EMPLOYEE–OWNERSHIP REVOLVING LOAN FUND

M.G.L. pt. Part I, tit. Title II, ch. c. 23D

in effect

M.G.L. c. 23D, § 1 Definitions

c. 23D, § 1. Definitions Section 1. As used in this chapter the following words shall, unless the context requires otherwise, have the following meanings: ''Applicant'', any legal entity, or person seeking assistance pursuant to this chapter for an employee involvement or employee ownership project, or, as used in section twenty-four, an educational institution which has made application for a grant-in-aid as authorized by section twenty-four. ''Area labor-management committee'', a committee composed of representatives from management, labor and private concerned citizens from a particular geographic area or industry; provided, however, that management representatives shall be selected by management and labor representatives shall be selected by labor. ''Board'', board of trustees of the economic stabilization trust. ''Business'', any individual, firm, corporation, partnership, trust or other legal entity with its principal office, plant, or facility in the commonwealth and engaged in manufacturing, research and development, or the provision of goods and services. ''Business and industry'', a private corporation, institution, firm or person or group or association of the same, concerned with commerce, trades, manufacturing or the provision of services within the commonwealth, or a public or nonprofit hospital licensed by the department of public health. ''Commission'', the commission on employee involvement and ownership established in section two hundred and four of chapter six. ''Director'', or ''Executive Director'', the executive director of the industrial service program. ''Educational institution'', a public secondary or post-secondary institution, proprietary trade, business, vocational, technical, professional or correspondence school licensed by the department of education under the provision of chapters seventy-five C, seventy-five D, and ninety-three, or an independent nonprofit institution within the commonwealth authorized by law to provide a program of skills training or education beyond the secondary school level. ''Employee'', any person employed for hire by an employer in any lawful employment; provided, however, that employees shall be designated as managerial employees if they participate to a substantial degree in formulating or determining policy. ''Employee involvement'', the involvement of both employees and managers in decisions affecting their work; provided, however, that where a certified collective bargaining agent represents said employees such involvement of said employees shall be with the agreement of said agent. ''Employee organization'', any lawful association, organization, federation, council, or labor union, the membership of which includes public or private employees, and assists its members to improve their wages, hours, and conditions of employment. ''Employee-owned business'', a corporation organized and operated pursuant to chapter one hundred and fifty-seven A, or by a partnership consisting of at least three persons which is owned and controlled by the partners on a cooperative basis whereby the partners vote on partnership matters on a one-person, one-vote basis and the ratio of partners to nonpartner employees is no less than one to one, or a business, the ownership of which is represented by shares and the governing body of which is elected by holders of shares in which more than fifty percent of the class of voting shares having the greatest combination voting power and dividend rights and more than fifty percent of all other classes of shares are owned by (1) not less than seventy percent of the employees of such business, (2) an employee-stock ownership plan maintained by such business, or (3) a combination of the foregoing, subject to the following: (i) shares of any class owned by an employee who owns more than fifteen percent of such class shall be treated as owned by someone other than said employee. For purposes of determining whether a person owns more than fifteen percent of a class, shares owned by the person's spouse, children or parents shall be treated as owned by said person. (ii) voting shares owned by an employee stock ownership plan shall be taken into account only to the extent that the employee stock ownership plan passes the vote with respect to all shares held in trust through to employees. ''Employee ownership'', employees having an ownership interest in the business where they work. ''Employee-ownership project'', a plan, arrangement or transaction under which (a) a business would become an employee-owned business within a period of not more than five years, or (b) an employee-owned business would be established. ''Employee stock ownership plan'', an employee stock ownership plan within the meaning of 26 USC section 4975(e)(7), including, where the context so indicates, the trust maintained under such a plan. ''Employer'', includes any person acting in the interest of an employer directly or indirectly. ''Equipment'', tangible personal property which will further the objectives of the supported program and for which a definite value and evidence in support thereof have been provided by the donor. ''Financing agreement'', a legal agreement between the economic stabilization trust and a business or person which details the terms and conditions upon which the trust has loaned to, invested in, or otherwise financed said business or person. ''Financial support'', any thing of value contributed by business and industry to an educational institution which is reasonably calculated to support directly the development and expansion of a particular program as defined herein and which represents an addition to any financial support previously or customarily provided to such educational institutions by the donor, including, but not limited to: funds, equipment as provided in this chapter, facilities, faculty, and scholarships for matriculating students and trainees. ''Grant-in-Aid,'' funding that is provided to an educational institution by the industrial service program for the development or significant expansion of a program as provided in this chapter. ''Person'', any individual or individuals, firm, corporation, partnership, trust or other legal entity which seeks to purchase a business or the plant, facilities or assets of a business in the commonwealth or to institute or implement an employee-ownership project. ''Program'' or ''Program of skills training or education consistent with employment need'', the industrial service program, or, as used in sections twenty-four and twenty-four A, a coordinated course of instruction which is designed to prepare individuals upon completion for employment in a specific trade, occupation or profession. Such instruction may include: (a) classroom instruction; (b) classroom related field, shop, factory, office and laboratory work; and (c) entry level training, job upgrading, retraining and advance training. ''Severe economic dislocation'', a permanent discontinuance of operations or reduction in force by an employer or by a number of employers located within a city or town of the commonwealth, whether caused by economic conditions, natural catastrophe or otherwise, which results in the permanent loss of employment of seventy-five or more employees who are residents of the commonwealth. In the case of a public employer, severe economic dislocation shall include the loss of employment of fifty or more employees due to economic conditions resulting from the operation of chapter five hundred and eighty of the acts of nineteen hundred and eighty. ''Targeted individuals'', residents of the commonwealth who become unemployed as a result of a severe economic dislocation, and individuals receiving public assistance from the commonwealth, including recipients of aid to families with dependent children, and individuals between the ages of sixteen and twenty-one inclusive, who are unemployed and economically disadvantaged residents of urban areas of the commonwealth. ''Technical assistance'', professional and any other assistance provided by business and industry to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program as defined herein and which represents an addition to any technical assistance previously or customarily provided to such educational institutions by the donor. ''Trustees'', the trustees of the economic stabilization trust. ''Trust'', the economic stabilization trust. ''Voting power'', the power of shares, relative to other shares in the business, to elect at least a majority of the members of the governing body of a business.

