Adopted

2

Text of the Senate amendment to the House Bill relative to transportation finance (House, No. 3415) (being the text of Senate document numbered 1766, printed as amended).

NONE moved that the bill be amended SECTION 1. Section 7 of chapter 4 of the General Laws is hereby amended by inserting after the word “board”, in line 134, as appearing in the 2010 Official Edition, the following words:- , including the Massachusetts Bay Transportation Authority Retirement Board or any successor or subsidiary entity.

SECTION 1A. Section 3 of chapter 6C of the General Laws, as so appearing, is hereby amended by inserting after the words “turnpike corridor”, in line 74, the following words:- or a metropolitan highway system community, as appropriate.

SECTION 1B. Said section 3 of said chapter 6C, as so appearing, is hereby further amended by inserting after the word “turnpike”, in line 76, the following words:- or metropolitan highway system, as appropriate,.

SECTION 1C. Said section 3 of said chapter 6C, as so appearing, is hereby further amended by inserting after the word “accepted”, in line 78, the following words:- ; provided further, that the department shall not implement all-electronic tolling nor open-road tolling on the metropolitan highway system or turnpike prior to: (i) pursuing approval from the Federal Highway Administration to toll additional interstate highways within the commonwealth; (ii) developing a comprehensive tolling program on additional interstate and limited access state highways within the commonwealth, which considers equity issues, revenue benchmarks established by state law, current policy objectives, diversion issues, cost and consistency with the current highway program; (iii) examining a regional value pricing program, electronic tolling program, road pricing program and other available tolling options; and (iv) developing a toll feasibility analysis as a part of the highway project selection and the project finance decision making and inclusion of such analysis in the evaluation of all projects as part of the 5-year highway capital improvement program.

SECTION 1D. Said section 3 of said chapter 6C, as so appearing, is hereby further amended by striking out, in lines 91 and 98, the word “semi-annual” and inserting in place thereof, in each instance, the following word:- quarterly.

SECTION 2. Said section 3 of said chapter 6C, as so appearing, is hereby further amended by inserting after the word “that”, in line 110, the following words:- the department shall annually receive compensation in the amount of the fair market value of the rights granted, in such form as the department, in its sole discretion, deems appropriate and such compensation shall be documented in such easement or other agreement; provided further, that.

SECTION 3. Said section 3 of said chapter 6C, as so appearing, is hereby further amended by striking out, in line 119, the words "mass transportation facilities” and inserting in place thereof the following words:- facilities; provided, however, that the department shall annually receive compensation in the amount of the fair market value of the rights granted, in such form as the department, in its sole discretion, deems appropriate and such compensation shall be documented in such easement or other agreement.

SECTION 4. Said chapter 6C is hereby amended by inserting after section 6 the following section:-

Section 6A. Notwithstanding any general or special law to the contrary, the goals established by the office of performance management and innovation under subsection (b) of section 6 shall include, but not be limited to: (1) for the division of highways, the reduction of commuting times by at least 10 per cent in each region for each rolling 5-year period, after adjusting for seasonal variations and for changes in the economic activity in the region; (2) for the division of highways, the reduction of fatalities by at least 10 per cent for each rolling 5-year period; (3) for the division of highways, the reduction of the accident rate by at least 10 per cent for each rolling 5-year period; (4) for the division of highways, the reduction of the administrative disbursement rate per mile by at least 10 per cent for each rolling 5-year period; (5) for the division of highways, increasing the maintenance disbursements per mile by at least the same total dollar amount as the total dollar amount saved by the reduction of the administrative disbursement rate per mile under the clause (4), for each corresponding 5-year period; (6) for the Mass Transit division, a decrease in the urban transit bus fleet age for each transit authority of at least 10 per cent for each rolling 5-year period; (7) for the Mass Transit division, a reduction of fatalities as a result of transit accidents in each transit authority by at least 10 per cent for each rolling 5-year period; (8) for the Mass Transit division, an increase in the farebox recovery ratio of at least 10 per cent for each transit authority for each rolling 5-year period; (9) for the Mass Transit division, an increase in the on-time performance percentage for each transit authority of at least 2 per cent for each rolling 5-year period, until that percentage reaches 98 per cent; and (10) for the Mass Transit division, an increase of at least 5 per cent in the revenue miles per active vehicle reported to the Federal Transit Administration for each transit authority for each rolling 5-year period.

SECTION 4A. Subsection (e) of section 9 of chapter 6C of the General Laws, as appearing in section 1 of chapter 132 of the acts of 2012, is hereby amended by adding the following sentence:-The secretary shall make the annual report and all such reports from previous years available on the department’s website.

SECTION 4B. Section 10 of said chapter 6C, as appearing in the 2010 Official Editon, is hereby amended by adding the following paragraph:-

The office of transportation planning shall work in collaboration with the public-private partnership infrastructure oversight commission and provide the oversight commission information and updates on research, surveys, studies and future transportation projects.

SECTION 4C. Section 11 of said chapter 6C, as so appearing, is hereby amended by inserting after the word “finance”, in lines 18 and 19, the following words:- , the public-private partnership infrastructure oversight commission.

SECTION 4D. The first paragraph of section 11 of said chapter 6C, as so appearing, is hereby amended by inserting after the sixth sentence the following sentence:- All projects shall be listed in order of priority and include a detailed cost estimate of each, including life-cycle costs as required by section 10.

SECTION 4E.The second paragraph of said section 11 of said chapter 6C, as so appearing, is hereby amended by adding the following sentence:- Each annual report shall also be posted on the department’s website.

SECTION 4F. Said section 11 of said chapter 6C, as so appearing, is hereby further amended by adding the following paragraph:-

The long-range transportation plan shall prioritize each project identified in the transportation plan, separated by mode of transportation, and provide a detailed fiscal analysis of each project, including the projects funding sources, yearly operating costs to maintain the project, the projects impact on existing transportation infrastructure and impact of the project on the goals identified by the department and the office of performance management and innovation including, but not limited to, reducing the number of structurally-deficient bridges, reducing the state of good repair backlog and increasing customer satisfaction across all modes of transportation.

SECTION 5. Subsection (a) of section 13 of said chapter 6C, as so appearing, is hereby amended by adding the following sentence:- The department shall devise and implement a fair and reasonable fee structure to charge and collect tolls for transit over the turnpike between interchange 1 in the town of West Stockbridge and interchange 6 in the city of Springfield at interstate highway route 291, inclusive; provided, however, that notwithstanding any general or special law to the contrary, such revenues shall be applied exclusively to road, rail and transit projects and related costs in Hampshire, Hampden, Franklin and Berkshire counties.

SECTION 5A. Said chapter 6C is hereby further amended by inserting after section 13 the following section:-

Section 13A. The secretary shall develop and implement, to the extent permitted by federal law, a program to allow vehicles with less than 2 occupants access to existing high occupancy vehicle lanes; provided, however that such access may be limited during hours that the existing high occupancy vehicle lane operates at or near capacity. Vehicles with less than 2 occupants shall pay a varying automated toll depending on the time of the day; provided, however, that the secretary shall establish regulations to allow vehicles with at least 2 occupants, motorcycles, buses and low or zero emission vehicles, hybrid vehicles or other fuel efficient or environmentally-friendly vehicles, as established by regulation, to access the lane without paying a toll.

