Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H3801 Compare Versions

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

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2	2	HOUSE DOCKET, NO. 3785 FILED ON: 1/20/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 3801
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Margaret R. Scarsdale
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 establishing a municipal building assistance program and building authority.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Margaret R. Scarsdale1st Middlesex1/20/2023Edward J. KennedyFirst Middlesex4/20/2023 1 of 6
16	16	HOUSE DOCKET, NO. 3785 FILED ON: 1/20/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 3801
18	18	By Representative Scarsdale of Pepperell, a petition (subject to Joint Rule 9) of Margaret R.
19	19	Scarsdale for legislation to establish a municipal building assistance program and building
20	20	authority. Municipalities and Regional Government.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act establishing a municipal building assistance program and building authority.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 The General Laws are hereby amended by inserting after chapter 40W the following
30	30	2chapter:-
31	31	3 CHAPTER 40X
32	32	4 SECTION 1. Whereas the costs of municipal building construction are increasing at an
33	33	5unsustainable rate and local governments need flexibility in municipal building assistance to
34	34	6ensure that local needs for municipal facility space, downtown development, open space, and
35	35	7community space are met; and to promote the thoughtful planning and construction of municipal
36	36	8facility space in order to ensure safe and adequate plant facilities for the public, and to assist
37	37	9towns in meeting the cost thereof, there is hereby established a municipal building assistance
38	38	10program. It is in the best interests of the Commonwealth and its citizens to create an authority to
39	39	11achieve the objectives of effective management and planning of the commonwealth's
40	40	12investments in municipal building assets, ensuring the health, safety, security, and well-being of 2 of 6
41	41	13residents and staff, easing and preventing overcrowding, maintaining good repair, efficient and
42	42	14economical construction and maintenance, financial sustainability of the municipal building
43	43	15assistance program, thoughtful community development, smart growth, and accessibility.
44	44	16 SECTION 1A. (a) There is hereby created a body politic and corporate and a public
45	45	17instrumentality to be known as the Massachusetts Municipal Building Authority, which shall be
46	46	18an independent public authority not subject to the supervision and control of any other executive
47	47	19office, department, commission, board, bureau, agency or political subdivision of the
48	48	20commonwealth except as specifically provided in any general or special law. The exercise by the
49	49	21authority of the powers conferred by this chapter shall be considered to be the performance of an
50	50	22essential public function.
51	51	23 (b) The authority shall consist of the state treasurer, who shall serve as chairperson, the
52	52	24secretary of administration and finance, a representative of the Massachusetts Municipal
53	53	25Association, and 4 additional members appointed by the state treasurer, 2 of whom shall have
54	54	26practical experience in public building construction, or architecture and design, and 2 of whom
55	55	27shall be persons in the field of municipal management with demonstrated knowledge of
56	56	28Massachusetts facility needs and other relevant federal and state building standards, each of
57	57	29whom shall serve a term of 2 years; but, a person appointed to fill a vacancy shall serve only for
58	58	30the unexpired term. An appointed member of the authority shall be eligible for reappointment.
59	59	31The authority shall annually elect 1 of its members to serve as vice-chairperson. Each member of
60	60	32the authority serving ex officio may appoint a designee pursuant to section 6A of chapter 30.
61	61	33 (c) Four members of the authority shall constitute a quorum, and the affirmative vote of 4
62	62	34members of the authority shall be necessary and sufficient for any action taken by the authority. 3 of 6
63	63	35No vacancy in the membership of the authority shall impair the right of a quorum to exercise all
64	64	36the rights and duties of the authority. Members shall serve without pay but shall be reimbursed
65	65	37for actual expenses necessarily incurred in the performance of their duties. The chairperson of
66	66	38the authority shall report to the governor and to the general court no less than annually, to assist
67	67	39the executive and legislative branches in coordinating community development and fiscal
68	68	40policies of the Commonwealth.
69	69	41 (d) Any action of the authority may take effect immediately and need not be published or
70	70	42posted unless otherwise provided by law. Meetings of the authority shall be subject to section
71	71	4311A1/2 of chapter 30A; but, said section 11A1/2 shall not apply to any meeting of members of
72	72	44the authority serving ex officio in the exercise of their duties as officers of the Commonwealth so
73	73	45long as no matters relating to the official business of the authority are discussed and decided at
74	74	46the meeting. The authority shall be subject to all other provisions of said chapter 30A, and
75	75	47records pertaining to the administration of the authority shall be subject to section 42 of chapter
76	76	4830 and section 10 of chapter 66. All monies of the authority shall be considered to be public
77	77	49funds for purposes of chapter 12A. The operations of the authority shall be subject to chapter
78	78	50268A and chapter 268B and all other operational or administrative standards or requirements to
79	79	51the same extent as the office of the state treasurer.
