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SECTION 1. To provide for supplementing certain items in the general appropriation act and other appropriation acts for fiscal year 2009, 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.

JUDICIARY

Committee for Public Counsel Services

0321-1510$9,384,188

0321-1520$2,075,987

SECRETARY OF THE COMMONWEALTH

Office of the Secretary of the Commonwealth

0521-0000$44,684 

OFFICE OF THE STATE COMPTROLLER

Office of the State Comptroller

1599-3384$4,090,226

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE

Human Resources Division

1750-0100$250,000

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES

Office of the Secretary of Health and Human Services

4000-0500$21,419,707

EXECUTIVE OFFICE OF TRANSPORTATION AND PUBLIC WORKS

Highway Department

6010-0002$579,894

6030-7201$4,490,922

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, 2009.  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

1599-1031For a reserve to meet costs identified by the department of public health associated with responding to an outbreak of the H1N1 virus; provided, that funds may be expended on staffing costs within the state laboratory, dissemination of public information, antiviral medication for the treatment or prevention of the H1N1 virus and the purchase of laboratory equipment specific for the testing for the H1N1 virus; provided further, that the secretary of health and human services shall submit a spending plan to the executive office for administration and finance before the disbursement of funds from this reserve; and provided further, that the department of public health and the executive office for health and human services shall seek federal reimbursement for any eligible expenditures from this reserve              $2,845,216

1599-1701For a reserve for the state share of costs identified by the Federal Emergency Management Agency for Emergency Declaration 3296 relating to the December 2008 severe winter storm, for the counties of Berkshire, Bristol, Essex, Franklin, Hampden, Hampshire, Middlesex, Suffolk and Worcester; provided, that not less than $150,000 shall be expended for an emergency assistance safety grant as appearing in item 7007-0900 of section 2 of chapter 182 of the acts of 2008; and provided further, that not less than $150,000 shall be expended to the town of Spencer for the reimbursements of costs associated with the drinking water emergency in April 2007              $6,300,000

SECTION 3.  Chapter 7A of the General Laws is hereby amended by striking out section 12, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-

Section 12. (a)(1) All reports published under this section shall be filed with the governor, the secretary of administration and finance, the house and senate committees on ways and means and the clerks of the house and senate, and any other parties specified in general or special law.

(2) The comptroller shall prepare an annual statutory basis financial report based on the final closing of the accounting records.  The report shall be published not later than October 31 of each year.

(3) The statutory basis financial report shall present fairly the aggregated financial statements for the budgeted governmental funds and tables of beginning and ending balances, revenues and sources and expenditures and uses for the non-budgeted governmental funds, and the capital project governmental funds.  These statements shall be reviewed in accordance with professional standards established by the American Institute of Certified Public Accountants.  The reports shall be prepared in accordance with the accounting system established by the comptroller under section 7, as cash outflows, including expenditures made in accordance with section 13 of chapter 29 and cash inflows including receipts of federal grants and subsidies from other governmental entities for reimbursement of such expenditures. 

(4) The comptroller shall include, supplemental to the aggregated financial statements in the statutory basis financial report, a statement of the consolidated net surplus in the budgetary funds for the preceding fiscal year, in accordance with section 5C of chapter 29 and the amount by which such surplus exceeds the maximum allowable amount in accordance with section 2H of chapter 29.

(5) Accompanying the statutory basis financial statements, the comptroller shall include financial statements for the budgeted funds that compare the budgeted amounts to final operations for each fund subject to appropriation.

(6) The comptroller may include narratives, statistical tables, and other disclosures and reference material in the statutory basis financial report that he considers appropriate in his professional judgment.

(b) The comptroller shall prepare an annual federal funds report based on the final closing of the accounting records which shall be published not later than the second Wednesday in January and shall present fairly all federal funds received by each agency and department during the fiscal year. The report shall include for each program of federal financial participation the opening balances, revenues, and other sources, expenses and other uses, and ending balances for the fiscal year. The final federal funds report shall be audited in conjunction with the state single audit, and the report of the auditor shall be included.

(c) The comptroller shall prepare a comprehensive annual financial report in conformity to generally accepted accounting principles for governments which shall be published not later than the second Wednesday in January. The report shall be audited in accordance with generally accepted auditing standards and generally accepted governmental auditing standards, and the report of the auditor shall be included.

