Whereas, The deferred operation of this act would tend to defeat its purpose, which is to make forthwith certain changes in the tax laws and other laws relating to the department of revenue, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

SECTION 1.  Section 3A of chapter 14 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- No agreement shall be entered into unless proposals for the same have been invited in accordance with regulations governing the procurement by state agencies of contracts of similar value.

SECTION 2.  Section 1 of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out, in line 6, the figure “1998” and inserting in place thereof the following figure:- 2005.

SECTION 3.  Section 3 of said chapter 62, as so appearing, is hereby amended by inserting after the word “deduction”, in line 116, the following words:- ; provided, however, that the deduction shall be limited in the manner provided in section 222(d)(3) of the Code as amended and in effect for the taxable year.

SECTION 4.  Paragraph (a) of Part B of said section 3 of said chapter 62, as so appearing, is hereby amended by adding the following subparagraph:-

(14) Such amount as is described in section 1341(a)(2) of the Code, to the extent, if any, that such amount (i) was previously included in Massachusetts taxable income, and (ii) is not otherwise deductible under section 2(d)(1) of this chapter.

SECTION 5.  Section 5A of said chapter 62, as so appearing, is hereby amended by adding the following subsection:-

(d) For purposes of this section, the ownership of an interest in real property located in the commonwealth shall include, without limitation, the ownership of an interest in a partnership, to the extent that the partnership holds an interest in real property located in the commonwealth. 

SECTION 6.  Section 5 of chapter 62B of the General Laws, as so appearing, is hereby amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

Every employer who fails to withhold or pay to the commissioner any sums required by this chapter to be withheld or paid shall be personally and individually liable therefore to the commonwealth. The term "employer'', as used in this paragraph and in section 11, includes an officer or employee of a corporation, or a member or employee of a partnership or limited liability company, who as such officer, employee or member is under a duty to withhold and pay over taxes in accordance with this section and section 2. Any sum or sums withheld in accordance with the provisions of section 2 shall be considered held in trust for the commonwealth.

SECTION 7.  Section 12 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out subsection (a) and inserting in place thereof  the following subsection:-

(a) Every financial institution, as defined in section 1 of chapter 63, shall, on or before the fifteenth day of the third month following the close of each taxable year, make a return to the commissioner giving information the commissioner considers necessary for the determination of the tax imposed by section 2 of said chapter 63.

If any financial institution shall have participated in filing a consolidated return of income to the federal government, it shall file with the commissioner a statement of net income showing its gross income and deductions in accordance with the law and regulations governing the usual federal returns of corporations not so participating.

SECTION 8.  Said chapter 62C is hereby amended by inserting after section 21 the following section:-

Section 21B.  (a) The unauthorized, willful inspection of any information contained in or set forth in any return or document filed with the commissioner, or of any information which can identify a particular taxpayer that is received by the commissioner for the purposes of tax administration from the Internal Revenue Service or any other taxing authority or derived from any other source, by (1) any employee of the commonwealth or any city or town therein, including the commissioner or any deputy, assistant, clerk, or assessor; (2) any employee of another state; (3) any person under contract with the commonwealth or any officer, director, or employee thereof; or (4) any person obtaining unauthorized access to any return, document, or information while such return, document, or information, including any return, document, or information stored in computer systems or computer files, is in the custody of the commissioner or of any other person or entity described in clauses (1) to (3), inclusive; is prohibited.

(b) A violation of this section shall be punished by a fine of not more than $1,000 per return, document, or taxpayer, as the court determines, with respect to which information was inspected, or by imprisonment for not more than 1 year, or both, and by disqualification from holding office in the commonwealth for such period, not exceeding 3 years, as the court determines.

(c) The determination by the commissioner that an employee of the department of revenue, or the determination by another agency head that an employee of that other agency has, in contravention of this subsection, willfully inspected information where the inspection was unauthorized and not protected by the good faith provision of this subsection, shall be grounds for dismissal of the employee.

(d) A violation, as determined by the commissioner, of this subsection by any officer, director or employee of any person under contract with the commonwealth shall be grounds for prohibiting the officer, director or employee form working on the contract.  A violation, as determined by the commissioner, of this subsection by any person under contract with the commonwealth, or any officer, director, or employee thereof, shall also be cause for terminating any current contract between the commonwealth and for prohibiting the contractor from entering into any future contract with the commonwealth.

SECTION 9.  Section 24 of said chapter 62C, as appearing in the 2004 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

For the purposes of verifying any return filed under this chapter, the commissioner or his duly authorized representative may examine the books, papers, records and other data of the taxpayer, which shall be open to the commissioner or representative for verification.  In the case of a return due, taking extensions into account, before July 1, 2002, the examination may be required at any time within 3 years after the date prescribed for the filing of the return, or the date filed, whichever is later.  In the case of a return due, taking extensions into account, on or after July 1, 2002, the examination may be required at any time within 6 years after the date prescribed for the filing of the return, or the date filed, whichever is later.  The taxpayer shall provide to the commissioner all accounting records and information in electronic format, as requested by the commissioner, to the extent that the taxpayer maintains the records in electronic format.

SECTION 10.  Section 30 of said chapter 62C is hereby amended by striking out the first and second paragraphs, as so appearing, and inserting in place thereof the following 3 paragraphs:-

If the federal government finally determines that there is a difference from the amount previously reported in (1) the taxable income of a person subject to taxation under chapter 62, or (2) a federal credit to which the person may be entitled, but only if the calculation of the credit has an effect on the computation of the tax imposed under said chapter 62, the final determination shall be reported, accompanied by payment of any additional tax due with interest as provided in section 32, to the commissioner within 1 year of receipt of notice of the final determination.  If the federal government finally determines that there is a difference from the amount previously reported in (1) the taxable income of a person subject to taxation under chapter 63, or (2) a federal credit to which the person may be entitled, but only if the calculation of the credit has an effect on the computation of the tax imposed under said chapter 63, the final determination shall be reported, accompanied by payment of any additional tax due with interest as provided in section 32, to the commissioner within 3 months of receipt of notice of the final determination.  If the federal taxable estate of an estate subject to taxation under chapter 65C is finally determined by the federal government to be different from the taxable estate as previously reported, the final determination shall be reported, accompanied by payment of any additional tax due with interest as provided in section 32, to the commissioner within 2 months of receipt of notice of the final determination.  The report shall include a statement of the reasons for the difference in the form as the commissioner may require.  If from the report or upon investigation it shall appear that any tax under chapter 62, chapter 63 or chapter 65C has not been fully assessed, the commissioner shall, notwithstanding the 3 year limitation in section 26, assess an additional tax, if any, with respect thereto, with interest as provided in section 32.  An assessment under this section shall be made in the manner provided in section 26 within 1 year of the receipt of the report or, where no report is filed with the commissioner, within 2 years of the receipt by the commissioner of information from the federal government that it has made a final determination of the person's federal taxable income or credits or of the federal taxable estate.  A person or estate may include in the report of a change under this paragraph proposed offsets to the additional tax due based on issues unrelated to the change.  The offsets, if allowed, may reduce or eliminate the additional tax due, but in no case shall any such offset give rise to a refund of tax that would otherwise be barred as untimely.