SECTION 5B . Section 16 of said chapter 6C, as appearing in the 2010 Official Edition, is hereby amended by adding the following sentence:- The plan shall be made available on the department’s website.

SECTION 6. Section 19 of said chapter 6C, as so appearing, is hereby amended by striking out, in line 29, the word "if" and inserting in place thereof the following words:- or the department of public utilities, as.

SECTION 6A. Section 28 of said chapter 6C, as so appearing, is hereby amended by inserting after the word “divisions”, in line 33, the following words:- including, but not limited to, revenues from parking fares, financial assistance from cities and towns, sponsorships, naming rights and advertising.

SECTION 6B. Section 30 of said chapter 6C, as so appearing, is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection:-

(c) Subject to the approval of the board the secretary may: (1) operate and administer the programs of roadway design, construction, repair, maintenance, capital improvement, development, and planning through the division of highways and other agencies within the department, as appropriate; (2) coordinate and supervise the administration of the department and its agencies to promote economy and efficiency and to leverage federal funding; (3) under chapter 30A, make, amend and repeal rules and regulations for the management and administration of the department and agencies within the department; (4) execute all instruments necessary for carrying out the business of the department and its agencies; (5) acquire, own, hold, dispose of, lease and encumber property in the name of the department and its agencies; (6) enter into agreements with commissions, offices, boards, divisions, authorities and other entities within the department to improve divisions, agencies, administrative efficiency and program effectiveness and to preserve fiscal resources; (7) enter into agreements and transactions with federal, state and municipal agencies and other public institutions and private individuals, partnerships, firms, corporations, associations and other entities on behalf of the department or its agencies; (8) apply for and accept funds, including grants, on behalf of the commonwealth in accordance with applicable law; and (9) fix and revise from time to time and charge and collect tolls for transit over the following roadways: interstate highway route 90 at the commonwealth’s border with New York; interstate highway route 84 at the commonwealth’s border with Connecticut; interstate highway route 93 at the commonwealth’s border with New Hampshire; interstate highway route 95 at the commonwealth’s borders with New Hampshire and Rhode Island; interstate highway route 91 at the commonwealth’s borders with Connecticut and Vermont; interstate highway route 395 at the commonwealth’s border with Connecticut; interstate highway route 295 at the commonwealth’s border with Rhode Island; state highway route 24 at the commonwealth’s border with Rhode Island; state highway route 3 at the commonwealth’s border with New Hampshire; interstate highway route 7 at the commonwealth’s borders with Connecticut and Vermont; and interstate highway route 146 at the commonwealth’s border with Rhode Island. The secretary may delegate any of the foregoing powers to an officer having charge of a division, office or other administrative unit within the department.

SECTION 6C. Said section 30 of said chapter 6C, as so appearing, is hereby further amended by inserting after subsection (c) the following subsection:-

(d) The secretary shall:

(1) develop, in consultation with the commonwealth development coordinating council, and administer a long-term statewide transportation plan that includes planning for intermodal and integrated transportation;

(2) develop, based on a public hearing process, procedures to be used for transportation project selection;

(3) establish criteria for project selection to be used in the procedures developed under clause (2);

(4) create a future project prioritization list, separated by mode of transportation;

(5) include detailed information regarding all construction projects for which the department has expended funds during the preceding 5 fiscal years, which shall include:

(i) the location and street name, including a brief description of the work to be performed;

(ii) all project identifying numbers used within the department or with respect to any federal or state grant or funding program including, without limitation, any contract numbers, transportation incentive program numbers or Transportation Infrastructure Finance and Innovation Act or other federal aid numbers;

(iii) all contractors, engineers, architects and other service professionals who have performed work on the project;

(iv) all amounts expended, including payee and date of disbursement with respect to each disbursement;

(v) total projected and actual cost;

(vi) projected and actual start and completion dates;

(vii) projected and actual milestone dates and details;

(viii) identification and a brief description of any issues, factors or other causes that have affected or are anticipated to affect the projected cost and completion date of any project; and

(ix) the names and contact information of the project manager within the department or other department personnel with oversight authority;

(6) compare each project to the metrics established by the by the department’s office of performance management and innovation;

(7) document the attempts to engage the public-private partnership infrastructure oversight commission on each project; and

(8) make the long-term statewide transportation plan available on the department’s website.

SECTION 6D. Section 34 of said chapter 6C, as so appearing, is hereby amended by adding the following 2 paragraphs:-

Final approval on a project contemplated in this section shall not be given until the public-private partnership infrastructure oversight commission has been given an opportunity to evaluate the project’s suitability to be constructed in the design-build-finance-operate-maintain or design-build-operate-maintain project delivery method.

No project shall be given final approval unless it is properly identified and explained in the comprehensive state transportation plan under section 11.

SECTION 6E. Section 35 of said chapter 6C, as so appearing, is hereby amended by adding the following sentence:-The secretary shall make the report and all such reports from previous years available on the department’s website.

SECTION 7. Section 43 of said chapter 6C, as so appearing, is hereby amended by striking out subsections (c) and (d) and inserting in place thereof the following 4 subsections:-

(c) The department shall not enter into any agreement under clause (21) of section 3 with a value in excess of $300,000 without the written approval of the board.

(d) Neither the division nor the department shall promulgate any rules or regulations establishing rates for agreements under clause (21) of section 3 without the written approval of the board.

(e) The board shall meet periodically, but at least twice each year and shall keep a public record of all meetings, votes and other business which shall be posted on the department’s website not later than 5 days after each meeting.

(f) The board shall submit an annual report of its activities during the preceding fiscal year not later than September 1 to the governor, the secretary, the administrator, the house and senate chairs of the joint committee on transportation and the chairs of the house and senate committees on bonding, capital expenditures and state assets.

SECTION 8. Said chapter 6C is hereby further amended by striking out sections 44 and 45, as so appearing, and inserting in place thereof the following 2 sections:-

Section 44. (a) The division of highways may provide functional replacement of real property in public ownership whenever the division has acquired such property, in whole or in part, under this chapter or when such property is significantly and adversely affected as a result of the acquisition of property for a highway or highway-related project and whenever the division determines that functional replacement is necessary and in the public interest. For the purposes of this section, “functional replacement” shall mean the replacement of real property, including land, the facilities thereon or both, which shall provide equivalent utility. For the purposes of this section, “real property in public ownership” shall mean any present or future interest in land, including rights of use held by an agency, authority, board, bureau, commission, department, division or other unit, body, instrumentality or political subdivision of the commonwealth or the federal government.

(b) Whenever the division determines it is necessary that a utility or utility facility, as defined under federal law, be relocated because of construction of a project, such facility shall be relocated by the division or by the owner thereof within or outside the limits of such highway in accordance with an order from the division. For any utility facility, the division may reimburse the owner in accordance with the easement or other agreement under clause (21) of section 3 between the department and the owner.

(c) Any relocation of facilities carried out under this section which is not performed by employees of the owner shall be subject to sections 26 to 27F, inclusive, of chapter 149.

(d) Any agreement under clause (21) of section 3 between the department and the owner of a utility or utility facility shall contain minimum standards for the successful completion of the relocation work as a condition of reimbursement including, without limitation, target dates for completion and adherence to minimum design standards established by the department.

Section 45. The division may reimburse the owner of an underground utility or utility facility whenever such underground utility or utility facility is determined by the division to be relocated because of construction of a project. For any such utility or utility facility, the division shall reimburse the owner in accordance with the easement or other agreement between the department and the owner.

