GOVERNOR PATRICK SIGNS ECONOMIC DEVELOPMENT BILL EXPANDING GROWTH AND
OPPORTUNITY IN THE COMMONWEALTH
Re-files Legislation that Limits the Use of Non-Compete Agreements;
Gives Communities Local Control of Liquor Licenses
BOSTON
– Wednesday, August 13, 2014 – Governor Deval Patrick today signed H.4377 “An
Act To Promote Economic Growth in the Commonwealth,” building on the Patrick
Administration’s successful economic development strategy of investing in
education, innovation and infrastructure. The economic development package
provides new tools and training to ensure the Massachusetts workforce meets the
needs of employers, invests in our Gateway Cities to promote development across
the entire state and provides incentives to create jobs and stimulate the
economy.
Also
on Wednesday, Governor Patrick re-filed legislation that limits the use of
non-compete agreements and adopts the Uniform Trade Secrets Act to ensure that
government acts to retain talented entrepreneurs, supports individual career
growth and encourages the development of new, innovative businesses to drive
future economic growth. The legislation also includes a provision to give local
governments across Massachusetts control over the number of liquor licenses in
their jurisdiction. Placing the authority to approve liquor licenses in the
hands of municipal officials will allow local communities to make responsible
decisions regarding their economic development and growth and free the
Legislature from time-consuming local issues.
“In
important ways, this legislation improves existing tools and provides a few new
ones to continue our strong job growth, and I thank the Legislature for being
so responsive,” said Governor Patrick. “At the same time, we have unfinished
business, so I am filing further legislation today to give innovators and
municipalities all the tools they need to grow jobs and opportunity.”
“An Act To Promote Economic Growth in the Commonwealth,” signed on
Wednesday, bolsters the economic revitalization of the Commonwealth’s Gateway
Cities with $15 million for the Gateway Cities Transformative Development Fund
and encourages the reuse of brownfields in economically distressed areas of
Massachusetts with $10 million in funding.
“This legislation makes many
targeted investments in our emerging industries, like Big Data and advanced
manufacturing, that are necessary to create a competitive environment here in
Massachusetts and grow our status as a leader in the world economy,” said
Senate President Therese Murray. “By capitalizing on our state’s existing and
developing industries, as well as investing in a strong, educated workforce, we
are outlining a path to success for our residents and promoting economic
development throughout the entire Commonwealth.”
“This comprehensive bill will help ensure that residents, businesses and
communities are able to compete and excel in a dynamic economy,” said House
Speaker Robert A. DeLeo. “We’ve made substantial gains in strengthening our
economy and must now focus on broadening the circle of prosperity beyond
Greater Boston to all regions of the Commonwealth. This bill does just that
while preparing future leaders through provisions like MassCAN, a computer
science education partnership and the Talent Pipeline Initiative.”
Building
on a strong record of growth in the state’s world-class innovation economy, the
economic development package also adopts Governor Patrick’s proposal to create
a pilot Global Entrepreneur in Residence Program to retain and attract
entrepreneurs who are growing companies and creating jobs in the state. The
program will be piloted at the University of Massachusetts Boston and the
University of Massachusetts Lowell and will allow qualified, highly skilled,
international students currently in Massachusetts to stay here after graduation
if they are starting or growing a business and contributing to the local
economy.
“This
bill provides significant new support for the Commonwealth’s economic
development strategy,” said Housing and Economic Development Secretary Greg
Bialecki. “Ensuring the long-term economic prosperity of the Commonwealth means
extending growth and opportunity to every corner of the state.”
In
the area of workforce development and training, the Act includes $12 million
for the middle skills job training grant fund to support advanced
manufacturing, mechanical and technical skills at vocational-technical schools
and community colleges. Also, the Workforce Competitiveness Trust Fund will
receive $1.5 million to prepare Massachusetts residents for new jobs in
high-demand occupations, helping close the middle-skills gap and creating a
seamless pathway to employment.
The
economic development legislation also includes a number of initiatives to
expand the Commonwealth’s world class innovation economy including $2 million
for a Big Data Innovation and Workforce Fund to promote the use of big data,
open data and analytics, and $2 million for the Innovation Institute Fund at
the Massachusetts Technology Collaborative (MTC).
The
legislation also creates a $1 million talent pipeline program that will provide
matching grants aimed at increasing technology and innovation internships, and
another $1 million for a start-up mentoring program to connect early-stage
entrepreneurs, technology startups and small business with experienced business
enterprises and capital financing.
A
separate provision increases the Housing Development Incentive Program’s (HDIP)
annual cap from $5 million to $10 million over the next four years, and allows
larger developments to qualify by eliminating the 50-market-rate unit per
project cap. The expansion of the HDIP will provide residents of Gateway Cities
with increased access to market-rate as well as affordable housing.
The
legislation also:
·
Expands on the
Commonwealth’s international tourism and marketing efforts, capitalizing on new
connections overseas, helping to bring more businesses and jobs to
Massachusetts and more tourists to our world class destinations;
·
Increases the
total financing allowed under the Infrastructure Incentive (I-Cubed) program
from $325 to $600 million, and raises the number of allowed I-Cubed projects
within any community from three to eight. The program provides innovative
financing for public infrastructure projects expected to leverage significant
economic investment;
·
Dedicates $3
million to the Housing Preservation and Stabilization Fund, which provides a
flexible method for funding affordable housing for low-income families and
individuals;
·
Establishes a
financial services advisory council to exchange ideas and develop strategies
for business and government to work together to strengthen the Commonwealth’s
financial services industry; and
·
Creates a job
creation incentive under the Economic Development Incentive Program (EDIP),
allowing business to receive a tax credit up to $1,000 per job created, or up
to $5,000 per job created in a Gateway City, so long as the total credit per
project does not exceed $1 million.
Along
with signing the bill, Governor Patrick also included a number of vetoes and
amendments including sections 52, 65 and 97, which propose a new “live theater”
tax credit. This new tax credit does not satisfy the 2012 Tax Expenditure
Commission’s requirement of a clear societal purpose that is most efficiently
met by the proposed tax expenditure, and it is not needed to encourage these
kind of investments. The Inspector General has criticized the lack of
sufficient safeguards in this provision to ensure that the credits are properly
directed.
Governor
Patrick also vetoed Sections 101 and 115, which designate entire municipalities
as an “eligible location” under Chapter 40R. A blanket designation of an entire
town as an “eligible location” conflicts with the goal of Chapter 40R to
encourage communities to create smart growth zoning districts near transit
stations, in areas of concentrated development such as existing town centers
and in other highlight suitable locations.
Governor
Patrick also returned back for amendment two other provisions of the bill
requiring a study of the “angel investor” tax credit and requiring telephone
counseling rather than delaying for two years the requirement for counseling
new mortgage holders.