Senate, No. 2566, printed as amended

The Commonwealth of Massachusetts

In the Year Two Thousand and Eight.

SECTION 1. To provide for supplementing certain items in the general appropriation act and other appropriation acts for fiscal year 2008, the sum set forth in section 2A is hereby appropriated from the General Fund unless specifically designated otherwise in this act or in those appropriation acts, for the several purposes and subject to the conditions specified in this act or in those appropriation acts and subject to laws regulating the disbursement of public funds.  

No Section 2.

SECTION 2A.

EXECUTIVE OFFICE FOR 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

University of Massachusetts

7100-0205   For the nano and biomanufacturing facility at the University of Massachusetts Lowell for a public/private program of matching funds; provided, that said matching funds must provide at least a 100 percent match………………………………………………….. $5,000,000

SECTION 2B.  To provide for a program of infrastructure development, improvements and various capital investments, the sums set forth in this section 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 OF HOUSING AND ECONOMIC DEVELOPMENT
Office of the Secretary

7007-9037                For grants related to site remediation, preparation and ancillary infrastructure improvement projects; provided, that the local government body and an entity involved in the project shall jointly submit a request for funding to the secretary of housing and economic development; provided further, that the request shall include sufficient documentation including, but not limited to, a project plan with specific goals and objectives that fully details the proposed project and either: (i) that 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 the commonwealth within 24 months after receipt of a grant and that those jobs will continue for at least 5 years; or (ii) that it produces an economic benefit that the secretary determines will be sufficiently exceptional; provided further, that no grants shall be awarded unless the project is certified under section 63 of chapter 23A of  the General Laws; provided further, that the grants authorized from this appropriation shall not exceed $12,500,000 in total in a given year; provided, however, that notwithstanding the foregoing limitation on the grants that may be authorized in a given year, not less than $12,900,000 shall be used to assist in water and wastewater infrastructure improvements for the proposed cell culture manufacturing facility and purification plant containing office and lab facilities in the town of Framingham; provided further, that notwithstanding the foregoing limitation on the grants that may be authorized in a given year, not less than $12,600,000 shall be used to assist in the construction of supporting infrastructure, comprised of local arterial and connector roads for the interstate highway route 93 interchange in the towns of Andover, Wilmington and Tewksbury; and provided further, that the executive office of housing and economic development shall not transfer any funds authorized in this item to the Massachusetts Life Sciences Center established in chapter 23I of the General Laws unless specifically authorized by the general court…..$125,000,000

EXECUTIVE OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT
Office of the Secretary

7007-9038              For capital projects including the preparation of plans and specifications, acquisition, construction, renovation, reconstruction, alteration, improvement, demolition, expansion and repair of land and facilities and for the acquisition of furnishings and equipment, as determined by the secretary, in consultation with the Massachusetts Life Sciences Center, to carry out the public purposes of chapter 23I of the General Laws; provided further, 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; provided further, that $1,100,000 shall be expended for the costs associated with the purchase and conversion of 3 vehicles into mobile science laboratories in support of biotechnology education initiatives of the Massachusetts Academy for Life Sciences, established in subsection (c) of section 2MMM of chapter 29 of the General Laws; provided further, that the mobile science laboratories shall be used to advance the goal of the Massachusetts Academy for Life Sciences; provided further, that funds for those purposes shall be provided through a contract with the Massachusetts Biotechnology Education Foundation to provide grants, in consultation with the board of higher education, to public and private institutions of higher learning to purchase and convert vehicles into mobile science laboratories; provided further, that each vehicle shall be fueled with an alternative fuel, as defined by the Energy Policy Act of 1992; provided further, that amounts expended shall include the cost of vehicles, equipment, furniture and other costs associated with the conversion of the vehicles into mobile science laboratories; provided further, that each of the 3 mobile science laboratories shall be owned and managed by each participating institution of higher learning and assigned to a specific region of the commonwealth, as designated by the Massachusetts Academy for Life Sciences in consultation with each institution of higher learning; provided further, that the designated regions shall not overlap; provided further, that not less than $10,000,000 from this appropriation shall be used to fund projects within the commonwealth that have been placed on a priority funding list by the National Institutes of Health but for which federal funding is not currently available; provided further, that $9,500,000 shall be expended for construction and capital improvements at the Tufts’ Cummings School of Veterinary Medicine New England Regional Biosafety Laboratory; provided further, that those 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; provided further, that the grants authorized in this appropriation shall not exceed $12,500,000 in total in a given year; and provided further, that the executive office of housing and economic development shall not transfer any funds authorized in this item to the Massachusetts Life Sciences Center established in chapter 23I of the General Laws unless specifically authorized by the general court…..$125,000,000

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
Division of Capital Asset Management and Maintenance

7100-0250               For costs associated with planning and studies, dispositions, acquisition of land and buildings and interests therein by purchase or by eminent domain under chapter 79 of the General Laws, for the preparation of plans and specifications, repairs, construction, renovations, improvements, maintenance and repair, asset management and demolition at the University of Massachusetts campus facilities and grounds; provided, that all projects approved for design and construction by the division of capital asset management and maintenance shall be consistent in priority and need with a master plan approved by the president of the University of Massachusetts and by the board of trustees of the University of Massachusetts; provided further, that any maintenance and repair work funded by this item shall be included in the capital asset management information system administered by the division of capital asset management and maintenance; provided further, that $95,000,000 shall be expended for the design, construction, development and related infrastructure improvements of the life sciences 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 further, that the match for this building shall be the design, construction, development and related infrastructure improvements of a centralized core animal facility at Amherst; provided further, that not less than $6,000,000 shall be appropriated to the University of Massachusetts Building Authority for the purpose of executing a lease agreement with Baystate Medical Center for costs associated with capital expansion of the Pioneer Valley Life Sciences Institute in the city of Springfield; provided further, that not less than $10,000,000 shall be expended to the University of Massachusetts at  Boston for the purchase of state-of-the-art equipment, renovations and related expenses to support the Center for Personalized Cancer Therapy, a collaboration of the university of Massachusetts at Boston and the Dana Farber Harvard Cancer Center; provided further, that the center shall be located in New Bedford, Taunton or Falmouth, as the secretary and the University shall determine; provided further that $10,000,000 shall be expended for a marine biology laboratory in the village of Woods Hole, the regional technology development corporation and the University of Massachusetts at Dartmouth for a collaborative effort between the 3 institutions to create and support the center for regenerative biology and medicine to develop commercial marine technology,  provide research and development for life sciences including, but not limited to marine-based stem cell research,  and expand life science and marine technology education; provided further, that not less than $10,000,000 shall be expended for a regional incubation center for life science initiatives to be located in the city of New Bedford and operated in conjunction with the University of Massachusetts at Dartmouth and Bristol Community College; provided further, that $10,000,000 shall be expended for the design, construction, development and related infrastructure improvements for a life sciences center which shall be managed by a board of directors to consist of  13 members as follows: the chancellor of  the University of Massachusetts at Dartmouth, the president of Bridgewater State College, the president of the Massachusetts Maritime Academy, the presidents of Massasoit Community College, Cape Cod Community College and Bristol  Community College, the president of Wheaton College, or their respective designees; the commissioner of mental retardation, or his designee;  the president of the Massachusetts Federation of Teachers, or his designee; president of the Massachusetts Teachers Association, or his designee and the president of the Massachusetts AFL-CIO or his designee; the president of the Taunton Area Chamber of Commerce and the director of Southeastern Regional Planning and Economic District or their designees; provided further, that the life sciences center shall include, but not be limited to, an education and training facility and a laboratory research facility with state-of-the-art equipment offering research and development facilities for collaboration with industry partners; provided further, that the center shall be located at the former Paul A. Dever State School in city of Taunton; provided further, that not less than $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 designated and known as the Albert “Albie” Sherman center, and shall include an RNAi Institute, stem cell biology cluster, cord blood bank and gene therapy cluster; provided further, that those funds shall not be used for faculty salaries; provided further, that funds appropriated in this item may be transferred to the University of Massachusetts Building Authority for these infrastructure improvements and for 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 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 the written confirmation shall include copies of all business plans, letters of financial commitment and other documentation as the secretary shall 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 senate and house of representatives 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 the project; and (3) a description of the proposed title to the assets associated with each facility; provided further, that the secretary shall not expend any funds until the report is filed with the house and senate committees on ways and means; provided further, that the University of Massachusetts 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 shall be in accordance with sections 26 to 27F inclusive, of chapter 149 of the General Laws for all phases of these projects………………………………..…$250,000,000.