M.G.L. c. 23D, § 1A Declaration of need for employment skills training and education; findings

c. 23D, § 1A. Declaration of need for employment skills training and education; findings Section 1A. It is hereby found and declared that: There exists in the commonwealth a critical shortage of training and education programs necessary to meet the growing needs of business and industry for skilled employees and the corresponding needs of our people for opportunities for new or more rewarding employment. As a result of this shortage, business and industry is unable to obtain sufficient numbers of qualified employees for continued operation and expansion within the commonwealth, of our people, particularly those who are victims of economic dislocation, and those minority and economically disadvantaged groups, are denied significant and substantial employment opportunities. The loss of economic and employment activity from the commonwealth contributes to a decline in the tax base, leads to unemployment and underemployment of our people, causes an increase in welfare and unemployment costs, and constitutes a threat to the general welfare of the entire commonwealth. This shortage is occasioned by the inability of educational institutions to secure the resources necessary for the development and substantial expansion of programs of skills training and education which are consistent with employment need; Business and industry is the primary source of employment information, technical assistance and financial support required for such program development and expansion; Business and industry supports educational institutions, through increased and more comprehensive relationships of cooperation and assistance, is necessary to enable educational institutions to meet the needs of business and industry for skilled employees and the needs of our people for new or more rewarding employment opportunities; Educational institutions are unable to attract sufficient support from business and industry within the limits of their existing resources and through the normal operation of the private enterprise system. It is an important function of government to increase opportunities for gainful employment, to assist in promoting a productive and expanding economy, to encourage the flow of business and industry support to educational institutions, and otherwise to improve the prosperity and general welfare of the inhabitants of the commonwealth. Therefore, it is found that it is in the public interest of the commonwealth to promote the prosperity and general welfare of its citizens, a public purpose for which public money may be expended, to encourage and facilitate the formation of comprehensive cooperative relationships between business and industry and educational institutions which provide for the development and significant expansion of programs of skills training and education consistent with employment needs, and to make interested individuals aware of the employment opportunities presented thereby.

M.G.L. c. 23D, § 2 Industrial service program; rules; procedures

c. 23D, § 2. Industrial service program; rules; procedures Section 2. A Massachusetts industrial service program shall be established in the executive office of economic development, under the joint supervision of the director of business and technology, the director of the department of labor, and the director of workforce development. The secretary, in consultation with the director of business and technology, the director of labor, and the director of workforce development, shall issue rules, regulations and procedures governing the application for and delivery of the services provided for in this section and sections 3 to 7, inclusive, and sections 24 to 26, inclusive, as necessary to carry out this chapter.

