AeA New England Legislative Alert
January 2008

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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In This Issue:

AeA Massachusetts Legislative Overview
Update on Legislation This Session
Get Involved and Shape Your Future

AeA Massachusetts Legislative Overview 

The Massachusetts General Court took a holiday recess until January 2 when action on legislation filed during this two year session will continue.  While ‘recess’ might conjure up images of an empty State House, the halls were decked with legislators in mid-December during a marathon hearing of Governor Patrick’s casino plan. The Committee on Bonding, Capital Expenditures and State Assets heard testimony from the Governor, casino developers, racetrack owners, legislators and countless others.  Before the casino issue comes to a head, several important environmental bills of interest are slated for potential activity very early in 2008, including the so-called Safer Alternatives Bill (a material restrictions bill) and a CRT take back bill.  (See below for information on this month’s grassroots activities related to the Safer Alternatives bill). 

Governor Patrick’s ambitious 10-year, $1 billion initiative to develop the life sciences industry which was divided into three parts and distributed to different committees (Economic Development and Emerging Technologies; Bonding, Capital Expenditures and State Assets; and Revenue) also heard testimony in mid-December.  The proposed legislation includes an array of tax incentives, credits and "pass throughs" to encourage growth in the life sciences sector, which several observers argued should be broadened to include other Massachusetts industries.  There have been charges that the legislation is potentially unconstitutional as it would bestow individual firms with special tax breaks. Sen. Mark Montigny, co-chair of the Committee on Bonding, Capital Expenditures and State Assets, said the portions of the bill allotted to his committee raise questions about borrowing and how the benefits should be distributed.  Legislative action is expected by mid-February and AeA will seek to amend and expand the bill to provide information technology opportunities beyond life sciences.  

The special commission investigating potential changes to corporate tax policy delivered its final report this month.  The commission endorsed the Governor’s ‘check the box’ and ‘combined reporting’ reforms, which the Governor believes will close tax loopholes.  Along with the report, Governor Patrick signaled that he would be willing to trim the state's corporate income tax rate from its current 9.5 percent.  The willingness to lower the corporate income tax rate is a political concession to others’ fears that Patrick is discouraging investment by tightening tax regulations. 

The Commonwealth’s Health and Human Services is still in the early stages of creating an electronic health records task force to examine the advisability of creating an electronic health records system in accordance with legislation signed by Governor Patrick last month.  The health records system would provide linkages between MassHealth and SCHIP programs, as well as programs administered by the commonwealth connector.  The task force will comprise of key legislators and commissioners who will evaluate the anticipated benefits of electronic health records and deliver its recommendations to the Secretary of Health and Human Services by December 31, 2008. 

In other news of note, the House redraft of Governor Patrick’s supplemental budget released in December includes $5 million for the Executive Office of Administration and Finance's information technology division, and $500,000 for its human resources department.

Update on Legislation This Session

Here is an update on legislative developments that AeA is tracking on your behalf.        

Identity Theft/Breach Notification/Security Freeze

Bill/Issue Summary

·        Bill No. HB4144

·        The bill is designed to protect consumers against identity theft.  It requires any type of business entity, individual, or legal entity that maintain personal data to notify consumers when there is a reasonable expectation of a security breach, either by electronic or written means, depending on how the consumer is normally contacted.  Notification must occur as soon as possible and “without unreasonable delay.”  The bills allow consumers to place security freezes on their credit reports with credit reporting agencies at a cost of no more than $5.

AeA Action

·        AeA met with the House Chairman in April to discuss AeA’s principles prior to the hearing.

·        Anne Doherty Johnson testified that AeA supports notification where there is a material breach and if information is already publicly available it shall be excluded. AeA is urging conferees to recede to the Senate version as it more closely adopts AeA’s principles relative to electronic versus paper notification and definition of breach.  AeA also submitted technical corrections to the Governor that were not accepted.

·        AeA is continuing to monitor regulations that will be developed as a result of this legislation. Among our concerns are how “encryption” is defined in the regulations.  To this end, AeA met with the Office of Consumer Affairs and Business Regulation in October.

