Greater Boston Chamber Public Policy Update Template test
 
 
Greater Boston Chamber Public Policy News
November 2009
 
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.  The Chamber is working with member companies, government leaders, and other business groups to advance those issues, as outlined below. 

POLICY
In This Issue
Charter Schools | Corporate Tax Policy | Competitiveness Scorecard | Unemployment Insurance  | Data Privacy | Life Sciences
 
Charter Schools: Chamber continues work to secure “Race to the Top” funding 
The Chamber continues to advocate for enactment of strong education reform legislation which would lift the cap on charter schools, create new innovative schools across the Commonwealth, and provide additional mechanisms to turn around underperforming schools. The Chamber believes that Massachusetts must do more to strengthen public education throughout the Commonwealth, and expand options for parents and students.

Earlier this month, the Senate passed a bill that would increase the cap on charter schools in the lowest performing districts, establish Innovation Schools with increased flexibility and autonomy, and create new methods for turning around underperforming schools. The House is expected to debate legislation in early January. Urgent action on education reform legislation will help to improve educational outcomes, close the achievement gap, and ensure that Massachusetts is eligible to receive federal “Race to the Top” funds. The Chamber will continue to advocate for passage of a strong education reform bill, which would lift the cap on charter schools and provide increased educational innovation, prior to the January 19, 2010 “Race to the Top” application deadline.

Corporate Tax Policy: Chamber continues to advocate for combined reporting regulation 
The Chamber is advocating for corrective action on state combined reporting tax rules. Those regulations, released by the Revenue Department in May, contain provisions that will make it more difficult for multistate and multinational companies to do business in Massachusetts.

Combined reporting changes are necessary in order to level the playing field for all Massachusetts employers, and ensure that companies continue to invest, hire, and compete here. Legislation aimed at making technical corrections to the combined reporting law did not advance in the legislature this year. While this bill could move forward when formal legislative sessions resume in January 2010, the combined reporting law could be improved by the Patrick Administration via regulatory amendments. The Chamber will continue to work for those improvements in the weeks ahead. They will make Massachusetts a more competitive and welcoming place for business.
 

Competitiveness: Chamber releases second Competitiveness Scorecard
On November 11, the Chamber released its second Competitiveness Scorecard, a barometer of cost and competitiveness issues facing the Massachusetts economy. This edition of the Competitiveness Scorecard focuses on innovation generated by the state’s higher education sector. To read the full Competitiveness Scorecard click here.

The Scorecard shows that Massachusetts’ colleges and universities play a vital role in promoting and sustaining innovation. Massachusetts ranked 1st in the nation per capita for the total number of patents produced by higher education institutions. A high rate of patent production indicates success in research and development, and also indicates that Massachusetts is a fertile ground for inventors and entrepreneurs. Massachusetts ranked 3rd in the country in the total number of start-up companies created from university research and development.

Despite its relative strength, Massachusetts’ higher education institutions are threatened by the economic downturn and global competition. In order to maintain and strengthen the higher education sector’s position as an innovation leader, the Chamber proposes:

  • Sustaining the strong commitment to federally sponsored R&D and not taxing institutional endowments that continue to fuel research;
  • Promoting patient capital in Massachusetts start-ups by adopting a “3 in 3” investment incentive, which would apply a 3 percent capital gains tax rate to Massachusetts-based start-ups [vs. current 5.3% and 12% rates]; and
  • Strengthening higher education-business connections for talent development to keep college and university talent in the region.

The Chamber will advocate for these recommendations, and will work with college, university, civic, business, and government leaders to ensure that the higher education sector maintains its leadership position as an engine of innovation.


Unemployment Insurance: Chamber advocates for rate relief and systemic reform   
The Chamber has been working for the resolution of two related employer cost issues – unemployment insurance (UI) rate relief and the Medical Security Trust Fund ((MSTF) shortfall – with the goal of cost relief for employers relative to current law. Under current law, Massachusetts employers will face a 42% increase in the first quarter of 2010 in their UI tax rates unless special legislation is passed. Such an increase would add an average $250 in UI costs per worker on top of premiums that are already among the very highest in the nation.