 If, as a result of the change by the federal government in a person's federal taxable income, federal credits or federal taxable estate, the person or estate believes that a lesser tax was due the commonwealth than was assessed, the person or estate may apply in writing to the commissioner for an abatement thereof under section 37 within 1 year of the date of notice of the final determination by the federal government.  The commissioner in his consideration of the application may offset against the proposed abatement additional tax due whether or not the additional tax is based on issues related to the change.  Offsets based on issues unrelated to the change may reduce or eliminate the abatement, but in no case shall an offset give rise to a net amount of tax due based on an assessment that would otherwise be barred as untimely.

The commissioner shall make no assessment under this section, nor allow any abatement under this section unless the assessment or abatement, less any offset allowable against the assessment or abatement under this section, is directly attributable to changes, adjustments, or corrections to the taxpayer's federal taxable income or credits or federal estate resulting in a final determination. 

SECTION 11.  Said chapter 62C is hereby further amended by inserting after section 30, as so appearing, the following section:-

Section 30A.  (a) If the tax due any other state, territory or possession of the United States, or the Dominion of Canada or any of its provinces, on account of any item of Massachusetts gross income of a Massachusetts resident, is finally determined by the jurisdiction to be less than the tax previously reported, and the tax was the basis for a credit claimed by the Massachusetts resident under subsection (a) of section 6 of chapter 62, the final determination shall be reported, accompanied by payment of any additional tax due with interest as provided in section 32, to the commissioner within 1 year of receipt of notice of the final determination.  The report shall include a statement of the reasons for the difference in a form as the commissioner may require.  If from the report or upon investigation it shall appear that any tax under chapter 62 has not been fully assessed, the commissioner shall, notwithstanding the limitation in section 26, assess an additional tax, if any, with respect thereto, with interest as provided in section 32.  An assessment under this section shall be made in the manner provided in section 26 within 1 year of the receipt of the report or, where no report is filed with the commissioner, within 2 years of the receipt by the commissioner of information from the jurisdiction that it has made a final determination of such person’s tax.  A person may include in the report of a change under this paragraph proposed offsets to the additional tax due based on issues unrelated to the change.  The offsets, if allowed, may reduce or eliminate the additional tax due, but in no case shall any such offset give rise to a refund of tax that would otherwise be barred as untimely.

(b) If, as a result of a change by the jurisdiction in a person’s tax due the jurisdiction, the person believes that he is entitled to additional credit under subsection (a) of section 6 of chapter 62 and that a lesser tax was due the commonwealth than was paid, such person may apply in writing to the commissioner for an abatement thereof under section 37 within 1 year of the date of notice of the final determination.  The commissioner in his consideration of the application may offset against the proposed abatement additional tax due whether or not the additional tax is based on issues related to the change.  Offsets based on issues unrelated to the change may reduce or eliminate the abatement, but in no case shall an offset give rise to a net amount of tax due based on an assessment that would otherwise be barred as untimely.

(c) A person failing to comply with subsection (a) shall be assessed a penalty in the sum of $100, or 10 per cent of the additional tax found due, whichever sum is smaller, said penalty to become part of the additional tax found due.  For reasonable cause shown, the commissioner may, in his discretion, abate the penalty in whole or in part.

(d) For purposes of this section, the term “person” shall include an individual or fiduciary subject to taxation under chapter 62.

(e) For purposes of this section, a final determination of a change may be initiated by the filing of an amended return by the taxpayer in the jurisdiction whose tax gives rise to the change.

(f) The commissioner of revenue may promulgate rules and regulations necessary to implement this section.

SECTION 12.  Said chapter 62C is hereby further amended by inserting after section 35 the following 4 sections:-

Section 35A. (a)  If this section applies to any portion of an underpayment of tax required to be shown on a return, there shall be added to the tax an amount equal to 20 per cent of the portion of the underpayment to which this section applies.  For purposes of this section, the term "underpayment" means the amount by which any tax exceeds the amount shown as the tax by the taxpayer on the return.

(b)  This section shall apply to the portion of any underpayment which is attributable to 1 or more of the following:  (1) negligence or disregard of the tax laws of the commonwealth or of public written statements issued by the commissioner; (2) any substantial understatement of  liability for a tax referred to in section 2 of chapter 62C .

(c)  For purposes of this section, the term "negligence" includes any failure to make a reasonable attempt to comply with the laws or public written statements; the term "disregard" includes any careless, reckless, or intentional disregard, and there is a substantial understatement of liability for a tax for any tax period if the amount of the understatement for the period exceeds the greater of 10 per cent of the tax required to be shown on the return for the period or $1,000.

(d)  For purposes of subsection (c), the term "understatement" shall mean the excess of the amount of the tax required to be shown on the return for the period over the amount of the tax which is shown on the return.  The amount of the understatement shall be reduced by that portion of the understatement which is attributable to (1) the tax treatment of any item by the taxpayer if there is or was substantial authority for such treatment; or (2) any item if the relevant facts affecting the tax treatment of the item are adequately disclosed in the return or in a statement attached to the return, and there is a reasonable basis for the tax treatment of the item by the taxpayer, but this clause shall not apply in the case of listed abusive transactions or strategies within the meaning of subsection (b) of section 35B.

(e)  The penalty set forth in this section shall apply only in cases where a return of tax is filed.

Section 35B.  (a) A penalty shall not be imposed under section 35A with respect to any portion of an underpayment if it is shown that there was reasonable cause for the portion and that the taxpayer acted in good faith with respect to the portion.  With respect to listed abusive transactions or strategies within the meaning of subsection (b) of this section, the commissioner may, by regulation, set forth circumstances under which the penalties otherwise may be waived in the interest of the efficient administration of the tax laws of the commonwealth.

(b) The commissioner may, from time to time, list by regulation items that he considers to be abusive transactions or tax strategies for purposes of section 35A and of this section.

Section 35C.  (a) If (1) any part of any understatement of liability with respect to any return or claim for abatement or refund is due to a position for which there was not a realistic possibility of being sustained on its merits; (2) any person who is a return preparer with respect to the return or claim knew or reasonably should have known of the position; and (3) the position was not disclosed as provided in subsection (d) of section 35A or was frivolous; the person shall pay a penalty of $1,000 with respect to the return or claim unless it is shown that there is reasonable cause for the understatement and the person acted in good faith.  The penalty imposed under this paragraph may be assessed within 3 years after the return or claim was filed.  Any claim for abatement of the penalty shall be filed within 3 years from the time the penalty was paid.  The commissioner may waive or abate the penalty imposed under this subsection if the taxpayer demonstrates that its failure to comply was due to reasonable cause and not willful neglect.

(b) If any part of any understatement of liability with respect to any return or claim for refund is due to (1) a willful attempt in any manner to understate the liability for tax by a person who is a return preparer with respect to the return or claim, or (2) any careless, reckless or intentional disregard by the person of the tax laws of the commonwealth or of public written statements issued by the commissioner; the person shall pay a penalty equal to the greater of $1,000 or 10 per cent of the tax attributable to the part of the understatement; provided, however, that if both the penalty imposed under subsection (a) and the penalty imposed under this subsection are applicable to the same return or claim, the penalty imposed under this paragraph shall be reduced by the amount of the penalty imposed under paragraph (a).  The penalty imposed under this paragraph may be assessed against the preparer at any time.  Any claim for abatement of the penalty shall be filed within 2 years from the time the assessment was made.

