Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1892 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 1711 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1892
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Susan L. Moran
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act taxing the mental health impacts of social media.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Susan L. MoranPlymouth and Barnstable 1 of 9
16	16	SENATE DOCKET, NO. 1711 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1892
18	18	By Ms. Moran, a petition (accompanied by bill, Senate, No. 1892) of Susan L. Moran for
19	19	legislation to tax the mental health impacts of social media. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act taxing the mental health impacts of social media.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. The General Laws is hereby amended by adding, after chapter 64N, the
29	29	2following chapter:-
30	30	3 CHAPTER 64O: TAX ON THE COLLECTION OF CONSUMER DATA BY
31	31	4COMMERCIAL DATA COLLECTORS
32	32	5 Section 1. Definitions
33	33	6 For the purpose of this chapter, the following words shall have the following definitions:
34	34	7 “Commercial Data Collector”, a for-profit entity that:
35	35	8 (a) Collects, maintains, uses, processes, sells, or shares consumer data in support of its
36	36	9business activities;
37	37	10 (b) Collects consumer data, other than consumer contact information, on more than one
38	38	11million individual Massachusetts consumers in a month within the calendar year; and 2 of 9
39	39	12 (c) Owns, maintains, or otherwise manages a social media site.
40	40	13 “Consumer”, an individual who purchases goods and services from a commercial data
41	41	14collector or uses the services of a commercial data collector, whether charged for those services
42	42	15or not.
43	43	16 “Consumer contact information”, (a) a consumer’s email address, telephone number,
44	44	17telefax number, home address, mailing address; or (b) credit card information necessary to
45	45	18engage in a sales transaction.
46	46	19 “Consumer data”, any information that identifies, relates to, describes, is capable of being
47	47	20associated with, or could reasonably be linked with a consumer, whether directly submitted to
48	48	21the commercial data collector by the consumer or derived from other sources.
49	49	22 “Department”, the department of revenue.
50	50	23 “Massachusetts consumer”, a consumer whose primary residence is in the commonwealth
51	51	24of Massachusetts.
52	52	25 “Social media site”, any website that facilitate user participation, networking and
53	53	26collaboration through the submission of user generated content.
54	54	27 Section 2. Tax Liability
55	55	28 There is hereby imposed a monthly tax on the collection of the consumer data of
56	56	29individual Massachusetts consumers by commercial data collectors. The tax shall apply
57	57	30regardless of the format, electronic or otherwise, in which the consumer data is collected by the
58	58	31commercial data collector. 3 of 9
59	59	32 The tax shall be imposed on commercial data collectors at the following rates based on
60	60	33the number of Massachusetts consumers a commercial data collector collects data on within the
61	61	34month:
62	62	35 A commercial data collector that collects data on 1 million or fewer Massachusetts
63	63	36consumers shall not pay any additional tax under this section.
64	64	37 A commercial data collector that collects data on more than 1 million but less than or
65	65	38equal to 2 million Massachusetts consumers shall pay a tax of 5 cents per month on the number
66	66	39of Massachusetts consumers the commercial data collector serves.
67	67	40 A commercial data collector that collects data on more than 2 million but less than or
68	68	41equal to 3 million Massachusetts consumers shall pay a tax of 50 thousand dollars per month
69	69	42plus 10 cents per month on the number of Massachusetts consumers the commercial data
70	70	43collector serves.
71	71	44 A commercial data collector that collects data on more than 3 million but less than or
72	72	45equal to 4 million Massachusetts consumers shall pay a tax of 150 thousand dollars per month
73	73	46plus 15 cents per month on the number of Massachusetts consumers the commercial data
74	74	47collector serves.
75	75	48 A commercial data collector that collects data on more than 4 million but less than or
76	76	49equal to 5 million Massachusetts consumers shall pay a tax of 300 thousand dollars per month
77	77	50plus 20 cents per month on the number of Massachusetts consumers the commercial data
78	78	51collector serves. 4 of 9
79	79	52 A commercial data collector that collects data on more than 5 million but less than or
80	80	53equal to 6 million Massachusetts consumers shall pay a tax of 500 thousand dollars per month
81	81	54plus 25 cents per month on the number of Massachusetts consumers the commercial data
82	82	55collector serves.
