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CLT UPDATE
Saturday, August 4, 2018

Wins and losses from Beacon Hill


In the hectic final hours of formal legislative sessions for 2018, House Speaker Robert DeLeo opted against trying to advance benefit district legislation after the proposal drew a wave of criticism from the left and right in the last few weeks. The bill, which had quietly built momentum over many months, now faces a murky future.

The legislation would enable new local option assessments in defined community districts. It cleared both branches this session before running into trouble.

The bill would allow property owners to draw up boundaries of a community benefit district, and start charging assessments within that district as long as the landholders who initiate the district would pay the majority of the assessments. Districts would need local approval and the total annual assessment could equal up to half of 1 percent of the total assessed valuation of the participating properties....

One of the groups opposing the bill, Citizens for Limited Taxation (CLT), sent a thank-you note to lawmakers Wednesday "for dropping the so-called 'Community Benefits District' proposal from the flurry of legislation that passed yesterday and last night." CLT added, "The last minute concern for the additional property tax burden it would have imposed upon constituents is very much appreciated." ...

In the wave of criticism that suddenly crashed on the bill recently, CLT called it (H 4546) a "sly end-run around Proposition 2½."

State House News Service
Wednesday, August 1, 2018
Benefit district bill stalls out in Legislature


It was a surprise that the House and Senate did not give final approval to a local option bill allowing a city or town to authorize the creation of community benefit districts which would allow owners of contiguous property in a city or town to form a district and require property owners in that district to pay for additional services, improvements, events and other projects and activities within the district. The districts would be operated by a nonprofit board.

The Legislature meets in informal sessions for the next several months and the rules basically allow just one person in either the House or Senate to prevent passage of any bills. That means the controversial measure is effectively dead for this year.

The demise of the proposal is very unusual considering the bill was approved 149-2 by the House on May 30 and 25-10 in the Senate on July 18. Only final approval was needed in each branch prior to the measure going to the governor.

Enter an unlikely coalition of liberal and conservative groups who started a lobbying campaign against the bill.

The conservative faction said the bill was nothing more than another unnecessary tax on property owners. The liberal faction said the bill gives too much power to a few wealthy property owners in a neighborhood....

“The last-minute awareness by the Legislature of the additional property tax burden the neighborhood tax and an entirely new tier of government would have imposed upon constituents is very much appreciated,” said Citizens for Limited Taxation Executive Director Chip Ford, a leader in the fight against the bill. “The broad opposition coalition of left, right, and center successfully got legislators' attention. When such widely diverse political groups representing countless citizens can so strongly coalesce on anything these days it speaks loudly. It would be an easy task to collect signatures and put it on the ballot for voter repeal if it had passed.”

Beacon Hill Roll Call
By Bob Katzen
Week of July 30-August 3, 2018
Allow Neighborhoods To Band Together
And Form A District With Power (H-4546)


Governor Charlie Baker on Friday again quashed a legislative proposal to fight Greater Boston’s epic traffic with a toll discount for commuters outside rush hour.

Baker vetoed the measure and directed his transportation officials to “complete, within nine months, a comprehensive analysis of when, where and why congestion is getting worse . . . and what additional policies and programs should be put in place to address it.”

The toll discount was proposed as a pilot program to see if it would encourage some drivers to shift their commutes outside rush hour, clearing up highway space from Boston’s awful congestion....

In his veto message, Baker again expressed his disinterest in so-called congestion pricing, a practice more popular in other parts of the world. He characterized that option as “raising the tolls [on] those who do not have good alternatives to driving at congested times.”

Baker also asserted the test wasn’t necessary because officials already know the state’s electronic toll technology is capable of charging different rates at different times.

Joseph Boncore, the state Senate’s transportation chairman, said he was disappointed with Baker’s decision.

“It was meant to measure whether reducing toll prices at peak congestion times, with people who had more flexibility, whether we could incentivize them to stay off the road,” Boncore said. “I just don’t understand his unwillingness to try it.”

