Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H3704 Compare Versions

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2	2	HOUSE DOCKET, NO. 2481 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 3704
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Michelle L. Ciccolo and Michael J. Barrett
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 authorizing the town of Lexington to finance expanded transit services.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Michelle L. Ciccolo15th Middlesex1/19/2023Michael J. BarrettThird Middlesex1/19/2023 1 of 11
16	16	HOUSE DOCKET, NO. 2481 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 3704
18	18	By Representative Ciccolo of Lexington and Senator Barrett, a joint petition (accompanied by
19	19	bill, House, No. 3704) of Michelle L. Ciccolo and Michael J. Barrett (by vote of the town) that
20	20	the town of Lexington be authorized to finance expanded transit services. Transportation.
21	21	[Local Approval Received.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act authorizing the town of Lexington to finance expanded transit services.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Definitions. For the purposes of this act, the following words shall, unless
31	31	2the context clearly requires otherwise, have the following meanings:
32	32	3 “Fee”, a payment for services or improvements within a TID.
33	33	4 “Lead municipality”, the municipality exercising managerial control over the TID, as
34	34	5designated by the group of municipalities participating in the establishment of a TID, provided
35	35	6that each participating municipality be independently authorized to establish a TID.
36	36	7 “Municipal executive body”, the mayor or city manager in a city or the Select Board,
37	37	8town manager, or town administrator in a town.
38	38	9 “Municipal legislative body”, the city council or board of alderman in a city or the town
39	39	10meeting in a town. 2 of 11
40	40	11 “Partners”, the businesses, entities, municipalities, districts, regional entities, and state
41	41	12agencies participating in a TID.
42	42	13 “Program plan”, a statement of means and objectives for providing the capital,
43	43	14operational facilities, and resources to improve transit, transportation, and quality of life within a
44	44	15TID.
45	45	16 “TID”, a transit improvement district formed pursuant to this chapter, which is a
46	46	17specified area within Lexington that shall consist of 2 or more parcels or lots of land, whether or
47	47	18not contiguous, or 2 or more buildings or structures, whether or not adjacent, on 2 or more
48	48	19parcels of land; provided, that the total area of all TIDs within Lexington shall not exceed 25 per
49	49	20cent of the total area of Lexington.
50	50	21 “Transit improvement program” a transit project that implements transit improvements
51	51	22upon existing transportation services within a TID.
52	52	23 SECTION 2. Program Plan & TID Adoption Requirements
53	53	24 (a) Prior to establishing a TID, Lexington shall develop a program plan describing said
54	54	25TID’s means and objectives. At a minimum, the program plan shall include:
55	55	26 (1) a financial plan that describes the costs and sources of revenue required to establish
56	56	27transit improvement programs within a TID, including cost estimates for the transit improvement
57	57	28programs, the amount of indebtedness, if any, to be incurred, and any sources of anticipated
58	58	29capital; provided, that the financial plan’s cost estimates may include any of the following types
59	59	30of costs: (i) administrative costs, including any reasonable charges for the time spent by town
60	60	31employees in connection with the implementation of a transit improvement program and for 3 of 11
61	61	32committing the assessment, collections of fees and payment enforcement; (ii) capital costs,
62	62	33including the costs of the construction of public works or improvements, new buildings,
63	63	34structures and fixtures, the demolition, alteration, remodeling, repair or reconstruction of existing
64	64	35buildings, structures or fixtures, the acquisition of equipment, or the grading and clearing of
65	65	36land; (iii) discretionary costs, including any payments made by a municipal entity that, in its
66	66	37discretion, are necessary for the creation of TID or the implementation of a transit improvement
67	67	38program; (iv) financing costs, including all interest paid to holders of evidences of indebtedness
68	68	39issued to pay for transit improvement program costs and any premium paid over the principal
69	69	40amount of that indebtedness because of the redemption of the obligations before maturity; (v)
70	70	41information costs, including any costs associated with promoting and advertising the transit
71	71	42improvement programs, providing public safety information, disseminating transit schedules, or
72	72	43providing other forms of information necessary to the transit operations of a TID; (vi)
73	73	44management costs, including costs incurred by establishing and maintaining TID administrative
74	74	45and managerial support and other services, as necessary or appropriate, to provide transit
75	75	46improvement programs; or (vii) professional service costs, including any costs incurred for
76	76	47consultants, planning, engineering, architectural, or legal advice, or other services related to
77	77	48providing transit improvement programs;
78	78	49 (2) a list of the necessary capital and operational resources to be procured and public