SECTION 4. Chapter 21A of the General Laws is hereby amended by inserting after section 2 the following section:-

Section 2A.     The secretary is hereby designated as the state natural resource trustee and may compromise or settle any claim for damages for injury to and for destruction or loss of natural resources, including the costs of assessing and evaluating the injury, destruction or loss, incurred or suffered as a result of a release or threat of release, under section 5 of chapter 21E, 42 U.S.C. §9607(f), and 33 U.S.C. §2706, and other applicable law in accordance with this section.  If any such claim, including the costs of assessment, is valued at not more than $100,000, or at a higher amount determined in writing by the attorney general, the secretary may settle and compromise the claim if the secretary has given written notice and all pertinent information regarding the settlement to the attorney general or her designee at least 30 days before execution of the settlement.  The secretary may compromise or settle claims valued at greater than $100,000, or at a higher amount determined in writing by the attorney general, only with the prior written approval of the attorney general or her designee.

SECTION 5. Section 4 of chapter 29D of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out subsection (d) and inserting in place thereof the following subsection:-

(d) The board of trustees shall consist of 7 trustees, including the secretary of administration and finance or a designee, the executive director of the group insurance commission or a designee, the executive director of the public employee retirement administration commission or a designee, the state treasurer or a designee, the comptroller or a designee and 2 additional trustees, one of whom shall be appointed by the governor and one of whom shall be appointed by the state treasurer.  The appointed trustees shall serve for terms of 5 years and shall be experienced in the field of investment, financial management, law and public management. Trustees shall be eligible for reappointment.

SECTION 6. Section 24 of chapter 32A of the General Laws, as inserted by section 8 of chapter 61 of the acts of 2007, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) There shall be established and set up on the books of the commonwealth a fund to be known as the State Retiree Benefits Trust Fund, in this section referred to as the fund. The Health Care Security Trust board of trustees established by section 4 of chapter 29D shall be the trustee of and shall administer the fund, in accordance with that section. The fund shall be an expendable trust not subject to appropriation.

SECTION 7. Said section 24 of chapter 32A, as so appearing, is hereby further amended by inserting after paragraph (e) the following 3 paragraphs:-

(f)The trustees shall adopt an annual budget for the fund and supplemental budgets that the trustees consider necessary, subject to the approval of the general court. Funding for the budget shall be from the investment return of the fund.  If the general court takes no final action to disapprove a budget within 60 days after its filing with the clerk of the house of representatives and the clerk of the senate, the budget shall be considered to be approved. If the general court disapproves a budget within 60 days after it has been filed, the trustees shall operate under the annualized budgetary level most recently approved pending the filing and subsequent approval of any other annual or supplemental budget request. 

(g)The trustees shall engage actuaries experienced in retiree health care costs to perform annual actuarial calculations in accordance with Government Accounting Standards Board Statements 43 and 45, using data as needed from the group insurance commission, the public employee retirement administration commission, the state treasurer and the comptroller and prepare funding schedules to be filed in accordance with section 25.

(h) The trustees shall engage an independent auditor to perform an audit of the State Retiree Benefits Trust Fund’s assets, liabilities, net assets, investments and operations on an annual basis in accordance with government auditing standards and policies established by the comptroller.  The audit report shall be made available to all participating subdivisions, authorities, boards or instrumentalities not later than September 15, annually.

SECTION 8.  Section 2 of chapter 38 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out, in line 6, the words “in Forensic Pathology” and inserting in place thereof, the following words:- with certification in anatomic pathology and subspecialty certification in forensic pathology.

SECTION 9.  Said section 2 of chapter 38, as so appearing, is hereby further amended by striking out, in lines 7 to 8, the words “, a diplomate of the American Board of Anatomic and Forensic Pathology”.

SECTION 10. Section 132 of chapter 58 of the acts of 2006 is hereby amended by striking out the word “thereafter”, in the third sentence, and inserting in place thereof the following words:- ; for 2 years after the effective date of this section, and  shall be updated bi-annually.

SECTION 11.   Section 1 of chapter 62 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after the numeral 72, in line 8, the following numeral:- 139C. 

SECTION 12.  Paragraph (1) of subsection (d) of section 2 of said chapter 62, as so appearing, is hereby amended by adding the following clause:-

(P)  The deduction described in section 163(e)(5) of the Code to the extent increased by amendments to section 163(e)(5)(F) and section 163(i)(1) inserted by section 1232 of the American Recovery and Reinvestment Act of 2009.