·        There is a public hearing on the proposed regulations on January 11^th and AeA will again raise the issue of the definition of encryption, encouraging regulators to adopt the ALEC model legislation definition.

Status/Outcome

·        HB4144 was re-enacted by the House and Senate after adopting Patrick’s amendment.  Governor Patrick signed the bill on August 2, 2007 and is now Chapter 82 of the Acts of 2007. 

·        The Office of Consumer Affairs and Business Regulation is holding a hearing on January 11, 2008 at 10am (Room No. 5-6, Second Floor of the Transportation Building, 10 Park Plaza, Boston, MA) on the regulations they have drafted pertaining to the Identity Theft bill.  Copies of the proposed regulations as well as the relevant text from the ID Theft bill are available from AeA. 

Spyware

Bill/Issue Summary

·        Bill No. HB 206 (Bosley), HB 350 (Callahan), SB 259 (Montigny)

·        Prohibits the unauthorized installation of spyware; prohibits the unauthorized installation of any software on another person's computer, or causing said software installation on another person's computer, that engages in the articulated activities, including, but not limited to collection of key-strokes, tracking of web usage or transmitting or relaying viruses; prohibits the unauthorized use of computers as part of a ring engaged in prohibited activities.

AeA Action   

·        AeA met with Chairman Bosley, sponsor of HB206, and communicated AeA’s Spyware principles. 

Status/Outcome

·        HB206 has been assigned to the Joint Committee on Consumer Protection and Professional Licensure and was heard on April 10, 2007.  HB350 and SB 259 were heard by the Joint Committee on Economic Development & Emerging Technologies on July 19^th; neither received testimony. 

E-waste (CRT take back)

Bill/Issue Summary

·        HB 793 (Koczera), HB 864 (Smizik), HB 867 (Smola), HB 872 (Spiliotis), HB 894 (Walz), SB 268 (Pacheco), SB 544 (Rosenberg), SB 1166 (Joyce)

·        Among other provisions, these bills contain language increasing producer responsibility and/or creating collection and recycling programs for used electronic products.  

AeA Action  

·        AeA met with the Chairman of Committee prior to the hearing and educated him and his staff to AeA’s position. 

·        Anne Doherty Johnson testified at the April hearing stating AeA’s E-waste Policy principles and components of effective E-waste legislation. AeA would rather see this issue addressed at the federal level; however, in absence of federal action states must be educated to industry efforts currently underway to find market-based solutions that work.

·        AeA followed up this testimony with a second meeting with the Chairman of the Committee in August that included AeA, interested members and Senate Chairman Smizik and his staff and House Chairwoman Resor.  During these meetings, participants discussed the committee’s deliberations to date and reviewed a potential commercial/industrial/government exemption for items not likely to enter consumer waste stream, as well as the need to better clarify use of the “CPU” in the final bill.  The bill is expected to come out of committee early in 2008.

Status/Outcome

·        HB793, HB864, HB867, HB872, HB894, and SB544 have been assigned to the Joint Committee on the Environment, Natural Resources, and Agriculture.  They were heard on May 21, 2007, except HB867, which was heard on May 14, 2007.  SB268 was heard by the Joint Committee on Economic Development and Emerging Technologies on July 17.  There was some debate among committee members as to whether SB268 was being heard in the appropriate committee; and Sen. Pacheco – the bills sponsor – testified in favor, noting that Dell had interest in the legislation.  SB1166 was heard by the Joint Committee on Municipalities and Regional Government on September 19^th.

·        An E-waste bill will probably be reported out favorably.  It is unclear if it will be modeled after the E-waste laws from California (advance recovery – supported by manufactures) or Maine (producer responsibility – supported by retailers).  AeA is seeking exemption language for large industrial and commercial purposes not likely to enter consumer waste stream.   

·        This bill is a priority for both the House and Senate Chairmen.