79	79	50facilities, if any, to be constructed;
80	80	51 (3) identification of the use, if any, of private property for transit improvement programs;
81	81	52 (4) identification of the municipal department responsible for administering the transit
82	82	53improvement programs; provided, that for a program involving a TID consisting of more than 1 4 of 11
83	83	54municipality, the program plan shall designate a lead municipality responsible for managing the
84	84	55program;
85	85	56 (5) a proposed management and operational plan regarding transit service delivery within
86	86	57the TID, which may include contracting for transit service management with an existing regional
87	87	58transit authority, a transportation management association, or a private service entity;
88	88	59 (6) the duration of any transit improvement programs, which shall be a minimum of 3
89	89	60years and shall not exceed 6 years after the transit service start date;
90	90	61 (7) a list of the entities participating as partners in a transit improvement program;
91	91	62 (8) the means for setting policy and making decisions related to the transit improvement
92	92	63program;
93	93	64 (9) the target start date for the collection of funds and initiation of transit service within
94	94	65the TID;
95	95	66 (10) a careful consideration of how the TID can fill public transportation gaps not
96	96	67currently provided by publicly accessible local, regional, or state transit services;
97	97	68 (11) a proposal for communication and collaboration between Lexington, any other
98	98	69municipality involved in establishing the TID, any regional transit authorities and transportation
99	99	70management associations with relevant jurisdiction, the surrounding business community and
100	100	71housing providers, and the Massachusetts department of transportation.
101	101	72 (b) The Select Board shall hold a public meeting to consider the merits of the program
102	102	73plan, prior to its submittal for adoption. 5 of 11
103	103	74 (c) A separate program plan shall be adopted for each proposed TID. The program plan
104	104	75shall be adopted at the same time as the TID, as part of the TID adoption proceedings pursuant to
105	105	76subsection (d) of this section or, if at a different time, in the same manner as the adoption of the
106	106	77TID, with the same requirements of subsection (d). Once adopted, a program plan shall only be
107	107	78substantially altered or amended after meeting the same requirements for adoption.
108	108	79 (d) Lexington may, after the development of a program plan and a public meeting on the
109	109	80merits of said plan pursuant to subsections (a) and (b), establish a TID, as defined in section 1,
110	110	81within the boundaries of Lexington by:
111	111	82 (1) a majority vote of Town Meeting; provided, that Town Meeting finds that the
112	112	83establishment of the TID is in the public interest; and
113	113	84 (2) a vote of the property owners subject to the fee provided for in section 5 within said
114	114	85TID, where a minimum of 51 percent of property owners shall be required to vote in the
115	115	86affirmative and said voters casting ballots in the affirmative shall constitute at least 51 percent of
116	116	87the total assessed value of land of fee-paying properties in said TID; provided, that ballots for
117	117	88such vote shall be sent by certified mail to each property owner in accordance with the mailing
118	118	89address officially on file with the municipal assessor.
119	119	90 Nothing in this section shall prevent a TID from including more than one municipality;
120	120	91provided, however, that each participating municipality shall be duly authorized by special
121	121	92legislation to establish a TID. If any of the municipalities considering the establishment of a TID
122	122	93fail to meet the requirements under paragraphs (1) and (2) of this subsection, the TID shall not be
123	123	94established. Further, nothing in this section shall preclude Lexington from entering into an
124	124	95agreement pursuant to section 4A of chapter 40 with any other municipality to provide 6 of 11
125	125	96transportation-related services, whether or not such municipality is authorized to establish or
126	126	97participate in a TID.
127	127	98 (e) Any vote by Town Meeting under paragraph (1) of subsection (d) of this section shall
128	128	99include:
129	129	100 (1) a declaration that management authority over a TID rests with the Select Board or,
130	130	101where more than one municipality is establishing a TID, the municipal executive body of the
131	131	102lead municipality;
132	132	103 (2) a designation of the municipal department under whose authority funds may be
133	133	104expended under section 5; provided, that said designation shall reference the applicable program
134	134	105plan and require that all funds be spent in a manner consistent with said plan;
135	135	106 (3) a statement describing the methodology used for the calculation of any proposed
136	136	107transit improvement fees pursuant to section 5;
137	137	108 (4) a designation of the source of the municipal matching funds and an authorization for
138	138	109the appropriation of said funds.; and
139	139	110 (5) a designation, if the transit improvement program is in a TID involving more than 1
140	140	111municipality, of which municipality shall be the lead municipality for the purposes of managing
141	141	112said transit improvement program.
