SENATE DOCKET, NO. 2401 FILED ON: 2/8/2010

SENATE . . . . . . . . . . . . . . No. 2270

The Commonwealth of Massachusetts

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http://www.mass.gov/legis/bills/senate/186/st02pdf/st02270.pdf

PRESENTED BY:

Therese Murray

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General

Court assembled:

The undersigned legislators and/or citizens respectfully petition for the passage of the accompanying bill:

An Act promoting economic development throughout the Commonwealth.

_______________

PETITION OF:

NAME: DISTRICT/ADDRESS:

Therese Murray Plymouth and Barnstable

Karen E. Spilka Second Middlesex and Norfolk

The Commonwealth of Massachusetts

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In the Year Two Thousand and Nine

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An Act promoting economic development throughout the commonwealth.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to provide

forthwith a businessfriendly

environment that will stimulate job growth and improve the ease

with which businesses can operate in the markets they serve, and to coordinate economic

development activities funded by the commonwealth, 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. The General Laws are hereby amended by 1 inserting after Chapter 3 the

2 following chapter:3

CHAPTER 3A.

4 THE MASSACHUSETTS SUNSET ACT.

5

6 Section 1. There is hereby established a procedure for the identification and elimination

7 of waste, duplication, and inefficiency in state government agencies and authorities established

8 by statute, regulation or executive order to be known as the Massachusetts Sunset Act.

9 Section 2.

10 For the purpose of this chapter, the following definitions shall apply:

11 (a)“Advisory Committee”, a committee, council, commission or other entity created under

12 state law whose primary function is to advise a state agency;

(b)“Commission”, the Sunset 13 Advisory Commission;

14 (c)“State Agency”, an agency expressly made subject to this chapter;

15 (d) “State Authority”, any body politic and corporate that is constituted as a public

16 instrumentality of the commonwealth and is established by an act of the general court to serve an

17 essential governmental function. A state authority shall not be a state agency or owned by a city

18 or town, and shall not be confined to a particular geographical region that is smaller than the

19 commonwealth.

20 Section 3.

21 (a) Notwithstanding any other general or special law to the contrary, there is hereby

22 established a Massachusetts Sunset Advisory Commission, consisting of 5 members of

23 the senate, 4 of whom shall be appointed by the president of the senate and 1 of whom

24 shall be appointed by the minority leader of the senate, and 1 public member appointed

25 by the president of the senate and 5 members of the house of representatives, 4 of whom

26 shall be appointed by the speaker of the house of representatives, and 1 of whom shall be

27 appointed by the minority leader of the house, and 1 public member appointed by the

28 speaker of the house of representatives. The president of the senate and the speaker of

29 the house may serve legislative appointees.

30 (b) An individual is not eligible for appointment as a public member if the individual or the

31 individual’s spouse is:

32 (1) Regulated by a state agency that the commission will review during the term

33 for which the individual would serve;

34 (2) Employed by, participating in the management of, or having, directly or

35 indirectly, more than a 10 per cent interest in a business entity or other

organization regulated by a state agency the co 36 mmission will review during

37 the term for which the individual would serve; or

38 (3) Required to register as an executive or legislative agent under section 41 of

39 chapter 3 because of the person’s activities for compensation on behalf of a

40 profession or entity related to the operation of an agency under review.

41 (c) A public member of the commission shall be removed if the member does not have the

42 qualifications required by subsection (b) for appointment to the commission at the time of

43 appointment or does not maintain the qualifications while serving on the commission.

44 The validity of the commission’s action is not affected by the fact that it was taken when

45 a ground for removal of a public member from the commission existed.

46 (d) Legislative members shall serve 2year

terms, conterminous with their service as elected

47 members of the legislature. If a legislative member ceases to be a member of the

48 legislature, the legislator’s position shall be declared vacant, and the balance of the term

49 filled by another legislator appointed in the same manner as the previous appointee. If

50 the president of the senate or the speaker of the house serves on the commission, service

51 continues until resignation from the commission or until the individual ceases to hold the

52 office. Public members shall serve 2year

terms expiring January 1 of each odd53

numbered year.

54 (e) Members other than the president of the senate and the speaker of the house are subject to

55 the following restrictions:

56 (1) After a public member serves 6 consecutive years on the commission, the

57 individual is not eligible for appointment to another term or part of a term

58 until the expiration of 2 years;

(2) A legislative member who serves a full 59 term may not be appointed to an

60 immediately succeeding term; and

61 (3) A public member may not serve more than 3 consecutive 2year

terms;

62 provided, however, that, for purposes of this prohibition, a member is

63 considered to have served a term only if the member has served more than

64 half of the term.

65 (f) The president of the senate and the speaker of the house shall make their appointments

66 before February 1 of each oddnumbered

year.

67 (g) If a legislative member ceases to be a member of the house from which he was appointed,

68 that member vacates his membership on the commission.

69 (h) If a vacancy occurs, the appropriate appointing authority shall appoint a person to serve

70 for the remainder of the unexpired term in the same manner as the original appointment.

71 (i) The commission shall have a chair and a vicechair

as presiding officers. The chair and

72 vicechair

positions must alternate every 2 years between the 2 membership groups

73 appointed by the president of the senate and the speaker of the house. The chair and vice74

chair may not be from the same membership group. The president of the senate shall

75 designate a presiding officer from the president’s appointed membership group and the

76 speaker shall designate the other presiding officer from the speaker’s appointed

77 membership group.

78 (j) Seven members of the commission constitute a quorum. A final action or

79 recommendation may not be made unless approved by a recorded roll call vote of a

80 majority of members appointed by the president of the senate and the speaker of the

house. All other actions by the commission shall be decided 81 by a majority of the

82 members present and voting.

83 (k) Each member of the commission is entitled to reimbursement for actual and necessary

84 expenses incurred in performing commission duties. Each legislative member is entitled

85 to reimbursement from the appropriate fund of the member’s respective house. Each

86 public member is entitled to reimbursement funds appropriated to the commission.

87 Section 4.

88 (a) The commission shall employ an executive director to act as the executive head of the

89 commission.

90 (b) The executive director shall employ persons necessary to carry out this chapter through

91 funds made available by the legislature.

92 (c) The chair and vicechair

of the commission may each employ a staff person to work for

93 them on matters related to commission activities.

94 Section 5.

95 The commission shall adopt rules necessary to carry out this chapter.

96 Section 6.

97 Before July 1 of the oddnumbered

year before the year in which a state agency subject to

98 this chapter is abolished, the agency shall report to the commission:

99 (1) Information regarding the application to the agency of the criteria set forth in

100 section 10; and

101 (2) Any other information that the agency considers appropriate or that the

102 commission requests.

103 Section 7.

104 (a) Within 1 year of the appointment and qualification of the members of the commission,

105 and the organization of the commission staff, the commission shall assign sunset dates for

106 each agency, authority, and advisory committee of the commonwealth, and shall notify

107 the head of such agency, authority and advisory committee of the date selected. The

108 commission shall then file legislation with the general court to implement the abolition

109 schedule.

110 (b) Before January 1 of the year in which a state agency subject to this chapter and its

111 advisory committees are scheduled to be abolished, the commission shall:

112 (1) Review and take action necessary to verify the reports submitted by the

113 agency under this chapter;

114 (2) Consult the house and senate committees on post audit & legislative oversight,

115 the state auditor, the inspector general and the state comptroller, or their

116 successors, on the application to the agency of the criteria provided in section

117 10;

118 (3) Conduct a review of the agency based on the criteria provided in section 10

119 and prepare a written report; and

120 (4) Review the implementation of commission recommendations contained in the

121 reports presented to the legislature during the preceding legislative session and

122 the resulting legislation.

123 (c) The written report prepared by the commission under clause (3) of subsection (b) shall be

124 a public record.

125 Section 8.

(a) Before February 1 of the year a state agency subject to 126 this chapter and its advisory

127 committees are abolished, the commission shall conduct public hearings concerning but

128 not limited to the application to the agency of the criteria provided in section 10.

129 (b) The commission may hold the public hearings after the review of the agency required in

130 section 8 is complete and available to the public.

131 Section 9.

132 (a) At each regular legislative session, the commission shall present to the legislature and the

133 governor a report on the agencies and advisory committees reviewed.

134 (b) In the report the commission shall include:

135 (1) Its findings regarding the criteria prescribed in section 10;

136 (2) Its recommendations based on the matters prescribed in this chapter; and

137 (3) Other information the commission considers necessary for a complete review

138 of the agency.

139 Section 10. The commission and its staff shall consider the following criteria in determining

140 whether a public need exists for the continuation of a state agency, authority or advisory

141 committee or for the performance of the functions of the agency, authority or advisory

142 committee:

143 (1) The efficiency and effectiveness with which the agency, authority or advisory

144 committee operates;

145 (2)

146 (a) an identification of the mission, goals, and objectives intended for the

147 agency, authority, or advisory committee and of the problem or need that

148 the agency, authority, or advisory committee was intended to address; and

(b) the extent to which the mission, goals, and objectives 149 have been achieved

150 and the problem or need has been addressed;

151 (3)

152 (a) An identification of any activities of the agency or authority in addition to

153 those granted by statute and of the authority for those activities; and

154 (b) The extent to which those activities are needed;

155 (4) An assessment of authority of the agency or authority relating to fees,

156 inspections, enforcement and penalties;

157 (5) Whether less restrictive or alternative methods of performing any function that

158 the agency or authority performs could adequately protect or provide service

159 to the public;

160 (6) The extent to which the jurisdiction of the agency or authority and the

161 programs administered by the agency authority overlap or duplicate those of

162 other agencies or authorities, the extent to which the agency or authority

163 coordinates with those agencies or authorities, and the extent to which the

164 programs administered by the agency or authority can be consolidated with

165 the programs of other state agencies;

166 (7) The promptness and effectiveness with which the agency or authority

167 addresses complaints concerning entities or other persons affected by the

168 agency, including an assessment of the agency’s or authority’s administrative

169 hearings process;

170 (8) An assessment of the agency’s or authority’s rulemaking process and the

171 extent to which the agency or authority has encouraged participation by the

public in making its rules and decisions and 172 the extent to which the public

173 participation has resulted in rules that benefit the public;

174 (9) The extent to which the agency or authority has complied with:

175 (a) Federal and state laws and applicable rules regarding equality of

176 employment opportunity and the rights and privacy of individuals; and

177 (b) State law and applicable rules of any state agency or authority regarding

178 purchasing guidelines and programs for historically underutilized

179 businesses;

180 (10) The extent to which the agency or authority issues and enforces rules

181 relating to potential conflicts of interest of its employees and chapter 268A;

182 (11) The extent to which the agency or authority complies with chapters 66 and

183 66A and follows records management practices that enable the agency to

184 respond efficiently to requests for public information; and

185 (12) The effect of federal intervention or loss of federal funds if the agency is

186 abolished.

187 Section 11. In its report on a state agency, the commission shall:

188 (1) Make recommendations on the abolition, continuation or reorganization of

189 each affected state agency, authority or advisory committee, and on the need

190 for performance of the functions of the agency, authority or advisory

191 committee;

192 (2) Make recommendations on the consolidation, transfer, or reorganization of

193 programs within state agencies or authorities not under review when the

194 programs duplicate functions performed in agencies under review; and

(3) Make recommendations to improve the operations of 195 the agency, its policy

196 body, and authority or advisory committee, including management

197 recommendations that do not require a change in the agency’s or authority’s

198 enabling statute.

199 (a) The commission shall include the estimated fiscal impact of its recommendations and

200 may recommend appropriation levels for certain programs to improve the operations of

201 the state agency, to be forwarded to the house and senate committees on ways and means

202 and the executive office for administration and finance.

203 (b) The commission shall have drafts of legislation prepared to carry out the commission’s

204 recommendations under this section.

205 (c) After the legislature acts on the report, the commission shall present to the secretary of

206 administration and finance, the commission’s recommendations that do not require a

207 statutory change to be put into effect.

208 Section 12. In the 2year

period preceding the date scheduled for the abolition of a state

209 agency under this chapter, the commission may exempt certain agencies from the

210 requirements of this chapter relating to staff reports, hearings, and reviews.

211 (a) The commission may only exempt agencies that have been inactive for a period of 2

212 years preceding the date the agency is scheduled for abolition or that have been rendered

213 inactive by an action of the legislature.

214 (b) The commission’s action in exempting agencies or authorities under this section must be

215 done by an affirmative record vote and must be decided by a majority of all members

216 present and voting.

Section 13. During each legislative session, the staff of the commission 217 shall monitor

218 legislation affecting agencies that have undergone sunset review and shall periodically report

219 to the members of the commission on proposed changes which would modify prior

220 recommendations of the commission.

221 Section 14. An advisory committee, the primary function of which is to advise a particular

222 state agency or authority, is abolished on the date set for abolition of the agency or authority

223 unless the advisory committee is expressly continued by law.

224 Section 15. During the annual session immediately before the abolition of a state agency,

225 authority or an advisory committee that is subject to this chapter, the legislature by law may

226 continue the agency, authority, or advisory committee for a period not to exceed 12 years.

227 (a) This chapter shall not prohibit the legislature from:

228 (1) Terminating a state agency, authority, or advisory committee subject to this

229 chapter at a date earlier than that provided in this chapter; or

230 (2) Considering any other legislation relative to a state agency, authority or

231 advisory committee subject to this chapter.

232 (a) Section 16. A state agency or authority that is abolished in an oddnumbered

year may

233 continue in existence until June 30 of the following year to conclude its business. Unless

234 the law provides otherwise, abolition does not reduce or otherwise limit the powers and

235 authority of the state agency or authority during the concluding year. A state agency or

236 authority is terminated and shall cease all activities at the expiration of the 1year

period.

237 Unless the law provides otherwise, all rules that have been adopted by the state agency or

238 authority expire at the expiration of the 1year

period.

(b) Any unobligated

and unexpended appropriations of an abolished 239 agency or advisory

240 committee lapse on September 1 of the year after abolition.

241 (c) Except as provided by subsection (f) or as otherwise provided by law, all money in a

242 dedicated fund of an abolished state agency, authority or advisory committee on

243 September 1 of the year after abolition is transferred to the General Fund. The part of the

244 law dedicating the money to a specific fund of an abolished agency becomes void on

245 September 1 of the year after abolition.

246 (d) Unless the law or a specific provision in the General Appropriations Act provides

247 otherwise, an abolished state agency, authority or advisory committee funded in the

248 General Appropriations Act may not spend or obligate any of the money appropriated

249 beyond one year from the date of abolition.

250 (e) Unless the governor designates an appropriate state agency as prescribed by subsection

251 (f), property and records in the custody of an abolished state agency, authority or

252 advisory committee on September 1 of the year after abolition shall be transferred to the

253 state archives. If the governor designates an appropriate state agency or authority, the

254 property and records shall be transferred to the designated state agency.

255 (f) The legislature recognizes the state’s continuing obligation to pay bonded indebtedness

256 and all other obligations, including lease, contract, and other written obligations, incurred

257 by a state agency or authority abolished under this chapter, and this chapter does not

258 impair or impede the payment of bonded indebtedness and all other obligations, including

259 lease, contract and other written obligations, in accordance with their terms. If an

260 abolished state agency or authority has outstanding bonded indebtedness or other

261 outstanding obligations, including lease, contract or other written obligations, the bonds

and all other obligations, including lease, contract and other written 262 obligations, remain

263 valid and enforceable in accordance with their terms and subject to all applicable terms

264 and conditions of the laws and proceedings authorizing the bonds and all other

265 obligations, including lease, contract and other written obligations. The governor shall

266 designate an appropriate state agency or authority that shall continue to carry out all

267 covenants contained in the bonds and in all other obligations, including lease, contract

268 and other written obligations, to complete the construction of projects or the performance

269 of other obligations, including lease, contract, and other written obligations. The

270 designated state agency or authority shall provide payment from the sources of payment

271 of the bonds in accordance with the terms of the bonds and shall provide payment from

272 the sources of payment of all other obligations, including lease, contract, and other

273 written obligations, in accordance with their terms, whether from taxes, revenues, or

274 otherwise, until the bonds and interest on the bonds are paid in full and all other

275 obligations, including lease, contract and other written obligations, are performed and

276 paid in full. If the proceedings so provide, all funds established by laws or proceedings

277 authorizing the bonds or authorizing other obligations, including lease, contract, and

278 other written obligations, shall remain with the comptroller or the previously designated

279 trustees. If the proceedings do not provide that the funds remain with the comptroller or

280 the previously designated trustees, the funds shall be transferred to the designated state

281 agency.

282 Section 17.

283 (a) The commission may issue process to compel the attendance of witnesses and the

284 production of books, records, papers and other objects necessary or proper for the

purposes of the commission proceedings. The process may 285 be served on a witness at any

286 place in this state.

287 (b) If a majority of the commission directs the issuance of a subpoena, the chairman shall

288 issue the subpoena in the name of the commission.

289 (c) If the chairman is absent, the chairman’s designee may issue a subpoena or other process

290 in the same manner as the chairman.

291 (d) If necessary to obtain compliance with a subpoena or other process, the commission may

292 issue attachments. The attachments may be addressed to and served by any peace officer

293 in this state.

294 (e) Testimony taken under subpoena must be reduced to writing and given under oath subject

295 to the penalties of perjury.

296 (f) A witness who attends a commission proceeding under process is entitled to the same

297 mileage and per diem as a witness who appears before a grand jury in this state.

298 Section 18.

299 (a) The commission may request the assistance of state agencies and officers. When

300 assistance is requested, a state agency or officer shall assist the commission.

301 (b) In carrying out its functions under this chapter, the commission or its designated staff

302 member may inspect the records, documents and files of any state agency.

303 Section 19.

304 (a) A working paper, including all documentary or other information, prepared and

305 maintained by the commission staff in performing its duties under this chapter or other

306 law to conduct an evaluation and prepare a report is exempted from the public disclosure

307 requirements of chapter 66.

(b) A record held by another entity that is considered to be confidential 308 by law and that the

309 commission receives in connection with the performance of the commission’s functions

310 under this chapter or another law remains confidential and is exempted from the public

311 disclosure requirements of chapter 66.

312 Section 20.

313 If an employee is displaced because a state agency, authority, or advisory committee is

314 abolished, reorganized or continued, the state agency and the executive office of labor and

315 workforce development shall make a reasonable effort to relocate the disabled employee.

316 Except as otherwise expressly provided, abolition of a state agency does not affect the rights

317 and duties that matured, penalties that were incurred, civil or criminal liabilities that arose, or

318 proceedings that were begun before the effective date of abolition.

319 Section 21.

320 (a) Each bill filed in a house of the legislature that would create a new state agency, a new

321 authority, or a new advisory committee to a state agency shall be reviewed by the

322 commission.

323 (b) The commission shall review the bill to determine if:

324 (1) The proposed functions of the agency or committee could be administered by

325 1 or more existing state agencies or advisory committees;

326 (2) The form of regulation, if any, proposed by the bill is the least restrictive form

327 of regulation that will adequately protect the public;

328 (3) The bill provides for adequate public input regarding any regulatory function

329 proposed by the bill; and

(4) The bill provides for adequate protection against conflicts 330 of interest within

331 the agency or committee.

332 (c) On request, the commission shall forward a written comment on the legislation to the

333 author of the bill and to the presiding officer of the committee to which the bill is

334 referred.

335 Section 22.

336 (a) The commission may accept gifts, grants and donations from any organization described

337 in Section 501(c)(3) of the Internal Revenue Code for the purpose of funding any activity

338 under this chapter.

339 (b) All gifts, grants, and donations must be accepted in an open meeting by a majority of the

340 voting members of the commission and reported in the public record of the commission

341 with the name of the donor and purpose of the gift, grant, or donation.

342 SECTION 2. Subsection (a) of section 16G of chapter 6A of the General Laws, as

343 appearing in the 2008 Official Edition, is hereby amended by striking out, in line 2, the words “a

344 department” and inserting in place thereof the following words:the

Massachusetts office.

345 SECTION 3. Said section 16G of said chapter 6A, as so appearing, is hereby further

346 amended by striking out subsection (b) and inserting in place thereof the following subsection:347

(b) The following state agencies shall be within the Massachusetts office of business

348 development: the office of small business and entrepreneurship and the state office of minority

349 and women business assistance.

350 SECTION 4. Said section 16G of said chapter 6A, as so appearing, is hereby amended

351 by striking out subsections (i) and (j) and inserting in place thereof the following 2 subsections:(

i) The director of the Massachusetts office of business 352 development shall operate and

353 administer an office of performance management and oversight within the executive office.

354 The director shall establish a performance measurement system for the office, which shall

355 establish program goals, measure program performance against those goals and report publicly

356 on progress to improve the effectiveness of the commonwealth’s economic development efforts.

357 Performance measurements shall include at least the thencurrent

fiscal year and the previous 5

358 fiscal years. The system shall be applicable to all agencies within the office, any private entities

359 with whom the office may contract to perform services on behalf of the office, and any public

360 authorities undertaking economic development efforts in the commonwealth on which the

361 secretary sits as a member of its board, including, but not limited to, the Health and Education

362 Facilities Authority, the Massachusetts Convention Center Authority, Massachusetts Port

363 Authority, Massachusetts Development Finance Agency, the Massachusetts Technology

364 Collaborative, the Massachusetts Marketing Partnership, the Massachusetts Small Business

365 Finance Corporation, the Massachusetts Technology Development Corporation and the

366 Massachusetts cultural council. All agencies to which the system applies shall report to the

367 office of performance management and oversight with regard to setting goals and establishing

368 performance measures to improve those agencies’ operations in the commonwealth. Performance

369 measurements shall include both output measures, such as numbers of inquiries and referrals,

370 and outcome measures, such as jobs retained as a result of agency operations. All information in

371 the project information system shall be a public record unless otherwise exempted by law. An

372 annual report of performance measurements shall be published and made available to the public

373 not later than December 31. The report shall also be filed annually with the clerks of the senate

374 and house of representatives, the chairs of the house and senate committees on ways and means

and the house and senate chairs of the joint committee on economic 375 development and emerging

376 technologies. The performance measurement system shall require each agency to which the

377 system applies to develop a strategic plan for program activities and performance goals. The

378 system shall require annual program performance reports which shall be submitted to the house

379 and senate committees on ways and means and the joint committee on economic development

380 and emerging technologies.

381 (j) The office of performance management shall annually reevaluate

the goals and

382 measures established by the office and its agencies and monitor the results reported. The office

383 shall recommend changes to proposed goals and measures as are appropriate to align goals and

384 measures with the statewide economic development plan required under subsection (l) of this

385 section. The office shall report regularly to the public on the progress the office and its agencies

386 are making towards achieving stated goals.

387 The office shall be responsible for reporting publicly and making all reports available on

388 the internet.

389 The director shall use the performance criteria established in this section to determine the

390 quality of service of all private entities, including regional economic development organizations

391 that perform economic development services under contract with the office. The results of such

392 performance measures shall be criteria used in negotiating any contracts.

393 SECTION 5. Subsection (k) of said section 16G of said chapter 6A, as so appearing, is

394 hereby further amended by striking out the sixth sentence.

395 SECTION 6. Said section 16G of said chapter 6A, as so appearing, is hereby further

396 amended by adding the following 2 subsections:(

l) During the first year of each new gubernatorial administration, 397 the secretary, with the

398 assistance of a cabinetlevel

committee appointed under subsection (m), shall develop and

399 implement a written comprehensive economic development policy for the commonwealth. In

400 developing this policy, the secretary and the committee shall review any economic development

401 policy in effect at the commencement of the governor’s term of office. The secretary shall make

402 such revisions to the existing policy as the secretary deems necessary to ensure that it is

403 appropriate for the commonwealth. Once the policy has been adopted by the secretary and the

404 committee and approved by the governor, it shall be published in writing and on the official

405 website of the commonwealth not later than December 31 of that year and submitted to the house

406 and senate for its consideration. The house and senate shall hold public hearings on the policy.

