Amendment #346 to H4789

Disaster Recovery Response

Mr. Driscoll of Milton moves to amend the bill by inserting after section 167 the following section:

“SECTION X. Chapter 62C of the General Laws is hereby amended to add the following new

section:

Section 89. (a)The following words as used in this section shall, unless the context

otherwise requires, have the following meanings

“Registered business in the commonwealth”, a business entity that is currently registered to do

business in the state prior to the declared state disaster or emergency.

“Out-of-state business”, a business entity that, except for disaster or emergency related work, has no presence in the commonwealth and conducts no business in the commonwealth whose services are requested by a registered business in the commonwealth or by the commonwealth or local government for purposes of performing disaster or emergency related work in the commonwealth. This shall also include a business entity that is affiliated with the registered business in the commonwealth solely through common ownership. The out-of-state business has no registrations or tax filings or nexus in the commonwealth other than disaster or emergency

related work during the tax year immediately preceding the declared state disaster or emergency.

“Out-of-state employee”, an employee who does not work in the commonwealth, except for

disaster or emergency related work during the disaster response period.

“Critical infrastructure”, property and equipment located in the commonwealth that is owned or

used by communications networks; cable, video, or broadband networks; gas and electric distribution systems; water pipelines; railways; public roads and bridges; and related support facilities that service multiple customers, including but not limited to real and personal property such as buildings, offices, lines, poles, pipes, structures, and equipment.

“Declared state disaster or emergency”, disaster or emergency event (1) for which a Governor's

state of emergency declaration has been issued, (2) for which a Presidential declaration of a

federal major disaster or emergency has been issued, or (3) for which a response has been

requested by a public safety or governmental agency in the commonwealth.

“Disaster or emergency related work”, repairing, renovating, installing, building, rendering

services or other business activities that relate to critical infrastructure that has been damaged, -

destroyed, or lost as a result of the declared state disaster or emergency during the disaster

response period; or any action taken in response to a request from a public safety or

governmental agency in the commonwealth.

“Disaster response period” means a period that begins ten days prior to the first day of the

governor’s declaration, or the President’s declaration, or the request for a response to a disaster

or emergency event issued by a public safety or governmental agency, whichever occurs first,

and that extends sixty days after the end of the declared state disaster or emergency.

(b)An out-of-state business that conducts operations within the commonwealth for purposes of

performing work or services on critical infrastructure damaged, destroyed, or lost as a result of a

declared state disaster or emergency during the disaster response period shall not be considered

to have established a level of presence that would require that business to register, file or remit

state or local taxes or that would require that business or its out of state employees to be subject

to any state licensing or registration requirements; inclusive of all state or local business

licensing or registration requirements or state and local taxes or fees including, but not limited to, unemployment insurance, state or local occupational licensing fees and sales and use tax or ad

valorem tax on equipment brought into the commonwealth temporarily for use during the

disaster response period and subsequently removed from the commonwealth, public service

commission or secretary of state licensing and regulatory requirements. For purposes of any state

or local tax on or measured by, in whole or in part, net or gross income or receipts, all activity of

the out-of-state business that is conducted in this commonwealth pursuant to this section shall be

disregarded with respect to any filing requirements for such tax including the filing required for a

unitary or combined group of which the out-of-state business may be a part. For the purpose of

apportioning income, revenue, or receipts the performance by an out-of-state business of any

work in accordance with this section shall not be sourced to or shall not otherwise impact or

increase the amount of income, revenue, or receipts apportioned to the commonwealth.

(c) Any out-of-state employee shall not be considered to have established residency or a presence

in the commonwealth that would require that person or that person’s employer to file and pay

income taxes or to be subjected to tax withholdings or to file and pay any other state or local tax

or fee during the disaster response period, including related state or local employer withholding

and remittance obligations.

(d) Out-of-state businesses and out-of-state employees shall be required to pay transaction taxes

and fees including but not limited to fuel taxes or sales/use taxes on materials or services

consumed or used in the commonwealth subject to sales or use tax, hotel taxes, car rental taxes

or fees that the out-of-state affiliated business or out-of-state employee purchases for use or

consumption in the commonwealth during the disaster response period, unless such taxes are

otherwise exempted during a disaster response period.

(e)Any out-of-state business or out-of-state employee that remains in the commonwealth after

the disaster response period will become subject to the commonwealth’s normal standards for

establishing presence, residency or doing business in the commonwealth and will therefore

become responsible for any business or employee tax requirements that ensue.

(f) (1) The out-of-state business that enters the commonwealth shall, upon request, provide to the

department a statement that it is in the commonwealth for purposes of responding to the disaster

or emergency, which statement shall include the business’ name, state of domicile, principal

business address, federal tax identification number, date of entry, and contact information. (2) A

registered business in the commonwealth shall, upon request, provide the information required in

subsection (1) of this section for any affiliate that enters the commonwealth that is an out-of-state

business. The notification shall also include contact information for the registered business in the

commonwealth.

(g) An out-of-state business or an out-of-state employee that remains in the commonwealth after

the disaster response period shall complete state and local registration, licensing and filing

requirements that ensue as a result of establishing the requisite business presence or residency in

the commonwealth applicable under the existing rules.

(h)The department shall promulgate necessary regulations, develop and issue forms or online

processes, and maintain and make available an annual record of any designations pursuant to this

section.”.”