SECTION 8A. Section 14C of chapter 7 of the General Laws is hereby amended by inserting after the word “board”, in line 3, as so appearing, the following words:- , including the Massachusetts Bay Transportation Authority Retirement Board and any successor or subsidiary entity.

SECTION 8B. Subsection (b) of said section 14C of said chapter 7, as so appearing, is hereby amended by inserting after paragraph (4) the following paragraph:-

(4 1/2) capital expenditures grouped by project with links to related capital budget documents;.

SECTION 9. Sections 4C to 4G, inclusive, of chapter 16 of the General Laws are hereby repealed.

SECTION 9A. Subsection (A) of section 2 of chapter 21J of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after the first sentence the following sentence:- The fee imposed under this paragraph shall be adjusted at the beginning of each calendar year, by the percentage, if any, by which the consumer price index for the preceding year exceeds the consumer price index for the calendar year that ends before such preceding year.

SECTION 10. Subsection (C) of said section 2 of said chapter 21J, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:-

The department shall deposit the receipts from the delivery fee imposed under the first paragraph of subsection (A) into the Commonwealth Transportation Fund established in section 2ZZZ of chapter 29 and shall deposit the receipts from the annual storage tank fee imposed under the second paragraph of subsection (A) into the General Fund.

SECTION 11. Said section 2 of said chapter 21J , as so appearing, is hereby further amended by striking out subsection (D).

SECTION 11A. Section 14 of said chapter 21J, as so appearing , is hereby amended by striking out, in line 1, the word “fees,”.

SECTION 11B. Said section 14 of said chapter 21J, as so appearing, is hereby further amended by striking out, in lines 2 to 4, inclusive, the words “treasury to the credit of the fund in accordance with the provisions of section two S of chapter twenty-nine” and inserting in place thereof the following words:- General Fund.

SECTION 12. Subsection (a) of section 2ZZZ of chapter 29 of the General Laws, as appearing in section 112 of chapter 165 of the acts of 2012, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:-

There shall be credited to the fund all fees received by the registrar of motor vehicles under section 34 of chapter 90, all receipts paid into the treasury of the commonwealth and directed to be credited to the Commonwealth Transportation Fund under chapters 21J, 64A, 64E, 64F and any other applicable general or special law and all amounts appropriated into the fund by the general court.

SECTION 13. Said section 2ZZZ of said chapter 29, as so appearing, is hereby further amended by striking out subsection (c) and inserting in place thereof the following subsection:-

(c) In addition to those revenues credited to the fund under subsection (a) there shall be credited to the fund all monies received by the commonwealth from the receipts from sales of motor vehicles under sections 3, 25 and 26 of chapter 64H and all monies received by the commonwealth on the sales price of purchases of motor vehicles under sections 4, 26 and 27 of chapter 64I, from the taxes imposed under said chapters 64H and 64I as excises upon the sale and use at retail of motor vehicles and upon the storage, use or other consumption of motor vehicles, including interest thereon or penalties; provided however, such amount shall not include any portion of the taxes that constitute special receipts within the meaning of subsection (b1/2) of section 10 of chapter 152 of the acts of 1997; provided, further, that if in a fiscal year the amount credited to the fund under this subsection is less than $459,000,000, then the comptroller shall transfer an amount from the General Fund to make up the difference between the amount credited to the fund and $459,000,000, not later than September 1 of the following fiscal year. The amount credited to the fund under this subsection shall be net of the dedicated sales tax revenue amount transferred to the Massachusetts Bay Transportation Authority State and Local Contribution Fund under section 35T of chapter 10 and to the School Modernization and Reconstruction Trust Fund under section 35BB of chapter 10.

SECTION 13A. Section 3B of said chapter 29, as so appearing, is hereby amended by inserting after the words “equivalent employees for the subsequent fiscal year” the following words:- ; and (3) a statement detailing each authority’s ridership data and cost per ride for each service. The statements shall be posted on the Massachusetts Department of Transportation’s website.

SECTION 14. Section 5 of chapter 59 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out, in line 237, the words “or (d)” and inserting in place thereof the following words:- (d) a telephone corporation subject to chapter 166 or (e).

SECTION 15. Said section 5 of said chapter 59, as so appearing, is hereby further amended by striking out, in lines 238 and 239, the words “, fifty-two A”.

SECTION 16. Said section 5 of said chapter 59, as so appearing, is hereby further amended by inserting after the word “corporation”, in line 255, the following words:- “or a telephone corporation subject to chapter 166”.

SECTION 17. Section 12 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out subsection (g).

SECTION 18. Said section 12 of said chapter 62C, as so appearing, is hereby further amended by striking out, in lines 40 and 41, the words “and fifty-two A of chapter sixty-three”.

SECTION 19. Subsection (d) of section 2A of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out paragraph (xi) and inserting in place thereof the following paragraph:-

(xi) The numerator of the receipts factor includes receipts from sales, other than sales of tangible personal property, not otherwise apportioned under this section to the extent that those receipts would be included in the numerator of a corporation's sales factor as determined under subsection (f) of section 38. For purposes of the receipts sourced under this paragraph, paragraph (xiii) of subsection (d) shall not apply.

SECTION 20. Section 31H of said chapter 63 is hereby amended by striking out, in line 53, as so appearing, the words “, section 39 and section 52A” and inserting in place thereof the following words:- “and section 39”.

SECTION 21. Section 38 of said chapter 63, is hereby amended by striking out, in line 31, as so appearing, the words “or of section 52A”.

SECTION 22. Said section 38 of said chapter 63, as most recently amended by section 32 of chapter 194 of the acts of 2011, is hereby further amended by striking out subsection (f) and inserting in place thereof the following subsection:-

(f) The sales factor is a fraction, the numerator of which is the total sales of the corporation in this commonwealth during the taxable year, and the denominator of which is the total sales of the corporation everywhere during the taxable year. As used in this subsection, unless specifically stated otherwise, “sales” means all gross receipts of the corporation, including deemed receipts from transactions treated as sales or exchanges under the Code, except interest, dividends and gross receipts from the maturity, redemption, sale, exchange or other disposition of securities; provided, however, that “sales” shall not include gross receipts from transactions or activities to the extent that a non-domiciliary state would be prohibited from taxing the income from such transactions or activities under the Constitution of the United States. Sales of tangible personal property are in this commonwealth if:-

(1) the property is delivered or shipped to a purchaser within this commonwealth regardless of the f. o. b. point or other conditions of the sale; or

(2) the corporation is not taxable in the state of the purchaser and the property was not sold by an agent or agencies chiefly situated at, connected with or sent out from premises for the transaction of business owned or rented by the corporation outside this commonwealth. "Purchaser", as used in clauses (1) and (2) of this paragraph, shall include the United States government.

Sales, other than sales of tangible personal property, are in this commonwealth if the corporation's market for the sale is in this commonwealth. The corporation's market for a sale is in this commonwealth and the sale is thus assigned to the commonwealth for the purpose of this section:-

(1) in the case of sale, rental, lease or license of real property, if and to the extent the property is located in this commonwealth;

(2) in the case of rental, lease or license of tangible personal property, if and to the extent the property is located in this commonwealth;

(3) in the case of sale of a service, if and to the extent the service is delivered to a location in this commonwealth;

(4) in the case of lease or license of intangible property, including a sale or exchange of such property where the receipts from the sale or exchange derive from payments that are contingent on the productivity, use or disposition of the property, if and to the extent the intangible property is used in this commonwealth; and

(5) in the case of the sale of intangible property, other than as referenced in clause (4), where the property sold is a contract right, government license or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area, if and to the extent that the intangible property is used in or otherwise associated with this commonwealth; provided, however, that any sale of intangible property, not otherwise described in this clause or clause (4), shall be excluded from the numerator and the denominator of the sales factor.

