SWM Fiscal Year 2009 :: Outside Sections


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Medicare Part D and Prescription Advantage II

SECTION 9. Said section 39 of said chapter 19A, as so appearing, is hereby further amended by adding the following 3 subsections:-

(t) In addition to the eligibility requirements set forth in this section, to be considered eligible for the program, individuals who receive Medicare and are applying for, or are then enrolled in, the program shall also be enrolled in a Medicare prescription drug plan, a Medicare Advantage prescription drug plan, or a plan which provides creditable prescription drug coverage as defined by section 104 of the Medicare Prescription Drug, Improvement and Modernization Act of 2003, in this section called MMA, and which provides coverage of the cost of prescription drugs actuarially equal to or better than that provided by Medicare Part D, in this section called a creditable coverage plan.

(u) In addition to the eligibility requirements set forth in this section, to be considered eligible for the program, individuals who receive Medicare and are applying for, or are then enrolled in, the program, who may qualify for the low-income subsidy provided under MMA Subpart P - Premiums and cost-sharing subsidies for low-income individuals, shall apply for those subsidies. To the extent permitted by MMA and regulations adopted under it and all other applicable federal law, the program may apply on behalf of a member for enrollment into a Medicare prescription drug plan or for the low-income subsidy provided under MMA and may receive information about the member's eligibility and enrollment status necessary for the operation of the program.

(v) For enrollees who qualify for enrollment in a Medicare Part D plan, the program shall provide a supplemental source of financial assistance for prescription drug costs, in this section called supplemental assistance, in lieu of the catastrophic prescription drug coverage provided under this section. The program shall provide supplemental assistance for premiums, deductibles, payments and co-payments required by a Medicare prescription drug plan or Medicare Advantage prescription drug plan, and shall provide supplemental assistance for deductibles, payments and co-payments required by a creditable coverage plan. The department may take steps for the coordination of these benefits. The department shall establish the amount of the supplemental assistance it will provide enrollees based on a sliding income scale and the coverage provided by the enrollees' Medicare prescription drug plan, Medicare Advantage prescription drug plan or creditable coverage plan. In addition to the eligibility requirements set forth in this section, to be considered eligible for the program, an individual shall have a household income of less than 500 per cent of the poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902(2). Residents of the commonwealth who are not eligible for Medicare shall continue to be eligible for the program under this section.

SECTION 24. Section 47A of said chapter 62C, as so appearing, is hereby amended by striking out subsection (d) and inserting in place thereof the following 2 subsections:-

(d) If the commissioner determines from the information furnished pursuant to this section, or otherwise, that any person who holds a license or certificate of authority issued by any such agency or who has agreed to furnish goods, services or real estate space to any such agency has neglected or refused to file any returns or to pay any tax required under this chapter and that such person has not filed in good faith a pending application for abatement of such tax or a pending petition before the appellate tax board contesting such tax or entered a payment agreement with which the taxpayer is fully compliant, or has been penalized pursuant to section 9 of chapter 62E for failure to comply with said chapter 62E relating to reporting of employees and contractors, or has been penalized pursuant to paragraph (3) of subsection (f) of section 12 of chapter 119A for failure to comply with said chapter 119A relating to withholding and remitting child support, the commissioner shall notify such agency and such person in writing. Upon the written request of the commissioner, the agency, department, board, commission, division, authority, district or other agency of the commonwealth, shall promptly revoke or suspend that license or certificate of authority. Any license or certificate of authority suspended or revoked under this section shall not be reissued or renewed until the agency receives a certificate issued by the commissioner that the licensee is in good standing with respect to all returns due and taxes payable to the commissioner as of the date of issuance of the certificate, including all taxes and returns referenced in the initial notification or, if the licensee has been penalized for failure to comply with the provisions relating to reporting of employees and contractors under said chapter 62E or withholding and remitting child support under said chapter 119A, a certificate issued by the commissioner that the licensee is in compliance with those provisions.

(e) Where a license revocation, suspension or nonrenewal is based upon nonpayment of an assessed tax administered under this chapter, the licensee's sole right of appeal and to a hearing shall be pursuant to and within the time limitations of this chapter. The commissioner shall give the licensee not less than 30 days notice of any proposed action, during which time the licensee may enter into a payment agreement with the commissioner or may file a good faith abatement application within the time periods determined under section 37. Such an abatement application shall stay a proposed license revocation, suspension, or nonrenewal until the amount of disputed tax due is finally determined. A licensee who is beyond the time limitations in section 37 but who disputes that he is liable for the assessment and is unable to resolve that issue with the commissioner during the 30-day period may appeal the proposed revocation, suspension or nonrenewal by filing a civil action under section 14 of chapter 30A. The scope of the appeal shall be limited to assertions of mistake or verification of payments made and shall not include determination or redetermination of the proper amount of tax assessed or any other issues appropriately raised through a timely filed abatement under section 37. Any stay of the proposed revocation, suspension or nonrenewal pending resolution of the appeal shall be within the discretion of the court.

SECTION 25. Said chapter 62C is hereby further amended by inserting after said section 47A the following section:-

Section 47B. (a) If the commissioner determines that any person who holds a driver's license, learner's permit, right to operate a motor vehicle or certificate of motor vehicle registration has neglected or refused to file any returns or to pay any tax required under this chapter and that the person has not filed in good faith a pending application for abatement of such tax or a pending petition before the appellate tax board contesting such tax or entered a payment agreement with which the taxpayer is fully compliant, the commissioner shall notify the registry of motor vehicles and the person in writing. Upon the written request of the commissioner, the registry shall promptly suspend or revoke or prohibit issuance or renewal of the license, learner's permit, right to operate a motor vehicle, or certificate of motor vehicle registration of the taxpayer. Any license, learner's permit, right to operate a motor vehicle or certificate of motor vehicle registration suspended or revoked under this section shall not be reissued or renewed until the registry receives a certificate issued by the commissioner that the licensee is in good standing with respect to all returns due and taxes payable to the commissioner as of the date of issuance of the certificate, including all taxes and returns referenced in the initial notification.

