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2 | 2 | | HOUSE DOCKET, NO. 4323 FILED ON: 1/24/2025 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. |
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4 | 4 | | OFFICE OF THE GOVERNOR |
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5 | 5 | | COMMONWEALTH OF MASSACHUSETTS |
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6 | 6 | | STATE HOUSE · BOSTON, MA 02133 |
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7 | 7 | | (617) 725-4000 |
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8 | 8 | | MAURA T. HEALEY |
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9 | 9 | | GOVERNOR |
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10 | 10 | | KIMBERLEY DRISCOLL |
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11 | 11 | | LIEUTENANT GOVERNOR |
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12 | 12 | | January 24, 2025 |
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13 | 13 | | To the Honorable Senate and House of Representatives, |
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14 | 14 | | I am filing for your consideration a bill entitled “An Act Financing Long-Term Improvements to |
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15 | 15 | | Municipal Roads and Bridges.” |
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16 | 16 | | As part of our administration’s plan to stabilize and enhance our state’s transportation |
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17 | 17 | | infrastructure, this bill authorizes the Commonwealth to borrow $1.5 billion to fund improvements to |
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18 | 18 | | municipally-owned roads and bridges through the Chapter 90 program over the next five years. This bill |
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19 | 19 | | also authorizes $885 million of capital funding for a number of critical transportation infrastructure |
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20 | 20 | | investments to ease congestion, address needs associated with climate change adaptation and resilience |
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21 | 21 | | and fix more of the state’s aging roads and bridges. |
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22 | 22 | | The Chapter 90 local roadways program has provided vital funding for all 351 cities and towns |
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23 | 23 | | since 1973. These state resources have enabled our municipal partners to improve pavement quality, |
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24 | 24 | | build sidewalks, and fund bike and pedestrian infrastructure. However, Chapter 90 funding has not kept |
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25 | 25 | | pace with challenges faced by our municipalities, such as inflation, rising construction costs, and the |
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26 | 26 | | impacts of climate change. That is why, this past year, I directed MassDOT and the Executive Office for |
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27 | 27 | | Administrative and Finance to convene an Advisory Group of local officials to assess program |
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28 | 28 | | challenges and potential solutions. This bill reflects the following recommendations from the Advisory |
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29 | 29 | | Group: |
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30 | 30 | | Increase program funding to address local needs. This bill will enable the provision of |
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31 | 31 | | $300 million in annual Chapter 90 funds -- 50 percent higher than the core $200 million |
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32 | 32 | | provided in recent years, recognizing the impact of construction inflation in recent years, |
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33 | 33 | | which has particularly eroded the buying power of smaller and rural communities that |
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34 | 34 | | need extra support to complete road projects. 2 of 2 |
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35 | 35 | | Enact a multi-year authorization that enables effective capital planning and more |
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36 | 36 | | timely deployment of funds. The five-year authorization proposed in this bill provides |
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37 | 37 | | certainty to cities and towns, reduces delays in committing resources, and supports long- |
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38 | 38 | | term capital planning and strategic investment in municipal transportation infrastructure. |
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39 | 39 | | Update the funding formula to ensure greater aid to all municipalities, with |
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40 | 40 | | enhanced support to small and rural communities. The new $100 million in annual |
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41 | 41 | | funds unlocked by this proposal will be distributed solely on a road mileage basis. This |
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42 | 42 | | increased funding guarantees every community will benefit while being particularly |
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43 | 43 | | helpful for small and rural communities. |
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44 | 44 | | Additionally, authorizations in this bill will: |
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45 | 45 | | Improve pavement and bridge conditions across the state. This bill will authorize an |
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46 | 46 | | additional $500 million for MassDOT’s road and bridge lifecycle asset management |
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47 | 47 | | program to address the condition of pavement and bridges statewide. |
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48 | 48 | | Replace and upgrade vulnerable culverts and small bridges. This bill will enable |
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49 | 49 | | $200 million of additional investments in culverts and small bridges, to replace |