For the purposes of this subsection: (1) in the case of sales, other than sales of tangible personal property, if the state or states to which sales should be assigned cannot be determined, it shall be reasonably approximated; (2) in the case of sales other than sales of tangible personal property if the taxpayer is not taxable in a state to which a sale is assigned, or if the state or states to which such sales should be assigned cannot be determined or reasonably approximated, such sale shall be excluded from the numerator and denominator of the sales factor; (3) the corporation shall be considered to be taxable in the state of the purchaser if tangible personal property is delivered or shipped to a purchaser in a foreign country; (4) sales of tangible personal property to the United States government or any agency or instrumentality thereof for purposes of resale to a foreign government or any agency or instrumentality thereof are not sales made in this commonwealth; (5) in the case of sale, exchange or other disposition of a capital asset, as defined in paragraph (m) of section 1 of chapter 62, used in a taxpayer's trade or business, including a deemed sale or exchange of such asset, "sales" shall be measured by the gain from the transaction; (6) "security" shall mean any interest or instrument commonly treated as a security as well as other instruments which are customarily sold in the open market or on a recognized exchange, including, but not limited to, transferable shares of a beneficial interest in any corporation or other entity, bonds, debentures, notes and other evidences of indebtedness, accounts receivable and notes receivable, cash and cash equivalents including foreign currencies and repurchase and futures contracts; (7) in the case of a sale or deemed sale of a business, the term "sales" shall not include receipts from the sale of the business "goodwill" or similar intangible value, including, without limitation, "going concern value" and "workforce in place"; (8) to the extent authorized under the life sciences tax incentive program established by section 5 of chapter 23I, a certified life sciences company may be deemed a research and development corporation for purposes of exemptions under chapters 64H and 64I; and (9) in the case of a business deriving receipts from operating a gaming establishment or otherwise deriving receipts from conducting a wagering business or activity, income-producing activity shall be considered to be performed in this commonwealth to the extent that the location of wagering transactions or activities that generated the receipts is in this commonwealth.

Notwithstanding the foregoing, mutual fund sales as defined in subsection (m), other than the sale of tangible personal property, shall be assigned to this commonwealth to the extent that shareholders of the regulated investment company are domiciled in this commonwealth as follows:

(a) by multiplying the taxpayer's total dollar amount of sales of such services on behalf of each regulated investment company by a fraction, the numerator of which shall be the average of the number of shares owned by the regulated investment company's shareholders domiciled in this commonwealth at the beginning of and at the end of the regulated investment company's taxable year that ends with or within the taxpayer's taxable year and the denominator of which shall be the average of the number of shares owned by the regulated investment company shareholders everywhere at the beginning of and at the end of the regulated investment company's taxable year that ends with or within the taxpayer's taxable year.

(b) A separate computation shall be made to determine the sale for each regulated investment company, the sum of which shall equal the total sales assigned to the commonwealth.

The commissioner shall adopt regulations to implement this subsection. Nothing in this subsection shall limit the commissioner's authority under subsection (j).

SECTION 23. The third paragraph of subsection (f) of said section 38 of said chapter 63 is hereby amended by striking out clauses (8) and (9), as appearing in section 22, and inserting in place thereof the following words:- and (8) in the case of a business deriving receipts from operating a gaming establishment or otherwise deriving receipts from conducting a wagering business or activity, income-producing activity shall be considered to be performed in this commonwealth to the extent that the location of wagering transactions or activities that generated the receipts is in this commonwealth.

SECTION 24. Section 52A of said chapter 63 is hereby repealed.

SECTION 25. Section 59 of said chapter 63, as appearing in the 2010 Official Edition, is hereby amended by striking out, in lines 10 and 11, the words “; but this section shall not apply to corporations subject to section fifty-two A”.

SECTION 26. Section 67 of said chapter 63, as so appearing, is hereby amended by striking out the last sentence.

SECTION 27. Section 68C of said chapter 63, as so appearing, is hereby amended by striking out clause (3).

SECTION 28. Section 1 of chapter 64A of the General Laws, as so appearing, is hereby amended by striking out, in line 98, the figure “21” and inserting in place thereof the following figure:- 24.

SECTION 29. Said section 1 of said chapter 64A, is hereby further amended, by inserting after the word “gallon”, the second time it appears, in line 98, as so appearing, the following words:- , adjusted at the beginning of each calendar year, by the percentage, if any, by which the Consumer Price Index for the preceding year exceeds the Consumer Price Index for the calendar year that ends before such preceding year; provided, that the Consumer Price Index for any calendar year shall be as defined in section 1 of the Internal Revenue Code; provided further, that the tax shall not be less than 21 cents per gallon.

SECTION 30. Section 6 of chapter 64C of the General Laws, as so appearing, is hereby amended by striking out, in lines 3 and 11, the figure “100½” and inserting in place thereof, in each instance, the following figure:- 150½.

SECTION 31. Said section 6 of said chapter 64C, as so appearing, is hereby further amended by striking out, in line 27, the figure “40” and inserting in place thereof the following figure:- 160.

SECTION 32. Section 7B of said chapter 64C, as so appearing, is hereby amended by striking out, in line 40, the figure "30" and inserting in place thereof the following figure:- 40.

SECTION 33. Section 1 of chapter 64H of the General Laws, as so appearing, is hereby amended by inserting after the definition of “Commissioner” the following definition:-

“Computer system design services”, the planning, consulting or designing of computer systems that integrate computer hardware, software or communication technologies and are provided by a vendor or a third party.

SECTION 34. Said section 1 of said chapter 64H, as so appearing, is hereby further amended by striking out, in lines 239 to 241, inclusive, the words “; and provided, further, that the term services shall be limited to the following item: telecommunications services” and inserting in place thereof the following words:- , or data access, data processing or information management services; and provided further, that the term services shall be limited to the following items: telecommunications services, computer system design services and the modification, integration, enhancement, installation or configuration of standardized software.

SECTION 35. Chapter 81 of the General Laws is hereby amended by striking out section 7D, as so appearing, and inserting in place thereof the following section:-

Section 7D. The department may grant easements or enter into other agreements as provided in clause (21) of section 3 of chapter 6C, within and outside the limits of the state highway system, the metropolitan highway system or the turnpike locations, for ducts, pipes, pipelines, mains, poles, conduits, cables, wires, towers, cattle passes and other structures; provided, however, that the department shall annually receive compensation in the amount of the fair market value of the rights granted, in such form as the department, in its sole discretion, deems appropriate and such compensation shall be documented in the easement or other agreement, subject to review by the real estate appraisal review board as may be required under section 43 of chapter 6C.

SECTION 35A. Section 7G of said chapter 81, as so appearing, is hereby amended by striking out, in line 2, the word “public”.

SECTION 36. Said section 7G of said chapter 81, as so appearing, is hereby further amended by inserting after the word “company”, in line 9, the following words:- in accordance with, and for such compensation as is provided in, the easement or other agreement authorized under section 7D.

