31H of said chapter 63, as so appearing, is hereby further amended by inserting after the definition of “Regulatory agreement” the following definition:-
“Sponsor”, a nonprofit organization which: (i) has been issued a ruling from the United States Internal Revenue Service that the organization is exempt from income taxation pursuant to section 501(c)(3) of the Internal Revenue Code; (ii) has material control over the operations of a qualified Massachusetts project; and (iii) either (A) is a certified Community Development Corporation, as defined in chapter 40H; (B) is a certified Community Housing Development Organization pursuant to 24 CFR section 92.2; or (C) is determined by the department to have a history of successful development of affordable housing projects in the commonwealth.
SECTION 82. Subsection (b) of said section 31H of said chapter 63, as so appearing, is hereby amended by adding the following paragraph:-
(4) The department may allocate Massachusetts low-income housing tax credits pursuant to this section for a qualified donation by a taxpayer. The total Massachusetts low-income housing tax credit available to a taxpayer for a qualified donation shall be equal to 50 per cent of the donation’s value, as determined by the department; provided, however, that the department may increase the amount of available credit for a qualified donation to not more than 65 per cent of the donation’s value if it deems the increase to be necessary to the project’s viability.
For the purposes of counting an authorization of Massachusetts low-income housing tax credit towards the total sum that the department may authorize annually pursuant to part (i) of paragraph (1) of subsection (b), the department and the commissioner shall count any amount of Massachusetts low-income housing tax credit authorized to a taxpayer for a qualified donation as 1/5 of the amount authorized for the qualified donation.
SECTION 83. Said section 31H of said chapter 63, as so appearing, is hereby further amended by inserting after the word “project”, in line 83, the following words:- , whether by qualified donation or otherwise.
SECTION 84. Subsection (c) of said section 31H of said chapter 63, as so appearing, is hereby amended by striking out paragraph (3) and inserting in place thereof the following words:-
(3) The Massachusetts low-income housing tax credit authorized to a taxpayer with respect to a qualified Massachusetts project other than a qualified donation shall be taken against the taxes imposed pursuant to this chapter, claimed equally for 5 years and subtracted from the amount of state tax otherwise due for each taxable period and shall not be refundable.
The Massachusetts low-income housing tax credit authorized to a taxpayer with respect to a qualified Massachusetts project attributable to a qualified donation shall be taken against the taxes imposed pursuant to this chapter, claimed in a single year and subtracted from the amount of state tax otherwise due for the taxable year and shall not be refundable.
Any amount of the low-income housing tax credit, whether by qualified donation or otherwise, that exceeds the tax due for a taxable year may be carried forward to any of the 5 subsequent taxable years.
SECTION 85. Said chapter 63 is hereby further amended by striking out section 38N, as so appearing, and inserting in place thereof the following section:-
Section 38N. (a)(l) As used in this section, “Certified project”, “EACC”, “EDIP contract” and “Gateway municipality” shall have the same meanings as ascribed to them in section 3A of chapter 23A.
(b) A corporation subject to tax under this chapter that is the controlling business of a certified project, or an affiliate of a controlling business, may take a credit against the excise imposed by this chapter to the extent that the credit is authorized by the EACC, up to an amount equal to 50 per cent of the liability in a taxable year; provided, however, that the 50 per cent limitation shall not apply where the credit is refundable under subsection (d). The amount of the credit shall be determined by EACC under section 3D of said chapter 23A and other criteria or guidelines that the council shall from time to time adopt; provided, however, 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 under said section 3D of said chapter 23A.
(c) The total amount of credits that may be authorized by the EACC 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, however, that the total amount shall not include credits under section 38BB of this chapter or subsection (q) of said section 6 of said chapter 62; and provided further, that the total amount shall include: (i) refundable credits granted during the year under this section or said subsection (g) or said section (6) of said chapter 62; (ii) nonrefundable credits granted during the year under 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. A 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 economic assistance coordinating council shall provide the commissioner of revenue with the documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming 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 31H shall not be taken by such a corporation.
(d) A corporation entitled to a credit under this section for a taxable year may, to the extent authorized by the EACC, carry over and apply to the tax liability imposed by this chapter for any of the next succeeding 10 taxable years the portion, as reduced from year to year, of those credits that exceed the tax liability imposed by this chapter for the taxable year; provided, however, that the corporation shall not apply the credit to the tax liability imposed by this chapter for a taxable year beginning more than 5 years after the certified project ceases to qualify as a certified project under chapter 23A; and provided further, that notwithstanding the foregoing, the economic assistance coordinating council may limit or restrict carryover of credits under section 3D of said chapter 23A.