(b) Where a license revocation, suspension or nonrenewal is based upon nonpayment of an assessed tax administered under this chapter, the licensee's sole right of appeal and to a hearing shall be pursuant to and within the time limitations of this chapter. The commissioner shall give the licensee not less than 30 days notice of any proposed action, during which time the licensee may enter into a payment agreement with the commissioner or may file a good faith abatement application within the time periods determined under section 37. Such an abatement application shall stay a proposed license revocation, suspension, or nonrenewal until the amount of disputed tax due is finally determined. A licensee who is beyond the time limitations in said section 37 but who disputes that he is liable for the assessment and is unable to resolve that issue with the commissioner during the 30-day period may appeal the proposed revocation, suspension or nonrenewal by filing a civil action as provided in section 14 of chapter 30A. The scope of the appeal shall be limited to assertions of mistake or verification of payments made and shall not include determination or redetermination of the proper amount of tax assessed or any other issues appropriately raised through a timely filed abatement under said section 37. Any stay of the proposed revocation, suspension or nonrenewal pending resolution of the appeal shall be within the discretion of the court.

SECTION 41. Said chapter 64C is hereby further amended by striking out section 7B, as so appearing, and inserting in place thereof the following section:-

Section 7B. (a) As used in this section, the following words shall have the following meaning , unless the context clearly requires otherwise:

“Cigar”, without limitation, a cigar, cheroot or stogie; provided, however, that a cigar shall not include cigarettes as defined in this chapter.

“Cigar distributor”, (i) any person who imports, or causes to be imported, into the commonwealth cigars or smoking tobacco for sale or who manufactures cigars or smoking tobacco in the commonwealth, and (ii) any person within or without the commonwealth who is authorized by the commissioner to make returns and pay the excise on cigars and smoking tobacco sold, shipped or delivered by him to any person in the commonwealth.

“Cigar retailer”, any person who sells or furnishes cigars or smoking tobacco in small quantities to consumers for individual use; provided, however, the cigars or smoking tobacco shall not be used for the purpose of resale.

“Person”, a natural person, corporation, association, partnership or other legal entity.

“Smoking tobacco”, roll-your-own tobacco and pipe tobacco and other kinds and forms of tobacco suitable for smoking.

“Taxed cigars and smoking tobacco”, cigars and smoking tobacco upon which the excise has been paid in full by the date on which payment was due and with respect to which the return has been completed, signed and filed with the commissioner by the date on which the return is due, in accordance with this section and section 16 of chapter 62C.

“Untaxed cigars and smoking tobacco”, cigars and smoking tobacco upon which the excise has not been paid in full by the date on which payment is due or with respect to which the return has not been completed, signed and filed with the commissioner by the date on which the return is due, in accordance with this section and section 16 of chapter 62C.

“Wholesale price”, (i) in the case of a manufacturer of cigars and smoking tobacco, the price set for such products or, if no price has been set, the wholesale value of these products; (ii) in the case of a cigar distributor who is not a manufacturer of cigars or smoking tobacco, the price at which the cigar distributor purchased these products; or (iii) in the case of a cigar retailer or a consumer, the price at which the retailer or consumer purchased these products.

(b) An excise shall be imposed on all cigars and smoking tobacco held in the commonwealth at the rate of 30 per cent of the wholesale price of such products. This excise shall be imposed on cigar distributors at the time cigars or smoking tobacco are manufactured, purchased, imported, received or acquired in the commonwealth. This excise shall not be imposed on any cigars or tobacco products that: (i) are exported from the commonwealth; or (ii) are not subject to taxation by the commonwealth pursuant to any law of the United States.

(c) Every cigar retailer shall be liable for the collection of the excise on all cigars or smoking tobacco in his possession at any time, upon which the excise has not been paid by a cigar distributor, and the failure of any cigar retailer to produce or exhibit to the commissioner or his authorized representative, upon demand, an invoice by a cigar distributor for any cigars or smoking tobacco in his possession, shall be presumptive evidence that the excise thereon has not been paid and that such cigar retailer is liable for the collection of the excise thereon.

(d) The amount of the excise advanced and paid by a cigar distributor or cigar retailer, as provided in this section, shall be added to and collected as part of the sales price of the cigars or smoking tobacco.

(e)(1) A cigar distributor shall be liable for the payment of the excise on cigars and smoking tobacco that he imports or causes to be imported into the commonwealth or that he manufactures in the commonwealth, and every cigar distributor authorized by the commissioner to make returns and pay the excise on cigars or smoking tobacco sold, shipped or delivered by him to any person in the commonwealth shall be liable for the collection and payment of the excise on all cigars and smoking tobacco sold, shipped or delivered.

(2) Every person who acquires taxed cigars and smoking tobacco for sale at retail, shall not be required to be licensed as a cigar distributor under this section, but shall be required, during the period that such person is a retailer of taxed cigars or smoking tobacco, to be licensed as a cigar retailer.

(f) A person outside the commonwealth who ships or transports cigars or smoking tobacco to cigar retailers in the commonwealth, to be sold by those cigar retailers, may apply for a license as a nonresident cigar distributor, and, if the commissioner issues a license to him, he shall thereafter be subject to this section and may act as a cigar distributor, provided that he files proof with his application that he has appointed the secretary of state as his agent for service of process relating to any matter or issue arising under this section. Such person shall also agree to submit his books, accounts and records for examination in the commonwealth during reasonable business hours by the commissioner or his authorized representative.

(g) Every resident of the commonwealth shall be liable for the collection of the excise on all cigars or smoking tobacco in his possession at any time, upon which the excise has not been paid by a cigar distributor or cigar retailer, and the failure of any such consumer to produce or exhibit to the commissioner or his authorized representative, upon demand, an invoice or sales receipt by a cigar distributor or cigar retailer for any cigars or smoking tobacco in his possession, shall be presumptive evidence that the excise thereon has not been paid and that such consumer is liable for the collection of the excise thereon.

