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HOUSE DOCKET, NO.                 FILED ON: 4/9/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3415

House bill No. 3382, as changed by the House committee on Bills in the Third Reading, and as amended and passed to be engrossed by the House.  April 8, 2013.


The Commonwealth of Massachusetts
 

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In the Year Two Thousand Thirteen

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An Act relative to transportation finance.
 

              Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately make available monies for transportation financing in the fiscal year beginning July 1, 2013, and to make certain changes in law, therefore, it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
 

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

              SECTION 1. To provide for certain unanticipated obligations of the commonwealth, and to meet certain requirements of law, for fiscal year 2014 the sums set forth in section 2 are hereby appropriated for the several purposes and subject to the conditions specified in said section 2 and subject to laws regulating the disbursement of public funds. For the purpose of making available in fiscal year 2014 balances of appropriations which otherwise would revert on June 30, 2013, the unexpended balances of the maintenance appropriations listed below, not to exceed the amount specified below for each item, are hereby re-appropriated for the purposes of and subject to the conditions stated for the corresponding item in section 2 of the general appropriation act for fiscal year 2014. Amounts in this section are re-appropriated from the fund or funds designated for the corresponding item in section 2 of the general appropriation act; provided, however, that for items which do not appear in section 2 of the general appropriation act, the amounts in this section are re-appropriated from the fund or funds designated for the corresponding item in section 2 of this act or in prior appropriation acts.

              SECTION 2.

              1595-6367              For the transportation performance and asset management advisory council to assist with the development of a statewide integrated performance and asset management system pursuant to sections 12 and 12A of chapter 6C of the General Laws……………………………………………………………..…..$100,000

              SECTION 3. Clause (18) of section 3 of chapter 6C of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out the words “the department shall”, in line 73, and inserting in place thereof the following words:- prior to revising the toll structure, the department shall publish a report on its website that sets forth the fiscal alternatives that were examined in lieu of revising the toll structure and detail the reasons why such alternatives were not viable fiscal options, the department shall then convene at least 2 public hearings, each to be held in a community within the turnpike corridor, at least 30 days prior to the effective date of any proposed change in toll structure on the turnpike and shall allow for a 1 week comment period, after each such hearing, during which written testimony and comments shall be accepted; provided, further, that the examination of alternatives shall include an assessment of whether a revision is necessary before the implementation of a system of fair and equitable tolling across the commonwealth pursuant to a statewide tolling plan developed by the department.

              SECTION 4. Section 4 of said chapter 6C, as so appearing, is hereby amended by inserting after the word “facilities”, in line 46, the following words:- ; provided that no less than $100,000,000 shall annually be spent on repairs and improvements to municipal ways and bridges.

              SECTION 4A.  Section 11 of chapter 6C of the General Laws, as so appearing, is hereby amended by striking the second sentence and inserting in place thereof the following:-

              The plan shall be consistent with the project selection criteria as established by section 11B.

              SECTION 5. Said chapter 6C is hereby further amended by inserting after section 11 the following sections:-

              Section 11A.  The secretary shall, after conducting a series of public hearings, prepare and publish on the website of the department a comprehensive long term capital plan for the 10 succeeding fiscal years. The plan shall be developed consistent with projected federal, state and local funds and shall identify sources and uses for those funds.  The plan shall also incorporate scenario analysis planning that accounts for future spending needs and life-cycle financing.  The plan shall also set forth estimates and costs for the optimal long-term preservation of each major transportation system component, including the need for long term comprehensive system management, maintenance and operations. It shall also include, but not be limited to, projected construction costs, projected maintenance costs, projected operational costs, and clearly defined sources of funding, including projected revenue, to pay for each individual project identified in the 10 year capital plan.

              Section 11B. (a) In order to provide a fair and transparent effort to maintain and repair the transportation assets within the commonwealth, there shall be a project selection advisory council charged with developing a uniform, project selection criteria to be used in the development of a comprehensive state transportation plan, as required by section 11.

              (b)  The council shall consist of the following members: the secretary or his designee, who shall serve as chair; 3 members appointed by the governor, one of whom shall have practical experience in transportation planning and policy, one of whom shall be a registered civil engineer with at least 10 years experience, and one of whom shall be a member of a regional planning agency; 1 member appointed by the president of the senate, who shall be an expert in the field of transportation finance; 1 member appointed by the minority leader of the senate, who shall be a member of the construction industry; 1 member appointed by the speaker of the house of representatives, who shall be a representative of a transportation consumer organization or other public interest organization; 1 member appointed by the minority leader of the house of representatives, who shall be a member of a business association; and a representative of the Massachusetts Municipal Association.  The department shall provide the council with qualified administrative staff and the regional planning agencies may provide qualified technical assistance to the council.  The council shall hold its first meeting no later January 1, 2014 and all meetings of the council shall comply with chapter 30A.

              (c) The project selection criteria developed pursuant to this section shall include a project priority formula or other data-driven process that includes, but shall not be limited to, the following factors:  engineering factors; condition of existing assets; safety; economic impact; regional priorities; and the anticipated cost of the project.  The council may divide projects into several categories, including but not limited to: preservation and maintenance of existing assets; modernization of existing assets that improve safety; expansion projects that add to the existing system; and local construction.  The factors chosen by the council may be weighted to prioritize specific factors, and such weighting of factors may differ by project category, as determined by the council.