The Boston Globe
Saturday, August 4, 2018
Governor Baker spikes toll discount trial again


“It was smart of Gov. Baker to veto the congestion pricing bill,” said Citizens for Limited Taxation Executive Director Chip Ford.  “It’s nothing more than a carrot-and-stick temptation, bait that will only be switched to higher tolls during rush hour.  This is Massachusetts.  We all know that when something sounds too good to be true it’s too good to be true for sure.”

Beacon Hill Roll Call
By Bob Katzen
Week of July 30-August 3, 2018
Charge Different Tolls At Different Times Of Day (H-4831)


What began as a roughly $600 million economic development borrowing bill nearly doubled in size during secret talks before it surfaced for final votes around midnight Tuesday after lawmakers packed in authorizations for local projects.

The $1.15 billion bond bill, the product of a late-session compromise between the House and Senate, authorizes almost $538 million in public infrastructure grants for local projects, $250 million for the MassWorks Infrastructure program and $75 million in grants for technical education and workforce training.

The latest version of the bill was introduced in the House at 11:50 p.m., where it was approved with no discussion. It made its way to Gov. Charlie Baker's desk about an hour later after a final vote in the Senate.

The Senate passed its $601 million bill on July 25, after the House approved a $666 million version earlier in the month. Lawmakers spent the last week of legislative sessions working behind the scenes to reconcile the two bills and their final product included hundreds of millions of dollars more in long-term borrowing authorizations than what either branch had initially signed off on....

Baker has 10 days to review the bill. One of its provisions -- a two-day sales tax holiday set for Aug. 11 and 12 -- would take place 10 days from Wednesday.

State House News Service
Wednesday, August 1, 2018
Jobs bill grew to $1.15 Billion in House-Senate talks


Chip Ford's CLT Commentary

Whew, what a close of the 2017-18 legislative session.  The sausage is still being dissected, the tea leaves read.  So much was rammed through the House and Senate in the closing 48 hours that none could possibly know what they were voting for or against.

If you were watching the proceedings (as I was for 13 straight hours on Tuesday into Wednesday morning) all you saw and heard was a blur of words from the speaker's rostrum rambled faster than human hearing could process.  Not words, not even sentences just a relentless, garbled stream of sound.  Rules were regularly suspended ad nauseam, calls of the yeas and nays were indistinguishable from the "the ayes have it" in a continuous stream of sound.

The Legislature passed a lot of stagnating legislation.  The Legislature ran out of time and failed to pass a lot of stagnating legislation.  The two-year session legally ended on midnight of Tuesday.  The Legislature was still voting an hour beyond that, until 1:12 AM Wednesday.  This time, they didn't even pretend to "suspend the rules" they just kept voting until they quit.

But we got our big win, and we saved Proposition 2½ once again!  Our astounding 11th-hour turn-around of the neighborhood property tax ("Community Benefits Districts") not only saved CLT's Prop 2½ from an assault from the flank but saved residents and property owners from a shocking new property tax.

"Section 7. (a) The yearly assessment shall not exceed ½ of 1 per cent of the sum of the assessed valuation of the property owned by participating property owners who are required to pay the district fee."

A one half of one percent new tax on a property's assessed value ― as proposed [above] by that bill ― would have required a resident in a "benefits district" with a home assessed at $250,000 to pay an additional property tax of up to $1,250 a year ― every year going forward.

Beyond cutting and limiting taxes, numerous past CLT wins over the decades have prevented new taxes like this from ever being imposed.  Though unheralded, not recognized or unappreciated, CLT's defensive successes like this have saved millions of taxpayers literally billions of their dollars ― and most don't even know it, or care.

Just ask any of your friends, neighbors, or family members if they appreciate, or even know about, this latest huge CLT victory for them.

CLT Saves Proposition 2½ Again — 2018
from "Community Benefits Districts"
A devious end-round around Prop 2½

One of the benefits of the Legislature being unable to complete its job before the two-year clock ran out is, now Governor Baker has the ability to veto with little or no legislative recourse.  One such advantage is with the "congestion tolling" scam, which is dead at least for now.  But like everything bad on Beacon Hill that fails, it will be back.

We were provided with yet another case of what "compromise" means on Bacon Hill with the Legislature's so-called "economic development" bill.

The House passed its version, "investing" (spending our money) $666 million into "economic development."

