PETITION OF:

SECTION 1. To provide for certain unanticipated obligations of the commonwealth, to provide for an alteration of purpose for current appropriations, and to meet certain requirements of law, the sums set forth in section 2A are hereby appropriated from the General Fund unless specifically designated otherwise, for the several purposes and subject to the conditions specified in this section, and subject to laws regulating the disbursement of public funds for the fiscal year ending June 30, 2008; provided, that notwithstanding any general or special law to the contrary, appropriations made herein shall not revert and shall be available for expenditure until June 30, 2009. The sums shall be in addition to any amounts previously appropriated and made available for the purposes of these items.

NO SECTION 2.

SECTION 2A.

EXECUTIVE OFFICE OF ADMINISTRATION AND FINANCE

Small Business Capital Access Program

1599-7107. For a capital access reserve to provide loan guarantees to small businesses pursuant to section 57 of chapter 23A of the General Laws........................................................ 5,000,000

EXECUTIVE OFFICE OF ENERGY AND ENVIRONMENTAL AFFAIRS

Office of the Secretary

2030-1005 For an independent outside study to investigate the energy needs of the life science industry throughout the state; provided that the study shall examine how the life science industry can become more energy efficient, environmentally friendly, and cost effective including, but not limited to: (i) electricity aggregation, (ii) on site renewable generation, (iii) demand side management, including demand response, and (iv) cogeneration; and provided further, that the secretary shall submit a report detailing his findings together with legislation, if any, to the chairs of the house and senate committees on ways and means, the chairs of the joint committee on economic development and emerging technologies and the chairs of the joint committee on telecommunications, utilities and energy no later than March 31, 2009......................................................... $100,000

EXECUTIVE OFFICE OF TRANSPORTATION AND PUBLIC WORKS

Office of the Secretary

6000-0400 For an independent outside study to investigate the water infrastructure needs of the life science industry throughout the state; provided that the study shall include, but not be limited to, an examination of: (i) the state water supply, (ii) state waste water infrastructure, and (iii) the life science industry demand for additional water resources; and provided further, that the secretary shall submit a report detailing his findings together with legislation, if any, to the chairs of the house and senate committees on ways and means, the chairs of the joint committee on economic development and emerging technologies and the chairs of the joint committee on telecommunications, utilities and energy no later than March 31, 2009...................... $100,000

SECTION 2B. To provide for a program of infrastructure development, improvements, and various capital investments the sums set forth in section 2B for the several purposes and subject to the conditions specified in this act, are hereby made available, subject to the laws regulating the disbursement of public funds and approval thereof.

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE

Office of the Secretary

1100-8000 For the Massachusetts Opportunity Relocation and Expansion Jobs Capital Program for costs related to site remediation, preparation and ancillary infrastructure improvement projects; provided that the local executive government body and a for-profit entity involved in the project shall jointly submit a request for funding to the secretary of the executive office of housing and economic development. The requests to the secretary shall include sufficient documentation, including but not limited to, a project plan with specific goals and objectives that fully documents the proposed project and either that (i) the businesses associated with the project will generate substantial sales from outside the commonwealth and will result in the creation of a net increase of at least 100 new permanent full-time jobs in Massachusetts within 24 months upon receipt of a grant and commits that the jobs are to be maintained herein for at least a 5 year period or (ii) documents an economic benefit that the secretary determines is sufficiently exceptional; provided, however, that not less than $12,900,000 shall be used to assist in water and waste water infrastructure improvements for the proposed cell culture manufacturing facility and purification plant containing office and lab facilities in the town of Framingham; and provided further, that $12,600,000 shall be used to assist for the construction of supporting infrastructure, comprised of local arterial and connector roads for the I-93 interchange in the towns of Andover, Wilmington, and Tewksbury. Annually, on or before December 31, the secretary shall file a written report with the chairs of the house and senate committees on ways and means and the chairs of the joint committee on economic development and emerging technologies, which shall include detailed descriptions of any infrastructure improvement projects funded pursuant to this program and all funds expended for this purpose...................................................... $25,500,000

EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT

Massachusetts Life Sciences Center

7002-0015 For the Massachusetts Life Sciences Investment Fund established pursuant to section 6 of chapter 23I of the General Laws; provided that $120,000,000 shall be deposited in the Massachusetts Life Sciences Opportunity Relocation and Expansion Jobs Capital Program Fund established pursuant to section 9 of said chapter 23I of the General Laws; provided, however, that not less than $6,500,000 shall be expended for the design, construction, and development for a life science incubator building at the William Stanley Business Park in the city of Pittsfield and not less than $10,000,000 shall be expended for the nano and biomanufacturing facility at the University of Massachusetts Lowell and $5,000,000 shall be expended for the Pioneer Valley Life Science Institute; provided further, that $45,000,000 shall be deposited in the Massachusetts Life Sciences Bridge Loan Holding Fund established pursuant to section 44 of chapter 23G of the General Laws; provided, however, that within 10 days of said transfer the Massachusetts development finance agency shall transfer said $45,000,000 to the Massachusetts Life Sciences Bridge Loan Fund established pursuant to section 10 of said chapter 23I of the General Laws; provided further, that $30,000,000 shall be deposited in the Regional Technology and Innovation Centers Capital Fund established pursuant to section 11 of said chapter 23I of the General Laws; provided further, that $30,000,000 shall be deposited in the Massachusetts Life Sciences Education Fund established pursuant to section 12 of said chapter 23I of the General Laws; provided further, that $49,500,000 shall be expended for the design, construction, development, renovation, expansion and related infrastructure improvements for a science and innovation center to be constructed at the Massachusetts College of Liberal Arts; provided, however, that said funds shall not be used for faculty salaries; provided further, that $90,000,000 shall be expended for the design, construction, development and related infrastructure improvements for an advanced therapeutics cluster to be constructed at the University of Massachusetts Medical School in Worcester, which shall be named the Albert “Albie” Sherman Center, and shall include an RNAi Institute, stem cell biology cluster and gene therapy cluster; provided, however, that said funds shall not be used for faculty salaries; provided further, that $95,000,000 shall be expended for the design, construction, development and related infrastructure improvements of a life science laboratory research center complex including a laboratory research facility with state-of-the-art equipment offering research and development facilities for collaboration with industry partners to develop methods and technologies that can be translated into new commercial services and products at the University of Massachusetts at Amherst; provided, however, that said funds shall not be used for faculty salaries; provided further, that funds appropriated herein for the design, construction, development and related infrastructure improvements for an advanced therapeutics cluster to be constructed at the University of Massachusetts Medical School in Worcester and for the design, construction, development and related infrastructure improvements of a life science laboratory research center complex at the University of Massachusetts at Amherst shall be transferred to the University of Massachusetts Building Authority for these infrastructure improvements and design and construction; provided further, that no funds shall be transferred from this item for a phase of construction until the secretary of administration and finance certifies in writing to the board of the Massachusetts Life Sciences Center established pursuant to section 3 of chapter 23I of the General Laws and to the house and senate committees on ways and means that all sources of funding for that phase of the facility have been committed and are available as necessary for commencement of design and construction; provided further, that said written certification shall include copies of all business plans, letters of financial commitment and other documentation as said secretary and said board deem necessary to certify that all other sources of funding have been secured; provided further, that the University of Massachusetts Building Authority shall submit to the clerks of the house and senate a report which shall include the following: (1) a detailed list of all private donors and amounts donated for each facility, (2) a plan for design, construction, operation and maintenance and all associated costs and revenues of the facility, including the projected timeline for the completion of all phases of said projects, and (3) a description of proposed title to any and all assets associated with each facility; provided further, that said secretary and said board shall not expend any funds until such report is filed with the house and senate committees on ways and means; provided further, that notwithstanding any general or special law to the contrary in the construction and financing of said advanced therapeutics cluster and said life science laboratory research center complex, said authority may use an alternative mode of procurement of design and construction, including but not limited to, sequential construction management, turnkey, design/build procurement and the phasing of such procurement, including, but not limited to, approval of design and construction stages as separate for combined phases; provided further, that said building authority shall require the assurance of labor harmony during all phases of development, including construction, reconstruction and capital and routine maintenance and shall provide adequate remedies to address the failure to maintain labor harmony which shall include, but not be limited to, assessment of liquidated damages and contract termination; and provided further, that the payment of prevailing wages, in accordance with sections 26 to 27F, inclusive, of chapter 149 of the General Laws, shall be required for all phases of said projects; and provided further, that $11,400,000 shall be expended as a grant to the University of Massachusetts at Dartmouth for the acquisition of land pursuant to section 26 of this act; provided further, that not less than $2,500,000 shall be expended for the purpose of establishing a technology investment program, which shall be developed and administered by the executive office of health and human services, for community hospitals, community health centers and visiting nurse associations for the acquisition or operating costs of electronic medical records and computerized physician order entry systems with a $500,000 individual provider limit per grant round....................... $474,500,000

SECTION 3. Chapter 23G of the General Laws is hereby amended by adding the following section:-

Section 44. There is hereby established within the agency a separate fund to be known as the Massachusetts Life Sciences Bridge Loan Holding Fund, hereinafter in this section referred to as the fund. The Agency shall hold the fund in an account separate from other funds or accounts. There shall be credited to the fund any revenue from appropriations or other monies authorized by the general court and specifically designated to be credited thereto. Monies deposited in the fund that are unexpended at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year.

SECTION 4. Chapter 23I of the General Laws is hereby amended by striking out section 2, as appearing in section 24 of chapter 123 of the acts of 2006, and inserting in place thereof the following section:-

Section 2. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Board”, the board of directors of the Massachusetts Life Sciences Center. “Center”', the Massachusetts Life Sciences Center established pursuant to section 3.

