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  • Acts
  • 2003
  • Chapter 9 AN ACT RELATIVE TO THE ADMINISTRATION OF THE TAX LAWS.

Whereas , The deferred operation of this act would tend to defeat its purpose, which is to make certain changes forthwith to the administration of certain tax laws, 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. Subsection (b) of section 21 of chapter 62C of General Laws, as amended by section 15 of chapter 186 of the acts of 2002, is hereby further amended by striking out clause (9) and inserting in place thereof the following clause:-

(9) the disclosure to the commissioner of transitional assistance or the commissioner of medical assistance, upon his written request, of the fact that a specific bank or other entity paying interest income, doing business in the commonwealth, has filed for any year a report under section 8 with respect to interest paid by it to a designated recipient of public assistance under any program administered by the department of transitional assistance or the division of medical assistance and of the amount of the interest so reported, together with the identification of the account with respect to which the interest was paid.

SECTION 2. Section 1 of chapter 62D of the General Laws, as most recently amended by section 66 of chapter 184 of the acts of 2002, is hereby further amended by striking out the definition of "Claimant agency" and inserting in place thereof the following definition:-

"Claimant agency", the IV-D agency as set forth in chapter 119A, the division of medical assistance, the division of employment and training, the department of transitional assistance, the board of higher education in the exercise of its duty to aid and foster programs supporting higher education pursuant to chapter 15A, the office of the state comptroller, or the division of health care finance and policy in the exercise of its duty to administer the uncompensated care pool pursuant to chapter 118G.

SECTION 3. Said section 1 of said chapter 62D, as most recently amended by section 67 of said chapter 184, is hereby further amended by striking out the definition of "Debt" and inserting in place thereof the following definition:-

"Debt", an unpaid spousal or child support obligation which is being enforced by the claimant agency, or which is collected or ordered to be collected by a court, whether or not there is an outstanding judgment for the sum; an amount owed the division of medical assistance by a debtor; an amount owed the department of employment and training; an amount owed the department of transitional assistance by a recipient, or former recipient, of public assistance; any liquidated sum due and owing to the corporation on an education loan made under a program administered by the corporation in behalf of the commonwealth whether or not there is an outstanding judgment for that sum; any liquidated sum, certified by the comptroller as due and owing to any state agency, as defined in section 1 of chapter 29; any overdue debt certified by the comptroller as due and owing to a city or town of the commonwealth or any agency of the city or town or any state authority as defined in said section 1; or, an amount owed the division of health care finance and policy on behalf of the uncompensated care pool by a person or a guarantor of a person who received free care services paid for in whole or in part by uncompensated care pool, pursuant to subsection (m) of section 18 of chapter 118G.

SECTION 4. Said section 1 of said chapter 62D, as most recently amended by said section 67 of said chapter 184, is hereby further amended by striking out the definition of "Debtor" and inserting in place thereof the following definition:-

"Debtor", any individual owing money for support payments to the claimant agency or to persons for whom the claimant agency is providing enforcement services under state and federal law; any individual owing money to the division of medical assistance for costs incurred as a result of noncompliance by that individual with an order to provide coverage for the cost of health services to a child eligible for assistance under Title XIX of the Social Security Act, as further described in section 23 of chapter 118E; any individual owing money to the division of employment and training; any individual owing money to the department of transitional assistance for overpayments of public assistance; any individual owing money on an education loan to the corporation or any individual or entity owing a debt as defined herein, which obligation has not been adjudged satisfied by court order, set aside by court order, or discharged in bankruptcy; any individual owing money as certified by the comptroller to any state agency, as defined in section 1 of chapter 29, or to a city or town of the commonwealth or any agency of a city or town, or to any state authority as defined in said section 1; or any individual owing the Uncompensated Care Trust Fund administered by the division of health care finance and policy for the cost of free care services paid for in whole or in part by the uncompensated care pool, pursuant to subsection (m) of section 18 of chapter 118G.

SECTION 5. Section 10 of said chapter 62D, as appearing in the 2000 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Notwithstanding section 21 of chapter 62C or any other law prohibiting disclosure by the department of the contents of taxpayer's records of information and notwithstanding any confidentiality statute applicable to the claimant agency, all information exchanged among the department, the claimant agency, including the IV-D agency and the board of regents of higher education or education agency similar to the corporation of another jurisdiction, the department of transitional assistance, the division of medical assistance, the corporation, the office of the state comptroller, and the division of health care finance and policy, the debtor, and the non-debtor spouse necessary to accomplish and effectuate the intent of this chapter is lawful.