(c) Except as otherwise provided in this section, the penalties imposed under this section shall be administered in accordance with the rules set forth in this chapter for the administration of taxes generally.

Section 35D.  (a)  A taxpayer subject to the tax imposed under chapter 62 or an excise imposed under chapter 63 that takes an inconsistent position in reporting its income subject to tax under said chapters shall disclose the inconsistency when it files a return.

(b) For purposes of this section, a taxpayer is considered to have taken an "inconsistent position" when (1) the governing law in another state in which the taxpayer files a return is the same in all material respects as the law in the commonwealth; and (2) if the taxpayer had interpreted the law of the commonwealth as it interpreted the law of the other state in filing its return in that other state, the taxable income attributed to the commonwealth would have been greater.

(c) Any taxpayer that fails to disclose an inconsistency as required under subsection (a) shall pay a penalty equal to the amount of tax attributable to the inconsistency, which penalty shall be in addition to all other penalties that may apply.  The commissioner may waive or abate the penalty if the inconsistency or the failure to disclose was attributable to reasonable cause and not willful neglect.

SECTION 13.  Said chapter 62C is hereby further amended by inserting after section 35D, inserted by section 12 of this act, the following section:-

Section 35E.  (a) A person who (1) organizes or assists in the organization of any plan or arrangement or the sale of any plan or arrangement, and (2) makes or furnishes, or causes another person to make or furnish, a statement with respect to the allowability of any deduction or credit, the excludability of any income, or the securing of any other tax benefit, including but not limited to the avoidance of a filing requirement with respect to a tax return that would otherwise be required to be filed under this chapter, which the person knows or has reason to know is false, fraudulent or deliberately misleading as to any material matter, shall pay, with respect to each taxpayer to whom the statement is made, a penalty of $5000, or, if the person establishes that it is lesser, 100 per cent of the gross income derived or to be derived from the activity described in this subsection.  The penalty imposed under this subsection may be assessed against the person within 6 years after the statement was made.  Any claim for abatement of the penalty shall be filed within 2 years from the time the assessment was made.

(b) Except as otherwise provided in this section, the penalties imposed under this section shall be administered in accordance with the rules set forth in this chapter for the administration of taxes generally.

SECTION 14.  Section 36A of said chapter 62C, as appearing in the 2004 Official Edition, is hereby amended by adding the following paragraph:-

If the commissioner determines that he has made any payment in error, he shall notify the person to whom payment was made, in writing, making demand for repayment.  If within 30 days thereafter the amount demanded is repaid in full, no interest shall be due.  If repayment of the full amount demanded is not made within 30 days, the outstanding sum shall, without further action by the commissioner, be considered to be a tax assessed under this chapter as of the date of the demand, and subject to all the provisions thereof. 

SECTION 15.  Section 43 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out, in line 3, the words “fifty dollars” and inserting in place thereof the following:- $100.

SECTION 16.  Section 49A of said chapter 62C, as so appearing, is hereby amended by striking out subsections (a) and (b) and inserting in place thereof the following 2 subsections:-

(a) A person applying to a department, board, commission, division, authority, district or other agency of the commonwealth or any subdivision of the commonwealth, including a city, town or district, for a right or license to conduct a profession, trade or business or for the renewal of the right or license, shall certify upon application, under penalties of perjury, that he has complied with all laws of the commonwealth relating to taxes, reporting of employees and contractors, and withholding and remitting of child support.

(b) Upon receipt of the application, and once the commissioner has promulgated applicable regulations and implemented to his satisfaction the manner and method, including electronic data matching, by which verification may be obtained, the department or other entity charged with issuing the right or license shall confirm that the applicant is in good standing with respect to any and all returns due and taxes payable to the commissioner as of the date of issuance of the confirmation.  An applicant shall be considered to have consented to the commissioner’s release of tax and child support data to the department or other entity to the extent necessary to confirm the applicant’s adherence to the tax and child support laws of the commonwealth.  No such right or license shall be issued or renewed unless the issuer has confirmed the tax or child support status of the applicant as required herein; but, the commissioner may issue waivers of the requirements of this paragraph for reasonable cause, and that the existence of a non-frivolous appeal of a tax or child support assessment, or of a payment agreement with which the taxpayer is fully compliant shall not prevent issuance of the license. 

A contract or other agreement for the purposes of providing goods, services or real estate space to any of the foregoing agencies shall not be entered into, renewed or extended with the person unless such person certifies in writing, under penalties of perjury, that he has complied with all laws of the commonwealth relating to taxes, reporting of employees and contractors, and withholding and remitting of child support and, subject to the conditions stated above, the contracting agency confirms with the commissioner that the person is in good standing with respect to any and all returns due and taxes payable to the commissioner as of the date of confirmation.

SECTION 17.  Subsection (a) of section 50 of said chapter 62C, as so appearing, is hereby amended by inserting after the first sentence the following sentence:-

The lien shall also extend to property or rights to property of a trust with respect to tax amounts due from a grantor or other person treated as the owner of any portion of the trust by reason of sections 671 to 678, inclusive, of the Code, and to property or rights to property of a disregarded entity with regard to tax amounts due from the owner of the entity; but, with respect to real property and fixtures, the lien shall not be valid against any mortgagee, pledgee, purchaser or judgment creditor unless the notice to be recorded pursuant to subparagraph (1) of subsection (b) includes therein the names of the persons in whom the record title to the real property or fixtures stands at the time of recording the notice.

SECTION 18.  Section 30 of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out in lines 17 to 19, inclusive, the words “, nor to a corporation exempt from taxation under section 501 of the Code, as amended and in effect for the taxable year,”.

SECTION 19.  Said section 30 of said chapter 63, as so appearing, is hereby further amended by striking out, in lines 42 to 44, inclusive, the words “to a corporation, association or organization which is exempt from taxation under section 501 of the Code, as amended and in effect for the taxable year”.

SECTION 20.  Paragraph 4 of said section 30 of Chapter 63, as so appearing, is further amended by inserting after the first sentence the following sentence:-  In the case of a corporation exempt from taxation under the provisions of section 501 of the Code, “net income” shall mean unrelated business taxable income, as defined in section 512 of the Code.

SECTION 21.  Said section 30 of said chapter 63, as so appearing, is hereby further amended by inserting after paragraph 8 the following paragraph:-

9.  Notwithstanding paragraph 8, the net worth of a domestic business corporation taxable under clause (1) of subsection (a) of section 32 or a foreign corporation taxable under clause (1) of subsection (a) of section 39 that is a qualified real estate investment trust shall be the portion of the book value of its total assets less its liabilities on the last day of the taxable year as the book value of its tangible assets situated within the commonwealth on said date and not subject to local taxation plus the amount of its intangible assets on said date allocable to this commonwealth, as hereinafter determined, bears to the book value of its total assets on said date.  The intangible assets allocable to the commonwealth shall be the portion of the book value of its total intangible assets on the last day of the taxable year, less the book value on said date of its investment in and advances to subsidiary corporations which represent 80 per cent or more of the voting stock of the corporations, as shall be found by multiplying said amount by the corporation’s income apportionment percentage, as determined under section 38.  In determining the book value of any asset, the commissioner may disallow any reserve, in whole or in part, with respect thereto which, in his judgment, is not reasonable and proper.  For the purpose of this paragraph, “qualified real estate investment trust” shall mean a domestic or foreign corporation that both qualifies as a real estate investment trust under section 856 of the Code, as defined in paragraph 16, and that is required to file with the Securities and Exchange Commission the annual and other reports as are specified in Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended; and “advances” shall mean the interests in a corporation where a corporation-shareholder relationship exists, determined under the regulations as the commissioner may issue and under the provisions of section 385 of the Federal Internal Revenue Code as amended and in effect for the taxable year and the regulations issued thereunder.