RFID

Bill/Issue Summary

·        Bill No. HB 261 (Kennedy), SB 159 (Barrios)

·        Regulates the use of radio frequency identification tags, or RFID tags, so-called, by commercial entities; requires said entities to post notice of the use of said tags in locations available to consumers prior to their exposure to said tags; requires all products that use said tags to contain a logo or identifier on the package; limits the use of RFID tags to inventory purposes. 

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.

Status/Outcome

·        These bills have been assigned to the Joint Committee on Consumer Protection and Professional Licensure.  SB 159 was heard on April 10, 2007.  With the departure of Senator Barrios action is not anticipated this year as he was the chief proponent. HB261 is scheduled to be heard on October 9^th.

UCITA

Bill/Issue Summary

·        Bill No. HB 370 (Mariano)

·        Defines choice of law provisions included in a computer information agreement, which require the interpretation of contracts pursuant to the laws of a state that enacted the uniform computer information transactions act or any similar law, as voidable; mandates the interpretation of said agreements under the laws of the commonwealth when the party against whom enforcement is sought resides in the commonwealth or is principally located in the commonwealth.   

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        The bill was heard by the Joint Committee on Economic Development and Emerging Technology on July 19, 2007.  The bill’s sponsor is an influential chairman and could attach this bill to an existing piece of legislation.

Violent Video Games

Bill/Issue Summary

·        Bill No. HB 1423 (Forry)

·        Regulates the sale of violent and sexually explicit video games to minors.    

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        The bill has been assigned to the Joint Committee on Judiciary.  It has yet to be heard. 

Mercury Management

Bill/Issue Summary

·        Bill No. HB 796 (Kujawski)

·        Articulates provisions relative to the disposal of mercury containing waste products and the proper collection, transportation, recycling and disposal of same; directs the department of environmental protection to participate in the implementation of IMERC standards established at the Northeast Waste Management Officials Association; prohibits the sale or distribution of mercury added products without submission of notification to said department; exempts products regulated by federal law from said notice requirements; subjects confidential business information included in said notification to the public record laws; mandates the protection of trade secrets; prohibits the sale or distribution of motor vehicles manufactured on or after January 1, 2007 containing one or more mercury added vehicle switches; mandates the replacement of said switches with non-mercury alternatives when possible; regulates the disposal of said mercury-added vehicle components; requires motor vehicle manufacturers to submit plans to the department of environmental protection regarding the removal, collection and recovery of mercury switches; articulates components of said plans; prohibits the sale or distribution of mercury added thermostats, or other articulated mercury-added products, including, but not limited to switches, relays, barometers, esophageal dilators or hygrometers; authorizes and regulates the exemption of products from said prohibitions; restricts the sale of mercury to schools; mandates and regulates the disclosure of mercury content used in products in health care facilities; prohibits the disposal of said mercury-added products in any manner other than recycling, disposing as hazardous waste or other approved method; requires manufacturers selling or distributing mercury-added products to file plans for collection of said products at the end-of-life; articulates facets of said collection programs; mandates and regulates the labeling of products containing mercury; limits the collection of said mercury-added products by solid waste collectors; requires all state procurement guidelines to give preference to products that do not contain mercury; directs said department to promulgate rules and regulations relative to said provisions; articulates reporting requirements relative to said provisions.

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        This bill has been assigned to the Joint Committee on the Environment, Natural Resources, and Agriculture.  It was last heard on May 7, 2007.  This bill is not expected to progress in light of a major mercury bill passing last session.

Alternatives to Toxic Chemicals – Safer Alternatives

Bill/Issue Summary

·        Bill SB 2406 – combination of bill H783 and H558 (ten chemicals bill), SB 536 (Resor)  

·        SB 2406 submits an act for a healthy Massachusetts safer alternatives to toxic chemicals; mandates the replacement of the use, manufacture, emission and distribution of the articulated priority toxic substances with the safest available alternatives; regulates the designation of a substance as a priority toxic substance; articulates various substances, including, but not limited to lead and formaldehyde; directs the department of environmental protection to establish action plans for each priority toxic substance which designates action steps and timelines for replacing each category of use; regulates the contents of said plans, including, but not limited to usage surveys, alternative products and implementation plans; articulates unacceptable alternatives, including, but not limited to those which contain known or probable human carcinogens; regulates the contents of implementation plans, including, but not limited to mitigation of negative economic impacts, deadlines for implementation and end date for use of said toxic substances; requires the completion of action plans within five years; directs said department to establish a priority toxic user registry; establishes and regulates the membership and operations of the safer alternatives oversight board; regulates the issuance of grants by said department relative to said provisions; regulates addition of substances to the priority toxics substance list; articulates provisions relative to enforcement and appeals of said provisions; establishes a fee on the sale or distribution of said substances in the commonwealth.

