March 30, 2010
The Honorable Therese Murray, Senate President &
Members of the Massachusetts State Senate
State House, Boston MA
RE: Senate debate on S.2345 - An Act Promoting Economic Development throughout the Commonwealth
Dear President Murray and Senators:
Associated Industries of Massachusetts, AIM, on behalf of its members from across the Commonwealth, writes to
express our support for S. 2345 An Act promoting economic development throughout the Commonwealth and our
position on various amendments pending to before the Senate/
First, AIM wishes to thank you, Madame President, Senator Karen Spilka, the Senate Chair and Senator Steven
Panagiotakos Senate Chair of Ways and Means for advancing a comprehensive and thoughtful bill encouraging
economic development and reorganizing the structure to deliver economic development services more effectively
throughout the commonwealth.
While strongly supporting the overall bill, (see original testimony attached) AIM would also like to weigh in on
specific amendments pending before the Senate.
Amendments AIM supports Clerk 86 -Zero-Based Budgeting
Clerk 90-Energy Costs
Clerk 4-Independent Contractors
Clerk 5-Employer Personnel Records Amendments AIM opposes
Clerk 8-Fairness in Wage Enforcement
Clerk 19 -Solar Carve-Out Regulations Clerk 53-Independent Contractors
Clerk 22 -Summer Jobs Minimum Wage Clerk 69-Economic Development, Transparency and
Clerk 25 -Rolling Back Significant Habitat Maps Fiscal Accountability
Clerk 34-Employee Compensation Clerk 74-Transparency in Revenues and Expenditures
Clerk 35-Employee Compensation (2) Clerk 80 -Small Business Impact Statements
Clerk 41-Repeal of Contract Administrative Fee Clerk 81-Energy and Green Technology Study
Clerk 76 -DUA, Fair Share Contribution Appeals
Thank you for taking our views into account and feel free to contact me if you have any questions or need any further
information.
Sincerely,
Associated Industries of Massachusetts
S.2270, An Act Promoting Economic Development throughout the Commonwealth
Page 2 of 3
John R. Regan
Executive Vice President - Government Affairs
Associated Industries of Massachusetts
S.2270, An Act Promoting Economic Development throughout the Commonwealth
Page 3 of 3
AIM Testimony of John R. Regan, Executive Vice President, Government Affairs
RE: S.2270, An Act Promoting Economic Development throughout the Commonwealth
Associated Industries of Massachusetts, AIM, on behalf of its members from across the Commonwealth, wishes
to express our support regarding various proposals currently under consideration within S.2270, An Act
promoting economic development throughout the commonwealth. Many of these key provisions included in
the legislation reflect proposals that AIM has been a long proponent.
In my personal experience of economic development and the service delivery system, this is the third or fourth
major effort to re-focus the state’s efforts in a more effective and impactful manner.
Re-organization is a good thing - thinking about the service delivery system, its form, function and efficacy
means that system is not allowed to become stale and complacent. While we support these efforts, we also
point out three additional ingredients necessary for success; a continued focus on improving the overall business
climate; a renewed focus on the customers of this service – the businesses of the commonwealth; and the
ongoing need for consistent execution in providing services deemed to be most valuable by those customers.
Without going into great detail, there are several items in the bill we strongly support:
• Creation of a “sunset” commission to conduct the regular review, and elimination, of agencies and
functions of state government as well as the rules and regulations promulgated by those agencies;
• Establishment of MOBD performance measurement system with clear reporting guidelines and
requirements for posting results on line;
• Requiring any new gubernatorial administration to develop and implement a written comprehensive
economic development policy for the commonwealth;
• Establishing regional MOBD services via contract operations with strict performance measurement
systems built in;
• An expansion of the definition of small business to include many of the commonwealth’s most
important employers;
• Voice over internet protocol or VOIP non-interference language (1);
• The establishment of a small business impact statement requirement for agencies promulgating new
rules or regulations (2); the current text of the legislation contains necessary enforcement language
to ensure that any rule or regulation promulgated by an administrative agency must also contain a
small business impact statement to be valid and enforceable.
Associated Industries of Massachusetts
S.2270, An Act Promoting Economic Development throughout the Commonwealth
Page 4 of 3
• A permit extension provision which allows for the automatic extension of permits granted for project
which are now stalled for financing reasons;
• A requirement for a study to examine the cost reliability and economic impact of electricity.
While supporting and praising the overall effort of this bill, AIM offers a small note of caution.
First, merging functions is not as easy to do in fact as it is on paper. Speaking to actual customers who value
the services provided and are slated for merger may reveal helpful information that may change the shape and
final elements of any merger plan. Areas of some concern to AIM include: the merger of technical assistance
service providers who work directly with businesses with those who perform wider marketing functions as in
the foreign trade technical assistance arena; merger of asset based lenders with more venture based lenders
which is not proposed in the Senate bill but is proposed by the Governor; and the elimination of areas of
competition which serve to hold down pricing for lending products and services by providing options to those
seeking service.
As always, we are available to you and members of the Senate as you debate this legislation and we look
forward to continuing our work of improving the state’s business climate and reshaping the services provided to
employers.
1. Internet-based communications services like V-O-I-P are highly competitive, and are regulated at the federal level. Section 70 of
this bill helps create an innovation policy for the Commonwealth by prohibiting a separate set of Massachusetts-only rules for
Internet-based services. Similar to other sections of the bill that seeks to streamline rules and make it easier to business with and invest
in our state, we need to make it easier and more compelling for companies that invent and invest in this technology to do it in
Massachusetts