Bill H.4444

HOUSE DOCKET, NO. 4829 FILED ON: 1/27/2010

HOUSE . . . . . . . . . . . . . . . No. 4444

The Commonwealth of Massachusetts

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In the Year Two Thousand Ten

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An Act An Act Making Appropriations for the Fiscal Year 2010 to Provide for Supplementing Certain Existing Appropriations and for Certain Other Activities and Projects..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1.To provide for supplementing certain items in the general appropriation act and other appropriation acts for fiscal year 2010, the sums set forth in section 2 are hereby appropriated from the General Fund unless specifically designated otherwise in this act or in those appropriation acts, for the several purposes and subject to the conditions specified in this act or in those appropriation acts, and subject to the laws regulating the disbursement of public funds for the fiscal year ending June 30, 2009. These sums shall be in addition to any amounts previously appropriated and made available for the purposes of those items.

SECTION 2.

TREASURER AND RECEIVER-GENERAL

Office of the Treasurer and Receiver-General

0612-0105$200,000

OFFICE OF THE STATE COMPTROLLER

Office of the State Comptroller

1599-3384$2,500,000

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES

Department of Veterans' Services

1410-0400$2,113,000

Division of Medical Assistance

4000-0600$107,107,510

4000-0700$92,829,490

EXECUTIVE OFFICE OF PUBLIC SAFETY AND SECURITY

Department of Correction

8900-0001$8,000,000

SECTION 2A. To provide for certain unanticipated obligations of the commonwealth, to provide for an alteration of purpose for current appropriations, and to meet certain requirements of law, the sums set forth in this section are hereby appropriated from the General Fund unless specifically designated otherwise in this section, for the several purposes and subject to the conditions specified in this section, and subject to the laws regulating the disbursement of public funds for the fiscal year ending June 30, 2010. These sums shall be in addition to any amounts previously appropriated and made available for the purposes of those items.

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE

Office of the Secretary of Administration and Finance

1599-0030For a reserve for election costs including but not limited to special election costs for municipalities; provided, that any unexpended funds from this line item shall be made available in fiscal year 2011 $7,200,000

1599-1027For a reserve for reimbursement to certain employees of the commonwealth for certain increases in health care cost-sharing expenditures $6,821,690

1599-1980For a reserve for collective bargaining agreements ratified by employee organizations during fiscal year 2010; provided, that the secretary of administration and finance may transfer funds from this reserve to other items to implement such ratified agreements and shall notify the house and senate committees on ways and means in writing within 30 days after any such transfer; and provided further, that a transfer from this reserve to implement such a ratified agreement shall constitute approval of that agreement under section 7 of chapter 150E of the General Laws without further action by the general court $125,000

1599-4281 For a reserve to meet the fiscal year 2010 costs of salary adjustments and other economic benefits authorized by the collective bargaining agreement between the Commonwealth of Massachusetts and the National Association of Government Employees, and to meet the fiscal year 2010 costs of salary adjustments and other economic benefits necessary to provide equal adjustments and benefits to employees employed in confidential positions which otherwise would be covered by this agreement; provided, that the personnel administrator, with the approval of the secretary of administration and finance, shall determine these adjustments and benefits for the confidential employees in accordance with the collective bargaining agreement then in effect which otherwise would cover these positions; and provided further, that the secretary may transfer from the sum appropriated in this item to other items of appropriation and allocations thereof for fiscal year 2010 amounts that are necessary to meet these costs where the amounts otherwise available are insufficient for the purpose, in accordance with a transfer plan which shall be filed in advance with the house and senate committees on ways and means….25,810

1599-4282For a reserve to meet the fiscal year 2010 costs of salary adjustments and other economic benefits authorized by the collective bargaining agreement between the Commonwealth of Massachusetts and the Service Employees International Union, Local 509, and to meet the fiscal year 2010 costs of salary adjustments and other economic benefits necessary to provide equal adjustments and benefits to employees employed in confidential positions which otherwise would be covered by this agreement; provided, that the personnel administrator, with the approval of the secretary of administration and finance, shall determine these adjustments and benefits for the confidential employees in accordance with the collective bargaining agreement then in effect which otherwise would cover these positions; and provided further, that the secretary may transfer from the sum appropriated in this item to other items of appropriation and allocations thereof for fiscal year 2010 amounts that are necessary to meet these costs where the amounts otherwise available are insufficient for the purpose, in accordance with a transfer plan which shall be filed in advance with the house and senate committees on ways and means $1,912,542

1599-4283For a reserve to meet the fiscal year 2010 costs of salary adjustments and other economic benefits authorized by the collective bargaining agreement between the Commonwealth of Massachusetts and the American Association of Federal, State, County and Municipal Employees, Council 93, and to meet the fiscal year 2010 costs of salary adjustments and other economic benefits necessary to provide equal adjustments and benefits to employees employed in confidential positions which otherwise would be covered by this agreement; provided, that the personnel administrator, with the approval of the secretary of administration and finance, shall determine these adjustments and benefits for the confidential employees in accordance with the collective bargaining agreement then in effect which otherwise would cover these positions; and provided further, that the secretary may transfer from the sum appropriated in this item to other items of appropriation and allocations thereof for fiscal year 2010 amounts that are necessary to meet these costs where the amounts otherwise available are insufficient for the purpose, in accordance with a transfer plan which shall be filed in advance with the house and senate committees on ways and means $21,137

Sex Offender Registry Fee

SECTION 3. Section 178Q of chapter 6 of the General Laws, as so appearing, is hereby amended by striking out, in lines 23 and 24, the words “by the sex offender registry board and shall be transmitted to the treasurer for deposit into the General Fund”, and inserting in place thereof the following words:- and retained by the sex offender registry board.