SECTION 3.  To meet the expenditures necessary in carrying out section 2B, the state treasurer shall, upon request of 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, Commonwealth Life Sciences Center Capital Improvement Loan Act of 2007, and shall be issued for a maximum term of years, not exceeding 20 years, as the governor may recommend to the general court from time to time under section 3 of Article LXII of the Amendments to the Constitution.  All such bonds shall be payable not later than June 30, 2032.  All interest and payments on account of principal on these obligations shall be payable from the General Fund.  Bonds and interest thereon issued under this section shall be general obligations of the commonwealth.

SECTION 4.  Chapter 23A of the General Laws is hereby amended by adding the following section:-

Section 63. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Affiliate”, any business which directly or indirectly controls or is controlled by or is under direct or indirect common control with another business, including, but not limited to, any business with which a business is merged or consolidated, or which purchases all or substantially all of the assets of a business.
“Business”, a business corporation, partnership, firm, unincorporated association or other entity engaging or proposing to engage in economic activity in the commonwealth, and any affiliate thereof, which is, or of which the members are, subject to taxation under chapter 62 or chapter 63.
“Business incubator”, a facility which: (i) provides small units of space, shared support services or financing and management assistance to new and established businesses; or (ii) is created and operated for the principal purpose of addressing conditions of unemployment and economic distress by encouraging the creation of new businesses and improving their ability to survive and grow.
“Center”, the Massachusetts Life Sciences Center established by section 3 of chapter 23I.
 “Certified life sciences project”, a project that has been given initial approval by the center and thereafter certified by the department of business development for participation in the LSSIP. 
“Control”, the power to direct the management and policies of a business or a facility thereof, directly or indirectly, through the exercise of voting rights, by contract or otherwise.
“Facility”, the physical location, in real property owned or leased by a life sciences sector business, of a commercial or industrial activity, division or component controlled by a life sciences sector business, or any real estate project which involves the construction or renovation of real property to serve such purpose, or any combination of the foregoing, at which are employed, or are projected to be employed, permanent full-time employees of a life sciences sector business.
“Life sciences”, advanced and applied sciences, including, but not limited to, regenerative medicine, biotechnology, biopharmaceuticals, nanotechnology, medical devices, marine technology, marine biology and chemistry technology.
“Life sciences sector business”, a life sciences business located in the commonwealth and engaged in research, development, commercialization or manufacturing. 
“Life sciences project’, that portion of a life sciences sector business consisting of a new, expanded or maintained facility that in its entirety, as of the project proposal date, is located in the commonwealth and that: (i) shall increase or maintain the number of permanent full-time employees employed by the life sciences sector business in the commonwealth; and (ii) shall not result in a replacement or relocation of permanent full-time employees employed by the life sciences sector business at any other facility in the commonwealth; provided, however, that if a facility shall be located in the commonwealth after the project proposal date, the term shall refer only to a facility which: (1) shall be the first facility of the life sciences sector business to be located in the commonwealth; (2) shall be a new facility of the life sciences sector business and shall not be a replacement or relocation of an existing facility; or (3) shall be an expansion of an existing facility which results in an increase in permanent full-time employees. “LSSIP”, the life sciences sector incentive program that is designed to promote the development and expansion of life sciences sector businesses in the commonwealth, to be administered by the department of business development in conjunction with the center.
 “Municipality”, a city or town or, when 2 or more cities or towns agree to act jointly for some purpose hereunder, then, collectively, all cities and towns participating in the collaborative agreement.
“Permanent full-time employee”, an individual who: (i) is in an employment relationship which, at its inception, does not have a termination date which is a date certain or which is determined with reference to the completion of some specified scope of work; (ii) works a minimum number of weekly hours as the department may specify by rule or regulation; and (iii) receives employee benefits at least equal to those provided to other full-time employees of the life sciences sector business.    
“Project proposal”, a proposal submitted by a life sciences sector business to the center for initial approval and thereafter forwarded to the department of business development for designation as a certified life sciences project that meets the following requirements: (i) the proposal shall be timely submitted as determined by the center, in the form and with the information as prescribed by the center and the department, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the life sciences sector business; (ii) the proposal shall include specific targets by year of the number of newly hired or retained full-time employees, the projected salaries for those employees and the projected taxes generated under chapter 62 by those employees for each year for which the project may receive benefits under chapters 62, 63 or 64H; (iii) if a project is already located in the commonwealth as of the project proposal date, the projected increase in employees shall not be less than 10 per cent over the subsequent 5-year period; and (iv) if a project is a new facility within the meaning of clause (ii) of the definition of life sciences project, the proposal shall include the number of permanent full-time employees employed by the life sciences sector business at other facilities located in the commonwealth.
“Project proposal date”, the date on which a project proposal is received by the center.
“Real estate project”, real property at which, on a specified date after the project proposal date, construction or renovation shall be initiated which, when completed, shall result in an increase in the assessed value of the real property of at least 100 per cent over its assessed value as of the project proposal date; provided, however, that if a real estate facility is a business incubator facility and is designated as a certified life sciences project, each business which executes a binding lease for space in that facility after the date on which the construction or renovation activity begins shall be eligible for designation in its own right as a certified life sciences project.
“Return on investment”, the tax under chapter 62 generated by permanent full-time employees of a life sciences project, who have been hired or retained because of a project, over the period for which project benefits are received.
(b) (1)  The department, in conjunction with the center, shall administer the LSSIP and shall: (i) promulgate rules and regulations and prescribe procedures to effectuate the purposes of this section; provided, however, that the rules, regulations and procedures shall be subject to a public hearing process; (ii) review applications from life sciences sector businesses; (iii) certify projects for participation in the LSSIP that have been given initial approval by the center and establish regulations for evaluating project proposals; (iv) assist life sciences sector businesses in accessing state and federal resources and obtaining assistance from such resources; (v) provide appropriate coordination with other programs, agencies, authorities and public instrumentalities in the commonwealth to enable activity within the life sciences sector to be more effectively promoted by the commonwealth; (vi) monitor the implementation and operation of the LSSIP; (vii) conduct an ongoing evaluation of the certified life sciences projects; and (viii) promulgate in rules and regulations criteria for certification that favor projects that are proposed in economically distressed areas, including, but not be limited to, projects located in a municipality in which the unemployment rate is at least 1.5 per cent above the statewide unemployment rate and projects located in a municipality in which the median household income is not greater than 80 per cent of the statewide median household income.
(2)  The executive director of the center shall designate a staff person to serve as a liaison to the department who shall regularly consult with the director of the department of business development and coordinate the efforts of the center and department to further the purposes of this section.
(3)  The department shall annually submit to the governor, the house and senate committees on ways and means and the joint committee on economic development and emerging technologies, within 90 days after the end of its fiscal year, a complete report detailing all projects certified under the LSSIP during that fiscal year.  The report shall identify every certified life sciences project and, for each project, shall include, but not be limited to, the following information: (i) the number of jobs created for each year for which the project was certified; (ii) the number of jobs projected to be certified at each certification or renewal thereof; (iii) a comparison of the rate of actual job growth to the job growth projected in the project proposal; (iv) the value of tax incentives authorized under the LSSIP for each year for which the project was certified; (v) the value of tax incentives actually used as a result of the project; and (vi) the status of construction of any real estate project included in the project, including whether construction is on-time and on-budget. Such report shall be posted on the internet in a manner accessible to the public.
