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August 14, 2014

Patrick signs jobs bill, sends parts back to lawmakers

Gov. Deval Patrick signed an economic development bill Wednesday that directs funds to brownfields cleanup efforts, data industry workforce development and “transformative” grants for local developments.

As expected, Patrick agreed to the bulk of a bill rushed through the House and Senate before formal sessions ended July 31. But the governor sheared off provisions that created tax credits for Broadway-bound productions and a special designation for Avon and Stoughton.

“We’re capitalizing on our top emerging and existing industries, which play an important role in securing our status as a national leader,” Senate President Therese Murray said at a signing ceremony. “Two of these industries are big data and advanced manufacturing, which both hold significant potential for growth as these industries are partnering with others to share their research and data with the world.”

The $77.8 million law was greeted by local officials who cheered the signing.

The House and Senate have stopped holding formal sessions for the year, meaning legislative leaders would have to take the rare step of calling a lame duck formal session to override Patrick’s vetoes.

Patrick also re-filed legislation that lawmakers stripped from the final version of the bill, which would have limited the ability of companies to use non-compete agreements with employees and removed the state cap on local liquor licenses, giving authority to municipal licensing commissions to determine how many would be available.

Murray said that Patrick’s bills will “be probably taken up next session rather than this session.”

In a statement, Greater Boston Chamber of Commerce CEO Paul Guzzi said he was “pleased” with the new law and glad it did not include the ban on non-compete agreements Patrick had initially proposed.

Patrick also sent back to the Legislature for study a provision that would provide a tax incentive for angel investments, which provide early-level funding for startups.

“As you know, this administration has a strong record of supporting efforts to encourage the Commonwealth’s innovation economy,” Patrick wrote in a message to lawmakers. “But I am not convinced that this new credit is necessary for these efforts.”

Though study amendments often spell the end for legislative proposals, Secretary of Housing and Economic Development Greg Bialecki said the angel investment tax credit could see new life.

“It’s not going to pass this session, but I think obviously there was appetite in the Legislature, and I think in this case a study could lead to action in the next legislative session,” Bialecki said. “Angel investing is very strong in Massachusetts.”

The bill provides funding for computer science education in state classrooms, and sets the upcoming weekend of Aug. 16 and 17 as a sales tax holiday, as well. Bialecki said he believes retailers and consumers will have enough time to prepare for the shopping days, and said his own friends and neighbors have been getting for it, and big retailers have been running ads for weeks “in anticipation for it.”

The $10 million in brownfields funding and $16 million in a “transformative project fund” administered by MassDevelopment included in the legislation will be a boon for cities facing hurdles, said Lawrence Mayor Dan Rivera.

“For us, it’s maybe we need a parking structure downtown in a certain area, which is one of the things we’re talking about,” Rivera said of the transformative grants. “You could probably spend $100 million a year on brownfields across the state, so we’re just happy that we got some of it in there.”

Bialecki added that Patrick’s filing of legislation to remove state limits on liquor licenses would allow economic prosperity to spread beyond Boston, which received new licenses under the legislation.

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