AN ACT RELATIVE TO INVESTMENTS IN EMERGING TECHNOLOGIES TO PROMOTE JOB CREATION, ECONOMIC STABILITY AND COMPETITIVENESS IN THE MASSACHUSETTS ECONOMY.

Whereas , The deferred operation of this act would tend to defeat its purpose, which is to make forthwith supplemental appropriations for one-time costs for certain capital spending, public investment, and bonded debt of the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Subparagraph (a) of paragraph (3) of subsection (j) of section 3A of said chapter 21E of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by striking out clause (i) and inserting in place thereof the following clause:-

(i) the proposed redevelopment or reuse of the property will contribute to the economic or physical revitalization of the community in which it is located, and thereby provides the following public benefits, including, but not limited to redevelopment that: (a) provides new, permanent jobs, or (b) results in affordable housing benefits, or (c) provides historic preservation, or (d) creates or revitalizes open space, or (e) will provide some other public benefit to the community as determined by the attorney general; and.

SECTION 2. Subsection (b) of the third paragraph of section 6 of said chapter 21E, as so appearing, is hereby amended by striking out clauses (i), (ii) and (iii) and inserting in place thereof the following clause:-

(i) said owner or operator is not subject to an outstanding administrative or judicial enforcement action under this chapter for a release of oil or hazardous materials at the time of the transfer of the subject property, and (ii) said owner or operator records notice of the restrictions of the use of said property pursuant to section 6 of this chapter, and any regulations promulgated hereunder.

This section was vetoed by the Governor.
SECTION 3. Chapter 23A of the General Laws is hereby amended by striking out section 3H, as so appearing, and inserting in place thereof the following section:-

Section 3H. The secretary of economic development shall appoint the director of the Massachusetts permit regulatory office, who shall have experience with permitting and business development and who shall serve as the ombudsman to new and expanding businesses to provide one-stop licensing for businesses, and development in order to streamline and expedite the process of obtaining state licenses, permits, state certificates, state approvals, state registrations, state charters and other requirements of law. The ombudsman shall communicate with municipal officials responsible for local review procedures to determine the municipal perspective on the proposed project, and to facilitate communication between the municipality and state agencies. The Massachusetts permit regulatory office shall consult with each regional office of the Massachusetts Office of Business Development, in order to better serve local businesses. Each executive office and each of the departments of environmental protection, business and technology, housing and community development, labor, workforce development and consumer affairs and business regulation shall appoint a senior staff member who shall be responsible for coordinating the efforts of the commonwealth to provide one-stop licensing at the state level for businesses and developments in order to streamline and expedite the process of obtaining state licenses, state permits, state certificates, state approvals, state registrations, state charters and other requirements of law. The senior staff members shall meet at least once a month with the ombudsman and shall meet with each other on a regular basis. The secretary of administration and finance shall work with the secretary of economic development, the ombudsman and senior staff members to develop a recommended format for an application form and procedure which shall be used by all executive offices when possible. The ombudsman shall file an annual report with the house and senate committees on ways and means by January 1 of each year on the activities of the Massachusetts permit regulatory office, including legislative recommendations on business development and expansion efforts.

SECTION 4. Section 60 of said chapter 23A, as so appearing, is hereby amended by inserting after the word "Fund", in line 110, the following words:- which shall be considered an expendable trust fund on the books of the commonwealth and,- and by striking out the second sentence and inserting in place thereof the following 4 sentences:- All monies credited under this subsection shall remain in said Redevelopment Access to Capital Fund, not subject to appropriation, to meet the obligations of the program set forth in this section. The agency shall not utilize said monies for any purpose other than the redevelopment access to capital fund as established herein. Deposits to the fund shall be made in accordance with section 34 of chapter 29 in such manner as will secure the highest interest rate available consistent with safety of the fund and with the requirement that all amounts on deposit be available for immediate withdrawal at any time. The fund shall be expended only for the purposes of this section at the direction of the agency and any unexpended balances shall be redeposited, as herein provided, for future use consistent with this section.

This section was vetoed by the Governor.

SECTION 4A. Section 9 of chapter 23D of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by striking out paragraphs (a) to (g), inclusive, and inserting in place thereof the following paragraph:-

(a) The trust shall be governed by the board of directors of the Massachusetts Development Finance Agency, established under chapter 23G, and such board may promulgate, modify, supersede or rescind orders, rules and regulations, by-laws or guidelines governing the operation of the trust.

This section was vetoed by the Governor.
SECTION 4B. Said section 9 of said chapter 23D, as so appearing, is hereby further amended by striking out the letter (h), in line 58, and inserting in place thereof the letter (b),- and by striking out, in line 64, the letter (i) and inserting in place thereof the letter (c).

This section was vetoed by the Governor.
SECTION 4C. Said chapter 23D is hereby amended by striking out section 10, as so appearing, and inserting in place thereof the following section:-

Section 10. The offices of the trust shall be located in the offices of the Massachusetts development finance agency. The executive director of said agency shall be the chief executive, operational and administrative officer of the trust and shall direct the resources and staff of the trust to achieve the purposes of the trust.

This section was vetoed by the Governor.
SECTION 4D. Section 3 of chapter 23G of the General Laws, as so appearing, is hereby amended by adding the following clause:-

(34) to execute the powers of the economic stabilization trust and other powers conferred pursuant to sections 8 to 16, inclusive of chapter 23D.

SECTION 5. Said chapter 23G of the General Laws is hereby amended by striking out sections 27 and 28, as so appearing, and inserting in place thereof the following 2 sections:-

Section 27. (a) There is hereby established and placed within the agency the Emerging Technology Fund, referred to in this section as the fund, to which 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 agency, 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 advisory committee created pursuant to section 28 and pursuant to rules approved by the agency for the fund, secured or held by the fund, and any other monies which may be available to the agency for the purposes of the fund from any other source or sources. The agency shall hold the fund in an account or accounts separate from other funds or accounts.

(b) The agency shall invest and reinvest the fund and the income thereof, except as hereinafter provided, only as follows: (1) in the making of qualified investments, pursuant to rules approved by the agency; (2) in defraying the ordinary and necessary expenses of administration and operation associated with the fund; (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 agency, 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 agency to make qualified investments designed to advance the following public purposes: (1) to stimulate increased financing for new manufacturing, research and development and related facilities in the commonwealth by leveraging private financing for highly, productive state-of-the-art facilities, which will lead to increased and more rewarding employment opportunities for the citizens hereof by providing financing related thereto including, without limitation, financing of the construction or expansion of such new facilities, including specialized real estate improvements and specialized equipment therefor; and (2) 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 advanced research and development activities in new and emerging technologies and new application of existing technologies 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, 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.

The agency shall make no such qualified investment pursuant to clause (1) of subsection (b) unless the agency 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. In addition, the agency shall make no such qualified investment pursuant to said clause (1) of said subsection (b) unless such qualified investment is in conformity with rules approved by the agency.

Said rules shall define which industries within the commonwealth shall be considered "emerging technology industries" for purposes hereof, provided that such term shall include industries employing new or state-of-the-art technology in biotechnology, pharmaceuticals, defense and homeland security-related technologies, advanced materials, electronics, nanotechnology, environmental, medical device, information technology, plastics and polymers, telecommunications industries involved in the research and development of state-of-the-art medication delivery devices or any other technological field or industry which the advisory committee and the agency has classified or shall classify as an emerging 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, grants made only pursuant to clause (2) of subsection (c), or other financing or credit enhancing devices, as made by the agency 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 clause (1) of said subsection (c) shall involve a transaction with the participation of at least two at-risk private parties and that the qualified investment provided in any particular instance provides no more than 25 per cent of the overall financing of the new manufacturing, research and development or related facility referred to therein.

Said rules shall, in addition, set forth the terms, procedures, standards and conditions which the agency 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, however, 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 as prescribed by the advisory committee; and provided, further, that said rules shall provide for negotiated agreements between the agency and each recipient of a qualified investment regarding the terms and conditions by which the fund's support thereof could be reduced or withdrawn.

(d) The agency 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 agency 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; provided, however, that if the creation or operation of such a separate entity as proposed by the agency would require additional or clarifying amendments to the enabling act of the agency, said proposal shall include proposed statutory language with regard thereto.

(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 and the clerks of the house of representatives and senate.

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

(g) The agency 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 law, unless the agency, at the time of making of such qualified investment, deposits in the fund from the proceeds thereof or from any fees and charges imposed relative to the making of qualified investments, or otherwise, an amount which, together with the amount in the fund, shall not be less than the minimum requirement; provided, however, that at no time shall the minimum requirement of the fund be less than the maximum amount of principal and interest becoming due in the current and succeeding fiscal year of the agency on all outstanding bonds and other obligations which are secured by the fund or such greater amount as may be set forth in the rules governing the fund.

(h) In making the initial disbursements from the fund, not less than $2,500,000 shall be disbursed over a 5 year period to each of the 5 geographic regions of the state, the central area, the greater Boston area, the north east area, the south east area and the western area, as those areas are defined generally as follows:

"Central area", the Northern Worcester Service Delivery Area and the Southern Worcester Service Delivery Area as specified in 20 CFR 661.280;

"Greater Boston Area", the Boston Service Delivery Area, the Metropolitan North Service Delivery Area and the Metropolitan South/West Service Delivery Area as specified in 20 CFR section 661.280;

"North East Area", the Lower Merrimack Valley Service Delivery Area, the Northern Middlesex Service Delivery Area and the Southern Essex Service Delivery Area as specified in 20 CFR 661.280;

"South East Area", the Bristol Service Delivery Area, the Brockton Service Delivery Area, the Cape and Islands Service Delivery Area, the New Bedford Service Delivery Area and the South Coastal Service Delivery Area as specified in 20 CFR 661.280; and

"Western Area", the Berkshire Service Delivery Area, Franklin/Hampshire Service Delivery Area and Hampden Service Delivery Area as specified in 20 CFR 661.280.

Section 28. (a) There is hereby established an advisory committee relative to the fund consisting of the director of business and technology, and 6 other persons, 3 to be appointed by the governor and 3 to be appointed by the board of the agency; provided, however, that said director of business and technology may designate another person from time to time to act in his or her place for a particular purpose, including the right to attend and vote at a meeting of the advisory committee; provided, further, that at least two members of the advisory committee appointed by the governor shall be representatives of an emerging technology industry and at least one member of the advisory committee appointed by the governor shall have knowledge of financing of emerging technology companies, and provided, further, that at least one member of the advisory committee appointed by the board of the agency shall be a representative of an emerging technology industry, and at least one member of the advisory committee appointed by the board of the agency shall have knowledge of financing of emerging technology companies and one member of the advisory committee appointed by the board of the agency shall be a member of the agency's board of directors. The executive director of the Massachusetts Technology Park Corporation shall serve as an ex-officio member of said advisory committee.