407 (m) During the first year of each new gubernatorial administration, the governor shall

408 issue an executive order creating a cabinetlevel

committee to assist the secretary in the

409 development of the comprehensive economic development policy for the commonwealth. The

410 secretary shall be the chairman of the committee, and the secretary of administration and finance,

411 and the secretaries of education, health and human services, energy and environmental affairs

412 and transportation shall serve as committee members. The governor may also appoint members

413 of regional and local economic development groups and members of the business community to

414 serve on the committee.

415 SECTION 7. Section 35J of chapter 10 of the General Laws, as so appearing, is hereby

416 amended by striking out, in lines 16 and 17, the words “Massachusetts International Trade

417 Council” and inserting in place thereof the following words:Massachusetts

trade office.

SECTION 8. Section 52 of said chapter 10, as 418 so appearing, is hereby amended by

419 striking out, in line 1, the words “the treasurer” and inserting in place thereof the following

420 words:travel

and tourism established in chapter 23A.

421 SECTION 9. Chapter 10 of the General Laws is hereby amended by inserting after

422 section 56 the following section:423

Section 56A. The council shall be subject to section 56 of chapter 23A.

424 SECTION 10. Section 9 of chapter 15A of the General Laws, as appearing in the 2008

425 Official Edition, is hereby amended by striking out, in lines 172 and 173, the words, “section

426 three of chapter six hundred and fourteen of the acts of nineteen hundred and sixtyeight”

and

427 inserting in place thereof the following words:section

2 of chapter 23K.

428 SECTION 11. Said section 9 of said chapter 15A, as so appearing, is hereby further

429 amended by striking out, in lines 182 to 185, inclusive, the words, “their affiliated building

430 authorities, or any other organization affiliated therewith, as defined in paragraph (e) of said

431 section three of said chapter six hundred and fourteen” and inserting in place thereof the

432 following words:as

defined in section 2 of chapter 23K, or their affiliated building authorities,

433 or any other organization affiliated with the institutions of higher learning.

434 SECTION 12. Section 10 of said chapter 15A, as so appearing, is hereby amended by

435 striking out the definition of “HEFA” and inserting in place thereof the following definition:the

436 Health and Educational Facilities Authority, established by section 3 of chapter 23K.

437 SECTION 13. Section 12 of said chapter 15A, as so appearing, is hereby amended by

438 striking out, in lines 23 and 24, the words, “pursuant to chapter six hundred and fourteen of the

439 acts of nineteen hundred and sixtyeight”

and inserting in place thereof the following words:440

under chapter 23K.

SECTION 14. Said section 12 of said chapter 15A, as so 441 appearing, is hereby further

442 amended by striking out, in line 31, the words, “the provisions of said chapter six hundred and

443 fourteen” and inserting in place thereof the following words:chapter

23K.

444 SECTION 15. Section 1 of chapter 23A of the General Laws, as so appearing, is hereby

445 amended by striking out, in lines 2 and 3, the words, “department of business and technology in

446 this chapter called the department, which shall be under the control of the director of business

447 and technology” and inserting in place thereof the following words:Massachusetts

office of

448 business development, which shall be under the control of the director of business development.

449 SECTION 16. Said section 1 of said chapter 23A, as so appearing, is hereby amended

450 by striking out subsection (b) and inserting in place thereof the following subsection:451

(b) There shall be within the Massachusetts office of business development the office of

452 small business and entrepreneurship and the office of minority and women business assistance.

453 SECTION 17. Section 3A of said chapter 23A, as so appearing, is hereby amended by

454 inserting after the definition of “Facility” the following definition:455

“MOBD”, the Massachusetts office of business development created by section 1.

456 SECTION 18. Section 3I of said chapter 23A of the General Laws, as amended by

457 section 28 of chapter 25 of the acts of 2009, is hereby amended by striking out, in lines 2 and 33,

458 the words, “the department” and inserting in place thereof, in each instance, the following:459

Massachusetts office of business development.

460 SECTION 19. Said chapter 23A, as so appearing, is hereby amended by inserting after

461 section 3I the following 3 sections:

Section 3J. (a) The Massachusetts office of business development 462 shall contract with

463 eligible regional economic development organizations, as defined in section 3K, which shall

464 serve as the primary points of contact in the various regions of the state for businesses seeking

465 assistance, services or information from the commonwealth. The contract provisions and

466 reimbursements shall be designed to support regionallybased

efforts to stimulate, encourage,

467 facilitate and nurture economic growth and prosperity in the commonwealth, including but not

468 limited to activities related to the growth and retention of existing businesses and the attraction

469 of new businesses into the commonwealth.

470 (b) Each contract shall include performance criteria specific to the contracting

471 organization developed under section 16G of chapter 6A and uniform standards for the use of

472 contract funds related to accounting procedures, personnel practices, purchasing procedures and

473 conflict of interest rules. As a condition to its receipt of funds, the contracting organization shall

474 agree to follow these standards and to perform the contracted services in conformity with conflict

475 of interest rules which shall include provisions requiring that in any matter where a person,

476 corporation or other business entity in which any partner is in any way interested such interest is

477 disclosed in advance and further, that no partner having such an interest may participate in a

478 decision relating to such person, corporation or other business entity. The contracting

479 organization shall also agree to a biennial audit and examination of its audited financial

480 statements conducted by the auditor of the commonwealth.

481 (c) The Massachusetts office of business development will establish standard governance

482 provisions to be required of regional economic development organizations that contract with the

483 commonwealth as provided in this section. The standards shall include the participation of local

484 government officials and a broad range of regional representatives of businesses, nonprofit

organizations, higher education institutions, planning professionals, 485 organizations and economic

486 and workforce development professionals.

487 Section 3K.(a) The Massachusetts office of business development shall issue a request

488 for proposals to provide regional business development services. Eligible organizations shall be

489 corporations, foundations, organizations or institutions that are exempt from federal taxation

490 under section 501(c) of the Internal Revenue Code. Eligible organizations must have a primary

491 focus on economic development. Governmental regional entities which serve as regional or

492 district planning commissions under chapter 40B, regional employment boards, tourism councils

493 under section 14 of chapter 23A, or entities which are a political subdivision of a municipality or

494 wholly owned by a municipality shall not be eligible.

495 Eligible applicants must demonstrate the following:

496 (i) The applicant operates regionally and its service area or membership

497 includes more than 3 contiguous cities or towns. The organization must

498 articulate a comprehensive vision for recognition of its contiguous

499 member municipalities as a self identified region with interrelated

500 economic assets such as industrial base, public infrastructure, research,

501 educational and financial institutions and environmental characteristics.

502 (ii) The governance structure and leadership of the applicant organization

503 complies with the standards established by the Massachusetts office of

504 business development.

505 (iii) The applicant is engaged primarily in activities intended to promote job

506 and business retention, creation and attraction across all industry sectors

507 within its identified region.

(iv) The applicant has a history of collaboration 508 with the area business

509 community, local officials, economic development organizations, higher

510 education institutions and other public and private organizations within the

511 identified region. The applicant must describe a plan for a formal program

512 encouraging participation in activities by a wide variety of organizations,

513 governments and businesses operating in the identified region.

514 (v) The applicant has received or has commitments to receive substantial

515 financial and in kind support from private sources or member

516 municipalities.

517 (b) Preference in awarding contracts will be given to organizations that have prior

518 experience furnishing advice and assistance to businesses within or seeking to locate to the

519 identified region, a working knowledge of the region, its industrial base, its demographics and its

520 strengths and weaknesses and prior experience and involvement with regional governmental

521 entities, including but not limited to, regional competitiveness councils and regional employment

522 boards.

523 (c) Contracts for services entered into under this section shall include, but not be limited

524 to, the following required services to be performed by the organization on behalf of the

525 commonwealth:

526 (i) Act as the primary contact for businesses seeking assistance from state or local

527 governments, including those seeking to locate within the region or expand

528 existing operations;

(ii) Identify public funding sources for business activity 529 and provide assistance in

530 accessing public tax incentive programs;

531 (iii) Identify potential sites for business development and maintain an inventory of

532 key development parcels;

533 (iv) Market the identified region in coordination with the Massachusetts marketing

534 partnership established pursuant to section 13A and compliance with the

535 marketing materials developed by said partnership;

536 (v) Furnish advice and assistance to businesses and industrial prospects which may

537 locate in the region, furnish advice and assistance to existing businesses and

538 industries, furnish advice and assistance to persons seeking to establish new

539 businesses or industries, and engage in related activities;

540 (vi) Establish and maintain a network of public and private expertise related to

541 regional assets, industry clusters, workforce and education opportunities, and

542 public tax and regulatory incentive and capital access programs

543 (vii) Partner with the Massachusetts office of business development representative to

544 the region and representatives of quasipublic

agencies and authorities engaged in

545 economic development activities to exchange information and provide direct

546 consultation with businesses seeking to expand or locate to the region.

547 (viii) Act as the primary contact for the region in instances where a business

548 seeks state assistance and incentives in a location decision.

(ix) Prepare an economic development plan for the region 549 and establish strategies for

550 implementation. The plan shall include identification of industry clusters,

551 initiatives for business recruitment and retention, regional economy and

552 competitiveness indicators, and a determination of the assets, liabilities, and

553 resources that the region contributes to the commonwealth. The plan shall

554 include the identification and prioritization of regional infrastructure and

555 regulatory needs as they relate to business attraction and retention.

556 (x) Assist member municipalities with economic development efforts related to

557 business attraction and retention and with access to state economic development

558 programs

559 (xi) Submit an annual report to the Massachusetts office of business development on

560 the grantee’s business development activities. The report shall include: a

561 summary of the preceding year’s program activities, objectives and

562 accomplishments; a description of how the grantee’s programs and marketing

563 strategy aligns with the commonwealth’s overall economic development and

564 strategies; an analysis of how the grantee’s involvement in promotion activities

565 has generated prospective business expansion and relocation clients; and a

566 summary of the grantee’s efforts to obtain funds from local, private, and federal

567 sources.

568 (d) Contracts entered into under this section may contain a term not greater than 3 years,

569 and may provide for the renewal of the contract at the discretion of the Massachusetts office of

570 business development, provided that said renewal shall not be longer than 2 years. Nothing in

this subsection shall preclude a regional organization from 571 reapplying

to provide services under

572 a new contract.

573 (e) The Massachusetts office of business development shall develop a formula to

574 determine funding for contractual reimbursements. That formula shall reflect demographic and

575 economic indicators as well as an assessment of regional needs and the priorities of the statewide

576 economic development plan created under section 16G of chapter 6A. Renewal contracts shall

577 also provide for additional payments to reward achievement in reporting in compliance with

578 performance measurements, and to reward achievement of specific performance goals.

579 (f) Organizations entering into contracts with the commonwealth under this section may

580 enter into additional contracts with the commonwealth to provide additional regional services

581 which do not constitute business assistance activities.

582 Section 3L. (a) The Massachusetts office of business development will provide business

583 assistance services in municipalities and regions not served by an eligible regional economic

584 development organization that has contracted with the commonwealth to provide services under

585 section 3J.

586 (b)The Massachusetts office of business development will provide initial assistance to

587 any business which contacts the office requesting service. The Massachusetts office of business

588 development will provide the business with information about the various regional economic

589 development organizations with which it has contracted and continue to serve as primary contact

590 for that business until the business has established a relationship with a particular region. The

591 Massachusetts office of business development shall notify all regional economic development

592 organizations, on a nondiscriminatory basis, of any business prospects that have expressed

593 interest to the Massachusetts office of business development in moving to the commonwealth.

(c) The Massachusetts office of business development shall 594 partner with the regional

595 economic development organizations and locate staff throughout the regions of the

596 commonwealth in order to establish efficient and rapid access to all state government and quasi597

public business services. The Massachusetts office of business development will provide

598 information to the regional economic development organizations about state economic

599 development, business assistance, capital access and incentive programs, marketing activities

600 and programs offered by quasipublic

agencies and authorities and private entities.

601 (d) The Massachusetts office of business development shall coordinate activity among

602 regional economic development organizations and between economic development organizations

603 and the commonwealth’s economic development agencies and initiatives (i) to ensure that

604 initiatives led by the commonwealth or quasipublic

economic development agencies receive

605 information and advice from the regional economic development organizations, and (ii) to ensure

606 that initiatives led by the regional economic development organizations receive information and

607 advice from agencies within the executive branch and from quasipublic

economic development

608 agencies.

609 (e) The Massachusetts office of business development shall support the secretary of

610 housing and economic development in the creation of the statewide economic development plan

611 prepared under section 16G of chapter 6A and shall coordinate the inclusion of information and

612 strategies from the regional economic development plans.

613 SECTION 20. Section 4 of chapter 23A, as so appearing, is hereby amended by striking

614 the word “department of economic development” and inserting in place thereof the following

615 words:Massachusetts

office of business development.

SECTION 21. Said section 4 of said chapter 23A, as so 616 appearing, is hereby amended

617 by adding at the end thereof the following sentence: The Massachusetts office of business

618 development shall locate staff throughout the regions of the commonwealth in order to partner

619 with the regional economic development organizations and establish efficient and rapid access

620 for businesses and regional organizations to all state government and quasipublic

business

621 services.

622 SECTION 22. Section 5 of said chapter 23A, as so appearing, is hereby amended by

623 striking out, in line 9, the words “, in the department of economic development”.

624 SECTION 23. Section 6 of said chapter 23A, as so appearing, is hereby amended in line

625 2 by striking the words: “of economic development”.

626 SECTION 24. Said section 6 of said chapter 23A, as so appearing, is hereby further

627 amended by adding at the end of the first paragraph the following sentence:

628 The director shall establish an advisory council that shall assist and advise the director on

629 matters related to the administration and evaluation of the regional business development

630 program created pursuant to section 3J.

631 SECTION 25. Section 10A of said chapter 23A, as so appearing, is hereby amended by

632 striking out the words, “Said department” and inserting in place thereof the following:the

633 Massachusetts office of business development.

634 SECTION 26. Chapter 23A of the General Laws is hereby amended by striking out

635 sections 13A and 13B, as appearing in the 2008 Official Edition, and inserting in place thereof

636 the following 2 sections:Section

13A. For the purposes of sections 13A to 13Q, inclusive, 637 the following words

638 shall, unless the context clearly requires otherwise, have the following meanings:

639 “Foreign offices”, foreign offices for international trade within the trade office.

640 “Partnership”, the Massachusetts marketing partnership created in this section.

641 “Tourism”, the office of travel and tourism.

642 In order to promote common, coordinated and concerted efforts on behalf of the

643 commonwealth, there shall be within the executive office of housing and economic development,

644 but not subject to the supervision or control of the executive office, the Massachusetts marketing

645 partnership which shall coordinate marketing efforts on behalf of the commonwealth and shall

646 oversee the activities of the agencies placed within it.

647 (a) The partnership shall consist of the secretary of housing and economic development,

648 who shall chair the partnership; the director of the Massachusetts office of business development

649 or the director’s designee; the executive director of the Massachusetts Convention Center

650 Authority or the executive director’s designee; the executive director of the Massachusetts Port

651 Authority or the executive director’s designee; and 5 individuals appointed by the governor for

652 terms of 5 years, as follows: 1 person from a list of 3 names submitted by the Associated

653 Industries of Massachusetts, each of whom shall be employed by a business that has a principal

654 place of business in the commonwealth and that exports goods to other countries; 1 person who

655 has significant experience with a public relations or advertising firm doing business in the

656 commonwealth; 1 person who shall be on the faculty of a public or private business school in the

657 commonwealth who is experienced in international business; and 2 persons who shall represent a

regional tourism council in the commonwealth outside of Suffolk County, 658 Middlesex County and

659 Norfolk County. Of the initial appointed partners, 3 shall serve a term of 2 years and 2 shall

660 serve a term of 5 years.

661 At least 3 of the governor’s 5 appointments shall reside outside of Suffolk County,

662 Middlesex County and Norfolk County. Not more than 5 of the partners shall be members of the

663 same political party. Each partner shall serve without compensation but may be reimbursed for

664 actual and necessary expenses reasonably incurred in the performance of the partner’s duties,

665 including reimbursement for reasonable travel; provided, however that that such reimbursement

666 shall not exceed $500 annually. A person appointed to fill a vacancy in the office of a partner

667 shall be appointed in a like manner and shall serve for only the unexpired term of the former

668 member. A partner shall be eligible for reappointment. A partner may be removed by the

669 governor for cause. The board shall annually elect 1 of its members to serve as vicechairperson.

670 (b) Seven partners shall constitute a quorum and the affirmative vote of a majority of

671 partners present at a duly called meeting, if a quorum is present, shall be necessary for an action

672 to be taken by the partnership. An action required or permitted to be taken at a meeting of the

673 partners may be taken without a meeting if all of the partners consent, in writing, to the action

674 and that written consent is filed with the records of the minutes of the meetings of the

675 partnership. Such consent shall be treated for all purposes as a vote at a meeting. Each partner

676 shall make full disclosure, under subsection (c), of the partner’s financial interest, if any, in

677 matters before the partnership by notifying the state ethics commission, in writing, and the

678 partner shall abstain from voting on a matter before the board in which the partner has a financial

679 interest, unless otherwise permitted under chapter 268A.

680 (c) Chapters 268A and 268B shall apply to all ex officio partners or the partners’

designees and employees of the agencies within the partnership. 681 Chapters 268A and 268B shall

682 apply to all other partners, except that the agencies within the partnership may purchase from,

683 sell to, borrow from, loan to, contract with or otherwise deal with a person, corporation or other

684 business entity in which any partner is in any way interested or involved; provided, however, that

685 such interest or involvement is disclosed in advance to the members of the partnership and

686 recorded in its minutes; and provided, further, that no partner having such an interest or

687 involvement may participate in a decision of the partnership relating to such person, corporation

688 or other business entity. Employment by the commonwealth or service in an agency or political

689 subdivision of the commonwealth shall not be deemed to be such an interest or involvement.

690 (d) The partnership shall biannually

elect 1 of its members as treasurer and 1 of its

691 members as secretary. The secretary of the partnership shall keep a record of its proceedings and

692 shall be custodian of all books, documents and papers filed by the partnership and of its minute

693 book and seal. The secretary of the partnership shall cause copies to be made of all minutes and

694 other records and documents of the partnership and shall certify that such copies are true copies

695 and all persons dealing with the partnership may rely upon such certification.

696 (e) Partners and employees of the agencies within the partnership having access to its

697 cash or negotiable securities shall give bond to the partnership at its expense in such amounts and

698 with such surety as the partnership may prescribe. The persons required to give bond may be

699 included in 1 or more blanket or scheduled bonds.

700 (f) Board members and officers who are not compensated employees of the department

701 shall not be liable to the commonwealth, the department or any other person as a result of their

702 activities, whether ministerial or discretionary, as such board members or officers except for

703 willful dishonesty or intentional violations of law. Neither members of the department nor a

person executing bonds or policies of insurance shall be personally liable 704 on those bonds or

705 policies or be subject to any personal liability or accountability by reason of the issuance of those

706 bonds or policies. The board of directors may purchase liability insurance for board members,

707 officers and employees and may indemnify the board members against claims of others.

708 (g) Upon the termination of the existence of the partnership, all right, title and interest in

709 and to all of its assets and all of its obligations, duties, covenants, agreements and obligations

710 shall vest in and be possessed, performed and assumed by the commonwealth.

711 (h) An action of the partnership may take effect immediately and need not be published

712 or posted unless otherwise provided by law. Meetings of the partnership shall be subject to

713 section 11A 1/2 of chapter 30A, except that said section 11A 1/2 shall not apply to any meeting

714 of members of the partnership serving ex officio in the exercise of their duties as officers of the

715 commonwealth so long as no matter relating to the official business of the department is

716 discussed and decided at the meeting. The partnership shall be subject to all other provisions of

717 said chapter 30A, and records pertaining to the administration of the partnership shall be subject

718 to section 42 of chapter 30 and section 10 of chapter 66. All moneys of the partnership shall be

719 considered to be public funds for purposes of chapter 12A.

720 (i) The partnership shall be subject to section 56 of chapter 23A.

721 Section 13B.There shall be within the partnership the following offices: the office of

722 travel and tourism, the Massachusetts trade office and the commonwealth marketing office.

723 SECTION 27. Said chapter 23A is hereby amended by striking out section 13C, as

724 amended by section 29 of chapter 25 of the acts of 2009, and inserting in place thereof the

725 following section:Section

13C. The par 726 tnership shall have the power to:

727 (1) adopt and amend bylaws,

regulations and procedures for the governance of its

728 affairs and the conduct of its business for the administration and enforcement of this sections

729 13A to 13Q, inclusive; provided, however, that regulations adopted by agencies within the

730 partnership shall be adopted under chapter 30A;

731 (2) adopt an official seal and a functional name;

732 (3) maintain offices at places within the commonwealth as it may determine and to

733 conduct meetings of the partnership in accordance with the bylaws

of the partnership;

734 (4) enter into agreements and transactions with federal, state and municipal agencies and

735 other public institutions and private individuals, partnerships, firms, corporations, associations

736 and other entities on behalf of the partnership;

737 (5) sue and be sued in its own name, plead and be impleaded;

738 (6) act as the central entity and coordinating organization for marketing initiatives on

739 behalf of the commonwealth and to work in collaboration with governmental entities, regional

740 economic development organizations, bodies, centers, institutes and facilities to advance the

741 commonwealth’s interests and investments in travel and tourism, international trade and

742 economic development;

743 (7) appear in its own behalf before boards, commissions, departments or other agencies

744 of municipal, state or federal government;

745 (8) obtain insurance;

746 (9) apply for and accept subventions, grants, loans, advances and contributions from any

747 source of money, property, labor or other things of value to be held, used and applied for

748 its corporate purposes;

749 (10) review and recommend changes in laws, rules, programs and policies of the

750 commonwealth and its agencies and subdivisions to further the marketing of the commonwealth

751 and economic development within the commonwealth;

752 (11) enter into agreements with public and private entities that deal primarily with

753 economic development, in order to distribute and provide leveraging of funds or services to

754 further economic development in the commonwealth and promote overall economic growth

755 within the commonwealth by fostering collaboration and investments in tourism and

756 international trade initiatives in the commonwealth;

757 (12) provide and pay for such advisory services and technical assistance as may be

758 necessary or desired to carry out the purposes of this chapter;

759 (13) establish and collect such fees and charges as the department without further

760 appropriation shall determine to be reasonable and consistent with this sections 13A to 13Q,

761 inclusive; and to receive and apply revenues from fees and charges to the purposes of the

762 department or allotment by the commonwealth or any political subdivision of the

763 commonwealth;

764 (14) disburse, appropriate, grant, loan or allocate funds for the purposes of investing in

765 economic development initiatives as directed in sections 13A to 13Q, inclusive;

(15) provide assistance to local entities, local authorities, 766 public bodies, regional

767 economic development organizations, and private corporations for the purposes of maximizing

768 opportunities for economic development initiatives in the commonwealth;

769 (16) prepare, publish and distribute, with or without charge, as the department may

770 determine, such studies, reports and bulletins and other material as the department deems

771 appropriate;

772 (17) exercise any other powers of a corporation organized under chapter 156B;

773 (18) develop a common Internet portal to be used by state agencies and state authorities

774 to promote the commonwealth’s programs providing business assistance and to promote

775 economic development in the commonwealth;

776 (19) take any actions necessary or convenient to the exercise of any power or the

777 discharge of any duty provided for by sections 13A to 13Q, inclusive;

778 (20) enter into agreements or other transactions with any person including, without

779 limitation, a public entity or other governmental instrumentality or agency in connection with the

780 powers and duties provided to the partnership under sections 13A to 13Q, inclusive; and

781 (21) delegate any of the powers under this section to a director having charge of an

782 agency within the partnership.

783 SECTION 28. Said chapter 23A, as appearing in the 2008 Official Edition, is hereby

784 amended by striking out sections 13D and 13E and inserting in place thereof the following 14

785 sections:Section

13D. (a) The partnership and the agencies within the 786 partnership shall, for the

787 purposes of compliance with state finance law, operate as a state agency as defined in section 1

788 of chapter 29 and shall be subject to the laws applicable to agencies under the control of the

789 governor including, but not limited to, chapter 7, chapter 7A, chapter 10 and chapter 29;

790 provided, however, that the comptroller may identify additional instructions or actions necessary

791 for the partnership to manage fiscal operations in the state accounting system and meet statewide

792 and other governmental accounting and audit standards. Unless otherwise exempted by law or

793 the applicable central service agency, the partnership shall participate in other available

794 commonwealth central services including, but not limited, to the state payroll system under

795 section 31 of chapter 29, and may purchase other goods and services provided by state agencies

796 under the direction of the comptroller. The comptroller may chargeback the partnership for the

797 transition and ongoing costs for participation in the state accounting and payroll systems and

798 may retain and expend such costs without further appropriation for the purposes of this section.