·        SB 536 is not the principal toxic use reduction bill but is worth noting as it restricts household cleaning products containing phosphorous. 

AeA Action  

·        AeA testified at the June 11^th hearing.

·        AeA is working with a coalition of other impacted industries to educate legislators on the potential consequences of this bill.  After it was reported out by the committee in November, there was great concern since it had been completely rewritten and reported out with out any opportunity for the business community to supply input.   On that basis, AeA and members of the business community successfully worked to delay the bill from being voted on immediately. 

·        The business coalition met in December and devised a set of Questions and Answers for coalition members to distribute to lawmakers.    

·        AeA is concerned that there is no harmonization with other material restrictions rules now in effect globally (RoHS), and is also concerned by the great uncertainty as to what the final list of chemicals – developed in a regulatory process outside of the legislation – would be.  We are also concerned that the list of chemicals to be restricted would come from regulations developed after passage of the bill and with provisions that allow any 10 individuals to petition to add more chemicals to the list at any time.

·        Also of concern to the business coalition are: provisions that call for reviews every five years of the potential substances that could be banned (this moving target of chemicals could negatively impact product development and R&D); provisions that would allow any group of ten Massachusetts residents to petition to add new substances to the chemicals lists (adding even more uncertainty to manufacturers); notice requirements for manufacturers that would create an administrative burden on manufacturers doing business in Massachusetts; enforcement and appeals provisions that call for violator penalties of up to $25,000 per day of violation; and the creation of new government authority to exclude products from the state when a distributor or manufacturer has failed to comply with the bill.  Yet other provisions could negatively impact retailers and their ability to sell electronics in Massachusetts. 

·        During the December break, the business coalition met with members of the Senate to express concerns about the bill.  AeA urged its members who manufacture or sell products in Massachusetts to participate in these meetings, designed to educate lawmakers about the details and potential unintended consequences of the reworked bill.  Members have been updated on these efforts throughout the process via conference calls and email communications.

Status/Outcome

·        SB536 was passed by the senate on September 27^th and referred to the House Committee on Ways and Means.  This bill, along with E-waste, is a priority for both the House and Senate Chairmen.  

·        HB783/SB2406 has been assigned to the Joint Committee on the Environment, Natural Resources, and Agriculture and was heard on June 11, 2007.  SB 2406 was combined with HB783 and was reported favorably by the committee on November 5^th, 2007.  It is now expected to come up for a Senate vote the week of January 7^th.   AeA members with an interest in this bill are asked to weigh in with Senate leadership.

Energy

Bill/Issue Summary

·        Bill No. HB 4373 (DiMasi)

·        There are various energy bills this session but the most important appears to be House Speaker DiMasi’s 364-page energy bill, “The Green Communities Act of 2007.”  It is likely that other energy bills will either be co-opted by DiMasi’s or simply die in committee.

·        Other bills relating to energy include HB2900, HB2902, HB2968, HB3024, HB3027, HB3273, HB3290, HB3295, HB3312, HB3317, HB3335, HB3337, HB3347, HB3357, SB248, SB2422, SB1924, SB1925, SB1974, SB1976, SB1977, and SB1984       

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 4373 was engrossed by the House shortly before winter recess by a vote of 151-0 and is now in the Senate Committee on Ways and Means. 

