The AeA New England Legislative Alert is designed to inform members about legislation and critical developments impacting high technology businesses. Published by AeA New England, 444 Washington Street, Suite 405, Woburn, MA  01801.  For more information, please contact Anne Doherty Johnson, Executive Director, at 781.938.1925, x105.  
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Political Overview - Massachusetts 2007

Massachusetts saw new executive office leadership in Deval Patrick, the first black governor in Massachusetts history and the first Democrat in 16 years. Governor Patrick, sworn in on January 4, is expected to put more emphasis on energy efficiency and alternative energy sources than the previous governor, and will likely continue to champion science and math at all levels of education.

In 2006, two major Beacon Hill priorities were an economic stimulus package and a health care reform proposal aimed at near-universal health insurance for Massachusetts. The tech community backed the economic stimulus package, with a strong focus on science and technology. Both issues passed during the session. Other new laws impacting high tech included mercury, toxic use reduction, model state trademark, and corporate tax loopholes. More details on these bills can be found below.

2006 also saw a major debate over open software standards, which has now been resolved. The administration and the Legislature were at odds over the way the administration announced its intention to adopt them. The Legislature supported open standards but argued their adoption should be preceded by an open, inclusive debate. Also voiced was concern for the disability community that relies on proprietary assistive software. The differences were worked out, the needs of the disabled adequately addressed, and open standards were adopted for the state on January 1, 2007.

A number of bills of interest to our industry failed to pass during the last session, but are very much alive and likely to re-filed. Likely to be the focus of legislative attention will be legislation focused on identity theft and data breach notification, spyware, RFID, alternatives to toxic chemicals and ink cartridge recycling, to mention a few.  Copies of these bills will be available some time in March.
 

Legislative Calendar

The Massachusetts Legislature begins a new two-year session in January 2007. Thousands of bills will be filed by the January 10 deadline and will slowly become available over the following weeks as the clerks work through them. Posting on line generally takes place over time.

Bills Passed in 2006

Economic Stimulus Package
Bill No. HB 5057

Issue: The stimulus package appropriates $437 million, with a great deal going to the high tech and biotech industries. It also emphasizes science and math in higher education. Specifically, the bill offers $35 million for a U-Mass Lowell nano-manufacturing and bio-manufacturing facility, $7.5 million in science, technology, engineering and math scholarships, and creation of a $10 million life sciences center to attract private funding and coordinate all life sciences activities in the state, among other things.

Current Status: The bill was signed into law on June 24, 2006 with some vetoes from Governor Romney. Many of these vetoes were subsequently overridden. Chapter 123 of the Acts of 2006.
 

Mercury Ban
Bill No. HB 5112 (Committee on Environment, Natural Resources and Agriculture)

Issue: This bill places disposal bans on certain mercury products, requiring manufacturers to label and collect such products, and phase out the sale of other products containing mercury, such as automobile switches, thermostats and thermometers. It does not, however, contain provisions regulating “electronic waste,” which was removed from the bill at the last minute. Legislators say they plan to take it up in the next session.

Separately, the United States Environmental Protection Agency recently touted the promulgation of final rules that reclassify mercury-containing equipment, including switches and thermometers, in an attempt to encourage product recovery and collection and to steer products containing mercury out of municipal trash systems and into the hazardous waste system.

Current Status: Signed into law on July 28, 2006. Chapter 190 of the Acts of 2006.

Toxic Use Reduction

Bill No. SB 2250 (Joint Committee on Environment, Natural Resources and Agriculture)

Issue: Modifies various provisions relative to the Massachusetts Toxics Use Reduction Act, so-called; directs the Department of Environmental Protection to annually compile, analyze and summarize the information contained in annual toxic or hazardous substance reports; amends various provisions relative to the administrative council on toxics use reduction and its duties; repeals provisions relative to the Massachusetts Advisory Board on Toxics Use Reduction; amends various provisions relative to the operation of the Toxics Use Reduction Institute at the University of Massachusetts Lowell; repeals provisions authorizing the funding of said institute through the toxics use reduction fund, so-called; replaces the Office of Toxics Use reduction Assistance and Technology with the Office of Technical Assistance and Technology; charges said office with implementing effective toxics use reduction and other pollution prevention or resource conservation activities -- and in complying with the requirements of this chapter and other applicable environmental and health and safety laws -- amends various provisions relative to the inclusion of CERCLA listed items on the toxic or hazardous substances list; articulates threshold amounts for the manufacture, processing or use of toxic or hazardous substances; amends reporting requirements relative to the use of said materials and amends various provisions relative to the Toxics Use Reduction Fund.

Current Status: Signed into law on July 28, 2006. Chapter 188 of the Acts of 2006.


Model State Trademark

Bill No. HB 3500 (Rep. Driscoll)

Issue: Submits the Model State Trademark Bill, so-called, for adoption in the Commonwealth; regulates the registration and protection of trademarks; defines trademarks as any word, name, symbol, or device or any combination thereof used by a person to identify and distinguish the goods of such person, including a unique product, from those manufactured or sold by others.

Current Status: Signed into law on August 1, 2006.


Corporate Tax Loopholes (MA Software Tax)

Bill No. HB 4169, HB 4365 (House Ways and Means), SB 2241 (Senate Ways and Means)
Issue: These bills close a variety of tax “loopholes” including the imposition of a tax on downloaded software, effective the first day of the fourth month following the date of passage.
Impact: Expected to generate $170 million in revenue.

Current Status: Signed into law by Governor Romney on December 8, 2005. Chapter 163 of the Acts of 2005. On February 13, 2006, the new tax on software was promulgated by the Massachusetts Department of Revenue. Beginning April 1, 2006, downloaded software (not just software delivered in a tangible form, like a CD) is now subject to state sales tax if it is downloaded in Massachusetts or if it is intended for use in Massachusetts.


Health Care Access

Bill No. HB 4850 (Joint Committee on Health Care Financing)

Issue and Current Status: The legislature overrode all of Governor Romney’s vetoes, finishing its work on June 15, 2006. Chapter 58 of the Acts of 2006.

On June 30, 2006 the Division of Health Care Finance and Policy promulgated a proposal regarding the $295 “fair share” assessment created by the new health care law on employers with more than ten (10) full-time employees. Under the proposal, the assessment would be entirely waived if such employers covered at least one quarter of their employees. If employers pay at least 33 percent of an individual employee’s premium, the assessment would be waived for that employee. Final regulations are still being completed. Please contact AeA for more details.
 

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This page was last updated on 01/05/07.  
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