799 The partnership shall be subject to section 5D of chapter 29 and subsection (f) of section 6B of

800 chapter 29.

801 (b) The office of the attorney general shall appear for the partnership, its partners and

802 agencies, in all suits and other civil proceedings in which the partnership is a party or interested,

803 or in which the official acts and doings of its partners and agencies are called into question, to

804 the same extent and in the same manner as provided to the commonwealth and state departments,

805 officers and commissions under section 3 of chapter 12. The partnership and its partners and

806 agencies shall be generally considered to be an agency of the commonwealth for purposes of

807 chapter 12.

(c) The Massachusetts office of business development may provide 808 staff support for the

809 Massachusetts Marketing Partnership.

810 Section 13E. There shall be within the partnership an office of travel and tourism which

811 shall be under the supervision and control of an executive director. The powers and duties given

812 to the executive director of tourism in this chapter and in any other general or special law shall

813 be exercised and discharged subject to the direction, control and supervision of the partnership.

814 The executive director of tourism shall be appointed by the governor, and serve at the

815 pleasure of the governor. The position of executive director of tourism shall be classified under

816 section 45 of chapter 30 and the executive director of tourism shall devote full time during

817 business hours to the duties of the office of travel and tourism and shall give to the state treasurer

818 a bond for the faithful performance of those duties.

819 The executive director of tourism shall be the executive and administrative head of

820 tourism and shall be responsible for administering and enforcing the laws relative to tourism and

821 to any administrative unit of that office. Powers and duties given to an administrative unit of

822 tourism by a general or special law shall be exercised subject to the direction, control and

823 supervision of the executive director of tourism.

824 Section 13F. The office of travel and tourism shall serve as the principal agency for

825 promoting the recreational, cultural, historic and scenic resources of the commonwealth to

826 increase its desirability as a location for tourism, convention, travel and recreationrelated

827 activities by providing informational, marketing and technical assistance to public and private

828 nonprofit entities organized for similar purposes.

Section 13G. The executive director of tourism may, subject 829 to appropriation and with

830 the approval of the partnership, appoint and may, with like approval, remove all such employees

831 as may be necessary to carry out the work of tourism. Unless otherwise provided by law, all such

832 appointments and removals shall be made under chapter 31. The executive director may, subject

833 to appropriation and the laws and regulations pertaining to the employment of consultants,

834 employ such consultants as the executive director may deem necessary.

835 Section 13H. There shall be an advisory commission on travel and tourism to the

836 partnership to develop budget recommendations and marketing strategies for the promotion of

837 travel and tourism to the commonwealth. The executive director of tourism shall convene the

838 advisory commission quarterly. The advisory commission shall annually report its

839 recommendations to the partnership not later than November 1. The advisory commission shall

840 annually file its recommendations with the clerks of the senate and house of representatives not

841 later than November 1. The membership of the commission shall annually elect a chairperson.

842 The advisory commission shall have 28 members: 1 representative from each of the

843 following organizations: the Massachusetts Restaurant Association, the Massachusetts Lodging

844 Association, the Massachusetts Camping Ground Association, the New England Bus

845 Association, the Massachusetts cultural council and the Massachusetts historical commission; 1

846 representative of a professional sports franchise located in the commonwealth, 2 representatives

847 of the Massachusetts Visitor Industry Council; the executive director or the executive director’s

848 designee of each of the following regional tourism councils: the Berkshire Hills Visitors Bureau,

849 the Bristol County Convention and Visitors Bureau, the Cape Cod Chamber of Commerce, the

850 Franklin County Chamber of Commerce, the Greater Boston Convention and Visitors Bureau,

the Worcester County Convention and Visitors Bureau, the 851 Martha’s Vineyard Chamber of

852 Commerce, the Greater Merrimack Valley Convention and Visitors Bureau, the Mohawk Trail

853 Association, the North of Boston Convention and Visitors Bureau, the Greater Springfield

854 Convention and Visitors Bureau, the Plymouth County Development Council, Inc., the

855 Nantucket Island Chamber of Commerce, the MetroWest Tourism and Visitor’s Bureau and the

856 following individuals, who shall not serve as chair: the commissioner of conservation and

857 recreation or the commissioner’s designee, the administrator of the highway division or the

858 administrator’s designee, the Massachusetts state coordinator of the United States National Park

859 Service, and the house and senate chairs of the joint committee on tourism, arts and cultural

860 development.

861 Members of this commission shall receive no compensation for their services, but each

862 member shall be reimbursed the member’s necessary expenses incurred while engaged in the

863 performance of the member’s duties. This commission shall annually, not later than November 1,

864 make a report to the executive director and the secretary of housing and economic development,

865 and may make such special reports as the commission or the executive director of tourism may

866 deem desirable.

867 Section 13I. Tourism may accept gifts or grants of money or property from any source,

868 which shall be held in trust for the use of tourism by the treasurer of the partnership as custodian.

869 Section 13J. The following offices shall be within the office of travel and tourism: the

870 Massachusetts film office, which shall be the official and lead agency to facilitate motion picture

871 production and development within the commonwealth; the Massachusetts sports partnership,

872 which shall be the official and lead agency to facilitate and attract major sports events and

championships in the commonwealth; and the Massachusetts cultural 873 council established under

874 section 52 of chapter 10.

875 Section 13K. There shall be within the partnership a Massachusetts trade office, which

876 shall be under the supervision and control of an executive director. The executive director shall

877 be appointed by the governor, and serve at the pleasure of the governor. The executive director

878 shall devote his full time during business hours to the duties of the Massachusetts trade office.

879 The executive director of the trade office shall be the executive and administrative head of the

880 office and shall be responsible for administering and enforcing the laws relative to the office and

881 to any administrative unit of the office.

882 The executive director shall also serve as the Massachusetts trade representative. The

883 purpose of the Massachusetts trade representative shall be to: (1) serve as the commonwealth’s

884 official point of contact with the federal government on matters related to international trade; (2)

885 work with the executive office of housing and economic development and other appropriate state

886 agencies to analyze proposed and enacted international trade agreements and provide an

887 assessment of the impact of those agreements on the commonwealth’s economy; (3) serve as the

888 designated recipient of federal requests for the commonwealth to agree to be bound by

889 investment, procurement, services or any other provisions of international trade agreements,

890 including those which may infringe upon state law or regulatory authority reserved to the

891 commonwealth; (4) serve as a liaison to the general court on matters of international trade policy

892 oversight including, but not limited to, reporting to members of the general court on a regular

893 basis on the status of ongoing international trade negotiations, international trade litigation, and

dispute settlement proceedings with implications for existing 894 state laws, state regulatory

895 authority and international trade policy on the commonwealth’s economy.

896 The trade representative shall, within 30 days of receipt, forward any requests or

897 communications received from the United States Trade Representative relative to any issue of

898 international trade, including requests seeking the commonwealth’s consent to be bound by

899 international trade agreements, to the clerk of the house of representatives and the clerk of the

900 senate, who shall promptly refer the communications or requests to the joint committee on

901 economic development and emerging technologies. The joint committee shall, within 30 days of

902 receipt, conduct a public hearing on any request seeking the commonwealth’s consent to be

903 bound by an international trade agreement. The joint committee may issue a report within 120

904 days of the public hearing including a resolution to the general court relative to the

905 recommendations of the committee on whether the commonwealth should consent to the

906 international trade agreement in question and memorializing the commonwealth’s trade

907 representative and the governor to take appropriate measures within their power to advise the

908 United States Trade Representative of the recommendations of the general court.

909 Section 13L. There shall be within the trade office 1 or more foreign offices for

910 international trade. The foreign offices may be located in any far eastern or European country

911 that the executive director of the trade office determines to be best suited as the location for the

912 furthering of foreign trade opportunities for the businesses of the commonwealth. The foreign

913 offices shall encourage and further trade between foreign businesses and businesses in the

914 commonwealth. The foreign offices shall also promote investment opportunities in the

915 commonwealth for foreign businesses in order to encourage the location and establishment of

such businesses within the commonwealth. For the purposes of furthering 916 foreign trade and

917 investment, the foreign offices, subject to appropriation and approval by the executive director of

918 the trade office, may contract for such advertising and other communication services as may be

919 necessary. The foreign offices shall maintain an updated list of businesses in the commonwealth

920 and foreign businesses which are or might become active in the import or export of their

921 products and services. The executive director shall consult with Massachusetts office of business

922 development and the regional economic development designated pursuant to section 3J in order

923 to ensure that the businesses and assets of all regions of the commonwealth are included in such

924 lists. The foreign office may also provide additional information and assistance to businesses in

925 the commonwealth that desire to export their goods and services.

926 The foreign offices shall maintain and give suitable publicity to an updated list of

927 available sites for the location of foreign based businesses in the commonwealth. The foreign

928 offices may make available technical assistance to foreign businesses interested in the

929 establishment of plants or facilities in the commonwealth.

930 The foreign offices shall, on a regular basis, make all foreign trade information available

931 to the executive director of the trade office, who shall publish and furnish such information to

932 regional economic development organizations designated under section 3J and to businesses and

933 corporations in the commonwealth which might be interested in, or benefit from the utilization of

934 such information. The executive director of the trade office may charge a fee not to exceed the

935 actual printing costs for such information, except that no fee shall be charged to regional

936 economic development organizations designated under section 3J.

Section 13M. There shall be a director of each foreign office 937 appointed by the executive

938 director of the trade office, who shall be a person with at least 2 years of experience in

939 international trade, having had administrative or business experience in the country where the

940 office is located, who shall be fluent in at least 2 languages and who may be a foreign national.

941 The director shall not be subject to chapter 31 or section 9A of chapter 30.

942 Section 13N. The executive director of the trade office may, subject to appropriation,

943 enter into leases for office space as may be necessary and to purchase or lease equipment as may

944 be needed for the operation of foreign offices.

945 Section 13O. The executive director of the trade office may accept funds in the name of

946 the trade office and the foreign offices from private and public groups, agencies and persons,

947 which shall be held in trust for use by the treasurer of the partnership as custodian.

948 Section 13P. The executive director of the trade office and the director of any foreign

949 office shall annually file a financial report with the clerks of the house and senate and the joint

950 legislative committee on economic development and emerging technologies on the operation and

951 activities of the office. The report shall include a complete evaluation of the results of the

952 activities of the foreign offices and its effects on the business economy of the commonwealth,

953 especially in the areas of the export of goods and services and in the location of foreign

954 businesses in the commonwealth.

955 Section 13Q. The trade office shall operate a 1 or more centers, subject to appropriation,

956 for technical assistance to companies operating in the commonwealth that export products to

957 other countries.

SECTION 29. Section 14 of said chapter 23A, as so 958 appearing, is hereby amended by

959 inserting after the word “Bureau”, in line 11, the words:“,

the MetroWest Tourism and Visitor’s

960 Bureau”.

961 SECTION 30. Said section 14 of said chapter 23A, as so appearing, is hereby amended

962 by striking out, in lines 17 and 18, the words “director of economic development” and inserting

963 in place thereof the following words:executive

director of tourism.

964 SECTION 31. Said section 14 of said chapter 23A, as so appearing, is hereby further

965 amended by striking out, in lines 55 and 56, the words “, subject to approval by the director of

966 economic development” and inserting in place thereof the following words:of

tourism.

967 SECTION 32. Section 20 of said chapter 23A, as so appearing, is hereby amended in the

968 first paragraph by striking out the last sentence.

969 SECTION 33. Said section 20 of said chapter 23A, as so appearing, is hereby further

970 amended by inserting after the first paragraph the following new paragraph:971

The director shall establish a program to support the provision of financial and

972 managerial consulting and technical assistance companies which receive financial assistance

973 from the commonwealth or any of the commonwealth’s public authorities. The program shall

974 support direct consulting work provided to individual companies and shall consult with the

975 commonwealth’s public authorities, private business associations and regional economic

976 development organizations to maintain a directory of organizations, experts and consultants

977 available to be engaged to offer financial or managerial consulting services.

978 SECTION 34. Sections 23A to 28, inclusive, of chapter 23A of the General Laws are

979 hereby repealed.

980 SECTION 35. Sections 39A to 39D, inclusive, of said chapter 23A are hereby repealed.

SECTION 36. Said chapter 23A, as appearing in the 2008 Official 981 Edition, is hereby

982 amended by striking out sections 40 to 43, inclusive, and inserting in place thereof the following

983 4 sections:984

Section 40. As used in sections 41 to 44, inclusive, the following words shall, unless the

985 context clearly requires otherwise, have the following meanings:986

“Director”, the director of SOMWBA.

987 “Minority business enterprise”, for the purpose of receipt of services from SOMWBA, a

988 business enterprise that is owned or controlled by 1 or more socially or economically

989 disadvantaged persons, which disadvantage may arise from cultural, racial, chronic economic

990 circumstances or background or other similar cause; provided, that persons shall include, but not

991 be limited to, AfricanAmericans,

Puerto Ricans, Spanishspeaking

Americans, American

992 Indians, Eskimos and Aleuts.

993 “SOMWBA”, the state office of minority and women business assistance established in

994 section 41.

995 “Veteran business enterprise”, for the purpose or receipt of services from SOMWBA, a

996 business enterprise that is both owned and controlled by 1 or more veterans, as defined in section

997 7 of chapter 4, who have invested in an ongoing business free of conversion rights.

998 “Women business enterprise”, for the purpose or receipt of services from SOMWBA, a

999 business enterprise that is both owned and controlled, by 1 or more women who have invested in

1000 an ongoing business free of conversion rights.

Section 41. There shall be a state office of minority and women 1001 business assistance

1002 which shall be a division of the Massachusetts office of business development within the

1003 executive office of housing and economic development.

1004 Section 42. The director shall have all necessary authority to utilize existing staff in the

1005 agencies within the executive office of housing and economic development to effect the purposes

1006 of sections 39 to 44, inclusive, and shall have the authority to seek such funds, public or private,

1007 as may be available and needed to carry out the intent of those sections.

1008 Section 43. Subject to appropriation, SOMWBA shall have a director, assistant director

1009 and such other specialists in minority and women business assistance. SOMWBA, may, either on

1010 its own staff or by contract with community groups, private companies or public or nonprofit

1011 agencies, have available community liaison officers, financial and marketing experts and persons

1012 skilled in public and private contract procurement procedures.

1013 SECTION 37. Section 44 of said chapter 23A, as so appearing, is hereby amended by

1014 striking out, in lines 6 and 7, the words, “ executive director of OMWBDE” and inserting in

1015 place thereof the following words:secretary

of housing and economic development.

1016 SECTION 38. Said section 44 of said chapter 23A, as so appearing, is hereby further

1017 amended by striking out, in lines 20 and 21, the words, “through the director of economic

1018 development and the OMWBDE executive director, shall coordinate its activities with those of

1019 other offices and activities of OMWBDE” and inserting in place thereof the following words:1020

through the Massachusetts office of business development and the secretary of housing and

1021 economic development, shall coordinate its activities with those of other offices and departments

1022 within the executive office of housing and economic development.

SECTION 39. Said section 44 of said chapter 23A, as so 1023 appearing, is hereby further

1024 amended by striking out, in lines 67 and 68, the words, “executive director of OMWBDE and the

1025 director of economic development” and inserting in place thereof the following words:1026

Massachusetts office of business development.

1027 SECTION 40. Sections 46 to 55, inclusive, of said chapter 23A are hereby repealed.

1028 SECTION 41. Chapter 23A of the General Laws, as appearing in the 2008 Official

1029 Edition, is hereby amended by striking out section 56 and inserting in place thereof the following

1030 section:1031

Section 56. (a) The secretary of housing and economic development shall coordinate the

1032 quasipublic

entities and public purpose agencies of the commonwealth as to their economic

1033 development projects, programs and plans. These quasipublic

entities and public purpose

1034 agencies shall, within 90 days after the end of its fiscal year, submit a complete and detailed

1035 annual report, in a form and manner prescribed by the secretary, setting forth: its operations and

1036 accomplishments; its receipts and expenditures during its fiscal year; its assets and liabilities at

1037 the end of its fiscal year; audited financial reports; the number, nature and amounts of

1038 investments made and grants awarded; information detailing debt or equity investment; the

1039 number, nature and amounts of any loans, real estate loans, working capital loans and guarantees

1040 approved; other forms of financing or financial assistance that it provided; a report of patents or

1041 products resulting from funded activities; and a description of any technical assistance that it

1042 provided.

1043 (b) The secretary shall aggregate the data and shall, not later than December 31, submit

1044 an annual report to the secretary of administration and finance, the house and senate committees

on ways and means, the joint committee on economic development and 1045 emerging technologies,

1046 the joint committee on labor and workforce development, the joint committee on small business

1047 and community development and the joint committee on higher education. The report shall

1048 include an analysis of all public lending activities to businesses with an assessment of the

1049 economic impact of those activities and an analysis evaluating public lending to small businesses

1050 as defined in section 57 of chapter 23A.

1051 (c) In order to fully utilize all appropriate measures to provide risk capital to small

1052 businesses in the commonwealth the Massachusetts Small Business Finance Corporation, the

1053 Massachusetts Development Finance Agency and the Massachusetts Technology Development

1054 Corporation may establish 1 or more small business investment corporations or special small

1055 business investment corporations as provided by the federal Small Businesses Equity

1056 Enhancement Act of 1992.

1057 (d) The books and records of the quasipublic

entities and public purpose agencies of the

1058 commonwealth under this section shall be subject to a biennial audit by the auditor of the

1059 commonwealth and an annual audit conducted by an independent auditor. The results of both

1060 audits shall be published in conjunction with the publication of audited financial statements.

1061 SECTION 42. Section 57 of said chapter 23A, as so appearing, is hereby amended by

1062 striking out subsection (i) and inserting in place thereof the following 2 subsections:1063

(i) No loan or loans in an aggregate principal amount in excess of $500,000 shall be

1064 provided to a borrower under the program and no small business borrower under this program

1065 shall be provided a loan under the program for passive real estate purposes.

(j) Any financial institution desiring to become a participating financial 1066 institution shall

1067 execute an agreement in such form as the agency or its agent may prescribe, which agreement

1068 shall contain the terms and provisions set forth in subsections (a) to (i), inclusive and such other

1069 terms and provisions as the agency or its agent may deem necessary or appropriate.

1070 SECTION 43. Said section 57 of said chapter 23A, as so appearing, is hereby further

1071 amended by striking out the definition of “small business” and inserting in place thereof the

1072 following definition:1073

“Small business”, a business entity, including its affiliates, that: (i) is independently

1074 owned and operated; (ii) has a principal place of business in the commonwealth; and (iii) if in a

1075 manufacturing industry, employs fewer than 500 fulltime

employees, if in a wholesale trade

1076 industry, employs fewer than 100 fulltime

employees or, if in any other industry, receives less

1077 than $7 million in annual receipts; provided, however, that for purposes of this definition, the

1078 industry of a business shall be classified according to the North American Industry Classification

1079 System.

1080 SECTION 44. Said chapter 23A is hereby amended by striking out section 58, as so

1081 appearing, and inserting in place thereof the following section:1082

Section 58. The agency is hereby authorized to:

1083 (a) enter into a contract, after a competitive bidding process, with an organization to act

1084 as the agent of the agency with respect to the administration of the program; provided, however,

1085 that the contract shall: (1) be for a period of 2 years with such provisions for extension or

1086 renewal of the contract as the agency may agree to with the administering agent; and (2) provide

for compensation and reimbursement of the agent on terms the agency 1087 may deem appropriate for

1088 the administration of the program, for any expenses incurred by the administering agent in

1089 connection with its services as agent and for such other services as the agency may deem

1090 appropriate including, but not limited to, the use of the premises, personnel and personal

1091 property of the administering agent;

1092 (b) conduct an annual review and assessment of the performance of the administering

1093 agent in its capacity as agent for the agency; provided, however, that the annual review shall be

1094 based on whether the administering agent has satisfactorily met the terms and conditions of the

1095 contract and on the program’s effectiveness in achieving its intended goals;

1096 (c) make and publish rules and regulations respecting the implementation of the small

1097 business capital access program established by this section and any other rules and regulations

1098 necessary to fulfill the purposes of this section; and

1099 (d) do any and all things necessary or convenient to carry out its purposes and exercise

1100 the powers expressly given and granted in this section.

1101 SECTION 45. Said chapter 23A is hereby amended by striking out section 61, as so

1102 appearing, and inserting in place thereof the following section:1103

Section 61. The Massachusetts office of business development or its successor may:

1104 (a) enter into a contract, after a competitive bidding process, with an organization to act

1105 as the agent of the agency with respect to the administration of the program; provided, however,

1106 that said contract shall: (1) be for a period of 2 years with such provisions for extension or

renewal of the contract as the agency may agree to with the administering 1107 agent; and (2) provide

1108 for compensation and reimbursement of the agent on terms the agency may deem appropriate for

1109 the administration of the program, for any expenses incurred by the administering agent in

1110 connection with its services as agent and for such other services as the agency may deem

1111 appropriate including, but not limited to, the use of the premises, personnel and personal

1112 property of the administering agent;

1113 (b) conduct an annual review and assessment of the performance of the administering

1114 agent in its capacity as agent for the agency; provided, however, that the annual review shall be

1115 based on whether the administering agent has satisfactorily met the terms and conditions of the

1116 contract and on the program’s effectiveness in achieving its intended goals;

1117 (c) make and publish rules and regulations respecting the implementation of the

1118 redevelopment access to capital program and any other rules and regulations necessary to fulfill

1119 the purposes of this section; and

1120 (d) do any and all things necessary or convenient to carry out its purposes and exercise

1121 the powers expressly given and granted in this section.

1122 SECTION 46. Said chapter 23A is hereby amended by striking out section 62, as so

1123 appearing, and inserting in place thereof the following section:1124

Section 62. There shall be an interagency permitting board within the Massachusetts

1125 office of business development. The members of the board shall be comprised of the state permit

1126 ombudsman who will serve as the chair of the interagency permitting board, the secretary of

1127 housing and economic development, the secretary of transportation, the secretary of energy and

environmental affairs, the secretary of public safety and security, the 1128 director of the department

1129 of housing and community development, the director of business development, the director of

1130 the department of workforce development, the director of the office of consumer affairs and

1131 business regulation, and the executive director of the Massachusetts Development Finance

1132 Agency; or their designees. Six members shall be a quorum for the transaction of business. The

1133 chair shall communicate with municipal officials responsible for local review procedures to

1134 determine the municipal perspective on the proposed project, and to facilitate communication

1135 between the municipality and state agencies. The interagency permitting board shall consult with

1136 each regional office of the Massachusetts office of business development as well as each regional

1137 planning agency, and regional economic development organizations with which the

1138 Massachusetts office of business development has contracted under this chapter in order to better

1139 serve local businesses. At the direction of the chair, the board shall meet no fewer than 8 times a

1140 year, and shall monitor the development of priority development sites under chapter 43D and

1141 investigate ways in which to expedite priority development site projects. The board shall

1142 evaluate state agency permit procedures and recommend changes for improved efficiency. The

1143 board shall administer the technical assistance grants program established in subsection (b) of

1144 section 3 of chapter 43D. The secretary of housing and economic development shall work with

1145 the chair of the interagency permitting board and senior staff members to develop a

1146 recommended format for an application form and procedure which shall be used by all executive

1147 offices when possible.

1148 SECTION 47. Section 8 of chapter 23D of the General Laws, as amended by section 17

1149 of chapter 27 of the acts of 2009, is hereby amended by striking out the first sentence and

1150 inserting in place thereof the following sentence:There

shall be in the executive office of

housing and economic development, but not subject to its jurisdiction, 1151 an economic stabilization

1152 trust which shall be administered by the Massachusetts Small Business Finance Corporation

1153 established in chapter 40F.

