CHARLES A. MURPHY
House Ways & Means Chairman
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SECTION 4. Section 8 of chapter 23D of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- There shall be in the executive office of housing and economic development, but not subject to its jurisdiction, an economic stabilization trust which shall be administered by the secretary of the executive office of housing and economic development.
SECTION 5. Section 9 of said chapter 23D, as so appearing, is hereby amended by striking out, in lines 2 to 4, inclusive, the words “director of economic development and director of labor and workforce development” and inserting in place thereof the following words:- secretary of the executive office of housing and economic development or his designee, the secretary of the executive office of labor and workforce development or his designee.
SECTION 6. Said chapter 23D is hereby amended by striking out section 10, as so appearing, and inserting in place thereof the following section:-
Section 10. The offices of the trust shall be located within the executive office of housing and economic development. The secretary of the executive office of housing and economic development, in consultation with the trustees, shall appoint an executive director of the trust. The executive director shall serve as the chief executive, administrative and operational officer of the trust, shall attend meetings of the trust and shall direct the resources and staff of the program to achieve the purposes of sections 8 to 16, inclusive.
SECTION 7. Section 11H of chapter 25A of the General Laws, as so appearing, is hereby amended by striking out, in lines 21 and 23, the words “0.75 per cent” and inserting in place thereof the following words:- 3.75 per cent.
SECTION 8. Chapter 29 of the General Laws is hereby amended by inserting after section 2YYY, inserted by section 5 of chapter 304 of the Acts of 2008, the following section:-
Section 2ZZZ. (a) There shall be established and set upon the books of the commonwealth a separate fund to be known as the State Contract Administrative Fee Fund. Amounts credited to the fund shall be expended to pay for the direct and indirect costs, including, but not limited to, the cost of personnel, of the operational services division of the executive office for administration and finance to procure, manage and administer statewide contracts.
(b) The operational services division may charge and collect from statewide contractors a statewide contract administrative fee, to be established by the executive office for administration and finance; provided, however, that said fee shall not exceed 1 per cent of the total value of a contract awarded to a statewide contractor. Fees charged and collected under this paragraph shall be credited to the State Contract Administrative Fee Fund created in paragraph (a).
SECTION 9. Chapter 29 of the General Laws, as so appearing, is hereby amended by inserting after section 5F the following section:-
Section 5G. Notwithstanding any general or special law to the contrary, the department of revenue shall report annually to the state comptroller, the executive office for administration and finance and the house and senate committees on ways and means on or before August 1 the amount collected from capital gains revenue in the previous fiscal year; provided further, that beginning September 30 and quarterly thereafter the department of revenue shall, within 15 days, certify to the state comptroller the amount collected in capital gains revenues for that quarter and the comptroller shall transfer 50 per cent of the growth in capital gains revenue that exceeds the amount collected during the previous fiscal year as reported by the department of revenue to the Commonwealth Stabilization Fund established by section 2H; provided, however, that said transfer shall be made prior to the certification of the consolidated net surplus for the previous fiscal year as provided in section 5C.
SECTION 10. Subsection (1) of section 22C of chapter 32 of the General Laws, as so appearing, is hereby amended by striking out the last paragraph and inserting in place thereof the following paragraph:-
Notwithstanding any general or special law to the contrary, appropriations or transfers made to the commonwealth’s Pension Liability Fund in fiscal years 2009 to 2011, inclusive, shall be made in accordance with the following funding schedule: $1,314,396,000 in fiscal year 2009, $1,376,619,000 in fiscal year 2010 and $1,441,811,000 in fiscal year 2011.
SECTION 11. Section 8 of chapter 32A of the General Laws, as so appearing, is hereby amended by striking out, in lines 5 and 11, the word “seventy-five” and inserting in place thereof the following figure:- 70.
SECTION 12. Said section 8 of said chapter 32A of the General Laws, as so appearing, is hereby further amended by striking out, in lines 8, 31 and 37, the word “twenty-five” and inserting in the place thereof the following figure:- 30.
SECTION 13. Chapter 62C of the General Laws, as so appearing, is hereby amended by striking out section 1, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-
“Administering agency head”, the agency head responsible for administering the applicable state tax credit program.
“Average salary”, the total Massachusetts gross salary of a group of Massachusetts employees divided by the number of Massachusetts employees in the group.
“Building contractor”, any general contractor, subcontractor or repairman who is engaged in the business of constructing or improving real property.
“Code”, the Internal Revenue Code of the United States in effect on July 1, 1983.