“Company”, a business corporation, partnership, firm, unincorporated association or other entity engaged or proposing to engage in economic activity within the commonwealth, and any affiliate thereof, which is, or the members of which are, subject to taxation under chapter 62, 63, 64H or 64I.

“Department”, the department of revenue established pursuant to section 1 of chapter 14.

“Directors”, the board of directors of the Massachusetts Life Sciences Center.

“Eligible new job”, shall be deemed created in the commonwealth on the first day for which Massachusetts personal income tax withholding is required in connection with the compensation paid to the employee employed by a life sciences company or the first day for which Massachusetts estimated tax payments are payable by a partner of a partnership constituting a life sciences company; provided, however, that a job shall not be considered an eligible new job pursuant to this chapter if the job replaces a job elsewhere in the commonwealth; provided further, that the term "eligible new job" may be more fully defined by rules, regulations or guidelines promulgated by the center pursuant to section 5, which may include, among other things, retained jobs.

“Enterprise”, a small business, as defined in chapter 23A or chapter 40F, which has its principal place of business in the commonwealth and is, or proposes to be, engaged in research and development or manufacturing in the field of life sciences.

“Equity investment”, (a) a share in a life sciences company certified pursuant to section 5, whether or not transferable or denominated stock, or similar security; (b) interest of a limited partner in a limited partnership; or (c) warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share, security, or interest of a kind specified in subparagraph (a) or (b); provided, however, that when making an equity investment in an enterprise pursuant to section 7 the center shall receive no less than 3 percent of the equity in said enterprise.

“Federal agency”, the United States of America, the President of the United States of America, and any department of or corporation, agency or instrumentality heretofore or hereafter created, designated or established by the United States of America.

“Life sciences”, basic and applied sciences, including the research and applications from core scientific fields such as biology, chemistry, engineering, information technology, mathematics and physics that may be integrated to expand the understanding of human physiology and have the potential to lead to medical advances or therapeutic applications.

“Life sciences company”, a business corporation, partnership, firm, unincorporated association or other entity engaged in life sciences research, development, manufacturing, or commercialization in the commonwealth, and any affiliate thereof, which is, or the members of which are, subject to taxation under chapter 62, 63, 64H or 64I.

“Life sciences research”, research in the life sciences, including, but not limited to, agricultural biotechnology, biogenerics, bioinformatics, biomedical engineering, biotechnology, biopharmaceuticals, chemical synthesis, diagnostics, genomics, image analysis, medical devices, nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research and veterinary science.

“New revenue”, revenue derived from a life sciences company by the creation of any eligible new jobs or by new commercial activity that would otherwise not have taken place in the commonwealth as each may be more fully defined by any rules, regulations or guidelines promulgated by the center pursuant to section 5.

“Non-profit organization”, an organization exempt from taxation pursuant to 26 U.S.C. 501(c)(3).

“Person”, any natural or corporate person, including bodies politic and corporate, public departments, offices, agencies, authorities and political subdivisions of the commonwealth, corporations, trusts, societies, associations, and partnerships and subordinate instrumentalities of any one or more political subdivisions of the commonwealth.

“Program”, the commonwealth life sciences investment program established pursuant to section 5.

“Professional investor”, any bank, bank holding company, savings institution, trust company, insurance company, investment company registered under the Federal Investment Company Act of 1940, pension or profit-sharing trust or other financial institution or institutional buyer, licensee under the Federal Small Business Investment Act of 1958, 15 U.S.C. §638 et. seq., or any person, partnership or other entity of whose resources a substantial amount is dedicated to investing in securities or debt instruments and whose net worth exceeds $250,000.

“Public body”, the commonwealth, and any body politic and corporate of the commonwealth, including any political subdivision or instrumentality thereof, which is empowered to issue bonds secured by a pledge of revenues or other special funds or assets, including any municipality or district for which the issuance of debt is governed or limited by the provisions of chapter 44.

“Qualified security”, any note, stock, treasury stock bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, preorganization certificate or subscription, transferable share, investment contract, certificate of deposit for a security, certificate of interest or participation in a patent or application therefor, or in royalty or other payments under such a patent or application, or, in general, any interest or instrument commonly known as a “security” or any certificate for, receipt for, guarantee of, or option, warrant or right to subscribe to or purchase any of the foregoing, specifically including debt of and partnership interest in, as a general or limited partner, any general or limited liability partnership organized under the laws of the commonwealth, and debt of and membership interest in any limited liability company organized under the laws of the commonwealth.

“Revenue”', any receipts, fees, rentals or other payments or income received or to be received on account of obligations to the center including, without limitation, income on account of the leasing, mortgaging, sale or other disposition of a project or proceeds of a loan made by the center in connection with any project and also including amounts in reserves or held in other funds or accounts established in connection with the issuance of bonds and the proceeds of any investments thereof, proceeds of foreclosure and any other fees, charges or other income received or receivable by the center.

“Seed capital”, financing that is provided for the development, refinement and commercialization of a product or process and other working capital needs.

“Taxpayer”, a life sciences company or person subject to the taxes imposed by chapter 62, 63, 64H or 64I.

“Vocational technical school”, shall mean the Assabet Valley Regional Vocational School District; Bay Path Regional Vocational Technical High School; Blackstone Valley Regional Vocational Technical High School; Bristol County Agricultural High School; Bristol-Plymouth Regional Technical School District; Blue Hills Regional Technical High School; Cape Cod Regional Technical High School; Chicopee Comprehensive High School; Newton North High School, Putnam Vocational Technical School, Westfield Vocational High School; Heath Careers Academy in Boston; Community Academy of Science and Health in Boston; Urban Science Academy in Boston; Brighton High School in Boston; Diman Regional Vocational Technical High School; Franklin County Technical School; Essex Agricultural and Technical Regional High School; Greater Lawrence Technical School; Greater Lowell Technical High School; Greater New Bedford Regional Vocational Technical High School; Center for Technical Education at Leominster High School; J. P. Keefe Technical School; Lower Pioneer Valley Career and Technical Education Center; Lynn Vocational Technical Institute; Madison Park Technical Vocational High School; Minuteman Technical High School; McCann Technical School; Montachusett Regional Vocational Technical School; Nashoba Valley Technical High School; Norfolk County Agricultural High School; Northeast Metropolitan Regional Vocational School; North Shore Technical High School; Old Colony Regional Vocational Technical High School; Pathfinder Regional Vocational Technical High School; Rindge School of Technical Arts; Shawsheen Valley Technical High School; South Shore Regional Vocational Technical High School District; Southeastern Regional Vocational Technical High School; Smith Vocational and Agricultural High School; Silver Lake Senior High School; Tantasqua Technical School; TriCounty Regional Vocational Technical School District; Upper Cape Cod Regional Technical School; William J. Dean Technical High School; Whittier Regional Vocational Technical High School; or the Worcester Technical High School.

SECTION 5. Section 3 of Chapter 23I, as so appearing, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:—

(b) The center shall be governed and its corporate powers exercised by a board of directors consisting of the secretary of the executive office of administration and finance or his designee, the secretary of the executive office of housing and economic development or his designee, the president of the University of Massachusetts or his designee, and 6 members who shall be appointed by the governor, 1 of whom shall be a physician licensed to practice medicine in the commonwealth and affiliated with an academic medical center, 1 of whom shall be a chief executive officer of a Massachusetts based life sciences corporation which is a member of the Life Sciences Collaborative, 1 of whom shall be a researcher involved in the commercialization of biotechnology, pharmaceuticals or medical diagnostic products and 1 of whom shall be a venture capitalist with significant experience in the life sciences sector, 1 of whom shall be a member of the Massachusetts Biotechnology Council’s board of directors, and 1 of whom shall be the CEO of a company engaged in the manufacture of life sciences products or his designee. Each appointed member shall serve a term of 5 years. The secretary of the executive office of administration and finance and the secretary of the executive office of housing and economic development shall serve as co-chairs of the board. Any person appointed to fill a vacancy in the office of a member of the board shall be appointed in a like manner and shall serve for only the unexpired term of such member. Any member shall be eligible for reappointment. Any member may be removed from his appointment by the governor for cause.

SECTION 6. The first sentence of subsection (c) of said section 3 of said chapter 23I, as so appearing, is hereby amended by striking out the word “Three” and inserting in place thereof the following word:- Four

SECTION 7. The first sentence of subsection (g) of said section 3 of said chapter 23I, as so appearing, is hereby amended by striking out the word “chairperson” and inserting in place thereof the following word:- treasurer

SECTION 8. Said section 3 of said chapter 23I, as so appearing, is hereby further amended by adding the following subsection:-

(m) The board shall be advised by a 5-member regional advisory committee, whose members shall consist of the executive directors of the 5 regional technology and innovation centers established pursuant to section 13.

SECTION 9. Clause (15) of section 4 of said chapter 23I, as so appearing, is hereby amended by striking out the words “all as provided in section 8”.

SECTION 10. Said section 4 of said chapter 23I, as so appearing, is hereby further amended by inserting after the word “purposes” the following words:- ; provided however, that all applications shall be reviewed by the regional technology and innovation centers, established pursuant to section 13, prior to receipt by the center;

(30) to operate as a licensed small business investment corporation pursuant to the provisions of the Small Business Investment Act of 1958, 15 U.S.C. § 661 et seq., as amended from time to time; provided, however, that as an alternative, the board may establish a subsidiary corporation to operate as a licensed small business investment corporation pursuant to said Small Business Investment Act of 1958, 15 U.S.C. § 661 et seq., and to make investments in qualified securities of enterprises through such subsidiary;

(31) to track and report to the general court on federal initiatives that have an impact on life sciences companies doing business in the commonwealth;

(32) to create awards programs to acknowledge successful companies, public and private institutions and programs in industry-specific areas, as determined by the center;

(33) to promulgate a code of ethics to address collaborative state and business research activities.