80	80	52 SECTION 2. Chapter 10 of the General Laws is hereby amended by inserting after
81	81	53section 35SSS, the following section:-
82	82	54 Section 35TTT. (a) As used in this section, the following words shall, unless the context
83	83	55requires otherwise, have the following meanings:-
84	84	56 "Authority", the Massachusetts Municipal Building Authority. 4 of 6
85	85	57 "Dedicated sales tax revenue amount", all monies received by the Commonwealth equal
86	86	58to 0.5 percent of the receipts from sales, as defined by chapter 64H, and 0.5 percent of the sales
87	87	59price of purchases, as defined by chapter 64I, from that portion of the taxes imposed under said
88	88	60chapters 64H and 64I as excises upon the sale and use at retail of tangible property or of services,
89	89	61and upon the storage, use or other consumption of tangible property or of services, including
90	90	62interest thereon or penalties, but not including any portion of the taxes that constitute special
91	91	63receipts within the meaning of subsection (b 1/2) of section 10 of chapter 152 of the acts of 1997
92	92	64or within the meaning of subsection (b 1/2) of said section 10 of said chapter 152 or any portion
93	93	65of the taxes imposed on the sale of meals as defined in paragraph (h) of section 6 of said chapter
94	94	6664H.
95	95	67 "Receipts from sales", gross receipts from nonexempt sales, less amounts abated or
96	96	68reimbursed.
97	97	69 "Sales price of purchases", sales price of nonexempt purchases, less amounts abated or
98	98	70reimbursed.
99	99	71 (b) There shall be established on the books of the commonwealth a separate fund, to be
100	100	72known as the Municipal Building Modernization and Reconstruction Trust Fund. There shall be
101	101	73credited to the fund the dedicated sales tax revenue amount. Annual receipts into the fund on
102	102	74account of any fiscal year shall be considered to meet the full obligation of the commonwealth to
103	103	75the authority for such fiscal year.
104	104	76 (c) Amounts in the fund shall be held by the state treasurer or his designee, as trustee and
105	105	77not on account of the commonwealth, exclusively for the purposes of the authority, and the state
106	106	78treasurer shall disburse amounts in the fund to the authority, without further appropriation, upon 5 of 6
107	107	79the request from time to time of the executive director of the authority. All amounts in the fund,
108	108	80including investment earnings, shall be available for expenditure by the authority for any lawful
109	109	81purpose, including without limitation payment of debt service on debt obligations issued by the
110	110	82authority, and may be pledged to secure debt of the authority in such manner and according to
111	111	83such priority as the authority may determine.
112	112	84 (d) The authority shall certify annually to the treasurer as trustee with copies provided to
113	113	85the clerks of the house and senate and to the house and senate committees on ways and means
114	114	86that it has made provision in its annual budget and its capital plan under section 17 of chapter
115	115	8770B for sufficient amounts to be available to meet debt service payments or other payments due
116	116	88under financing obligations, including, without limitation, leases or grant obligations.
117	117	89 (e) Subject to applicable restrictions contained in any bond resolution, trust or security
118	118	90agreement or credit enhancement agreement, surety bond, or insurance policy related to
119	119	91indebtedness incurred by the authority, including without limitation coverage requirements, if the
120	120	92authority shall determine that the balance of the fund exceeds the amount necessary to achieve
121	121	93the purposes of the authority, including, without limitation, to meet debt service payments, lease
122	122	94payments and grant obligations, the authority may transfer the excess amount to the
123	123	95Commonwealth.
124	124	96 (f) In order to increase the marketability of any bonds or notes of the trust which may be
125	125	97secured by or payable from amounts held in the fund, the sums to be credited to the fund are
126	126	98hereby impressed with a trust for the benefit of the trust and the holders from time to time of the
127	127	99bonds or notes, and in consideration of the acceptance of payment for the bonds or notes, the
128	128	100Commonwealth covenants with the purchasers and all subsequent holders and transferees of the 6 of 6
129	129	101bonds or notes that while the bond or note shall remain outstanding, and so long as the principal
130	130	102of or interest on the bond or note shall remain unpaid, the sums to be credited to the fund shall
131	131	103not be diverted from the control of the trust and, so long as the sums are necessary, as determined
132	132	104by the authority in accordance with any applicable bond resolution, trust or security agreement or
133	133	105credit enhancement agreement, surety bond or insurance policy related to indebtedness incurred
134	134	106by the trust, for the purposes for which they have been pledged, the rates of the excises imposed
135	135	107by said chapters 64H and 64I shall not be reduced below the rates prescribed by this section.