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  • Acts
  • 2003
  • Chapter 4 AN ACT MAKING APPROPRIATIONS FOR FISCAL YEAR 2003 TO PROVIDE FOR SUPPLEMENTING CERTAIN EXISTING APPROPRIATIONS AND FOR CERTAIN OTHER ACTIVITIES AND PROJECTS.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to make forthwith supplemental appropriations and related changes in certain general and special laws, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

SECTION 1. To provide for certain unanticipated obligations of the commonwealth, to provide for alterations of purpose for current appropriations and to meet certain requirements of law, the sum set forth in this section is hereby appropriated from the general fund unless specifically designated otherwise in this section, for the several purposes and subject to the conditions specified in this section and subject to laws regulating the disbursement of public funds for the fiscal year ending June 30, 2003.? Said sum shall be in addition to any amounts previously appropriated and made available for the purposes of said item.

OFFICE OF THE COMPTROLLER.

1599-4148

For a reserve for the payment of certain court judgments, settlements and legal fees, in accordance with regulations promulgated by the comptroller, which were ordered to be paid in fiscal year 2003 or a prior fiscal year; provided, that the comptroller shall report quarterly to the house and senate committees on ways and means on the amounts expended from this item; provided further, that not more than $3,662,500 shall be expended to the Tufts School of Veterinary Medicine for services rendered during fiscal years 2003 and before; provided further, that the comptroller may transfer funds from this item to the Liability Management and Reduction Fund established in section 2TT of chapter 29 of the General Laws; and provided further, that no funds appropriated in this item shall be expended on any settlements pursuant to chapter 55A of the General Laws ........................................................................................................................................ $8,462,500.

SECTION 2. Chapter 9 of the General Laws is hereby amended by adding the following section:-

Section 31. Notwithstanding any general or special law to the contrary, the fees of the registers of deeds and of the assistant recorders, except as otherwise provided, to be paid when the instrument is left for recording, filing or deposit shall be subject to a surcharge of $5.? The surcharge shall be imposed for the purpose of automation, modernization, operation and technological improvements at the registries of deeds.? Only those registries under the control of the state secretary shall be subject to the terms and conditions of this section.? From March 15, 2003 until June 30, 2008, all surcharges on fees collected pursuant to this section shall be forwarded to the Registers Technological Fund established in section 2JJJ of chapter 29. From July 1, 2008, all of the surcharges shall be forwarded to the general fund as provided in section 2 of said chapter 29.

SECTION 3. Section 39 of chapter 19A of the General Laws, as appearing in section 11 of chapter 177 of the acts of 2001, is hereby amended by adding the following subsection:-

(s) The secretary may negotiate with pharmaceutical companies in order to reduce the pricing or cost of prescription medications made available through the program.? The secretary may adopt any tools or programs available to achieve reduced pricing or cost of prescription medications.? Nothing included in this section shall preclude the secretary from negotiating with manufacturers on other initiatives that may benefit the program.

SECTION 4. Chapter 29 of the General Laws is hereby amended by inserting after section 2III the following 2 sections:-

Section 2JJJ. (a) There shall be established on the books of the commonwealth a separate fund to be known as the Registers Technological Fund for the benefit of the registers of deeds under the control of the state secretary.? This fund shall consist of the amounts specified in and collected pursuant to section 31 of chapter 9. The state treasurer shall deposit these amounts into the fund, which shall be expended solely for the purposes of automation, modernization, operation and technological improvements at the registries of deeds.? The state secretary for the benefit of the registers under his control, shall submit a spending plan to the clerks of the house of representatives and senate, who shall refer the plan to the house and senate committees on ways and means and house and senate committees on post audit and oversight.? In preparing the plan, the secretary shall consult with the commonwealth's chief information officer and require that the projects and purchases funded through disbursements in this section shall be consistent with the enterprise information technology strategy, plan and information technology standards adopted by him.? All such monies shall be used to purchase information technology systems that are interoperable with other like systems that are used or will be used by all registries.? The plan shall include, but not be limited to, the cost and description of all intangible, personal and real property to be purchased or services to be received and any and all personnel changes for the automation, modernization, operation and technological improvements.? If the general court takes no final action relative to the plan within 30 days after the date on which the plan is first referred to those committees, the state treasurer shall disburse the funds according to the plan.

(b) In conjunction with the preparation of the commonwealth's comprehensive annual financial report, the comptroller shall prepare and issue an annual report detailing the revenue and expenditure of the fund.

Section 2KKK. (a) There shall be established on the books of the commonwealth a separate fund for the counties of Barnstable, Bristol, Dukes, Norfolk, Plymouth and Nantucket, to be known as the County Registers Technological Fund, for the benefit of the registers of deeds under the control of the governments of those counties.? The fund shall consist of the amounts specified in and collected pursuant to section 41 of chapter 36. The state treasurer shall deposit these amounts into the fund, which shall be expended, subject to section 40 of said chapter 36, solely for the purposes of automation, modernization, operation and technological improvements at the registries of deeds.? Each such register shall submit a spending plan to the clerks of the house of representatives and senate, who shall refer the plan to the house and senate committees on ways and means and house and senate committees on post audit and oversight.? In preparing the plan, the register shall consult with the commonwealth's chief information officer and the state secretary and require that the projects and purchases funded through disbursements in this section shall be consistent with the enterprise information technology strategy, plan information and technology standards adopted by him.? All such monies shall be used to purchase information technology systems that are interoperable with other like systems that are used or will be used by all registries.? The plan shall include, but not be limited to, the cost and description of all intangible, personal and real property to be purchased or services to be received for the automation, modernization, operation and technological improvements.? If the general court takes no final action relative to the plan within 30 days after the date on which the plan is first referred to those committees, the state treasurer shall disburse the funds according to the plan.

(b) In conjunction with the preparation of the commonwealth's comprehensive annual financial report, the comptroller shall prepare and issue an annual report detailing the revenue and expenditure of the fund.

SECTION 5. Chapter 36 of the General Laws is hereby amended by adding the following section:-

Section 41. Notwithstanding any general or special law to the contrary, the fees of each of the registers of deeds and of the assistant recorders, except as otherwise provided, to be paid when the instrument is left for recording, filing or deposit shall be subject to a surcharge of $5.? The surcharge shall be imposed for the purpose of automation, modernization, operation and technological improvements at the registries of deeds.? Only registries presently under the control of county government shall be subject to this section.? From March 15, 2003 until June 30, 2008, all surcharges on fees collected pursuant to this section shall be forwarded to the County Registers Technological Fund established in section 2KKK of chapter 29. From July 1, 2008, all of the surcharges shall be forwarded to the general fund as provided in section 2 of chapter 29.

SECTION 6. Section 23 of chapter 60 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by striking out, in line 44, the words "four dollars" and inserting in place thereof the following figure:- $50.

SECTION 7. Subsection (a) of section 5A of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out the last 2 sentences and inserting in place thereof the following 5 sentences:- Items of gross income from sources within the commonwealth are items of gross income derived from or effectively connected with: (1) any trade or business, including any employment carried on by the taxpayer in the commonwealth, whether or not the nonresident is actively engaged in a trade or business or employment in the commonwealth in the year in which the income is received; (2) the participation in any lottery or wagering transaction within the commonwealth; and (3) the ownership of any interest in real or tangible personal property located in the commonwealth.? In computing the taxable income of each Part, the nonresident shall be allowed the deductions and exemptions provided as to each Part in section 3. For purposes of this section, gross income derived from or effectively connected with any trade or business, including any employment, carried on by the taxpayer in the commonwealth shall mean the income that results from, is earned by, is credited to, accumulated for or otherwise attributable to either the taxpayer's trade or business in the commonwealth in any year or part thereof, regardless of the year in which that income is actually received by the taxpayer and regardless of the taxpayer's residence or domicile in the year it is received.? It shall include, but not be limited to, gain from the sale of a business or of an interest in a business, distributive share income, separation, sick or vacation pay, deferred compensation and nonqualified pension income not prevented from state taxation by the laws of the United States and income from a covenant not to compete.? The foregoing shall not be deemed to include income from qualified tax-deferred retirement plans which are exempt from taxation under any other provision of this chapter.