Corporate Tax Loopholes

Bill/Issue Summary

·        HB 3756 (Governor Patrick)

·        Patrick’s bill would close various “tax loopholes” on businesses and was expected to generate $500 million for the state.  However, it failed to gain support in the Legislature and, as a result, the Governor and Legislature appointed a commission (The Study Commission on Corporate Taxation) to study the tax code and make recommendations.  It is charged with “studying ways to modernize and simplify business tax laws, promote tax fairness, encourage business growth and innovation, and strengthen the Commonwealth's global competitiveness.” 

AeA Action  

·        AeA is monitoring the commission. 

Status/Outcome

·        The Commission adopted an interim report by a vote of 8-7 on June 12, 2007.  The report recommends a “check the box” policy change, which would generate an estimated $170 million per year for the state.  There are still other taxation proposals that the Commission is considering.  

Health Information Technology and Electronic Records

Bill/Issue Summary

·        HB 3222 (Murphy), HB 3242 (Scaccia), SB 264 (Moore), SB 1279 (Moore)

·        HB 3222 and HB3242 establish fees and standards for electronic medical records.

·        SB 264 creates a grant program to promote patient safety through electronic medical records.

·        SB 1279 promotes a statewide system of electronic medical records for chronic care management.  

AeA Action

·        AeA provided our ehealth reports to the members of the Committee, namely AeA’s: eHealth 201: Designing the Virtual Hospital: Telemedicine Lowers healthcare costs and Saves Lives Remotely (November 2007) and AeA’s eHealth: Electronic Medical Records: Reduce Costs, Improve Care, and Save Lives (December 2006).

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        The Joint Committee on State Administration and Regulatory Oversight heard HB3222 and HB3242 on June 19, 2007.  SB 659, and SB 1238, and HB 2197 are in the Joint Committee on Health Care Financing, where the latter two are to be heard on October 4^th.  HB 2255, SB 678, and SB 1279 are in the Joint Committee on Public Health.  SB 261, SB 263, and SB 264 were heard by the Joint Committee on Economic Development and Emerging Technologies on July 19. 

Public Health

Bill/Issue Summary

·        SB 129 (Barrios)

·        SB 129 proposes measures to improve community health. Among other stipulations, the bill would create a community health index, and require companies to complete a ‘health impact assessment’ to protect the health of community residents.  The bill would also allow a group of ten people to submit a petition and cause a review of the proposed project’s impact on community health.   

AeA Action

·          AeA continues to develop and direct lobbying strategy and testimony throughout the process.

Status/Outcome

·        The Joint Committee on Public Health heard the bill on July 25.  The bill received strong testimony in opposition from the National Association of Industrial and Office Properties, who said that the bill would discourage revitalization of urban areas by placing any project in the ‘stranglehold’ of a ten-person petition. 

Outsourcing/Immigration

Bill/Issue Summary

·        HB 3201 (Golden), SB 1067 (Hart), SB 1894 (Pacheco)

·        HB 3201 amends provisions relative to competitive sealed bidding procedures under the uniform procurement act and establishes a preference for Massachusetts bidders whose bid is within five percent of the lowest out-of-state bidder.

·        SB 1067 mandates that all state contractors comply with Homeland Security’s I-9 process which verifies lawfully present persons in the United States.

·        SB 1894 debars employers who violate federal immigration laws (“unauthorized aliens”) from contracting with the Commonwealth.

AeA Action  

·        AeA is seeking a meeting with Senator Hart to educate him to AeA’s opposition to SB 1067.  AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 3201 and SB 1894 are in the Joint Committee on State Administration and Regulatory Oversight.  They were last heard on April 10, 2007.  SB 1067 is in the Joint Committee on Labor and Workforce Development and has yet to be heard.

Trademarks/Trade Secrets

Bill/Issue Summary

·        HB 1587 (Loscocco), HB 3183 (Driscoll), SB 1914 (Tolman)

·        HB 1587 Establishes a Uniform Trade Secrets Act; clearly defines misappropriation and states that the Act does not affect contractual remedies, civil remedies and criminal remedies.

·        HB 3183 and SB 1914 make a technical correction to the state Trademarks Act by making it consistent with the federal system of trademarks and gives the federal Act should be examined as persuasive authority for interpreting and construing this chapter.