83	83	56 A commercial data collector that collects data on more than 6 million but less than or
84	84	57equal to 7 million Massachusetts consumers shall pay a tax of 750 thousand dollars per month
85	85	58plus 30 cents per month on the number of Massachusetts consumers the commercial data
86	86	59collector serves.
87	87	60 Section 3. Tax Collection
88	88	61 A commercial data collector that collects data from Massachusetts consumers shall
89	89	62maintain detailed records of the number of Massachusetts consumers that it collects data from
90	90	63per month.
91	91	64 A commercial data collector shall file a monthly statement with the department of
92	92	65revenue that details the number of Massachusetts consumers that the collector collected data
93	93	66from during the previous month and states the amount owed by the collector to the
94	94	67commonwealth for the previous month.
95	95	68 A commercial data collector that fails to submit a monthly statement for the previous
96	96	69month within 10 days of the end of said month shall be assessed a monetary penalty amount of 5
97	97	70per cent of the collector’s assessment for said month. 5 of 9
98	98	71 A commercial data collector that fails to submit a monthly statement for the previous
99	99	72month within 20 days of the end of said month shall be assessed a monetary penalty amount of
100	100	7310 per cent of the collector’s assessment for said month.
101	101	74 (c) The department shall use each monthly statement to assess the amount owed by each
102	102	75commercial data collector under section 2 of this chapter.
103	103	76 (d) Upon written notice of assessment from the department, a commercial data collector
104	104	77shall submit payment to the commonwealth within 30 days of such notice.
105	105	78 (1) A commercial data collector that fails to submit payment within 30 days of written
106	106	79notice of assessment from the department shall be assessed a monetary penalty amount of 5 per
107	107	80cent of the collector’s assessment for said month.
108	108	81 (2) A commercial data collector that fails to submit payment within 60 days of written
109	109	82notice of assessment from the department shall be assessed a monetary penalty amount of 10 per
110	110	83cent of the collector’s assessment for said month.
111	111	84 (e) The department shall partner with any other state agency for the purposes of
112	112	85determining an accurate assessment of tax liability for commercial data collectors pursuant to
113	113	86section 2 of this chapter.
114	114	87 (f) The department shall promulgate any regulations necessary for the collection of tax
115	115	88liability pursuant to this chapter.
116	116	89 Section 4. Authority to Audit 6 of 9
117	117	90 (a) The Commonwealth shall have the right to conduct an audit or review of the records
118	118	91reasonably related to a commercial data collector’s computation of tax liability detailed within
119	119	92section 2 of this chapter within the previous 3 years.
120	120	93 (b) Within 30 days of a written request from the department, a commercial data collector
121	121	94shall provide the department with copies of all records related to the computation of tax liability
122	122	95pursuant to this chapter for Massachusetts consumers served by the commercial data collector.
123	123	96 (c) In the event of an alleged underpayment, the department shall provide the commercial
124	124	97data collector with a written statement indicating the basis for the alleged underpayment. The
125	125	98commercial data collector shall have 30 days from the receipt of a statement regarding an alleged
126	126	99underpayment to provide the department any written objection to the results of any assessment
127	127	100review or audit, including any substantiating documentation. Based on this exchange of
128	128	101information, the department shall make a final determination of the underpayment(s), if any,
129	129	102within 30 days of the commercial data collector’s objection and shall provide the collector with
130	130	103written notice of the determination.
131	131	104 (d) Any additional assessments due to the commonwealth as a result of the review or
132	132	105audit shall be paid to the department by the commercial data collector within 45 days from the
133	133	106date of written notification of the final decision. If the review or audit shows that amounts have
134	134	107been underpaid, then the commercial data collector shall pay the underpaid amount plus
135	135	108monetary fines equal to 10 per cent of the underpayment.
136	136	109 (e) A commercial data collector adversely affected by any final action, or failure to act, of
137	137	110the department that is inconsistent with this section may, within 30 days after such action or 7 of 9
138	138	111failure to act, commence an action in any court of competent jurisdiction within the
139	139	112Commonwealth. The court shall hear and decide such action on an expedited basis.