SECTION 8. Section 8 of said chapter 62, as so appearing, is hereby amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) Paragraph (a) shall not apply to a corporate trust which: (i) is a regulated investment company under section 851 of the Code or a real estate investment trust under section 856 of the Code; (ii) is a holding company as hereinafter defined; (iii) is exempt under subdivision (1) or (2) of section 23 of chapter 32; or (iv) has made a valid election for the taxable year to be treated as a real estate mortgage investment conduit, as defined in section 860D of the Code for federal income tax purposes.? As used in this paragraph, the term "holding company" shall mean a corporate trust in which 90 per cent of the book value of its assets, at the end of the taxable year, are securities and at least 75 per cent of such securities are issued by affiliates and at least 90 per cent of its Massachusetts gross income is Part A gross income and Part C gross income; the word "affiliate" shall mean a member of an affiliated group as defined under section 1504 of the Code; and the word "securities" shall mean transferable shares of beneficial interest in a corporation or other entity, bonds or debentures of an issuer or notes and other evidences of indebtedness of affiliates.

SECTION 9. The first paragraph of section 17 of said chapter 62, as so appearing, is hereby amended by adding the following sentence:- If a limited liability company has only 1 member and is not treated as a separate taxable entity for federal tax purposes, it shall not be separately taxed under this chapter and such member shall include separately in his return the limited liability company's income or loss taxable under this chapter and any item of deduction or credit.

SECTION 10. Chapter 62C of the General Laws is hereby amended by inserting after section 3 the following section:-

Section 3A. In applying the laws referred to in section 2, the commissioner may, in his discretion, disallow the asserted tax consequences of a transaction by asserting the application of the sham transaction doctrine or any other related tax doctrine, in which case the taxpayer shall have the burden of demonstrating by clear and convincing evidence as determined by the commissioner that the transaction possessed both: (i) a valid, good-faith business purpose other than tax avoidance; and (ii) economic substance apart from the asserted tax benefit.? In all such cases, the taxpayer shall also have the burden of demonstrating by clear and convincing evidence as determined by the commissioner that the asserted nontax business purpose is commensurate with the tax benefit claimed.? Nothing in this section shall be construed to limit or negate the commissioner's authority to make tax adjustments as otherwise permitted by law.

SECTION 11. Section 1 of chapter 63 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by inserting after the definition of "Borrowing or credit card holder located in this commonwealth" the following definition:-

"Code", the Internal Revenue Code of the United States, as amended and in effect for the taxable year, unless otherwise provided.

SECTION 12. The definition of "Net income" in said section 1 of said chapter 63, as amended by section 4 of chapter 96 of the acts of 2002, is hereby further amended by inserting after the first sentence the following 2 sentences:- The term "dividends received" shall be treated in the same manner as under the Code, as amended and in effect for the taxable year.? For purposes of this section, any dividend received from a real estate investment trust, as provided in sections 856 to 859, inclusive, of the Code, for the taxable year of the trust in which the dividend is paid, shall not be treated as a dividend.

SECTION 13. Section 30 of said chapter 63 of the General Laws is hereby amended by striking out paragraphs 1 and 2, as appearing in the 2000 Official Edition, and inserting in place thereof the following 2 paragraphs:-

1. "Domestic corporation", (i) a corporation organized under or subject to chapter 156, chapter 156A, chapter 156B or chapter 180 which has privileges, powers, rights or immunities not possessed by individuals or partnerships; (ii) a mutual holding company subject to chapter 167H or sections 19F to 19W, inclusive, of chapter 175; or (iii) a limited liability company formed under chapter 156C which has more than 1 member which limited liability company is not classified for the taxable year as a partnership for federal income tax purposes or which has only 1 member and has elected for the taxable year to be classified for federal income tax purposes as a corporation separate from its member; provided, however, that the term shall not apply to a corporation organized under section 10 of chapter 157, a domestic manufacturing corporation as defined in section 38C, a corporation? that qualifies as a regulated investment company under section 851 of the federal Internal Revenue Code, as amended and in effect for the taxable year, nor to a corporation exempt from taxation under section 501 of the Code, as amended and in effect for the taxable year, nor to a corporation subject to section 2.? A limited liability company having as its sole member a domestic corporation, which limited liability company is not treated as a separate taxable entity for federal income tax purposes, shall not be separately taxed under this chapter but shall be treated as a branch or division of its domestic corporation member.

2. "Foreign corporation", a corporation, association or organization established, organized or chartered under laws other than those of the commonwealth, for purposes for which domestic corporations may be organized under chapter 156, chapter 156A, chapter 156B or sections 19F to 19W, inclusive, of chapter 175 or chapter 180 which has privileges, powers, rights or immunities not possessed by individuals or partnerships; provided, however, that the term shall not apply to a corporation, association or organization without capital stock which is subject to taxation under section 18 of chapter 157, to a foreign manufacturing corporation as defined in section 42B, to a corporation, association or organization that qualifies as a regulated investment company under section 851 of the federal Internal Revenue Code, as amended and in effect for the taxable year, to a corporation, association or organization which is exempt from taxation under section 501 of the Code, as amended and in effect for the taxable year, nor to a corporation, association or organization subject to tax under section 2; provided further, that the terms shall apply to a foreign limited liability company as defined in section 2 of chapter 156C, which has more than 1 member and is not classified for the taxable year as a partnership for federal income tax purposes or has only 1 member and has elected to be classified as a corporation separate from its member for federal income tax purposes.? A limited liability company having as its sole member a foreign corporation, which limited liability company is not treated as a separate taxable entity for federal income tax purposes, shall not be separately taxed under this chapter but shall be treated as a branch or division of its foreign corporation member.

SECTION 14. Paragraph 4 of said section 30 of said chapter 63, as amended by section 9 of chapter 300 of the acts of 2002, is hereby amended by inserting after the second sentence the following sentence:- For purposes of this section, a dividend received from a real estate investment trust, as provided under sections 856 to 859, inclusive, of the Code, for the taxable year of the trust in which the dividend is paid shall not be: (i) treated as a dividend; and (ii) included as part of the dividends received deduction otherwise available to the taxpayer under paragraph (1) of subsection (a) of section 38.

SECTION 15. Said paragraph 4 of said section 30 of said chapter 63, as amended by said section 9 of said chapter 300, is hereby further amended by adding the following clause:-

(v) except as otherwise provided in section 31J, interest expense paid, accrued or asserted in connection with a dividend of a note or similar obligation stating the requirement that such interest is to be paid by the corporation that dividends such obligation to its shareholders.

SECTION 16. Said section 30 of said chapter 63, as most recently amended by section 10 of said chapter 300, is hereby further amended by adding the following paragraph:-

16. Except as otherwise provided in sections 31 to 52, inclusive, the term "Code" shall mean the Internal Revenue Code of the United States, as amended and in effect for the taxable year.

SECTION 17. Said chapter 63 is hereby further amended by inserting after section 31H the following 2 sections:-

Section 31I. (a) As used in this section, the following words shall, unless the context requires otherwise, have the following meanings:-

"Code", the federal Internal Revenue Code as amended and in effect for the taxable year.

