House Passes Economic Development Bill
 
The House passed economic development legislation that would streamline economic development agencies, make MA more attractive to businesses, repeal the state's medical and pharmaceutical gift ban and establish a sales tax holiday this summer. 
 
Rep. Stanley Files Amendment to Protect Local Home Rule
 
 Rep. Stanley and other legislators filed amendments to strike a section from Economic Development Bill that would, according to the Massachusetts Municipal Association, extend most commercial and residential local land use and environmental permits for as much as three years. Rep. Stanley feels the section is a violation of local home rule, and would interfere with zoning and permitting decisions that should be the domain of Waltham and cities and towns across the Commonwealth.  Language similar to Rep. Stanley's amendment and other amendments were adopted which removed the section from the bill. The amendments to strike this section were supported by the Environmental League of Massachusetts, the Conservation Law Foundation, Mass Audubon and the Charles River Watershed Association. 

Rep. Stanley Votes to Preserve Gift Ban 
 
Included in the Economic Development Bill was a section to repeal the pharmaceutical gift ban law. Rep. Stanley voted in favor of an amendment to preserve the gift ban.  The amendment failed by a vote of 108-40.
 
Effective July 1, 2009, Massachusetts instituted a gift ban governing all gifts and payments to physicians greater than fifty dollars.  To reverse this law which aims to diminish the influence on doctors of pharmaceutical and medical device companies, House members voted to repeal the gift ban law. The elimination of the gift ban was included in economic development legislation that passed the House by a 145-4 votes. The bill will now be hashed out and reconciled with a Senate bill in a conference committee.  
 
Some Facts About the Economic Development Bill
 
To increase efficiency, the Massachusetts Office of Business Development would be authorized to act as the primary coordinator of business development efforts and partner with economic development organizations to develop a business development plan for an identified region of the Commonwealth. 
 
The bill also consolidates agencies that play a role in attracting business to the Commonwealth into a Massachusetts Marketing Partnership which would act as the central marketing organization of Massachusetts. The partnership would consist of members from the administration, the private sector, the Massachusetts Convention Center Authority and regional tourism councils.
 
The Health and Educational Facilities Authority would also be absorbed by MassDevelopment in order to consolidate public resources and allow the agency to provide more services to non-profits, small businesses and municipalities.
 
The bill would also apply a 3% capital gains tax rate to investments made by individual investors in Massachusetts-based start-up companies that are held for more than three years. This provision would give Massachusetts the opportunity to offer the 3rd lowest long-term capital gains tax rate in the nation.
 
The bill would extend the state's net operating loss carry-forward provision from 5 to 20 years which is the carry-forward term employed by the federal government. It would be applicable to losses incurred in any taxable year beginning on January 1, 2008 and would assist cyclical industries such as manufacturing, construction, high-tech and biotech, and financial services.
 
To measure the performance of the state's economic development initiatives, the bill would create an office of performance measurement in the Executive Office of Housing and Economic Development.  The director of the office would develop performance measurement metrics for all public and quasi-public entities engaged in economic development and seek out private sector advice and models that can be adapted to the needs of the Commonwealth.
 
According to the legislation, with each new gubernatorial administration, the Secretary of Housing and Economic Development would be required to engage key stakeholders appointed to an economic development advisory council in developing a long-term economic development plan for the Commonwealth.  The council would be represented by members of the administration, legislature and business community.  Rep. Stanley voted in favor of the amended bill. 
 
Rep. Stanley Attends Water Main Rupture Hearing 
 
As a member of the House Post Audit & Oversight Committee, Rep. Stanley attended two hearings to investigate the MWRA water main rupture.  The ad hoc committee tasked with investigating the MWRA water main break on May 1st is comprised of members of the House Post Audit & Oversight Committee, the Senate Post Audit & Oversight Committee and the Joint Committee on the Environment, Natural Resources and Agriculture.
 
The first hearing on Wednesday, July 14th featured testimony from Dr. Zorica Pantić, President of Wentworth Institute of Technology and the Chairwoman of the Independent Review Panel to Investigate Causes of the May 1, 2010 Water Main Break. The second hearing on July 15th featured testimony from Fred Laskey, Executive Director of the Massachusetts Water Resources Authority and Michael Hornbrook, Chief Operating Officer of the Massachusetts Water Resources Authority. 
 
Now that the coupling (10-foot piece of metal that caused the water main break) has been found, the independent panel will determine: Was there a design error, or was the wrong type of coupling used?; Did the contractor install the coupling correctly, and was the installation overseen properly?; Could there have been a manufacturing defect in the coupling, or the bolts and O-rings used as part of the contraption?; and could outside influences, such as stray electrical currents, groundwater, or flooding in the Charles River basin, have played a part in the failure by corroding the parts or unsettling the soil? The hearing on June 15th included officials from the MWRA and focused on the impacts of the water main break and steps that may be taken to prevent a similar crisis.

 

Employers can Apply for Federal Funding to Reduce Cost of Insurance for Retirees
 
Massachusetts employers can apply for newly available federal funding that will help them reduce the cost of providing health insurance to their employees who retire early. Employers are encouraged to apply early, as funding is limited and will be distributed on a first-come, first-served basis by the U.S. Department of Health and Human Services.
 
The Early Retiree Reinsurance Program was established by Congress as part of the Affordable Care Act, with $5 billion in funding. The program provides reimbursement to participating employment-based plans for a portion of the cost of health benefits for early retirees and their spouses, surviving spouses and dependents. Employers who are accepted into the program will receive reinsurance reimbursements for medical claims for retirees age 55 and older who are not eligible for Medicare, as well as their spouses, surviving spouses and dependents.
 
Health benefits that qualify for relief include medical, surgical, hospital, prescription drug and other benefits between $15,000 and $90,000. Claims incurred between the start of the plan year (often January 1) and June 1 are credited toward the $15,000 threshold for reimbursement. However, only medical expenses incurred after June 1, 2010, are eligible for reimbursements under this program.