              (d)  The council shall conduct at least 6 public hearings, one in each of the department’s highway districts, prior to the final approve of the project selection criteria.  The council shall give interested persons an opportunity to submit their views orally and in writing, and the department may create and maintain a website to allow members of the public to submit comments electronically and review comments submitted by others.  The council shall give notice of each public hearing by publishing a notice in a newspaper of general circulation in the highway district in which the hearing is to be located in each of two successive weeks, the first publication to be at least fourteen days before the day of the hearing, and, if feasible, by posting a notice in a conspicuous place in the cities or towns with the highway district for at least the fourteen consecutive days immediately prior to the day of the hearing.

              (e) Final approval of the project selection criteria shall be completed by December 31, 2014, and copies of said criteria shall be submitted to the house and senate committees on ways and means and the joint committee on transportation.

              SECTION 6. Said chapter 6C is hereby further amended by inserting after section 12the following section:-

              Section 12A. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

              “Performance and asset management system”, the permanent, comprehensive and integrated system, developed by the department pursuant to section 12, that requires the operation, maintenance, upgrade and expansion of all transportation assets, that are cost-effectively administered throughout their lifecycle, by continuously updating physical inventory, condition assessments and performance information. The system shall establish goals, metrics and outcomes to measure transportation performance pursuant to section 6.

              “Council”, the transportation performance and asset management advisory council created under this section.

              “Local transportation agency”, the city, town, or other governmental entity’s department of transportation or public works that has jurisdiction over the transportation assets in that city, town or entity and that receives state or federal funding.

              “Transportation assets”, capital assets, including but not limited to, any city, town, county or state highway, road, street, pavement, parkway, facilities, structures, construction and maintenance equipment, vehicles, real estate, materials, corporate data and information, equipment, rolling stock, infrastructure and facilities for use in public transportation; ground and water transportation facilities and equipment; and any rights-of-way, bridges, tunnels, railroad highway crossings, drainage structures, signs and guardrails.

              (b) In order to provide a coordinated, unified effort on the stewardship and performance of transportation assets within the commonwealth, there shall be a transportation performance and asset management advisory council charged with advising the board on the creation of a performance and asset management system pursuant to section 12.

              The council shall consist of the secretary, who shall serve as chair, and the following members as appointed by the secretary: 2 members of the board, 2 members from the Massachusetts Municipal Association, 2 members from different regional planning agencies, 1 member from the construction industry, and 1 member from a business association. Each member shall be appointed for a term of 3 years. The council may appoint a technical assistance panel, to serve in an advisory, non-binding capacity, comprised of transportation planning, construction and engineering associations. The council shall determine the scope of research and assign projects to the technical assistance panel as necessary in the development of statewide policies. The department shall provide the council with qualified administrative staff and the regional planning agencies may provide qualified technical assistance to the council.

              (c) The council shall review the performance measurement criteria required for the performance and asset management system pursuant to subsection (b) of section 6 and the comprehensive long term capital plan required by section 11A. The council shall make a report to the board on the following: (i) improvements that can be made to ensure comprehensive multi-modal transportation planning and analysis, (ii) additional performance metrics, such as enterprise-wide measures across modes, contract management, procurement, project controls, financials, organizational and prioritization outcomes, and (iii) economic development impacts, and benchmarks against performance by other states and countries. The council shall make recommendations on the processes and tools needed to implement a strategy for the performance and asset management system.

              (d) The council shall present minimum standards and guidelines delineating standardized data and information that shall be contained in the performance and asset management system, including the complete integration of transit, highway, aeronautics, water and port assets, and the possible inclusion of municipal roadways. The minimum standards shall include: (i) the keeping of accurate and uniform records of real transportation assets, (ii) the mileage and condition of each road and bridge system under various jurisdictions, (iii) the receipts and disbursements of road, street and transit funds, (iv) a multiyear compilation of projects anticipated to be contracted for or by the department or local transportation agencies that are funded in whole or in part with state or federal funds, and (v) any other categories established by the council.  The council shall recognize the differences in local, regional or other agencies’ circumstances and nothing in this section shall prohibit a local transportation agency or other governmental agency from using a separate asset management process on any eligible system. All quality control standards and protocols shall, at a minimum, be consistent with any existing federal requirements and regulations and existing government accounting standards.

              (e) On or before October 1, the council shall provide an annual progress report on the performance and asset management system to the house and senate committees on ways and means and the joint committee on transportation.

              SECTION 7.  Said chapter 6C is hereby further amended by inserting after section 34 the following section:-

              Section 34A. (a)  The department shall develop, operate and maintain a searchable database, available on the department’s website and accessible to the public at no cost, which shall contain pertinent information regarding all construction projects for which the department has expended funds during the preceding 5 fiscal years. 

              (b)  The following information, without limitation, shall be made available and made searchable with respect to each project identified in subsection (a):

              (i) location and street name

              (ii) a brief description of the work that has been or will be performed;

              (iii) 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;

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

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

              (vi) total projected and actual cost;

              (vii) projected and actual start and completion dates;

              (viii) projected and actual milestone dates and details;

              (ix) 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

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

              (c) Any project identified in subsection (a) totaling $1,000,000 or more shall be assigned its own web page.  In addition to the information required by subsection (b), the project web page shall contain links to pertinent project documents, including without limitation any work progress reports, that are subject to disclosure pursuant to section 10 of chapter 66. 

              (d) Each project web page established pursuant to subsection (c) shall be updated at regular intervals, but in no event less than once every 7 days.

              (e) The department shall devise and make accessible to the public by means of the department’s website all of the performance metrics maintained by the department’s office of performance management and innovation.  These metrics shall include at least those metrics included in the report produced by the transportation performance and asset management advisory council.  Such metrics shall be updated monthly and shall be made available in a format that allows for historical comparison of each metric. 