"Intangible expenses and costs", includes (1) expenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income before operating loss deductions and special deductions for the taxable year under the Code; (2) losses related to, or incurred in connection directly or indirectly with, factoring transactions or discounting transactions; (3) royalty, patent, technical and copyright fees; (4) licensing fees; and (5) other similar expenses and costs.

"Intangible property", patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets and similar types of intangible assets.

"Interest expenses and costs", amounts directly or indirectly allowed as deductions under section 163 of the Code for purposes of determining taxable income under the Code to the extent such expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance, management, ownership, sale, exchange or disposition of intangible property.

"Related member", a person that, with respect to the taxpayer during all or any portion of the taxable year, is: (1) a related entity, (2) a component member as defined in subsection (b) of section 1563 of the Code; (3) a person to or from whom there is attribution of stock ownership in accordance with subsection (e) of section 1563 of the Code; or (4) a person that, notwithstanding its form of organization, bears the same relationship to the taxpayer as a person described in (1) to (3), inclusive.

"Related entity", (1) a stockholder who is an individual, or a member of the stockholder's family set forth in section 318 of the Code if the stockholder and the members of the stockholder's family own, directly, indirectly, beneficially or constructively, in the aggregate, at least 50 per cent of the value of the taxpayer's outstanding stock; (2) a stockholder, or a stockholder's partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder's partnerships, limited liability companies, estates, trusts and corporations own directly, indirectly, beneficially or constructively, in the aggregate, at least 50 per cent of the value of the taxpayer's outstanding stock; or (3) a corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of the Code if the taxpayer owns, directly, indirectly, beneficially or constructively, at least 50 per cent of the value of the corporation's outstanding stock.? The attribution rules of the Code shall apply for purposes of determining whether the ownership requirements of this definition have been met.

(b) For purposes of computing its net income under this chapter, a taxpayer shall add back otherwise deductible interest expenses and costs and intangible expenses and costs directly or indirectly paid, accrued or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with, one or more related members.

(c) (i) The adjustments required in subsection (b) shall not apply if: (A) the taxpayer establishes by clear and convincing evidence, as determined by the commissioner, that the adjustments are unreasonable; or (B) the taxpayer and the commissioner agree in writing to the application or use of an alternative method of apportionment under section 42.? Nothing in this subsection shall be construed to limit or negate the commissioner's authority to otherwise enter into agreements and compromises otherwise allowed by law.

(ii) The adjustments required in subsection (b) shall not apply to the portion of interest expenses and costs and intangible expenses and costs that the taxpayer establishes by a preponderance of the evidence meets both of the following: (A) the related member during the same taxable year directly or indirectly paid, accrued or incurred such portion to a person that is not a related member, and (B) the transaction giving rise to the interest expenses and costs or the intangible expenses and costs between the taxpayer and the related member did not have as a principal purpose the avoidance of any portion of the tax that would be otherwise due.

(d) Nothing in this section shall be construed to limit or negate the commissioner's authority to make adjustments under sections 33 and 39A.

Section 31J. (a) For purposes of computing its net income under this chapter, a taxpayer shall add back otherwise deductible interest paid, accrued or incurred to a related member, as defined in section 31I, during the taxable year, except that a deduction shall be permitted when either: (1) the taxpayer establishes by clear and convincing evidence, as determined by the commissioner, that the disallowance of the deduction is unreasonable, or (2) the taxpayer and the commissioner agree in writing to the application of an alternative method of apportionment under section 42.? Nothing in this subsection shall be construed to limit or negate the commissioner's authority to otherwise enter into agreements and compromises otherwise allowed by law.

(b) The adjustments required in subsection (a) shall not apply if the taxpayer establishes by clear and convincing evidence, as determined by the commissioner, that: (i) a principal purpose of the transaction giving rise to the payment of interest was not to avoid payment of taxes due under this chapter; (ii) the interest is paid pursuant to a contract that reflects an arm's length rate of interest and terms; and (iii) (A) the related member was subject to tax on its net income in this state or another state or possession of the United States or a foreign nation; (B) a measure of said tax included the interest received from the taxpayer; and (C) the rate of tax applied to the interest received by the related member is no less than the statutory rate of tax applied to the taxpayer under this chapter minus 3 percentage points.

(c) For purposes of subsection (a), interest payments by the taxpayer to a person or entity that is not a related member will be treated as if made to a related member if the interest is paid in connection with a debt incurred to acquire the taxpayer's assets or stock in a transaction that is referenced in section 368 of Internal Revenue Code, as amended and in effect for the taxable year.? For purposes of this subsection, subsection (b) shall not apply.

(d) Nothing in this section shall be construed to limit or negate the commissioner's authority to make adjustments under sections 33 and 39A.

SECTION 18. Said chapter 63 is hereby further amended by striking out section 32D, as appearing in the 2000 Official Edition, and inserting in place thereof the following section:-

Section 32D. (a) Any domestic business corporation or foreign corporation subject to an excise under section 32 or 39 which is an S corporation or a qualified subchapter S subsidiary, as defined under section 1361 of the Code, as amended and in effect for the taxable year, shall determine the net income measure of the excise as follows:

(i) The net income shall be determined by taking into account subchapter S of said Code.? Income or loss shall be determined as if it were realized or incurred directly by an owner subject to taxation under chapter? 62 or 63, as applicable.?? In the case of an S corporation, income shall be included in the net income measure under this subsection to the extent that such income is taxed to the S corporation for federal income tax purposes.? In the case of a qualified subchapter S subsidiary, income shall be included in the net income measure under this subsection to the extent that such income would have been taxed to the subchapter S subsidiary for federal income tax purposes had it been treated as a separate corporation; and

(ii) Any such domestic business corporation or foreign corporation which is an S corporation or a qualified subchapter S subsidiary and which has total receipts for the taxable year of $6,000,000 or more shall also include in the net income measure of the excise imposed under section 32 or 39 an amount determined by multiplying its net income determined to be taxable in accordance with this chapter by one of the following rates, in lieu of the rate provided in said section 32 or 39:

(1) if total receipts for the taxable year are at least $6,000,000 but less than $9,000,000, 2.63 per cent; and

(2) if total receipts for the taxable year are $9,000,000 or more, 3.95 per cent.

For purposes of this subsection, net income determined to be taxable in accordance with this chapter shall be determined without taking into account subchapter S of said Code, and shall not include income that is taxed to the S corporation or qualified subchapter S subsidiary at the entity level under paragraph (i) of subsection (a).? The term "total receipts" shall mean gross receipts or sales, less returns and allowances, and shall include dividends, interest, royalties, capital gain net income, rental income and all other income.? The cost of goods sold or the cost of operations shall not be deductible in determining such total receipts.? The commissioner shall, by regulation, apply such limits on an aggregate basis to S corporations engaged in a unitary business with majority direct or indirect ownership by common stockholders.? Such aggregating shall also include any other type of entity, including any qualified subchapter S subsidiary, so engaged and so owned which the commissioner finds was established for the purpose of avoiding the foregoing limits.

(b) For purposes of this section, in determining the net income of any qualified subchapter S subsidiary, its gross income shall be determined by computing its gross income as defined under the Code as if it had been taxed as a separate corporation for federal income tax purposes.

SECTION 19. Section 33 of said chapter 63, as so appearing, is hereby amended by inserting after the word "subsidiary", in lines 2 and 17, the following words:- or parent corporation.

SECTION 20. Said section 33 of said chapter 63, as so appearing, is hereby further amended by inserting after the word "corporation", in lines 4 and 6, the following words:- or subsidiary.