SECTION 37. Said section 7G of said chapter 81, as so appearing, is hereby further amended by striking out the last sentence.

SECTION 38. Section 7H of said chapter 81, as so appearing, is hereby amended by striking out, in lines 5 and 6, the words "the provisions of section eight A of chapter twenty-nine" and inserting in place thereof the following words:- section 8B of chapter 81.

SECTION 39. Said chapter 81 is hereby further amended by striking out section 7K, as so appearing, and inserting in place thereof the following section:-

Section 7K. Whenever land or an easement therein is taken by the department by eminent domain to relocate a utility or utility facility under sections 44 or 45 of chapter 6C, the owner of the utility or utility facility, its authorized agents or employees, after due notice by certified mail to the persons in possession of land that was taken, may enter upon the land, water and premises not including buildings, as is necessary or convenient to relocate the facility and such entry shall not be deemed a trespass, nor an entry under any condemnation proceedings which are pending.

SECTION 40. Section 7L of said chapter 81, as so appearing, is hereby amended by striking out, in line 13, the words "Highway Fund" and inserting in place thereof the following words:- Massachusetts Transportation Trust Fund, established under section 4 of chapter 6C.

SECTION 41. Said section 7L of said chapter 81, as so appearing, is hereby further amended by striking out the last paragraph.

SECTION 41A. Section 10 of chapter 161A of the General Laws, as so appearing, is hereby amended by inserting after the word “chapter”, in line 4, the following words:- ; provided, however, that notification of any formal communications attempting to secure federal assistance, together with the contents of those communications, shall be simultaneously transmitted to the house and senate committees on ways and means.

SECTION 41B. Said section 10 of said chapter 161A, as so appearing, is hereby further amended by adding the following sentence:- The chairman of the authority shall issue a quarterly report on communications with the federal government in furtherance of this section. The report shall include, but not be limited to, any actions by the authority committing or proposing to commit the commonwealthto provide financial assistance and shall be submitted to the house and senate committees on ways and means.”.

SECTION 41C. The first paragraph of section 20 of said chapter 161A, as so appearing, is hereby amended by adding the following sentence:-The secretary shall make the preliminary and final itemized budgets available on the department’s website.

SECTION 41D. Section 24 of said chapter 161A, as so appearing, is hereby amended by adding the following paragraph: -

Real property of the authority shall, if leased, used, or occupied in connection with a business conducted for profit shall, for the privilege of such lease, use or occupancy be valued, classified, assessed and taxed annually as of January 1to the lessee, user or occupant in the same manner and to the same extent as if such lessee, user or occupant were the owner of the real property in fee. No tax assessed under this section shall be a lien upon the real estate with respect to which it is assessed; nor shall any tax be enforced by any sale or taking of such real estate; but the interest of any lessee in that land may be sold or taken by the collector of the town in which the real estate lies for the nonpayment of such taxes in the manner provided by law for the sale or taking of real estate for nonpayment of annual taxes. Notwithstanding this paragraph, such collector shall have for the collections of taxes assessed under this section all other remedies provided by chapter 60 for the collection of annual taxes upon real estate. This section shall not apply to leases, easements, grants, licenses or rights of way associated with the networks of public utilities or communications companies.

SECTION 41E. Section 5 of chapter 161B of the General Laws, as so appearing, is hereby amended by striking out the second paragraph and inserting in place thereof the following 2 paragraphs:-

One representative of the disabled commuter population shall serve on the advisory board as a voting member for a term of 1 year. Each city and town in the region, on a rotating basis as determined by the board, shall appoint a representative successively; provided, however, that the representative of the disabled commuter population and the representative of the rider community shall not be appointed by the same city or town in the region. The mayor or city manager and the chairman, town manager or town administrator shall appoint a resident of the city or town for this purpose. This representative shall be mobility impaired, have a family member who is mobility impaired, be a caretaker of a person who is mobility impaired or work for an organization that serves the needs of the physically disabled. The representative of a city or town may be reappointed after representatives from the other cities and towns within the region have served their 1-year terms.

One representative of the rider community population shall serve on the advisory board as a voting member for a term of 1 year. Each city and town in the region, on a rotating basis as determined by the board, shall appoint a representative successively; provided, however, that the representative of the disabled commuter population and the representative of the rider community shall not be appointed by the same city or town in the region.The mayor or city manager and the chairman, town manager or town administrator shall appoint a community rider for this purpose from a list of at least 5 persons nominated by the Massachusetts AFL-CIO and its regional councils. The representative of a city or town may be reappointed after representatives from the other cities and towns within the region have served their 1-year terms.

SECTION 42. Section 7 of chapter 164A of the General Laws, as so appearing, is hereby amended by striking out, in line 1, the word “(a)”.

SECTION 43. Said section 7 of said chapter 164A, as so appearing, is hereby further amended by striking out subsection (b).

SECTION 44. Section 21 of chapter 166 of the General Laws, as so appearing, is hereby amended by inserting after the first sentence the following sentence:- In the case of a public way owned by the Massachusetts Department of Transportation or in which the department has a sufficient easement interest, the construction of any such poles, piers, abutments, conduits and other fixtures, except bridges, shall be subject to an agreement under section 7D of chapter 81.

SECTION 45. Section 22A of said chapter 166, as so appearing, is hereby amended by striking out, in line 5, the word “energy” and inserting in place thereof the following word:- cable.

SECTION 46. Section 25 of chapter 130 of the acts of 2008 is hereby repealed.

SECTION 47. Section 54 of said chapter 130, as amended by section 24 of chapter 9 of the acts of 2011, is hereby further amended by striking out the figure “, 25”.

SECTION 49. Notwithstanding any general or special law to the contrary, the department of transportation shall review the current status of the use of rights-of-way in the state highway system, the turnpike and the metropolitan highway system, all as defined in section 1 of chapter 6C of the General Laws. The review shall also present the current status of efforts by the department to collect rents or other compensation for the use of department-owned rights-of-way. The review shall also include, but not be limited to, an inventory of the owners of utilities or utility facilities that occupy department-owned rights-of-way, according to town and either state route number or road name, as will most clearly identify the road or other transportation facility being referred to, and including underground facilities. For each owner of a utility or utility facility that occupies department-owned rights-of-way, the review shall state whether an easement or other agreement exists for the occupant's use of the right-of-way, whether that agreement is in writing, whether such agreement requires compensation to the department for the occupant's use of the right-of-way and if so, how much compensation, the due date of the compensation, whether the compensation has been paid and whether the compensation is monetary or non-monetary. For each owner of a utility or utility facility that occupies department-owned rights-of-way, the review shall also state whether the department knows if other occupants are also using that utility or utility facility, and if known to the department, shall identify all other occupants of that utility or utility facility. If the department knows that facilities exist on department-owned rights-of-way but does not know the identity of the owner, the review shall describe such facilities and shall characterize the owners as "unidentified owners".

The department shall file a report containing the department's findings from this review with the clerks of the house and senate, the house and senate chairs of the joint committee on transportation, the house and senate chairs of the joint committee on telecommunications, utilities and energy, the chairs of the house and senate committees on ways and means and the chairs of the house and senate committees on bonding, capital expenditures and state assets not later than October 1, 2013.

SECTION 50. The department shall use its best efforts to conclude written easements or other written agreements under clause (21) of section 3 of chapter 6C of the General Laws with the owners of utilities or utility facilities on all department-owned rights-of-way by June 30, 2015. The period covered by such agreements shall begin not later than July 1, 2015.

