BOSTON – Senator Michael R. Knapik (R-Westfield) announced yesterday the passage of several important matters in the final days of the 2011-2012 legislative session. A late flurry of activity saw action on many initiatives including conference committee reports on energy cost, economic development, healthcare cost containment, and transportation bond legislation as well as a supplemental budget and veto overrides. The Legislature, by rule, recessed at midnight on Tuesday until the start of the 188th General Court in January.
Competitively priced electricity in the Commonwealth: After several hearings to evaluate the Green Communities Act, passed by the legislature in 2008, each branch of the legislature took aim to lower the cost of energy in the Commonwealth. After more than a month of negotiations, the Conference Committee charged with reconciling the differences between the two proposals settled on:
- Requiring utilities to competitively procure an additional 4 percent its peak-load power needs from renewable sources through long-term contracts. The current requirement is 3 percent.
- Extending long term contracts from 10 to 15 years to 10 to 20 years,
- increasing the total net metering cap from 3 percent to 6 percent of the peak load, increasing the private net metering cap from 1 percent to 3 percent and the net metering cap for governmental entities and municipalities from 2 percent to 3 percent,
- allowing small hydroelectric facilities that qualify for the RPS (Renewable Portfolio Standard) to count towards a distribution company’s RPS,
- establishing a plan revitalization task forces to implement a plan and legislative recommendation to ensure the full deconstruction, remediation, and redevelopment or repowering of retiring coal-fired plants, including the Mt. Tom Coal plant should it be retired.
“The high cost of electricity in the Commonwealth is a serious problem that inhibits economic growth and burdens Massachusetts residents,” Knapik said. “While there is still much work to be done on this issue, I am hopeful this proposal will provide more competitive rates to our state,” Knapik continued.
Economic Development Legislation: This bill, which aims to stimulate job growth and boost economic development in the Commonwealth by targeting grants programs to facilitate job training, assist small businesses, the manufacturing industry, and invest funds to promote research and development, survived a conference committee with several key provision left intact. The bill:
- retained the recapitalization of the Workforce Competitive Trust Fund with a $5 million direct appropriation, a portion of which will support grants to provide training to employees for middle skill jobs,
- eliminated a provision that allows property owners to opt-out of business improvement districts (BIDs),
- establishes a sales tax holiday on August 11 & 12,
- boots the cap on Historic Rehabilitation Tax Credits from $50 million to $60 million,
- authorizes public parking garages to qualify for funds under the Infrastructure Investment Incentive Program (I-Cubed) and boosts the authorized funding level of the program from $250 million to $350 million,
- Creates a new minimum corporate tax credit in the amount of the corporate minimum payment of $456, available to companies in their first three years of filing,
- Extends Brownfield tax credits for two additional years (until 2015).
“Job creation was certainly a top priority for the legislature this session. Although the statewide unemployment rate remains below the national average, pockets throughout the state, especially in the greater Springfield area, continue to feel the effects of the worst economic climate since the great depression,” Knapik remarked. “I am please with the committee’s commitment to the middle skills initiative and the many programs that aim to promote workforce development and job training,” Knapik added.
Health Care Cost Containment: With health care costs absorbing more than 40% of the annual state budget, the conference committee charged with reconciling the differences between the House and Senate versions released their report which seeks to reduce the escalating costs associated with health care spending while improving health care quality and patient care. The bill establishes a statewide health care cost growth goal for the health care industry fixed at an amount equal to or below the overall rate of growth of the state’s economy. This piece of legislation is estimated to save $200 billion over the next 15 years. Other provisions incorporated in the bill include:
- Creates new health care payment methodologies to incentivize the delivery of high-quality efficient and effective health care while reducing waste, fraud, and abuse,
- Establishes a certification process for Accountable Care Organizations (ACOs) that are dedicated to cost growth reduction. The ACOs will receive contracting preference in state health programs,
- Requires health care provider systems to report regularly on financial performance, cost trends, and quality measures and charges the Attorney General to monitor these reports,
- Dedicates $135 million over the next 4 years to support investments in community hospitals to support infrastructure necessary to build the state-of-the-art health care system
- Establishes a wellness tax credit for businesses that implement workplace wellness programs,
- Expands the role of physician assistants and nurse practitioners to act as primary care providers in order to expand access to cost-effective care
- Raises the full-time equivalent threshold for fair share contributions from 10 to 20 employees and adds a provision that employees who have health insurance from other sources will not be included in the calculation,
- Commits an additional $30 million for the continued adoption of electronic records systems,
- Invests in training, education, and skill development programs,
- Bans the use of mandatory overtime for hospital nurses,
- Requires the formation of a uniform procurement unit to negotiate bulk purchases of prescription drugs to reduce the cost for public and private payers.
“I am very pleased this piece of legislation contains $135 million to support infrastructure improvements for financially distressed community hospitals to aid in the transition to new payment methodologies and care delivery models,” Knapik noted.
