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HOUSE DOCKET, NO. 3408 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 230
The Commonwealth of Massachusetts
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PRESENTED BY:
Richard M. Haggerty
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to encouraging the growth of small businesses.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Richard M. Haggerty30th Middlesex1/20/2023 1 of 2
HOUSE DOCKET, NO. 3408 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 230
By Representative Haggerty of Woburn, a petition (accompanied by bill, House, No. 230) of
Richard M. Haggerty relative to bona fide business entities. Community Development and
Small Businesses.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 3547 OF 2019-2020.]
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to encouraging the growth of small businesses.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 Section 1. The Massachusetts General Laws, as appearing in the 2020 Official Edition, is
2hereby amended by inserting after Chapter 93K the following new chapter:
3 Chapter 93L, Bona Fide Business Entities
4 Section 1. A business entity that provides services under a written contract is not an
5employee for the purposes of Title IX, Taxation, and Title XXI, Labor and Industries, provided
6that the business entity is bona fide. A business entity will be deemed to be bona fide if it is
7shown that:
8 (a) The business entity is registered as such with the Secretary of the Commonwealth and
9is in good standing; 2 of 2
10 (b) The business entity includes the compensation it receives for the services it renders on
11federal and applicable state tax schedules as income from an independent business or profession;
12 (c) The business entity reports the compensation paid to its employees, if any, to the
13Internal Revenue Service and the Massachusetts Department of Revenue; and
14 (d) The business entity complies with federal and state tax, unemployment insurance,
15workers’ compensation insurance, and labor and employment law obligations with respect to its
16employees.