1154 SECTION 48. Said chapter 23D of the General Laws is further amended by striking out

1155 section 9, as appearing in the 2008 Official Edition, and inserting in place there of the following

1156 section:

1157 Section 9. The trust shall be governed and its powers exercised by the board of directors

1158 of the Massachusetts Small Business Financing Corporation established in chapter 40F.

1159 SECTION 49. Said chapter 23D is hereby further amended by striking out section 10, as

1160 amended by section 19 of chapter 27 of the acts of 2009, and inserting in place thereof the

1161 following section:1162

Section 10. The offices of the trust shall be located within the Massachusetts Small

1163 Business Finance Corporation. The president of the Massachusetts Small Business Financing

1164 Corporation, shall appoint an executive director of the trust. The executive director shall serve as

1165 the administrative and operational officer of the trust, shall attend meetings of the trust and shall

1166 direct the resources and staff of the program to achieve the purposes of sections 8 to 16,

1167 inclusive.

1168 SECTION 50. Said chapter 23D of the General Laws is hereby further amended by

1169 inserting after section 15 the following section:1170

Section 15A. The trust shall be subject to section 56 of chapter 23A.

SECTION 51. Said chapter 23D is hereby further amended in section 1171 16 by striking out

1172 the words: “board of trustees of the Economic Stabilization Trust and inserting in place thereof

1173 the words: “board of directors of the Massachusetts Small Business Finance Corporation”.

1174 SECTION 52. Said chapter 23D is hereby further amended in paragraph (b) of section

1175 20 by striking out the word: ‘trustees’ and inserting in place thereof the word: ‘directors’.

1176 SECTION 53. Chapter 23F of the General Laws is hereby repealed.

1177 SECTION 54. Section 1 of chapter 23G of the General Laws, as appearing in the 2008

1178 Official Edition, is hereby amended by striking out in lines 117 to 124, inclusive, the words “;

1179 provided, however that the words ‘industrial enterprise’ shall also include an institution. For the

1180 purposes of this chapter and of said chapter 40D, as applied to the Agency, an institution shall

1181 not be deemed to constitute a commercial enterprise. The board shall not be required with

1182 respect to an institution to make the findings set forth in clauses (e) and (k) of said subsection (2)

1183 of said section 12 of said chapter 40D if the board finds that the issuance of the bonds will result

1184 in a public benefit”.

1185 SECTION 55. Said section 1 of said chapter 23G, as so appearing, is hereby further

1186 amended by striking out the definition of the word “Institution”.

1187 SECTION 56. Section 2 of said chapter 23G, as so appearing, is hereby amended by

1188 striking out, in line 12, the words “director of economic development” and inserting in place

1189 thereof the following words:secretary

of housing and economic development.

1190 SECTION 57. Subsection (b) of said section 2 of said chapter 23G, as so appearing, is

1191 hereby further amended by striking out the sixth sentence and inserting in place thereof the

following sentence:The

secretary of housing and economic development 1192 shall serve as

1193 chairperson.

1194 SECTION 58. The first paragraph of subsection (a) of section 8 of said chapter 23G, as

1195 so appearing, is hereby amended by striking out the third sentence.

1196 SECTION 59. Section 27 of said chapter 23G, as so appearing, is hereby amended by

1197 striking out the words “and (5)”, in line 58, and inserting in place thereof the following words:1198

(5) to make grants to the Massachusetts Technology Transfer Center, established by

1199 section 45 of chapter 75, to fund activities that facilitate the transfer of technology from the

1200 commonwealth’s research institutions to the commonwealth’s emerging technology industries,

1201 for productive use by such industries and to make targeted investments in proof of concept

1202 funding for emerging technologies; and (6).

1203 SECTION 60. Said section 27 of said chapter 23G, as so appearing, is hereby further by

1204 inserting after the figure “(2)”, in line 90, the following words:and

(5).

1205 SECTION 61. Section 28 of said chapter 23G, as so appearing, is hereby amended by

1206 striking out the words “business and technology”, in lines 2 and 4 and 5, each time it appears,

1207 and inserting in place thereof, in each instance, the following words:the

Massachusetts office of

1208 business development.

1209 SECTION 62. The first paragraph of subsection (a) of said section 28 of said chapter

1210 23G, as so appearing, is hereby amended by striking out the second sentence and inserting in

1211 place thereof the following sentence:The

executive director of the Massachusetts Technology

1212 Park Corporation and the executive director of the Massachusetts Technology Transfer Center

1213 shall serve as exofficio

members of the advisory committee.

SECTION 63. Chapter 23G of the General Laws 1214 is hereby amended by adding the

1215 following section:1216

Section 44. The agency shall be subject section 56 of chapter 23A.

1217 SECTION 64. Section 6 of chapter 23I of the General Laws, as appearing in the 2008

1218 Official Edition, is hereby amended by inserting after the figure “75”, in line 82, the following

1219 words:to

fund activities that facilitate the transfer of technology from the commonwealth’s

1220 research institutions to the commonwealth’s life science industries, for productive use by such

1221 industries and to make targeted investments in proof of concept funding for emerging

1222 technologies.

1223 SECTION 65. Section 12 of said chapter 23I, as so appearing, is hereby further

1224 amended by striking out the word “and”, in line 9, and inserting in place thereof the following

1225 words:the

executive director of the Massachusetts Technology Transfer Center and.

1226 SECTION 66. Chapter 23I of the General Laws is hereby amended by adding the

1227 following section:

1228 Section 18. The center shall be subject to section 56 of chapter 23A.

1229 SECTION 67. Section 2 of chapter 23J of the General Laws, as appearing in the 2008

1230 Official Edition, is hereby amended by striking out, in lines 61 and 62, the words “his designee

1231 shall serve as chairperson” and inserting in place thereof the following words:the

secretary’s

1232 designee and the secretary of housing and economic development, or the secretary’s designee

1233 shall serve as cochairs.

1234 SECTION 68. Chapter 23J of the General Laws is hereby amended by adding the

1235 following section:Section

9. The center shall be subject 1236 to section 56 of chapter 23A.

1237 SECTION 69. The General Laws are hereby amended by inserting after chapter 23J the

1238 following chapter:1239

CHAPTER 23K

1240 The Health and Educational Facilities Authority

1241 Section 1. This chapter may be referred to and cited as the “Health and Educational

1242 Facilities Authority Act.”

1243 Section 2. In this chapter, the following words shall, unless the context clearly requires

1244 otherwise, have the following meanings:

1245 ”Authority”, the Health and Educational Facilities Authority created by section 3.

1246 “Bonds” or “revenue bonds”, revenue bonds of the authority issued under this chapter,

1247 including revenue refunding bonds, notwithstanding that the same may be secured by any

1248 federally guaranteed security, whether acquired by the authority or by a participating institution,

1249 or by mortgage, the full faith and credit or by any other lawfully pledged security of 1 or more

1250 participating institutions.

1251 “Cost”, as applied to a project or any portion thereof financed under this chapter

1252 embraces all or any part of the cost of construction, acquisition, alteration, enlargement,

1253 reconstruction and remodeling of a project including all lands, structures, real or personal

1254 property, rights, rights of way, air rights, franchises, easements and interests acquired or used for

1255 or in connection with a project, the cost of demolishing or removing any buildings or structures

1256 on land so acquired, including the cost of acquiring any lands to which such buildings or

1257 structures may be moved, the cost of all machinery and equipment, financing charges, interest

1258 prior to, during and for a period after completion of such construction and acquisition,

reasonably required amounts to make the project operational, provisions 1259 for reserves for

1260 principal and interest and for extensions, enlargements, additions, replacements, renovations and

1261 improvements, the cost of architectural, engineering, financial and legal services, plans,

1262 specifications, studies, surveys, estimates of cost and of revenues, administrative expenses,

1263 expenses necessary or incident to determining the feasibility or practicability of constructing the

1264 project and such other expenses as may be necessary or incident to the construction and

1265 acquisition of the project, the financing of such construction and acquisition and the placing of

1266 the project in operation.

1267 “Cultural institution”, a nonprofit cultural or scientific institution within the

1268 commonwealth with respect to which the authority finds that the institution is a major regional

1269 resource, that it provides educational services to candidates for academic degrees for credit at

1270 other institutions or resources for research by scholars holding academic degrees or other

1271 education at an advanced level, and that it has demonstrated broad community support through

1272 giving for capital or current purposes.

1273 “Federally guaranteed security”, any security, investment or evidence of indebtedness

1274 which is either directly or indirectly, insured or guaranteed, in whole or in part, as to the

1275 repayment of principal or interest or both by the United States or any instrumentality of the

1276 United States.

1277 “Federally insured project loan”, a loan to finance or refinance the cost of a project for an

1278 institution which is either directly or indirectly, insured or guaranteed, in whole or in part, as to

1279 the repayment of the principal or interest or both by the United States or an instrumentality of the

1280 United States, or a commitment by the United States or an instrumentality of the United States to

1281 so insure or guarantee such a loan.

“Hospital”, a nonprofit hospital within the commonwealth licensed 1282 by the department of

1283 public health; or a nonprofit health maintenance organization within the commonwealth licensed

1284 by the commissioner of insurance; or an affiliated nonprofit corporation which is organized and

1285 operated for the benefit of, to perform 1 or more of the functions of, or to carry out 1 or more of

1286 the purposes of 1 or more licensed nonprofit hospitals or health maintenance organizations,

1287 including operation of a nursing home, comprehensive gerontology facility or congregate care

1288 facility; or any other nonprofit charitable institution in the commonwealth not otherwise eligible

1289 to participate under this chapter; provided, however, that such other nonprofit charitable

1290 institution may only undertake the financing and construction or acquisition of a project or

1291 undertake the refunding or refinancing of obligations or of a mortgage or of advances to the

1292 extent that such projects, obligations, mortgages, or advances consist of or result from the

1293 purchase of energy or from energy conservation or related projects of such other nonprofit

1294 charitable institution; and provided further, that such other nonprofit charitable institution

1295 participates in or is a member of a group power purchasing program organized and administered

1296 by or on behalf of the authority.

1297 “Institution”, a hospital or a nonprofit corporation organized to operate a facility or

1298 facilities that provide cultural or educational services, including but not limited to an institution

1299 for higher education, a school for the developmentally disabled, or a cultural institution.

1300 “Institution for higher education”, a public or a private, nonprofit educational institution

1301 within the commonwealth authorized by law to provide a program of education beyond the high

1302 school level, or any organization affiliated therewith; provided, that for the purposes of this

1303 definition an “organization affiliated” with such educational institution shall be any organization

1304 or association, in any form, the activities of which are a part of the activities of such educational

institution and are subject to regulation by the trustees or 1305 other governing body of such

1306 educational institution, or any research foundation, teaching hospital and associated clinics, or

1307 other research or educational organization the operation of which in conjunction with such

1308 educational institution is approved by the trustees or other governing body of such educational

1309 institution, or any other entity whose activities are approved by the trustees or other governing

1310 body of such educational institution as furthering the purposes of the educational institution, or,

1311 in the case of a public institution for higher education, the advisory committee on education

1312 policy established under section 2 of chapter 15A.

1313 “Participating cultural institution”, a cultural institution which, under this chapter,

1314 undertakes the financing and construction or acquisition of a project or undertakes the refunding

1315 of refinancing of obligations or of a mortgage or of advances as provided in this chapter.

1316 “Participating hospital”, a hospital which, under this chapter, undertakes the financing

1317 and construction or acquisition of a project or undertakes the refunding or refinancing of

1318 obligations or of a mortgage or of advances as provided in this chapter.

1319 “Participating institution”, a participating hospital or other participating nonprofit

1320 corporation organized to operate a facility or facilities that provide cultural or educational

1321 services, including but not limited to a participating institution for higher education, a

1322 participating school for the developmentally disabled, or a participating cultural institution.

1323 “Participating institution for higher education”, an institution for higher education which,

1324 under this chapter, undertakes the financing and construction or acquisition of a project or

1325 undertakes the refunding or refinancing of obligations or of a mortgage or of advances as

1326 provided in this chapter.

“Participating school for the developmentally disabled”, a school 1327 for the developmentally

1328 disabled which, under this chapter, undertakes the financing and construction or acquisition of a

1329 project or undertakes the refunding or refinancing of obligations.

1330 “Project”, in the case of a participating institution for higher education, participating

1331 institution for the developmentally disabled or other participating institution that offers

1332 residences to students, a structure or structures suitable for use as a dormitory or other multiunit

1333 housing facility for students, faculty, officers or employees, a dining hall, student union,

1334 administration building, academic building, library, laboratory, research facility, classroom,

1335 athletic facility, health care facility, maintenance facility, storage or utility facility and other

1336 structures or facilities related to any of those structures or required or useful for the instruction of

1337 students or the conducting of research or the operation of an institution for higher education or

1338 participating institution for the handicapped or other participating institution, including parking

1339 and other facilities or structures essential or convenient for the orderly conduct of such institution

1340 for higher education or participating institution for the developmentally disabled or other

1341 participating institution; provided, however, that “project” shall also include landscaping, site

1342 preparation, furniture, equipment and machinery and other similar items necessary or convenient

1343 for the operation of a particular facility or structure in the manner for which its use is intended as

1344 well as any furnishings, equipment, machinery and other similar items necessary or convenient

1345 for the operation of an institution of higher education or participating institution for the

1346 handicapped or other participating institution, whether or not such items are related to a

1347 particular facility or structure financed under this chapter; provided, however, that “project” shall

1348 not include such items as books, fuel, supplies or other items the cost of which are customarily

1349 deemed to result in a current operating charge, and shall not include any facility used or to be

used for sectarian instruction or as a place of religious worship nor any 1350 facility which is used or

1351 to be used primarily in connection with any part of the program of a school or department of

1352 divinity for any religious denomination; provided, further, that “project” shall include, in the case

1353 of a participating hospital, a structure or structures suitable for use as a hospital, clinic,

1354 comprehensive gerontology facility, nursing home, or other health care facility, laboratory,

1355 laundry, nurses or interns residence or other multiunit

housing facility for staff, employees,

1356 patients or relatives of patients admitted for treatment in such hospital, or for the aged, doctors

1357 office building, administration building, research facility, maintenance, storage or utility facility

1358 and other structures or facilities related to any of the foregoing or required or useful for the

1359 operation of a hospital, including parking and other facilities or structures essential or convenient

1360 for the orderly conduct of such hospital, and shall also include landscaping, site preparation,

1361 furniture, equipment and machinery and other similar items necessary or convenient for the

1362 operation of a particular facility or structure in the manner for which its use is intended and shall

1363 further include any furnishings, equipment, machinery and other similar items necessary or

1364 convenient for the operation of a hospital, whether or not such items are related to a particular

1365 facility or structure financed under this chapter, and may also include the issuance of tax exempt

1366 debt instruments for working capital and for the providing of such items as fuel, supplies or other

1367 items the cost of which are customarily deemed to result in a current operating charge; and in the

1368 case of a particular cultural institution, a structure or structures suitable for its purposes, whether

1369 or not to be used to provide educational services, or research resources; provided, further, that

1370 “project” shall also include supporting facilities, landscaping, site preparation, furniture,

1371 equipment, machinery and other related items and shall further include any furnishings,

1372 equipment, machinery and other similar items necessary or convenient for the operation of a

cultural institution, whether or not such items are related to a particular 1373 facility or structure

1374 financed under this chapter, but shall not include books, works of art, or other items for display

1375 or exhibition, or items the cost of which are customarily deemed to result in a current operating

1376 charge; provided, further, that “project” may include any combination of 1 or more of the

1377 foregoing undertaken jointly by 1 or more participating institutions with each other or with other

1378 parties; and, notwithstanding anything in this definition to the contrary, “project” may also

1379 include any capital or operating expenditure which may legally be made by any participating

1380 institution and the thing produced or acquired by such expenditure.

1381 “School for the developmentally disabled”, a nonprofit primary, secondary or post1382

secondary school within the commonwealth which: (i) serves students, at least 70 per cent of

1383 whom are developmentally disabled, as determined by 1 or more appropriate educational,

1384 rehabilitation, medical or mental health authorities; (ii) is accredited by a recognized accrediting

1385 body; and (iii) is determined by the authority to be a major resource of benefit to the

1386 developmentally disabled.

1387 Section 3. (a) There is hereby created a body politic and corporate to be known as the

1388 “Health and Educational Facilities Authority”. The authority is constituted a public

1389 instrumentality and the exercise by the authority of the powers conferred by this chapter shall be

1390 deemed and held to be the performance of an essential public function. The authority shall

1391 consist of 9 members, to be appointed by the governor, who shall be residents of the

1392 commonwealth, 1 of whom shall be the secretary of housing and economic development and not

1393 more than 5 of whom shall be members of the same political party. At least 2 of the members

1394 shall be trustees, directors, officers or employees of institutions for higher education, at least 2

1395 shall be trustees, directors, officers or employees of hospitals, at least 1 shall be a person having

a favorable reputation for skill, knowledge and experience in the field 1396 of state and municipal

1397 finance, either as a partner, officer or employee of an investment banking firm which originates

1398 and purchases state and municipal securities, or as an officer or employee of an insurance

1399 company or bank whose duties relate to the purchase of state and municipal securities as an

1400 investment and to the management and control of a state and municipal securities portfolio, and

1401 at least 1 shall be a person having a favorable reputation for skill, knowledge and experience in

1402 the building construction field. Upon the expiration of the term of any member, a successor shall

1403 be appointed for a term of 7 years. The governor shall fill any vacancy for the remainder of the

1404 unexpired term. Any member of the authority may be removed by the governor for misfeasance,

1405 malfeasance or willful neglect of duty or other cause after notice and a public hearing unless

1406 such notice and hearing shall be expressly waived in writing.

1407 (b) The secretary of the executive office of housing and economic development shall

1408 serve as the chairman of the authority. The authority shall annually elect 1 of its members as

1409 vice chairman. It may appoint an executive director and assistant executive director, who shall

1410 not be members of the authority, who shall serve at the pleasure of the authority. They shall

1411 receive such compensation as shall be fixed by the authority.

1412 (c) The executive director or assistant executive director or other person designated by

1413 resolution of the authority shall keep a record of the proceedings of the authority and shall be

1414 custodian of all books, documents and papers filed with the authority, the minute book or journal

1415 of the authority, and its official seal. The executive director or assistant executive director or

1416 other person may cause copies to be made of all minutes and other records and documents of the

1417 authority and may give certificates under the official seal of the authority to the effect that such

1418 copies are true copies, and all persons dealing with the authority may rely upon such certificates.

(d) Five members of the authority shall constitute a quorum. The 1419 affirmative vote of a

1420 majority of all the members of the authority shall be necessary for any action taken by the

1421 authority. A vacancy in the membership of the authority shall not impair the right of a quorum to

1422 exercise all the rights and perform all the duties of the authority. An action taken by the authority

1423 under this chapter may be authorized by resolution at a regular or special meeting, and each such

1424 resolution shall take effect immediately and need not be published or posted.

1425 (e) Before the authority issues revenue bonds under this chapter, the chairman, vice

1426 chairman, executive director and assistant executive director and any other member of the

1427 authority authorized by resolution of the authority to handle funds or sign checks of the authority

1428 shall execute a surety bond in the penal sum of $50,000, or in lieu thereof the chairman shall

1429 obtain a blanket position bond covering the executive director and every member and other

1430 employee of the authority in the penal sum of $50,000. Each such bond shall be conditioned

1431 upon the faithful performance of the duties of the principal or the members, executive director

1432 and other employees, as the case may be, shall be executed, by a surety company authorized to

1433 transact business in the commonwealth as surety, shall be approved by the attorney general and

1434 shall be filed in the office of the state secretary. The cost of each such bond shall be paid by the

1435 authority.

1436 (f) The members of the authority shall receive no compensation for the performance of

1437 their duties under this chapter but each member shall be paid the member’s necessary expenses

1438 incurred while engaged in the performance of the member’s duties.

1439 (g) A member, officer, agent or employee of the authority who, directly or indirectly, has

1440 a financial interest in a property to be included in, or a contract for property or materials to be

furnished or used in connection with, a project of the authority, shall 1441 be punished by a fine of not

1442 less than $50 nor more than $1,000, or by imprisonment for not more than 1 month, or both.

1443 (h) Members of the authority shall be considered state employees for the purposes of

1444 chapters 268A and 268B; provided, however, that notwithstanding subsection (g) or any other

1445 law to the contrary, it shall not be or constitute a conflict of interest or violation of paragraph (g)

1446 or any other law for a trustee, director, officer or employee of a participating institution or for a

1447 person having the required favorable reputation for skill, knowledge and experience in state and

1448 municipal finance or for a person having the required favorable reputation for skill, knowledge

1449 and experience in the building construction field to serve as a member of the authority; provided,

1450 further, that;

1451 (1) in each case to which this subsection is applicable, such trustee, director, officer or

1452 employee of such participating institution abstains from discussion, deliberation, action and vote

1453 by the authority in specific respect to an undertaking under this chapter in which such

1454 participating institution has an interest;

1455 (2) such person having the required favorable reputation for skill, knowledge and

1456 experience in state and municipal finance abstains from discussion, deliberation, action and vote

1457 by the authority in specific respect to any sale, purchase or ownership of bonds of the authority

1458 in which the investment banking firm or insurance company or bank of which such person is a

1459 partner, officer or employee has a past, current or future interest; or

1460 (3) such person having the required favorable reputation for skill, knowledge and

1461 experience in the building construction field abstains from discussion, deliberation, action and

1462 vote by the authority in specific respect to construction or acquisition of a project of the authority

1463 in which a partnership, firm, joint venture, sole proprietorship or corporation of which such

person is an owner, venturer, participant, partner, officer or employee who 1464 has a past, current or

1465 future interest.