SECTION 6. Said chapter 62D is hereby further amended by striking out section 13, as amended by section 68 of chapter 184 of the acts of 2002, and inserting in place thereof the following section:-

Section 13. In the event that a debtor owes liabilities to several claimant agencies, priority of set-off against any refund shall be as follows: (i) unpaid state tax liabilities; (ii) unpaid spousal or child support obligations certified by the IV-D agency as set forth in chapter 119A; (iii) unreimbursed costs of health services to a child eligible for medical assistance under Title XIX of the Social Security Act; (iv) unpaid division of employment and training liabilities; (v) the board of higher education; (vi) other debts as defined in section 1 in the order certified by the comptroller; (vii) the department of transitional assistance; (viii) the division of health care finance and policy for obligations to the Uncompensated Care Trust Fund for the unreimbursed costs of health care services from the uncompensated care pool, pursuant to subsection (m) of section 18 of chapter 118G; and (ix) any overdue debt certified by the comptroller as due and owing to a city or town or to an agency of a city or town or to a state authority as defined in section 1 of chapter 29.

SECTION 7. Section 3 of chapter 62E of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

The commissioner shall design, develop, implement and operate a wage reporting and financial institution match system: (1) for the purpose of verifying financial eligibility of a participant in an entitlement program of the commonwealth or any political subdivision thereof or their respective agencies, including the director of housing and community development, a local administering agency and a local housing authority, and including, the division of health care finance and policy with respect to payments for free care services made from the uncompensated care pool pursuant to section 18 of chapter 118G; (2) for purposes of verifying the eligibility of an employee of the commonwealth or any political subdivision thereof or their respective agencies for workers' compensation benefits; and (3) for purposes of administering the tax laws and the child support enforcement program of the commonwealth. The commissioner may, with the approval of the secretary of the executive office of administration and finance, adopt regulations which shall include other programs in said system; but the commissioner shall submit proposed regulations to the house and senate committees on ways and means not less than 60 days before filing the final regulations with the state secretary.

SECTION 8. The definition of "Sale at retail" or "retail sale" in section 1 of chapter 64H of the General Laws, as most recently amended by section 1 of chapter 469 of the acts of 2002, is hereby further amended by adding the following sentence:- For purposes of reporting the sale or recharge of prepaid calling arrangements, the sale or recharge of the arrangements shall be considered a taxable sale of tangible personal property unless the vendor is otherwise required to report sales of telecommunications services.

SECTION 9. Section 5A of chapter 119A of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by striking out, in line 37, the words "or to the obligor".

SECTION 10. Said section 5A of said chapter 119A, as so appearing, is hereby amended by striking out, in lines 89 to 92, the words "the social security number of a child receiving IV-D services for purposes directly connected to obtaining health care coverage for such child to an employer or provider of health care coverage" and inserting in place thereof the following words:- personal data for purposes directly connected to obtaining health care coverage for a parent or child receiving IV-D services to an employer or provider of health care coverage and to the division of medical assistance.

SECTION 11. Subsection (a) of section 12 of said chapter 119A, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Each judgment or order for support issued pursuant to section 28 of chapter 119, section 40 of chapter 201 and chapters 207, 208, 209, 209A and 209C, or received, entered or registered pursuant to chapter 209D shall conform to and shall be enforced according to this section.

SECTION 12. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 8, the word "paragraph (7)" and inserting in place thereof the following word:- paragraph (6).

SECTION 13. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in lines 12 and 43, the word "paragraph (6)" and inserting in place thereof, in each instance, the following word:- paragraph (5).

SECTION 14. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 22, the words "services until" and inserting in place thereof the following words:- services. Until.

SECTION 15. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "obligee", in line 34, the following words:- ; but any judgment or order of support which is solely for alimony or spousal support shall be made payable to the obligee.

SECTION 16. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "withholding", in line 44, the following words:- ; but any order of support payable by withholding income of the obligor which is solely for alimony or spousal support shall be paid to the obligee.

SECTION 17. Paragraph (5) of subsection (b) of said section 12 of said chapter 119A, as so appearing, is hereby amended by inserting after the fourth sentence the following 2 sentences:- If the obligor is required to provide health care coverage for a child of his through an employment-related health plan and if the IV-D agency has the name and address of the employer, the IV-D agency shall transfer the national medical support notice, as required by Title IV, Part D of the Social Security Act, to the employer notifying the employer to enroll the child in a health care plan provided by the employer for which the obligor is eligible. The notice may be transmitted to the employer by any method, including paper, facsimile, magnetic tape or other electronic means.

SECTION 18. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "amount", in line 86, the following words:- sufficient to comply with the support order.

SECTION 19. The last paragraph of subsection (b) of said section 12 of said chapter 119A, as so appearing, is hereby amended by adding the following sentence:- If on the basis of mistake of fact, the obligor contests the income withholding or contests the withholding of the employee share of premiums for health care coverage, the employer shall initiate and continue the withholding until the employer receives notice from the IV-D agency, the court or an administrative agency of competent jurisdiction to terminate the income withholding or the withholding of the employee share of premiums for health care coverage.

SECTION 20. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 130, the word "When" and inserting in place thereof the following words:- With respect to a case receiving IV-D services, when.

SECTION 21. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "and", in line 134, the following words:- within 2 business days of receipt of the information,.