The Senate passed its own version, instead "investing" (spending our money) $601 million into its "economic development" bill.

The two differing versions were sent to a House/Senate conference committee to find, in "secret talks," a compromise a figure somewhere in the middle that would be agreeable to both branches.  It was another one of those last minute things.  The State House News Service reported:

"The latest version of the bill was introduced in the House at 11:50 p.m., where it was approved with no discussion. It made its way to Gov. Charlie Baker's desk about an hour later after a final vote in the Senate."

The compromise between the House's $666 million and the Senate's $601 million?

$1.15 billion!

A classic Bacon Hill compromise!

Chip Ford
Executive Director


 
State House News Service
Wednesday, August 1, 2018

Benefit district bill stalls out in Legislature
By Michael P. Norton


In the hectic final hours of formal legislative sessions for 2018, House Speaker Robert DeLeo opted against trying to advance benefit district legislation after the proposal drew a wave of criticism from the left and right in the last few weeks. The bill, which had quietly built momentum over many months, now faces a murky future.

The legislation would enable new local option assessments in defined community districts. It cleared both branches this session before running into trouble.

The bill would allow property owners to draw up boundaries of a community benefit district, and start charging assessments within that district as long as the landholders who initiate the district would pay the majority of the assessments. Districts would need local approval and the total annual assessment could equal up to half of 1 percent of the total assessed valuation of the participating properties. Assessment revenues would in turn help districts and communities "to support the 18-hour management of our state's downtowns, main streets and village centers," as the Massachusetts Smart Growth Alliance put it. "These 'live, work, and play' areas need more attention and resources than residential neighborhoods," according to the alliance.

The bill was the product of months of negotiations between Sen. Brendan Crighton of Lynn, Secretary of Housing and Economic Development Jay Ash, and former Sen. Eileen Donoghue, who is now Lowell's city manager. According to Crighton's office, the bill "carefully balances the interests of large and small property owners" and has the backing of several mayors, chambers of commerce, and the Massachusetts Municipal Association.

The legislation is an "example of good government," Crighton told colleagues during debate in July. "The process of getting to this point has been anything but brief ... We've done as much outreach as we can to all parties because we really believe this is a bill that all sides can rally around and support."

One of the groups opposing the bill, Citizens for Limited Taxation (CLT), sent a thank-you note to lawmakers Wednesday "for dropping the so-called 'Community Benefits District' proposal from the flurry of legislation that passed yesterday and last night." CLT added, "The last minute concern for the additional property tax burden it would have imposed upon constituents is very much appreciated."

House and Senate leaders could still try to enact the bill and send it to Gov. Charlie Baker, who has vetoed previous iterations of the proposal, but the barrier to passage rose overnight Tuesday. During informal sessions that are scheduled to run from now until early January, any member of the House or Senate may block the advancement of any bill. So if opponents show up for sessions, they can thwart any bid to give the bill final approval.

The House passed the bill 149-2 on May 30. All seven Republicans in the Senate and eight Democrats opposed the bill, which passed that branch 22-15 on July 18. Citing strong concerns with the bill from labor unions, Senate President Pro Tem Marc Pacheco, a Taunton Democrat, has said he might drop his support for the bill unless his own concerns about it are allayed.

"I believe we could be unleashing the opportunity for outsourcing and privatization of municipal services across the Commonwealth of Massachusetts in this bill," Pacheco said during debate on the measure. "And if that's what I find out that could be done when this bill comes back in the enactment stage, I will vote no."

Crighton disputed the claim of labor concerns. "We have not heard any concerns from labor that I'm aware of," he said during debate, distinguishing between municipal services and "supplemental services" envisioned in benefit districts.

After the Senate vote, House Minority Leader Brad Jones said he was reconsidering his support for the bill and had "serious concerns." Jones said it "may well be better" for cities and towns to pursue community benefit districts individually rather than to enact a statewide policy on district creation.

In the wave of criticism that suddenly crashed on the bill recently, CLT called it (H 4546) a "sly end-run around Proposition 2½." The American Civil Liberties Union of Massachusetts said the bill violates the principle of "one person, one vote" and called it "troublingly silent" about the open meeting, public records and procurement laws that guide local government. Secretary of State William Galvin also raised public records law concerns.