Technical Fix for Life Sciences Tax Incentive Program

SECTION 4. (A) Section 5 of chapter 23I of the General Laws is hereby amended by striking out subsection (d) and inserting in place thereof the following subsection:-

(d) There shall be established a life sciences tax incentive program. The center, in consultation with the department, may annually authorize incentives, including incentives carried forward, refunded or transferred, pursuant to the following: subsection (m) of section 6 of chapter 62, subsection (n) of said section 6 of said chapter 62, paragraph 17 of section 30 of chapter 63, section 31M of said chapter 63, paragraph 6 of subsection (f) of section 38 of said chapter 63, the fourth paragraph of section 38C of said chapter 63, subsection (j) of section 38M of said chapter 63, section 38U of said chapter 63, section 38V of said chapter 63, section 38W of said chapter 63, the third paragraph of section 42B of said chapter 63, and subsection (xx) of section 6 of chapter 64H, in a cumulative amount, including the current year cost of incentives allowed in previous years, that shall not exceed $25,000,000 annually. The center may, in consultation with the department, limit any incentive or incentives to a specific dollar amount or time duration, or in any other manner deemed appropriate by the department; provided, however, that the department shall only allocate said incentives among commonwealth certified life sciences companies pursuant to subsection (b) and shall award said tax incentives pursuant to subsection (c).

The center shall provide an estimate to the secretary of administration and finance of the tax cost of extending benefits to a proposed project before certification, as approved by the commissioner of revenue, based on reasonable projections of project activities and costs. Tax incentives shall not be available to any certified life sciences company unless expressly granted by the secretary of administration and finance in writing.

(B) Sections 14 and 52 of chapter 130 of the acts of 2008 are hereby repealed.

State Use of Owner Controlled Insurance Programs

SECTION 5. Chapter 30 of the General Laws is hereby amended by inserting after section 39S the following section:-

Section 39T. Notwithstanding section 8 of chapter 268A, the following agencies and authorities may implement competitively procured owner controlled insurance programs, and may permit the use of contractor controlled insurance programs, on projects having estimated construction costs equal to or greater than $50,000,000: the division of capital asset management and maintenance, the department of transportation, the Massachusetts Port Authority, the Massachusetts Water Resources Authority, the Massachusetts State Colleges Building Authority, and the University of Massachusetts Building Authority.

Boston Teachers Retirement Funding

SECTION 6. (A) Section 1 of chapter 32 of the General Laws, as amended by sections 1 to 3 of chapter 21 of the acts of 2009, is hereby further amended by striking out the definition of "Commonwealth's pension liability'' and inserting in place thereof the following definition:-

"Commonwealth's pension liability'', the financial obligation of the commonwealth to pay all retirement benefits pursuant to this chapter for the state employees' retirement system, the teachers' retirement system, for teachers employed by the city of Boston and for the Commonwealth's share of the administrative cost of the State-Boston retirement system, and to reimburse local retirement systems for cost of living adjustments pursuant to section 102 and including any other pension obligations of a system or of the commonwealth relative to future pension liabilities which the commonwealth may assume by general or special law on behalf of any system other than the state employees' retirement system, the teachers' retirement system and for teachers employed by the city of Boston, and the commonwealth's financial obligations which are associated with cost-of-living adjustments or other benefits for members of systems other than the state employees' retirement system and the teachers' retirement system who are not teachers employed by the city of Boston.

(B) The definition of "Commonwealth's Pension Liability Fund" in said section 1 of chapter 32, as appearing in the 2008 Official Edition, is hereby amended by striking out, in line 134, the words "and teachers' retirement systems" and inserting in place thereof the following words:- retirement system, the teachers' retirement system and State-Boston retirement system on behalf of teachers who are members of said system.

(C) Said section 1 of chapter 32, as so appearing, is hereby further amended by striking out , in lines 533 to 538, the words "; provided, that "teacher" shall not be deemed to include, nor shall sections one to twenty-eight inclusive apply, to any person who is a teacher in the public schools of the city of Boston, except to such a teacher who on September first, nineteen hundred and twenty-three, was employed by the city of Boston and was then a member of the teachers' retirement system".

(D) Section 2 of said chapter 32, as so appearing, is hereby amended by inserting after the words "system", in line 23, the following words:- ,but any teacher employed by the school committee of the city of Boston shall be included in the State-Boston retirement system.

(E) Section 20 of said chapter 32, as so appearing, is hereby amended by inserting after the word "town", in line 17, the following words:- ,except the city of Boston,.

(F) Said section 20 of said chapter 32, as so appearing, is hereby further amended by striking out, in lines 24 to 27, the words "or under the State-Boston retirement system, and the chairman or secretary of the school committee of such city or town, or the chairman or executive officer of the Boston retirement board," and inserting in place thereof the following words:-

and the chairman or secretary of the school committee of such city or town.

(G) Section 22 of said chapter 32, as so appearing, is hereby amended by inserting after the first sentence the following sentence:- The State-Boston retirement system shall establish said funds to credit assets received, acquired or held attributable to non-teacher members of said system and shall also establish said funds to credit assets received, acquired or held attributable to teachers who are members of said system.

(H) Said section 22 of said chapter 32, as so appearing, is hereby further amended by striking out, in lines 789 to 790, the words "and the teachers' retirement system" and inserting in place thereof the following words:-, the teachers' retirement system and the State-Boston retirement system; and by striking out, in lines 790 to 791, the words "and the teachers' retirement board" and inserting in place thereof the following words:- , the teachers' retirement board and the State-Boston retirement system for the purpose of funding their teacher retirement benefits.

(I) Said section 22 of said chapter 32 , as so appearing, is hereby further amended by inserting in subparagraph (i) of paragraph (c) of subdivision (7),after the second sentence, the following 3 sentences:- In addition to the foregoing, the State-Boston retirement system shall furnish to the actuary any information that the actuary requires to determine the amount payable on account of the employment of teachers in the city of Boston. The actuary shall determine the amount payable on account of the employment of such teachers, and a separate amount payable as a result of the employment of all other members of the State-Boston retirement system. The actuary shall specify in a written notice to the State-Boston retirement board the specific amounts payable as a result of the employment of teachers in the city of Boston and of all members of the State-Boston retirement system other than teachers.