(e) If a credit allowed under subsection (b) is designated by the EACC 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 the credit may, at the option of the corporation and to the extent authorized by the EACC, be refundable to the corporation. In each case, the EACC shall specify the timing of the 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 the credit balance is refunded to the corporation, the credit carryover provisions of subsection (d) shall not apply.
(f) If a corporation is subject to a minimum excise under 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) If corporations file a combined return of income under section 32B, a credit generated by an individual member corporation under 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 the other member corporation can use additional credits. An unused, unexpired credit generated by a member corporation shall be carried over from year to year by the individual corporation that generated the credit to the extent authorized by the EACC.
(h) The commissioner of revenue may promulgate rules and regulations 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 EACC revokes the certification of a project under section 3F of chapter 23A, a portion of the tax credit otherwise allowed by this section and claimed by the corporation prior to the date on which the EACC makes the determination to revoke its certification of the project shall 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 EACC makes the determination to revoke the certification of the project. 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 EACC 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, a tax credit allowed under this section may be transferred to the purchaser of the certified project; provided, however, that the EDIP contract shall be assigned to and assumed by the purchaser of the certified project and the assignment and assumption shall be approved in writing by the EACC.
(k) Nothing in this section shall limit the authority of the commissioner of revenue to make an adjustment to a corporation's liability upon audit.
SECTION 86. Section 38O of said chapter 63, as so appearing, is hereby amended by striking out, in lines 4 and 5, the words “as defined by section 3A” and inserting in place thereof the following words:- designated under section 3G.
SECTION 87. 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 88. 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 89. Said section 38BB of said chapter 63, as so appearing, is hereby further amended by striking out, in line 6, the words “substantial rehabilitation” and inserting in place thereof the following word:- project.
SECTION 90. Said section 38BB of said chapter 63, as so appearing, is hereby further amended by striking out, in line 17, and in lines 38 and 39, the word “rehabilitation” and inserting in place thereof, in each instance, the following word:- project.
SECTION 91. 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 following figure:- 10.
SECTION 92. 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 93. Said section 38EE of said chapter 63, as so appearing, is hereby further amended by striking out, in lines 141 and 142, the words “it has utilized at least 95 per cent of the 3-year total of” and inserting in place thereof the following words:- the department has determined that it has made satisfactory progress toward utilizing.
SECTION 94. Chapter 74 of the General Laws is hereby amended by adding the following section:-
Section 57. Subject to appropriation, the board of higher education shall establish and maintain, in cooperation with local public and vocational school authorities, postsecondary technical schools and the boards of trustees of community colleges, a program to support training and education programs that address the workforce shortages of the advanced automotive and diesel technician industry with the goal of training students, creating new jobs, retaining and upgrading existing jobs, and retraining existing workers to implement new technologies and to help meet the workforce and talent pipeline needs of employers including, but not limited to, a person who has obtained a Class 1 license pursuant to sections 58 and 59 of chapter 140.
There shall be, subject to appropriation, a grant program to implement this section to which employers shall have access to:
(i) identify, support or establish collaborative regional partnerships including, but not limited to, employers, workforce development and education organizations, regional economic development organizations established pursuant to sections 3J and 3K of chapter 23A and economic development officials in every region where Class 1 licensees and related industries demonstrate demand for automotive and diesel repair technicians;
(ii) address critical workforce shortages in the automotive and diesel repair industry;
(iii) improve and increase employment opportunities in the automotive and diesel repair industry for low-income individuals, women and minorities;
(iv) provide training and educational or career ladder services for employed or unemployed automotive and diesel repair workers who are seeking new positions or responsibilities within the automotive and diesel repair industry;
(v) increase support for internship and apprentice training at facilities associated with Class 1 licensees;
(vi) boost industry-relevant instructor capacity for high school and postsecondary programs; and
(vii) direct support for succession planning, worker retention and upskilling strategies for older and incumbent workers.
For the purposes of the grant program, “eligible applicants” shall include, but not be limited to: (i) employers and employer associations; (ii) local workforce investment boards; (iii) institutions of higher education; (iv) kindergarten to grade 12, inclusive, and vocational education institutions; (v) private for-profit and nonprofit organizations providing education and workforce training; (vi) 1-stop career centers; (vii) local workforce development entities; and (viii) any partnership or collaboration between eligible applicants. Any funds allocated through the program shall complement and not replace existing local, state, private or federal funding for training and educational programs.