SECTION 21. Said section 33 of said chapter 63, as so appearing, is hereby further amended by inserting after the word "parent", in lines 20 and 24, the following words:- or subsidiary.

SECTION 22. The last paragraph of said section 33 of said chapter 63, as so appearing, is hereby amended by adding the following sentence:- This section shall be broadly construed to include the situation in which the corporations referenced transact with one another through persons or entities that are not corporations within the meaning of this chapter.

SECTION 23. Section 38B of said chapter 63, as so appearing, is hereby amended by adding the following subsection:-

(d) Ownership interest in a real estate investment trust which is a related member, as defined in section 31I, shall not be considered a security for the purposes of this section.? A real estate investment trust shall have the same meaning as that contained in section 856 of the Code.

SECTION 24. Section 38C of said chapter 63, as so appearing, is hereby amended by striking out, in line 2, the words "one hundred and fifty-six B" and inserting in place thereof the following words:- 156B and every limited liability company organized under chapter 156C which is not classified as a partnership and has elected to be taxed as a corporation separate from its members for federal income tax purposes.

SECTION 25. Section 39A of said chapter 63, as so appearing, is hereby amended by inserting after the word "subsidiary", in lines 1 and 2, and in line 16, the following words:- or parent corporation.

SECTION 26. Said section 39A of said chapter 63, as so appearing, is hereby further amended by inserting after the word "corporation", in lines 4 and 6, the following words:- or subsidiary.

SECTION 27. Said section 39A of said chapter 63, as so appearing, is hereby further amended by inserting after the word "parent", in lines 18 and 22, the following words:- or subsidiary.

SECTION 28. The last paragraph of said section 39A of said chapter 63, as so appearing, is hereby amended by adding the following sentence:- This section shall be broadly construed to include the situation in which the corporations referenced transact with one another through persons or entities that are not corporations within the meaning of this chapter.?

SECTION 29. Section 42B of said chapter 63, as so appearing, is hereby amended by striking out, in lines 1 to 3, inclusive, the words "Every corporation, association or organization established, organized or chartered under laws other than those of the commonwealth, which has a usual place of business in the commonwealth and" and inserting in the place thereof the following words:- Every foreign limited liability company taxed as a corporation separate from its members for federal income tax purposes and every corporation, association or organization established, organized or chartered under laws other than those of the commonwealth, which has a usual place of business in the commonwealth, and.

SECTION 30. Section 52A of said chapter 63, as so appearing, is hereby amended by adding the following definition:-

(e) "Code", the Internal Revenue Code of the United States, as amended and in effect for the taxable year.

SECTION 31. Section 6 of chapter 110 of the General Laws, as so appearing, is hereby amended by striking out, in line 12, the words "'limited partnership'" and inserting in place thereof the following words:- "limited partnership"; nor to a limited liability company or limited liability partnership which is doing business under its true name and which has registered or qualified with the office of the state secretary.

SECTION 32. Chapter 156B of the General Laws is hereby amended by striking out section 83A, as so appearing, and inserting in place thereof the following section:-

Section 83A. Any 1 or more corporations may consolidate or merge with or into 1 or more domestic limited liability companies or 1 or more foreign limited liability companies as defined in section 2 of chapter 156C or may consolidate or merge with or into 1 or more limited liability partnerships or foreign limited liability partnerships as defined in section 2 of chapter 108A.? The agreement of consolidation or merger shall be adopted by each constituent in accordance with the laws under which it is organized and, in the case of a Massachusetts corporation, in the manner provided in section 78.? Articles of consolidation or merger shall contain the information required by said section 78 and shall become effective when the articles are filed in accordance with section 6, unless the articles specify a later effective date not more than 30 days after filing, in which event the consolidation or merger shall become effective on such later date.

SECTION 33. Section 2 of chapter 156C of the General Laws, as so appearing, is hereby amended by striking out, in line 40, the word "two" and inserting in place thereof the following figure:- 1.

SECTION 34. Subsection (b) of section 6 of said chapter 156C, as so appearing, is hereby amended by adding the following sentence:- Without limitation of the foregoing and except as otherwise expressly set forth in a written operating agreement, a limited liability company shall have the power to make guarantees of the obligations of another person or entity.

SECTION 35. Section 8 of said chapter 156C, as so appearing, is hereby amended by inserting after the word "a", in line 20, the following words:- member or.

SECTION 36. Said section 8 of said chapter 156C, as so appearing, is hereby further amended by inserting after the word "company", in line 21, the following words:- or to another member or manager.

SECTION 37. Section 14 of said chapter 156C, as so appearing, is hereby amended by striking out, in line 3, the words "fewer than two" and inserting in place thereof the following word:- no.

SECTION 38. Said section 14 of said chapter 156C, as so appearing, is hereby further amended by striking out, in line 9, the words "not two" and inserting in place thereof the following word:- no.

SECTION 39. Section 17 of said chapter 156C, as so appearing, is hereby amended by inserting after the word "merger", in line 4,? the following words:- or conversion.

SECTION 40. Section 22 of said chapter 156C, as so appearing, is hereby amended by striking out, in line 5, the words "obligated personally" and inserting in place thereof the following words:- personally liable, directly or indirectly, including, without limitation, by way of indemnification, contribution, assessment or otherwise,.

SECTION 41. Section 24 of said chapter 156C, as so appearing, is hereby amended by striking out, in line 1, the word "Unless" and inserting in place thereof the following:-

(a) Unless.

SECTION 42. Said section 24 of said chapter 156C, as so appearing, is hereby further amended by adding the following 3 subsections:-

(b) If a limited liability company has at least 1 manager, then unless otherwise provided in the operating agreement, the manager shall manage and control the limited liability company and no member shall manage or control the limited liability company.? If a limited liability company has no manager then, unless otherwise provided in the operating agreement, the members shall manage and control the limited liability company.

(c) If a limited liability company has at least 1 manager then, unless otherwise provided in the operating agreement, each manager may execute documents and act for the limited liability company and no member shall execute documents or act for the limited liability company.? If a limited liability company has no manager then, unless otherwise provided in the operating agreement, each member may execute documents and act for the limited liability company.

(d) Unless otherwise provided in the operating agreement, a member or manager of a limited liability company may delegate some or all of such member's or manager's rights and powers to execute documents and act for and manage and control the business and affairs of the limited liability company, including delegating to agents and employees of a member or manager of the limited liability company, and delegating by a management agreement or another agreement with, or otherwise to, other persons.? Unless otherwise provided in the operating agreement, such delegation by a member or manager of a limited liability company shall not cause the member or manager to cease to be a member or manager, as the case may be, of the limited liability company.

SECTION 43. Section 43 of said chapter 156C, as so appearing, is hereby amended by striking out, in line 6, the word "except" and inserting in place thereof the following words:- with respect to a limited liability company formed prior to January 1, 1997, except.

SECTION 44. Section 59 of said chapter 156C, as so appearing, is hereby amended by striking out, in lines 8 to 10, inclusive, the words ", and as having filed a copy of its instrument or declaration with the state secretary in compliance with, chapter one hundred eighty-two".

SECTION 45. Said chapter 156C is hereby further amended by adding the following section:-

Section 69. (a) As used in this section the term "other business entity" shall mean an association or trust as defined in section 1 of chapter 182, and a partnership, whether general or limited and whether domestic or foreign as each may be defined in section 6 of chapter 108A or section 1 of chapter 109, including a foreign or domestic registered limited liability partnership as defined in section 2 of said chapter 108A.