SECTION 11. Said chapter 23I is hereby further amended by striking out sections 5 to 8, inclusive, as so appearing, and inserting in place thereof the following 14 sections:-

Section 5. (a) There shall be established a commonwealth life sciences investment program which shall be administered by the center. The purpose of the program shall be to expand life sciences related employment opportunities in the commonwealth by supporting and stimulating research and manufacturing in the life sciences. Life sciences companies certified pursuant to subsection (b) shall be eligible for participation in the program.

(b)(1) The center shall, upon a majority vote of the board, certify a life sciences company as a commonwealth certified life sciences company upon: (i) the life sciences company agreeing to establish or maintain its United States corporate headquarters in the commonwealth; (ii) the life sciences company agreeing to create a fixed amount of eligible new jobs as determined by the center; provided, however, that said eligible new jobs shall be in one of the following areas: research and development, commercial operations or manufacturing; or (iii) the life sciences company agreeing to generate new state tax revenue by a percentage or an amount as determined by the center.

(2) The center may, upon a majority vote of the board, certify a life sciences company as a commonwealth certified life sciences company pursuant to the rules, regulations or guidelines promulgated pursuant to subsection (e); provided, however, that the center shall make no such certification unless: (i) the center finds that said certification is such that a benefit to the economy of the commonwealth may reasonably be expected therefrom; and provided further, that in weighing the benefit to the economy of the commonwealth the center shall consider the following: (a) the appropriateness of any proposed certification; (b) whether the life sciences company has sufficient business contacts with the commonwealth as evidenced by its business activity within the commonwealth including, but not limited to, the number of full time employees employed in the commonwealth; (c) whether the life sciences company has significant potential to expand life sciences related employment opportunities in the commonwealth; (d) the life sciences company’s potential to enhance technological advancements in the life sciences; (e) the life sciences company’s potential to offer a breakthrough medical treatment for a particular disease, or medical condition; (f) the life sciences company’s potential for leveraging additional funding, or attracting additional resources to the commonwealth; (g) the life sciences company’s potential to stimulate life sciences manufacturing in the commonwealth; and (h) evidence of potential royalty income and contractual means to recapture such income for the purposes of this chapter, as the center considers appropriate.

(c) A commonwealth certified life sciences company may, upon a majority vote of the board, be eligible for the following benefits which shall be awarded by the board on a competitive basis: (1) participation in the life sciences tax incentive program established pursuant to subsection (d); (2) grants, loans or other investments from the Massachusetts Life Sciences Investment Fund established pursuant to section 6; (3) equity investments from the Dr. Craig C. Mello Small Business Equity Investment Fund established pursuant to section 7; (4) grants from the Massachusetts Life Sciences Opportunity Relocation and Expansion Jobs Capital Program Fund established pursuant to section 9; (5) grants, loans or other investments from the Massachusetts Life Sciences Bridge Loan Fund established pursuant to section 10; (6) grants from the Regional Technology and Innovation Center Fund established pursuant to section 11; (7) assistance from the regional technology and innovation centers established pursuant to section 13; (8) assistance from the center in obtaining designation as a certified project in an economic opportunity area pursuant to section 3F of chapter 23A; (9) assistance from the center in accessing economic incentive programs within the Massachusetts office of business development, including assistance in accessing the technical, human, financial, training, educational and site-finding resources necessary to expand or locate in Massachusetts; (10) assistance from the center in obtaining federal grants; (11) assistance from the center in facilitating clinical trials where feasible; (12) preference for partnership with state universities for basic research; (13) preference for receipt of funding for life science job training programs administered by the center in consultation with the department of labor and workforce development; and (14) preference for pre-permitted industrial land as identified by the Massachusetts development finance agency.

(d) There shall be a life sciences tax incentive program. The department, in consultation with the center, may annually authorize incentives, including incentives carried forward, refunded or transferred, pursuant to subsection (m) of section 6 of chapter 62, subsection (n) of said section 6 of said chapter 62, paragraph 17 of section 30 of chapter 63, section 31M of said chapter 63, paragraph 6 of subsection (f) of section 38 of said chapter 63, the fourth paragraph of section 38C of said chapter 63, subsection (j) of section 38M of chapter 63, section 38U of said chapter 63, section 38V of said chapter 63, the third paragraph of section 42B of said chapter 63, and subsection (xx) of section 6 of chapter 64H in a cumulative amount, including the current year cost of incentives allowed in previous years, not to exceed $25,000,000 annually; provided, further, that the department may in consultation with the board, limit any incentive or incentives to a specific dollar amount or time duration, or in any other manner deemed appropriate by the department; provided, however, that the department shall only allocate said incentives among commonwealth certified life sciences companies certified by the board pursuant to subsection (b) and awarded said tax incentives by the board pursuant to subsection (c).

(e) Certification granted pursuant to subsection (b) shall be valid for the calendar year in which said certification was granted. Life sciences companies certified pursuant to subsection (b) may, upon a majority vote of the board, be eligible for recertification in subsequent years; provided, however, that the board may withhold recertification upon finding that a life sciences company has failed to satisfy the requirements of its initial certification as determined by the board.

(f) The board, in consultation with the executive office of administration and finance and the executive office of housing and economic development, shall promulgate rules, regulations or guidelines relative to the administration and enforcement of this section.

Section 6. (a) There is hereby established and placed within the center a fund to be known as the Massachusetts Life Sciences Investment Fund, hereinafter in this section referred to as the fund, to be held by the center separate and apart from its other funds, to finance the activities of the center. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans, royalties or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(b) The center shall invest and reinvest the fund and the income thereof, except as hereinafter provided, only as follows: (1) in the making of qualified investments approved by the board; (2) in defraying the ordinary and necessary expenses of administration and operation associated with the center; provided, however, that said administrative and operational expenses shall not exceed 10 per cent of the maximum amount authorized to be expended from the fund in a fiscal year; (3) in the investment of any funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth; (4) for the payment of binding obligations associated with such qualified investments which are secured by the fund as the same become payable; and (5) for the payment of principal or interest on qualified investments secured by the fund or the payment of any redemption premium required to be paid when such qualified investments are redeemed prior to maturity; provided, however, that monies in the fund shall not be withdrawn at any time in such an amount as would reduce the amount of the fund to less than the minimum requirement thereof established by the board, except for the purpose of paying binding obligations associated with qualified investments which are secured by the fund as the same become payable.

(c) The fund shall be held and applied by the center, subject to the approval of the board, to make qualified investments, grants, research and other funding, and loans, designed to advance the following public purposes: (1) to stimulate increased financing for the expansion of research and development in the area of life sciences research in the commonwealth by leveraging private financing for highly productive state-of-the-art research and development facilities, equipment and instrumentation and by providing financing related thereto including, without limitation, financing of the construction or expansion of such new facilities; (2) to make targeted investments, including research funding, and funding for the development of devices, drugs or therapeutics in the area of life sciences research and to spur manufacturing activities for new or existing advanced technologies and life sciences research in the commonwealth; (3) to make matching grants to universities, colleges, public instrumentalities, companies and other entities to induce the federal government, industry and other grant-funding sources to fund the expansion of research and development in the areas of life sciences research in the commonwealth, and to thereby serve to increase and strengthen the commercial and industrial base of the commonwealth and the economic development and employment opportunities related thereto; (4) to provide bridge financing to universities, colleges, public instrumentalities, companies and other entities in anticipation of the receipt of grants of the type described in clause (2) awarded or to be awarded by the federal government, industry or other sources; (5) to provide fellowships and grants; (6) to provide work force training grants to prepare individuals for life sciences careers; and (7) to otherwise further the public purposes set forth herein.

The center shall make no such qualified investment pursuant to clause (1) of subsection (b) unless: (1) said investment has been approved by a majority vote of the board; (2) the recipient is a life sciences company certified pursuant to section 5; (3) the center finds that, to the extent possible, said qualified investment is such that a definite benefit to the economy of the commonwealth may reasonably be expected therefrom; provided, further, that, in evaluating any request or application for funding, the center shall consider the following: (i) the appropriateness of any proposed project; (ii) whether the project has significant potential to expand life sciences related employment opportunities in the commonwealth; (iii) the project’s potential to enhance technological advancements in the life sciences; (iv) the project’s potential to offer a breakthrough medical treatment for a particular disease, or medical condition; (v) the project’s potential for leveraging additional funding, or attracting resources to the commonwealth; (vi) the project’s potential to stimulate life sciences manufacturing in the commonwealth; and (vii) evidence of potential royalty income and contractual means to recapture such income for the purposes of this chapter, as the center considers appropriate; and (4) said qualified investment is in conformity with rules adopted by the center and approved by the board.

Said rules shall also set the terms and conditions for investments which are to constitute qualified investments, which may include, without limitation, loans, guarantees, loan insurance or reinsurance, equity investments, grants made only pursuant to clause (3) of subsection (c), or other financing or credit enhancing devices, as made by the center directly or on its own behalf or in conjunction with other public instrumentalities, or private institutions, or the federal government; provided further, that said rules and regulations shall provide that each such qualified investment made pursuant to clauses (1) and (2) of said subsection (c) shall involve a transaction with the participation of at least one at-risk private party.

Said rules shall, in addition, set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make investment determinations, safeguard the fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified investments, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified investments; provided, further that said rules shall provide for negotiated intellectual property agreements between the center and each recipient of a qualified investment which shall include the terms and conditions by which the fund’s support thereof could be reduced or withdrawn.