SECTION 51. A manufacturer, wholesaler, vending machine operator, unclassified acquirer or retailer, as defined in section 1 of chapter 64C of the General Laws, and a stamper appointed by the commissioner under section 30 of said chapter 64C who, as of the commencement of business on July 1, 2013, has on hand any cigarettes for sale or any unused adhesive or encrypted stamps, shall make and file with the commissioner within 20 days a return, subscribed and sworn to under the penalties of perjury, showing a complete inventory of such cigarettes and stamps and shall, at the time such manufacturer, wholesaler, vending machine operator, unclassified acquirer, retailer or stamper is required to file such return, pay an additional excise of 50 mills per cigarette on all cigarettes and all unused adhesive and encrypted stamps upon which an excise of only 100½ mills has previously been paid. Chapters 62C of the General Laws and 64C of the General Laws relative to the assessment, collection, payment, abatement, verification and administration of taxes, including penalties, shall apply to the excise imposed by this section.

SECTION 52. (a) Notwithstanding any general or special law to the contrary, the Massachusetts Department of Transportation shall, in the department’s annual budget, ensure that the budget includes sufficient revenue from sources of revenue listed in subsection (c) to meet the following benchmarks: (i) in fiscal year 2014, the department shall contribute 47 per cent of the department’s operating budget; (ii) in fiscal year 2015, the department shall contribute 48 per cent of the department’s operating budget; (iii) in fiscal year 2016, the department shall contribute 50 per cent of the department’s operating budget; (iv) in fiscal year 2017, the department shall contribute 51 per cent of the department’s operating budget; and (v) in fiscal year 2018, the department shall contribute 51 per cent of the department’s operating budget. The salary, benefits or level of compensation of any department employee in a major policymaking position, as defined by section 1 of chapter 268B of the General Laws, shall not be increased if the department is not exceeding the benchmarks provided for in this section.

(b) The benchmarks in subsection (a) may be achieved through any combination of revenue increases under subsection (c) and savings to the department’s operating budget; provided, however, that the department shall submit a preliminary report of savings to the operating budget by October 1 of each fiscal year and a final report of savings to the operating budget by January 1 of each fiscal year. Those preliminary and final reports shall be submitted to the house and senate committees on ways and means and the joint committee on transportation.

(c) The revenue generated to meet the benchmarks in subsection (a) may be derived from: (i) fees collected by the registrar of motor vehicles under section 34 of chapter 90 of the General Laws; (ii) funds available to the registry of motor vehicles through the Motor Vehicle Inspection Trust Fund under section 61 of chapter 10 of the General Laws; and (iii) any other funds directly collected by the department; provided, however, that no funds collected through increases in tolls charged and collected as of January 1, 2013 under section 13 of chapter 6C of the General Laws shall be counted towards the benchmarks in subsection (a); and provided further, that any revenue collected from tolls for transit on roads not tolled as of July 1, 2013 shall count towards the benchmarks in said subsection (a).

SECTION 53. (a) Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall, in the authority’s budget as approved by the board of directors under section 20 of chapter 161A of the General Laws, ensure that the budget includes sufficient revenue from sources of revenue listed in subsection (c) to meet the following benchmarks: (i) in fiscal year 2014, the authority shall contribute 31.5 per cent of the authority’s operating budget; (ii) in fiscal year 2015, the authority shall contribute 33 per cent of the authority’s operating budget; (iii) in fiscal year 2016, the authority shall contribute 33.25 per cent of the authority’s operating budget; (iv) in fiscal year 2017, the authority shall contribute 32.75 per cent of the authority’s operating budget; and (v) in fiscal year 2018, the authority shall contribute 34 per cent of the authority’s operating budget. The salary, benefits or level of compensation of any department employee in a major policymaking position, as defined by section 1 of chapter 268B of the General Laws, shall not be increased if the department is not exceeding the benchmarks provided for in this section.

(b) The benchmarks in subsection (a) may be achieved through increasing non-fare revenues, increasing total fare revenues through ridership growth, increasing fare levels while accounting for potential loss of ridership from fare increases or from savings to the authority’s operating budget; provided, however, that the authority shall submit a preliminary report of savings to the operating budget by October 1 of each fiscal year and a final report of savings to the operating budget by January 1 of each fiscal year. Those preliminary and final reports of savings shall be submitted to the house and senate committees on ways and means and the joint committee on transportation. Nothing in this section shall be construed to relieve the authority of any legal requirements it shall fulfill under state or federal law prior to increasing fares or eliminating service.

(c) The revenue generated to meet the benchmarks in subsection (a) may be derived from any funds collected by the authority through fees and fares and any other funds directly collected by the authority; provided, however, that such revenue shall not include funds contributed to the Massachusetts Bay Transportation Authority State and Local Contribution Fund under section 35T of chapter 10 of the General Laws.

(d) The authority may achieve these benchmarks by restraining operating costs and increasing ridership prior to proposing a fare increase. The authority shall, in the authority’s budget plan, regularly create and update 5-year pro forma financials and, as part of the budget planning process, may plan for small, regular fare increases of not more than 5 per cent for all modes and populations. The authority shall not increase fares at intervals of less than 24 months or at a rate greater than 5 per cent. The authority shall not implement any fare increase unless it is in strict compliance with section 5 of chapter 161A of the General Laws. If the authority’s budget plan does not achieve a required benchmark within a given budget year, but is within 0.5 percentage points of the benchmark, and fares have been increased within the previous budget year, the authority shall increase the subsequent year’s benchmark by an equivalent amount and make needed adjustments to the operating budget and fare levels in the subsequent budget year.

SECTION53A. (a) Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall, not later than January 1, 2014, issue a request for proposals to sell, license or rent naming or sponsorship rights for all subway, bus or commuter rail stations or other assets operated and owned by the authority. A request for proposals shall be for a specified term, renewable at the sole discretion of the authority.

(b) The secretary of transportation shall direct all revenues generated by the Massachusetts Bay Transportation Authority under this section to be used on mass transit capital expansion projects.

SECTION 54. (a) The Massachusetts Department of Transportation shall use the revenues generated under this act to comply with the second sentence of section 15 of chapter 6C of the General Laws requiring the salaries and benefits of employees of the department to be classified and funded as operating expenditures. The department shall comply with said section 15 of said chapter 6C not later than June 30, 2016.

(b) The secretary of transportation, in consultation with the secretary of administration and finance, shall file a report regarding the department’s compliance with the second sentence of said section 15 of said chapter 6C not later than August 1, 2013. The report shall include, but not be limited to: (1) the number of employees with salaries funded by capital expenditures in fiscal year 2013, specifying each employee’s salary, job classification and department; (2) the total cost of employee salaries charged to capital expenditures in fiscal year 2013, specifying each employee’s salary, job classification and department; (3) the number of employees and total cost of employee salaries that the department estimates will be moved from capital expenditures to operating expenditures in fiscal years 2014, 2015 and 2016, specifying each employee’s salary, job classification and department; and (4) a strategy to dedicate a portion of the funds made available through compliance with this section to projects that are included in the authority's 5-year rolling capital investment plan as published in accordance with section 5 of chapter 161A of the General Laws. The report shall be filed with the joint committee on transportation, the house and senate committees on bonding, capital expenditures and state assets and the house and senate committees on ways and means.