              SECTION 8. Section 39 of said chapter 6C, as appearing in the 2010 Official Edition, is hereby amended by adding the following subsection:-

              (c) The administrator shall establish within the division an internal project controls unit to oversee all statewide program projects in line with the department’s performance and asset management system. The administrator shall establish and implement project controls to ensure that projects carried out pursuant to this chapter shall be completed in the most efficient possible manner. The internal project controls unit shall be subject to section 29A of chapter 29.

              SECTION 9. Section 2ZZZ of chapter 29 of the General Laws is hereby amended by striking out subsection (c), as appearing in section 112 of chapter 165 of the acts of 2012, and inserting in place thereof the following subsection:-

              (c) In addition to those revenues credited to the fund pursuant to subsection (a), there shall be credited to the fund, after distribution to the funds established in sections 35T and 35BB of chapter 10,  the net of monies received by the commonwealth from the  imposition of certain taxes levied pursuant to sections 3, 25 and 26 of chapter 64H and sections 4, 26 and 27 of chapter 64I as excises upon the sale and use at retail of tangible property or of services, and upon the storage, use or other consumption of tangible property, or of services, including interest thereon or penalties, but not including 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.

              SECTION 10. Clause Sixteenth of 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 company subject to chapter 166, or (e).

              SECTION 11. Said clause Sixteenth of 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 11A. Said clause sixteenth of section 5 of chapter 59 of the General Laws, as so appearing, is hereby further amended by inserting, in line 255, after the word “corporation” the following words:- or a telephone corporation subject to chapter 166.

              SECTION 12. 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 pursuant to subsection (f) of section 38. For purposes of the receipts sourced pursuant to this paragraph, paragraph (xiii) of subsection (d) shall not apply.

              SECTION 13. Section 38 of said chapter 63, as amended by section 31 of chapter 194 of the acts of 2011, is hereby amended by striking out subsection (f) and inserting in place thereof the following subsection:-

              (f)(1) As used in this subsection, the following words shall, unless specifically stated otherwise, have the following meanings:-

              "Sales", 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.

              "Security", 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

              (2) 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. Sales of tangible personal property are in this commonwealth if: (i) the property is delivered or shipped to a purchaser within this commonwealth regardless of the free on board point or other conditions of the sale; or (ii) 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 (i) and (ii), shall include the United States government.

              (3) 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 the commonwealth and the sale is thus assigned to the commonwealth for the purpose of this section: (i) in the case of sale, rental, lease or license of real property, if and to the extent the property is located in this commonwealth; (ii) in the case of rental, lease or license of tangible personal property, if and to the extent the property is located in this commonwealth; (iii) in the case of sale of a service, if and to the extent the service is delivered to a location in this commonwealth; (iv) 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; (v) in the case of the sale of intangible property, other than as referenced in clause (iv), 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 (iv) is excluded from the numerator and the denominator of the sales factor.

              (4) For the purposes of this subsection: (i) 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; (ii) 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; (iii) 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; (iv) 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 the commonwealth; (v) in the case of the 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" are measured by the gain from the transaction; (vi) in the case of a sale or deemed sale of a business, the term "sales" does not include receipts from the sale of the business "goodwill" or similar intangible value, including, without limitation, "going concern value" and "workforce in place"; (vii) to the extent authorized pursuant to 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 (viii) 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.

              (5) 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 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.  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.

              (6) The commissioner shall adopt regulations to implement this subsection. This subsection shall not affect the commissioner's authority under subsection (j).

              SECTION 14. Paragraph (4) of subsection (f) of said section 38 of said chapter 63, as appearing in section 13, is hereby further amended by striking out clause (vii).

              SECTION 15. Section 52A of said chapter 63 is hereby repealed.

              SECTION 16. Section 68C of said chapter 63, as appearing in the 2010 Official Edition, is hereby amended by striking out clause (3).

              SECTION 17. 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 18. Said section 1 of said chapter 64A, as so appearing, is hereby amended by inserting after the word “ gallon”, in line 102, the following words:- , annually adjusted  by the Consumer Price Index as defined in section 1 of the federal Internal Revenue Code.

              SECTION 18A. Chapter 64A of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting, after section 7A, the following section:—

              Section 7B. The sale of fuel to a city or town which having consumed the same for any municipal purpose shall be exempt from the excise established by this chapter.

              SECTION 18B.  Notwithstanding any special or general law to the contrary, the provisions section 18A shall not take effect until such time as (i) the secretary of administration and finance, in consultation with the secretary of transportation, furnishes an analysis on the fiscal impacts of providing such an exemption, which shall include a cost-benefit analysis, available revenues to the Massachusetts department of transportation and an examination of how the exemption aligns with the recommendations and principles adopted by the tax expenditure commission; and (ii) legislation necessary to carry out the recommendations in the report has been filed and enacted pursuant to Part 2, Chap. 1, Sec. 1, Art. II of the Constitution.

              SECTION 19. The first paragraph of section 6 of chapter 64C of the General Laws, as so appearing, is hereby amended by striking out the first and second sentences and inserting in place thereof the following 2 sentences:- Every licensee who is required to file a return under section 16 of chapter 62C shall, at the time of filing such return, pay to the commissioner an excise equal to 150 1/2 mills plus any amount by which the federal excise tax on cigarettes is less than 8 mills for each cigarette so sold during the calendar month covered by the return;  provided, however, thatcigarettes with respect to which the excise under this section has once been imposed and has not been refunded, if paid, shall not be subject upon a subsequent sale to the excise imposed by this section. Each unclassified acquirer shall, at the time of filing a return required by section 16 of chapter 62C, pay to the commissioner an excise equal to 150 1/2 mills plus any amount by which the federal excise tax on cigarettes is less than 8 mills for each cigarette so imported or acquired and held for sale or consumption, and cigarettes, with respect to which such excise has been imposed and has not been refunded, if paid, shall not be subject, when subsequently sold, to any further excise under this section.