(d) The center may solicit investments by private institutions or investors in the activities of the fund and may reach agreements with such private institutions or investors regarding the terms of any such investments including, without limitation, the rights of such investors to participate in the income or appropriation of the fund. In furtherance of the objective of securing investments by private institutions or investors in the activities of the fund as set forth in the preceding sentence, the center may develop a proposal relative to the creation of a separate investment entity which would allow for the commingling of the resources of the fund with the maximum participation by such private institutions or investors in a manner which is consistent with the public purpose of the fund and under terms and conditions calculated to protect and preserve the assets of the fund.

(e) Copies of the approved rules, and any modifications thereto, shall be submitted to the chairs of the house and senate committees on ways and means, the chairs of the joint committee on economic development and emerging technologies, and the clerks of the house of representatives and senate.

(f) Qualified investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Massachusetts Life Sciences Investment Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

(g) The center shall not at any time make expenditure from or commitment of the assets of the fund, including, without limitation, the making of qualified investments secured by the fund, if following the making of said qualified investment, the amount of the fund shall be less than the minimum requirement established by the board.

Section 7. (a) There is hereby established and placed within the center a fund to be known as the Dr. Craig C. Mello Small Business Equity Investment Fund, hereinafter in this section referred to as the fund, to be held by the center separate and apart from its other funds. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans, royalties or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(b) The center shall invest and reinvest the fund and the income thereof, except as hereinafter provided, only as follows: (1) in the making of qualified equity investments pursuant to subsection (c); (2) in defraying the ordinary and necessary expenses of administration and operation associated with the fund; provided, however, that said administrative and operational expenses shall not exceed 10 per cent of the total maximum amount authorized to be expended from the fund in a fiscal year; (3) in the investment of any funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth; (4) for the payment of binding obligations associated with such qualified investments which are secured by the fund as the same become payable; and (5) for the payment of principal or interest on qualified investments secured by the fund or the payment of any redemption premium required to be paid when such qualified investments are redeemed prior to maturity; provided, however, that monies in the fund shall not be withdrawn at any time in such an amount as would reduce the amount of the fund to less than the minimum requirement thereof established by the board, except for the purpose of paying binding obligations associated with qualified investments which are secured by the fund as the same become payable.

(c) The fund shall be held and applied by the center to make qualified equity investments in enterprises seeking to raise seed capital; provided, however, that said qualified equity investments shall not exceed $250,000 in any one enterprise or $4,000,000 in the aggregate in any one fiscal year; and provided further, that the center shall make no such qualified equity investments unless: (1) said investment has been approved by a majority vote of the board; (2) the recipient is a life sciences company certified pursuant to section 5; (3) the center finds that, to the extent possible, said qualified equity investment is such that a definite benefit to the economy of the commonwealth may reasonably be expected therefrom; provided, further, that, in evaluating any request or application for funding, the center shall consider the following: (i) the proceeds of the equity investment will only be used to cover the seed capital needs of the enterprise except as hereinafter authorized; (ii) the enterprise has a reasonable chance of success; (iii) center participation is necessary to the success of the enterprise because funding for the enterprise is unavailable in the traditional capital markets or contingent upon matching funds, or because funding has been offered on terms that would substantially hinder the success of the enterprise; (iv) the enterprise has the reasonable potential to create a substantial amount of primary employment within the commonwealth; (v) the principals of the enterprise have already made or are prepared to make a substantial financial and time commitment to the enterprise; (vi) the securities to be purchased are qualified securities; (vii) there is a reasonable possibility that the center will at a minimum recoup its initial investment; (viii) binding commitments have been made to the center by the enterprise for adequate reporting of financial data to the center, which shall include a requirement for an annual or other periodic audit of the books of the enterprise, and for such control on the part of the center as the board shall consider prudent over the management of the enterprise, so as to protect the investment of the center, including, in the discretion of the board and without limitation, a right to access financial and other records of the enterprise; and (ix) a reasonable effort has been made to find a professional investor to invest in the enterprise and that such effort was unsuccessful; and (4) said qualified equity investment is in conformity with rules adopted by the center and approved by the board.

Said rules shall also set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make investment determinations, safeguard the fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified equity investments, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified equity investments; provided further, that said rules shall provide that each recipient of a qualified investment shall be required to pay a fee as a condition of such receipt, which fee may take the form of points, an interest rate premium or a contribution of warrants or other form of equity or consideration to the fund; and provided, further, that said rules shall provide for negotiated agreements between the center and each recipient of a qualified investment regarding the terms and conditions by which the fund’s support thereof could be reduced or withdrawn.

(f) Qualified equity investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Dr. Craig C. Mello Small Business Equity Investment Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

(g) The center shall not at any time make expenditure from or commitment of the assets of the fund, including, without limitation, the making of qualified equity investments secured by the fund, if following the making of said qualified equity investment, the amount of the fund shall be less than the minimum requirement established by the board.

Section 8. (a) There shall be established and placed within the center a fund to be known as the Dr. Judah Folkman Higher Education Grant Fund, hereinafter in this section referred to as the fund, to be held by the center separate and apart from its other funds. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans, royalties or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(b) The center shall invest and reinvest the fund and the income thereof, except as hereinafter provided, only as follows: (1) in the making of qualified grants pursuant to subsection (c); (2) in defraying the ordinary and necessary expenses of administration and operation associated with the fund; provided, however, that said administrative and operational expenses shall not exceed 10 per cent of the maximum amount authorized to be expended from the fund in a fiscal year; (3) in the investment of any funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth; (4) for the payment of binding obligations associated with such qualified investments which are secured by the fund as the same become payable; and (5) for the payment of principal or interest on qualified investments secured by the fund or the payment of any redemption premium required to be paid when such qualified investments are redeemed prior to maturity; provided, however, that monies in the fund shall not be withdrawn at any time in such an amount as would reduce the amount of the fund to less than the minimum requirement thereof established by the center, except for the purpose of paying binding obligations associated with qualified investments which are secured by the fund as the same become payable.

(c) The fund shall be held and applied by the center to make qualified grants to graduate level and doctorate students and post-doctoral fellows studying or employed in the area of the life sciences for living expenses; provided, however, that the aggregate amount of said qualified grants shall not exceed $3,000,000 in any one fiscal year; and provided further, that the center shall make no such qualified grants unless said grant has been approved by a majority vote of the board. Grants awarded from the fund shall, in addition to any restrictions adopted by the center, be awarded in $5,000 increments not to exceed $15,000 annually per recipient and further restricted as follows: (1) recipients shall be enrolled in a graduate or doctorate level program or working as a postdoctoral fellow at a college, university or an academic medical center in the commonwealth; (2) recipients shall be residents of the commonwealth; and (3) the annual total household income of a recipient shall not exceed $30,000. The center shall make no such qualified grant pursuant to said clause (1) of said subsection (b) unless such qualified grant is in conformity with rules adopted by the center and approved by the board.

Said rules shall also set the terms and conditions for grants which are to constitute qualified grants and shall set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make grant determinations, safeguard the fund, oversee the progress of qualified grants, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified grants.

(f) Qualified grants and investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Dr. Judah Folkman Higher Education Grant Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

(g) The center shall not at any time make expenditure from or commitment of the assets of the fund, including, without limitation, the making of qualified grants or investments secured by the fund, if following the making of said qualified grant or investment, the amount of the fund shall be less than the minimum requirement established by the board.

Section 9. (a) There is hereby established and placed within the center a fund to be known as the Massachusetts Life Sciences Opportunity Relocation and Expansion Jobs Capital Program Fund, hereinafter referred to in this section as the fund, to be held by the center separate and apart from its other funds. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans, royalties or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(c) The fund shall be held and applied by the center to make qualified grants to municipalities for site remediation, preparation and ancillary infrastructure improvement projects related to life sciences development; provided, however, that said qualified grants shall not exceed $12,000,000 in any one fiscal year; and provided further, that the center shall make no such qualified grants unless: (1) said investment has been approved by a majority vote of the board; (2) the life sciences company involved in the project is certified pursuant to section 5; (3) the local executive government body and the life sciences company involved in the project jointly submit a request for funding to the center; provided further, that said request shall include sufficient documentation including, but not limited to, a project plan with specific goals and objectives that fully documents the life sciences company involved in the proposed project: (i) will generate substantial sales from outside the commonwealth and will result in the creation of new jobs in the commonwealth within 24 months upon receipt of a grant and commits that said new jobs are to be maintained herein for at least a 5 year period; or (ii) documents an economic benefit that the board determines is sufficiently exceptional; (4) the center finds that, to the extent possible, said qualified grant is such that a definite benefit to the economy of the commonwealth may reasonably be expected therefrom; and (5) said qualified grant is in conformity with rules adopted by the center and approved by the board.

Said rules shall also set the terms and conditions for grants which are to constitute qualified grants and shall set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make investment determinations, safeguard the fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified grants, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified grants.

(f) Qualified investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Massachusetts Life Sciences Opportunity Relocation and Expansion Jobs Capital Program Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

(g) The center shall not at any time make expenditure from or commitment of the assets of the fund, including, without limitation, the making of qualified grants secured by the fund, if following the making of said qualified grants, the amount of the fund shall be less than the minimum requirement established by the board.

Section 10. (a) There is hereby established and placed within the center the Massachusetts Life Sciences Bridge Loan Fund, hereinafter referred to in this section as the fund, to be held by the center separate and apart from its other funds. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(b) The center shall invest and reinvest the fund and the income thereof, except as hereinafter provided, only as follows: (1) in the making of qualified loans, grants or other investments, pursuant to subsection (c); provided, however, that the center shall consult with the Massachusetts development finance agency prior to making said qualified loans, grants or other investments; (2) in defraying the ordinary and necessary expenses of administration and operation associated with the fund; provided, however, that said administrative and operational expenses shall not exceed 10 per cent of the maximum amount authorized to be expended from the fund in a fiscal year; (3) in the investment of any funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth; (4) for the payment of binding obligations associated with such qualified investments which are secured by the fund as the same become payable; and (5) for the payment of principal or interest on qualified investments secured by the fund or the payment of any redemption premium required to be paid when such qualified investments are redeemed prior to maturity; provided, however, that monies in the fund shall not be withdrawn at any time in such an amount as would reduce the amount of the fund to less than the minimum requirement thereof established by the center, except for the purpose of paying binding obligations associated with qualified investments which are secured by the fund as the same become payable.