A grant proposal submitted pursuant to this section shall include, but not be limited to:
(i) a plan that defines specific goals for advanced automotive and diesel repair technology workforce training and educational improvements;
(ii) the evidence-based programs the applicant shall use to meet the goals;
(iii) a budget necessary to implement the plan, including a detailed description of any funding or in-kind contributions that an applicant will be providing in support of the proposal;
(iv) any other private funding or private sector participation that the applicant anticipates in support of the proposal; and
(v) the proposed number of individuals who would be enrolled, complete training and be placed into employment in the targeted industries.
The board of higher education shall, in consultation with the executive office of housing and economic development, executive office of labor and workforce development, the department of education and entities representing parties who are eligible to participate in the grant program, develop guidelines for an annual review of the progress being made by each grantee. A grantee shall participate in any evaluation or accountability process implemented by or authorized by the commonwealth corporation. The board shall file annual reports for the duration of the programs with the chairs of the house and senate committee on ways and means, the chairs of the joint committee on labor and workforce development and the chairs of the joint committee on economic development and emerging technologies not later than January 1; provided, however, that the report shall include an overview of the activities of the programs, the number of participants in the programs and the employment outcomes in the programs.
SECTION 95. Section 225 of chapter 112 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in line26, the word “three” and inserting in place thereof the following figure:- 2.
SECTION 96. Section 6 of chapter 136 of the General Laws, as so appearing, is hereby amended by striking out clause (31) and inserting in place thereof the following clause:-
(31) The transport or delivery of goods in commerce, or for consideration, by motor truck or trailer or other means, and the performance of all activities incidental thereto, including the operation of all facilities and warehousing, necessary to prepare, stage, and effect such transport or delivery; or the loading or unloading of same and the performance of labor, business and work directly or indirectly related thereto.
SECTION 96A. Chapter 138 of the General Laws is hereby amended by striking out section 2A, inserted by section 42 of chapter 52 of the acts of 2016, and inserting in place thereof the following section:-
Section 2A. No person shall sell, offer for sale, manufacture or possess powdered alcohol. Whoever violates this section shall be punished by a fine of not less than $100 or more than $1,000.
This section does not apply to (A) the use of powdered alcohol as an ingredient in non-powdered products or (B) the production of, sale, offering to sell, or delivery, receipt or purchasing for resale, powdered alcohol for the use as an ingredient in non-powdered products.
SECTION 97. Section 12 of said chapter 138, as appearing in the 2014 Official Edition, is hereby amended by striking out the second paragraph.
SECTION 98. Section 15 of said chapter 138, as so appearing, is hereby amended by striking out, in lines 97 and 149, the words “or connected therewith” and inserting in place thereof, in each instance, the following words:- ; provided, however, that a common victualler duly licensed to operate a restaurant under chapter 140 and holding a license under section 12 may be connected to premises licensed under this section if at least 50 per cent of the revenue generated at the premises 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 the design of the 2 locations so licensed, including interior connections, which shall be allowed, shall clearly delineate the 2 premises in such a way as to: (i) make the boundaries of each licensed premises clearly separate and identifiable to customers, alcohol distributors and regulatory authorities; (ii) enable the respective licensees to maintain control of the licensed area, egress and the sale, storage and service of alcoholic beverages; and (iii) otherwise conform with this chapter.
SECTION 99. The introductory paragraph of section 17 of said chapter 138 is hereby amended by striking out the eleventh paragraph.
SECTION 100. Said section 17 of said chapter 138 is hereby further amended by striking out, in lines 316 and 319, as so appearing, the figure “12,”.
SECTION 101. Section 19B of said chapter 138, as so appearing, is hereby amended by striking out, in lines 108 and 109, the words “section twelve of this chapter” and inserting in place thereof the following words:- this section.
SECTION 102. Said section 19B of said chapter 138, as so appearing, is hereby further amended by striking out 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 of a location that 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, the farmer-winery; provided, however, that a licensee may sell, for on-premises consumption only, wines produced by the winery or produced for the winery and sold under the winery brand name. Section 15A shall apply to the granting of a license under this subsection.
SECTION 103. Section 19C of said chapter 138, as so appearing, is hereby amended by striking out 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 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 shall apply to the granting of a license under this subsection.