1466 Section 4. The purpose of the authority shall be to assist institutions in the acquisition,

1467 construction, financing and refinancing of projects. For that purpose the authority may:

1468 (a) adopt bylaws

for the regulation of its affairs and the conduct of its business;

1469 (b) adopt an official seal and alter the same at its pleasure;

1470 (c) maintain an office at such place or places as it may designate;

1471 (d) sue and be sued in its own name, plead and be impleaded;

1472 (e) determine the location and character of a project to be financed under this chapter, and

1473 construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease, as

1474 lessee or lessor, and regulate the same, enter into contracts for any or all of such purposes, enter

1475 into contracts for the management and operation of a project, and designate a participating

1476 institution as its agent to determine the location and character of a project undertaken by such

1477 participating institution under this chapter and, as the agent of the authority, construct,

1478 reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease, as lessee or

1479 lessor, and regulate the same, and, as the agent of the authority, enter into contracts for any or all

1480 of such purposes, including contracts for the management and operation of such project;

1481 (f) issue bonds, bond anticipation notes and other obligations of the authority for any of

1482 its corporate purposes, and fund or refund bonds, bond anticipation notes and other obligations as

1483 provided in this chapter;

1484 (g) generally, fix and revise and charge and collect rates, rents, fees and charges for the

1485 use of and for the services furnished or to be furnished by a project or any portion of a project

1486 and contract with any person, partnership, association or corporation or other body public or

private in respect thereof and designate a participating institution as its 1487 agent to fix, revise,

1488 charge and collect such rates, rents, fees and charges and make such contracts;

1489 (h) establish rules and regulations for the use of a project or any portion of a project and

1490 designate a participating institution as its agent to establish rules and regulations for the use of a

1491 project in which such participating institution is participating;

1492 (i) require, at the expense directly or indirectly of an institution intending to participate in

1493 a project, a report on the financial feasibility of such project to be financed; provided, however,

1494 that the report of an independent accountant or accounting firm or financial expert employed or

1495 selected by such institution with the approval of the authority shall be deemed to satisfy the

1496 requirement of such report, if such independent accountant, accounting firm or financial expert

1497 has demonstrated capability of preparing such financial feasibility reports; and provided, further,

1498 that the authority shall not unreasonably or arbitrarily withhold such approval and may

1499 promulgate regulations stipulating the form and content of such report;

1500 (j) employ and fix the compensation of consulting engineers, architects, attorneys,

1501 accountants, construction and financial experts, superintendents, managers, and other employees

1502 and agents as may be necessary in its judgment;

1503 (k) receive and accept from any public agency loans or grants for, or in aid of, the construction of

1504 a project or any portion of a project, and to receive and accept loans, grants, aid or contributions

1505 from any source of either money, property, labor or other things of value to be held, used and

1506 applied only for the purposes for which such loans, grants, aid and contributions are made;

1507 (l) mortgage a project and the site of the project for the benefit of the holders of revenue

1508 bonds issued to finance that project; provided, however, that the authority shall not mortgage any

project undertaken on behalf of a public institution for higher education or the s 1509 ite of that project,

1510 and shall not convey that project or site except under section 7;

1511 (m) make loans to a participating institution for the cost of a project under an agreement

1512 between the authority and 1 or more participating institutions; provided, however, that no such

1513 loan shall exceed the total cost of the project as determined by the participating institution and

1514 approved by the authority;

1515 (n) make loans to participating institutions to refund outstanding obligations, mortgages

1516 or advances issued, made or given by the institutions for the cost of a project;

1517 (o) charge to and equitably apportion among participating institutions its administrative

1518 costs and expenses incurred in the exercise of the powers and duties conferred by this chapter;

1519 provided that the authority shall seek to contract with another public authority for the

1520 performance of core administrative functions by that authority, including but not limited to,

1521 human resources, financial management, information technology, legal, procurement and asset

1522 management, to minimize the administrative costs and expenses apportioned to participating

1523 institutions under this clause; provided, further, that the authority shall publish and disseminate

1524 through its website each fiscal year a schedule of fees or a methodology for determining fees to

1525 be charged under this clause, which shall result in similar charges for similarlysituated

projects,

1526 regardless of the size of the participating institution;

1527 (p) acquire and enter into commitments to acquire a federally guaranteed security and

1528 pledge or otherwise use the federally guaranteed security in such manner as the authority shall

1529 approve to secure or otherwise provide a source of repayment on any of its bonds or to enter into

1530 an appropriate agreement with 1 or more participating institutions whereby the authority may

1531 make a loan to any such institution for the purpose of enabling such institution to fund or refund,

directly or indirectly, the cost of acquiring or entering into commitments 1532 to acquire a federally

1533 guaranteed security; provided, however, that the federally guaranteed security is evidence of a

1534 federally insured project loan or, if not such evidence, that the authority determines that the

1535 federally guaranteed security has been issued to pass through a federally insured project loan;

1536 (q) issue electric rate reduction bonds, as defined in section 1H of chapter 164, for the

1537 benefit of any electric company, as defined in section 1 of said chapter 164, that is determined to

1538 be eligible for said bond financing by the department of energy resources under said chapter 164;

1539 provided, however, that such electric rate reduction bonds shall constitute bonds as defined in

1540 section 2; provided, further, that such an electric company shall be deemed to be a participating

1541 institution as defined in section 2; and provided further, that the financing or refinancing of

1542 transition costs or the acquiring of transition property as provided for in section 1H of said

1543 chapter 164 shall be deemed to be a project as defined in section 2; and

1544 (r) do all things necessary or convenient to carry out the purpose of this chapter.

1545 In carrying out the purposes of this chapter, the authority may undertake joint projects for 2 or

1546 more participating institutions for higher education or 2 or more participating hospitals, or for

1547 any combination of participating institutions for higher education and participating hospitals,

1548 and, thereupon, all other provisions of this chapter shall apply to and for the benefit of the

1549 authority and the participants in such joint projects.

1550 The authority shall not undertake a project on behalf of a public institution for higher

1551 education except upon written request made by the advisory committee on education policy

1552 established under section 2 of chapter 15A.

1553 Section 5. All expenses incurred in carrying out this chapter shall be payable solely from

1554 funds provided under the authority of this chapter and no liability or obligation shall be incurred

by the authority under this chapter beyond the extent to which moneys 1555 shall have been provided

1556 under this chapter.

1557 Section 6. The authority may, directly or by and through a participating institution, as its

1558 agent, acquire by purchase solely from funds provided under the authority of this chapter, or by

1559 gift or devise, and take title to such lands, structures, property, real or personal, rights, rightsof1560

way, air rights, franchises, easements and other interests in lands, including lands lying under

1561 water and riparian rights, which are located within the commonwealth as the authority may deem

1562 necessary or convenient for the acquisition, construction or operation of a project, upon such

1563 terms and at such prices as may be considered by the authority to be reasonable and can be

1564 agreed upon between the authority and the owner in the name of the authority or in the name of 1

1565 or more participating institutions as its agent.

1566 Section 7. When the principal of and interest on revenue bonds of the authority issued to

1567 finance the cost of a particular project for 1 or more participating institutions, including revenue

1568 refunding bonds issued to refund and refinance the revenue bonds, have been fully paid and

1569 retired or when adequate provision has been made to fully pay and retire the revenue bonds, and

1570 all other conditions of the resolution or trust agreement authorizing and securing the revenue

1571 bonds have been satisfied and the lien of the resolution or trust agreement has been released in

1572 accordance with the resolution or trust agreement, the authority shall promptly do such things

1573 and execute such deeds and conveyances as are necessary and required to convey title to the

1574 project to the participating institutions, all to the extent that title to the project is not, at the time,

1575 vested in the participating institutions.

1576 Section 8. The authority may issue negotiable notes for a corporate purpose and may

1577 renew notes by issuing new notes, whether the notes to be renewed have or have not matured.

The authority may issue notes partly to renew notes or to 1578 discharge other obligations then

1579 outstanding and partly for any other purpose. The notes may be authorized, sold, executed and

1580 delivered in the same manner as bonds. A resolution authorizing notes of the authority or an

1581 issue of notes by the authority may contain provisions which the authority is authorized to

1582 include in a resolution authorizing revenue bonds of the authority or an issue of bonds by the

1583 authority, and the authority may include in a note any terms, convenants or conditions which it is

1584 authorized to include in any bonds. A resolution may delegate to the executive director, assistant

1585 executive director, or any member of the authority or any combination of them, the power to

1586 determine any of the details of the notes and to award the notes to a purchaser. All the notes

1587 shall be payable solely from the revenues of the authority, subject only to any contractual rights

1588 of the holders of any of its notes or other obligations then outstanding.

1589 Section 9. (a) The authority may issue revenue bonds for any corporate purpose and all

1590 the revenue bonds, notes, bond anticipation notes or other obligations of the authority issued

1591 under this chapter shall be negotiable for all purposes notwithstanding their payment from a

1592 limited source and notwithstanding any general or special law to the contrary. In anticipation of

1593 the sale of revenue bonds the authority may issue negotiable bond anticipation notes and may

1594 renew the notes from time to time, but the maximum maturity of a bond anticipation note,

1595 including renewals of that note, shall not exceed 5 years from the date of issue of the original

1596 note. Bond anticipation notes shall be paid from revenues of the authority available for that

1597 purpose and not otherwise pledged, or from the proceeds of sale of the revenue bonds of the

1598 authority in anticipation of which they were issued. The notes shall be issued in the same manner

1599 as the revenue bonds. The notes and the resolution authorizing those notes may contain any

1600 provisions, conditions or limitations which a bond resolution of the authority may contain.

(b) The revenue bonds and notes of every issue shall be payable 1601 solely out of revenues to

1602 the authority, subject only to any agreements with the holders of particular revenue bonds or

1603 notes pledging any particular revenues and subject to any agreements with any participating

1604 institution. Notwithstanding that revenue bonds and notes may be payable from a special fund,

1605 they shall be and be deemed to be, for all purposes, negotiable instruments, subject only to the

1606 provisions of the revenue bonds and notes for registration.

1607 (c) The revenue bonds may be issued as serial bonds or as term bonds, or the authority, in

1608 its discretion, may issue bonds of both types. The revenue bonds shall be authorized by

1609 resolution of the members of the authority and shall bear such date or dates, mature at such time

1610 or times, not exceeding 50 years from their respective dates, bear interest at such rate or rates,

1611 payable at such time or times, be in such denominations, be in such form, either coupon or

1612 registered, carry such registration privileges, be executed in such manner, be payable in lawful

1613 money of the United States of America at such place or places, and be subject to such terms of

1614 redemption, as such resolution or resolutions may provide. Such resolution or resolutions may

1615 delegate to the executive director, assistant executive director or any member of the authority or

1616 any combination of them, the power to determine any of the matters set forth in this section and

1617 the power to award the bonds to a purchaser or purchasers at public sale or to negotiate a sale to

1618 a purchaser or purchasers provided in the latter case that the bonds are to be reoffered to the

1619 public. The revenue bonds or notes may be sold at public or private sale for such price or prices

1620 as the authority shall determine. Pending preparation of the definitive bonds, the authority may

1621 issue interim receipts or certificates which shall be exchanged for such definitive bonds.

(d) A resolution authorizing a revenue bond or an issue of revenue b 1622 onds may contain

1623 provisions, which shall be a part of the contract with the holders of the revenue bonds to be

1624 authorized, as to:

1625 (1) pledging all or any part of the revenues of a project, a revenue producing

1626 contract made by the authority with an individual, partnership, corporation or association

1627 or other body, public or private, or a federally guaranteed security and moneys received

1628 therefrom whether the security is acquired by the authority or a participating institution to

1629 secure the payment of the revenue bonds or of any particular issue of revenue bonds,

1630 subject to such agreements with bondholders as may then exist; (2) the rentals, fees and

1631 other charges to be charged, and the amounts to be raised in each year by those rentals,

1632 fees and charges, and the use and disposition of the revenues; (3) the establishment and

1633 setting aside of reserves or sinking funds, and the regulation and disposition of those

1634 reserves or sinking funds; (4) limitations on the right of the authority or its agent to

1635 restrict and regulate the use of the project; (5) limitations on the purpose to which the

1636 proceeds of sale of any issue of revenue bonds then or thereafter to be issued may be

1637 applied, including as authorized purposes, all costs and expenses necessary or incidental

1638 to the issuance of bonds, to the acquisition of or commitment to acquire a federally

1639 guaranteed security and to the issuance and obtaining of a federally insured mortgage

1640 note and pledging such proceeds to secure the payment of the revenue bonds or an issue

1641 of the revenue bonds; (6) limitations on the issuance of additional bonds, the terms upon

1642 which additional bonds may be issued and secured and the refunding of outstanding

1643 bonds; (7) the procedure, if any, by which the terms of a contract with bondholders may

1644 be amended or abrogated, the amount of bonds the holders of which must consent thereto,

and the manner in which such consent may be given; (8) limitations 1645 on the amount of

1646 moneys derived from the project to be expended for operating, administrative or other

1647 expenses of the authority; (9) defining the acts or omissions to act which shall constitute

1648 a default in the duties of the authority to holders of its obligations and providing the

1649 rights and remedies of such holders in the event of a default; (10) the duties, obligations

1650 and liabilities of any trustee or paying agent; and (11) the mortgaging of a project and the

1651 site of the project for the purpose of securing the bondholders.

1652 (e) Neither the members of the authority nor a person executing the revenue bonds or

1653 notes shall be liable personally on the revenue bonds or notes or be subject to any personal

1654 liability or accountability due to the issuance of the bonds or notes.

1655 (f) The authority shall have power out of any funds available for the authority to

1656 purchase its bonds or notes. The authority may hold, pledge, cancel or resell those bonds or

1657 notes, subject to and in accordance with agreements with bondholders.

1658 Section 10. In the discretion of the authority a revenue bond issued under this chapter

1659 may be secured by a trust agreement by and between the authority and a corporate trustee, which

1660 may be a trust company or bank having the powers of a trust company under section 1A of

1661 chapter 172 or a savings bank under section 2 of chapter 167F within the commonwealth. The

1662 trust agreement or the resolution allowing the authority to issue those revenue bonds may pledge

1663 or assign the revenues to be received or proceeds of a contract pledged and may convey or

1664 mortgage the project or a portion of the project. A trust agreement or resolution allowing the

1665 authority to issue the revenue bonds may contain provisions for protecting and enforcing the

1666 rights and remedies of the bondholders as may be reasonable and proper and not in violation of

1667 law, including particularly provisions that are specifically authorized by this chapter to be

included in a resolution of the authority authorizing revenue bonds of the aut 1668 hority. A bank, trust

1669 company or savings bank incorporated under the laws of the commonwealth which may act as

1670 depository of the proceeds of bonds or of revenues or other moneys may furnish the

1671 indemnifying bonds or pledge the securities as may be required by the authority. A trust

1672 agreement may set forth the rights and remedies of the bondholders and of the trustee, and may

1673 restrict the individual right of action by bondholders. A trust agreement or resolution may also

1674 contain other provisions as the authority may deem reasonable and proper for the security of the

1675 bondholders. All expenses incurred in carrying out the trust agreement or resolution may be

1676 treated as a part of the cost of the operation of a project.

1677 Section 11. Revenue bonds issued under this chapter shall not be deemed to constitute a

1678 debt or liability of the commonwealth or of any political subdivision of the commonwealth or a

1679 pledge of the faith and credit of the commonwealth or of any political subdivision of the

1680 commonwealth, but shall be payable solely from the funds provided for payment of those funds

1681 from revenues. A revenue bond shall contain on its face a statement to the effect that neither the

1682 commonwealth nor the authority shall be obligated to pay the revenue bond or the interest on the

1683 revenue bond except from revenues of the project or the portion of the project for which they are

1684 issued and that neither the faith and credit nor the taxing power of the commonwealth or of a

1685 political subdivision of the commonwealth is pledged to the payment of the principal of or the

1686 interest on the bond. The issuance of revenue bonds under this chapter shall not directly or

1687 indirectly or contingently obligate the commonwealth or a political subdivision of the

1688 commonwealth to levy or to pledge any form of taxation or to make an appropriation for their

1689 payment.

Section 12. (a) The authority may fix, revise, charge and collect 1690 rates, rents, fees and

1691 charges for the use of and for the services furnished or to be furnished by each project and the

1692 authority may contract with any person, partnership, association or corporation, or other body,

1693 public or private, for those purposes.

1694 (b) The rates, rents, fees and charges shall be fixed and adjusted in respect of the

1695 aggregate of rates, rents, fees and charges from a project so as to provide funds sufficient with

1696 other revenues, if any: (1) to pay the cost of maintaining, repairing and operating the project and

1697 each and every portion thereof, to the extent that the payment of a cost has not otherwise been

1698 adequately provided for; (2) to pay the principal of and the interest on outstanding revenue bonds

1699 of the authority issued in respect of that project as the same shall become due and payable; and

1700 (3) to create and maintain reserves required or provided for in any resolution authorizing, or trust

1701 agreement securing, those revenue bonds of the authority.

1702 (c) The rates, rents, fees and charges shall not be subject to supervision or regulation by

1703 any department, commission, board, body, bureau or agency of this commonwealth other than

1704 the authority, except as provided in section 13.

1705 (d) A sufficient amount of the revenues derived in respect of a project, except the part of

1706 those revenues as may be necessary to pay the cost of maintenance, repair and operation and to

1707 provide reserves and for renewals, replacements, extensions, enlargements and improvements as

1708 may be provided for in the resolution authorizing the authority to issue revenue bonds of the

1709 authority or in the trust agreement securing the revenue bonds, shall be set aside at such regular

1710 intervals as may be provided in the resolution or trust agreement in a sinking or other similar

1711 fund which is hereby pledged to, and charged with, the payment of the principal of and the

1712 interest on the revenue bonds as the payment of the principal of and interest on the revenue

bonds shall become due, and the redemption price or the purchase price 1713 of bonds retired by call

1714 or purchase as provided in the resolution or trust agreement. A pledge shall be valid and binding

1715 from the time when the pledge is made; the rates, rents, fees and charges and other revenues or

1716 other moneys so pledged and thereafter received by the authority shall immediately be subject to

1717 the lien of the pledge without any physical delivery of the lien or further act, and the lien of any

1718 such pledge shall be valid and binding as against all parties having claims of any kind in tort,

1719 contract or otherwise against the authority, irrespective of whether such parties have notice of the

1720 lien.

1721 (f) Neither the resolution nor a trust agreement by which a pledge is created need be filed

1722 or recorded except in the records of the authority. The use and disposition of moneys to the credit

1723 of such sinking or other similar fund shall be subject to the resolution authorizing the authority to

1724 issue the bonds or of the trust agreement.

1725 (g) Except as may otherwise be provided in a resolution or a trust agreement, a sinking

1726 or other similar fund shall be a fund for all the revenue bonds issued to finance a project at 1 or

1727 more participating institutions, without distinction or priority of one over another; provided,

1728 however, that the authority in a resolution or trust agreement may provide that the sinking or

1729 other similar fund shall be the fund for a particular project at an institution and for the revenue

1730 bonds issued to finance a particular project and may, additionally, permit and provide for the

1731 authority to issue revenue bonds having a subordinate lien in respect of the security authorized in

1732 this section to other revenue bonds of the authority and, in such case, the authority may create

1733 separate or other similar funds in respect of the subordinate lien bonds.

1734 Section 13. In the case of a project for a public institution for higher education, an

1735 establishment or revision of rules and regulations for the use of that institution and the fixing or

revising of rates, rents, fees or other charges by the authority shall 1736 require the approval of the

1737 trustees. The trustees shall exercise their powers so that the aggregate of the rates, rents, fees and

1738 charges from the project with other revenues, if any, shall be sufficient: (1) to pay the cost of

1739 maintaining, repairing and operating the project and each and every portion of the project, to the

1740 extent that the payment of the cost has not otherwise been adequately provided for; (2) to pay the

1741 principal of and the interest on outstanding revenue bonds of the authority issued in respect of

1742 such project as the principal of and the interest on those bonds shall become due and payable;

1743 and (3) to create and maintain reserves required or provided for in any resolution authorizing, or

1744 trust agreement securing, such revenue bonds of the authority. Upon a failure of the trustees to

1745 exercise those powers, the authority may establish or revise such rules and regulations and fix or

1746 revise such rates, rents, fees or other charges without the approval of the trustees; provided,

1747 however, that in that case the trustees may propose alternative rules and regulations or scale of

1748 rates, rents, fees or other charges which shall then be adopted by the authority if they will

1749 produce sufficient aggregate revenues to meet the requirements. The rates, rents, fees or other

1750 charges shall not, except as expressly provided in this section with respect to the trustee, be

1751 subject to supervision or regulation of a department, division, commission, board, bureau or

1752 agency of the commonwealth or a political subdivision of the commonwealth.

1753 For the purpose of this section, the term “trustees” shall mean: (1) the advisory committee

1754 on education policy established in section 2 of chapter 15A, in the case of any state college, as

1755 listed in section 19 of chapter 73, or in the case of any community college, as defined in section

1756 10 of chapter 15A; or (2) the trustees of the public institution of higher education, or said

1757 advisory committee on education policy if authorized by the trustees, in the case of a public

1758 university.

Section 14. Money received under the authority of this chapter, 1759 whether as proceeds from

1760 the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely

1761 as provided in this chapter. An officer with whom, or a bank or trust company with which, such

1762 money shall be deposited shall act as trustee of that money and shall hold and apply that money

1763 for the purposes provided in this chapter, subject to such regulations as this chapter and the

1764 resolution authorizing the bonds of an issue or the trust agreement securing those bonds may

1765 provide.

1766 Section 15. Any holder of revenue bonds, notes, bond anticipation notes, other notes or

1767 other obligations of the authority issued under this chapter or any of the coupons appertaining

1768 thereto, and the trustee or trustees under any trust agreement, except to the extent the rights

1769 herein given may be restricted by any resolution authorizing the issuance of, or any such trust

1770 agreement securing, such bonds or other obligations, may, either at law or in equity, by suit,

1771 action, mandamus or other proceedings, protect and enforce any and all rights under the laws of

1772 the commonwealth or granted hereunder or under such resolution or trust agreement, and may

1773 enforce and compel the performance of all duties required by this chapter or by such resolution

1774 or trust agreement to be performed by the authority or any officer, employee or agent thereof,

1775 including the fixing, charging and collecting of the rates, rents, fees and charges herein

1776 authorized and required by the provisions of such resolution or trust agreement to be fixed,

1777 established and collected.

1778 Section 16. The exercise of the powers granted by this chapter shall be for the benefit of

1779 the people of this commonwealth, for the increase of their commerce, welfare and prosperity,

1780 and for the improvement of their health and living conditions. The operation and maintenance of

1781 a project by the authority or its agent shall constitute the performance of an essential public

function. Neither the authority nor its agent shall be required to pay 1782 a tax or assessment: (a)

1783 upon or in respect of a project or a property acquired or used by the authority or its agent under

1784 this chapter; or (b) upon the income from a project or a property acquired or used by the

1785 authority or its agent. The income from a bond issued or transferred under this chapter, including

1786 any profit made on the sale of the bond, shall at all times be free from taxation of every kind by

1787 the commonwealth and by the municipalities and other political subdivisions in the

1788 commonwealth.

1789 Section 17. (a) The authority may issue revenue bonds for the purpose of refunding

1790 outstanding revenue bonds of the authority, including the payment of a redemption premium on

1791 the bonds and any interest accrued or to accrue to the earliest or any subsequent date of

1792 redemption, purchase or maturity of the revenue bonds, and, if deemed advisable by the

1793 authority, for the additional purpose of paying all or any part of the cost of constructing and

1794 acquiring additions, improvements, extensions or enlargements of a project or any portion of a

1795 project.

1796 (b) The proceeds of revenue bonds issued to refund outstanding revenue bonds may, in

1797 the discretion of the authority, be applied to the purchase or retirement at maturity or redemption

1798 of such outstanding revenue bonds either on their earliest or any subsequent redemption date or

1799 upon the purchase or at the maturity of the bonds and may, pending such application, be placed

1800 in escrow to be applied to the purchase or retirement at maturity or redemption on a date as may

1801 be determined by the authority.

1802 (c) Escrowed proceeds, pending such use, may be invested and reinvested in direct

1803 obligations of the United States, or in certificates of deposit or time deposits secured by direct

1804 obligations of the United States, maturing at a time as shall be appropriate to assure the prompt

payment, as to principal, interest and redemption premium, if any, of 1805 the outstanding revenue

1806 bonds to be so refunded. The interest, income and profits, if any, earned or realized on such an

1807 investment may also be applied to the payment of the outstanding revenue bonds to be so

1808 refunded. After the terms of the escrow have been fully satisfied and carried out, a balance of

1809 such proceeds and interest, income and profits, if any, earned or realized on the investments may

1810 be returned to the authority for use by it in any lawful manner.

1811 (d) The portion of the proceeds of a revenue bond issued for the additional purpose of

1812 paying all or any part of the cost of constructing and acquiring additions, improvements,

1813 extensions or enlargements of a project may be invested and reinvested in direct obligations of

1814 the United States, or in certificates of deposit or time deposits secured by direct obligations of

1815 the United States, maturing not later than the time when such proceeds will be needed to pay all

1816 or any part of such cost. The interest, income and profits, if any, earned or realized on such an

1817 investment may be applied to the payment of all or any part of such cost or may be used by the

1818 authority in any lawful manner.

1819 (e) All such revenue bonds shall be subject to this chapter in the same manner and to the

1820 same extent as other revenue bonds issued under this chapter.

1821 Section 18. Bonds issued by the authority under this chapter are hereby made securities in

1822 which all public officers and public bodies of the commonwealth and its political subdivisions,

1823 all insurance companies, trust companies, savings banks, cooperative

banks, banking

1824 associations, investment companies, executors, administrators, trustees and other fiduciaries may

1825 properly and legally invest funds, including capital in their control or belonging to them. Such

1826 bonds are hereby made securities which may properly and legally be deposited with and received

1827 by any commonwealth or municipal officer or any agency or political subdivision of the

commonwealth for any purpose for which the deposit of bonds 1828 or obligations of the

1829 commonwealth is now or may hereafter be authorized by law.

1830 Section 19. The authority shall be subject to section 56 of chapter 23A.

1831 Section 20. (a) The authority may take such action as it deems appropriate to enable its

1832 employees to come within the provisions and obtain the benefits of the federal social security act.