(J) Subdivision (8) of said section 22 of chapter 32, as so appearing, is hereby amended by striking out the last sentence of paragraph (a) and inserting in place thereof the following sentence:- The assets of the state employees' retirement system, the teachers' retirement system and assets of the State-Boston retirement system attributable to teachers who are members of said system shall be held in the PRIT Fund.

(K) Section 23 of said chapter 32, as so appearing, is hereby amended by striking out subdivision (1) and inserting in place thereof the following subdivision:-

(1) (a) The funds of the state employees' retirement system, the teachers' retirement system and assets of the State-Boston retirement system attributable to teachers who are members of that system shall be held in the PRIT Fund. The board of each such system shall annually, on or before May first, file in the office of the commissioner, on a form prescribed by the commissioner, a sworn statement of the financial condition of the system as of December thirty-first of the previous year and of all the financial transactions of the system during the previous year. The commissioner may, for cause shown, extend the time for filing any such statement.

(b) Notwithstanding any general or special law to the contrary, assets of the State-Boston retirement system attributable to teachers who are members of the system shall be invested in the PRIT Fund, and for purposes of those assets and the payment of benefits to those teachers and their beneficiaries, the State-Boston retirement system shall be considered a participating system in the PRIT Fund, but the system shall not receive a share of any appropriations made under section 22B and paragraph (b) of subdivision (8) of section 22, and the board of the system shall not be able to revoke this participation.

(L) Notwithstanding any general or special law to the contrary, in determining the amount of assets of the State-Boston retirement system to be transferred to the Pension Reserves Investment Trust Fund under this section, the initial percentage of assets attributable to teachers who are members of said system shall be that which is set forth in the actuarial valuation of the State-Boston retirement system as of January 1, 2008 and approved by the actuary. This percentage shall be applied to the total assets of the system on a market value basis, and the amount attributable to teachers shall be calculated as of the end of the month preceding the date of the initial transfer of assets. If all assets attributable to teachers who are members of this system, as determined above, are not transferred in the initial transfer, the remaining amount of assets shall be determined by subtracting from the total percentage of assets to be transferred set forth in said actuarial valuation the percentage of assets previously transferred and applying that percentage to the market value of the assets of said system as of the end of the month preceding the date of the subsequent transfer. Any remaining amounts to be transferred shall be determined in the same manner until the percentage is zero. The State-Boston retirement system shall report to the actuary, and the actuary shall approve the calculation made under this section at the time of each transfer. Transfer of 90 per cent of the assets attributable to teachers under this section shall be completed within 24 months after this act takes effect. Transfer of all assets attributable to teachers under this subsection shall be completed within 48 months after this section takes effect unless the secretary of administration and finance authorizes a later date for the completion of the asset transfer.

(M) Subsections (A) to (D), inclusive, and sections (G) to (L), inclusive, of this section shall take effect upon its passage. Sections (E) and (F) shall take effect on July 1, 2010, and the final reimbursement by the commonwealth under paragraph (c) of subdivision (2) of section 20 of chapter 32 of the General Laws shall be in accordance with said paragraph in all respects except that the payment shall be made directly to the State-Boston retirement system and applied in accordance with the most recent funding schedule approved by the state actuary under section 22 of said chapter 32. The funds for the final reimbursement under paragraph (c) of subdivision (2) of section 20 of said chapter 32 shall be paid from monies transferred from the General Fund by the comptroller to the teachers' retirement system to meet the system's fiscal year 2010 pension obligation in accordance with subdivision (1) of section 22C of chapter 32. This payment shall be a reimbursement for fiscal year 2009 Boston teacher pension benefits paid by the State-Boston retirement system.

Housing Development Incentive Program

SECTION 7. (A) The General Laws are hereby amended by inserting after chapter 40T the following chapter: -

CHAPTER 40U.

Housing Development Incentive Program.

Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:

"Certified housing development project", a housing development project that has been approved by the department for participation in the housing development incentive program.

"Department", the department of housing and community development established by chapter 23B.

"Gateway municipality" shall have the same meaning as in section 3A of chapter 23A.

"Housing development incentive program" or "HDIP" or "program", the program established by this chapter to promote increased residential growth, expanded diversity of housing supply, neighborhood stabilization, and economic development within housing development zones in gateway municipalities.

"Housing development zone," or "HD zone", a zone designated by a gateway municipality which shall be characterized by a need for multi-unit market rate residential properties.

"Housing development project," a multi-unit residential rehabilitation project that is located in a housing development zone within a gateway municipality and once rehabilitated, shall contain at least 20% market rate units.

"Market rate residential unit", a residential unit with no other subsidy, except credits granted under this program, and priced for households above 110% of the municipality's household median income.

"Sponsors" shall have the same meaning as in section 25 of chapter 23B.

"Qualified substantial rehabilitation expenditure," the cost of substantial rehabilitation meeting the criteria established in this chapter:

"Substantial rehabilitation" and "substantially rehabilitated", excluding the purchase of the property, the needed major redevelopment, repair and renovation of a property, as determined by the department of housing and community development.

Section 2. The department may from time to time designate one or more areas of a gateway municipality as an HD Zone, and take actions necessary or appropriate thereto, upon receipt of a municipal application requesting such designation and representing that the municipality, based on its own independent investigation, has determined that the area proposed for designation has a need for multi-unit residential properties. The application shall include a plan with a detailed description of the construction, reconstruction, rehabilitation and related activities, public and private, contemplated for the zone as of the date of the adoption of the zone plan.