SECTION 104. Section 19E of said chapter 138, as so appearing, is hereby amended by striking out subsection (o) and inserting in place thereof the following subsection :-
(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 subsection.
SECTION 105. Said chapter 138 is hereby further amended by inserting after section 19G the following 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 license under section 19B, a farmer-brewery license under section 19C or a farmer-distillery license under section 19E, may be granted a license under this section to sell, for on-premises consumption, any alcoholic beverages produced by its said section 19B, 19C or 19E license or produced for the said section 19B, 19C or 19E licensee and sold under the licensee’s brand name, on any of its premises licensed under said section 19B, 19C or 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 106. Section 33 of said chapter 138, as appearing in the 2014 Official Edition, is hereby amended by striking out, in lines 14 and 15, 17 and 18, 24 and 25, and 27 and 28, each time they appear, the words “or on the day following when Christmas occurs on a Sunday”.
SECTION 106A. Said section 33 of said chapter 138, as so appearing, is hereby further amended by inserting after the word “May”, in lines 23 and 26, in each instance, the following words:- before 12:00 noon.
SECTION 107. Section 30 of chapter 151A of the General Laws, as so appearing, is hereby amended by striking out, in line 43, the word “fifteenth” and inserting in place thereof the following word:- twentieth.
SECTION 108. Said section 30 of said chapter 151A, as so appearing, is hereby further amended by striking out, in line 45, the words “15 week application period shall be tolled” and inserting in place thereof the following words:- 20-week application period shall be tolled and the circumstances under which the application deadline may be waived for good cause.
SECTION 109. Said section 30 of said chapter 151A, as so appearing, is hereby further amended by inserting after the word “denied”, in line 55, the following words:- ; provided further, that, if the claim for regular benefits was denied and the reversal of said denial did not occur until after the thirty-first week of the claimant’s benefit year, the claimant shall not be barred from applying for and commencing training, even if the benefit year has expired, so long as the claimant applies for training within 21 weeks of the notice of reversal and commences training with the first available program.
SECTION 110. Said section 30 of said chapter 151A, as so appearing, is hereby further amended by striking out the last paragraph and inserting in place thereof the following paragraph:-
The department shall provide each claimant with written information regarding eligibility for benefits under this section in the claimant’s primary language, as required under section 62A, including a notification that a claimant shall submit any application for benefits under this section no later than the twentieth week of a new or continued claim unless the period is tolled by regulation or waived for good cause.
SECTION 111. The first paragraph of section 6B of chapter 159B of the General Laws, as so appearing, is hereby amended by adding the following sentence:- The department shall issue a decision on a written request for adjustment of the maximum charges not more than 12 months after its receipt of that request.
SECTION 112. Chapter 161C of the General Laws is hereby amended by adding the following section:-
Section 8. Notwithstanding any general or special law to the contrary, the secretary of transportation may offer and convey surplus rail and other track material, surplus rail-related equipment, such as signals, and surplus railroad bridge materials to freight railroads operating on tracks in the commonwealth to which they have rights and to the freight railroads operating on in-state tracks owned by the commonwealth. Working in concert with the Massachusetts Railroad Association, the Massachusetts Department of Transportation shall design and implement a fair, reasonable and orderly system to distribute the surplus assets; provided, however, that the department may change that system, as needed, in order to improve it in any way consistent with the objectives of the reuse program. The assets shall only be conveyed to a railroad which has demonstrated an impending need for the assets at a specific in-state location. The secretary shall cause to be created and published periodically a list of surplus rail assets which may be made available through the department or from department projects and from Massachusetts Bay Transportation Authority projects to the freight railroad companies operating in the commonwealth.
SECTION 113. Section 141 of chapter 175 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in line 4, the word “twelve” and inserting in place thereof the following figure:- 20.
SECTION 114. Subsection (a) of section 162M of said chapter 175, as so appearing, is hereby amended by inserting after paragraph (7) the following paragraph :-
(7 1/2) Travel, limited line travel insurance, as defined in section 162Z.
SECTION 115. 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 have the following meanings unless the context clearly requires otherwise:
“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.
“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 under 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 permitted non-licensable activities.
“Travel insurance”, insurance coverage for personal risks incidental to planned travel including, but not limited to: (i) an 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, however, that “travel insurance” shall not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting not less than 6 months, including people 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 a limited lines travel insurance producer license if that individual or business entity has filed an application for a limited lines travel insurance producer license with the commissioner in a form and manner prescribed by the commissioner. A limited lines travel insurance producer license authorizes a 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 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; provided, however, that 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; provided further, that the limited lines travel insurance producer shall submit the register to the division of insurance upon reasonable request and shall certify that the travel retailer register 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;
(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; provided, however, that the training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective customers; and
(vii) the limited lines travel insurance producer or travel retailer provides its written consumer materials to the commissioner upon reasonable request.