SECTION 22.  Subsection (a) of section 31A of said chapter 63, as so appearing, is hereby amended by striking out clauses (1) and (2) and inserting in place thereof the following words:-  is depreciable under section 167 of said Code and has a useful life of 4 years or more.

SECTION 23.  The first paragraph of subsection (i) of said section 31A of said chapter 63, as so appearing, is hereby amended by striking out clauses (1) and (2) and inserting in place thereof the following words:-  is depreciable under section 167 of said Code and has a useful life of 4 years or more.

SECTION 24.  Section 38 of said chapter 63, as so appearing, is hereby amended by striking out subsection (f) and inserting in place thereof the following subsection:-

(f) The sales factor is a fraction, the numerator of which is the total sales of the corporation in this commonwealth during the taxable year, and the denominator of which is the total sales of the corporation everywhere during the taxable year.  As used in this subsection, unless specifically stated otherwise, "sales" shall mean all gross receipts of the corporation, (including deemed receipts from transactions treated as sales or exchanges under the Code), except interest, dividends, and gross receipts from the maturity, redemption, sale, exchange or other disposition of securities; but, "sales" shall not include gross receipts from transactions or activities to the extent that a non-domiciliary state would be prohibited from taxing the income from such transactions or activities under the Constitution of the United States.  Sales of tangible personal property are in this commonwealth if:

1. the property is delivered or shipped to a purchaser within this commonwealth regardless of the f. o. b. point or other conditions of the sale; or

2. the corporation is not taxable in the state of the purchaser and the property was not sold by an agent or agencies chiefly situated at, connected with or sent out from premises for the transaction of business owned or rented by the corporation outside this commonwealth. "Purchaser", as used in clauses 1 and 2 of this paragraph, shall include the United States government.

Sales, other than sales of tangible personal property, are in this commonwealth if:

1. the income-producing activity is performed in this commonwealth; or

2. the income-producing activity is performed both in and outside this commonwealth and a greater proportion of this income-producing activity is performed in this commonwealth than in any other state, based on costs of performance.

For the purposes of this subsection: (1) in the case of the licensing of intangible property, the income-producing activity will be considered to be performed in the commonwealth to the extent that the intangible property is used in the commonwealth; (2) the corporation will be considered to be taxable in the state of the purchaser if the tangible personal property is delivered or shipped to a purchaser in a foreign country; (3) sales of tangible personal property to the United States government or any agency or instrumentality thereof for purposes of resale to a foreign government or any agency or instrumentality thereof are not sales made in the commonwealth; (4) in the case of the sale, exchange or other disposition of a capital asset, as defined in paragraph (m) of section 1 of chapter 62, used in a taxpayer's trade or business, including a deemed sale or exchange of such asset, "sales" are measured by the gain from the transaction; and (5) "security" shall mean any interest or instrument commonly treated as a security as well as other instruments which are customarily sold in the open market or on a recognized exchange, including, but not limited to, transferable shares of a beneficial interest in any corporation or other entity, bonds, debentures, notes, and other evidences of indebtedness, accounts receivable and notes receivable, cash and cash equivalents including foreign currencies, and repurchase and futures contracts.

Notwithstanding the foregoing, mutual fund sales by a mutual fund service corporation as defined in subsection (m), other than the sale of tangible personal property, shall be assigned to this commonwealth to the extent that shareholders of the regulated investment company are domiciled in this commonwealth as follows:

(i) by multiplying the mutual fund service corporation’s total dollar amount of sales of such services on behalf of each regulated investment company by a fraction, the numerator of which shall be the average of the number of shares owned by the regulated investment company’s shareholders domiciled in this commonwealth at the beginning of and at the end of the regulated investment company’s taxable year that ends with or within the mutual fund service corporation’s taxable year, and the denominator of which shall be the average of the number of shares owned by the regulated investment company shareholders everywhere at the beginning of and at the end of the regulated investment company’s taxable year that ends with or within the mutual fund service corporation’s taxable year.

(ii) A separate computation shall be made to determine the sale for each regulated investment company, the sum of which shall equal the total sales assigned to the commonwealth.

The commissioner shall promulgate regulations to implement this paragraph.

SECTION 25.  Section 38C of said chapter 63, as so appearing, is hereby amended by adding the following paragraph:-

For purposes of this section and section 38, the development and sale of standardized computer software shall be considered a manufacturing activity, without regard to the manner of delivery of the software to the customer.

SECTION 26.  Said chapter 63 is hereby further amended by inserting after section 38S, the following section:-

Section 38T.  Every foreign or domestic corporation which is exempt from taxation under section 501 of the Code shall be subject to tax under section 32 or 39 on its unrelated business taxable income, as defined in section 512 of the Code.  The property or net worth of such a corporation shall not be subject to tax under this chapter and the minimum excise under section 32 or 39 shall not apply.  If a corporation has unrelated business taxable income that is taxable both within and without the commonwealth, it may apportion its net income to the commonwealth pursuant to section 38, provided that its apportionment factors shall be determined by reference only to the unrelated business activity of the corporation.  The credits allowed under this chapter shall be determined only with respect to the unrelated business activity of the corporation.

An entity that is exempt from taxation under section 501 of the Code shall not be considered to be a foreign or domestic corporation for purposes of chapter 59.

SECTION 27.  Section 42B of said chapter 63 as appearing in the 2004 Official Edition, is hereby amended by adding the following paragraph:-

For purposes of this section and section 38, the development and sale of standardized computer software shall be considered a manufacturing activity, without regard to the manner of delivery of the software to the customer.

SECTION 28.  Chapter 64D of the General Laws is hereby amended by striking out section 1 and inserting in place thereof the following section:-

Section 1.  There shall be levied, collected and paid the excise herein specified on each conveyance of real property located in the commonwealth or interest in real property located in the commonwealth: when the consideration for the interest or property conveyed, exclusive of the value of any lien or encumbrance remaining thereon at the time of the sale, exceeds $100 and does not exceed $500, $2; and for each additional $500 or fractional part thereof, $2; provided, however, that in Barnstable county, the excise herein specified shall be $1.50 for each $500 or fractional part of said consideration, excluding a consideration of between $0 and $100 dollars.  Said excise shall be payable at the registry of deeds in the county in which the real property lies, regardless of whether the conveyance is evidenced by a deed, instrument, or other writing or whether such deed, instrument, or other writing is otherwise recorded. Notwithstanding any other provisions of this section or any other general or special law to the contrary, Nantucket county may disburse and expend deposits in county excise funds for the purpose of facilities and programs related to law enforcement, including the planning, improving or constructing of police stations and other related facilities and programs. This chapter shall not apply to any instrument or writing given to secure a debt or to any conveyance to which the commonwealth, a city or town of the commonwealth, or the United States or any of their agencies are a party.  