Reps. Michelle DuBois (D-Brockton) and Denise Provost (D-Somerville) said they oppose the bill because they think it grants outsize power to wealthy corporations. Calling the districts a "bad idea," the Massachusetts Law Reform Institute recently tweeted, "Let's keep our public spaces public. Say NO to a bill that proposes to turn them over to a few wealthy property owners." The institute called the bill an "anti-democratic takeover of our neighborhoods."

Other groups opposing the bill, according to the institute, are Alternatives for Community & Environment, the Boston Tenant Coalition, Lynn United for Change, the Massachusetts Fair Housing Center, Springfield No One Leaves/Nadie Se Mude and The Welcome Project of Somerville.

Salem Mayor Kim Driscoll and Worcester Chamber President Tim Murray, the former lieutenant governor, have spoken out in favor of the legislation.

"Massachusetts is one of the most restrictive states in the country in terms of how municipalities raise revenue," Murray told the News Service last month. He said, "There's going to be a very involved, thorough process where these things are looked to be implemented. So this is just a tool. It's not a fait accompli whether it's going to happen or not. You've got to make the case."

Rep. Mike Connolly (D-Cambridge), who joined Provost and DuBois in guarding against the bill's advancement in recent weeks, said talks are continuing over it.

Asked about the legislation's future in informal sessions, Connolly said, "I think it remains to be seen. There have been a lot of discussions with different members. My sense is a lot of folks really started to take a close look at it in the last couple of weeks."

In addition to hearing concerns about the bill from labor unions, Connolly said there are other programs, including the business improvement district model, that can serve as an alternative to community benefit districts. He also expressed concerns about how a benefit district could be dissolved after issuing debt, calling that an area of "huge concern."

Asked if he planned to monitor future legislative sessions with Provost and DuBois, Connolly told the News Service on Wednesday afternoon that he would check in with them about plans and also mentioned concerns about the bill from the House Republican caucus, which has 34 members.
 

Beacon Hill Roll Call
By Bob Katzen
Week of July 30-August 3, 2018

Allow Neighborhoods To Band Together And Form A District With Power (H-4546)


It was a surprise that the House and Senate did not give final approval to a local option bill allowing a city or town to authorize the creation of community benefit districts which would allow owners of contiguous property in a city or town to form a district and require property owners in that district to pay for additional services, improvements, events and other projects and activities within the district. The districts would be operated by a nonprofit board.

The Legislature meets in informal sessions for the next several months and the rules basically allow just one person in either the House or Senate to prevent passage of any bills. That means the controversial measure is effectively dead for this year.

The demise of the proposal is very unusual considering the bill was approved 149-2 by the House on May 30 and 25-10 in the Senate on July 18. Only final approval was needed in each branch prior to the measure going to the governor.

Enter an unlikely coalition of liberal and conservative groups who started a lobbying campaign against the bill.

The conservative faction said the bill was nothing more than another unnecessary tax on property owners. The liberal faction said the bill gives too much power to a few wealthy property owners in a neighborhood.

Andre Leroux, Executive Director of the Massachusetts Smart Growth Alliance supported the bill and believes that community benefit districts can be a game changer. “The bill establishes a way for communities to organize a public-private-nonprofit partnership to support their downtown, Main Street, cultural district, historic area or other important place, said Leroux. “It’s really about empowering local people to tackle their own challenges.”

Rep. Denise Provost (D-Somerville), one of only two representatives to vote against the bill in the House in May said this new option allows certain property owners to create their own fiefdoms and the ability to assess other property owners for purposes determined by themselves. “These are the kind of activities for which local government exists,” said Provost. “Why would we want to have a class of … private, parallel quasi-governments to perform these functions? Is the democracy, transparency and accountability of local elected government a problem?”

“While we are disappointed that the bill didn’t pass, we are encouraged by the overwhelming showing of support by businesses, non-profits, residents, and municipal leader,” said Sen. Brendan Crighton (D-Lynn), the sponsor of the proposal. “Communities across the state have made it clear that they want this additional tool that has been successfully used in over a thousand districts across the country.”