(c) The fund shall be held and applied by the center to make qualified loans, grants or other investments to stimulate increased financing for life sciences research and development, manufacturing and commercialization in the commonwealth by providing bridge loans and other qualified investments to public agencies, non-profits or to life sciences companies for the furtherance and establishment of an industry cluster of life science technology in the commonwealth that will serve to increase and strengthen the commercial and industrial base of the commonwealth and the economic development and employment opportunities related thereto; provided further, that said fund shall provide matching grants to commonwealth based high technology companies that receive small business innovation research or small business technology transfer grants from the Small Business Administration, established pursuant 15 U.S.C. §638, hereinafter SBIR, to assist eligible companies that have developed new commercialization-ready technologies to reach production and create manufacturing jobs in the commonwealth; provided, however, that said matching grants shall be used to create manufacturing jobs, and may be used for, without limitation, the creation of, and capital improvements for, production facilities, workforce training, product marketing, and purchasing infrastructure for product manufacturing; provided further, said matching grants shall be distributed to eligible companies that have commercialization-ready technologies developed with assistance from SBIR money in the form of $1 in matching funds for every $1 granted through SBIR phase IIB grants, phase III grants, and the commercialization pilot project established pursuant to 15 U.S.C. §638; provided further, that said matching grants shall be awarded in consultation with the Small Business Association of New England in an amount not to exceed $1,000,000 annually; provided, further that no such grant to any only enterprise shall exceed $500,000 annually; provided further, that said qualified loans, grants or other investments shall not exceed $4,500,000 in the aggregate in any one fiscal year; and provided further, that the center shall make no such qualified loan, grant or other investment unless: (1) said loan, grant or investment has been approved by a majority vote of the board; (2) the recipient is a life sciences company certified pursuant to section 5; (3) the center finds that, to the extent possible, said qualified loan, grant or investment is such that a definite benefit to the economy of the commonwealth may reasonably be expected therefrom; provided, further, that, in evaluating any request or application for funding, the center shall consider the following: (i) whether the loan, grant or investment will stimulate increased financing for life sciences research and development, manufacturing and commercialization in the commonwealth; (ii) the enterprise has a reasonable chance of success; (iii) center participation is necessary; (iv) the enterprise has the reasonable potential to create a substantial amount of primary employment within the commonwealth; (v) the principals of the enterprise have already made or are prepared to make a substantial financial and time commitment to the enterprise; (vi) the securities to be purchased are qualified securities; (vii) there is a reasonable possibility that the center will at a minimum recoup its initial investment; (viii) binding commitments have been made to the center by the enterprise for adequate reporting of financial data to the center, which shall include a requirement for an annual or other periodic audit of the books of the enterprise, and for such control on the part of the center as the board shall consider prudent over the management of the enterprise, so as to protect the investment of the center, including, in the discretion of the board and without limitation, a right to access financial and other records of the enterprise; and (ix) a reasonable effort has been made to find a professional investor to invest in the enterprise and that such effort was unsuccessful; and (4) said loan, grant or other investment is in conformity with rules adopted by the center and approved by the board.

Said rules shall define life sciences technology for purposes hereof; provided, however, that such definition shall include companies engaging in research and development or manufacturing in areas of agricultural biotechnology, biodefense, biogenerics, bioinformatics, biomedical engineering, biotechnology, bio-pharmaceuticals, chemical synthesis, diagnostics, genomics, image analysis, medical devices, nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research and veterinary science or any other life sciences field or company which the center has classified or shall classify as life sciences technology. Said rules shall also set the terms and conditions for investments which are to constitute qualified investments, which may include, without limitation, loans, guarantees, loan insurance or reinsurance, equity investments, or other financing or credit enhancing devices, as made by the center directly or on its own behalf or in conjunction with other public instrumentalities, or private institutions, or the federal government. Said rules shall, in addition, set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make investment determinations, safeguard the fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified investments, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified investments; provided further, that said rules shall provide that each recipient of a qualified investment shall be required to pay a fee as a condition of such receipt, which fee may take the form of points, an interest rate premium or a contribution of warrants or other form of equity or consideration to the fund; and provided, further, that said rules shall provide for negotiated agreements between the center and each recipient of a qualified investment regarding the terms and conditions by which the fund’s support thereof could be reduced or withdrawn.

(e) Copies of the approved rules, and any modifications thereto, shall be submitted to the chairpersons of the house and senate committees on ways and means, the chairpersons of the joint committee on economic development and emerging technologies, and the clerks of the house of representatives and senate.

(f) Qualified investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Massachusetts Life Sciences Bridge Loan Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

(h) In making disbursements from the fund, the center shall develop a plan to distribute funds throughout all regions of the commonwealth.

Section 11. (a) There shall be established and placed within the center a fund to be known as the Regional Technology and Innovation Centers Capital Fund, hereinafter in this section referred to as the fund, to be held by the center separate and apart from its other funds. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans, royalties or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(b) The center shall invest and reinvest the fund and the income thereof, except as hereinafter provided, only as follows: (1) in the making of qualified grants pursuant to subsection (c); (2) in defraying the ordinary and necessary expenses of administration and operation associated with the fund; provided, however, that said administrative and operational expenses shall not exceed 10 per cent of the amount authorized to be expended from the fund in a fiscal year; (3) in the investment of any funds not required for immediate disbursement in the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth; (4) for the payment of binding obligations associated with such qualified investments which are secured by the fund as the same become payable; and (5) for the payment of principal or interest on qualified investments secured by the fund or the payment of any redemption premium required to be paid when such qualified investments are redeemed prior to maturity; provided, however, that monies in the fund shall not be withdrawn at any time in such an amount as would reduce the amount of the fund to less than the minimum requirement thereof established by the center, except for the purpose of paying binding obligations associated with qualified investments which are secured by the fund as the same become payable.

(c) The fund shall be held and applied by the center to make qualified grants for life science related laboratory space improvements or for the design and construction of new laboratory facilities to promote the life sciences; provided, however, that the aggregate amount of said qualified grants shall not exceed $3,000,000 in any one fiscal year; provided further, that no grant shall be awarded from the fund prior to the completion of a comprehensive regional study which shall include, but not be limited to, information regarding available regional private and public lab space, existing regional private life sciences industries, existing regional workforce development initiatives and existing available regional industry workforce; and provided further, that the center shall make no such qualified grant unless: (1) said grant has been approved by a majority vote of the board; (2) the recipient is a non profit organization or a life sciences company certified pursuant to section 5; and (3) said grant is in conformity with rules adopted by the center and approved by the board.

Said rules shall also set the terms and conditions for grants which are to constitute qualified grants and shall set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make investment determinations, safeguard the fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified grants, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified grants.

(f) Qualified grants and investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Regional Technology and Innovation Centers Capital Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

Section 12. (a) There shall be established and placed within the center a fund to be known as the Massachusetts Life Sciences Education Fund, hereinafter in this section referred to as the fund, to be held by the center separate and apart from its other funds. The fund shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, such additional funds as are subject to the direction and control of the center, any pension funds, federal grants or loans, royalties or private investment capital which may properly be applied in furtherance of the objectives of the fund, any proceeds from the sale of qualified investments secured or held by the fund, any fees and charges imposed relative to the making of qualified investments, as the same shall be defined by the center, secured or held by the fund, and any other monies which may be available to the center for the purposes of the fund from any other source or sources. Any revenues, deposits, receipts, or funds received through the receipt of royalties, interest, dividends, or the sale of equity instruments, inclusive, shall be deposited in the fund, and shall be available expressly to the center for the purposes described in this section, without further appropriation.

(c) The fund shall be held and applied by the center to make qualified grants to vocational and technical schools for purchasing or leasing necessary equipment to train students in the area of life sciences technology or research; provided, however, that the aggregate amount of said qualified grants shall not exceed $3,000,000 in any one fiscal year; and provided further, that the center shall make no such qualified grants unless: (1) said grant has been approved by a majority vote of the board; (2) the grant recipient is a vocational technical school; provided, however, that to the extent funds remain after consideration of grant applications submitted by vocational technical schools, the center may make qualified grants to community colleges; (3) the grant recipient has identified and properly trained instructors in the use of the equipment to be purchased or leased; and (4) said qualified grant is in conformity with rules adopted by the center and approved by the board.

Said rules shall also set the terms and conditions for grants which are to constitute qualified grants and shall set forth the terms, procedures, standards and conditions which the center shall employ to identify qualified applications, process applications, make investment determinations, safeguard the fund, advance the objective of increasing employment opportunities for the citizens of the commonwealth, oversee the progress of qualified grants, and secure the participation of other public instrumentalities, private institutions, or the federal government in such qualified grants.

(f) Qualified grants and investment transactions undertaken by the center pursuant to the provisions of this section shall not, except as specified in this chapter, be subject to the provisions of chapter 175, or any successor thereto, and shall be payable solely from the Massachusetts Life Sciences Education Fund, established by this section and shall not constitute a debt or pledge of the faith and credit of the commonwealth, the center or any subdivision of the commonwealth.

Section 13. (a) The center shall establish a system of 5 regional life sciences industry regions; provided, however, that 1 region shall be located in western Massachusetts, 1 region shall be located in central Massachusetts, 1 region shall be located in northeastern Massachusetts, 1 region shall be located in southeastern Massachusetts, and 1 region shall be located in metropolitan Boston.