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 1587 is in the Joint Committee on Judiciary and has yet to be heard.  HB 3183 and SB 1914 are in the Joint Committee on State Administration and Regulatory Oversight and were heard on June 6, 2007.

Computer Crimes

Bill/Issue Summary

·        HB 1612 (Naughton), SB 793 (Baddour), SB 1849 (Baddour)

·        HB 1612 and SB 793 regulate the issuance of subpoenas to obtain the records of common carriers, electronic communication services or remote computing services, when  records are relevant to an ongoing criminal investigation; exempts said carriers from civil or criminal liability for compliance with bill’s provisions; authorizes the courts of the commonwealth to issue warrants for specific records of electronic communications services or remote computing services held by foreign corporations; regulates determinations of probable cause and implementation of searches pursuant to warrants; requires Massachusetts electronic communication service providers to comply with similar warrants issued from courts of other states.

·        SB 1849 imposes terms of imprisonment and/or fines up to ten thousand dollars for the intentional direct or indirect use of a computer or electronic communications device to defraud, commit larceny or extort money, damage, destroy, disrupt or deny access to another computer, harass another person, obtain medical or financial information about another person, or otherwise engage in unauthorized access to another computer; authorizes the prosecution of crimes in the location county of the defendant, the accessed computer or any remote device used by defendant. 

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 1612 and SB 793 are in the Joint Committee on Judiciary.  SB 793 was heard on April 10, 2007 and HB 1612 has yet to be heard.  SB 1849 was removed from the Joint Committee on State Administration and Regulatory Oversight (where it was heard on June 19, 2007) and referred to the Joint Committee on Judiciary.

Emerging Technology Development

Bill/Issue Summary

·        HB 368 (Koutoujian), HB 2900 (Finegold), HB 2992 (Koutoujian), HB 3098 (Rodrigues), SB 2423 (Pacheco), SB 1822 (Tisei)

·        HB 368 directs the Massachusetts Technology Development Corporation to establish the Massachusetts tax credit certificate program; requires program to allow new or expanding emerging technology and biotechnology companies with tax benefits to surrender those tax benefits for use by other corporate business taxpayers in the state; requires corporation to approve applications for participation in program; articulates eligibility criteria for participation, including, but not limited to whether proposed financial assistance will result in growth in permanent, full-time employment in the state; limits annual tax credit transfers to two hundred million dollars per year; limits tax credit transfers surrendered by individual companies to five million dollars over a lifetime; regulates implementation of program.

·        HB 2900 provides for programs that encourage economic investment in hydrogen and fuel cell technologies.

·        HB 2992 amends definition of a research and development corporation to include expenditures related to research and development activities performed by a third party.

·        HB 3098 repeals the net worth excise tax on intangible property.

·        SB 534 repeals the net worth excise tax on intangible property corporations.  SB 534 Creates the Global Warming Solutions Act of 2007.  Directs DEP to consult with the Public Utilities Commission in the development of emissions reduction measures, including limits on emissions of greenhouse gases applied to electricity and natural gas providers regulated by the Public Utilities Commission in order to ensure that electricity and natural gas providers are not required to meet duplicative or inconsistent regulatory requirements. Directs DEP to design emissions reduction measures to meet the statewide emissions limits for greenhouse gases established in this bill.

·        SB 1822 allows assignment of the research and development credit.  Any corporation who is the beneficiary of such assignment must apply the credit in the taxable year commencing immediately after the year in which the credit is earned.  Credit may not be carried over to subsequent tax years.

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 368 was heard by the Joint Committee on Emerging Technologies and Economic Development on November 26^th and December 19^th, 2007.  HB 2900, HB 2992, HB 3098, and SB 1822 are in the Joint Committee on Revenue.  SB 534 is in the Joint Committee on Environment, Natural Resources and Agriculture.

