May 2009 Policy Update
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Greater Boston
Chamber Policy
News
The Chamber’s
2009 legislative
agenda is
focused on four
goals:
strengthening
Greater Boston’s
workforce,
making the
region’s
business climate
more
competitive,
strengthening
critical
industries, and
fixing Greater
Boston’s
infrastructure.
Issues related
to all four
goals are
currently before
state
government. The
Chamber is
working with
member
companies,
government
leaders, and
other business
groups to
advance those
issues, as
outlined below. |
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Life Science
Marketing
Regulation:
Chamber opposed
to Senate bill
that would
reverse
legislative and
regulatory
process
The Chamber
recently
testified in
opposition to
Senate Bill 547,
which would
significantly
tighten the
provisions of
the life
sciences
marketing code
of conduct
regulation
promulgated by
the Dept. of
Public Health
and adopted by
the Public
Health Council
in March. Its
provisions could
substantially
impede or deter
collaborative
research and
testing from
being conducted
in
Massachusetts,
while
potentially
harming the
overall
competitiveness
of the life
sciences cluster
and driving new
jobs and
investment to
other states.
Adoption of SB
547 would
essentially
nullify the
legislative
process that
produced the
bill and the
regulatory
process that
implemented it.
Concerns remain
about the
impacts and
unintended
consequences of
this “first in
the nation” code
of conduct.
Revisions or
clarifications
to the
regulation are
likely still
needed to ensure
a robust climate
for research,
development, and
training. Yet
the Chamber
believes the
process was
open,
deliberative,
and inclusive –
attempting to
reflect the
perspectives of
consumer
advocates,
patient
communities, and
industry and
health care
leaders alike.
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Corporate Tax
Policy: Chamber
to push for
additional
revisions to
combined
reporting
regulation
The Department of Revenue (DOR) released its combined reporting corporate tax regulation on May 26th. Although the regulations include a Chamber-backed revision, they also contain rules that will make it more difficult for multinational companies to compete in Massachusetts. Key parts of the regulation include:
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Disallowance of certain deductions for companies subject to a "foreign income inclusion" provision. Among those disallowed deductions are certain interest expenses from intercompany borrowing – a policy that will make it more difficult to raise capital.
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Limiting the intercompany inclusion provision to the inclusion of income, not losses, from intercompany transactions – the result of which is to prevent gross income included in a combined group’s taxable income from being reduced below zero even if a group’s member loses money in a year.
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A Chamber-backed revision stating that DOR would not seek to disregard an otherwise proper election that results in a reduction of Massachusetts tax liability – a change that more accurately reflects the legislative intent of the 10-year affiliated group election lock.
In the weeks ahead the Chamber will continue to work for improvements to these rules, through the regulatory process, the legislative process, or both.
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Charter Schools:
Chamber
continues to
advocate for
lifting the cap
This month, the Chamber submitted testimony to the Joint Committee on Education in favor of legislation that would lift the cap on charter schools and expand opportunities for students throughout Greater Boston.
Despite their documented success, charter school expansion is presently slowed by a cap that limits student access and constrains innovation. Lifting the cap will offer new educational opportunities and provide encouragement to parents and educators seeking greater creativity and flexibility.
Charter schools have proven to be an effective tool in closing the achievement gap between low-income and minority students and their peers. A recent study released by The Boston Foundation found that students in Boston charter schools consistently outperformed their peers in traditional public schools. The results in math achievement for middle-school students are particularly compelling: the study estimates that the benefit of a single year spent in a charter school was equivalent to closing half of the black-white achievement gap. Similar results of a recent New York study are equally compelling.
In addition, during the recent Senate budget debate, the Chamber and other groups urged Senate support for a measure that would maintain the existing charter school funding mechanism. The Chamber will continue to work with legislative leaders in the coming weeks to ensure continued support for and expansion of the charter school model.
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Data Privacy:
Chamber
testifies in
support of
privacy
protections that
do not harm
competitiveness
Data privacy regulation will impact companies of all sizes and industries at a time of widespread budgetary constraints and accelerating revenue and job loss. The cost and operational burden of any new business regulation must be viewed, in part, through this lens. Yet ensuring data protection is a goal shared by all – and the Chamber believes this issue can be addressed without significantly impacting the competitiveness of the state. As such, the Chamber will continue working to advance data privacy policy that protects personal information and the Massachusetts economy.
Earlier this month, the Chamber testified in favor of Senate Bill 173, which would help to protect critical data by:
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Aligning state data protection policy with federal regulation to establish a consistent regulatory regime and facilitate compliance for Massachusetts employers;
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Providing flexibility in technology, enabling employers to utilize a variety of next-generation technologies and methods to meet their data protection requirements;
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Requiring scalability in the regulation to avoid a costly and cumbersome one-size-fits-all approach to compliance; and
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Creating separate regulations for small businesses to reflect their unique cost, resource and data situations and employ a more risk-based approach to compliance.
The Chamber believes Senate Bill 173 captures the essence of sound data protection policy. To bring outliers up to industry standard, rather than penalizing those companies already employing best practices. To reflect the time, expense, and resource required of regulated companies seeking to comply, rather than heaping costly, process-laden requirements onto companies amidst an economic crisis.
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Energy:
Chamber working
to secure
revisions to
greenhouse gas
reporting
regulations
The Chamber testified earlier this month on proposed amendments to the Mandatory Greenhouse Gas Reporting Regulation (310 CMR 7.71).
Massachusetts energy costs remain among the very highest in the nation – a competitive disadvantage which continues to impact businesses of all size and industry and hinder job growth and expansion in the Commonwealth. This cost structure could be further impacted by the implementation of the Global Warming Solutions Act of 2008 in the months ahead. As a result, this regulatory process must be viewed in part through the lens of its impact on the regulatory burden and business costs borne by Massachusetts employers. The Chamber supports revisions to the regulation, including changes to the stationary source reporting requirements, annual air emissions data reports, and verification of facility reports, which would help to facilitate implementation for both regulated entities and the state.
Adoption of these revisions could help to lower the cost of compliance and preserve regulatory and legislative intent, without further impacting the competitiveness of our economy, job market, or energy cost structure. The Chamber will continue working with the DEP and stakeholders as this important process moves forward.
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For more
information on
the Chamber’s
policy agenda,
contact
Jim Klocke,
executive vice
president,
Tim Sweeney,
director of
public policy,
or
Sarah Lanning,
assistant
director of
economic
development. |
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Inside the
Chamber |
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On May 12, Senator Steven Panagiotakos, chair of the Senate Committee on Ways & Means, addressed the Chamber's Government Affairs Committee. He discussed the various budget and revenue challenges faced by the state.
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Upcoming Chamber
Policy and
Government
Affairs Events |
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Government
Affairs Forum
Luncheon
U.S. Congressman Edward
Markey
Chairman, Select Committee on
Energy Independence and Global
Warming
Monday, June 8, 2009
Boston Harbor Hotel
11:45 a.m. - 1:30 p.m. Program &
Lunch
Click here to register
b o s t o n c h a m b e r . c o
m
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