M.G.L. c. 23D, § 3 Executive director; employees; utilization of other agencies' resources

c. 23D, § 3. Executive director; employees; utilization of other agencies' resources Section 3. Subject to appropriation, the secretary of economic development and the secretary of labor and workforce development shall hire an executive director and such other employees as they may from time to time find necessary for the proper performance of the duties of the program; provided, however, that in the hiring of the executive secretary said secretary of economic development and the secretary of labor and workforce development shall consult with the board of trustees of the economic stabilization fund. At least one such employee shall be hired for the purpose of packaging and reviewing applications for financing by the economic stabilization fund, as provided in section thirteen, and the board of said fund shall have the right to approve the hiring of any persons for this purpose. The executive director shall be the executive and administrative head of the program and shall be responsible for administering and enforcing the provisions of law relative to the program. The executive director may utilize the offices staff and resources of any other agency of the executive branch, including without limitation the executive office of economic development, the executive office of labor and workforce development, or any agency or quasi-public agency within said executive offices, and such voluntary and uncompensated services as may from time to time be necessary for the proper performance of the duties and purposes of the program.

M.G.L. c. 23D, § 4 Program duties

c. 23D, § 4. Program duties Section 4. The powers and duties of the Massachusetts industrial service program shall include but not be limited to: (a) assisting, upon the request of a private business, in alleviating, adverse conditions which threaten to cause a large loss of employment, plant closure, or failure by said private business including, but not limited to, site specific problems, loss of markets, out-moded production technologies, poor management, and changes in ownership; (b) where a large loss of employment, plant closure or business failure is unavoidable, assisting efforts to secure alternative employment and retraining opportunities for displaced workers, including, but not limited to, co-ordinating the delivery of available state and federal resources and services; (c) assisting, upon the request of local communities affected by major plant closures, employment losses or business failures, in finding new uses for idled plants or facilities and in fostering long term economic vitality, industrial growth and job creation, in such communities; (d) overseeing an early warning system to identify industries and businesses likely to experience large losses in employment or plant closures by collecting and analyzing information which may include, but not be limited to: products and markets experiencing declining growth rates, companies and industries subject to competition from production in low wage counties, changes in ownership, layoff and employment patterns, payments of unemployment compensation contributions, and state tax payments; (e) cooperating with all other state, federal, and local agencies, departments, and commissions, as is necessary to carry out its duties and purposes; (f) implementing the advice and recommendations of the industrial advisory board relative to improving the performance of its duties and purposes; (g) with the advice of the advisory council created in section seventy-eight of chapter six A, establishing and administering a comprehensive job placement and reemployment training program for employees of hospitals and other health care facilities whose employment has been or is likely to be terminated as a result of the closure or conversion of the employing hospital or health care facility; (h) promoting employee involvement and ownership projects as described in sections seventeen to twenty-four, inclusive; (i) entering into agreements or transactions with any federal, state or municipal agency or other institutions; (j) accepting any and all donations, grants, bequests, and devises, conditional or otherwise, of money, property, service, or other things of value which may be received from the United States or any agency thereof, any governmental agency, any institution, person, firm or corporation, public and private, to be held, used or applied for any or all the purposes specified in this act, in accordance with the terms and conditions of any such grant. Receipt of each such donation or grant shall be detailed in the annual report of the corporation. Such report shall include the identity of the donor or lender, the nature of the transaction and any conditions attaching thereto; (k) collecting and disseminating to interested individuals, in cooperation with and through any agencies of federal, state and municipal government, information concerning areas of present and projected employment need, programs of skills training and education consistent therewith and any other relevant information; (l) providing grants-in-aid to educational institutions to encourage and facilitate the formation of comprehensive cooperative relationships with business and industry which secure for such institutions the information, technical assistance and financial support necessary for the development and significant expansion of programs of skills training and education consistent with employment need; (m) preparing, publishing and distributing, with or without charge as the director may determine, such technical studies, reports, bulletins and other materials as it deems appropriate; (n) organizing, conducting, sponsoring or cooperating in and assisting the conduct of special institutes, conferences, demonstrations, international education programs for students in kindergarten and at the primary and secondary levels, and studies which increase communications and cooperation among agencies of federal, state, and municipal government, and all interested institutions, persons, firms, or corporations, public or private concerned with business and industry, economic development, public assistance, employment, skills training and education; (o) establishing a technology extension service program to provide technical information service and technical assistance to existing Massachusetts companies, especially manufacturers, in the following areas: (1) technology investment and modernization; (2) market identification and technology management; (3) materials usage and planning; (4) business management and maximization of the firms productivity; and (5) strategies for work force development and quality. The Bay State Center for Applied Technology located within the program shall conduct outreach to designated industrial sectors to select and encourage companies to seek the assistance of the technology extension service program. Said outreach shall be coordinated with the Massachusetts Small Business Development Center or local development offices. The technology extension service program shall be partially funded through a fee-for-service program, the cost of which to private-sector firms shall be determined by the following formula: (1) firms in Phase I of said program, a thirty percent share of the total costs; and (2) firms in Phase II of said program, a fifty percent share of the total costs. For the purposes of this clause, the term ''Phase I'' shall mean the first three visits to the technology extension service by a private sector firm and the term ''Phase II'' shall mean the fourth and subsequent visits to the technology extension service by a private sector firm; and (p) doing any and all things necessary or convenient to carry out the purposes of this chapter, to the extent consistent with law.