(b) Any other business entity may convert to a domestic limited liability company by complying with subsection (h) and filing with the office of the state secretary in accordance with section 17:

(1) a certificate of conversion to a limited liability company that has been executed in accordance with section 15; and

(2) a certificate of organization of a limited liability company? that complies with section 12 and has been executed in accordance with said section 15.

(c) The certificate of conversion to a limited liability company shall state:

(1) the date on which, and jurisdiction in which, the other business entity was first created, incorporated or otherwise came into being and, if it has changed, its jurisdiction immediately prior to its conversion to a domestic limited liability company;

(2) the name of the other business entity immediately prior to the filing of the certificate of conversion to a limited liability company;

(3) the name of the limited liability company as set forth in its certificate of organization filed in accordance with subsection (b); and

(4) the future effective date, which shall be a date certain, of the conversion to a limited liability company if it is not to be effective upon the filing of the certificate of conversion and certificate of organization.

(d) Upon the effective date of the filing of the certificate of conversion and certificate of organization in the office of the state secretary, the other business entity shall be converted into a domestic limited liability company and the limited liability company shall thereafter be subject to this chapter.

(e) The conversion of any other business entity into a domestic limited liability company shall not be deemed to affect any obligations or liabilities of the other business entity incurred prior to such conversion or the personal liability of any person incurred prior to such conversion.

(f) When a conversion becomes effective under this section, for all purposes of the laws of the commonwealth, all of the rights, privileges and powers of the other business entity that has converted and all property, real, personal and mixed, and all debts due to such other entity, as well as all other things and causes of action belonging to such other entity, shall be vested in the domestic limited liability company and shall thereafter be the property of the domestic limited liability company as they were of such other entity.? The title to any real property vested by deed or otherwise under the laws of the commonwealth in such other entity shall not revert or be in any way impaired by reason of this chapter, but all rights of creditors and all liens upon any property of such other entity shall be preserved unimpaired and all debts, liabilities and duties of such other entity shall then attach to the domestic limited liability company and may be enforced against it to the same extent as if the debts, liabilities and duties had been incurred or contracted by it.

(g) Unless otherwise agreed or required under the laws of another jurisdiction applicable to the other business entity, such other entity shall not be required to wind up its affairs or pay its liabilities and distribute its assets and the conversion shall not be deemed to constitute a dissolution of such other entity.

(h) Prior to filing a certificate of conversion to a limited liability company with the state secretary, the conversion and the operating agreement of the limited liability company shall be approved by the other business entity in the manner provided in its governing documents or the laws applicable to it for authorization of a merger of the other business entity into a limited liability company or, in the absence of such provisions, in the manner of a sale of all or substantially all of its assets.

(i) This section shall not be construed to limit the ability of another business entity to change its governing law, its legal status or its domicile by any other means provided for in its governing documents, instruments or agreements or by applicable laws, including by amendment of the governing documents or operating agreement.

SECTION 46. Section 1A of chapter 200A of the General Laws, as so appearing, is hereby amended by striking out, in line 4, the words "A or six B" and inserting in place thereof the following words:- A, six B or six D.

SECTION 47. Said chapter 200A is hereby further amended by inserting after section 6C the following section:-

Section 6D. Notwithstanding any provision of this chapter to the contrary, unclaimed property payable or distributable in the course of a demutualization or related reorganization of an insurance company shall be presumed abandoned 3 years after the earlier of: (a) the date of last contact with the policyholder; (b) the date of last activity on the account of the policyholder, as defined in 960 CMR 4.02; or (c) the date the property becomes payable or distributable. ?

Before presuming property abandoned pursuant to this section, the treasurer shall determine that the insurance company holding the unclaimed proceeds from its demutualization or related reorganization has made all reasonable, good faith efforts to locate, contact and inform the policyholder or other apparent owner of the existence of the property.

SECTION 48. Section 7 of said chapter 200A, as appearing in the 2000 Official Edition, is hereby amended by inserting after the word "companies", in line 29, the following words:- , and persons holding unclaimed proceeds from the demutualization or related reorganization of a life insurance company.

SECTION 49. Section 8A of said chapter 200A, as so appearing, is hereby amended by striking out subsection (a) and inserting in place thereof the following subsection:-

(a) A person who has filed a report as provided in section 7 shall, by November 1 or, in the case of life insurance companies and persons holding unclaimed proceeds from demutualization or related reorganization of a life insurance company, May 1, pay or deliver to the treasurer at the time of filing the report all property presumed abandoned specified in the report.

SECTION 50. Section 12 of said chapter 200A, as so appearing, is hereby amended by striking out, in lines 32 and 33, the words "or 6B" and inserting in place thereof the following words:- ,6B or 6D.

SECTION 51. Chapter 262 of the General Laws is hereby amended by striking out section 38, as so appearing, and inserting in place thereof the following section:-

Section 38. The fees of the registers of deeds, except as otherwise provided, to be paid when the instrument is left for recording, filing or deposit shall be as follows:

For entering and recording any paper, certifying the same on the original, and indexing it and for all other duties pertaining thereto, $50;

For recording a declaration of trust, $200;

For recording a deed or conveyance, $100;

For recording a mortgage, $150;

For recording a declaration of homestead, $30;

For recording and filing a plan, $50 per sheet; and

For all copies of documents, whether copied out of books or generated electronically, $1 per page, and all coin operated copy machines shall be $.50 per page.

The fees of the registers of deeds, except as otherwise provided, to be paid when the instrument is left for recording, filing or deposit, shall be subject to a surcharge under section 8 of chapter 44B.

SECTION 52. Section 39 of said chapter 262 is hereby amended by striking out, in lines 11 and 12, as so appearing, the words "twenty dollars" and inserting in place thereof the following words:- $50 per sheet.

SECTION 53. Said section 39 of said chapter 262 is hereby further amended by striking out, in line 38, as so appearing, the words "forty dollars" and inserting in place thereof the following figure:- $100.

SECTION 54. Said section 39 of said chapter 262 is hereby further amended by striking out, in line 39, as so appearing, the words "forty dollars" and inserting in place thereof the following figure:- $50.

SECTION 55. Said section 39 of said chapter 262 is hereby further amended by striking out, in line 40, as so appearing, the words "twenty dollars" and inserting in place thereof the following figure:- $50.

SECTION 56. Said section 39 of said chapter 262 is hereby further amended by striking out, in line 41, as so appearing, the words "three dollars" and inserting in place thereof the following figure:- $5.

SECTION 57. Said section 39 of said chapter 262 is hereby further amended by striking out, in line 42, as so appearing, the words "thirty dollars" and inserting in place thereof the following figure:- $150.

SECTION 58. Said section 39 of said chapter 262 is hereby further amended by striking out, in lines 55 and 59, as so appearing, the words "thirty dollars" and inserting in place thereof, in each instance, the following figure:- $50.

SECTION 59. Section 39 of said chapter 262 is hereby further amended by adding the following 2 paragraphs:-

The fee for filing a declaration of homestead shall be $30.

The fee for the filing and registration of a declaration of trust shall be $200.

SECTION 60. The first sentence of section 2 of chapter 313 of the acts of 1998 is hereby amended by inserting after the words "Terminal A",? the following words:- and renovations of the central parking garage.

SECTION 61. Item 4000-0300 in section 2 of chapter 184 of the acts of 2002 is hereby amended by inserting after the words "shall be deemed current fiscal year expenditure refunds, so-called" the following words:- ; provided further, that notwithstanding any general or special law to the contrary, for the purpose of accommodating timing discrepancies between the receipt of recoveries and related expenditures, the division may incur expenses and the comptroller may certify for payment amounts up to the projected total recoveries to be received by June 30, 2003.