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50 | 50 | | undersized and deteriorating infrastructure with more resilient replacements, enhancing |
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51 | 51 | | climate change preparedness and reducing the backlog of deferred maintenance for state |
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52 | 52 | | and local government. |
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53 | 53 | | Ease congestion and address safety. This bill will provide $185 million of new capital |
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54 | 54 | | resources for MassDOT to take action on safety and congestion hotspots statewide, |
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55 | 55 | | improving conditions for drivers, pedestrians, transit riders, and bicyclists, in critical |
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56 | 56 | | areas such as rail crossings, intersections, near schools, commercial districts, and |
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57 | 57 | | residential areas, wherever attention is most needed. |
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58 | 58 | | The investments in this bill are informed by the recommendations of the Transportation Funding |
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59 | 59 | | Task Force and reflect our administration’s House 1 budget proposal to leverage Fair Share surtax |
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60 | 60 | | through the Commonwealth Transportation Fund to stabilize and enhance the state’s transportation |
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61 | 61 | | infrastructure -- a proven strategy for maximizing the impact of this revenue source. |
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62 | 62 | | These authorizations will enable municipalities and MassDOT to continue to plan effectively for |
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63 | 63 | | and deliver capital projects. I urge you to enact this legislation promptly. |
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64 | 64 | | Respectfully submitted, |
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65 | 65 | | |
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66 | 66 | | Maura T. Healey, |
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67 | 67 | | Governor 1 of 5 |
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68 | 68 | | HOUSE . . . . . . . . . . . . . . . No. |
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69 | 69 | | The Commonwealth of Massachusetts |
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70 | 70 | | _______________ |
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71 | 71 | | In the One Hundred and Ninety-Fourth General Court |
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72 | 72 | | (2025-2026) |
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73 | 73 | | _______________ |
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74 | 74 | | An Act financing long-term improvements to municipal roads and bridges. |
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75 | 75 | | Whereas, The deferred operation of this act would tend to defeat its purpose, which is to |
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76 | 76 | | finance improvements to the commonwealth’s transportation system, therefore it is hereby |
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77 | 77 | | declared to be an emergency law, necessary for the immediate preservation of the public |
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78 | 78 | | convenience. |
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79 | 79 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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80 | 80 | | of the same, as follows: |
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81 | 81 | | 1 SECTION 1. To provide for a program of transportation development and improvements, |
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82 | 82 | | 2the sums set forth in sections 2 and 2A for the several purposes, and subject to the conditions |
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83 | 83 | | 3specified in this act, are hereby made available, subject to the laws regulating the disbursement |
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84 | 84 | | 4of public funds. The sums made available in this act shall be in addition to any amounts |
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85 | 85 | | 5previously appropriated or made available for these purposes. |
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86 | 86 | | 6 SECTION 2. |
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87 | 87 | | 7 MASSACHUSETTS DEPARTMENT OF TRANSPORTATION |
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88 | 88 | | 8 Highway Division |
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89 | 89 | | 9 6122-2627 For the construction and reconstruction of municipal ways as described in |
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90 | 90 | | 10clause (b) of the second paragraph of section 4 of chapter 6C of the General Laws; provided, that 2 of 5 |
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91 | 91 | | 11a city or town shall comply with the procedures established by the Massachusetts Department of |
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92 | 92 | | 12Transportation; provided further, that a city or town may expend, without further appropriation, |
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93 | 93 | | 13for these projects amounts not in excess of the amount provided to the city or town under this |
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94 | 94 | | 14item upon preliminary notice of such amount, which shall be provided by the department to the |
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95 | 95 | | 15city or town not later than March 1 of each year; and provided further, that the commonwealth |
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96 | 96 | | 16shall reimburse funds to a city or town under this item, subject to the availability of funds as |
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97 | 97 | | 17provided in section 9G of chapter 29 of the General Laws, within 30 days after receipt by the |