Each appointed member of the advisory committee shall serve for a term of 3 years and thereafter until such member's successor is appointed; provided, however, that of those initially appointed, 1 of each the governor's appointees and the board of the agency's appointees shall serve for a term of 1 year, 1 of each of the governor's appointees and the board of the agency's appointees shall serve for a term of 2 years, and 1 of each the governor's appointees and the board of the agency's appointees shall serve for a term of 3 years. Any person appointed to fill a vacancy on the advisory committee shall be appointed in a like manner and shall be eligible for reappointment. Any member of the advisory committee appointed by the governor may be removed by the governor for cause. Any member of the advisory committee appointed by the board of the agency may be removed by the board of the agency for cause. The advisory committee and the agency are encouraged to award 1 or more contracts with regard to the management of the fund, which may provide performance-based incentives, with regard to such management.

(b) The members shall elect annually a chairman and vice chairman and shall adopt by-laws governing the affairs of the advisory committee. Four members of the advisory committee shall constitute a quorum and the affirmative vote of a majority of the members present and eligible to vote at a meeting shall be necessary for any action to be taken by the advisory committee; and, provided, that except as set forth in the preceding clause, no vacancy in the membership of the advisory committee shall impair the right of a quorum to exercise the powers of the advisory committee.

The members shall serve without compensation, but each member shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of official duties. The advisory committee may meet as often as the members shall decide provided, that it shall meet at least once in each calendar quarter and its approval shall be necessary for any expenditure from or commitment of the assets of the fund or entry into contracts of the type specified in the last sentence of subsection (a), provided, that the advisory committee may, by majority vote, elect, in its discretion, to delegate some or all of said approval rights to the board or the staff of the agency provided that any such delegation may be revoked at any time by majority vote of the advisory committee. The agency shall manage the qualified investments made from the fund including, without limitation, the closing, servicing, monitoring, underwriting, and where appropriate, the enforcement of rights with respect thereto and shall provide such staff and supporting assistance as deemed appropriate by the board of directors of the Agency to enable the advisory committee to discharge its duties in a manner consistent with its public purpose. The provisions of subsection (d), and subsections (f) to (i), inclusive, and subsection (l) of section 2 shall apply as well to the members and affairs of the advisory committee created pursuant to this section.

SECTION 6. Chapter 23H of the General Laws is hereby amended by adding the following 3 sections:-

Section 8. As used in sections 8 to 10, inclusive, the following words shall have the following meanings:

"Eligible service provider", a community-based nonprofit organization that provides workforce development services, such as job skills training, education, placement services, and supportive services.

"Potential employee target groups", persons receiving TAFDC, older adults, immigrants, persons residing in economic opportunity areas, and other persons who are underemployed or unemployed.

"Qualifying consortium", a collaborative program of service that includes a community-based nonprofit organization or union/labor-management program or institution of higher education and an employer.

Section 9. A health professions worker training grant program is established for the purpose of responding to the need for workers in various health care professions, subject to the requirements of section 2RR of chapter 29.

A qualifying consortium shall apply for grant funding from the fund in the manner specified by the director.

Applications for grants must describe targeted participants of the proposed grant application and must describe the specific critical work force shortage the program is designed to alleviate. The application must include verification that in the process of determining that a critical work force shortage exists in the target area, the applicant has (1) consulted available data on worker shortages and (2) conferred with employers in the target area.

Within the limits of available appropriations, the director shall make grants not to exceed $200,000 each to qualifying consortia to provide workforce development services which may lead to employment in the health professions. Grant awards must establish specific, measurable outcomes and timelines for achieving those outcomes.

A qualifying consortium shall implement a marketing and outreach strategy to recruit into the health care professions persons from one or more of the potential employee target groups. Recruitment strategies must include: a screening process to evaluate whether potential employees may be disqualified as the result of a required background check or are otherwise unlikely to succeed in the position for which they are being recruited; and a process for modifying course work to meet the training needs of non-English-speaking persons, when appropriate.

High school students participating in a training program shall not be permitted to work more than 20 hours per week when school is in session.

Section 10. By April 1, 2004, the state workforce investment board shall develop performance standards for workforce development and job training programs receiving state funding. The standards may vary across program types. The state workforce investment board may contract with a consultant to develop the performance standards. The state workforce investment board shall consult with stakeholder advocacy groups, community-based nonprofit service providers, and local workforce investment boards in the development of both performance standards and reporting requirements. The standards must at a minimum measure: the employability levels of individuals as defined by basic skill level, the amount of work experience, and barriers to employment prior to program entry; the individual's annual income and employability level for the 12 months prior to entering the program, the starting annual income upon placement after completing the program, employability level and annual income one year after completion of the program, and the individual's reported satisfaction; the program completion rate, placement rate, employability level upon placement, and one-year retention rate; and the cost per placement and per job retained at one year and the percentage of program funding coming from the state and other levels of government.

Commencing April 1, 2005, all workforce development services and job skills training programs receiving state funds must submit an annual performance report to the state workforce investment board. The state workforce investment board may develop a uniform format for the report and prescribe the manner in which the report is required to be submitted.

By December 31 of each odd-numbered year and commencing December 31, 2005, the director of the department of workforce development, in consultation with the state workforce investment board, shall submit recommendations to the house and senate clerks regarding modifications to, including the elimination of, existing statutory requirements with respect to workforce development and job training programs. The recommendations shall include recommendations regarding funding levels required to meet worker and employer skill development needs, with a particular focus on low income and low wage workers.

This section was vetoed by the Governor.
SECTION 7. Chapter 26 of the General Laws is hereby amended by inserting after section 8J the following section:-

Section 8K. (a) There shall be an independent council to be known as the Health Insurance Cost Containment Council.

(b) The council shall consist of 16 voting members, composed of and appointed in accordance with the following:

(1) the secretary of the executive office of health and human services;

(2) the commissioner of the division of insurance;

(3) the commissioner of the division of medical assistance;

(4) two representatives of the business community, at least 1 of whom represents small business, who are purchasers of health care, none of which is primarily involved in the provision of health care or health insurance, 1 of whom shall be appointed by the president of the senate and 1 of whom shall be appointed by the speaker of the house of representatives from a list of 7 qualified persons recommended by the Associated Industries of Massachusetts of which 3 nominees shall be representatives of small business;

(5) two representatives of organized labor, 1 of whom shall be appointed by the president of the senate and one of whom shall be appointed by the speaker of the house of representatives from a list of 5 qualified persons recommended by the Massachusetts AFL-CIO;

(6) one representative to represent consumers, appointed by the governor from a list of 3 qualified persons recommended by the executive director of Health Care for All;

(7) one representative of hospitals, appointed by the governor from a list of 3 qualified hospital representatives recommended by the Massachusetts Hospital Association; but the representative under this paragraph may appoint a delegate to act for the representative only at meetings of committees as provided for in subsection (g);

(8) one representative of physicians, appointed by the governor from a list of 3 qualified physician representatives recommended by the Massachusetts Medical Society; but the representative under this paragraph may appoint a delegate to act for the representative only at meetings of committees as provided for in subsection (g);

(9) one representative of nurses, appointed by the governor from a list of 3 qualified persons recommended by the Massachusetts Nurses Association and the Massachusetts Organization of Nurses Executives;

(10) one representative from a health maintenance organization, appointed by the governor from a list of 3 qualified persons recommended by the Massachusetts Association of Health Plans;

(11) one representative of chiropractors, appointed by the governor from a list of three qualified chiropractor representatives recommended by the Massachusetts Chiropractic Society;

(12) one representative of a health insurer, other than a health maintenance organization, appointed by the governor from a list of 3 qualified persons recommended by the commissioner of insurance; and

(13) in the case of each appointment to be made from a list supplied by a specified organization, it is incumbent upon that organization to consult with and provide a list that reflects the input of other equivalent organizations representing similar interests. Each appointing authority shall have the discretion to request additions to the list originally submitted. Additional names will be provided not later than 15 days after the request. Appointments shall be made by the appointing authority no later than 90 days after receipt of the original list. If, for any reason, any specified organization supplying a list should cease to exist, then the respective appointing authority shall specify a new equivalent organization to fulfill the responsibilities of this section.

(c) The members of the council shall annually elect, by a majority vote of the members, a chairperson and a vice chairperson of the council.

(d) The division of insurance, the division health care finance and policy, and the division of medical assistance shall assist the council in the furtherance of its mission. The council may accept and expend grants, in-kind services, and other assistance from the federal government, private non-profit foundations, or other sources to support its work.

(e) Seven members shall constitute a quorum for the transaction of any business, and the act by the majority of the members present at any meeting in which there is a quorum shall be considered to be the act of the council.

(f) All meetings of the council shall be advertised and conducted pursuant to chapter 30A unless otherwise provided in this section.

(1) The council shall meet at least once every 2 months, and may provide for special meetings as it considers necessary. Meeting dates shall be set by a majority vote of the members of the council or by the call of the chairperson upon seven days' notice to all council members.

(2) All meetings of the council shall be publicly advertised, as provided for in this section, and shall be open to the public, except that the council, through its bylaws, may provide for executive sessions of the council. No act of the council shall be taken in an executive session as defined in section 11A of chapter 30A.

(3) The council shall file a schedule of its meetings with the state secretary and shall publish a schedule of its meetings in at least 2 newspapers, one newspaper in general circulation in the commonwealth. The notice shall be published and filed at least once in each calendar quarter and shall list the schedule of meetings of the council to be held in the subsequent calendar quarter. The notice shall specify the date, time and place of the meeting and shall state that the council's meetings are open to the general public, except that a notice shall not be required for executive sessions of the council.

(4) All action taken by the council shall be taken in open public session, and action of the council shall not be taken except upon the affirmative vote of a majority of the members of the council present during meetings at which a quorum is present.

