Economic development bond authorizations set to enhance state as national leader; Friedman health care workforce amendment adopted
(BOSTON—7/11/2024) Today, Senator Cindy F. Friedman (D-Arlington) and her colleagues in the Massachusetts Senate unanimously passed a comprehensive economic development bill that makes bold investments in life sciences, climate tech, and small businesses, building on Massachusetts’ national leadership and creating an environment where businesses and workers thrive.
The $2.86 billion in bonds authorized in An Act Relative to strengthening Massachusetts’ economic leadership will stimulate new and proven industries, support workforce development and talent retention, and modernize economic growth strategies. The support in S.2586 extends to small businesses, communities, and cultural development, ensuring that main street businesses across the Commonwealth benefit from the economic boost.
“Our economic development legislation directs critical investment to the drivers of the Massachusetts economy, both present and future,” said Senator Friedman, Vice Chair of the Senate Committee on Ways and Means. “This bill provides increased support for our leading industries of climate technology and life sciences, while also paving the way for continued development of our artificial intelligence and advanced manufacturing industries, further elevating Massachusetts on the nationwide and global stage in economic competitiveness. The Senate recognizes the importance of increasing economic opportunity across the Commonwealth and through targeted investments this bill provides for the industries that help define our regions. I am especially grateful to see the inclusion of my amendment that would enter Massachusetts into the Nurse Licensure Compact, as this policy change will be a significant stabilizer for our health care workforce. I thank Senate President Spilka, Chair Rodrigues, and Senator Finegold for their leadership and work on these critical issues.”
The combination of investments, tax credits, and policy changes will position Massachusetts industries as global leaders at a moment when breakthroughs in science and technology are more important than ever.
Provisions of the legislation include:
Maintaining Massachusetts’ Life Sciences Leadership
While 18 of the top 20 biopharma companies now have ties to Massachusetts, the national ecosystem remains competitive.
The Senate’s economic development bill authorizes $225 million over five years for the Life Sciences Breakthrough Fund to reauthorize the Life Sciences Initiative, totaling $45 million annually. Known as “Life Sciences 3.0”, the reauthorization adds health equity, biosecurity, digital health, and artificial intelligence (AI) to the mission of the Life Sciences Center.
It redefines “life sciences” to include preventative medicine, biosecurity, life sciences AI, and medical technology. It also allows for awards and grants to public higher education institutions or public private partnerships.
Keeping Climate Tech Companies in Massachusetts
Massachusetts is first in the nation for per-capita climate tech startups—despite being outpaced in investment by New York and California—with 49 businesses per one million residents.
To incentivize these startups to stay in Massachusetts and continue to build their companies, the legislation provides $200 million for the Clean Energy Investment Fund to facilitate research and development, commercialization, and deployment of climate technologies. It adds a further $200 million for the Massachusetts Offshore Wind Industry Investment Trust Fund to support the growth of the offshore wind industry.
Additional incentives include a climate tech tax credit, a climate tech jobs credit, and a climate tech research credit.
Regional Equity
The legislation reflects the different needs of different communities and ensures none of the Commonwealth’s 351 cities and towns are left behind.
This will partly be accomplished through statewide targeted infrastructure improvements, with the bill authorizing $400 million for MassWorks public infrastructure projects that spur economic development and help support job creation, $100 million for the Rural Development Fund to provide financial assistance for infrastructure and community planning efforts in rural communities, $100 million for local economic development grants for economic development in cities and towns, $90 million to support the redevelopment of underutilized, blighted, or abandoned buildings, and $10 million for the Broadband Incentive Fund for the capital maintenance of the MassBroadband 123 middle mile network.
In addition to infrastructure, the legislation recognizes the importance of local cultural and economic sites, providing $150 million for capital grants for public libraries, $50 million for the Cultural Facilities Fund, $40 million for Destination Development grants to support capital improvements of tourism assets, $15 million for a capital grant program to support the Commonwealth’s agriculture, commercial fishing, and cranberry growing industries, and $8 million for historical preservation grants through the Massachusetts Historical Commission.
Accelerating AI & Advanced Manufacturing Development
To position Massachusetts as a leader of the future economy, the bill includes provisions to further develop the rapidly growing AI industry as well as high-tech advanced manufacturing jobs.
It contains $115 million for the Massachusetts Tech Hub to establish key industry consortia across the Commonwealth, $100 million for the Applied AI Hub program to facilitate the application of AI, $99 million for flexible grants to support advanced manufacturing initiatives, and $25 million for capital grants to advance research, commercialization, and training in robotics.
Retaining Talented College Graduates
Outmigration is notably prevalent among students who graduate from Massachusetts colleges. To keep them and their talent in the state, the legislation includes $85 million for the Massachusetts Education Financing Authority (MEFA) to improve access to affordable higher education opportunities.
Additional talent-retention provisions promote internships for students and recent graduates through the employer internship tax credit and allow foreign-licensed physicians to apply for a limited license to practice medicine in the Commonwealth with a pathway to a full unrestricted license. The program would enable their talents to be used to fill the state’s physician shortage.
Supporting Small Businesses
With nearly 50 per cent of Massachusetts workers employed by companies with less than 500 employees, small businesses are a key part of the Commonwealth’s economy. The Senate’s legislation recognizes this, providing $25 million through MassVentures for small business technology grants to help early-stage companies commercialize new technologies, $35 million for grants to Community Development Financial Institutions (CDFIs) to help disadvantaged and underserved businesses, and $10 million for Biz-M-Power matching grants to small businesses with capital needs.
To assist small businesses in rural areas and areas impacted by pollution, the bill authorizes $3 million for grants to improve the readiness of sites for economic development projects and $30 million for the Brownfields Redevelopment Fund to support the remediation of land impacted by environmental contamination.
During debate, the Senate adopted several amendments, notably:
- An amendment filed by Senator Friedman to admit Massachusetts in the national nurse licensure compact, helping to address the critical workforce challenge facing the health care sector.
- An amendment to increase the age of juvenile jurisdiction to include 18-year-olds. Senator Friedman has been a long-time supporter of the initiative, known as “Raise the Age”, which is proven to decrease crime and improve public safety by allowing emerging adults who are 18 years old—the typical age of a senior in high school—to be tried as juveniles instead of adults for certain crimes.
- An amendment to allow local communities to opt-in and allow bars and restaurants in the community to responsibly offer happy-hour drink discounts.
- An amendment enhancing local public health infrastructure and service delivery.
- An amendment allowing local breweries and distilleries to sell their products alongside local wineries at farmers markets.
- An amendment increasing opportunities for a more diverse public sector teaching force.
- An amendment to provide consumers more rights to seek repair of their cell phones without having to seek service from the original manufacturer.
A previous version of this bill having passed the House of Representatives, the two branches will now reconcile the differences between the bills before sending it to the Governor’s desk.
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