“The last-minute awareness by the Legislature of the additional property tax burden the neighborhood tax and an entirely new tier of government would have imposed upon constituents is very much appreciated,” said Citizens for Limited Taxation Executive Director Chip Ford, a leader in the fight against the bill. “The broad opposition coalition of left, right, and center successfully got legislators' attention. When such widely diverse political groups representing countless citizens can so strongly coalesce on anything these days it speaks loudly. It would be an easy task to collect signatures and put it on the ballot for voter repeal if it had passed.”


The Boston Globe
Saturday, August 4, 2018

Governor Baker spikes toll discount trial again
By Adam Vaccaro


Governor Charlie Baker on Friday again quashed a legislative proposal to fight Greater Boston’s epic traffic with a toll discount for commuters outside rush hour.

Baker vetoed the measure and directed his transportation officials to “complete, within nine months, a comprehensive analysis of when, where and why congestion is getting worse . . . and what additional policies and programs should be put in place to address it.”

The toll discount was proposed as a pilot program to see if it would encourage some drivers to shift their commutes outside rush hour, clearing up highway space from Boston’s awful congestion.

After lobbying from transportation advocates throughout 2018, lawmakers included it as part of the new state budget adopted in July. Baker swiftly nixed that idea, sending it back to lawmakers with the suggestion to conduct a study instead.

Lawmakers didn’t take him up on the offer; rather, they simply sent the same discount plan back to Baker. This time, though, with the Legislature out of formal session for the year, his veto is almost certainly the final word.

The governor had said he was doubtful that a small toll decrease would put much of a dent in traffic. A toll increase at rush hour might — but he was reluctant to explore that option, he said.

In his veto message, Baker again expressed his disinterest in so-called congestion pricing, a practice more popular in other parts of the world. He characterized that option as “raising the tolls [on] those who do not have good alternatives to driving at congested times.”

Baker also asserted the test wasn’t necessary because officials already know the state’s electronic toll technology is capable of charging different rates at different times.

Joseph Boncore, the state Senate’s transportation chairman, said he was disappointed with Baker’s decision.

“It was meant to measure whether reducing toll prices at peak congestion times, with people who had more flexibility, whether we could incentivize them to stay off the road,” Boncore said. “I just don’t understand his unwillingness to try it.”

Transportation for Massachusetts, the advocacy group that pushed for the initiative, said Baker must develop policies to improve traffic.

“For the sake of everyone stuck in traffic across Massachusetts, we urge the governor to take action on congestion,” said Chris Dempsey, the group’s director. “The status quo is not working.”
 


Beacon Hill Roll Call
By Bob Katzen
Week of July 30-August 3, 2018

Charge Different Tolls At Different Times Of Day (H-4831)

Gov. Baker vetoed legislation directing the Massachusetts Department of Transportation to design and implement a temporary pilot program to test the technological feasibility of charging toll rates that differ depending on the time of day, with the goal of relieving congestion for motorists.

The measure forbids the program from resulting in a toll rate increase on any road or driver and must include a discount structure, including off-peak discounts of not less than 25 percent.

“While I support the idea of reducing congestion on our roads, this ... proposes a program that is too narrow and unlikely to have the desired effect of alleviating congestion,” Baker said in a message to the Legislature. “It would be better to evaluate all of the potential solutions to this problem and then pursue the solutions that are most likely to achieve the best results.”

Sen. Joseph Boncore (D-Winthrop) and other proponents of the pilot program are disappointed with the veto. They said the program would have been an important first step toward taking some concrete action to solve the traffic congestion problem in the Bay State.

Boncore said the program is aimed at drivers who have more flexibility to use the roads during off-peak hours, instead of during rush hour. He noted that studies have shown that if the number of drivers on the road is reduced a mere 5 percent, traffic congestion could be reduced by 25 percent.

“Congestion not only strains our infrastructure, but it severely limits our economic potential,” said Boncore. “Smart tolling is an innovative use of an existing technology that can help use our roads more efficiently. If we can incentivize drivers that don’t need to be on the road during peak transit hours and reduce the number of vehicles, we will improve our traffic conditions and reduce stress to our infrastructure.”