              SECTION 20. Said section 6 of said chapter 64C, as so appearing, is hereby further amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

              Notwithstanding the other provisions of this section, the excise imposed by this section shall equal 160 per cent of the price paid by such licensee or unclassified acquirer to purchase smokeless tobacco so sold, imported, or acquired.

              SECTION 22. Section 7B of said chapter 64C, as appearing in the 2010 Official Edition, is hereby amended by striking out, in line 40, the figure "30" and inserting in place thereof the following figure:- 40.

              SECTION 23. 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 24. Said section 1 of said chapter 64H, as so appearing, is hereby 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 25.  The second paragraph of section 2 of chapter 465 of the acts of 1956 is hereby amended by striking out the first sentence and inserting in pace thereof the following five sentences:- The authority shall consist of 13 members; 7 of whom shall be appointed by

              the governor by and with the advice and consent of the council; 3 of whom shall be

              appointed by the advisory board according to the by-laws of said board; and 3 of whom shall be appointed by the mayor of the city of Boston. Those members of the authority, having been

              duly appointed by the governor prior to January 1, 2012, shall continue until such time as their

              designated term expires; at which time the governor shall appoint a replacement who shall serve

              a term of 7 years. Those members of the authority appointed by the advisory board and

              mayor of the city of Boston shall be appointed as follows: said advisory board and mayor shall

              each appoint 3 initial members, 1 of whom shall serve for a term of 5 years, one of

              whom shall serve for a term of 6 years, and one of whom shall be serve for a term of 7 years. Upon expiration of the terms of all initial appointees, the advisory board or mayor of the

              city of Boston, whichever applicable, shall appoint a replacement whose term shall be 7

              years. Thereafter all members shall be appointed for 7 year terms in accordance with this

              act.

              SECTION 26.  Said chapter 465 is hereby further amended by striking out section 36, added by section 128 of chapter 25 of the acts of 2009, and inserting in place thereof the following section:-

              Section 36. (a) There shall be an advisory board to the authority consisting of a voting

              representative of each of the following cities and towns: Braintree, Bedford, Brookline,

              Cambridge, Chelsea, Cohasset, Concord, Everett, Hingham, Hull, Lexington, Lincoln,

              Malden, Melrose, Medford, Milton, Nahant, Quincy, Revere, Somerville, Weymouth, and

              Winthrop; provided further, that the city of Boston shall have 8 voting representatives,

              1 of whom shall be a resident of the Beacon Hill section of the city of Boston, 1 of

              whom shall be a resident of the South End section of the city of Boston, 1 of whom shall

              be a resident of the East Boston section of the city of Boston, 1 of whom shall be a resident

              of the Dorchester or Roxbury sections of the city of Boston,1 of whom shall be a resident

              of the Charlestown section of the city of Boston, 1 of whom shall be a resident of the South Boston section of the city of Boston, 1 of whom shall be a resident of the Roslindale or Hyde Park sections of the city of Boston, and 1 of whom shall be a resident of the West Roxbury or Jamaica Plain sections of the city of Boston. The members of the advisory board shall

              consist of the chief executive officer thereof; provided however, that any chief executive

              officer, by writing filed with the authority, may appoint a permanent designee to serve in his

              stead as a member of said advisory board until the expiration of each term of office of the

              designating chief executive officer or the earlier vacancy of the office of the designating

              chief executive officer; provided further, that if the chief executive officer of the city of

              Boston opts to serve as the representative for the city of Boston to the advisory board, he

              shall be deemed to represent the forgoing sections of the city of Boston; provided further that

              a permanent designee shall be versed in at least 1 of the following 3 disciplines:

              environmental affairs, community and airport relations or public health. For the purpose of this

              section, the term "chief executive officer" shall mean the person designated as the chief

              executive officer under the provisions of a local charter or laws having the force of a charter,

              and otherwise the mayor in every city and the chairman of the board of selectmen or

              president of the town council, as the case may be, in every town.

              (b) Except as otherwise prescribed in this section, each voting representative shall cast

              1 vote on the advisory board. Each voting representative of the several sections of the city

              of Boston as listed in paragraph (a) shall cast 1 vote. Wherein the chief executive officer

              of the city of Boston shall opt to serve as the representative to the advisory board for the city

              of Boston, he shall cast 8 votes.

              (c) Said advisory board may act at a regular periodic meeting called in accordance with

              its by-laws; or at a special meeting called by the authority; or if a majority of board members

              choose to do so. Except as specially provided in paragraph (f), a quorum of the advisory

              board shall consist of a simple majority of voting members present, and the advisory board may act, except as otherwise provided in paragraph (f), by affirmative casting of a majority

              of the votes represented in the quorum. The advisory board shall be deemed to be a

              governing body for the purposes of, and shall be subject to, sections 18 to 25, inclusive, of chapter 30A of the General Laws.

              (d) For the conduct of its business, said advisory board shall adopt and may revise and

              amend by-laws. Said advisory board shall annually elect a chairperson, a vice-chairperson, a

              secretary and such officers as said advisory board might determine. Each officer may be

              removed by a two-thirds vote of the advisory board without cause. In the event of a vacancy,

              said board shall fill the vacancy for the unexpired term. Each member of said advisory board

              shall serve without compensation, except if a member provides specialized services, such as

              legal, accounting, record keeping, administration, or any other specialized services provided

              to the advisory board. Members may be reimbursed, as an expense of said advisory

              board, for all reasonable expenses incurred in the performance of their duties as approved by

              the advisory board.