M.G.L. c. 23D, § 5 Private consultants; contracts

c. 23D, § 5. Private consultants; contracts Section 5. In performing the duties pursuant to clause (a) of section four the director may contract with private consultants either for the purpose of assessing the viability of a business likely to experience a large loss of employment, plant closure, or failure, and developing an adjustment strategy to keep the business viable and maintain employment, or for the purpose of securing new ownership or new management or both necessary to keep the business in operation as a viable business and maintain employment; provided, however, that before contracting for such services, the director shall determine: (a) that business is unable to pay for these services; and (b) the director cannot obtain such services of sufficient quality and with sufficient speed from an existing state agency, department, office or quasi public corporation to properly perform said duties. To perform the duties pursuant to clause (h) of section four, a technical assistance fund is hereby established to be used by the director to contract with private consultants solely for the purposes of assessing the feasibility of converting an existing business to an employee-owned business or for assessing the feasibility of establishing a start-up employee-owned business, and for providing other technical assistance to employee-owned businesses and employee-ownership projects including, but not limited to, legal assistance, marketing assistance and educational services; provided, however, that before contracting for such services, the director shall determine that: (a) the employee-owned business or employee-ownership project is unable to pay for such services; (b) such services cannot be obtained of sufficient quality and with sufficient speed from an existing state agency, department, office or quasi-public corporation to properly perform said duties; and (c) the employee-owned business or employee-ownership project agrees to repay the program for the cost of the technical assistance provided the feasibility assessment is positive, based on terms and conditions established by the director.

M.G.L. c. 23D, § 6 Sale of business; notice to employees; assistance for buyers

c. 23D, § 6. Sale of business; notice to employees; assistance for buyers Section 6. In any case where the program, pursuant to clause (a) of section four is assisting a business to locate new owners, the office shall give priority to effectuating the sale of said business either to its employees or to a resident of Massachusetts. In such cases, the director shall inform the employees that the business is for sale, inform the employees of their opportunity to purchase the business, and provide the employees with the same assistance in purchasing said business for which other interested buyers may be eligible.

M.G.L. c. 23D, § 7 Documentary materials, data or conversations regarding business operations; public records

c. 23D, § 7. Documentary materials, data or conversations regarding business operations; public records Section 7. Any documentary materials, data, or conversations whatsoever made or received by any employee of the program and consisting of, or to the extent that such materials, data, or conversations consist of, trade secrets or commercial or financial information regarding the operation of any business conducted by an applicant for assistance which the program is empowered to render or regarding the competitive position of such applicant in a particular field of endeavor, shall not be deemed public records of the program and specifically shall not be subject to the provisions of section ten of chapter sixty-six.

M.G.L. c. 23D, § 16 Employee-Ownership Revolving Loan Fund

c. 23D, § 16. Employee-Ownership Revolving Loan Fund [ First paragraph effective until August 5, 2025. For text effective August 5, 2025, see below.] Section 16. There shall be established within the Massachusetts Growth Capital Corporation a separate fund to be known as the Employee-Ownership Revolving Loan Fund, the proceeds of which shall be used to provide low interest long term loans to individuals for the purchase of such individual's ownership interest in an employee-owned business. The fund shall consist of all monies designated for that fund by the board of directors of the Massachusetts Development Finance Agency, in consultation with the director of the Massachusetts center for employee ownership. [ First paragraph as amended by 2025, 14, Sec. 9 effective August 5, 2025. For text effective until August 5, 2025, see above.] There shall be established within the Massachusetts Development Finance Agency a separate fund to be known as the Employee-Ownership Revolving Loan Fund, the proceeds of which shall be used to provide low interest long term loans to individuals for the purchase of such individual's ownership interest in an employee-owned business. The fund shall consist of all monies designated for that fund by the board of directors of the Massachusetts Development Finance Agency, in consultation with the director of the Massachusetts center for employee ownership. Said board shall administer the employee-ownership revolving loan fund program. The application process and the terms and conditions of approving such loans shall be determined by the board in consultation with the director. Said fund shall be subject to the reporting and auditing requirements of section 56 of chapter 23A.

