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2008
Legislative Recap
On July 31, the state legislative session for
2008 officially came to a close. Due to the fall elections, and
under legislative rules, the Massachusetts House of
Representatives and State Senate are not scheduled to meet again
in formal sessions until January 2009.
Over the past year, the Chamber has been a
lead advocate for business on multiple competitiveness issues.
Despite a series of anti-competitive
proposals that would hamper job creation during a difficult
economy, the Chamber and our partners have been able to a)
secure some important wins for employers and b) blunt the impact
of some of the most onerous new burdens.
At best, however, this was a very mixed
legislative session – and it signifies that even greater efforts
must be made to ensure the competitiveness of Massachusetts
employers.
The following is an end-of-the-session report
on the Chamber’s policy achievements:
While there were achievements over the past
year, the employer community also endured legislative setbacks.
The passage of treble damages legislation,
changes to corporate tax policy (which resulted in $300 million
in new taxes on employers, coupled with $200 million in future
rate relief), adjustments to the health care reform law (which
will result in up to $89 million in new employer contributions),
and the passage of research reporting requirements that could
harm the competitiveness of the region’s biotech industry were
opposed by the Chamber and other business groups.
In the months ahead, the Chamber will be
working to mitigate the harmful effects of these new provisions,
and will continue to advance a number of policy initiatives at
the state, local, and federal levels.
These initiatives include:
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Improving the regulatory climate
governing the financial services industry;
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Working to defeat the income tax repeal
ballot question;
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Advancing policies to increase the
availability of skilled workers; and
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Securing robust FY 2009 funding levels in
key federal research accounts.
As the Chamber develops its 2009 legislative
agenda, it will focus on measures that make Massachusetts more
competitive in the critical areas of costs and worker skills.
The Chamber will keep members updated on policy initiatives
through regular policy updates.
2008 Legislative Session Issue Recap
Achieved unemployment
insurance rate relief
The Chamber played a lead role in securing
the enactment of an unemployment insurance rate freeze bill,
passed by the legislature and signed into law by the Governor in
February. By freezing UI rates at 2007 levels, employers saved
$150 million this year, without harming the overall solvency of
the UI Trust Fund or jeopardizing the fund’s ability to fully
provide unemployment benefits to Massachusetts workers.
Successfully
advocated for passage of life science legislation, including
Chamber-sponsored net operating loss provision
The Chamber was a key supporter of the
10-year, $1 billion Massachusetts Life Sciences Initiative
enacted in June – a bill which seeks to secure Massachusetts’
global leadership in the life sciences industry through a series
of tax incentives, capital expenditures, training initiatives,
research grants, and other targeted life sciences investments.
Included in this law is a Chamber-filed tax reform that extends
the net operating loss carry-forward period for life sciences
companies in Massachusetts.
Secured corporate tax
relief & mitigated impact of tax policy changes
The Chamber collaborated with leading
business groups to secure corporate tax rate relief as well as
key mitigating provisions for accompanying tax policy changes
within the corporate tax bill enacted this year. The inclusion
of phased-in corporate tax rate cuts for C-corporations,
S-corporations and financial institutions, coupled with combined
reporting language limiting Dept. or Revenue discretion and
providing water’s edge election, federal consolidated election,
and FAS 109 relief, will help to move the bill closer to
revenue-neutrality when it is fully implemented.
Helped block
overreaching regulation of chemicals used in manufacturing
The Chamber collaborated with other business
groups to successfully block a proposal that would have harmed
manufacturers and distributors across the state by allowing
state authorities to impose outright bans and mandatory
substitutions of certain chemicals essential to making products
made and sold in Massachusetts. This costly and overreaching
business regulation would have placed the region at a
competitive disadvantage for attracting and retaining jobs,
investment, and facilities.
Effectively lobbied
for health care cost containment provisions – including
electronic medical records and loan forgiveness for health care
professionals
The just-enacted health care cost containment
bill contains several Chamber-supported provisions such as the
adoption of an electronic medical records standard and
loan-forgiveness programs for health care professionals. The
Chamber will be working to secure a gubernatorial veto of the
bill’s provision imposing new public reporting requirements on
research being conducted in Massachusetts – a provision that is
anti-competitive and could substantially impede research in the
state.
Collaborated to defeat
costly nurse staffing bill
The Chamber and other business groups were
once again successful in preventing passage of nurse staffing
legislation, which would have driven up health care costs by
placing burdensome and costly staffing requirements on the
state’s hospitals. The Chamber believes that staffing decisions
should be made by hospitals, rather than state officials.
Achieved adoption of
minute clinic regulations
The Chamber successfully pushed for adoption
of limited service health care clinics in Massachusetts. By
providing individuals a setting where they can obtain quick,
thorough, and affordable care for basic ailments, patients will
not have to visit more expensive emergency rooms for such care.
As a result, the financial burdens placed on the Commonwealth to
provide free care will be reduced, and positive health outcomes
will continue to be achieved.
Defeated burdensome
regulations on research labs
The Chamber successfully blocked a
legislative proposal in February that sought to impose
significant new roadblocks to the construction and operation of
biological laboratory space in the state. The region’s life
science and technology sectors depend on a state regulatory
environment that balances promoting cutting-edge research and
innovation with ensuring public safety in the region’s research
facilities.
Helped prevent adoption of
CORI reform legislation that would have negatively impacted
employers
The Chamber opposed Governor Patrick’s
criminal offender record information (CORI) check reform bill,
which would have restricted employer access to criminal
background information on potential employees. The bill would
have reduced the look-back period for felony convictions from 15
years to 10, and misdemeanor convictions from 10 years to five.
Chamber members were concerned that such provisions would
increase the risk of liability, compromise financial assets, and
conflict with federal requirements.
Provided a comprehensive
& independent analysis of casino gaming
In March 2008, the Chamber released a
comprehensive, data and research-based report which examined the
economic, fiscal, and socio-economic impacts of the casino
legislation proposed by Governor Deval Patrick. The report,
entitled
Casino Gaming in Massachusetts: An Economic, Fiscal, & Social
Analysis and conducted by UHY Advisors FLVS, Inc.,
continues to provide independent analysis for discussion of this
important issue.
Preserved & streamlined
affordable housing production law
The Chamber collaborated to successfully
defeat legislative proposals designed to weaken Chapter 40B –
the state’s long-standing Comprehensive Permit Law – while
advocating for the adoption of a Dept. of Housing and Community
Development proposal designed to codify, consolidate, and revise
Chapter 40B regulation. Preserving this law and streamlining its
implementation will expand the availability of viable workforce
housing options for employees across the state.
Secured substantial
increases in key federal research accounts
The Chamber-led, 41-member National Business
Coalition for Federal Research (NBCFR) helped secure new funding
increases for key federal research accounts in the FY 2008
Supplemental Appropriations Bill enacted in June. The advocacy
of the Chamber-led NBCFR helped build support for the inclusion
of $338 million in 2008 domestic science funding in the bill,
including increases for priority accounts such as NIH, NSF, DOE
Science, and NASA.
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