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98 | 98 | | 18department of a request for reimbursement from the city or town; provided further, that the |
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99 | 99 | | 19department shall expend up to $500,000,000 for construction and reconstruction of municipal |
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100 | 100 | | 20ways which shall be allocated to municipalities based on local road mileage under procedures |
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101 | 101 | | 21established by the department; provided further, that the department shall encourage long-term |
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102 | 102 | | 22capital plans to be developed by a city or town describing how they will use this funding; and |
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103 | 103 | | 23provided further, that the city or town shall provide to the department its certification by the city |
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104 | 104 | | 24or town that actual expenses have been incurred on projects eligible for funding under this item |
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105 | 105 | | 25and that the work has been completed to the satisfaction of the city or town according to the |
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106 | 106 | | 26specifications of the project plan, and in compliance with applicable laws and procedures |
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107 | 107 | | 27established by the department..................................................... $1,500,000,000 |
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108 | 108 | | 28 SECTION 2A. |
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109 | 109 | | 29 MASSACHUSETTS DEPARTMENT OF TRANSPORTATION |
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110 | 110 | | 30 Highway Division |
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111 | 111 | | 31 6121-2617 For the bridge and pavement lifecycle asset management program, including |
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112 | 112 | | 32but not limited to design, construction and repair of, or improvements to, non-federally aided 3 of 5 |
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113 | 113 | | 33roadway and bridge projects and for the nonparticipating portion of federally-aided projects, and |
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114 | 114 | | 34for the construction, reconstruction, resurfacing, repair and improvement of pavement and |
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115 | 115 | | 35surface conditions on non-federally aided roadways, including, but not limited to, state numbered |
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116 | 116 | | 36routes and municipal roadways; provided, that expenditures from this item may include the costs |
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117 | 117 | | 37of engineering, design, permitting, climate change adaptation and resilience and other services |
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118 | 118 | | 38essential to projects under this item; provided further, that funds may be expended from this item |
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119 | 119 | | 39for matching grants to municipalities related to repair of surface conditions on paved and |
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120 | 120 | | 40unpaved public ways; provided further, that the department may use these funds for improving |
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121 | 121 | | 41the condition of bicycle and pedestrian accommodations related to such roadway, bridge, |
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122 | 122 | | 42pavement and resurfacing projects; and provided further, that the department shall consider |
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123 | 123 | | 43lifecycle asset management and resilient design with respect to projects under this |
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124 | 124 | | 44item..................................................... $500,000,000 |
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125 | 125 | | 45 6121-2627 For a program of culvert and small bridge modernization, reconstruction, |
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126 | 126 | | 46removal, repair, replacement, and resilience improvements to culverts and small bridges with a |
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127 | 127 | | 47span of 20 feet or less under procedures established by the Massachusetts Department of |
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128 | 128 | | 48Transportation in consultation with the secretary of energy and environmental affairs; provided, |
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129 | 129 | | 49that expenditures from this item may include the costs of engineering, design, permitting, climate |
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130 | 130 | | 50change adaptation and resilience and other services essential to projects under this item; and |
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131 | 131 | | 51provided further, that funds may be expended from this item for matching grants to |
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132 | 132 | | 52municipalities for municipally-owned small bridges and |
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133 | 133 | | 53culverts..................................................... $200,000,000 |
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134 | 134 | | 54 6121-2637 For a program of transportation capital projects to ease congestion and |
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135 | 135 | | 55improve safety in Massachusetts; provided, that expenditures from this item may include 4 of 5 |
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136 | 136 | | 56intersection improvements, rail grade crossings, bicycle infrastructure and shared use paths, |
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137 | 137 | | 57pedestrian walkways and improvements, accessibility improvements, traffic signals and |
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138 | 138 | | 58technology, ADA compliant sidewalks and crossings, roadway reconstruction and repairs and |