M.G.L. c. 23D, § 17 Center for employee ownership; purpose; powers and duties of director

c. 23D, § 17. Center for employee ownership; purpose; powers and duties of director Section 17. (a) There is hereby established a Massachusetts center for employee ownership within the Massachusetts office of business development established pursuant to section 1 of chapter 23A. The Massachusetts center for employee ownership shall provide education, conduct outreach and promote efforts to create an overall environment in the commonwealth to: (i) expand and enhance employee ownership; (ii) increase the number of employee-owned companies; (iii) publicize and promote the benefits of employee involvement and ownership to policy makers and the general public; (iv) encourage collaborative outreach efforts regarding involvement and ownership in the workplace; (v) research and evaluate employee involvement and employee ownership in the commonwealth; (vi) showcase employee ownership initiatives in the commonwealth; (vii) facilitate and coordinate the sharing of existing information and resources; and (viii) provide grants pursuant to this chapter. (b)(1) The director of the Massachusetts center for employee ownership shall have the power to hire staff, appoint any specific committee or task force and contract with consultants, agents or advisors deemed necessary to further the purposes of this section. (2) The director may accept gifts or grants of money or property from any source to further the work of the center; provided, however, that any money received shall be deposited with the state treasurer to be kept in a separate fund in the treasury to be named the Massachusetts Center for Employee Ownership Fund dedicated to the center and for expenditure without appropriation by the director of the center in accordance with the conditions of such a gift or grant. Amounts remaining in the fund at the end of a fiscal year shall not revert to the General Fund and shall be available for expenditure in subsequent fiscal years. (3) The director shall issue rules, regulations and procedures governing the application for and delivery of services which are deemed necessary for the proper performance of the duties of the center. (4) Annually, the director shall file a report with the clerks of the house of representatives and senate, including an inventory of employee-owned businesses in the state and the specific activities taken by the center to support and promote the transition of traditionally structured companies to an employee ownership model. (5) The director shall be a full-time employee of the Massachusetts office of business development and shall be appointed by and report directly to the director of the Massachusetts office of business development.

M.G.L. c. 23D, § 18 Duties; research and evaluation

c. 23D, § 18. Duties; research and evaluation Section 18. (a) The duties of the program of employee involvement and ownership shall be consistent with the provisions of section seventeen and shall include, but not be limited to: (1) promotion of employee involvement and employee ownership; (2) coordination with other available state programs, including the executive offices of manpower affairs and labor; (3) education of state agency personnel who advise or provide assistance to businesses, individuals, public sector entities, and employee organizations about the implications of employee involvement and employee ownership for their agency's programs or services, including but not limited to training, assisting with staff development seminars, and facilitating the coordination of state agency resources; (4) development of education programs, including, but not limited to, convening an annual conference with industry, government and labor participation to promote and discuss employee involvement and ownership in the commonwealth and elsewhere; (5) provision of research and evaluation of public and private employee involvement as well as employee ownership including but not limited to conducting a survey of employee participation and management practices in the public and private sector; (6) cooperation with all other state, federal and local agencies, departments and commissions, as is necessary, to carry out its duties and purposes; (7) implementation of the advice and recommendation of the commission relative to improving the performance of its duties and purposes; (8) creation of referral services including, but not limited to, a ''loaned'' executive and union leader program; (9) assistance to private business through the provision of diagnostic resource and referral services in exploring the feasibility of establishing employee involvement programs; (10) provision of grants to state agencies, the majority of whose employees are not subject to the provisions of chapter one hundred and fifty E, authorities of the commonwealth and the board of regents of higher education for employee involvement start-up efforts; (11) provision of grants to regional and municipal authorities, cities and towns including the public school systems, regional school districts and independent vocational schools for employee involvement start-up efforts; (12) review of private enterprises and businesses doing business with the commonwealth which have more than one hundred employees to assess their employee involvement efforts and compilation of a list of employee-owned firms which might provide products and services to the commonwealth; (13) promotion of the creation, training and funding of area labor-management committees, including the provision of grants to said area labor-management committees; (14) development and issuance of procedures concerning the administration of the duties of the program of employee involvement and ownership consistent with the purposes of this chapter. (b) The program of employee involvement and ownership shall perform research and evaluation concerning employee involvement and employee ownership efforts. The purpose of said research and evaluation shall be to: (1) aid the employee involvement and ownership programs in the commonwealth in becoming more effective by learning through research and feedback of the information to the participants of such programs. Said research and evaluation shall involve program participants in the design survey instruments and feedback methods of such evaluation; (2) assess and evaluate each project funded by said program to determine whether or not such project is meeting its own goals and the goals of this chapter; and (3) provide information to the commission, the governor and the public so that informed decisions may be made about employee involvement and employee ownership in meeting the needs of the commonwealth. A summary of such research and evaluation concerning employee involvement and ownership efforts shall be regularly published.