(g) The council shall adopt bylaws, not inconsistent with this act, and may appoint such committees or elect such officers subordinate to those provided for in subsection (c) as it considers advisable. The council shall provide for the approval an participation of additional delegates appointed under paragraphs (7) and (8) of subsection (b) so that each organization represented by delegates under those paragraphs shall not have more than 1 vote on any committee to which they are appointed. The council shall also appoint a technical advisory group which shall, on an ad hoc basis, respond to issues presented to it by the council or committees of the council and shall make recommendations to the council. The technical advisory group shall include actuaries, researchers and biostatisticians.

The members of the council shall not receive a salary or per diem allowance for serving as members of the council but shall be reimbursed for actual and necessary expenses incurred in the performance of their duties. The expenses may include reimbursement of travel and living expenses while engaged in council business.

(i) The terms of the secretary of the executive office of health and human services, the commissioner of the division of medical assistance and the commissioner of the division of insurance shall be concurrent with their holding of public office. The 9 appointed council members shall each serve for a term of 3 years and shall continue to serve thereafter until their successor is appointed, except that, of the members first appointed:

(1) One of the representatives of business and the representative of consumers shall serve for a term to expire on June 30 of the year following his initial appointment.

(2) One of the representatives of organized labor and the representative of a carrier shall serve for a term to expire on June 30 of the second year following his initial appointment.

(3) The other representatives of business and organized labor and the representatives of hospitals, physicians and health maintenance organizations shall serve for a term to expire on June 30 of the third year following their initial appointments.

(4) Vacancies on the council shall be filled in the same manner in which they were originally designated under subsection (b), within 60 days of the vacancy, except that when vacancies occur among the representatives of business or organized labor, 2 nominations shall be submitted by the organization specified in subsection (b) for each vacancy on the council. If the officer required subsection (b) to make appointments to the council fails to act within 60 days of the vacancy, the council chairperson may appoint 1 of the persons recommended for the vacancy, until the appointing authority makes the appointment.

(j) A member may be removed for just cause by the appointment authority after recommendation by a vote of at least 8 members of the council.

(k) (1) Within 60 days after the effective date of this section, each organization or individual required to submit a list of recommended persons to the governor, the president of the senate or the speaker of the house of representatives under subsection (b) shall submit the list.

(2) Within 90 days of the effective date of this act, the governor, the president of the senate and the speaker of the house of representatives shall make all of the appointments called for in subsection (b), and the council shall begin operations immediately following these appointments.

(l) Submission of lists of recommended persons and appointments of council members for the second and succeeding terms shall be made in the same manner as prescribed in subsection (b), except that:-

(1) Organizations required under subsection (b) to submit lists of recommended persons shall do so at least 60 days prior to expiration of the council members' terms.

(2) The officer required under subsection (b) to make appointments to the council shall make said appointments at least 30 days before expiration of the council members' terms. If the appointments are not made within the specified time, the council chairperson may make interim appointments from the lists of recommended individuals. An interim appointment shall be valid only until the appropriate officer under subsection (b) makes the required appointment. Whether the appointment is by the required officer or by the chairperson of the council, the appointment shall become effective immediately upon expiration of the incumbent member's term.

(m) Should any organization or individual fail to submit a list of recommended persons as required under subsection (b) within the time limits in subsection (k) or (m), the officer designated to make the appointment under subsection (b) shall appoint as many acting councilors as required under subsection (b) until such time as the list of recommended persons is submitted by the original organization as required in subsection (b).

(n) The council shall make recommendations for administrative and legislative reforms that encourage the use of quality and safety initiatives to promote more cost effective delivery of health care in the commonwealth. The council shall make recommendations relative to initiatives that will lead to more affordable health insurance for employers and employees, including an examination of methods of providing health care to the working uninsured of the commonwealth. The council shall examine the feasibility and desirability of establishing a permanent health care cost containment system to control health costs through quality improvements that ensure successful patient outcomes. The council shall examine cost containment systems of other lines of insurance and the impact of such systems on health insurance premiums including but not limited to the workers' compensation system and the unemployment insurance system and the council shall examine the impact of the current medical liability system on health care costs.

(o) The council shall report annually to the committees on ways and means of the house of representatives and the senate and the joint committees on health care; insurance; and commerce and labor, and may recommend legislation to implement its findings.

SECTION 8. Paragraph (1) of subsection (b) of section 2RR of chapter 29 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by adding the following clause:-

(ix) whether the employer has recently or plans to locate its business in the commonwealth and employ residents of the commonwealth who will benefit from training, provided that said employer shall not receive funds until said employer has located its business in the commonwealth.

This section was vetoed by the Governor.
The Governor's veto was overridden by the Legislature
SECTION 9. Said section 2RR of said chapter 29, as so appearing, is hereby further amended by adding the following 6 subsections:-

(f) The director, in consultation with the secretary of economic development, shall adopt regulations to carry out the purposes of this section, including the criteria set forth in paragraph (1) of subsection (b). The regulations shall provide for a rolling applications process and shall allow employers with plans to locate in the commonwealth and employ commonwealth residents to apply for grants. The director may contract with a private organization to carry out some or all of the director's duties provided in this section.

The board may require a match or co-investment from participating organizations; provided, however, that in determining the amount of any match, the board shall establish different requirements for organizations based on the size of the organization, its profit or not-for-profit status and financial capacity.

(g) Documentary materials or data made or received by an employee of the department of workforce development, or previously by the division of employment and training, to the extent that such materials or data consist of trade secrets or commercial or financial information regarding the operation of a business conducted by an applicant for a grant from the fund established by this section, shall not be public records and shall not be subject to section 10 of chapter 66.

(h) The director shall, in accordance with section 328 of chapter 127 of the acts of 1999, prepare a performance evaluation of the workforce training grants awarded under this section. The evaluation shall assess the effectiveness of each grant awarded in terms of the (1) development of employee skills; (2) increase in employee wages; (3) improvement in employee retention rates; (4) improvement of employee productivity; (5) impact on employer's business and (6) impact on regional economy, including reduction of regional unemployment levels. The director shall require, as a condition of receiving a grant under this section, employers to provide, within a time frame following the end of the grant period as established by the director, such information and data determined by the director to be necessary to complete the performance evaluation.

(i) The director shall make no grant under this section to any person or entity from the Fund, nor shall any technical assistance be provided by the department out of the proceeds of the Fund, to any person or entity unless the person or entity applies for and receives a certificate of tax in good standing with the department of revenue with respect to all tax types for which it should be registered and for which it is obligated to file reports or returns. A certified copy of the certificate shall be presented to the director before the issuance of any grant under this section before the department's providing any technical assistance to the person or entity.

(j) There is hereby established a board to be known as the Workforce Training Fund Advisory Board, consisting of 9 members, who are citizens of the commonwealth, to be appointed by the governor. Three members shall be persons representing businesses or employers; 3 shall be persons representing employees or employees of labor organizations, 2 of whom shall be selected from a list of 5 recommended by the President of the Massachusetts AFL-CIO; and 3 shall be persons representative of the public, 2 of whom shall have expertise or experience in workforce training and 1 of whom shall represent a non-profit workforce training provider. The governor shall designate as chairman of the advisory board 1 of the members appointed as representative of the public. Members shall serve for a term of 6 years. Of the members originally appointed, 1 employer representative and 1 employee representative shall serve for a term of 4 years, and 1 employer representative and 1 employee representative shall serve for a term of 6 years; and thereafter, as their terms expire, the governor shall appoint members for terms of 6 years. Vacancies shall be filled by appointment by the governor for the remainder of the unexpired term. All members shall serve until the qualification of their respective successors. Members shall serve without compensation. The advisory board shall advise the director of the department of workforce development on the administration of the workforce training fund grant program, including but not limited to reviewing and making recommendations on grant requirements and selection criteria and reviewing grant applications and making recommendations about grant awards. The advisory board shall, from time to time, submit recommendations to the legislature on any legislative changes it deems necessary for the successful operation of the program.

(k) To provide technical assistance to increase training opportunities available to employees. The director may provide this direct technical assistance by using existing institutions such as local workforce investment boards, community colleges, labor organizations, administrative entities for service delivery areas under the federal Workforce Investment Act, or its successor statute, and other entities that have expertise in providing technical assistance regarding employee training or with employees of the departments of labor and workforce development or of the commonwealth corporation. Such expenditures shall not exceed $3,000,000 each year and the director shall demonstrate that each dollar expended generates not less than $5 in private investment in job training. Of the $3,000,000, not less than $75,000 shall be provided annually to the Workforce Investment Board Association to support the activities of business, labor, education, youth councils and community members in leading regional workforce development systems; each of the 16 workforce investment boards shall receive $75,000 annually; and each of the 16 workforce investment boards shall receive $20,000 annually for youth councils.

SECTION 10. Said section 2RR of said chapter 29, as so appearing, is hereby further amended by striking out, in line 33, the figure "$250,000" and inserting in place thereof the following figure:- $1,000,000.

SECTION 11. Said section 2RR of said chapter 29 is hereby further amended by striking out the figure "$1,000,000", inserted by section 10 of this act, and inserting in place thereof the following figure:- $250,000.

SECTION 12. Notwithstanding any general or special law to the contrary, the workforce training fund advisory board shall report every 6 months on the grantees, the amount of each grant, the geographic distribution of the grants, and the number of workers served by each grant. The report shall be submitted to the joint committee on commerce and labor and the house and senate ways and means committees.

SECTION 13. Said chapter 29 is hereby further amended by inserting after section 2LLL, inserted by section 162 of chapter 26 of the acts of 2003, the following section:-

2MMM. (a) There is hereby established and set up on the books of the commonwealth a separate fund to be known as the Massachusetts Mathematics, Science, Technology and Engineering Grant Fund, hereinafter referred to as the pipeline fund, to which shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto, and additional funds designated by the corporation for deposit to the pipeline fund, including any pension funds, federal grants or loans, or private donations made available to the chancellor of higher education for the purpose. The board of higher education shall hold the pipeline fund in an account or accounts separate from other funds or accounts. Amounts credited to the pipeline fund shall be used by the chancellor of higher education, in consultation with the Massachusetts Development Finance Agency and the Massachusetts Technology Park Corporation to carry out the purposes of subsection (b).