Section 3. Pursuant to section 5M of chapter 59, the department may approve a municipality's application for a tax exemption for a housing development project located within an approved housing development zone.

Section 4. (a) A project may be eligible to be a certified housing development project under this program if the proposed project:

(1)contains 2 or more residential units; but the project may be a mixed-use development that includes commercial uses in addition to residential units;

(2)contains no more than 50 market rate residential units;

(3) is located in a designated or proposed HD zone;

(4) will contain at least 20 per cent market rate units upon completion of the rehabilitation, to be sold or leased;

(5)has received from the municipality a property tax exemption under section 5M of chapter 59; and

(6) is a substantial rehabilitation of an existing property.

(b) The department may from time to time approve 1 or more housing development projects, located in HD zones designated under section 2, as certified projects, and take actions necessary or appropriate thereto, upon compliance with the following:

(1)receipt of a project proposal requesting such designation from the municipality, submitted in a timely manner, in the form and with the information that the department prescribes, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the sponsors;

(2)receipt of an executed agreement by the municipality which contains a tax exemption under section 5M of chapter 59 and section 4 of this chapter;

(3)receipt with written approval by the municipality of a request for a designation of the project as a certified project for a specified number of years, which shall be not less than 5 nor more than 20 years;

if the municipality has found, based on the information submitted with the project proposal and additional investigation that the municipality shall make and incorporate in a formal written determination, that the project as described in the proposal and all documentation submitted with it:

(i)is consistent with and can reasonably be expected to benefit significantly from the gateway municipality's plans relative to the project property tax exemption;

(ii)together with all other projects previously certified and located in the same project HDIP zone, will not overburden the municipality's supporting resources; and

(iii)together with the municipal resources committed thereto, will, if certified, have a reasonable chance of increasing residential growth, diversity of housing supply, and supporting economic development, and promoting neighborhood stabilization in one of the municipality's housing development zones of the municipality as advanced in said proposal.

(c)The department shall evaluate and either grant or deny any application for project certification submitted by a municipality within 90 days after the date of its receipt of a complete application. The department's failure to do so shall result in approval of the project for a term of 20 years. Approval of a project because of the department's failure to act within 90 days shall not constitute approval by the department of any tax incentives provided under chapter 62 or 63.

(d) The department may impose a fee for the processing of applications for the certification of any project under this section.

(e)(1) A certified project shall retain its certification for the period specified by the department in its certification decision unless the certification is revoked before the expiration of the specified period. The certification of a project may be revoked only by the department and only upon: (a) a petition of the municipality in which the project is located, or the petition of the director of the department; and (b) the independent investigation and determination of the department that representations made by the sponsors in the project proposal are materially at variance with the conduct of the sponsors after the certification and the variance is found to frustrate the public purposes that such certification was intended to advance. Upon such a revocation, the commonwealth and the municipality shall have causes of action against the sponsors for the value of any economic benefit received by the sponsors before or after the revocation.

(2) Under this section, revocation shall take effect on the first day of the tax year in which the department determines that a material variance commenced. The commissioner of revenue may, as of the effective date of the revocation, disallow any credits, exemptions or other tax benefits allowed by the original certification under this section. The commissioner of revenue shall issue regulations to recapture the value of any credits, exemptions or other tax benefits allowed by the certification under this section.

(3) The department shall review each certified project at least once every 2 years. Annually, on or before the first Wednesday in December, the department shall file a report detailing its findings of the review of all certified projects that it evaluated in the prior fiscal year with the commissioner of revenue and with the joint committee on revenue and the joint committee on housing and community development.

Section 5. (a)The department may award to a sponsor of a certified project tax credits available under subsection (q) of section 6 of chapter 62 and section 38BB of chapter 63 not to exceed 10 per cent of the cost of qualified substantial rehabilitation expenditures of the market rate units in the project. The amount and duration of the credit awarded shall be based on the following factors:

(1)the need for residential development and diversity of housing supply in the gateway municipality;

(2)the extent to which the project will encourage residential development, expansion of diversity of housing supply, support neighborhood stabilization, and promote economic development in the zone; and

(3)the percentage of market rate units contained in the project.

(b) To be a qualified substantial rehabilitation expenditure, the sponsor shall receive from the department:

(1)an initial certification by department that the project meets the definition of certified housing development project;

(2)a second certification by the department, to be issued before construction, certifying that if completed as proposed, the rehabilitation work will meet the standards required for a certified rehabilitation; and

(3)a final certification by the department, issued when the construction is completed, certifying that the work was completed as proposed and that the costs are consistent with the work completed, and when occupancy of the entire structure or some identifiable portion of the structure is permitted. A final certification shall be acceptable as proof that the expenditures related to such construction qualify as qualified rehabilitation expenditures for purposes of the credit allowed under this section.

(c) The department may, limit any incentive or credit available to a project pursuant to subsection (q) of section 6 of chapter 62 and section 38BB of chapter 63 to a dollar amount or in any other manner.

(B) Chapter 59 of the General Laws is hereby amended by inserting after section 5L the following section:-

Section 5M. A gateway municipality, as defined in section 1 of chapter 40U, may, by vote of its legislative body, subject to the charter of the municipality, establish an exemption in an amount not less than 50 and not more than 100 per cent of the value of the market rate units contained in a certified housing development project within a housing development zone under chapter 40U, for a period of not less than 5 years and not more than 20 years. For the purposes of this section, market rate shall be as defined in section 1 of chapter 40U. This exemption shall be approved by the department of housing and community development. The department shall adopt regulations to carry out this section.

(C) The second paragraph of paragraph (1) of subsection (g) of section 6 of chapter 62 of the General Laws, inserted by section 21 of chapter 166 of the acts of 2009, is hereby amended by striking out, in the first, second, and third sentences, the figure "$25,000,000" and inserting in place thereof the following figure:- $20,000,000.