Transportation Bond Bill: The Legislature passed the transportation bond conference committee report that will allocate $1.4 billion for infrastructure projects including road, bridge or rail projects in Agawam, Westfield, Holyoke, Easthampton, Southampton, Chicopee, and Montgomery. The bill also includes the following local earmarks:
- $2.7 million for the reconstruction of the Route 147 bridge over the Westfield River between the cities of Agawam and West Springfield in Agawam,
- $2 million in assistance for the Holyoke Passenger Rail Platform,
- $3 million to assist in the construction of a 500-space parking deck in Westfield’s downtown,
- $653,750 for improvements for Granby Road to Dale Street in Chicopee,
- $500,000 for the acquisition and construction of a rail trail in Southampton,
- $500,000 for emergency repairs to the Powder Mill Brook Ridge on Main Road in Montgomery,
- $300,000 for the design and reconstruction of the intersection at Pomeroy Meadow Road, Loudville Road, Glendale Street, and West Street in Easthampton,
- $300,000 for emergency repairs to Former Road in Southampton.
CHINS System overhaul: The Senate engrossed the conference report that would establish a network of family resource centers and community-based services for truant children who habitually run away from home, miss school or habitually misbehave in school or at home.
The proposed bill will enable the family of the child to become more involved by offering a network of community and family based services in an attempt to divert children from the juvenile court system and child protection systems. By diverting children requiring assistance to community and family based services, it allows the child to continue residing with their family or legal guardian, attend school, and work to strengthen family relationships. The bill also De-stigmatizes the process by deleting the “CHINS” label for children receiving services
“I am pleased the Legislature has made this bill a priority prior to adjournment,” Knapik said. “By incorporating families into the process and keeping juveniles out of the court system, I am confident this bill will connect at-risk youth with the appropriate resources so that behavior modification and counseling can have the desired long-term impact,” he added
In other legislative action, the Legislature enacted a proposal to address emergency service response of public utility companies in Massachusetts. The proposal was spurred by the widespread power outages in communities across the state during Tropical Storm Irene last August and the unprecedented snowstorm in October.
The bill aims to improve communication between ratepayers, cities and towns, the utilities, and state emergency response personnel by requiring public utilities to report storm outages to the state and designate a community liaison in each community when implementing an emergency response plan. The plan also requires public utility companies to provide three-times-daily estimates to customers about when electricity will be restored following a 24-hour damage assessment period.
The Legislature also acted on a $42.2 million supplemental budget bill to close out Fiscal Year 2012. In addition to allocations for several state agencies, the budget assigns the state share of the costs associated with the cleanup for Tropical Storm Irene and the October 2011 snowstorm. The Senate responded to Governor Patrick’s suggestion that he would not enforce part of the Legislature’s EBT reform by adopting an amendment to the budget bill that would require the Patrick administration to report twice a year on compliance with the new restrictions.
Although the so called “Right to Repair” initiative will appear on the ballot this November, proponents and opponents reached a compromise that both parties feel is a better proposal. The bill takes into account the concerns on both sides and ensures that vehicle owners, independent repair shops, and community dealers are protected. The legislature adopted the proposal and should the measure be signed by the Governor, activist have pledged to work together to inform voters that the ballot question is unnecessary.
The House and Senate also voted to override several vetoes and amendments from Governor Patrick. These overrides included the rejection of an amendment to the Sentencing Reform Conference Committee bill that was passed by the Legislature last week. Citing “unjust consequences” and following a promise he made earlier this session, the Governor sent back a recommendation to provide judicial discretion in the sentencing of habitual offenders. This so called “safety valve” would allow judges to grant parole to repeat offenders, those who committee serious crimes 3 or more times, in certain situations. Governor Patrick conceded to the Legislature and agreed to sign the bill on Tuesday afternoon.
The legislature also voted to override several of the Governor’s budget vetoes including vetoes to:
- the Housing Service Program account. Governor Patrick vetoed $100,000 of the Legislature’s proposed $1,395,996 appropriation. The $100,000 earmark was for the Springfield Neighborhood Housing Services, Inc. in Springfield.
- the Massachusetts Office of Travel and Tourism account. The Governor reduced the account by $350,000. $250,000 was slated to go to the Enrichment Center located in Mattapan and the remaining $50,000 for a child safety grant in the town of Reading.
- the State Parks and Recreation account. The Legislature’s conference committee proposed funding the account at $40,859,387. Governor Patrick vetoed $550,000. $100,000 was designated for the operation of Gardner Heritage State Park in Gardner while the remaining $450,000 was for the development and maintenance of a pedestrian walkway and also various improvements to open spaces in the city of Lowell.
- the Commissioner of Probation account. The Governor vetoed $10,000,000 of the $113,420,055 appropriation.
The Legislature passed several land taking bills and other local matters, which require roll calls, before adjourning.