              (e) The purposes of the advisory board shall be as follows:

              (i) to appoint 3 members of the board of directors of the Massachusetts Port

              Authority, as provided for in section 2 of this chapter and in the manner prescribed in paragraph (f) of this section;

              (ii) to make recommendations to the authority on annual current expense expenditure

              budgets submitted to the advisory board under paragraph (g);

              (iii) to hold hearings, which may be held jointly with the authority at the discretion of

              the advisory board and said authority, on matters relating to said authority;

              (iv) to review the annual report of the authority and to prepare comments thereon to the

              authority and the governor, and to make such examinations of the reports on the authority's

              records and affairs as the advisory board deems appropriate; and

              (v) to make recommendations to the governor and the general court respecting the

              authority and its programs. The advisory board shall have all powers necessary or convenient to carry out and effectuate the foregoing purposes.

              (f) Three members of the authority shall be appointed by the advisory board, in

              accordance with section 2 of this chapter. Two of those members shall be residents of one of the following communities: Braintree, Brookline, Cambridge, Chelsea, Cohasset, Everett, Hingham, Hull, Lincoln, Malden, Melrose, Medford, Milton, Nahant, Quincy, Revere, Somerville, Weymouth, or Winthrop; and one of whom shall be a resident of the communities of Bedford, Concord, or Lexington. Said advisory board shall appoint successor members, who shall replace that member of the board of directors appointed by the advisory board whose term has expired or

              otherwise terminated. With respect to appointment of any member of the board of directors

              the advisory board shall act only if a special quorum is present consisting of two-thirds of

              voting members present.

              (g) Within 30 days of receiving any proposed current expense budget of the authority or within 15 days of receiving any proposed amended expense budget of the authority, the advisory board may hold a public hearing on matters relating to said budget for the purpose of ascertaining, for subsequent report to the authority if necessary, the views of the public thereon.

              (h) The advisory board shall provide for the appointment of an advocate who, with the assistance from such staff and consultants as the advisory board may authorize and appoint, shall act for and in the name of the advisory board in the following respects:

              (i) preparation of analysis for the advisory board of the authority's current expense

              budgets, capital expenditure budgets and capital programs and their effect on the charges of

              said authority;

              (ii) representation of the advisory board to said authority on all matters pertaining to

              said authority's programs, operations, finances and charges;

              (iii) reporting regularly to the advisory board on the activities of the advocate and other

              staff of the advisory board, on the affairs of the authority, and on the effect of the authority's program and operations on residents of neighboring communities.

              (iv) The advisory board shall have all the powers necessary to deal with the Massachusetts Port Authority and all federal and state agencies, and report regularly to the board on the effect of any Massachusetts Port Authority, federal, or state agencies' programs and operations on the residents of the communities represented by the advisory board.

              (v) to meet with and make recommendations to all Massachusetts Port Aurthority, federal, and state agencies' programs and operations, which affect said communities.

              (i) The advisory board may incur annual expenses, not to exceed $500,000 for expenses authorized under paragraph (c) and for personnel and office expenses. Said annual

              expenses shall be paid by the authority.

              (j) The authority shall provide any information, including, but not limited to, annual

              current expense expenditure budgets and capital expenditure reports, requested by the

              advisory board which are necessary for the discharge of its duties; provided however, that the

              advisory board shall not be granted access to any information if it be determined by the

              executive director of the authority and the director of security for the authority that the

              release of such information would be detrimental to public safety; provided further, that said

              determination shall be made in writing and said writing shall be delivered to the advisory

              board within 2 days; and provided further, that said writing shall be signed by the

              executive director and director of security of said authority under pains and penalties of

              perjury.

              SECTION 27. (a) Notwithstanding any general or special law to the contrary, the Massachusetts Department of Transportation, in this section called the department, shall generate sufficient revenue to meet the following benchmarks: (1) in fiscal year 2014, the department shall generate 47 per cent of the department’s operating budget; (2) in fiscal year 2015, the department shall generate 48 per cent of the department’s operating budget; (3) in fiscal year 2016, the department shall contribute 50 per cent of the department’s operating budget; (4) in fiscal year 2017, the department shall contribute 51 per cent of the department’s operating budget; and (5) in fiscal year 2018, the department shall contribute 51 per cent of the department’s operating budget. 

              (b) The benchmarks in subsection (a) may be achieved through savings to the department’s operating budget; provided, 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; and provided further that the department shall not implement any proposed increase in the toll structure that is in place on April 1, 2013 on said metropolitan highway system and turnpike except in strict accordance with the provisions of Chapter 6C, Section 3, Clause (18).". The preliminary and final savings 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: (1) fees collected by the registrar of motor vehicles under section 34 of chapter 90 of the General Laws; (2) funds available to the Registry of Motor Vehicles through the Motor Vehicle Inspection Trust Fund, established under section 61 of chapter 10 of the General Laws; (3) funds contributed to the Massachusetts Transportation Trust Fund, establishedunder section 4 of chapter 6C of the General Laws; and (4) any other funds directly collected by the department. 

              SECTION 28. (a) Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority, in this section called the authority, shall generate sufficient revenue to meet the following benchmarks: (1) in fiscal year 2014, the authority shall generate 31.5 per cent of the authority’s operating budget; (2) in fiscal year 2015, the authority shall contribute 33 per cent of the authority’s operating budget; (3) in fiscal year 2016, the authority shall contribute 33.25 per cent of the authority’s operating budget; (4) in fiscal year 2017, the authority shall contribute 32.75 per cent of the authority’s operating budget; and (5) in fiscal year 2018, the authority shall contribute 34 per cent of the authority’s operating budget. 