(D) Said section 6 of chapter 62 is hereby amended by inserting after subsection (p) the following subsection: -

(q) (1) A credit shall be allowed against the tax liability imposed by this chapter, to the extent awarded by the department of housing and community development, in this subsection called DHCD, for a certified housing development project, as defined in chapter 40U, in an amount up to 10 per cent of the cost of qualified substantial rehabilitation expenditures of the market rate units within the projects, as defined in section 1 of chapter 40U. The credit under this subsection shall be allowed for the taxable year in which DHCD gives the commissioner written notification of completion of the certified housing development project.

(2) Taxpayers eligible for the this credit may, with prior notice to and in accordance with regulations adopted by the commissioner of revenue, transfer the credits, in whole or in part, to any individual or entity, and the transferee shall be entitled to apply the credits against the tax with the same effect as if the transferee had incurred the qualified rehabilitation expenditures itself. If the sponsor of the certified housing development project is a partnership or a limited liability company taxed as a partnership, the credit, if transferred must be transferred by the partnership or the limited liability company. If the credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property are not transferred they shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among the persons designated as partners, members or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of the entity. Credits passed through to individual partners and members are not transferable.

(3) If the credit allowable for any taxable year exceeds the taxpayer's tax liability for that tax year, the taxpayer may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; but in no event shall the taxpayer apply the credit to the tax for any taxable year beginning more than 5 years after the taxable year in which DHCD gives the commissioner written notification of completion of the certified housing development project If the credit is transferred by the taxpayer, the carryover provisions applicable to the transferee apply.

A transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferee's tax liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; but in no event shall the transferee apply the credit to the tax for any taxable year beginning more than 5 years after the taxable year in which DHCD gives the commissioner written notification of completion of the certified housing development project.

(4) For any certified housing development project, qualified rehabilitation expenditures applicable to this credit shall be treated for purposes of this subsection as made on the date that DHCD gives the commissioner written notification of completion of the certified housing development project.

(5) The total amount of credits that may be authorized by DHCD in a calendar year pursuant to this subsection and section 38BB of chapter 63 shall not exceed $5,000,000 and shall include: (1) credits granted during the year pursuant to this subsection or said section 38BB of said chapter 63; (2) carryforwards of credits from prior years pursuant to this subsection or said section 38BB of said chapter 63, to the extent that such credit carryforwards are estimated by the commissioner to offset tax liabilities during the year. Any portion of the $5,000,000 annual cap not awarded by DHCD in a calendar year shall not be applied to awards in a subsequent year. DHCD shall provide the commissioner of revenue with any documentation that the commissioner requires to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance with the annual cap to the secretary of administration and finance and the secretary of housing and economic development.

(6) The commissioner, in consultation with DHCD, shall adopt regulations to carry out this subsection.

(E) The second paragraph of subsection (a) of section 38N of chapter 63, inserted by section 23 of chapter 166 of the acts of 2009, is hereby amended by striking out, in the first, second, and third sentences, the figure "$25,000,000" and inserting in place thereof the following figure:- $20,000,000.

(F) Said chapter 63 is hereby further amended by inserting after section 38AA the following section: -

Section 38BB. (a) A credit shall be allowed against the tax liability imposed by this chapter, to the extent awarded by the department of housing and community development, in this section called DHCD, for a certified housing development project, as defined in chapter 40U, in an amount up to 10 per cent of the cost of qualified substantial rehabilitation expenditures of the market rate units within the project, as defined in section 1 of chapter 40U. The credit under this section shall be allowed for the taxable year in which DHCD gives the commissioner written notification of completion of the certified housing development project.

(b) Taxpayers eligible for the this credit may, with prior notice to and in accordance with regulations adopted by the commissioner, transfer the credits, in whole or in part, to any individual or entity, and the transferee shall be entitled to apply the credits against the tax with the same effect as if the transferee had incurred the qualified rehabilitation expenditures itself.

(c) If the credit allowable for any taxable year exceeds the taxpayer's tax liability for that tax year, the taxpayer may carry forward and apply in any subsequent taxable year the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; but in no event shall the taxpayer apply the credit to the tax for any taxable year beginning more than 5 years after the taxable year in which DHCD gives the commissioner written notification of completion of the certified housing development project. If the credit is transferred by the taxpayer, the carryover provisions applicable to the transferee apply.

(d) For any certified housing development project, qualified rehabilitation expenditures applicable to this credit shall be treated for purposes of this section as made on the date that DHCD gives the commissioner written notification of completion of the certified housing development project.

(e) The total amount of credits that may be authorized by DHCD in a calendar year under this section and subsection (q) of section (6) of chapter 62 shall not exceed $5,000,000 and shall include: (1) credits granted during the year pursuant to this section or said subsection (q) of section 6 of chapter 62; (2) carryforwards of credits from prior years pursuant to this section or said subsection (q) of section (6) of chapter 62, to the extent that such credit carryforwards are estimated by the commissioner to offset tax liabilities during the year. Any portion of the $5,000,000 annual cap not awarded by the DHCD in a calendar year shall not be applied to awards in a subsequent year. The DHCD shall provide the commissioner of revenue with any documentation that the commissioner requires to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance with the annual cap to the secretary of administration and finance and the secretary of housing and economic development.

(f) The commissioner, in consultation with DHCD, shall adopt regulations to carry out this section.

(G) Subsections (C) and (E) shall take effect on January 1, 2011. The remaining subsections shall take effect upon passage and shall apply to qualified substantial rehabilitation expenditures incurred on or after their effective date.