(b) The public purpose of the pipeline fund shall be to increase the number of Massachusetts students who participate in programs that support careers in fields related to mathematics, science, technology, and engineering. In furtherance of this public purpose, and in a manner consistent with the recommendations of the subcommittee on science, mathematics, technology and engineering education of the Massachusetts council of economic advisors, the chancellor of higher education, in consultation with the commissioner of the department of education and the president of the University of Massachusetts, shall employ the pipeline fund through grants and other disbursements and activities that are calculated to increase the number of qualified mathematics, technology, engineering and science teachers in the commonwealth and to improve the mathematics, technology, engineering and science educational offerings available in public and private schools. The grants and other disbursements and activities may involve, without limitation, the University of Massachusetts, state and community colleges, business and industry partnerships, workforce investment boards, private colleges and universities, and public and private schools, and school districts to work together to further the purposes of the pipeline fund. The grants and other disbursements and activities may support, without limitation: (i) the development and use of innovative curricula, courses and programs in mathematics, technology, engineering and science for new teachers and in-service teachers that provide appropriate mathematics, technology, engineering and science content, and instruction in innovative ways to teach mathematics, technology, engineering and science, including but not limited to the use of hands on, experimental learning, and that are consistent with the Massachusetts standards and curriculum frameworks established pursuant to sections 1D and 1E of chapter 69 but, not less than $360,000 dollars shall be allocated to support a collaborative planning effort among six Workforce Investment Boards to develop a pilot high school Science, Technology, Engineering and Mathematics Internship program (S.T.E.M.) designed to increase the number of high school students pursuing post-secondary education in S.T.E.M. careers.; (ii) the development of a mathematics, science, technology and engineering network to create, implement, share and make broadly and publicly available best practices and innovative programs relative to mathematics, technology, engineering and science instruction and expanding and maintaining student interest in mathematics, science, technology and engineering studies and careers; (iii) effective ways to teach mathematics, technology, engineering and science; and (iv) give priority to grants that provide effective course and curricula for in-service teachers in low income schools or school districts. Not more than 20 per cent of the fund may be warded to any single institution.

(c) The board of higher education shall promulgate policies, rules and regulations consistent with this chapter to implement subsections (a) and (b). The chancellor of higher education shall file any such policies, rules, and regulations with the joint committee on education, arts, and humanities for review and comment at least 30 days before the effective date of the policies, rules, and regulations.

This section was vetoed by the Governor.
SECTION 14. Section 1 of chapter 30A of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting after paragraph (5) the following paragraph:-

(5A) "Regulatory impact statement" a statement by the promulgating agency which shall, to a reasonable degree of completeness: (i) identify the statutory change, problem, issue or deficiency addressed by the proposed regulation; (ii) identify the methodology or approach, including identification of expert information and analysis, used to address the statutory change, problem, issue or deficiency; (iii) identify specifically who is affected and to what extent by the proposed regulation; (iv) identify when such regulation becomes effective, when such regulation will be changed, if known, and how and when the regulation will be reviewed in the future, if at all; (v) identify the fiscal effect on the public and private sectors for the first and second year of the regulation's existence, and provide a projection of fiscal impact over the first 5 years; and (vi) identify and describe specifically the benefits of the regulation. Any data, including written information or material, statistics, measurements, calculations or other information used as the basis for reasoning, recommendation or conclusions, including any such information provided to the agency by a consultant, vendor or other third party, shall be part of the record and available to the public upon request.

This section was vetoed by the Governor.
SECTION 15. Section 2 of said chapter 30A, as so appearing, is hereby amended by inserting after the third paragraph the following paragraph:-

Every agency issuing rules and regulations shall maintain a notification list of persons and groups who are interested in the agency's rulemaking and who request preliminary notification of agency rulemaking, with such request renewed annually by persons or groups in December. No later than 30 days before the notice of hearing described above, the agency shall send a preliminary notification of agency rulemaking to each person or group who has requested preliminary notification of rulemaking and to the appropriate committee of the general court that has jurisdiction for the rule issuing agency, and to the ways and means committees of the house of representatives and the senate. The preliminary notification of rulemaking shall: (i) identify the rule to be noticed for hearing and the scope of the proposed rule; (ii) provide the statutory authority for such proposed rulemaking; and (iii) identify the person within the agency responsible for the rulemaking and who can be contacted for more information.

This section was vetoed by the Governor.
SECTION 16. Section 3 of said chapter 30A, as so appearing, is hereby amended by inserting after the second paragraph the following paragraph:-

Every agency issuing rules and regulations shall maintain a notification list of persons and groups interested in the agency's rulemaking and who request preliminary notification of agency rulemaking, such request renewed annually by persons and groups in December. No later than 30 days prior to the notice described above the agency shall send a preliminary notification of agency rulemaking to each person or group who has requested preliminary notification of agency rulemaking and to the appropriate committee of the general court that has jurisdiction for the rule issuing agency and to the ways and means committees of the house of representatives and the senate. The preliminary notification shall: (i) identify the rule to be noticed and the scope of the proposed rule; (ii) provide the statutory authority for such proposed rulemaking; and (iii) identify the person within the agency responsible for the rulemaking and who can be contacted for further information.

This section was vetoed by the Governor.
SECTION 17. The second paragraph of section 5 of said chapter 30A of the General Laws, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following 2 sentences:-

No rule or regulation so filed with the state secretary, except those filed for the purpose of setting rates, issuing grants or providing loans, and except those filed by the department of telecommunications and energy or the division of insurance, shall become effective until a regulatory impact statement has been completed, made public during the hearing process described above and is filed with the state secretary. The secretary of economic development shall review all regulatory impact statements prior to their filing with the state secretary to ensure and certify that a proper methodology and approach was used by the agency submitting said impact statement and to certify that the impact statement as submitted complies with the definition of "regulatory impact statement" as set forth in section 1 of chapter 30A.

SECTION 18. Chapter 40J of the General Laws is hereby amended by inserting after section 6 thereof the following section:-

Section 6A. (a) The corporation shall establish an institute for regional innovation, technology and competitiveness, to be known as the John Adams Innovation Institute, and a fund to be known as the Innovation Institute Fund, to be held by the corporation separate and apart from its other funds, to finance the activities of said institute. The executive director of the corporation shall appoint a qualified individual as director to manage the affairs of said institute. The corporation, on recommendation of the executive director, shall appoint 7 qualified individuals to a governing board to assist the corporation in matters related to said institute and said fund and in matters related to the research center matching fund established in section 4F, including a president of a state or community college, head of an emerging technology company, a representative of a regional planning agency, and a technology transfer officer or individual qualified in technology commercialization from a university in the commonwealth. The executive director, the director of the office of business and technology, and the president of the Massachusetts development finance agency shall serve as ex-officio members of said governing board. Said board shall consult with the house and senate committees on science and technology and ways and means during the preparation of a detailed plan for the operation of said institute and the matching fund. Upon approval of such detailed plan by the board of directors of the corporation, said board shall delegate such authority to the governing board of the institute as it deems appropriate to implement such plan. The members of said governing board shall be deemed to be directors for purposes of the fourth paragraph of section 3. The purpose of the institute shall be to serve as an agent of the commonwealth to create and maintain a more favorable and responsive environment in the commonwealth for the development, growth, attraction and retention of technology-intensive and innovation-driven clusters of organizations, with a particular attention paid to promoting economic growth in discrete and underserved regions of the commonwealth by harnessing local support and involvement in such economic development activities and by improving the economic infrastructure for such clusters. In furtherance of these public purposes, the institute shall endeavor to identify regions of the commonwealth in which compelling opportunities to make strategic investments appear to be present and develop strategies therefor. The institute may also provide development support more generally to organizations in regions across the commonwealth to assist the formation and growth of emerging technology sectors in those regions and may provide support to departments, agencies, and quasi-public entities of the commonwealth for activities that are consistent with the purposes of the institute. The institute may work in collaboration with the Massachusetts technology collaborative, other quasi-public and not-for-profit agencies. Successful grants should incorporate regional involvement through alliances among municipalities, colleges, business and industry, community based organizations, non-profits and labor unions. Insofar as apt, in the determination of the board, the provisions of this chapter that apply to centers and to the center fund shall apply to said institute and to the innovation institute fund, respectively. Without limiting the generality of the foregoing, the corporation may apply moneys in said fund to start-up expenses and project costs of said institute and related activities, grants to nonprofit or other organizations to develop proposals for regional economic growth in key technology sectors, business incubator development, entrepreneurial training investment in one or more privately managed emerging technology sector investment funds, development of industry-university cooperative research centers, industry networking support, business plan preparation, market research, infrastructure repair and construction, workforce development including, but not limited to, providing funds for programs that provide education and training to enhance the skills of low skilled workers, brokered business assistance services and marketing expenses, provided that written notice shall be given to the house and senate committees on ways and means at least 10 business days before any disbursement of funds amounting to $250,000 or more. The institute shall also file an annual report of its activities with the house and senate committees on science and technology and ways and means.

(b) No grant shall be awarded from the innovation institute fund without the corporation first having consulted with the appropriate regional competitiveness council or sub-regional competitiveness council established by the department of business and technology. The request for consultation shall be submitted not less than 15 business days prior to the execution of any grant award contract. All successful grant applications shall define specific goals and expected outcomes and contain corresponding accountability measures. Applicants that fail to meet these accountability measures shall be barred from pursuing any additional grants under this section for 5 years from the effective date of the grant. Notwithstanding any general or special law or rule or regulation to the contrary, in order to support regional economic development throughout the commonwealth, any organization found to be eligible to receive financial assistance from the innovation institute fund in support of certain specified purposes and activities shall be deemed to be eligible as well to receive financial assistance for such specified purposes and activities as qualified investments of the emerging technology fund established pursuant to section 27 of chapter 23G of the General Laws and a portion of the emerging technology fund shall be allocated and reserved for such application.

(c) In making the initial round of grants from the innovation institute fund, no less than $500,000 shall be distributed over a 3 year period to each of the 5 geographic regions of the state, the central area, the greater Boston area, the north east area, the south east area and the western area, as those areas are defined generally as follows:

"Central Area", the Northern Worcester Service Delivery Area and the Southern Worcester Service Delivery Area as specified in 20 CFR 661.280;

"Greater Boston Area", the Boston Service Delivery Area, the Metropolitan North Service Delivery Area and the Metropolitan South/West Service Delivery Area as specified in 20 CFR section 661.280;

"North East Area", the Lower Merrimack Valley Service Delivery Area, the Northern Middlesex Service Delivery Area and the Southern Essex Service Delivery Area as specified in 20 CFR 661.280;

"South East Area", the Bristol Service Delivery Area, the Brockton Service Delivery Area, the Cape and Islands Service Delivery Area, the New Bedford Service Delivery Area and the South Coastal Service Delivery Area as specified in 20 CFR 661.280; and

"Western Area", the Berkshire Service Delivery Area, Franklin/Hampshire Service Delivery Area and Hampden Service Delivery Area as specified in 20 CFR 661.280.