              (b) The benchmarks in subsection (a) may be achieved through savings to the authority’s operating budget; provided 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.  The savings 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 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, established under section 35T of chapter 10 of the General Laws. 

              SECTION 29.  (a) The department shall use the revenues generated in 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 on or before 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 on or before 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; (2) the total cost of employee salaries charged to capital expenditures in fiscal year 2013;  (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; 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 pursuant to this section to fund the capital costs associated with planning, design, permitting, engineering and construction of transportation projects.SECTION 30. Notwithstanding any general or special law to the contrary, each regional transit authority, hereinafter referred to as RTA,established under chapter 161B of the General Laws shall develop a comprehensive regional transit plan in consultation with the appropriate regional planning agency, the department of transportation, local employers and the business associations, labor organizations, and transit authority riders.  The regional transit 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 RTA; (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 RTA’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.  Provided further that special consideration shall be given to the towns in the surrounding area of the City of Worcester currently without regularly scheduled bus service provided by the Worcester Regional Transit Authority (WRTA), with recommendations on a fair and equitable plan for such communities that are contributing to the WRTA.    The final report shall be filed with the department of transportation and made available on the department’s website and the website of the appropriate RTA on or before June 30, 2014.

              SECTION 31. There shall be established 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 personsto 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 in 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 be implemented as part of the long term capital plan established under section 11A 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 on or before March 1, 2014.

              SECTION 32. There shall be established a utility relocation commission consisting of the following 5 members: the chair of the department of public utilities or a designee, who shall serve as chair; the secretary of transportation or a designee; and 3 persons to be appointed by the governor, 1 of whom shall represent organized labor, and 2 of whom shall be representatives from a utility or utility facility, as defined under federal law.  The commission shall study and make recommendations on policies and reimbursement mechanisms for when it is necessary that a utility or utility facility, as defined under federal law, be relocated by the division of highways or the Massachusetts Bay Transportation Authority because of construction of a project. The commission shall review the current provisions of section 44 of chapter 6C of the General Laws, specifically current thresholds for eligible projects, the annual cap on the total reimbursement by the department, and the reimbursement formula for the total costs of functional replacements of utility lines or real properties. The commission shall recommend a utility reimbursement formula that takes into account, but is not limited to, the following factors; whether the project is to be reimbursed federally, in whole or in part, or to be paid by the commonwealth, in whole or in part; if the utility facility is to be reimbursed, in whole or in part or does not qualify for federal reimbursement; if the relocation shall by performed by the employees of the owner; and the nature of the project. The report, with any recommended legislation, shall be filed with the clerks of the house of representatives and senate on or before January 1, 2014.

              SECTION 32A. Notwithstanding the provisions of any general or special law to the contrary, the Massachusetts Bay Transportation Authority shall expend funds on capital investment projects, including the green line extension project and the south coast rail project, that are listed in the authority’s 5-year rolling capital investment plan as published in accordance with section 5 of chapter 161A of the General Laws.

              SECTION 32B. Pursuant to clause (18) of section 3 of chapter 6C of the General Laws, the Massachusetts department of transportation shall study and develop a plan to establish and implement a new toll system over roadways across the commonwealth on or before July 1, 2018.  Such a plan shall include, but not be limited to, the procurement of necessary federal waivers and any reciprocal agreements or interstate compacts, implementation of open road tolling, and the methods of tolling considered such as high occupancy toll lanes; and shall include a cost-benefit and traffic analysis.  An initial draft of the plan shall be filed with the clerks of the house and senate on or before December 31, 2013.

              SECTION 33. The secretary of Massachusetts Department of Transportation shall, pursuant to section 11A of chapter 6C of the General Laws, publish the first 10-year long term capital plan, for fiscal years 2015 to 2024, inclusive, on or before April 30, 2014.

              SECTION 34.  (a) The transportation performance and asset management advisory council shall, pursuant to section 12A of chapter 6C of the General Laws, and in consultation with federal, state and local transportation agencies, regional planning agencies and other governmental agencies, develop and present to the board of directors of the Massachusetts Department of Transportation for approval such procedures and requirements as are necessary for the administration of the performance and asset management system on or before November 1, 2013. This shall include, at a minimum:(1) a comprehensive plan for the development and integration of an asset management and performance information system with long-term statewide planning processes; (2) an analytical process or decision support tool that allows for the estimation of capital investment needs of such systems over time; and (3) an asset investment prioritization method by such systems, including the possible use of a quantifiable project prioritization mechanism such as a numeric scoring system.

              (b) The recommendations shall also include areas of necessary training, data storage and collection, reporting practices, development of program for implementation, budgeting and funding, and other issues related to asset management that may arise from time to time in the management of such system.

              SECTION 34A. The integrated asset management system, as required by section 12 of chapter 6C of the General Laws, shall be complete and operational on or before July 1, 2014.

              SECTION 35. The searchable database in section 34A of chapter 6C of the General Laws shall be available to the public on or before January 1, 2014.

              SECTION 36. Any corporation which was classified as a utility corporation under section 52A of chapter 63 of the General Laws shall not take a deduction under paragraph 5 of section 30 of said chapter 63 for losses incurred before January 1, 2014.

              SECTION 37. On January 1, 2015, the tax per gallon established under section 1 of chapter 64A of the General Laws shall be adjusted by the percentage, if any, by which the Consumer Price Index as defined in section 1 of the federal Internal Revenue Code, for the preceding year exceeds the Consumer Price Index for the calendar year that ends before such preceding year.