No Municipal Liability for State "Quinn Bill" Reimbursements

SECTION 8. (A) The fifth paragraph of section 108L of chapter 41 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting after the first sentence the following 2 sentences:- Notwithstanding the previous sentence, and notwithstanding any general or special law to the contrary, an employee of a city or town police department who is covered by this section shall be entitled to ½ the amount of such payments during the employing city's or town's fiscal year. The employee's entitlement to the remaining ½ of the amount of such payments shall be conditioned upon the commonwealth's satisfying its reimbursement obligation under the first sentence of this paragraph, and that amount shall not be due to the employee unless the commonwealth makes the reimbursement payment to the employing city or town, and then only to the extent of the percentage of the amount that is actually paid to the employing city or town.

(B) In a city or town in which an existing collective bargaining agreement provides for payment of the full amount of career incentive salary increases without regard to reimbursement by the commonwealth, subsection (A) shall not take effect until that agreement expires.

Temporarily Limit Film Tax Credits

SECTION 9. (A) Subsection (l) of section 6 of chapter 62 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by adding the following paragraph:-

(8) Notwithstanding any other provision of this section, the cumulative amount of credits allowed under this subsection together with section 38X of chapter 63 for all productions, shall not exceed $50,000,000 for credits deemed attributable to the fiscal year July 1, 2010 through June 30, 2011 and shall not exceed $50,000,000 for credits deemed attributable to the fiscal year July 1, 2011 through June 30, 2012.

(B) Section 38X of chapter 63 of the General Laws, as so appearing, is hereby amended by adding the following subsection:-

(g) Notwithstanding any other provision of this section, the cumulative amount of credits allowed under this section together with subsection (l) of section 6 of chapter 62 for all productions, shall not exceed $50,000,000 for credits deemed attributable to the fiscal year July 1, 2010 through June 30, 2011 and shall not exceed $50,000,000 for credits deemed attributable to the fiscal year July 1, 2011 through June 30, 2012.

(C) In order to implement paragraph (8) of subsection (l) of section 6 of chapter 62 and subsection (g) of section 38X of chapter 63 of the General Laws, with respect to the fiscal years July 1, 2010 through June 30, 2011 (in this section called FY 2011) and July 1, 2011 through June 30, 2012 (in this section called FY 2012) the department of revenue shall issue and implement rules or guidelines which may include but are not limited to the following:

(1) Any motion picture production company (in this subsection called a "production company") seeking a credit for a production that commences filming after January 27, 2010 and before January 28, 2011, shall file a notice (in this subsection called a "production notice") with the department, stating the amount of estimated expenses qualifying for the credit for the production and such other information required by the department. Any production company seeking a credit for a production that commences filming after January 27, 2011, and before January 28, 2012, shall file a production notice after January 27, 2011 with the Department, stating the amount of estimated expenses qualifying for the credit for the production and such other information required by the department.

(2) Production notices received by the department after January 27, 2010 and before January 28, 2011 shall be considered to be attributable to FY 2011 and shall reduce the available credit for FY 2011, as first reduced by amounts of credits attributable to FY 2011 as described in paragraph (5) of this subsection (C), in the order in which they are received, by not more than the amount of the credit calculated with respect to the estimated qualifying expenses stated in the notices. Production notices received by the Department after January 27, 2011 and before January 28, 2012, shall be considered to be attributable to FY 2012 and shall reduce the available credit for FY 2012, in the order in which they are received, by not more than the amount of the credit calculated with respect to the estimated qualifying expenses stated in the notices.

(3) A production company shall not be allowed a credit for a production commencing filming after January 27, 2010, and before January 28, 2012, unless filming commences within 90 days after the department has responded favorably to the notice and any credit shall not be allowed in excess of the amount of credit calculated with respect to the estimated qualifying expenses stated in the notice. A production company that does not commence filming within the required 90 day period will not be allowed a credit for that production and the credit otherwise attributable to that production will be available to other productions subject to the notice procedures and credit limits contained in this subsection (C).

(4) All productions commencing filming after January 27, 2010, and before January 28, 2012, are subject to the notice procedures and credit limits provided in this subsection (C) and shall not qualify for any credit under subsection (l) of section 6 of chapter 62 or section 38X of chapter 63 in any fiscal year except as allowed through such notice procedures and subject to such credit limits.

(5) Credit amounts associated with productions that commenced filming in the commonwealth before January 28, 2010, are not subject to the credit caps for FY 2011 or FY 2012 if credit applications for such productions are received by the department on or before March 15, 2010. Credit amounts associated with productions that commenced filming in the commonwealth before January 28, 2010, shall be treated as credits attributable to FY 2011, regardless of the production dates to which such credit applications relate, if credit applications for such productions are not received by the department by March 15, 2010. However, credits attributable to FY 2011 for productions commencing filming before January 28, 2010, shall be allowed before credits for productions that commence filming at a later date.

(6) The department shall not, before July 1, 2012, issue any credit certificate to a production company that commences filming after January 27, 2012 and before July 1, 2012.

DOR Administrative Provisions

SECTION 10. (A) Section 9 of chapter 62C of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by striking out the first sentence, and inserting in place thereof the following sentence:- If a person, corporation, employer, or vendor fails to file a return required by section 6, 7, 10 or 11, or subsection (h) of section 16, a justice of the supreme judicial court or the superior court, on petition of the commissioner, shall issue an order in the nature of mandamus requiring that person, corporation, employer, or vendor to file that return.

(B) Subsection (k) of section 16 of said chapter 62C, as so appearing, is hereby amended by adding the following 5 sentences:- In addition, each such person shall on or before March 20 of each year file an information return for the prior calendar year containing the information and in the form that the commissioner may by rule or regulation require, including but not limited to the total monthly sales amount to each person to whom it has made sales, exclusive of deposits required by sections 321 to 327, inclusive, of chapter 94, and identifying information for those purchasers. If a person fails to file the information return required by this subsection, he shall be liable for a penalty of $1,000 for each such failure. The penalty shall be considered assessed by the commissioner's issuance of a notice to the taxpayer setting out the amount of the penalty and the period for which the information return was due. No other notice nor any demand for payment shall be required as a prerequisite to the imposition or collection of a penalty imposed under this subsection, which shall be collected in the same manner as a tax. A penalty imposed by the commissioner for a failure to file an information return under this subsection shall be subject to subsection (f) of section 33 relative to waiver of penalties.