SECTION 22. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in lines 135 and 136, and in lines 141 and 148, the words "order for health care coverage" and inserting in place thereof, in each instance, the following words:- national medical support notice.

SECTION 23. The third paragraph of subsection (c) of said section 12 of said chapter 119A, as so appearing, is hereby amended by inserting after the second sentence the following sentence:- With respect to a case receiving IV-D services, the IV-D agency shall transfer the income withholding order, the national medical support notice, or both, to the obligor's employer or other source of periodic income within 2 business days of the entry of the obligor's employment information in the wage reporting system as set forth in chapter 62E.

SECTION 24. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in lines 151 and 152, the words "order for health care coverage applies and" and inserting in place thereof the following words:- national medical support notice applies, notwithstanding the employee's failure to sign or submit an application for enrollment for health care coverage and without regard to any restrictions on enrollment periods. The provider shall not refuse to enroll the child for whom the national medical support notice applies on the grounds stated in subsection (m) and.

SECTION 25. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 159, the word "of", the first time it appears, and inserting in place thereof the following word:- or.

SECTION 26. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in lines 183 and 184, the words "order for health care coverage" and inserting in place thereof the following words:- national medical support notice.

SECTION 27. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "child", in line 190, the following words:- , notwithstanding the employee's failure to sign or submit an application for enrollment for health care coverage and without regard to any restrictions on enrollment periods. The employer or provider of health care shall not refuse to enroll the child on the grounds stated in subsection (m).

SECTION 28. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 229, the words "notice of the order for health care coverage" and inserting in place thereof the following words:- the national medical support notice.

SECTION 29. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 230, the words "subsection (d)" and inserting in place thereof the following words:- this section.

SECTION 30. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in line 231, the words "health care order" and inserting in place thereof the following words:- the national medical support notice.

SECTION 31. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "order", in line 347, the following words:- or upon receipt of a national medical support notice, or both.

SECTION 32. Subsection (k) of said section 12 of said chapter 119A, as so appearing, is hereby amended by striking out the first, second and third sentences and inserting in place thereof the following 6 sentences:- Upon receipt of the national medical support notice or upon application of the employee pursuant to the order for health care coverage, the employer shall enroll the child in the health care plan. The national medical support notice shall have the same effect as an enrollment application signed by the employee and shall operate to enroll the child in the obligor's health care plan. Within 20 business days after the date of the national medical support notice, or sooner if reasonable, the employer shall transmit the national medical support notice to the administrator or provider of the appropriate group health plan for which the child may be eligible. Within 40 business days after the date of the national medical support notice, or sooner if reasonable, the plan administrator or the provider of health care coverage shall complete and return the response to the national medical support notice to the issuing IV-D agency. The employer or provider of health care coverage shall enroll a child, notwithstanding the employee's failure to sign an enrollment application. If there is more than 1 health care option available under the group health plan and the obligor has not chosen 1 of the health care options, the plan administrator or the provider of health care coverage shall enroll the child in the plan's default option, if any, unless the IV-D agency notifies the plan administrator or the provider of health care coverage to enroll the child in a health care option chosen by the obligee.

SECTION 33. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by striking out, in lines 394 and 395, the words "by the division of medical assistance or by the IV-D agency" and inserting in place thereof the following words:- , by the division of medical assistance or upon receipt of the national medical support notice from the IV-D agency.

SECTION 34. Subsection (l) of said section 12 of said chapter 119A, as so appearing, is hereby amended by adding the following sentence:- The IV-D agency shall promptly notify the employer when there is no longer an order for medical support in effect.

SECTION 35. Said section 12 of said chapter 119A, as so appearing, is hereby further amended by inserting after the word "coverage", in line 416, the following words:- or that such child receives benefits or is eligible to receive benefits under any plan administered by the division of medical assistance or by the department of public health.

SECTION 36. Section 110I of chapter 175 of the General Laws, as so appearing, is hereby amended by adding the following subsection:-

(f) If a judgment or order for child support provides that a member of a group hospital, surgical, medical or dental insurance plan provided for in section 110 is required to provide health care coverage for his child, the insurance company administering the plan shall:

(1) comply with the terms of the national medical support notice sent pursuant to section 12 of chapter 119A;

(2) provide notice of cancellation or adjustment of coverage to the child's custodial parent or legal guardian concurrent with notice to the member; and

(3) accept the designation of the state secretary as agent for the child or the child's custodial parent or legal guardian for service of process and for receipt of first class mail, pursuant to the address confidentiality program established pursuant to chapter 9A.

SECTION 37. Chapter 47 of the acts of 1997 is hereby amended by striking out section 36 and inserting in place thereof the following section:-

Section 36. This act shall expire on the later of June 30, 2005 or the date of the termination of the MassHealth demonstration project approved by the Secretary of the United States Department of Health and Human Services pursuant to section 1115 of the Social Security Act, as extended or renewed from time to time.

SECTION 38. Sections 8 to 37, inclusive, shall take effect on April 1, 2003.

Approved April 1, 2003.