SECTION 19. Said chapter 40J is hereby further amended by inserting after section 4E the following 2 sections:-

Section 4F. (a) There is hereby established and set up on the books of the corporation the Massachusetts Research Center Matching Fund, hereinafter referred to as the "matching fund," to which shall be credited the proceeds of any bonds or notes of the commonwealth issued for the purpose, and any appropriations designated by the general court to be credited thereto. The matching fund shall be administered by the John Adams Innovation Institute established by section 6A. The corporation shall hold the matching fund in an account or accounts separate from other funds of the corporation. The purpose of the matching fund is to provide matching funds to be available to institutions of higher education and other nonprofit research institutions located in the commonwealth in connection with applications by such institutions for scientific or engineering research funding from the federal government or other sources or in connection with collaborative academic research centers and for projects to support technology platforms and industry cluster development supported by the corporation, provided, however, that any such grant awarded in accordance with this section shall leverage at least $1 for each dollar granted.

This fund shall also support Centers of Excellence, hereinafter referred to as Centers, for research and innovations in targeted emerging technologies. Centers shall (i) perform basic research relevant to its targeted sector, (ii) enhance the development of technology in the targeted sector, (iii) provide technical assistance to current or prospective companies involved in the targeted sector for product development, (iv) involve or employ higher education and secondary education students and faculty in research and in the center's operations, (v) facilitate faculty externships and student internships in targeted sector industries, and (vi) provide incumbent employee training for high level sector related skills. To be designated a Center, the following must be demonstrated: (1) an expertise in the targeted technology sector; (2) a collaboration with other institutions of higher education; (3) a collaboration with 1 or more industries and nonprofit partners; and (4) a creation of an advisory board that represents its targeted sector related stakeholders. In the first year, 3 such Centers shall target the research and development of medical devices, nanotechnology and biotechnology. One of the first 2 Centers shall be located in southwestern Massachusetts, and the other shall be located in northeastern Massachusetts. Any funds allocated for Centers shall be matched in the first year with at least $1 from federal or private funding sources for each dollar granted. The match requirements shall increase in subsequent years to at least $2 from federal or private sources for each $1 granted. Two-thirds of the matched funds may be in-kind. The corporation shall adopt rules and regulations for the administration of the matching fund, which rules and regulations shall be transmitted 60 days in advance to the executive office for administration and finance, the department of economic development, the house and senate committees on ways and means and the house and senate committees on science and technology.

(b) There shall be a broadband access oversight council within the Massachusetts Technology Park Corporation for the purpose of increasing broadband internet services in underserved communities. The council shall be comprised of 12 members, 1 of whom shall be designated by the Franklin-Hampshire Connect; 1 of whom shall be designated by the Berkshire Connect; 1 of whom shall be designated by the Massachusetts Association of Regional Planning Agencies; 1 of whom shall be designated by the Massachusetts Municipal Association; 1 of whom shall be the secretary of economic affairs; 1 of whom shall be the chairman of the commonwealth development council; 1 of whom shall be the chairman of the department of telecommunications and energy; and 5 of whom shall be appointed by the governor, one of whom shall be a representative from the telecommunications industry. The council shall develop and recommend strategies to achieve broadband internet expansion to every community in the commonwealth. Specifically the council shall: (1) identify communities that lack broadband internet service and leverage the telecommunications purchasing power of the commonwealth and the private sector to bring broadband internet service to every community in the commonwealth; (2) identify appropriate technologies and strategies to bring broadband internet service into underserved communities; (3) identify specific state properties that, if made available, would facilitate the deployment of these technologies to achieve service in under-served areas; and (4) take other action considered necessary to fulfill the goal of broadband marketplace choice in underserved communities. The council shall annually submit any recommendations and make periodic reports on progress being made towards achieving these goals to the department of business and technology, the house and senate committees on science and technology, the joint committee on commerce and labor, and the house and senate committees on ways and means.

SECTION 20. Section 6 of chapter 62 of the General Laws, as appearing in the 2002 Official Edition is hereby amended by striking out, in lines 213 and 214, the words "within five years from the effective date of this section" and inserting in place thereof the following words:- on or before August 5, 2005.

This section was vetoed by the Governor.
SECTION 21. Said section 6 of said chapter 62, as so appearing, is hereby amended by adding the following subsection:-

(l)(1) For the purposes of this subsection the following words shall, unless the context clearly requires otherwise, have the following meanings:-

"Medical device", an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part or accessory which is recognized in the official National Formulary or the United States Pharmacopoeia, or any supplement to them, intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease, in humans or other animals, or intended to affect the structure or any functions of the body of humans or other animals, and which does not achieve any of its primary intended purposes through chemical action within or on the body of a human or other animals and which is not dependent upon being metabolized for the achievement of any of its primary intended purposes.

"Medical device company", a sole proprietorship, partnership, limited liability company, corporate trust, corporation or other business, in each case (i) the income of which is taxed directly to the business or its owners under this chapter and (ii) having a facility located in the commonwealth which develops or manufactures medical devices.

"User fees", the monetary amount actually paid by a medical device company to the United States Food and Drug Administration during the taxable year for a pre-market approval to market new technologies developed or manufactured in the commonwealth, or for a 510(k) clearance to market upgrades, changes or enhancements to existing technologies that are developed or manufactured in the commonwealth as stipulated in United States Public Law 107-250, the Medical Device User Fee and Modernization Act.

(2) There shall be allowed to any medical device company as a credit against the tax liability imposed under this chapter, an amount equal to 50 per cent of the cost of user fees paid by such medical device company during the taxable year for which the tax is due.

(3) The commissioner shall promulgate rules and regulations to implement this section.

(4) The commissioner shall establish a business tax benefit transfer program to allow medical device companies doing business in the commonwealth with unused tax benefits to surrender such benefits for use by a purchasing company in exchange for private financial assistance to be provided by such company to assist in the funding of coasts incurred by the medical device company.

The private financial assistance shall be used to fund expenses incurred in connection with the operation of the medical device company in the commonwealth including costs associated with fixed assets such as the construction and acquisition and development of real estate, materials, start-up, tenant fit-out, working capital, salaries, research and development expenditures and any other expenses determined by the commissioner to be necessary to carry out the purposes of the program.

A medical device company which participates in the program shall file an application with the department of revenue, on a form prescribed by the commissioner setting forth the tax benefit amounts eligible for transfer, the use to which the medical device company intends to put the private financial assistance to be provided, the identity of the purchasing company, the amount of the financial assistance to be provided, and such other information as the commissioner may require.

No such tax benefits may be surrendered unless the purchasing company provides financial assistance in an amount at least equal to 75 per cent of the tax benefit amounts eligible for transfer.

The commissioner shall review such application and, if the proposed transfer meets the requirements set forth in this section, it shall, , upon receipt of a notarized statement signed under the pains and penalties of perjury by an authorized representative of the medical device company that the purchasing company reflecting the tax benefit amounts transferred, a copy of which shall be attached to each tax return filed by a purchasing company in which such tax benefits are used.

The purchasing company shall treat benefit amounts purchased under the program as a credit against its tax liability. The purchasing company must use the tax benefit amounts so treated in tax returns filed within 5 years of the issuance of the certificate, after which the benefits will be considered to have expired. The purchasing company may not use the tax benefit amounts to reduce the income tax to less than the amount due under section 4.

A medical device company surrendering tax benefits under the program shall not use the benefits to reduce its tax liability under this chapter.

SECTION 22. Chapter 62 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting after section 6I the following section:-

Section 6J. (a) For purposes of this section, the following terms shall have the following meanings unless the context clearly requires otherwise:

"Certified rehabilitation", the rehabilitation of a qualified historic structure that has been approved and certified by the chairman of the Massachusetts historical commission as being consistent with the standards established by the Secretary of the United States Department of the Interior for rehabilitation of historic properties.

"Qualified historic structure", any building or structure, located within the commonwealth that is individually listed on the National Register of Historic Places or is a contributing building within a district that is listed on the National Register of Historic Places or which has been determined by the Massachusetts historical commission to be eligible for listing on the National Register of Historic Places, and which all or any portion of which is owned, in whole or in part, by the taxpayer.

"Qualified rehabilitation expenditure", any amount properly chargeable to a capital account and is of a character subject to federal depreciation allowance under section 47 of the Internal Revenue Code, as amended and in effect for the taxable year, incurred in connection with the certified rehabilitation of a qualified historic structure, provided that such term shall not include any personal property or the cost of acquiring any building or interest thereon.

"Substantial rehabilitation" and "substantially rehabilitated", the qualified rehabilitation expenditures of the building during the 24-month period selected by the taxpayer ending with or within the taxable year exceed 25 per cent of the taxpayer's adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation that may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the applicable period referred to in this paragraph shall be 60 months.

"Taxpayer", a person, firm, partnership, trust, estate, limited liability company or other entity subject to the income tax imposed by the provisions of this chapter.

(b)(1) There is hereby established a Massachusetts historic rehabilitation tax credit. The department of revenue, in consultation with the Massachusetts historical commission may authorize annually, for the 5-year period beginning January 1, 2005, and ending December 31, 2009, under this section together with section 38R of chapter 63, an amount not to exceed $10,000,000; provided, further, that the department of revenue in consultation with the Massachusetts historical commission, shall, whenever possible, authorize no less than 25 per cent of the tax credits to projects that contain affordable housing. The Massachusetts historical commission, in consultation with the department of revenue, shall administer and determine eligibility for the Massachusetts historic rehabilitation tax credit and allocate the credit in accordance with the provisions of this section.

Any taxpayer subject to taxation under this chapter that incurs qualified rehabilitation expenditures shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this chapter. The amount of the credit shall be equal to 20 per cent of the qualified rehabilitation expenditures made by such taxpayer with respect to a qualified historic structure, and may only be taken by the taxpayer upon completion of the rehabilitation work and approval of such work as provided for in this section.

(2) The credit allowable under this section shall be allowed for the taxable year in which the substantially rehabilitated property is placed in service, that is, when occupancy of the entire structure or some identifiable portion of the structure is permitted.