(4)  Every 2 years after a project proposal is approved as a certified life sciences project, the department shall prepare a report which evaluates the relative effectiveness of the project and shall make recommendations to improve such effectiveness to the secretary of housing and economic development.  Each report shall be sent to the house and senate committees on ways and means and to the joint committee on economic development and emerging technologies.
(c) (1)  The department may designate projects as certified life sciences projects, and may take any action necessary or appropriate thereto, upon completion of the following: (i) receipt and initial approval by the center of a project proposal, which includes the following: (A) a workable plan, with precise goals and objectives, by which the life sciences sector business proposes to achieve the projected return on investment, including for each year an estimate of the number of permanent full-time employees hired or retained, the average salaries of those employees, the projected taxable income under chapter 62 generated by those employees, the year the business expects to hire or retain the employees and the methods by which the business shall obtain new employees and pursue a diverse workforce; (B) documentation regarding an agreement, if any, between the life sciences sector business and area banking institutions by which the life sciences sector business agrees to establish accounts in the banks and by which the banks agree to commit a specified percentage of the funds deposited in the accounts for loans made thereby to businesses under the small business capital access program established by section 57; (C) if appropriate, documentation in the project proposal that the project is a certified project, under section 3F; (D) request for a designation of the project as a certified life sciences project for a specified number of years, which shall be not less than 5 years nor more than the lesser of 10 years and the years remaining on the project’s designation as a certified economic development incentive program project under section 3F; and (ii) findings made by the department, based on the project proposal, documents submitted therewith, the initial approval by the center and any additional investigation by the department, and incorporated in its approval, that: (A) the project meets all applicable statutory requirements and any other criteria that the department may prescribe; and (B) the project proposal, shall, if certified, achieve a projected return on investment, as specified in the proposal, over the period for which it receives benefits as a certified project.
(2)(A)  A certified life sciences project shall retain its certification for the period specified by the department in its certification decision unless the certification is revoked before the expiration of the specified period; provided, however, that the specified period shall be not less than 5 years, unless earlier revoked, from the date of certification nor more than the lesser of 10 years from the date of certification and the years remaining on the project’s designation as a certified project, including any renewals thereof.  Beginning in the year after a project is certified and for every year for which the project receives benefits, the department shall determine whether the project has satisfactorily met the specific targets by year for the number of full-time employees hired or retained, the projected salaries for those employees and the projected taxes generated under chapter 62 by those employees.  The department shall include its determinations under this paragraph in each report called for under paragraph (3) of subsection (b).
(B) The certification of a project may be revoked only by the secretary of housing and economic development after an independent investigation and determination that representations made by the life sciences sector business in its project proposal are materially at variance with the conduct of the life sciences sector business after the certification; provided, however, that the department of business development shall review the certified life sciences project at least yearly; provided further, that a project with an actual return on investment that is less than 70 per cent of the return on investment projected in the project proposal shall be deemed to contain a material variance for the purposes of a revocation determination.  Whenever the secretary determines not to revoke certification even though the actual return on investment for the project is less than 70 per cent, the secretary shall state his reasons for the decision in writing to the secretary of administration and finance, the commissioner of revenue, the house and senate committees on ways and means, the chairs of the joint committee on revenue and the chairs of the joint committee on economic development and emerging technology and shall post these reasons on the internet in a manner that is accessible to the public.
(C)  A notice of decertification under this subsection shall specify the date on which the decertification is effective, which may be the date of the notice or the date on which the secretary of housing and economic development determined that the material variance commenced.  In the event of a decertification, the commissioner of revenue shall, as of the effective date of the decertification, disallow any credits, exemptions or other tax benefits as may have been allowed by the original certification of tax benefits under this section.  In addition, any credits allowed by the certification shall be recaptured in a manner similar to that provided in section 31A of chapter 63 as would apply when property is disposed of or ceased to be in qualified use before the end of its useful life or, if applicable, before the end of the year in which the credit is to be taken.  If the original certification allowed sales and use tax exemptions under subsection (s) of section 6 of chapter 64H, the purchaser shall accrue use tax as of the date of the decertification on a portion of the sales price on which exemption was claimed that is proportionate to the remaining useful life of the property. 
(D)  Nothing in this subsection shall limit any legal remedies available to the commonwealth against any life sciences sector business. 
(3)  The department shall evaluate and either certify or deny a project proposal that has been granted initial approval by the center within 30 days of the initial approval. For any project proposal rejected by the department, a written statement detailing the reasons set forth for the rejection shall accompany the decertification notice.  The statement shall include any assumptions or conclusions considered which contradict the basis for the initial approval given by the center and shall detail the methodology utilized to reach the decision to deny the proposal.
(d)  A certified life sciences project may be eligible for the tax benefits made available to life sciences projects under chapters 62, 63 and 64H only to the extent specified in a certification from the secretary of housing and economic development and the secretary of administration and finance. These tax benefits shall not be available to any certified life sciences project unless expressly granted by the secretaries in writing.  The department of business development shall estimate in writing the tax cost of extending benefits to a proposed project before certification, as approved in writing by the commissioner of revenue, based on reasonable projections of project activities and costs.
(e) Not more than a cumulative amount of $25,000,000 of tax incentives under the LSSIP, including incentives carried forward, refunded or transferred, and including the current year cost of incentives allowed in previous years, shall be authorized in any year. (f)  Capital funding may be revoked only by the secretary of housing and economic development after an independent investigation and determination that representations made by the life sciences sector business in its project proposal are materially at variance with the conduct of the life sciences sector business after the certification; provided, however, that the department of business development shall review the certified life sciences project at least yearly; provided further, that a project with an actual return on investment that is less than 70 per cent of the return on investment projected in the project proposal shall be deemed to contain a material variance for the purposes of a revocation determination.  Whenever the secretary determines not to revoke certification even though the actual return on investment for the project is less than 70 per cent, the secretary shall state his reasons for the decision in writing to the secretary of administration and finance, the commissioner of revenue, the house and senate committees on ways and means, the chairs of the joint committee on bonding, capital expenditures and state assets and the chairs of the joint committee on economic development and emerging technology, and shall post these reasons on the internet in a manner that is accessible to the public.
A notice of decertification under this subsection shall specify the date on which the decertification is effective, which may be the date of the notice or the date on which the secretary of housing and economic development determined that the material variance commenced.  In the event of a decertification, the commissioner of revenue shall, as of the effective date of the decertification, disallow any loans, grants or other benefits as may have been allowed by the original certification under this section.  In addition, any grants or loans allowed by the certification shall be recaptured in a manner similar to that provided under section 31A of chapter 63 as would apply when property is disposed of or ceased to be in qualified use before the end of its useful life.
(g) The secretary of housing and economic development shall revoke the certification of a life sciences project when independent investigations conducted in 2 consecutive years determine that representations made by the life sciences sector business in its project proposal are materially at variance with the conduct of the life sciences sector business after the certification and the actual return on investment by the life sciences sector business is less than 70 per cent of the return on investment projected in the project proposal. 

