1 of 1
HOUSE DOCKET, NO. 588 FILED ON: 1/10/2025
HOUSE . . . . . . . . . . . . . . . No. 2333
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Margaret R. Scarsdale
_________________
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 establishing a municipal building assistance program and building authority.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Margaret R. Scarsdale1st Middlesex1/10/2025Lindsay N. Sabadosa1st Hampshire1/15/2025David T. Vieira3rd Barnstable1/24/2025Steven George Xiarhos5th Barnstable1/27/2025 1 of 6
HOUSE DOCKET, NO. 588 FILED ON: 1/10/2025
HOUSE . . . . . . . . . . . . . . . No. 2333
By Representative Scarsdale of Pepperell, a petition (accompanied by bill, House, No. 2333) of
Margaret R. Scarsdale and others for legislation to establish a municipal building assistance
program and building authority. Municipalities and Regional Government.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 3801 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act establishing a municipal building assistance program and building authority.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 The General Laws are hereby amended by inserting after chapter 40W the following
2chapter:-
3 CHAPTER 40X
4 SECTION 1. Whereas the costs of municipal building construction are increasing at an
5unsustainable rate and local governments need flexibility in municipal building assistance to
6ensure that local needs for municipal facility space, downtown development, open space, and
7community space are met; and to promote the thoughtful planning and construction of municipal
8facility space in order to ensure safe and adequate plant facilities for the public, and to assist
9towns in meeting the cost thereof, there is hereby established a municipal building assistance 2 of 6
10program. It is in the best interests of the Commonwealth and its citizens to create an authority to
11achieve the objectives of effective management and planning of the commonwealth's
12investments in municipal building assets, ensuring the health, safety, security, and well-being of
13residents and staff, easing and preventing overcrowding, maintaining good repair, efficient and
14economical construction and maintenance, financial sustainability of the municipal building
15assistance program, thoughtful community development, smart growth, and accessibility.
16 SECTION 1A. (a) There is hereby created a body politic and corporate and a public
17instrumentality to be known as the Massachusetts Municipal Building Authority, which shall be
18an independent public authority not subject to the supervision and control of any other executive
19office, department, commission, board, bureau, agency or political subdivision of the
20commonwealth except as specifically provided in any general or special law. The exercise by the
21authority of the powers conferred by this chapter shall be considered to be the performance of an
22essential public function.
23 (b) The authority shall consist of the state treasurer, who shall serve as chairperson, the
24secretary of administration and finance, a representative of the Massachusetts Municipal
25Association, and 4 additional members appointed by the state treasurer, 2 of whom shall have
26practical experience in public building construction, or architecture and design, and 2 of whom
27shall be persons in the field of municipal management with demonstrated knowledge of
28Massachusetts facility needs and other relevant federal and state building standards, each of
29whom shall serve a term of 2 years; but, a person appointed to fill a vacancy shall serve only for
30the unexpired term. An appointed member of the authority shall be eligible for reappointment.
31The authority shall annually elect 1 of its members to serve as vice-chairperson. Each member of
32the authority serving ex officio may appoint a designee pursuant to section 6A of chapter 30. 3 of 6
33 (c) Four members of the authority shall constitute a quorum, and the affirmative vote of 4
34members of the authority shall be necessary and sufficient for any action taken by the authority.
35No vacancy in the membership of the authority shall impair the right of a quorum to exercise all
36the rights and duties of the authority. Members shall serve without pay but shall be reimbursed
37for actual expenses necessarily incurred in the performance of their duties. The chairperson of
38the authority shall report to the governor and to the general court no less than annually, to assist
39the executive and legislative branches in coordinating community development and fiscal
40policies of the Commonwealth.
41 (d) Any action of the authority may take effect immediately and need not be published or
42posted unless otherwise provided by law. Meetings of the authority shall be subject to section
4311A1/2 of chapter 30A; but, said section 11A1/2 shall not apply to any meeting of members of
44the authority serving ex officio in the exercise of their duties as officers of the Commonwealth so
45long as no matters relating to the official business of the authority are discussed and decided at
46the meeting. The authority shall be subject to all other provisions of said chapter 30A, and
47records pertaining to the administration of the authority shall be subject to section 42 of chapter
4830 and section 10 of chapter 66. All monies of the authority shall be considered to be public
49funds for purposes of chapter 12A. The operations of the authority shall be subject to chapter
50268A and chapter 268B and all other operational or administrative standards or requirements to
51the same extent as the office of the state treasurer.