If the Massachusetts historic rehabilitation tax credit allowable for any taxable year exceeds the taxpayer's tax liability for the year in which the substantially rehabilitated property is placed in service, the amount that exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for the succeeding 5 years, or until the full credit is used, whichever occurs first. Historic rehabilitation tax credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among such persons designated as partners, member or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of such entity.

Taxpayers eligible for the Massachusetts historic rehabilitation tax credit may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity, and such transferee shall be entitled to offset income imposed by this chapter with the same effect as if such transferee had incurred the qualified rehabilitation expenditures. The assignor shall perfect such transfer by notifying the department of revenue in writing within 90 days following the effective date of said transfer, and shall provide any information as may be required by the department of revenue to administer and carry out the provisions of this section.

(c)(1) A certified rehabilitation shall require:

(i) an initial certification by the Massachusetts historical commission that the structure meets the definition of qualified historic structure;

(ii) a second certification by the Massachusetts historical commission, to be issued prior to construction, certifying that if completed as proposed, the rehabilitation work will meet the standards required for a certified rehabilitation; and

(iii) a final certification by the Massachusetts historical commission, issued when construction is completed, certifying that the work was completed as proposed and that the costs are consistent with the work completed. Such final certification shall be acceptable as proof that the expenditures related to such construction qualify as qualified rehabilitation expenditures for purposes of the credit allowed under this section.

(2) A rehabilitation shall not be treated as complete before the date of the certification referred to in clause (iii) of paragraph (1).

(d) A taxpayer who leases his property shall be treated as the owner thereof if the remaining term of the lease as of the date determined under regulations prescribed by the department of revenue is not less than such minimum period as the regulations require.

(e) The percentage of the total expenditures made in the rehabilitation of the exterior of a building containing condominium dwelling units shall be attributed to each such unit within the building, based upon the percentage of space each unit occupies within the building, and in the case of a building where less than the entire building is used as a residence of the taxpayer, only the portion of the total expenditures made in the rehabilitation of the building that is attributable to the residence of the taxpayer shall be treated as qualified rehabilitation expenditures.

(f) For any qualified historic structure, qualified rehabilitation expenditures applicable to the historical rehabilitation tax credit shall be treated for purposes of this section as made:

(i) on the date substantial rehabilitation is completed, or

(ii) to the extent provided by the commissioner of revenue by regulation, when such expenditures are properly chargeable to a capital account. Regulations under this paragraph shall include a rule similar to the rule under section 50(a)(2) of the Internal Revenue Code, as amended an in effect for the taxable year, relating to recapture if property ceases to qualify for progress expenditures.

(g)(1) If, before the end of the 5-year period beginning on the date on which the rehabilitation of the building is completed the taxpayer disposes of such taxpayer's interest in such building, then the taxpayer's tax imposed by this chapter for the taxable year in which such disposition or cessation occurs, shall be increased by the recapture percentage of the credit allowed under this section for all prior taxable years with respect to such rehabilitation.

(2) For purposes of paragraph (1), the recapture percentage shall be the product of the amount of credit claimed by the taxpayer multiplied by a ratio, the numerator of which is the number of months the building is owned by the taxpayer or, in the case of a homeowner, used as the taxpayer's residence and the denominator of which is 60.

(h) For purposes of this section, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would, but for this paragraph, result from such expenditure shall be reduced by the amount of the credit so allowed.

(i) The department of revenue in consultation with the Massachusetts historical commission, shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including the imposition of a fee for the processing of applications for the certification of any rehabilitation under this section; provided, however, that the amount of such fee is used only to defray expenses associated with the processing of such applications.

(j) Except for unused credits carried forward pursuant to paragraph (2) of subsection (b) of section 38R of chapter 63 and paragraph (2) of subsection (b) of this section, a taxpayer shall not be eligible for any historic rehabilitation tax credits for more than 5 taxable years.

SECTION 23. Chapter 62C of the General Laws is hereby amended by inserting after section 67C the following section:-

Section 67D. (a) When used in this section, the following words shall have the following meaning:

"Application year", the calendar year for which a biotechnology or medical device manufacturing company submits the information required for a determination as to a jobs incentive payment.

"Biotechnology company", a business primarily engaged in the research, development, production or provision of biotechnology for the purpose of developing or providing products or processes for specific commercial or public purposes including, but not limited to, medical, pharmaceutical, nutritional and other health-related purposes or a person engaged in providing services or products necessary for such research, development, production or provision. This term shall include contract manufacturers engaged in the production of biotechnology products for a biotechnology company or a medical device manufacturing company.

"Business", a corporation, sole proprietorship, partnership, limited liability company or any other form of business organization.

"Commissioner", the commissioner of revenue.

"Eligible Jobs", a number determined by first multiplying each of the local jobs created by a biotechnology or medical device manufacturing company during a single calendar year by the job qualifier for that job, and then totaling the number for all of the local jobs created.

"Full time employee", a person who is employed for consideration for at least 35 hours per week and whose salary is subject to withholding as provided in chapter 62B.

"Job qualifier fraction", in the case of either a full-time employee or a part-time employee of a biotechnology or medical device manufacturing company, the figure that determines the extent to which that employee is employed in the commonwealth during a single calendar year. The job qualifier fraction for each employer shall be determined by multiplying the following percentages together: (i) the percentage of time that an employee worked while employed by the company expressed as average hours worked per week out of 35 hours, not to exceed 100 per cent; (ii) that employee's time attributable to work in the commonwealth, as a portion of that employee's total work for the company; and (iii) the portion of the year the employee worked for the company.

"Jobs incentive payment", a business employment incentive payment for biotechnology or medical device manufacturing companies as provided for in this section.

"Local jobs created", the total number of jobs created by a biotechnology or medical device manufacturing company during a single calendar year in which the new employees perform qualified services at least 1 in-state location, including jobs performed by persons that are transferred within the company to work at an in-state location from a location based outside the state.

"Medical device manufacturing company", a business primarily engaged in manufacturing medical or surgical instruments, surgical appliances or supplies or electromedical, electrotherapeutic or irradiation apparatus. This term shall include contract manufacturers engaged in the production of such products for a medical device manufacturing company or a biotechnology company.

"Part-time employee", a person who is employed for consideration for less than 35 hours a week and whose salary is subject to withholding as provided in chapter 62B.

"Payment years", in the case of a biotechnology or medical device manufacturing company that is determined to be eligible for a jobs incentive payment, the 3 calendar years following the application year.

"Qualified services", direct production manufacturing services performed by an employee of a biotechnology or medical device manufacturing company during a calendar year that consist primarily of at least 1 of the following services: medicinal and botanical manufacturing, pharmaceutical and preparation manufacturing, in vitro diagnostic substance manufacturing, biological product, except diagnostic, manufacturing, surgical and medical instrument manufacturing, electromedical and electrotherapeutic apparatus manufacturing, surgical appliance and supplies manufacturings and irradiation apparatus manufacturing. These services are as referenced in the federal NAICS Codes for biotechnology manufacturing, numbers 325411-325414, 339112, 314510, 339113 and 334517, respectively.

"Weighted, average employment", for a calendar year, the total number of jobs maintained by a biotechnology or medical device manufacturing company in which the employees performed employment services at at least 1 in-state location. The number is to be determined by first multiplying each of the individual jobs maintained by the company for that year by the job qualifier fraction for that job and then totaling the number for all of these jobs.

(b) A biotechnology or medical device manufacturing company that creates 10 or more eligible jobs in the commonwealth during a single calendar year shall be entitled to a jobs incentive payment if its weighted average employment for such year reflects a net increase of at least 10 jobs over the company's weighted average employment for the prior calendar year. The jobs incentive payment shall be equal to 50 per cent multiplied by the applicable Massachusetts income tax rate for the salary paid to the persons who perform the newly created eligible jobs for the calendar year in question; provided, however, that such salary shall be subject to Massachusetts withholding pursuant to chapter 62B for such year. For the purposes of this provision, an eligible job shall be deemed created in the commonwealth on the first day for which Massachusetts withholding is required in connection with the compensation paid to the employee.

(c) The jobs incentive payment shall be paid to a biotechnology or medical device manufacturing company in 3 equal installments in each of the 3 calendar years commencing with the calendar year subsequent to the application year. If, for the first or second payment year, the company's weighted average employment falls below its weighted average for the application year, the company shall be disqualified from receiving its second installment payment, it may still receive its third installment payment if its weighted average employment for its second payment year is above its weighted average employment for the application year.

(d) A biotechnology or medical device manufacturing company that seeks a jobs incentive payment shall apply to the commissioner to receive such payment on a form to be prescribed by the commissioner. This form shall reference the necessary information concerning the eligible jobs created by the company in the Commonwealth during the application year and also the company's weighted average employment for such year and the prior calendar year. The commissioner shall advise the company of his determination in writing.

(e) Not later than March 1 of each calendar year for which a biotechnology or medical device manufacturing company has been approved to receive a jobs incentive payment, the company shall submit to the commissioner, in a form prescribed by the commissioner, the information necessary to evaluate the company's prior year weighted employment average.

(f) A biotechnology or medical device manufacturing company that has previously been approved to receive a jobs incentive payment is entitled to re-apply for an additional payment for a second or third application year. In such cases, the company may be entitled to receive a jobs incentive payment that relates to different application years in the same calendar year. When a company has previously been granted a jobs incentive payment for 3 application years, it shall not request an additional jobs incentive payment.

(g) The commissioner shall issue payments, as authorized in subsection (b), without further appropriation. The commissioner may issue rules and regulations as necessary or helpful to implement this section, including rules and regulations to ensure compliance with this section.

SECTION 24. Chapter 63 of the General Laws is hereby amended by inserting after section 38Q the following section:-

Section 38R. (a) For purposes of this section, the following terms shall have the following meanings unless the context clearly requires otherwise:

"Certified rehabilitation", the rehabilitation of a qualified historic structure that has been approved and certified by the chairman of the Massachusetts historical commission as being consistent with the standards established by the Secretary of the United States Department of the Interior for rehabilitation of historic properties.

"Qualified historic structure", any building or structure, located within the commonwealth that is individually listed on the National Register of Historic Places or is a contributing building within a district that is listed on the National Register of Historic Places or which has been determined by the Massachusetts historical commission to be eligible for listing on the National Register of Historic Places, and which all or any portion of which is owned, in whole or in part, by the taxpayer.