(h) No person shall act as a cigar distributor or cigar retailer unless licensed to do so in accordance with section 67 of chapter 62C. If a cigar distributor or cigar retailer acts in more than 1 of those capacities at any 1 place of business, he shall procure a license for every capacity in which he acts unless, upon application to the commissioner, the commissioner determines otherwise. Each license so issued or a duplicate copy thereof shall be prominently displayed on the premises covered by the license.

(i) Except as otherwise expressly provided in this section, to the contrary, this chapter and chapter 62C relative to the assessment, collection, payment, abatement, verification and administration of taxes, including penalties, shall, so far as pertinent, apply to the excise imposed by this section.

(j) For the purposes of section 5, cigars and smoking tobacco shall be tobacco products, cigar distributors shall be wholesalers and cigar retailers shall be retailers.

(k) For the purposes of section 8, untaxed cigars and smoking tobacco found in the commonwealth shall be cigarettes which have not been returned and are not returnable under section 16 of chapter 62C, cigarettes which have not been returned and are not returnable under section 6 and cigarettes, as the context requires.

(l)(1) Any person who sells, offers for sale or possesses with intent to sell any cigars or smoking tobacco or otherwise acts as a cigar distributor or cigar retailer without being licensed to do so shall, in addition to any other penalty provided by this chapter or chapter 62C, be subject to a civil penalty of not more than $5,000 for the first offense and not more than $25,000 for each subsequent offense. Any person who knowingly purchases or possesses cigars or smoking tobacco not manufactured, purchased or imported by a licensed cigar distributor or licensed cigar retailer shall, in addition to any other penalty provided by this chapter or said chapter 62C, be subject to a civil penalty of not more than $5,000 for the first offense and not more than $25,000 for each subsequent offense.

No person, either as principal or agent, shall sell or solicit orders for cigars or smoking tobacco to be shipped, mailed or otherwise sent or brought into the commonwealth to any person who is not a licensed cigar distributor or licensed cigar retailer, unless the same is to be sold to or through a licensed cigar distributor or licensed cigar retailer. Any person who knowingly violates this paragraph shall, in addition to any other penalty provided by this chapter or chapter 62C, be subject to a civil penalty of not more than $5,000 for the first offense and not more than $25,000 for each subsequent offense.

There shall be a presumption that cigars and smoking tobacco are subject to the excise until otherwise established and the burden of proof shall be upon the person on whose premises the cigars or smoking tobacco were found.

(2) Any person who knowingly has in his possession a shipping case or other container of cigars or smoking tobacco not bearing the name and address of the person receiving the cigars or smoking tobacco from a manufacturer or such other markings as the commissioner may prescribe and any person knowingly in possession of such a shipping case or other container of cigars or smoking tobacco from which the name and address has been erased or defaced shall, in addition to any other penalty provided by this chapter or chapter 62C, be subject to a civil penalty of not more than $5,000 for the first offense and not more than $25,000 for each subsequent offense.

(3) Any person who files any false return, affidavit or statement, or who violates any provision of this section for which no other penalty has been provided shall, in addition to any other penalty provided by this chapter or said chapter 62C, be subject to a civil penalty of not more than $5,000 for the first offense and not more than $25,000 for each subsequent offense.

(4) Whenever the commissioner or a police officer discovers any untaxed cigars or smoking tobacco in the possession of a person not licensed as a cigar distributor or otherwise authorized by the commissioner the commissioner or police officer may seize and take possession of those cigars and smoking tobacco, together with any vending machine or other receptacle, which shall include, without limitation, a motor vehicle, boat or airplane, in which they are contained or in which they are transported. Such cigars, smoking tobacco, vending machine or other receptacle seized by a police officer shall be turned over to the commissioner and shall be forfeited to the commonwealth. The commissioner shall destroy such cigars or smoking tobacco and shall destroy or otherwise dispose of such vending machine or other receptacle. The commissioner may, within a reasonable time after the seizure, by a public notice at least 5 days before the day of sale, sell the vending machine or other receptacle at public sale and deposit the proceeds in the General Fund.

(5) The state police and all local police authorities may, and at the request of the commissioner or his duly authorized agent shall, enforce this section. Each violation of this section shall be a separate offense.

Civil Remedies for Violations of Certain Labor Laws III

SECTION 50. Chapter 149 of the General Laws is hereby amended by inserting after section 6F the following section:-

Section 6F 1/2. (a) In addition to the cease and desist authority granted in section 6E and the criminal penalties provided for in section 6F, whenever the commissioner has reason to believe that a person, firm, corporation or other entity is engaging in or is about to engage in a violation of sections 6A to 6E, inclusive, or of any regulations under said sections 6A to 6E, inclusive, he may bring an action in the name of the commonwealth against such person, firm, corporation or other entity to restrain the violation by temporary restraining order or preliminary or permanent injunction. The action may be brought in the superior court of the county in which such person, firm, corporation or other entity resides or has his principal place of business, or the action may be brought in the superior court of Suffolk county with the consent of the parties or if the person, firm, corporation or other entity has no place of business within the commonwealth. If more than 1 person, firm, corporation or other entity is joined as a defendant, the action may be brought in the superior court of the county where any 1 of defendants reside or has his principal place of business, or in Suffolk county. The court may issue temporary restraining orders or preliminary or permanent injunctions.

(b) Any person, firm, corporation or other entity that violates an injunction issued under this section shall forfeit and pay to the commonwealth a civil penalty of not more than $10,000 for each such violation, and each day during which a person, firm, corporation or other entity fails to comply with sections 6Ato 6E, inclusive, shall be considered a separate violation. For the purposes of this section, the court issuing such an injunction shall retain jurisdiction, and the case shall be continued, and in such case the department may petition for recovery of this civil penalty.

(c) In addition to the remedies under subsections (a) and (b), the commissioner may issue a written warning or a civil citation for violations of this chapter or regulations under this chapter. For each violation, a separate citation may be issued requiring any of the following: that the infraction be rectified or that a civil penalty of not more than $5,000 for each violation be paid to the commonwealth, within 21 days of the date after issuance of such citation.