(b) Within each of the designated regions, the center shall establish a regional technology and innovation center and shall solicit proposals from non-profit organizations for the purpose of operating said regional technology and innovation center; provided, however, that a non-profit organization responding to said request for proposals shall: (i) have experience facilitating local or regional life science industry sectors; and (ii) be located, or plan to be located, within the region that said organization is applying to serve.

(c) The duties of each regional technology and innovation center shall include, but shall not be limited to: (i) encouraging and facilitating collaboration between existing organizations dedicated to promoting the regional life science industry; (ii) inputting regional life science industry and educational data, including the documentation of regional lab space, into the life sciences industry database as designed and maintained by the center; (iii) organizing, facilitating and implementing regional workforce development initiatives; (iv) providing business management and resource training, including the dissemination of best business practices; (v) facilitating public and private investment in the life sciences; (vi) reviewing and providing recommendations to the center proposals; (vii) identifying property conducive to regional life science industry expansion; and (viii) facilitating the regional development and implementation of section 10A of chapter 23A.

(d) Each regional technology and innovation center shall be advised by a regional advisory board consisting of the secretary of administration and finance, or his designee; the secretary of the executive office of housing and economic development, or his designee; the secretary of labor and workforce development, or his designee; the executive director of the center; and a minimum of 16 members who shall be appointed by the executive director of the center, 1 of whom shall be an individual representing the University of Massachusetts; 1 of whom shall be an individual representing the Massachusetts state college system; 1 of whom shall be an individual representing the Massachusetts community college system; 1 of whom shall be an individual representing private colleges or universities located in Massachusetts; 1 of whom shall be an individual representing the Massachusetts vocational-technical school system; 1 of whom shall be an individual from the Massachusetts Development Finance Agency, recommended by the president of the Massachusetts Development Finance Agency; 1 of whom shall be an individual representing the regional council of governments, chamber of commerce or regional economic development council; 1 of whom shall be an individual with academic expertise in life sciences; 1 of whom shall be an individual representing a regional or local technology council; 1 of whom shall be a venture capitalist in the region; 1 of whom shall be an angel investor in the region; 1 of whom shall be an individual with knowledge of regional laboratory space; 1 of whom shall be a member of the Massachusetts Biotechnology Council Board of Directors and the Massachusetts Life Sciences Collaborative; and 1 of whom shall be a student or researcher in the region; 1 of whom shall be an individual from a private bank in the region.

Each regional advisory board shall have three ex-officio non-voting members who shall include: an individual recommended by the secretary of the executive office of housing and economic development, employed in said office; an individual recommended by the secretary of labor and workforce development, employed in said office; and an individual recommended by the secretary of administration and finance, employed in said office.

Section 14. There shall be a capital advisory council which shall advise the board on prudence of equity investments pursuant to section 7 and the distribution of bridge loans pursuant to section 10. The capital advisory board shall be appointed by the board and shall consist of a representative of the Massachusetts Medical Device Development Center; a representative of the Massachusetts Technology Transfer Center; and a representative of the Massachusetts Technology Development Corporation; 1 angel investor with significant experience in the life sciences sector; 1 venture capitalist with significant experience in the life sciences sector; and 5 members to be appointed by the governor, including persons having skills and experience in providing capital to new, innovative businesses, in starting and operating such businesses, in providing professional services to or otherwise working with such businesses, and in obtaining and administering grants and contracts from governmental and philanthropic sources.

All members shall be appointed for a term of 3 years, may be reappointed, and shall serve without compensation, but may be reimbursed from the Fund for ordinary and reasonable in-state travel expenses. The council may meet as often as the members may determine, but shall meet at least bi-annually, or at such other intervals as may be established by the executive director in order to review recommendations made by the board. A member may be removed from his appointment by the governor for cause. Any person appointed to fill a vacancy in the office of a member of the committee shall be appointed in a like manner and shall serve for only the unexpired term of such member.

Section 15. The center shall develop a comprehensive, internet-based life sciences sector database for the organization of all relevant information related to the life sciences sector in the commonwealth, as determined by the center. Access to said database shall be limited at the discretion of the executive director of the center. Any documentary materials or data received by the center from any entity, private or public, for the express purpose of adding information to the life science database shall be exempt from section 10 of chapter 66 and the board may hold any discussion or consideration of database materials in executive session closed to the public notwithstanding the provisions of section 11A 1/2 of chapter 30A, but the purpose of any such executive session shall be set forth in the official minutes of the center and no business which is not directly related to such purpose shall be transacted nor shall any vote be taken during such executive session.

Section 16. (a) The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the commonwealth and for the improvement of their health and living conditions and as the operation of the center shall constitute the performance of essential governmental functions, the center shall not be required to pay any taxes or assessments, except as otherwise provided by this chapter and the notes or bonds issued under this chapter, their transfer and the income therefrom, including any profit made on the sale thereof, at all times shall be free from taxation by and within the commonwealth.

(b) The lands and tangible personal property of the center shall be deemed to be public property used for essential public and governmental purposes and shall be exempt from taxation and from betterments and special assessments.

Section 17. The center shall annually submit to the governor, the chair of the senate committee on ways and means, the chair of the house committee on ways and means, the chairs of the joint committee on economic development and emerging technologies, the secretary of administration and finance, and the comptroller, within 90 days after the end of its fiscal year, a complete and detailed report setting forth its operations and accomplishments; its receipts and expenditures during such fiscal year, including a complete report detailing all companies classified as a certified life sciences company, the benchmarks reached by each company and the assistance each company received by the center and a detailed description and a numerical accounting of all tax incentives awarded to life sciences companies certified pursuant to section 5; and, its assets and liabilities at the end of its fiscal year.

Section 18. The books and records of the center shall be subject to a biennial audit by the auditor of the commonwealth.

SECTION 12. Section 1 of chapter 32 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after the word “connector”, in line 211, the following words:- , the Massachusetts Life Sciences Center.

SECTION 13. Section 2 of chapter 32A of the General Laws is hereby amended by inserting after the word “authority”, in line 12, as so appearing, the following words:- , the Massachusetts Life Sciences Center.

SECTION 14. Section 6 of chapter 62 of the General Laws, as most recently amended by section 4 of chapter 63 of the acts of 2007, is hereby further amended by adding the following 2 subsections:-

(m) (1) As used in this subsection and subsection (n) the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Person”, a natural person, corporation, association, partnership or other legal entity. “Primarily”, more than 50 per cent.

“Research and development costs”, in-house research expenses within the meaning of section 41(b)(2) of the Code.

“Taxpayer”, a life sciences company or person subject to the taxes imposed by chapters 62, 63, 64H or 64I.

“User fees”, the monetary amount actually paid by a taxpayer to the U.S.F.D.A. that constitutes the fee due upon the submission of a human drug application or supplement pursuant to 21 U.S.C. § 379h(a)(1) for a human drug, the research and development costs of which, were primarily incurred in the commonwealth.

“U.S.F.D.A.”, the United States Food and Drug Administration.

(2) A taxpayer may, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, take a credit against the taxes imposed by this chapter in an amount equal to 10 percent of the cost of qualifying property used exclusively in the commonwealth. Qualifying property shall be tangible personal property and other tangible property including buildings and structural components of buildings acquired by purchase, as defined under Section 179(d) of the Code, as amended and in effect for the taxable year, but not including property that is taxable under chapter 60A; provided, however, that such property must be depreciable under section 167 of the Code and have a useful life of 4 years or more. If such property is disposed of or ceases to be in qualified use before the end of its useful life or before the end of the year in which the credit is to be taken, the recapture and related provisions of subsection (e) of section 31A of chapter 63 shall apply. A taxpayer taking a credit allowed under this subsection may not take the credit allowed by subsection (g) except to such extent, not to exceed 2 percent of the cost of any qualifying property, as may be provided in a certification pursuant to said section 5 of chapter 23I.

Nothing in this section shall limit the authority of the commissioner to make adjustments to a taxpayer’s liability upon audit or limit any other legal remedies available to the commissioner or the commonwealth against said taxpayer.

(3) Any taxpayer entitled to a credit under this section for any taxable year may, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, carry over and apply to its tax for any 1 or more of the next succeeding 10 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.

(4) The commissioner in consultation with the Massachusetts Life Sciences Center established pursuant to section 3 of chapter 23I, shall promulgate regulations necessary for the administration of this subsection; provided further, that said regulations may provide the adjustment of intercompany prices and elimination of intercompany transactions to ensure that all amounts upon which the credit is based reasonably reflect fair market value; and provided further, that said regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.

(5) In the event that such credit allowed under this subsection, or such credit as may be allowed under subsection (g) as limited in this subsection, exceeds the tax otherwise due under chapter 62, the balance of such credit shall, at the option of the taxpayer and to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, be refundable to the taxpayer for the taxable year in which qualified property giving rise to that credit is placed in service. If such credit balance is refunded to the taxpayer, then the credit carryover provisions of paragraph (2), and paragraph (2) of subsection (g), do not apply.

(n) (1) Except as otherwise limited by suhsection (e), a taxpayer may, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, be allowed a refundable credit against the tax liability imposed under this chapter in an amount equal to 100 per cent of the cost of user fees paid by such taxpayer.

(2) A taxpayer shall claim the credit in the taxable year in which its application for the licensure of an establishment to manufacture the human drug in the commonwealth is approved by the U.S.F.D.A.

(3) In the event that such credit allowed to a taxpayer exceeds the tax otherwise due under chapter 62, the balance of that credit shall, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, be refundable to the taxpayer for the taxable year in which the credit is claimed.

(4) The deduction from gross income that may be taken with respect to any expenditures qualifying for the credit under this section shall be disallowed to the extent of the credit.