"Qualified rehabilitation expenditure", any amount properly chargeable to a capital account and, in the case of a taxpayer claiming an income-producing credit, is of a character subject to federal depreciation allowance under section 47 of the Internal Revenue Code, as amended and in effect for the taxable year, incurred in connection with the certified rehabilitation of a qualified historic structure, provided that such term shall not include any personal property or the cost of acquiring any building or interest thereon.

"Substantial rehabilitation" and "substantially rehabilitated", the qualified rehabilitation expenditures of the building during the 24-month period selected by the taxpayer ending with or within the taxable year exceed 25 per cent of the taxpayer's adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation that may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the applicable period referred to in this paragraph shall be 60 months.

"Taxpayer", a corporation subject to an excise imposed by this chapter.

(b)(1) There is hereby established a Massachusetts historic rehabilitation tax credit. The department of revenue in consultation with the Massachusetts historical commission, may authorize annually, for the 5 year period beginning January 1, 2005, and ending December 31, 2009, under this section together with section 6J of chapter 62, an amount not to exceed $10,000,000 provided, further, that the department of revenue in consultation with the Massachusetts historical commission, shall, whenever possible, authorize no less than 25 per cent of the tax credits to projects that contain affordable housing. The Massachusetts historical commission, in consultation with the department of revenue, shall administer and determine eligibility for the Massachusetts historic rehabilitation tax credit and allocate the credit in accordance with the provisions of this section.

A taxpayer that incurs qualified rehabilitation expenditures shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this chapter. The amount of the credit shall be equal to 20 per cent of the qualified rehabilitation expenditures made by such taxpayer with respect to a qualified historic structure, and may only be taken by the taxpayer upon completion of the rehabilitation work and approval of such work as provided for in this section.

(2) The credit allowable under this section shall be allowed for the taxable year in which the substantially rehabilitated property is placed in service, that is, when occupancy of the entire structure or some identifiable portion of the structure is permitted.

If the credit allowed under this section for any taxable year exceeds the taxpayer's tax liability for the year in which the substantially rehabilitated property is placed in service, the amount that exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for the succeeding 5 years, or until the full credit is used, whichever occurs first. Any credits allowed under this section which are provided to multiple owners of property shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among such persons designated as partners, member or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of such entity.

Any taxpayer entitled to a credit under this section may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity, and such transferee shall be entitled to offset income imposed by this chapter with the same effect as if such transferee had incurred the qualified rehabilitation expenditures. The assignor shall perfect such transfer by notifying the department of revenue in writing within 90 days following the effective date of said transfer and shall provide any information as may be required by the department of revenue to administer and carry out this section.

(c)(1) A certified rehabilitation shall require:

(i) an initial certification by the Massachusetts historical commission that the structure meets the definition of qualified historic structure;

(ii) a second certification by the Massachusetts historical commission, to be issued prior to construction, certifying that if completed as proposed, the rehabilitation work will meet the standards required for a certified rehabilitation; and

(iii) a final certification by the Massachusetts historical commission, issued when construction is completed, certifying that the work was completed as proposed and that the costs are consistent with the work completed. Such final certification shall be acceptable as proof that the expenditures related to such construction qualify as qualified rehabilitation expenditures for purposes of the credit allowed under this section.

(2) A rehabilitation shall not be treated as complete before the date of the certification referred to in clause (iii) of paragraph (1).

(d) A taxpayer who leases its property shall be treated as the owner thereof if the remaining term of the lease as of the date determined under regulations prescribed by the commissioner of revenue is not less than such minimum period as the regulations require.

(e) The percentage of the total expenditures made in the rehabilitation of the exterior of a building containing condominium dwelling units shall be attributed to each such unit within the building, based upon the percentage of space each unit occupies within the building, and in the case of a building where less than the entire building is used as a residence of the taxpayer, only the portion of the total expenditures made in the rehabilitation of the building that is attributable to the residence of the taxpayer shall be treated as qualified rehabilitation expenditures.

(f) For any qualified historic structure, qualified rehabilitation expenditures shall be treated for purposes of this section as made:

(i) on the date substantial rehabilitation is completed, or

(ii) to the extent provided by the commissioner of revenue by regulation, when such expenditures are properly chargeable to a capital account. Regulations under this paragraph shall include a rule similar to the rule under section 50(a)(2) of the Internal Revenue Code, as amended and in effect for the taxable year, relating to recapture if property ceases to qualify for progress expenditures.

(g)(1) If, before the end of the 5-year period beginning on the date on which the rehabilitation of the building is completed the corporation disposes of such corporation's interest in such building, then the tax imposed by this chapter for the taxable year in which such disposition or cessation occurs, shall be increased by the recapture percentage of the credit allowed under this section for all prior taxable years with respect to such rehabilitation.

(2) For purposes of paragraph (1), the recapture percentage shall be the product of the amount of credit claimed by the corporation multiplied by a ratio, the numerator of which is the number of months the building is owned by the taxpayer and the denominator of which is 60.

(h) For purposes of this section, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would, but for this paragraph, result from such expenditure shall be reduced by the amount of the credit so allowed.

(i) The department of revenue in consultation with the Massachusetts historical commission, shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including the imposition of a fee for the processing of applications for the certification of any rehabilitation under this section; provided, however, that the amount of such fee is used only to defray expenses associated with the processing of such applications.

(j) Except for unused credits carried forward pursuant to paragraph (2) of subsection (b) of section 6J of chapter 62 and paragraph (2) of subsection (b) of this section, a taxpayer shall not be eligible for any historic rehabilitation tax credits for more than 5 taxable years.

SECTION 25. Section 31A of said chapter 63, as most recently amended by section 206 of chapter 26 of the acts of 2003, is hereby further amended by striking out paragraphs (k) and (l) and inserting in place thereof the following 2 paragraphs:-

(k) Paragraphs (a) and (f) shall not be available for the taxable years ending on or after December 31, 1993.

(l) Paragraphs (i) and (j) shall be available only for the taxable years ending on or after December 31, 1993.

 This section was vetoed by the Governor.
SECTION 26. Said chapter 63 is hereby further amended by inserting after section 31H the following section:-

Section 31I. (a) For the purposes of this section the following words shall have the following meanings, unless the context clearly requires otherwise:

"Medical device", an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory which is recognized in the official National Formulary, or the United States Pharmacopoeia, or any supplement to them, intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease, in humans or other animals, or intended to affect the structure or any function of the body of humans or other animals, and which does not achieve any of its primary intended purposes through chemical action within or on the body of a human or other animals and which is not dependent upon being metabolized for the achievement of any of its primary intended purposes.

"Medical device company", (1) a domestic corporation organized under or subject to chapter 156B, (2) a limited liability company organized under chapter 156C and otherwise subject to this chapter, or (3) a corporation, organization or association established, organized or chartered under laws other than those of the commonwealth and otherwise subject to this chapter, and in each case which has a usual place of business within the commonwealth wherein medical devices are developed or manufactured.

"User fees", the monetary amount actually paid by medical device companies to the United States Food and Drug Administration during the taxable year for a pre-market approval to market new technologies developed or manufactured in the commonwealth, or for a 510(k) clearance to market upgrades, changes or enhancements to existing technologies that are developed or manufactured in the commonwealth as stipulated in United States Public Laws 107-250, the Medical Device User Fee and Modernization Act.

(b) There shall be allowed to any medical device company as a credit against the tax liability imposed under this chapter, an amount equal to 50 per cent of the cost of user fees paid by the medical device company during the taxable year for which the tax is due.

(c) The commissioner shall promulgate rules and regulations to implement this section.

(d) The commissioner shall establish a business tax benefit transfer program to allow medical device companies doing business in the commonwealth with unused tax benefits to surrender such benefits for use by a purchasing company in exchange for private financial assistance to be provided by such company to assist in the funding of costs incurred by the medical device company.

The private financial assistance shall be used to fund expenses incurred in connection with the operation of the medical device company in the commonwealth including costs associated with fixed assets such as the construction and acquisition and development of real estate, materials, start-up, tenant fit-out, working capital, salaries, research and development expenditures and any other expenses determined by the commissioner to be necessary to carry out the purposes of the program.

A medical device company which participates in the program shall file an application with the department of revenue, on a form prescribed by the commissioner setting forth the tax benefit amounts eligible for transfer, the use to which the medical device company intends to put the private financial assistance to be provided, the identity of the purchasing company, the amount of the financial assistance to be provided, and such other information as the commissioner may require.

No such tax benefits may be surrendered unless the purchasing company provides financial assistance in an amount at least equal to 75 per cent of the tax benefit amounts eligible for transfer.

The commissioner shall review such application and, if the proposed transfer meets the requirements set forth in this section, it shall, upon receipt of a notarized statement signed under the pains and penalties of perjury by an authorized representative of the medical device company that the purchasing company reflecting the tax benefit amounts transferred, a copy of which shall be attached to each tax return filed by a purchasing company in which such tax benefits are used.

The purchasing company shall treat benefit amounts purchased under the program as a credit against its excise under this chapter. The purchasing company shall use the tax benefit amounts so treated in tax returns filed within 5 years of the issuance of the certificate, after which the benefits will be considered to have expired. The purchasing company may not use the tax benefit amounts to reduce the excise to less than the amount due under subsection (b) of section 32, or subsection (b) of section 39.

No medical device company surrendering tax benefits under the program may use such benefits to reduce its tax liability under this chapter.

SECTION 27. Said chapter 63 is hereby further amended by striking out section 38C, as amended by section 24 of chapter 4 of the acts of 2003, and inserting in place thereof the following section:-

Section 38C. Every corporation organized under or subject to chapter 156B and every limited liability company organized under chapter 156C which is not classified as a partnership and has elected to be taxed as a corporation separate from its members for federal income tax purposes which is engaged in manufacturing herein, or in research herein and development shall for the purposes of this chapter be deemed to be a domestic manufacturing corporation, or a domestic research and development corporation. Corporations that are engaged in research and development and that conduct manufacturing activities shall exclude expenditures related to manufacturing from total expenditures for the purpose of assessing whether 2/3 of expenditures are allocable to research and development, whether or not the manufacturing activities of the corporation are substantial.