SECTION 5.  Section 2 of said chapter 23I of the General Laws, as inserted by section 24 of chapter 123 of the acts of 2006, is hereby amended by striking out the definition of “Bonds”.

SECTION 6.  Said section 2 of said chapter 23I, as so inserted, is hereby further amended by inserting after the definition of “Fund”, the following definition:-
“Independent research institution”, a nonprofit research organization that holds tax-exempt status granted under section 501(c)(3) of the Internal Revenue Code and is organized and operated exclusively for scientific or educational purposes but is not a hospital, college, university or private foundation.

SECTION 7.  The definition of “Life sciences” in said section 2 of said chapter 23I, as so inserted, is hereby amended by adding the following words:- , medical devices and chemistry technology.

SECTION 8.  Section 3 of said chapter 23I, as so inserted, 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 administration and finance or his designee; the secretary of housing and economic development or his designee; the president of the University of Massachusetts or his designee; 4 members to 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 board of directors of the Massachusetts Biotechnology Council, 1 of whom shall be a researcher involved in the commercialization of biotechnology, pharmaceuticals or medical diagnostic products, and 1 of whom shall have significant financial experience in the life sciences sector.  Each appointed member shall serve a term of 5 years.  The secretary of housing and economic development shall serve as chair 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 the member.  Any member shall be eligible for reappointment.  Any member may be removed from his appointment by the governor for cause.

 SECTION 9.  Subsection (c) of said section 3 of said chapter 23I, as so inserted, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

(c) Four directors shall constitute a quorum and the affirmative vote of a majority of directors present at a duly called meeting if a quorum is present shall be necessary for any action to be taken by the board.  Any action required or permitted to be taken at a meeting of the directors may be taken without a meeting if all of the directors consent in writing to such action and the consent is filed with the records of the minutes of the meetings of the board.  The consent shall be treated for all purposes as a vote at a meeting.  Each member shall make full disclosure, under subsection (d), of his financial interest, if any, in matters before the board by notifying the state ethics commission, in writing, and shall abstain from voting on any matter before the board in which he has a financial interest, unless otherwise permissible under chapter 268A.

SECTION 10.  Subsection (e) of said section 3 of said chapter 23I, as so inserted, is hereby amended by adding the following sentence:- The board shall also have the power to appoint and employ a treasurer, who shall be the chief financial and accounting officer of the center and shall be in charge of its funds, books of accounts and accounting records.

SECTION 11.  The first sentence of subsection (g) of said section 3 of said chapter 23I, as so inserted, is hereby amended by striking out the words “1 of its members as chairperson,”.

SECTION 12.  Said subsection (g) of said section 3 of said chapter 23I, as so inserted, is hereby further amended by striking out the last sentence.

SECTION 13.  Clause (14) of subsection (a) of section 4 of said chapter 23I, as so inserted, is hereby amended by striking out the words “, issue bonds and apply the proceeds thereof as provided in section 8,”.

SECTION 14.  Said subsection (a) of said section 4 of said chapter 23I, as so inserted, is hereby further amended by striking out clause (16).

SECTION 15.  Clause (17) of said subsection (a) of said section 4 of said chapter 23I, as so inserted, is hereby amended by inserting after the word “nanotechnology” the following words:- “, chemistry technology”.

SECTION 16.  Said subsection (a) of said section 4 of said chapter 23I, as so inserted, is hereby further amended by adding the following clause:-
(30) to review project proposals for certification as life sciences projects as provided in subsection (c). 

SECTION 17.  Said section 4 of said chapter 23I, as so inserted, is hereby further amended by adding the following 2 subsections:-
(b) There shall be a 23-member advisory committee to be appointed by the governor to advise the center and the board.  The members shall be appointed as follows: 10 shall be active members of the Massachusetts Life Sciences Collaborative, at least 2 of whom shall represent small businesses; 5 shall represent regional councils of government, chambers of commerce or regional economic development councils located in western, central, northeastern and southeastern Massachusetts and metropolitan Boston; 5 shall be chancellors at the University of Massachusetts, or other designees, at Amherst, Boston, Dartmouth, Lowell and Worcester; and 3 shall be patient advocates with significant interaction in the life sciences.  The advisory committee shall have 3 ex-officio non-voting members who shall include:  the secretary of administration and finance, or his designee, the secretary of housing and economic development, or his designee, and the secretary of labor and workforce development, or his designee.

