Executive Order  No. 87: Establishing an Economic Impact Review reporting procedure for state agencies re works, projects, activities and regulations

WHEREAS, in order to promote to the fullest extent the welfare of the Commonwealth and its citizens, it is necessary to effect a careful balance between economic, ecologic and human development; and

WHEREAS, the health of the state's economy depends upon the ability of our businesses to provide jobs for our citizens and tax revenue for local and state governments; and

WHEREAS, it is recognized that State Government agencies, by their actions, have a profound influence, directly or indirectly, on the overall economic welfare of the Commonwealth; and

WHEREAS, a systematic analysis of the economic impact of these actions is an essential element in the management of the affairs of the Commonwealth,

NOW, THEREFORE, I, Francis W. Sargent, Governor of the Commonwealth, by virtue of the authority vested in me as Supreme Executive Magistrate, do hereby order as follows:

Section 1. All agencies, departments, boards, commissions and authorities of the Commonwealth shall be henceforth subject to this Economic Impact Review Order.

All agencies, departments, boards, commissions, and authorities of the Commonwealth shall review, evaluate, and determine the impact on the economy of the Commonwealth of all works, projects or activities conducted by them and shall use all practicable means and measures to minimize injury to the economy. Unless clear contrary intent is manifested, all statutes of the Commonwealth shall be interpreted and administered so as to minimize and prevent injury to the economy and any determination made by an agency of the Commonwealth shall include a finding describing the economic impact, if any, of the projects and a finding that all feasible measures have been taken to avoid or minimize any adverse impact.

Section 2. Where called upon by the Secretary of communities and Development, no agency, department, board, commission, or authority of the Commonwealth or any authority or any political subdivisions thereof shall commence any major work, project, or activity, or issue any regulation or order approving any major work, project, or activity which may cause injury to the economy until thirty days after it has published a final economic impact report in accordance with the provisions of this section, or until thirty days after a public hearing on said report, which- ever date is later, provided that research, planning, and design and other preliminary work necessary to describe and evaluate such project for the purposes of this may be undertaken.

The determination of whether a work, project, activity, regulation or order is major or not and subject to this section will be made by the Secretary of Communities and Development. The Secretary of Communities and Development shall also decide whether a public hearing shall be required.

Section 3. An economic impact report shall contain detailed statements describing the nature and extent of the proposed work and its economic impact; all measures being utilized to minimize economic damage; and adverse short-term and long-term economic consequences which cannot be avoided should the work be performed; and alternatives to the proposed action and their economic consequences. The preparation of said report shall be commenced during the initial planning and design phase of any work, project, or activity subject to this section, and not only the originating agency, reviewing agencies, appropriate regional planning commission, the Attorney General's office, but also the general public of the economic consequences of major state actions and the alternatives thereto prior to any major commitment of state funds and prior to the commencement of the work, project, or activity. In order to insure an inter- disciplinary review, the Secretary of Communities and Development shall approve the selection of any consultant engaged to prepare the draft or final impact report.

As used in this and the preceding section, injury to the economy shall mean any actual or probably decrease of, or impairment to any of the economic resources of the Commonwealth and shall include, but not be limited to, changes in employment, commerce and industry, transportation, and taxation. Injury to the economy shall not be construed to include any insignificant injury to or impairment of such economy.

Section 4. Each Secretary shall promulgate, after public hearing, rules and regulations approved by the Secretary of Communities and Development to carry out the purposes of this section which shall be applicable to all agencies, departments, boards, commissions, authorities or instrumentalities within each respective Executive Office, and for any agency of government not within any Executive Office, said regulations shall be promulgated by the Secretary of Communities and Development.

Said regulations shall define, insofar as is practicable, those types of works, projects, or activities which shall be subject to the provisions of this section; provided that the Secretary of Communities and Development may require that the procedures of this act be followed with respect to any other work, project, or activity which may be determined by the Secretary of Communities and Development to be appropriate. The draft report, the final report, and all written comments required by these regulations shall be public documents. Said reports shall be submitted to the Secretary of Communities and Development who may issue a written statement indicating whether or not in his judgment said reports adequately and properly comply with the provisions of this section.

Section 5. For the purposes of carrying out the provisions of the Executive Order, funds made available for the purpose of design of or planning or performing said work, project, or activity shall be available and may be expended for the research, preparation, and publication of the reports required by this section and expenses incidental thereto, and said funds may be transferred or otherwise may be made available to other state departments and resource agencies designated by the Secretary of Communities and Development for the purpose of meeting the expenses incurred in evaluating the draft or final impact report.

Section 6. ECONOMIC IMPACT REVIEW BOARD

The Secretary of Communities and Development in implementing this Economic Impact Review Policy shall carry out three functions. The primary function shall be to review the Economic Impact statements prepared by the agencies, departments, boards, commissions and authorities of the Commonwealth pursuant to this Order, and to advise the Governor of his findings and recommendations with respect to any work, project or activity which in his opinion would effect an adverse but avoidable economic impact and to suggest alternative action. The Secretary shall also advise the Governor of those instances in which unavoidable adverse economic consequences would result and will suggest steps that can be taken to reduce the adverse effects.

Second, the Secretary shall serve as a resource group to the agencies, departments, boards, commissions and authorities of the Commonwealth in performing economic analyses for the preparation of the required Economic Impact statements.

Third, the Secretary shall analyze and evaluate the economic impact of significant messages and proposed legislation and regulations and make his recommendations for action to the Governor.

Given at the Executive Chamber in Boston this twenty-seventh day of March in the year of our Lord, one thousand nine hundred and seventy-two and of the Independence of the United States the one hundred and ninety-sixth.

FRANCIS W. SARGENT

Governor

Commonwealth of Massachusetts

JOHN F. X. DAVOREN

Secretary of the Commonwealth