Accessibility of Technology

Bill/Issue Summary

·        HB 349 (Cabral)

·        HB 349 would requires all electronic information and telecommunications technology purchased by the commonwealth to comply with provisions of federal law pertaining to accessibility for individuals with disabilities; directs the information technology division of the executive office of administration and finance to implement the articulated procedures to ensure said compliance.  

AeA Action  

·        AeA presented two amendments to HB 349: one dealing with encouraging the state not to go beyond the federal standard; and another to remove the requirement for 3rd party verification. 

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 349 heard favorable testimony in the Joint Committee on Emerging Technologies and Economic Development on July 19.  There was strong testimony in support from the blind community.  Testifiers noted that the legislation would help the blind community to reduce its 70% unemployment rate – a figure that has not changed in 40 years.  HB 349 has not come out of committee yet but is expected to receive a favorable report.

·        AeA members have been asked for their input in developing a proposed amendment to the bill.  Some member companies have concerns that the bill allows the state IT Division to have authority to enact requirements more stringent than the current Section 508 accessibility standards.  This would be of concern to any manufacturer of IT products; many high tech companies have been very active on this issue on a federal level. 

Life Sciences Development

Bill/Issue Summary

·        HB 4234 (Governor)

·        HB 4234 proposes a 10-year, $1 billion investment in a variety of programs to encourage the development of the life sciences industry.  The proposed legislation includes an array of tax incentives, credits and "pass throughs" to encourage growth in the life sciences sector; authorization of $500 million in capital spending to create and build the Massachusetts Stem Cell Bank and an RNAi center ("The world's largest repository of new stem cell lines available to all sectors, both public and private."); and the creation of a $15 million Massachusetts Life Sciences Investment Fund to finance research, small business innovation grants, life sciences fellowships, and workforce training. 

AeA Action  

·        AeA continues to monitor this issue throughout the process.  As this important bill moves through the legislative process, AeA will seek to amend and expand the bill to provide information technology opportunities beyond life sciences.

Status/Outcome

·        HB 4234 was referred to the Joint Committee on Economic Development and Emerging Technologies on September 6^th and was first heard on October 30^th, 2007.  On November 29^th, the bill was divided into three sections and distributed to the Joint Committee on Bonding, Capital Expenditures and State Assets (Sections 2, 3, and 4); Joint Committee on Revenue (Sections 7, and 14 to 23, inclusive); and Economic Development and Emerging Technologies (rest of bill).  The Joint Committee on Revenue held a hearing on December 17^th, 2007 and the Joint Committee on Economic Development and Emerging Technologies hearing on December 19^th, 2007.

Manufacturing Taxes

Bill/Issue Summary

·        HB 3112 (Scaccia), SB 1725 (Creem), SB 1729 (Fargo), SB 1821 (Tisei), SB 1833 (Tisei), SB 1840 (Walsh), SB 1842 (Walsh)

·        HB 3112 repeals the single sales tax  apportionment

·        SB 1725 amends various provisions relative to the taxation of corporations, including, determinations of net worth, and definitions of corporations subject to tax; amends provisions relative to the tax rate imposed on corporations; authorizes the payment of sixty-six cents per thousand dollars upon the value of a corporation's net worth.  

·        SB 1821 expands the investment tax credit.

·        SB 1833 extends single sales factor apportionment to all corporations.

·        SB 1840 establishes a presumption that all payments by a subsidiary to a parent corporation or affiliated corporation are in excess of fair value and did not represent fair competition.

·        SB 1842 amends various provisions relative to the taxation of corporations; repeals provisions which exempt defense corporations from laws reducing taxable income to account for income earned out of state; repeals provisions articulating formulae for the taxation of defense corporations; amends various provisions relative to the calculation of the sales factor for the purpose of calculating corporate taxes.

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        All of these bills are in the Joint Committee on Revenue.  They have yet to be heard.

STEM Education

Bill/Issue Summary

·        SB 367 (Spilka) creates a commission to study ways to improve science, technology, engineering and math (STEM) education in the state.

·        HB 4141 and SB 3 (the proposed House Senate budgets for FY08) appropriate $4,000,000 annually and create a special fund for STEM education. 

AeA Action  

·        AeA has communicated with legislators its support for the STEM fund.

