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Economic Development Compromise Reached - Permit Extension Act Included

Updated November 20

On November 20, Governor Healey signed The Mass Leads Act into law.

The nearly $4 billion legislation includes several of NAIOP's priorities, including a two-year Permit Extension Act (section 280); An Act to Safeguard Municipal Permitting (section 171); the establishment of a State Permit Regulatory Office, Permit Ombudsman and Regulatory Ombudsman (section 40); and the creation of a qualified data center tax credit (section 70).

NAIOP strongly supported this legislation and worked closely with the Healey-Driscoll Administration both to develop the recommendations that informed the legislation's initial filing and advocate for its passage.

In the Governor's press release, NAIOP Massachusetts CEO Tamara Small stated,

"NAIOP applauds the Healey-Driscoll Administration and the Legislature for the passage of a bold economic development bill. The critical permitting reforms signed into law today will bring increased predictability to developers, lenders, and communities, while ensuring housing and economic development projects throughout Massachusetts can move forward."

Because The Mass Leads Act contained an emergency preamble, the law goes into effect immediately.

 

Originally posted November 13 

The evening of November 12, the Massachusetts Legislature formally released the final version of the pending economic development legislation, The Mass Leads Act.

The nearly $4 billion legislation includes several of NAIOP's priorities:

  • Permit Extension Act - Section 280 of the bill includes NAIOP's proposal for a Permit Extension Act. This language applies to any permit, certificate, order (excluding enforcement orders), license, certification, determination, exemption, variance, waiver, building permit or other approval or determination of rights from any municipal, regional or state governmental entity, concerning the use or development of real property, and any environmental permit, including certificates, licenses, certifications, determinations, exemptions, variances, waivers, building permits or other approvals or determinations of rights (with some exceptions) in effect or existence between January 1, 2023 and January 1, 2025, and extends those approvals for a period of two years in addition to the lawful term of the approval.
  • An Act to Safeguard Municipal Permitting - Section 171 of the legislation includes language NAIOP filed at the beginning of the session ensuring that special permits and site plan review approvals are protected from retroactive zoning for the length of the permit.
  • Establishment of Permit Regulatory Office - Section 40 of the Mass Leads Act creates a State Permitting Office under the Executive Office of Economic Development; establishes a State Permit Ombudsman who is charged with serving new and expanding businesses in the Commonwealth and is empowered to work with other state agencies to expedite the process of obtaining state licenses, permits, state certificates and other state approvals; and creates a Regulatory Ombudsman to assist businesses in the process of complying with state regulations, and provide periodic training to regulatory personnel across state agencies on how to identify and reduce impacts of regulations, how to reduce those impacts, and how to expedite processes and compliance.
  • Qualified Data Center Tax Credit - Section 70 of the legislation creates a NAIOP-supported qualified data center tax credit. This section will give municipalities more tools in their toolbox to attract investment in their communities.

In addition, the bill authorizes an additional $500 million over the next 10 years for the life sciences sector and $400 million over the next 10 years to the Massachusetts Clean Energy Center to support offshore wind and the development of climate technology. The legislation also includes language explicitly giving public agencies and municipalities the discretion to require project labor agreements for public works projects, and only after the public agency or municipality has engaged in a process to determine if requiring a project labor agreement is in the best interest of the Commonwealth, public agency or municipality.

NAIOP is immensely grateful to Governor Maura Healey, Speaker of the House Ronald Mariano and Senate President Karen Spilka for their leadership to ensure this critical legislation is enacted.

NAIOP also applauds the Conference Committee members, Chairman Aaron Michlewitz; Chairman Michael Rodrigues; Chairman Jerald Parisella; Chairman Barry Finegold; Representative David Muradian; and Senator Peter Durant for their hard work over many months to advance a bold and balanced final bill.

The legislation is expected to be taken up on Thursday, November 14. At this time, no further amendments to the language can be considered. Once passed by the House and Senate, the final legislation will go to the Governor for signature. Because this is a bond bill, the Governor does retain the ability to line-item veto sections of the legislation. NAIOP remains in close contact with Legislative Leadership and the Healey-Driscoll Administration to ensure that the industry's priorities are understood.

The NAIOP Advocacy Team is working on numerous initiatives at the state and local level. If you have questions regarding these, or other topics, please feel free to reach out to NAIOP's CEO Tamara Small or NAIOP's Vice President of Policy and Public Affairs, Anastasia Daou.

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