(d) Notwithstanding this section, the maximum civil penalty that may be imposed upon any person, firm, corporation or other entity who has not previously been either criminally convicted of a violation of this chapter or issued a citation under this chapter, shall be not more than $2,500, except that in instances in which the commissioner determines that the person, firm, corporation or other entity lacked specific intent to violate this chapter, the maximum civil penalty for the person, firm, corporation or other entity that has not previously been either criminally convicted of a violation of this chapter or issued a citation under this chapter shall be not more than $1,000.

(e) In determining the amount of each civil penalty, the department shall include, but not be limited to, the following considerations: the actual and potential impact on public health, safety and welfare and the environment of the failure to comply; whether the person, firm, corporation or other entity being assessed the civil penalty took steps to prevent noncompliance, to promptly come into compliance and to remedy and mitigate whatever harm might have been done as a result of such noncompliance; whether the person, firm, corporation or other entity assessed the civil penalty has previously failed to comply with any regulation, order, license or approval issued or adopted by the department, or any law which the department has authority or responsibility to enforce; deterring future noncompliance; the financial condition of the person, firm, corporation or other entity being assessed the civil penalty; and the public interest.

(f) Upon a failure to comply with the requirements set forth in a citation, the commissioner may order the cessation of all or the relevant activities of the person, firm, corporation or other entity, and shall, within 10 days after such order, schedule a hearing on the suspension or revocation of the license, under this chapter. Any license suspension or revocation under this section shall also apply to all affiliates of the person, firm, corporation or other entity as well as any successor company or corporation that the commissioner upon investigation, determines to not have a true independent existence apart from that of the violating person, firm, corporation or other entity.

(g) Any person, firm, corporation or other entity aggrieved by a citation or order issued pursuant to this section may appeal by filing a notice of appeal with the commissioner within 10 days after the receipt of the citation or order. Chapter 30A shall apply to such appeals.

(h) No officer of any corporation which has failed to pay a civil penalty under this section shall incorporate or serve as an officer of any corporation which did not have a legal existence as of the date that the penalty became due and payable to the commonwealth.

(i) The commissioner may adopt regulations to carry out this section.

Pay for Performance Payments

SECTION 59. Chapter 58 of the acts of 2006 is hereby amended by striking out section 128, as appearing in section 40 of chapter 61 of the acts of 2007, and inserting in place thereof the following section:-

Section 128. Notwithstanding any general or special law to the contrary and in accordance with section 13B of chapter 118E of the General Laws, in fiscal year 2007, $90,000,000 shall be made available from the Commonwealth Care Trust Fund, established pursuant to section 2OOO of chapter 29 of the General Laws, to pay for an increase in the Medicaid rates paid to acute hospitals and physicians; but not less than 15 per cent of the increase shall be allocated to rate increases for physicians. For fiscal year 2008, an additional $90,000,000, for a total of $180,000,000, shall be made available from the Commonwealth Care Trust Fund in accordance with this section, to pay for an increase in the Medicaid rates paid to acute hospitals and physicians; but not less than 15 per cent of the increase shall be allocated to rate increases for physicians. In fiscal year 2009, an additional $90,000,000, for a total of $270,000,000, shall be made available from said Commonwealth Care Trust Fund to pay for an increase in the Medicaid rates paid to acute hospitals and physicians but not less than 15 per cent of the increase shall be allocated to rate increases for physicians. In fiscal year 2008, not more than $20,000,000 of the amounts to be made available to acute hospitals under this section shall be contingent on hospital adherence to quality standards and achievement of performance benchmarks, including the reduction of racial and ethnic disparities in the provision of health care, in accordance with said section 13B of said chapter 118E, and may be paid in fiscal year 2009. In fiscal year 2009, not more than $58,000,000 of the amounts to be made available to acute hospitals under this section shall be contingent on hospital adherence to quality standards and achievement of performance benchmarks, including the reduction of racial and ethnic disparities in the provision of health care, in accordance with section said 13B of said chapter 118E, and may be paid in fiscal year 2010. For fiscal years 2008 and 2009, any such performance benchmarks shall be determined by the secretary of health and human services without any limitation but in consultation with hospitals, the MassHealth payment policy advisory board and the health care quality and cost council, and the benchmark may include measures to be reported by hospitals to the federal Centers for Medicare and Medicaid Services for Reporting Hospital Quality Data for Annual Payment Update, to the Joint Commission on Accreditation of Healthcare Organizations for core measures, or to the MassHealth Program pursuant to Appendix G of the contract between MassHealth and acute hospitals for Rate Year 2007 or other nationally-recognized measures that are drawn on those approved by the National Quality Forum and adopted by the Hospitals Quality Alliance Performance benchmarks and quality measures related to racial and ethnic disparities in the provision of health care. The secretary of health and human services shall, after the consultation required by said section 13B of said chapter 118E, issue final quality standards and performance benchmarks for use in the hospital fiscal year beginning October 1, 2008. For purposes of payments to hospitals pursuant to this section, fiscal year shall mean the hospital’s fiscal year and for purposes of any payments to physicians pursuant to this section, fiscal year shall mean the state fiscal year.

Transfers Between Operating and Capital Funds

SECTION 61. (a) Whenever the commonwealth has borrowed funds as authorized by law to fund the acquisition of equipment that would have otherwise been funded under an item of appropriation in section 2, the secretary of administration and finance may authorize the transfer of funds from the item of appropriation in section 2 from which the equipment acquisition would have been funded to any other item of appropriation for the purpose of funding personnel or other operating-related expenses that would have otherwise been funded in the fiscal year 2009 capital budget from the proceeds of bonds. The secretary may establish an appropriation account to receive this transfer if none exists under section 2. Any amount transferred under this section shall not exceed the cost of the related equipment acquisition, and the aggregate amount of all such transfers shall not exceed $50,000,000.

