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The Massachusetts Legislature is rapidly approaching the end of formal sessions for the 193rd General Court, with a July 31 deadline to act on a variety of major omnibus bills. In addition to its legislative agenda, the House and Senate are in the midst of negotiating the Fiscal Year 2025 Budget in conference committee. The FY25 Budget is slated to take effect on July 1; however, the Legislature is likely to extend the time (per usual) to consider the FY25 Budget until the end of July, which lines up with the deadline to act on legislation in formal session. We expect a very busy six weeks ahead on Beacon Hill. Please read on for a summary of the major bills still pending before the Legislature.
Economic Development Bond Bill
Status: House to debate tomorrow; Senate to follow in the coming weeks. A conference committee will then likely be formed to reconcile the differences between the House and Senate versions of the bill.
Every two years, the Governor and Legislature develop an economic development package of funding and incentives across various industries. This year’s economic development bill, titled An Act relative to strengthening Massachusetts’ economic leadership, or the “Mass Leads Act”, features bond authorizations for established programs and new initiatives. These are accompanied by policy reforms aligned with the Healey-Driscoll Administration’s core principles of competitiveness, affordability, and equity.
Key components of the bill include:
- The Climate-Tech initiative.
- Revitalization of the state’s life sciences strategy consistent with the 2023 economic development plan.
The proposal focuses on three main areas: fundamentals, talent, and sectors, aiming to harness Massachusetts’ strengths for statewide economic growth and innovation.
In addition to capital authorizations, the bill introduces policy reforms such as new tax incentives to stimulate economic activity. Notably, it proposes a $30 million annual tax incentive for climate-tech firms as part of a decade-long climate-tech strategy.
Other features of the bill:
- Expands and extends the life sciences tax incentive program.
- Adjusts the Economic Development Incentive Program (EDIP).
- Introduces a new $10 million yearly statewide internship tax credit.
- Establishes a $5 million annual live theater tax credit.
- Addresses policies related to permitting, broadband access, rural communities, talent development, and consumer protection.
Housing Bond Bill
Status: Enacted in the House; Senate to debate tomorrow. A conference committee will then likely be formed to reconcile the differences between the House and Senate versions of the bill.
The Housing Bond Bill, or the "Affordable Homes Act," represents Massachusetts' most substantial housing investment to date and intends to bolster the state's affordable housing supply. The Healey-Driscoll Administration reports that Massachusetts needs at least 200,000 new homes from 2020 to 2030 to accommodate growth and achieve a healthy vacancy rate. Rising housing costs have a significant effect on all households, making homeownership increasingly unattainable for many residents.
The Affordable Homes Act is a comprehensive $4 billion initiative comprising capital authorizations, tax credits, and legislative measures.
It encompasses three main components:
- Funding to support public housing.
- Existing housing production.
- Preservation programs.
New initiatives in the bill:
- Tax credits to stimulate housing production and development.
- Legislative and executive actions aimed at reducing barriers to housing production and preservation.
- Enhancing tenant protections.
- Empowering local communities.
- Developing housing policies for seniors and individuals with low incomes.
In terms of development, the Affordable Homes Act allocates $1.83 billion to drive housing production and preservation. This includes:
- $425 million for the Housing Stabilization and Investment Fund to support preservation, new construction, and rehabilitation projects.
- $175 million for the HousingWorks Infrastructure Program to finance municipal infrastructure projects.
- $100 million for the Public Housing Mixed-Income Housing Demonstration Program to assist Local Housing Authorities partnering with developers to create mixed-income developments.
- $100 million for CommonWealth Builder to stimulate affordable homeownership construction in Gateway Cities and similar markets.
- $50 million for the Momentum Fund, an initiative leveraging state resources to back large-scale, mixed-income multifamily developments.
- A policy provision making the community investment tax credit program permanent and increasing its annual funding from $12 million to $15 million.
Information Technology (IT) Bond Bill
Status: Enacted in both the House and Senate. A conference committee has been formed to reconcile the differences between the House and Senate versions of the bill.