52 SECTION 2. Chapter 10 of the General Laws is hereby amended by inserting after
53section 35SSS, the following section:- 4 of 6
54 Section 35TTT. (a) As used in this section, the following words shall, unless the context
55requires otherwise, have the following meanings:-
56 "Authority", the Massachusetts Municipal Building Authority.
57 "Dedicated sales tax revenue amount", all monies received by the Commonwealth equal
58to 0.5 percent of the receipts from sales, as defined by chapter 64H, and 0.5 percent of the sales
59price of purchases, as defined by chapter 64I, from that portion of the taxes imposed under said
60chapters 64H and 64I as excises upon the sale and use at retail of tangible property or of services,
61and upon the storage, use or other consumption of tangible property or of services, including
62interest thereon or penalties, but not including any portion of the taxes that constitute special
63receipts within the meaning of subsection (b 1/2) of section 10 of chapter 152 of the acts of 1997
64or within the meaning of subsection (b 1/2) of said section 10 of said chapter 152 or any portion
65of the taxes imposed on the sale of meals as defined in paragraph (h) of section 6 of said chapter
6664H.
67 "Receipts from sales", gross receipts from nonexempt sales, less amounts abated or
68reimbursed.
69 "Sales price of purchases", sales price of nonexempt purchases, less amounts abated or
70reimbursed.
71 (b) There shall be established on the books of the commonwealth a separate fund, to be
72known as the Municipal Building Modernization and Reconstruction Trust Fund. There shall be
73credited to the fund the dedicated sales tax revenue amount. Annual receipts into the fund on
74account of any fiscal year shall be considered to meet the full obligation of the commonwealth to
75the authority for such fiscal year. 5 of 6
76 (c) Amounts in the fund shall be held by the state treasurer or his designee, as trustee and
77not on account of the commonwealth, exclusively for the purposes of the authority, and the state
78treasurer shall disburse amounts in the fund to the authority, without further appropriation, upon
79the request from time to time of the executive director of the authority. All amounts in the fund,
80including investment earnings, shall be available for expenditure by the authority for any lawful
81purpose, including without limitation payment of debt service on debt obligations issued by the
82authority, and may be pledged to secure debt of the authority in such manner and according to
83such priority as the authority may determine.
84 (d) The authority shall certify annually to the treasurer as trustee with copies provided to
85the clerks of the house and senate and to the house and senate committees on ways and means
86that it has made provision in its annual budget and its capital plan under section 17 of chapter
8770B for sufficient amounts to be available to meet debt service payments or other payments due
88under financing obligations, including, without limitation, leases or grant obligations.
89 (e) Subject to applicable restrictions contained in any bond resolution, trust or security
90agreement or credit enhancement agreement, surety bond, or insurance policy related to
91indebtedness incurred by the authority, including without limitation coverage requirements, if the
92authority shall determine that the balance of the fund exceeds the amount necessary to achieve
93the purposes of the authority, including, without limitation, to meet debt service payments, lease
94payments and grant obligations, the authority may transfer the excess amount to the
95Commonwealth.
96 (f) In order to increase the marketability of any bonds or notes of the trust which may be
97secured by or payable from amounts held in the fund, the sums to be credited to the fund are 6 of 6
98hereby impressed with a trust for the benefit of the trust and the holders from time to time of the
99bonds or notes, and in consideration of the acceptance of payment for the bonds or notes, the
100Commonwealth covenants with the purchasers and all subsequent holders and transferees of the
101bonds or notes that while the bond or note shall remain outstanding, and so long as the principal
102of or interest on the bond or note shall remain unpaid, the sums to be credited to the fund shall
103not be diverted from the control of the trust and, so long as the sums are necessary, as determined
104by the authority in accordance with any applicable bond resolution, trust or security agreement or
105credit enhancement agreement, surety bond or insurance policy related to indebtedness incurred
106by the trust, for the purposes for which they have been pledged, the rates of the excises imposed
107by said chapters 64H and 64I shall not be reduced below the rates prescribed by this section.