For purposes of calculating the excise set forth in this chapter, pursuant to regulations to be promulgated by the commissioner, the commissioner may treat multiple transactions as a single transaction or may otherwise adopt reasonable rules to avoid multiple applications of the excise when such transactions are components of a single project including, but not limited to, projects involving historic rehabilitation tax credits, the Community Preservation Act and the development of affordable housing.

For purposes of this chapter, unless otherwise expressly stated, the following words shall have the following meanings:

"Conveyance", a transfer or transfers, directly or indirectly, of any interest in real property by any method, including but not limited to sale, exchange, grant, assignment, trust indenture, or transfer or acquisition of a controlling interest in any entity with an interest in real property, but the transfer or acquisition of a controlling interest shall be considered to be a conveyance only if the fair market value of the interest or interests in real property wherever situated that is owned by the entity, whether directly or through subsidiary entities, equals or exceeds 80 per cent of the fair market value of all of the assets of the entity.

"Interest in real property", includes, but is not limited to, an estate in fee simple, a beneficial interest, a life estate, a perpetual easement, or a leasehold or sublease interest, ordinary or proprietary, but only where the sum of the term of the lease or sublease and any options for renewal, extension, or the like exceeds 49 years.

"Transfer or acquisition of a controlling interest", occurs, in the case of a corporation which has an interest in real property, when a person, or group of persons acting in concert, transfers or acquires, directly or indirectly, including through the transfer or acquisition of an interest in another entity, a total of more than 50% of the total combined stock of the corporation, by vote or value.  In the case of any partnership, limited liability company, association, trust, or other entity having an interest in real property, the transfer or acquisition of a controlling interest therein occurs when a person, or group of persons acting in concert, transfers or acquires, directly or indirectly, including through the transfer or acquisition of an interest in another entity, a total of more than 50% of the capital, profits, or beneficial interest in the entity.

Persons are considered to be "acting in concert" when, in accordance with regulations promulgated by the commissioner, they have a relationship such that one person influences or controls the actions of another.  Where the individuals or entities are not commonly controlled or owned, persons shall be considered to be acting in concert when, in accordance with regulations promulgated by the commissioner, the unity with which the sellers or purchasers have negotiated and will consummate the transfer of ownership interests indicates that they are acting as a single entity.  If the transfers or acquisitions are completely independent, each seller selling or purchaser buying without regard to the identity of the other sellers or purchasers, then the transfers or acquisitions shall be treated as separate transfers or acquisitions.

For purposes of determining whether a controlling interest is transferred or acquired, only transfers or acquisitions of interests occurring on or after September 1, 2005, shall be added together.  Where there is a transfer or acquisition of an interest in an entity that has an interest in real property on or after September 1, 2005, and subsequently there is a transfer or acquisition of an additional interest or interests in the same entity, the transfers or acquisitions shall be added together to determine if a transfer or acquisition of a controlling interest has occurred.  No transfer or acquisition of an interest in an entity that has an interest in real property shall be added to another transfer or acquisition in the same entity if they occur more than 3 years apart, unless the transfers or acquisitions are so timed as part of a plan to avoid the excises herein specified.

Notwithstanding the foregoing, a bona fide pledge of stock, partnership, or other interest as loan collateral nor any conveyance of publicly traded stock, partnership, or other interest, shall not be considered subject to taxation under this chapter.

The commissioner may promulgate regulations to implement this section.

SECTION 29.  Said chapter 64D is hereby amended by striking out section 2, as so appearing, and inserting in place thereof the following section:-

Section 2.  The excise imposed by this chapter shall be paid by the person who conveys the real property or interest therein, or for whose benefit the real property or interest therein is conveyed.  When the conveyance consists of a transfer or an acquisition of a controlling interest in an entity with an interest in real property, the "person who conveys" such interest means, but is not limited to, a shareholder, partner, or other interest-holder transferring stock, a partnership interest, or another equity interest, respectively.  The payment of the excise shall be denoted by "stamps," as that term is defined in section 3, affixed to or printed directly on the deed, instrument or writing evidencing the conveyance, or if none, to a form prescribed by the commissioner for such purpose.  In any case in which a conveyance subject to the excise imposed herein is not evidenced by a deed, instrument, or writing that will be recorded, the same shall be evidenced by recording the stamp form required by this section.  The person affixing or printing a stamp shall cancel the same by writing or stamping thereon the initials of his name and the date when the same is affixed or printed, in such manner that it cannot be used again; but the stamp shall not be so defaced as to prevent determination of its denomination and genuineness.

The word "person" shall, for the purposes of this chapter, include political subdivisions of the commonwealth, individuals, partnerships, corporations, trusts, limited liability companies, societies, associations, or any other form of unincorporated enterprise.

SECTION 30.  Said chapter 64D is hereby further amended by striking section 3, as so appearing, and inserting in place thereof the following section:-

Section 3.  Stamps for the purpose of paying the excise under this chapter shall be prepared in such form, of such denominations and in such quantities as the commissioner may prescribe.  He shall make provision for the sale of the stamps in such places and at such times as he considers necessary.  He shall provide for the custody of the stamps and other equipment used in the production of said stamps in such manner as he deems expedient.  For purposes of this section, the term "stamps" shall include both adhesive stamps and computer generated images printed directly on a deed, instrument, writing, or form required by section 2.

The commissioner may cause to be installed in any registry of deeds one or more metering machines through which the stamps may be sold and may remove the machine if he considers it expedient.  The commissioner may also approve computer hardware and software, purchased at the expense of the registry, to produce stamps.  Upon the installation of a metering machine or approved computer hardware and software the register of deeds of the registry shall sell stamps to persons requiring the same for affixation or printing to deeds, instruments, writings, or forms in accordance with this chapter.

Each register of deeds shall on or before the tenth day of each month account to the commissioner on a form prescribed and furnished by him for all sales made by the register during the preceding calendar month and shall turn over to the commissioner all moneys received from the sales, less any adjustments approved by him.  Each register of deeds, with the approval of the advisory board on county expenditures and the county commissioners, shall for the purposes of purchasing equipment or services relative to electronic reporting, indexing, computers and systems designed to modernize and maintain registry records, retain interest earned on the deposit of excise stamp fees.  Each such register shall, annually, furnish to the county treasurer a financial report regarding such interest and the expenditure thereof in accordance with accepted accounting procedures.

The machines or computer equipment shall, upon installation, be subject to inspection by the commissioner or his duly appointed agent or agents at any time.

Each register of deeds shall give to the commissioner a bond, in a penal sum and with sureties approved by the commissioner, conditioned satisfactorily to account for money received by the register in his official capacity from the sale of the stamps.  The premium for the bond shall be paid by the state treasurer upon certification by the commissioner.

Sections 3 A and 3 B shall not be applicable to any registry of deeds during the period within which a metering machine or approved computer hardware or software is installed therein, nor to any registry operated by the state secretary.

SECTION 31.  Section 3A of said chapter 64D, as so appearing, is hereby amended by striking out, in line 5, the word “adhesive”.

SECTION 32.  Section 4 of said chapter 64D, as so appearing, is hereby amended by inserting after the word "affixed", in line 1, the following words:- or printed.