              SECTION 38. Section 13 shall not restrict the authority of the commissioner of revenue under subsection (j) of section 38 of chapter 63 of the General Laws, and shall not affect the continuing validity or application of regulations that were previously adopted under subsection (f) of said section 38 of said chapter 63.

              SECTION 39. Every manufacturer, wholesaler, vending machine operator, unclassified acquirer or retailer, as defined in section 1 of chapter 64C of the General Laws and every stamper appointed by the commissioner pursuant to 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 meter 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 person is required to file such return, pay an additional excise of 50 mills per cigarette on all cigarettes and all unused adhesive and meter stamps upon which an excise of only 1001/2 mills has previously been paid. All provisions of chapter 62C and chapter 64C relative to the assessment, collection, payment, abatement, verification and administration of taxes, including penalties, shall apply to the excise imposed by this section.

              SECTION 40. Notwithstanding any general or special law to the contrary, any additional revenue resulting from the effective date of sections 19 to 22, inclusive, and section 39, as estimated by the commissioner of revenue, shall be deposited in the General Fund.

              SECTION 41. Sections 10, 11, 11A, 12, 13, 15 and 16 shall take effect January 1, 2014.SECTION 42. Section 18 shall take effect on January 1, 2015.

              SECTION 43. Section 14 shall take effect on December 31, 2018.

              SECTION 44. Except where otherwise specified, the provisions of this act shall take effect July 1, 2013.

              SECTION 45. Notwithstanding any general or special law to the contrary, all fuel tax revenues generated pursuant to chapter 64A of the General laws or otherwise shall be credited to the Commonwealth’s transportation fund and such funds shall be used for transportation related purposes and for no other purposes, except for items funded from such revenues as of July 1, 2012.

              SECTION 46. Section 24 of chapter 161A of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by adding after the last sentence the following sentences: -

              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 first to the lessee, user, or occupant in the same manner and to the same extent as if such lessee, user, or occupant were the owner thereof in full.  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 therein 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 the above, such collector shall have for the collections of taxes assessed under this section all other remedies provided by chapter sixty for the collection of annual taxes upon real estate.

              Section 47.  Chapter 161A of the General Laws, as most recently amended by chapter 119 of the Acts of 2012, is hereby amended by inserting at the end thereof the following new section:

              Section 50.  Notwithstanding any general or special law to the contrary, the department or the authority shall not undertake any system expansion, defined as encompassing the development, conceptual planning, design and construction of any effort to expand the scope of services at the authority, until the department or the authority conducts a cost analysis and certifies that the addition of the project will not prevent the authority from generating sufficient revenue to contribute 34 per cent of the authority’s operating budget annually.  This cost analysis shall include any and all costs associated with the project including debt service, construction costs, future maintenance and associated costs. The auditor of the commonwealth shall request that the administrator of the appropriate division of the department prepare the fiscal analysis, including life cycle costs, demonstrating that sufficient revenues exist or will be generated to operate and maintain in good repair the expansion. This analysis shall also be submitted to the joint legislative committee on revenue.

              Nothing in this section shall be construed to prevent any system enhancement, defined as encompassing capital projects that improve existing service and foster increased ridership on exiting transit systems.

              SECTION 48.  Section 5 of chapter 161B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by deleting the second paragraph and inserting in place thereof the following paragraph:-

              One representative of the disabled commuter population shall serve on each advisory board for a 1 year term. Such person shall have 1 vote on the advisory board.  Every city or town in the region, on a rotating basis as determined by the board, shall appoint a representative successively. 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 a mobility impaired person who regularly uses services offered by the regional transit authority, or have a family member who is mobility impaired and so uses such services, or be a caretaker of a person who is mobility impaired and so uses such services, 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.

              SECTION 49.  Section 5 of chapter 161B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after the second paragraph the following paragraph:-

              The governor shall appoint 1 person to each advisory board from a list of at least 5 persons nominated by the Massachusetts State AFL-CIO and its regional councils, each of whom shall reside in a municipality served by the regional transit authority on whose board such appointee sits.  Each appointment shall be for a 1 year term.  Such persons shall have 1 vote on the advisory board.

              SECTION 50. Section 1 of chapter 64C, as so appearing, is hereby further amended by striking the words “sections twenty-nine to thirty-nine, inclusive,” in lines 63, and replacing them with the following:- section 33A.

              SECTION 51. Section 1 of Chapter 94F is hereby amended by adding the following definitions:

              “Contraband”, such units of smokeless tobacco sold, purchased, transported, imported, received, or possessed and (i) upon which any required tax has not been paid, (ii) has been imported in violation of federal, state or local law, (iii) the packaging of which has been altered so as to remove, conceal or obscure any statement, label, stamp, sticker, or notice or any health warning in violation of federal, state or local law.

              “Smokeless Tobacco”, snuff, snuff flour and any other tobacco or tobacco product prepared in such manner as to be suitable for chewing, including, but not limited to Cavendish, plug, twist and fine-cut tobaccos.

              “Unit of smokeless tobacco”, a single container to be purchased by the consumer.

              SECTION 52. Chapter 94F is hereby further amended by adding the following new sections:

              Section 5A. Smokeless Tobacco; Possession without license; Penalties.

