Gov. Deval Patrick has signed an economic development bill with numerous initiatives designed to boost the state’s economy and create jobs by supporting infrastructure improvement and innovation.

Several provisions in the legislation, which originated in the House in May and passed the Senate in July, are directly relevant to municipalities.

The MassWorks infrastructure program, administered by the Executive Office of Housing and Economic Development, was formally consolidated so that a single municipal application is eligible for funding from six potential funding streams. Grant reporting requirements were also streamlined. Applications for the 2012 MassWorks funding cycle will be accepted via the Housing and Economic Development website through Sept. 10.

The law allocates additional funding for the Infrastructure Investment Incentive (I-Cubed) program, which is currently accepting applications. Proposals from municipalities must include substantial infrastructure improvements in conjunction with a certified economic development project.

The cost of the infrastructure improvements to be financed through I-Cubed bonds must be between $10 million and $50 million, and the certified economic development project must generate new jobs, increase property values, and create new tax revenues.

I-Cubed is administered through the Executive Office for Administration and Finance.

The legislation also refines the state’s Business Improvement District (BID) law and creates a new Local Infrastructure Development (LID) program.

Businesses within a BID, where each member pays a surcharge to finance improvements or services beyond what is normally provided by a municipality, will no longer be able to avoid paying the surcharge while enjoying the benefits.

The new LID program enables municipalities, at local option, to establish a targeted development zone in which members pay, based upon advance agreement, an assessment to finance preapproved infrastructure improvements.

The legislation expands the state’s local-option expedited permitting law, Chapter 43D, to include residential development as allowed under local zoning ordinances.

The law extends most local permits by two years, a measure that was opposed by the MMA because municipalities already have the authority to extend permits based on a case-by-case basis. The Legislature had already extended most local permits by two years in 2010, meaning that some local permits have now received a four-year blanket extension from the state.

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