1833 If the employees of the authority shall come within the provisions of said social security act,

1834 their employment shall be included in the term “employment” as used in sections 1 to 7,

1835 inclusive, of chapter 151A.

1836 (b) Sections 26 to 29, inclusive, and sections 44A to 44M, inclusive, of chapter 149 and

1837 sections 39F to 39S, inclusive, of chapter 30 shall apply to the authority to the same extent and in

1838 the same manner as they are applicable to the commonwealth.

1839 (c) Notwithstanding chapter 106 or any other general or special law, the authority by the

1840 filing of financing statements, as provided in chapter 106, may perfect security interests in

1841 revenues and receipts of participating institutions, whether in the form of proceeds of accounts

1842 receivable or contract rights or otherwise, and in any rights to receive those revenues and

1843 receipts, and those perfected security interests shall take priority over any subsequently perfected

1844 security interests in those revenues, receipts or rights or in the accounts receivable, goods,

1845 contract rights, or other rights or personal property giving rise to the revenues, receipts or rights

1846 provided that the financing statements filed by the authority contain a reference to this section.

1847 (d) Real or personal property which forms or has formed any part of the cost of a project

1848 financed or refinanced in whole or in part by the authority shall be excluded from a calculation

1849 of real and personal property for any general or special law limiting the amount of real and

1850 personal property which may be owned or held by an institution.

Section 21. Sections 1 to 20, inclusive, of this chapter 1851 shall be deemed to provide a

1852 complete, additional and alternative method for the doing of the things authorized thereby and

1853 shall be regarded as supplemental and additional to powers conferred by other laws; provided,

1854 however, that the issuance of revenue bonds and revenue refunding bonds under this chapter

1855 need not comply with the requirements of any other law applicable to the issuance of bonds

1856 including, chapter 106. Except as otherwise expressly provided in this chapter, none of the

1857 powers granted to the authority by this chapter shall be subject to the supervision or regulation or

1858 require the approval or consent of any municipality or political subdivision or any department,

1859 division, commission, board, body, bureau, official or agency of the municipality or political

1860 subdivision or of the commonwealth.

1861 Section 22. This chapter, being necessary for the welfare of the commonwealth and its

1862 inhabitants, shall be liberally construed to effect its purposes.

1863 Section 23. To the extent that this chapter is inconsistent with any general statute or

1864 special act or parts thereof, this chapter shall be deemed controlling.

1865 SECTION 70. Chapter 25C of the General Laws is hereby amended by inserting after

1866 section 6 the following section:1867

Section 6A. (a) As used in this section, the following words and phrases shall, unless the

1868 context clearly requires otherwise, have the following meanings:

1869 “Internet Protocolenabled

service” or “IPenabled

service”, service, capability,

1870 functionality, or application provided using Internet Protocol, or any successor protocol, that

1871 enables an end user to send or receive a communication in Internet Protocol format or any

1872 successor format, regardless of whether the communication is voice, data or video; provided,

however, that no service included within the definition of “Voice over 1873 Internet Protocol service”

1874 shall be included within this definition.

1875 “VoiceoverInternet

Protocol Service” or “VoIP Service”, service that:

1876 (i) enables realtime,

2way

voice communications that originate from or terminate

1877 to the user’s location in Internet Protocol or any successor protocol;

1878 (ii) uses a broadband connection from the user’s location; and

1879 (iii) permits users generally to receive calls that originate on the public switched

1880 telephone network and to terminate calls to the public switched telephone network.

1881 (b) Except as set forth in subsections (c), (d) and (e), and notwithstanding any other

1882 general or special law to the contrary, no department, agency, commission or political

1883 subdivision of the commonwealth, shall enact, adopt or enforce, either directly or indirectly, any

1884 law, rule, regulation, ordinance, standard, order or other provision having the force or effect of

1885 law that regulates, or has the effect of regulating, the entry, rates, terms or conditions of VoIP

1886 Service or IPenabled

service.

1887 (c) Subsection (b) shall not be construed to affect the authority of the attorney general to

1888 apply and enforce the law, including chapter 93A.

1889 (d) Subsection (b) shall not be construed to affect, mandate or prohibit the assessment of

1890 nondiscriminatory enhanced 911 fees or telecommunications relay service fees.

1891 (e) Subsection (b) shall not be construed to modify or affect the rights or obligations of

1892 any carrier under sections 251 or 252 of Title 47 of the United States Code.

1893 SECTION 71. Section 1 of chapter 29 of the General Laws, as so appearing, is hereby

1894 amended by striking out the definition of “State authority,” and inserting in place thereof the

1895 following definition:”

State authority” shall mean any body politic and corporate that 1896 is constituted as a public

1897 instrumentality of the commonwealth and is established by an act of the general court to serve an

1898 essential governmental function. A state authority shall not be a state agency or owned by a city

1899 or town, and shall not be confined to a particular geographical region that is smaller than the

1900 commonwealth.

1901 SECTION 72. Chapter 29 of the General Laws is hereby amended by inserting after

1902 section 30 the following section:1903

Section 30A. Notwithstanding section 50 of chapter 3, or any other general or special law

1904 to the contrary, a state agency or state authority shall not use state funds to pay for an executive

1905 or legislative agent, as defined in section 39 of chapter 3, unless the executive or legislative agent

1906 is a fulltime

employee of the state agency or state authority.

1907 SECTION 73. Section 1 of chapter 30A of the General Laws, as appearing in the 2008

1908 Official Edition, is hereby amended by inserting after paragraph (4) the following paragraph::

1909

(4A) “Proposed regulation”, a proposal by an agency to adopt, amend or repeal an

1910 existing regulation.

1911 SECTION 74. Said section 1 of said chapter 30A, as so appearing, is hereby further

1912 amended by inserting after paragraph (5) the following paragraph:1913

(5A) “Small business”, a business entity, including its affiliates, that: (i) is independently

1914 owned and operated; (ii) has a principal place of business in the commonwealth; and (iii) if in a

1915 manufacturing industry, employs fewer than 500 fulltime

employees, if in a wholesale trade

1916 industry, employs fewer than 100 fulltime

employees or, if in any other industry, receives less

1917 than $7,000,000 in annual receipts; provided, however, that for purposes of this definition, the

industry of a business shall be classified according to the North American 1918 Industry Classification

1919 System.

1920 SECTION 75. Section 2 of said chapter 30A, as so appearing, is hereby amended by

1921 inserting after the third paragraph the following 2 paragraphs:1922

At least 21 days prior to the date of the public hearing, the agency shall file a small

1923 business impact statement considering the impact of the proposed regulation on small business

1924 with the state secretary. Notwithstanding the provisions of section 6, the state secretary shall

1925 include the statement of small business consideration on the electronic website of the state

1926 secretary; provided, however, that the full text of the small business impact statement may be

1927 inspected and copied in the office of the state secretary during business hours.

1928 That small business impact statement shall include, but not be limited to, the following:

1929 (1) an estimate of the number of small businesses subject to the proposed regulation;

1930 (2) projected reporting, recordkeeping and other administrative costs required for

1931 compliance with the proposed regulation;

1932 (3) the appropriateness of performance standards versus design standards;

1933 (4) an identification of regulations of the promulgating agency, or of another agency or

1934 department of the commonwealth, which may duplicate or conflict with the proposed regulation;

1935 and

1936 (5) an analysis of whether the proposed regulation is likely to deter or encourage the

1937 formation of new businesses in the commonwealth;

1938 SECTION 76. Section 3 of said chapter 30A, as so appearing, is hereby amended by

1939 inserting after the third paragraph the following 2 paragraphs:—

At least 21 days prior to the date of the proposed action, the 1940 agency shall file a small

1941 business impact statement considering the impact of the proposed action on small businesses

1942 with the state secretary. Notwithstanding the provisions of section 6, the state secretary shall

1943 include the small business impact statement on the electronic website of the state secretary;

1944 provided, however, that the full text of the small business impact statement may be inspected and

1945 copied in the office of the state secretary during business hours.

1946 That small business impact statement shall include, but not be limited to, the following:

1947 (1) an estimate of the number of small businesses subject to the proposed regulation;

1948 (2) projected reporting, recordkeeping and other administrative costs required for

1949 compliance with the proposed regulation;

1950 (3) the appropriateness of performance standards versus design standards;

1951 (4) an identification of regulations of the promulgating agency, or of another agency or

1952 department of the commonwealth, which may duplicate or conflict with the proposed regulation;

1953 and

1954 (5) an analysis of whether the proposed regulation is likely to deter or encourage the

1955 formation of new businesses in the commonwealth;

1956 SECTION 77. The second paragraph of section 5 of said chapter 30A, as so appearing,

1957 is hereby amended by striking out the third sentence.

1958 SECTION 78. Said section 5 of said chapter 30A, as so appearing, is hereby further

1959 amended by inserting after the second paragraph the following 2 paragraphs:1960

Prior to the adoption of a proposed regulation, an agency shall consider, without limitation,

1961 whether any of the following methods of reducing the impact of the proposed regulation on small

1962 businesses would hinder achievement of the purpose of the proposed regulation:

(1) establishing less stringent compliance or reporting requirements 1963 for small businesses;

1964 (2) establishing less stringent schedules or deadlines for compliance or reporting

1965 requirements for small businesses;

1966 (3) consolidating or simplifying compliance or reporting requirements for small

1967 businesses;

1968 (4) establishing performance standards for small businesses to replace design or

1969 operational standards required in the proposed regulation; and

1970 (5) exempting small businesses from all or any part of the requirements contained in the

1971 proposed regulation.

1972 An agency shall utilize regulatory methods that will accomplish the objectives of applicable

1973 statutes while minimizing adverse impact on small businesses.

1974 SECTION 79. Said section 5 of said chapter 30A, as so appearing, is hereby further

1975 amended by adding the following sentence:1976

Failure to file a small business impact statement under this section shall not affect the validity or

1977 enforceability of a regulation.

1978 SECTION 80. Said chapter 30A, as so appearing, is hereby amended by inserting after

1979 section 5 the following section:1980

Section 5A. Rules and regulations shall be reviewed at least once every 12 years after

1981 their publication as the final rules or regulations to ensure that those rules and regulations

1982 minimize economic impact on small businesses in a manner consistent with the stated objectives

1983 of applicable statutes.

In reviewing a rule or regulation to minimize economic impact of the r 1984 ule or regulation on small

1985 businesses, the agency shall consider the following factors:

1986 (1) the continuing need for the rule or regulation;

1987 (2) the nature of complaints or comments received concerning the rule or regulation from

1988 the public;

1989 (3) the complexity of the rule or regulation;

1990 (4) the extent to which the rule or regulation overlaps, duplicates or conflicts with other

1991 Federal, state, and local governmental rules and regulations;

1992 (5) the length of time since the rule or regulation has been enacted, changed, amended or

1993 modified; and

1994 (6) the degree to which technology, economic conditions or other factors have changed in

1995 the subject areas affected by the rule or regulation.

1996 SECTION 81. Section 23 of chapter 32 of the General Laws, as so appearing, is hereby

1997 amended by inserting after the word “section;”, in line 361, the following words:1998

provided, however, that consistent with sound investment policy and in accordance with the

1999 procedures and processes employed to oversee the allocation of traditional investment of funds,

2000 the director shall whenever reasonably possible ensure that funds are invested in banks or

2001 financial institutions which directly or through any subsidiary may make loans to small

2002 businesses, as defined in subdivision (7)(a), and that when electing to make such investments the

2003 board shall review the guidelines for investing in small businesses contained in subdivision (7)

2004 and monies shall be invested as much as reasonably possible in such banks, financial institutions

or companies which provide capital to small businesses under those guidelines 2005 so long as such

2006 use is consistent with sound investment policy;

2007 SECTION 82. Said section 23 of said chapter 32, as so appearing, is hereby further

2008 amended by adding the following subdivision:

2009 (7) The guidelines for investing in small businesses with a principal place of business in the

2010 commonwealth shall be:

2011 (a) For the purposes of this section small business shall be a business entity, including its

2012 affiliates, that (i) is independently owned and operated; (ii) has a principal place of

2013 business in the commonwealth; and (iii) if in a manufacturing industry, employs fewer

2014 than 500 fulltime

employees, if in a wholesale trade industry, employs fewer than 100

2015 fulltime

employees or, if in any other industry, has less than $7 million in annual

2016 receipts; provided, however, that for purposes of this definition, the industry of a

2017 business shall be classified according to the North American Industry Classification

2018 System.

2019 (b) Investments shall be made by banks or financial institutions with demonstrated

2020 experience making capital available to small businesses with good management, which

2021 are fast growing and identify the potential to use increased capital to create jobs and

2022 which are experiencing difficulty in accessing capital.

2023 (c) Capital shall be provided to small businesses in a variety of financial instruments,

2024 including but not limited to: working capital and expansion loans to businesses, both

2025 secured and nonsecured;

provide lines of credit; capital expenditure loans; term loans;

2026 project finance loans; grants; loan guarantees and mezzanine and structured finance

2027 loans.

(d) Capital shall only be provided in conjunction with the provision 2028 of financial and

2029 managerial advisory services to all businesses served.

2030 SECTION 83. Section 59 of chapter 40 of the General Laws, as so appearing, is hereby

2031 amended by striking out clause (iii) and inserting in place thereof the following clause:2032

(iii) authorizes tax increment exemptions from property taxes, under clause Fiftyfirst

of section

2033 5 of chapter 59, for a specified term not to exceed 20 years, for any parcel of real property which

2034 is located in the TIF zone and for which an agreement has been executed with the owner of the

2035 real property under clause (v); provided, however, that the TIF plan shall specify the level of the

2036 exemptions expressed as exemption percentages, not to exceed 100 per cent to be used in

2037 calculating the exemptions for the parcel, and for personal property situated on that parcel, as

2038 provided under clause Fiftyfirst

of said section 5 of said chapter 59; provided, further, that the

2039 exemption for each parcel of real property shall be calculated using an adjustment factor for each

2040 fiscal year of the specified term equal to the product of the inflation factors for each fiscal year

2041 since the parcel first became eligible for an exemption under this clause; provided, further that

2042 the inflation factor for each fiscal year shall be a ratio;

2043 (a) the numerator of which shall be the total assessed value of all parcels of commercial and

2044 industrial real estate that are assessed at full and fair cash value for the current fiscal year minus

2045 the new growth adjustment for the current fiscal year attributable to the commercial and

2046 industrial real estate as determined by the commissioner of revenue under subsection (f) of

2047 section 21C of chapter 59; and

2048 (b) the denominator of which shall be the total assessed value for the preceding fiscal year of all

2049 the parcels included in the numerator; provided, however, that the ratio shall not be less than 1;.

SECTION 84. Clause (iii) of subsection (a) of section 2050 60 of said chapter 40, as so

2051 appearing, is hereby amended by striking out the introductory paragraph and inserting in place

2052 thereof the following introductory paragraph:2053

(iii) authorize tax increment exemptions from property taxes, under clause Fiftyfirst

of

2054 section 5 of chapter 59, for a specified term not to exceed 20 years, for any parcel of real

2055 property which is located in the UCHTIF

zone and for which an agreement has been executed

2056 under clause (v); provided, however, that the UCHTIF

plan shall specify the level of exemptions

2057 expressed as exemption percentages, not to exceed 100 per cent to be used in calculating the

2058 exemptions for the parcel, and for personal property situated on that parcel, as provided under

2059 said clause Fiftyfirst

of said section 5 of said chapter 59; provided, further, that the exemption

2060 for each parcel of real property shall be calculated using an adjustment factor for each fiscal year

2061 of the specified term equal to the product of the inflation factors for each fiscal year since the

2062 parcel first became eligible for such exemption under this clause; provided, further, that the

2063 inflation factor for each fiscal year shall be a ratio:—

2064 SECTION 85. Clause (iii) of Section 60A of said chapter 40, as so appearing, is hereby

2065 amended by striking out the introductory paragraph and inserting in place thereof the following

2066 introductory paragraph: 2067

(iii) authorize tax increment exemptions from property taxes, under clause Fiftyfirst

of

2068 section 5 of chapter 59, for a specified term not to exceed 20 years, for any parcel of real

2069 property which is located in the MWTTIF

zone and for which an agreement has been executed

2070 with the owner of the parcel under clause (iv); provided, however, that the MWTTIF

plan shall

2071 specify the level of exemptions expressed as exemption percentages, not to exceed 100 per cent,

to be used in calculating the exemptions for the parcel, and for personal 2072 property situated on that

2073 parcel, as provided under said clause Fiftyfirst

of said section 5 of said chapter 59; provided,

2074 further, that the exemption for each parcel of real property shall be calculated using an

2075 adjustment factor for each fiscal year of the specified term equal to the product of the inflation

2076 factors for each fiscal year since the parcel first became eligible for such exemption pursuant to

2077 this clause; provided, further, that the inflation factor for each fiscal year shall be a ratio:

2078 SECTION 86. Chapter 40E of the General Laws is hereby repealed.

2079 SECTION 87. The General Laws are hereby amended by striking out chapter 40F and

2080 inserting in place thereof the following chapter:2081

Chapter 40F. Massachusetts Small Business Finance Corporation

2082 Section 1. For the purposes of this chapter the following words and terms shall, except

2083 where the context clearly indicates otherwise, have the following meanings:

2084 “Capital participation instruments”, purchase of stock, both common and preferred,

2085 convertible securities, warrants, subscriptions, options to acquire, capital loans, and working

2086 capital or inventory loans, royalties, and any other lawful derivations of the foregoing.

2087 “Community Development Corporation” or “CDC”,”CDC”, a community development

2088 corporation, as defined in section 2 of chapter 40H.

2089 “Corporation” or “SBFC”, the Massachusetts Small Business Finance Corporation

2090 created by section 2.

“Equity investment”, any of the following types of investment 2091 activity: (a) a purchase of

2092 stock; (b) a purchase of a partnership interest; (c) a purchase of a limited liability company

2093 membership interest; or (d) a loan made on such terms that it has sufficient characteristics of

2094 equity.

2095 “Financial products”, loans, equity investments and other similar financing activities

2096 including the purchase of loans originated by a certified community development financial

2097 institution, the provision of loan guarantees, or the provision of surety bond guarantees.

2098 “Project”, (a) the act of making available financial products to small businesses or (b)

2099 economic development activity involving the financing of commercial, industrial or other real

2100 estate activity.

2101 “Small business”, a business entity, including its affiliates, that (a) is independently

2102 owned and operated; (b) has a principal place of business in the commonwealth; and (c) if in a

2103 manufacturing industry, employs fewer than 500 fulltime

employees, if in a wholesale trade

2104 industry, employs fewer than 100 fulltime

employees or, if in any other industry, has less than

2105 $7 million in annual receipts; provided, however, that for purposes of this definition, the industry

2106 of a business shall be classified according to the North American Industry Classification System.

2107 Section 2. (a) There is hereby created a body politic and corporate to be known as the

2108 Massachusetts Small Business Finance Corporation or SBFC. The SBFC is hereby constituted a

2109 public instrumentality and the exercise by the SBFC of the powers conferred by this chapter shall

2110 be deemed to be the performance of an essential governmental function.

The SBFC is hereby placed in the executive office of housing and 2111 economic development

2112 but shall not be subject to the supervision and control of any executive office, department,

2113 division, commission, board, bureau or agency except to the extent and in the manner provided

2114 by law.

2115 (b)The corporation shall consist of 11 directors, 1 of whom shall be the secretary of

2116 housing and economic development, who shall serve as chair, and 1 of whom shall be the

2117 secretary of administration and finance, or the secretary’s designee. The governor shall appoint

2118 the remaining 9 members, 3 of whom shall have served as trustees of the economic stabilization

2119 trust in 2009, 1 of whom shall be experienced in small business financing, 2 of whom shall be

2120 members of CDCs or residents of the municipalities served by a CDC, 1 of whom shall be a

2121 current or retired certified public accountant or chief financial officer, 1 of whom shall be a

2122 practicing or retired attorney with a business financing experience, and 1 of whom shall be a

2123 representative of organized labor. Each member appointed by the governor shall serve a term of

2124 5 years, except that in making his initial appointments the governor shall appoint 1 member to

2125 serve for a term of 1 year, 1 member to serve for a term of 2 years, 1 member for a term of 3

2126 years, 2 members for a term of 4 years, and 1 member for a term of 5 years.

2127 Any person appointed to fill a vacancy in the office of a member shall be appointed in a

2128 like manner and shall serve for only the unexpired term. A member shall be eligible for

2129 reappointment. A member may be removed from his appointment by the governor only for good

2130 cause. The directors shall annually elect one of their members as vicechair

and designate a

2131 secretarytreasurer

who need not be a member of the board. The secretarytreasurer

shall keep a

record of the proceedings of the corporation and shall be the custodian of 2132 all books, documents,

2133 and papers filed with the corporation, the minute books of the corporation and of its official seal.

2134 (c) 6 of the directors of the corporation shall constitute a quorum and a majority vote of

2135 the directors shall be necessary for the transaction of business or the exercise of any power or

2136 function of the corporation. Each director shall be entitled to reimbursement for his actual and

2137 necessary expenses incurred in the performance of his official duties.

2138 The corporation, its directors, officers, and employees shall be subject to the provisions

2139 of sections 1 to 4, inclusive, of chapter 268A except that the corporation may purchase from, sell

2140 to, borrow from, loan to, contract with or otherwise deal with any public nonprofit community

2141 development corporation organized to carry out the purposes of this chapter of which any

2142 director of the corporation is also a member or officer provided that such interest is disclosed in

2143 advance to members of the board and recorded in the minutes of the corporation and, provided

2144 further, that no director having such a financial interest may participate in any decision affecting

2145 such transaction.

2146 (d) The president of the corporation shall be appointed and the president’s salary

2147 established by the board of directors. The president shall be the chief administrative and

2148 operational officer of the corporation and shall direct and supervise administrative affairs and the

2149 general management of the corporation. The president may employ such other employees as

2150 shall be designated by the board of directors, shall attend meetings of the board of directors, shall

2151 cause copies to be made of all minutes and other records and documents of the corporation and

2152 shall certify that such copies are true copies, and all persons dealing with the corporation may

2153 rely upon such certification.

Section 3. The S 2154 BFC shall have the power to:

2155 (a) Adopt by laws for the regulation of its affairs and the conduct of its business.

2156 (b) Adopt an official seal.

2157 (c) Sue and be sued in its own name.

2158 (d) Make and execute contracts and all other instruments necessary or convenient for the

2159 exercise of its power and functions; provided, however, that the corporation shall seek to

2160 contract with another public authority for the performance of core administrative

2161 functions by that authority, including but not limited to, human resources, financial

2162 management, information technology, legal, procurement and asset management, to

2163 minimize the administrative costs and expenses of the corporation.

2164 (e) Acquire, hold and dispose of personal property for its corporate purposes.

2165 (f) Enter into agreements or other transactions with any federal or state agency.

2166 (g) Acquire real property, or an interest in real property, by purchase or foreclosure,

2167 where such acquisition is necessary or appropriate to protect or secure any investment or

2168 loan in which the agency has an interest; to sell, transfer and convey any such property to

2169 a buyer and in the event such sale, transfer or conveyance cannot be effected with

2170 reasonable promptness or at a reasonable price, to lease such property to a tenant.

(h) Invest any funds held in reserves or sinking funds, or 2171 any funds not required for

2172 immediate disbursement, in such investments as may be lawful for fiduciaries in the

2173 commonwealth.

2174 (i) Borrow money by the issuance of debt obligations whether tax exempt or taxable and

2175 secure such obligations by the pledge of its revenues or of the revenues, mortgages, and

2176 notes of others, provided that the corporation shall not issue debt obligations the principal

2177 amount of which, when added to the principal amount of the debt obligations theretofore

2178 issued by the corporation, excluding debt obligations previously refunded or being or to

2179 be refunded thereby, shall exceed 30 million dollars.

2180 (j) Employ a president, who shall be the chief executive officer of the corporation, and

2181 such other agents, employees, professional and business advisers as may from time to time be

2182 necessary in the judgment of the board of directors and to fix their compensation. The president,

2183 professional advisers and business advisers shall not be subject to the provision of chapter thirty2184

one or section 9A of chapter 30.