142	142	113 SECTION 3. At any time after the establishment of a TID pursuant to section 2, the
143	143	114district boundaries may be amended by an affirmative vote of Town Meeting or, if the TID
144	144	115involves more than one municipality, an affirmative vote of the municipal legislative body of
145	145	116each participating municipality. 7 of 11
146	146	117 SECTION 4. The rights and powers of a TID shall include: developing, managing, and
147	147	118maintaining transit improvement programs; establishing and collecting fees pursuant to section
148	148	1195; leasing, owning, acquiring, or optioning real property; undertaking collections and
149	149	120enforcement of fines associated with the collection of fees; providing planning and design
150	150	121services; formulating a fee structure; accumulating interest; incurring costs or indebtedness;
151	151	122entering into contracts; suing and being sued; employing legal and accounting services;
152	152	123undertaking planning, feasibility and market analyses; developing common marketing and
153	153	124promotional activities; or engaging in other supplemental services or programs that would further
154	154	125the purposes of this chapter.
155	155	126 SECTION 5. (a) A transit improvement fee may be collected and used solely to fund
156	156	127items to further the goals identified and approved in a TID program plan and spent in accordance
157	157	128with the provisions of this act. The transit improvement fee shall be determined by a formula
158	158	129consisting of any combination of the following:
159	159	130 (1) different fee levels for varying classifications of real property;
160	160	131 (2) a fee based on a percentage of the assessed value provided that the fee cannot exceed
161	161	1325 percent of the existing annual tax assessment;
162	162	133 (3) a fee per employee;
163	163	134 (4) a fee per parking space on the site;
164	164	135 (5) a fee per single occupancy vehicle (SOV) trip generated to the site under its current or
165	165	136anticipated use;
166	166	137 (6) a fee per residential unit within a multifamily parcel; 8 of 11
167	167	138 (7) a fee for service as may be designed to accommodate a specific user or entity; or
168	168	139 (8) any other formula that meets the objectives of the TID.
169	169	140 (b) A TID may, in the establishment of a fee structure, elect to exempt any or all of the
170	170	141following property types:
171	171	142 (1) residential dwellings, whether or not they are owner occupied, provided they do not
172	172	143exceed 3 residential units in the same structure;
173	173	144 (2) small commercial properties of up to 5,000 gross square feet per building; or
174	174	145 (3) agricultural properties.
175	175	146 (c) The collector-treasurer of the Town of Lexington, is hereby authorized to collect
176	176	147transit improvement fees and disburse the funds to the duly authorized and designated municipal
177	177	148department identified under subsection (c) of section 2. If the TID contains more than one
178	178	149municipality, it shall be the responsibility of the collector-treasurer in each municipality to
179	179	150collect the fee and remit it to the lead community. The collector-treasurer of each participating
180	180	151municipality is authorized to levy fines for non-payment of fees, and if necessary, to pursue
181	181	152appropriate legal action for said enforcement. The collector-treasurer shall disburse revenues to
182	182	153the designated municipal department within 60 days of the collection of transit improvement
183	183	154fees, without the need for further appropriation by Town Meeting.
184	184	155 (d) Following the establishment of a TID, all fees billed by or on behalf of a TID and
185	185	156unpaid by the obligor after 60 days from the date of billing shall become a lien in favor of
186	186	157Lexington on the real property of the obligor in an amount sufficient to satisfy all unpaid fees,
187	187	158which shall have priority over all other liens except municipal liens and mortgages of record 9 of 11
188	188	159prior to the recording of a notice of lien, if notice of the lien is duly recorded by Lexington in the
189	189	160appropriate registry of deeds or land court registry district.
190	190	161 (e) Notwithstanding any general or special law to the contrary, transit improvement fees
191	191	162collected by Lexington under this act shall not be deemed to be part of Lexington’s regular levy
192	192	163collections and shall not be subject to the requirements of section 21C of chapter 59.
193	193	164 SECTION 6. (a) A property owner subject to an exemption pursuant to clause Third or
194	194	165clause Eleventh of section 5 of chapter 59 shall not be subject to the fee provided for in section
195	195	1665; provided however, that such property owner shall have all the rights and privileges as any
196	196	167other property owner pursuant to this chapter if such property owner participates in the voluntary
197	197	168payment program set forth in subsection (b).