SECTION 13.  The definition of “gross income” in section 1 of chapter 63 of the General Laws, as so appearing, is hereby amended by adding the following sentence:- Gross income shall be determined without regard to section 108(i) of the Code.

SECTION 14.  The definition of “net income” in said section 1 of said chapter 63, as so appearing, is hereby amended by adding the following clause:-

(f)  the deduction described in section 163(e)(5) of the Code to the extent increased by amendments to section 163(e)(5)(F) and section 163(i)(1) inserted by section 1232 of the American Recovery and Reinvestment Act of 2009.

SECTION 15.  Paragraph 3 of section 30 of said chapter 63, as so appearing, is hereby amended by adding the following sentence:- Gross income shall be determined without regard to section 108(i) of the Code.

SECTION 16.  Paragraph 4 of said section 30 of said chapter 63, as so appearing, is hereby amended by adding the following clause:-

(vii) the deduction described in section 163(e)(5) of the Code to the extent increased by amendments to section 163(e)(5)(F) and section 163(i)(1) inserted by section 1232 of the American Recovery and Reinvestment Act of 2009.

SECTION 17.  Section 52A of said chapter 63, as so appearing, is hereby amended by inserting after the word “exclusion”, in line 28, the following words:- and without regard to section 108(i) of the Code. 

SECTION 18.  Paragraph (b) of subsection (1) of said section 52A of said chapter 63, as so appearing, is hereby amended by adding the following clause:-

(vi) the deduction described in section 163(e)(5) of the Code to the extent increased by amendments to section 163(e)(5)(F) and section 163(i)(1), inserted by section 1232 of the American Recovery and Reinvestment Act of 2009.

SECTION 19.  Chapter 139 of the acts of 2006 is hereby amended by striking out section 96 and inserting in place thereof the following section:-

Section 96.  Notwithstanding any general or special law to the contrary, the formula for application of funds provided in section 35J of chapter 10 of the General Laws shall not apply in fiscal year 2007.

SECTION 20.  Chapter 61 of the acts of 2007 is hereby amended by striking out section 49 and inserting in place thereof the following section:-

Section 49.  Notwithstanding any general or special law to the contrary, the formula for application of funds provided in section 35J of chapter 10 of the General Laws shall not apply in fiscal year 2008.

SECTION 21.  Item 7004-00032 of  section 2 of chapter 119 of the acts of 2008 is hereby amended  by striking out the following words:- “and provided further, that not less than $10,000,000 shall be expended to stabilize and promote reinvestment, through homeownership, in areas the department has determined to be weak markets as indicated by a high concentration of assisted rental housing or a low rate of homeownership or low median family income or low average sales prices or high levels of unpaid property taxes or vacant or abandoned buildings and, after making the finding, the department may waive the requirements of this section and said chapter 121F which are found to be inconsistent with promoting homeownership in weak markets and take other steps necessary to promote homeownership in the weak market including, but not limited to, reducing the length of required affordability to not less than 10 years and permitting the funded property to be purchased by a household whose income at the time of purchase does not exceed 135 per cent of the area median income, adjusted for family size, or both” and inserting in place thereof the following words:- and provided further, that not less than $14,000,000 shall be expended to develop affordable housing units which are deemed necessary by the department of housing and community development as part of a redevelopment plan, and to stabilize and promote reinvestment, through homeownership, in areas the department has determined to be weak markets as indicated by a high concentration of assisted rental housing or a low rate of homeownership or low median family income or low average sales prices or high levels of unpaid property taxes or vacant or abandoned buildings and, after making the finding, the department may waive the requirements of this section and said chapter 121F which are found to be inconsistent with promoting homeownership in weak markets and take other steps necessary to promote homeownership in the weak market including, but not limited to, reducing the length of required affordability to not less than 10 years and permitting the funded property to be purchased by a household whose income at the time of purchase does not exceed 135 per cent of the area median income, adjusted for family size, or both

SECTION 22. Section 12 of chapter 135 of the acts of 2008 is hereby repealed.

SECTION 23.  Item 0610-2000 of section 2 of chapter 182 of the acts of 2008 is hereby amended by striking out the words”; and provided further, that funds available in fiscal year 2008 shall be available for expenditure until June 30, 2009”.