(5) Only user fees paid by a taxpayer to the U.S.F.D.A. on or after the effective date of this section shall be eligible for the credit.

SECTION 14A. Said section 6 of said chapter 62 is hereby further amended by striking out subsections (m) and (n) inserted by section 14.

SECTION 15. Section 30 of chapter 63 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following paragraph:-

(17) Notwithstanding the last sentence in paragraph (b) of paragraph 5 to the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, losses sustained in any taxable year by a taxpayer engaged in business as a life sciences company as defined by section 2 of chapter 23I may, to the extent approved pursuant to said life sciences tax incentive program, be carried forward for not more than 15 years; provided, however, that said losses shall not be carried back.

SECTION 15A. Said section 30 of said chapter 63 is hereby further amended by striking out paragraph (17), inserted by section 15.

SECTION 16. Said chapter 63 is hereby further amended by inserting after section 31L the following section:-

Section 31M. (a) As used in this section the following words shall, unless the context otherwise requires, have the following meanings:

“Person”, a natural person, corporation, association, partnership or other legal entity. “Primarily”, more than 50 per cent.

“Research and development costs”, in-house research expenses within the meaning of section 41(b)(2) of the Code.

“Taxpayer”, a life sciences company or person subject to the taxes imposed by chapter 62, 63, 64H or 64I.

“U. S.F.D.A.”, the United States Food and Drug Administration.

(b) Except as otherwise limited by paragraph (e), a taxpayer may, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of chapter 23I, be allowed a refundable credit against the tax liability imposed under this chapter in an amount equal to 100 percent of the cost of user fees paid by such company.

(c) A taxpayer shall claim the credit in the taxable year in which its application for the licensure of an establishment to manufacture the human drug in the commonwealth is approved by the U.S.F.D.A.

(d) The credit allowed may reduce the excise due under subsection (b) of section 32, or subsection (b) of section 39. The credit allowed to a taxpayer shall not be subject to the provisions of section 32C. In the event that such credit allowed to a taxpayer exceeds the excise otherwise due under said subsection (b) of section 32 or subsection (b) of said section 39, the balance of that credit, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, may be refundable to the taxpayer for the taxable year in which the credit is claimed.

To the extent authorized pursuant to the life sciences tax incentive program established pursuant to said section 5 of said chapter 23I, if a taxpayer files as a member of a combined group and applies its excess credit against the excise of another group member, then the credit as applied to corporations other than such taxpayer is not subject to the provisions of section 32C and may reduce to zero the excise due under subsection (b) of section 32, or subsection (b) of section 39 and under any act in addition thereto. In the event that such credit allowed to a taxpayer that is applied against the excise liability of such other corporations exceeds the excise otherwise due to such corporations under this chapter, the balance of that credit shall be refundable to the taxpayer for the taxable year in which the credit is claimed.

(e) For the purposes of section 30, the deduction from gross income that may be taken with respect to any expenditures qualifying for the credit under this section is disallowed to the extent of the credit.

(f) Only user fees paid by a taxpayer to the U.S.F.D.A. on or after the effective date of this section shall be eligible for the credit.

SECTION 16A. Section 31M of said chapter 63 is hereby repealed.

SECTION 17. Subsection (f) of section 38 of said chapter 63 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended, in line 169, by inserting after the word “contracts.” the following:-

and (6) To the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, a taxpayer engaged in business as a life sciences company as defined by section 2 of said chapter 23I, shall be deemed to be taxable in the state of the purchaser if the property of the company is delivered or shipped to a purchaser in another state.

SECTION 17A. Said section 38 of said chapter 63 is hereby further amended by striking out clause (6), inserted by section 17.

SECTION 18. Section 38C of said chapter 63, as so appearing, is hereby amended by adding the following paragraph:-

To the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, a life sciences company shall be deemed to be a research and development corporation for purposes of exemptions under chapters 64H and 64I

SECTION 18A. Said section 38C of said chapter 63 is hereby further amended by striking out the last paragraph, added by section 18.

SECTION 19. Section 38M of said chapter 63, as so appearing, is hereby amended by adding the following paragraph:-

(j)(1) As used in this section the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Person”, a natural person, corporation, association, partnership or other legal entity.

“Taxpayer”, a life sciences company or person subject to the taxes imposed by chapters 62, 63, 64H or 64I.

(2) If a credit claimed under this section by a taxpayer exceeds the amount that may otherwise be allowed under this section for a taxable year, the balance of that credit may, at the option of the taxpayer and to the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, be refundable to the taxpayer for the taxable year. If such credit balance is refunded to the taxpayer, then the credit carryover provisions of paragraph (f) shall not apply.

SECTION 19A. Said section 38M of said chapter 63 is hereby further amended by striking out paragraph (j), inserted by section 19.

SECTION 20. Said chapter 63 is hereby further amended by inserting after section 38T the following 2 sections:-

Section 38U. (a) As used in this section and section 38V the following terms shall, unless the context clearly requires otherwise, have the following meanings:-

“Person”, a natural person, corporation, association, partnership or other legal entity.

“Taxpayer”, a life sciences company or person subject to the taxes imposed by chapter 62, 63, 64H or 64I.

(b) A taxpayer may, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, take a credit against the taxes imposed by this chapter in an amount equal to 10 percent of the cost of qualifying property used exclusively in the commonwealth.

Qualifying property shall be tangible personal property and other tangible property including buildings and structural components of buildings acquired by purchase, as defined under Section 179(d) of the Code, as amended and in effect for the taxable year, but not including property that is taxable under chapter 60A; provided, however, that such property must be depreciable under section 167 of the Code and have a useful life of 4 years or more. If such property is disposed of or ceases to be in qualified use before the end of its useful life or before the end of the year in which the credit is to be taken, the recapture and related provisions of subsection (e) of section 31A shall apply.

The credit allowed under this section may be taken by an eligible corporation; provided, however, that neither credit allowed by section 31A nor section 31H is taken by such corporation; and provided further, that the credit allowed by section 3 8N shall not be taken except to such extent, not to exceed 2 percent of the cost of any qualifying property.

(d) In the case of a taxpayer that is subject to a minimum excise under any provision of this chapter, the amount of the credit allowed by this section shall not reduce the excise to an amount less than such minimum excise.

(e) A taxpayer entitled to a credit under this section for any taxable year may, to the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, carry over and apply to its excise for any 1 or more of the next succeeding 10 taxable years, the portion, as reduced from year to year, of those credits which were not allowed by paragraph (c) or which exceed the excise for the taxable year.

(f) In the case of corporations filing a combined return of income under section 32B, a credit generated by an individual member corporation under the provisions of this section shall first be applied against the separately determined excise attributable to that member, subject to the limitations of paragraph (c). A member corporation with an excess credit may apply its excess credit against the excise of another group member, to the extent that such other member corporation can use additional credits under the limitation of paragraph (c). Unused, unexpired credits generated by member corporations shall be carried over from year to year by the individual corporation that generated the credit.

(g) The commissioner shall promulgate regulations necessary to implement the provisions of this section. Said regulations may provide for the adjustment of inter-company prices and elimination of intercompany transactions to ensure that all amounts upon which the credit is based reasonably reflect fair market value. In addition, such rules and regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.

(h) In the event that such credit allowed to a taxpayer under this section, or such credit as may be allowed under section 38N of this chapter as limited in this subsection, exceeds the excise otherwise due under this chapter, the balance of such credit may, at the option of the taxpayer and to the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, be refundable to the taxpayer for the taxable year in which qualified property giving rise to that credit is placed in service. If such credit balance is refunded to the taxpayer, then the credit carryover provisions of paragraph (d), and said section 38N, do not apply.

Section 38V. A taxpayer which is a certified life sciences company pursuant to subsection (b) of section 5 of chapter 23I shall be allowed a deduction under section 30(4) of this chapter for that portion of qualified clinical testing expenses paid or incurred for the taxable year equal to the amount of the credit allowable for the taxable year under § 45C of the Code and otherwise disallowed as a deduction under § 280C(b) of said Code.

SECTION 20A. Section 38U and 38V are hereby repealed.

SECTION 21. Section 42B of said chapter 63, as so appearing, is hereby amended by adding the following paragraph:-

SECTION 21A. Said section 42B of said chapter 63 is hereby further amended by striking out the last paragraph, added by section 21.

SECTION 22. Section 6 of chapter 64H of the General Laws, as amended by section 12 of chapter 63 of the acts of 2007, is hereby further amended by adding the following paragraph:-

(xx) (1) As used in this section the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Utility support systems”, all areas of utility support systems including, but not limited to, site, civil, mechanical, electrical and plumbing systems.

(2) To the extent authorized pursuant to the life sciences tax incentive program established pursuant to section 5 of chapter 23I, sales of tangible personal property purchased for a life sciences company for use in connection with the construction, alteration, remodeling, repair, or remediation of the research, development or manufacturing facilities and the utility support systems. Only purchases made on or after the effective date of this section shall be eligible for this exemption.

SECTION 22A. Said section 6 of said chapter 64H is hereby further amended by striking out paragraph (xx), added by section 22.

SECTION 23. Notwithstanding any general or special law to the contrary, not less than 10 days after the effective date of this act, the comptroller shall transfer $9,500,000 from the General Fund to the Tufts’ Cummings School of Veterinary Medicine New England Regional Biosafety Laboratory for a one-time grant to assist with construction and capital improvements; provided however, that said facilities shall improve public health, protect public safety, improve science education, and stimulate economic development by providing the opportunity to translate laboratory discoveries into viable vaccines, therapies and cures for emerging infectious diseases and bioterrorist threats.