“Commissioner”, the commissioner of revenue.
“Full-time employee”, a person who is employed for consideration for at least 35 hours per week and whose salary is subject to withholding as provided in chapter 62B.
“Materialman”, a person primarily engaged in the retail sale of building material, tools and equipment to building contractors for the improvement of real property and authorized by law to file a mechanics lien upon real property for improvements related to the property. For the purposes of this definition, “primarily engaged” shall mean sales of 50 per cent or more of total sales to building contractors.
“Part-time employee”, a person who is employed for consideration for less than 35 hours a week and whose salary is subject to withholding as provided in chapter 62B.
“Promoter”, a person who, either directly or indirectly, rents, leases or grants a license to use space to any person for the display for sale or for the sale of tangible personal property subject to tax under chapter 64H, at more than 3 shows during the calendar year, or who operates more than 3 shows during the calendar year. For purposes of determining whether 3 shows have been held, the conduct of an activity described in the definition of “Show” on 1 day alone or on a series of up to 7 consecutive days shall be deemed to constitute a single show.
“Show”, a flea market, craft show, antique show, coin show, stamp show, comic book show fair and any similar show, whether held regularly or of a temporary nature at which more than 1 vendor displays for sale or sells tangible personal property subject to tax.
“Tax”, any tax, excise, interest, penalty, or addition to tax imposed by this chapter or the statutes referred to in section 2.
“Tax credit program”, 1 of the following credits against the state income tax to stimulate economic development and other policy goals: the brownfields tax credit established by subsection (j) of section 6 of chapter 62 and section 38Q of chapter 63; the dairy farmer tax credit established by subsection (o) of section 6 of chapter 62 and section 38Z of chapter 63; the FDA user fees credit established by subsection (n) of section 6 of chapter 62 and section 31M of chapter 63; the film tax credit established by subsection (l) of section 6 of chapter 62 and subsection (b) of section 38X of chapter 63; the historic rehabilitation tax credit established by section 6J of chapter 62 and section 38R of chapter 63; the life sciences investment tax credit established by subsection (m) of section 6 of chapter 62 and section 38U of chapter 63; the low-income housing tax credit established by section 6I of chapter 62 and section 31H of chapter 63; the medical device tax credit established by section 6½ of chapter 62 and section 31L of chapter 63; and the refundable research credit established by subsection (j) of section 38M of chapter 63.
SECTION 14. Subsection (b) of section 21 of said chapter 62C, as so appearing, is hereby amended by adding the following clause:-
(24) the disclosure of information contained in a report filed pursuant to section 88.
SECTION 15. Said chapter 62C is hereby further amended by adding the following section:-
Section 88. (a)(1) Each administering agency head shall annually submit a report, no later than March 1, to the commissioner on each tax credit program authorized for the previous calendar year, hereinafter known as the report, which shall be a public record made available on a government internet website for public disclosure.
(2) The report shall contain the following information:
(i) the identity of each taxpayer awarded a tax credit by the administering agency head;
(ii) the date that the tax credit was awarded;
(iii) the type and amount of the tax credit awarded to each taxpayer and, if applicable, each project; and
(iv) the employment data provided by each taxpayer pursuant to subsection (b).
(3) The report shall include, for the previous calendar year, an analysis of the benefits received by the commonwealth relevant to the specific goals of the tax credit program, the impact of the tax credit program on preserving, promoting and growing employment in the relevant industry in the commonwealth and any other benefits received as a result of the tax credit program.
(b) Each taxpayer receiving a tax credit from a tax credit program shall annually report, no later than February 15, a statement of jobs to the administering agency head which shall contain the following information:
(i) the number of full-time employees working for the taxpayer on the date the administering agency head authorized the tax credit, the number of full-time employees working for the taxpayer on December 31 of each calendar year that the tax credit is applied and the average salary of such employees;
(ii) the number of part-time employees working less than 35 hours but more than 20 hours per week for the taxpayer on the date the administering agency head authorized the tax credit, the number of such employees working for the taxpayer on December 31 of each calendar year that the tax credit is applied and the average salary of such employees;
(iii) the number of part-time employees working 20 hours per week or less for the taxpayer on the date the administering agency head authorized the tax credit, the number of such employees working for the taxpayer on December 31 of each calendar year that the tax credit is applied and the average salary of such employees; and
(iv) any other information required by the administering agency head to assist the agency head in assessing the economic and employment impact of the tax credit program on the commonwealth and in the relevant industry and otherwise in meeting the goals of the relevant tax credit program.