              Any person, except as otherwise provided by law, who sells, purchases, transports, imports, receives, or possesses smokeless tobacco upon which tax has not been paid shall be required to pay any tax owed pursuant Massachusetts law. In addition, such person shall be required to pay a civil penalty of (i) $2.50 per unit of smokeless tobacco, up to $500, for the first violation by a legal entity within a 36-month period; (ii) $5 per unit of smokeless tobacco, up to $1,000, for the second violation by the legal entity within a 36-month period; and (iii) $10 per unit of smokeless tobacco, up to $2,000, for the third and any subsequent violation by the legal entity within a 36-month period, to be assessed and collected by the commissioner as other taxes are collected. In addition, where willful intent exists to defraud the Commonwealth of any tax levied on smokeless tobacco pursuant to Massachusetts law, such person shall be required to pay a civil penalty of $25 per unit of smokeless tobacco, up to $25,000.

              B. It shall be unlawful for any person, except as otherwise provided by law, to sell, purchase, transport, import, receive or possess fewer than 500 units of smokeless tobacco unless the tax on those units has been paid. Any person violating the provisions of this subsection shall be guilty of a misdemeanor.

              C. It shall be unlawful for any person, except as otherwise provided by law, to sell, purchase, transport, import, receive or possess 500 or more units of smokeless tobacco unless the tax on those units has been paid. Any person violating the provisions of this subsection shall be guilty of a felony

              D. If a person who (i) has not been issued a license, as provided in Section two of Chapter sixty-four C or (ii) is not a retail dealer who has lawfully purchased smokeless tobacco from such license holder has in his possession within the Commonwealth more than 25 units smokeless tobacco upon which no tax has been paid, such possession shall be presumed to be for the purpose of evading the payment of the taxes due thereon.

              E. Any person other than an authorized holder who possesses, with intent to distribute, more than 25, but fewer than 500, units of tax-paid smokeless tobacco is guilty of a misdemeanor for a first offense and is guilty of a felony for any second or subsequent offense.

              F. Any person other than an authorized holder who possesses, with intent to distribute, more than 500, units of tax-paid smokeless tobacco is guilty of a felony.

              G. Additionally, any person who violates the provisions of this section shall be assessed a civil penalty of (i) $2.50 per unit, but no more than $5,000, for a first offense; (ii) $5 per unit, but no more than $10,000, for a second such offense committed within a 36-month period; and (iii) $10 per unit, but no more than $20,000, for a third or subsequent such offense committed within a 36-month period. The civil penalties shall be assessed and collected by the commissioner as other taxes are collected.

              Section 5B. Illegal distribution of smokeless tobacco.

              It shall be unlawful for any person to:

              Sell or distribute in the Commonwealth of Massachusetts, acquire, hold, own possess, or transport, for sale or distribution in the Commonwealth, or import, or cause to be imported, into the Commonwealth for sale or distribution in the Commonwealth any smokeless tobacco, (i) the packages of which bear any statement, label, stamp, sticker, or notice indicating that the manufacturer did not intend the smokeless tobacco to be sold, distributed, or used in the United States, including but not limited to labels stating “For Export Only,” “U.S. Tax-Exempt,” “For Use Outside U.S.,” or similar wording; (ii) the packages of which do not comply with all requirements imposed by or pursuant to federal law regarding warnings and any other information on packages manufactured, packaged, or imported for sale, distribution, or use in the United States or all federal trademark and copyright laws; (iii) imported into the United States in violation of any federal law or regulation; or (iv) that such person otherwise knows or has reason to know the manufacturer did not intend to be sold, distributed, or used in the United States.

              Alter any package of any smokeless tobacco, prior to sale or distribution to the ultimate consumer, so as to remove, conceal or obscure (i) any statement, label, stamp, sticker, or notice described in clause (i) of the foregoing paragraph or (ii) any health warning that is not specified in, or does not conform with the requirements of federal law.

              The commissioner may impose a civil penalty in an amount not to exceed the greater of 500 percent of the retail value of the smokeless tobacco involved or $5,000 upon finding a violation of this provision and may assess the tax due and any interest upon the product acquired, possessed, sold, or offered for sale in violation of this provision.

              Any person who commits any of the acts prohibited by this section, either knowingly or having reason to know he is doing so shall be guilty of a felony.

              In addition to any other remedy provided by law, any person may bring an action for appropriate injunctive or other equitable relief for a violation of this provision, for actual damages, if any, sustained by reason of the violation, and as determined by the court, interest on the damages from the date of the complaint, and taxable costs. If the court finds that the violation was willful, it may increase damages to an amount not exceeding three times the actual damages sustained by reason of the violation.

              For the purpose of enforcing this provision, the commissioner may request or share information with any federal, state or local agency, including any agency of another state or local agency thereof.

              Section 5C. Forfeiture of Contraband Smokeless Tobacco.

              Contraband smokeless tobacco possessed in violation of Sections five A and B of this Chapter ninety-four F shall be subject to seizure, forfeiture, and destruction by the commissioner or any law-enforcement officer of the Commonwealth. All fixtures, equipment, materials, and personal property used in substantial connection with the sale or possession of smokeless tobacco in a knowing and intentional violation of Sections five A and B of this Chapter ninety-four F shall be subject to seizure and forfeiture as provided in sections fifty to fifty-five, inclusive, of chapter one hundred and thirty-eight in the case of alcoholic beverages.

              SECTION 53.  The Massachusetts Department of Transportation shall undertake an analysis of the air quality impacts of the Central Artery Project and associated transit commitments completed to date. The analysis shall be conducted in cooperation with the Boston Region Metropolitan Planning Organization and shall report on the levels of Volatile Organic Compounds, Oxides of Nitrogen, and Carbon Monoxide in the MPO region and Eastern Massachusetts. The results of the analysis shall be provided to the Joint Committee on Transportation within six months of the effective date of this act.

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