SECTION 24.  Item 2800-0500 of section 2 of chapter 182 of the acts of 2008 is hereby amended by striking out the item number “2800-0500” and inserting in place thereof the following item number:-  2800-0501.

SECTION 25.  Item 2810-2040 of said section 2 of chapter 182 of the acts of 2008 is hereby amended by striking out the item number “2810-2040” and inserting in place thereof the following item number:-  2810-2041.

SECTION 26.  Item 4000-0320 of section 2 of chapter 182 of the acts of 2008 is hereby amended by inserting after the words "rendered in the current fiscal year" the following words:- ; provided further, that for the purpose of accommodating discrepancies between the receipt of retained revenues and related expenditures, the department may incur expenses, and the comptroller may certify for payment, amounts not to exceed the lower of this authorization or the most recent revenue estimate as reported in the state accounting system.

SECTION 27.  Item 4401-1100 of said section 2 of chapter 182 of the acts of 2008 is hereby amended by striking out the item number “4401-1100” and inserting in place thereof the following item number:-  4401-1101.

SECTION 28. Item 7035-0002 of said section 2 of chapter 182 of the acts of 2008 is hereby amended by striking out the words “provided further, that funds shall only be expended in the CC, HH, PP, and UU object classes;”.

SECTION 29.  Item 8000-0202 of said section 2 of chapter 182 of the acts of 2008 is hereby amended by striking out the words “that no funds shall be expended in the AA object class; and provided further”.

SECTION 30.  Subsection (b) of section 88 of said chapter 182 is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:-  Not less than $1,102,561,456 shall be transferred from the General Fund to the Commonwealth Care Trust Fund and not less than $47,996,382 shall be transferred from the Commonwealth Care Trust Fund to the Health Safety Net Trust Fund.

SECTION 31.  Section 86 of said chapter 182 is hereby amended by striking out the figure “$372,000,000” and inserting in place thereof the following figure:-  $352,000,000.

SECTION 32.  Said chapter 182 of the acts of 2008 is hereby amended by striking out section 81 and inserting in place thereof the following section:-

Section 81.  Notwithstanding any general or special law to the contrary, the formula for application of funds provided in section 35J of chapter 10 of the General Laws shall not apply in fiscal year 2009.

SECTION 33.  Item 6033-0817 of section 2A of said chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6033-0817” and inserting in place thereof the following item number:-  6035-0817.

SECTION 34.  Item 6033-0837 of said section 2A of chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6033-0837” and inserting in place thereof the following item number:-  6035-0837.

SECTION 35.  Item 6033-0867 of section 2B of said chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6033-0867” and inserting in place thereof the following item number:-  6035-0867.

SECTION 36.  Item 6033-0877 of said section 2B of chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6033-0877” and inserting in place thereof the following item number:-  6035-0877.

SECTION 37.  Item 6033-0887 of said section 2B of chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6033-0887” and inserting in place thereof the following item number:-  6035-0887.

SECTION 38.  Item 7010-0016 of section 2C of said chapter 302 of the acts of 2008 is hereby amended by striking out the item number “7010-0016” and inserting in place thereof the following item number:-  7010-0216.

SECTION 39. Section 61 of chapter 302 of the acts of 2008 is hereby repealed.

SECTION 40.  Item 6001-0801 of section 2C of said chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6001-0801” and inserting in place thereof the following item number:-  6001-0881.

SECTION 41.  Item 6001-0802 of said section 2C of chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6001-0802” and inserting in place thereof the following item number:-  6001-0882.

SECTION 42.  Item 6001-0804 of said section 2C of chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6001-0804” and inserting in place thereof the following item number:-  6001-0884.

SECTION 43.  Item 6001-0805 of said section 2C of chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6001-0805” and inserting in place thereof the following item number:-  6001-0885.

SECTION 44.  Item 6001-0813 of section 2E of said chapter 303 of the acts of 2008 is hereby amended by striking out the item number “6001-0813” and inserting in place thereof the following item number:-  6001-0820.

SECTION 45.  Item 0640-0300 of section 2C of chapter 304 of the acts of 2008 is hereby amended by striking out the item number “0640-0300” and inserting in place thereof the following item number:-  0640-0301.

