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HOUSE DOCKET, NO. 199 FILED ON: 1/7/2025
HOUSE . . . . . . . . . . . . . . . No. 3152
The Commonwealth of Massachusetts
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PRESENTED BY:
Hannah Kane
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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 to eliminate contingency fee auditors.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Hannah Kane11th Worcester1/7/2025 1 of 3
HOUSE DOCKET, NO. 199 FILED ON: 1/7/2025
HOUSE . . . . . . . . . . . . . . . No. 3152
By Representative Kane of Shrewsbury, a petition (accompanied by bill, House, No. 3152) of
Hannah Kane for legislation to eliminate contingency fee auditors. Revenue.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act to eliminate contingency fee auditors.
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. Notwithstanding any special or general law to the contrary, in determining
2the liability of any taxpayer for a tax, the department of revenue, the state treasurer nor any state
3agency or constitutional officer shall contract with or employ any person, agent or firm who is
4compensated in whole or in part by the state for services rendered on a contingent basis or any
5other basis related to the amount of tax, interest, or penalty assessed against or collected from the
6taxpayer.
7 SECTION 2. Notwithstanding any special or general law to the contrary, the department
8of revenue, the state treasurer or constitutional officer and any other state agency, in any contract
9with or employment of any person, agent or firm to assist a local municipal official in the
10performance of the local municipal assessor’s duties, may not compensate such person or firm, in
11whole or in part, on a contingent fee basis or any other similar method that may impair the
12assessor’s independence or the perception of the assessor’s independence by the public. 2 of 3
13 SECTION 3. Chapter 14 of the General Laws is hereby amended by inserting, after
14section 3A, the following new section:-
15 Section 3B. Notwithstanding any special or general law to the contrary, the department of
16revenue, the state treasurer or constitutional officer and any other state agency are expressly
17prohibited from contracting with or employing any person, agent or firm on a contingent fee
18basis or any other similar method that may impair an auditor’s independence.
19 SECTION 4. Notwithstanding any special or general law to the contrary, the department
20of revenue, the state treasurer and any other state agency or constitutional officer may not
21contract with or employ a tax expert for the purposes of determining the tax liability of any
22taxpayer for a tax or to defend the state department of revenue’s or state treasurer’s position
23during the course of a dispute, mediation or litigation a person, agent or firm may not be
24compensated, in whole or in part, on a contingent fee basis or any other similar method that may
25impair the assessor’s independence or the perception of the assessor’s independence by the
26public.
27 SECTION 5. Any regulations promulgated by any state agency or constitutional officer,
28including the state treasurer and the department of revenue, authorizing the use of contingent
29based contracts shall be repealed.
30 SECTION 6. Section 12 of Chapter 200A of the General Laws is hereby amended by
31inserting, after subsection (i), a new subsection:-
32 (j) Notwithstanding any special or general law to the contrary, the department of revenue,
33the state treasurer, a constitutional officer, and any other state agency are expressly prohibited 3 of 3
34from contracting with or employing any person, agent or firm on a contingent fee basis or any
35other similar method that may impair an auditor’s independence.
36 SECTION 7. This act becomes effective July 1, 2026, and applies to audits,
37determinations of liability, assessments, and services of a tax expert contracted for on or after
38that date. State agencies and constitutional officers shall not renew contingency fee based
39contracts for these services after July 1, 2026. For contingency fee based contracts entered into
40prior to July 1, 2026, state agencies and constitutional officers shall not assign further audits on a
41contingency fee basis to an auditing firm under such contracts that meet all the following
42conditions: (i) the contract would have been prohibited under this act had the contract been
43entered into on or after July 1, 2026, and (ii) the contract allows the assignment of audits on a
44discretionary basis by the state agency or constitutional officer.”