Each member shall serve for terms of 3 years.  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 the member who vacated.  Members shall be eligible for reappointment.  Any member may be removed by the governor for cause.  The members of the committee shall serve without compensation, but each member shall be entitled to reimbursement for his actual and necessary expenses incurred in the performance of his official duties.  The duties of the advisory board shall be to advise the center and the board concerning issues related to: research in the life sciences; development of products and the efficacy of the public and private initiatives to further product development in the life sciences, marine technology and marine biology; commercialization of biotechnology, pharmaceuticals, medical diagnostic products or such other areas within the life sciences; and any other such area as is requested by the board.

The advisory committee shall not be a state agency for the purposes of chapter 268A and shall not be subject to section 11A½ of chapter 30A or chapter 66.

(c) The center shall receive and review all project proposals for certification under the Massachusetts Life Sciences Sector Incentive Program established in section 63 of chapter 23A.  The center shall, if it deems necessary and upon a majority vote of the board, grant initial approval to those proposals meeting the certification criteria set forth in said section 63 of said chapter 23A.  The center shall recommend and forward any proposals meeting its initial approval to the department of business development, and the department shall be responsible for determining whether a project proposal shall be deemed a certified life sciences project.

SECTION 18.  Subsection (c) of section 5 of said chapter 23I, as so inserted, is hereby amended by striking out the first paragraph and inserting in place thereof the following subsection:-
(c) The fund shall be held and applied by the center, subject to the approval of the board, to make qualified investments, grants and loans designed to advance the following public purposes: (1) to make targeted investments, including research funding,  proof of concept funding and funding for the development of devices and pharmaceuticals, in the areas of life sciences, nano-technology, biotechnology and stem cell research and to spur manufacturing activities for new or existing advanced technologies and life sciences in the commonwealth; (2) to make matching grants to universities, colleges, independent research institutions, nonprofit entities, public instrumentalities, companies and other entities in connection with support from the federal government, industry and other grant-funding sources related to the expansion of research and development in the areas of life sciences, nano-technology, biotechnology and stem cell 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; (3) to provide bridge financing to universities, colleges, independent research institutions, nonprofit entities, public instrumentalities, companies and other entities in anticipation of the receipt of grants of the type described in clause (1) awarded by, or to be awarded by, the federal government, industry or other sources; (4) to provide fellowships, co-ops, internships, loans and grants; (5) to provide funding for development, coordination and marketing of higher education programs in life sciences fields; (6) to provide work force training grants to prepare individuals for life sciences fields; and (7) to otherwise further the public purposes set forth in this chapter. 
           
The Massachusetts Life Sciences Center, in consultation with the University of Massachusetts, the board of higher education and the secretary of labor and workforce development, shall identify career opportunities for citizens of the commonwealth not presently possessing postgraduate degrees and the educational programs necessary to enable the pursuit of those opportunities through the attainment of specific skills and competencies.
           
The center shall develop strategies for the development and operation of such educational programs, and may provide funding in the amounts necessary to create, advance or sustain the programs.
           
The center shall report annually to the clerks of the senate and the house of representatives any opportunities identified under this section, any strategies identified to capture those opportunities and the amounts of funding provided to support the educational programs.

SECTION 19.  Said chapter 23I, as so inserted, is hereby further amended by striking out section 7 and inserting in place thereof the following section:-
Section 7.  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 co-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 each fiscal year, a complete and detailed report that includes information about the center’s operations and accomplishments, receipts and expenditures during such fiscal year, its assets and liabilities at the end of such fiscal year, the anticipated return on investment to the commonwealth from the investment of funds administered by the center during such fiscal year, a complete list of grants awarded by the center, a list of other funding activities, reports of patents or products resulting from funded activities, and a tracking of job creation as a result of funded projects. Such report shall be posted on the internet in a manner accessible to the public.

SECTION 20.  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 21.  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 22.  Section 6 of chapter 62 of the General Laws is hereby amended by inserting after subsection (l), as most recently amended by section 4 of chapter 63 of the acts of 2007, the following 2 subsections:-
(m) (1) A taxpayer subject to tax under this chapter, which operates a certified life sciences project as defined in section 63 of chapter 23A, may take a credit against the taxes imposed by this chapter, to the extent provided in a certification under section 63 of chapter 23A, in an amount equal to 10 per cent of the cost of qualifying property used exclusively in the commonwealth for the project.  Qualifying property shall be tangible personal property and other tangible property, excluding property taxable under chapter 60A but 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, if the property is depreciable under section 167 of the Code and has 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 per cent of the cost of any qualifying property, as may be provided in a certification under said section 63 of said chapter 23A.
A credit is allowed under this section only to the extent that the taxpayer files the application with the department of business development, in a form as may be determined by the department, within 1 year after the initial project certification under said section 63 of said chapter 23A.
The department may certify that property eligible for the credit is a certified life sciences project as defined in said section 63 of said chapter 23A and that the certified life sciences project reasonably satisfies the return on investment projections specified in the original project proposal as defined in said section 63 of said chapter 23A.  Based upon the information provided in the application and its own independent investigation, the department shall determine whether the project meets the definition of certified life sciences project and whether the project has a reasonable chance of completing the return on investment as advanced in the project proposal as certified by the department.  If the department determines that the certified life sciences project is no longer in compliance, the secretary of housing and economic development shall revoke certification of the project as provided in said section 63 of said chapter 23A and shall provide notification of decertification to the commissioner of revenue.  Nothing in this section shall limit the authority of the commissioner of revenue to adjust a taxpayer’s liability upon audit.  Nothing in this section shall limit any other legal remedies available to the commissioner of revenue or the commonwealth against a life sciences sector business. 
(2) Any taxpayer entitled to a credit under this section for any taxable year may carry over and apply to its tax for any of the next succeeding 10 taxable years, that portion, as reduced from year to year, of those credits which exceed the tax for the taxable year but the taxpayer shall not apply the credit to its tax for any taxable year beginning more than 10 years after the certified life sciences project ceases to qualify as such under chapter 23A.
(3) The commissioner of revenue shall adopt rules and regulations as are necessary to implement this section.   Such rules and 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.   In addition, such rules and regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.
(4)  If a credit allowed to a certified life sciences project under this subsection, or a credit as may be allowed under subsection (g) as limited in this subsection, exceeds the tax otherwise due under chapter 62, 90 per cent of the balance of such credit shall, at the option of the taxpayer, 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, the credit carryover provisions of paragraph (2) and of paragraph (2) of subsection (g) shall not apply. 
(n) (1)  As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“Primarily”, more than 50 per cent.
“Research and development costs”, in-house research expenses within the meaning of section 41(b)(2) of the Internal Revenue Code.
“User fees”, the monetary amount actually paid by a certified life sciences project to the U.S.F.D.A. that constitutes the fee due upon the submission of a human drug application or supplement under 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)  Except as otherwise limited by subsection (e) of section 31M of chapter 63, there may be allowed to any certified life sciences project, as defined by section 63 of chapter 23A, as a refundable credit against the tax liability imposed under this chapter an amount equal to 100 per cent of the cost of user fees paid by such certified life sciences project, to the extent provided in a certification under said section 63 of said chapter 23A.
(3)  A certified life sciences project 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. 
(4)  A credit allowed under this section may be taken only after the taxpayer completes an application signed by an authorized representative of the applicant and files the application with the department of business development within 1 year after the initial project certification under section 63 of chapter 23A.  
(5)  In the event that such credit allowed to a certified life sciences project exceeds the tax otherwise due under chapter 62, 90 per cent of the balance of that credit shall be refundable to the taxpayer for the taxable year in which the credit is claimed.
(6)  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.
(7)  Only user fees paid by a certified life sciences project to the U.S.F.D.A. on or after the effective date of this section shall be eligible for the credit.

