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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