SECTION 62. Item 4130-1000 of said section 2 of said chapter 184 is hereby amended by adding the following words:-

General Fund? ...................................................84.75%

Transitional Aid to Needy Families Fund? ........15.25%.

SECTION 63. Section 165 of said chapter 184 is hereby amended by striking out clause (a) and inserting in place thereof the following clause:-

(a) not more than $15,500,000 shall be credited to the Capital Needs Investment Fund; provided, that $12,500,000 shall be expended for the purposes of clause (a) of the first paragraph of said section 357, of which, not less than $10,000,000 shall be paid at the beginning of fiscal year 2003, and not less than $2,500,000 shall be paid in the second half of fiscal year 2003.

SECTION 64. Section 2D of said chapter 184 is hereby amended by inserting after item 7002-6644 the following item:-

7002-6645

For the purposes of a federally funded grant entitled, Reed Act State Unemployment Trust Distribution, to support the costs of initiatives which will enhance and improve the operations and offerings of the Massachusetts One-Stop Career Center system and provide increased direct benefits to workers and employers; provided, that not more than $925,000 shall be expended for the operation of the New Perspectives Program, an effort to provide intensive assessment and counseling services to workers who need assistance in adjusting to career changes; provided further, that not more than $800,000 shall be expended for enhancement to the Massachusetts One-Stop Employment System, MOSES, including, but not limited to, the construction of a relational database, the creation of a capacity for job seekers to conduct intelligent searches of multiple commercial internet-based job banks and improvements in the services offered to employers in the Massachusetts job bank; provided further, that not less than $300,000 shall be expended for a comprehensive job vacancy survey; provided further, that not less than $400,000 shall be expended for the costs associated with integrating existing stand-alone workforce development performance management systems into the MOSES system; and provided further, that not more than $2,000,000 shall be expended for the Massachusetts One-Stop Career Centers; and provided further that all funds appropriated under this item shall be expended within 2 years of the effective date of this act ...........................$4,425,000.

SECTION 65. Section 6 of chapter 244 of the acts of 2002 is hereby amended by adding the following paragraph:-

During fiscal year 2003, funds may be expended by the department of housing and community development, through its contract with the Massachusetts Housing Financing Agency, from the sums set forth and made available in item 7004-7014 of section 2 for the production of housing as such production is authorized under chapter 121D of the General Laws.

SECTION 66. Section 5 of chapter 510 of the acts of 2002 is hereby repealed.

SECTION 67. Notwithstanding any general or special law to the contrary, not later than 10 days after the effective date of this act, the comptroller shall transfer to the general fund the following: $12,000,000 from the Workforce Training Fund, established in section 2RR of chapter 29 of the General Laws, the balance of the Clean Elections Judgment Fund, established pursuant to subsection (b) of section 174 of chapter 184 of the acts of 2002;? $6,500,000 from the Caseload Increase Mitigation Fund established in section 2NN of said chapter 29; and $6,500,000 from the Health Protection Fund established pursuant to 2GG of said chapter 29.

SECTION 68. Notwithstanding any general or special law to the contrary, not later than 10 days after the effective date of this act, the comptroller shall transfer the balance, as of January 1, 2003, of the account established in clause (b) of section 5C of chapter 29 of the General Laws to the general fund.? Any funds encumbered or transferred after January 1, 2003 shall be unencumbered or transfers reversed.? Nothing in this section shall affect any underlying capital authorizations and the ability to subsequently finance these authorizations through bond proceeds.

SECTION 69. Notwithstanding any general or special law to the contrary, not later than 15 days after the effective date of this act, the Massachusetts Technology Collaborative shall develop a plan that ensures that on or before June 30, 2003 it shall pay to the state treasurer a total of $17,000,000 for deposit in the general fund from the Renewable Energy Trust Fund established pursuant to section 4E of chapter 40J of the? General Laws in a manner that minimizes disruption to the fund.

?SECTION 70. A school facilities capital or major reconstruction project which has received final municipal approval by a favorable vote by the legislative body of the municipality, subject to its charter, on or before June 30, 2003 and which meets all department of education criteria shall be placed on the priority waiting list for reimbursement pursuant to section 10 of chapter 70B of the General Laws at the rate for which it would have been eligible on January 31, 2003, subject to the requirements of section 6 and all other sections of said chapter 70B.? Notwithstanding said section 6, the department of education shall not implement a comprehensive moratorium on review or approval of pending school construction applications prior to June 30, 2003.?

SECTION 71. Sections 12 and 14 are intended to clarify existing laws with respect to distributions received by businesses subject to tax under chapter 63 of the General Laws.? The laws have recently been interpreted by some taxpayers to substantially exempt from taxation real estate investment trust distributions received by such businesses.? By the enactment of this law, it is the statement of the general court's intent that, for the purposes of those subject to an excise under said chapter 63, such distributions, in conformity with section 243(d) of the Internal Revenue Code, shall not be treated as dividends, have never been exempt or partially exempt and are subject to taxation.

SECTION 72. In order to maximize the revenues of the commonwealth in fiscal years 2003 and 2004 and notwithstanding section 14 of chapter 65 of the General Laws and section 97 of chapter 684 of the acts of 1975, the commissioner of revenue shall accept, in full satisfaction of the tax required on future interests under? said chapter 65, an amount less than would otherwise be required to be paid by strict application of said chapter 65.? The commissioner may compromise and settle such future interest liability provided the full amount agreed under the compromise is paid in full not later than December 15, 2003.

The commissioner shall exercise his authority in a manner that will allow the greatest number of taxpayers to pay such future interest liability in advance of the payment date under said chapter 65.? No taxpayer who has paid all or any part of the tax due under said chapter 65 shall have any claim for an abatement or refund which exceeds the amount which could be paid pursuant to this act.

Not more than 30 days after the effective date of this act, the commissioner shall publish any rules and regulations necessary for the implementation of this section.

SECTION 73. (a) The terms used in this section shall have the following meanings unless the context clearly requires otherwise:

"Amnesty period", a period of time commencing not earlier than the date a municipal legislative body establishes a municipal tax amnesty program according to this act and expiring on December 31, 2003 or on such earlier date as the municipal legislative body might determine, during which the municipal tax amnesty program established by the municipal legislative body shall be in effect in that city or town.

"Collector", as defined in chapter 60 of the General Laws.

"Covered amount", the aggregate of all penalties, fees, charges and accrued interest assessed by the collector or treasurer for the failure of a certain taxpayer to timely pay a subject liability; provided, that the covered amount shall not include the subject liability itself.

"Municipal legislative body", the legislative body of a municipality, subject to its charter.

"Municipal tax amnesty program", a temporary policy whereby a city or town forever waives its right to collect all or any uniform proportion of the covered amount, as determined by the local enacting authority, then due from any person who, prior to the expiration of the amnesty period, voluntarily pays the collector or treasurer the full amount of the subject liability that serves as the basis for said covered amount; provided, that a municipal tax amnesty program shall not include any policy that enables or requires a city or town to waive its right to collect the covered amount from any person who, as of the time the amnesty period commences, is or was the subject of a criminal investigation or prosecution for failure to pay the city or town any subject liability or covered amount.

"Subject liability", the principal amount of a particular tax or excise liability payable by a taxpayer under chapter 59, 60, 60A, or 60B of the General Laws, as determined by the municipal legislative body.

"Treasurer", as defined in chapter 41 of the General Laws.

(b) Notwithstanding any general or special law to the contrary, the municipal legislative body in any city or town may vote to establish a municipal tax amnesty program according to the provisions of this section and shall, at the same time as such vote, determine the amnesty period.? The commissioner of revenue may issue such guidelines as he deems appropriate to carry out this section.