SECTION 16. Chapter 90 of the General Laws is hereby amended by inserting after section 30A the following section:-
Section 30A ½. Notwithstanding section 30A or any other general or special law to the contrary, the registrar may, in the interest of seeking cost efficiencies, avoiding disruptions and continuing to provide registry services for residents of the commonwealth, enter into agreements with third party entities based in the commonwealth to perform functions on behalf of the registry of motor vehicles. The registrar shall enter into agreements only with an existing entity that provides automobile-related services to the general public, or to its own members if an automobile-related association, and that maintains business offices that are open to the public during hours and at locations believed to be convenient for registry customers and in areas where a continuing need exists to provide registry services.
The registrar may provide necessary inventories, equipment, electronic connections and training in regard to such agreements to provide for the provision of registry-related services by the third party. The registrar may help to defray the expenses of the third party as part of the agreement if necessary to provide such services, but only if the overall effect of such agreement results in cost efficiencies to the registry. The registrar shall not enter into an agreement that results in the loss of employment with the commonwealth of any person who was performing services related to the agreement as a registry employee within the 30 days before the effective date of the agreement.
The registrar shall on an annual basis, or more frequently if required by the agreement, review the third party’s most recent performance under the agreement and if the cost efficiencies and other purposes for which the agreement has been entered into are not being realized, the registrar may terminate the agreement and recover all inventories, equipment, monies due and other items provided to the third party. An agreement may be amended from time to time.
All employees of a third party performing registry-related functions or having access to registry data or equipment shall be subject to all state and federal laws and regulations governing the protection of personal information. Fees collected by the third party on behalf of the registrar shall be deposited in the treasury of the commonwealth pursuant to section 34. An agreement shall ensure that the third party’s performance of registry-related functions is subject to periodic audits by registry staff and the state auditor.
SECTION 17. Section 33 of said chapter 90 of the General Laws, as so appearing, is hereby amended by striking out, in lines 6 to 7, the words “, the fee for which is not otherwise provided for in any general or special law, the fee shall be $36”.
SECTION 18. Said section 33 of said chapter 90 of the General Laws, as so appearing, is hereby further amended by striking out, in line 143, the words “, the fee shall be $40”.
SECTION 19. The definition of “Facility” in subsection (a) of section 51H of chapter 111 of the General Laws, inserted by section 9 of chapter 305 of the acts of 2008, is hereby amended by striking out the figure “25” and inserting in place thereof the following figure:- 25B.
SECTION 20. Said section 51H of said chapter 111, as so inserted, is hereby further amended by striking out subsection (d) and inserting in place thereof the following subsection:-
(d) The department shall adopt regulations prohibiting a health care facility from charging or seeking reimbursement for services provided as a result of the occurrence of a health-care associated infection or serious reportable event. A health care facility shall not charge or seek reimbursement for a health-care associated infection or serious reportable event that the facility has determined, through a documented review process and under regulations adopted by the department, was (i) preventable; (ii) within its control; and (iii) unambiguously the result of a system failure based on the health care provider’s policies and procedures.
SECTION 21. Said section 51H of said chapter 111, as amended by section 65 of chapter 451 of the acts of 2008, is hereby further amended by striking out subsection (d) and inserting in place thereof the following subsection:-
(d) The department shall adopt regulations prohibiting a health care facility from charging or seeking reimbursement for services provided as a result of the occurrence of a health-care associated infection or serious reportable event. A health care facility shall not charge or seek reimbursement for a health-care associated infection or serious reportable event that the facility has determined, through a documented review process and under regulations adopted by the department, was (i) preventable; (ii) within its control; and (iii) unambiguously the result of a system failure based on the health care provider’s policies and procedures.
SECTION 22. Section 10F of chapter 118E of the General Laws is hereby amended by striking out subsections (a) and (b), as so appearing, and inserting in place thereof the following 2 subsections:-
(a) There shall be a program to provide primary and preventive health care services for uninsured dependent and adopted youths from birth through age 18, in this section called the program; but only those youths who are ineligible for medical benefits pursuant to this chapter shall be eligible for the services defined in this section. The secretary of the executive office of health and human services shall administer the program, subject to appropriation. The covered services available from the program shall be set forth in regulations of the executive office of health and human services as the secretary determines is appropriate, but at a minimum shall include the following:-
(1) preventive pediatric health care visits and well-child visits, including immunizations and screening tests;
(2) primary care health care services customarily furnished by or through a general practitioner, family physician, internal medicine physician, obstetrician/gynecologist, pediatrician or independent nurse practitioner, to the extent the furnishing of those services is legally authorized in the commonwealth; but primary care shall not include emergency or poststabilization services provided in a hospital or other setting; and
(3) unlimited sick visits in a primary care provider’s office.