(3) The limited lines travel insurance producer, and those registered under its license, are exempt from the examination requirements under section 162K and the continuing education requirements under section 177E.
(c) Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers, brochures or other written materials that: (i) provide the identity and contact information of the insurer and the limited lines travel insurance producer; (ii) explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and (iii) 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 a limited lines travel insurance producer shall not: (i) evaluate or interpret the technical terms, benefits and conditions of the offered travel insurance coverage; (ii) evaluate or provide advice concerning a prospective purchaser’s existing insurance coverage; or (iii) hold oneself 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, may 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 116. Section 1 of chapter 176J of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after the word “policy”, in line 201, the first time it appears, the following words:- ; travel insurance.
SECTION 117. The definition of “Health benefit plan” in said section 1 of said chapter 176J, as so appearing, is hereby amended by inserting after the third sentence the following 2 sentences:- 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 6 months or longer, including for example, those working overseas as an ex-patriot or military personnel being deployed.
SECTION 118. Section 13 of said chapter 176J, as so appearing, is hereby amended by adding the following subsection:
(d) Notwithstanding this chapter or any other general or special law to the contrary, carriers may annually offer group purchasing cooperative members rewards or other incentives for participation in wellness programs sponsored by the cooperative. The amount of such rewards shall be determined by the carrier in coordination with the provider of the wellness program, based upon the promotion and participation of the cooperative and its members in sponsored wellness programs that include, among other things, health care education and the use of available transparency tools. Any reward established pursuant to this subsection shall be submitted to the commissioner for informational purposes prior to the payment of any such reward. The requirements to qualify for such reward shall be applied equally and consistently to all cooperative members, treating all similarly situated cooperative members that have qualified for the reward in the same manner.
The commissioner shall study the ability of cooperatives to use other incentives for wellness programs within the restrictions of state and federal rating rules and may also consider the use of an innovation waiver to pursue such flexibility.
SECTION 119. 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 subsection 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 subsection, 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 subsection, 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 subsection, (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 120. The second sentence of subsection (e) of section 7 of chapter 293 of the acts of 2006 is hereby amended by striking out the figure “8”, inserted by section 88 of chapter 287 of the acts of 2014, and inserting in place thereof the following figure:- 10.
SECTION 121. 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 further amended by striking out the figure “$3” and inserting in place thereof the following figure:- $1.
SECTION 122. 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 123. Item 6121-1317 of chapter 79 of the acts of 2014, as most recently amended by chapter 359 of the acts of 2014, is hereby further amended by striking out the words “construction of the Cochituate” and inserting in place thereof the following words:- acquisition and construction of the Cochituate.
SECTION 124. Subsection (c) of section 233 of chapter 165 of the acts of 2014, as appearing in section 30 of chapter 119 of the acts of 2015, is hereby amended by striking out the words “December 31, 2016” and inserting in place thereof the following words:- June 30, 2017.
SECTION 125. Subsection (b) of section 22 of chapter 237 of the acts of 2014 is hereby amended by striking out, in lines 5 and 6, the words “to Essex Sports Center, LLC” and inserting in place thereof the following words:- initially to Essex Sports Center, LLC and any of its leasehold mortgagees.
SECTION 126. Subsection (c) of said section 22 of said chapter 237 is hereby amended by striking out, in lines 5 and 6, the words “, or if Essex Sports Center, LLC ceases to be the lessee at any time before the expiration of the lease”.
SECTION 127. There is no section 127.
SECTION 128. 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 said 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 129 (a) Any reference to “economic target area” or “ETA” in the General Laws shall 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 on 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) Any reference to “economic opportunity area” or “EOA” in the General Laws shall be deemed to mean an economic opportunity area designated by the EACC and in existence on the effective date of this act or an area designated by the EACC as 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 130. 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, hereinafter referred to as 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 to expand the commonwealth’s data analytics capabilities. The center may: (i) match public and private universities with industry participants to develop cybersecurity technology and expand data analytic capabilities; (ii) provide a forum for sharing data sets for analysis; and (iii) 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 not later than September 1, 2017 with the clerks of the senate and house of representatives who shall forward the report to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies.
