Economic Development
Representative Sánchez values the many innovative companies, world class institutions of higher education, and creative entrepreneurs in the state of Massachusetts, he is committed to sustaining the Commonwealth’s economic growth and global competitive edge.
2010 Economic Development Legislation
When the legislature addressed the state’s economic development during the 2009-2010 legislative session, Sánchez filed an amendment included in the enacted legislation that encourages the Massachusetts Office of Business Development (MOBD) to partner with statewide organizations. The purpose of this amendment is to establish an economic framework which transcends administrations, as well as ensure that we (MOBD) have a consistent and experienced partner to help provide core economic development services.
This legislation implements strategically-focused economic development policies that will promote job retention and creation throughout the entire Commonwealth and within the targeted sectors in which Massachusetts can be competitive. All segments of the workforce will be enabled to grow in a coordinated and concentrated manner. Redundancy and waste in the economic development activities funded by the government will be eliminated and the entities conducting those activities will be held responsible for delivering results. It is important in this economy, and as the Commonwealth competes against other states for companies and jobs, that we create a business-friendly environment that will stimulate job growth and improve the ease with which Massachusetts businesses can operate in the markets they serve.
Water Infrastructure Finance Commission
The Commonwealth and its municipalities face a water and wastewater crisis created by antiquated infrastructure and a failure to properly invest in maintaining existing infrastructure. A significant amount of money is needed over the next two decades to repair this archaic infrastructure to prevent crises, maintain existing services, and allow for growth within the Commonwealth.
To address this concern, Sánchez sponsored a bill passed into law during the 2010 fiscal year supplemental budget that created the Massachusetts Water Infrastructure Finance Commission. The commission is charged with evaluating the public health and public safety issues associated with water and wastewater infrastructure in the Commonwealth and recommending possible avenues towards increasing the investment in this important infrastructure—overall, it serves to develop a comprehensive, long-range water infrastructure finance plan for the state and its municipalities.
It is vital for the continued economic growth of the Commonwealth that we determine our future water and wastewater needs, as well as mechanisms to pay for such improvements. We simply cannot grow, projects cannot be built, and jobs cannot be created without access to clean water.
Restaurant Rejuvenation
As part of the budget for the 2011 fiscal year, Sánchez joined his fellow colleagues in adopting an amendment signed into law that will allow restaurants to serve alcohol starting at 10 a.m. on Sunday. Prior to this measure, restaurants were prohibited from serving alcohol until noon on Sunday.
This provision will increase business for restaurants and provide a boost to our economy in these uncertain fiscal times. It also promises to save and create jobs in the restaurant industry while encouraging economic activity needed to develop the Massachusetts economy. This is a simple change to the current provision on restaurant alcohol sales that will impact our state’s employment rate and restaurant industry.
Taxes
Cigarette Tax
In 2008, the state passed a cigarette tax increase by $1 per pack of 20 cigarettes and $1.25 per pack of 25 cigarettes, bringing the tax to $2.51 for a pack of 20 cigarettes and $3.14 for a pack of 25 cigarettes. This tax increase helps offset the costs of the Commonwealth’s health insurance law, with partial revenue earmarked for health care reform and tobacco cessation programs. This tax improves both the physical and financial health of the state by addressing tobacco cessation and the state of our economy. Since passage, the amount of tax collected has increased while the sale of cigarettes has decreased.
Sales Tax
As part of the 2010 fiscal year budget debate, a 25 percent sales tax increase went into effect. The sales tax (6.25 percent) also applies to alcohol but does not apply to food and clothing. In addition, cities and towns are given the option to raise money from local (optional) taxes on meals and hotels to avoid steeper budget cuts. Since passage, the local option meals tax has delivered $11.31 million in revenue to the 78 cities and towns that have adopted this tax.
Small Business
As the backbone of his community and being the hardest hit in this economy, Sánchez has supported small businesses throughout his career.
Small Business Health Insurance
During the 2009-2010 legislative session, Sánchez supported a new plan launched by the Massachusetts Health Connector that helps small businesses control rising premiums of employee health insurance—an increasing concern for employers. Businesses with 50 or fewer employees can apply for Business Express, a plan that relieves such business owners of membership fees and has reduced administrative costs. Businesses with five or fewer employees may experience health care cost savings of more than $300 per employee per year, and some select network plans may offer reductions ranging from 10 to 15 percent. Employers can select from a full array of options offered by major carriers whose plans have been recognized by the Health Connector for their quality and value.
Miscellaneous Business Legislation
Standards for Protection of Personal Information of Commonwealth Residents
To safeguard personal information provided to businesses, Sánchez supported a regulation this recent legislative session requiring Massachusetts businesses to meet industry standards for office and computer management (201 CMR 17.00, Standards for Protection of Personal Information of Residents of the Commonwealth).
This regulation makes an organization legally responsible to protect both paper and electronic personal information entrusted within the organization, including social security numbers, credit card numbers, and other financial account numbers. Minimum standards must be met to insure the security and confidentiality of customer information—standards that protect consumers against unauthorized access to or use of information that may result in substantial harm or inconvenience. Furthermore, a business becomes less vulnerable to crime and less of a target for embezzlement and insider theft.