SECTION 74. Notwithstanding any general or special law to the contrary, not more than 20 days after the effective date of this act, the comptroller shall transfer to the general fund from budgeted funds other than funds that contribute to the consolidated net surplus in the operating funds as defined in chapter 29 of the General Laws, an amount equal to allotment reductions made in items of appropriation charged to such other budgeted funds pursuant to section 9C of said chapter 29; provided, however, that no such transfer shall be made from a budgeted fund that currently has or is projected to have a deficiency during fiscal year 2003; provided further, that no such transfer shall be made from any fund if the transfer would cause the loss of federal funding in excess of the amount transferred; and provided further, that the comptroller shall file with the house and senate committees on ways and means a plan detailing by fund the amount proposed to be transferred from the budgeted funds 10 days before the transfers occur.

SECTION 75. Notwithstanding section 3 of this act, nothing in subsection (s) of section 39 of chapter 19A of the General Laws shall authorize the violation or breach of any existing contractual agreements between the secretary of elder affairs and any pharmacy benefits managers that are in place on the effective date of this act.

SECTION 76. Notwithstanding any general or special law to the contrary, the comptroller in collaboration with the commissioner of revenue, shall transfer to the Commonwealth Stabilization Fund all monies assessed and received for tax years 1999, 2000 and 2001 pursuant to sections 12 and 14.?

SECTION 77. Notwithstanding any general or special law to the contrary, the comptroller in collaboration with the commissioner of revenue, shall transfer to the Commonwealth Stabilization Fund all monies received pursuant to section 72.?

SECTION 78. Notwithstanding any general or special law to the contrary, the comptroller, in collaboration with the commissioner of revenue, shall transfer to the Commonwealth Stabilization Fund any and all monies received during fiscal year 2003 pursuant to sections 47 to 49, inclusive.?

SECTION 79. Notwithstanding any general or special law to the contrary, fees collected pursuant to the fee structure in place under section 23 of chapter 60 of the General Laws and section 38 of chapter 262 of the General Laws prior to March 15, 2003 shall continue to be deposited into the General Fund by the registries of deeds operated by the commonwealth pursuant to section 5 of chapter 34B of the General Laws.? The registries of deeds operated by counties shall continue to deposit such fees with the county treasurer pursuant to section 39 of chapter 36 of the General Laws.? Fees collected in excess of said prior fee structure on or after March 15, 2003 pursuant to sections 6 and 51 of this act, including all such fees collected by the registers of deeds which are operated by counties, shall be deposited into the General Fund of the commonwealth.?

Fees collected pursuant to the fee structure in place for section 39 of chapter 262 of the General Laws prior to March 15, 2003 shall continue to be deposited into the General Fund.? Fees collected on or after March 15, 2003, in excess of the prior fee structure and pursuant to said section 39 of said chapter 262, as amended by sections 52 to 59, inclusive, shall also be deposited into the General Fund of the commonwealth.

SECTION 80. There shall be an advisory group to make recommendations to register of deeds about the Registers Technological Fund and the County Registers Technological Fund established in sections 2JJJ and 2KKK of chapter 29 of the General Laws, which shall be chaired by the state secretary or his designee, and shall include the registers of each registry district, or their designees, and representatives nominated by the following organizations: 2 from the Massachusetts Conveyancers Association, 1 of whom shall be a title examiner with significant experience in searching and abstracting real property titles and 1 of whom shall be a practicing attorney; and 1 from each of the following organizations: the Massachusetts Association of Realtors, the Greater Boston Real Estate Board, the Massachusetts Land Title Association, the Massachusetts Bankers Association and the Massachusetts Mortgage Bankers Association, all of whom shall be appointed by the state secretary.? The advisory group shall create a plan within 90 days of the effective date of this act with specific recommendations for the use of monies in the funds.? This plan shall be distributed to all registers upon its completion.?? This plan shall be used to inform the decisions of the state secretary and of each registry under the control of county government with respect to expenditures from the funds.? The advisory group shall also report appropriate recommendations to the state secretary, from time to time, so long as the surcharges required under sections 2 and 5 shall remain in effect.

SECTION 81. (A) Notwithstanding section 9C of chapter 29 of the General Laws, of the funds appropriated in item 4130-1000 of section 2 of chapter 184 of the acts of 2002, $13,121,630 shall be expended for statewide neonatal and postnatal home parenting education and home visiting programs for at-risk newborns.

SECTION 82. (a)? As used in this section, the following words shall have the following meanings unless the context clearly requires otherwise:

"Agreement", the Streamlined Sales and Use Tax Agreement.

"Certified automated system", software certified jointly by the states that are signatories to the Agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state and maintain a record of the transaction.

"Certified service provider", an agent certified jointly by the states that are signatories to the Agreement to perform all of the seller's sales tax functions.

"Person", an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation or any other legal entity.

"Sales tax", the tax levied under chapter 64H of the General Laws.

"Seller", a person making sales, leases or rentals of personal property or services.

"State", a state of the United States and the District of Columbia.

"Use tax", the tax levied under chapter 64I of the General Laws.

"Vendor", shall have the same meaning as in section 1 of said chapter 64H.

(b) The commonwealth finds that a simplified sales and use tax system will reduce and, over time, eliminate the burden and cost for vendors to collect the commonwealth's sales and use tax.? The commonwealth further finds that it should participate in multi-state discussions to review or amend the terms of the agreement to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and all types of commerce.

(c) For the purpose of reviewing or amending the agreement embodying the simplification requirements as contained in subsection (f), the commonwealth shall enter into multistate discussions.? For purposes of the discussions, the commonwealth shall be represented by not more than 4 delegates, 2 of whom shall be appointed by the governor, 1 of whom shall represent the department of revenue and 1 of whom shall represent the Retailers Association of Massachusetts, 1 of whom shall be appointed by the president of the senate and 1 of whom shall be appointed by the speaker of the house of representatives.

(d) Notwithstanding any general or special law to the contrary, the department of revenue shall enter into the Agreement with 1 or more states to simplify and modernize the administration of the sales and use tax in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.? In furtherance of the Agreement, the department of revenue may act jointly with the states that are members of the Agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers.? The department of revenue may take other actions reasonably required to implement this section or to otherwise substantially reduce the administrative burdens associated with sales and use tax compliance.? Other actions authorized by this section shall include, but not be limited to, the adoption of rules and regulations and the joint procurement with other member states of goods and services in furtherance of the cooperative Agreement.? The department of revenue or the department's designee may represent the commonwealth before the other states that are signatories to the Agreement.

(e) Notwithstanding any general or special law to the contrary, the Agreement shall not, in whole or in part, invalidate or amend any laws of the commonwealth.? Adoption of the Agreement by the commonwealth shall not amend or modify any other law.? Implementation of any condition of the Agreement in the commonwealth, whether adopted before, at, or after membership of this state in the Agreement, shall be by the action of the commonwealth.

(f) The department of revenue shall not enter into the Agreement unless the Agreement requires each state to abide by the following requirements:

(1) The Agreement shall set restrictions to limit over time the number of the state rates.

(2) The Agreement shall establish uniform standards for the following:

(i) the sourcing of transactions to taxing jurisdictions;

(ii) the administration of exempt sales; and

(iii) sales and use tax returns and remittances.

(3) The Agreement shall provide for a central electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states.

(4) The Agreement shall provide that registration with the central registration system and the collection of sales and use taxes in the signatory states shall not be used as a factor in determining whether the seller has nexus with a state for any tax.

(5) The Agreement shall provide for reduction of the burdens of complying with local sales and use taxes through the following:

(i) restricting variances between the state and local tax bases;

(ii) requiring states to administer any sales and use taxes levied by local jurisdictions within the state so the sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions;

(iii) restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes;

(iv) providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.