The IT Bond Bill, titled An Act to provide for the future information technology needs of Massachusetts (also referred to as the “FutureTech Act of 2024”) supports initiatives intended to enhance the digital experience of residents, enabling easier online interactions with state agencies and funding investments to improve government efficiency. It also allocates resources for future AI and emerging technology projects, leveraging Massachusetts’ innovation ecosystem and enhancing the security and modernization of government IT systems.
Other features:
- The bill provides support for municipal IT grant programs and authorizes $1.23 billion over five years for current and future technology needs, alongside $400 million in anticipated federal funding for major Health and Human Services projects.
- It includes $1 billion in bond authorizations for executive agency capital projects, focusing on cybersecurity and the modernization of tech assets to streamline user experiences and back-end functions.
- It advances ongoing large-scale IT initiatives such as unemployment insurance and payroll system modernization, while promoting new cybersecurity and IT infrastructure projects.
- It facilitates Massachusetts’ leadership in AI by leveraging existing technology, workforce, and educational resources for state government service delivery.
Energy & Climate
Status: Senate enacted one bill last week and another this week; House likely to release its own climate/energy bill and debate in the coming weeks. A conference committee would then likely be formed to reconcile the differences between the House and Senate versions of the bill.
Climate and energy policy is a priority for both the Legislature and the Healey-Driscoll Administration as the state works to implement the Clean Energy and Climate Plan for 2025 and 2030 and the 2050 Decarbonization Roadmap. While we await the release of the House bill, the Senate debated an energy bill this week titled An Act upgrading the grid and protecting ratepayers. The legislation is intended to modernize the electric grid and how residents access power. It addresses issues such as project siting, electric vehicles, third-party electric suppliers, multistate procurement of clean energy, and utility rates.
Key provisions include:
- Establishing a streamlined approach for permitting clean energy projects.
- Creating a Division of Clean Energy Procurements within the Department of Energy Resources.
- Facilitating regional cooperation among New England states for clean energy procurement.
- Expanding discounted utility rates for moderate-income customers.
- Granting utilities more flexibility in negotiating service contracts.
- Prohibiting competitive electric suppliers from enrolling new residential consumers.
- Evaluating emissions from state-owned properties.
- Requiring consideration of greenhouse gas emissions in gas pipeline expansions or replacements.
- Extending funding for the MOR-EV grant program supporting EV purchases.
- Expanding access to EV charging infrastructure.
The climate bill enacted by the Senate last week is An Act to reduce plastics, which proposes a statewide ban on plastic checkout bags. It mandates that retailers charge 10 cents for recycled paper bags, with 5 cents allocated to environmental protection efforts. Additionally, businesses would be required not to automatically provide plastic utensils and straws to customers, and state agencies would be barred from purchasing single-use plastic bottles.
Hospital Oversight & Health Care Reform
Status: Enacted in the House; expected action in the Senate in the coming weeks. A conference committee will then likely be formed to reconcile the differences between the House and Senate versions of the bill.
The hospital sector oversight and health care reform bill, titled An Act enhancing the market review process, was introduced primarily in response to the ongoing Steward Health Care crisis. It proposes directing tens of millions of dollars in aid to struggling community hospitals, intending to ensure all residents have access to high-quality, affordable health care, and aims to prevent future crises by enhancing state oversight of hospital expansions and closures, improving cost control measures to accommodate fluctuations, and increasing funding for hospitals serving predominantly low-income patients and communities of color.
Key provisions of the bill include:
- Stricter penalties for hospitals failing to disclose financial information to regulators.
- Requiring lessors to provide a 60-day notice before reclaiming medical equipment or supplies.
- Granting expanded investigative powers to the Attorney General's office to scrutinize health care transactions involving private equity or real estate investment trusts.
- Prohibiting hospitals from leasing property on their main campuses from real estate investment trusts.
The legislation also addresses MassHealth, including:
- A two-year provision for a 5% rate enhancement to facilities serving a high percentage of public payers with low reimbursements.
- Instructing MassHealth to maximize federal reimbursement to cover enhancements for vulnerable hospitals.
Further reforms proposed include changes to the cost-containment approach established in a 2012 law, shifting from the Health Policy Commission’s one-year benchmark to a three-year benchmark. Lastly, the bill establishes a new Division of Health Insurance, distinct from the existing Division of Insurance.
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