General Laws of Massachusetts - Chapter 23A Department of Economic Development - Section 3A Definitions applicable to Secs. 3A to 3H

Section 3A. As used in sections three A to three H, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Affiliate”, any business which directly or indirectly controls or is controlled by or is under direct or indirect common control with another business, including, but without limitation, any business with whom a business is merged or consolidated, or which purchases all or substantially all of the assets of a business.

“Business”, a private business corporation, partnership, firm, unincorporated association or other entity engaging or proposing to engage in economic activity within the commonwealth, and any affiliate thereof, which is subject to taxation under chapter sixty-two or chapter sixty-three.

“Business incubator”, a facility which: (i) provides small units of space, shared support services, or financing and management assistance to new and established businesses; or (ii) is created and operated for the principal purpose of addressing conditions of unemployment and economic distress by encouraging the creation of new businesses and improving their ability to survive and grow.

“Certified project”, an expansion, enhanced expansion or manufacturing retention project that has been approved by the economic assistance coordinating council for participation in the economic development incentive program pursuant to section 3F.

“Control”, the power to direct the management and policies of a business or a facility thereof, directly or indirectly, through the exercise of voting rights, by contract, or otherwise.

“Controlling business”, a business which controls a business or a facility thereof.

“Distress factor”, a fraction, the numerator of which is the sum of (1) the city or town’s unemployment rate for the most recent three years divided by the commonwealth’s unemployment rate for the same period and (2) the commonwealth’s per capita personal income divided by the city or town’s per capita personal income, and the denominator of which is two.

“Economic assistance coordinating council” or “EACC ”, the council established pursuant to section three B.

“Economic development incentive program” or “EDIP ”, a program designed to promote increased business development and expansion in economic target areas of the commonwealth, to be administered by the EACC.

“Economic opportunity area” or “EOA ”, an area of the commonwealth, located wholly within an economic target area, which is designated by the EACC pursuant to section three E as an economic opportunity area.

“Economic target area” or “ETA”, an area of the commonwealth designated as such by the EACC pursuant to section three D.

“Enhanced expansion project”, a facility that in its entirety and as of the project proposal date: (i) is located or will be located within the commonwealth; (ii) generates substantial sales from outside of the commonwealth; and (iii) generates a net increase of at least 100 full-time employees within 2 years before or after project certification, but not before January 1 of the year preceding the year in which the project receives certification and which shall be maintained for a period of not less than 5 years; provided, however, that in the case of a facility that as of the project proposal date is already located in the commonwealth, enhanced expansion project shall refer only to a facility at which the controlling business has expanded or proposed to expand the number of permanent full-time employees at such facility and the expansion shall represent: (1) an increase in the number of permanent full-time employees employed by the controlling business within the commonwealth; and (2) not a replacement or relocation of permanent full-time employees employed by the controlling business at any other facility located within the commonwealth; provided, further, that in the case of a facility to be located within the commonwealth after the project proposal date, “enhanced expansion project” shall refer only to a facility that is: (a) the first facility of the controlling business to be located within the commonwealth; or (b) a new facility of such business and not a replacement or relocation of an existing facility of such controlling business located within the commonwealth; or an expansion of an existing facility of the controlling business that results in an increase in permanent full-time employees.

“Enhanced expansion project proposal”, a proposal submitted by a controlling business to the EACC pursuant to section 3F for designation of a project as an enhanced certified project, provided that: (i) the proposal is submitted in a timely manner, in such form and with such information as is prescribed by the EACC, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the controlling business; (ii) the proposal includes specific targets by year for the subsequent 5 calendar year period relative to the projected increase in the number of permanent full-time employees of the controlling business to be employed by and at the project from among residents of the commonwealth; provided further, that in the case of a project that is a new facility within the meaning of clause (b) of the definition of enhanced expansion project, such proposal shall include, in addition, the number of permanent full-time employees employed by the controlling business at other facilities located in the commonwealth.

“Expansion project”, a facility that in its entirety and as of the project proposal date: (i) is located or will be located within an EOA; (ii) generates substantial sales from outside of the commonwealth; and (iii) generates a net increase of full-time employees within 2 years after project certification, and which shall be maintained for a period of not less than 5 years; provided, however, that in the case of a facility that as of the project proposal date is already located in an EOA, “expansion project” shall refer only to a facility at which the controlling business has proposed to expand of the number of permanent full-time employees at such facility to occur after the project proposal date and the expansion shall represent: (1) an increase in the number of permanent full-time employees employed by the controlling business within the commonwealth; and (2) not a replacement or relocation of permanent full-time employees employed by the controlling business at any other facility located within the commonwealth; and provided further, that in the case of a facility to be located within an EOA after the project proposal date, “expansion project” shall refer only to a facility which is: (a) the first facility of the controlling business to be located within the commonwealth; or (b) a new facility of such business and not a replacement or relocation of an existing facility of such controlling business located within the commonwealth or an expansion of an existing facility of the controlling business that results in an increase in permanent full-time employees.

“Expansion project EOA ”, the EOA within which an expansion project is located or will be located.

“Expansion project ETA”, the ETA within which an expansion project is located or will be located, determined with reference to the project EOA.

“Expansion project proposal”, a proposal submitted by a controlling business to the EACC pursuant to section 3F for designation of a project as a certified expansion project, provided that: (i) the proposal is submitted in a timely manner, in such form and with such information as is prescribed by the EACC, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the controlling business; (ii) the proposal includes specific targets by year for the subsequent 5 calendar year period relative to the projected increase in the number of permanent full-time employees of the controlling business to be employed by and at the project from among residents of the project ETA; and provided further, that in the case of a project that as of the project proposal date is already located in the project EOA, such projected increase shall not be less than 25 per cent over the subsequent 5-year period; and (iii) in the case of a project that is a new facility within the meaning of clause (b) of the definition of expansion project, such proposal shall include the number of permanent full-time employees employed by the controlling business at other facilities located in the commonwealth.

