2013-2014 Massachusetts Legislative Session Ends

Last week, the 2013-2014 Massachusetts legislative session came to a close amid a flurry of activity on Beacon Hill. Lawmakers rushed to finalize and pass priority bills, working past their deadline on Thursday, sending a number of proposals to the Governor's desk after midnight. Now, Governor Deval Patrick has 10 days to review the legislation he received.

While disagreement between legislators and the Governor over how to raise funds for public transportation services marked the bulk of 2013, 2014 proved to be a fruitful year for lawmaking. The legislature passed laws raising the minimum wage, establishing rights for domestic workers to prevent exploitation, regulating drug compounding pharmacies, and instituting new checks and balances to stamp out avenues for welfare system fraud, just to name a few. This advisory covers recent highlights from the 2013-2014 legislative session and analyzes issues that may resurface in the 2014-2015 legislative session.

Economic Development

Economic Development Bill Aims for Job & Economic Growth The compromise economic development package (H4377, S2241) seeks to increase job growth and economic stability through a focus on emerging industries and training for workers. A major point of contention, language dealing with non-compete agreements, did not survive in the final bill; the Senate-backed initiative to limit the use of non-compete agreements to six months and preclude their use for hourly employees was absent from the compromise. Please see a prior ML Strategies advisory for a more complete description of the Massachusetts Legislature's discussion of non-compete agreements. The final bill invests significantly in advanced manufacturing and IT workforce training as well as a "Big Data" innovation, and seeks to spur economic development in Gateway Cities. Additionally, the bill includes financing and changes in policy to help businesses in Boston increase local revenues and sets a sales tax holiday for the weekend of August 16-17, 2014. The bill also creates a state-level Financial Services Advisory Council, comprised of both public and private sector representatives, to grow the state's financial services industry. Massachusetts Broadband Institute to Expand Broadband Infrastructure The Massachusetts Broadband Institute received a mechanism to begin using a $50 million bond to build and acquire conduit, fiber and towers (S2184). The Institute will use this funding to expand broadband infrastructure, making broadband more accessible particularly among populations that currently underutilize broadband technologies. Boston Convention & Exhibition Center Expansion Bill Approved The $1.1 billion proposition (H4308) for Boston Convention & Exhibition Center expansion has been approved, putting in place a plan to bring substantial economic opportunities to the Commonwealth. The bill requests borrowing to go forward with a plan that includes a 1.3-million square foot addition and allows Boston to host bigger conventions. The expectation is that the bill will not only benefit Boston's convention hosting industry but will also add thousands of jobs and hundreds of millions in new revenue. See a previous MLS alert that mentions this bill. Various Commonwealth Capital Projects Receive Funding The House and Senate worked together to develop a plan (H3933, S2197) to go forward with capital facility repairs and improvements for the Commonwealth, putting forth about $1.4 billion in borrowing. The capital spending includes, in part, financing for State Police as well as funding for social, cultural and recreational projects and a Senate chamber overhaul. Ultimately, it will fall to the next governor to determine which projects are actually launched. Government Technology Investments The House and Senate sent to the Governor on July 30 a $1 billion multi-year technology bond bill (H4335) that includes $5 million to improve wireless access at the State House. The legislation mandates that the state's chief information officer adopt new procurement standards that include provisions for effective project management and...