(6) The Agreement shall outline any monetary allowances that are to be provided by the states to sellers or certified service providers.? The Agreement shall allow for a joint public and private sector study of the compliance cost on sellers and certified service providers to collect sales and use taxes for state and local governments under various levels of complexity to be completed by July 1, 2003.

(7) The Agreement shall require each state to certify compliance with the terms of the Agreement prior to joining and to maintain compliance under the laws of the member state, with all provisions of the Agreement while a member.

(8) The Agreement shall require each state to adopt a uniform policy for certified service providers that protects the privacy of consumers and maintains the confidentiality of tax information.

(9) The Agreement shall provide for the appointment of an advisory council of private sector representatives and an advisory council of nonmember state representatives to consult with in the administration of the Agreement.

(g) The Agreement is an accord among individual cooperating sovereigns in furtherance of their governmental functions.? The Agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.

(h) The Agreement binds and inures only to the benefit of the commonwealth and the other member states.? No person is an intended beneficiary of the Agreement.

(i) Any benefit to a person is established by the law of the commonwealth and the other member states and not by the terms of the Agreement.? No law of the commonwealth, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement.? No person shall have any cause of action or defense under the Agreement or by virtue of the commonwealth's approval of the Agreement.? No person shall challenge, in any action brought under any provision of law, any action or inaction by any department, agency or other instrumentality of the commonwealth or any political subdivision of the commonwealth on the ground that the action or inaction is inconsistent with the Agreement.

SECTION 83. (a) The general court finds that:

(1) the reconstruction of the central artery and of the central artery north area and the construction of the Ted Williams tunnel, as those terms are defined in section 3 of chapter 81A of the General Laws, and related improvements, in this section called the project, represent the most expensive and complex public works project in the commonwealth's history;

(2) evidence only recently available indicates that substantial breaches of agreements relating to the project may have occurred and significant further investigation is necessary before litigation can be commenced to recover funds owed the commonwealth, its authorities and agencies, and others;

(3) the failure to recover substantial sums owed to the commonwealth would impose a significant burden on scarce public resources;

(4) under these circumstances, it is fundamentally unfair to prevent the recovery of any of these funds wrongfully paid by the commonwealth and others; and

(5) therefore, this section is reasonable and necessary to serve important public purposes.?

(b) Notwithstanding any general or special law or contract to the contrary, except chapter 258 of the General Laws, every action arising out of the planning, design, management or construction of the project, if the action is brought by the commonwealth or the United States, or by any of their agencies or authorities, or by any contractor or subcontractor of any of them, shall be brought not later than 10 years from the date that the cause of action arises or from the effective date of this section, whichever is later.? This section shall apply regardless of when the action or claim accrued or was filed, and regardless of whether it may have lapsed or otherwise be barred by time under the laws of the commonwealth.

(c) Notwithstanding any general or special law or contract to the contrary, any sums owed to the commonwealth and recovered pursuant to this section shall be deposited in the Commonwealth Stabilization Fund, established pursuant to section 2H of chapter 29 of the General Laws.? The Comptroller shall notify the house and senate committees on ways and means no later than 30 days after any such deposit in said Commonwealth Stabilization Fund.

[The following section was vetoed by the Governor, for message see S1954]
SECTION 83A. Notwithstanding any general or special law to the contrary, if there is insufficient funding during fiscal year 2003 to provide for the range of programs funded as of January 1, 2003 by item 4401-1000 of section 2 of chapter 184 of the acts of 2002, the department of transitional assistance shall revise its policies as follows for recipients who were actively enrolled in or receiving services funded from said item 4401-1000 on or prior to January 30, 2003:

(1) The department shall allow active participation in self-directed job search efforts, as defined by the department, to qualify a family for an extension of time-limited benefits pursuant to subsection (f) of section 110 of chapter 5 of the acts of 1995 and shall be deemed to meet the work requirement in subsection (j) of said section 110 of said chapter 5 to the same degree as did participation in a job search or other program funded by said item 4401-1000 as of January 1, 2003.? These policies shall only apply to recipients not able to participate in such a job search program due to insufficent funding.

(2) The department shall not sanction recipients who are unable to comply with the work requirement in said subsection (f) of said section 110 of said chapter 5 or the terms of an employment development plan because of insufficient funding for programs previously funded by said item 4401-1000 including, but not limited to, transportation services.

(3) The department shall not deny benefits to, or otherwise sanction, an applicant for, or recipient of, transitional aid to families with dependent children benefits pursuant to said section 110 of said chapter 5 for failure to comply with the teen parent school attendance rules where the department is unable to provide or arrange for an appropriate school program because of insufficient funding for the young parents program previously funded by said item 4401-1000.

(4) For recipient who is participating in, is required to participate in or volunteers to participate in a program previously funded by said item 4401-1000 or a comparable program, the department shall not count toward the time limit imposed by said subsection (f) of said section 110 of said chapter 5 any time that passes until the department, in consultation and collaboration with the division of employment and training, the one-stop career centers and other workforce development agencies, has arranged a placement in a comparable education, training or job search program funded by the federal, state or local government to prepare the recipient for reaching the time limit.

(5) The department shall continue to operate an employment services program under which the department collects information about education, training and other work preparation programs that are available in each local area, actively seeks to maximize the number of slots in such programs that are available to serve current and former recipients of transitional aid to families with dependent children, makes referrals of current and former recipients to the programs and facilities the delivery of child care and transportation services to such recipients who are required to or wish to participate in such programs.

SECTION 84. By the enactment of sections 10, 15, 17, 19 to 22, inclusive, and 25 to 28, inclusive, the general court clarifies its original intention that the taxpayer is required to possess for a transaction, both: (1) a valid, good-faith business purpose, other than tax avoidance; and (2) economic substance apart from the asserted tax benefit in order to claim a deduction, exemption or other tax benefit.

SECTION 85. Sections 2, 4, 5 and 6 and sections 51 to 59, inclusive, shall take effect on March 15, 2003.? All documents received by the registers pursuant to section 23 of chapter 60 and sections 38 and 39 of chapter 262 of the General Laws which are postmarked prior to March 15, 2003 shall be recorded under the fee structure in effect for said sections prior to March 15, 2003.

Notwithstanding sections 38 and 39 of chapter 262 of the General Laws, as amended by sections 51 to 59, inclusive, of this act, to the contrary, the fees and surcharges applicable to any discharge, release or partial release of mortgage that is presented for recording or filing within 120 days of the effective date of this section, shall be governed by the provisions of said sections 38 and 39 that were in effect prior to March 15, 2003.

SECTION 86. Sections 7 to 9, inclusive, 13, 24, and 29 shall be effective for tax years beginning on or after January 1, 2003.

SECTION 87. Sections 10, 15, 17, 19 to 22, inclusive, and 25 to 28, inclusive, shall be in effect for tax years beginning on or after January 1, 2002.? Nothing in this act shall be construed to restrict any authority the commissioner had prior to this act to adjust taxpayer transactions for want of an adequate business purpose or on other grounds.

SECTION 88. Sections 12 and 14 shall be effective for tax years ending on or after December 31, 1999.

[The following section was vetoed by the Governor, for message see S1954]
SECTION 89. Section 18 shall apply to tax years beginning on or after March 1, 2003.

SECTION 90. Section 23 shall take effect July 1, 2003.

[The following section was vetoed by the Governor, for message see S1954]
SECTION 91. Section 83A shall cease to be effective on the effective date of the general appropriation act for fiscal year 2004.

Approved (in part) March 5, 2003.