140	140	113 Section 5. Judicial Remedy
141	141	114 (a) In accordance with section 1 of chapter 12, the Attorney General is authorized to
142	142	115enforce this chapter. The Attorney General may, within 7 years, bring an action to recover any
143	143	116unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant entity,
144	144	117in any court of competent jurisdiction.
145	145	118 (b) Any community media center adversely impacted by the action, or failure to act, of
146	146	119any commercial data collector under this chapter, may, within 7 years, bring an action to recover
147	147	120any unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant
148	148	121entity, in any court of competent jurisdiction.
149	149	122 Section 6. Taxpayers
150	150	123 For the purposes of this chapter, the following shall apply to taxpayers:
151	151	124 There shall be a rebuttable presumption that a consumer whose information on record
152	152	125with or available to a commercial data collector indicates a Massachusetts home address, a
153	153	126Massachusetts mailing address, or an internet protocol address connected with a Massachusetts
154	154	127location is a Massachusetts consumer. The presumption may be rebutted by evidence that a
155	155	128consumer’s primary residence is outside of Massachusetts.
156	156	129 A Massachusetts consumer shall be counted only once in the calculation of the monthly
157	157	130tax imposed on a commercial data collector. 8 of 9
158	158	131 Business entities having common ownership as defined in section 1563(A) of the federal
159	159	132internal revenue code shall be treated as a single taxpayer for the purposes of meeting the
160	160	133definition of commercial data collector under this chapter. The entities constituting the single
161	161	134taxpayer are jointly and severally liable for any tax due.
162	162	135 The single member of a single member limited liability company shall be treated as a
163	163	136consumer under this chapter.
164	164	137 Section 7. Revenue Distribution
165	165	138 90 per cent of amounts collected pursuant to this chapter shall be credited to the Mental
166	166	139Health Resilience fund as established by section 2RRRRR of chapter 29.
167	167	140 10 per cent of amounts collected pursuant to this chapter shall be distributed to
168	168	141community media centers in the commonwealth and further allocated proportionally based upon
169	169	142population.
170	170	143 SECTION 2. Chapter 29 of the General Laws is hereby amended by inserting, after
171	171	144section 2QQQQQ, the following section:-
172	172	145 Section 2RRRRR. Mental Health Resilience Fund
173	173	146 There shall be a mental health resilience fund which shall be administered by the
174	174	147department of mental health with the objective of developing innovative strategies for improving
175	175	148the mental health of all residents within the commonwealth. Notwithstanding any general or
176	176	149special laws to the contrary, the following amounts shall be credited to the fund: 90 per cent of
177	177	150the amounts collected pursuant to chapter 64O, any appropriations, grants, gifts or other monies
178	178	151authorized by the general court or other parties and specifically designated to be credited to the 9 of 9
179	179	152fund, and any income derived from the investment of amounts credited to the fund. All amounts
180	180	153credited to the fund shall be used without further appropriation to accomplish the objective of the
181	181	154fund. Initiatives to accomplish the objective of the fund may include, but shall not be limited to:
182	182	155 Developing innovative strategies to provide recreational alternatives to social media
183	183	156usage for commonwealth residents, particularly youth;
184	184	157 Developing innovative strategies to increase the number of mental health providers in the
185	185	158commonwealth and achieving the goal of mental health provider availability for all
186	186	159commonwealth residents;
187	187	160 Mental health staff providing supports to summer camps and afterschool programs; and
188	188	161 Providing in-home therapy to children in crisis.
189	189	162 No expenditure from the fund shall cause the fund to be in deficiency at the close of a
190	190	163fiscal year. Monies deposited in the fund that are unexpended at the end of the fiscal year shall
191	191	164not revert to the General Fund and shall be available for expenditure in the subsequent year. The
192	192	165fund shall be exempt from the indirect and fringe benefits that would otherwise be assessed
193	193	166pursuant to this chapter.
194	194	167 SECTION 3. This act shall take effect upon its passage.