(b) Before making any transfer authorized by this section, the secretary of administration and finance shall submit a transfer report and certification to the house and senate committees on ways and means. The report and certification shall include the following: (1) a schedule showing the cost of equipment acquisition that would have been funded from an item of appropriation in section 2, the item of appropriation from which the equipment would have been funded and the bond authorization against which bonds may be issued to fund the acquisition of the equipment; (2) a schedule showing the cost of all personnel and other operating expenses that would have been funded from the fiscal year 2009 capital budget, identification of each of the agencies that pay the related expenses, the item in the capital budget and the bond authorization from which the personnel or operating expenses would have been funded, and the item of appropriation in section 2 from which the personnel or operating expenses will be funded; (3) a schedule of each amount that will be transferred from one item of appropriation in section 2 to another under subsection (a) in order to effectuate the transactions described in clauses (1) and (2); and (4) a certification of the secretary confirming that the equipment will be acquired in fiscal year 2009 with bond proceeds pursuant to the fiscal year 2009 capital budget and the bond authorization identified in clause (1).

Transfers Among Health Care Funds

SECTION 69. (a) Notwithstanding any general or special law to the contrary, on or before October 1, 2008 and without further appropriation, the comptroller shall transfer from the General Fund to the Health Safety Net Trust Fund, established pursuant to section 36 of chapter 118G of the General Laws and in this subsection called the fund, the greater of $45,000,000 or one-twelfth of the total expenditures to hospitals and community health centers required pursuant to subsection (b), for the purpose of making initial gross payments to qualifying acute care hospitals for the hospital fiscal year beginning October 1, 2008. These payments shall be made to hospitals before, and in anticipation of, the payment by hospitals of their gross liability to the fund. The comptroller shall transfer from the fund to the General Fund not later than June 30, 2009, the amount of the transfer authorized by this subsection and any allocation thereof as certified by the director of the health safety net office.

(b) Notwithstanding any general or special law to the contrary, the comptroller shall, in consultation with the state treasurer, the secretary of administration and finance and the secretary of health and human services, develop a schedule for transferring funds among the General Fund, the Commonwealth Care Trust Fund, established by section 2OOO of chapter 29 of the General Laws and the Health Safety Net Trust Fund, established by section 36 of chapter 118G of the General Laws. Not less than $1,292,561,456, including proceeds from any statutorily authorized increase in excise imposed on the sale of tobacco after January 1, 2008, shall be transferred from the General Fund to the Commonwealth Care Trust Fund and not less than $62,996,382 be transferred from the Commonwealth Care Trust Fund to the Health Safety Net Trust Fund. The hospital fiscal year 2009 payment amount to each hospital shall be funded by the Health Safety Net Trust Fund. Payments may be made either as safety net care payments under the Commonwealth's 1115 waiver, or as an adjustment to Title XIX service rate payments, or a combination thereof. The executive office of health and human services and the health safety net office may use other federally permissible funding mechanisms available for public service hospitals, as defined in 114.1 CMR 36.02, to reimburse up to $70,000,000 of uncompensated care at the hospitals using sources distinct from the funding made available to the Health Safety Net Trust Fund. The executive office of health and human services shall make expenditures required for fiscal year 2008 under section 122 of chapter 58 of the acts of 2006. The schedule shall provide for transfers in increments considered appropriate to meet the cash flow needs of these funds. The transfers shall not begin before July 1, 2008 and shall be completed on or before June 30, 2009. The secretary of administration and finance, in consultation with the secretary of health and human services and the executive director of the commonwealth health insurance connector, shall on a quarterly basis evaluate the revenue needs of the health safety net program funded by the Health Safety Net Trust Fund and the Commonwealth Care subsidized health insurance program funded from the Commonwealth Care Trust Fund, and if necessary, transfer monies between these funds for the purpose of ensuring that sufficient revenues are available to support projected program expenditures. The secretary of health and human services in consultation with the secretary of administration and finance and the executive director of the commonwealth health insurance connector shall submit a quarterly report to the house and senate committees on ways and means and joint committee on healthcare financing which shall include, but not be limited to, the projected and actual expenditures and revenues for the Commonwealth Care Trust Fund and any transfers made between the Health Safety Net Trust Fund and the Commonwealth Care Trust Fund.

(c) Notwithstanding any general or special law to the contrary, the comptroller shall, in consultation with the office of the state treasurer, the executive office of administration and finance and the executive office of health and human services, develop a schedule and make a series of transfers not to exceed $346,000,000 from the General Fund to the MassHealth provider payment account in the Medical Assistance Trust Fund established in section 2QQQ of chapter 29 of the General Laws if the comptroller has determined that General Fund revenues are sufficient to accommodate the schedule of transfers. Any increase in payment made from the trust fund totaling an amount greater than $251,000,000 in fiscal year 2009 shall be made only after the secretary of health and human services certifies that any increase in payments from the trust fund shall not exceed the negotiated limit for section 1115 waiver spending. The secretary of health and human services shall notify, in writing, the house and senate committees on ways and means and the joint committee on healthcare financing of that certification within 15 days of the certification. These funds shall be expended only for services provided during state or federal fiscal year 2009, and no amounts previously or subsequently transferred into the Medical Assistance Trust Fund shall be expended on payments described in the 1115 demonstration waiver for services provided during state fiscal year 2009 or payments described in the state plan for services provided during federal fiscal year 2009. All payments from the Medical Assistance Trust Fund shall be subject to the availability of federal financial participation, shall be made only in accordance with federally-approved payment methods, shall be consistent with federal funding requirements and all federal payment limits as determined by the secretary of health and human services, and shall be subject to the terms and conditions of an agreement with the executive office of health and human services. The secretary of health and human services shall make a payment of up to $148,000,000 from the Medical Assistance Trust Fund to the Cambridge Public Health Commission’s hospital network for dates of service in state and federal fiscal year 2009 only after the Cambridge Public Health Commission transfers up to $74,000,000 of its funds to the Medical Assistance Trust Fund using a federally-permissible source of funds which shall fully satisfy the non-federal share of such payment.