M.G.L. c. 23D, § 19 Start-up programs; requests for grants; memoranda of understanding

c. 23D, § 19. Start-up programs; requests for grants; memoranda of understanding Section 19. The director may promote and accept requests for grants for start-up employee involvement programs in state agencies, the majority of whose employees are not subject to the provisions of chapter one hundred and fifty E, authorities of the commonwealth, the Massachusetts board of regents of higher education or any institution under its authority, regional and municipal authorities, cities, towns, regional school districts and independent vocational schools. The school committee of a city or town may request such grants for the public school system under its control. Any such grant to cities and towns for such public school systems shall be deposited with the treasurer of such city or town to be expended by the school committee without further appropriation. Such grant requests shall include, but not be limited to, an approved statement of purpose and an implementation plan to which participating labor and employer representatives have committed themselves in writing. Said grants shall be on a matching basis with said participating state agency, the majority of whose employees are not subject to the provisions of chapter one hundred and fifty E, authority of the commonwealth, Massachusetts board of regents of higher education, city, town, regional school district or independent vocational school funding. Said grants shall be used for, but not be limited to, training managers, union leadership and employees in employee involvement strategies and methods. Said director is authorized to enter into memoranda of understanding with the state agencies including, but not limited to, the office of employee relations, the human resources division within the executive office for administration and finance and the board of conciliation and arbitration, which are already actively involved in coordinating the commonwealth's employee involvement program. Such memoranda of understanding shall include, but not be limited to, joint sponsorship of conferences, workshops, and education and outreach materials. Said director shall develop memoranda of understanding with state agencies which are or might be involved with employee ownership, including agencies of the commonwealth which are involved with providing capital sources.

M.G.L. c. 23D, § 21 Collective bargaining agents; consent

c. 23D, § 21. Collective bargaining agents; consent Section 21. No applicant shall receive assistance or funding from the program of employee involvement and ownership without the written consent and participation of any collective bargaining agent for the employees of the applicant's employer and, where said employees are not represented by any collective bargaining agent, without the written consent and agreement of the employer as determined by said program. The new owners of an employee-owned business that receive funds through the program of employee involvement and ownership or the economic stabilization trust, pursuant to this chapter, shall recognize that a condition of the receipt of any assistance including, but not limited to, a feasibility study, loan, financing or investment from said economic stabilization trust or program is the requirement that the new owners of said business shall retain and continue to recognize any duly certified collective bargaining agent and shall assume any existing contracts or other current agreement with employees, related to terms and conditions of work until the date of expiration of such contract or agreement.

M.G.L. c. 23D, § 22 Area labor-management committees

c. 23D, § 22. Area labor-management committees Section 22. The program of employee involvement and ownership shall promote the creation of area labor-management committees and assist said committees in promoting employee involvement and ownership activities in manufacturing, service, and technical industries as well as in the public sector. Said program may award grants to area labor-management committees on a competitive basis, promote the interaction of business and labor leaders in initiating employee involvement efforts, and perform other related matters. Any area labor-management committees receiving such grants shall provide educational programs and outreach relating to employment involvement activities. Said program shall provide technical support to said area labor-management committees, including staff training, public relations, developing educational materials and coordinating joint area labor-management committees' activities.

M.G.L. c. 23D, § 23 Retaliation for participation or nonparticipation

c. 23D, § 23. Retaliation for participation or nonparticipation Section 23. No employee shall be disciplined, suspended, terminated, retaliated against or otherwise affected because of the employee's participation or nonparticipation in any employee involvement or employee ownership project or program or activity related to such project or program.

