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Sales tax holiday signed as part of jobs bill

  • Baker



State House News Service
Friday, August 10, 2018

Gov. Charlie Baker signed most of a $1.15 billion economic development package on Friday afternoon, approving restrictions on the use of non-compete agreements and greenlighting a sales tax holiday for this weekend, but vetoing protections against bad-faith assertions of patent infringement.

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

“Our administration is proud to sign our second economic development bill to provide more opportunities to workers, strengthen Massachusetts’ economy and enhance workforce development programs,” Baker said in a statement. “We are pleased to create a sales tax holiday for 2018, continue the MassWorks program and expand workforce skills training to advance the Commonwealth’s innovation economy.”

Baker’s office had already telegraphed that he would sign the provision of the economic development bill that would authorize a sales tax holiday for this weekend, but the governor also approved 63 of the 71 other outside policy sections in the bill.

Baker used his veto pen on a policy section that would have prohibited a person from making an assertion of patent infringement in bad faith, known as “patent trolling.”

In a letter to lawmakers, Baker said he vetoed the provision “because it creates a new cause of action against patent owners in a manner that is not narrowly tailored and is likely to have unintended consequences for Massachusetts residents, companies and educational institutions.”

Baker said he agrees that the state has a role to play in deterring patent trolling and suggested “that the Legislature should revisit this topic in a future session and draft a more focused solution to this problem.”

Sen. Eric Lesser, who guided the economic development bill through the Senate and was the chief proponent of the patent trolling language, said Friday he is disappointed that Baker vetoed the section.

“This provision was widely supported in the tech and startup communities as a way to protect entrepreneurs and inventors from patent trolling tactics. These shakedown operations sap resources from new startups and scare people out of inventing things here in Massachusetts, costing us thousands of jobs and potentially billions of dollars in new investment,” Lesser said. “Massachusetts is a global leader in innovation and an incubator for countless new startups, and those entrepreneurs need the protections provided by the section Governor Baker vetoed.”