SECTION 70. Notwithstanding any general or special law to the contrary, the comptroller, in consultation with the secretary of health and human services, shall develop a schedule for transferring not less than $25,000,000 from the General Fund to the Essential Community Provider Trust Fund, established in section 2PPP of chapter 29 of the General Laws, for the purpose of making expenditures as described in this section in fiscal year 2009. The secretary shall authorize expenditures by the division of health care finance and policy from the fund without further appropriation for the purpose of: (1) grants to financially distressed MassHealth providers that provide emergency care, behavioral health, and routine care for MassHealth and Commonwealth Care members; (2) grants to financially viable MassHealth providers that are essential providers to MassHealth and Commonwealth Care members; (3) a program, which may be based on the Medicare Management Performance Demonstration or similar models, to provide financial incentives to small group practices with MassHealth Primary Care Clinician Plan enrollment of between 100 and 1,000 members, which shall: (a) report specified clinical data; (b) achieve specified clinical benchmarks in service delivery and care management; and (c) implement an electronic medical record system within specified timeframes and with specified data sharing capacity; (4) a program to provide financial incentives to encourage the establishment of systems of care in communities with high concentrations of MassHealth, Commonwealth Care, and Group Insurance Commission membership to engage hospitals, community health centers, community mental health centers, physicians, and other providers, and to reward such providers based upon their ability to timely deliver expected health outcomes in a lower cost setting; and (5) a program to review and address, as necessary, payments for behavioral health care to MassHealth members in community hospital settings, and coordination of inpatient and outpatient care in such settings. The secretary, in consultation with the division, shall determine which entities meet the purposes and criteria described in this section. The executive office of health and human services shall structure expenditures under this section to maximize allowable federal reimbursement under Title XIX. All federal financial participation received for expenditures from the Essential Community Provider Trust Fund shall be deposited in the General Fund and shall be available for further appropriation for purposes specified in this section.

SECTION 73. Notwithstanding any general or special law to the contrary, the amounts transferred pursuant to paragraph (1) of section 22C of chapter 32 of the General Laws shall be made available for the commonwealth’s Pension Liability Fund established pursuant to section 22 of said chapter 32. The amounts transferred pursuant to said paragraph (1) of said section 22C of said chapter 32 shall meet the commonwealth’s obligations pursuant to said section 22C of said chapter 32, including retirement benefits payable by the state employees' and the state teachers’ retirement systems, for the costs associated with a 3 per cent cost-of-living adjustment pursuant to section 102 of said chapter 32, the reimbursement of local retirement systems for previously authorized cost-of-living adjustments pursuant to said section 102 of said chapter 32, and for the costs of increased survivor benefits pursuant to chapter 389 of the acts of 1984. The state board of retirement and each city, town, county and district shall verify these costs, subject to the rules adopted by the treasurer. The treasurer may make payments upon a transfer of funds to reimburse certain cities and towns for pensions to retired teachers, including any other obligations which the commonwealth has assumed on behalf of any retirement system other than the state employees’ or state teachers’ retirement systems and also including the commonwealth’s share of the amounts to be transferred pursuant to section 22B of said chapter 32 and the amounts to be transferred pursuant to clause (a) of the last paragraph of section 21 of chapter 138 of the General Laws. Payments for the purposes described in this section shall be made only pursuant to distribution of monies from the fund, and any distribution and the payments for which distributions are required shall be detailed in a written report filed quarterly by the commissioner of administration with the house and senate committees on ways and means and the joint committee on public service in advance of this distribution. Distributions shall not be made in advance of the date on which a payment is actually to be made. The state board of retirement may expend an amount for the purposes of the board of higher education’s optional retirement program pursuant to section 40 of chapter 15A of the General Laws. To the extent that the amount transferred pursuant to paragraph (1) of section 22C of said chapter 32 exceeds the amount necessary to adequately fund the annual pension obligations, the excess amount shall be credited to the Pension Reserves Investment Trust Fund of the commonwealth for the purpose of reducing the unfunded pension liability of the commonwealth.

UMass/EHS Interagency Service Agreements

SECTION 76. Notwithstanding any general or special law to the contrary, the executive office of health and human services under section 16 of chapter 6A of the General Laws, acting in its capacity as the single state agency under Title XIX of the Social Security Act and as the principal agency for all of the agencies within the executive office, and other federally assisted programs administered by the executive office, may enter into interdepartmental services agreements with the University of Massachusetts medical school to perform activities that the secretary, in consultation with the comptroller, determines are appropriate and within the scope of the proper administration of Title XIX and other federal funding provisions to support the programs and activities of the executive office. These activities shall include: (1) providing administrative services, including, but not limited to, activities such as providing the medical expertise to support or administer utilization management activities, determining eligibility based on disability, supporting case management activities and similar initiatives; (2) providing consulting services related to quality assurance, program evaluation and development, integrity and soundness and project management; and (3) providing activities and services for the purpose of pursuing federal reimbursement or avoiding costs, third party liability and recouping payments to third parties. Federal reimbursement for any expenditures made by the University of Massachusetts medical school relative to federally reimbursable services the university provides under these interdepartmental service agreements or other contracts with the executive office of health and human services shall be distributed to the university, and recorded distinctly in the state accounting system. The secretary may negotiate contingency fees for activities and services related to the purpose of pursuing federal reimbursement or avoiding costs, and the comptroller shall certify these fees and pay them upon the receipt of this revenue, reimbursement or demonstration of costs avoided. Contracts for contingency fees shall not extend longer than 3 years, and shall not be renewed without prior review and approval from the executive office of administration and finance. The secretary shall not pay contingency fees in excess of $40,000,000 for state fiscal year 2009. The secretary of health and human services shall submit to the secretary of administration and finance and the senate and house committees on ways and means a quarterly report detailing the amounts of the agreements, the ongoing and new projects undertaken by the university, the amounts spent on personnel and the amount of federal reimbursement and recoupment payments that the university collected.

SECTION 77. (a) Notwithstanding any general or special law to the contrary, upon the request of the board of selectmen in a town, the city council in a plan E city, or the mayor in any other city, the department of revenue may recalculate the minimum required local contribution, as defined in section 2 of chapter 70 of the General Laws, in the fiscal year ending June 30, 2009. Based on the criteria established in this section, the department shall recalculate the minimum required local contribution for a municipality’s local and regional schools and shall certify the amounts calculated to the department of education.