(C) Section 21 of said chapter 62C is hereby amended by inserting after the words "subsections (a)", in line 19, as so appearing, the following:- , (e).

(D) The first paragraph of section 24 of said chapter 62C, as so appearing, is hereby amended by adding the following 3 sentences:- The taxpayer shall provide to the commissioner all accounting records and information in electronic format, as requested by the commissioner, to the extent that the taxpayer maintains such records in electronic format. If the commissioner determines that in more than half of the tax periods open to assessment under subsection (b) of section 26, there has been an omission from income or tax exceeding 25 per cent as described in subsections (h) and (i) of said section 26, a presumption shall arise that there has also been such an omission in additional periods which may be assessed under said subsections (h) and (i). The presumption may be rebutted only by the production of adequate books, papers, records and other data of that taxpayer relating to those periods.

(E) Section 37C of said chapter 62C, as so appearing, is hereby amended by adding the following paragraph:-

(g) Communications between or among employees or contractors of the department of revenue with regard to proposed or completed settlements under this section shall be confidential and not subject to disclosure to the taxpayer or any other party, but these communications may be disclosed to the attorney general in conjunction with the review or reporting of settlements as provided in this section.

(F) Section 70 of said chapter 62C, as so appearing, is hereby amended by striking the second sentence and inserting in place thereof the following sentence:- These summonses shall be served in the same manner as summonses for witnesses in criminal cases issued on behalf of the commonwealth, and all laws relative to summonses in those cases, including but not limited to the attorney work-product rules applicable under criminal procedure, shall apply to summonses issued under this section.

(G) Clause (c) of paragraph 5 of section 30 of chapter 63 of the General Laws, as so appearing, is hereby amended by striking subclause (iii).

(H) Said paragraph 5 of said section 30 of said chapter 63 of the General Laws, as so appearing, is hereby amended by adding the following two clauses:-

(d) Notwithstanding any other provision of this section, in the case of a business corporation, losses incurred before the corporation becomes subject to tax liability in this commonwealth shall not be allowed.

(e) Notwithstanding any other provision of this section, when a net operating loss is otherwise allowed to a corporation under this chapter, the loss is to be determined and carried forward by multiplying the loss by the corporation's apportionment percentage as determined under this chapter for the taxable year in which the loss is sustained, with respect to the business that generated the loss, and is to be deducted by the corporation from its taxable net income allocated or apportioned to the commonwealth. The commissioner shall adopt rules or regulations to implement this section and to coordinate the application of this section with the other provisions of this chapter.

(I) Subsections (G) and (H) shall be effective for net operating losses and loss carryforwards determined or claimed as a deduction in tax years beginning on or after January 1, 2009. The commissioner of revenue may adopt rules or regulations to address any transition issues in implementing this section.

Extend Lead Paint Law to Child-Occupied Facilities

SECTION 11. (A) Section 189A of chapter 111 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting after the definition of "Advisory committee" the following definition:-

"Child-occupied facility", a building or portion of a building, constructed before 1978, visited regularly by the same child, under 6 years of age, on at least 2 different days within any week from Sunday to Saturday, inclusive, if each day's visit lasts at least 3 hours, the combined weekly visits last at least 6 hours, and the combined annual visits last at least 60 hours. Child-occupied facilities may include, but are not limited to, day care centers, preschools and kindergarten classrooms. Child-occupied facilities may be located in residential premises or in public or commercial buildings.

(B) Section 197B of said chapter 111, as so appearing, is amended by inserting after the word "premises", in line 34, the following words:- or child-occupied facility.

(C) Subsection (c) of said section 197B of said chapter 111, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- The department shall also, in consultation with the director, adopt regulations specifying licensing requirements and safety procedures to be used by all persons employed in performing renovations or rehabilitation, in a residential premises or child-occupied facility, in a manner that disturbs paint, plaster or other materials containing dangerous levels of lead.

(D) Said section 197B of said chapter 111, as so appearing, is amended by inserting after the word "premises", in line 108, the following words:- or child-occupied facility.

Remedying Failure to Provide Veterans' Benefits

SECTION 12. Section 2 of chapter 115 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting after the tenth paragraph the following paragraph:-

Whenever a city or town or its veterans' agent fails to comply with this chapter or any other statute or regulation providing services to veterans, the commissioner may, after appropriate written notice and a reasonable opportunity to remedy the failure, provide appropriate services to veterans in that city or town by way of a contract or other appropriate means. He shall certify in writing the total cost of providing these services, including any administrative costs, and deduct that amount from any reimbursements due to that city or town from the department.

Allowing Community Colleges to Use State College Building Authority

SECTION 13. (A) Subsection (h) of section 1 of chapter 703 of the acts of 1963, as amended by section 11 of chapter 72 of the acts of 2007, is hereby further amended by striking out the words "any of the following public institutions of higher education: Bridgewater State College, Fitchburg State College, Framingham State College, the Massachusetts College of Art and Design, the Massachusetts Maritime Academy, the Massachusetts College of Liberal Arts, Salem State College, Westfield State College, Worcester State College" and inserting in place thereof the following words:- any public institution of higher education listed in section 5 of chapter 15A of the General Laws, except the University of Massachusetts and its campuses.

(B) The first sentence of section 3 of chapter 703 of the acts of 1963, as appearing in section 2 of chapter 290 of the acts of 1998, is hereby amended by inserting after the word "commonwealth" the following words:- ; but the Authority shall not provide housing facilities at community colleges.

Extend Workforce Training Fund

SECTION 14. Section 25 of chapter 175 of the acts of 1998 is hereby amended by striking out the figure “2010”, as appearing in section 78 of chapter 123 of the acts of 2006, and inserting in place thereof the following figure:- 2012.

