Policy on the Revocation of the Certification of an Enhanced Expansion Project or a
Manufacturing Retention Project.
Adopted and made effective May 25, 2010
MGL 23A Section 3C. (1) The EACC shall administer the economic development incentive program and, in so doing, shall be empowered to exercise the following powers and duties:
(a) promulgate rules and regulations and prescribe procedures to effectuate the purposes of sections three A to three H, inclusive.
(1)The certification of a project may be revoked by the EACC upon:
(a) (1) for a manufacturing retention project, a petition of the municipality or the Director; or
(a) (2) for an enhanced expansion project, a petition of the Director; and
(b) the independent investigation and determination of the EACC that representations made by the business in its project proposal are:
(1) materially at variance with the conduct of the controlling business subsequent to the certification; and
(2) such variance frustrates the public purposes which such certification was intended to advance.
When the actual number of permanent full-time employees employed by the controlling business at an enhanced expansion project or a manufacturing retention project is less than 90% of the number of such permanent full-time employees who were projected to be employed in the project proposal, it shall be deemed a material variance for the purposes of a revocation determination;
(2) In determining whether to revoke a project certification, the EACC may consider whether the amount of the tax benefit that the controlling business is receiving pursuant to the certification is disproportionately high in relation to: (a) the number of permanent full-time jobs that have been created by an enhanced expansion project, or retained by a manufacturing retention project, or (b) other benefits provided by the project to the municipality or the state.
(3) If a business fails to provide the EACC with information requested by it pursuant to 402 CMR 2.14 or otherwise fails to comply with designated reporting procedures, such failure shall be grounds for revoking the certification of such project.
(4) Upon such a revocation, the Commonwealth shall have the ability to recoup the value of any economic benefit received by the controlling business prior or subsequent to such revocation.
(5) Prior to revoking the certification of a project, the EACC shall provide the project proponent with reasonable notice and an opportunity to be heard on the matter. Any hearing provided pursuant to 402 CMR 2.16(5) shall be conducted in a manner directed by the EACC.