“Hardworking Massachusetts residents who drive into Boston every day should not be punished any more than they already are,” said Paul Craney, Executive Director of the Massachusetts Fiscal Alliance,” who opposes the measure.

“The governor was right to veto this latest bad idea and if the state is serious about reducing traffic, which we hope they are, they should do it in a way that rewards good behavior, not punish those who give so much to our state’s economy. It would be a first to have a study commissioned by the Legislature in which the final outcome was that they wanted to reduce the amount of money they take from taxpayers.”

“It was smart of Gov. Baker to veto the congestion pricing bill,” said Citizens for Limited Taxation Executive Director Chip Ford.  “It’s nothing more than a carrot-and-stick temptation, bait that will only be switched to higher tolls during rush hour.  This is Massachusetts.  We all know that when something sounds too good to be true it’s too good to be true for sure.”
 


State House News Service
Wednesday, August 1, 2018

Jobs bill grew to $1.15 Billion in House-Senate talks
By Katie Lannan


What began as a roughly $600 million economic development borrowing bill nearly doubled in size during secret talks before it surfaced for final votes around midnight Tuesday after lawmakers packed in authorizations for local projects.

The $1.15 billion bond bill, the product of a late-session compromise between the House and Senate, authorizes almost $538 million in public infrastructure grants for local projects, $250 million for the MassWorks Infrastructure program and $75 million in grants for technical education and workforce training.

The latest version of the bill was introduced in the House at 11:50 p.m., where it was approved with no discussion. It made its way to Gov. Charlie Baker's desk about an hour later after a final vote in the Senate.

The Senate passed its $601 million bill on July 25, after the House approved a $666 million version earlier in the month. Lawmakers spent the last week of legislative sessions working behind the scenes to reconcile the two bills and their final product included hundreds of millions of dollars more in long-term borrowing authorizations than what either branch had initially signed off on.

Senate Minority Leader Bruce Tarr said the size of the bill reflects "the tremendous interest in both chambers in expanding our economic growth."

"I view that as a positive, because I view it as an alternative to increasing taxes to be able to fund the priorities that we have, and so I would hope that we would continue along that path to say that we need to grow our economy and concentrate on things that help it grow, rather than things that may constrain or inhibit it," he said after the Senate adjourned early Wednesday morning.

Among the projects included in the final bill are $500,000 to design and build a regional arts center at the Burlington Mall or elsewhere in the town, $250,000 for North Mountain Park in Dalton, $500,000 for the career and technical services program at Weymouth High School, $2 million to restore the Everett Square Theatre in Hyde Park, and $3 million for the replacement of Framingham's Saxonville Fire Station.

The inclusion of a project in a bond bill, even if it is signed by the governor, does not guarantee that a project will occur since the executive branch can only advance a limited number of projects under the state's annual borrowing cap.

"There's still many steps to get those checks cashed, so to speak," Sen. Eric Lesser, the Senate chair of the Economic Development and Emerging Technologies Committee, told the News Service Wednesday. "What it's really about is setting down markers for where the priorities are, where we want the state heading, and what types of investments we want in the picture for when the capital planning process comes along."

Lesser, who developed the bill with House Chair Joseph Wagner, said the bill focuses on three main areas.

"If the first part, the sort of bread and butter infrastructure, was about hard hats and putting people to work on construction and improving infrastructure, the second part was about training and education of our workforce," the Longmeadow Democrat said. "The third element that I think was important was about the future and how we position Massachusetts to continue to be an innovation sector."

On the policy front, the bill (H 4868) restricts non-competition agreements between employers and workers, a measure that eluded lawmakers' grasp in the final hours of formal sessions in 2016.

It also includes protections against "patent trolling," which Lesser's office describes as bad-faith assertions of patent infringement that entangle new small businesses in costly lawsuits, and it tasks the Massachusetts Technology Collaborative with recommending ways the state can best position itself for the autonomous vehicle industry.

Baker has 10 days to review the bill. One of its provisions -- a two-day sales tax holiday set for Aug. 11 and 12 -- would take place 10 days from Wednesday.

 

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


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