Special Edition Murray Mail Senate Passes Job Creation Bills August 10, 2010
	Read this Special Edition Murray Mail to find out what legislation the Senate passed at the end of session
	Dear Friends, The Senate worked hard over the last days of session to pass legislation that is important to you. These bills will bring more businesses into Massachusetts, while allowing existing small businesses to stay open and expand. They will create jobs and boost our local economies. Below I've enclosed the details of these bills - please look them over and see how they will effect you and how they will continue to advance Massachusetts as one of the most progressive states in the country. Sincerely, Terry Murray
	Final Economic Development Bill Promotes Business-Friendly Environment; Sales Tax Holiday Approved Senate Takes Action on Bill to Bring Immediate Health Care Cost Relief to Small Businesses State Legislature Files Expanded Gaming Legislation Crime Bill Passed by Senate, Signed into Law Final Economic Development Bill Promotes Business-Friendly Environment; Sales Tax Holiday Approved In April I introduced a bill to reduce waste in the state's economic development agencies and to create and retain jobs. The Senate led the initiative on this bill, signed into law last Thursday, which includes a sales tax holiday and promotes a business-friendly environment that will help small businesses stay open, expand and create jobs. It will overhaul the state’s network of business development agencies, establishing a streamlined, cohesive model with built-in oversight and transparency to reduce redundancy and waste.  The final, compromise bill also includes a sales tax holiday for August 14 and 15 to help accelerate consumer demand and continue the state’s economic recovery. This bill is about re-organizing, re-focusing and re-committing ourselves to creating jobs and sharpening our competitive edge. It sends all the right signals to businesses that we’re serious about investment and growth here in the Commonwealth. The legislation sets the sales tax holiday for Massachusetts retailers this year for August 14 and 15 to help accelerate consumer demand and continue the state’s economic recovery. The bill includes numerous provisions to promote economic development in the state’s “Gateway Cities,” the group of larger municipalities spread throughout the Commonwealth that offer rich opportunities for economic expansion within existing infrastructure. The bill includes new expedited state permitting rules for projects in such cities, approves a $50-million bond authorization to support the “Growth Districts” initiative, and approves a new housing development incentive program for developments in “Gateway Cities.” The legislation uses the Senate’s plan to create a ‘one-stop shop’ for businesses seeking to expand or locate in Massachusetts by requiring the existing Massachusetts Office of Business Development (MOBD) to contract with regionally-based economic development organizations. These private organizations would act as the primary contact for businesses seeking assistance from the state and perform business prospect management services on behalf of the Commonwealth. MOBD would oversee the efforts of these organizations, provide leads, and share information about state programs and services. The goal is to increase competition among regions for new business to ensure businesses find the best fit in Massachusetts. With MOBD and the regional organizations providing clear direction for accessing economic development services, there will be less confusion about how to access technical assistance, grant and loan programs, and expansion support. The legislation also increases accountability, communication and oversight of state agencies, quasi-publics and state contracts with private organizations engaged in economic development activities. It requires every governor to publish a written economic development policy by December 31 of the year he or she is elected to help the Commonwealth strategically assess economic development goals over the long-term. The legislation also takes the Senate plan to merge organizations tasked with marketing the state nationally and internationally, including the Massachusetts Office of Travel & Tourism, into the newly-created Massachusetts Marketing Partnership. The Partnership will serve as a central marketing organization for the entire state and will be charged with increasing the Commonwealth’s efforts in the areas of tourism and international trade. The Massachusetts Film Office and the Massachusetts Sports Partnership will also be included in the Partnership. Through the creation of the Massachusetts Growth Capital Corporation, a larger number of small businesses will gain access to working capital so that they can continue to grow even in times of tight credit. For those small companies that receive financial assistance from the state, finance and management consulting will be mandatory to help keep companies afloat and prevent job losses. The legislation also requires an economic impact statement to be filed by administrative agencies planning to adopt new regulations that details the cost of the proposed regulations to small businesses before public hearings on those regulations. Additionally, it requires a rolling review of regulations to identify and modify those which prove too costly.  