The Chamber has been working with business and state government leaders to gain consensus around a legislative rate relief package that would 1) avert an increase in UI rates from the current schedule E up to schedule G, in favor of a more modest increase to schedule F, and 2) target inequities via systemic reform of the experience rating and workforce attachment provisions. This proposal could save employers more than $300 million compared to current law, and help to mitigate an obstacle to new hiring – without jeopardizing the overall solvency of the unemployment insurance trust fund based on current projections. While formal consideration of this set of UI proposals would not occur before formal sessions resume in January, the Patrick Administration today moved to address a shortfall in the UI system’s Medical Security Trust Fund (MSTF) by doubling the $16.80 per worker fee that employers currently pay into the MSTF. The cost of that increase would be more than offset by avoiding a UI increase to schedule G.

The Chamber will continue to urge the legislature and administration to seize this opportunity to enact UI rate relief in the early stages of the 2010 formal legislative session. Such action would advance economic recovery, drive future state and local revenue growth, and send an important signal to employers that Massachusetts is prepared to compete for their business.

Data Privacy: Final regulations released   
The amended and final Massachusetts data privacy regulation [201 CMR 17.00] was released on November 4th by the Office of Consumer Affairs and Business Regulation (OCABR). These rules will impact the customer security practices of companies doing business in Massachusetts. The Chamber has been working with business and government leaders on this issue since 2008. Changes since that time will lower costs, mitigate operational impacts, and facilitate compliance for companies of all sizes.

The final regulation, which becomes effective on March 1, 2010, contained revisions 1) clarifying that a company that stores the personal information of a Massachusetts resident is subject to the regulation’s requirements, and 2) clarifying prior language related to a grace period for amending existing contracts with service providers. A company has until March 1, 2012 to amend existing contracts with service providers to include personal information security provisions, as long as the existing contracts were entered into before March 1, 2010.

In the months ahead, the Chamber will continue working with government and business leaders to advance the shared goals of secure customer data and a competitive business climate. For additional information on the data privacy regulation and links to relevant state and Chamber resources, please visit the Chamber’s new data privacy portal.

Life Sciences: Chamber works to secure 12 year window of exclusivity for innovative biologics   
Last week a Boston Globe editorial argued against a 12 year window for exclusivity in biologic treatments (therapies developed by life science companies). The Chamber believes that too short a window of data exclusivity for biologics could undercut incentives for research and product development in the life sciences sector. The Chamber submitted a letter to the Globe outlining that position, which appeared in the November 30 edition and can be read here.

Both the US House and Senate are advancing legislation that would authorize a pathway for Food and Drug Administration approval of follow-on biologics. The Chamber supports, and will work for, an approval pathway that grants innovators 12 years of data exclusivity.

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.

 

 

JOBS
October Jobs Update: State unemployment rate drops to 8.9%
Each month, the Chamber releases a monthly jobs update to administration officials, legislators, key policy-makers, and Chamber members, informing them of the state's latest job numbers, emerging trends in job creation, and the state's current employment numbers in relation to the state's 2002 peak.

Headlines from the October 2009 Massachusetts Jobs Update include:

  • Massachusetts lost 900 jobs last month; posted a 3.1% job loss in the last 12 months, moderately better than the US annual job loss rate of 4.0%
  • The state unemployment rate dropped to 8.9%, the first rate decline since June 2007and substantially lower than the US rate of 10.2%
  • Five of the 12 regions added jobs last month; all 12 regions shed jobs year-over-year
  • Education and Health Services are the only two sectors to add jobs statewide year-over-year

Annual Holiday Reception

Wednesday
December 2, 2009
State Room Boston
5:30 - 7:30 p.m.


Government Affairs Forum

Mayor Thomas M. Menino
City of Boston

Tuesday December 8, 2009
InterContinental Boston
7:45 a.m. Registration
8:10 - 9:00 a.m. Program


INSIDE THE CHAMBER
On November 5, the Chamber’s Life Sciences Alliance convened to discuss and craft an agenda of public policy issues to be advanced in 2010. 
On November 9, Barbara Anthony, undersecretary for the Office of Consumer Affairs & Business Regulation, addressed the Chamber’s Financial Services Committee. She provided an overview of efforts to revise and implement state data privacy regulations.
On November 19, Jeff Mullan, secretary & CEO of MassDOT, addressed the Chamber’s Transportation Committee. He discussed substantial progress made by the new agency, MassDOT, created by 2009 transportation reform legislation.

CHAMBER POLICY STAFF

Jim Klocke, executive vice president

Tim Sweeney, director of public policy

Sarah Lanning, assistant director of economic development

 

 
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