(b) Additional services under the program shall include the following, but coverage for specific services within each category and the benefit limitations shall be at the secretary’s discretion:
(1) dental health care, including preventive dental care; but no funds shall be expended for cosmetic or surgical dentistry;
(2) prescription drugs; and
(3) behavioral health.
SECTION 23. Paragraph (2) of subsection (a) of section 39 of chapter 118G of the General Laws, inserted by section 15 of chapter 61 of the acts of 2007, is hereby amended by inserting after the first sentence the following 2 sentences:- The office may recover from a third party that is financially responsible the costs attributable to services provided to an individual that were paid by the fund. A payment from the fund for such services shall be recoverable from the third party and that payment shall, after notice to the third party, operate as a lien under section 22 of chapter 118E.
SECTION 24. The first paragraph of section 11 of chapter 142A of the General Laws, as so appearing, is hereby amended by striking out the second and third sentences.
SECTION 25. Section 10 of chapter 200A of the General Laws, as so appearing, is hereby amended by adding the following subsection:
(j) Upon request by the executive office of health and human services, in this section called the executive office, not more than once each quarter, the state treasurer shall review information made available by the executive office to determine if a person who has received medical assistance benefits under chapter 118E has an interest in property reported to the state treasurer in accordance with this chapter, and inform the executive office of the treasurer’s findings. Further, notwithstanding any special or general law to the contrary, with respect to any person who has been deceased for at least 3 years with no fiduciary appointed to administer the deceased person’s estate, and who is found to have property solely in the deceased person’s name that would be subject to a claim by the executive office under sections 31 and 32 of chapter 118E, the executive office may present a statement to the state treasurer of the amount due to the executive office, a copy of the death certificate for the deceased person and other claims documents that the treasurer’s office may require. Upon such presentment, the state treasurer shall release the property or the portion of the property necessary to satisfy the claim by the executive office. Presentment under this subsection shall not take priority over any claim of the department of revenue under subsection (i) or over any claim presented by a duly appointed estate representative. If the treasurer makes payment to the executive office under this subsection, the treasurer shall be discharged from any obligation or liability arising from the payment. Information provided by the executive office to the treasurer under this subsection may be used only for the purpose described in this subsection. If a fiduciary is appointed after the executive office has received payment of funds from the treasurer’s office under this subsection, and the fiduciary notifies the executive office of the appointment, the executive office shall release to the fiduciary all of the funds received from the treasurer’s office. The executive office may then present its claim for reimbursement under section 32 of chapter 118E.
SECTION 26. Section 12 of chapter 211D of the General Laws, as so appearing, is hereby amended by striking out the fourth, fifth and sixth sentences and inserting in place thereof the following 2 sentences:- Bills shall be submitted to the committee within 90 days after the conclusion of a case; but if the case is pending at the end of the fiscal year, within 90 days after the end of the fiscal year. Bills submitted after that date shall not be processed for payment; but the chief counsel may authorize the payment of such bills either in whole or in part, upon a determination that the delay in submission was due to extraordinary circumstances beyond the control of the attorney.
SECTION 27. Notwithstanding any general or special law to the contrary, this section shall facilitate the orderly transfer of the employees, functions, proceedings, rules and regulations, property and legal obligations of the economic stabilization trust from the Commonwealth Corporation to the executive office of housing and economic development. The economic stabilization trust, transferred to the Commonwealth Corporation by section 64 of chapter 365 of the acts of 1996, as amended by sections 6, 7 and 9 of chapter 352 of the acts of 2004, is hereby transferred to the executive office of housing and economic development. The trust shall continue as a quasi-public instrumentality of the commonwealth, with all the legal powers, authority, responsibilities, duties, rights and obligations vested in the trust by sections 8 to 16, inclusive, of chapter 23D of the General Laws.
SECTION 28. Notwithstanding any general or special law to the contrary, the state comptroller shall, according to a schedule developed in consultation with the state treasurer and the secretary of the executive office for administration and finance, transfer $372,000,000 from the General Fund to the State Retiree Benefits Trust Fund established by section 24 of chapter 32A of the General Laws.