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        SB 367 is in the Joint Committee on Education and was heard on May 15, 2007. 

·        Patrick signed the budget noting that the $4,000,000 appropriated for STEM education will lay, “a foundation for the next level of education reform.”

Expanded Telecommunications

Bill/Issue Summary

·        HB 3385 (Vallee) allows for greater competition in cable services by allowing companies to apply for a state-wide operating franchise. 

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        HB 3385 was heard on June 6^5th, 2007 in the Joint Committee on Telecommunications, Utilities and Energy. 

·        Patrick has also unveiled a $25 million broadband expansion program that has yet to be filed as a bill in the House. 

Cell Phone Use in Cars

Bill/Issue Summary

·        HB3422, HB3451, HB3577, HB3622, HB3679

·        HB3422 Prohibits the operation of a motor vehicle while using a cell phone, unless the cell phone is hands-free, so-called  

·        HB3451 Prohibits the use of mobile telephones while operating a motor vehicle unless said telephone is equipped with hands-free technology, so-called; prohibits persons under the age of eighteen from using a cellular telephone while operating a motor vehicle; articulates an exception to said prohibition for emergencies, as defined; directs the executive office of public safety to initiate a campaign relative to the proper and safe use of cellular telephones while operating a motor vehicle.  

·        HB3577 Bans cell phone use while driving, HB3622 does the same, but makes an exemption for hands-free devices

·        HB3679 Prohibits persons under eighteen years of age from using a mobile telephone, as defined, while operating a motor vehicle; imposes penalties for violation, including suspension of the junior operator’s license or learner’s permit and fine; allows the defense that the telephone call that is basis of the alleged violation was for the sole purpose of seeking emergency assistance; prohibits considering a violation as a conviction of a moving violation for the purpose of determining surcharges on motor vehicle insurance premiums; prohibits insurance companies from denying individuals the right to purchase motor vehicle insurance based on a violation; repeals provision allowing any person to operate a motor vehicle to use a citizens band radio or mobile telephone while one hand remains on the steering wheel; prohibits any person from operating a motor vehicle on a public way while holding a mobile telephone; allows using a mobile telephone if said phone is affixed to the vehicle or is adapted for hands free use; articulates exemptions for firefighters, drivers of rescue vehicles or ambulances and public safety officials; imposes fines for violation; allows the defense that the telephone call that is basis of the alleged violation was for the sole purpose of seeking emergency assistance; prohibits considering a violation as a conviction of a moving violation for the purpose of determining surcharges on motor vehicle insurance premiums; prohibits insurance companies from denying individuals the right to purchase motor vehicle insurance based on a violation.

AeA Action  

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.

Status/Outcome

·        These bills have been assigned to the Joint Committee on Transportation and were heard September 18^th.                                             

Standards (Toxic Toys, Transformers)

Bill/Issue Summary

·        SB 545 (Spilka), SB 1964 (Morrissey)

·        SB 545 Prohibits the manufacture and sale of children’s toys containing the articulated plastic additives and materials; directs toy manufacturers to use the least toxic, non-carcinogen alternative that does not cause birth defects, reproductive or developmental harm for said materials.  

·        SB 1964 States that no new medium voltage dry-type distribution transformer, single-voltage external AC to DC power supply, or state-regulated incandescent reflector lamp manufactured on or after January 1, 2008 may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in CMR 9.03

AeA Action 

·        AeA continues to develop and direct lobbying strategy and testimony throughout the process.  AeA continues to seek additional input from member companies.  

 Status/Outcome

·        SB 545 was heard in the Joint Committee on Environment, Natural Resources and Agriculture is in the Joint Committee on Education and was heard on May 7, 2007. SB 1964 was heard in the House Chamber on November 1, 2007.

Online Child Safety

 Bill/Issue Summary

·        HB 3404 (Jones)

·        HB 3404 requires that every city, town, regional school district or vocational school that provides computer access to minors shall have a policy regarding internet safety measures and shall make this policy known to the parents and guardians of minors.

AeA Action