M.G.L. c. 23D, § 24 Grants-in-aid; application; approval

c. 23D, § 24. Grants-in-aid; application; approval Section 24. The industrial service program may, subject to appropriation or from funds made available from any other public or private source and pursuant to rules and regulations adopted pursuant to section two, provide grants-in-aid to educational institutions, not in excess of two hundred thousand dollars per grant-in-aid; provided, however, that such grants-in-aid shall be used exclusively for programs which are consistent with the provisions of this chapter; and provided, further, that the program shall make a grant-in-aid to a particular educational institution only after: (a) receipt of an application from the educational institution which contains a proposal for a program of skills training and education, including a description of the program, the type of skills training or education to be provided, a statement of the total cost of the program and a breakdown of the costs associated with equipment, personnel, facilities and materials, a statement of the employment needs for the program and evidence in support thereof, a statement of the technical assistance and financial support for the program received or to be received from business and industry, and such other information as the board shall request; and (b) approval of the grant-in-aid by the director, provided that the director shall find, based upon the application submitted by the educational institution and such additional investigation as the staff of the program shall make, and incorporate in a written determination, that: (1) the program is within the scope of this chapter and may reasonably be expected to succeed and thereby increase employment within the commonwealth; (2) the grant-in-aid will only be used to cover the costs directly associated with the program; (3) the program involves an area of skills training and education concerning which there is a demonstrable need by business and industry within the commonwealth; (4) the applicant has made provisions for the utilization of existing federal and state resources for student financial assistance; (5) the grant-in-aid is essential to the success of the program as the resources of the applicant are inadequate to attract the technical assistance and financial support necessary for the program from business and industry; (6) the applicant has obtained from business and industry a firm commitment for that information, technical assistance and financial support which, together with the requested grant-in-aid, the resources of the applicant, and support from any other source, is sufficient to ensure the probable success of the program. In addition, the commitment of financial support from business and industry shall be equal to or greater than the amount of the requested grant-in-aid except that the director may waive the requirement for such matching financial support upon finding that the program funded by the grant-in-aid will materially increase the employment opportunities for targeted individuals and that the businesses and industries participating in the program have agreed to contribute personnel, facilities, equipment, supplies, stipends or other items of financial value to the program in an amount approved by the director; (7) binding commitments have been made to the industrial service program by the applicant for adequate reporting of information and data regarding the program to the director, particularly information concerning the recruitment and employment of trainees and students, and including a requirement for an annual or other periodic audit of the books of the applicant directly related to the program, and for such control on the part of the industrial service program as the director shall consider prudent over the management of the program, so as to protect the use of public funds, including, in the discretion of the director and without limitation, right of access to financial and other records of the applicant directly related to the programs; (8) adequate provision has been made by the applicant for the active recruitment for participation in the program of those who are the victims of economic dislocation and those of minority and economically disadvantaged groups, particularly recipients of public assistance; (9) binding commitments have been made to the industrial service program by the applicant for compliance with the monitoring and evaluation rules and regulations of the program. Such findings by the industrial service program and the director thereof shall be conclusive.

M.G.L. c. 23D, § 25 Notification to department of transitional assistance and department of labor and workforce development

c. 23D, § 25. Notification to department of transitional assistance and department of labor and workforce development Section 25. Upon approval of a grant-in-aid application by the director, the program shall immediately provide notification of its decision to the department of transitional assistance and the department of labor and workforce development. Such notification shall include the following information regarding the supported program: the trade, occupation or profession with which the program is concerned; a description of the curriculum, the requirements for participation, and the procedures for making application; the duration of the program; a description of support services available to participants in the program; and any other information relevant to encouraging and facilitating the participation in the program of those in economic need.

M.G.L. c. 23D, § 26 Definition of displaced homemaker

c. 23D, § 26. Definition of displaced homemaker Section 26. As used in sections twenty-seven to twenty-nine, inclusive, the following term shall have the following meaning:— ''Displaced homemaker'', an individual who has worked in the home for a substantial number of years providing unpaid household services for family members, has had, or would have, difficulty in securing employment; has been dependent on the income of another family member but is no longer supported by such income, has been dependent on government assistance but is no longer eligible for such aid, or is supported as the parent of minor children by government assistance or spousal child support payments but whose children are within two years of reaching their majority; and is not gainfully employed or is underemployed.

M.G.L. c. 23D, § 27 State-wide advisory council on displaced homemakers

c. 23D, § 27. State-wide advisory council on displaced homemakers Section 27. The director of the industrial service program shall appoint members of a state-wide advisory council on displaced homemakers hereafter referred to as the advisory council established for the purpose of making recommendations relative to the implementation and monitoring of a state-wide plan for displaced homemakers. The advisory council, from time to time, shall suggest to said director new programs for displaced homemakers and report its evaluations of existing displaced homemaker programs, services and activities together with recommendations for any necessary changes for the purpose of assisting said director in coordinating, promoting and establishing a state plan for displaced homemakers. The advisory council shall provide the director with recommendations regarding the funding and emergency assistance of regional multi-purpose service centers; shall provide the director with recommendations regarding the coordination of state, the division of occupational education, the job training partnership act and other available funding. The advisory council shall be composed of representatives from social service agencies, community based organizations, education, business and training agencies. Membership should also include displaced homemakers, ethnic minorities and a geographic distribution. The director or his designee shall be the executive secretary of said advisory council and a non-voting member.