The bill also expands the state pension fund’s investment authority by creating a $25-50 million credit program to support lending to fast-growing small businesses in Massachusetts. Further streamlining the state’s approach to economic development, the Department of Business Development is eliminated within the Executive Office of Housing and Economic Development, allowing MOBD a direct reporting line to the Secretary, and the Massachusetts Health Educational Facilities Authority (HEFA) is merged with MassDevelopment. Several other agencies, including the independent Massachusetts Sports and Entertainment Commission and the Massachusetts Industrial Development Authority, are eliminated, with an estimated savings to taxpayers of $1 million a year. Other provisions of the bill: Improves low-cost access to small claims courts by raising the limit on filings from $2,000, where it has been for many years, to $7,000; Provides a two-year permit extension for development projects struggling with tight credit conditions; Calls for a study of business energy costs, and a study to determine the feasibility of a state-owned bank; Approves new rules clarifying the application of the state’s new combined reporting rules, enacted in 2008, to foreign-owned companies doing business in Massachusetts; Extends the period in which a corporation can carry forward its losses, from the current five-year period to 20 years; Encourages investment in Massachusetts-based start-ups by creating a 3 percent tax rate on capital gains earned on investments in those companies; and Approves new borrowings by the state to capitalize the new Massachusetts Growth Capital Corporation and re-capitalize the Massachusetts Technology Development Corporation. Back to Top Senate Takes Action on Bill to Bring Immediate Health Care Cost Relief to Small Businesses On Saturday July 31 the Senate and House passed legislation that will reduce small business health insurance costs and promote job retention and job creation. The bill reduces premium fluctuations in the market and requires insurers to offer affordable health plans. The conference report, which is based on the bill I sponsored to help relieve the burden placed on small businesses, will be signed into law this afternoon. The legislation delivers an estimated premium relief of at least 10 percent that small businesses can save and reinvest in their operations and workforce. It also establishes standardized transparency measures for provider pricing and annual public reporting to shine a light on the marketplace and collect important financial information for ongoing policy discussions about long-term system reform. It also establishes a Special Commission on Provider Price Reform. I am pleased that we found some solid, common ground between the Senate and House bills to bring much-needed relief to small businesses in the Commonwealth. Small businesses are the main job producers in Massachusetts, and we need to give them the boost they need to stay open and grow as our economic recovery continues. This bill is a good place to start, and will bring immediate results, but we must continue our work on long-term payment reform and cost-control measures. That will be at the top of my agenda next session, and I expect a strong commitment from everyone. Long-term reform is an absolute necessity for the future stability of health care and our economy. The bill requires insurance carriers to file premium rate increases with the Division of Insurance (DOI) 90 days before their effective date. DOI will review proposed premium rates and, for the following two years, may disapprove rates based on the inclusion of excessive administrative costs or surplus margins. The rigorous review process will ensure that small businesses and individuals receive the most efficient product possible. Addressing the issue of market instability, the bill closes existing loopholes in the system that drive up premiums for everyone. By moving to an annual open enrollment period, it ends the so-called “jumpers and dumpers” practice of individuals who purchase coverage only for expensive treatment and then drop the coverage. The bill also controls year-to-year rate volatility that leads to 30- to 40-percent increases in health care premiums for some small businesses. The cost-spiking practice of measuring the age of employees in five-year increments would be eliminated, replaced with a yearly measurement of age to smooth out the annual increases as an employee group ages. Additionally, the legislation provides more affordable health care products to small business employers by requiring carriers in the small group market to offer at least one reduced network plan with premiums 12 percent lower than those for a full network plan. The bill also establishes a pilot program that provides a state enhancement of the federal tax credit program for small businesses that purchase health insurance through the Massachusetts Health Connector and participate in wellness programs. Eligible small businesses that demonstrate participation in a wellness program would receive an additional 5 percent