“Facility”, the physical location, in real property, which may include multiple buildings or locations, owned or leased by a business of a commercial, manufacturing or industrial activity, division or component controlled by that business, or any real estate project which involves the construction or renovation of real property to serve such purpose, or any combination of the foregoing, at which are employed, or are projected to be employed, permanent full-time employees of the controlling business.

“Gateway municipality”, a municipality with a population greater than 35,000 and less than 250,000, a median household income below the commonwealth’s average and a rate of educational attainment of a bachelor’s degree or above that is below the commonwealth’s average.

“Manufacturing retention and job growth project”, a manufacturing facility that in its entirety and as of the project proposal date: (i) is located or will be located within a gateway municipality; (ii) retains a minimum of at least 50 permanent full-time positions or creates a minimum of 25 new full-time positions; provided, however, that if the controlling business increases the number of full-time positions at the facility, it shall be within 2 years after certification of the project and the controlling business shall make a commitment that the positions created or retained are to be maintained for at least a 5-year period; and (iii) generates substantial sales from outside of the commonwealth; provided, however, that in the case of a facility that as of the project proposal date is already located in the gateway municipality, “manufacturing retention project” shall refer only to a facility for which there is a proposed expansion or retention of the number of permanent full-time employees at such facility by the controlling business, to occur after the project proposal date and the expansion shall represent a retention of at least 50 permanent full-time positions or creates a minimum of 25 new full-time positions employed by the controlling business within the project and shall not represent a replacement or relocation of permanent full-time employees employed by the controlling business at any other facility located within the commonwealth; and provided, further, that in the case of a facility to be located after the project proposal date, the “manufacturing retention project” shall refer only to a facility that is: (1) the first facility of the controlling business to be located within the commonwealth; or (2) a new facility of such business and not a replacement or relocation of an existing facility of such controlling business located within the commonwealth.

“Manufacturing retention project proposal”, a proposal submitted by a controlling business to the EACC pursuant to section 3F for designation of a project as a certified manufacturing retention project; provided that: (i) the proposal is submitted in a timely manner, in such form and with such information as is prescribed by the EACC, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the controlling business; (ii) includes specific targets by year for the subsequent 5 calendar year period relative to any projected increase in the number of permanent full-time employees of the controlling business to be employed by and at the project from among residents of the gateway municipality and the commonwealth; provided further, that in the case of a project which is a new facility within the meaning of clause (2) of the definition of manufacturing retention project, such proposal shall include the number of permanent full-time employees employed by the controlling business at other facilities located in the commonwealth.

“MOBD”, the Massachusetts office of business development established in section 1.

“Municipal application”, an application submitted by a municipality to the EACC pursuant to section three D or three E for designation of one or more areas as an ETA or an EOA; provided, however, that: (i) the application is submitted in a timely manner, in such form and with such information as is prescribed by the EACC, and supported by independently verifiable information; (ii) the area proposed for designation in the application is located, in whole or in part, within each municipality participating in said application; (iii) each municipality within which said proposed area is located participates in the application for designation; (iv) that said application is properly authorized in advance of submission; (v) in the case of an application submitted by more than one municipality, all requirements applicable thereto, including without limitation the requirements associated with proper authorization thereof, shall, apply equally to each municipality participating in said application; and (vi) a single application may request designation of both an ETA and EOA.

“Municipality”, a city or town in the commonwealth or, in a case in which two or more cities or towns agree to act jointly for some purpose hereunder then, collectively, all cities and towns participating in such a collaborative agreement.

“Permanent full-time employee”, an individual who: (i) is described under the definition of “full-time employee” set forth in section thirty-one C of chapter sixty-three; (ii) at the inception the employment relationship described in clause (i) does not have a termination date which is either a date certain or determined with reference to the completion of some specified scope of work; and (iii) receives employee benefits at least equal to those provided to other full-time employees of the controlling business. The term “increase in the number of permanent full-time employees of the controlling business employed by and at the project” shall be determined with reference to this definition and to the definition of “increase in the number of full-time employees employed by the corporation” set forth in section thirty-one C of chapter sixty-three.

“Poverty rate”, the poverty rate, as defined by the United States Bureau of the Census, using the most recent census data available, for purposes of identifying poverty areas.

“Project”, an expansion project, enhanced expansion project or a manufacturing retention project.

“Project proposal”, a proposal submitted by a controlling business to the EACC pursuant to section 3F for designation as a certified expansion project, enhanced expansion project, or manufacturing retention project.

“Project proposal date”, the date on which a project proposal is received by the EACC; provided, however, that such project proposal had been properly approved in advance of such receipt by the municipality which contains the project EOA.

“Real estate project”, real property relative to which, at a specified date subsequent to the project proposal date, there shall be initiated construction or renovation activity which, when completed, will result in an increase in the assessed value of said real property of at least one hundred percent over the assessed value of such real property as of the project proposal date; provided, however, that in the case of a real estate facility which is a business incubator facility and which is designated to be a certified project pursuant to section three F, each commercial or industrial facility which executes a binding lease for space in such incubator facility subsequent to the date at which the construction or renovation activity begins shall be eligible for designation in its own right as a certified project pursuant to section three F.

Section:  Previous  1  2  3  3A  3B  3C  3D  3E  3F  3G  3H  3I  3J  3K  3L  Next

Last modified: September 11, 2015