SECTION 29. Notwithstanding clause (xxiii) of the third paragraph of section 9 of chapter 211B of the General Laws, or any other general or special law to the contrary, the chief justice for administration and management may, from the effective date of this act through April 30, 2010, transfer funds from any item of appropriation within the trial court, except items 0339-1001 and 0339-1003, to any other item of appropriation within the trial court, except items 0339-1001 and 0339-1003. These transfers shall be made in accordance with schedules submitted to the house and senate committees on ways and means. The schedule shall include the following: (1) the amount of money transferred from 1 item of appropriation to another; (2) the reason for the necessity of the transfer; and (3) the date on which the transfer is to be completed. A transfer under this section shall not occur until 10 days after the revised funding schedules have been submitted in written form to the house and senate committees on ways and means.
SECTION 30. Notwithstanding any general or special law to the contrary, in hospital fiscal year 2010, the office of the inspector general may continue to expend funds from the Health Safety Net Trust Fund established by section 36 of chapter 118G, for the costs associated with maintaining a pool audit unit within the office. The unit shall continue to oversee and examine the practices in all hospitals in the commonwealth including, but not limited to, the care of the uninsured and the resulting free care charges. The inspector general shall submit a report to the house and senate committees on ways and means on the results of the audits and any other completed analyses not later than March 1, 2010. For the purposes of these audits, allowable free care services shall be defined pursuant to chapter 118G of the General Laws and any regulations adopted under that chapter.
SECTION 31. 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 by 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. All 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 secretary of the executive office for administration and finance 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, established by subdivision (8) of section 22 of said chapter 32, for the purpose of reducing the unfunded pension liability of the commonwealth.
SECTION 32. Notwithstanding any general or special law to the contrary, the executive office of health and human services, in this section called the executive office, 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 of the executive office, 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 may 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 shall be distributed to the university, and recorded distinctly in the state accounting system. The secretary of the executive office 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 for administration and finance. The secretary of the executive office of health and human services shall not pay contingency fees in excess of $40,000,000 for state fiscal year 2010; provided, however, that contingency fees paid to the University of Massachusetts Medical School under the terms of any interagency service agreement for recoveries related to the special disability workload projects shall be excluded from that $40,000,000 limit for fiscal year 2010. The secretary of the executive office shall submit to the secretary of the executive office for 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 33. Notwithstanding any general or special law to the contrary, the secretary of the executive office of health and human services, in this section called the secretary, may, consistent with federal law, pursue an alternative payment demonstration project with 1 or more hospitals or hospital systems in the commonwealth. For the purposes of this section, “alternative payment” means a methodology that establishes an aggregate prospective payment to cover the total cost of a defined set of health care services provided by a hospital or hospital system, creating incentives for such providers to integrate services, manage costs and utilization and ensure high-quality care. In implementing any such alternative payment demonstration project, the secretary shall consider using information systems to monitor performance of the hospital or hospital system and apply measures of cost and quality. The secretary shall report to the house and senate committees on ways and means and the joint committee on health care financing 30 days prior to implementing said demonstration project: (1) the type of alternative payment system to be demonstrated; and (2) the projected costs associated with the implementation of said demonstration project.
SECTION 34. Notwithstanding any general or special law to the contrary, the nursing home assessment established by subsection (b) of section 25 of chapter 118G of the General Laws shall be sufficient in the aggregate to generate $220,000,000 in fiscal year 2010.
SECTION 35. (a) Notwithstanding any general or special law to the contrary, on or before October 1, 2009 and without further appropriation, the comptroller shall transfer from the General Fund to the Health Safety Net Trust Fund, established by section 36 of chapter 118G of the General Laws and in this subsection referred to as 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) of said section 36, for the purpose of making initial gross payments to qualifying acute care hospitals for the hospital fiscal year beginning October 1, 2009. 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, 2010, 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 the executive office for administration and finance and the secretary of the executive office 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 $742,333,618 shall be transferred from the General Fund to the Commonwealth Care Trust Fund. The hospital fiscal year 2010 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 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, 2009 and shall be completed on or before June 30, 2010. The secretary of the executive office for administration and finance, in consultation with the secretary of the executive office 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 the executive office of health and human services, in consultation with the secretary of the executive office for 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 the joint committee on health care 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 state comptroller shall, in consultation with the office of the state treasurer, the executive office for administration and finance and the executive office of health and human services, develop a schedule and make a series of transfers not to exceed $379,000,000 from the General Fund to the MassHealth provider payment account in the Medical Assistance Trust Fund, established by 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. These funds may be expended only for services provided during state or federal fiscal year 2010, and no amounts previously or subsequently transferred into the Medical Assistance Trust Fund may be expended on payments described in the 1115 demonstration waiver for services provided during state fiscal year 2010 or payments described in the state plan for services provided during federal fiscal year 2010. 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 the executive office 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. Any increase in payment made from the trust fund totaling an amount greater than $251,000,000 in fiscal year 2010 shall be made only after the secretary of the executive office 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 the executive office of health and human services shall notify, in writing, the house and senate committees on ways and means and the joint committee on health care financing of any increases in payments within 15 days. The secretary of the executive office of health and human services shall make a payment of up to $278,000,000 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 2010 only after the Cambridge public health commission transfers up to $139,000,000 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. This authorization shall expire on June 30, 2010.