SECTION 33.  Said chapter 64D, as so appearing, is hereby amended by striking out section 6 and inserting in place thereof the following section:-

Section 6.  The commissioner shall administer and enforce the excise imposed by this chapter and shall promulgate regulations as necessary to implement this chapter.  At any time after the making of a conveyance subject to the excise imposed by this chapter, he may investigate and ascertain whether said excise, in the proper amount, was paid.  For this purpose, the commissioner may exercise all powers granted to him under section 70 of chapter 62C.  Whoever refuses to produce the books, papers, records, or other data required to be produced under section 70, or fails to preserve the same for three years or such longer period as the commissioner may by regulation provide, or alters, cancels or obliterates any part thereof, or makes any false entry therein, shall be punished by a fine of not less than $500 nor more than $5,000, or by imprisonment for not less than 3 months nor more than 2 years, or both.

SECTION 34.  Section 6A of said chapter 64D, as so appearing, is hereby amended by striking out the first sentence thereof and inserting in its place the following sentence:-

Whoever signs and delivers to a purchaser, or to any person designated by a purchaser, a deed, instrument, writing, or form required by section 2 of this chapter which does not have the stamps required by this chapter affixed thereto or printed thereon, or whoever leaves or causes to be left for recording or registration in any registry of deeds within the commonwealth an original deed, instrument, writing, or form which does not have the stamps required by this chapter affixed thereto or printed thereon, or a duplicate deed, instrument, writing, or form without first having left or caused to be left for recording or registration in a registry of deeds within the commonwealth the original thereof, shall be subject to such penalty, not exceeding $100, as the commissioner may determine.

SECTION 35.  Said chapter 64D, as so appearing, is hereby amended by striking out section 6B and inserting in place thereof the following section:-

Section 6B.  The register of deeds may refuse to record or register any deed, instrument, writing, or form required by section 2 which does not have the stamps required by this chapter, as determined by the register, affixed thereto or printed thereon.

SECTION 36.  Section 8 of said chapter 64D, as so appearing, is hereby amended by inserting after the word "affixed", in line 7, the following words:- or printed.

SECTION 37.  Section 9 of said chapter 64D, as so appearing, is hereby amended by striking out, in line 1, the words "an adhesive" and inserting in place thereof the following words:- a stamp.

SECTION 38.  Section 10 of said chapter 64D, as so appearing, is hereby amended by striking out, in line 1, the word "taxes" and inserting in place thereof the following word:- excise.

SECTION 39.  Said chapter 64D, as so appearing, is hereby further amended by striking out section 11 and inserting in place thereof the following section:-

Section 11.  There shall be established upon the books of each county that has not been abolished pursuant to chapter 34B a separate fund, maintained separate and apart from all other funds and accounts of each county, to be known in each case as the Deeds Excise Fund.

Notwithstanding any general or special law and this chapter to the contrary, and except for Barnstable county and all counties that have been abolished pursuant to chapter 34B or other applicable law, on the first day of each month, 42.5% of the excises collected pursuant to this chapter shall be transmitted to the Deeds Excise Fund for each county.  For Barnstable county, on the first day of each month, 28.33% of the excises collected pursuant to this chapter, but not including the additional excise authorized under section 2 of chapter 163 of the acts of 1988, shall be transmitted to the Deeds Excise Fund.  Notwithstanding any general or special law and this chapter to the contrary, and except for Barnstable county and all counties that have been abolished pursuant to chapter 34B or other applicable law, on the first day of each month, 7.5% of the excises collected pursuant to this chapter shall be transmitted to the County Correction Fund established in section 13.  For Barnstable county, on the first day of each month, 5% of the excises collected pursuant to this chapter, but not including the additional excise authorized under said section 2 of said chapter 163, shall be transmitted to said County Correction Fund. The remaining percentage of excises collected under this chapter, including all excises collected under this chapter in all counties that have been abolished pursuant to chapter 34B or other applicable law shall be transmitted to and retained by the general fund in accordance with section 10.

SECTION 40.  Chapter 64G of the General Laws, as so appearing, is hereby amended by striking out section 7B and inserting in place thereof the following section:-

Section 7B.  Every operator who fails to pay to the commissioner any sums required to be paid by this chapter shall be personally and individually liable therefor to the commonwealth.  The term "operator", as used in this section, includes an officer or employee of a corporation, or a member or employee of a partnership or a limited liability company, who as such officer, employee or member is under a duty to pay over the taxes imposed by this chapter.

SECTION 41.  Section 1 of chapter 64H of the General Laws, as so appearing, is hereby amended by striking out, in line 210, the word "and."

SECTION 42.  Said section 1 of said chapter 64H, as so appearing, is hereby further amended by inserting after the word “amended”, in line 212, the following words:- ; and (vii) a "service charge" or "tip" that is distributed by a vendor to service employees, wait staff employees or service bartenders as provided in section 152A of chapter 149.

SECTION 43.  The definition of "tangible personal property" in said section 1 of said chapter 64H, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following 3 sentences:-  For purposes of this chapter, “tangible personal property” shall include gas, electricity and steam.  A transfer of standardized computer software, including, but not limited to, electronic, telephonic, or similar transfer, shall also be considered a transfer of tangible personal property.  The commissioner may, by regulation, provide rules for apportioning tax in those instances in which software is transferred for use in more than 1 state.

SECTION 44.  Paragraph (q) of section 6 of said chapter 64H, as so appearing, is hereby amended by striking out clause (1) and inserting in place thereof the following clause:- (1) Sales of both returnable and nonreturnable containers when sold without the contents to persons who place the contents in the container and sell the contents together with the container.

SECTION 45.  Paragraph (qq) of said section 6 of said chapter 64H, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:-  Sales of gas, steam, electricity or heating fuel for use by any business that has 5 or fewer employees that had gross income of less than $1,000,000 for the preceding calendar year, and that reasonably expects gross income of less than $1,000,000 for the current calendar year.

SECTION 46.  Said chapter 64H is hereby further amended by striking out section 16, as so appearing,  and inserting in place thereof the following section:-

Section 16. Every person who fails to pay to the commissioner any sums required by this chapter shall be personally and individually liable therefor to the commonwealth. The term "person'', as used in this section, includes an officer or employee of a corporation, or a member or employee of a partnership or limited liability company, who as such officer, employee or member is under a duty to pay over the taxes imposed by this chapter.

SECTION 47.  Chapter 64I, is hereby amended by striking out section 17, as so appearing, and inserting in place thereof the following section:-

Section 17. A person who fails to pay to the commissioner any sums required by this chapter shall be personally and individually liable therefor to the commonwealth. The term "person'', as used in this section, includes an officer or employee of a corporation, or a member or employee of a partnership or limited liability company, who as such officer, employee or member is under a duty to pay over the taxes imposed by this chapter.  A person shall not be personally or individually liable for uncollected use tax due from a corporation,  partnership, or limited liability company on its purchases of tangible personal property purchased for use of the corporation,  partnership or limited liability company unless the person's failure to pay the tax was willful or unless the person made personal use of the property subject to tax.

SECTION 48.  Chapter 93 of the General Laws is hereby amended by striking out section 52A, as appearing in the 2004 Official Edition, and inserting in place thereof the following section:-

Section 52A. The IV-D agency, as set forth in chapter 119A, shall report periodically to consumer reporting agencies the name of any noncustodial parent who is delinquent in the payment of child support, and the amount of overdue support owed by the parent, subject to the requirements of the following paragraph. The IV-D agency shall report information only to an entity that has furnished satisfactory evidence that the entity is a consumer reporting agency.