Worcester Veterans Shelter

SECTION 15. (A) The first sentence of section 2 of chapter 441 of the acts of 2002 is hereby amended by striking out the words "for a term not to exceed 30 years" and inserting in place thereof the following words:- , or its successors and assigns, for a term, including any extensions, not to exceed 60 years".

(B) Said Chapter 441 is hereby further amended by adding the following section:-

Section 7. Notwithstanding any general or special law to the contrary, the commissioner of capital asset management and maintenance, in consultation with the adjutant general of the military division, may grant, or may join with Massachusetts Veterans, Inc., in granting, an affordable housing restriction on the property described in section 2 to the community economic development assistance corporation, the Massachusetts housing partnership fund board, and the commonwealth acting by and through the department of housing and community development pursuant to chapter 121D of the General Laws, by its administrator the Massachusetts housing finance agency, and to their successors and assigns. This affordable housing restriction shall be on terms and conditions that the commissioner, in consultation with the adjutant general, determines.

April Date for Public Health Benefit Employer Report

SECTION 16. The last sentence of section 304 of chapter 149 of the acts of 2004 is hereby amended by striking out the word "February" and inserting in place thereof the following word:- April.

EEC Transferability

SECTION 17. (A) Item 3000-4050 of section 2 of chapter 27 of the acts of 2009 is hereby amended by striking out the words "30 days before the transfer; and provided further, that not more than 3 per cent of any item may be transferred in fiscal year 2010" and inserting in place thereof the following words:- 15 days before the transfer.

(B) Item 3000-4060 of said section 2 of said chapter 27 is hereby amended by striking out the words "30 days before the transfer; provided further, that not more than 3 per cent of any item may be transferred in fiscal year 2010" and inserting in place thereof the following words:- 15 days before the transfer ".

State Police Chargeback Amounts

SECTION 18. (A) Item 8100-0006 of section 2 of said chapter 27 of the acts of 2009 is hereby amended by striking out the figure "$19,000,000" and inserting in place thereof the following figure:- $27,500,000.

(B) Item 8100-0002 of section 2B of said chapter 27 is hereby amended by striking out the figure "$6,481,785" and inserting in place thereof the following figure:- $20,000,000.

DOC Funding Transfer Correction

SECTION 19. Item 8900-0010 of section 2 of chapter 27 of the acts of 2009 is hereby amended by inserted after the word "services" the following words:- ; provided, that the commissioner of correction or designee shall determine the cost of manufacturing motor vehicle registration plates and certify to the comptroller the amounts to be transferred from the Commonwealth Transportation Fund to the General Fund.

Enable Debt Refinancing

SECTION 20. (a) Notwithstanding any contrary provision of section 53A of chapter 29 of the General Laws, the state treasurer, upon the request of the governor, may issue and sell refunding bonds of the commonwealth under said section 53A of said chapter 29 in an amount sufficient to refund not more than $300,000,000 of outstanding general obligation bonds of the commonwealth, without a finding by the state treasurer that such refunding will result in present value savings to the commonwealth. This sale shall be accomplished in a manner cost efficient to the commonwealth to the extent reasonably possible. The issuance of refunding bonds under this section shall otherwise be subject to said section 53A, but these bonds shall be issued for a maximum term of years, not exceeding 8 years, that the governor may recommend to the general court pursuant to Section 3 of Article 62 of the Amendments to the Constitution.

(b) Within 15 days after this refunding sale, the state treasurer and the secretary of administration and finance shall file with the finance advisory board and the house and senate committees on ways and means a report containing statements of (1) net present cost or savings of this refunding, (2) the costs of issuance incurred by the commonwealth pursuant to this refunding, including but not limited to costs for legal counsel, payments, discounts and other incentives provided to investment bankers, underwriters and others, and costs related to credit or liquidity enhancements, if any, and (3) projected principal and interest debt service costs.

(c) The costs of issuance may, if appropriate, be paid out of the proceeds of the refunding. The governor shall identify the portion of the debt service attributable to the costs of issuance of the refunding as part of any request for an appropriation for debt service payments resulting from this refunding issue. Any refunding bonds issued under this section shall not be counted as part of "issued indebtedness" for the purposes of the debt ceiling calculation.

(d) This section shall expire on June 30, 2011.

MassHealth Line-Item Transferability

SECTION 21. Notwithstanding any general or special law to the contrary, the secretary of health and human services, with the written approval of the secretary of administration and finance, may authorize transfers from items 4000-0430, 4000-0600, 4000-0700, 4000-0860, 4000-0870, 4000-0875, 4000-0880, 4000-0890, 4000-0891, 4000-0895, 4000-0990, 4000-1400 and 4000-1405 of section 2 of chapter 27 of the acts of 2009 to items 4000-0500 and 4000-0600 of said section 2 for the purpose of reducing any deficiency in item 4000-0500 or 4000-0600, but any such transfer shall take place not later than August 31, 2009.

Greyhound Funds

SECTION 22. Notwithstanding any general or special law to the contrary, the commissioner of agricultural resources may award funds in the Greyhound Adoption Trust Fund, established by section 65 of chapter 10 of the General Laws, not obligated as of December 31, 2009, to eligible adoption and rescue organizations within the commonwealth for the care and adoption of retired greyhound track dogs that have schooled or raced at a greyhound racetrack in the commonwealth.

Spending from Commonwealth Transportation Fund

SECTION 23. During fiscal year 2010, appropriations or transfers may be made from the Commonwealth Transportation Fund in anticipation of revenue.

Statute of Limitations for Second Injury Fund

SECTION 24. A petition for reimbursement under section 37 of chapter 152 of the General Laws, for which the subsequent personal injury occurred before December 23, 1991, shall be filed not later than 180 days after the effective date of this section.