2185 (k) Appear in its own behalf before boards, commissions, departments or other agencies

2186 of government, municipal, state or federal.

2187 (l) Procure insurance against any loss in connection with its property in such amounts,

2188 and from such insurers, as may be necessary or desirable.

2189 (m) Consent, subject to the provisions of any contract with noteholders or bondholders,

2190 whenever it deems it necessary or desirable in the fulfillment of the purposes of this act, to the

2191 modification, with respect to rate of interest, time of payment of any installment of principal or

interest, or any other terms, of any mortgage, mortgage loan, mortgage 2192 loan commitment,

2193 contract or agreement of any kind to which the SBFC is a party.

2194 (n) Do any and all things necessary or convenient to carry out its purposes and exercise

2195 the powers expressly given and granted in this act.

2196 (o) Receive and accept from any federal or state agency grants, loans or advances for or

2197 in aid of the purposes of this chapter and to receive and accept contributions from any source of

2198 either money, property, labor or other things of value, to be held, used and applied for said

2199 purposes.

2200 (p) Create, issue, buy and sell stock and other capital participation instruments; to hold

2201 such stock and capital participation instruments and to underwrite the creation of a capital market

2202 for these securities in a manner which is designed to enhance development of capital ownership

2203 in areas of the commonwealth where a majority of residents are low or moderate income.

2204 (q) Provide and pay for such advisory services and technical assistance as may be

2205 necessary or desirable to carry out the purposes of this act.

2206 (r) Exercise any other powers or rights or responsibilities of a corporation organized

2207 under chapter 156B.

2208 (s) In addition to the powers enumerated in paragraph (p), the Corporation is hereby

2209 authorized to create and issue shares which any person, firm or corporation may purchase. Each

2210 share issued shall be in the form of nonvoting

common stock with each share having a par value

2211 of 10 dollars. The total value of the shares issued shall not exceed 25 million dollars.

Under no circumstances shall any debt obligation issued pur 2212 suant to paragraph (i), stock

2213 or capital participation instrument created pursuant to paragraph (p) or share issued pursuant to

2214 paragraph (s) be or become an indebtedness or obligation of the commonwealth of

2215 Massachusetts, and it shall be plainly stated on the face of each bond, capital participation

2216 instrument, share or other evidence of indebtedness that it does not constitute an indebtedness or

2217 obligation of the commonwealth of Massachusetts but is payable solely from the revenues or

2218 income of the Massachusetts Small Business Finance Corporation.

2219 Section 4

2220 (1) The Corporation, subject to the restrictions as set forth in this section, may participate in

2221 a project; provided that, the Corporation shall find and incorporate in the official records

2222 of the Corporation that the project will be of a public benefit such that:

2223 (a) The project is reasonably expected to support or promote community economic

2224 development, revitalization, or stability; or

2225 (b) The project will promote employment opportunities for residents of the commonwealth;

2226 or;

2227 (c) The project will promote the creation or retention of jobs; or,

2228 (d) The project will support the creation or expansion of a business sector whose success will

2229 enhance the economic development of the commonwealth, enhance the quality of life of

2230 residents of the commonwealth, or enhance the employment opportunities for residents of

2231 the commonwealth.

2232 (e) Funding for the project is not available in the traditional capital markets

(2) Whenever a CDC requests that SBFC participate in a project 2233 and the Corporation will

2234 make a determination of the likelihood that i) the project will provide employment

2235 opportunities to low and moderate income residents of the commonwealth, ii) is likely to

2236 enhance the quality of life of low and moderate income residents of the commonwealth,

2237 and iii) supports the creation or expansion of the business sector in the region served by

2238 the CDC. Whenever SBFC enters into an agreement to participate in such a project, the

2239 terms of the financial products made available shall be reflect the economic and social

2240 benefits which inures to the commonwealth from the project.

2241 (3) Provision must be made in any contract for adequate reporting of financial and other data

2242 to the Corporation. The contract shall require that any business receiving financial

2243 products shall participate in financial and managerial consulting services and the contract

2244 shall include a requirement for an annual or other periodic audit of the project books.

2245 Section 5. The corporation shall endeavor to participate in projects each year that provide

2246 financial products, which in the aggregate total not less than 20 percent of the total capital

2247 committed by SBFC in that year, to minorityowned

or womenowned

contractors

2248 notwithstanding the conditions described in section 5, except that the SBFC must find (a) that the

2249 project plans conform to all applicable environmental, zoning, building, planning or sanitation

2250 laws, (b) that there is a reasonable expectation that the project will be successful, and (c) that its

2251 participation is necessary to the successful completion of the proposed project because funding

2252 for the project is unavailable in the traditional capital markets, or that credit has been offered on

2253 terms that would preclude the success of the project.

Section 6. The SBFC is hereby specifically authorized to establish or 2254 to invest in the capital

2255 stock of one or more corporations organized for the purposes of increasing capital available to

2256 small businesses or furthering the objectives set forth in section one of chapter eight hundred and

2257 sixtysix

of the acts of nineteen hundred and seventyfive.

Without limitation, any such

2258 corporation may:

2259 (1) serve as a financial intermediary between entities undertaking projects and small

2260 businesses and public or private sources of capital including, without limitation, direct lenders,

2261 guarantors or grant makers. Any corporation so organized may accomplish its purposes by means

2262 of (i) investing in the equity capital of, (ii) making direct loans to, or (iii) issuing loan guarantees

2263 to entities undertaking projects or to small businesses; and

2264 (2) provide financial and managerial consulting services to entities undertaking projects,

2265 small businesses and minorityowned

or womenowned

contractors.

2266 The SBFC may have a controlling or a minority interest in any such corporation, as the board

2267 of directors of the SBFC shall determine in its discretion; provided, however, that at least one

2268 member of the board of directors of the SBFC shall sit on the board of directors of any such

2269 corporation.

2270 Any corporation established under the provisions of this section or in which the SBFC has

2271 invested pursuant to this section shall, prior to making any investment in the capital stock of, or

2272 loans or loan guarantees to entities undertaking projects or to small businesses, make the

2273 following findings:

(1) That such action is consistent with the objectives of this section or as 2274 set forth in section 1

2275 of chapter 866 of the acts of 1975 and may reasonably be expected to contribute to the

2276 redevelopment and economic wellbeing

of the commonwealth or will create or retain jobs, or

2277 will assist minority or womenowned

businesses.

2278 (2) That the funds provided by the SBFC will be used solely in connection with the costs of

2279 the project or the operation of the small business.

2280 (3) That provision is made in the contract for participation in a project for adequate reporting

2281 of financial data from the small business or project to such corporation. The contract shall

2282 require that any business receiving financial products shall participate in financial and

2283 managerial consulting services and the contract shall include a requirement for an annual or other

2284 periodic audit of the books of the project or the small business.

2285 (4) That its participation is necessary to the successful completion of the proposed project or

2286 to the success of the small business because funding for the project or small business is

2287 unavailable in the traditional capital markets, or that credit has been offered on terms that would

2288 preclude the success of the project or the small business.

2289 (5) That provision has been made that should the SBFC desire to sell or otherwise dispose of

2290 stock received pursuant to such a contract, that the small business or entity undertaking a project,

2291 or their nominee, shall within one hundred and twenty days have the right of first refusal upon

2292 said sale and the right to meet any subsequent bona fide offer by a third party.

2293 In no case shall the SBFC, or the SBFC in combination with such corporation, own more

2294 than fortynine

percent of the voting stock in any small business.

Upon the request of the SBFC, the commissioner of banks is 2295 hereby specifically authorized

2296 and directed to examine the books of any corporation established or invested in by the SBFC

2297 pursuant to the provisions of this section in the event that such examination is a condition of the

2298 particular investment, lending, loan guaranty or grant program administered by such corporation.

2299 Section 7. The SBFC shall be subject to section 56 of chapter 23A.

2300 SECTION 88. Section 3 of chapter 40F is hereby amended by striking paragraph (b) and

2301 inserting in place thereof the following:

2302 (b)The corporation shall consist of 11 directors, 1 of whom shall be the secretary of

2303 housing and economic development, who shall serve as chair, and 1 of whom shall be the

2304 secretary for administration and finance, or the secretary’s designee. The governor shall appoint

2305 the remaining 9 members, 4 persons who together shall be experienced in small business

2306 financing, turnarounds of troubled businesses, the organization and operation of employee

2307 owned businesses, and business management, provided that each such director shall be

2308 experienced and knowledgeable in at least one such area, 2 of whom shall be members of CDCs

2309 or residents of the municipalities served by a CDC, 1 of whom shall be a current or retired

2310 certified public accountant or chief financial officer, 1 of whom shall be a practicing or retired

2311 attorney with a business financing experience, and 1 of whom shall be a representative of

2312 organized labor. Each member appointed by the governor shall serve a term of five years, except

2313 that in making his initial appointments the governor shall appoint one member to serve for a term

2314 of one year, one member to serve for a term of two years, one member for a term of three years,

2315 two members for a term of four years, and one member for a term of five years.

Any person appointed to fill a vacancy in the office of a member 2316 shall be appointed in a

2317 like manner and shall serve for only the unexpired term. Any member shall be eligible for

2318 reappointment. Any member may be removed from his appointment by the governor only for

2319 good cause. The directors shall annually elect one of their members as vicechairman

and

2320 designate a secretarytreasurer

who need not be a member of the board. The secretarytreasurer

2321 shall keep a record of the proceedings of the corporation and shall be the custodian of all books,

2322 documents, and papers filed with the corporation, the minute books of the corporation and of its

2323 official seal.

2324 SECTION 89. Section 2 of chapter 40G of the General Laws, as appearing in the 2008

2325 Official Edition, is hereby amended by striking out, in lines 19 and 20, the words “eleven

2326 directors: the director of economic development, the secretary of administration” and inserting in

2327 place thereof the following words:11

directors: the secretary of housing and economic

2328 development, who shall serve as chair, the secretary of administration and finance.

2329 SECTION 90. The fifth paragraph of said section 2 of said chapter 40G, as so appearing,

2330 is hereby amended by striking out the fourth sentence.

2331 SECTION 91. Chapter 40G of the General Laws is hereby amended by adding the

2332 following section:2333

Section 11. The MTDC shall be subject to section 56 of chapter 23A.

2334 SECTION 92. Section 2 of chapter 40H of the General Laws, as appearing in the 2008

2335 Official Edition, is hereby amended by striking out the definition of “CDC” and inserting in

2336 place thereof the following definition:2337

“CDC” or “Community Development Corporation” , a quasipublic

corporation exempt

2338 from federal taxation under section 501(c) of the Internal Revenue Code and organized under

chapter 180 to create, develop and sustain economically and ethnically 2339 diverse communities in

2340 urban, rural and suburban areas of the commonwealth where low and moderate income people

2341 have access to a full range of economic opportunities and to provide such persons the

2342 opportunity to work together to initiate and implement programs, projects and activities designed

2343 to improve their communities and expand their economic opportunities and with bylaws

2344 providing that:

2345 (1) it is organized to operate in one or more neighborhoods, municipalities, or regions of

2346 the commonwealth with a population that is economically disadvantaged;

2347 (2) membership in the corporation shall be open to all residents of said area who are

2348 eighteen years or older;

2349 (3) a primary purpose of the organization is to engage local residents and businesses to

2350 work together to undertake programs, projects and activities which develop and

2351 improve urban, rural and suburban communities in sustainable ways that create and

2352 expand economic opportunities for low and moderate income people;

2353 (4) the organization’s constituency is meaningfully represented on the board of directors of

2354 the organization and directors include low and moderate income persons, appointees of

2355 elected state or local government officials, and appointees of other nonprofit

2356 organizations having as a purpose the promotion of community development in the

2357 designated region;

2358 At least a majority of the board of directors shall be elected by the full membership with

2359 each member having an equal vote. Elections shall be held annually for at least onethird

of the

members of the board of directors so that each elected director shall serve 2360 for a term of at least

2361 three years;

2362 SECTION 93. The definition of “Eligible organization” in section 2 of chapter 40H is

2363 hereby amended by striking out the second sentence.

2364 SECTION 94. Section 2 of chapter 40H is hereby amended by striking out the definition

2365 of “Target Area” and inserting in place thereof the following definition:2366

““Target area” shall mean any contiguous geographic area in which the project is located in

2367 and is either (1) an economic target area as so designated pursuant to section three D of chapter

2368 23A; or (2) the service area of community development corporation; or (3) a zip code whose

2369 current unemployment rate exceeds the state unemployment rate by at least twentyfive

per cent

2370 or whose mean household income is at or below eighty per cent of the state mean household

2371 income as of the most recent decennial census.”

2372 SECTION 95. Chapter 40H of the General Laws, is hereby amended by inserting, after

2373 Section 2, the following section:2374

Section 2A (a) The director of the department of housing and community development

2375 shall establish and maintain a list of organizations that have been certified as Community

2376 Development Corporations consistent with this chapter and develop a process for certifying said

2377 organizations, provided further that said organizations must be recertified at least once every four

2378 years. Said process shall include an analysis of the organization’s governance and a

2379 determination of whether the organization’s constituency, including low and moderate income

2380 people, is meaningfully represented on the board of directors of the organization. In making such

2381 determination, the director shall consider the following criteria: (a) the percentage, if any, of the

2382 board is elected by the general membership; (b) the percentage of the board members are

residents of the service area; (c) the percentage of board members 2383 that are people of low or

2384 moderate income, (d) the racial and ethnic composition of the board in comparison to the racial

2385 and ethnic composition of the community being served, (e) other mechanisms, including

2386 committees, membership meetings, and others that the organization uses to ensure that their

2387 constituency has a meaningful role in the governance and direction of the organization, and (f)

2388 other criteria as determined by the director.

2389 (b) The director shall file an annual report on December 15 of each year to the speaker of the

2390 house of representatives, the president of the senate, the chairs of the house and senate

2391 committees on ways and means, the chairs of the joint committee on housing, and the chairs of

2392 the joint committee on community development and small business detailing the following:

2393 i. A list of certified CDCs in the Commonwealth;

2394 ii. A summary of any programs, initiatives or partnerships operated by the Executive Office

2395 of Housing and Economic Development, its agencies and any quasi public agencies

2396 organized under the Executive Office, that are designed to build the capacity of CDCs,

2397 provide training or technical assistance to CDC employees or board members, provide

2398 funding to support CDCs and their programs, projects and initiatives, and otherwise help

2399 CDCs advance the purposes of section 1 of chapter 866 of the acts of 1975 together with

2400 recommendations for action to enhance the ability of CDCs to advance those purposes.

2401 SECTION 96. Section 3 of chapter 40H of the General Laws, as appearing in the 2008

2402 Official Edition, is hereby amended by striking out, in line 13, the words “nine directors, four”

2403 and inserting in place thereof the following words:9

directors, 1 of whom shall be the secretary

2404 of the housing and economic development, who shall serve as chair, 3.

SECTION 97. Subsection (b) of said section 3 of 2405 said chapter 40H, as so appearing, is

2406 hereby amended by striking out the sixth sentence.

2407

2408 SECTION 98. Chapter 40H of the General Laws is hereby amended by adding the following

2409 section:2410

Section 9. CEDAC shall be subject to section 56 of chapter 23A.

2411 SECTION 99. The third paragraph of section 3 of chapter 40J of the General Laws, as

2412 appearing in the 2008 Official Edition, is hereby amended by striking out the first sentence and

2413 inserting in place thereof the following 2 sentences:The

secretary of housing and economic

2414 development or his designee shall serve as chairperson. The board shall annually elect from

2415 among its members a vicechairperson,

and may designate a treasurer and a secretary, who need

2416 not be members of the board.

2417 SECTION 100. Section 6A of said chapter 40J of the General Laws, as so appearing, is

2418 hereby amended by striking out, in line 16, the words, “undersecretary of business development”

2419 and inserting in place thereof the following words:secretary

of housing and economic

2420 development.

2421 SECTION 101. Section 6B of said chapter 40J, as so appearing, is hereby amended by

2422 striking out, in line 32, the words “or his designee” and inserting in place thereof the following

2423 words:who

shall serve as chair.

2424 SECTION 102. Subsection (c) of said section 6B of said chapter 40J, as so appearing, is

2425 hereby further amended by striking out the second sentence.

SECTION 103. Subsection (b) of section 6D of said 2426 chapter 40J, as so appearing, is

2427 hereby amended by striking out the second and third sentences and inserting in place thereof the

2428 following 2 sentences:2429

The council shall advise the institute on the dissemination of health information

2430 technology across the commonwealth, including the deployment of electronic health records

2431 systems in all health care provider settings that are networked through a statewide health

2432 information exchange. The council shall consist of 9 members; 1 of whom shall be the secretary

2433 of health and human services, who shall serve as the chair; 1 of whom shall be the secretary of

2434 administration and finance, or the secretary’s designee; 1 of whom shall be the executive director

2435 of the health care quality and cost council; 1 of whom shall be the director of the office of

2436 Medicaid; 1 of whom shall be the secretary of housing and economic development or the

2437 secretary’s designee; 4 of whom shall be appointed by the governor, of whom at least 1 shall be

2438 an expert in health information technology, 1 shall be an expert in law and health policy, and 1

2439 shall be an expert in health information privacy and security.

2440 SECTION 104. Chapter 40J of the General Laws is hereby amended by adding the

2441 following section:2442

Section 13. The corporation shall be subject to section 56 of chapter 23A.

2443 SECTION 105. Section 1 of chapter 40Q of the General Laws, as appearing in the 2008

2444 Official Edition, is hereby amended by inserting, in line 4, the following definition:2445

“Adjustment factor”, for each fiscal year of the term of a given development program, the

2446 product of the inflation factors for each fiscal year subsequent to the first fiscal year immediately

2447 following the base date.

SECTION 106. Said section 1 of said chapter 40Q, as 2448 so appearing, is hereby further

2449 amended, in lines 31 and 32, by striking out the words, “(8) the duration of the program which

2450 shall not exceed 30 years from the date of designation of the district” and inserting in place

2451 thereof the following words:2452

(8) the duration of the program which shall not exceed the longer of (i) 30 years from the

2453 date of designation of the district or (ii) 30 years from project stabilization, as defined in the

2454 development program.

2455 SECTION 107. Said section 1 of said chapter 40Q, as so appearing, is hereby amended

2456 by striking out the definition “Inflation factor” and inserting in place thereof the following

2457 definition:2458

“Inflation factor”, a ratio: (1) the numerator of which shall be the total assessed value of

2459 all parcels of residential, commercial and industrial real estate that are assessed at full and fair

2460 cash value for the current fiscal year minus the new growth adjustment factor for the current

2461 fiscal year attributable to the residential, commercial and industrial real estate as determined by

2462 the commissioner of revenue under paragraph (f) of section 21C of chapter 59; and (2) the

2463 denominator of which shall be the total assessed value for the preceding fiscal year of all the

2464 parcels included in the numerator; provided, however, the ratio shall not be less than 1; provided,

2465 further that if the proposed Invested Revenue District does not include residential property, the

2466 assessed value attributable to residential property shall not be included in either the numerator or

2467 the denominator in calculating the inflation factor.

SECTION 108. Said section 1 of said chapter 40Q, as 2468 so appearing, is hereby further

2469 amended by striking out, in line 59, the word “and”.

2470 SECTION 109. Said section 1 of said chapter 40Q, as so appearing, is hereby further

2471 amended by inserting, in line 61, after the word, “located” the following words:2472

;and (8) if applicable, a statement of the city or town electing that the original assessed value not

2473 be increased by the adjustment factor.

2474 SECTION 110. Said section 1 of said chapter 40Q, as so appearing, is hereby further

2475 amended by striking out the definition of “Original assessed value” and inserting in place thereof

2476 the following definition:2477

“Original assessed value”, the aggregate assessed value of the invested revenue district as

2478 of the base date; provided, however, that if the city or town has not included an election

2479 statement in its investment district development program, the original assessed value in any year

2480 shall be equal to the original assessed value as of the base date multiplied by the adjustment

2481 factor for that fiscal year.

2482 SECTION 111. Clause sixteenth of section 5 of chapter 59 of the General Laws, as

2483 appearing in the 2008 Official Edition, is hereby amended by striking out paragraph (3) and

2484 inserting in place thereof the following paragraph:2485

(3) In the case of (i) a manufacturing corporation or a research and development

2486 corporation, as defined in section 42B of chapter 63, or (ii) a limited liability company that; (a)

2487 has its usual place of business in the commonwealth; (b) is engaged in manufacturing in the

2488 commonwealth and whose sole member is a manufacturing corporation as defined by section

42B of chapter 63 or is engaged in research and development in the 2489 commonwealth and whose

2490 sole member is a research and development corporation as defined in said section 42B; and (c)

2491 is a disregarded entity, as defined in paragraph 2 of section 30 of chapter 63, all property owned

2492 by the corporation or the limited liability company other than real estate, poles and underground

2493 conduits, wires and pipes; provided, however, that no property, except property entitled to a

2494 pollution control abatement under clause fortyfourth

or a cogeneration facility, shall be exempt

2495 from taxation if it is used in the manufacture or generation of electricity and it has not received a

2496 manufacturing classification effective on or before January 1, 1996. For the purposes of this

2497 section, a cogeneration facility shall be an electrical generating unit having power production

2498 capacity which, together with any other power generation facilities located at the same site, is not

2499 greater than 30 megawatts and which produces electric energy and steam or other form of useful

2500 energy utilized for industrial, commercial, heating, or cooling purposes. This clause as it applies

2501 to a research and development corporation, as defined in section 42B of said chapter 63, and as it

2502 applies to a limited liability company that is a disregarded entity and whose sole member is a

2503 manufacturing corporation or a research and development corporation shall take effect only upon

2504 its acceptance by the city or town in which the real estate, poles and underground conduits, wires

2505 and pipes are located.

2506 SECTION 112. Said section 5 of said chapter 59, as so appearing, is hereby amended by

2507 striking out the Fiftyfirst

clause and inserting in place thereof the following new clause: 2508

Fiftyfirst,

the value of a parcel of real property which is included within an executed

2509 agreement under clause (v) of section 59, clause (v) of subsection (a) of section 60 or clause (iv)

2510 of subsection (a) of section 60A of chapter 40, and the value of personal property situated on that

parcel, but taxes on real and personal property eligible for exemption 2511 under this clause shall be

2512 assessed only on that portion of the value of the property that is not exempt under section 59,

2513 section 60 or section 60A of chapter 40, and this exemption shall be for a term not longer than

2514 the period specified for the exemption in the agreement. The amount of the exemption under this

2515 clause for any parcel of real property shall be the exemption percentage adopted under clause

2516 (iii) of section 59, subsection (a) of section 60 or of section 60A of said chapter 40 multiplied by

2517 the amount by which the parcel’s value exceeds the product of its assessed value for the last

2518 fiscal year before it became eligible for exemption under this clause multiplied by the adjustment

2519 factor determined under said section 59, section 60 or section 60A of said chapter 40. The

2520 amount of the exemption under this clause for personal property shall be the exemption

2521 percentage adopted under clause (iii) of section 59, subsection (a) of section 60 or of section 60A

2522 of said chapter 40 multiplied by the fair cash valuation of the personal property. Taxes on

2523 property eligible for exemption under this clause shall be assessed only on that portion of the

2524 value of the property that is not exempt under this clause.

2525 SECTION 113. Section 45 of chapter 75 of the General Laws, as so appearing, is hereby

2526 amended by striking out, in line 15, the words, “director of business and technology” and

2527 inserting in place thereof the following words:secretary

of housing and economic development.

2528 SECTION 114. Said section 45 of said chapter 75, as so appearing, is hereby further

2529 amended by striking out, in line 19, the words, “department of business technology” and

2530 inserting in place thereof the following words:Massachusetts

office of business development.