SECTION 46.  Item 0330-9999 of section 2D of said chapter 304 of the acts of 2008 is hereby amended by striking out the item number “0330-9999” and inserting in place thereof the following item number:-  0330-9997.

SECTION 47.  Item 0526-2010 of section 2A of chapter 312 of the acts of 2008 is hereby amended by striking out the item number “0526-2010” and inserting in place thereof the following item number:-  0526-2012.

SECTION 48.  Subsection (b) of section 7 of chapter 377 of the acts of 2008 is hereby amended by striking out the word "middlesex" and inserting in place thereof the following word:- middle.

SECTION 49.  Section 13 of chapter 5 of the acts of 2009 is hereby amended by striking out the words “chapter 188” and inserting in place thereof the following words:- section 88 of said chapter 182.

SECTION 50.  Notwithstanding any general or special law to the contrary, for fiscal years 2009 and 2010, net recoveries generated by any contract entered into by the comptroller under section 29E chapter 29 of the General Laws for accounts receivable cost recovery services shall be deposited as unrestricted revenue in the General Fund, but federal funds shall be returned to the federal government, and any amounts to be financed through the sale of bonds shall be used to reduce the amount financed.

SECTION 51. Notwithstanding federal income tax treatment to the contrary, for purposes of chapters 62 and 63 of the General Laws, the rules of section 382 of the Internal Revenue Code shall be applied without regard to the treatment of a change in ownership of a bank or other corporation provided in Internal Revenue Service Notice 2008-83 or in any federal statutory or administrative codification, supplement or implementation of such Notice. For purposes of said chapters 62 and 63, Internal Revenue Service Notice 2008-83 and any such codification, supplement or implementation shall have no force or effect in any taxable year.    

SECTION 52. Notwithstanding federal income tax treatment to the contrary, for purposes of chapters 62 and 63 of the General Laws, section 382(n) of the Internal Revenue Code, inserted by the American Recovery and Reinvestment Act of 2009, shall have no force or effect in any taxable year. 

SECTION 53. Notwithstanding any general or special law to the contrary, the comptroller shall, in consultation with the secretary of administration and finance, transfer not more than $2,681,250 from the General Fund to the Department of Energy Resources Credit Trust Fund, established by subsection (b) of section 13 of chapter 25A of the General Laws.

SECTION 54. Notwithstanding any general or special law to the contrary, the comptroller shall reduce the chapter 70 portion of the final local aid payment for fiscal year 2009 to be made in June 2009 by $412,000,000 if the secretary of administration and finance certifies in writing to the comptroller, and has provided 10 days written notice to the house and senate committees on ways and means, that federal grant funds in the amount of $412,000,000 have been obligated or expended so that all school districts will receive the full amount appropriated in section 3 of chapter 182 of the acts of 2008.

SECTION 55.  Notwithstanding subsection (c) of section 10 of chapter 152 of the acts of 1997, $65,000,000 of the balance in the Convention Center Fund, which the state treasurer and the secretary of administration and finance have determined to exceed the amount necessary to satisfy the requirement of sufficiency under said subsection (c), shall be transferred to the General Fund of the commonwealth, not later than June 30, 2009.

SECTION 56.  Notwithstanding any general or special law to the contrary, federal grant funds in account numbers 7061-0004 and 7061-0005 distributed to school districts in fiscal years 2009 and 2010 through the State Fiscal Stabilization Fund under Title XIV of the American Reinvestment and Recovery Act of 2009 shall not be subject to indirect charges under section 32A of chapter 35 and section 5D of chapter 40 of the General Laws.  Subsection (f) of section 6B of chapter 29 of the General Laws shall not apply to these funds.  School districts shall continue to provide for and make contributions to appropriate pension funds, as required by paragraph (c) of subdivision (7) of section 22 of chapter 32 of the General Laws, for employees whose salaries are paid from these federal funds, in the same manner as contributions are made when receiving state education aid under chapter 70 of the general laws.

SECTION 57.  Section 11 shall be effective for taxable years ending on or after January 1, 2009.

SECTION 58.  Sections 12, 14, 16 and 18 shall apply to obligations issued after August 31, 2008 in taxable years ending after that date.

SECTION 59.  Sections 13, 15 and 17 shall be effective for discharges in taxable years ending after December 31, 2008.

SECTION 60.  Section 49 shall take effect as of March 19, 2009.