state subsidy for eligible health insurance costs beginning 2011, bringing the total state and federal assistance up to 40 percent of employer health care costs per year. The bill allows for providers to negotiate with insurance carriers about making voluntary contributions back into the system for small business relief. No funding will be transferred to the state. DOI will work with the institutions to ensure that every dollar is targeted to premium relief, with refunds going to small businesses this year. The bill also: Authorizes small businesses to group together and purchase health care plans at lower prices; Prohibits anti-competitive contract provisions between insurance carriers and health providers that restrict product innovation or tie reimbursement rates to those received by other providers; and Reconvenes the “Payment Reform” commission to investigate the rising cost of health care insurance and the impact of reimbursement rates paid by health insurers to providers.  The Commission shall examine policies aimed at enhancing competition, fairness and cost-effectiveness in the health care market through the reduction of reimbursement disparities. The work of the Commission will provide the necessary foundation for future action on this important issue, as highlighted by the work of the Attorney General and the Division of Health Care Finance and Policy. Back to Top State Legislature Files Expanded Gaming Legislation Three Casinos and Slots at Two Venues; Maximizes Immediate Jobs and Local Aid The Massachusetts Legislature passed legislation Saturday July 31 authorizing three casinos as well as two slot venues which would be openly bid upon among the state’s racetracks. The bill will create an estimated 15,000 jobs in the Commonwealth while delivering an estimated $100 million in immediate local aid to cities and towns.  Resort casinos would be required to pay $85 million in licensing fees while also making a minimal capital investment of $600 million. The resort casino tax rate would be 25 percent while the tax rate for racetracks with slots would be 49 percent including a 9 percent assessment to be used for purse assistance to enhance the state’s horse racing industry.                Back to Top Crime Bill Passed by Senate, Signed into Law The Senate and House passed a crime bill Saturday July 31 that will give employers easier access to criminal records and help former offenders who have stayed out of trouble to re-enter the workforce. The bill also cracks down on sex offenses, requiring GPS tracking of homeless sex offenders and reducing the time in which such offenders must verify registration data and appear at local police departments from every 45 days to every 30 days. This bill takes a responsible approach to targeted reforms that improve safety,  reduce unnecessary costs and help boost employment. It also provides important new tools for employers to access the state’s criminal records system. The legislation increases access to the criminal offender record information system (CORI), allowing a greater number of individuals, including employers and landlords, to request records. Availability of felony information is reduced from 15 to 10 years after an inmate’s release and 10 to five years for information on misdemeanor convictions. Information on all convictions for sex offenses, murder and manslaughter remain available for life. Law enforcement also continues to have full access to CORI. Improved accuracy and faster response times are achieved through a new Internet-based system required by the legislation. Other CORI reforms include: Allowing individuals to access their own CORI information and providing for a self-audit process at no fee; Increasing sanctions for the knowing misuse or communication of CORI information; Creating a new offense for using CORI to commit a crime against an individual or engage in harassment of an individual, punishable by imprisonment in jail or house of correction for not more than 1 year or a fine of not more than $5,000 or both; Providing liability protection for employers who use the CORI system if the decision is made within 90 days of obtaining the report and providing law enforcement with increased protections from allegations of improper use of CORI; and Requiring agencies and employers relying on criminal histories from the CORI system to provide copies to the individual. The legislation also gives sheriffs statutory authority to move eligible offenders into pre-trial diversion programs which have been operating successfully for years. It also allows house of correction inmates serving mandatory minimum sentences for non-violent drug-related crimes to qualify for parole after serving half of their sentence. This step toward scaling back mandatory minimum sentences for lesser offenders will help reduce the costly problem of jail overcrowding. The sentencing and supervision improvements in the bill will produce short- and long-term savings by reducing costs associated with incarceration. The annual average cost in Massachusetts to supervise a person is $2,500 while the annual average cost to incarcerate is $43,000.  The bill was signed into law last Friday. Back to Top
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