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