(b) A city or town that used qualifying revenue amounts in a fiscal year which will not be available for use in the next fiscal year, or that will be required to use revenues for extraordinary non school-related expenses for which it did not have to use revenues in the preceding fiscal year, or that has an excessive certified municipal revenue growth factor which is also greater than or equal to 1.5 times the state average municipal revenue growth factor, may appeal to the department of revenue on or before October 1, 2008 for an adjustment of its minimum required local contribution and net school spending.

(c) If a claim is determined to be valid, the department of revenue may reduce proportionately the minimum required local contribution amount based on the amount of shortfall in revenue or based on the amount of increase in extraordinary expenditures in the current fiscal year, but no adjustment to the minimum required local contribution on account of an extraordinary expense in the budget for the fiscal year ending on June 30, 2009 shall affect the calculation of the minimum required local contribution in subsequent fiscal years. Qualifying revenue amounts shall include, but not be limited to, extraordinary amounts of free cash, overlay surplus and other available funds.

(d) If, upon submission of adequate documentation, the department of revenue determines that the municipality’s claim regarding an excessive municipal revenue growth factor is valid, the department shall recalculate the municipal revenue growth factor and the department of education shall use the revised growth factor to calculate the preliminary local contribution, the minimum required local contribution and any other factor that directly or indirectly uses the municipal revenue growth factor. Relief granted as a result of an excessive municipal revenue growth factor shall be a permanent reduction in the minimum required local contribution.

(e) The board of selectmen in a town, the city council in a plan E city, the mayor in any other city, or a majority of the member municipalities of a regional school district, which used qualifying revenue amounts in a fiscal year that will not be available for use in the next fiscal year, may appeal to the department of revenue not later than October 1, 2008 for an adjustment to its net school spending requirement. If the claim is determined to be valid, the department of revenue shall reduce the net school spending requirement based on the amount of the shortfall in revenue and reduce the minimum required local contribution of member municipalities accordingly. Qualifying revenue amounts shall include, but not be limited to, extraordinary amounts of excess and deficiency, surplus and uncommitted reserves.

(f) If the regional school budget has already been adopted by two-thirds of the member municipalities then, upon a majority vote of the member municipalities, the regional school committee shall adjust the assessments of the member municipalities in accordance with the reduction in minimum required local contributions approved by the department of revenue or the department of education in accordance with this section.

(g) Notwithstanding clause (14) of section 3 of chapter 214 of the General Laws or any other general or special law to the contrary, the amounts so determined pursuant to this section shall be the minimum required local contribution described in chapter 70 of the General Laws. The department of revenue and the department of education shall notify the house and senate committees on ways and means and the joint committee on education of the amount of any reduction in the minimum required local contribution amount.

(h) If a city or town has an approved budget that exceeds the recalculated minimum required local contribution and net school spending amounts for its local school system or its recalculated minimum required local contribution to its regional school districts as provided by this section, the local appropriating authority shall determine the extent to which the community shall avail itself of relief authorized pursuant to this section.

(i) The amount of financial assistance due from the commonwealth in fiscal year 2009 pursuant to chapter 70 of the General Laws or any other law shall not be changed on account of any redetermination of the minimum required local contribution pursuant to this section.

(j) The department of revenue and the department of education shall issue guidelines for their respective duties pursuant to this section.

Ponkapoag Golf Course Lease

SECTION 80. (a) Notwithstanding sections 40E to 40K and 52 to 55, inclusive, of chapter 7 of the General Laws, the division of capital asset management and maintenance, in consultation with the department of conservation and recreation, may, using competitive proposal processes that the division considers necessary or appropriate, lease and enter into other agreements, for terms not to exceed 25 years, to 1 or more proponents, so as to provide for the continue use, operation, maintenance, repair and improvement of all or a portion of the golf courses, practice greens, driving range, restaurant or any other structure and associated lands that comprise the facilities of the Ponkapoag Golf Course of the department. The division shall hold open a pre-qualification period of at least 120 days for the town of Canton.

(b) The division of capital asset management and maintenance shall, if no lease agreement is reached with the municipality in which the golf course is located, solicit proposals through a request for proposals which shall include key contractual terms and conditions to be incorporated into the contract, including, but not limited to: (1) a commitment to give the town of Canton community benefits equal to or greater then the amount that the contracting entity would pay in property taxes for the golf course if it were taxable commercial property; (2) reservation policies and reasonable rates; (3) holiday recognition; (4) required financial audits; (5) grievance process; (6) clubhouse license; (7) retain public access; and (8) a commitment that for the first 5 years of any contract or lease, the contractor or lessee shall not raise existing fees and charges for greens fees, golf cart and club rentals more than $5 per year and for season passes more than 5 per cent per year. After the fifth year of any contract or lease, if the contractor or lessee proposes to increase any fee, or charge, the party shall submit a letter of request to the department of conservation and recreation. In considering each request, the department of conservation and recreation will consider all factors that it considers relevant, including, without limitation, the following:

Capital investments made by the contractor or lessee to the premises;
Greens fees and other fees and charges by other public golf courses within reasonable proximity of the premises; and
The length of time since the last fee increase, if any.

An increase shall not be charged until approved, in writing, by the department of conservation and recreation. The department shall not unreasonably withhold, condition, or delay its approval.

(c) Notwithstanding other provisions of this section or any other general or special law to the contrary, it shall be a mandatory term of a request for proposals issued by the commissioner and of a contact entered into by the commonwealth with a party regarding the subject matter of this section that a party which has entered into a contract under this section with the commonwealth shall require, in order to maintain stable and productive labor relations, to avoid interruption of the operation of the golf course and to preserve the safety and environmental conditions of the course, that employees currently working on the operation and maintenance of the course be offered employment by a party entering into a contract under this section. Upon the execution of any agreements authorized by this section, the department of conservation and recreation shall attempt to reassign or relocate those employees who do not accept employment with the lessor to comparable positions within the department, subject to applicable collective bargaining agreements.

(d) Any general or special law, rule or regulation relating to the advertising, bidding or award of contracts, the procurement of services or the construction and design of improvement shall be applicable to a selected offeror which is awarded a contract under this section, expect as otherwise provided in this section.

