Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4116 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 4535 FILED ON: 8/18/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 4116
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Dylan A. Fernandes and Julian Cyr
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 Nantucket to issue pension obligation bonds or notes.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Dylan A. FernandesBarnstable, Dukes and Nantucket8/16/2023Julian CyrCape and Islands8/18/2023 1 of 4
16	16	HOUSE DOCKET, NO. 4535 FILED ON: 8/18/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 4116
18	18	By Representative Fernandes of Falmouth and Senator Cyr, a joint petition (subject to Joint Rule
19	19	12) of Dylan A. Fernandes and Julian Cyr (by vote of the town) that the town of Nantucket be
20	20	authorized to issue pension obligation bonds or notes. Public Service. [Local Approval
21	21	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 Nantucket to issue pension obligation bonds or notes.
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. The town of Nantucket may issue, at one time or from time to time, bonds
31	31	2or notes for the purpose of funding the portion of the unfunded pension liability of the Barnstable
32	32	3County retirement association allocable to the town of Nantucket, Nantucket County and the
33	33	4Nantucket Islands Land Bank. The proceeds of any such issuance, other than amounts to be
34	34	5applied to issuance costs and expenses, shall be paid by the town of Nantucket to the Barnstable
35	35	6County retirement association, shall be allocated solely to reduce the unfunded pension liability
36	36	7allocable to the town of Nantucket, Nantucket County and the Nantucket Islands Land Bank to
37	37	8which the bonds or notes relate, shall be invested in any investments which are permitted under
38	38	9chapter 32 of the General Laws and shall otherwise be held and expended on behalf of the town
39	39	10by the Barnstable County retirement association in accordance with law. The terms of any such
40	40	11bonds or notes shall not exceed 30 years from the date of issuance and the amount of any such
41	41	12bonds or notes shall be outside the limit of indebtedness prescribed in section 10 of chapter 44 of 2 of 4
42	42	13the General Laws. Upon the authorization of the issuance of pension obligation bonds by the
43	43	14town, the town shall submit the vote and a plan demonstrating how the town will finance and
44	44	15allocate the debt service associated with the bonds or notes to the executive office for
45	45	16administration and finance, and no bonds or notes authorized to be issued by this act shall be
46	46	17issued until the secretary for administration and finance has approved the plan and the issuance
47	47	18of such bonds or notes. Except as otherwise provided in this act, such bonds or notes shall be
48	48	19subject to said chapter 44.
49	49	20 SECTION 2. The aggregate principal amount of the bonds or notes issued during any
50	50	21calendar year under authority of this act shall not be greater than the amount sufficient to
51	51	22extinguish the unfunded pension liability of the Barnstable County retirement association
52	52	23allocable to the town of Nantucket, Nantucket County and the Nantucket Islands Land Bank as
53	53	24of a particular date as determined in accordance with this section, plus an amount to provide for
54	54	25issuance costs and other expenses necessary or incidental thereto. The Barnstable County
55	55	26retirement association shall first determine the amount sufficient to extinguish the unfunded
56	56	27pension liability of the town of Nantucket, Nantucket County and the Nantucket Islands Land
57	57	28Bank in accordance with the report of a nationally recognized independent consulting firm,
58	58	29which may be the consulting actuary generally retained by the Barnstable County retirement
59	59	30association, and which amount shall be approved by the public employee retirement
60	60	31administration commission. The report shall also set forth the present value savings to the town
61	61	32reasonably expected to be achieved as a result of the issuance of such bonds or notes.
62	62	33 SECTION 3. The maturities of such bonds or notes shall be scheduled so that the annual
63	63	34combined payments of principal and interest for each issue shall be as nearly equal as practicable
64	64	35in the opinion of the town Treasurer, in any manner that shall provide for a more rapid 3 of 4
65	65	36amortization of principal, or in accordance with any other manner consistent with the town’s
66	66	37approved funding schedule, as the secretary for administration and finance shall approve. In
67	67	38granting the approval, the secretary may require the establishment of a reserve to be created from
68	68	39a portion of the amount of the annual savings used to calculate the present value savings. Any
69	69	40such reserve shall be held and controlled by the town and shall be separate from any other
70	70	41reserve or fund of the town allowed or required by statute. The secretary shall establish a method
71	71	42to calculate both the required amount of annual contribution to the reserve and the minimum
72	72	43value to be maintained in the reserve and shall prescribe conditions for expenditure from the
73	73	44reserve, including its use if necessary to prevent or limit any future unfunded actuarial pension
74	74	45liability, and the conditions under which all or a portion of the funds in the reserve may be
75	75	46available for unrestricted purposes in which case such funds or portions thereof shall be
76	76	47transferred to the town treasury. Any funds in the reserve shall be trust funds within the meaning
77	77	48of section 54 of chapter 44 of the General Laws and, expected as otherwise provided in this act,
78	78	49shall be subject to the provisions of said section 54.
79	79	50 SECTION 4. If the unfunded pension liability to be funded with the proceeds of an issue
80	80	51of bonds or notes issued under this act relates in part to employees of Nantucket County or the
81	81	52Nantucket Islands Land Bank, each of such entities shall be responsible for reimbursing the town
82	82	53of Nantucket for such proportion of the annual debt service expense paid by the town of
83	83	54Nantucket for bonds or notes issued hereunder as is equal to the proportion of the total unfunded
84	84	55pension liability to be funded with the proceeds of the bonds or notes as relates to each of such
85	85	56entities. Notwithstanding any general or special law to the contrary, the Public Employee
86	86	57Retirement Administration Commission shall increase the annual amount to be certified under
87	87	58section 22 of the General Laws as the amount necessary to be paid by Nantucket County and the 4 of 4
88	88	59Nantucket County Land Bank as its proportionate share of the annual debt service expense as
89	89	60determined herein. The town of Nantucket shall have the same legal rights and authority as the
90	90	61retirement board of the Barnstable County retirement association to collect any amount so
91	91	62assessed to Nantucket County or the Nantucket Islands Land Bank.
92	92	63 SECTION 5. Notwithstanding chapter 70 of the General Laws or any other general or
93	93	64special law to the contrary, the portion of the annual debt service paid by the town of Nantucket
94	94	65for bonds or notes issued under this act applicable to school department personnel who are
95	95	66members of the Barnstable County retirement association shall be included in the computation of
96	96	67net school spending for the purposes of said chapter 70 or any other law.
97	97	68 SECTION 6. This act shall take effect upon its passage.