Representative Mark Falzone announced passage by the Massachusetts House of Representatives of legislation that paves the way for Massachusetts to receive up to $8.7 billion in federal stimulus money from the American Recovery and Reinvestment Act (ARRA) of 2009. This federal act provides states such as Massachusetts with funding for numerous programs and projects, including infrastructure projects designed to create jobs and spur economic growth. The enactment of the complementary state legislation will help Massachusetts streamline this federal funding, so that it is more efficiently available on a timely basis to create jobs and meet the urgent needs of the municipalities of the Commonwealth.

Representative Mark Falzone stated, “I am encouraged by the detail and scope of this legislation. It not only guarantees that the cities and towns of Massachusetts will receive stimulus money from ARRA, but it also will create a significant number of jobs so important to our citizens at this time of economic crisis. These two interwoven aspects of our Massachusetts Legislation will ensure that our Commonwealth takes full advantage of the timely boost from federal stimulus money to the jobs, local assistance and economic growth that we need for our community.”

Specific provisions in the legislation include the following:

• Authorize the Massachusetts Water Pollution Abatement Trust to charge less than the current statutory 2% interest rate for loans or other financial assistance that it provides from the state’s revolving fund. This change is required to make the state eligible for $186 million in ARRA-funded clean water and drinking water grants.
• Extend from 18 weeks to 26 weeks the permissible time period to receive unemployment benefits while participating in a training program. This change is required to make the state eligible for approximately $108 million in ARRA unemployment insurance funds.
• Amend the provisions of our procurement laws for projects which receive any federal stimulus funds and establishes further accounting procedures to distribute and track stimulus dollars. These changes will only apply to ARRA-funded projects.
• Update and expedite certain state procurement procedures to maximize the state’s ability to comply with ARRA’s deadlines and capture all available funding.
• Establish accounting and reporting processes for ARRA funds and projects to clarify procedures, promote administrative efficiencies and ensure transparency.
• Clarify that any state positions created in connection with ARRA-funded programs or projects shall be paid only out of ARRA funds and shall be eliminated once federal funding ends.
• Create technical assistance and bond guarantee programs to ensure that all businesses can participate in and benefit from ARRA-funded opportunities, including small businesses and minority and women-owned businesses.

The legislation was the product of a partnership between leaders in industry, labor and government; members of these groups worked together to develop a set of legislative recommendations to meet federal deadlines and requirements.

“People in our state are hurting right now. I am proud that House members acted with both haste and consideration on behalf of our constituents,” Speaker DeLeo said. “Most importantly, these stimulus funds mean jobs for our residents.”