Ulin Rink Long Term Lease

SECTION 81. (a) Notwithstanding sections 40E to 40K, inclusive, and sections 52 to 55, inclusive, of chapter 7 of the General Laws, and using those competitive proposal processes as the division of capital asset management and maintenance considers necessary or appropriate, the division, in consultation with the department of conservation and recreation, may lease and enter into other agreements, for terms not to exceed 25 years, to 1 or more proponents, for Ulin memorial rink in the town of Milton, so as to provide for the continued use, operation, maintenance repair and improvement of such state-owned buildings and facilities, together with the land and appurtenances associated therewith,

(b) The failure of a city or town to apply for prequalification, as set forth below, shall not prohibit that city or town from bidding under this section.

(c) Before the division, in consultation with the department, sends out a request for proposals under this section, the division shall hold open a prequalification period of 45 days for cities and towns and youth oriented nonprofit organizations that desire to bid on rinks that are listed in this section and are located within the city or town, or for a partnership of municipalities which share geographic boundaries as long as the subject rink is located within the geographic area of the municipalities comprising the partnership. A city, town, youth oriented nonprofit organization or partnership of municipalities that desires to lease a rink under this section may submit materials for prequalification. The prequalification determination may consider, but need not be limited to, the city’s, town's, youth oriented nonprofit organization’s or partnership’s ability to finance the capital improvements determined to be necessary at each rink listed in this section by the division and to manage, operate and maintain the properties. Preference shall be given to the city or town in which the rink is located. The division, in consultation with the department, shall determine whether a city, town, youth oriented nonprofit or partnership is prequalified within 15 days of the end of the prequalification period. If a city, town, youth oriented nonprofit organization or partnership is determined to be prequalified, that city, town, youth oriented non-profit organization or partnership shall be awarded the lease for that rink under the terms and conditions set forth in this section. If a city, town, youth oriented nonprofit organization or partnership is determined to be prequalified, that city, town, youth-oriented non-profit organization or partnership shall pay consideration for a lease subject to the required capital improvements, performance specifications and other prequalification requirements and terms of the division and submitted proposal. The length of the lease shall be determined between the division and the city, town, youth oriented nonprofit organization or partnership.

(d) The lease and other agreements shall be on terms acceptable to the commissioner of capital asset management and maintenance, after consultation with the commissioner of conservation and recreation and, notwithstanding the provisions of any general or special law to the contrary, shall provide for the lessees to operate, manage, improve, repair and maintain the properties and may provide for the department to make initial capital improvements or direct grant funds to the lessee to undertake initial capital improvements at 1 or more of the properties that the commissioner determines is necessary due to the structural condition of the property. Leases or other arrangements requiring improvements to be made to a property may include a description of the initially required improvements and performance specifications. Ice time at rinks under the jurisdiction of the division of urban parks and recreation shall be allocated to user groups in the following order of priority: general public skating; youth groups; high school hockey; and adult organizations or informal groups. Ice time may be allocated at the discretion of the operator, but general public skating shall be booked at a minimum of 12 hours per week, with a range of times and days which reasonably allow for public skaters of all ages to participate in some public skating sessions. Every effort shall be made to balance the ice allocation needs of long-established youth organizations and newly-formed youth organizations in a manner that provides equal opportunity and equal access for youths of each gender. The leases and other agreements authorized in this section shall provide that any benefits to the communities and the costs of improvements and repairs made to the properties provided by the lessees or the recipients of the properties shall be taken into account as part of the consideration for such leases or other agreements. Consideration received from the leases or other agreements shall be payable to the department of conservation and recreation for deposit into the Division of Urban Parks Trust Fund in accordance with section 34 of chapter 92 of the General Laws. The lessees or the recipients of the properties shall bear the costs considered necessary or appropriate by the commissioner of conservation and recreation for the transactions including, without limitation, costs for legal work, survey, title and the preparation of plans and specifications.

(e) The names of the ice skating rinks and facilities referenced in this section shall not be altered or changed under the leases or agreements.

SECTION 82. There shall be a special commission to investigate and study the impact of the OxyContin and heroin epidemic on state and municipal government and the substance abuse treatment system and to identify potential strategies for efficiency and statutory recommendations in order for the commonwealth to more effectively cope with said epidemic.

The commission shall consist of 3 members of the senate, 1 of whom shall be appointed by the minority leader; 3 members of the house of representatives, 1 of whom shall be appointed by the minority leader; 1 person to be appointed by the governor; a representative from the Bureau of Substance Abuse Services; a representative from the Massachusetts District Attorneys Association; the chair of the Department of Psychiatry at the University of Massachusetts Medical School; a representative from the Trial Court; and a representative from the department of correction.

The commission shall consider, without limitation: the total direct and indirect cost to the commonwealth as a result of substance abuse; the number of repeat detoxifications on an annual basis; recidivism of those committed in civil commitment programs for abuse of OxyContin or heroin; modifications to the civil commitment laws to reflect the long-term neurobiological impact that OxyContin and heroin abuse has on those addicted; the benefits of long-term residential programs that are of at least 90 days and how the commonwealth may transition to such a model; the juncture at which an addicted individual that is committed for OxyContin or heroin abuse may make competent decisions relative to his own course of treatment; the implementation of an intensive case management system in the commonwealth and how other states have incorporated such a system; the establishment of a system of regional secure treatment centers; the number of inmates suffering from opiate dependence; recidivism in the criminal justice system for OxyContin and heroin abuse; statutory restrictions on parents and families with adolescents addicted to OxyContin or heroin; the sources of heroin, OxyContin and other prescription opiates available on the street; enhancements to the commonwealth’s prescription monitoring program so that the data collected is a preventative resource for prescribers, law enforcement and treatment professionals; and the establishment of an outpatient commitment program.

The commission shall work with the department of public health, the executive office of public safety and security, the trial court, the department of correction and other entities that the commission deems appropriate. The commission shall submit a report of its findings and recommendations, together with drafts of legislation and regulations necessary to carry those recommendations into effect, by filing the same with the clerks of the house of representatives and the senate, the joint committee on mental health and substance abuse and the house and senate committees on ways and means not later than January 1, 2009.