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139 | 139 | | 59other capital investments to alleviate road congestion and improve road, walking, biking |
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140 | 140 | | 60conditions throughout Massachusetts..................................................... $185,000,000 |
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141 | 141 | | 61 SECTION 3. To meet the expenditures necessary in carrying out section 2, the state |
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142 | 142 | | 62treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an |
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143 | 143 | | 63amount to be specified by the governor from time to time but not exceeding, in the aggregate, |
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144 | 144 | | 64$1,500,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their |
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145 | 145 | | 65face, Commonwealth Transportation Improvement Act of 2025, and shall be issued for a |
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146 | 146 | | 66maximum term of years, not exceeding 30 years, as the governor may recommend to the general |
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147 | 147 | | 67court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds |
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148 | 148 | | 68shall be payable not later than June 30, 2065, pursuant to said section 3 of said Article LXII. All |
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149 | 149 | | 69interest and payments on account of principal on these obligations shall be payable from the |
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150 | 150 | | 70General Fund or the Commonwealth Transportation Fund. |
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151 | 151 | | 71 SECTION 4. To meet the expenditures necessary in carrying out section 2A, the state |
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152 | 152 | | 72treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an |
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153 | 153 | | 73amount to be specified by the governor from time to time but not exceeding, in the aggregate, |
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154 | 154 | | 74$885,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their |
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155 | 155 | | 75face, Commonwealth Transportation Improvement Act of 2025, and shall be issued for a |
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156 | 156 | | 76maximum term of years, not exceeding 30 years, as the governor may recommend to the general |
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157 | 157 | | 77court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds |
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158 | 158 | | 78shall be payable not later than June 30, 2065, pursuant to said section 3 of said Article LXII. All 5 of 5 |
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159 | 159 | | 79interest and payments on account of principal on these obligations shall be payable from the |
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160 | 160 | | 80General Fund or the Commonwealth Transportation Fund. |
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161 | 161 | | 81 SECTION 5. Notwithstanding any general or special law to the contrary, bonds and |
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162 | 162 | | 82interest thereon issued under sections 2 and 2A shall be general obligations of the |
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163 | 163 | | 83commonwealth; provided, however, that any bonds issued by the state treasurer under said |
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164 | 164 | | 84sections, shall, upon the request of the governor, be issued as special obligation bonds pursuant |
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165 | 165 | | 85to section 2O of chapter 29 of the General Laws; provided further, that in deciding whether to |
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166 | 166 | | 86request the issuance of particular bonds as special obligations, the governor shall take into |
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167 | 167 | | 87account: (i) generally prevailing financial market conditions; (ii) the impact of each approach on |
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168 | 168 | | 88the overall capital financing plans and needs of the commonwealth; (iii) any ratings assigned to |
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169 | 169 | | 89outstanding bonds of the commonwealth and any ratings expected to be assigned by any |
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170 | 170 | | 90nationally-recognized credit rating agency to the bonds proposed to be issued; and (iv) any |
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171 | 171 | | 91applicable provisions of a trust agreement or credit enhancement agreement entered into pursuant |
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172 | 172 | | 92to said section 2O of said chapter 29. All interest and payments on account of obligations issued |
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173 | 173 | | 93under this section as special obligation bonds pursuant to said section 2O of said chapter 29 shall |
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174 | 174 | | 94be payable from the Commonwealth Transportation Fund, established in section 2ZZZ of said |
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175 | 175 | | 95chapter 29, solely in accordance with said section 2O of said chapter 29, and such bonds shall |
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176 | 176 | | 96not be included in the computation of outstanding bonds for purposes of the limit imposed by the |
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177 | 177 | | 97second paragraph of section 60A of said chapter 29, nor shall debt service with respect to such |
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178 | 178 | | 98bonds be included in the computation of the limit imposed by section 60B of said chapter 29. |
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