Before reporting the name of any person who is delinquent in the payment of child support to a consumer reporting agency, the IV-D agency shall afford the person notice and due process pursuant to sections 6 and 17 of chapter 119A. Nothing in this section shall impair the rights of any obligor under federal or state law regarding consumer credit reports or consumer credit reporting agencies.

SECTION 49.  Section 23 of chapter 119 of the General Laws, as so appearing, is hereby amended by striking out the last paragraph and inserting in place thereof the following paragraph:—

The department shall obtain and provide to the IV-D agency, as set forth in chapter 119A, an assignment of support rights on behalf of each child receiving foster care maintenance payments pursuant to Title IV, Part E, of the Social Security Act.  The department shall be subrogated to the rights of the child and shall obtain and provide to the IV-D agency information that may be reasonably necessary to enforce the department’s right, including, but not limited to the following information: the child's name, date of birth, place of birth, Social Security number, address and benefit level and, if known, each parent's name, date of birth, place of birth, Social Security number, most recent address and most recent employer.  The department shall notify the IV-D agency forthwith when a child whose rights to support are subrogated no longer receives foster care maintenance payments pursuant to Title IV, Part E, of the Social Security Act.

SECTION 50.  The second paragraph of subsection (a) of section 2 of chapter 119A of the General Laws, as so appearing, is hereby amended by inserting after the first sentence the following sentence:- In enforcing such subrogation rights, the IV-D agency may proceed to establish a support order pursuant to section 32F of chapter 209, or to establish paternity or a support order pursuant to chapter 209C, notwithstanding the failure of the obligee whose rights to support have been subrogated to the commonwealth to attend a hearing in an action pursuant to said chapters, upon a showing that written notice of the hearing was provided to the obligee by first class mail to the most recent residential address that the obligee has provided to the department of transitional assistance, the department of social services or the division of medical assistance.

SECTION 51.  Section 3B of said chapter 119A, as so appearing, is hereby amended by inserting after the word "subsection (a)", in line 69, the following words:- , the notice pursuant to subsection (b) shall specify the threshold for modification and shall identify the sources of the financial information relating to the parties, including tax information pursuant to chapter 62C and wage reporting information pursuant to chapter 62E that serves as the basis for the calculation of the amount of support in the proposed stipulation.

SECTION 52.  Said section 3B of said chapter 119A, as so appearing, is hereby further amended by striking out subsection (f).

SECTION 53.  Section 6 of chapter 119A, as so appearing, is hereby amended by inserting after the word "situations", in line 16, the following words:- ; seeking a warrant pursuant to section 34A of chapter 215 in appropriate situations.

SECTION 54.  Said section 6 of said chapter 119A, as so appearing, is hereby further amended by striking out, in lines 119 and 121, the word "six" and inserting in place thereof in each instance, the following figure:- 10.

SECTION 55.  Section 10 of chapter 200A of the General Laws, as so appearing, is hereby amended by adding the following subsection:-

(i) On or about January 1 of each year and quarterly thereafter, the treasurer shall review information made available by the IV – D agency, as set forth in chapter 119A, and by the department of revenue to ascertain if any person, as defined in section 1, with an interest in property surrendered to the state treasurer under this chapter owes past due child support and is subject to a present child support lien pursuant to section 6 of said chapter 119A, and to ascertain if any person with an interest in property surrendered to the state treasurer owes any past due tax liability to the commonwealth and is subject to a present tax lien pursuant to section 50 of chapter 62C.  If a person with an interest in property surrendered to the state treasurer under this chapter owes past due child support or any past due tax liability, the treasurer shall notify the IV –D agency or the department of revenue, respectively, of the person’s name, address, social security number, and taxpayer identification number, if available.

(1) If the person with an interest in property surrendered to the state treasurer under this chapter is the sole registered owner of the property surrendered to the state treasurer, the treasurer shall first disburse to the IV-D agency the full amount of the funds held in the abandoned property trust fund owing to the person or the portion of the property held that satisfies the person’s past due child support obligation. If funds remain available after a disbursement to the IV – D agency, or if no such obligation to the IV – D agency is owed, the treasurer shall disburse to the department of revenue the full amount of the funds held in the abandoned property trust fund owing to the person or the portion of the property held that satisfies the person’s past due tax liability.

(i) If the property surrendered to the state treasurer is subject to possible liquidation in accordance with the provisions of section 9, the property shall be held subject to an administrative lien preventing payment to the reported owner. Payment shall be made in accordance with paragraph (i) subsequent to any liquidation by the treasurer.

(ii) The treasurer shall disburse to any person only that portion of the property surrendered not used to offset any child support obligation or outstanding tax liability.

(2) If the person with an interest in property surrendered to the state treasurer under this chapter is not the sole registered owner of the property surrendered to the state treasurer, the IV –D agency, or the department of revenue shall notify all registered owners at the address provided by the treasurer of their right to request an administrative review pursuant to sections 6 and 17 of chapter 119A or sections 53 to 64, inclusive, of chapter 62C before any disbursement by the treasurer pursuant to paragraph (1).  The treasurer shall notify the IV –D agency or the department of revenue, respectively, of the names and addresses of all registered owners, if available.

(3) Pursuant to paragraph (8) of subsection (b) of section 6 of chapter 119A and subsection (d) of section 54 of chapter 62C, if the treasurer makes a payment to the IV-D agency or the department of revenue under this section the treasurer shall be discharged from any obligation or liability arising from the payment.

(4) A person aggrieved by the transfer of property to the IV –D agency or the department of revenue may pursue administrative remedies pursuant to sections 6 and 17 of chapter 119A or sections 53 to 64, inclusive, of chapter 62C, respectively.    

(5) Information provided by the IV-D agency or the department of revenue to the treasurer under this section may only be used for the purpose of assisting the IV-D agency in collecting past-due child support or the department of revenue in collecting past due tax liability.  Any person who uses information for any other purpose shall be liable in a civil action to the IV-D agency or the department of revenue in the amount of $1,000 for each violation. 

SECTION 56.  Subsection (a) of section 32F of chapter 209 of the General Laws, as so appearing, is hereby amended by adding the following 2 sentences:- In an action pursuant to this section where the rights to support of a party have been subrogated to the commonwealth pursuant to chapters 18, 119, or 118E, or Title IV, Parts A or E, or Title XIX of the Social Security Act, or any other public assistance program as required by federal or state law, the court shall proceed to establish an order for support pursuant to this section, notwithstanding the failure of the party to attend a hearing, upon a showing that written notice of the hearing was provided to the party by first class mail to the most recent residential address that the party has provided to the department of transitional assistance, the department of social services or the division of medical assistance.  For good cause shown, the court may set aside an entry of default and, if an order or judgment has been entered, may likewise set aside such order or judgment in accordance with rule 60(b) of the rules of domestic relations procedure.

SECTION 57.  Section 4 of chapter 209C of the General Laws, as so appearing, is hereby amended by striking out the first and second sentences and inserting in place thereof the following sentence:- Actions under this chapter to establish paternity, support, custody or visitation of a child shall be filed in the judicial district or county in which the child and 1 of the parents lives and if neither of the parents lives in the same judicial district or county as the child then the complaint shall be filed in the judicial district or county where the child lives; but, if the parents have been parties to a prior action under this chapter and the action has not been dismissed, a subsequent action under this chapter may be filed in the judicial district or county where the earlier action was filed.