198	198	169 (b) A property owner of property located within a TID and subject to an exemption in
199	199	170clause Third or clause Eleventh of section 5 of chapter 59 may enter into an agreement with the
200	200	171Select Board for voluntary payments to Lexington for the purposes of this chapter or, if the TID
201	201	172involves more than one municipality, the municipal executive body for the lead municipality.
202	202	173 The TID shall establish the amount of and terms of such payment agreement based on
203	203	174factors that include but are not limited to: (i) the assessed value of the real property; (ii)
204	204	175community benefits provided by the property owner such as the property owner’s contribution to
205	205	176transportation goals and programs of the TID; (iii) the total assets of the property owner,
206	206	177including but not limited to: land, buildings and equipment; and (iv) total annual revenues.
207	207	178 SECTION 7. Lexington, or, if the TID involves more than one municipality, the group of
208	208	179municipalities participating in the establishment of a TID shall provide a minimum of 20 percent
209	209	180of the TID’s program costs from funds not generated by the fees authorized under section 5. The 10 of 11
210	210	181Massachusetts department of transportation shall provide 25 percent in matching funds, subject
211	211	182to appropriation. Users of the new transit improvement program shall be required to pay a fee for
212	212	183service, which shall, in the aggregate, be no more than 5 percent of the total program costs.
213	213	184Property owners located within a TID shall provide a minimum of 25 percent of the transit
214	214	185improvement program costs.
215	215	186 SECTION 8. The Select Board or, if the TID involves more than one municipality, the
216	216	187municipal executive body of the lead municipality, shall conduct a review of the program plan 12
217	217	188months prior to the completion of the duration of the transit improvement programs within a TID
218	218	189to determine if the program is desired to be continued, and if so, complete a program assessment
219	219	190that includes a review of the anticipated costs to continue said service. If a continuation is
220	220	191sought, a public hearing shall be conducted on the TID’s desire to continue service and a renewal
221	221	192of the authorization shall be approved by Town Meeting in a manner consistent with the
222	222	193authorization set forth in section 2.
223	223	194 SECTION 9. A TID may be dissolved by petition to the Select Board and a subsequent
224	224	195decision by Town Meeting to authorize dissolution, or a TID may be dissolved upon request by
225	225	196the Town Manager for a dissolution vote by Town Meeting. If the TID involves more than one
226	226	197municipality, said petition or request must be made in the lead municipality.
227	227	198 In order to be considered by Town Meeting, a petition to dissolve a TID shall contain the
228	228	199signatures of the fee-paying property owners whose properties represent at least 51 percent of the
229	229	200total assessed value within the TID and at least 51 percent of the fee-paying property owners
230	230	201within the TID. 11 of 11
231	231	202 The Select Board shall hold a public hearing within 30 days of receipt of a completed
232	232	203dissolution petition.
233	233	204 Following the public hearing, the Select Board shall then refer the matter to Town
234	234	205Meeting which by the vote of a majority may then determine the TID dissolved; provided,
235	235	206however, that no TID shall be dissolved until it has satisfied or paid in full all of its outstanding
236	236	207indebtedness, obligations, and liabilities, or until funds are on deposit and available therefor, or
237	237	208until a repayment schedule has been formulated and municipally approved therefor. The TID
238	238	209shall be prohibited from incurring any new or increased financial obligations after its dissolution.
239	239	210 Upon the dissolution of a TID, any remaining revenues derived from the sale of assets
240	240	211acquired with fees collected shall be refunded to the property owners in the TID in which fees
241	241	212were charged by applying the same formula used to calculate the fee in the fiscal year in which
242	242	213the TID is dissolved.
243	243	214 In the event Lexington desires to withdraw from a TID involving more than one
244	244	215municipality, it may, by petition containing the signatures of the fee-paying owners whose
245	245	216properties represent at least 51 percent of the assessed value within the TID and at least 51
246	246	217percent of the fee-paying property owners within the district, seek a dissolution vote from Town
247	247	218Meeting. If Lexington is not the lead municipality, upon such approval from Town Meeting,
248	248	219Lexington shall then also receive an affirmative vote of the lead municipality’s legislative body,
249	249	220in order to effectuate the withdrawal.