SECTION 23.  Said section 6 of said chapter 62 is hereby further amended by striking out subsections (m) and (n), as inserted by section 22 of this act.

SECTION 24.  Chapter 63 of the General Laws is hereby amended by adding after section 31L the following section:-
Section 31M. (a)  As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“Primarily”, more than 50 per cent.
“Research and development costs”, in-house research expenses within the meaning of section 41(b)(2) of the Internal Revenue Code.
“User fees”, the monetary amount actually paid by a certified life sciences project to the U.S.F.D.A. that constitutes the fee due upon the submission of a human drug application or supplement under 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.
(b)  Except as otherwise limited by subsection (e), there shall be allowed to any certified life sciences project, as defined by section 63 of chapter 23A, as a refundable credit against the tax liability imposed under this chapter an amount equal to 100 per cent of the cost of user fees paid by such certified life sciences project, to the extent provided in a certification under said section 63 of said chapter 23A.
(c)  A certified life sciences project 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)  A credit allowed under this section may be taken only after the taxpayer completes an application signed by an authorized representative of the applicant, and files the application with the department of business development within 1 year after the initial project certification under section 63 of chapter 23A.  
(e)  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 certified life sciences project is not subject to section 32C.  If the credit allowed to a certified life sciences project exceeds the excise otherwise due under said subsection (b) of said section 32 or said subsection (b) of said section 39, 90 per cent of the balance of that credit shall be refundable to the taxpayer for the taxable year in which the credit is claimed.
If a certified life sciences project files as a member of a combined group and applies its excess credit against the excise of another group member, the credit as applied to corporations other than the certified life sciences project is not subject to section 32C and may reduce to zero the excise due under subsection (b) of section 32 or subsection (b) of section 39.  If the credit allowed to a certified life sciences project that is applied against the excise liability of such other corporations exceeds the excise otherwise due to such corporations under this chapter, 90 per cent of the balance of that credit shall be refundable to the taxpayer for the taxable year in which the credit is claimed.
(f)  For 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.
(g)  Only user fees paid by a certified life sciences project to the U.S.F.D.A. shall be eligible for the credit.

SECTION 25.  Said chapter 63 is hereby amended by striking out section 31M, as inserted by section 24 of this act.

SECTION 26.  Section 38 of said chapter 63, as appearing in the 2006 Official Edition, is hereby amended by striking out, in line 162, the word “and”.

SECTION 27.  Said section 38 of said chapter 63, as so appearing, is hereby further amended by inserting after the word “contracts”, in line 169, the following words:- ; and (6) To the extent provided in a certification under section 63 of chapter 23A, a certified life sciences project, as defined in section 63 of chapter 23A, is deemed to be taxable in the state of the purchaser if the property of the project is delivered or shipped to a purchaser in another state.

SECTION 28.  The third paragraph of subsection (f) of said section 38 of said chapter 63 is hereby amended by striking out clause (6), inserted by section 27 of this act.

SECTION 29.  The second paragraph of section 38C of said chapter 63, as appearing in the 2006 Official Edition, is hereby amended by adding the following sentence:- A certified life sciences project shall, to the extent provided in a certification under section 63 of chapter 23A, be deemed to be a research and development corporation for purposes of exemptions under chapters 64H and 64I.  

SECTION 30.  The second paragraph of said section 38C of said chapter 63 is hereby amended by striking out the last sentence, inserted by section 29 of this act.

SECTION 31.  Section 38M of said chapter 63, as appearing in the 2006 Official Edition, is hereby amended by adding the following subsection:-
           
(j)  To the extent provided in a certification under section 63 of chapter 23A, if the credit allowed under this section is allowed with respect to a certified life sciences project and the credit that may be claimed by a taxpayer under this section exceeds the amount that may otherwise be allowed under this section for a taxable year, 90 per cent of the balance of that credit attributable to a certified life sciences project shall, at the option of the taxpayer and, to the extent provided in such certification, be refundable to the taxpayer for the taxable year.  If such credit balance is refunded to the taxpayer, the credit carryover provision in subsection (f) shall not apply. 

SECTION 31A.  Said chapter 63 is hereby further amended by inserting after section 38P the following new section:-
           