SECTION 24. Notwithstanding any general or special law to the contrary, not less than 10 days after the effective date of this act, the comptroller shall transfer $2,500,000 from the General Fund to the Massachusetts Life Sciences Investment Fund, established pursuant to section 6 of chapter 23I of the General Laws; provided, however, that said funds shall be used to develop a comprehensive, internet-based life sciences sector database pursuant to section 15 of said chapter 23I of the General Laws.

SECTION 25. Notwithstanding any general or special law to the contrary, to meet the expenditures necessary in carrying out the provisions of section 2B, the state treasurer shall, upon receipt of a request by the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time, but not exceeding, in the aggregate, $500,000,000. All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Life Sciences Center Capital Improvement Loan Act of 2008, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2043. All interest and payments on account of principal on such obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provisions of this act, be general obligations of the commonwealth.

SECTION 26. Notwithstanding any general or special law to the contrary, the University of Massachusetts at Dartmouth may acquire from the Massachusetts Development Finance Agency the land and improvements thereon located at 151 Martine street in the city of Fall River together with the accessory parking lot owned by said Massachusetts Development Finance Agency located on the north side of Martine street, hereinafter collectively referred to as the Advanced Technology Manufacturing Center, for an amount not to exceed $11,400,000 and pursuant to such other terms as the parties may mutually agree; provided, however, that said conveyance shall be approved by the Board of Trustees of the University of Massachusetts and the board of directors of Massachusetts Development Finance Agency. Said conveyance shall be subject to a restrictive covenant prohibiting the University of Massachusetts at Dartmouth from occupying more than 60% of the total square footage of the Advanced Technology Manufacturing Center at any time. The University of Massachusetts at Dartmouth may retain any rent, license fees, appropriations, grants, fees, or such other monies earned in connection with owning and operating the Advanced Technology Manufacturing Center and may apply such revenues solely to offset the costs associated with owning, operating, improving, leasing, licensing, managing, and maintaining the land and improvements that constitute the Advanced Technology Manufacturing Center.

SECTION 27. Notwithstanding any general or special law to the contrary, the Massachusetts Life Sciences Center, established pursuant to section 3 of chapter 23I of the General Laws, in collaboration with the Massachusetts international trade council shall, subject to appropriation, facilitate and support joint academic and industrial research and development and commercial business exchanges between the commonwealth and Israel in the area of life sciences; provided further, that, subject to appropriation, there shall be established a trade and incubator facility in Israel and a trade and incubator facility in Massachusetts facilitated by the Massachusetts international trade council in consultation with the Massachusetts office of international trade and investment, established pursuant to section 24 of chapter 23A of the General Laws, for collaborative, joint and pilot projects with the Government of the State of Israel, the Boston Haifa International Life Sciences Institute and others.

SECTION 28. Notwithstanding any general or special law to the contrary, the department of workforce development shall, subject to appropriation and in consultation with the Massachusetts Life Sciences Center established in section 3 of chapter 23I of the General Laws, establish a program for intersection workforce training grants to provide training to enhance the technological workforce in areas including but not limited to, bioinformatics, biomedical engineering, biotechnology and nanotechnology; provided further, that said grants may be used to provide work force training grants to the public college and university system, including community colleges, specifically geared toward creating life science employment opportunities and to identify and establish career ladders for life science employment opportunities; and provided further, that said grants may be used to provide grants for summer programs for high school students, with appropriate stipends, that would allow interested and motivated students to intern in private or nonprofit corporations or in public programs that are in a position to further their interest, knowledge and experience in the life science field; provided, however, that life sciences companies certified pursuant to section 5 of said chapter 23I of the General Laws, shall receive preference for said grants.

SECTION 29. Notwithstanding any general or special law to the contrary, the department of workforce development shall, subject to appropriation and in consultation with the Massachusetts Life Sciences Center established in section 3 of chapter 23I of the General Laws, establish a program for biotechnology workforce training grants; provided further, that said grants may be used to provide work force training grants to the public college and university system, including community colleges, specifically geared toward creating life science employment opportunities and to identify and establish career ladders for life science employment opportunities; and provided further, that said grants may be used to provide grants for summer programs for high school students, with appropriate stipends, that would allow interested and motivated students to intern in private or nonprofit corporations or in public programs that are in a position to further their interest, knowledge and experience in the life science field; provided, however, that life sciences companies certified pursuant to section 5 of said chapter 23I of the General Laws, shall receive preference for said grants.

SECTION 30. Notwithstanding any general or special law to the contrary, the term of any member appointed to the board of directors of the Massachusetts Life Sciences Center, established pursuant to section 3 of chapter 23I of the General Laws, prior to the effective date of this act shall expire upon the effective date of this act; provided, however, that any appointed board whose term has expired pursuant to this section shall be eligible for reappointment to said board.

SECTION 31. Notwithstanding any general or special law to the contrary, the Massachusetts Life Sciences Center established pursuant to section 3 of chapter 23I of the General Laws, in consultation with the department of agricultural resources, shall, subject to appropriation, establish a program to promote the research and development of plant-made pharmaceuticals through field trials approved under a permit or approved notification by the Biotechnology Regulatory Service of the Animal and Plant Health Inspection Service of the United States Department of Agriculture.

SECTION 32. Notwithstanding any general or special law to the contrary, the Massachusetts Life Sciences Center capital advisory council, as established in section 14 of chapter 23I of the General Laws in conjunction with the office of the state treasurer, shall conduct a study and provide recommendations to the Massachusetts Life Sciences Center established pursuant to section 3 of said chapter 23I of the General Laws on the feasibility of vetting and bundling life sciences enterprises for the purpose of securitization of enterprises to create investment opportunities to provide seed capital for enterprises. For the purposes of this study, “enterprise” shall be defined as a small business, as defined in chapter 23A or 40F of the General Laws, with its principal place of business in the commonwealth and which is, or proposes to be, engaged in manufacturing or research and development in the area of life sciences research. Said capital advisory board shall report its findings to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies no later than March 31, 2009.

SECTION 33. Notwithstanding any general or special law to the contrary, the Massachusetts Life Sciences Center, established pursuant to section 3 of chapter 23I of the General Laws, shall investigate the feasibility of increasing the number of clinical trials conducted, or expediting the process of conducting clinical trials in the commonwealth, by life sciences companies in the commonwealth. Said center shall report its findings to the house and senate committees on ways and means, the joint committee on economic development and emerging technologies, the joint committee on public health and the joint committee on health care financing no later than March 31, 2009.

SECTION 34. Notwithstanding any general or special law to the contrary, the Massachusetts Life Sciences Center, established pursuant to section 3 of chapter 23I of the General Laws, shall conduct a study of ways in which to enhance coordination between the angel investor community and the life science industry. Said center shall report its findings to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies no later than March 31, 2009.

SECTION 35. Notwithstanding any general or special law to the contrary, the undersecretary of the department of business development shall, in conjunction with the Massachusetts Development Finance Agency, conduct a study of developing and implementing a program to identify and pre-permit municipal, state, and other publicly owned land, and private land for industrial space suitable for life sciences businesses; provided further that the undersecretary of the department of business development shall consult with the Massachusetts Life Sciences Center, established pursuant to section 3 of chapter 23I of the General Laws, the Massachusetts alliance for economic development and the department of capital asset management and maintenance in the conduct of said study; provided further, that the study shall include, but not be limited to, the availability of services and amenities necessary for life sciences companies in the areas to be pre-permitted including proximity to community colleges, adequate transportation, water and electricity infrastructure, available workforce training, and proximity to other life sciences companies. The undersecretary of the department of business development shall file a report together with recommendations for legislation, if any, with the clerks of the house and senate, the chairs of the house and senate committees on ways and means and the chairs of the joint committee on economic development and emerging technologies no later than March 31, 2009.

SECTION 36. Notwithstanding any general or special law to the contrary, to total administrative and operational expenses of the Massachusetts Life Sciences Center established pursuant to section 3 of chapter 23I of the General Laws shall not exceed $3,750,000 annually.

SECTION 37. There shall be a special commission to investigate, study, and evaluate the feasibility of constructing and operating a School of Pharmacy and Health Sciences within the University of Massachusetts campus system.

Due to the growing nationwide shortages of pharmacists and biomedical researchers, the special commission shall address, but not limit itself to studying all aspects of constructing, operating, and staffing said college to maintain a Masters and PharmD programs, as well as a Masters programs in a variety of health science related fields.

The special commission shall consist of the speaker of the house of representatives or his designee who shall serve as co-chairman with the senate president or her designee; the house and senate chairs of the joint committee on higher education or their designee; the house and senate minority leaders or their designee; the director of the board of registration in pharmacy or his designee; the president of the University of Massachusetts or his designee; the secretary of the executive office of economic development or his designee; the governor’s special advisor for education or his designee; the chairman of the Massachusetts board of higher education or his designee; the secretary of the executive office of labor and workforce development or her designee.

Said commission may consult with other government agencies, both federal and state, as well as members of the health care community and the general public. The said commission shall file its report, including any recommendations or legislation with the house and senate clerks on or before April 6, 2009.

SECTION 38. Notwithstanding any general or special law to the contrary, the department of revenue shall annually file a report with the chairs of the house and senate committees on ways and means, the chairs of the joint committee on economic development and emerging technologies and the chairs of the joint committee on revenue which shall include, but not be limited to, a detailed description and a numerical accounting of all tax incentives awarded to life sciences companies certified pursuant to section 5 of chapter 23I of the General Laws.

SECTION 39. Subsection (d) of section 5 of chapter 23I of the General Laws, as appearing in section 9, shall take effect on January 1, 2009 and shall expire on December 31, 2018..

SECTION 40. Sections 14, 15, 16, 17, 18, 19, 20, 21 and 22 shall take effect on January 1, 2009

SECTION 41. Sections 14A, 15A, 16A, 17A, 18A, 19A, 20A, 21A and 22A shall take effect on December 31, 2018.