M.G.L. c. 23D, § 28 Multi-purpose service centers

c. 23D, § 28. Multi-purpose service centers Section 28. The director with advice from the displaced homemaker advisory council shall provide for the establishment of not less than five multi-purpose service centers, designed to meet the demographic and geographic needs of the displaced homemaker population. These multi-purpose service centers shall provide services including but not limited to: (1) job counseling services specifically designated for a person seeking employment after a number of years as a homemaker and shall operate to counsel displaced homemakers with respect to appropriate job opportunities including crises intervention, peer support, life skills training such as confidence building, problem solving and decision making; (2) job training referrals, career counseling, job placement services developed by working with government agencies and private employers; training and placement programs for jobs in the public and private sectors; assistance to displaced homemakers in gaining admission to existing public and private job training programs and opportunities; (3) prevocational training and educational services including outreach and information about such other programs which are determined to be of interest and benefit to such displaced homemakers by the advisory council; (4) outreach and information services with respect to government employment, education, health, legal and unemployment assistance programs which the advisory council determines would be of interest and benefit to such displaced homemakers; (5) a clearinghouse providing resource libraries including films and books; area program planning; in-service training for center staff and directories of existing counseling, educational and job training programs. Supervisory, technical and administrative positions relating to multi-purpose service centers established under this act shall, to the extent feasible, be filled by such displaced homemakers.

M.G.L. c. 23D, § 29 Report to governor

c. 23D, § 29. Report to governor Section 29. The director shall report annually to the governor and file a copy thereof with the clerk of the house of representatives and the clerk of the senate and the advisory council on the work of the program. Such report shall include the number of people served at each center, the type of services received, the number of people placed in employment, training and educational programs and follow-up data on such programs, and the cost effectiveness of center programs.

M.G.L. c. 23D, § 30 Industrial service program; manufacturing network grants

c. 23D, § 30. Industrial service program; manufacturing network grants Section 30. (a) As used in this section the following terms shall, unless the context clearly requires otherwise have the following meanings:— ''Manufacturing network'', a group of five or more private sector firms engaged in trade which work cooperatively to improve competitiveness; the network may also include industry associations and universities. ''Trade'', firms that sell their goods or services, into markets for which national or international competition exists. (b) The industrial service program, hereinafter referred to as ''the program,'' shall support the creation and development of manufacturing networks to enhance the quality of Massachusetts manufactured products and improve the national and international competitiveness of Massachusetts manufacturing firms. The program shall provide manufacturing network grants based on criteria established by its director. The program shall not grant, in any fiscal year, more than fifteen percent of funds appropriated for manufacturing networks to any one network. State funds for each network shall be matched in at least an equal amount by the members of the network, provided however that up to seventy-five percent of the matching funds may be in the form of in-kind contributions, which may include personnel and shall be included in the report required by subsection (c). The program shall assist manufacturing networks to: (1) share, develop and finance improvements and innovation in manufacturing technology; (2) improve productivity, including but not limited to, total quality management, statistical quality control and just-in-time production; (3) enhance work force development and employee training; (4) access new export markets; (5) improve work organization and management practices, including but not limited to increasing front-line employee responsibility and participation; (6) convert from military- to civilian-based production; (7) meet environmental standards or regulations; (8) reduce employee health care costs and improve workplace safety; and (9) engage in other related activities. (c) The program shall annually file with the clerks of the senate and the house of representatives on or before January first, a report of its activities in support of manufacturing networks in the commonwealth. Said report shall include, but not be limited to: (1) a financial statement summarizing the corporation activities involving manufacturing networks; (2) the number and types of manufacturers assisted and a description of the assistance provided; and (3) legislative recommendations to enhance the competitiveness of Massachusetts manufacturers. (d) Said program shall work cooperatively with the university of Massachusetts and the department of labor and workforce development.

M.G.L. c. 23D, § 31 Industrial service program annual report on program activities

c. 23D, § 31. Industrial service program annual report on program activities Section 31. The industrial service program shall annually submit a complete and detailed report of the program's activities within ninety days after the end of the fiscal year to the clerk of the house of representatives, the clerk of the senate, and the governor. The annual report shall include, but not be limited to, descriptions of all programs funded, an evaluation of the performance of each program, a summary of the public monies expended, and detailed descriptions of the individuals trained, educated and employed, including, in particular, the number of minority and economically disadvantaged individuals. The report shall include: (a) a description of the activities of the program of employee involvement and ownership; (b) any recommendations to improve the performance of said program; and (c) a description and evaluation of state-wide employee involvement and employee ownership programs undertaken by and in the commonwealth.

M.G.L. c. 23D, § 32 Audits

c. 23D, § 32. Audits Section 32. The books and records of the industrial service program shall be subject to an audit by the state auditor, in accordance with generally accepted government auditing standards, as often as the state auditor determines is necessary.

M.G.L. c. 23D, § 33 Construction of chapter

c. 23D, § 33. Construction of chapter Section 33. This chapter shall be liberally construed to effect its purpose.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter23DFetched: 10/20/2026