Section 38P½ .  (a) For the purposes of this section, “qualified life science company” shall mean an affiliated group, as defined in section 1504(a) of the Internal Revenue Code of 1986, that derives at least 70 per cent of its revenue from the sale or license of life science products or intellectual property, or from the rendering of contract life science services, or from the combination of the 2; provided, however, that either (1) greater than 70 per cent of all commercial employees, excluding sales representatives, shall be Massachusetts-based employees; or (2) greater than 70 per cent of all tangible leased or owned property, excluding inventory, shall be apportionable to the commonwealth in the fiscal year, notwithstanding the company’s ability to qualify for single sales factor apportionment.
(b) For a qualified life science company, research and development costs, within the meaning of section 4(b) of the Internal Revenue Code, shall include, to the extent they relate to legally mandated clinical trial activities, those qualified research expenditures that are performed both inside and outside of the commonwealth. (c) A qualified life science company shall be allowed a credit against its excise due under this chapter equal to the sum of 10 per cent of the excess, if any, of the qualified research expenses for the taxable year, over the base amount, and 15 per cent of the basic research payments determined under section 41(e)(1)(A) of the Internal Revenue Code. The terms “qualified research expenses”, “base amount”, “qualified organization base period amount”, “basic research” and any other terms affecting the calculation of the credit shall, unless the context otherwise requires or unless otherwise stated in this section, have the same meanings as under said section 41 of said Code, as amended and in effect on August 12, 1991.  In determining the amount of the credit allowable under this section, the commissioner of revenue may aggregate the activities of all corporations that are members of a controlled group of corporations, as defined by 41(f)(1)(A) of said Code, and may aggregate the activities of all entities, whether or not incorporated, that are under common control, as defined in section 41(f)(1)(B) of said Code.
(d) For purposes of section 30, the deduction from gross income that may be taken with respect to any expenditures qualifying for a credit under said section 41 of said Code, as amended and in effect on August 12, 1991 shall be based upon its cost less the credit allowable under this section; provided, however, that section 280C(c) of said Code shall not apply.
(e) The credit allowed hereunder for any taxable year shall not reduce the excise to less than the amount due under subsection (b) of section 32, subsection (b) of section 39, section 67 or under any other general or special law.
(f) The credit allowed under this section is limited to 100 per cent of a corporation’s first $25,000 of excise, as determined before the allowance of any credits, plus 75 per cent of the corporation’s excise, as so determined in excess of $25,000. The commissioner of revenue shall promulgate regulations similar to those authorized under section 38(c)(2)(B) of the Internal Revenue Code for purposes of apportioning the $25,000 amount among members of a controlled group. Nothing in this section shall alter the provisions of section 32C, as it affects other credits under this chapter.
(g) If a corporation files a combined return of income under section 32B, a credit generated by an individual member corporation under this section shall first be applied against the excise attributable to that company under section 32 or 39, subject to the limitations of subsections (c) and (d). A member corporation with an excess research and development credit may apply its excess credit against the excise of another group member if such other member corporation may use additional credits under the limitations of said subsections (c) and (d). Unused, unexpired credits generated by a member corporation shall be carried over from year to year by the individual corporation that generated the credit and shall not be refundable. Nothing in this section shall alter the provisions of subsection (h) of section 31A.
(h) Any corporation entitled to a credit under this section for any taxable year may carry over and apply to its excise for any of the next succeeding 15 taxable years that portion, as reduced from year to year, of its credit which exceeds its excise for the taxable year. Any corporation may carry over and apply to its excise for any subsequent taxable year that portion, as reduced from year to year, of those credits which were not allowed by subsection (f).
(i) The commissioner of revenue shall promulgate such regulations as are necessary to implement this section.

SECTION 31B.  Said section 38M of said chapter 63 is hereby amended by striking out subsection (j), inserted by section 31.

SECTION 32.  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 words shall, unless the context clearly requires otherwise, have the following meanings:
           
“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, nonprofit entity, unincorporated association or other entity engaged in life sciences research, development, manufacturing or commercialization in the commonwealth, and any affiliate thereof, which is, or of which the members are, subject to taxation under this chapter.
“Person”, a natural person, corporation, association, partnership or other legal entity.
“Taxpayer”, a life sciences company or person subject to taxation under this chapter or chapters 62, 64H or 64I.
(b)(i)  A taxpayer may, to the extent authorized under the life sciences tax incentive program established in section 63 of chapter 23A, take a credit against the taxes imposed under this chapter in an amount equal to 10 per cent of the cost of qualifying property used exclusively in the commonwealth. Qualifying property shall be tangible personal property and other tangible property, excluding property that is taxable under chapter 60A but including buildings and structural components of buildings acquired by purchase, as defined under section 179(d) of the Internal Revenue Code, as amended and in effect for the taxable year, if the property is depreciable under section 167 of the Code and has 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. 
(ii) A credit shall be allowed under this section only to the extent that the taxpayer files an application with the department of business development, in a form as may be determined by the department, within 1 year after the project certification under section 63 of chapter 23A.
(iii) The credit allowed under this section may be taken by an eligible corporation if neither credit allowed by section 31A nor section 31H is taken by such corporation.  The credit allowed by section 38N shall not be taken except as may be provided in a certification under section 63 of chapter 23A and shall not exceed 2 per cent of the cost of any qualifying property.  
(iv)  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.
(c)  The credit allowed by this section shall not be subject to section 32C.
(d)  If a taxpayer is subject to a minimum excise under 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 under the life sciences tax incentive program established in section 63 of chapter 23A, carry over and apply to its excise for any of the next succeeding 10 taxable years, that portion, as reduced from year to year, of those credits which were not allowed by subsection (d) 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 this section shall first be applied against the separately determined excise attributable to that member, subject to the limitations of said subsection (d). 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 said subsection (d). 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 adopt regulations necessary to implement this section.  The regulations may provide for 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. In addition, such rules and regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.
(h)  If a credit allowed to a taxpayer under this section or a credit as may be allowed under section 38N as limited in this subsection, exceeds the excise otherwise due under this chapter, 90 per cent of the balance of such credit may, at the option of the taxpayer and to the extent authorized under the life sciences tax incentive program established in section 63 of chapter 23A, 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, the credit carryover provision in subsection (d) and in said section 38N shall not apply.
Section 38V.  A taxpayer which is a certified life sciences company under section 63 of chapter 23A shall be allowed a deduction under paragraph (4) of section 30 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 section 45C of the Internal Revenue Code and otherwise disallowed as a deduction under section 280C(b) of said Code.

SECTION 33.  Said chapter 63 is hereby further amended by striking out sections 38U and 38V, inserted by section 32 of this act.

SECTION 34.  The first paragraph of section 42B of said chapter 63, as appearing in the 2006 Official Edition, is hereby amended by adding the following sentence:- A certified life sciences project shall, to the extent provided in a certification under section 63 of chapter 23A, be deemed to be a research and development corporation for purposes of exemptions under chapters 64H and 64I.  

SECTION 35.  Said section 42B of said chapter 63 is hereby further amended by striking out the last sentence, inserted by section 34 of this act.

SECTION 36.  Section 6 of chapter 64H of the General Laws is hereby amended by inserting after paragraph (ww), as amended by section 12 of chapter 63 of the acts of 2007, the following paragraph:-
           
(xx)  Sales of tangible personal property purchased for a certified life sciences project, as defined by section 63 of chapter 23A, for use in connection with the construction, alteration, remodeling, repair or remediation of the research, development or manufacturing facilities and the utility support systems if the facilities and utility support systems are constructed, altered, remodeled, repaired or remediated in furtherance of a certified life sciences project.   This section shall apply only to the extent provided in a certification under said section 63 of said chapter 23A.  For purposes of this paragraph, the term “utility support systems” means all areas of utility support systems including, but not limited to, site, civil, mechanical, electrical and plumbing systems. 

SECTION 37.  Said section 6 of said chapter 64H is hereby further amended by striking out paragraph (xx), inserted by section 36 of this act.