SECTION 58.  Section 16 of said chapter 209C, as so appearing, is hereby amended by adding the following 2 subsections:-

(h) In an action pursuant to this chapter where the rights to support of a party have been subrogated to the commonwealth pursuant to chapter 18, 119 or 118E, or Title IV, Part A or E, or Title XIX of the Social Security Act, or any other public assistance program as required by federal or state law, the court shall proceed to establish orders pursuant to this chapter, notwithstanding the failure of the party to attend a hearing, upon a showing that written notice of the hearing was provided to the party by first class mail to the most recent residential address that the party has provided to the department of transitional assistance, the department of social services or the division of medical assistance.  For good cause shown, the court may set aside an entry of default and, if an order or judgment has been entered, may likewise set aside the order or judgment in accordance with rule 60(b) of the rules of domestic relations procedure.

(i) In an action pursuant to this chapter in a case receiving IV-D services, the court shall, upon good cause shown and upon verification of identity satisfactory to the court, permit a party to testify in an action pursuant to this chapter by telephone; and upon a showing that a party is incarcerated, permit the party to submit testimony by affidavit.   

SECTION 59.  Section 23 of said chapter 209C, as so appearing, is hereby amended by inserting after the word "void", in line 4, the following words:- , except as to any support arrearage which is owed to the Commonwealth as reimbursement for public assistance and which accrued before the date that the parents intermarry.

SECTION 60.  Section 34A of chapter 215 of the General Laws, as so appearing, is hereby amended by striking out, in line 1, the word “Actions” and inserting in place thereof the following words:- (a) Actions.

SECTION 61.  Said section 34A of said chapter 215, as so appearing, is hereby further amended by adding at the end the following new subsection:-

(b) Upon the request of the IV-D agency as set forth in chapter 119A, when a total arrearage amounting to the support owing for a 6-month period has accrued under the defendant's most recent order or judgment for support and the IV-D agency has been unable to bring the defendant before the court on a capias, the court shall issue a warrant for the arrest of the defendant.  The IV-D agency shall file an affidavit accompanying the request for a warrant that states (1) a total arrearage amounting to the support owing for a 6-month period has accrued under the defendant's most recent order or judgment for support, (2) the amount of the total arrearage, (3) the date of the last payment, if any, and (4) a description of the efforts made to serve the capias on the defendant.  The IV-D agency shall also provide the court with identifying information on the defendant's name, last known address, date of birth, gender, race, height, weight, hair and eye color, any known aliases and any such information as shall be required for a warrant to be accepted by the criminal justice information system maintained by the criminal history systems board.  A warrant that contains the above identifying information as provided by the IV-D agency to the court shall not be nullified if the information is later found to be inaccurate.  If any of the above identifying information is not known to the IV-D agency, the IV-D agency may apply to the court for an exemption from the requirement to provide the information.  The court shall grant the exemption if the court finds that the unknown information is not essential to identifying the defendant.  The defendant may not challenge the validity of a warrant based on the granting of the exemption.  The court shall enter the warrant, including the identifying information provided by the IV-D agency to the court and the name of the court that issued the warrant, into the warrant management system as set forth in section 23A of chapter 276.  The warrant shall consist of the information that appears in the warrant management system, and a printout of the warrant from the criminal justice information system shall constitute a true copy of the warrant.  The entry of the warrant into the warrant management system and the criminal justice information system shall constitute notice and delivery of the warrant to all law enforcement agencies who have arresting authority pursuant to section 23 of chapter 276.

Upon arrest, the arresting authority shall arrange for transportation of the defendant to the court that issued the warrant.  If the defendant is arrested when the court is not in session, the defendant shall be held by the arresting authority or county jail facility, and transported to the issuing court during the next session and presented to the court.  If the defendant voluntarily submits his person to the court, he shall likewise be brought before the court.  The court shall notify the IV-D agency and conduct a hearing to recall the warrant and shall issue an order for the defendant to do one or more of the actions set forth in clauses (1) to (6) of section 34.       

Whenever a warrant is recalled or removed, the court shall, without unnecessary delay, enter the recall or removal in the warrant management system which entry shall be electronically transmitted to the criminal justice information system.  The court shall also provide to the defendant a notice of recall of warrant.   

A law enforcement officer who in the performance of his duties relies in good faith on the warrant appearing in the warrant management system shall not be liable in any criminal prosecution or civil action alleging false arrest, false imprisonment, or malicious prosecution or arrest by false pretense. 

The issuing court shall provide notice no later than 30 days after the issuance of the warrant to the defendant.  The notice shall contain information on the name and address of the issuing court, the date of the last payment of child support, if any, the amount of the total child support arrearage, a description of the method by which the defendant may clear the warrant and a summary of the consequences the defendant may face for not responding to the warrant.  The notice shall be considered satisfactory if mailed to the address stated on the warrant.

If a warrant remains outstanding for 1 year following the date that the warrant is entered into the warrant management system it shall constitute evidence of willful nonsupport in a criminal action pursuant to chapter 273.

SECTION 62.  Chapter 258 of the General Laws is hereby amended by adding the following section:-

Section 14. For the purpose of satisfying liens for past due child support, securing repayment of public assistance benefits, and past taxes, a public employer shall comply with sections 24D, 24E and 24F of chapter 175 and any regulations promulgated thereunder in the same manner as if it were a company authorized to issue policies of insurance pursuant to said chapter 175.

SECTION 63.  Section 15A of chapter 273 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after the word "them", in line 5, the following word:- or.

SECTION 64.  Section 23 of chapter 276 of the General Laws, as so appearing, is hereby amended by inserting, after the word "crime", in line 2, the following words:- and child support warrants issued pursuant to section 34A of chapter 215.

SECTION 65.  Notwithstanding any general or special law or rule or regulation to the contrary, no person who timely filed a personal income tax return for the taxable year that included the period from January 1, 2002 to April 20, 2002, inclusive, shall be liable for the payment of interest or penalties on any additional tax amounts timely paid after assessment and attributable to capital gains recognized on or after January 1, 2002 but not later than April 30, 2002 as a result of the order of the supreme judicial court in the matter of E. Joel PETERSON & others vs. COMMISSIONER OF REVENUE, SJC-09362, dated April 26, 2005.  The tax amounts not timely paid upon assessment shall accrue interest and penalties from the due date for payment of the assessment as provided in sections 32 and 33 of chapter 62C of the General Laws.  The commissioner of the department of revenue shall establish rules and regulations to accept such payments in installments.

SECTION 66.  Sections 18 to 20, inclusive, and 25 to 27, inclusive, shall apply to taxable years beginning on or after January 1, 2006.

SECTION 67.  Sections 2 and 24 shall apply to taxable years beginning on or after January 1, 2005.

SECTION 68.  Sections 16, 41, 42, 43 and 45 shall take effect on October 1, 2005.

SECTION 69.  Sections 10 and 11 of this act shall apply to final determinations made on or after the effective date of this act.

SECTION 70.  Section 12 of this act shall apply to returns filed on or after the effective date of this act.

SECTION 71.  Section 13 of this act shall apply to statements made on or after the effective date of this act.

SECTION 72.  Sections 55 and 64 shall take effect on January 1, 2006.

SECTION 73.  Section 21 of this act shall be effective for tax years ending on or after August 9, 2004.

SECTION 74.  Sections 28 to 39, inclusive, shall take effect on October 1, 2005.