2531 SECTION 115. Section 45 of chapter 75 of the General Laws, as appearing in the 2008

2532 Official Edition, is hereby amended by striking out, in lines 25 to 27, inclusive, the words

2533 “director of business and technology, or his designee, the director of science and technology

within the department of business and technology and 7” and inserting 2534 in place thereof the

2535 following words:“

secretary of housing and economic development, who shall serve as chair,

2536 and 8”

2537 SECTION 116. Said section 45 of said chapter 75, as so appearing, is hereby amended

2538 by inserting after the word “technology”, in line 27, the following words:,

the executive

2539 director of the Massachusetts development finance agency, the president of the Massachusetts

2540 life sciences center, the executive director of the Massachusetts clean energy center, the director

2541 of the John Adams Innovation Institute, the president of the Massachusetts Technology

2542 development corporation.

2543 SECTION 117. Chapter 75 of the General Laws is hereby amended by inserting after

2544 section 45 the following section:2545

Section 45A. The center shall be subject to section 56 of chapter 23A.

2546 SECTION 118. Section 1H of chapter 164 of the General Laws, as appearing in the

2547 2008 official edition, is hereby amended by striking out the definition of the word “department”

2548 and inserting in place thereof the following definition:“

Department”, the department of energy

2549 resources.

2550 SECTION 119. The second paragraph of section 14 of chapter 167, as so appearing, is

2551 hereby amended, in line 22, by striking out the words “paragraphs 8, 29 and 30” and inserting in

2552 place thereof the following words: 2553

paragraphs 8, 29, 30 and 30A.

2554 SECTION 120. Section 2 of chapter 167F of the General Laws as appearing in the 2008

2555 Official Edition is hereby amended by inserting after paragraph 30 the following paragraph: 30A.

To participate in the activities of the Massachusetts Small Business 2556 finance corporation

2557 created pursuant to chapter 40F by making capital available to the corporation by making an

2558 investment or deposit in or grant to said corporation, an affiliate or subsidiary of said

2559 corporation, or any fund managed by said corporation.

2560 SECTION 121. Paragraph 13 of section 2 of chapter 167f of the General Laws, as

2561 appearing in the 2008 Official Edition, is hereby amended by striking out the first sentence and

2562 inserting in place thereof the following sentence:To

act as trustee for the holders of any bond

2563 issued by the Massachusetts Industrial Finance Agency, under chapter 23A or by any industrial

2564 development authority of any city or town under chapter 40D or by the Massachusetts Health

2565 and Educational Facilities Authority, under chapter 23K.

2566 SECTION 122. Section 21 of chapter 218 of the General Laws, as appearing in the 2008

2567 official edition, is hereby amended by striking out, in line 35, the following words, “two

2568 thousand dollars” and inserting in place thereof the following figure:$

7,000.

2569 SECTION 123. The second paragraph of section 2 of chapter 465 of the acts of 1956 is

2570 hereby amended by inserting after the second sentence the following sentence:The

secretary of

2571 housing and economic development and the secretary of transportation shall be members and

2572 serve as cochairs

of the Authority..

2573 SECTION 124. Said section 2 of said chapter 465 is hereby amended by striking out the

2574 third paragraph, as appearing in section 12 of chapter 196 of the acts of 2004, and inserting in

2575 place thereof the following paragraph:The

Authority shall annually elect 1 of its members as

2576 vice chairman and shall also elect a secretarytreasurer

who need not be a member of the

2577 Authority.

SECTION 125. Chapter 465 of the acts of 1956 is hereby 2578 amended by inserting after

2579 section 21 the following section:2580

Section 21A. The authority shall be subject to section 56 of chapter 23A of the General Laws.

2581 SECTION 126. Chapter 614 of the acts of 1968 is hereby repealed.

2582 SECTION 127. Section 33 of chapter 190 of the acts of 1982 is hereby amended by

2583 striking out the second paragraph, as appearing in chapter 23 of the acts of 1998, and inserting in

2584 place thereof the following paragraph:2585

The authority shall consist of 13 members, 9 of whom shall be appointed by the

2586 governor, 1 of whom shall be the secretary of housing and economic development or the

2587 secretary’s designee, who shall serve as chair, 1 of whom shall be appointed from a list of 3

2588 nominees recommended by the Massachusetts Visitors Industry Council, 1 of whom shall be

2589 appointed from a list of 3 nominees recommended by the Massachusetts Lodging Association, 1

2590 of whom shall be a resident of the city of Cambridge and 1 of whom shall be a resident of

2591 Hampden county. Two persons shall be appointed by the mayor of the city of Boston, 1 of whom

2592 shall be a resident of South Boston. The remaining 2 persons shall be the secretary of

2593 administration and finance or the secretary’s designee and the collectortreasurer

of the city of

2594 Boston or the collectortreasurer’s

designee, both of whom shall serve ex officio and shall have

2595 the right to exercise or vote on matters before the authority. Three of the members of the

2596 authority first appointed by the governor shall continue in office for a term expiring December

2597 31, 2000 and 3 members of the authority first appointed by the governor shall continue in office

2598 for a term expiring December 31, 2001 and 3 members of the authority first appointed by the

2599 governor shall continue in office for a term expiring December 31, 2003. The term of each such

2600 member shall be designated by the governor and shall continue until the member’s successor is

duly appointed and qualified. The members appointed by the mayor shall continue 2601 in office for a

2602 term expiring December 31, 1999, and shall continue until their successors are duly appointed

2603 and qualified. The successor of each such member shall be appointed for a term of 6 years and

2604 until his successor is duly appointed and qualified, except that any person appointed to fill a

2605 vacancy shall serve only for the unexpired term and until his successor is duly appointed and

2606 qualified. Each member of the authority shall be eligible for reappointment. Each member of the

2607 authority shall serve at the pleasure of the governor, if appointed by the governor, and each

2608 member of the authority may be removed by the governor, if appointed by the governor, or by

2609 the mayor, if appointed by the mayor. Each member of the authority before entering upon his

2610 duties shall take an oath before the governor to administer the duties of his office faithfully and

2611 impartially, and a record of such oaths shall be filed in the office of the secretary of the

2612 commonwealth. Members of the authority shall serve without compensation, but service as a

2613 member of the authority shall be credited to such member’s years in service for pension and

2614 retirement purposes.

2615 SECTION 128. Chapter 190 of the acts of 1982 is hereby amended by inserting after

2616 section 40 the following section:2617

Section 40A. The Authority shall be subject to section 56 of chapter 23A of the General

2618 Laws.

2619

2620 SECTION 129. Section 9 of chapter 498 of the acts of 1993 is hereby amended by

2621 striking out clause (2) and inserting in place thereof the following 2 clauses:(

2) 1 of whom

2622 shall be the secretary of housing and economic development, who shall serve as chair; and (3) 5

commissioners shall be appointed by the Governor of whom: (a) no 2 shall 2623 be legal residents of

2624 the same town; and (b) at least 3 shall reside in the Devens Region.

2625 SECTION 130. Said section 9 of said chapter 498 is further amended by striking out the

2626 fifth sentence and in inserting in place thereof the following sentence:The

governor shall

2627 appoint 1 commissioner to serve as vicechairman

of the commission.

2628 SECTION 131. Chapter 498 of the acts of 1993 is hereby amended by inserting after

2629 section 29 the following section:2630

Section 30. The Bank’s and Commission’s activities relating to Devens shall be subject

2631 to section 56 of chapter 23A of the General Laws.

2632 SECTION 132. The second paragraph of section 64 of chapter 365 of the acts of 1996 is

2633 hereby amended by striking out the first sentence and inserting in place thereof the following

2634 sentence:2635

The corporation shall be governed by a board of directors consisting of the secretary of

2636 housing and economic development, who shall serve as chair, the secretary of labor and

2637 workforce development, the commissioner of the department of transitional assistance, the

2638 commissioner of the department of education, the chancellor of the board of higher education, or

2639 their respective designees, and 14 persons appointed by the governor, each of whom shall be

2640 appointed for a term of 4years, including persons having knowledge and experience in business

2641 and industry, skills training, education, labor organizations, and minority employment.

2642 SECTION 133. Section 64 of chapter 365 of the acts of 1996, as amended by chapter

2643 352 of the acts of 2004, is hereby amended by adding the following sentence:2644

The corporation shall be subject to section 56 of chapter 23A of the General Laws.

SECTION 134. Notwithstanding any general or special 2645 law to the contrary, certain

2646 regulatory approvals are hereby extended as provided in this section.

2647 (a) For purposes of this section, the following words shall have the following meanings:

2648 “Approval” except as otherwise provided in subsection (b), any permit, certificate, order,

2649 excluding enforcement orders, license, certification, determination, exemption, variance, waiver,

2650 building permit, or other approval or determination of rights from any municipal, regional or

2651 state governmental entity, including any agency, department, commission, or other

2652 instrumentality of the municipal, regional or state governmental entity, concerning the use or

2653 development of real property, including certificates, licenses, certifications, determinations,

2654 exemptions, variances, waivers, building permits, or other approvals or determination of rights

2655 issued or made under chapter 21, chapter 21A excepting section 16, chapter 21D, sections 61 to

2656 62H, inclusive, of chapter 30, chapters 30A, 40, 40A to 40C, inclusive, 40R, 41, 43D, section 21

2657 of chapter 81, chapter 91, chapter 131, chapter 131A, chapter 143, sections 4 and 5 of chapter

2658 249, or chapter 258, of the General Laws or chapter 665 of the acts of 1956, or any local bylaw

2659 or ordinance.

2660 “Development”, division of a parcel of land into 2 or more parcels, the construction,

2661 reconstruction, conversion, structural alteration, relocation or enlargement of a building or other

2662 structure or facility, or any grading, soil removal or relocation, excavation or landfill or any use

2663 or change in the use of any building or other structure or land or extension of the use of land.

2664 “Tolling period”, the period beginning January 1, 2008 and continuing through January 1,

2665 2011.

(b) (1) Notwithstanding any general or special law to the contrary, 2666 an approval in effect or

2667 existence during the tolling period shall be extended for a period of 3 years, in addition to the

2668 lawful term of the approval.

2669 (2) Nothing in this act shall be deemed to extend or purport to extend:

2670 (i) any permit or approval issued by the government of the United States or any

2671 agency or instrumentality of the government of the United States, or to any permit or

2672 approval, of which the duration of effect or the date or terms of its expiration are

2673 specified or determined by or under law or regulation of the federal government or any of

2674 its agencies or instrumentalities;

2675 (ii) an enforcement order issued by the department of environmental protection;

2676 (iii) any permit, license, privilege or approval issued by the division of fisheries

2677 and wildlife under chapter 131 for hunting, fishing or aquaculture;

2678 (3) Nothing in this section shall affect the ability of any municipal, regional or state

2679 governmental entity, including any agency, department, commission, or other instrumentality of

2680 any municipal, regional or state governmental entity to revoke or modify a specific permit or

2681 approval, or extension of a specific permit or approval under this section, when that specific

2682 permit or approval or the law or regulation under which the permit or approval was issued

2683 contains language authorizing the modification or revocation of the permit or approval.

2684 (4) In the event that an approval tolled under this section is based upon the connection to

2685 a sanitary sewer system, the approval’s extension shall be contingent upon the availability of

2686 sufficient capacity, on the part of the treatment facility, to accommodate the development whose

2687 approval has been extended. If sufficient capacity is not available, those permit holders whose

2688 approvals have been extended shall have priority with regard to the further allocation of

gallonage over those approval holders who have not received approval 2689 of a hookup prior to the

2690 effective date of this section. Priority regarding the distribution of further gallonage to a permit

2691 holder who has received the extension of an approval under this section shall be allocated in

2692 order of the granting of the original approval of the connection.

2693 (5) Nothing in this section shall be construed or implemented in such a way as to modify

2694 a requirement of law that is necessary to retain federal delegation to, or assumption by, the

2695 commonwealth of the authority to implement a federal law or program.

2696 SECTION 135. Notwithstanding any general or special law to the contrary, within 4

2697 years of the enactment of this law, each agency shall review all agency rules and regulations

2698 currently existing to determine whether such rules and regulations should be continued without

2699 change or should be amended or rescinded to minimize economic impact of those rules and

2700 regulations on small businesses in a manner consistent with the stated objective of applicable

2701 statutes. If the head of the agency determines that completion of the review of existing rules is

2702 not feasible by the established date the agency shall publish a statement certifying that

2703 determination. The agency may extend the completion date by 1 year at a time for a total of not

2704 more than 5 years.

2705 SECTION 136. Notwithstanding any general or special law to the contrary, the

2706 executive office of housing and economic development shall conduct a study to examine the

2707 cost reliability and economic impact of electricity. The study shall include, but not be limited

2708 to:

2709 (i) an analysis of the economic and reliability implications of implementing

2710 administrative, regulatory and legislative mandates as they pertain to electricity; and

(ii) the extent to which efforts to achieve recentlyestablished

2711 goals relating to zero

2712 net energy growth, greenhouse gas reductions or scheduled increases in renewable power,

2713 demand resources and energy efficiency contribute to the rates paid by residential,

2714 commercial and industrial customers in the commonwealth.

2715 The study shall be completed with stakeholder input, including representatives from

2716 various sectors of the commonwealth’s economy. The study shall be completed and

2717 submitted to the joint committee on telecommunications, utilities and energy no later than

2718 December 31, 2010.

2719 SECTION 137. Notwithstanding any general or special law to the contrary, all current

2720 members of the health and educational facilities authority established by section 4 of chapter 614

2721 of the acts of 1968 shall continue to serve, as if the member had been appointed under section 4

2722 of chapter 21J, until the expiration of the term of that member.

2723 SECTION 138. Notwithstanding any general or special law to the contrary, all current

2724 assets, liabilities, obligations and debt of the authority shall be deemed to have been created

2725 under chapter 23K of the General Laws, and no existing rights of the holders of the bonds,

2726 revenue bonds, notes, bond anticipation notes, other notes or other obligations issued by HEFA

2727 under chapter 614 of the acts of 1968 shall be impaired and HEFA shall maintain the covenants

2728 of the trust indentures pertaining to those bonds so long as those bonds shall remain outstanding.

2729 SECTION 139. Notwithstanding any general or special law to the contrary, the health

2730 and educational facilities authority shall establish fees under clause (o) of section 4 of chapter

2731 23K for fiscal years 2011 and 2012 that are no higher than the fees charged by that authority in

2732 fiscal year 2010. The authority shall use all reasonable efforts to ensure that any additional

revenue realized in those 2 fiscal years resulting from changes in chapter 2733 23G in this act shall be

2734 used by the authority to expand the availability of the authority’s programs.

2735 SECTION 140. Notwithstanding any other general or special law to the contrary, the

2736 pension reserves investment management board established under section 23 of chapter 32 of the

2737 general laws shall review its investment portfolio and to the extent it is reasonably possible it

2738 shall invest not less than $25,000,000 and not more than $50,000,000 in banks or financial

2739 institutions which make capital available to small businesses under the guidelines of subdivision

2740 (7) of section 23 of chapter 32 of the general laws and shall make such investment a priority of

2741 the portfolio as long as such investment is consistent with sound investment policy.

2742 SECTION 141. Notwithstanding any other general or special law to the contrary any

2743 stock purchase agreement between the commonwealth and Community Development Finance

2744 Corporation (CDFC) in existence on February 8, 2010 which contains outstanding obligations on

2745 the part of the commonwealth and which has been pledged as security for the payment of debt

2746 obligations issued by the CDFC which are also outstanding on February 8, 2010 shall continue to

2747 constitute a general obligation of the commonwealth for which the faith and credit of the

2748 commonwealth remains pledged for the benefit of CDFC and of the holders of said debt

2749 obligations of CDFC until the terms of said debt obligations are satisfied.

2750 SECTION 142. (a) Notwithstanding any general or special law to the contrary, this

2751 section shall facilitate the orderly transfer of the employees, proceedings, rules and regulations,

2752 property, and legal obligations of the following functions of state government from the transferor

2753 agency to the transferee agency, defined as follows: (1) the functions of the Massachusetts Sports

2754 and Entertainment Commission, as the transferor agency, to the Massachusetts Marketing

2755 Partnership, as the transferee agency; (2) the functions of the Community Development Finance

Corporation and the Economic Stabilization Trust, as transferor agencies, 2756 to the Small Business

2757 Finance Corporation, as the transferee agency; (3) the functions of the department of business

2758 development, as the transferor agency, to the Massachusetts office of business development, as

2759 the transferee agency; (4) the functions of the office of travel and tourism in the department of

2760 business development, as the transferor agency, to the office of travel and tourism in the

2761 Massachusetts Marketing Partnership, as the transferee agency; (5) the functions of the office of

2762 international trade and investment in the department of business development, as the transferor

2763 agency, to the Massachusetts trade office in the Massachusetts Marketing Partnership, as the

2764 transferee agency.

2765 (b) The employees of each transferor agency, including those who immediately before

2766 the effective date of this act hold permanent appointment in positions classified under chapter 31

2767 of the General Laws or have tenure in their positions as provided by section 9A of chapter 30 of

2768 the General Laws or do not hold such tenure, or hold confidential positions, are hereby

2769 transferred to the respective transferee agency, without interruption of service, without

2770 impairment of seniority, retirement or other rights of the employee, and without reduction in

2771 compensation or salary grade, notwithstanding any change in title or duties resulting from such

2772 reorganization, and without loss of accrued rights to holidays, sick leave, vacation and benefits,.

2773 The reorganization shall not impair the civil service status of any such reassigned employee who

2774 immediately before the effective date of this act either holds a permanent appointment in a

2775 position classified under chapter 31 of the General Laws or has tenure in a position by reason of

2776 section 9A of chapter 30 of the General Laws.

2777 Notwithstanding the provisions of any general or special law to the contrary, all such

2778 employees shall continue to retain their right to collectively bargain pursuant to chapter 150E of

the General Laws and shall be considered employees for the pur 2779 poses of said chapter 150E.

2780 Nothing in this section shall be construed to confer upon any employee any right not held

2781 immediately before the date of said transfer, or to prohibit any reduction of salary grade, transfer,

2782 reassignment, suspension, discharge, layoff or abolition of position not prohibited before such

2783 date.

2784 (c) All petitions, requests, investigations and other proceedings appropriately and duly

2785 brought before each transferor agency or duly begun by each transferor agency and pending

2786 before it before the effective date of this act, shall continue unabated and remain in force, but

2787 shall be assumed and completed by the transferee agency.

2788 (d) All orders, rules and regulations duly made and all approvals duly granted by each

2789 transferor agency, which are in force immediately before the effective date of this act, shall

2790 continue in force and shall thereafter be enforced, until superseded, revised, rescinded or

2791 canceled, in accordance with law, by the transferee agency.

2792 (e) All books, papers, records, documents, equipment, buildings, facilities, cash and

2793 other property, both personal and real, including all such property held in trust, which

2794 immediately before the effective date of this act are in the custody of each transferor agency shall

2795 be transferred to the transferee agency.

2796 (f) All duly existing contracts, leases and obligations of each transferor agency shall

2797 continue in effect but shall be assumed by the respective transferee agency. No existing right or

2798 remedy of any character shall be lost, impaired or affected by this act.

2799 SECTION 143. The state secretary shall immediately notify all agencies required to file

2800 rules or regulations under section 5 of chapter 30A of the General Laws of the new requirements

2801 regarding small business impact statements.

SECTION 144. (a) There shall be a commission to study the 2802 feasibility of establishing a

2803 bank owned by the commonwealth or by a public authority constituted by the commonwealth.

2804 (b) The commission shall consist of the secretary for administration and finance and the

2805 secretary of housing and economic development or their respective designees, who shall serve as

2806 cochairs

of the commission; the state treasurer or the treasurer’s designee; the state comptroller

2807 or the comptroller’s designee; 2 persons to be appointed by the president of the senate, 1 of

2808 whom shall be a member of the senate; 1 person to be appointed by the minority leader of the

2809 senate; 2 persons to be appointed by the speaker of the house of representatives; 1 of whom shall

2810 be a member of the house of representatives; 1 person to be appointed by the minority leader of

2811 the house; the executive directors of the Massachusetts Development Financing Agency and the

2812 Massachusetts Housing Finance Agency or their designees; the executive director of the

2813 Massachusetts Small Business Finance Corporation or his designee; and 8 persons to be

2814 appointed by the governor who shall not be employees of the executive branch, 3 of whom shall

2815 be drawn from a list of 5 names submitted by the Massachusetts Bankers Association, at least 1

2816 of whom shall be a representative of a community bank operating in the commonwealth, 1 of

2817 whom shall be drawn from a list of 3 names submitted by the Associated Industries of

2818 Massachusetts, 1 of whom shall be drawn from a list of 3 names submitted by the Small Business

2819 Association of New England and 1 of whom shall be a professor at an institution of higher

2820 education in the commonwealth who has researched and published articles on banking. Of the

2821 governor’s remaining appointments, not more than 1 may be a representative of a financial

2822 services firm located in the commonwealth. The governor shall ensure geographic diversity in

2823 his appointments to the commission. The members of the commission shall be appointed not

2824 later 90 days after the effective date of this act.

(c) The commission shall examine the technical, legal and financial 2825 feasibility of

2826 establishing a commonwealthowned

bank. The commission shall seek participation in its

2827 deliberations from the president of the Federal Reserve Bank of Boston or the president’s

2828 designee. The commission shall evaluate the experiences of other states with stateowned

banks,

2829 identifying the financial performance of such banks and evaluating the lending practices of such

2830 banks to show whether such banks successfully fill lending gaps not filled by the private sector.

2831 The commission shall also examine the lending practices of the existing public agencies in the

2832 commonwealth that perform lending services. The Massachusetts development finance agency,

2833 the Massachusetts Housing Finance Agency, the Health and Educational Facilities Authority, the

2834 board of the economic stabilization trust, the Massachusetts Small Business Finance Corporation

2835 and any other public authority in the commonwealth that lends money shall cooperate fully with

2836 the commission and shall supply any information reasonably required by the commission to

2837 carry out its charge.

2838 (d) The commission shall hold at least 3 public hearings in distinct geographic regions of

2839 the commonwealth.

2840 (e) The commission shall publish its findings and recommendations, together with drafts

2841 of legislation, if any, necessary to carry those recommendations into effect, in a written report

2842 not later than 1 year after the effective date of this act. The report shall be published on the

2843 official website of the commonwealth, and shall be contemporaneously filed with the house and

2844 senate committees on ways and means and the house and senate chairs of the joint committee on

2845 financial services.

2846 SECTION 145. The Massachusetts office of business development shall within 120 days

2847 of the effective date of this act publish and release a solicitation for a competitive regional

economic development bidding process under section 3K of chapter 23A. 2848 The solicitation shall

2849 seek applications from eligible organizations under said section 3K to act as the

2850 commonwealth’s primary agents for business development in each region of the commonwealth.

2851 The Massachusetts office of business development may implement the bidding process as

2852 a phased, multistep

process that may include one or more of the following prior to the issuance

2853 of a request for proposals:

2854 i. A request for information that would inform the development of a request for

2855 proposals;

2856 ii. A call for solutions that would focus on regional approaches to meet the needs of

2857 specified industry sectors or clusters or locations in the commonwealth;

2858 iii. A request for qualifications that would determine the pool of entities that would be

2859 eligible to apply for funding.

2860 The Massachusetts office of business development shall not initiate the process provided for in

2861 this section until the Massachusetts office of business development promulgates the formula for

2862 contractual reimbursement required in section 3J of chapter 23A.

2863 SECTION 146. Within 90 days of the effective date of this act or at least 180 days

2864 before the expiration of the current contract with the Massachusetts business development

2865 corporation, whichever shall occur earlier, the Massachusetts office of business development

2866 shall initiate a competitive process seeking bidders to administer, either jointly or separately, the

2867 capital access program described in sections 57 and 58 of chapter 23A of the General Laws and

2868 the redevelopment access to capital program described in sections 60 and 61 of said chapter 23A.

Contracts for the administration of the programs described in the preceding 2869 sentence shall be

2870 within the definition of “services,” as defined in section 1 of chapter 12A of the General Laws.

2871 SECTION 147. Sections 6, 7A, 7B and 8 of chapter 324 of the acts of 1987 are hereby

2872 repealed.

2873 SECTION 148. Sections 44 and 45 shall take effect upon the termination of the

2874 Massachusetts office of business development’s current contract with the Massachusetts business

2875 development corporation, without renewal or extension of those contracts.

2876 SECTION 149. Section 88 shall take effect on July 1, 2011.

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