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Governor makes veto sought by coalition of nonprofits

The Providers' Council is pleased to announce that the recent economic development bill signed by Gov. Charlie Baker did not include a section that could have had a chilling effect on the state's many nonprofits.

Before signing House Bill 4569, An Act Relative to Job Creation and Workforce Development, Gov. Baker vetoed Section 36 of the legislation that would have created Community Benefit Districts across the state.

The Providers' Council and a contingent of 13 other nonprofit partners, representing organizations across the Commonwealth, sent a letter urging Gov. Baker to veto this section. The letter was copied to Secretaries Marylou Sudders (EOHHS), Kristen Lepore (Administration and Finance) and Jay Ash (Housing and Economic Development).

The Council's primary concern was that the proposed Community Benefit Districts could, in effect, divert scarce service dollars from community-based nonprofit human services programs, resulting in fewer services being provided to our most vulnerable residents. As written, the proposal could have imposed fees on tax-exempt nonprofits without their consent. The Council believes the proposal had the potential to target nonprofits in a way that directly contradicted - and circumvented - existing state and federal laws that exempt these organizations from paying local property taxes.

The Providers' Council thanks Governor Baker for vetoing Section 36 of House Bill 4569 that could have been damaging - not only to nonprofits in the Commonwealth, but also to those individuals for whom nonprofits provide essential care.

The Providers’ Council will continue to oppose any efforts that would create taxes, fees or payments in lieu of taxes for our membership and the nonprofit sector. If you have questions about these efforts, please contact Bill Yelenak.