Governor dissaproved of the following section -- [For message see H4576]
SECTION 131. Notwithstanding section 32G of chapter 90 of the General Laws or section 6 of chapter 161B of the General Laws, or any other general or special law to the contrary, the registrar of motor vehicles shall, upon application, issue a private driver school license to a regional transit authority that engaged in the business of giving instruction for hire in the operation of motor vehicles for any class of a commercial driver’s license as of January 1, 2016. Any such regional transit authority licensed as a private driver school may seek compensation for such instruction.
SECTION 132. 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, $797,568,000. 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, 2051. 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 133. 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, $41,000,000. 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, 2051. 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 134. 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, $187,800,000. 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, 2051. 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 135. Notwithstanding sections 24, 24A and 27 of chapter 10 of the General Laws, chapter 271 of the General Laws or any other general or special law to the contrary, from August 1, 2016 to July 31, 2018, inclusive, a person or entity that offers fantasy contests for a cash prize to members of the public may offer a fantasy contest to residents of the commonwealth pursuant to and in accordance with regulations promulgated by the attorney general; provided further, for the purposes of section 7 of chapter 4 of the General Laws a fantasy contest shall not be considered illegal gaming. “Fantasy contest” includes any fantasy or simulated game or contest, in which: (i) the value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest; (ii) all winning outcomes reflect the relative knowledge and skill of the participants and shall be determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and (iii) no winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of such teams or solely on any single performance of an individual athlete or player in any single actual event.
SECTION 136. There shall be a special commission to conduct a comprehensive study relative to the practical, economic, fiscal and health related impacts of the commonwealth remaining on eastern daylight time, 4 hours behind coordinated universal time, also known as Atlantic standard time, throughout the calendar year. The commission 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. The commission shall be comprised of the following members: 3 members 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 members to be appointed by the president of the senate, 1 of whom shall have expertise in economic development and 1 of whom shall have expertise in energy; 1 member to be appointed by the senate minority leader; 3 members to be appointed by the speaker of the house of representatives, 1 of whom shall have expertise in interstate commerce and 1 of whom shall have expertise in transportation; and 1 member to be appointed by the house minority leader.
The commission shall convene its first meeting not later than October 1, 2016 and shall file a report along with any recommendations for legislative reforms not later than March 31, 2017 with the clerks of the senate and house of representatives who shall forward the report to the chairs of the joint committee on economic development and emerging technologies, the chairs of the joint committee on public health and the chairs of the joint committee on education.
SECTION 137. There shall be a special commission to conduct a comprehensive study relative to the regulation of online gaming, fantasy sports gaming and daily fantasy sports. The commission shall review all aspects of online gaming, fantasy sports gaming and daily fantasy sports including, but not limited to: economic development, consumer protection, taxation, legal and regulatory structures, implications for existing gaming, burdens and benefits to the commonwealth and any other factors the commission deems relevant. The special commission shall not include in its review a comprehensive review of the state lottery or its ability to provide lottery products online or over the internet.
The commission shall consist of: 1 person who shall be appointed by the governor who shall have industry expertise in fantasy sports gaming; 1 person who shall be appointed by the Massachusetts gaming commission; 1 person who shall be appointed by the attorney general who shall have expertise in fantasy sports gaming consumer protection; 2 people who shall be appointed by the president of the senate, 1 of whom shall be the senate chair of the joint committee on economic development and emerging technologies; 1 person who shall be appointed by the minority leader of the senate; 2 people who shall be appointed by the speaker of the house of representatives, 1 of whom shall be the house chair of the joint committee on economic development and emerging technologies; and 1 person who shall be appointed by the minority leader of the house of representatives. The commission shall be co-chaired by the house and senate chairs of the joint committee on economic development and emerging technologies and shall convene its first meeting not later than November 1, 2016.
The commission shall submit its final report and its recommendations for legislation by filing the report and recommendations for legislation with the clerks of the senate and the house of representatives not later than July 31, 2017.
SECTION 138. 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 139. Sections 5 to 7, inclusive, 16 to 22, inclusive, 31, 32, 55 to 65, inclusive, 67 to 78, inclusive, 80 to 86, inclusive, 88 to 92, inclusive, and 129 shall be effective for tax years beginning on or after January 1, 2017.
SECTION 140. Sections 23 to 28, inclusive, and 36 to 54, inclusive, shall take effect on January 1, 2017.
Approved, August 10, 2016