BOSTON — The Massachusetts Senate recently approved a $575.4 million economic development bond bill which included support for small businesses, emerging industries and expanded housing across the state, as well as new artificial intelligence regulations and a ban on crypto ATMs led by Westford’s state senator John Cronin.
Bill S.3178, known as An Act relative to economic development in the Commonwealth, passed just after midnight on Friday, July 24 by a vocal vote of approval, after a long debate the previous day.
The Senate says the over half a million dollar bill will authorize funding to create jobs, encourage innovation and improve the state’s long-term economic competitiveness. This includes automatic two-family zoning on residential lots statewide, new regulations for electric scooters and e-bikes and a framework establishing safety requirements for advanced AI systems. The bill also includes $100 million in immediate funding to support scientific research programs at public colleges and universities across the state.
Additionally, the bill includes an amendment led by Cronin, which will initiate a statewide ban on crypto ATMs. This ban is intended to combat fraud targeting older adults who use crypto ATMs, which are virtual currency kiosks that convert cash into cryptocurrency and are often used as a tool by scammers.
“I’m proud that the Massachusetts Senate adopted language that I sponsored to ban crypto ATMs here in the Commonwealth,” Cronin said in a social media video after the vote. “Last year alone, Massachusetts residents lost more than $7 million to these scams, which target vulnerable seniors and our disabled population. The Massachusetts Senate is taking strong action to protect our citizens and make sure our residents stop getting ripped off.”
The following is a breakdown of what the funding in the bill will go towards:
- $100 million to support growth in the defense industry
- $75 million for AI development
- $25 million for robotics research and development
- $25 million to revitalize downtowns and main streets, including grants to convert vacant storefronts into temporary retail spaces
- $20 million for early-stage and high-growth businesses
- $20 million for community development financial institutions and small businesses
- $25 million for arts, culture and the creative economy
The bill would require major AI developers to evaluate their products and report any potential risks and would authorize the Massachusetts Attorney General’s Office to pursue civil enforcement against any developers that fail to meet the new safety standards. Additional amendments in the bill would require independent safety audits and recurring third-party testing of the AI products.
To address the state’s housing shortage, the bill would permit two-family homes on all residentially zoned lots, subject to reasonable local restrictions. It also creates a streamlined process for converting commercial buildings into housing and establishes deadlines for reviewing housing development proposals.
Similarly, to the recent version of this economic development bill passed by the House, the bill would also create new safety standards regulating newer electric scooters and e-bikes. These include restricting their use by young children and prohibiting mopeds and similar vehicles from using bike lanes and shared-use paths.
Additional amendments adopted by the Senate durging its debate include a ban on the possession, operation, manufacture, or sale of robots equipped with weapons, the criminalization of AI-generated child sexual abuse material, the establishment of interstate licensure compacts for psychologists, social workers and physical therapists, the automation of sealing criminal records to ensure that eligible people are able to move forward without bureaucratic delays and the creation of new local-option tax relief programs for municipalities.
Finally, the Senate approved amendments to the bill which would authorize grants for agritourism, affordable homeownership, passenger rail improvements in Palmer, cultural programming and capital improvements at Zoo New England facilities. Other provisions would allow municipalities to res-establish happy hours and designated outdoor entertainment districts where discounted alcohol consumption would be permitted under local regulations.
The economic development package originated from legislation filed by Gov. Maura Healey. The House previously approved an earlier version of the bill. Following Senate passage, the legislation returns to the House for consideration of the Senate’s changes before it can be sent to Healey for final approval.