(c) The department shall use as necessary the extra bonding capacity or any portion thereof created by the removal of personnel costs from the capital budget under this section to fund the capital costs associated with planning, design, permitting, engineering and construction of transportation projects.

SECTION 55. There shall be a value capture commission consisting of the following 7 members: the secretary of transportation or a designee, who shall serve as chair; the secretary of administration and finance or a designee; and 5 members who shall be appointed by the governor, 2 of whom shall be representatives of business associations; 1 of whom shall represent organized labor; 1 of whom shall be a representative of the Massachusetts Municipal Association; and 1 of whom shall be a representative of a regional planning agency. The commission shall review and evaluate the policies and best practices of other jurisdictions used to obtain benefits from the increased value of adjacent properties as a result of public infrastructure projects or “value capture” and the current policies and mechanisms available within the commonwealth relative to value capture. The commission shall report to the general court on the effectiveness of the commonwealth’s current value capture policies and recommend whether certain policies from other jurisdictions should be implemented as part of the comprehensive state transportation plan, required under section 11 of chapter 6C of the General Laws. A report of the commission’s findings shall be filed with the clerks of the house of representatives and senate not later than March 1, 2014.

SECTION 56. Corporations that filed as a utility corporation under section 52A of chapter 63 of the General Laws in the taxable year ending on or before December 31, 2013 shall not be eligible to deduct from net income, the net operating losses described in paragraph 5 of section 30 of said chapter 63 for losses sustained prior to the taxable year beginning on or after January 1, 2014.

SECTION 57. Nothing in section 22 shall restrict the authority of the commissioner of revenue under subsection (j) of section 38 of chapter 63 of the General Laws, nor shall it affect the continuing validity or application of regulations adopted under subsection (f) of said section 38 of said chapter 63 in effect as of the effective date of this act.

SECTION 58. Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall expend funds on capital investment projects, including repairs to the authority’s capital infrastructure necessary to meet or exceed the state of good repair asset rating, established under the federal Transit Economic Requirements Model and required for the federal New Starts grant application, the green line extension project and the south coast rail project, which shall be included in the authority's 5-year rolling capital investment plan as published under section 5 of chapter 161A of the General Laws.

SECTION 58A. Notwithstanding any general or special law to the contrary, the inspector general shall conduct an investigation of the policies and procedures regarding enforcement of fare collection for the Massachusetts Bay Transportation Authority. The inspector general shall submit a report to the house and senate committees on ways and means on the results of the investigation and any recommended changes to the system to further prevent and detect fare evasion not later than December 1, 2013.

SECTION 58B. The Massachusetts Department of Transportation, in order to ensure its transportation investment in capital projects is both geographically and modally equitable, shall publish on its website the information required in the annual report under section 28 of chapter 6C of the General Laws; provided, that the information shall also be updated not less frequently than each quarter with such updates reported on said website.

SECTION 58C. Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall conduct a survey of the 23 companies that submitted statements of interest to the current request for proposals to operate the commuter rail but did not submit a proposal to ascertain why they opted out of the bidding process.

SECTION 58D. Within 90 days after the effective date of this act, the Massachusetts Department of Transportation shall provide to the joint committee on transportation and the house and senate committees on ways and means a plan to implement a proposed fee structure for collecting tolls for transit over the turnpike between interchange 1 in the town of West Stockbridge and interchange 6 in the city of Springfield at interstate highway route 291, inclusive, which shall include, but not be limited to, the proposed fees, assumptions used to set the fees and a timeline to implement collection of the fees.

SECTION 58E. The commissioner of revenue, in consultation with the commissioner of energy resources, shall file a report not later than December 1, 2013, regarding any statutory, regulatory and administrative changes, arrangements and calculations that may be required in the event the commonwealth’s taxation of sales of gasoline is broadened to include taxation of sales of all carbon-based fuels. The report shall be filed with the joint committee on revenue, the joint committee on environment, natural resources and agriculture and the senate and house committees on ways and means.

SECTION 58F. The secretary of the department of transportation shall study the feasibility of establishing one or more facilities for the purposes of overhaul and other major repair, manufacture or assembly, installation and upgrade of mass transit vehicles in order to ensure that safe, modern and efficient vehicles are in service in adequate numbers to meet the needs of citizens of the commonwealth. The secretary shall file a report on the findings with the governor, the joint committee on transportation and the house and senate committees on ways and means by June 30, 2014. The study shall consider the possibility of utilizing existing funding sources to direct maintenance and repair projects to existing facilities within the commonwealth and shall estimate the funding needed to create appropriate facilities for manufacture, assembly or major overhaul projects. The report shall include an estimate of the number of jobs related to creating the infrastructure necessary to perform this work in the commonwealth, the number of permanent jobs needed to create and maintain mass transit vehicles in the commonwealth and the ancillary economic impact of operating such facilities within the commonwealth.

SECTION 58G. Notwithstanding any general or special law to the contrary, the Massachusetts Department of Transportation shall conduct a feasibility study of advertising along bridge overpasses throughout the commonwealth’s highway system, as permitted within federal rules and regulations. The study shall include an analysis of which routes would be most appropriate for advertising, the amount of revenue that may be generated from such a policy and any rules or regulations which may restrict or prohibit such a policy. A report of the feasibility study shall be filed with the clerks of the senate and house of representatives, the house and senate chairs of the joint committee on transportation and the house and senate committees on ways and means not later than December 31, 2013.

SECTION 58H. Notwithstanding any general or special law to the contrary, each regional transit authority established under chapter 161B of the General Laws shall develop a comprehensive regional transit plan in consultation with the appropriate regional planning agency, the Massachusetts Department of Transportation, local employers and the business associations, labor organizations and transit authority riders. The plan shall include, but not be limited to: (1) a comprehensive assessment of transit services; (2) a thorough examination of the ridership trends for each line and service provided by the regional transit authority; (3) a performance analysis of existing services; (4) the development and evaluation of alternative service scenarios; (5) the development of a recommendation to better align service with local and regional demand; (6) the commonwealth’s environmental policies; (7) fare rates and collection methods; (8) the region’s job creation goals and employment needs; and (9) a determination of whether the regional transit authority’s service is deployed in the most effective way possible to accommodate the transit needs of the region’s workforce. The development of the plan shall include public hearings in different regions of the commonwealth and the opportunity to comment on a draft report.

SECTION 58I. There shall be a tax fairness commission to study the federal, state and local tax laws applicable to residents of the commonwealth. The commission shall review and evaluate the equity of historical tax rates and methods in relation to the changing income and wealth of residents of the commonwealth since 1990. The commission shall examine the experiences and policy efforts of other states relating to tax fairness.

The commission shall file a report with the clerks of the senate and house of representatives not later than March 1, 2014. The report shall include, but not be limited to: (i) the total amount of taxes currently paid by individuals at various income levels; (ii) the effects that making changes to tax laws would have on individuals of all income levels; (iii) the changes in revenue collected by the commonwealth as a result of tax law revisions; (iv) the adequacy of revenue generated by individuals, businesses and any other tax types; (v) tax rates necessary to fund investment in public infrastructure; (vi) tax rates necessary to promote prosperity for all residents; (vii) restrictions on tax changes under Article XLIV of the Amendments to the constitution of the commonwealth; (viii) recommendations for changes in laws to achieve an equitable and adequate system of taxation; and (ix) the best practices of other states.