SECTION 36. (a) Notwithstanding any general or special law to the contrary, after complying with clause (a) of section 5C of chapter 29 of the General Laws, the comptroller shall dispose of the consolidated net surplus in the budgetary funds for fiscal year 2009 as follows: (i) the comptroller shall transfer $10,000,000 from the General Fund to the Massachusetts Life Sciences Investment Fund established by section 6 of chapter 23I of the General Laws; and (ii) the remaining balance shall be transferred from the General Fund to the Stabilization Fund.
(b) Notwithstanding any general or special law to the contrary, the total administrative and operational expenses of the Massachusetts Life Sciences Center established by section 3 of said chapter 23I of the General Laws shall not exceed $3,000,000 for fiscal year 2010; provided further, that said center shall report on the center’s annual operating expenses including, but not limited to: payroll costs, contracted personnel costs, consultant costs, travel costs, pension and insurance costs, office related expenses, lease costs, facility operating expenses, energy costs, costs of equipment leases and maintenance. Said center shall file a report with the clerks of the house of representatives and the senate, who shall forward the same to the house and senate committees on ways and means and the joint committee on economic development and emerging technologies on or before February 28, 2010.
(c) All transfers specified in this section shall be made from the undesignated fund balances in the budgetary funds proportionally from the undesignated fund balances, provided that no such transfer shall cause a deficit in any of the funds.
SECTION 37. Notwithstanding any general or special law to the contrary, the formula for application of funds provided in section 35J of chapter 10 of the General Laws shall not apply in fiscal year 2010.
SECTION 38. Notwithstanding any general or special law to the contrary, during fiscal year 2010 the comptroller shall not transfer 0.5 per cent of the total revenue from taxes in the preceding fiscal year to the Commonwealth Stabilization Fund, established by section 2H of chapter 29 of the General Laws, as otherwise required pursuant to clause (a) of section 5C of said chapter 29.
SECTION 39. Notwithstanding any general or special law to the contrary, there shall be a 15 member Massachusetts Regionalization Advisory Commission consisting of the following members: the secretary of the executive office for administration and finance, or his designee, who shall serve as chair of the commission; the secretary of the executive office of health and human services, or his designee; the secretary of the executive office of energy and environmental affairs, or his designee; the secretary of the executive office of public safety, or his designee; the secretary of the executive office of transportation and public works, or his designee; the secretary of the executive office of elder affairs, or his designee; the secretary of the executive office of veterans’ affairs, or his designee; the secretary of the executive office of labor and workforce development, or his designee; the secretary of the executive office of education, or his designee; the secretary of the executive office of housing and economic development, or his designee; the president of the senate, or his designee; the speaker of the house of representatives, or his designee; and 3 members to be appointed by the governor all of whom shall have knowledge and experience in 1 or more of the following areas: municipal government and services, municipal agreements, shared services or regionalization. Each member shall serve without compensation.
The commission shall review all aspects of regionalization including possible opportunities, benefits and challenges to regionalizing services within the commonwealth. The commission shall consider the costs and effects of regionalizing all services including, but not limited to: education, public safety, public health, public works, housing, veterans’ services, workforce development, municipal finance and structure, elder services and transportation.
The commission shall submit its finding and recommendations for regionalizing services, together with drafts of legislation necessary to carry those recommendations into effect by filing the same with the clerks of the house of representatives and senate, the house and senate committees on ways and means and the joint committee on municipalities and regional government not later than April 30, 2010.
SECTION 40. (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, 2010. 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, 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, 2009 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, 2010 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. Any 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, 2009 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 any relief authorized pursuant to this section.
(i) The amount of financial assistance due from the commonwealth in fiscal year 2010 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.
SECTION 41. Section 21 shall take effect on October 1, 2012.
SECTION 42. Except as otherwise specified, this act shall take effect on July 1, 2009.
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