           
SECTION 37A. Only certified life sciences projects authorized under section 63 of chapter 23A of the General Laws shall be eligible for the available capital funding provided in items 7007-0937 in section 2B of this act.

SECTION 37B.  There shall be a community college life sciences training council, for the purposes of developing and implementing a life sciences training program at the community colleges in the commonwealth’s system of public institutions of higher education, in this act called the community college system, including: Berkshire Community College; Bristol Community College; Bunker Hill Community College; Cape Cod Community College; Greenfield Community College; Holyoke Community College; Massachusetts Bay Community College; Massasoit Community College; Middlesex Community College; Mount Wachusett Community College; Northern Essex Community College; North Shore Community College; Quinsigamond Community College; Roxbury Community College; and Springfield Technical Community College. 
           
In developing a training program, the council shall consider the number of job vacancies in the commonwealth’s life sciences industry, the technical expertise that is required for community college system students to compete for these jobs, the need for developing mentorship and internship components to the program and the impact of the program on retaining manufacturing and research and development jobs in the commonwealth.   
           
The council shall consist of the presidents of the institutions comprising the community college system or their respective designees; the secretary of education, or his designee; and five members appointed by the governor, each of whom shall be a chief executive officer, or his designee, of a Massachusetts-based life sciences corporation which is a member of the Massachusetts Biotechnology Council.  The chair of the Council shall be the secretary of education or his designee.    
           
The council shall report its progress in developing and implementing the program, together with any recommendations for legislative action, to the clerks of the senate and the house of representatives, and to the joint committee on higher education, not later than 1 year after the effective date of this act.  By December 31 of each year, the council shall submit an annual report to the joint committee on higher education detailing the program, including a description of the program, the number of students participating in the program, the number of permanent job and internship placements made through the program and any recommendations for improving the program.

SECTION 37C. All records including, but not limited to, documents in the custody or control of the Life Sciences Center, all documents  required to be prepared or maintained under this act, all documents provided to the Life Sciences Center by an private entity including, but not limited to, application materials relative to certifying a  life sciences project, all progress reports, recapture notices and any other records or proceedings relating thereto shall be subject to disclosure under chapter 66 of the General Laws. All meetings of the Life Sciences Center shall be subject to the open meeting laws.

SECTION 37D. The Massachusetts Life Sciences Center shall, within 1 year of the passage of this act and every 5 years thereafter, file a report which analyzes any regions and specific municipalities in the commonwealth with the potential for the development of clusters in at least 1 of the life sciences as defined in subsection (a) of section 63, as inserted by section 4.  For the purposes of this section, a cluster shall be an area where many life science businesses could be developed in close proximity to each other. The report shall contain a strategy developed by the center to facilitate the development of clusters in a timely and cost-effective manner. The report shall be filed with the secretary of housing and economic development, the clerks of the house of representatives and the senate, and the house and senate committees on ways and means.
           
SECTION 37E. All private entities, including subcontractors, involved in the design, engineering, construction, maintenance or operation of the certified life sciences project shall include in its application to the appointing authority whether the developer has contracts with labor organizations or a provision assuring labor harmony during all phases of construction, renovation or reconstruction of the development.
           
All private entities, including subcontractors, involved in the design, engineering, construction, maintenance or operation of the certified life sciences project shall furnish to the secretary of administration and finance and to the chairs of the senate and house committees on ways and means, documentation showing all employees employed on the project have hospitalization and medical benefits that meet the minimum requirements of the board of the commonwealth health insurance connector.
           
All private entities, including subcontractors, involved in the design, engineering, construction, maintenance or operation of the certified life sciences project shall classify individuals employed on the project as employees rather than independent contractors and shall comply with all laws concerning workers’ compensation insurance coverage, unemployment insurance, social security taxes and income taxes as respects all employees.

SECTION 38.  Section 63 of chapter 23A of the General Laws, inserted by section 4 of this act, and subsection (c) of section 4 of chapter 23I of the General Laws, as appearing in section 4 shall take effect on January 1, 2009 and shall expire on December 31, 2018.

SECTION 38A.  Section 38Q of chapter 63 of the General Laws shall apply to expenditures incurred on or after January 1, 1991; provided, however, that in the case of any taxable year which began before January 1, 1991, and ended before December 31, 1991, the base amount and the qualified organization base period amount with respect to such taxable year shall be the amount which bears the same ratio to the base amount and the qualified organization base period amount for such year, determined without regard to this section, as the number of days in such taxable year on or after January 1, 1991, bears to the total number of days in that taxable year.

SECTION 38B.  Said section 38Q of said chapter 63, as so appearing, shall take effect for taxable years beginning on January 1, 2008 and before January 1, 2011.

SECTION  39.  The sales tax exemption in paragraph (xx) in section 6 of chapter 64H shall apply to sales of tangible personal property purchased for a certified life sciences project on or after the effective date of this act.

SECTION  40.  Eligibility for tax credit on user fees under paragraph (2) of subsection (n) of section (6) of chapter 62 of the General Laws and under subsection (g) of section 31M of chapter 63 of the General Laws shall apply to user fees paid on or after the effective date of this act. 

SECTION  41.  The terms of all members appointed to the board of directors of the Life Sciences Center in 2006, under of chapter 123 of the acts of 2006, shall terminate on the effective date of this act.   All appointed board members terminated under this section shall be eligible to be reappointed by the governor.  Such appointments shall be made in accordance with section 3 of chapter 23I of the General Laws. 

SECTION 42.  Notwithstanding any general or special law to the contrary, the Massachusetts Life Sciences Center, established in 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 in 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 other organizations working with Israel.

SECTION 42A.  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 an accessory parking lot owned by the 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 the conveyance shall be approved by the board of trustees of the University of Massachusetts and the board of directors of the Massachusetts Development Finance Agency. The conveyance shall be subject to restrictive covenant prohibiting the University of Massachusetts at Dartmouth from occupying more than 60 per cent 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 other monies earned in connection with owning and operating the Advanced Technology manufacturing Center and shall 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 42B.  The value of any tax incentive award under the life sciences sector incentive program that may extend beyond December 31, 2018, including carry-forwards of losses or credits, shall be taken into account during the year awarded and the full amount of such tax benefits potentially realized in periods after December 31, 2018 shall be counted against the annual ceilings for years ending prior to January 1, 2019.  Tax incentives authorized by the LSSIP shall count toward this $25,000,000 annual ceiling only if they are not otherwise available to a taxpayer.

SECTION 43.  Sections 22, 24, 27, 29, 31, 32 and 34 shall take effect for taxable years beginning on or after January 1, 2009 and before January 1, 2019.

SECTION 44.  Sections 23, 25, 28, 30, 31B, 33, 35 and 37 shall take effect on December 31, 2018.