The commission shall consist of the secretary of administration and finance or the secretary’s designee; the minority leader of the house of representatives or a designee; the minority leader of the senate or a designee; the chairs of the house and senate committees on ways and means or the chair’s designees; the house and senate chairs of the joint committee on revenue or the chairs’ designees, who shall serve as co-chairs of the commission; a representative of the Massachusetts Budget and Policy Center; a representative of the Massachusetts Taxpayers Foundation; a representative of the Dukakis Center for Urban and Regional Policy; a representative of the Pioneer Institute; and 4 members appointed by the governor, 1 of whom shall represent labor and 2 of whom shall have expertise in economics or tax policy.

SECTION 58J. If in fiscal years 2019 and 2020 the amount credited to the Commonwealth Transportation Fund under subsection (a) of section 2ZZZ of chapter 29 of the General Laws from receipts under chapters 21J, 64A, 64E and 64F of the General Laws and the monies received from the sales of motor vehicles under subsection (c) of said section 2ZZZ of said chapter 29 does not exceed the amount credited to the fund in the previous fiscal year by 8 per cent or more, then the comptroller shall transfer from the General Fund to the Commonwealth Transportation Fund an amount equal to the amount credited in the previous fiscal year plus 8 per cent. For fiscal years after 2020, the amount credited to the Commonwealth Transportation Fund under subsection (a) of section 2ZZZ of chapter 29 of the General Laws from receipts under chapters 21J, 64A, 64E and 64F of the General Laws and the monies received from the sales of motor vehicles under subsection (c) of said section 2ZZZ of said chapter 29 shall exceed the amount credited in the previous fiscal year by not less than the percentage growth in the consumer price index over the previous calendar year as defined in section 1 of the Internal Revenue Code.

SECTION 58K. Notwithstanding any general or special law to the contrary, the secretary of transportation and the general manager of the Massachusetts Bay Transportation Authority shall meet with the secretary of administration and finance and the house and senate committees on ways and means on the fiscal status of the Massachusetts Department of Transportation and the Massachusetts Bay Transportation Authority in January and July of each year. The first meeting under this section shall occur not later than December 31, 2013.

Not less than 15 days prior to each meeting, the secretary of transportation shall submit a report to the secretary of administration and finance and the house and senate committees on ways and means detailing: (i) year-to-date revenues collected, projected revenues and expenditures for the current fiscal year; (ii) projected revenues and expenditures for the next 5 fiscal years; (iii) changes in revenue and expenditure projections from the previous semiannual report; (iv) reasons for any changes from previous projections; (v) progress made toward achieving revenue and savings targets set for fiscal years 2017 and 2018; and (vi) a plan detailing how the fiscal year 2017 and fiscal year 2018 targets will be achieved.

In order to comply with clause (vi), the report submitted prior to the July 2015 meeting shall identify any potential changes to the fare and fee structure necessary to achieve the benchmarks set forth in sections 52 and 53 for fiscal year 2017 and fiscal year 2018. If the report proposes to increase the fare and fee structure by 5 per cent, the report shall include an estimate of additional support from the Commonwealth Transportation Fund or other revenue and saving initiatives necessary to limit increases to not more than 5 per cent every 24 months.

SECTION 58L. (a) The secretary of transportation shall conduct a study and issue a report on the taxicab market in the commonwealth. The study shall include, but not be limited to, an analysis of the level of competition in the industry, any unserved or underserved needs and an evaluation of a state licensing alternative to stimulate competition, better serve the needs of customers and employees in the market and to address regional and environmental concerns. The report, together with any legislative recommendations, shall be filed electronically with the clerks of the senate and house of representatives and the joint committee on transportation not later than August 15, 2013.

SECTION 58M. Notwithstanding any general or special law to the contrary, the director of the internal special audit unit shall conduct a comprehensive investigation of the financial impact of chapter 25 of the acts of 2009. The investigation shall include a review of total savings to date, anticipated future savings, an analysis of how the savings compare to projected savings at the time of the effective date of the act and recommendations to increase future savings and efficiencies. The director shall publish its findings on the department’s website and submit an electronic copy of the report to the clerks of the senate and house of representatives, the house and senate committees on ways and means and the joint committee on transportation not later than November 1, 2013.

SECTION 58N. Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall, as mandated by section 14 of chapter 132 of the acts of 2012, issue a report on revenues collected through the use of sponsorship agreements. The report shall include, but not be limited to, an analysis of revenues collected, offers to sponsor which have been declined and attempts to increase and promote sponsorship opportunities. The report and recommendations shall be filed with the clerks of the house of representatives and the senate and to the house and senate committees on ways and means and the joint committee on transportation not later than August 30, 2013.

SECTION 58O. Notwithstanding any general or special law to the contrary, the secretary of transportation shall issue a 5-year transportation plan not less than 180 days after the effective date of this act. The plan shall prioritize projects to provide for the reduction in the number of structurally-deficient bridges, to reduce congestion attributable to disrepair, to improve urban and rural primary pavement conditions, to improve interstate pavement conditions, to increase maintenance disbursements per mile to the level necessary to achieve and maintain a state of good repair, to move bus and transit assets into a state of good repair, to improve track and signalization conditions and to otherwise eliminate the backlog on transit, road and bridge projects. The plan shall not include any capital expansion projects and shall be published on the department’s website and filed electronically with the clerks of the senate and house of representatives and the joint committee on transportation.

SECTION 58P. Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall create a pilot program at 3 high-volume parking station facilities dedicating not more than 10 per cent of the available parking to customers willing to pay an increased premium for a reserved parking spot that is guaranteed to be available to them if they arrive at the spot before a certain hour, as determined by the authority; provided, however, that all net proceeds received as a result of the pilot program shall be dedicated to the authority.

SECTION 58Q. Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall issue a request for proposals from business, civic and nonprofit entities to enter into sponsorship agreements for providing transportation services beyond the current hours of operation.

SECTION 58R. Notwithstanding any general or special law to the contrary, not less than $20,000,000 may be transferred, under section 2E of the general appropriations act for fiscal year 2014, to the Massachusetts Department of Transportation Trust Fund, established in section 4 of chapter 6C of the General Laws, to: (a) support the debt service related to increased distributions for local road and bridge projects in fiscal year 2014; or (b) support the debt service related to other transportation capital improvement projects.

SECTION 58S. Notwithstanding any general or special law to the contrary, the comptroller shall transfer $75,000,000 from the General Fund to the Commonwealth Transportation Fund, established in section 2ZZZ of chapter 29 of the General Laws, not later than July 1, 2014 and shall transfer $56,000,000 from the General Fund to the Commonwealth Transportation Fund, established in said section 2ZZZ of said chapter 29, not later than July 1, 2015.

SECTION 60. Sections 8 and 39 shall take effect on July 1, 2015.

SECTION 61. Sections 8B and 10 to 12, inclusive, shall take effect on July 1, 2014.

SECTION 62. Sections 13, 28, 30 to 34, inclusive, and 51 shall take effect on July 1, 2013.

SECTION 63. Sections 14 to 22, inclusive, 24 to 27, inclusive, 42, 43, 56 and 57 shall take effect on January 1, 2014 and shall be effective for tax years beginning on or after January 1, 2014.

SECTION 64. Sections 23, 46 and 47 shall take effect on December 31, 2018.

SECTION 65. Sections 9A and 29 shall take effect on January 1, 2015.