A domestic research and development corporation for the purposes of this section is one whose principal activity herein is research and development and which, during the taxable year, derives more than 2/3 of its receipts attributable to the commonwealth from the activity or incurs more than 2/3 of its expenditures attributable to the commonwealth, allocable to such activity; provided however, that a corporation that qualifies as a domestic research and development corporation only by reason of its expenditures shall not be entitled to the credit provided in section 31A by virtue of its qualification as a domestic research and development corporation. Corporations engaged in both research and development and in manufacturing shall exclude expenditures related to manufacturing from total expenditures for the purpose of assessing whether 2/3 of expenditures are allocable to research and development. Receipts from research and development shall include receipts from the provision of research and development services and from royalties or fees derived from the licensing of patents, know-how or other technology developed from research and development. For purposes of this section, research and development is experimental or laboratory activity having as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, the development or improvement of methods for producing products, and does not include testing or inspection for quality control purposes, efficiency surveys, management studies, consumer surveys or other market research, advertising or promotional activities, or research in connection with literacy, historical or similar projects.

Nothing in this section shall be construed to provide for an exemption from local taxation of the machinery of a corporation deemed to be a domestic research and development corporation which is not deemed to be a domestic manufacturing corporation.

SECTION 28. Section 38Q of chapter 63, of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by striking out, in line 3, the words "within 5 years from the effective date of this section" and inserting in place thereof the following words:- on or before August 5, 2005.

SECTION 29. Said chapter 63 of the General Laws is hereby amended by striking out section 42B, as amended by section 29 of chapter 4 of the acts of 2003, and inserting in place thereof the following section:-

Section 42B. Every foreign limited liability company taxed as a corporation separate from its members for federal income tax purposes and every corporation, association or organization established, organized or chartered under laws other than those of the commonwealth, which has a usual place of business in the commonwealth, and is engaged in manufacturing therein, or engaged therein in research and development shall, for the purposes of this chapter, be deemed to be a foreign manufacturing corporation or a foreign research and development corporation. Every foreign manufacturing corporation shall be taxed in the same manner and shall have the same duties under this chapter and chapter 62C as other foreign corporations, except insofar as the determination of the excise under this chapter may be affected by reason of the exemption from local taxation of the machinery of a foreign manufacturing corporation. A foreign research and development corporation for the purposes of this section is one whose principal activity herein is research and development and which derives more than 2/3 of its receipts attributable to the commonwealth from the activity or incurs more than 2/3 of its expenditures attributable to the commonwealth allocable to the activity; provide however, that a corporation that qualifies as a foreign research and development corporation only by reason of its expenditures shall not be entitled to the credit provided in section 31A of chapter 63 by virtue of its qualification as a foreign research and development corporation. Corporations that are engaged in research and development and that conduct manufacturing activities shall exclude expenditures related to manufacturing from total expenditures for the purpose of assessing whether 2/3 of expenditures are allocable to research and development, whether or not the manufacturing activities of the corporation are substantial. Receipts from research and development shall include receipts from the provision of research and development services and from royalties or fees derived from the licensing of patents, know-how or other technology developed from research and development. For purposes of this section, research and development is experimental or laboratory activity having as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, the development or improvement of methods for producing products; and does not include testing or inspection for quality control purposes, efficiency surveys, management studies, consumer surveys or other market research, advertising or promotional activities, or research in connection with literacy, historical or similar projects. Nothing in this section shall be construed to provide for an exemption from local taxation of the machinery of a corporation deemed to be a foreign research and development corporation which is not deemed to be a foreign manufacturing corporation.

SECTION 30. Chapter 75 of the General Laws is hereby amended by adding the following section:-

Section 45. (a) There shall be a Massachusetts Technology Transfer Center, hereinafter referred to as the center, at the University of Massachusetts, that shall facilitate the transfer of technology from the commonwealth's research institutions to the commonwealth's industries, for productive use by such industries.

(b) The center shall provide advice and assistance to public and private research institutions on strategies for technology transfer including, but not limited to, advice and assistance in the following areas:

(1) assessing the viability and value of developing technologies;

(2) defining and exploiting potential markets for such technologies;

(3) commercialization strategies;

(4) intellectual property issues, including licensing strategies; and

(5) business development.

(c) The board of trustees of the University of Massachusetts, in consultation with the director of business and technology, shall appoint an executive director of the center. The executive director shall devote his full time to the operation of the center and may be removed at the pleasure of the board of trustees. The executive director shall report annually to the department of business and technology on the number of technology transfer transactions or projects that have been consummated with the assistance of the center, the names and geographic locations of the recipient industries and the estimated number of new jobs created as a result of such transactions or projects.

(d) There shall be an advisory committee relative to the center consisting of the director of business and technology, or his designee, the director of science and technology within the department of business and technology and 7 members selected by the executive director of the center, with the approval of the board of trustees, 1 of whom shall be a representative from a technology industry, at least 1 such member shall be a representative from academia, at least 1 such member shall have experience in venture financing and at least 1 such member shall have experience in public administration. The appointed members of the committee may be removed by the executive director with or without cause, subject to the approval of the board of trustees, and shall serve without compensation, except that each member shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of official duties. The advisory committee shall meet at least twice annually.

(e) There shall be a center for economic analysis and assessment within the McCormack Graduate School of Policy Studies' Center for State and Local Policy. The center shall analyze and study economic trends in the commonwealth and shall provide its analysis to elected officials. The center shall continuously research and inform elected officials on the following subject areas:

(1) effectiveness of the commonwealth's economic development incentive programs including, but not limited to, tax credits, loan and matching grant programs;

(2) job creation programs;

(3) tax policy;

(4) workforce training and development programs; and

(5) regional and national competitiveness of the state's economy.

The center shall work with existing research entities within the University of Massachusetts system and other public agencies to prepare timely analysis of the economy of the commonwealth and other economic indicators.

SECTION 31. Section 6 of chapter 136 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by striking out clause (52) and inserting in place thereof the following clause:-

(52) The retail sale of alcoholic beverages not to be drunk on the premises on Sundays by retail establishments licensed under section 15 of chapter 138; provided, however, that establishments operating under this clause shall compensate an employee, for work performed on a Sunday, at a rate of not less than one and one-half of the employee's regular rate; provided further, that a local governing board may limit the sale of alcoholic beverages to 6 days a week and choose which days retail establishments licensed under section 15 of chapter 138 may sell alcoholic beverages; and provided further, that no such sale shall occur unless such permit has been granted; and provided further, that such permit shall not allow such sale prior to the hour of twelve noon or on Christmas Day if Christmas occurs on a Sunday; provided, however, that establishments operating under this clause which employ more than 7 persons shall compensate all employees for work performed on a Sunday, at a rate of not less than one and one-half of the employee's regular rate. No employee shall be required to work on a Sunday and refusal to work on a Sunday shall not be grounds for discrimination, dismissal, discharge, deduction of hours or any other penalty.

SECTION 32. Chapter 138 of the General Laws is hereby amended by striking out section 33, as so appearing, and inserting in place thereof the following section:-

Section 33. (a) No licensee under section 15 shall sell or deliver alcoholic beverages, and no registered pharmacist acting under section 29 and no licensee under section 30A shall sell alcoholic beverages or alcohol without a physician's prescription, during polling hours on any day on which a state or municipal election, caucus or primary is held in a city or town in which such licensed place is conducted; provided that these restrictions shall not apply if the local licensing authority issues an order to that effect applicable alike to all licensees of every class subject to such restrictions. Except as provided in section 33A, no holder of a tavern license shall sell any alcoholic beverages on Sundays and no other licensee under section 12 shall sell any such beverages on Sundays between 1:00 a.m. and 12:00 noon and in any county other than Suffolk, no licensee under section 12 shall sell any such beverages on Christmas day, or on the day following when Christmas occurs on a Sunday, or on the last Monday in May, between 1:00 a.m. and 12:00 noon. In Suffolk county, no licensee under said section 12 shall sell alcoholic beverages on Christmas day or on the day following when Christmas occurs on a Sunday, or on the last Monday in May, between 2:00 a.m. and 12:00 noon. No registered pharmacist acting under section 29 and no licensee under section 30A shall sell alcoholic beverages or alcohol without a prescription on Sundays or legal holidays, no licensee under section 15 shall sell or deliver any alcoholic beverages on the last Monday in May, Thanksgiving day or Christmas day or on the day following when Christmas day occurs on a Sunday. No licensee under section 18 or 19 shall sell or deliver alcoholic beverages on a Sunday or on the last Monday in May, Thanksgiving day or Christmas day or on the day following when Christmas occurs on a Sunday; provided, however, that a licensee under section 19B may sell wine at retail by the bottle to consumers for consumption off the winery premises on Sundays and legal holidays; provided further, that a licensee under section 19C may sell malt beverages at retail by the bottle to consumers for consumption off the brewery premises on Sundays and legal holidays; provided further, that a licensee under section 19E may sell distilled products at retail by the bottle to consumers for consumption off the distillery premises on Sundays and legal holidays; provided further, that a licensee who is a natural person who observes Saturday as the Sabbath by closing his place of business from sundown Friday to sundown Saturday and who sells or delivers kosher meat or fish pursuant to clause (23) of section 6 of chapter 136, may sell or deliver kosher wine on Sundays if it has been labeled and certified as such. Notwithstanding chapter 136 or 140 to the contrary, the local licensing authorities may authorize a licensee under section 12, who is authorized to sell alcoholic beverages on Sundays between the hours of 12:00 midnight and 1:00 a.m. or 2:00 a.m., to allow dancing during that 1 or 2-hour period, as the case may be, in which he is so authorized to sell alcoholic beverages.

(b) Notwithstanding subsection (a), and clause (52) of section 136 of chapter 6, in a city or town that accepts this subsection, there shall be no retail sale of alcoholic beverages on Sundays.

(c) Notwithstanding the provisions of section 77 of chapter 138 a city or town that authorizes licensees under section 15 to conduct business on a Sunday as provided by clause 52 of section 6 of chapter 136 shall permit said licensee to cease the conduct of business on one day of the week.

SECTION 33. Section 1 of chapter 176D of the General Laws, as so appearing, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) "Person", any individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds insurer, fraternal benefit society, operators of any medical service plan and hospital service plan as defined in chapters 176B, 176C, 176E and 176F, carriers and health maintenance organizations as defined in chapter 176G, insurers and sponsors of a legal services plan as defined in chapter 176H, any other legal entity or self insurer which is engaged in the business of insurance, including agents, brokers, and adjusters, the Massachusetts Insurers Insolvency Fund and any joint underwriting association established pursuant to